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, 1997

Summary of Findings:

Total this audit 1
Total last audit 2
Repeated from last audit 0




Release Date:
March 5, 1998




State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046

SYNOPSIS

  • The Authority needs to enhance its financial planning of loan programs to assure monies are available for future economic development.
{Expenditures and Activity Measures are summarized on the next page.}

 

ILLINOIS DEVELOPMENT FINANCE AUTHORITY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 1997

REVENUES AND EXPENSES

FY 1997

FY 1996

  • Total Revenues

Application Fee
% of Revenues

Annual Fees
% of Revenues

Loan Interest
% of Revenues

Other Income
% of Revenues

  • Total Expenses

Salaries and Benefits
% of Expenses
Average No. of Employees

Contractual Services
% of Expenses

Other Items
% of Expenses

  • Net Income
  • Cost of Property and Equipment

$3,010,065

$68,825
2%

$1,920,603
64%

$414,650
14%

$605,987
20%

$2,739,413

$1,502,793
55%
25

$925,277
34%

$311,343
11%

$270,652
$587,234

$4,794,032

$267,018
6%

$1,839,259
38%

$388,148
8%

$2,299,607
48%

$2,734,072

$1,321,770
48%
25

$940,329
35%

$471,973
17%

$2,054,177
$571,044

SELECTED ACTIVITY MEASURES

FY 1997

FY 1996

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

465

447

  • Total Number of New Bond Issues and Loans

70

35

  • Total Bond and Loan Value Outstanding (in millions)

$4,689

$4,130

  • Jobs Created or Retained during Year

1,173

1,335

AGENCY DIRECTOR
During Audit Period: Mr. Bobby J. Wilkerson
Currently: Mr. Bobby J. Wilkerson

 















Need to develop plan for new development programs

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

NEED TO ENHANCE FINANCIAL PLANNING

During 1997, the Authority initiated new loan programs designed to maximize improvement of economic development. The Authority has eight funds for providing development monies. Cash flows out of the funds as loans are made, and in as the loans are repaid.

The Authority has not developed a financial plan to set forth the funding limitations and the implementation schedule for integrating new programs into existing and future cash flows. Accordingly, without such a plan, the risk exists that the Authority may over commit itself to particular programs, and restrict too many assets in programs that may provide reduced future earnings. (Finding 1, pages 14 - 15)

We recommended the Authority develop a financial plan to guide its future activities in implementing its new development programs.

The Authority accepted the recommendation and responded that it has started implementing an Asset Management Plan that will include formal investment policies and procedures for managing assets by funds to provide future financial service development. The response was provided by the Authority's Executive Director, Mr. Bobby J. Wilkerson.

AUDITORS' OPINION

Our auditors state the June 30, 1997 financial statements of the Authority are fairly presented.




____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:KMM:pp

SPECIAL ASSISTANT AUDITORS

Arthur Andersen LLP were our special assistant auditors on this audit.