STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
FINANCIAL AUDIT AND
COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
Performed as Special Assistant Auditors
For the Auditor General, State of Illinois
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For the Two Years Ended June 30,2011
TABLE OF CONTENTS
Agency Officials .... ... ........ ..... ..... .. ................... .. .. .. .. ... .... .... ... ..... ...... .... ..... .. .... .. ................ .
~anagement Assertion Letter .. .... .................. .. .. .. ..... ... .... .. .... ... .. ........ ... ..... ........ .... ........ ... .
C?mpliance Report
pummary .. ........................ .. ... .................... ... .. ...... .... ..... .... ...... ................... .... ... ........... ... .
!A..ccountants ' Reports
I Independent Accountants' Report on State Compliance, on Internal Control
Over Compliance, and on Supplementary Information for State Compliance
Purposes .... .... ... ............ ........... ... ....... ........ ...... ........ .. ............... .... ............ .. ...... ..... .... .
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 .............................................. ..
Schedule of Findings
Current Findings- State Compliance .................................. .............. .. .. ................... .. ..
Prior Findings Not Repeated ............. ....... ........ .. ... ........ .... ........ .... .............................. ..
Financial Statement Report
Summary ........ ... .. .. ........................... ...... ... .. .. ...... .. ...... ... .. .......... ... ....... ........................... .
Independent Auditors' Report ............ .......... .. ...... ........... ... ................... ............. ... ........ .. .
Basic Financial Statements
June 30, 2011
Statement of Net Assets ........... .. ....... ..... ... .. .... .. .... ........... ..... .. ........ ... ... ......... ....... ... . .
Statement of Revenues, Expenses and Changes in Net Assets ....... .... .... ....... ....... .... .
Statement of Cash Flows .... ..... ................................................................................. .
June 30,2010
Statement of Net Assets ......... .................... ... .... .. ... .. .. .... .. ...... .......... ..... .... ... .... ......... .
Statement of Revenues, Expenses and Changes in Net Assets ......... ... ... ........ ......... ..
Statement of Cash Flows ................................................ ....... .. ............ .... .... ............. .
Notes to Financial Statements .. .... .... ........................ ................................................. ... .
Supplementary Information for State Compliance Purposes
Summary .. .. ... .. ............ ..... .... ... ..... .. ... .... .... ... .... ..... ........ ... .. ... ... .... ...... ..... ........................ .
Fiscal Schedules and Analysis
Introduction .................... ..... ..... .. .......... .. ....... ... ... .... .... ................. .... ..... ............. ....... .
Comparative Schedule ofRevenues .. .. .... .... .... ........ ...... .... ..... ..... .. ..... ... ...... ............. .
Explanation of Significant Variations in Expenses ... .. ... ....................... .... .............. ..
Explanation of Significant Variations in Revenues ........... .. .. ..................... ......... .. .. ..
Analysis of Accounts Receivable ......... ... .... ............... ..... .... ............. ........ .... ... .... ...... .
Page
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9
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13
14
15
17
18
19
20
21
22
23
28
29
30
31
32
34
Analysis of Operations
Agency Functions and Planning Program.................................................................. 35
Schedule of Grain Dealers and Grain Warehouses (Unaudited)....... .. ....... .......... ...... 36
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 20 II
AGENCY OFFICIALS
Board of Directors at June 30, 20 II
President- Thomas E. Jennings, Director of the Department of Agriculture*
Secretary- Karen McNaught, Designee of Attorney General
Treasurer- Ed Buckles, Designee of State Treasurer
Director- Keith A. Fanning, Designee of Department of Financial and Professional Regulation
Director- Laura A. Lanterman, Chief Fiscal Officer of the Department of Agriculture
The Illinois Department of Agriculture provided the personnel necessary to operate the Illinois
Grain Insurance Corporation.
Agency offices are located at:
State Fairgrounds
80I E. Sangamon Ave.
Springfield, IL 62702
*Robert F. Flider is currently the acting Director, as Thomas E. Jennings retired from the
position on October I8, 20 II.
Illinois
A~o!l .
.~.. -e--... t:Uiture
Office of the Director
Pat Quinn, Governor
Robert F. Flider, Acting Director
State Fairgrounds P.O. Box 19281 Springfield, IL 62794-9281 2171782-2172 TOO 217/524-6858 Fax 217/785-4505
STATE COMPLIANCE EXAMINATION
MANAGEMENT ASSERTION LETTER
March 8, 2012
Sikich LLP
3201 West White Oaks Drive, Suite 102
Springfield, IL 62704
Ladies and Gentlemen:
We are responsible for the identification of, and compliance with, all aspects of laws, regulations,
contracts, or grant agreements that could have a material effect on the operations of the State of
Illinois, Illinois Grain Insurance Corporation (Corporation), a component unit of the State of
Illinois. We are responsible for and we have established and maintained an effective system of,
internal controls over compliance requirements. We have performed an evaluation of the
Corporation's compliance with the following assertions during the two-year period ended June 30,
2011. Based on this evaluation, we assert that during the years ended June 30, 2011 and June 30,
2010, the Corporation has materially complied with the assertions below.
A. The Corporation has obligated, expended, received and used public funds of the State in
accordance with the purpose for which such funds have been appropriated or otherwise
authorized by law.
B. The Corporation has obligated, expended, received and used public funds of the State in
accordance with any limitations, restrictions, conditions or mandatory directions imposed by
law upon such obligation, expenditure, receipt or use.
