REPORT DIGEST

 

SOUTHWESTERN ILLINOIS DEVELOPMENT AUTHORITY

 

SPECIAL LIMITED SCOPE COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2008

 

Summary of Findings:

Total this audit                    1

Total last audit                    0

Repeated from last audit     0

 

Release Date:

June 4, 2009

 

 

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 and Full Report are also available on

The worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

INTRODUCTION

 

      The Illinois General Assembly made appropriations to the Southwestern Illinois Development Authority to replenish draws on the debt service reserve fund backing bonds issued on behalf of Spectrulite Consortium Inc.,  Waste Recovery – Illinois, Alton Center Business Park, and Laclede Steel – Illinois. Expenditures from these appropriations totaled $3,091,957 in Fiscal Year 2008 and $2,807,261 in Fiscal Year 2007.  In accordance with the Illinois State Auditing Act (30 ILCS 5/3-1(a)), our special limited scope compliance examination was limited to these State appropriations and related payments and to the $250,000 grant received from the Illinois Department of Commerce and Economic Opportunity during the two years ended June 30, 2008.   

 

 

SYNOPSIS

 

 

·        The Authority did not certify to the Governor the amounts required by the Authority to enable it to replenish the debt service reserve funds for its bonds for Fiscal Years 2008 and 2009.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

None of the 8 required certifications were submitted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDING, CONCLUSION AND RECOMMENDATION

 

 

FAILURE TO SUBMIT REQUIRED CERTIFICATIONS TO THE GOVERNOR

 

The Authority did not certify to the Governor the amounts required by the Authority to enable it to replenish the debt service reserve funds for its bonds for Fiscal Years 2008 and 2009 as required by the Southwestern Illinois Development Authority Act (Act). We noted the Authority did not prepare and submit 8 of 8 (100%) required certifications to the Governor, certifying the amounts required to replenish the debt service reserve funds to the required minimum balances. (Finding 1, Pages 7-8)

 

We recommended the Authority timely certify to the Governor the annual amounts required to pay the principal and interest and to replenish the debt service reserve funds for its bonds as required by the Act.

 

Authority management responded that required appropriation amounts were submitted to the Governor’s Office of Management and Budget and formal written certifications, as required by the Authority’s legislation, will be submitted for future appropriation requests.

 

 

AUDITORS’ OPINION

 

      We conducted a special limited scope compliance examination of appropriations made by the General Assembly to the Authority and related expenditures and the grant received from the Illinois Department of Commerce and Economic Opportunity as authorized by the Illinois State Auditing Act. 

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:LKW:bor

 

AUDITORS ASSIGNED

 

      This examination was conducted by the staff of the Office of the Auditor General.