REPORT DIGEST

 

OFFICE OF THE TREASURER

FISCAL OFFICER RESPONSIBILITIES

 

FINANCIAL AND COMPLIANCE AUDIT

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                        0

Total last audit                        0

Repeated from last audit         0

 

Release Date:

May 6, 2004

 

 

 

 

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 TDD (217) 524-4646

 

 

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

INTRODUCTION

This digest presents our financial and compliance audit for the Office of the Treasurer Fiscal Officer Responsibilities for the year ended June 30, 2003.

 

AUDITORS’ OPINION

The auditors stated the Office of the Treasurer, Fiscal Officer Responsibilities, as of and for the year ended June 30, 2003 present fairly, in all material respects the Statement of Assets, Liabilities and Accountabilities and the results of investment activity of the Treasurer, Fiscal Officer Responsibilities. The auditors noted the financial statements have been prepared on a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.

 

 

 

___________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JSC:pp

 

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors on this audit were Kerber, Eck & Braeckel LLP.

 

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

 

                                OFFICE OF THE TREASURER - STATE OF ILLINOIS

                                            FISCAL OFFICER RESPONSIBILITIES

 

                                          FINANCIAL AND COMPLIANCE AUDIT

                                           FOR THE YEAR ENDED JUNE 30, 2003

 

ASSETS, LIABILITIES AND ACCOUNTABILITIES

JUNE 30, 2003

JUNE 30, 2002

Assets

 

 

Cash - (Demand Deposits, Clearing Accounts)

$ 65,544,687

$ 78,228,210

Revenue Producing Deposits and Investments,

At Market

 

16,280,741,964

 

7,140,201,462

Other Assets

191,901,550

115,947,715

Amount of Future General Revenues Obligated for 9; Debt Service

 

37,040,962,331

 

12,223,908,277

TOTAL ASSETS……………..

$53,579,123,532

$19,558,285,664

 

 

 

Liabilities and Accountabilities

 

 

Liabilities for Balances on Deposit

$ 15,488,650,048

$ 6,841,895,347

General Obligation Indebtedness

38,078,500,221

12,700,063,894

Accountabilities

11,973,263

16,326,423

TOTAL LIABILITIES AND ACCOUNTABILITIES

$53,579,123,532

$19,558,285,664

FINANCIAL HIGHLIGHTS

YEAR ENDED

JUNE 30, 2003

YEAR ENDED

JUNE 30, 2002

Investment Income Earned

$129,605,929

$220,715,064

Average Yield on Investments (unaudited)

2.46%

3.83%

Investment Base Increase/Decrease From Prior Year (unaudited)

 

($22,000,000)

 

$331,651,883

Total amount of estate tax collections (unaudited).

$236,949,789

$329,167,532

Total amount of estate tax distributions (unaudited).

$13,846,819

$19,352,135

Total amount of estate tax refunds (unaudited).

$6,533,028

$6,985,458

# of warrants issued, countersigned and recorded (unaudited).

10,106,416

8,965,425

# of warrants canceled, paid and recorded (unaudited).

10,035,458

8,916,565

$ of warrants issued, countersigned and recorded (unaudited).

$51,759,370,852

$48,563,404,505

STATE TREASURER

 

 

During Audit Period: Honorable Judy Baar Topinka

Currently: Honorable Judy Baar Topinka

 

 

 

 

 

 

 

At June 30, 2003 two properties remain in the Illinois Insured Mortgage Pilot Program Trust

 

 

 

 

 

Accrued interest receivable for nonperforming assets approximated $24,006,000 at June 30, 2003

 

 

 

 

 

 

 

 

 

 

 

 

 

Ongoing litigation

 

OTHER DISCLOSURES

ILLINOIS INSURED MORTGAGE PILOT PROGRAM TRUST

As of June 30, 2003 there were two properties in the Illinois Insured Mortgage Pilot Program Trust (Trust). The Trust held the mortgage loans on the properties as underlying collateral for the State’s investment in the program. The two properties are hotels, the Renaissance in Springfield and the Holiday Inn in Collinsville.

 

The recorded value on the financial statements for these investments was $7,439,000 as of June 30, 2003 and the loan balance was $29,298,000.

 

The mortgage loans on the two properties are considered nonperforming assets. Accrued interest receivable at June 30, 2003 for the nonperforming assets approximated $24,006,000. Interest on nonperforming assets is recognized when collected, and therefore has not been recorded on the financial statements.

 

In 1995 the Treasurer authorized the Trustee to sell the mortgage notes to the hotel owners for $10 million. The Illinois Attorney General opined that his consent to the proposed sale in 1995 was required and he refused to give it. As a consequence, the Treasurer and Trustee did not proceed with the transaction. Affiliates of the owners of the hotels filed a lawsuit against the Trustee and the Treasurer seeking specific performance of the buy-sell agreement on the terms agreed to.

 

On March 13, 2000 the Court in Madison County entered a judgement order requiring the Trustee and the Treasurer to sell the mortgage loans on the hotel properties to the plaintiffs. The Court found that the plaintiffs were ready, willing and able to perform the buy-sell agreements at the time originally set for closing in 1995. The Trustee and the Treasurer appealed the order. Briefings on the appeal were completed in February 2001 with oral arguments following. At June 30, 2003, no ruling was yet issued on the appeal.