STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
COMPLIANCE EXAMINATION
For the Two Years Ended September 30, 2011
Performed as Special Assistant Auditors for
The Auditor General, State of Illinois
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
COMPLIANCE EXAMINATION
For the Two Years Ended September 30, 2011
TABLE OF CONTENTS
Agency Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . ......... .. .. . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . ... ... . . . . . .. . . . . . . . . . . 1
Management Assertion Letter............................................................................................ 2
Compliance Report
Summary...................................................................................................................... 4
Accountants' Report
Independent Accountants' Report on State Compliance, on Internal
Control Over Compliance, and on Supplementary Information for
State Compliance Purposes.................................................................................... 6
Schedule of Findings
Current Finding - State Compliance..................................................................... 9
Supplementary Information for State Compliance Purposes
Summary...................................................................................................................... 16
Fiscal Schedules and Analysis
Comparative Schedule of Revenues and Expenditures......................................... 17
Notes to Comparative Schedule of Revenues and Expenditures ................. ~......... 18
Analytical Review of Revenues and Expenditures................................................ 21
Reconciliation of State Fair Revenues to Deposits Remitted
to the Comptroller............................................................................................... 22
Detail Schedule of Revenues .......... ........... .... . ... .. ...... .. .. .................................. ... . .. 23
Pari-Mutuel Wagering Receipts and Expenditures................................................ 24
Grandstand Shows Revenues and Expenditures.................................................... 25
Competitive Events Revenues and Expenditures.................................................. 26
Analysis of Operations
Division Functions and Planning Program ............... ......... ........................ ............ 27
Number of Employees........................................................................................... 30
Miscellaneous Operating Statistics (Not Examined) ............................................ 31
Executive Director
Chief Fiscal Officer
General Counsel
Chief Internal Auditor
Fair Manager
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
COMPLIANCE EXAMINATION
For the Two Years Ended September 30, 2011
AGENCY OFFICIALS
Mr. Robert F. Flider, Acting (2/15/12- Current)
Mr. H.W. Devlin, Acting (12/17/11- 2/14/12)
Mr. James Larkin, Acting (10/19/11- 12/16/11)
Mr. Thomas Jennings (1 0/8/08 - 10/18/11)
Ms. Laura A. Lanterman
Ms. Shari West (11/3111 -Current)
Ms. Shari West, Acting (4/1111 - 1112/11)
Mr. Dominic Saebeler (1/1110- 3/31/11)
Ms. Margaret Vandijk (6/1/09- 12/31/09)
Mr. Ted Tracey, Acting (8/1/1 0- Current)
Ms. Amy Bliefnick
Illinois State Fair offices are located at:
801 East Sangamon A venue
State Fairgrounds
Springfield, IL 62702
1
Ulinois
Agi1Ciilture
Office of the Director
Pat Quinn, Governor
Robert F. Flider, Acting Director
State Fairgrounds P.O. Box 19281 Springfield, IL 62794-9281 217n82-2172 TOO 217/524-6858 Fax 217n85-4505
STATE COMPLIANCE EXAMINATION
MANAGEMENT ASSERTION LETTER
May4, 2012
Sikich LLP
3201 West White Oaks Drive, Suite 102
Springfield, IL 62704
Ladies and Gentlemen:
We are responsible for the identification of, and compliance with, all aspects of laws,
regulations, contracts, or grant agreements that could have a material effect on the operations of
the State of Illinois, Department of Agriculture, Illinois State Fair (ISF). We are responsible for
and we have established and maintained an effective system of, internal controls over
compliance requirements. We have performed an evaluation of the ISF' s compliance with the
following assertions during the two-year period ended September 30,2011. Based on this
evaluation, we assert that during the years ended September 30,2011 and September 30,2010,
the ISF has materially complied with the assertions below.
A. The ISF has obligated, expended, received and used public funds of the State in
accordance with the purpose for which such funds have been appropriated or otherwise
authorized by law.
B. The ISF has obligated, expended, received and used public funds of the State in
accordance with any limitations, restrictions, conditions or mandatory directions imposed
by law upon such obligation, expenditure, receipt or use.
C. The ISF has complied, in all material respects, with applicable laws and regulations,
including the State uniform accounting system, in its financial and fiscal operations.
2
D. State revenues and receipts collected by the ISF are in accordance with applicable laws
and regulations and the accounting and recordkeeping of such revenues and receipts is
fair, accurate and in accordance with law.
E. Money or negotiable securities or similar assets handled by the ISF on behalf of the State
or held in trust by the ISF have been properly and legally administered, and the
accounting and recordkeeping relating thereto is proper, accurate and in accordance with
law.
Yours very truly,
Illinois Department of Agriculture, Illinois State Fair
Mr. Robert F. Flider, Acting Director
3
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
COMPLIANCE EXAMINATION
For the Two Years Ended September 30, 2011
COMPLIANCE REPORT
SUMMARY
The compliance testing performed during this examination was conducted in accordance with
Government Auditing Standards and in accordance with the Illinois State Auditing Act.
ACCOUNTANTS' REPORT
The Independent Accountants' Report on State Compliance, on Internal Control Over
Compliance, and on Supplementary Information for State Compliance Purposes does not contain
scope limitations, disclaimers, or other significant non-standard language.
