REPORT DIGEST

GOVERNORS STATE UNIVERSITY FOUNDATION

 

FINANCIAL AUDIT

For the One Year Ended:

June 30, 2003

And

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                       1

Total last audit                       0

Repeated from last audit        0

 

Release Date:

February 24, 2004

 

 

 

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

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 TDD (217) 524-4646

 

This Report Digest is also available on

the worldwide web at

www.auditor.illinois.gov

 

 

 

 

 

 

SYNOPSIS

 

  • The Foundation did not have adequate controls over its cash receipting process.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GOVERNORS STATE UNIVERSITY FOUNDATION

FINANCIAL AUDIT

For the Year Ended June 30, 2003

 

COMPLIANCE AUDIT

For the Two Years Ended June 30, 2003

 

FINANCIAL OPERATIONS (ALL FUNDS)

FY 2003

FY 2002

REVENUES

          Operating revenues

 

EXPENSES

         Operating expenses

                  Operating loss

 

NONOPERATING REVENUES (EXPENSES)

         Contributions

         Investment income (loss)

                  Net nonoperating revenues

         Income (loss) before other revenues, expenses,

         gains and losses

 

         Total other revenues or (expenses)

         Increase (decrease) in net assets

 

NET ASSETS

         Net assets-beginning of year

         Net assets-end of year

$146,507

 

 

 

$303,449

($156,942)

 

 

$163,701

17,535

$181,236

 

$24,294

 

($7,035)

$17,259

 

 

$1,873,337

$1,890,596

$118,084

 

 

 

$289,517

($171,433)

 

 

$136,742

(88,159)

$48,583

 

($122,850)

 

$95,215

($27,635)

 

 

$1,900,972

$1,873,337

OTHER SIGNIFICANT ACCOUNT BALANCES

AT JUNE 30,

2003

AT JUNE 30,

2002

Cash and Investments

Capital assets

Accounts Receivable

         Total Assets

 

Total Liabilities

 

Net Assets

         Invested in capital assets

         Restricted Nonexpendable

         Restricted Expendable

         Unrestricted

         Total Net Assets

$ 945,847

1,117,851

3,274

$ 2,066,972

 

$176,376

 

 

$1,117,851

663,437

106,620

2,688

$1,890,596

$ 821,315

1,091,851

92,702

$ 2,005,868

 

$132,531

 

 

$1,091,851

670,471

114,871

(3,856)

$1,873,337

FOUNDATION EXECUTIVE DIRECTOR

During Audit Period: Brandon Senter

Currently: Vacant

 

 

 

 

Receipts were not deposited on a timely basis

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER CASH

Governors State University Foundation (Foundation) did not have adequate controls over its cash receipting process.

Our testing of cash receipts revealed that 16 of 25 receipts tested were not deposited timely. Two receipts, individually greater than $10,000, were deposited 3 to 4 business days after the date of the receipt. Eleven receipts between $500 and $10,000 were deposited 7 to 25 business days after receipt. Three receipts, individually less than $500 were deposited 13 to 25 business days after the date of receipt.

In addition, the Foundation had inadequate segregation of duties in the cash receipting process and did not reconcile the master listing of all receipts and the amounts deposited. The Foundation had not updated their authorized signatures on their money market and investment accounts. No unauthorized transactions resulted from this oversight.

We recommended that the Foundation review its policies and procedures relating to cash receipts. One aspect of this review should be to formalize the threshold and the timeframe for delivering cash receipts to the University’s cashier office for deposit into the bank. The Foundation should maintain a master list of all cash receipts received and reconcile the listing to the amount deposited into the bank. We also recommended that the Foundation should ensure that there is an adequate segregation of duties in the cash receipt process by separating the functions of receipt delivery with the recording of the receipts. We further recommended that the Foundation keep its authorized signatures current. (Finding 1, pages 10-11)

Foundation officials accepted the finding and stated that they will review their policies and procedures relating to cash receipts.

Foundation responses were provided by Mr. Tom Stepke, Controller.

 

AUDITORS’ OPINION

Our auditors stated the financial statements of Governors State University Foundation as of June 30, 2003 and for the year then ended are fairly presented in all material respects.

 

 

_______________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:TLK:pp

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors on this audit were DeRaimo Hillger & Ripp.