DEPARTMENT OF HEALTHCARE AND FAMILY SERVICES -
COMMUNITY COLLEGE HEALTH INSURANCE SECURITY FUND
For the Year Ended: June 30, 2009
Summary of Findings:
Total this audit:† 1
Total last audit:† 3
May 11, 2010
State of Illinois
Office of the Auditor General
WILLIAM G. HOLLAND
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 TTY (888) 261-2887
This Report Digest and Full Report are also available on the worldwide web at http://www.auditor.illinois.gov
This digest covers the financial audit of the Community College Health Insurance Security Fund for the year ended June 30, 2009.† The financial audit report includes one finding pertaining to significant deficiency in internal control.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
FINANCIAL STATEMENT PRESENTATION
The Departmentís year-end financial reporting in accordance with generally accepted accounting principles (GAAP) to the Illinois Office of the Comptroller (Comptroller) contained weaknesses and inaccuracies.† These problems, if not detected and corrected, could materially misstate the Community College Health Insurance Security Fundís (Fund) financial statements.† In addition, financial reporting was not timely.
During our audit of the June 30, 2009 Fundís financial statements, we noted:
ē†††††††††† The GAAP Reporting Package was not submitted to the Comptroller in a timely manner.† The GAAP Reporting Package was submitted to the Comptroller 6 days late.† In addition, the Comptroller submitted to the Department review comments for the GAAP Reporting Package on September 28, 2009; however, the Department did not provide a response to those review comments until October 23, 2009.† Further, a complete set of the Fundís financial statements was not provided to the auditors until February 12, 2010, seven and a half months after the year end.
ē†††††††††† To complete the Fundís financial statements, the Department was required to obtain and include in the Fundís financial statements actuarial valuations for purposes of complying with the requirements of Statement No. 43 of the Governmental Accounting Standards Board.† These actuarial valuations were not available to the auditors until January 8, 2010.
ē†††††††††† We noted weaknesses in the financial accounting for, and reporting of, revenue and expense accounts.† Specifically, the Department did not correctly calculate revenues and expenses resulting in an overall adjustment totaling $1.034 million to reduce revenues and expenses.† (Finding 1, pages 17-18)
We recommended the Department implement additional internal control procedures to ensure GAAP Reporting Packages are prepared in an accurate and timely manner.
Department officials concurred with our recommendation and stated that they are continually assessing the financial reporting process and implementing procedures to improve upon timeliness and accuracy.† As an ongoing effort the Department continues to strive to meet the mandated deadlines, which resulted in the GAAP Reporting Package being submitted in a more timely manner this year than in prior years.†
Our auditors state the financial statements of the Community College Health Insurance Security Fund as of June 30, 2009, are fairly presented in all material respects.
WILLIAM G. HOLLAND, Auditor General
This audit was performed by the staff of the Office of the Auditor General.