REPORT DIGEST

ILLINOIS DEVELOPMENT FINANCE AUTHORITY

FINANCIAL AND COMPLIANCE AUDIT

(In accordance with the Single Audit Act and OMB Circular A-133)

For the Year Ended:
June 30, 2001

Summary of Findings:

Total this audit 1
Total last audit 0
Repeated from last audit 0

Release Date:
March 26, 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

  

 

 

 

 

 

 

SYNOPSIS
  • The Authority did not report three new bond issues, and the Authority’s trustee did not file numerous notices of bond payments to the Comptroller on a timely basis.

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the next page.}

ILLINOIS DEVELOPMENT FINANCE AUTHORITY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 2001
REVENUES AND EXPENSES (ENTERPRISE FUNDS)

FY 2001

FY 2000
Total Revenues

$4,083,751

$4,639,369
Administrative Service Fees
% of Revenues

$1,992,816
48.8%

$1,968,597
42.4%
Investment Income
% of Revenues

$1,198,848
29.4%

$1,906,513
41.1%
Interest on Loans
% of Revenues

$524,776
12.8%

$498,024
10.7%
Other Income
% of Revenues

$367,311
9.0%

$266,235
5.8%
Total Expenses

$2,980,276

$3,143,104
Salaries and Benefits.............................
% of Expenses................

$1,818,274
61.0%

$1,750,593
55.7%
Average No. of Employees

24

24
Contractual Services
% of Expenses

$859,321
28.8%

$1,018,711
32.4%
Other Items
% of Expenses

$302,681
10.2%

$373,800
11.9%
Net Income

$1,103,475

$1,496,265
Cost of Property and Equipment

$261,949

$274,552
SELECTED ACTIVITY MEASURES (Unaudited)

FY 2001

FY 2000

Total Number of Bond Issues and Loans Outstanding at June 30,

623

554
Total Number of New Bond Issues and Loans

83

72

Total Bond and Loan Value Outstanding (in millions)

$7,105

$6,805
Jobs Created or Retained during Year

1,689

1,103
AGENCY DIRECTOR

During Audit Period: Patrick E. Rea
Currently: Patrick E. Rea

 

 

 

 

The Authority did not report bond issues and notice of payments with the Comptroller timely

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

The Authority did not file the required documents for three new bond issues with the Comptroller within the thirty days as required by Statewide Accounting Management System (SAMS) procedure 31.30.10.

In addition, the Authority contracted with a bank to collect the Notices of Payment forms from various trustees. The bank was late filing the Notice of Payment forms with the Comptroller for 350 (7%) of 4,842 filings. The filings are due within thirty days of payment as required by SAMS procedure 31.30.20.

According to the Authority, a change in internal responsibilities caused a lack of management oversight of filing the new bond issues, and miscommunication between the bank and the Comptroller’s office contributed to the delinquency in filing the Notice of Payment forms.

We recommended the Authority implement procedures to ensure that it files the required documents for new bond issues within thirty days of closing and that the bank remit the Notices of Payments to the Comptroller in a timely manner. (Finding 1, page 13)

Authority management stated the trustees for the bond issues are responsible for reporting payments to the Authority. The authority then reports these payments to the Illinois Office of the Comptroller. Those trustees who were found to be delinquent have been notified, and new stringent monitoring controls have been instituted and implemented with the bank that is performing reporting services on behalf of the Authority. Internal controls are now in place to ensure new bond issue reporting within the required time frame.

AUDITORS’ OPINION

Our auditors state the financial statements of the Authority as of and for the year ended June 30, 2001 are fairly presented in all material respects.

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WILLIAM G. HOLLAND, Auditor General

WGH:JAF:pp

SPECIAL ASSISTANT AUDITORS

KPMG LLP were our special assistant auditors on this audit.