STATE OF ILLINOIS DEPARTMENT OF TRANSPORTATION FINANCIAL AUDIT For the Year Ended June 30, 2009 Performed as Special Assistant Auditors for the Auditor General, State of Illinois This is trial version www.adultpdf.com STATE OF ILLINOIS DEPARTMENT OF TRANSPORTATION FINANCIAL AUDIT For the Year Ended June 30, 2009 TABLE OF CONTENTS Page AGENCY OFFICIALS 1 FINANCIAL STATEMENT REPORT Summary 2 Independent Auditors’ Report 4 Basic Financial Statements Statement of Net Assets 6 Statement of Activities 7 Balance Sheet – Governmental Funds 8 Reconciliation of Governmental Funds Balance Sheet to Statement of Net Assets 9 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 10 Reconciliation of Statement of Governmental Funds Revenues, Expenditures, and Changes in Fund Balances to Statement of Activities 11 Statement of Net Assets – Proprietary Fund - Air Transportation Revolving Fund (0309) 12 Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Fund - Air Transportation Revolving Fund (0309) 13 Statement of Cash Flows – Proprietary Fund - Air Transportation Revolving Fund (0309) 14 Notes to Financial Statements 15 This is trial version www.adultpdf.com STATE OF ILLINOIS DEPARTMENT OF TRANSPORTATION FINANCIAL AUDIT For the Year Ended June 30, 2009 TABLE OF CONTENTS - Continued Supplementary Information Combining Schedule of Accounts – General Revenue Fund 36 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – General Revenue Fund 37 Combining Schedule of Accounts – Motor Fuel Tax Fund 38 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Motor Fuel Tax Fund 39 Combining Balance Sheet – Nonmajor Governmental Funds 40 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 44 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 48 Schedule of Findings 50 Prior Findings Not Repeated 57 This is trial version www.adultpdf.com 1 STATE OF ILLINOIS DEPARTMENT OF TRANSPORTATION AGENCY OFFICIALS Secretary Gary Hannig Chief of Staff Bill Grunloh Assistant Secretary David D. Phelps Chief Counsel Ellen Schanzle-Haskins Director, Office of Finance and Administration Ann L. Schneider Acting Director, Office of Business and Workforce Diversity Lawrence Parrish Director, Office of Communications John A. Webber Acting Director, Office of Planning and Programming Charles J. Ingersoll Director, Office of Quality Compliance and Review Daniel Kennelly Director, Division of Aeronautics Susan Shea Director, Division of Highways Christine M. Reed Director, Division of Public and Intermodal Transportation Joseph P. Clary Director, Division of Traffic Safety Michael R. Stout Agency main offices are located at: 2300 S. Dirksen Parkway Springfield, IL 62764 This is trial version www.adultpdf.com 2 STATE OF ILLINOIS DEPARTMENT OF TRANSPORTATION FINANCIAL STATEMENT REPORT SUMMARY The audit of the accompanying basic financial statements of the State of Illinois, Department of Transportation (Department) was performed by Sikich LLP as special assistants for the Auditor General. Based on their audit, the auditors expressed an unqualified opinion on the Department’s basic financial statements. SUMMARY OF FINDINGS The auditors identified matters involving the Department’s internal control over financial reporting that they considered to be significant deficiencies. The significant deficiencies are described in the accompanying Schedule of Findings on pages 50-56 of this report, as findings 09-1 through 09-3, summarized below. The auditors also consider finding 09-3 to be a material weakness. 09-1 Weaknesses in preparation of GAAP reporting forms submitted to the Illinois Office of the Comptroller and preparation of year-end Department financial statements 09-2 Inaccurate commodities inventory records 09-3 Weaknesses in the reporting of capital assets PRIOR FINDINGS NOT REPEATED A. Revenue recognition/deferred revenue B. Restatement of shared revenues This is trial version www.adultpdf.com 3 EXIT CONFERENCE The findings and recommendations appearing in this report were discussed with Department personnel at an exit conference on March 11, 2010. Attending were: Department of Transportation Gary Hannig, Secretary Lori Beeler, Audit Coordinator/Risk Manager Mark Blankenship, Section Chief, Financial and Administrative Services Section Jarod Hitchings, Assistant to Audit Coordinator/Risk Manager Ron McKechan, Chief of Audits Aaron Weatherholt, Bureau Chief, Bureau of Operations Bill Winberg, Acting Chief of Fiscal Operations Office of the Auditor General Peggy