SUMMARY OF FINDINGS
Number of
Findings
Repeated findings
Current
Report
6
1
Prior recommendations implemented or not repeated 0
SCHEDULE OF FINDINGS
FINDINGS (STATE COMPLIANCE)
Item No. Page Description
11-1 9 Lack of written policies and procedures for
distribution of grandstand complimentary tickets
11-2 11 Noncompliance with the Illinois Horse Racing Act
of 1975
11-3 12 Failure to comply with State Fair Act
4
Prior
Report
1
0
3
Finding Type
Noncompliance
and Significant
Deficiency
Noncompliance
and Significant
Deficiency
Noncompliance
and Significant
Deficiency
11-4 13 Inadequate controls over temporary employee Noncompliance
timesheets and Significant
Deficiency
11-5 14 Contracts not signed timely Noncompliance
and Significant
Deficiency
11-6 15 Failure to publish professional and artistic contracts Noncompliance
and Significant
Deficiency
EXIT CONFERENCE
The Department waived an exit conference in correspondence dated March 9, 2012.
Responses to the recommendations were provided by Laura Lanterman in correspondence dated
March 16, 2012.
5
~Sikich.
Certified Public Accountants & Business Advisors
Members of American Institute of
Certified Public Accountants
3201 West White Oaks Drive, Suite 102 • Springfield, IL 62704
INDEPENDENT ACCOUNTANTS' REPORT ON STATE COMPLIANCE.
ON INTERNAL CONTROL OVER COMPLIANCE, AND ON
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
Honorable William G. Holland
Auditor General
State of Illinois
Compliance
As Special Assistant Auditors for the Auditor General, we have examined the State of Illinois,
Department of Agriculture, Illinois State Fair's (ISF) compliance with the requirements listed
below, as more fully described in the Audit Guide for Financial Audits and Compliance
Attestation Engagements of Illinois State Agencies (Audit Guide) as adopted by the Auditor
General, during the two years ended September 30,2011. The management of the ISF is
responsible for compliance with these requirements. Our responsibility is to express an opinion
on the ISF' s compliance based on our examination.
A. The ISF has obligated, expended, received, and used public funds of the State in
accordance with the purpose for which such funds have been appropriated or otherwise
authorized by law.
B. The ISF has obligated, expended, received, and used public funds of the State in
accordance with any limitations, restrictions, conditions or mandatory directions imposed
by law upon such obligation, expenditure, receipt or use.
C. The ISF has complied, in all material respects, with applicable laws and regulations,
including the State uniform accounting system, in its financial and fiscal operations.
D. State revenues and receipts collected by the ISF are in accordance with applicable laws
and regulations and the accounting and recordkeeping of such revenues and receipts is
fair, accurate and in accordance with law.
E. Money or negotiable securities or similar assets handled by the ISF on behalf of the State
or held in trust by the ISF have been properly and legally administered and the
accounting and recordkeeping relating thereto is proper, accurate, and in accordance with
law.
We conducted our examination in accordance with attestation standards established by the
American Institute of Certified Public Accountants; the standards applicable to attestation
engagements contained in Government Auditing Standards issued by the Comptroller General of
the United States; the Illinois State Auditing Act (Act); and the Audit Guide as adopted by the
Auditor General pursuant to the Act; and, accordingly, included examining, on a test basis,
evidence about the !SF's compliance with those requirements listed in the first paragraph of this
6
report and performing such other procedures as we considered necessary in the circumstances.
We believe that our examination provides a reasonable basis for our opinion. Our examination
does not provide a legal determination on the !SF's compliance with specified requirements.
In our opinion, the ISF complied, in all material respects, with the compliance requirements
listed in the first paragraph of this report during the two years ended September 30, 2011.
However, the results of our procedures disclosed instances of noncompliance with the
requirements, which are required to be reported in accordance with criteria established by the
Audit Guide, issued by the Illinois Office of the Auditor General and which are described in the
accompanying schedule of findings as items 11-1 through 11-6.
Internal Control
Management of the ISF is responsible for establishing and maintaining effective internal control
over compliance with the requirements listed in the first paragraph of this report. In planning
and performing our examination, we considered the ISF's internal control over compliance with
the requirements listed in the first paragraph of this report as a basis for designing our
examination procedures for the purpose of expressing our opinion on compliance and to test and
report on internal control over compliance in accordance with the Audit Guide, issued by the
Illinois Office of the Auditor General, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on
the effectiveness of the ISF's internal control over compliance.
A deficiency in an entity's internal control over compliance exists when the design or operation
of a control over compliance does not allow management or employees, in the normal course of
performing their assigned functions, to prevent, or detect and correct, noncompliance with the
requirements listed in the first paragraph of this report on a timely basis. A material weakness
over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a
requirement listed in the first paragraph of this report will not be prevented, or detected and
corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be deficiencies, significant deficiencies, or material
weaknesses. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses, as defined above. However, we identified certain
deficiencies in internal control over compliance that we considered to be significant deficiencies
as described in the accompanying schedule of findings as items 11-1 through 11-6. A significant
deficiency in an entity's internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
As required by the Audit Guide, immaterial findings excluded from this report have been
reported in a separate letter to your office.
7
The ISF's responses to the findings identified in our examination are described in the
accompanying schedule of findings. We did not examine the ISF's responses and, accordingly,
we express no opinion on the responses.
Supplementary Information for State Compliance Purposes
Our examination was conducted for the purpose of forming an opinion on compliance with the
requirements listed in the first paragraph of this report. The accompanying supplementary
information as listed in the table of contents as Supplementary Information for State Compliance
Purposes is presented for purposes of additional analysis. We have applied certain limited
procedures as prescribed by the Audit Guide as adopted by the Auditor General to the 2011 and
2010 Supplementary Information for State Compliance Purposes, except for information on
Miscellaneous Operating Statistics on which we did not perform any procedures. However, we
do not express an opinion on the supplementary information.
