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
April 15, 2010
State of Illinois
Office of the Auditor General
WILLIAM G. HOLLAND
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
• 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.
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
SPECIAL ASSISTANT AUDITORS
McGladrey & Pullen LLP was our special assistant auditors for this audit and examination.
#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.”