REPORT DIGEST FINANCIAL
AUDIT For the One Year Ended: June 30, 2008
Summary of FindingsTotal last audit 1 Repeated from last audit 0 Release Date: January 8, 2009
State of
Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
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Report contact: Office of the Auditor
General
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SYNOPSIS ·
The Foundation did not properly prepare the
financial statements and did not have complete and accurate disclosures in accordance
with accounting principles generally accepted in the
(Expenditures and Activity
Measures are summarized on the reverse page.) |
FINANCIAL AUDIT
For
the Year Ended June 30, 2008
FINANCIAL OPERATIONS (ALL FUNDS) |
FY
2008 |
FY 2007 |
REVENUES (Operating and
Nonoperating)
Contributions...................................................................... Investment
Income (Loss)................................................... University
Support.............................................................. Permanent
Endowment Additions....................................... Other................................................................................. Total
Revenues............................................................. |
$ 390,530
(456,111) 110,567 265,144 67,220 $ 377,350 |
$ 297,352 525,923 91,296 110,553 9,714 $
1,034,838 |
EXPENSES
Scholarships
and Fellowships......................................... University
Support......................................................... Institutional
Support............................................................
Fundraising......................................................................... Grants and awards............................................................... Total Expenses.............................................................. Increase (Decrease) in Net Assets.......................................... |
$ 124,530 110,567 294,215 49,250 56,707 $ 635,269 ($ 257,919) |
$ 111,205 91,296 203,323 81,292 53,455 $
540,571 $
494,267 |
SELECTED ACCOUNT BALANCES (ALL FUNDS) |
AT
JUNE 30, 2008 |
AT JUNE
30, 2007 |
Short term investments............................................................ Receivables............................................................................ Endowments investments........................................................ Other Assets.......................................................................... Total Assets........................................................................... Accounts payable and accrued expenses................................. Deferred revenues.................................................................. Net Assets............................................................................. Total Liabilities and Net Assets............................................... |
$146,924 1,669,330 215,831
2,537,686 21,371 $ 4,591,142 $ 20,407 752,753 3,817,982 $4,591,142 |
$166,389 1,981,695 227 2,663,481 23,039 $ 4,834,831 $ 6,042 752,888 4,075,901 $4,834,831 |
FOUNDATION DIRECTORS |
||
During
Audit Period: Mr. Terry Bush (7/01/07-07/31/07), Ms. Sonia Arvanitis
(7/01/07-1/15/08), Dr. Carla Knowroski (1/16/08-6/30/08) Currently: Dr. Carla Knowroski |
Internal controls
over the preparation of financial statements needs improvement
|
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS FINANCIAL STATEMENT PREPARATION The
Foundation did not properly prepare the financial statements and did not have
complete and accurate disclosures in accordance with accounting principles
generally accepted in the We noted the following during our audit of the financial statements provided by Foundation personnel: · Unremitted proceeds from the sale of investments at yearend totaling $215,831 were presented as prepaid expenses in the Statement of Net Assets instead of receivables. · Unrealized loss on changes in market value of investments totaling $592,516 was presented in the Statement of Cash Flows as net investment income and accordingly affected the purchase of investment amount in the Cash Flows from Investing Activities. The unrealized loss should have been presented as a reconciling item in the Cash Flows from Operating Activities. · Disclosures in the notes to financial statements were not updated to reflect the changes in the Foundation’s new investment policy effective July 23, 2007. (Finding 1, Pages 24-26) We recommended that the Foundation review its current process for preparation and review of the annual financial statements and allocate the technical resources necessary to ensure a thorough review of the financial statements and disclosures. Foundation officials concurred with the recommendation.
AUDITORS' OPINION Our auditors state the June 30, 2008 financial statements of the Northeastern Illinois University Foundation are fairly presented in all material respects. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:TLK:pp SPECIAL ASSISTANT AUDITORS Our special assistant auditors for this audit were E.C. Ortiz & Co., LLP. |