We have not applied procedures to the 2009 Supplementary Information for State Compliance
Purposes, and accordingly, we do not express an opinion thereon.
This report is intended solely for the information and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, and the ISF management, and is not
intended to be and should not be used by anyone other than these specified parties.
Springfield, Illinois
May 4, 2012
8
11-1 FINDING: (Lack of written policies and procedures for distribution of grandstand
complimentary tickets)
The Illinois State Fair (ISF) has not developed formalized written policies and
procedures for the sale, barter or exchange of grandstand complimentary tickets in
accordance with the State Fair Act, including maintaining documentation regarding
which individuals/entities received the grandstand complimentary tickets and how the
sale, barter or exchange of the tickets was necessary for the success of the ISF.
The ISF reserves the right to receive and distribute no more than 250 grandstand
complimentary tickets per performance as a part of each performer's contract at no
cost to the ISF. The grandstand complimentary tickets are used for advertising, barter
or exchange, incentives, VIP's and special requests and are issued at the discretion of
the ISF Fair Manager. Of the 2,250 authorized grandstand complimentary tickets,
I ,997 tickets, with a retail value of $54,352, were distributed to various parties during
the 20IO and 20II Illinois State Fair. Of the I,997 grandstand complimentary tickets
distributed, I ,4I2 (7I% ), with a retail value of $3 8,840, were given in exchange for
advertising, marketing, promotions, in-kind donations, and corporate sponsorships
which management stated benefitted the ISF. The remaining 585 (29%) grandstand
complimentary tickets, with a retail value of $I5,5I2, were distributed to various
individuals including the Department of Agriculture Director, the Fair Manager, and
the Governor's Office. The ISF failed to maintain a detailed accounting and
justification for the distribution of these tickets.
While many of these I ,997 grandstand complimentary tickets were distributed for
promotional activities or bartering or exchange of services beneficial to the ISF, the
grandstand complimentary tickets distributed included 406 tickets (20%) distributed
to advisory board members, charitable organizations, fundraisers, and State
employees, which were not supported by any justification as to why the distribution
of these tickets was advantageous or beneficial to the operation of the ISF. In
addition, the ISF could not always document the specific individual(s) receiving the
grandstand complimentary tickets.
The State Fair Act (Act) (20 ILCS 2I 0/6) requires the Department of Agriculture to set
policies and procedures for the sale, barter, or exchange of tickets and for ticket refunds
for cancelled events. The Act (20 ILCS 21 O/I2) further requires that these policies be
established by rule, in accordance with the Illinois Administrative Procedure Act. No
portions of the Act address the distribution of tickets to advisory board members,
charitable organizations, fundraisers, or State employees. In addition, the ISF did not
have rules as prescribed by the Act.
ISF officials indicated that not having formal policies and procedures developed and
established by rule was due to oversight. ISF officials further stated the distribution of
the tickets has been left to the Fair Manager's discretion to strive for the most benefit
to the fair in the form of advertising, marketing and promotions.
9
Complimentary tickets, in general, have a higher inherent risk for misappropriation.
Failure to have policies and procedures and documented justifications in place over
grandstand complimentary tickets could result in misuse of grandstand
complimentary tickets. (Finding Code No. 11-1)
RECOMMENDATION:
We recommend the Illinois State Fair develop and implement rules, in accordance with
the Illinois Administrative Procedure Act, for the sale, barter or exchange of grandstand
complimentary tickets in accordance with the State Fair Act.
DEPARTMENT RESPONSE:
The Fair agrees with the finding and will develop and implement rules, in accordance
with the Illinois Administrative Procedure Act, for the sale, barter or exchange of
grandstand complimentary tickets in accordance with the State Fair Act.
10
11-2 FINDING: (Noncompliance with the Illinois Horse Racing Act of 1975)
The Illinois State Fair (ISF) was not in compliance with the Illinois Horse Racing Act
of 1975 (Act) concerning the nominating, sustaining and starting fees exceeding 2%
ofthe purse for certain races.
The nominating, sustaining, and starting fees of $135,510 paid by the entrants for the
Illinois State Fair in 2011 amounted to 21% of the $659,000 purses and exceeded the
2% limit outlined by the Act by approximately $122,330.
The Illinois Horse Racing Act of 1975 (230 ILCS 5/310)) requires the Department of
Agriculture to provide by rule, with the assistance and advice of the Illinois
Standardbred Breeders Fund Advisory Board, for the payment of nominating,
sustaining and starting fees for races promoting the sport of harness racing and for the
races to be conducted at the State Fair provided that the nominating, sustaining and
starting payment required from an entrant shall not exceed 2% of the purse of such
race. All nominating, sustaining and starting payments shall be held for the benefit of
entrants and shall be paid out as part of the respective purses for such races.
ISF officials indicated that the noncompliance with the statute is caused by purses
having declined due to budget constraints while nominating fees have not changed.
Failure to comply with the provisions ofthe Horse Racing Act of 1975 represents
noncompliance with State law. (Finding Code No. 11-2)
RECOMMENDATION:
We recommend the Illinois State Fair comply with the provisions of the Illinois Horse
Racing Act.
DEPARTMENT RESPONSE:
The Fair agrees with the finding and will comply with the provisions of the Illinois
Horse Racing Act.
11
11-3 FINDING: (Failure to comply with State Fair Act)
The Illinois State Fair (ISF) has not developed or adopted an official plan for the
operation of the State Fair and the State Fairgrounds and its facilities.
