Monthly report to Attorney General not made
At June 30, 1997 four properties remain in the
Illinois Insured Mortgage Pilot Program Trust
Accrued interest receivable for nonperforming
assets approximated $14,139,000 at June 30, 1997
Outstanding litigation
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FINDINGS,
CONCLUSIONS, AND RECOMMENDATIONS
The Treasurer's Office did not provide the Attorney
General with a monthly report of the amount of money in
the Violent Crime Victims Assistance Fund.
The Violent Crime Victims Assistance Act (725 ILCS
240/10) states that the Treasurer's Office shall provide
the Attorney General a status report of the amount of
money in the Violent Crime Victims Assistance Fund on a
monthly basis. (Finding 2, page 11)
We recommended the Treasurer's Office prepare and
forward the monthly reports to the Attorney General.
Officials in the Treasurer's Office stated that at the
present time, a separate report is not being prepared for
the Attorney General since the Treasurer only deposits
monies to the Violent Crime Victims Assistance Fund and
does not have authority to expend monies from this fund.
Further, they do provide the Attorney General with a copy
deposit ticket that illustrates by county the deposits
made to the Violent Crime Victims Assistance Fund. Also,
a copy of the Receipt Deposits Transmittal is sent to the
Attorney General.
OTHER FINDING
The remaining finding was less significant and is
being given appropriate attention by the Treasurer. We
will review progress toward implementation of our
recommendations during our next audit.
Mr. Edward Buckles, Chief Fiscal Officer, provided
responses to our recommendations
OTHER DISCLOSURES
ILLINOIS INSURED MORTGAGE PILOT PROGRAM TRUST
As of June 30, 1997 there were four 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. Two of the properties were commercial
properties, Park Plaza Shopping Center and Geneva on the
Dam. The other two properties were hotels, the
Renaissance Springfield Hotel and the Holiday Inn,
Collinsville Hotel.
The recorded value on the financial statements for
these investments was $10,634,000 as of June 30, 1997 and
the loan balance was $34,353,000.
The mortgage loans on two hotels and Park Plaza
Shopping Center were considered nonperforming assets.
Accrued interest receivable at June 30, 1997 for the
nonperforming assets approximated $14,139,000. Interest
on nonperforming assets is recognized when collected, and
therefore has not been recorded on the financial
statements.
The Treasurer's outstanding investments in the
Illinois Insured Mortgage Pilot Program which have been
secured by hotel properties have been the subject of
litigation regarding both the proposed sale of the notes
and an attempt to collect on collateral for alleged
failure to make required payments. The outcome of this
litigation is not presently determinable.
SUBSEQUENT EVENTS
The State of Illinois issued $100,000,000 General
Obligation Bonds, Series of July 1997, subsequent to June
30, 1997.
On August 11, 1997, the Treasurer received $2,276,339
for the investment in the Illinois Insured Mortgage Pilot
Program related to the Geneva on the Dam note. The amount
received represented unpaid principal and interest.
AUDITORS' OPINION
Our auditors state the June 30, 1997 financial
statements present fairly, in all material respects, the
assets, liabilities and accountabilities and the
statement of investment income of the Office of the
Treasurer.
____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:RPU:pp
SPECIAL ASSISTANT AUDITORS
Geo. S. Olive & Co. LLC were our Special Assistant
Auditors for this audit.
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