C. The Corporation has complied, in all material respects, with applicable laws and regulations,
including the State uniform accounting system, in its financial and fiscal operations.
D. State revenues and receipts collected by the Corporation are in accordance with
applicable laws and regulations and the accounting and recordkeeping of such revenues
and receipts is fair, accurate and in accordance with law.
2
E. Money or negotiable securities or similar assets handled by the Corporation on behalf of
the State or held in trust by the Corporation have been properly and legally administered,
and the accOlmting and record.keeping relating thereto is proper, accurate and in
accordance with law.
Yours very truly,
Mr. Robert F. Flider
Acting President, Illinois Grain Insurance Corporation
Ms. Shari West, General Counsel
Illinois Department of Agriculture
3
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
COMPLIANCE REPORT
SUMMARY
The compliance testing performed during this examination was conducted in accordance with
Government Auditing Standards and in accordance with the Illinois State Auditing Act.
ACCOUNTANTS' REPORTS
The Independent Accountants' Report on State Compliance, on Internal Control Over
Compliance and on Supplementary Information for State Compliance Purposes does not contain
scope limitations, disclaimers, or other significant non-standard language.
SUMMARY OF FINDINGS
Number of
Findings
Repeated findings
Current Report
2
1
Prior recommendations implemented or
not repeated
SCHEDULE OF FINDINGS
FINDINGS (STATE COMPLIANCE)
Item No. Page Description
11-1 11 Grain Insurance Reserve Fund not funded
11-2 12 Errors noted in assessment accounting system
4
Prior Report
2
1
Finding Type
Significant
Deficiency and
Noncompliance
Significant
Deficiency and
Noncompliance
PRIOR FfNDINGS NOT REPEATED
Item No. Page Description
A 13 Failure to file Agency Fee Imposition Report
EXIT CONFERENCE
The Corporation waived an exit conference in correspondence dated February 29,2012.
Responses to the recommendations were provided by Laura Lanterman in correspondence dated
February 29, 2012.
5
~Sikich.
Certi fied Public Accountants & Business Advisors
Members of American In stitute of
Certified Public Accountants
3201 West White Oaks Drive, Suite 102 • Springfi eld, IL 62704
INDEPENDENT ACCOUNTANTS' REPORT ON STATE COMPLIANCE,
ON INTERNAL CONTROL OVER COMPLIANCE, AND ON
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
Honorable William G. Holland
Auditor General
State of Illinois, and
Mr. Robert F. Flider
Acting President of the Board of Directors
Illinois Grain Insurance Corporation
Compliance
As Special Assistant Auditors for the Auditor General, we have examined the State of Illinois,
Illinois Grain Insurance Corporation's (a component unit of the State oflllinois)(Corporation)
compliance with the requirements listed below, as more fully described in the Audit Guide for
Financial Audits and Compliance Attestation Engagements of Illinois State Agencies (Audit
Guide) as adopted by the Auditor General, during the two years ended June 30, 2011. The
management of the Corporation is responsible for compliance with these requirements. Our
responsibility is to express an opinion on the Corporation's compliance based on our
examination.
A. The Corporation has obligated, expended, received, and used public funds of the State
in accordance with the purpose for which such funds have been appropriated or
otherwise authorized by law.
B. The Corporation has obligated, expended, received, and used public funds ofthe State
in accordance with any limitations, restrictions, conditions or mandatory directions
imposed by law upon such obligation, expenditure, receipt or use.
C. The Corporation has complied, in all material respects, with applicable laws and
regulations, including the State uniform accounting system, in its financial and fiscal
operations.
D. State revenues and receipts collected by the Corporation are in accordance with
applicable laws and regulations and the accounting and recordkeeping of such
revenues and receipts is fair, accurate and in accordance with law.
6
E. Money or negotiable securities or similar assets handled by the Corporation on behalf
of the State or held in trust by the Corporation have been properly and legally
administered and the accounting and recordkeeping relating thereto is proper,
accurate, and in accordance with Jaw.
We conducted our examination in accordance with attestation standards established by the
American Institute of Certified Public Accountants; the standards applicable to attestation
engagements contained in Government Auditing Standards issued by the Comptroller General of
the United States; the Illinois State Auditing Act (Act); and the Audit Guide as adopted by the
Auditor General pursuant to the Act; and, accordingly, included examining, on a test basis,
evidence about the Corporation 's compliance with those requirements listed in the first paragraph
of this report and performing such other procedures as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Corporation 's compliance with
specified requirements.
In our opinion, the Corporation complied, in all material respects, with the compliance
requirements listed in the first paragraph of this report during the two years ended June 30, 2011.
However, the results of our procedures disclosed instances of noncompliance, which are required
to be reported in accordance with criteria established by the Audit Guide, issued by the Illinois
Office of the Auditor General and which are described in the accompanying schedule offindings
as findings 11-1 and 11-2.
Internal Control
Management of the Corporation is responsible for establishing and maintaining effective internal
control over compliance with the requirements listed in the first paragraph of this report. In
planning and performing our examination, we considered the Corporation's internal control over
compliance with the requirements listed in the first paragraph of this report as a basis for
designing our examination procedures for the purpose of expressing our opinion on compliance
and to test and report on internal control over compliance in accordance with the Audit Guide,
issued by the Illinois Office of the Auditor General , but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not express
an opinion on the effectiveness of the Corporation's internal control over compliance.
