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REPORT DIGEST
ILLINOIS GRAIN INSURANCE
CORPORATION
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2007 Summary of Findings: Total this audit 2 Total last audit 3 Repeated from last audit 2 Release Date: April 10, 2008
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 the
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SYNOPSIS
• The Corporation had not established the $2,000,000 Grain Insurance Reserve Fund as required by the Grain Code. {Expenditures and Activity
Measures are summarized on the reverse page.} |
ILLINOIS GRAIN INSURANCE CORPORATION
FINANCIAL AUDIT AND
COMPLIANCE EXAMINATION
FOR THE
TWO YEARS ENDED JUNE 30, 2007
FINANCIAL ACTIVITY |
FY 2007 |
FY 2006 |
FY 2005 |
Expenditures/Expenses: Environmental and Business Regulation |
$23,000 |
$
17,000 |
$67,000 |
Program Revenues: Charges
for Services.............................
Claims
and Recovery............................
Total Program Revenue.................... Net Program Revenues.................... General Revenues: |
1,724,000 1,725,000
1,702,000
2,013,000 |
2,206,000 139,000 2,345,000
2,328,000
126,000
2,454,000 |
2,401,000 2,405,000
2,338,000
2,384,000 |
|
|
4,672,000 |
2,218,000 |
(166,000) |
Net Assets (Deficit), End of the Year...... |
$6,685,000 |
$4,672,000 |
$2,218,000 |
|
Cash and Cash
Equivalents............................ Due from Primary Government and Other ..... Total Assets.................................................. Deferred
Revenue and Other......................... Net Assets (Deficit).................................... |
$6,633,000
53,000 6,686,000 1,000 $6,685,000 |
$4,667,000 8,000 4,675,000
3,000 $4,672,000 |
$1,230,000 988,000 2,218,000
$2,218,000 |
SCHEDULE OF GRAIN DEALERS (UNAUDITED) |
FY 2007 |
FY 2006 |
FY 2003 |
|
Active
dealers – beginning of year................... Add: New dealers......................................... Less: Closed or insolvent dealers................... Active
dealers – end of year........................... |
358 4 (10) 352 |
385 4 (31) 358 |
399 20 (34) 385 |
|
CORPORATION
PRESIDENT |
|
During
Audit Period: Charles Hartke,
President Currently: Tom Jennings,
Interim President |
|
$2 million Reserve
Fund not funded Appropriation
reverted and not released
Corporate officials
agreed with our recommendation |
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS GRAIN INSURANCE RESERVE FUND NOT FUNDED The
Illinois Grain Insurance Corporation has not funded the $2,000,000 Grain
Insurance Reserve Fund as required by the Grain Code. As
of the end of our examination fieldwork on November 1, 2007, the Corporation
had not established the $2,000,000 Grain Insurance Reserve Fund required by
the Grain Code. Examination
of the monthly bank statements revealed that the Reserve Fund has been set
up, but not funded. The Corporation’s
management indicated the Grain Insurance Reserve Fund was not funded because
the appropriation was reverted and not released prior to the end of the lapse
period. (Finding 2, page 12) We
recommended the Corporation comply with the law by working with the Office of
Management and Budget to obtain the necessary appropriation to fund the Grain
Insurance Reserve Fund or seek legislative relief from the statutory
requirement. Corporation
officials agreed with our recommendation and stated they would request an
appropriation to fund the Reserve Fund. OTHER FINDING The other finding concerned preparation of the Corporation’s financial statements. We will review progress toward implementation of all recommendations in our next audit. AUDITORS’ OPINION
Our auditors state the Illinois Grain Insurance Corporation’s financial statements for the years ended June 30, 2007 and June 30, 2006 were fairly presented in all material respects. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGM:JAF:pp SPECIAL ASSISTANT AUDITORS
McGladrey & Pullen LLP was our special assistant auditors for this audit and examination. |