REPORT DIGEST ILLINOIS DEVELOPMENT FINANCE AUTHORITY FINANCIAL AND COMPLIANCE AUDIT (In accordance with the Single Audit Act and OMB Circular A-133) For the Year Ended: Summary of Findings: Total this audit 1 Release Date: State of Illinois WILLIAM G. HOLLAND AUDITOR GENERAL To obtain a copy of the Report contact: |
SYNOPSIS
{Expenditures and Activity Measures are summarized on the next page.} |
ILLINOIS DEVELOPMENT FINANCE AUTHORITY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 2001
REVENUES AND EXPENSES (ENTERPRISE FUNDS) | FY 2001 |
FY 2000 |
|
Total Revenues | $4,083,751 |
$4,639,369 |
|
Administrative Service Fees % of Revenues |
$1,992,816 |
$1,968,597 |
|
Investment Income % of Revenues |
$1,198,848 |
$1,906,513 |
|
Interest on Loans % of Revenues |
$524,776 |
$498,024 |
|
Other Income % of Revenues |
$367,311 |
$266,235 |
|
Total Expenses | $2,980,276 |
$3,143,104 |
|
Salaries and
Benefits............................. % of Expenses................ |
$1,818,274 |
$1,750,593 |
|
Average No. of Employees | 24 |
24 |
|
Contractual Services % of Expenses |
$859,321 |
$1,018,711 |
|
Other Items % of Expenses |
$302,681 |
$373,800 |
|
Net Income | $1,103,475 |
$1,496,265 |
|
Cost of Property and Equipment | $261,949 |
$274,552 |
|
SELECTED ACTIVITY MEASURES (Unaudited) | FY 2001 |
FY 2000 |
|
623 |
554 |
||
Total Number of New Bond Issues and Loans | 83 |
72 |
|
$7,105 |
$6,805 |
||
Jobs Created or Retained during Year | 1,689 |
1,103 |
|
AGENCY DIRECTOR | |||
During Audit Period: Patrick E. Rea |
The Authority did not report bond issues and notice of payments with the Comptroller timely |
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS The Authority did not file the required documents for three new bond issues with the Comptroller within the thirty days as required by Statewide Accounting Management System (SAMS) procedure 31.30.10. In addition, the Authority contracted with a bank to collect the Notices of Payment forms from various trustees. The bank was late filing the Notice of Payment forms with the Comptroller for 350 (7%) of 4,842 filings. The filings are due within thirty days of payment as required by SAMS procedure 31.30.20. According to the Authority, a change in internal responsibilities caused a lack of management oversight of filing the new bond issues, and miscommunication between the bank and the Comptrollers office contributed to the delinquency in filing the Notice of Payment forms. We recommended the Authority implement procedures to ensure that it files the required documents for new bond issues within thirty days of closing and that the bank remit the Notices of Payments to the Comptroller in a timely manner. (Finding 1, page 13) Authority management stated the trustees for the bond issues are responsible for reporting payments to the Authority. The authority then reports these payments to the Illinois Office of the Comptroller. Those trustees who were found to be delinquent have been notified, and new stringent monitoring controls have been instituted and implemented with the bank that is performing reporting services on behalf of the Authority. Internal controls are now in place to ensure new bond issue reporting within the required time frame. AUDITORS OPINION Our auditors state the financial statements of the Authority as of and for the year ended June 30, 2001 are fairly presented in all material respects. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:JAF:pp SPECIAL ASSISTANT AUDITORS KPMG LLP were our special assistant auditors on this audit. |