Summary of Findings

Total this audit 1

Total last audit 0

Repeated from last audit 0

Release Date:

March 1, 2006

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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SYNOPSIS

· The Foundation maintained deposits in excess of the Federal Deposit Insurance Corporation (FDIC) coverage and pledged collateral.

CHICAGO STATE UNIVERSITY FOUNDATION

FINANCIAL AUDIT

For the Year Ended June 30, 2005

COMPLIANCE ATTESTATION EXAMINATION

For the Two Years Ended June 30, 2005

FINANCIAL OPERATIONS (ALL FUNDS)	FY 2005	FY 2004
REVENUES Operating revenues......................................................... EXPENSES Operating expenses........................................................ Operating loss.......................................................... NONOPERATING REVENUES (EXPENSES) CRCP grant................................................................... Contributions.................................................................. Investment income.......................................................... In-kinds CSU................................................................. Net nonoperating revenues....................................... Income before other revenues, expenses, ... gains and losses....................................................................... Endowment contributions................................................ Debt write-off CSU........................................................ Total other revenues, expenses, gains and losses Increase (decrease) in net assets............................... NET ASSETS Net Assets – beginning of year Net Assets – End of year	$664,191 $2,112,389 ($1,448,198) $750,000 763,617 94,215 (19,391) $1,588,441 $140,243 $408,634 100,000 $508,634 $648,877 $2,171,730 $2,820,607	$609,648 $3,587,956 ($2,978,308) $2,200,000 1,076,015 77,296 (30,938) $3,322,373 $344,065 $11,610 0 $11,610 $355,675 $1,816,055 $2,171,730
OTHER SIGNIFICANT ACCOUNT BALANCES	At June 30, 2005	At June 30, 2004
Cash and Investments Total Assets Accounts Payable and accrued liabilities Total Liabilities Net Assets – Restricted-Nonexpendable Net Assets – Restricted – Expendable Net Assets – Unrestricted Total Net Assets	$3,039,118 $3,103,380 $145,377 $282,773 $1,847,690 $735,091 $237,826 $2,820,607	$4,049,672 $4,050,690 $1,667,999 $1,878,960 $1,403,509 $754,181 $14,040 $2,171,730
FOUNDATION EXECUTIVE DIRECTOR
During Audit Period: July 1, 2003 to December 31, 2004 - Mr. Katey Assem, April 18, 2005 – June 30, 2005 - Mr. Marquis Miller Present – Mr. Marquis Miller

Uninsured deposits totaling $88,779 and $1,450,156

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

UNCOLLATERALIZED DEPOSIT ACCOUNTS

The Foundation maintained deposits in excess of the Federal Deposit Insurance Corporation (FDIC) coverage and pledged collateral.

The Foundation’s deposits (bank balances) at financial institutions totaled $1,394,317 and $3,051,511 at June 30, 2005 and 2004 respectively. The FDIC coverage plus pledged collateral for these accounts totaled $1,305,538 and $1,601,355 at June 30, 2005 and 2004, respectively, which left uninsured deposits of $88,779 and $1,450,156.

(Finding 1, Page 11)

We recommended that the Foundation obtain sufficient collateral to secure its deposit accounts.

Foundation officials stated that the Board will authorize a new depository account at another financial institution at the next quarterly Board meeting and that the Board will also revise its depository account policy and forms at the next quarterly Board meeting.

Foundation responses were provided by Mr. Marquis Miller, Executive Director.

AUDITORS' OPINION

Our auditors stated the June 30, 2005 financial statements of the Chicago State University Foundation are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:TLK:pp

SPECIAL ASSISTANT AUDITORS

Nykiel Carlin & Co., LTD were our special assistant auditors for this audit.