A deficiency in an entity 's internal control over compliance exists when the design or operation
of a control over compliance does not allow management or employees, in the normal course of
performing their assigned functions, to prevent, or detect and correct, noncompliance with the
requirements listed in the first paragraph of this report on a timely basis. A material weakness
over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a
requirement listed in the first paragraph of this report will not be prevented, or detected and
corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be deficiencies, significant deficiencies, or material
7
weaknesses. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses, as defined above. However, we identified certain
deficiencies in internal control over compliance that we considered to be significant deficiencies
as described in the accompanying schedule of findings as finding 11-1 and 11-2. A significant
deficiency in an entity's internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
As required by the Audit Guide, immaterial findings excluded from this report have been
reported in a separate letter to your office.
The Corporation's responses to the findings identified in our examination are described in the
accompanying schedule of findings . We did not examine the Corporation 's responses and,
accordingly, we express no opinion on the responses.
Supplementary Information for State Compliance Purposes
As Special Assistant Auditors for the Auditor General, we have audited the financial statements
of the Corporation as of and for the years ended June 30, 2011 and June 30, 2010 and have issued
our report thereon dated March 8, 2012. The accompanying supplementary information, as listed
in the table of contents as Supplementary Information for State Compliance Purposes, is
presented for purposes of additional analysis and is not a required part of the basic financial
statements of the Corporation. The 2011 and 201 0 Supplementary Information for State
Compliance Purposes, except for that portion marked "unaudited" on which we express no
opinion, has been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in relation to the basic
financial statements for the years ended June 30, 2011 and June 30, 2010, taken as a whole.
The Corporation's financial statements for the year ended June 30, 2009, which are not presented
with the accompanying financial statements, were audited by other auditors whose report thereon
dated March 30, 2010, expressed an unqualified opinion on the basic financial statements of the
Corporation. Their report on the 2009 Supplementary Information for State Compliance Purposes,
except for that portion marked "unaudited" on which they expressed no opinion, stated that, in their
opinion, such information was fairly stated in all material respects in relation to the basic financial
statements for the year ended June 30, 2009, 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, Corporation management, and the
Board of Directors and is not intended to be and should not be used by anyone other than these
specified parties.
Springfield, Illinois
March 8, 2012
8
~Sikich.
Certified Public Accountants & Business Advisors
Members of American Institute of
Certified Public Accountants
3201 West White Oaks Drive, Suite 102 • Springfield, IL 62704
INDEPENDENT AUDITORS' 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
Honorable William G. Holland
Auditor General
State of Illinois, and
Mr. Robert F. Flider
Acting President of the Board of Directors
Illinois Grain Insurance Corporation
As Special Assistant Auditors for the Auditor General, we have audited the financial statements of
the State oflllinois, Illinois Grain Insurance Corporation (a component unit ofthe State of Illinois)
(Corporation), as of and for the years ended June 30, 2011 and June 30, 2010 and have issued our
report thereon dated March 8, 2012. 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.
Internal Control Over Financial Reporting
Management of the Corporation is responsible for establishing and maintaining effective internal
control over financial reporting. In planning and performing our audit, we considered the
Corporation's internal control over financial reporting as a basis for designing our auditing
procedures for the purpose of expressing our opinion on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the Corporation's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Corporation's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis.
A material weakness is a deficiency, or combination of deficiencies, in internal control, such that
there is a reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described
in the first paragraph of this section and was not designed to identify all deficiencies in internal
9
control over financial reporting that might be deficiencies, significant deficiencies or material
weaknesses. We did not identify any deficiencies in internal control over financial reporting that
we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Corporation's financial statements are
free of material misstatement, we performed tests of its compliance with ce1tain provisions of Jaws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly, we
do not express such an opinion. The results of our tests disclosed no instances of noncompliance or
other matters that are required to be reported under Government Auditing Standards.
This repmt is intended solely for the information and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, Corporation management, and the
Board of Directors and is not intended to be and should not be used by anyone other than these
specified parties.
Springfield, Illinois
March 8, 2012
10
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
SCHEDULE OF FINDINGS (STATE COMPLIANCE)
For the Years Ended June 30, 2011
11-1 FINDING: (Grain Insurance Reserve Fund not funded)
The Illinois Grain Insurance Corporation (Corporation) did not fund the $2,000,000
Grain Insurance Reserve Fund as required by the Grain Code.
On April 5, 2005 the Corporation remitted the $4,000,000 balance due to the General
Revenue Fund that was borrowed prior to June 30,2003. As of the end of our
examination fieldwork, the Corporation had not established the $2,000,000 Grain
Insurance Reserve Fund required by the Grain Code.
The Grain Code (240 ILCS 40/30-25) states, "Upon payment in full of all money that
has been transferred to the (Grain Insurance) Fund prior to June 30, 2003 from the
General Revenue Fund ... the State of Illinois shall remit $2,000,000 to the
Corporation to be held in a separate and discrete account to be used to the extent the
assets in the (Grain Insurance) Fund are insufficient to satisfy claimants as payment
of their claims become due ... " "The remittance of the $2,000,000 reserve shall be
made to the (Illinois Grain) Corporation within 60 days of payment in full of all the
money transferred to the (Grain Insurance) Fund as set forth above in this Section 30-
25."
The Corporation's management indicated the Grain Insurance Reserve Fund was not
funded because the funds were not appropriated. Management also indicated they did
not request an appropriation in fiscal years 20 I 0 and 20 II because of budgetary
constraints on the General Revenue Fund.
