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, 1998 Release Date: March 25, 1999 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

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 compliance audit for the two-year period ending June 30, 1999 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 June 30, 1998 financial statements of the Industrial Commission Self-Insurers' Security Fund were fairly stated. ___________________________________ WILLIAM G. HOLLAND, Auditor General WGH:ROQ SPECIAL ASSISTANT AUDITORS Hill, Taylor LLC were our special assistant auditors for this audit. {Expenditures and Activity Measures are summarized on the next page.}

INDUSTRIAL COMMISSION
SELF-INSURERS' SECURITY FUND
FINANCIAL AUDIT
For the Year Ended June 30, 1998

FINANCIAL STATISTICS	FY 1998	FY 1997
ASSETS Cash Receivables   Total Assets LIABILITIES AND FUND BALANCE Vouchers Payable Liability for Unpaid Claims Fund Balance   Total Liabilities and Fund Balance REVENUES Escrow Fees & Surety Bonds Refunds Interest Income   Total Revenues EXPENDITURES Benefit Payments Personal Services Escrow Deposit Refunds Other Expenditures   Total Expenditures DECREASE IN LIABILITY FOR UNPAID CLAIMS NET DECREASE IN FUND BALANCE	$2,233,254 10,193 $2,243,447 $13,202 1,487,528 742,717 $2,243,447 $ - 26,792 186,729 $213,521 $580,499 142,002 1,101,623 63,180 $1,887,304 $477,000 $1,196,781	$3,980,045 62,299 $4,042,344 $138,318 1,964,528 1,939,498 $4,042,344 $178,234 - 362,663 $540,897 $810,289 118,369 3,622,994 79,464 $4,631,116 $2,345,899 $1,744,320

AGENCY DIRECTOR(S)

During Audit Period: Mr. John W. Hallock, Jr., Chairman
Currently: Mr. John W. Hallock, Jr., Chairman