REPORT DIGEST

 

KANKAKEE RIVER VALLEY AREA AIRPORT AUTHORITY

 

FINANCIAL AND COMPLIANCE AUDIT

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                        1

Total last audit                        0

Repeated from last audit         0

 

Release Date:

April 13, 2004

 

 

 

 

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 TDD (217) 524-4646

 

 

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

SYNOPSIS

  • The Authority failed to comply with the Kankakee River Valley Area Airport Authority Act.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

              KANKAKEE RIVER VALLEY AREA AIRPORT AUTHORITY

 

                              FINANCIAL AND COMPLIANCE AUDIT

                                    For The Year Ended June 30, 2003

 

PROPRIETARY FUND FINANCIAL OPERATIONS

FY 2003

FY 2002

PROPRIETARY FUND EXPENSES

   

OPERATING EXPENSES

   

Contractual Services

$300

$900

Dues - Airport Association

200

200

Telephone Expenses

368

287

Bank Service Charge

104

105

Other

31

34

Total Operating Expenses

$1,003

$1,526

     

Operating Income (Loss)

$(1,003)

$(1,526)

PROPRIETARY FUND REVENUES

NONOPERATING REVENUES

Interest Income

$18

$35

Total Nonoperating Revenues

$18

$35

Change in Net Assets

$(985)

$(1,491)

Net Assets, July 1

$4,446

$5,937

Net Assets, June 30

$3,461

$4,446

CONTRIBUTED SERVICES

   

Contributed Facilities and Services

$5,170

$5,055

SELECTED PROPRIETARY FUND BALANCES

JUNE 30,

2003

JUNE 30,

2002

Cash

$3,598

$4,475

Net Assets

$3,461

$4,446

AGENCY CHAIRMAN

During Audit Period: Mr. Robert Glade

Currently: Mr. Robert Glade

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Failure to obtain fidelity bonds

 

 

INTRODUCTION

The Kankakee River Valley Area Airport Authority was created September 10, 1990 as a result of the Kankakee River Valley Area Airport Authority Act (70 ILCS 15 et seq.). Its mission is to facilitate safe and convenient air travel and transportation to and from the Kankakee River Valley by acquisition or construction and operation of one or more airports.

This digest covers the financial and compliance audit of the Authority for the year ended June 30, 2003. The Authority received no appropriations from the Illinois General Assembly, and funds were not held in the State Treasury. The Authority was financed solely through contributions from private sources and interest income received from locally held funds.

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH KANKAKEE RIVER VALLEY AREA AIRPORT AUTHORITY ACT

The Authority failed to comply with the Kankakee River Valley Area Airport Authority Act.

We noted the Authority failed to re-appoint one existing Board member after their appointment had expired. The Authority failed to file a fidelity bond with the Office of the Secretary of State for one new member and obtain new fidelity bonds for Board members that were re-appointed. In addition, a new Board member did not take and subscribe to the constitutional oath of office until after the Board member was appointed and entered into the duties of the office.

We recommended the Authority obtain proper approvals of re-appointments from the original appointing authority. Further, we recommended the Authority strengthen controls ensuring proper oaths and bonds are taken by new Board members and obtaining new bonds for Board members who have been re-appointed. (Finding 1, pages 10 and 11)

Authority officials stated that proper approvals of re-appointments and appropriate bonds for new and existing members will be obtained.

 

AUDITORSí OPINION

Our auditors stated the financial statements of the Authority as of June 30, 2003, and for the year ended, are fairly presented in all material respects.

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:TLD

AUDITORS ASSIGNED

This audit was performed by the staff of the Office of the Auditor General.