Fall 2009

HB1384 Becomes Public Act 96-0626 – New IPLS ACT

Governor Pat Quinn signed into law HB1384, which is the new Illinois Professional Land Surveyors Act (IPLS). Because of the changes to the law, new Administrative Rules will need to be drafted and approved by the Joint Committee on Administrative Rules (JCAR).

IPLSA Audit Review:

The firm of Cowan, Epperson & Associates, P.C. of Springfield, Illinois has completed the IPLSA audit of the financial activities for 2008.  Audit findings by the firm concluded the following:

There are no

a. Violations or possible violations of laws and regulations and provisions of contracts and grant agreements whose effects should be considered for disclosure in the financial statements, as a basis for recording a loss contingency, or for reporting on noncompliance.

b. Unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No. 5, Accounting for Contingencies

c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No. 5.

d. Designations of net assets disclosed to you that were not properly authorized and approved, or reclassifications of net assets that have not been properly reflected in the financial statements.

Lack of segregation of duties: During the period ending December 31, 2008 there were no policies to assure proper segregation, of duties in the accounting functions. The same individual is responsible for authorization, initiation, and reconciliation of accounts. These responsibilities should be segregated as much as possible based on the size of the staff and board involvement. Due to the size of the office and the fact that the executive director and the bookkeeper are married, additional safeguards should be built into the accounting process.

Procedures such as dual signature on checks over a specific amount (to be set by the board) should be out into place.  In addition, the treasurer or another board member should be one of the individuals signing checks for disbursement over the threshold set by the board.  To further protect the Association employees, individuals who are authorized to sign checks should be bonded.

Lack of accounting experience: The petty cash fund has not been reconciled for some time. Adjustment is needed to reduce the cash amount to that which is in the cash box.  This entry was not proposed as an audit adjustment as it was below materiality; however this reconciliation should be done in the current period.  Further, a policy to reconcile the petty cash fund should be out into place.

Fixed assets additions were not properly recorded during the year. There were several property and equipment purchases which were recorded as expenses. In the future these types of purchases need to be properly segregated and capitalized.  The Association does not have a written capitalization policy.  This type of policy would establish at what level the Association expenses or capitalization the addition of property and equipment.

Authorization: With regard to the expenditures for conference and seminars it is believed that it would be advantageous for the Association to come up with guidelines as to vendor selection and approval of spending.  There were some vendors hired in the past by volunteer organizers who may have been hired based upon personal relationships, rather than sound business practices.

Chapters:  There appears to be some confusion in regards to the Chapters financial information to be reported to the Internal Revenue Service.  Currently the Association does not consolidate the Chapters financial information into its own records.  Therefore the Chapters are responsible for obtaining their own federal identification numbers, filing their own income tax determination letters and income tax returns.  We recommend that the Association determine the course of action that should be taken.  Either, file a consolidated return with the Chapter or have the Chapters obtain the information mentioned above to file its own tax return.

Editor’s note: The lack of duty segregation is common in small offices especially in a two person office where it is difficult to separate out the various responsibilities.  With the employment of our new Associate Executive Director, Julia Langfelder, we have established new segregated duties. The petty cash fund has now been reconciled by the accountant.

IPLSA needs to establish a fixed asset account and adopt a written capitalization policy. We are working with the firm of Kyle McGinnis, CPA, who prepares the IPLSA 990 IRS tax forms, to develop the policy.

As for the issue of vendor selection for the conference, this recommendation is noted because previously a host conference Chapter selected a member’s relative to provide items for the conference.  In the past, the IPLSA office worked with two vendors who sought out the best price for items provided.  This is no inference that the vendor did anything wrong. It does establish the need however, to get price quotes from multiple vendors to ensure the best price is provided.

The issue contained in the Chapter findings is another item that has been brought up many times over the years.  Although the IPLSA Official Board of Directions (BOD) approves the Chapter Quarterly Reports at each BOD meeting, the BOD does not have the oversight of how and when Chapter money is received and spent.  It is the IPLSA staff recommendation that IPLSA implement stronger oversight of Chapter income and expenditures so that the funds can be included in the IPLSA 990 IRS tax filings.

Governor Quinn’s Cemetery Oversight Board Meeting

A meeting of Governor Pat Quinn’s Cemetery Oversight Board was held at the Thompson Center in Chicago, Illinois on Thursday, August 27^th.  IPLSA member Ron Bauer, PLS of the Northeast Chapter testified before the Board on a Geographic Information System (GIS) program that he developed as a solution to the issue of re-selling Cemetery Plots. After the presentation, the Board asked about the cost of establishing a GIS program.  It was recommended that Mr. Bauer develop a cost breakdown for three different sizes of cemeteries and report back to the task force.

UPDATE – UPDATE – UPDATE Governor Pat Quinn’s Cemetery Oversight Board submitted their report and recommendation to the Governor on September 15, 2009.  The report included a synopsis of Ron Bauer’s testimony. If the recommendations of the task force are to be considered they would have to be presented to the Illinois General Assembly in bill form.  Bob Church contacted several State legislators and staff people asking that IPLSA be part of the discussions of what would be included in any proposed legislation. 

91-Year Old Lady Ripped Off By Surveyors?

A 91-year old lady from Marshville, South Carolina had $102.00 stolen by three men posing as land surveyors.  Two of the men distracted the woman outside her home while the other man went in the house and took $102.00 of her Social Security money out of her purse. The police have the license number of the truck and are searching for the men.  A man from another part of the state saw the news report and sent her $102.00. 

The North Carolina Society of Surveyors (NCSS) and the National Society of Professional Surveyors (NSPS) offer advice to landowners who are approached by individuals claiming to be “surveyors”, as was the case in a recent incident in the town of Marshville and as has been recently reported in other parts of the country.

NSPS Executive Director Curt Sumner says, “Among the reasons listed as requirements for state licensure of Professional Surveyors is protection of the public. Surveyors take this charge very seriously, and wish to share with their fellow citizens some suggestions for insuring that anyone approaching them is legitimate.”

NCSS and NSPS suggest the following actions when you are approached:

• Always ask for identification: Picture ID and Business Card
• Call the number on the Business Card to confirm with the company that the person is a legitimate representative of that company, and is authorized to be at the site to perform a survey               
• Ask the person to identify the name of their client
• Look at the vehicle.  Is it marked with company signage or appropriately equipped?
• Are the individuals equipped to survey, do they possess maps, other documents, metal detectors, measuring tapes and the like?
• Call the police, if you are uncomfortable
• Never walk away from your house until you are certain that the person is legitimate
• Land surveying is an outside activity, be alert to individuals that claim to be “surveyors” who ask to enter your home.

Remember: Legitimate professional surveyors and their field personnel will never be upset to have you ask these questions.