REPORT DIGEST

OFFICE OF THE
TREASURER
FISCAL OFFICER
RESPONSIBILITIES

FINANCIAL AND
COMPLIANCE AUDIT
For the Year Ended:
June 30, 1998

Summary of Findings:

Release Date:
May 25, 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

This digest summarizes information contained in the Office of the Treasurer Fiscal Officer Responsibilities Financial and Compliance audit.

 

There were no material findings of noncompliance disclosed during our audit tests. We commend the Office of the Treasurer for maintaining an effective system of internal controls.

 

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

JUNE 30, 1998

JUNE 30, 1997

Liabilities and Accountabilities
Liabilities for Balances on Deposit
General Obligation Indebtedness
Accountabilities
    TOTAL LIABILITIES AND ACCOUNTABILITIES

$45,439,037

6,689,797,285
157,823,482

8,441,000,335
$15,334,060,139

$6,411,468,719
8,882,743,639
39,847,781
$15,334,060,139

$40,950,602

5,542,745,955
192,282,082

8,150,227,049
$13,926,205,688

$5,340,127,903
8,561,248,961
24,828,824
$13,926,205,688

YEAR ENDED
JUNE 30, 1998

YEAR ENDED
JUNE 30, 1997

$309,587,896

5.59%

5.32%

$262,790,280

4.57%

4.65%

Outstanding litigation

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

There were no material findings of noncompliance disclosed during our audit tests. We commend the Office of the Treasurer for maintaining an effective system of internal controls.

OTHER DISCLOSURES

ILLINOIS INSURED MORTGAGE PILOT PROGRAM TRUST

As of June 30, 1998 there were three 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. One of the properties was a commercial property, Park Plaza Shopping Center (see subsequent events below). The other two properties were hotels, the Renaissance in Springfield and the Holiday Inn in Collinsville.

The recorded value on the financial statements for these investments was $8,257,000 as of June 30, 1998 and the loan balance was $31,726,000.

The mortgage loans on the three properties were considered nonperforming assets. Accrued interest receivable at June 30, 1998 for the nonperforming assets approximated $16,281,000. 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. The outcome of this litigation is not presently determinable.

SUBSEQUENT EVENTS

The Park Plaza Shopping Center was sold for $2,075,000 by the Trustee at a public auction held in May 1998. The closing on the property took place on July 2, 1998. The sale will be reflected in the year ended June 30, 1999 financial statements, as it occurred subsequent to June 30, 1998.

The State of Illinois issued $122,334,152 General Obligation College Savings Bonds, Series of November 1998, subsequent to June 30, 1998.

AUDITORS' OPINION

Our auditors state the June 30, 1998 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:BAR:pp

SPECIAL ASSISTANT AUDITORS

Olive LLP were our Special Assistant Auditors for this audit.