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:
February 13, 2002

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State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

To obtain a copy of the Report contact:
Office of the Auditor General
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

INTRODUCTION

Our financial audit was limited to an examination of the Department’s financial statements for selected special revenue funds and all of the Department’s 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 auditor’s performed a financial audit for the year ended June 30, 2001 on the following funds:

SPECIAL REVENUE FUNDS

Wireless Service Emergency Fund
Wireless Carrier Reimbursement Fund

ENTERPRISE FUNDS

Local Government Health Insurance Reserve Fund
Teachers Health Insurance Security Fund
Community College Health Insurance Security Fund

INTERNAL SERVICE FUNDS

State Garage Revolving Fund
Statistical Services Revolving Fund
Paper and Printing Revolving Fund
Communications Revolving Fund
State Surplus Property Revolving Fund
Health Insurance Reserve Fund

 

FUND DEFICITS

The Department’s 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).

 

 

 

 

 

 

 

 

 

 

 

 

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 Department’s financial statements as of June 30, 2001 and for the year then ended are fairly presented in all material respects.

 

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WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Sikich Gardner & Co. LLP were our special assistant auditors for this audit.