REPORT DIGEST ILLINOIS POWER AGENCY Financial Audit and Compliance Examination For the Year Ended June 30, 2015 Release Date: December 30, 2015 FINDINGS THIS AUDIT: 1 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 1 -- 1 Category 2: 0 -- 0 -- 0 Category 3: 0 -- 0 -- 0 TOTAL: 0 -- 1 -- 1 FINDINGS LAST AUDIT: 9 Category 1: Findings that are material weaknesses in internal control and/or a qualification on compliance with State laws and regulations (material noncompliance). Category 2: Findings that are significant deficiencies in internal control and noncompliance with State laws and regulations. Category 3: Findings that have no internal control issues but are in noncompliance with State laws and regulations. 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 TTY (888) 261-2887 This Report Digest and Full Report are also available on the worldwide web at www.auditor.illinois.gov SYNOPSIS • (15-1) A Resource Development Bureau was not established within the Agency as required by the Illinois Power Agency Act. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS FAILURE TO ESTABLISH A RESOURCE DEVELOPMENT BUREAU The Agency did not establish a Resource Development Bureau. During testing, the auditors noted the Agency had not established a Resource Development Bureau and the Agency’s Director had not appointed a Chief of the Resource Development Bureau. (Finding 1, pages 11-12) This finding has been repeated since 2009. We recommended the Agency establish a Resource Development Bureau, or seek a legislative remedy. Agency officials agreed with our recommendations. (For the previous Agency response, see Digest Footnote #1.) AUDITOR’S OPINION The auditors stated the financial statements of the Illinois Power Agency Operations Fund, the Illinois Power Agency Renewable Energy Resources Fund, and the Illinois Power Agency Trust Fund as of and for the year ended June 30, 2015, are fairly stated in all material respects. ACCOUNTANT’S OPINION The accountants conducted a compliance examination of the Agency for the year ended June 30, 2015, as required by the Illinois State Auditing Act. The auditors qualified their report on State compliance for Finding 2015-001. Except for the noncompliance described in this finding, the accountants stated the Agency complied, in all material respects, with the requirements described in the report. WILLIAM G. HOLLAND Auditor General WGH:djn AUDITORS ASSIGNED This audit and examination was performed by the Office of the Auditor General’s staff. DIGEST FOOTNOTE #1 - Failure to Establish a Resource Development Bureau - Previous Agency Response 2014 - The Agency agrees with the finding. However, as previously noted in the Agency’s response to Fiscal Year 2011 Finding 11-17, Fiscal Year 2012 Finding 12-9, and Fiscal Year 2013 Finding 2013-10, the Agency respectfully submits that although Section 1-70 of the Illinois Power Agency Act requires hiring of a Chief of the Resource Development Bureau, the Agency believes that hiring for this position would not be a prudent use of State resources at this time. This is because there is, and will be, no need for the Agency to develop generation pursuant to Section 1-80 of the Illinois Power Agency Act in the short to medium term. As a result, the Agency believes there would be no substantive work for the Resource Development Bureau to undertake for the foreseeable future. The Agency continues to express its concern regarding the hiring of a Bureau Chief for the Resource Development Bureau.