STATE OF ILLINOIS POWER AGENCY CURRENT FINDINGS STATE COMPLIANC_part4 docx

STATE OF ILLINOIS ILLINOIS pO~rER AGENCY Notes to Financial Statements June 30, 2010 Eliminations Eliminations have been made in the government-wide statement of net assets to minimize flae "grossing-up" effect on assets and liabilities within the governmental activities column of the Agency. As a result, amounts reported in flae govermaaental funds balmme sheet as interagency interfund receivables and payables have been eliminated in the government-wide statement of net assets. Amounts reported in the governmental funds balance sheet as receivable from or payable to fiduciary funds have been included in the government-wide statement of net assets as receivable from and payable to external parties, rather than as internal balances. Prepaid items Payments made to vendors for services that will benefit periods beyond the date of this report are recorded as prepaid items on the government-wide statement of net assets. Inte~fund Transactions The Agency has the following types of interfund transactions between Agency funds mad funds of other State agencies: Services provided and used sales and purchases of goods and services between fuuds for a price approximating their external exchange value. Interfmad services provided and used are. reported as revenues in seller funds and expenditures or expenses in purchaser funds, Unpaid amounts are reported as interfund receivables and payables in the governmental funds balance sheet or the government-wide and proprietary fund statements of net assets. Transfers flows of assets (such as cash or goods) withom equivalent flows of assets in return and without a requirement for repayment, tn govenmaental funds, transfers are reported as other financing uses in the funds making tzansfers and as other financing sources in the funds receiving transfers. (I 0 Fund Balances in the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are 1.egaIIy restricted by outside parties as to use for specific purposes. Designations of fund baImaces represent tentative State plans that are subject to change. Net Assets In ttae government-wide and proprietary fund statements of net assets, equity is displayed in three components as follows: Resttqcted- This consists of net assets that are legally restricted by outside parties or by law through constitutional provisions or enabling legislation. When both restricted and unrestricted resources are available for use, generally it is the State’s policy to use restricted resources first, then unrestricted resources when the5, are needed. 92 This is trial version www.adultpdf.com STATE OF ILLINOIS ILLINOIS POWER AGENCY Notes to Financial Statements June 30, 2010 Unrestricted - This consists of net assets that do not meet the definition of"restricted". (]) Use of Estimates The weparation of financial statements in conformity with GAAP requires mmlagement to make estimates and assumptions that affect the reported anaounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could difi"er from those estimates. (k) New Accounting Pronouncements Effective for the year ending June 30, 2010 the State adopted GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets, which established guidance for recognition and amo~Cdzation of intangible assets in the financial statements of governments. There was no significant impact on the Agency’s financial statements as a result of adopting this statement. Also effective for the year ending June 30, 2010 the State adopted GASB Statement No. 53, Accounting and Financial Reporting.[br Derivative Instruments, which established standards of accounting mad financial reporting for certai~a derivative instruments. There was no sigafificant impact on the Agency’s financial statements as a result of adopting this statement. (l) Future Adoption of GASB Statements Effective for the year ending June 30, 2011 the State will adopt GASB Statement No. 54, Fund ]3alance Reporting and Governmental Fund Type Dqfinitions, which estabIishes f~md batance classifications and clarifies the definitions of fund types. The Agency has not yet determined the impact on the Agency’s financial statements as a resuR of adopting this statement. (3) iDeposits and Investments (a) Deposits The State Treasurer is the custodian of the Agency’s deposits and investments for funds maintained in the State Treasury. The Agency independently manages deposits and investments maintained outside the State Treasury. Deposits i.n the custody of the State Treasurer are pooled and invested with other State funds in accordance with the D~?osit of State Moneys Act of the Illinoi.s Compiled Statutes (15 ILCS 520/11). Funds held by the State Treasurer have not been categorized as to credit risk because the Agency does not own individual securities. Detail on the nature of these deposits and investments is available within the State &Illinois’ Comprehensive Annual Finmacial Report. 