REPORT DIGEST

ILLINOIS RURAL BOND BANK

FINANCIAL AND COMPLIANCE AUDIT

For the Year Ended:

June 30, 2000

Summary of Findings:

Total this audit: 2

Total last audit: 4

Repeated from last audit: 0

Release Date:
March 22, 2001

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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

  

 

 

SYNOPSIS
  • The Bank incorrectly calculated the final pay for terminated employee. The employee received excess pay of $424 for accumulated vacation and sick days.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

ILLINOIS RURAL BOND BANK
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 2000

EXPENSE AND REVENUE STATISTICS

FY 2000

FY 1999

Total Expenditures (All Funds)

$7,187,407

$7,568,275

OPERATIONS TOTAL (All Funds)

% of Total Expenditures

$982,182

13.7%

$1,477,416

19.5%

Personal Services
% of Operations Expenditures
Average No. of Employees

$224,893
22.9%
5.5

$245,170
16.6%
7

Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

$77,198
7.8%

$79,139
5.4%

Professional Services
% of Operations Expenditures

$119,545
12.2%

$47,200
3.2%

Financing Costs
% of Operations Expenditures

$403,935
41.1%

$972,180
65.8%

Equipment and Office Leases
% of Operations Expenditures

$54,075
5.5%

$40,126
2.7%

General and Administrative Expenditures
% of Operations Expenditures

$94,943
9.7%

$85,301
5.8%

Depreciation
% of Operations Expenditures

$7,593
.8%

$8,300
.5%

INTEREST EXPENSE (Bond Funds and Public Project Construction Notes Fund)

% of Total Expenditures


$6,205,225

86.3%


$6,090,859

80.5%

Total Revenue (All Funds)

$7,008,195

$7,310,111
SELECTED ACTIVITY MEASURES

FY 2000

FY 1999

Revenue Bonds Outstanding

$95,660,000

$88,585,000

Loans Made During Year

$19,575,147

$31,493,000
AGENCY OFFICIAL(S)

Chairman: Corinne Wood, Lieutenant Governor
Executive Director: Katherine A. Parker

 

 

 

 

 

 

An employee received excess pay of $424 for accumulated vacation time and sick leave.

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

EMPLOYEE’S TERMINATION PAY CALCULATED INCORRECTLY

The Bank incorrectly calculated the final pay for one employee terminated during the audit period.

The employee received $424 more than he was entitled to for his final pay. The number of accumulated vacation and sick days used to calculate the final pay were incorrect.

The State Finance Act (30 ILCS 105/14a(c)) states that employees are entitled to be paid for all accumulated vacation time and one half of unused sick leave, accrued on or after January 1, 1984 and prior to January 1, 1998, provided the employee is not employed in another position in State service within 30 calendar days of such termination.

The error occurred in calendar year 1999 and the excess amount paid was not reimbursed. (Finding 00-1, page 12)

We recommended the Bank implement procedures to ensure the proper calculation of final pay for all terminated employees. The Bank agreed with our recommendation and stated it has implemented measures to assure that future calculations are correct.

OTHER FINDINGS

The remaining finding was less significant and is being given attention by the Bank. We will review progress toward implementing our recommendation during our next audit.

Ms. Katherine A. Parker, Executive Director, provided responses to our recommendations.

AUDITORS’ OPINION

Our auditors state the Bank’s financial statements as of June 30, 2000 and for the year then ended are fairly presented in all material respects.

 

___________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Nykiel, Carlin, Lemna & Co.