FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
FILING OF THE ILLINOIS RURAL BOND BANK'S ANNUAL
The Illinois Rural Bond Bank's (Bank) annual
report was not filed within 90 days which is in
violation of the Rural Bond Bank Act (Act). The
Bank's 1996 annual report was due to the Governor
and General Assembly by September 30, 1996, but
was not filed until March 1997.
We recommended the Bank adhere to the
requirements of the Act and file the annual
report within the time specified, or seek
legislation to change the time requirements to
become more suitable. (Finding #1, page 10)
The Bank responded that the audited financial
statements are not available for distribution
within 90 days of fiscal year end. The Bank's
staff will either seek to amend the statute
extending the 90 day period or distribute an
annual report without audited financial
statements within the 90 day period.
CONTRACTS LACKED REQUIRED CLAUSES
The Illinois Rural Bond Bank (Bank) had
deficiencies in contract document preparation.
These deficiencies were in violation of statute.
During audit testing, it was noted four
contracts did not include a drug free workplace
clause and three contracts tested did not contain
a vendor records retention clause. The Drug Free
Workplace Act (30 ILCS 580/3) requires a
certification from the contractor that it will
provide a drug free workplace. The Illinois
Purchasing Act (30 ILCS 505/6i) requires
contracts contain a clause that the contractor
will maintain, for a minimum of five years after
the completion of the contract, adequate books,
records, and supporting documents related to the
We recommended the Bank strengthen its
controls over contract preparation to ensure
contracts comply with State law regarding
content. (Finding 4, page 13)
The Bank concurred with the recommendation and
stated that subsequent to the audit, staff
brought all contracts into compliance and put
controls in place to ensure future compliance.
The remaining findings are less significant
and are being given appropriate attention by the
Bank. We will review progress toward implementing
our recommendations during our next audit.
Mr. Tim Bobinsky, Executive Director, provided
responses to our recommendations.
Our auditors state the Bank's financial
statements for the year ended June 30, 1997 are
WILLIAM G. HOLLAND, Auditor General
Kyle E. McGinnis, CPA was our special
assistant auditor for this audit.