REPORT DIGEST

KANKAKEE RIVER VALLEY AREA AIRPORT AUTHORITY

FINANCIAL AND COMPLIANCE AUDIT

For the Year Ended:
June 30, 1997

Summary of Findings:

Release Date:
July 22, 1998

State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046

SYNOPSIS

• The Authority failed to comply with Internal Revenue Code 1099 reporting requirements.
  
  
  
  
  
  
  
  
  
  
  
  

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

FY 1997

FY 1996

FY 1995

• PROPRIETARY FUND REVENUES)
  
  OPERATING REVENUES
  Donations
  Interest Income
  Other
  Total Operating Revenues
  
  
• PROPRIETARY FUND EXPENSES
  OPERATING EXPENSES
  Contractual Services
  Travel
  Business Lunches
  Office Expenses
  Miscellaneous Expenses
  Telephone Expenses
  Postage
  Bank Service Charge
  Total Operating Expeenses
  
  Operating Income (Loss)
  Net Income (Loss)
  Retained Earnings, July 1
  Retained Earnings, June 30
  
  
• CONTRIBUTED SERVICES
  Contributed Facilities and Services

$0
221
0
221



$2,600
1,192
0
60
200
252
96
5
$4,405

$(4,184)
$(4,184)
$19,877
$15,693


$6,675

$0
347
0
347



$2,400
0
157
165
668
278
96
68
$3,832

$(3,485)
$(3,485)
$23,362
$19,877


$0

$0
324
0
324



$2,400
37
231
340
0
239
154
135
$3,536

$(3,212)
$(3,212)
$26,574
$23,362


$250

JUNE 30, 1997

JUNE 30, 1996

JUNE 30, 1995

$15,911
$15,693

$19,877
$19,877

$23,362
$23,362

During Audit Period: Robert Glade

Currently: Robert Glade

 

Failure to comply with reporting requirements

INTRODUCTION

The Kankakee River Valley Area Airport Authority was created September 10, 1990 as a result of Public Act 86-1400, the Kankakee River Valley Area Airport Authority Act. Its mission is to facilitate safe and convenient air travel and transportation to and from the Kankakee River Valley by acquisition or construction and operation of one or more airports. The Authority consists of eight members. Four members are appointed by the Kankakee County Board, and the remaining four are appointed by the Will County Board.

This digest covers the financial and compliance audit of the Authority for the year ended June 30, 1997. The Authority received no appropriations from the Illinois General Assembly, and funds were not held in the State Treasury. The Authority was financed solely through contributions from private sources and interest income received from locally held funds.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO COMPLY WITH REPORTING REQUIREMENTS

The Authority failed to comply with Internal Revenue Code 1099 reporting requirements.

We noted the Authority made payments for clerical services in the amount of $2,400 but did not report these payments to the Internal Revenue Service (IRS). IRS Publication 937 requires payments exceeding $600, to persons other than employees, be reported on IRS Form 1099-MISC.

We recommend the Authority comply with IRS reporting requirements regarding 1099 filings.

Authority officials agreed with the finding. They stated that they are in the process of filing Form 1099-MISC for FY 97 and will ensure future filings are made.

OTHER FINDING

The remaining finding was less significant and is being given appropriate attention by the Authority. We will review progress toward implementation of our recommendations during our next audit.

AUDITORS' OPINION

Our auditors stated the June 30, 1997 financial statements of the Authority's Operating Fund are fairly presented.

___________________________________
WILLIAM G. HOLLAND, Auditor General

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AUDITORS ASSIGNED

This audit was performed by the staff of the Office of the Auditor General.