In addition, the ISF has not developed and adopted or presented to the public an official
long range plan regarding the operations and building use of the State Fair and State
Fairgrounds.
The State Fair Act (Act) (20 ILCS 210/11) requires the Department of Agriculture to
develop and adopt a plan for the operation of each State Fair and the State
Fairgrounds and its facilities. This plan shall include operational factors as well as an
evaluation of present structures, the maintenance of present structures and the razing
of those structures no longer safe to the public or not functional. A long range
operational and building use program shall be developed. The general operational and
building plan shall be presented to the public at a public hearing and adopted as the
official plan for the State Fairgrounds. This operational and building plan is not to be
construed as a restriction on day-to-day operations or minor use changes.
The ISF did have documents for long term capital requests, but these were not part of
a "formal" plan which was presented to the public at a public hearing.
ISF officials stated that failure to develop, adopt, and present a plan for the operations
of the ISF and its fairgrounds and facilities was due to oversight.
Sound management practices require appropriate short and long range planning. By
not preparing such plans, the ISF is not in compliance with the Act. (Finding Code
No. 11-3)
RECOMMENDATION:
We recommend the Illinois State Fair develop, adopt and present to the public a plan for
the operation of the State Fair and the State Fairgrounds and its facilities in accordance
with the Act.
DEPARTMENT RESPONSE:
The Fair agrees with the finding and will develop, adopt, and present to the public a
plan for the operation of the State Fair and the State Fairgrounds and its facilities in
accordance with the Act.
12
11-4 FINDING: (Inadequate controls over temporary employee timesheets)
The Illinois State Fair (ISF) did not exercise adequate controls over temporary employee
timesheets.
During our testing at the 2011 Fair, we noted seven of30 (23%) timesheets were incomplete
or completed at the end of the temporary employee's shift. We noted some timesheets were
completed when the auditor attempted to review them. We also noted timesheets were
completed at the end of the shift, instead of indicating when the employee arrived for the
shift.
Current ISF procedures generally require that a temporary employee sign in and sign out
when beginning and ending a shift. Employee supervisors did not ensure these
procedures were always followed.
The State Officials and Employees Ethics Act (Act) (5 ILCS 430/5-5(c)) requires State
employees to submit time sheets documenting the time spent each day on official State
business; contractual State employees may satisfy the time sheets requirement by
complying with the terms of their contract, which shall provide for a means of
compliance with this requirement.
ISF management stated that exceptions were due to temporary employees' not
understanding the timekeeping procedures.
Failure to properly complete timesheets could lead to an increased risk of the State
compensating employees for time not actually spent at work. (Finding Code No. 11-4)
RECOMMENDATION:
We recommend the Illinois State Fair implement additional controls to ensure employee
attendance is documented properly on a daily basis.
DEPARTMENT RESPONSE:
The Fair agrees with the finding and will implement additional controls to ensure
employee attendance is documented properly on a daily basis.
13
11-5 FINDING: (Contracts not signed timely)
The Illinois State Fair (ISF) did not have signed and dated contracts in place with State
Fair vendors prior to the vendors performing services at the 2011 Fair.
The ISF entered into contractual agreements with vendors to provide services at the
2010 and 2011 State Fairs. During the fiscal year ended September 30, 2011, we
noted 2 out of 30 (7%) contracts tested were not signed and dated before the start of
the contract. The contracts were signed between 34 and 38 days late.
The Illinois Procurement Code (30 ILCS 500/20-SO(d)) requires that all contracts be
reduced to writing and signed by all necessary parties before the services are
rendered.
ISF officials stated that failure to execute contracts prior to the start date of the contract
is due to the large volume of services procured in a very short time and not having staff
available to assign solely to contracts.
Failure to have the contractual agreements signed prior to the performance of services
may result in exposing the State to unnecessary legal risks and could result in
unnecessary expense. (Finding Code No. 11-5, 09-1)
RECOMMENDATION:
We recommend the Illinois State Fair implement procedures to ensure contracts are
properly signed and dated before services are rendered.
DEPARTMENT RESPONSE:
The Fair agrees with the finding and will implement procedures to ensure contracts
are properly signed and dated before services are rendered.
14
11-6 FINDING: (Failure to publish professional and artistic contracts)
The Illinois State Fair (IS F) did not publish professional and artistic contract exceptions
in the Illinois Procurement Bulletin as required by the Illinois Procurement Code (Code)
(30 ILCS 500/35-35).
We noted the ISF failed to submit professional and artistic contracts exempt from the
procurement process to the chief procurement officer for the 2010 or 2011 Fairs to be
published in the Illinois Procurement Bulletin. Many of the exempt contracts were
for performers. We noted 22 contracts, totaling $95,840, and 85 contracts, totaling
$156,994, during the 2010 and 2011 Fairs, respectively, that should have been filed
with the chief procurement officer for inclusion in the Illinois Procurement Bulletin.
The Illinois Procurement Code (Code) (30 ILCS 500/35-35) allows for sole source,
professional and artistic contracts that are nonrenewable, one year or less in duration,
and have a value ofless than $20,000 to be exempt from the competitive request for
proposal process outlined in 30 ILCS 500/35-30 of the Code. All exceptions granted
under 30 ILCS 500/35-35 are to be submitted to the chief procurement officer and
published in the Illinois Procurement Bulletin and shall name the authorizing chief
procurement officer or State purchasing officer, and shall include a brief explanation of
the reason for the exception.
ISF officials stated that contracts were not published due to the State purchasing officer
not being aware that it was necessary.
