REPORT DIGEST

ILLINOIS STUDENT ASSISTANCE COMMISSION

FINANCIAL AUDIT
For the Year Ended: June 30, 2012


Release Date:   February 21, 2013

Summary of Findings:
Total this audit: 2
Total last audit:  10
Repeated from last audit: 1

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


INTRODUCTION

The Illinois Student Assistance Commission’s
(Commission) financial audit report consists of three
sets of financial statements as follows – the financial
statements of the Illinois Student Assistance
Commission; the financial statements of the Illinois
Prepaid Tuition Program (Program), a major fund of the
Commission; and the financial statements of the Illinois
Designated Account Purchase Program (IDAPP), a major
fund of the Commission.

This report contains only findings pertaining to the
Financial Statement Audit of the Commission for the year
ended June 30, 2012.

The State Compliance Examination for the two years ended
June 30, 2012 will be issued at a later date.

SYNOPSIS

• The Commission did not approve the fiscal year 2012
budget relating to the Commission’s non-appropriated
funds and did not deliberate and vote on budget requests
submitted to the General Assembly for appropriations
relating to the appropriated funds of the Commission.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NEED TO APPROVE BUDGET

The Illinois Student Assistance Commission (Commission)
did not approve the fiscal year 2012 budget relating to
the Commission’s non-appropriated funds and did not
deliberate and vote on budget requests submitted to the
General Assembly for appropriations relating to the
appropriated funds of the Commission.

During our audit, we noted that the annual operating
budgets for fiscal year 2012 for the Commission’s non-
appropriated funds, the Illinois Prepaid Tuition Program
(IPTP) and the Illinois Designated Account Purchase
Program (IDAPP), were not approved by the Board of
Commissioners.  In addition, budget requests that were
submitted to the General Assembly for appropriation for
fiscal year 2012 were not deliberated and voted on by
the Board of Commissioners.

According to Commission management, effective July 2011,
Commission members were all newly appointed. The fiscal
year 2012 budget was presented to the Commission at its
meeting on July 8, 2011. Since the members were all new,
the budget was treated as an information item and action
was not taken to approve the budget.  (Finding 1, pages
122-123)

We recommended the Commission approve the annual budget
for non-appropriated funds and the budget request to be
submitted to the General Assembly for appropriated funds
that are prepared by management.

Commission officials accepted our finding and
recommendation and indicated that they had already
implemented corrective action.

OTHER FINDING

The other finding pertains to debt covenant violations.
Specifically, the commission was not in compliance with
two covenants relating to the agency’s revolving line of
credit.

AUDITORS’ OPINION

Our auditors stated the financial statements of the
Commission are fairly stated in all material respects.
Auditors included paragraphs emphasizing that the
Program has adopted a change in the methodology for
estimating contracts receivable, tuition obligation and
related revenues and expenses; emphasizing that the
Commission is in default of certain conditions of its
Revolving Credit Facility; and emphasizing that the
Program fund has a deficit of $420 million as of June
30, 2012.

WILLIAM G. HOLLAND
Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were
McGladrey LLP.