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 FINANCIAL AUDIT For the Year Ended: June 30, 2008 Release Date: April 2, 2009 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 http://www.auditor.illinois.gov

INTRODUCTION This audit was limited to an examination of the Self- Insurers’ Security Fund for the purpose of rendering an opinion on the financial statements of the Fund.  The Fund was established to provide compensation for employees of insolvent self-insured employers for injuries and occupational diseases.  A State compliance examination on the entire Commission will be performed next year for the two year period ending June 30, 2009.  AUDITORS’ OPINION Our auditors state that the financial statements present fairly, in all material respects, the financial position of the Self Insurers’ Security Fund as of June 30, 2008, and its changes in financial position and cash flows for the year then ended. __________________________________ WILLIAM G. HOLLAND, Auditor General WGH:KMC:drh SPECIAL ASSISTANT AUDITORS Our special assistant auditors for this audit were Martin & Shadid, P.C. {Expenditures and Activity Measures are summarized on the reverse page.}

WORKERS’ COMPENSATION COMMISSION

SELF-INSURERS’ SECURITY FUND

FINANCIAL AUDIT

For The Year Ended June 30, 2008

STATEMENTS OF REVENUE EXPENSES, AND CHANGES IN NET ASSETS	FY 2008	FY 2007
OPERATING REVENUES Escrow Fees and Surety Bond..............................	$3,920,983	$2,888,347
OPERATING EXPENSES Benefit Payments and Refunds.......................... Personnel and Operating Expenses.................... Total ...........................................................	$4,235,268      247,243 $4,482,511	5,241,576    187,620 $5,429,196
OPERATING (LOSS) INCOME.......................... NONOPEATING REVENUES (EXPENSES) Interest Income............................................             Change in Liabilities for Unpaid Claims...... Total Nonoperating................................ CHANGE IN NET ASSETS (DEFICIT).............	$(  561,528) $1,306,832      690,490 $1,997,322 $1,435,794	$(2,540,849)       $1,473,164      600,729 $2,073,893  $ (466,956)
SELECTED ACCOUNT BALANCES – STATEMENTS OF NET ASSETS	FY 2008	FY 2007
ASSETS:
Cash in bank......................................................	$       23,747	$     145,724
Cash in State Treasury.......................................	30,084,685	28,660,946
Accrued interest receivable................................ Other................................................................. Total Assets	59,877           100 $30,168,409	113,805            405 $28,920,880
LIABILITIES:
Account Payable................................................	$     594,417	$       78,192
Liabilities for Unpaid Claims............................. Compensated Absences..................................... Total Liabilities........................................................ RESTRICTED NET ASSETS, End of Year.............. Total Liabilities and Net Assets..........................	9,609,123         28,000 $10,231,540 $19,936,869 $30,168,409	10,309,613         32,000 $10,419,805 $18,501,075 $28,920,880
CHAIRMAN
During Audit Period:  Dennis R. Ruth (2/22/03-10/2/08); Jerry Jutila (10/3/08-11/6/08); Amy J. Masters, Acting (11/21/08-Current)
Currently: Amy J. Masters, Acting