Failure to establish the Grain Insurance Reserve Fund decreases the insurance reserves
the legislature mandated by State law to further insure grain farmers from the potential
losses of failed grain warehouses and dealers. (Finding Code No. 11-1, 09-1, 07-2,
05-2)
RECOMMENDATION:
We recommend the Corporation comply with the law by working with the Office of
Management and Budget to obtain the necessary appropriation to fund the Grain
Insurance Reserve Fund or seek legislative relief from the statutory requirement.
CORPORATION RESPONSE:
The Corporation agrees with the finding and will request the appropriation in future
budget years.
11-2 FINDING: (Errors noted in assessment accounting system)
The Illinois Grain Insurance Corporation's (Corporation) accounting system had
several errors relating to assessment receivables that required adjustments.
The Corporation maintains a database driven accounting system which consists of a
general ledger and subsidiary ledger that tracks billings and receivables. When
testing receivables, we noted the subsidiary receivable ledger had 28 accounts netting
a balance of $1 ,525, even though the trial balance indicated a balance of zero.
Account errors ranged from a few cents to over $2,000.
Good internal control procedures dictate that subsidiary accounts receivable records
reconcile to the trial balance. Without a reconciliation, errors may go undetected.
Corporation management stated that staff was unaware of the need to adjust the
subsidiary receivable as well as the trial balance.
Although errors noted were not material, failure to identify and correct discrepancies
can cause material misstatements. (Finding Code No. 11 -2)
RECOMMENDATION:
We recommend the Corporation provide necessary training and develop procedures to
facilitate proper posting and reconciliation of its accounting system.
CORPORATION RESPONSE:
The Corporation agrees with the finding and will review both the system and its
procedures for correcting errors in the receivables.
12
PRIOR FINDINGS NOT REPEATED (STATE COMPLIANCE)
A. FINDING: (Failure to File Agency Fee Imposition Report)
During the prior engagement period, the Corporation had not filed the annual Agency Fee
Imposition Report (Report) with the Office of the Comptroller as required by the State
Comptroller Act.
During the current period, the Corporation was unable to obtain an agency code from the
Comptroller in time to utilize the online system for filing the Report for fiscal year 2010,
but filed the fiscal year 2011 Report with the Comptroller in a timely manner. (Finding
Code No. 09-2)
13
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For the Two Years Ended June 30,2011
FINANCIAL STATEMENT REPORT
SUMMARY
The audit of the accompanying financial statements of the State of Illinois, Illinois Grain
Insurance Corporation (a component unit ofthe State of Illinois) (Corporation) was performed by
Sikich LLP.
Based on their audit, the auditors expressed an unqualified opinion on the Corporation's basic
financial statements.
14
Certified Public Accountants & Business Advisors
~Sikich.
3201 West White Oaks Dri ve, Suite 102 • Sprin gfield, I L 62 704
INDEPENDENT AUDITORS' REPORT
Honorable William G. Holland
Auditor General
State oflllinois, and
Mr. Robert F. Flider
Acting President of the Board of Directors
Illinois Grain Insurance Corporation
Members of American Institute of
Certified Public Accountants
As Special Assistant Auditors for the Auditor General, we have audited the accompanying financial
statements of the State of Illinois, Illinois Grain Insurance Corporation (a component unit of the
State ofillinois) (Corporation), as of and for the years ended June 30,2011 and June 30, 2010, as
listed in the table of contents. These financial statements are the responsibility ofthe Corporation's
management. Our responsibility is to express an opinion on these financial statements based on our
audits.
We conducted our audits 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 audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position ofthe Corporation as of June 30, 2011 and June 30,2010, and the changes in its
financial position and its cash flows for the years then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated March 8,
2012 on our consideration ofthe Corporation'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 audits.
15
The Corporation has not presented a management's discussion and analysis that the 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.
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, the Board of
Directors, and Corporation management, and is not intended to be and should not be used by
anyone other than these specified pm1ies.
Springfield, Illinois
March 8, 2012
16
State of Illinois
Illinois Grain Insurance Corporation
(A Component Unit of the State of Illinois)
STATEMENT OF NET ASSETS
JUNE 30, 2011
(Expressed in Thousands)
Assets:
Cash and Cash Equivalents
Other Receivables
Due from Primary Government
Total Assets
Net Assets:
Restricted for Environmental
and Business Regulation
Total Net Assets
$
$
$
$
The accompanying notes to the financial statements are an integral part of this statement.
17
6,961
4
49
7,014
7,014
7,014
State of Illinois
Illinois Grain Insurance Corporation
(A Component Unit of the State of Illinois)
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2011
(Expressed in Thousands)
Operating Revenues
Charges for Services
Total Operating Revenues
Operating Expenses
Environmental and Business Regulation
Operating Income
Nonoperating Revenues
On Behalf Contribution
Recovery on Claims Paid
Interest and Investment Income
Total Nonoperating Revenues
Change in Net Assets
Net Assets July 1, 2010
Net Assets June 30, 2011
The accompanying notes to the financial statements are an integral part of this statement.
18
$ 223
223
13
210
13
11
8
32
242
6,772
$ 7,014
State of Illinois
Illinois Grain Insurance Corporation
(A Component Unit of the State of Illinois)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2011
(Expressed in Thousands}
Cash flows from operating activities:
Cash received for fees and other
Net cash provided by operating activities
Cash flows from investing activities:
Interest and dividends on investments
Net cash provided by investing activities
Cash flows from other non capital financing activities:
Recovery on claims paid
Net cash provided by other non capital financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Reconciliation of operating income to net cash provided by operating activities:
Operating income
Adjustments to reconcile operating income to net cash provided by
operating activities:
On behalf expenses
Changes in assets and liabilties:
Other receivables
Net cash provided by operating activities
The accompanying notes to the financial statements are an integral part of this statement.
