Note:

 

This report of the Illinois Workers’ Compensation Commissions’ Self-Insurers Security Fund (Fund) should be read in conjunction with the FY16 financial statements of the Fund and the auditor’s report dated January 4, 2018. 

 

In FY16, the auditors issued an adverse opinion on the Fund’s financial statements due to the Commission having an inadequate process to determine the claims liabilities of the Fund, and because the proper accounting treatment for the insolvent self-insurer security collected by the State of Illinois is not determinable due to two different irreconcilable interpretations of the Worker’s Compensation Act.  Because of the adverse auditor opinion of the Fund’s financial statements for the year ended June 30, 2016, the audit reports for the year ended prior to June 30, 2016 should not be relied upon without considering the auditor’s report dated January 4, 2018.   

 


 

REPORT DIGEST

 

INDUSTRIAL COMMISSION SELF- INSURERS’ SECURITY FUND

 

FINANCIAL AUDIT

For the Year Ended:

June 30, 2004

 

 

Release Date:

April 13, 2005

 

 

 

 

 

 

 

 

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 is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

INTRODUCTION

 

         This audit was limited to an examination of the Self-    Insurers’ Security Fund for the purpose of rendering an opinion on the financial statements of the Fund.  A State compliance examination for the two-year period ending June 30, 2005 will be performed next year.  The Fund was established to provide compensation for employees of insolvent self-insured employers for injuries and occupational diseases.

 

AUDITORS’ OPINION

 

                Our auditors state that the financial statements

      present fairly, in all material respects, the respective

      financial position of the Fund as of June 30, 2004 and

      the changes in financial position thereof for the year then ended.

 

 

 

                               __________________________________

                              WILLIAM G. HOLLAND, Auditor General

 

      WGH:KMC:drh

 

SPECIAL ASSISTANT AUDITORS

 

                 Our special assistant auditors for this audit were Martin & Shadid, P.C.

 

 

 

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

 


 

 INDUSTRIAL COMMISSION

SELF-INSURERS’ SECURITY FUND

FINANCIAL AUDIT

For The Year Ended June 30, 2004

 

STATEMENTS OF REVENUE

EXPENSES, AND CHANGES IN NET ASSETS

 

FY 2004

 

FY 2003

OPERATING REVENUES

Escrow Fees and Surety Bonds............................

 

       $ 3,040,735

 

     $  13,363,842

 

 

OPERATION EXPENSES

Benefit Payments and Refunds..........................

Personnel and Operating Expenses....................

Total ...........................................................

 

       $ 3,802,978

             255,608

       $ 4,058,586

 

$    5,283,389

    227,465

$    5,510,854

 

 OPERATING INCOME (LOSS).........................

 

NONOPERATING REVENUES (EXPENSES)

Interest Income..................................................

Change in Liabilities for Unpaid Claims............

   Total Nonoperating......................................

 

CHANGE IN NET ASSETS (DEFICIT) ............

$(1,017,851)

 

 

       $    161,594  (2,647,965)

 $(2,486,371)

 

       $(3,504,222)

  $    7,852,988

 

 

     $       210,410

$   2,346,751

     $    2,557,161

 

$10,410,149

ACCOUNT BALANCES – STATEMENTS OF NET ASSETS

 

   FY 2004

 

FY 2003

ASSETS:

 

Cash in Bank.....................................................

$             281

 $    1,077,065

Cash in State Treasury.......................................

        13,572,939

13,269,403

Accrued Interest Receivable..............................

               10,287

           13,789

Petty Cash………………………………………… 

Total Assets…………………………………. 

          

LIABILITIES:

                    100

     $ 13,583,607

                   100

       $  14,360,357

Accounts and Vouchers Payable.......................

     $      179,562

 $        131,025

Liabilities for Unpaid Claims.............................

Compensated Absences

      Total Liabilities............................................

 

RESTRICTED NET ASSETS, End of Year.........

            Total Liabilities and Net Assets....................

        10,051,166

               39,970

     $ 10,270,698

 

     $   3,312,909

     $ 13,583,607

         7,403,201

                9,000

   $    7,543,226

 

   $    6,817,131

   $  14,360,357

CHAIRMAN

      During Audit Period: Mr. Dennis R. Ruth

      Currently:  Mr. Dennis R. Ruth