REPORT DIGEST

DEPARTMENT OF HEALTHCARE AND FAMILY SERVICES - COMMUNITY
COLLEGE HEALTH INSURANCE SECURITY FUND

FINANCIAL AUDIT
For the Year Ended: June 30, 2011

Release Date: May 2, 2012

Summary of Findings:
Total this audit: 1
Total last audit:  0
Repeated from last audit: 0

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 TTY (888) 261-2887

This Report Digest and Full Report are also available on
the worldwide web at www.auditor.illinois.gov

INTRODUCTION

This report covers our financial audit of the Community
College Health Insurance Security Fund for the year ended
June 30, 2011.  At June 30, 2011 the Net Assets Held in
Trust for Other Postemployment Benefits reflected a deficit
of $19,657,000.  Further, the Schedule of Funding Progress
reflects an Unfunded Actuarial Accrued Liability of
$2,072,790,000.


SYNOPSIS

• The Department’s year-end financial reporting was not
timely.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FINANCIAL STATEMENT PREPARATION

The Illinois Department of Healthcare and Family Services’
(Department) did not complete the Community College Health
Insurance Security Fund’s (Fund) financial statements in a
timely manner.

During our audit of the June 30, 2011 Fund financial
statements, we noted a complete set of the Fund’s financial
statements were not provided to the auditors until January
17, 2012, six and a half months after the year end.

In addition, to complete the Fund’s financial statements,
the Department was required to obtain and include in the
Fund’s financial statements actuarial valuations for
purposes of complying with the requirements of Statement
No. 43 of the Governmental Accounting Standards Board.  The
draft actuarial valuation was not available to the auditors
until January 27, 2012 and the final actuarial valuation
was not provided until February 27, 2012, eight months
after the year end.  (Finding 1, pages 20-21 of the
Financial Report)

We recommended the Department implement additional internal
control procedures to ensure Fund financial statements are
prepared in a timely manner.

Department officials concurred with our recommendation and
stated that the Department is continually assessing the
financial reporting process and implementing procedures to
improve upon timeliness.

AUDITORS’ OPINION

Our auditors state the financial statements of the
Community College Health Insurance Security Fund as of June
30, 2011, are fairly presented in all material respects.

WILLIAM G. HOLLAND
Auditor General

WGH:tld:rt

AUDITORS ASSIGNED
This audit was performed by the Office of the Auditor
General’s staff.