19
$ 226
226
8
8
11
11
245
6,716
$ 6,961
$ 210
13
3
$ 226
State of Illinois
Illinois Grain Insurance Corporation
(A Component Unit of the State of Illinois)
STATEMENT OF NET ASSETS
JUNE 30, 2010
(Expressed in Thousands)
Assets
Cash and Cash Equivalents
Other Receivables
Due from Primary Government
Total Assets
Net Assets
Restricted for Environmental
and Business Regulation
$
$
$
The accompanying notes to the financial statements are an integral part of this statement.
20
6,716
7
49
6,772
6,772
State of Illinois
Illinois Grain Insurance Corporation
(A Component Unit of the State of Illinois)
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2010
(Expressed in Thousands)
Operating Revenues
Charges for Services
Less Charges Written Off
Total Operating Revenues
Operating Expenses
Environmental and Business Regulation
Operating Income
Nonoperating Revenues
On Behalf Contribution
Recovery on Claims Paid
Interest and Investment Income
Total Nonoperating Revenues
Change in Net Assets
Net Assets July 1, 2009
Net Assets June 30, 2010
The accompanying notes to the financial statements are an integral part of this statement.
21
$ 266
(44)
222
16
206
16
284
8
308
514
6,258
$ 6,772
State of Illinois
Illinois Grain Insurance Corporation
(A Component Unit of the State of Illinois)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2010
(Expressed in Thousands)
Cash flows from operating activities:
Cash received for fees and other
Transfer to Grain Indemnity for Grain Asset Preservation
Net cash provided by operating activities
Cash flows from investing activities:
Interest and dividends on investments
Net cash provided by investing activities
Cash flows from other non capital financing activities:
Recovery on claims paid
Net cash provided by other non capital financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Reconciliation of operating income to net cash provided by operating activities:
Operating income
Adjustments to reconcile operating income to net cash provided by
operating activities:
On Behalf expenses
Changes in assets and liabilties:
Other receivables
Due from Primary Government
Net cash provided by operating activities
The accompanying notes to the financial statements are an integral part of this statement.
22
$
$
$
$
11183
(23)
11160
8
8
284
284
1.452
51264
6.716
206
16
961
(23)
11160
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
1. Organization
Notes to the Financial Statements
June30,2011 and2010
The Illinois Grain Insurance Corporation (Corporation) was established by the Illinois
Grain Code (Grain Code) (240 ILCS 4011 et seq .) as a political subdivision, body politic
and municipal corporation. The primary functions of the Corporation are specified in the
Grain Code.
2. Summary of Significant Accounting Policies
The accounting policies ofthe Corporation conform to accounting principles generally
accepted in the United States of America (GAAP) as prescribed by the Governmental
Accounting Standards Board (GASB). The following is a summary of the significant
accounting policies:
a. The Reporting Entity
The Illinois Grain Insurance Corporation is a discretely presented component unit
of the State of Illinois financial reporting entity. The Governmental Accounting
Standards Board (GASB) has adopted Statement No. 14, as amended entitled
"The Financial Reporting Entity", (GASB Statement 14) which establishes
standards for defining and reporting on the financial reporting entity. The
requirements of the statement apply at all levels to all state and local governments.
Using the guidance provided in GASB Statement 14 regarding a) the definition of
the component unit and b) financial accountability, there are no other state
agencies, boards or commissions which were required to be included in the
financial reporting entity ofthe Illinois Grain Insurance Corporation.
b. Basis of Presentation
The accompanying financial statements of the Illinois Grain Insurance
Corporation have been prepared in conformity with accounting principles
generally accepted in the United States of America as prescribed in
pronouncements of the Governmental Accounting Standards Board ("GASB ").
The financial activities of the Corporation are reported as a discretely presented
component unit in the State of Illinois' Comprehensive Annual Financial report.
23
The statement of net assets, statement of revenues, expenses and changes in net
assets, and statement of cash flows report the overall financial activity of the
Corporation. The financial activities of the Corporation consist only of businesstype
activities, which are primarily supported by charges for services and
operating contributions.
The financial activities ofthe Corporation are recorded in one individual fund, the
Illinois Grain Insurance Fund. The Illinois Grain Insurance Fund is a nonappropriated
fund and is held locally. A fund is a separate accounting entity
segregated for the purpose of carrying on specific activities or attaining certain
objectives in accordance with specific regulations, restrictions, or limitations. The
Corporation's financial activities reported in the accompanying financial
statements have been classified as a proprietary fund (enterprise).
An enterprise fund accounts for resources obtained from fees charged to external
users for goods or services.
c. Basis of Accounting and Measurement Focus
The Corporation's financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded
when earned and expenses are recorded at the time liabilities are incurred,
regardless of when the related cash flow takes place.
