TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER dd: DIRECTOR OF INSURANCE, HEARINGS AND REVIEW
PART 2405 INTERGOVERNMENTAL JOINT INSURANCE POOL ANNUAL AUDITED FINANCIAL STATEMENT

Section 2405.10 Purpose

Section 2405.20 Definitions

Section 2405.30 Registration

Section 2405.40 Financial Statements

TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER dd: DIRECTOR OF INSURANCE, HEARINGS AND REVIEW
PART 2405 INTERGOVERNMENTAL JOINT INSURANCE POOL ANNUAL AUDITED FINANCIAL STATEMENT
SECTION 2405.10 PURPOSE

 

Section 2405.10  Purpose

 

The purpose of this Part is to set forth standards for an annual audit and report required of joint insurance pools operating pursuant to the authority granted under Section 6 of the Intergovernmental Cooperation Act [5 ILCS 220/6].

TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER dd: DIRECTOR OF INSURANCE, HEARINGS AND REVIEW
PART 2405 INTERGOVERNMENTAL JOINT INSURANCE POOL ANNUAL AUDITED FINANCIAL STATEMENT
SECTION 2405.20 DEFINITIONS

 

Section 2405.20  Definitions

 

            Director means the Director of the Illinois Department of Insurance.

 

            Independent Certified Public Accountant means an independent certified public accountant or independent accounting firm in good standing with the American Institute of Certified Public Accountant's, which is registered to practice in Illinois.

 

            Net Worth means the difference between a Pool's assets and liabilities.

 

            Pool means the joint self-insurance pool created by intergovernmental contract pursuant to Section 6 of the Intergovernmental Cooperation Act [5 ILCS 220/6].

TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER dd: DIRECTOR OF INSURANCE, HEARINGS AND REVIEW
PART 2405 INTERGOVERNMENTAL JOINT INSURANCE POOL ANNUAL AUDITED FINANCIAL STATEMENT
SECTION 2405.30 REGISTRATION

 

Section 2405.30  Registration

 

a)         Each Pool operating prior to January 1, 1997 shall register with the Director within 60 days thereof.  In addition, each Pool shall annually register with the Director no later than March 1st of each year.

 

b)         Each registration shall include:

 

1)         Legal name of the Pool.

 

2)         Contact person and telephone number.

 

3)         Address of the administrative offices of the Pool.

 

4)         A list identifying the public agencies which are present or past participants in the Pool, denoting for each participant the fiscal year(s) of the Pool in which the public agency was provided coverage by the Pool.

TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER dd: DIRECTOR OF INSURANCE, HEARINGS AND REVIEW
PART 2405 INTERGOVERNMENTAL JOINT INSURANCE POOL ANNUAL AUDITED FINANCIAL STATEMENT
SECTION 2405.40 FINANCIAL STATEMENTS

 

Section 2405.40  Financial Statements

 

a)         Each Pool shall, no later than 150 days after the end of its immediately preceding fiscal year, file with the Director audited Financial Statements, prepared in accordance with generally accepted accounting principles for Public Entity Risk Pools, pursuant to Governmental Accounting Standards Board (GASB) (401 Merritt 7, P.O. Box 5116, Norwalk, CT 06856-5116) (Codification of Governmental Accounting and Financial Reporting Standards, as of June 30, 1996, no subsequent dates or editions); supplemented, where applicable, pursuant to standards promulgated by the Public Risk Management Association Advisory Standards for Public Entity Pools (PRIMA, 1996, no subsequent dates or editions), reporting the financial condition of the Pool as of the end of its immediately preceding fiscal year and changes in net worth for the year then ending.

 

b)         The annual audited Financial Statements shall include without implied limitation the following reported in sufficient detail and including appropriate notes to achieve fair presentation in accordance with generally accepted accounting principles:

 

1)         The report of the independent certified public accountant including:

 

A)        A certification that the Financial Statements were prepared in accordance with generally accepted auditing standards, AICPA Professional Standards, published for the American Institute of Certified Public Accountants by CCH, Inc., 4025 W. Peterson Avenue, Chicago, IL 60646, June 1996, no subsequent dates or editions.

 

B)        A certification that the independent audit upon which the Financial Statements are based was conducted in accordance with generally accepted accounting standards.

 

C)        An expression of the independent certified public accountant's opinion regarding the Financial Statements, taken as a whole, or an assertion to the effect that an opinion cannot be expressed.  When an overall opinion is not expressed, the reasons therefore should be stated.  In all cases where the independent certified public accountant's name is associated with the Financial Statements, the Report should contain a clear-cut indication of the character of the auditor's work, if any, and the degree of responsibility the auditor is taking.

 

2)         A balance sheet reporting assets, liabilities and net worth, which shall also include a comparative balance sheet as of the end of the second preceding fiscal year for any pool which has been in existence for more than one fiscal year.

 

3)         An income statement describing gain or loss from operations, which shall also include a comparative statement of gain or loss from operations as of the end of the second preceding fiscal year for any pool which has been in existence for more than one year.

 

4)         A statement of cash flows, which shall also include a comparative statement of cash flow as of the end of the second preceding fiscal year for any pool which has been in existence for more than one fiscal year.

 

5)         A statement of changes in net worth, which shall also include a comparative statement of changes in net worth as of the end of the second preceding fiscal year for any pool which has been in existence for more than one fiscal year.