REPORT DIGEST

ILLINOIS RURAL BOND BANK

FINANCIAL AND COMPLIANCE AUDIT

For the Year Ended:
June 30, 2001

Summary of Findings:

Total this audit: 1
Total last audit: 2
Repeated from last audit: 0

Release Date:
April 3, 2002

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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 Agency’s property control records were inaccurate and documentation of an equipment transfer could not be located.

 

 

 

 

 

 

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

 

ILLINOIS RURAL BOND BANK
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 2001

EXPENSE AND REVENUE STATISTICS

FY 2001

FY 2000

Total Expenditures (All Funds)

$6,514,808

$7,187,407

OPERATIONS TOTAL (All Funds)
% of Total Expenditures

$625,749
9.6%

$ 982,182
13.7%

Salary and Benefits
% of Operations Expenditures
Average No. of Employees

$266,694
42.6%
4.25

$302,091
30.7%
5.50

Professional Services
% of Operations Expenditures

$144,763
23.1%

$119,545
12.2%

Financing Costs
% of Operations Expenditures

$ 66,119
10.6%

$403,935
41.1%

Equipment and Office Leases
% of Operations Expenditures

$47,719
7.6%

$54,075
5.5%

General and Administrative Expenditures
% of Operations Expenditures

$86,954
13.9%

$94,943
9.7%

Depreciation
% of Operations Expenditures

$13,500
2.2%

$7,593
.8%

INTEREST EXPENSE (Bond Funds and Public Project Construction Notes Fund)
% of Total Expenditures

$5,889,059

90.4%

$6,205,225

86.3%

Total Revenue (All Funds)

$6,257,234

$7,008,195
SELECTED ACTIVITY MEASURES

FY 2001

FY 2000

Revenue Bonds Outstanding

$87,065,000

$95,660,000

Loans Made During Year

$6,476,833

$19,575,147
AGENCY OFFICIAL(S)

Chair: Ms. Corinne Wood, Lieutenant Governor
Executive Director: Ms. Katherine A. Parker (until 7/31/01); Mr. Eric Watson (current)

 

 

 

 

 

 

 

 

 

Three items with value of $5,210 not listed on property records

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INACCURATE PROPERTY RECORDS

The Agency’s property control records were inaccurate and documentation of an equipment transfer could not be located.

During testing, we noted the following exceptions:
    • Two new computers and a postage meter purchased in a prior year with a total value of $5,210 were not recorded on the property control records.
    • An existing file server was recorded at the wrong value. The correct value was $421 less than the value shown on the property control records.
    • A desktop computer with a cost of $1,959 was sent to surplus, however the Agency could not locate documentation for the transfer.

The Illinois Administrative Code (44 Ill. Adm. Code 5010) requires agencies to record equipment at its purchase price and to record all changes to equipment records within 30 days. The State Records Act (5 ILCS 160/8) requires each Agency to maintain proper documentation of the Agency’s essential transactions.

Agency management indicated that the exceptions occurred due to clerical error. (Finding 1, page 12)

Bank officials agreed with our recommendation to review the process for recording transactions to the property control records and to keep documentation to support all surplus property transfers.

Mr. Eric Watson, Executive Director, provided responses to our recommendations.

AUDITORS’ OPINION

Our auditors state the Bank’s financial statements as of June 30, 2001 and for the year then ended are fairly presented in all material respects.

 

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WILLIAM G. HOLLAND, Auditor General

WGH:JAF:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Nykiel-Carlin & Co., LTD.