REPORT DIGEST

ILLINOIS MATH &
SCIENCE ACADEMY

FINANCIAL AND COMPLIANCE AUDIT
For the Year Ended:
June 30, 1998

Summary of Findings:

Total this audit 1

Total last audit 3

Repeated from last audit 0

Release Date:
March 18, 1999

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
Attn: Records Manager
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
http://www.state.il.us/auditor

SYNOPSIS

The Academy did not use competitive procurement procedures, as required under the Governor's Executive Order Number Two, for an insurance contract amounting to $31,031.

{Expenditures and Activity Measures are summarized on the reverse page.}

ILLINOIS MATHEMATICS AND SCIENCE ACADEMY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 1998

CURRENT FUND OPERATIONS (ALL FUNDS)	FY 1998	FY 1997
REVENUES State Appropriations Student Activity Fees Donations State Contracts Miscellaneous Investment Income Federal Government Other Illinois State Agency Grants Rental Income TOTAL REVENUES EXPENDITURES Personal Services Group Insurance Social Security and Medicare Contributions Contractual Services Travel Commodities Equipment Electronic Data Processing Telecommunication Services Operation of Automotive Equipment Awards and Grants TOTAL EXPENDITURES	$13,103,818 685,772 401,174 68,439 187,256 36,727 146,793 258,029 8,806 $14,896,814 $9,650,334 495 150,320 3,531,029 144,012 397,721 469,766 146,785 237,084 24,075 55,416 $14,807,037	$12,814,022 663,986 320,151 80,920 155,662 27,765 28,663 141,881 604 $14,233,654 $9,307,430 - 146,190 3,461,363 164,462 449,309 433,386 113,799 257,877 25,498 27,000 $14,386,314

SELECTED ACCOUNT BALANCES (ALL FUNDS)	JUNE 30, 1997	JUNE 30, 1996
Cash and Short-term Investments Receivables Accrued compensated absences Accrued Salaries and Benefits Account Payables Deferred Revenue Fund balances: Unrestricted Restricted Net Investment in Plant	$1,129,230 1,032,362 1,096,000 615,164 375,890 83,419 (165,278) 70,639 49,193,134	$963,769 1,374,521 1,001,000 755,755 486,899 61,156 (160,157) 114,769 48,803,907

SUPPLEMENTARY INFORMATION	FY 98	FY 97
Average Number of Employees Students Instructional Cost Per Student	217 632 $6,442	215 646 $6,572

ACADEMY PRESIDENT

During Audit Period: Stephanie P. Marshall, Ph.D.
Currently: Stephanie P. Marshall, Ph.D.

The Academy did not use competitive procurement procedures for a $31,031 contract for insurance services.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CONTRACT NOT COMPETIVELY PROCURED
: The Academy did not use competitive procurement procedures to obtain a one year contract for insurance services.
: On February 1, 1998, the Academy signed a one year contract amounting to $31,031 for employee disability insurance. The Governor's Executive Order Number Two, effective August 26, 1997 through February 6, 1998, required competitive procurement procedures for service contracts exceeding $25,000. Academy officials stated they did not seek a competitive procurement because they were not aware of the requirement. (Finding 98-1, page 11)
: We recommended the Academy use competitive procurement procedures when required. The Academy concurred with the recommendation.
: Academy officials stated the insurance policy was a continuation of coverage initiated in January 1989 with subsequent rate adjustments made as a result of changes in employee demographics and utilization history. The Academy has, however, established formal procedures and created a new job description within the business Office which specifically addresses responsibilities for reviewing contract renewals to insure formal bid procedures in the future.; AUDITORS' OPINION; Our auditors stated the Academy's financial statements as of June 30, 1998 were fairly presented except for the effects of such adjustments, if any, as might have been determined to be necessary had they been able to examine evidence regarding Year 2000 disclosures.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:JAW:ak
: SPECIAL ASSISTANT AUDITORS; Our special assistant auditors for this audit were Miller, Cooper & Co. Ltd.