REPORT DIGEST

ILLINOIS STATE UNIVERSITY FOUNDATION

FINANCIAL AUDIT

For the Year Ended:
June 30, 2000
And

COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 2000

Summary of Findings:

Total this audit 2
Total last audit 3
Repeated from last audit 1

Release Date:
March 29, 2001

 

 

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 Foundation and University Athletic Department did not properly control prenumbered raffle tickets in conjunction with the Driveaway Car Raffles. The events brought in $39,586 and $54,885 of revenue in fiscal years 2000 and 1999, respectively.
  • An internal control deficiency existed over the disbursement function at the Foundation. One employee had access to blank checks and the signature stamp, and also reconciled the bank statements. Proper internal controls would separate the recording, authorizing, and custody of assets.

 

 

 

 

 

 

 

 

 

 

 

 

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

ILLINOIS STATE UNIVERSITY FOUNDATION
FINANCIAL AUDIT
For the Period Ended June 30, 2000
COMPLIANCE AUDIT
For The Two Years Ended June 30, 2000
FINANCIAL OPERATIONS (ALL FUNDS)

FY 2000

FY 1999
REVENUE
Gifts, grants, and awards
Investment income
Gain (loss) on investments
Net increase in fair value of investments
Nongift income
Mennonite transfer
Property and equipment additions
Other revenue

Total revenue

EXPENDITURES
Awards, scholarships, and grants
Athletic support
College and academic departmental support
Foundation and development
Other operating expenditures
Property and Equipment expenditures and deductions

Total expenditures

NET CHANGE IN FUND BALANCE
$ 7,718,691
1,060,473
382,418
410,830
1,150,655
969,806
1,863,466
316,968

$13,873,307


$ 768,906
2,484,793

1,601,722
791,938
1,623,758

1,868,632

$9,139,749

$4,733,558


$ 6,708,497
877,625
25,858
2,207,923
1,331,054
-
-
264,462

$11,415,419


$ 582,307
1,157,417

1,483,317
762,112
913,226

6,615

$4,904,994

$6,510,425
SELECTED ACCOUNT BALANCES (ALL FUNDS)

AT JUNE 30, 2000

AT JUNE 30, 1999
Cash and Investments
Fund Balances:

Unrestricted
Restricted
Endowment and Quasi-Endowment
Investment in Plant


$40,403,618

$1,371,809
11,595,146

26,176,542
2,403,032


$36,587,740

$1,759,696
11,209,796

23,298,747
423,406
SELECTED ACTIVITY MEASURES

FY 2000

FY 1999
Distributions to the University (Total)
Contributions to the Foundation (Total)
Contribution Ratio (cost per dollar raised)
Distribution Ratio (cost per dollar distributed)

$7,560,167
$7,718,691
0.121

0.124

$3,559,741
$6,708,497
0.136

0.256
FOUNDATION EXECUTIVE DIRECTOR
During Audit Period: Dr. Susan Kern
Currently: Dr. Susan Kern
 

 

 

 

 

 

 

The Foundation and University Athletic Department did not properly control prenumbered raffle tickets

 

 

 

 

 

 

 

 

 

 

 

 

An internal control deficiency existed over the disbursement function at the Foundation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

Our report covers the financial audit of the Illinois State University Foundation for the fiscal year ended June 30, 2000 and a compliance audit for the two years ended June 30, 2000.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

CONTROLS OVER PRENUMBERED RAFFLE TICKETS

The Foundation and University Athletic Department did not properly control prenumbered raffle tickets in conjunction with the Driveaway Car Raffles held in 2000 and 1999. Neither the Foundation nor the Athletic Department performed a reconciliation of tickets sold to money collected. Additionally, individuals selling the tickets were not required to turn in any unsold tickets. The events brought in $39,586 and $54,885 of revenue in fiscal years 2000 and 1999, respectively. Failure to adequately control raffle tickets and receipts does not promote accountability. (Finding Code 00-1, page 9) This finding was first reported in 1998.

We recommended the Foundation and Athletic Department staff track prenumbered tickets, collect unsold tickets, and reconcile tickets sold with money collected.

Foundation management stated they will work in conjunction with Athletics to include, in the transmittal letters which accompany raffle tickets, instructions to return any unsold tickets. Additionally, Foundation management will require checks for the raffle ticket purchases to be made payable to ISU Athletics.

INTERNAL CONTROL OVER DISBURSEMENTS

An internal control deficiency existed over the disbursement function at the Foundation. One employee had access to the blank checks and signature stamp, and also reconciled the bank statements. Proper internal controls would separate the recording, authorizing, and custody of assets. (Finding Code 00-2, page 10)

We recommended the Foundation maintain a system of good internal controls by separating the recordkeeping, authorization, and treasury functions of assets.

Foundation management attributed the control weaknesses to the Foundation’s small size, and indicate they have certain compensating controls in place.

Foundation responses were provided by Ms. Ronda Palmgren, financial coordinator.

AUDITORS' OPINION

Our auditors state the financial statements of the Illinois State University Foundation as of June 30, 2000 and for the year then ended, are fairly presented in all material respects.

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JHL:pp

SPECIAL ASSISTANT AUDITORS

Clifton Gunderson L.L.C. were our special assistant auditors for this engagement.