State of Illinois Receivables Report, Calendar Year ended December 31, 2007

              A Message to Illinois Taxpayers
March 14, 2008
The Illinois State Collection Act requires the Comptroller to collect information from
State agencies concerning their accounts receivable and uncollectibles and to compile
this information 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 2007.
As of December 31, 2007, the total amount owed to the State was $12.0 billion, a
decrease of $1.791 billion from the $13.8 billion reported in 2006. However, this decrease factors in the sale of
$3.163 billion of student loans at the Illinois Student Assistance Commission. Not including these student loan
sales, remaining receivables increased $1.372 billion from 2006. The growth was the result of increases of
$420 million in child support claims and public assistance recoveries at the Department of Healthcare and
Family Services, additional loan activity of $129 million at the Illinois Housing Development Authority and $83
million at the Environmental Protection Agency and $237 million more in income taxes receivable at the
Department of Revenue.
The Department of Revenue does not take into account the date a tax return was filed; instead the date the tax
return was processed by the Department is used as the basis of determining whether an amount is receivable to
the Department. Accordingly, tax returns received by the Department as of December 31st may not have been
processed and included in the receivable amounts in this report.
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 Director of 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 $28.6 million to the
state treasury in calendar year 2007.
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 Bureau has contracted jointly with 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
Comptroller