REPORT DIGEST

ILLINOIS CONSERVATION FOUNDATION

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2017

Release Date:  February 1, 2018

FINDINGS THIS AUDIT:  1

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  0 -- 0 -- 0
Category 3:  0 -- 0 -- 0
TOTAL:  0 -- 1 -- 1

FINDINGS LAST AUDIT: 1

Category 1: Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State laws
and regulations (material noncompliance).
Category 2: Findings that are significant
deficiencies in internal control and
noncompliance with State laws and
regulations.
Category 3: Findings that have no internal
control issues but are in noncompliance with
State laws and regulations.

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, AUDITOR GENERAL

To obtain a copy of the Report contact:
Office of the Auditor General, Iles Park
Plaza, 740 E. Ash Street, Springfield, IL
62703
(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are also
available on the worldwide web at
www.auditor.illinois.gov

SYNOPSIS

• (17-1) The Foundation’s financial reporting
process lacked sufficient internal controls.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FINANCIAL REPORTING PREPARATION

The Illinois Conservation Foundation
(Foundation) does not have sufficient
internal controls over the financial
reporting process.

Several errors were identified during the
audit of the Foundation’s financial
statements.  The Foundation’s financial
statements were adjusted for the following
reporting errors:

• The Foundation failed to make numerous
adjusting entries to present the financial
statements in accordance with Generally
Accepted Accounting Principles (GAAP).

• The Foundation recorded internal transfers
of securities as dividend and interest income
and investment fees expense in error.  The
result of this misstatement was an
overstatement of both revenues and expenses
by $42,000.  An audit adjustment was recorded
to correct the balances in the dividend and
interest income and investment fees expense
accounts.

• The Foundation failed to identify a capital
asset in the amount of $16,181.  The capital
asset was omitted from the depreciation
schedule provided to auditors resulting in an
understatement of both capital assets and
current year additions. (Finding 1, pages
11-12)  This finding has been repeated since
2011.

We recommended the Foundation implement
additional internal control procedures to
ensure financial statements are prepared in
accordance with GAAP.

Foundation management accepted our
recommendation.  (For the previous Foundation
response, see Digest Footnote #1.)

AUDITOR’S OPINION(S)

The auditors stated the financial statements
of the Foundation as of and for the year
ended June 30, 2017, are fairly stated in all
material respects.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Foundation for the year
ended June 30, 2017, as required by the
Illinois State Auditing Act.   The
accountants stated the Foundation complied,
in all material respects, with the
requirements described in the report.

This financial audit and compliance
examination was conducted by Kemper CPA
Group, LLP.

JANE CLARK
Division Director

This report is transmitted in accordance with
Section 3-14 of the Illinois State Auditing
Act.

FRANK J. MAUTINO
Auditor General

FJM:JMH

DIGEST FOOTNOTES

#1 - FINANCIAL STATEMENT PREPARATION

2016:  The Foundation agrees.