REPORT DIGEST

SOUTHWESTERN ILLINOIS DEVELOPMENT AUTHORITY

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


Release Date:   August 6, 2013

Summary of Findings:
Total this audit: 1
Total last audit:  2
Repeated from last audit: 0

State 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 Full Report are also
available on the worldwide web at
www.auditor.illinois.gov

INTRODUCTION

The Illinois General Assembly made
appropriations to the Southwestern Illinois
Development Authority (Authority) to replenish
draws on the debt service reserve fund backing
bonds issued on behalf of Waste Recovery –
Illinois, Alton Center Business Park, and
Laclede Steel – Illinois.  In accordance with
the Illinois State Auditing Act (30 ILCS
5/3-1(a)), our special limited scope compliance
examination was limited to these State
appropriations and related payments and to
$250,000 of State funds granted by the
Department of Commerce and Economic Opportunity
(DCEO) subject to a State appropriation to the
Authority for the Mid-America Medical District
Commission.

SYNOPSIS

• The Authority had inadequate controls over the
calculation of accrued interest on the DCEO
grant.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER THE CALCULATION OF
ACCRUED INTEREST

The Authority did not accurately calculate
interest on funds held in trust on behalf of the
Mid-America Medical District Commission.  The
amount of interest was understated by
approximately $1,612.  The calculation was
necessary due to the commingling of funds in the
account.  As a result, the Authority failed to
return the unspent interest to DCEO at the end
of the grant period. (Finding 1, Pages 7-8)

The Authority stated the unspent accrued
interest was not returned to DCEO due to
employee oversight.

We recommended the Authority work to remit the
proper amount of unspent grant funds, including
interest earned, to DCEO.  We also recommended
the Authority discontinue the commingling of
grant funds.

Authority management agreed with the finding and
recommendation.

AUDITORS’ OPINION

We conducted a special limited scope compliance
examination of appropriations made by the
General Assembly to the Authority and related
expenditures and the grant received from the
Illinois Department of Commerce and Economic
Opportunity subject to a State appropriation to
the Authority for the Mid-America Medical
District Commission as authorized by the
Illinois State Auditing Act.

WILLIAM G. HOLLAND
Auditor General

WGH:skm:rt

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