Presented by ___________________


WHEREAS, the State Comptroller administers a system for intercepting payments to State employees, tax refund recipients, and State vendors on account, of debts owed to the State of Illinois, which is known as the Comptroller’s Offset System; and

WHEREAS, under current law, pursuant to Section 5 of the State Collections Act of 1986, State agencies are required to submit accounts to the Comptroller’s Offset System which are more than one year past due and greater than $1,000;

WHEREAS, the most recent reports of Accounts Receivable identifies that 54% of the gross receivables (excluding long-term loan balances) are more than one year past due, an amount of $2.4 billion;

WHEREAS, the reports of State agencies regarding the amount of debt more than one year past due does not correlate to the amount of claims submitted by those agencies for offset;

WHEREAS, the existence of the discrepancy between the amount of debt more than one year past due with the agencies and the amount of debt within the Comptroller’s Offset System warrants additional investigation to ensure compliance with the State Collections Act of 1986;

WHEREAS, the confidentiality requirements of State and federal law, in many instances, prevent the Comptroller from independently reviewing records necessary to ensure compliance with the State Collections Act in regard to tax collections, child support, and public assistance, among others; and

WHEREAS, the Legislative Audit Commission can direct the Auditor General to review pertinent records, and remain within the scope of these confidentiality requirements; therefore be it

RESOLVED, BY THE LEGISLATIVE AUDIT COMMISSION that the Auditor General is directed to conduct a special audit of the 10 agencies which have the largest amount of net receivables, as identified in the Comptroller’s Receivables Report for 1996, to determine whether all eligible debts have been placed in the Comptroller’s Offset System, as required by law; and be it further

RESOLVED, that the various State agencies and other entities which may have information relevant to this audit shall cooperate fully and promptly with the Office of the Auditor General in the conduct of this audit; and be it further

RESOLVED, that the Auditor General commence this audit as soon as possible and report his findings and recommendations upon completion to the Legislative Audit Commission in accordance with the provisions of the Illinois State Auditing Act.

Adopted this ________ day of _______________, 1997.



Senator Thomas J. Walsh
Representative Terry W. Deering