REPORT DIGEST

 

ILLINOIS GRAIN INSURANCE CORPORATION

 

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2009

 

Summary of Findings:

Total this audit:  2

Total last audit:  2

Repeated from last audit:  1

 

Release Date:

April 15, 2010

 

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 also available on the worldwide web at http://www.auditor.illinois.gov

 

 

 

SYNOPSIS

 

           The Corporation has not established the $2,000,000 Grain Insurance Reserve Fund as required by the Grain Code.

 

           The Corporation did not file the annual Agency Fee Imposition Report with the Illinois Office of the Comptroller as required by the State Comptroller Act.

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

GRAIN INSURANCE RESERVE FUND NOT FUNDED

 

            The Illinois Grain Insurance Corporation has not funded the $2,000,000 Grain Insurance Reserve Fund as required by the Grain Code.

 

            As of the end of our examination fieldwork on October 31, 2009, the Corporation had not established the $2,000,000 Grain Insurance Reserve Fund required by the Grain Code.

 

            The Corporation’s management indicated the Grain Insurance Reserve Fund was not funded because the funds were not appropriated.  Management also indicated that they did not request an appropriation in fiscal years 2008 and 2009 because of budgetary constraints on the General Revenue Fund.  (Finding 1, page 11)  This finding was first reported in 2005.

 

            We recommended the Corporation comply with the law by working with the Office of Management and Budget to obtain the necessary appropriation to fund the Grain Insurance Reserve Fund or seek legislative relief from the statutory requirement.

 

            Corporation officials agreed with our recommendation and stated they would request an appropriation to fund the Grain Insurance Reserve Fund.  (For previous agency response, see Digest Footnote #1.)

 

AGENCY FEE IMPOSITION REPORTS NOT FILED

 

            The Illinois Grain Insurance Corporation did not file the annual Agency Fee Imposition Report (Report) with the Office of the Comptroller (Comptroller) as required by the State Comptroller Act.

 

            During our examination, we noted the Corporation did not file the Reports with the Comptroller’s office by August 1 for the fiscal years ended June 30, 2008 or June 30, 2009.

 

            The Corporation’s management indicated that failure to file the report was an oversight.  (Finding #2, page 12)

 

            We recommended the Corporation file the Agency Fee Imposition Report with the Comptroller by August 1 each year. 

           

            Corporate officials agree with the finding and indicated it would file the Agency Fee Imposition Report with the Comptroller by August 1 each year.

           

 

AUDITORS’ OPINION

 

            Our auditors state the Illinois Grain Insurance Corporation’s financial statements for the years ended

June 30, 2009 and June 30, 2008 were fairly presented in all material respects.

 

 

WILLIAM G. HOLLAND, Auditor General

 

WGM:JAF:pp

 

SPECIAL ASSISTANT AUDITORS

 

            McGladrey & Pullen LLP was our special assistant auditors for this audit and examination.

 

 

DIGEST FOOTNOTE

 

#1 – GRAIN INSURANCE RESERVE FUND NOT FUNDED – (Previous Agency Response)

 

2007:  “The agency agrees with the finding and will request an appropriation to fund the Reserve Fund.”