REPORT DIGEST

 

KANKAKEE RIVER VALLEY AREA AIRPORT AUTHORITY

 

FINANCIAL AUDIT

AND COMPLIANCE EXAMINATION

For the Year Ended:

June 30, 2006

 

Summary of Findings:

 

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

Total last audit†††††††††††††             1

Repeated from last audit†††††††††† 1

 

Release Date:

April 10. 2007

 

 

Sate 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 Report are also available on the worldwide web at

www.auditor.illinois.gov

 

 

 

 

 

 

 

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, 2006

 

 

PROPRIETARY FUND FINANCIAL OPERATIONS

 

FY 2006

 

FY 2005

PROPRIETARY FUND EXPENSES

 

 

††††† OPERATING EXPENSES

 

 

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

$0

$200

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

0

0

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

0

24

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

†††††† 96

†††† 102

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

†††††† 96

††† 326

 

 

 

††††††††††† Operating Income (Loss)

††† (96)

†† (326)

 

 

 

PROPRIETARY FUND REVENUES

 

 

††††† NONOPERATING REVENUES

 

 

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

†††††††† 7

†††††††† 7

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

†††††††† 7

†††††††† 7

Change in Net Assets

††† (89)

(319)

Net Assets, July 1

2,194

2,513

Net Assets, June 30

$2,180

$2,194

CONTRIBUTED SERVICES (unaudited)

 

 

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

$2,535

$22,535

 

SELECTED PROPRIETARY FUND BALANCES

JUNE 30,

2006

JUNE 30,

2005

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

$2,180

$2,269

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

$2,180

$2,194

 

AGENCY CHAIRMAN

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

††††† Currently:Mr. David Wallace

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One vacant appointment

 

 

 

 

 

 

 

 

 

 

Failure to file constitutional oaths and 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 audit and compliance examination of the Authority for the year ended June 30, 2006.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 the following deficiencies:

 

        The Authority did not create and submit a written statement and report to the Governor covering its activities for the preceding fiscal year by November 15th.

        One Board member was ineligible and a new appointment has not been made to fill the vacant appointment.In addition, another Board memberís term expired in January 2006, and they have continued to serve as a member of the Authority without appropriate reappointment from the original appointing authority.Further, one Board member was newly appointed in January 2006, and the Authority did not have any documentation from the original appointing authority indicating the member had been appointed to a term of 5 years.

        Three of 7 (42%) Board members did not file bonds in the amount of $100,000 with the Office of the Secretary of State.Four of 7 (57%) Board members did not file their constitutional oath of office with the Office of the Secretary of State.

 

††††† We recommended the Authority prepare and submit a written statement and report covering its activities over the preceding fiscal year to the Governor by November 15th of each year as required.Further, we recommended the Authority ensure members are appointed in accordance with the Act and strengthen controls to ensure the Authority obtains the constitutional oath of office and bonds for Board members and the bonds are appropriately filed with the Secretary of State.(Finding 1, pages 9-10)

 

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

 

 

AUDITORSí OPINION

 

Our auditors stated the financial statements of the Authority as of June 30, 2006, and for the year ended, are fairly presented in all material respects.

 

 

 

†††††††††††††††††††††† ____________________________________

††† ††††††††††††††WILLIAM G. HOLLAND, Auditor General

 

WGH:TLD:pp

 

 

AUDITORS ASSIGNED

 

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