REPORT DIGEST
DEPARTMENT OF EMPLOYMENT SECURITY
FINANCIAL AUDIT
For the Year Ended:
June 30, 2002
Release Date:
March 13, 2003
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
Attn: Records Manager
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
INTRODUCTION
This report covers our financial audit of the Department of Employment Security’s Non-shared Funds for the year ended June 30, 2002. A compliance audit covering the two years ended June 30, 2003 will be performed next year.
AUDITORS’ OPINION
Our auditors stated that the financial statements present fairly, in all material respects, the financial position of the Non-shared Funds of the Department of Employment Security as of June 30, 2002, and the changes in financial position thereof for the year then ended.
Subsequent Event
On February 4, 2003, the Governor applied for repayable advances to the account of the Illinois Unemployment Trust Fund (UTF) from the federal unemployment account. The UTF account, from which funds are drawn to pay benefits to claimants, is expected to be depleted as of late February or early March 2003 due to
extended high unemployment. An initial borrowing of $450 million through April 2003 was approved which will be paid off in the first two weeks of May 2003 when first quarter employer tax contributions are received. Borrowing is projected to resume in June and continue through the end of calendar year 2003. The Department projects there will be a deficit in the trust fund through at least 2006.___________________________________
WILLIAM G. HOLLAND, Auditor General
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SPECIAL ASSISTANT AUDITORS
Our special assistant auditors for this audit were McGladrey & Pullen, LLP.