REPORT DIGEST

REPORT
DIGEST

KANKAKEE RIVER VALLEY AREA AIRPORT AUTHORITY

FINANCIAL AND COMPLIANCE AUDIT

For the Year Ended:
June 30, 1998

Summary of Findings:

Total this audit	2
Total last audit	2
Repeated from last audit	0

Release Date:
June 17, 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

SYNOPSIS

The Authority failed to obtain consent of the Attorney General for the appointment of legal counsel.

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

KANKAKEE RIVER VALLEY AREA AIRPORT AUTHORITY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 1998

PROPRIETARY FUND FINANCIAL OPERATIONS	FY 1998	FY 1997	FY 1996
PROPRIETARY FUND REVENUES OPERATING REVENUES
Interest Income	$ 145	$ 221	$ 347
Total Operating Revenues	$ 145	$ 221	$ 347
PROPRIETARY FUND EXPENSES OPERATING EXPENSES
Contractual Services	$1,800	$ 2,600	$ 2,400
Travel	673	1,192	0
Business Lunches	0	0	157
Office Expenses	40	60	165
Dues - Airport Association	200	200	200
Miscellaneous Expenses	0	0	468
Telephone Expenses	215	252	278
Postage	128	96	96
Bank Service Charge	5	5	68
Total Operating Expenses	$3,061	$ 4,405	$ 3,832

Operating Income (Loss)	$(2,916)	$(4,184)	$(3,485)
Net Income (Loss)	$(2,916)	$(4,184)	$(3,485)
Retained Earnings, July 1	$15,693	$19,877	$23,362
Retained Earnings, June 30	$12,777	$15,693	$19,877
CONTRIBUTED SERVICES
Contributed Facilities and Services	$ 6,675	$ 6,675	0

SELECTED PROPRIETARY FUND BALANCES	JUNE 30, 1998	JUNE 30, 1997	JUNE 30, 1996
Cash Retained Earnings	$12,895 $12,777	$15,911 $15,693	$19,877 $19,877

AGENCY CHAIRMAN

During Audit Period: Robert Glade
Currently: Robert Glade

Failure to obtain approval for legal counsel

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, 1998. 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 OBTAIN CONSENT OF THE ATTORNEY GENERAL

The Authority failed to request consent from the Attorney General for the appointment of legal counsel.

We noted the Authority requested approval from the Attorney General in Fiscal Year 1991; however, the authority failed to renew the appointment after the term established by the Attorney General expired.

We recommend the Authority obtain Attorney General consent for the appointment of legal counsel. (Finding 98-2, page 13)

Authority officials stated a letter will be sent to the Attorney General’s Office requesting the services of the current legal counsel.

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, 1998 financial statements of the Authority’s Operating Fund are fairly presented.

___________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:PW:ak

AUDITORS ASSIGNED

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