REPORT DIGEST

ILLINOIS FARM DEVELOPMENT AUTHORITY

FINANCIAL AND COMPLIANCE AUDIT

For the Year Ended:
June 30, 2000

Summary of Findings:

Total this audit 3
Total last audit 4
Repeated from last audit 1

Release Date:
March 22, 2001

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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
  • The Authority lacks an adequate policies and procedures manual.
  • The Authority had insufficient supporting documentation for some expenditures.

 

 

 

 

 

 

 

 

 

 

 

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

 

 

ILLINOIS FARM DEVELOPMENT AUTHORITY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 2000

ALL FUNDS FINANCIAL INFORMATION

FY 2000

FY 1999

Total Operating Expenses

$727,202

$820,697

Personal Services
% of Total Expenses
Average No. of Employees

$337,455
46.4%
7

$291,335
35.5%
7

Other Payroll Costs (FICA, Retirement)
% of Total Expenses

$92,409
12.7%

$82,985
10.1%

Other Professional Fees and Services
% of Total Expenses

$205,580
28.3%

$175,649
21.4%

Rental of Office, Utilities and Equipment
% of Total Expenses

$30,689
4.2%

$30,353
3.7%

Travel
% of Total Expenses

$23,465
3.2%

$13,749
1.7%

Advertising
% of Total Expenses

$13,445
1.8%

$24,160
2.9%

Depreciation
% of Total Expenses

$13,657
1.9%

$14,294
1.8%

Bad Debts (Recoveries)
% of Total Expenses

$(16,244)
(2.2)%

$159,306
19.4%

Other Expenses
% of Total Expenses

$26,746
3.7%

$28,866
3.5%

Total Revenues

Cash and Investments

Guarantee Claims Receivable, Net

Cost of Property and Equipment

$1,300,478

$17,512,224

$453,651

$109,709

$1,233,383

$13,326,009

$619,314

$109,559
SELECTED ACTIVITY MEASURES

FY 2000

FY 1999
Revenue Bonds Issued Since Inception

Number
Amount
Bond Principal Outstanding at June 30,
Bonds Issued During Year
Number
Amount

 

2,736
$217,282,060
$128,981,758

92
$12,085,703

 

2,644
$205,196,357
$121,014,888

78
$9,284,274
AGENCY DIRECTOR
During Audit Period: David Wirth, Executive Director
Currently: David Wirth, Executive Director

 

 

 

 

 

Policies and procedures manual needs to be developed

 

 

 

 

 

 

 

13% of expenditures tested had insufficient supporting documentation

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF POLICIES AND PROCEDURES MANUAL

The Authority does not have a sufficiently detailed policies and procedures manual to ensure consistency in the Authority’s operations.

The State Records Act (5 ILCS 160/8) requires that "the head of each agency shall cause to be made and preserved records containing adequate and proper documentation of the organization, functions, policies, decisions, procedures, and essential transactions of the agency." (Finding 1, page 12) This finding was first reported in 1999.

Authority officials agreed with our recommendation to develop and adopt a comprehensive policies and procedures manual.

INSUFFICIENT SUPPORT FOR EXPENDITURES MADE

The Authority did not have sufficient documentation to support payment of 11 (13%) of the 84 expenditures totaling $4,554 that were tested. The State Records Act (5 ILCS 160/8) requires each agency head to maintain proper documentation of the agency’s essential transactions. (Finding 2, page 13)

The Authority agreed with our recommendation to keep documentation to support all expenditures and indicated that it has implemented changes to insure that controls are in place and followed.

OTHER FINDING

The remaining finding is less significant and the Authority’s response indicates that it is addressing the condition. We will review the Authority's progress toward implementation of our recommendations in our next audit.

AUDITORS’ OPINION

Our auditors state the financial statements of the non-shared enterprise funds of the Illinois Farm Development Authority as of and for the year ended June 30, 2000 are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Cameron, Smith & Company were our special assistant auditors for this audit.