REPORT DIGEST

 

KANKAKEE RIVER VALLEY AREA AIRPORT AUTHORITY

 

FINANCIAL AUDIT

AND COMPLIANCE EXAMINATION

For the Year Ended:

June 30, 2005

 

Summary of Findings:

 

Total this audit†††††††            †††††† 1

Total last audit†††††††††††            †† 0

Repeated from last audit†††††††††† 0

 

Release Date:

March 8, 2006 

 

 

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 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 AUDIT AND COMPLIANCE EXAMINATION

For The Year Ended June 30, 2005

 

 

PROPRIETARY FUND FINANCIAL OPERATIONS

 

FY 2005

 

FY 2004

PROPRIETARY FUND EXPENSES

 

 

††††† OPERATING EXPENSES

 

 

††††††††††† Contractual Services..........................

$200

$200

††††††††††† Dues - Airport Association.................

0

200

††††††††††† Telephone Expenses..........................

24

455

††††††††††† Bank Service Charge.........................

†††† 102

†††† 103

†††††††††††††† Total Operating Expenses................

†††† 326

†††† 958

 

 

 

††††††††††† Operating Income (Loss)

†† (326)

(958)

 

 

 

PROPRIETARY FUND REVENUES

 

 

††††† NONOPERATING REVENUES

 

 

††††††††††† Interest Income.................................

†††††††† 7

††††† 10

††††††††††††††††† Total Nonoperating Revenues.......

†††††††† 7

††††† 10

Change in Net Assets

(319)

(948)

Net Assets, July 1

2,513

3,461

Net Assets, June 30

$2,194

$2,513

CONTRIBUTED SERVICES (unaudited)

 

 

††††††††††† Contributed Facilities and Services......

$22,535

$5,135

 

SELECTED PROPRIETARY FUND BALANCES

JUNE 30,

2005

JUNE 30,

2004

Cash............................................................

$2,269

$2,664

Net Assets...................................................

$2,194

$2,513

 

AGENCY CHAIRMAN

††††† During Audit Period:Mr. David Wallace

††††† Currently:Mr. David Wallace

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Two vacant appointments

 

 

 

 

 

 

Failure to reissue fidelity bond

 

 

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 audit and compliance examination of the Authority for the year ended June 30, 2005.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 (Act).

 

We noted two Board memberís 5 year term expired in January 2004 and 2005 and new appointments have not been made to fill the vacant appointments.In addition, another Board memberís 5 year term expired in January 2005 and they have continued to serve as a member of the Authority without appropriate reappointment from the original appointing authority.Further, a Board memberís fidelity bond expired January 2005 and the fidelity bond was not reissued through the State of Illinois, Department of Central Management Services, in the amount of $100,000.Therefore, the bond was not filed with the Secretary of State.

 

††††† We recommended the Authority appoint members in accordance with the Act and strengthen controls to ensure the Authority obtains new bonds for Board members who have been reappointed and the bonds are appropriately filed with the Secretary of State.(Finding 05-1, page 9)

 

††††† Authority officials stated that they agree with the finding and is working to get the appointments updated along with insurance bonds for the members.

 

 

AUDITORSí OPINION

 

Our auditors stated the financial statements of the Authority as of June 30, 2005, 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.