REPORT DIGEST

ILLINOIS RURAL BOND BANK 

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

 

Summary of Findings:

Total this audit 3
Total last audit 4
Repeated from last audit 2


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

ĘThe Illinois Rural Bond Bank's public official's bonding was inadequate for fiscal year 1998.

 

 

 

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


ILLINOIS RURAL BOND BANK
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 1998



EXPENSE AND REVENUE STATISTICS

FY 1998

FY 1997

Total Expenditures (All Funds)
OPERATIONS TOTAL (All Funds)
% of Total Expenditures
Personal Services
% of Operations Expenditures
Average No. of Employees
Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures
Professional Services
% of Operations Expenditures
Financing Costs
% of Operations Expenditures
Equipment and Office Leases
% of Operations Expenditures
General and Administrative Expenditures
% of Operations Expenditures
Depreciation
% of Operations Expenditures
INTEREST EXPENSE (Bond Funds and Public
Project Construction Notes Fund)
% of Total Expenditures

Total Revenue (All Funds)

$6,001,873
$1,006,862
16.8%
$245,443
24.4%
7
$75,903
7.5%
$45,254
4.5%
$533,889
53.0%
$44,049
4.4%
$54,695
5.4%
$7,629
.8%

$4,995,011
83.2%

$5,918,970

$4,204,136
$735,625
17.5%
$235,413
32.0%
5
$62,862
8.5%
$44,800
6.1%
$292,896
39.8%
$42,821
5.8%
$50,525
6.9%
$6,308
.9%

$3,468,511
82.5%

$3,935,133

SELECTED ACTIVITY MEASURES

FY 1998

FY 1998

Revenue Bonds Outstanding
Loans Made During Year

$74,590,000
$19,697,000

$64,690,000
$15,305,000

AGENCY OFFICIAL(S)
Chairman:  Bob Kustra, Lieutenant Governor (during audit period), Corinne Wood, Lieutenant Governor (currently)
Executive Director:  Tim G. Bobinsky

 















 





Bonding was inadequate



The largest liquid assets during FY98 were $3,200,000

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUACY OF PUBLIC OFFICIAL'S BOND

The Rural Bond Bank's public official's bonding was inadequate for fiscal year 1998.

The Bank does maintain bonding in excess of the amount required by its enabling statute. However, prudent business practice would dictate the Bank maintain bonds adequate to protect all liquid assets against theft or missappropriation. The largest liquid assets during fiscal year 1998 were $3,200,000.

We recommended the Bank maintain bonding adequate to cover the largest liquid asset balance during the fiscal year. (Finding 98-2, page 11)

The Bank accepted our recommendation and stated they have received an application and quotes on obtaining a public official bond in the amount of $3.2 million. Bank officials further stated Bank staff will recommend to the board to purchase coverage independently on the market.

OTHER FINDINGS

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.

 

AUDITORS' OPINION

Our auditors state the Bank's financial statements for the year ended June 30, 1998 are fairly presented.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:BAR:pp

SPECIAL ASSISTANT AUDITORS

Kyle E. McGinnis, CPA was our special assistant auditor for this audit.