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REPORT DIGEST JUDGES’ RETIREMENT SYSTEM OF COMPLIANCE
EXAMINATION For the Year Ended: June 30, 2008 Summary of Findings: Total this report 2 Total last report 1 Repeated from
last report 0 Release Date: May 21, 2009
State of
Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL To obtain a copy of the
Report contact: Office of the Auditor
General
(217) 782-6046 or TTY (888)
261-2887 This Report Digest and the
Full Report are also available on the worldwide web at http://www.auditor.illinois.gov |
INTRODUCTION This
digest covers our compliance attestation examination of the Judges’
Retirement System of Illinois’ (System) for the year ending June 30,
2008. A financial audit covering the
year ending June 30, 2008 was previously released on January 15, 2009. It should be noted that, pursuant to the
Illinois Pension Code, investments of the System are managed by the Illinois
State Board of Investment. The auditors identified 2 findings
during their testing. Following is a
summary of the finding included in this digest. ¨
The System did not have a process to review
financial journal entries independent of the person who initiates and posts
them to the financial records. {Financial Data and Supplementary Information are summarized on the reverse page.} |
COMPLIANCE
EXAMINATION
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OPERATING STATEMENT ANALYSIS |
FY 2008
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FY 2007
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Contributions –
Appropriations & other............................
Total Contributions.................................................. Net investment income................................................... Net appreciation (depreciation) in fair
value of investments. Interest earned on cash balances..................................... Total Revenue......................................................... EXPENSES: Benefits -Temporary disability........................................ Benefits - Retirement annuities.................................... Benefits -
Survivors' annuities......................................... Total Benefits....................................................... Refunds........................................................................ Administration............................................................... Total
Expenses....................................................... Revenues over (under) expenses..................................... |
$ 15,443,114 46,977,961 $ 62,421,075 15,181,515 (53,819,542) 661,567 $ 24,444,615
$ 47,643 64,863,585 15,601,364 $ 80,512,592 842,003 500,396 $ 81,854,991 $ (57,410,376) |
$14,152,973 35,236,800 $49,389,773 14,742,583 82,846,751 568,347 $147,547,454 $ 0 60,911,363 14,704,503 $ 75,615,866 620,577 454,210 $ 76,690,653 $
70,856,801 |
FY 2008
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FY 2007
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$ 658,193,724 (30,400,000) $ 627,793,724
17,361,610 (2,180,095) $ 15,181,515 31,044,723 (84,864,265) $ (53.819.542) $ (38,638,027) $ 589,155,697 |
$ 582,604,390 (22,000,000) $ 560,604,390
16,856,427 (2,113,844) $ 14,742,583 44,102,554 38,744,197 $ 82,846,751 $ 97,589,334 $658,193,724 |
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iNVESTMENTS USED FOR Benefits and Expenses |
FY 2008
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FY 2007
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Appropriations & other .................................... Total
Contributions (5)................................. DEDUCTIONS:
Benefits............................................................ Refunds............................................................ Administration................................................... Total Deductions (6)...................................... Investments used to Pay
Benefits and Expenses (5)-(6) ........................ |
$ 15,443,114 46,977,961 $ 62,421,075 $ 80,512,592 842,003 500,396 $ 81,854,991 $(19,433,916) |
$ 14,152,973 35,236,800 $ 49,389,773 $ 75,615,866 620,577 454,210 $ 76,690,653 $(27,300,880) |
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SUPPLEMENTARY
INFORMATION |
FY 2008
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FY 2007
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Number of System
employees............................................................. Retirees and beneficiaries receiving benefits
(unaudited)......................... Total members (unaudited)................................................................. Total
active members (unaudited)........................................................ Total
return on investments (unaudited)............................................... |
6 957 982 957 (6.2)% |
6 946 990 957 17.1% |
EXECUTIVE SECRETARY
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During
Audit Period: Timothy B. Blair, Acting Currently: Timothy B. Blair, Acting |
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Same individual prepares and posts the financial
journal entries |
FINDINGS,
CONCLUSIONS, AND RECOMMENDATIONS JOURNAL ENTRY REVIEW
During our testing, we
noted the same individual prepares and posts the financial journal
entries.
System personnel indicated the lack of
appropriate personnel to perform a meaningful review contribute to the
current procedures. A lack of an independent review of journal
entries leaves the System open to risks of error and material misstatement of
financial information. Because
of the lack of an independent review of journal entries, we are considering
this to be a significant deficiency in the System’s internal control.
We recommended someone other than the
person preparing and posting the journal entries review the journal entries
and the related supporting documentation for accuracy and that the review be
documented. (Finding 08-1, page 7) System management concurred with the
recommendation and indicated they will institute a system to have all
financial journal entries and supporting documentation reviewed by a person
independent of the person that initiates them. OTHER FINDING
The remaining finding
is reportedly being given attention by the System. We will review the System’s progress toward
the implementation of our recommendations in our next engagement. ACCOUNTANTS’ REPORT We conducted a compliance attestation
examination of the System for the year ended June 30, 2008 as required by the
Illinois State Auditing Act. The accountants’ report does not contain any
scope limitations, disclosures or other significant non-standard language. _____________________________________ WILLIAM
G. HOLLAND, Auditor General WGH:RPU:pp SPECIAL ASSISTANT AUDITORS
The public accounting firm of BKD LLP was our special assistant auditor for this engagement. |