Failure to follow the Code represents noncompliance with State statute and hinders
transparency in the procurement process. Publishing professional and artistic
procurement exemptions in the Illinois Procurement Bulletin helps to notify future
potential parties of interest in fair activities and establishes a mechanism for achieving
the most cost-effective price for such contracts. (Finding Code No. 11-6)
RECOMMENDATION:
We recommend the Illinois State Fair implement procedures to ensure professional and
artistic contracts are published on the Illinois Procurement Bulletin as required by the
Illinois Procurement Code.
DEPARTMENT RESPONSE:
The Fair agrees with the finding and will implement procedures to ensure
professional and artistic contracts are published on the Illinois Procurement Bulletin
as required by the Illinois Procurement Code.
15
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
COMPLIANCE EXAMINATION
For the Two Years Ended September 30, 2011
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
SUMMARY
Supplementary Information for State Compliance Purposes presented in this section of the report
includes the following:
• Fiscal Schedules and Analysis:
Comparative Schedule of Revenues and Expenditures
Notes to Comparative Schedule of Revenues and Expenditures
Analytical Review of Revenues and Expenditures
Reconciliation of State Fair Revenues to Deposits
Remitted to the Comptroller
Detail Schedule of Revenues
Pari-Mutuel Wagering Receipts and Expenditures
Grandstand Shows Revenues and Expenditures
Competitive Events Revenues and Expenditures
• Analysis of Operations:
Division Functions and Planning Program
Number of Employees
Miscellaneous Operating Statistics (Not Examined)
The accountants' report that covers the Supplementary Information for State Compliance
Purposes presented in the Compliance Report Section states the auditors have applied certain
limited procedures as prescribed by the Audit Guide as adopted by the Auditor General, except
for information on the Miscellaneous Operating Statistics on which they did not perform any
procedures. However, the accountants do not express an opinion on the supplementary
information.
16
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES
For the Years Ended September 30, 2011, 2010, and 2009
2011 2010
Revenues:
Tickets $ 3,182,570 $ 2,590,198 $
Space rental 1,155,656 1,127,131
Entry 385,635 348,824
Promotions 296,379 310,842
Total revenues 5,020,240 4,376,995
Expenditures:
Personal services 523,011 426,428
Extra help 209,066 245,868
Contractual payroll employees 46,356 88,624
Contributions - employee retirement system 169,561 197,232
Contributions - social security 58,069 56,283
Group insurance 83,098 83,184
Contractual services 2,900,854 2,112,500
Travel 2,699 1,462
Commodities 54,193 87,538
Printing 61,107 37,941
Equipment 18,385
Telecommunications 91,343 103,454
Operation of automotive equipment 1,165
Interest 88
Promotions 69
Awards and premiums:
Harness racing 82,062 184,258
Livestock breeding 216,035 176,918
Other 416,831 459,467
Permanent improvements 35,665 2,221
Refunds 12,423 301,622
Allocated costs 2,811,887 2,111,358
Total expenditures 7,793,810 6,676,515
Deficiency of revenues under expenditures $ (2, 773,570) $ (2,299,520) $
See notes to comparative schedule of revenues and expenditures.
17
2009
2,368,949
1,152,524
340,830
347,008
4,209,311
508,957
177,172
28,121
169,633
53,801
99,178
2,458,953
3,377
51,795
42,110
235
116,412
34,176
194,315
204,056
470,334
9,303
2,371,299
6,993,227
(2, 783,916)
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
NOTES TO COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES
For the Two Years Ended September 30, 2011
1. SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES:
The accompanying schedule of revenues and expenditures (Schedule) presents activity
directly related to the operations of the Illinois State Fair (ISF) and the fairgrounds. It
includes activity in the General Revenue Fund- 0001, the Illinois State Fair Fund- 0438,
and the State Fair Promotional Activities Fund- 0835.
Revenues and expenditures are based on a fair year, October 1 to September 30, and contain
activity from more than one State fiscal year. For example, revenues and expenditures for
2011 are for the fair held in August 2011, but consist of activity from the State fiscal years
2011 and 2012.
Revenues consist of fair related receipts deposited with the State Comptroller from October 1
to September 30 plus accrued receivables at September 30 of the current year related to the
current year's fair less accrued receivables after September 30 ofthe prior year related to the
prior year's fair.
Expenditures consist of fair related expenditures from appropriated accounts from October 1
through September 30, plus accrued expenditures after September 30 of the current year
related to the current year's fair less accrued expenditures at September 30 of the prior year
related to the prior year's fair. The following is a breakdown of expenditures paid from
appropriated accounts during the years ended September 30, 2011, 2010, and 2009:
2011 2010 2009
Illinois State Fair Fund:
Fair $ 4,686,093 $ 4,165,238 $ 4,154,432
Non-Fair 897,620 1,108,684 1,334,335
General Revenue Fund 295,830 399,850 433,265
Promotional Fund 69 34,176
Totals $ 5,879,543 $ 5,673,841 $ 5,956,208
18
1. SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES (continued):
Allocable costs consist ofboth direct expenses, primarily from the General Revenue Fund
buildings and grounds appropriations, not included in the expenditures above and indirect
costs from administrative services and electronic data processing related to the Illinois State
Fair. The allocated costs included in the Schedule are based on a cost study performed by an
independent contractor hired by the Fair to ascertain an estimate of such costs. A summary
of these allocated costs is as follows:
2011 2010 2009
Buildings and grounds direct costs $ 2,465,793 $ 1,826,640 $ 2,088,419
Other bureau direct costs 66,310 56,893 61,165
Indirect costs 279,784 227,825 221,715
Totals $ 2,811,887 $ 2,111,358 $ 2,371,299
Revenue and expenditures for non-fair activities held at the State fairgrounds are excluded
from the Schedule even though both fair and non-fair activities are appropriated and
expended within the same fund- Fund 0438, Illinois State Fair Fund.
