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

www.auditor.illinois.gov

 

 

 

 

 

 

 

SYNOPSIS

 

  • The Illinois Department of Healthcare and Family Services did not provide the auditors with timely financial statements for the Community College Health Insurance Security Fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{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

 

During Audit Period:  Mr. Barry S. Maram

Currently:  Mr. Barry S. Maram           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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.