93 This is trial version www.adultpdf.com This is trial version www.adultpdf.com STATE OF ILLINOIS ILLINOIS POWER AGENCY Notes to Financial Statements June 30, 2010 (4) lnterfund Balances and Activity (a) Balances Due fi’om/to Other Funds The following balances (amounts expressed in thousands) at June 30, 2010 represent amounts due from other Agency funds. Due from Other Agency Fund Funds Description/Purpose , , $ 1,044 Due from other Agency funds pursuant to statutory administrative cost reimbm’sements. Due from other Agency funds pm:suant to statutory allocation of investment i~come. General governmental funds $ 55O $ 1,594 The following balances (amounts expressed in thousands) a June 30, 2010 represent amounts due to other Agency and other State funds. Due to Other Other Agency State Fund Funds Funds Description/Purpose Nonmajor $ 1,594 $ 8 governmental funds Due to other Agency funds pursuant to statutory administrative cost reimbursements and allocation of investmenl income and oflaer State funds for internal service fund services received. $ 1,594 $ 8 95 This is trial version www.adultpdf.com STATE OF ILLINOIS ILLINOIS POWER AGENCY Notes to Financia! Statements 3un.e 30,2010 (b) Transfers from/to Other Funds Interfmad transfers in (amounts expressed in thousands) for the year ended June 30, 2010, were as folf.ows: Transfers in from Other Agency Fund Funds Description/Purpose $ 1,044 Oenemt ]’~o1~imaj or ~owrnme~tal funds 550 Transfer from Illinois Power Agency Trust Ftmd for statutory reimbursement of administrative costs. Transfer from illinois Power Agency Trtts~ Fund for statutory allocation of investmenl income. $ 1,594 interfund transfers o~t (amounts expressed in thousands) for the year ended June 30, 2010, were as follows: Transfers out to Other Agency Fund Funds Description/Purpose $ 1,044 General Nonmajor governmental funds 55O Transfer to General Revenue Fund for statutory reimbursement of administrative COSTS. Transfer to Illinois Power Agency Operations Fund for statutory allocation of investment income. $ 1,594 96 This is trial version www.adultpdf.com STATE OF ILLINOIS ILLINOIS PO~VER AGENCY Notes to Financial Statements June 30, 2010 (5) .Risk Management The Agency is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors an.d omissions; workers compensation and natural disasters. The State retains the risk of loss (i,e. self insured) for these risks, The Agency’s risk maaaagement activities me fina~ced through appropriations to the Illinois Department of Central Management Services and are accounted for in the general fund of the State. The claims are not considered t.o be a liability of the Agency; and accordingly, have not been reported in the Agency’s financial statements for the year ended June 30,2010. (6) Subsequent Event Subsequent to June 30, 2010 the State borrowed $24 mi.llion from the Ittmois Power Agency Trust Fund and $6.710 million from the Illinois Power Agency Renewable Energy Resources Fund to meet cash flow deficits and to maintain liquidit3~ in the General Revenue Fund and the Common School Fund pursuant to Public Act 96-0958 Section 5.15. Amounts are required to be repaid to the fund of origin within 1.8 months after the date on which they were borrowed. 97 This is trial version www.adultpdf.com State of Illinois llfinois Power Agency Combining Balance Sheet - Nonmajor Governmental Funds June 30, 20’I0 (Expressed in Thousands) ASSETS Cash equity in State Treasury Securities lending collateral equity of State Treasurer Other receivables, net Due from other Agency funds Total assets LIABILITIES Accounts payable and accrued liabilities Due to other Agency funds Due to other State funds Unavailable revenue Obligations under securities lending of State Treasurer Total liabilities FUND BALANCES Unreserved, undesignated Total fund balances Total liabilities and fund balances Speciat Revenue Illinois Power Illinois Illinois Agency Power Power Renewable Agency Agency Energy Trust Operations Resources 0424 0425 0836 Total $ 26,431 $ 1,426 $ - $ 27,857 9,515 9,5~5 20 2,277 6,712 9,009 550 550 $ 35,966 $ 4,253 $ 6;7’~2 $ 46,931 $ 2,4.2I $ - $ 2,421 t ,594 1,594 8 8 1,462 6,691 8,153 9,515 9,515 1t,109 3,891 6,691 21,691 24,857 362 2t 25,240 24,857 362 21 25,240 $ 35,966 $ 4,253 $ 6,712 $ 46,931 This is trial version www.adultpdf.com State of illinois illinois Power Agency Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds For the Year Ended June 30, 2010 (Expressed in Thousands) REVENUES License and fees Interest and other