REPORT DIGEST

OFFICE OF THE STATE TREASURER

NONFISCAL OFFICER RESPONSIBILITIES

 

FINANCIAL AND COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                       2

Total last audit                       2

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

 

 

 

SYNOPSIS

 
  • The Office of the State Treasurer did not hold approximately $35 million of Title III Social Security and Employment funds separate and apart from all other State monies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the reverse page

 

    OFFICE OF THE STATE TREASURER - NONFISCAL OFFICER RESPONSIBILITIES

                                        FINANCIAL AND COMPLIANCE AUDIT

                                           For The Two Years Ended June 30, 2003

EXPENDITURE INFORMATION AND STATISTICS

FY 2003

FY 2002

FY 2001

! Total Expenditures (All Funds)

APPROPRIATED EXPENDITURES

        % of Total Expenditures

General Revenue Fund – 001 & State Pension Fund – 054

        Personal Services

        Employee Retirement - Contributions Paid by Employer

        State Contribution to State Employees' Retirement System

        State Contribution to Social Security

        Group Insurance

        Contractual Services

        Travel

        Commodities

        Printing

        Equipment

        Electronic Data Processing

        Telecommunications

        Operation of Auto Equipment

        Transfer to Grain Insurance

        Refunds of Estate Tax & Accrued Interest thereon

        Refunds of Accrued Interest on Protested Taxes

                Total Expenditures – General Revenue & State Pension

General Obligation Bond Fund – 101

        Payment of Principal

        Payment of Interest

        Payments to Refund General Obligation Bonds

                Total Expenditures – General Obligation Bond Fund

General Obligation Bond Rebate Fund – 107

        Total Payments for Arbitrage Rebate.

Bank Service Trust Fund – 373

        Total Payments for Banking Services

Capital Litigation Trust Fund – 614

        Total Payments of Capital Litigation

Matured Bond and Coupon Fund – 625

        Total Payments of Matured Bonds and Interest

Estate Tax Collections Distributive Fund – 815

        Total Payments to Counties

$2,759,286,452

 

$2,672,463,288

97%

 

$7,508,329

284,839

775,178

655,871

469,804

3,804,648

245,434

139,428

33,841

70,691

1,950,463

247,498

15,572

0

6,551,784

1,522,328

$24,275,708

 

$1,520,218,501

474,937,865

618,978,974

$2,614,135,340

 

$444,893

 

$6,294,686

 

$13,317,061

 

$148,781

 

$13,846,819

$1,414,622,236

 

$1,344,435,839

95%

 

$7,420,842

281,951

745,397

594,040

455,392

2,835,152

295,493

147,802

52,918

36,471

2,011,150

257,722

11,376

4,000,000

7,045,401

2,970,170

$29,161,277

 

$468,851,349

382,634,975

425,565,254

$1,277,051,578

 

$0

 

$6,026,485

 

$12,584,089

 

$260,275

 

$19,352,135

$1,032,589,933

 

$975,412,418

94%

 

$6,962,903

260,010

692,639

536,374

354,950

3,309,647

282,670

116,822

48,020

57,769

2,059,638

252,236

14,792

0

7,499,932

1,605,180

$24,053,582

 

$453,887,451

336,582,816

119,264,408

$909,734,675

 

$0

 

$5,930,228

 

$12,445,743

 

$121,806

 

$23,126,384

UNAPPROPRIATED EXPENDITURES

        % of Total Expenditures

IPTIP Administrative Trust Fund - 195

Protest Fund - 401

Unclaimed Property Trust Fund - 482

College Savings Plan Administration Fund – 668

  • Cost of Property and Equipment

$86,823,164

3%

$3,236,625

$29,422,930

$53,822,436

$341,173

 

$3,428,432

$70,186,397

5%

$3,226,283

$16,357,537

$50,316,804

$285,773

 

$3,492,051

$57,177,515

6%

$2,491,349

$17,921,863

$36,603,532

$160,771

 

$3,582,902

SELECTED ACTIVITY MEASURERS (unaudited)

FY 2003

FY 2002

FY 2001

Number of Warrants Issued

Number of Warrants Paid

Amount of Unclaimed Property Remittances Received

Number of Unclaimed Property Claims Paid

Amount of Unclaimed Property Claims Paid

10,106,416

10,035,458

$127,562,367

25,387

$53,829,481

8,965,425

8,916,565

$117,751,597

26,730

$50,413,248

12,115,469

11,948,342

$126,635,761

36,823

$36,427,837

STATE TREASURER

During Audit Period: Honorable Judy Baar Topinka

Currently: Honorable Judy Baar Topinka

 

 

 

 

 

 

$35 million not held separate and apart from all other State monies as required by the Unemployment Insurance Act

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

TITLE III SOCIAL SECURITY AND EMPLOYMENT FUND COMMINGLED WITH OTHER STATE MONIES

The Office of the Treasurer did not hold approximately $35 million of Title III Social Security and Employment funds separate and apart from all other State monies as required by the Unemployment Insurance Act. The State Treasurer is ex-officio custodian of the funds held in the Title III Social Security and Employment Fund.

We recommended the fund be held separate and apart from other State monies and maintained in a separate account at a savings and loan association or bank as required by statute or that the Treasurer’s Office seek legislative remedy.

The Office accepted the recommendation and stated the Office has established a separate account and the balance together with all interest earned since the effective date of the change to this fund was transferred into the account.

 

OTHER FINDING

The remaining finding is less significant and is reportedly being given attention by the Office of the Treasurer. We will review progress toward implementing all recommendations in our next audit.

Ms. Barbara Ringler, Chief Internal Auditor provided the responses to our recommendations.

 

AUDITORS' OPINION

Our special assistant auditors stated that the Office’s individual nonshared governmental financial statements, individual nonshared fiduciary financial statements and individual nonshared proprietary financial statements, as of and for the years ended June 30, 2003 and June 30, 2002, are fairly stated in all material respects.

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JSC:pp

 

SPECIAL ASSISTANT AUDITORS

The firm of Kerber, Eck & Braeckel LLP were our special assistant auditors for this audit.