Revenues and expenditures relating to pari-mutuel wagering are presented separately and are
not included in the Schedule. However, the cost of the pari-mutuel contract is included in
contractual services expenditures.
2. FISCAL SCHEDULES AND ANALYSIS OF OTHER SPECIAL REVENUE FUNDS:
The fiscal schedules and analysis of other special revenue funds, including the Illinois
Standardbred Breeders Fund- 0708 and the Illinois Thoroughbred Breeders Fund- 0709,
relating to the Illinois State Fair are not included in this report. The fiscal schedules and
analysis of these funds are included in the compliance examination of the Department of
Agriculture.
3. ILLINOIS STATE FAIR FUND:
The State Fair Act (20 ILCS 210/10) states that effective July 1, 1994, "All revenues from
the operation and use of any facilities of the Illinois State Fair at Springfield and the
Springfield State Fairgrounds shall be deposited in the Illinois State Fair Fund." It further
states, "All funds in the Illinois State Fair Fund shall be used by the Department of
Agriculture in accordance with the appropriation by the General Assembly for the operation
of the Illinois State Fair."
19
4. NON-FAIR REVENUES AND EXPENDITURES:
Non-fair expenditures from the State Fair Fund for each June 30 fiscal year are limited to
non-fair revenues for the preceding fiscal year ended June 30 plus any unspent balances from
preceding periods, not exceeding the amount appropriated. Non-fair revenues and
expenditures from the State Fair Fund for fiscal years ended September 30 were as follows:
2011 2010 2009
Revenues $ 1,004,998 $ 1,130,755 $ 1,296,341
Expenditures 897,620 1,108,684 1,334,335
Excess (deficiency) of revenues
over (under) expenditures $ 107,378 $ 22,071 $ (37,994)
5. PRIOR YEAR EXPENDITURES
Certain amounts from the 2009 Compliance Examination have been changed to correct for
expenditures previously omitted.
20
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
ANALYTICAL REVIEW OF REVENUE AND EXPENDITURES
For the Two Years Ended September 30, 2011
The scope of the analytical review explains any increase or decrease of revenue items which vary
by 10% or more and $25,000 from the prior year and expenditure items which vary by 20% or
more and $60,000 from the prior year.
Revenues
Tickets revenues increased $592,372 (23%) from fiscal year 2010 to 2011 due to a sold out
Grandstand show and no show cancellation in 20 11.
Entry revenues increased $36,811 ( 11%) from fiscal year 2010 to 2011 due to a reclassification
of golf cart rental fees from Non-Fair to Fair.
Promotions revenues decreased $36,166 (10%) from fiscal year 2009 to 2010 as a result of a
decrease in sponsorship revenue and souvenirs sold.
Expenditures
Personal services expenditures increased $96,583 (23%) from fiscal year 2010 to 2011 due to an
increase in the number of temporary employees in 2011.
Extra help expenditures increased $68,696 (39%) from fiscal year 2009 to 2010 due to an
increase in the number of temporary employees in fiscal year 2010.
Contractual payroll employees expenditures increased $60,503 (215%) from fiscal year 2009 to
2010 due to an increase in the number of contractual temporary employees in fiscal year 2010.
Contractual services expenditures increased $788,354 (37%) from fiscal year 2010 to 2011 as a
result of entertainment payments and a payment to Maywood Park Trotting Association, which
had previously been paid from the General Revenue Fund. Additionally, during 2010 two
Grandstand shows had been cancelled, resulting in lower contractual services expenditures.
Harness racing awards and premiums expenditures decreased $102,196 (55%) from fiscal year
2010 to 201J as a result of a Maywood Park Trotting Association payment being made from the
Contractual Services expenditure line item instead of the Harness Racing awards and premiums
line item.
Refunds expenditures decreased $289,199 (96%) from fiscal year 2010 to 2011 and increased
$292,319 (3, 142%) from fiscal year 2009 to 2010 as a result of the cancellation of two
Grandstand shows in fiscal year 2010.
