REPORT DIGEST

ILLINOIS POWER AGENCY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2019

Release Date:  May 14, 2020

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: 2

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
FRANK J. MAUTINO, 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

INTRODUCTION

The Illinois Power Agency’s mission is (1) to
oversee the electricity planning and
procurement processes to ensure adequate,
reliable, affordable, efficient, and
environmentally sustainable electric service
at the lowest cost over time for the
residential and small commercial customers of
Commonwealth Edison, the Ameren Illinois
Company, and the MidAmerican Energy Company
and (2) to procure renewable energy using the
resources of the Illinois Power Agency
Renewable Energy Resources Fund.

This digest covers the financial audit of the
Agency’s nonshared governmental funds as of
and for the year ended June 30, 2019.  Our
next engagement will include a financial audit
of the Agency’s nonshared governmental funds
as of and for the year ending June 30, 2020
and a State Compliance Examination of the
entire agency for the two years ending June
30, 2020.


SYNOPSIS

• (19-01) The Agency did not exercise adequate
control over accounting for financial
transactions in its financial statements.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROL OVER FINANCIAL REPORTING

The Illinois Power Agency (Agency) did not
exercise adequate control over accounting for
financial transactions in its financial
statements.

During testing, we noted the following
financial reporting issues:

• The Agency notified us that there was an
outstanding vendor invoice in the amount of
$365,241 that was not paid during the fiscal
year. In addition, the Agency has incurred
late payment interest to the vendor
approximating $24,000. Payment to the vender
and required interest is being processed by
the Illinois Court of Claims. The result of
the outstanding vendor invoice required two
adjustments to the financial statements in the
Illinois Power Agency Operations Fund (425) to
record the expenditure and the estimated
interest.

• Based on our testing of interfunds due to/
from other State funds, we noted the Agency
did not reverse two audit entries from the
prior year. We proposed and the Agency
recorded an entry to reduce the amount due
from other State funds in the amount of
$19,199 and to reduce amounts due to other
State funds in the amount of $1,662 in the
Illinois Power Agency Operations Fund (425).
(Finding 1, pages 23-24)

We recommended the Agency review its internal
controls over its financial reporting process
and implement procedures to ensure outstanding
invoices to vendors are paid timely within the
applicable fiscal year and transactions are
appropriately recorded and reflected within
its financial statements and accounting
records.

Agency officials agreed with our
recommendation.

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, 2019 are fairly stated in all material
respects.

This financial audit was conducted by Plante &
Moran, PLLC.

JANE CLARK
Division Director

This report is transmitted in accordance with
Section 3-14 of the Illinois State Auditing
Act.

FRANK J. MAUTINO
Auditor General

FJM:JGR