Private-sector standards of accounting and financial reporting issued prior to
December I, 1989, generally are followed in the proprietary fund financial
statements to the extent that those standards do not conflict with or contradict
guidance of the Governmental Accounting Standards Board. The Corporation also
has the option of following subsequent private-sector guidance for their enterprise
fund, subject to this same limitation. The Corporation has elected not to follow
subsequent private-sector guidance.
d. Cash Equivalents
Cash equivalents are defined as short-term, highly liquid investments readily
convertible to cash with original maturities of three months or Jess. The
Corporation's cash equivalents consist of deposits to the Illinois Funds Money
Market Fund and are stated at cost. For the purpose of the statements of cash
flows, all highly liquid investments with a maturity of three months or less when
purchased are considered cash equivalents.
e. Net Assets
The statement of net assets reports $7,0 14 and $6,772 (expressed in thousands) of
restricted net assets for the years ending June 30, 2011 and June 30, 2010,
respectively. The entire balance is restricted by enabling legislation.
24
f. Classification of Revenues
The Corporation has classified its revenues as either operating or non-operating.
Operating revenues include the following:
Charges for Services
Assessment Fees- This revenue represents payment by grain dealers,
warehousemen, grain sellers and lenders for their assessment as calculated
and billed in accordance with the Illinois Grain Code.
Penalties- This revenue represents fines assessed for violations of open
position limits and grain quantity violations. Fines may also be given for
late payments of seller assessments.
Printer Fees- This revenue represents registration fees charged to approve
printers of Price Later Contracts and Warehouse Receipts.
Nonoperating revenues include interest income, recovery on claims paid, and on
behalf contribution from the Department of Agriculture for administrative
support.
g. On Behalf Revenues and Expenses
In accordance with Governmental Accounting Standards Board ("GASB")
Statement No. 24, Accounting and Financial Reporting for Certain Grants and
Other Financial Assistance, the Corporation reported a contribution of $13 and
$16 thousand made by the Department of Agriculture in fiscal year 2011 and
2010, respectively. The Department contribution is reported as nonoperating
revenue as on behalf contribution with an equal and offsetting amount reported
with environmental and business regulation expense.
3. Deposits
For funds maintained outside the State Treasury (locally held funds), agencies have
independent authority to manage their own cash. State law requires all fees assessed
pursuant to 240 ILCS 40/5-30 be held in the Illinois Grain Insurance Fund.
Investments
By statute, the Corporation is auth01ized to invest in any securities guaranteed by the full
faith and credit of the United States of America and other available bank investments
constituting direct obligations of any bank as defined by the Illinois Banking Act and
covered by federal depository insurance. In addition, the Corporation can invest in shortterm
obligations of certain corporations, short-term discount obligations of the Federal
25
National Mortgage Association and Illinois Funds. The Corporation's investments at June
30, 2011 and 2010 were with the Illinois Funds Money Market Fund held at U.S. Bank in
Springfield, Illinois.
The monies invested by the individual participants of the Illinois Funds Money Market
Fund are pooled together and invested in U.S . Treasury bills and notes backed by full
faith and credit of the U.S. Treasury. In addition, monies are invested in fully
collateralized time deposits in Illinois financial institutions, in collateralized repurchase
agreements, and in treasury mutual funds that invest in U.S. Treasury obligations and
collateralized repurchase agreements.
The time deposits are collateralized 105% over FDIC or FSLIC $250,000 insurance with
U.S. Treasury obligations and marked to market on a daily basis to maintain sufficiency.
The repurchase agreements are collateralized at 102% with U.S. Treasury obligations and
the collateral is checked daily to determine sufficiency.
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater
the sensitivity of its fair value to changes in market interest rates. The Corporation does
not have a formal policy that addresses this type of investment risk.
The Illinois Funds Money Market Fund is an external investment pool managed by the
lllinois State Treasurer. The weighted average maturity for Illinois Funds is 38 days. The
Illinois Funds is not registered with the SEC as an investment company, but does operate
in a manner consistent with Rule 2a7 of the Investment Company Act of 1940.
Investments in the Illinois Funds are valued at the Illinois Fund Money Market's share
price, which is the price the investment could be sold for.
Credit Risk
Generally, credit risk is the risk that an issuer of a debt investment will not fulfill its
obligations to the holder of the investment. This is measured by the assignment of a rating
by a nationally recognized statistical rating organization. The Corporation does not have a
formal policy on limiting credit risk. However, the Corporation's investments are held in
the State Investment Pool. As ofyear-end, the State Investment Pool (Illinois Funds) had
a rating of AAAm from Standard and Poor's.
Concentration of Credit Risk and Custodial Credit Risk
Concentration risk is the risk of loss attributed to the concentration of an entity's
investment in a single issuer. Custodial credit risk is the risk that, in the event of the
failure of a depository financial institution, the Corporation will not be able to recover its
deposits or will not be able to recover collateral securities that are in the possession of an
outside party. The Corporation's investments at June 30, 2011 and 2010 are not subject to
concentration of credit risk or custodial credit risk.
26
4. Intergovernmental Activity
Balances Due From Primary Government
Due from primary government represents amounts due from the Illinois Department of
Agriculture's Grain Indemnity Trust Fund (Trust Fund). The Illinois Grain Code
established the Grain Asset Preservation Account, an account within the Trust Fund, to be
funded up to $50 thousand via transfers of interest accrued within the Illinois Grain
Insurance Fund. Such amounts have been deemed a receivable from the Trust Fund.
5. Collateral
The Illinois Grain Code (240 ILCS 4011) requires licensees maintain certain operating
ratios in order to maintain or renew their licenses as grain dealers and/or warehousemen.
From time to time, licensees may not be able to maintain the required ratios. The Grain
Code requires the Illinois Department of Agriculture to require collateral from the
licensee specific to the deficiency. Should a failure occur, a licensee's collateral would
be used to offset any deficiencies before using Corporation funds to offset a deficiency.
