REPORT DIGEST

 

THE ASSOCIATION OF ALUMNI, FORMER STUDENTS AND FRIENDS OF SOUTHERN ILLINOIS UNIVERSITY (CARBONDALE)

 

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2007

AND

FINANCIAL AUDIT

For the Year Ended:

June 30, 2007

 

Summary of Findings:

Total this audit                   1

Total last audit                   0

Repeated from last audit    0

 

Release Date:

March 6, 2008

 

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

782-6046 or TTY (888) 261-2887

 

This Report Digest and the Full Report are also available on

the worldwide web at

www.auditor.illinois.gov

http://www.state.il.us/auditor

 

 

 

 

 

 

 

SYNOPSIS

 

 

 

·        Carbondale Alumni Association (Association) did not have a fraud risk assessment program in place.

 

 

 

 

 

THE ASSOCIATION OF ALUMNI, FORMER STUDENTS AND FRIENDS OF SOUTHERN ILLINOIS UNIVERSITY (CARBONDALE)

COMPLIANCE EXAMINATION AND FINANCIAL AUDIT

For The Period Ended June 30, 2007

 

FINANCIAL OPERATIONS (All Funds)

FY 2007

FY 2006

REVENUES

      Operating Revenues.............................................

 

EXPENSES

      Operating Expenses.............................................

 

            Operating Revenue in excess of expenses.......

 

NON-OPERATING REVENUES

      Investment gain, dividends and interest..................

      Contributions.......................................................

 

            Net Non-operating Revenues.........................

 

            Increase in Net Assets....................................

 

NET ASSETS

      Net Assets-beginning of year

     

      Net Assets-end of year........................................

 

 

$2,002,998

 

 

1,837,120

 

$165,878

 

 

$787,214

9,742

 

$796,956

 

$962,834

 

 

3,522,105

 

$4,484,939

 

$1,969,982

 

 

1,723,804

 

$246,178

 

 

$368,450

14,682

 

$383,132

 

$629,310

 

 

2,892,795

 

$3,522,105

OTHER SIGNIFICANT ACCOUNT BALANCES

At June 30, 2007

At June 30, 2006

Cash and investments...................................................

Total assets         

Deferred Revenue........................................................

Total Liabilities   

Net Assets-Invested in capital assets............................

Net Assets-Unrestricted..............................................

Total Net Assets 

 

$6,528,982

$6,630,222

$2,033,628

$2,145,283

$4,511

$4,480,428

$4,484,939

$5,483,507

$5,571,891

$1,950,720

$2,049,786

$3,804

$3,518,301

$3,522,105

 

 

ALUMNI ASSOCIATION DIRECTOR

 

During Audit Period:  Mr. Edward Buerger (through December 31, 2007)

Currently:  Ms. Michelle Suarez, Interim Director (beginning October 22, 2007)

 

 

 

 

 

 

 

 

 

 

 

 

 

 


No fraud risk assessment program in place

 

 

 

 


The Association relies on external audits for identification of control weaknesses

 

 

 


Audits are not a substitute for management controls

 

 

 

INTRODUCTION

 

      This digest covers our compliance examination and financial audit of the Association for the period ended June 30, 2007. 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

FRAUD PREVENTION AND DETECTION PROGRAM

 

The Association does not have a fraud risk assessment program in place. According to Association management, the Association has established internal controls in order to prevent and detect fraud as well as errors that may occur; however, these controls and associated risks are not monitored on an on-going basis.

 

      The Association relies on current internal controls that have been put in place to prevent and detect fraud. Additionally, Association management has relied on the external audits for identification of control weaknesses.

 

      Accounting industry trends have increased organizations’ awareness of the prevalence of fraud.  Many organizations rely in part on their auditors to uncover any internal fraud, but audits, even those of the highest quality, are not a substitute for management establishing good internal control.

 

      The Association is responsible for the development of internal controls and the monitoring of their operating effectiveness. Additionally, it is management’s responsibility to prevent and detect fraud.  (Finding No. 1, Page 26)

 

      We recommended that management establish a continuous written fraud prevention, deterrence and detection program, and that the Board of Directors evaluate management's identification of fraud risks and its implementation of anti-fraud measures. 

 

      Association officials agreed with our recommendation.

 

 

 

AUDITORS’ OPINION

 

Our auditors stated the June 30, 2007 financial statements of the Association are fairly presented in all material respects.

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KAL :pp

 

 

SPECIAL ASSISTANT AUDITORS

 

Crowe Chizek & Co., LLC were our special assistant auditors for this audit.