2012 Office of the Comptroller, Fiscal Officer Responsibilities Financial Audit

              Office of the Auditor General, Iles Park Plaza, 740 E. Ash St., Springfield, IL 62703 • Tel: 217-782-6046 or TTY 888-261-2887
This Report Digest and a Full Report are also available on the internet at www.auditor.illinois.gov
OFFICE OF THE COMPTROLLER
FISCAL OFFICER RESPONSIBILITIES
Financial Audit and Compliance Examination
For the Year Ended: June 30, 2011
Summary of Findings:
Total this report
Total last report
Repeated from last report:
1
4
1
Release Date: April 26, 2012
INTRODUCTION
This digest covers our financial audit and compliance examination of the State of Illinois Office of the Comptroller – Fiscal Officer Responsibilities for the year ended June 30, 2011.
SYNOPSIS
• The State of Illinois Office of the Comptroller (Office) did not make all statutorily mandated transfers from the General Revenue Fund within established timeframes, as required.
{Financial data is summarized on the reverse page.}ii
FUND BALANCE
Budgetary
Budgetary
(Amounts in Thousands)
Cash Balance
Balances*
Cash Balance
Balances*
Appropriated Funds
General Funds......................................
469,169$
(4,507,412)$
129,866$
(6,094,102)$
Highway Funds....................................
999,175
910,825
805,153
685,738
Special State Funds..............................
2,253,787
1,949,261
2,028,878
1,442,062
Bond Financed Funds...........................
1,449,293
1,448,293
2,226,200
2,225,894
Debt Service Funds..............................
1,307,792
1,132,599
919,732
919,732
Federal Trust Funds..............................
204,120
(494,467)
232,733
(369,918)
Revolving Funds..................................
40,965
(29,576)
41,499
(70,500)
State Trust Funds.................................
341,919
265,939
353,807
284,865
Sub-Total.....................................
7,066,220$
675,462$
6,737,868$
(976,229)$
Non-Appropriated Funds
Federal Trust Funds.................................
983$
362$
235$
(29)$
State Trust Funds.....................................
1,646,891
1,645,850
1,527,237
1,440,016
Sub-Total.....................................
1,647,874$
1,646,212$
1,527,472$
1,439,987$
GRAND TOTAL - ALL FUNDS.......
8,714,094$
2,321,674$
8,265,340$
463,758$
FY 2011
FY 2010
118,084,329$
111,097,775$
116,226,413
112,371,059
1,857,916$
(1,273,284)$
FY 2011
FY 2010
16,949,356$
12,089,244$
14,340,334
32,937,309$
10,569,546
944,837
5,044,351
6,569,137
1,811,491
3,238,666
829,581
278,170
582,443
1,922,931
2,388,994
4,352,413
52,516,096$
62,332,707$
STATE COMPTROLLER
During Engagement Period: Honorable Judy Baar Topinka beginning 1/10/11, Honorable Daniel W. Hynes until 1/9/11
Currently: Honorable Judy Baar Topinka
All Other......................................................................................................................
Total Interest Paid...............................................................................................
Fiscal Year 2011
Fiscal Year 2010
FINANCIAL HIGHLIGHTS (Amounts in Thousands)
FINANCIAL HIGHLIGHTS (Not Examined)
Interest Paid on Late Vendor Payments
Department of Human Services....................................................................................
Department of Healthcare and Family Services............................................................
Department of Corrections...........................................................................................
Total Expenditures - All Funds........................................................................................
Net Change in Budgetary Fund Balance - All Funds
Department of Aging....................................................................................................
Court of Claims............................................................................................................
Department of Central Management Services..............................................................
State Board of Education..............................................................................................
Total Revenues - All Funds.............................................................................................
* Budgetary Balances the represent balances remaining after reduction of Cash Balances at June 30 by lapse period transactions.
OFFICE OF THE STATE COMPTROLLER - STATE OF ILLINOIS
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For The Year Ended June 30, 2011
FISCAL OFFICER RESPONSIBILITIESiii
Late payments made for inter-fund transfers totaling $2.48 billion in FY11
Late payments due to cash management decisions
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
LATE PAYMENT OF STATUTORILY MANDATED TRANSFERS
The Office of the Comptroller (IOC) did not make all transfers from the General Revenue Fund within the established timeframes, as required by statute.
The IOC processed transfers from 31 to 454 days after the mandated transfer date for a total of $2.48 billion in FY11. Failure to make inter-fund transfers within applicable timeframes is in noncompliance with State law and might result in delayed use of appropriated funds.
Office officials stated the late payment of transfers occurred because of cash management decisions and prioritization due to the lack of available cash in the State Treasury. Further, some statutory provisions relating to transfers contain language such as “as soon as practicable.” (Finding No. 11-1, page 10-11) This finding was first reported in 2009.
Office officials accepted the recommendation and stated taking into account the financial condition of State funds the Office will continue its efforts to make transfers in the timeliest manner possible.
AUDITORS’ OPINION
We conducted a compliance examination of the Comptroller's Fiscal Officer Responsibilities for the year ended June 30, 2011 as required by the Illinois State Auditing Act.
Our auditors stated the fund balances at June 30, 2011, and the revenues and expenditures for the year then ended relating to the State of Illinois, Office of the Comptroller - Fiscal Officer Responsibilities’ Traditional Budgetary Financial Report, are fairly presented in all material respects. The auditors noted the financial statements have been prepared on a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.iv
General Revenue Budgetary Fund balance increased $1.6 billion
General Revenue Fund Budgetary Balance deficit of $4.5 billion at June 30, 2011
The budgetary basis fund balance of the General Funds increased by $1,586,691,037 during the fiscal year ended June 30, 2011. At June 30, 2011, the budgetary basis fund balance of the General Funds was a deficit of $4,507,411,953.
___________________________________
WILLIAM G. HOLLAND
Auditor General
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SPECIAL ASSISTANT AUDITORS
Sikich LLP were our Special Assistant Auditors for this engagement.
DIGEST FOOTNOTES
#1 - LATE PAYMENT OF STATUTORILY MANDATED TRANSFERS
2010: Office officials concurred with the recommendation and stated they would continue efforts to make transfers in as timely manner as possible.