REPORT DIGEST



OFFICE OF THE TREASURER
FISCAL OFFICER RESPONSIBILITIES



FINANCIAL AND COMPLIANCE AUDIT
For the Year Ended:
June 30, 1997



Summary of Findings:

Total this audit 2
Total last audit 0
Repeated from last audit 1





Release Date:
May 13, 1998




State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046













SYNOPSIS

  • The Treasurer's Office did not provide the Attorney General with a monthly report of the amount of money in the Violent Crime Victims Assistance Fund.
  • Four properties remained in the Illinois Insured Mortgage Pilot Program Trust as of June 30, 1997.







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


OFFICE OF THE TREASURER - STATE OF ILLINOIS
FISCAL OFFICER RESPONSIBILITIES
FINANCIAL AND COMPLIANCE AUDIT
FOR THE YEAR ENDED JUNE 30, 1997



ASSETS, LIABILITIES AND ACCOUNTABILITIES

JUNE 30, 1997

JUNE 30, 1996

  • Assets

Cash
Revenue - Producing Deposits and Investments, At Cost (which approximates market)
Other Assets
Amount of Future General Revenues Obligated for Debt Service
TOTAL ASSETS

  • Liabilities and Accountabilities

Liabilities for Balances on Deposit
General Obligation Indebtedness
Accountabilities
TOTAL LIABILITIES AND ACCOUNTABILITIES

 

 

 



$40,950,602

5,534,707,070
192,282,082

8,150,227,049
$13,918,166,803



$5,332,089,018
8,561,248,961
24,828,824

$13,918,166,803

 



$26,509,612

5,103,127,777
299,296,898

8,257,129,082
$13,686,063,369



$5,043,577,484
8,622,793,804
19,692,081

$13,686,063,369

 

FINANCIAL HIGHLIGHTS

YEAR ENDED JUNE 30, 1997

YEAR ENDED JUNE 30, 1996

  • Investment Income
  • Average Yield on Time Deposits
  • Average Yield on Short-Term Investments

 

 

$253,744,418
4.57%
4.65%

$253,127,942
5.54%
5.34%

STATE TREASURER
During Audit Period: Honorable Judy Baar Topinka
Currently: Honorable Judy Baar Topinka

 

 




Monthly report to Attorney General not made































At June 30, 1997 four properties remain in the Illinois Insured Mortgage Pilot Program Trust




Accrued interest receivable for nonperforming assets approximated $14,139,000 at June 30, 1997


Outstanding litigation

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

The Treasurer's Office did not provide the Attorney General with a monthly report of the amount of money in the Violent Crime Victims Assistance Fund.

The Violent Crime Victims Assistance Act (725 ILCS 240/10) states that the Treasurer's Office shall provide the Attorney General a status report of the amount of money in the Violent Crime Victims Assistance Fund on a monthly basis. (Finding 2, page 11)

We recommended the Treasurer's Office prepare and forward the monthly reports to the Attorney General.

Officials in the Treasurer's Office stated that at the present time, a separate report is not being prepared for the Attorney General since the Treasurer only deposits monies to the Violent Crime Victims Assistance Fund and does not have authority to expend monies from this fund. Further, they do provide the Attorney General with a copy deposit ticket that illustrates by county the deposits made to the Violent Crime Victims Assistance Fund. Also, a copy of the Receipt Deposits Transmittal is sent to the Attorney General.

OTHER FINDING

The remaining finding was less significant and is being given appropriate attention by the Treasurer. We will review progress toward implementation of our recommendations during our next audit.

Mr. Edward Buckles, Chief Fiscal Officer, provided responses to our recommendations

OTHER DISCLOSURES

ILLINOIS INSURED MORTGAGE PILOT PROGRAM TRUST

As of June 30, 1997 there were four properties in the Illinois Insured Mortgage Pilot Program Trust (Trust). The Trust held the mortgage loans on the properties as underlying collateral for the State's investment in the program. Two of the properties were commercial properties, Park Plaza Shopping Center and Geneva on the Dam. The other two properties were hotels, the Renaissance Springfield Hotel and the Holiday Inn, Collinsville Hotel.

The recorded value on the financial statements for these investments was $10,634,000 as of June 30, 1997 and the loan balance was $34,353,000.

The mortgage loans on two hotels and Park Plaza Shopping Center were considered nonperforming assets. Accrued interest receivable at June 30, 1997 for the nonperforming assets approximated $14,139,000. Interest on nonperforming assets is recognized when collected, and therefore has not been recorded on the financial statements.

The Treasurer's outstanding investments in the Illinois Insured Mortgage Pilot Program which have been secured by hotel properties have been the subject of litigation regarding both the proposed sale of the notes and an attempt to collect on collateral for alleged failure to make required payments. The outcome of this litigation is not presently determinable.

SUBSEQUENT EVENTS

The State of Illinois issued $100,000,000 General Obligation Bonds, Series of July 1997, subsequent to June 30, 1997.

On August 11, 1997, the Treasurer received $2,276,339 for the investment in the Illinois Insured Mortgage Pilot Program related to the Geneva on the Dam note. The amount received represented unpaid principal and interest.

AUDITORS' OPINION

Our auditors state the June 30, 1997 financial statements present fairly, in all material respects, the assets, liabilities and accountabilities and the statement of investment income of the Office of the Treasurer.

____________________________________
WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Geo. S. Olive & Co. LLC were our Special Assistant Auditors for this audit.