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
INTRODUCTION
This digest covers the financial audit and compliance examination of the Kankakee River Valley Area Airport
Authority (Authority) for the year ended June 30, 2011. The Authority received no appropriations from the
Illinois General Assembly, and funds were not held in the State Treasury. The Authority was financed solely
through interest income received from locally held funds.
SYNOPSIS
• The Authority had inadequate segregation of duties in the area of expenditure control.
• The Authority failed to comply with the Kankakee River Valley Area Airport Authority Act.
{Expenditures and Activity Measures are summarized on the reverse page.}
KANKAKEE RIVER VALLEY AREA AIRPORT AUTHORITY
FINANCIAL AUDIT AND COMPLIANCE
EXAMINATION
For the Year Ended: June 30, 2011
Summary of Findings:
Total this audit:
Total last audit:
Repeated from last audit:
2
2
Release Date: December 21, 2011 2
iii
Inadequate segregation of duties in
area of expenditure control
Vice Chairman had ability to write
and sign checks, reconcile banks
statements, and maintain all
Authority records
Authority agreed with auditors’
recommendation
Authority failed to comply with
statute
Authority did not submit report to
the Governor
Authority did not fill vacant
positions
Authority members did not file
bonds with the Office of the
Secretary of State
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
INADEQUATE SEGREGATION OF DUTIES
The Kankakee River Valley Area Airport Authority
(Authority) had inadequate segregation of duties in the area of
expenditure control.
During testing, we noted that the Authority’s Vice Chairman
had the ability to write and sign checks, reconcile bank
statements, and maintain all Authority records. However, the
Authority had not written a check since August 2004. (Finding
1, page 9) This finding was first reported in 2008.
We recommended the Authority implement adequate
segregation of duties over recordkeeping, expenditure
approval, and reconciliation.
The Authority agreed with the recommendation, stating that
due to the Authority’s lack of board members, the member
remaining is scheduling a meeting with the Kankakee County
Board Chairman to discuss the Authority’s future. (For the
previous Authority response, see Digest footnote #1.)
NONCOMPLIANCE WITH KANKAKEE RIVER
VALLEY AREA AIRPORT AUTHORITY ACT
The Authority failed to comply with certain provisions of
the Kankakee River Valley Area Airport Authority Act (Act).
We noted the following deficiencies:
• The Authority did not create and submit a written
statement and report to the Governor covering its
activities for the preceding fiscal year by
November 15th as required by statute.
• The Authority had three vacancies requiring
appointment. One vacancy required an
appointment by the Will County Board and two
vacancies required an appointment by the
Kankakee County Board. As of 6/30/11, Will
County and Kankakee County did not appoint any
individuals to fill the vacant Authority member
seats.
• Five of Five (100%) Authority members did not
file bonds in the amount of $100,000 or file their
constitutional oath of office with the Office of the
Secretary of State in accordance with the Act.
(Finding 2, pages 10-11) This finding was first
reported in 2005.
We recommended the Authority prepare and submit a
written statement and report covering its activities over the
iv
Authority agreed with auditors’
recommendation
preceding fiscal year to the Governor by November 15th of
each year as required. In addition, we recommended the
Authority strengthen controls to ensure the Authority obtains
the constitutional oath of office and bond in the penal sum of
$100,000 for appointed members and that the oaths and bonds
are filed with the Office of the Secretary of State or seek
legislative remedy.
Further, due to the Authority’s inactivity over the past
several years and their inability to maintain eight appointed
board members, we recommended the Authority either ensure
members are appointed in accordance with the Act or seek
legislative remedy.
The Authority agreed with the recommendation, stating that
with the lack of board members and inactivity it was thought
no report was necessary. The Authority further stated that
there is a meeting scheduled with the Kankakee County Board
Chairman to discuss the Authority’s future. (For the previous
Authority response, see Digest footnote #2.)
AUDITORS’ OPINION
The auditors stated the financial statements of the Authority
as of June 30, 2011, and for the year ended, are fairly
presented in all material respects.
STATE COMPLIANCE EXAMINATION –
ACCOUNTANT’S REPORT
The auditors qualified their report on State Compliance for
finding 11-2. Except for the noncompliance described in these
findings, the auditors state the Authority complied, in all
material respects, with the requirements described in the
report.
___________________________________
WILLIAM G. HOLLAND
Auditor General
WGH:PH:pp
AUDITORS ASSIGNED
This audit was preformed by the staff of the Office of the
Auditor General.
v
DIGEST FOOTNOTES
#1 INADEQUATE SEGREGATION OF DUTIES
2010: The Authority agreed with the recommendation and
noted due to the Authority’s lack of Board members, the
member remaining was scheduling a meeting with the
Kankakee County Board Chairman to discuss the Authority’s
future.
#2 NONCOMPLIANCE WITH KANKAKEE RIVER
VALLEY AREA AIRPORT AUTHORITY ACT
2010: The Authority agreed with the recommendation and
noted with the lack of Board members and inactivity, it was
thought no report was necessary. There was a meeting
scheduled with the Kankakee County Board Chairman to
discuss the Authority’s future.
