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Office Of
The County Auditor
Internal Audit Division
McHenry County, Illinois
2200 North Seminary Avenue
Woodstock, IL 60098













TO: McHenry County Finance and Audit Committee and McHenry County Senior
Services Grant Commission
FROM: Pamela Palmer/ County Auditor and Shannon Teresi, CPA, CIA, CRMA /
Internal Auditor
SUBJ ECT: Addendum to the Nunda Township Road District Senior Services Grant Audit
Report Dated August 28, 2013
DATED: December 10, 2013


This addendum is due to further discussions the Auditors Office had with Donna Kopsell,
Secretary under the former Road District Commissioner, Don Kopsell, on 10/1/13 related to
her request to discuss the findings that were presented to the current Nunda Township Road
District Commissioner, Mike Lesperance. Mike Lesperance shared a copy of the report that
was marked confidential with Donna Kopsell. Donna Kopsell requested to meet with the
Auditors Office to explain her information on each finding.

To summarize, none of the findings were fully cleared as a result of the meeting. However,
additional information was provided to explain differences and inconsistencies noted in the
report. Reference the full Audit Report dated August 28, 2013 in relation to the changes noted
below.

Finding 1- Independent Auditors Report with Limited Scope and No Opinion:

The finding still applies to the audit and is further supported by the fact that the credit card
statements mentioned in the external audit report for financial statements dated 3/31/11 by
Dam Snell & Taveirne, LTD are specifically related to the Nunda Township Road District.
This is confirmed by the Nunda Township minutes from August 14
th
, 2012 and Donna Kopsell
agreed that the credit card statements were not supplied by the Road District to the external
auditors.

Finding 2 Collection of Bus Fares:

During onsite fieldwork, Donna Kopsell, prior secretary and J oe Malenke, current operations
manager, communicated that one way ride totals could be calculated by adding up the bus
drivers check marks on the schedule. However, during discussions with Donna Kopsell on

PAMELA PALMER
County Auditor

SHANNON TERESI, CPA, CIA, CRMA
Internal Auditor

PHONE: 815 334-4204
FAX: 815 334-4621
CONFIDENTIAL
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10/1/13, she stated the Bus Schedule one ways are added based on whether a scheduled pickup
time is noted on the Bus Schedule and the drivers check marks should be ignored.

She also provided a spreadsheet to reduce the number of rides that had been calculated by the
Auditors Office. In addition, we were provided weather reports for the year that she
researched from www.almanac.com on 9/23/13 to substantiate whether a bus rider did in fact
ride his bike or actually took the bus. This was not indicated on the Bus Schedule that they
canceled 61 one ways because they rode their bike. Cancellations are noted on the Bus
Schedule for other riders.

Summarizing the Bus Schedules with either method leads to many more questions due to
inconsistencies with markings and the condition of the Bus Schedules. Also, there is still an
unaccounted difference according to Donna Kopsells analysis totaling $132 for calendar year
2012, which includes non paying riders. The Bus Schedules cannot be relied on exclusively to
make a determination as to whether there was a misappropriation of bus fares, so it cannot be
conclusively stated that a misappropriation occurred. However, there are still red flags
surrounding this issue that should be investigated further.

Also, it is difficult to determine if clients including Pioneer Center or the State were billed
appropriately for the bus rides based on the Bus Schedule. According to Donna Kopsell in her
written comments, 3 of the 12 checks from the State that were mailed to the Supervisors
Office were never deposited. Further interviews and testing would be necessary to make a
determination, which was determined to be outside of the scope of this audit.

This finding and recommendation still applies at the time of the review. Subsequent to the
audit, we have received a revised Bus Schedule developed by the new Road District
Administration to address the findings going forward that documents who rode the bus,
payment and if they were a senior.

Finding 3 Frequency of Deposits:

This finding still applies at the time of the review.

Finding 4 Reported Receipts for Senior Bus Fares:

As already stated, the bus rider logs were in such disarray that it is difficult to determine the
funds that were collected from the bus fares. About an average of $21 more in receipts a
month should have been reported on the quarterly grant reports based on an analysis performed
using Donna Kopsells new method of counting rides as compared to the $75 more in receipts
noted during audit fieldwork. Additionally, some of the difference in reported receipts may be
accounted for by riders that did not pay. Since, there was no documentation to support what
riders did pay and who didnt pay; it would be difficult for the Road District to accurately
determine the bus fares collected to document on the quarterly reports provided to the County.
This finding and recommendation still applies at the time of the review.

Finding 5 Quarterly Reports Submissions:

This finding still applies at the time of the review.
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Finding 6 Reimbursements for Total Expenses:

This finding still applies at the time of the review.

Finding 7 Clients Reported Include Non Seniors:

This finding still applies at the time of the review.

Finding 8 No Bus Driver Identified for Daily Bus Routes

This finding still applies at the time of the review.

Finding 9 Unsupported Salaries Expenses

This finding still applies at the time of the review.

Finding 10 Unsupported Fuel Expenses

The first part of the finding related to deletion of records still applies because written approval
should first be obtained from the Local Records Commission according to the Local Records
Act.

Donna Kopsell provided additional fuel invoices and more explanation on how fuel price was
calculated for the Assessor and the Fire District. The fuel price on the invoices does not tie to
what the Assessor and the Fire District was charged in the second half of 2012. However, the
fuel price calculation does tie to the Assessor and the Fire Districts rate in the first half of
2012. Additionally, there is still an over reporting of fuel costs on the quarterly reports of
approximately $800 based on the new information provided. The finding and
recommendations for maintaining fuel records still apply at the time of the review.

Finding 11 Unsupported Repair Expenses

This finding still applies at the time of the review.

Finding 12 Unsupported Insurance Expenses

This finding still applies at the time of the review.

Finding 13 Starting and Ending Miles Reported on Bus Schedule

This finding still applies at the time of the review.






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Additional Note Added to Addendum on July 31
st
, 2014

The Auditors Office discovered on Thursday, J uly 31, 2014 in the original internal audit
report, dated August 28, 2013 that the date the onsite audit was performed should have stated
Thursday, J une 27, 2013 versus Thursday, May 27, 2013 as noted in the first paragraph. May
27, 2013 (as listed in the report) was a Monday and was also a holiday (Memorial Day). The
other three Senior Services Grant internal audits that were performed occurred in May and the
Nunda Township Road Districts internal audit was originally planned for May in our schedule.
However, it was held off until J une due to the newness of staff and also the flooding that was
occurring.


CONFIDENTIAL