REPORT DIGEST
DEPARTMENT OF HEALTHCARE
AND FAMILY SERVICES -
COMMUNITY COLLEGE HEALTH
INSURANCE SECURITY FUND
FINANCIAL AUDIT For the Year Ended: June 30, 2007 Summary of Findings: Total this audit 1 Total prior audit N/A Release Date: June 18, 2008
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 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 available on the worldwide web at
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SYNOPSIS
{Financial Information and Activity Measures summarized on the reverse page. |
DEPARTMENT OF HEALTHCARE AND FAMILY SERVICES
COMMUNITY COLLEGE HEALTH INSURANCE SECURITY FUND
FINANCIAL AUDIT
Year Ended June 30, 2007
FINANCIAL OPERATIONS (in thousands) |
FY 2007 |
Additions Contributions Employer...……..................................................... State...……........................................................... Plan Member: Activities...……............................................... Retirees...……................................................. Consolidated
Omnibus Budget Reconciliation Act Total
contributions............................................ Interest
income...……................................................. Federal
government Medicare Part D.......................... Total
additions.................................................. Deductions Benefit
payments......................................................... Administrative
expense................................................ Total
deductions............................................... Net increase/(decrease) .......................................... Net
assets held in trust for other
postemployment benefits Beginning
of year.................................................. End
of year.......................................................... |
$
3,645 3,707
3,645 11,544 11 22,552 538 1,343 24,433 24,394 347 24,741 (308)
9,870 $
9,562 |
SUPPLEMENTARY INFORMATION |
FY 2007 |
Number of retirees and beneficiaries receiving benefits…... Number of waived retirees who may elect healthcare coverage in the future...……........................................ Number of terminated plan members entitled to
but not yet receiving benefits…….................................................. Number of active plan members....................................... Total…................................................................... Number of participating employers.................................... |
4,853 1,716
4,588 20,845 32,002 38 |
AGENCY DIRECTOR |
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During Audit Period: Mr.
Barry S. Maram Currently: Mr. Barry S. Maram |
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Failure to submit
financial statements timely |
INTRODUCTION
This digest covers the financial audit of the Community College Health
Insurance Security Fund for the year ended June 30, 2007. The financial audit report includes one
significant deficiency in internal control finding.
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
FINANCIAL STATEMENTS NOT TIMELY The Illinois Department of Healthcare and Family Services (Department) did not provide the auditors with timely financial statements for the Community College Health Insurance Security Fund. The Department did not provide
complete financial statements for the year ended June 30, 2007 to the
auditors until March 3, 2008.
Financial statements were received nine months after the year end. The Department’s management has the ultimate responsibility for the Department’s internal control system to ensure that the financial statements are timely. Department management stated that the delay in completing the financial statements was attributed to the implementation of Statement No. 43 of the Governmental Accounting Standards Board, Financial Reporting for Postemployment Benefit Plans Other than Pension Plans (GASB43). As part of the implementation, an actuary firm was acquired through the bid process and significant collaboration was necessary between the Department, the Governor’s Office of Management and Budget and the Teachers Retirement System, causing an overall delay in the reporting process. (Finding 1, pages 17-18) We recommended the Department review its current process for the preparation of the Community College Health Insurance Security Fund’s financial statements and allocate the resources necessary to ensure the financial statements are completed on a timely basis. Department management concurred with our recommendation and stated when a new standard is implemented it is critical that due care be given to ensure proper implementation. The implementation of this standard required that an actuarial valuation be performed. Once received, this valuation had to be reviewed by management within the Department and the Governor’s Office of Management and Budget (GOMB) to ensure that the information was accurate. Once the review was final, the financial statements were completed and supplied to the Auditor General’s Office. The extended timeframe necessary for completion of the report was four months following the initial due date of the statements. Although the Department recognizes the importance of providing timely financial information, we also realize the need for accurate data. As the initial implementation has now been completed, the Department does not anticipate delays in FY’08. AUDITORS’ OPINION
Our auditors state the financial statements of the Community College
Health Insurance Security Fund as of June 30, 2007, are fairly presented in
all material respects.
___________________________________
WILLIAM G.
HOLLAND, Auditor General
WGH:TLD:pp
AUDITORS ASSIGNED
This audit was performed by the staff of the Office of the Auditor General. |
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