Note:

 

This report of the Illinois Workersí Compensation Commissionsí Self-Insurers Security Fund (Fund) should be read in conjunction with the FY16 financial statements of the Fund and the auditorís report dated January 4, 2018.†

 

In FY16, the auditors issued an adverse opinion on the Fundís 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 Workerís Compensation Act.† Because of the adverse auditor opinion of the Fundís 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 auditorís report dated January 4, 2018.† †

 


 

REPORT DIGEST

INDUSTRIAL COMMISSION SELF- INSURERSí SECURITY FUND

FINANCIAL AUDIT

For the Year Ended:

June 30, 2002

Release Date:
March 11, 2003

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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

 

 

INTRODUCTION

This audit was limited to an examination of the Self- Insurersí Security Fund for the purpose of rendering an opinion on the financial statements of the Fund. A compliance audit for the two-year period ending June 30, 2003 will be performed next year. The Fund was established to provide compensation for employees of insolvent self-insured employers for injuries and occupational diseases.

AUDITORSí OPINION

Our auditors state that the financial statements present fairly, in all material respects, the respective financial position of the Fund as of June 30, 2002 and 2001, and the respective changes in financial position thereof for the years then ended.

 

 

__________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KMC:drh

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Hill

Taylor, LLC.

 

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

 

 

 

INDUSTRIAL COMMISSION
SELF-INSURERSí SECURITY FUND
FINANCIAL AUDIT
For The Year Ended June 30, 2002

STATEMENTS OF REVENUE EXPENSES, AND CHANGES IN NET ASSETS

FY 2002

FY 2001

OPERATING REVENUES
Escrow Fees and Surety Bond


$ 3,078,845

 

$8415,410

OPERATING EXPENSES
Benefit Payments and Refunds
Personnel and Operating Expenses
Total


$ 5,052,587
218,116
$ 5,270,703


$2,494,319
194,285
$2,688,604

OPERATING (LOSS) INCOME
NONOPERATING REVENUES (EXPENSES)
Interest Income
Change in Liabilities for Unpaid Claims
TRANSFERS OUT
CHANGE IN NET (DEFICIT) ASSETS

$(2,191,858)

$ 225,015
$(6,781,118)
$ (6,574)
$(8,754,535)

$5,726,806

$ 161,996
$ 389,656
$ -
$6,278,458

SELECTED ACCOUNT BALANCES Ė STATEMENTS OF NET ASSETS

FY 2002

FY 2001

ASSETS:
Cash in bank
Cash in State Treasury
Accrued interest receivable
LIABILITIES:
Account Payable
Liabilities for Unpaid Claims
NET ASSETS, End of Year


$ 5,809
$ 6,385,301
$ 12,439

$ 236,875
$ 9,749,952
*$(3,593,018)


$ -
$8,290,054
$ 29,402

$ 124,284
$2,962,260
$5,161,517

CHAIRMAN

During Audit Period: Mr. John W. Hallock, Jr., Chairman
Currently: Mr. John W. Hallock, Jr., Chairman

NOTE: Economic Factors and Fund Deficit

The Self-Insurers' Security Fund had a deficit of approximately $3.6 million at June 30, 2002. Agency management indicates this deficit is primarily due to the deteriorating economic conditions within the overall economy, which has resulted in increased filing of bankruptcies. The State of Illinois Industrial Commission is considering additional assessments during fiscal 2003 to bridge the gap in the Fund's deficit position.