investment income Total revenues EXPENDITURES Employment and economic development Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER SOURCES (USES) OF FINANCIAL RESOURCES Transfers-in Transfers-out Net other sources (uses) of financial resources Net change in fund balances Fund balances, July 1, 2009 FUND BALANCES, JUNE 30, 2010 Special Revenue Illinois Power Illinois Illinois Agency Power Power Renewable Agency Agency Energy Trust Operations Resources 0424 0425 0836 Total $ 2,241 $ 21 $ 2,262 174 174 174 2,241 21 2,436 1,930 1,g30 1,930 1,930 174 311 21 506 550 550 (1,594) (1,594) (t ,594) 550 (1,044) r (1,420) 86I 21 (538) 26.277 (499) 25,778 24,857 $ 362 $ 21 $ 25,240 99 This is trial version www.adultpdf.com State of Illinois Illinois Power Agency Statement of Net Assets June 30, 2009 (Expressed in Thousands) ASSETS Unexpended appropriations Cash equity in State Treasury Securities lending collateral equity of State Treasurer Other receivables, net Total assets LIABILITIES Accounts payable and accrued liabilities Obligations under securities lending of State Treasurer Total liabilities NET ASSETS Restricted ’ Unrestricted net assets Total net assets Governmental Activities $ 1,036 26,260 3,733 1,674 32,703 1,535 3,733 5,268 25,0OO 2,435 $ 27,435 The accompanying notes to the financial statements are an integral part of this statement. lOO This is trial version www.adultpdf.com State of Illinois Illinois Power Agency Statement of Activities For the Year Ended June 30, 2009 (Expressed in Thousands) Net (Expense)- Functions/Programs Governmental activities Employment and economic development Total governmental activities Expenses $ 1,543 Program Revenues 1,543 Revenues and Changes in Net Assets Charges for Services Govel-nmental Activities $ 1,657 $ 114 1,657 114 General revenues Appropriations from State Resources Lapsed Appropriations Interest and investment income Total general revenues and transfers Change in net assets Net assets, July 1, 2008 Net assets, June 30, 2009 1,318 (274) 610 1,654 1,768 25,667 $ 27,435 The accompanying notes to the financial statements are an integral part of this statement. 101 This is trial version www.adultpdf.com [...]... the Statement of Net Assets are different because: Revenues in the Statement of Activities that do not provide current financial resources are deferred in the funds Net assets of governmental activities 1,657 27,435 The accompanying notes to the financial statements are an integral part of this statement This is trial version www.adultpdf.com 103 State of Illinois Illinois Power Agency Statement of. .. 31,667 $ The accompanying notes to the financial statements are an integral part of this statement This is trial version www.adultpdf.com ]02 Total Governmental Funds $ $ 1,036 26,260 3,733 1,674 32,703 1,535 1,657 3,733 6,925 25,778 25,778 $ 32,703 State of Illinois illinois Power Agency Reconciliation of Governmental Funds Balance Sheet to Statement of Net Assets June 30, 2009 (Expressed in Thousands).. .State of Illinois Illinois Power Agency Balance SheetGovernmental Funds June 30, 2009 (Expressed in Thousands) General Fund ASSETS Unexpended appropriations Cash equity in State Treasury Securities lending collateral equity of State Treasurer Other receivables, net Total assets LIABILITIES Accounts payable and accrued liabilities Unavailable revenue Obligations under securities lending of State. .. Excess (deficiency) of revenues over (under) expenditures (1,044) 111 (933) OTHER SOURCES (USES) OF FINANCIAL RESOURCES Appropriations from State Resources Lapsed appropriations Transfers-in Transfers-out Net other sources (uses) of financial resources 1,318 (274) 1,318 (274) 1,044 1,044 1!I Fund balances, Juty 1,2008 FUND BALANCES, JUNE 30, 2009 $ $ The accompanying notes to the financial statements are... (uses) of financial resources 1,318 (274) 1,318 (274) 1,044 1,044 1!I Fund balances, Juty 1,2008 FUND BALANCES, JUNE 30, 2009 $ $ The accompanying notes to the financial statements are an integral part of this statement This is trial version 104 www.adultpdf.com 111 25,667 Net change in fund balances 25,667 25,778 $ 25,778 . notes to the financial statements are an integral part of this statement. lOO This is trial version www.adultpdf.com State of Illinois Illinois Power Agency Statement of Activities For the Year. financial statements are an integral part of this statement. ]02 This is trial version www.adultpdf.com State of Illinois illinois Power Agency Reconciliation of Governmental Funds Balance Sheet to Statement. notes to the financial statements are an integral part of this statement. 103 This is trial version www.adultpdf.com State of Illinois Illinois Power Agency Statement of Revenues, Expenditures and