Collateral may be posted using cash or cash equivalents, certificates of deposit,
irrevocable letter of credit, or any other property acceptable to the Department to the
extent there is equity in the property.
At June 30,2010 and 2011, the Department held $17,348 and $15,831 (amounts
expressed in thousands), respectively, of collateral posted by licensees.
27
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For the Two Years Ended June 30, 2011
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
SUMMARY
Supplementary Information for State Compliance Purposes presented in this section of the report
includes the following:
• Fiscal Schedules:
Introduction
Comparative Schedule of Revenues
Explanation of Significant Variations in Expenses
Explanation of Significant Variations in Revenues
Analysis of Accounts Receivable
• Analysis of Operations:
Agency Functions and Planning Program
Schedule of Grain Dealers and Grain Warehouses (Unaudited)
The accountants' report that covers the Supplementary Information for State Compliance
Purposes presented in the Compliance Report Section states that it has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in the auditors'
opinion, except for that portion marked "unaudited," on which they express no opinion, it is
fairly stated in all material respects in relation to the basic financial statements taken as a whole.
28
Introduction
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
The State of Illinois, Illinois Grain Insurance Corporation (a component unit of the State of
Illinois) (Corporation) was created on August 16, 1983 by the Illinois Grain Code (240 ILCS
40/1 ). The Corporation is located in the Department of Agriculture, 801 E. Sangamon Ave.,
State Fairgrounds, Springfield, Illinois 62702.
The Corporation was created for the purpose of improving the economic stability of agriculture
by establishing funds to pay grain producers and other claimants for losses incurred by the failure
of a grain dealer or warehouseman.
The Corporation receives no appropriations and remits no deposits to the State Comptroller. As
a result, no schedules of appropriations, schedules of cash receipts or reconciliation of cash
receipts to deposits remitted to the State Comptroller are presented in the supplementary
information.
29
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
Comparative Schedule of Revenues
Years Ended June 30, 20 II , 20 I 0, and 2009
Illinois Grain Insurance Fund- #1205
Increase/
(Decrease)
2011 2010 2009 2010to2011
Assessment Fees $ 218,889 $213,315 $ I ,561 ,682 $ 5,574
Penalties 1,000 6,382 4,250 (5 ,382)
Recovery of Claims* 11,209 284,265 (273 ,056)
Printer Fees 2,700 2,800 2,500 (I 00)
On Behalf Contribution 12,550 16,045 13,000 (3,495)
Interest Income 7,992 8,030 46,958 (38)
Total Revenue $ 254,340 $ 530,837 $ I ,628,390 $ (276,497)
* In fiscal year 2009, recovery of claims paid were netted against claims expenditures
due to their immateriality.
30
Increase/
(Decrease)
2009to2010
$ (I ,348,367)
2,132
284,265
300
3,045
(38,928)
$ (1 ,097,553)
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UN IT OF THE STATE OF ILLINOIS)
Explanation of Significant Variations in Expenses
For the Years ended June 30, 20 11 and 2010
(Expressed in Thousands)
Fiscal Year
20 11
Fiscal Year
2010
Increase
(Decrease)
Recovery of Claims Expenditure
Recovery Expenditure
$ - $ - $
Refunds
On Behalf Employee Expenses 13 16 (3)
Total Expenses $ 13 $ 16 $ (3)
Fiscal Year Fiscal Year Increase
2010 2009 (Decrease)
Recovery of Claims Expenditure $ - $ (2) $ 2
Recovery Expenditure 22 (22)
Refunds 2 (2)
On Behalf Employee Expenses 16 13 3
Total Expenses $ 16 $ 35 $ ( 19)
Recovery expenditures were for the life insurance premiums paid in fiscal year 2009 for an
individual. The policy was payable to the Corporation. The individual passed away and the policy
proceeds were coll ected, no longer requiring the month ly policy premiums to be paid. As such, no
recovery expenditures were required in 20 I 0.
Refunds are only made when erroneous overpayments are made by the Corporation, under
authorization of the Director. During fiscal years 20 I 0 and 2011, no overpayments were made that
required refund.
On behalf employee expenses are an estimate of management time and associated expense provided
by the Department of Agriculture. The expense varies based on staffing levels and annual sa laries.
31
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
Explanation of Significant Variations in Revenues
For the Years Ended June 30, 201I and 2010
(Expressed in Thousands)
Fiscal Year Fiscal Year
2011 2010
Dealer and Warehouse Assessments $ 219 $ I75
Grain Seller Assessment
Lender Assessment 38
Total Assessment Revenue $ 219 $ 213
Fiscal Year Fiscal Year
2010 2009
Dealer and Warehouse Assessments $ 175 $ 1,078
Grain Seller Assessment 272
Lender Assessment 38 212
Total Assessment Revenue $ 213 $ 1,562
Increase
(Decrease)
$ 44
(38)
$ 6
Increase
(Decrease)
$ (903)
(272)
(174)
$ (1 ,349)
Dealer and warehouse assessments are a function of requests for new licenses, and increases in
permanent, temporary and emergency storage increases. These vary based upon the business climate,
the size and storage needs of the industry. Revenues are subject to the industries' request for same.
