SUBSIDY TO THE ILLINOIS COMMUNITY COLLEGE
Since November 1991, the
Illinois Community College Board (the ICCB) has
used appropriated general revenue funds to
subsidize an estimated $13,135 in costs of the
Illinois Community College System Foundation (the
The ICCB's appropriation bill did not
specifically authorize expenditures on behalf of
the Foundation. According to appropriation
language, the ICCB's funding was for " the
ordinary and contingent expenses of the (ICCB)
central office ." Neither the appropriation
bill nor its supporting budget documents
disclosed the expected subsidies. The ICCB should
advise the legislative appropriations committees,
in writing, of the amounts of any expected
subsidies to outside organizations.
The Auditor General has reported subsidies
made by other State agencies to outside
organizations. Those subsidies have typically
been provided to organizations which directly
benefit a State agency. This situation differs.
The Illinois Community College System Foundation
does not directly benefit a State agency. Rather,
it was created to benefit the 49 community
colleges which are all part of local government.
(Finding 1, page 9)
ICCB officials state that they have in the
past disclosed to appropriations staff the
relationship between the ICCB and the Foundation.
According to the response, the ICCB will continue
to provide fiscal and other pertinent information
concerning the relationship between the ICCB and
the Foundation to the legislature and legislative
In recent years, the Foundation paid $36,000
for the development of a uniform financial
reporting system for the Illinois community
colleges. Officials indicate that this payment
was beneficial to both the ICCB and the Illinois
community college system.
GRANTS - LATE REFUNDS
Our audit disclosed 20 out of 32 grant refunds
from community colleges were received late. The
late refunds totaled $46,909. The Grant Funds
Recovery Act requires unused grant funds to be
returned within 45 days of the end of the grant
period. (Finding 3, page 16)
ICCB officials accepted our recommendation to
enforce its deadline for submitting refunds or
unexpended grant funds.
The remaining findings and recommendations
were less significant and have been given
appropriate attention by the ICCB management. We
will review progress toward implementation of our
recommendations during our next audit. Responses
were provided by Mr. Michael Srbljan, Deputy
Director for Fiscal Affairs.