REPORT DIGEST

OFFICE OF THE COMPTROLLER

FISCAL OFFICER RESPONSIBILITIES

FINANCIAL AUDIT

For the Year Ended: June 30, 2011

Release Date: April 26, 2012

Summary of Findings:

Total this audit: 1

Total last audit:  4

Repeated from last audit: 1

State of Illinois, Office of the Auditor General

WILLIAM G. HOLLAND, AUDITOR GENERAL

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Office of the Auditor General, Iles Park Plaza, 740 E. Ash Street, Springfield, IL 62703

(217)    782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are also available on the worldwide web at www.auditor.illinois.gov

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INTRODUCTION

This digest covers our financial audit and compliance examination of the State of Illinois Office of the Comptroller – Fiscal Officer Responsibilities for the year ended June 30, 2011. 

SYNOPSIS

• The State of Illinois Office of the Comptroller (Office) did not make all statutorily mandated transfers from the General Revenue Fund within established timeframes, as required.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LATE PAYMENT OF STATUTORILY MANDATED TRANSFERS

The Office of the Comptroller (IOC) did not make all transfers from the General Revenue Fund within the established timeframes, as required by statute.

The IOC processed transfers from 31 to 454 days after the mandated transfer date for a total of $2.48 billion in FY11.  Failure to make inter-fund transfers within applicable timeframes is in noncompliance with State law and might result in delayed use of appropriated funds.

Office officials stated the late payment of transfers occurred because of cash management decisions and prioritization due to the lack of available cash in the State Treasury.  Further, some statutory provisions relating to transfers contain language such as “as soon as practicable.”   (Finding No. 11-1, page 10-11)    This finding was first reported in 2009.

Office officials accepted the recommendation and stated taking into account the financial condition of State funds the Office will continue its efforts to make transfers in the timeliest manner possible.

AUDITORS’ OPINION

We conducted a compliance examination of the Comptroller's Fiscal Officer Responsibilities for the year ended June 30, 2011 as required by the Illinois State Auditing Act.

Our auditors stated the fund balances at June 30, 2011, and the revenues and expenditures for the year then ended relating to the State of Illinois, Office of the Comptroller - Fiscal Officer Responsibilities’ Traditional Budgetary Financial Report, are fairly presented in all material respects.  The auditors noted the financial statements have been prepared on a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.

The budgetary basis fund balance of the General Funds increased by $1,586,691,037 during the fiscal year ended June 30, 2011.   At June 30, 2011, the budgetary basis fund balance of the General Funds was a deficit of $4,507,411,953.

WILLIAM G. HOLLAND

Auditor General

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SPECIAL ASSISTANT AUDITORS

Sikich LLP were our Special Assistant Auditors for this engagement.

DIGEST FOOTNOTES

#1 - LATE PAYMENT OF STATUTORILY MANDATED TRANSFERS

2010:  Office officials concurred with the recommendation and stated they would continue efforts to make transfers in as timely manner as possible.