REPORT DIGEST

ILLINOIS FINANCE AUTHORITY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2016

Release Date:  January 12, 2017

FINDINGS THIS AUDIT:  1

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  0 -- 1 -- 1
Category 3:  0 -- 0 -- 0
TOTAL:  0 -- 1 -- 1

FINDINGS LAST AUDIT: 2

Category 1:	Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State
laws and regulations (material
noncompliance).
Category 2:	Findings that are
significant deficiencies in internal
control and noncompliance with State laws
and regulations.
Category 3:	Findings that have no
internal control issues but are in
noncompliance with State laws and
regulations.

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, 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 digest covers the Illinois Finance
Authority’s financial audit as of and for
the year ended June 30, 2016. A State
Compliance Examination will be performed
next year for the two years ending June
30, 2017.

SYNOPSIS

• (16-1) The Authority has loan and
guarantee receivables from non-conduit
debt recorded in their financial books and
records that should be removed due to the
balances being uncollectible.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO WRITE OFF UNCOLLECTIBLE
BALANCES
The Illinois Finance Authority (Authority)
has loan and guarantee receivables from
non-conduit debt recorded in their
financial books and records that should be
removed due to the balances being
uncollectible.

During testing, the auditors noted the
following amounts by fund, where the
Authority recorded a loan or guarantee
receivable and corresponding allowance of
100%. The Authority anticipates writing
off these balances.

General Operating Fund: $936,359
Illinois Agricultural Loan Guarantee Fund:
$170,902
Illinois Farmer and Agribusiness Loan
Guarantee Fund:  $223,224
Total:  $1,330,485

In addition, for the past several years,
the Authority has carried on its books
investments in partnerships and other
companies totaling $2,971,385 for which a
100% allowance for a decline in market
value was recognized. Authorization from
the Attorney General should be obtained to
write off these balances. No activity
occurred in the current year relating to
the write off of these balances.

The Authority has not consistently made
requests of the Illinois Attorney General
and the Authority has not performed timely
follow-up on prior requests of the
Illinois Attorney General. Accordingly,
uncollectible balances that should have
been addressed in previous years have
remained on the books and records of the
Authority. (Finding 1, pages 68-69)

We recommended the Authority continue to
work with the Office of the Attorney
General to receive approval to write off
uncollectible balances.

Authority officials accepted the
recommendation.

AUDITOR’S OPINION

The auditors stated the financial
statements of the Illinois Finance
Authority as of and for the year ended
June 30, 2016, are fairly stated in all
material respects.

FRANK J. MAUTINO
Auditor General

FJM:TLK

SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors for this
audit were RSM US LLP.