State audit finds flaws in tollway accounting

An Illinois auditor general's office report rapped the Illinois tollway on the knuckles for lax financial reporting and for failing to explain why some drivers received a break on violation fees.

Overall, the Illinois State Toll Highway Authority has properly used and accounted for the $658 million in revenues it received from tolls, fines and concessions in 2009, auditors concluded in a report issued Thursday.

But the audit criticized how the tollway handles its "hardship" cases - toll violators in financial trouble facing significant fines. Officials are allowed to settle those cases for less than the full amount owed but the board of directors must be notified if write-offs exceed $1,000.

The auditors reviewed 25 hardship cases and concluded the tollway didn't adequately document its reasons for offering leniency. They also noted that 18 out of the 25 cases involved write-offs of $1,000 or more but none went to the board.

Tollway officials agreed to provide better records of hardship cases and to formalize debt-forgiveness procedures.

Auditors also cited "insufficient controls over financial reporting." For example, the agency couldn't provide detailed accounts of overdue money owed by toll evaders, the report said. Also, there was a $2.6 million discrepancy in separate financial statements involving amounts owed for missed tolls, auditors concluded.

The agency noted it had produced a report on overdue toll evasion accounts this year.

Auditors also said the authority needed to ensure its vendors certify that all goods or merchandise meet required standards.

In general, the audit showed the tollway was in good financial health, spokeswoman Joelle McGinnis said.

"This annual external audit of the Illinois tollway's compliance with policies and regulations and financial reporting provides a clear picture of steady progress on behalf of the tollway," McGinnis said in an e-mail. "However, the tollway takes these reports and audits very seriously. We will remain diligent in our efforts to continually reduce audit findings and work with the auditor general."

In 2009 and 2010, the tollway's leadership has transformed with a new chairman, executive director and board directors.