State of Illinois Receivables Report, Calendar Year ended December 31, 2005

              The Illinois State Collection Act requires the Comptroller to collect information from State
agencies concerning their accounts receivable and uncollectibles and to compile this informa-tion
in a report to the Governor and General Assembly on or before March 14 each year. The
ensuing report is the compilation and analysis of the data collected for calendar year 2005.
As of December 31, 2005, the total amount owed to the State was $12.6 billion, an increase
of $868 million or 7% above the $11.7 billion reported in 2004. Those 2004 receivables represented a 5% increase
or $605 million higher than 2003. The 2005 increase is driven by increased student loan activity at the Illinois
Student Assistance Commission and higher child support claims and public assistance recoveries at the Department
of Healthcare and Family Services, formerly known as the Department of Public Aid. The total amount of receiv-ables
is offset, however, by decreased loan activity at the Illinois Housing Development Authority.
Collection Efforts
The Comptroller’s Office plays an important role in State receivables. Besides collecting and reporting on the data,
the Office administers the Offset System and participates with the Attorney General and the Department of Central
Management Services on the Debt Collection Board. Primary responsibility for debt collection, however, rests with
the state agency in which the debt originates.
Comptroller’s Offset System
State agencies are required by statute to submit accounts over $1,000 and more than 90 days past due to the Offset
System. The system compares the past due accounts with warrants issued to determine if State payments are due
to debtors. If a State payment is due a debtor, the Comptroller’s Office offsets the amount owed, in whole or in
part, from the warrant. The Comptroller’s Offset System returned over $23.7 million to the state treasury in calen-dar
year 2005.
Debt Collection Board
The Illinois State Collection Act places additional debt collection activity under the jurisdiction of the Department
of Revenue’s Debt Collection Bureau and the Debt Collection Board. The Board has interpreted its responsibility
as receiving quarterly reports and directing agencies to submit qualifying debt to a third party collection agency.
Currently, the Board and the Bureau have contracted jointly with five different third party collection agencies that
State entities can use.
Given the State’s evolving fiscal condition, it is important for State agencies to maximize their collection efforts.
The Offset System and the use of third party collection agencies are important tools for collecting the money owed
the State. These tools along with aggressive management can help to ensure that everyone is paying their fair share.
Daniel W. Hynes DATE
COMPTROLLER
AMessage to Illinois Taxpayers
March 14, 2006
State House
James R. Thompson Center
325 West Adams
Springfield, Illinois 62706-0001
100 West Randolph, Suite 15-500
Springfield, Illinois 62704-1871
217/782-6000
Chicago, Illinois 60601-3252
312/814-2451