REPORT DIGEST

ILLINOIS POWER AGENCY
NONSHARED GOVERNMENTAL FUNDS

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2017

Release Date:  February 14, 2018

FINDINGS THIS AUDIT:  0

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 0 -- 1
Category 2:  0 -- 0 -- 0
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 0 -- 1

FINDINGS LAST AUDIT: 0

Category 1: Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State laws
and regulations (material noncompliance).
Category 2: Findings that are significant
deficiencies in internal control and
noncompliance with State laws and
regulations.
Category 3: Findings that have no internal
control issues but are in noncompliance with
State laws and regulations.

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, 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
www.auditor.illinois.gov

INTRODUCTION

The Agency’s mission is (1) to oversee the
electricity planning and procurement
processes to ensure adequate, reliable,
affordable, efficient, and environmentally
sustainable electric service at the lowest
cost over time for the residential and small
commercial customers of Commonwealth Edison,
the Ameren Illinois Company, and the
MidAmerican Energy Company and (2) to procure
renewable energy using the resources of the
Illinois Power Agency Renewable Energy
Resources Fund.

This digest covers the financial audit of the
Agency’s nonshared governmental funds as of
and for the year ended June 30, 2017.  Our
next engagement will include a financial
audit of the Agency’s nonshared governmental
funds as of and for the year ended June 30,
2018 and a State Compliance Examination of
the entire Agency for the two years ending
June 30, 2018.

SYNOPSIS

• (17-01) The Agency did not report
contractual commitments to the Office of the
State Comptroller.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO REPORT CONTRACTUAL COMMITMENTS

The Illinois Power Agency (Agency) did not
report contractual commitments to the Office
of the State Comptroller (Comptroller).

During testing, we noted the Agency did not
report contractual commitments, totaling
$25.464 million, for the purchase of
Renewable Energy Credits in future years to
the Comptroller.  While this commitment was
not included on the Agency’s annual Form
SCO-599 used by the Comptroller to prepare
the State’s Comprehensive Annual Financial
Report, this commitment was properly included
as a note disclosure within the Agency’s
financial statements.   (Finding 1, pages
23-24)

We recommended the Agency ensure its
contractual commitments are reported to the
Comptroller on the Form SCO-599 during the
State’s financial reporting process.

Agency officials agreed with our
recommendation.

AUDITOR’S OPINIONS

The auditors stated the financial statements
of the Illinois Power Agency Operations Fund,
the Illinois Power Agency Renewable Energy
Resources Fund, and the Illinois Power Agency
Trust Fund as of and for the year ended June
30, 2017, are fairly stated in all material
respects.

This financial audit was conducted by the
Office of the Auditor General’s staff.

JANE CLARK
Division Director

This report is transmitted in accordance with
Section 3-14 of the Illinois State Auditing
Act.

FRANK J. MAUTINO
Auditor General

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