REPORT DIGEST

ILLINOIS FARM
DEVELOPMENT
AUTHORITY 

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

Summary of Findings:

Total this audit 4
Total last audit 2
Repeated from last audit 0


Release Date:
April 27, 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

¨ Twelve of twenty-six loan applications were submitted to the Authority without the required $300 fee.

¨ The Authority did not have a reliable and functioning system for keeping informed of all laws and regulations that affect it.

 

 

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


ILLINOIS FARM DEVELOPMENT AUTHORITY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 1998


ALL FUNDS
FINANCIAL INFORMATION

FY 1998

FY 1997
Total Operating Expenses
Personal Services
% of Total Expenses
Average No. of Employees
Other Payroll Costs (FICA, Retirement)
% of Total Expenses
Other Professional Fees and Services
% of Total Expenses
Rental of Office, Utilities and Equipment
% of Total Expenses
Travel
% of Total Expenses
Advertising
% of Total Expenses
Depreciation
% of Total Expenses
Bad Debts Expenses
% of Total Expenses
Other Expenses
% of Total Expenses
Total Revenues
Cash and Investments at June 30
Cost of Property and Equipment

$742,339
$256,615
34.6%
6
$88,745
11.9%
$191,761
25.8%
$29,561
4.0%
$27,849
3.8%
$17,874
2.4%
$13,023
1.8%
$90,076
12.1%
$26,835
3.6%
$1,236,722
$12,236,632
$105,028

$604,387
$252,692
41.8%
6
$61,074
10.1%
$189,038
31.3%
$29,334
4.8%
$17,612
2.9%
$16,263
2.7%
$7,091
1.2%
$0
0%
$31,283
5.2%
$824,468
$11,660,901
$78,470
SELECTED ACTIVITY MEASURES

FY 1998

FY 1997
Revenue Bonds Issues Since Inception
  Number
  Amount
Bond Principal Outstanding at June 30,
Revenue Bonds Issues Since Inception
  Number
  Amount


2,566
$195,912,083
$82,028,531

118
$14,138,025


2,448
$181,774,058
$75,021,842

108
$14,262,251
AGENCY DIRECTOR
During Audit Period: David Wirth
Currently: David Wirth

 






 







Required application fees of $3,600 were uncollected at the end of FY 98











No reliable and functioning system to keep informed of laws and regulations

 
 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONPAYMENT OF APPLICATION FEES

Twelve of twenty-six Specialized Livestock Guarantee applications were submitted to the Farm Development Authority (Authority) by financial institutions without the required $300 application fee. The Authority has determined a nonrefundable application fee of $300 must be paid at the time of the application. Application fees of $3,600 were uncollected at the end of FY 98. (Finding 98-1, page 13)

We recommended application fees be collected by the date of approval of the Guarantees by the Board of Directors.

Authority officials stated they will endeavor to collect application fees at the time of application. However, according to Authority officials, some applications are approved before the application fee is paid in an effort to provide timely service.

NO RELIABLE SYSTEM FOR RECOGNIZING LAWS AND REGULATIONS

The Farm Development Authority (Authority) did not have a reliable and functioning system for keeping informed of all laws and regulations that affect it. (Finding 98-3, page 15)

We recommended the Authority establish a mechanism to keep informed of changes in laws and regulations which would impact its operations.

Authority officials stated they will consult with the Legislative Reference Bureau (LRB) and the Legislative Information Services (LIS) to determine if there is a cost-effective solution.

OTHER FINDINGS

The remaining findings are less significant and the Authority's responses indicate it is addressing the conditions. We will review progress toward implementing these recommendations in our next audit.

AUDITORS' OPINION

Our auditors state the Illinois Farm Development Authority's financial statements for the one year ended June 30, 1998 are fairly presented.

 

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:BAR:pp

 

 

SPECIAL ASSISTANT AUDITORS

Ginoli & Company, Ltd. were our special assistant auditors for this audit.