REPORT DIGEST

ILLINOIS GRAIN INSURANCE CORPORATION

FINANCIAL AND COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 1999

Summary of Findings:

Total this audit 1
Total last audit 3
Repeated from last audit 1

Release Date:
March 23, 2000

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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 Illinois Grain Insurance Corporation did not maintain adequate internal control over its receipt processing system.

 

 

 

 

 

 

 

 

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

 

ILLINOIS GRAIN INSURANCE CORPORATION

FINANCIAL AND COMPLIANCE AUDIT

For The Two Years Ended June 30, 1999

FINANCIAL ACTIVITY

FY 1999

FY 1998

FY 1997

Total Revenues
Assessments Fees
Penalties
Interest Income
Recovery of Claims Paid

$699,383
$113,432
$3,000
$181,538
$401,413

$279,593
$76,210
$5,000
$170,990
$27,393

$1,209,172
$1,024,507
$6,750
$125,701
$52,214
Expenditures, transfers, other (uses) and sources of funds – (net) $32,684 $6,406 $(78,759)
Fund Balance – June 30

$3,887,405

$3,220,706

$2,947,519

SCHEDULE OF GRAIN DEALERS

FY 1999

FY 1998

FY 1997

Active dealers – beginning of year
Add: New dealers
Less: Closed or insolvent dealers
Active dealers – end of year

509
11
(35)
485

532
11
(34)
509

544
18
(30)
532
CORPORATION PRESIDENT
During Audit Period: Becky Doyle, Director, Department of Agriculture (July 1998 – January 1999)
Joe Hampton, Director, Department of Agriculture (January 19, 1999)
Currently: Joe Hampton, Director, Department of Agriculture
 

 

One person recorded and deposited receipts and maintained accounts receivable records for assessments totaling $189,642

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROL OVER RECEIPTS

The Illinois Grain Insurance Corporation did not maintain adequate internal control over its receipts processing system. One person recorded and deposited receipts and maintained accounts receivable subsidiary records for annual and supplemental assessments that totaled $189,642 during the audit period. (Finding #1, page 9)

We recommended the Corporation strengthen controls over cash receipts by adequately segregating cash receipts functions. The Corporation responded that beginning January 30, 2000, accounts receivable work will be converted to another system and the person depositing the receipts will be separate from the person applying payments against accounts receivable records. They stated this will resolve the finding.

We will review progress toward implementing our recommendation in our next audit.

AUDITORS’ OPINION

Our auditors state that the Illinois Grain Insurance Corporation’s financial statements for the two years ending June 30, 1999 were fairly presented.

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGM:KMC:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Sleeper, Disbrow, Morrison, Tarro & Lively, CPAs.