Hartson, Audit Manager Sikich LLP – Special Assistant Auditors Amy L. Sherwood, Partner Sarah Sullivan, Senior Accountant The responses to the recommendations were provided by Secretary Gary Hannig in a letter dated March 17, 2010. This is trial version www.adultpdf.com 4 INDEPENDENT AUDITORS’ REPORT Honorable William G. Holland Auditor General State of Illinois As Special Assistant Auditors for the Auditor General, we have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the State of Illinois, Department of Transportation (the Department), as of and for the year ended June 30, 2009, which collectively comprise the Department’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Department’s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. As discussed in Note 2, the financial statements of the Department are intended to present the financial position, changes in financial position and cash flows, where applicable, of only that portion of the governmental activities, each major fund, and the aggregate remaining fund information of the State that is attributable to the transactions of the Department. They do not purport to, and do not, present fairly the financial position of the State of Illinois as of June 30, 2009, and the changes in its financial position and cash flows, where applicable, for the year then ended in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Department, as of June 30, 2009, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. This is trial version www.adultpdf.com 5 In accordance with Government Auditing Standards, we have also issued a report dated March 24, 2010 on our consideration of the Department’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The Department has not presented a management’s discussion and analysis and budgetary comparison information for any of its funds that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not required to be part of, the basic financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Department’s basic financial statements. The combining General Revenue Fund, Motor Fuel Tax Fund, and nonmajor fund financial statements and schedules listed in the table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining General Revenue Fund, Motor Fuel Tax Fund, and nonmajor fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of the Auditor General, the General Assembly, the Legislative Audit Commission, the Governor, the Comptroller, and Department management, and is not intended to be and should not be used by anyone other than these specified parties. Springfield, Illinois March 24, 2010 This is trial version www.adultpdf.com This is trial version www.adultpdf.com This is trial version www.adultpdf.com [...]... Unexpended appropriations Cash equity with State Treasurer Cash and cash equivalents Intergovernmental receivables, net Other receivables, net Due from other Department funds Due from other State funds Due from State of Illinois component units Inventories Loans receivable, net Total assets June 30, 2009 (Expressed in Thousands) Balance Sheet-Governmental Funds State of Illinois Department of Transportation. .. Intergovernmental payables Due to other State fiduciary funds Due to other Department funds Due to other State funds Due to State of Illinois component units Unavailable revenue Matured portion of long-term obligations Total liabilities This is trial version www.adultpdf.com $ $ $ $ 46,675 46,675 120,907 - - - 72,974 1,195 63 74,232 73,861 371 27 46,641 7 120,907 State Construction Account 0902 $ $... 5,001 53,452 $ $ $ Road Fund 0011 9 - 239 138 31 973 1,381 417 45 1,001 30 843 2,336 General Fund 0001 The accompanying notes to the financial statements are an integral part of this statement FUND BALANCES Reserved for: Encumbrances Inventories Long-term portion of: Loans and notes receivable Designated for reappropriated accounts in special revenue funds Unreserved, undesignated: General fund Special . STATE OF ILLINOIS DEPARTMENT OF TRANSPORTATION FINANCIAL AUDIT For the Year Ended June 30, 2009 Performed as Special Assistant Auditors for the Auditor General, State of Illinois. STATE OF ILLINOIS DEPARTMENT OF TRANSPORTATION FINANCIAL STATEMENT REPORT SUMMARY The audit of the accompanying basic financial statements of the State of Illinois, Department of. version www.adultpdf.com STATE OF ILLINOIS DEPARTMENT OF TRANSPORTATION FINANCIAL AUDIT For the Year Ended June 30, 2009 TABLE OF CONTENTS Page AGENCY OFFICIALS 1 FINANCIAL STATEMENT