REPORT DIGEST IMSA FUND FOR THE ADVANCEMENT OF EDUCATION FINANCIAL AUDIT For the Year Ended: June 30, 2008 Summary of Findings: Total this audit 1 Total last audit 1 Repeated from last audit 0 Release Date: June 25, 2009 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 TTY (888) 261-2887 This Report Digest and Full Report are also available on the worldwide web at http://www.auditor.illinois.gov

SYNOPSIS · The IMSA Fund for Advancement of Education (Fund) did not have sufficient controls over the financial reporting process. {Expenditures and Activity Measures are summarized on the reverse page.}

IMSA FUND FOR ADVANCEMENT OF EDUCATION

FINANCIAL AUDIT

For the Year Ended June 30, 2008

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSET		FY 2008	FY 2007
REVENUES Operating Revenues: Contributions........................................................... Operating Agreement with Academy..................... Investment Income............................................... Other Operating Revenues.................................... Total Operating Revenues........................................... EXPENSES Operating Expenses Academy Support................................................... Management and General........................................ Fund Raising........................................................... Operating Agreement with Academy...................... Total Operating Expenses.............................................. Other Revenues and Expenses Changes in Net Assets.......................................................		$ 942,839 271,924 115,087 42,789 $ 1,372,639 $ 561,977 101,563 47,122 271,924 $ 982,586 6,229 $ 396,282	$ 1,148,553 208,807 115,305 9,258 $ 1,481,923 $ 607,198 56,423 85,402 208,807 $ 957,830 179,447 $ 703,540
STATEMENT OF NET ASSETS		FY 2008	FY 2007
Assets: Cash and Cash Equivalents..................................... Investments............................................................ Accounts Receivable.............................................. Prepaid Expenses................................................... Pledges Receivable................................................. Total Assets.................................................................. Liabilities: Accounts Payable........................................................ Total Liabilities............................................................. Net Assets.........................................................................		$ 763,356 3,149,798 138,157 5,423 186,118 $ 4,242,852 $ 43,400 $ 43,400 $ 4,199,452	$ 783,095 2,860,345 32,008 4,183 143,149 $ 3,822,780 $ 19,610 $ 19,610 $ 3,803,170
FUND AGENT
During Period: Suzyn Price Currently: Suzyn Price
Numerous adjustments to the financial statements	FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INSUFFICIENT CONTROLS OVER FINANCIAL REPORTING The IMSA Fund for Advancement of Education (Fund) did not have sufficient controls over the financial reporting process. During testing, numerous adjustments were required to be made. The adjustments were as follows: · The Fund included two items, totaling $25,792, in both accounts payable and due to IMSA. As a result, the Fund overstated both accounts payable and academy support expenses. · During FY08, the Fund made changes to reflect the estimated value of non-cash compensation provided by the Illinois Mathematics and Science Academy (Academy) to the Fund which were not previously recorded. As a result, the operating agreement with the Academy increased by $20,794. · The Fund received a deposit for one of the three endowment accounts during FY08. The receipt was deposited into the restricted account but recorded as a contribution to permanent endowment. As a result, the Fund understated restricted contributions by $1,000 and overstated contributions to permanent endowment by $1,000. · There were two instances in which the Fund’s financial statements did not match their audited trial balance: o Unrestricted net assets were overstated by $6,151 and restricted/endowment net assets were understated by $6,151. o Cash was overstated by $656 and investments were understated by $656. · As a result of the above adjustments, restricted net assets was understated by an additional $25,792. Failure to apply the applicable accounting principles generally accepted in the United States of America could result in misstatements in the financial statements. (Finding 1, page 25-26) We recommended internal controls over financial reporting be strengthened to ensure presentation of financial reports including financial report components are in accordance with generally accepted accounting principles. The Fund agreed with the finding and stated they have initiated enhanced internal controls over the course of the current fiscal year to address auditor findings. AUDITORS’ OPINION Our auditors stated the June 30, 2008 financial statements of the IMSA Fund for Advancement of Education are fairly presented in all material respects. __________________________________ WILLIAM G. HOLLAND, Auditor General WGH:AKS AUDITORS ASSIGNED This audit was performed by the Office of the Auditor General’s staff.