All assessment revenue decreased from fiscal year 2009 to 20 I 0. Whenever the equity in the Illinois
Grain Insurance Fund (Fund) fal ls below $6 million, a subsequent assessment is triggered. There
was a subsequent assessment occurring in fiscal year 2009 as the Fund's equity fell below $6
million. No subsequent assessments were necessary in fiscal years 2010 and 20 II as the Fund's
equity exceeded $6 million.
32
Recovery of Claims
Recovery of Claims
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
Explanation of Significant Variations in Revenues
For the Years Ended June 30,2011 and 2010
(Expressed in Thousands)
Fiscal Year
2011
Fiscal Year
2010
$ 11 $ 284 $
$
Fiscal Year
2010
284 $
Fiscal Year
2009
$
Increase
(Decrease)
(273)
Increase
(Decrease)
284
The majority of the change in Recovery of Claims is attributed to the collection of a $250,000 life
insurance policy in fiscal year 201 0 to which the Corporation was beneficiary. The balance of the
difference can be attributed to collections the Corporation receives for restitutions that arrive
unsolicited from the court system.
Interest Income
Interest Income
Fiscal Year
2011
Fiscal Year
2010
$ 8 $ 8 $
$
Fiscal Year
2010
8 $
Fiscal Year
2009
47 $
Increase
(Decrease)
Increase
(Decrease)
(39)
The decrease in interest income from 2009 to 2010 is attributed to the large decrease in average
yield on the Corporation's money market account. The average yield during fiscal year 2009 was
1.055% as compared to 0.128% during fiscal year 2010.
33
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
Analysis of Accounts Receivable
For the Years Ended June 30, 2011 and 2010
(Expressed in Thousands)
June 30, 20 I I June 30, 20 10 June 30, 2009
Receivables $ 4 $ 7 $ 968
Due from Primary
Government 49 49 26
Totals $ 53 $ 56 $ 994
Estimated Collectible $ 53 $ 56 $ 994
Other receivables decreased from $968 thousand at June 30, 2009 to $7 thousand at
June 30, 2010. During Fiscal year 2009, the equity in the Illinois Grain Insurance
Fund (TGIF) fell below the required $6 million, thus requiring an assessment. This
resulted in a significant assessment due from grain dealers at June 30, 2009. Almost
all assessments were collected during fiscal year 2010 and the final equity reached the
required $6 mi llion, so no subsequent assessment was required during fiscal year
2010.
Due from primary government represents amounts due from the Illinois Department of
Agriculture's Grain Indemnity Trust Fund (Trust Fund). The Illinois Grain Code
established the Grain Asset Preservation Account, an account within the Trust Fund,
to be funded up to $50 thousand via transfers of interest accrued within the IGIF.
Such amounts have been deemed a receivable from the Trust Fund. During fiscal year
2009, Grain Asset Preservation Account funds were expanded to maintain a life
insurance policy on an individual , with the Corporation as beneficiary. The individual
passed away, no longer requiring insurance premiums, and the Corporation received
$250 thousand in life insurance proceeds. Interest continues to be transferred to the
Grain Asset Preservation Account to bring the balance to the required $50 thousand.
34
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
Agency Functions and Planning Program
For the Years Ended June 30,2011 and 2010
The State of Illinois, Illinois Grain Insurance Corporation (a component unit of the State of
Illinois) (Corporation) was created on August 16, 1983 by the Illinois Grain Code (240 ILCS
40/1 ). The Corporation was created for the purpose of improving the economic stability of
agriculture by establishing funds to pay grain producers and other claimants for losses incurred
by the failure of a grain dealer or warehouseman.
The Corporation is located in the State of Illinois, Illinois Department of Agriculture
(Department), State Fairgrounds, Springfield, Illinois. At June 30, 2011, the Corporation
operated under the direction of the following Board of Directors:
Board Member and President*
Thomas E. Jennings, Director of the Illinois Department of Agriculture
Board Member and Secretary
Karen McNaught, Designee of Attorney General
Board Member and Treasurer
Ed Buckles, Designee of State Treasurer
Board Member
Keith A. Fanning, Designee of Illinois Department of Financial and Professional Regulation
Board Member
Laura A. Lanterman, Chief Fiscal Officer, Illinois Department of Agriculture
The Board of Directors meets periodically to address the Corporation's operations.
Fiscal support to carry out the responsibilities of the Corporation is provided by the Department.
The primary functions of the Corporation are to make investments with funds assessed and
collected by the Department and to transfer funds to the Grain Indemnity Trust Fund when the
Director of the Department determines it necessary in order to compensate claimants in
accordance with the Illinois Grain Code. The assessments are collected from grain dealers,
warehousemen, grain sellers and lenders as established in the Illinois Grain Code (240 ILCS
40/5-30).
Operating programs of the Corporation are specified by the Illinois Grain Code (Grain Code).
These operating programs have been established adequately by the Corporation in order to meet
its defined goals and objectives.
*Robert F. Flider is currently the acting Director, as Thomas E. Jennings retired from the
position on October 18, 2011.
35
STATE OF ILLINOIS
ILLINOIS GRAIN INSURANCE CORPORATION
(A COMPONENT UNIT OF THE STATE OF ILLINOIS)
Schedule of Grain Dealers and Grain Warehouses
For the Years Ended June 30, 2011 and 2010
(Unaudited)
Fiscal Year 2011 Fiscal Year 2010
Active Dealers/ Warehouses - beginning of year 312 319
Add: New dealer/ warehouses 7 9
Less: Closed or insolvent dealers/ warehouses ( 16) (16)
Active Dealers/ Warehouses- end of year 303 312
36
