REPORT DIGEST

METROPOLITAN PIER AND EXPOSITION AUTHORITY

SPECIAL LIMITED SCOPE COMPLIANCE EXAMINATION
For the Two Years Ended:  June 30, 2013




Release Date:   April 22, 2014


Summary of Findings:
Total this audit: 1
Total last audit:  0
Repeated from last audit: 0

State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL

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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 General Assembly annually makes direct
appropriations to the Authority for the payment
of debt service and related obligations, to
provide incentives to attract large conventions,
meetings, and trade shows to hold events at
Authority properties, and to serve as a pass-
thru entity to provide funding to the Chicago
Convention and Tourism Bureau (Choose Chicago).
Additionally, the General Assembly has
authorized the Authority to pass-thru a portion
of the additional funds realized from the
increase in the Airport Departure Tax authorized
within Public Act 096-0898 to the Chicago
Convention and Tourism Bureau (Choose Chicago).

Our special limited scope compliance examination
was restricted to appropriations made by the
General Assembly to the Authority from the
McCormick Place Expansion Project Fund, the
International Tourism Fund, the Chicago Travel
Industry Promotion Fund, the Metropolitan Pier
and Exposition Authority Incentive Fund, and the
Metropolitan Fair and Exposition Authority
Improvement Bond Fund and expenditures certified
by the Metropolitan Pier and Exposition
Authority as authorized by the General Assembly
from the Metropolitan Pier and Exposition
Authority Grants Fund.

SYNOPSIS

• The Authority had a remaining cash balance
within the Metropolitan Fair and Exposition
Authority Improvement Bond Fund after the
defeasance of all outstanding bonds.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

EXCESS CASH WITHIN THE METROPOLITAN FAIR AND
EXPOSITION AUTHORITY IMPROVEMENT BOND FUND

The Metropolitan Pier and Exposition Authority
(Authority) had excess cash within the
Metropolitan Fair and Exposition Authority
Improvement Bond Fund (Fund).

On July 18, 2012, the Bond Trustee gave notice
of the defeasance of all outstanding bonds
supported by the Fund. In anticipation of this
announcement, the Authority’s Chief Executive
Officer sent the State Treasurer, the State
Comptroller, and the Director of Revenue a
letter on July 12, 2012, indicating that since
no bonds were to remain outstanding after the
defeasance, the Authority would not submit any
further vouchers for the payment of debt service
obligations.

During testing, the auditors noted the Fund had
a remaining cash balance of $5,456 at June 30,
2013. This amount, which does not currently have
an apparent disposition, represents excess prior
transfers from the Build Illinois Fund.

According to Authority officials, they have been
unable to address the remaining cash balance due
to State law not being clear about how to handle
excess money within the Fund.   They noted they
have been working with officials at the State
Treasurer’s Office, State Comptroller’s Office,
Department of Revenue, and Governor’s Office of
Management and Budget to reach a conclusion on
the final disposition of these remaining funds,
an event that only occurs every 30 to 40 years.
(Finding 1, pages 9-10)

We recommended the Authority continue to work
with the State Treasurer, State Comptroller,
Director of Revenue and the Governor’s Office of
Management and Budget to determine an
appropriate disposition of the remaining cash
balance and seek to appropriately dissolve the
Fund, or seek a legislative remedy.

Authority officials agreed with our
recommendation.

ACCOUNTANT’S OPINION

The auditors conducted a special limited scope
compliance examination of the Authority for the
two years ended June 30, 2013, as required by
the Illinois State Auditing Act.  The auditors
stated the Authority complied, in all material
respects, with the requirements described in the
report during the two years ended June 30, 2013.

WILLIAM G. HOLLAND
Auditor General

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AUDITORS ASSIGNED

This examination was performed by the Office of
the Auditor General’s staff.