21
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
RECONCILIATION OF STATE FAIR REVENUES
TO DEPOSITS REMITTED TO THE COMPTROLLER
For the Years Ended September 30,2011 and 2010
Total2011 Illinois State Fair revenues
Add:
Deposits in transit, beginning of period 09/30110
Adjustments
Previous fair year money
Deduct:
Deposits in transit, end of period 09/30/11
Revenue received after 9/30/11
Receivables
Cash receipts per Comptroller
Total2010 Illinois State Fair revenues
Add:
Deposits in transit, beginning of period 09/30/09
Adjustments
Previous fair year money
Deduct:
Deposits in transit, end of period 09/30/10
Revenue received after 9/30/10
Receivables
Cash receipts per Comptroller
22
$ 5,020,240
57,816
9,365
159,277
226,458
38,052
12,583
153,095
203,730
$ 5,042,968
$ 4,376,995
37,988
303
135,013
173,304
57,816
121,539
66,463
245,818
$ 4,304,481
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
DETAIL SCHEDULE OF REVENUES
For the Years Ended September 30, 2011, 2010, and 2009
Ticket revenues:
Gate admissions
Grandstand shows
Mega pass
Camping
Totals
Space rental revenues:
Fees and commissions from exhibits,
concessions, and other contractors
Carnival
Beer concessions
Totals
Entry revenues:
Regular entry
Western horse shows
Society horse shows
Miscellaneous
Totals
Promotion revenues:
Sponsorships
Promotions
Totals
23
2011
$ 1,355,328
1,364,257
347,025
115,960
$3,182,570
$ 652,402
366,352
136,902
$ 1,155,656
$ 139,827
32,460
57,986
155,362
$ 385,635
$ 290,380
5,999
$ 296,379
2010
$ 1,249,104
932,913
307,661
100,520
$2,590,198
$ 682,918
322,986
121,227
$ 1,127,131
$ 138,323
32,725
64,633
113,143
$ 348,824
$ 291,447
19,395
$ 310,842
2009
$ 1,267,895
718,804
274,880
107,370
$2,368,949
$ 701,595
312,779
138,150
$ 1,152,524
$ 137,193
33,015
65,909
104,713
$ 340,830
$ 321,871
25,137
$ 347,008
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
PARI-MUTUEL WAGERING RECEIPTS AND EXPENDITURES
For the Years Ended September 30, 2011,2010, and 2009
2011 2010
Receipts (net commissions) $ 117,328 $ 105,579 $
Expenditures (200,106) (207,775)
2009
113,511
(229,162)
Deficiency of receipts under expenditures $ (82,778) $ (102,196) $ (115,651)
Note: The Fair contracted with Maywood Park Trotting Association in 2011, 2010, and 2009 to conduct the
pari-mutuel wagering operations at the Illinois State Fair. Maywood collected receipts and paid
expenditures associated with pari-mutuel wagering in 2011, 2010, and 2009. The ISF paid Maywood
$82,778, $102,196 and $115,651 for losses on the 2011, 2010, and 2009 contracts, respectively.
Receipts (net commissions) are a function of the total on-track wagering (handle) less returns to
bettors and privilege tax. Expenditures represent costs paid by the contractor associated with
pari-mutuel wagering.
24
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
GRANDSTAND SHOWS REVENUES AND EXPENDITURES
For the Years Ended September 30, 2011, 2010, and 2009
2011 2010
Revenues:
Ticket sales $ 1,364,257 $ 932,913 $
Expenditures:
Entertainment 1,217,008 575,055
Ticket contractor 518
Sound/light/video 83,250 79,750
Booking agent 38,250 34,000
Stagehands 150,000 147,301
Ushers/merchandise sellers 2,000 4,500
Catering 27,972 26,047
Equipment rental 10,430
Grandstand roof and backdrop 25,000 20,000
Transportation 1,039 3,211
Cancelled event refunds 297,177
Total expenditures 1,555,467 1,187,041
Deficiency of revenues under expenditures $ (191,210} $ (254,128} $
The above represents direct revenues and expenditures related to the grandstand shows.
This schedule does not include other indirect revenues and expenditures relating to grandstand
shows, including but not limited to the following:
-Admission to the fairgrounds
-Concessions
-Parking
-Facility costs and overhead
-Fair personnel costs related to grandstand ticket sales, booking, maintenance,
and overhead.
25
2009
718,804
780,000
43,900
19,500
135,264
4,500
18,045
19,500
1,304
1,022,013
(303,209}
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
COMPETITIVE EVENTS REVENUES AND EXPENDITURES
For the Years Ended September 30, 2011, 2010, and 2009
2011 2010
Revenues:
Entry fees $ 139,827 $ 138,323
Expenditures:
Extra help 35,330 35,065
Contractual services 185,223 182,285
Commodities 35,847 32,342
Awards and premiums 540,866 520,334
Total expenditures 797,266 770,026
Deficiency of revenues under expenditures $ (657,439) $ (631,703)
2009
$ 137,193
31,688
182,976
25,064
525,917
765,645
$ (628,452)
The above represents direct revenues and expenditures related to competitive events held during the
2011,2010, and 2009 Illinois State Fairs. Entry fees include fees directly related to the Fair and do
not include entry fees for special events such as the Western and Society Horse Shows.
This schedule does not include other indirect revenues and expenditures relating to competitive events
including but not limited to the following:
-Admission to the fairgrounds
-Concessions
-Parking
-Facility costs and overhead
-Fair personnel costs related to competitive events, maintenance, and overhead.
Awards and premiums do not include $25,000 of expenditures related strictly to the
Society & Western horse shows but include other horse show premiums.
Contractual services does not include judges for horse shows.
Commodities does not include trophies, ribbons, etc. for horse shows or special events.
26
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
ANALYSIS OF OPERATIONS
DIVISION FUNCTIONS AND PLANNING PROGRAM
For the Two Years Ended September 30, 2011
GENERAL
The Illinois State Fair (ISF) is an operating entity of the Department of Agriculture and is located
at the State Fairgrounds, 801 East Sangamon Avenue, Springfield, Illinois 62794. The Director
(Acting) of the Department of Agriculture is Robert F. Flider. The Department is responsible for
fulfilling the statutory obligation to hold the annual ISF. The ISF is held to promote agriculture
and the agriculture industry, and to provide for exhibits and activities in the fields of industry,
education, arts and crafts, labor, entertainment, and other areas of interest to the people ofthe
State. The Department of Agriculture is responsible for developing long-range operational and
building use programs.
The State Fair Act establishes the legal responsibility of the Department of Agriculture. The
Department of Agriculture further established Administrative Rules which constitutes its rules
and policies governing the operations of the ISF.
The ISF is composed of six functional areas through which the above objectives can be achieved.
