Note: This report of the Illinois Workers’ Compensation Commissions’ Self-Insurers Security Fund (Fund) should be read in conjunction with the FY16 financial statements of the Fund and the auditor’s report dated January 4, 2018. In FY16, the auditors issued an adverse opinion on the Fund’s financial statements due to the Commission having an inadequate process to determine the claims liabilities of the Fund, and because the proper accounting treatment for the insolvent self- insurer security collected by the State of Illinois is not determinable due to two different irreconcilable interpretations of the Worker’s Compensation Act. Because of the adverse auditor opinion of the Fund’s financial statements for the year ended June 30, 2016, the audit reports for the year ended prior to June 30, 2016 should not be relied upon without considering the auditor’s report dated January 4, 2018. REPORT DIGEST ILLINOIS WORKERS’ COMPENSATION COMMISSION – SELF-INSURERS’ SECURITY FUND Compliance Examination For the Two Years Ended June 30, 2014 Release Date: January 8, 2015 FINDINGS THIS AUDIT: 0 FINDINGS LAST AUDIT: 1 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 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 The Illinois Workers’ Compensation Commission Self-Insurers’ Security Fund (Fund) is administered by the Illinois Workers’ Compensation Commission Self-Insurers’ Advisory Board (Board) established within the Illinois Workers’ Compensation Commission (Commission). The Fund was established to provide compensation to employees of insolvent self-insured employers for any type of injury or occupational disease. The Commission may, upon the direction of the Board, assess each of the private self-insurers a pro rata share of the funding reasonably necessary to carry out its activities. A State Compliance examination on the entire Commission will be performed next year for the two year period ending June 30, 2015. There were no findings disclosed during our audit. AUDITORS' OPINION Our auditors state the June 30, 2014 financial statements of the Illinois Workers’ Compensation Commission – Self-Insurers’ Security Fund are presented fairly in all material respects. WILLIAM G. HOLLAND Auditor General WGH:JCR SPECIAL ASSISTANT AUDITORS Our Special Assistant Auditors for this audit were E.C. Ortiz & Co., LLP.