REPORT DIGEST
DEPARTMENT OF HEALTHCARE AND FAMILY SERVICES -
COMMUNITY COLLEGE HEALTH INSURANCE SECURITY FUND
FINANCIAL AUDIT
For the Year Ended: June 30, 2009
Summary of Findings:
Total this audit: 1
Total last audit: 3
Release Date:
May 11, 2010
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
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SYNOPSIS
INTRODUCTION
This digest covers the financial audit of the Community
College Health Insurance Security Fund for the year ended June 30, 2009. The financial audit report includes one
finding pertaining to significant deficiency in internal control.
FINDINGS,
CONCLUSIONS, AND RECOMMENDATIONS
FINANCIAL STATEMENT PRESENTATION
The Department’s year-end financial reporting in accordance
with generally accepted accounting principles (GAAP) to the Illinois Office of
the Comptroller (Comptroller) contained weaknesses and inaccuracies. These problems, if not detected and
corrected, could materially misstate the Community College Health Insurance
Security Fund’s (Fund) financial statements.
In addition, financial reporting was not timely.
During our audit of the June 30, 2009 Fund’s financial
statements, we noted:
• The GAAP
Reporting Package was not submitted to the Comptroller in a timely manner. The GAAP Reporting Package was submitted to
the Comptroller 6 days late. In
addition, the Comptroller submitted to the Department review comments for the GAAP
Reporting Package on September 28, 2009; however, the Department did not provide
a response to those review comments until October 23, 2009. Further, a complete set of the Fund’s
financial statements was not provided to the auditors until February 12, 2010,
seven and a half months after the year end.
• To complete
the Fund’s financial statements, the Department was required to obtain and
include in the Fund’s financial statements actuarial valuations for purposes of
complying with the requirements of Statement No. 43 of the Governmental
Accounting Standards Board. These actuarial
valuations were not available to the auditors until January 8, 2010.
• We noted
weaknesses in the financial accounting for, and reporting of, revenue and
expense accounts. Specifically, the
Department did not correctly calculate revenues and expenses resulting in an
overall adjustment totaling $1.034 million to reduce revenues and
expenses. (Finding 1, pages 17-18)
We recommended the Department implement additional internal
control procedures to ensure GAAP Reporting Packages are prepared in an accurate
and timely manner.
Department officials concurred with our recommendation and
stated that they are continually assessing the financial reporting process and
implementing procedures to improve upon timeliness and accuracy. As an ongoing effort the Department continues
to strive to meet the mandated deadlines, which resulted in the GAAP Reporting
Package being submitted in a more timely manner this
year than in prior years.
AUDITORS’ OPINION
Our auditors state the financial statements of the Community
College Health Insurance Security Fund as of June 30, 2009, 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.