• Office ofthe State Fair Manager
• Space Rental
• Entertainment
• Special Events
• Support Services
• Competitive Events
A description of each functional area follows:
Office of the State Fair Manager- The State Fair Manager provides centralized management for
the ISF and is responsible for its adherence to the provision of the Illinois State Fair Act. The
State Fair Manager develops a plan for the operation of the ISF. The State Fair Manager has
offices in the Emerson Building on the State Fairgrounds, Springfield, Illinois.
Space Rental- The Space Rental Manager assists in evaluation, developing, revising, and
implementing policies and procedures associated with the operation of the ISF concessions,
commercial exhibits, etc. The Space Rental Department is directly charged with the
responsibility of collecting and receiving all rental funds and maintaining adequate records of
rental activity.
27
Entertainment- The Entertainment Manager initiates, plans, and directs activities associated
with entertainment for the ISF. The Entertainment Manager is responsible for the entertainment
activities at the grandstand and other location throughout the fairgrounds. Grandstand activities
include the operation and administration of ticket sales in the grandstand ticket office.
Special Events -the Special Events Manager coordinates activities during the ISF at the Illinois
Building, for the Senior Center, and on Lincoln Stage. The Special Events Manager also
coordinates contests during the ISF and the ISF parade.
Support Services- the Support Services Manager is responsible for initiating, drafting, and
editing all contracts for the ISF including, but not limited to, contracts for personal services,
rental agreements, and awards and premiums. Personnel in this functional area also plan, direct,
and execute a comprehensive advertisement program for the ISF. Other duties include the
enforcement of Administrative Rules and Regulations, the development of policies and
procedures for the issuance of non-paid credentials, and the coordination of gate admissions and
parking during the ISF.
Competitive Events - The Competitive Events Manager directs, develops, and coordinates a
program of events for the Fair, and maintains the necessary records for competitive events
administration. Prior to the ISF, the Competitive Events Manager determines event premiums
and prizes, procures the appropriate prizes, directs the preparation of event entry books, and
collects entry fees from competitors. During the ISF, responsibilities include obtaining proper
authorization for the awarding of premiums and prizes and determining that winners of events
receive the proper premium or prize.
STRATEGIC PLANNING
The mission of the ISF is to provide an attractive and entertaining annual fair that promotes
family fun and agriculture awareness, supports local business, and optimizes fairground
facilities. Additionally, it is the mission of the Department of Agriculture to promote and
contract for non-Fair special events to maximize use of the fairgrounds.
The main goal of the ISF is to provide a safe, entertaining and educational experience at the Fair.
In order to accomplish this goal, the following objectives have been set:
• Increase the attendance at the Fair.
• Increase the number of concessionaires.
• Monitor the appearance of the exhibits.
• Update, renovate and maintain buildings and structures on the fairgrounds to enhance
their appearance, ensure their public safety level and provide additional comfort to the
fairgoers.
• Provide additional entertainment, exhibits, educational events and clinics.
• Increase the number of non-Fair events, which will increase the revenue generated by
non-Fair events.
• Establish a close working relationship with the County Fairs and horse racing industry of
Illinois.
28
The Department of Agriculture has developed a strategic plan that reflects the vision and goals of
the agency. The ISF is a part of the Department of Agriculture's strategic planning process. The
strategic plan is a reviewed on an ongoing basis.
29
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
NUMBER OF EMPLOYEES
For the Years Ended September 30, 2011, 2010, and 2009
2011 2010
Average Full-Time Employees:
Department:
Administration 4 4
Competitive Events 1 1
Fair Activities 2 2
Totals 7 7
Sept-
May June
Temporary Employees:
State Fair- Approximate
Number of Employees (2011) 7 31
State Fair - Approximate
Number of Employees (20 1 0) 7 32
State Fair - Approximate
Number of Employees (2009) 6 31
Bureau ofBuildings and Grounds
Approximate Number ofEmployees (2011) 8 12
Bureau ofBuildings and Grounds
Approximate Number of Employees (20 1 0) 3 12
Bureau of Buildings and Grounds
Approximate Number of Employees (2009) 8 82
30
2009
4
1
2
7
July-
August
128
128
119
239
170
159
Number of Contracts:
Concessions
Exhibits
Contractual services
Entertainment
Awards and premiums
Sponsorships
Tickets Sold:
Gate admissions - tickets
Grandstand & MPA shows- tickets
Miscellaneous Statistics:
Estimated attendance
Amount ofbeer sold - kegs
Amount of beer ·sold - cases
Number of camping permits
Number of parking permits
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
ILLINOIS STATE FAIR
MISCELLANEOUS OPERATING STATISTICS
For the Years Ended September 30, 2011, 2010, and 2009
(Not Examined)
2011 2010 2009
323 318 318
153 160 144
41 41 50
130 114 96
5 4 4
9 23 39
279,214 255,531 265,266
58,170 54,858 35,586
817,000 750,000 749,000
707 490 752
7,227 10,954 11,276
658 594 615
35,370 31,603 29,842
%Increase %Increase
(Decrease) (Decrease)
201112010 2010/2009
1.6 % - %
(4.4) 11.1
(18.0)
14.0 18.8
25.0
(60.9) (41.0)
9.3 (3.7)
6.0 54.2
8.9 0.1
44.3 (34.8)
(34.0) (2.9)
10.8 (3.4)
11.9 5.9
For 2011, 2010, and 2009 attendance was based on actual numbers for grandstand attendance, concessionaires, exhibitors and
governmental employees. Further estimates were based on vehicles parked on the fairgrounds and perimeter; Illinois State Police and
State Fire Marshal crowd estimations based on their respective observations and experience; past fairs' experiences for a particular day;
and revenue generated.
31
