REPORT DIGEST

ILLINOIS GRAIN INSURANCE CORPORATION

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2019

Release Date:  February 19, 2020

FINDINGS THIS AUDIT:  2

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  1 -- 1 -- 2
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 1 -- 2

FINDINGS LAST AUDIT: 4

Category 1: Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State laws
and regulations (material noncompliance).
Category 2: Findings that are significant
deficiencies in internal control and
noncompliance with State laws and regulations.
Category 3: Findings that have no internal
control issues but are in noncompliance with
State laws and regulations.

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, 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 Full Report are also
available on the worldwide web at
www.auditor.illinois.gov

SYNOPSIS

• (19-01) The Corporation did not fund the
$2,000,000 Grain Insurance Reserve Fund as
required by the Grain Code.
• (19-02) The Corporation improperly
authorized the use of temporary storage space
as required by the Grain Code.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

GRAIN INSURANCE RESERVE FUND NOT FUNDED

The Illinois Grain Insurance Corporation
(Corporation) did not fund the $2,000,000
Grain Insurance Reserve Fund as required by
the Grain Code (Code).

On April 5, 2005, the Corporation remitted the
$4,000,000 balance due the General Revenue
Fund that was borrowed prior to June 30, 2003.
The Corporation has not yet established the
$2,000,000 Grain Insurance Reserve Fund as
required by the Grain Code after repayment of
funds owed the General Revenue Fund. (Finding
1, page 11). This finding has been repeated
since 2005.

We recommended the Corporation comply with the
law by working with the Office of Management
and Budget to obtain the necessary
appropriation to fund the Grain Insurance
Reserve Fund or seek legislative relief from
the statutory requirement.

Corporation officials stated while Section,
25-20(h) of the Illinois Grain Code expressly
requires the State to make unpaid claimants
whole even if the General Assembly does not
appropriate the money, the Corporation
recognizes the requirement of a Reserve Fund
in the Grain Code and the Corporation will
work with the Office of Management and Budget
to attempt to obtain the necessary
appropriation to fund the Grain Insurance
Reserve Fund.

IMPROPER AUTHORIZATION OF TEMPORARY STORAGE
SPACE

The Illinois Grain Insurance Corporation
(Corporation) improperly authorized the use of
temporary storage space as required by the
Grain Code.

During our testing of temporary storage space
authorizations, we noted 4 of 37 (11%)
temporary storage space authorizations with
expiration dates past May 15th, ranging from
12 to 21 days past the required expiration
date. In addition, we noted 1 of 37 (3%)
temporary storage space authorizations was
approved on November 27, 2018, with an
incorrect expiration date of May 15, 2018.
(Finding 2, page 12).

We recommended the Corporation strengthen its
controls to ensure proper authorization of
temporary storage space as required by the
statute.

Corporation officials stated the Corporation
will use its best efforts to ensure proper
authorization of temporary storage space.

AUDITOR’S OPINION

The auditors stated the financial statements
of the Corporation as of and for the years
ended June 30, 2018, and June 30, 2019, are
fairly stated in all material respects.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Agency for the two years
ended June 30, 2019, as required by the
Illinois State Auditing Act.  The accountants
stated the Corporation complied, in all
material respects, with the requirements
described in the report.

This financial audit / compliance examination
was conducted by Adelfia LLC.

JANE CLARK
Division Director

This report is transmitted in accordance with
Section 3-14 of the Illinois State Auditing
Act.

FRANK J. MAUTINO
Auditor General

FJM:MIR