REPORT DIGEST DEPARTMENT OF CENTRAL MANAGEMENT SERVICES SELECTED SPECIAL REVENUE FUNDS AND ALL ENTERPRISE AND INTERNAL SERVICE FUNDS FINANCIAL AUDIT For the Year Ended: June 30, 2001 Release Date: State of Illinois Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL To obtain a copy of the Report contact: (217)782-6046 or TDD (217) 524-4646 This Report Digest is also available on |
INTRODUCTION Our financial audit was limited to an examination of the Departments financial statements for selected special revenue funds and all of the Departments Enterprise and Internal Service Funds. A full compliance audit of the Department is scheduled to be performed for the two-year period ending June 30, 2002. FUNDS AUDITED Our auditors performed a financial audit for the year ended June 30, 2001 on the following funds: SPECIAL REVENUE FUNDS Wireless Service Emergency Fund ENTERPRISE FUNDS Local Government Health Insurance Reserve Fund INTERNAL SERVICE FUNDS State Garage Revolving Fund
FUND DEFICITS The Departments financial statements and related note disclosures reflect fund deficits at June 30, 2001 for two of its enterprise funds: 1) Local Government Health Insurance Reserve Fund (LGHIRF) and 2) Teachers Health Insurance Security Fund (THISF). |
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The Local Government Health Insurance Reserve Fund was established to provide health and dental insurance to participating local governmental entities. This fund showed a retained earnings deficit of $15,133,000. The Department raised premium rates by 15.8% for fiscal year 2002 in an effort to reduce the deficit. Further, Department officials indicate they intend to continue to increase rates sufficiently to meet program costs and to eventually eliminate the deficit. At June 30, 2001 there were 630 local governmental entities participating in the LGHIRF with approximately 14,700 employees and 12,500 dependents covered. (pages 14-15, 37-39, & 42) The Teachers Health Insurance Security Fund was established to provide health insurance for the Illinois Teachers Retirement System benefit recipients and dependent beneficiaries. This fund showed a retained earnings deficit of $15,319,000. The Department raised premium rates by 21% for fiscal year 2002 in an effort to reduce the deficit. Further, Department officials indicate they intend to seek sufficient funding to meet program costs and eventually eliminate the deficit. There were approximately 34,450 annuitants and 6,720 dependents enrolled in the THISF at June 30, 2001. (pages 14-15, 39-41, & 43) AUDITORS OPINION Our auditors stated the Departments financial statements as of June 30, 2001 and for the year then ended are fairly presented in all material respects.
___________________________________ WILLIAM G. HOLLAND, Auditor General WGH:KAL:pp SPECIAL ASSISTANT AUDITORS Sikich Gardner & Co. LLP were our special assistant auditors for this audit. |