REPORT DIGEST

 

ILLINOIS HEALTH FACILITIES AUTHORITY

 

FINANCIAL AND COMPLIANCE AUDIT

For the Six Months Ended:

December 31, 2003

(Final Audit)

 

Summary of Findings:

Total this audit                       2

Total last audit                       0

Repeated from last audit        0

 

Release Date:

July 15, 2004

 

 

 

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 TDD (217) 524-4646

 

 

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

SYNOPSIS
  • The Authority made several errors in financial reporting that required adjustments to the Authority’s financial statements.
  • The Authority failed to file certain reports with the appropriate State agencies in a timely manner.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the next page.}

 

 

                          ILLINOIS HEALTH FACILITIES AUTHORITY

                              FINANCIAL AND COMPLIANCE AUDIT

                           For The Six Months Ended December 31, 2003

 

REVENUES AND EXPENSES

For The Six Months Ended December 31, 2003

For The Year Ended June 30, 2003

! Total Revenues

$1,137,490

$1,544,372

Application Fees

% of Revenues

$673,849

59%

$441,545

29%

Annual Fees

% of Revenues 9;

$419,580

37%

$856,665

55%

Investment Income

% of Revenues

$44,014

4%

$246,062

16%

Other Income

% of Revenues

$47

0%

$100

0%

! Total Expenses

 

$1,585,439

$1,352,971

Salaries and Benefits

% of Expenses

$224,653

14%

$431,027

32%

Average No. of Employees

5

5

Contractual Services

% of Expenses

$893,875

56%

$701,984

52%

Other Items

% of Expenses

$466,911

30%

$219,960

16%

! Change in Net Assets

($447,949)

$191,401

! Cost of Property and Equipment

$14,949

$14,949

SELECTED ACTIVITY MEASURES

For The Six Months Ended December 31, 2003

For The Year Ended June 30, 2003

! Total Number of Bond Issues

273

266

! Total Number of New Bond Issues

19

12

! Total Bond Issue Value Outstanding (in millions)

$9,606

$9,377

AGENCY DIRECTOR

During Audit Period: Mary McInerney

Currently: Mary McInerney

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Authority’s financial statements contained several errors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reports were filed between 31 and 89 days late or were not filed at all

 

 

 

 

 

 

 

 

 

INTRODUCTION

On May 31, 2003, the 93rd General Assembly passed Senate Bill 1075 which became Public Act 93-0205 on July 17, 2003. This act repeals the enabling legislation of the Authority and several other bonding authorities effective January 1, 2004 and creates the Illinois Finance Authority. The activities of each of the bonding authorities were transferred to the Illinois Finance Authority on January 1, 2004. This is the final audit of the Illinois Health Facilities Authority.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FINANCIAL STATEMENT ADJUSTMENTS

The Illinois Health Facilities Authority (Authority) made several errors in financial reporting that required adjustments to its financial statements.

During our audit we noted four different types of accounting and reporting errors. The errors related primarily to accruals that should have been recorded in the books and included in the Authority’s financial statements. Adjustments were made to the financial statements to correct the errors. (Finding 1, pages 10-11)

We recommended that the Authority develop procedures to ensure that their basic financial statements are properly prepared in accordance with GAAP and that the method used to record Authority transactions is consistent from year to year.

Authority officials agreed with our recommendation and stated that new accounting procedures have been developed starting January 1, 2004.

REPORTS NOT FILED IN A TIMELY MANNER

The Authority failed to file certain reports with the appropriate State agencies in a timely manner.

During our audit we noted certain reports that were supposed to be filed with various State agencies, were either filed late or were not filed at all. The reports were filed between 31 and 89 days late.

The Statewide Accounting Management System (SAMS) requires State Comptroller reports be filed no later than the last day of the month following the end of the quarter.

We recommended the Authority implement procedures to ensure that all required reports are filed with the appropriate State agencies in a timely manner.

Authority officials accepted our recommendation and stated that they have now assigned this responsibility to an accounting professional. The Authority also stated that they are now utilizing a compliance calendar to track pending reporting requirements.

Mr. Michael Pisarcik, Chief Administrative Officer and Treasurer of the Illinois Finance Authority, provided the Authority’s responses.

 

AUDITORS’ OPINION

Our auditors stated the financial statements of the Illinois Health Facilities Authority as of December 31, 2003, and for the six months then ended, are fairly presented in all material respects.

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:TLK:pp

SPECIAL ASSISTANT AUDITORS

Nykiel Carlin & Co., Ltd. were our special assistant auditors for this audit.