REPORT DIGEST

MID-AMERICA MEDICAL DISTRICT COMMISSION

COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2012


Release Date:   August 6, 2013

Summary of Findings:
Total this audit: 4
Total last audit:  1
Repeated from last audit: 1

State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL

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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

INTRODUCTION

The Mid-America Medical District Commission
(Commission) was created through the authority
of the Mid-America Medical District Act (70 ILCS
930/1 et seq.).  The Commission’s mission is to
attract and retain a medical district within
East St. Louis, academic centers of excellence,
viable health care facilities, medical research
facilities, emerging high technology
enterprises, and other facilities and uses as
permitted by the Act.

SYNOPSIS

• The Commission had inadequate controls in
place to determine whether interest calculated
on their behalf by the Southwestern Illinois
Development Authority (SWIDA) on funds held in
trust was accurate.

• The Commission did not adhere to their By-
Laws.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF INTERNAL CONTROLS OVER INTEREST
CALCULATION

The Commission did not have adequate controls in
place to determine whether the interest
calculated on their behalf by SWIDA on the funds
held in trust was accurate.  The interest
calculated on behalf of the Commission was
understated by approximately $1,612.

Commission management stated SWIDA was the
grantee on these funds and they were not advised
by the funds grant manager that they were
required to establish additional controls.
(Finding #1, pages 9-10)

We recommended the Commission strengthen
controls over its State grant funds by
maintaining their own documentation related to
any funds held in trust and verify the accuracy
of any calculations performed on behalf of the
Commission.  We also recommended the Commission
work to have the additional interest amount
still held by SWIDA returned to the Illinois
Department of Commerce and Economic Opportunity
(DCEO).

Commission management agreed with the finding
and recommendation and stated they will no
longer allow an outside entity to hold funds in
trust.  They also stated the remaining interest
has been remitted to DCEO.

NONCOMPLIANCE WITH THE COMMISSION BY-LAWS

The Commission did not adhere to their By-Laws.
Specifically, the Commission’s Treasurer was not
bonded and the Commission’s motions were not
signed by required members.

Commission management stated the Commission had
no funds to carry out the bonding and it was
oversight not to have the motions signed by the
President and Secretary of the Commission.
(Finding #4, page 14)

We recommended the Commission comply with all
aspects of their By-Laws.

Commission management agreed with the finding
and recommendation.  The Commission will vote to
amend the By-Laws to remove the bonding
provision and the requirement of signatures on
motions has been put into practice for all
future meetings.

OTHER FINDINGS

The remaining findings pertain to noncompliance
with the Open Meetings Act and the Commission
not being fully seated.  We will review the
Commission’s progress towards the implementation
of our recommendations in our next engagement.

AUDITORS’ OPINION

We conducted a compliance examination of the
Commission as required by the Mid-America
Medical District Act in accordance with the
Illinois State Auditing Act.  We have not
audited any financial statements of the
Commission for the purpose of expressing an
opinion because the Commission does not, nor is
it required to, prepare financial statements.

WILLIAM G. HOLLAND
Auditor General

WGH:skm

AUDITORS ASSIGNED
This examination was performed by staff of the
Office of the Auditor General.