REPORT DIGEST

ILLINOIS CONSERVATION FOUNDATION

Financial Audit and Compliance
Examination
For the Year Ended June 30, 2015

Release Date:  December 17, 2015

FINDINGS THIS AUDIT:  2

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  1 -- 0 -- 1
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 1 -- 2

FINDINGS LAST AUDIT: 5

Category 1:	Findings that are
material weaknesses in internal control
and/or a qualification on compliance
with State laws and regulations
(material noncompliance).
Category 2:	Findings that are
significant deficiencies in internal
control and noncompliance with State
laws and regulations.
Category 3:	Findings that have no
internal control issues but are in
noncompliance with State laws and
regulations.

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
www.auditor.illinois.gov

SYNOPSIS

• (15-1) The Foundation’s financial
reporting process is lacking sufficient
internal controls.
• (15-2) The Foundation’s donation
letters did not include language that
the Foundation is not subject to the
provisions of the Public Funds
Investment Act.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

NEED TO IMPROVE FINANCIAL REPORTING
PROCESS

The Illinois Conservation Foundation
(Foundation) does not have sufficient
internal controls over the financial
reporting process.

Several errors were identified during
the audit of the Foundation’s financial
statements.  The Foundation’s financial
statements were adjusted for the
following reporting errors:

• The Foundation failed to make
numerous adjusting entries to present
the financial statements in accordance
with Generally Accepted Accounting
Principles (GAAP).

• The Foundation recorded unrealized
gains as realized gains in error. A net
audit adjustment of $12,342 was
recorded to correct the balances in the
realized gain and unrealized gain
accounts.  (Finding 1, pages 11-12)
This finding was first reported in
2011.

We recommended the Foundation implement
additional internal control procedures
to ensure financial statements are
prepared in accordance with GAAP.

Foundation management accepted our
recommendation.  (For the previous
Foundation response, see Digest
Footnote #1.)

FAILURE TO PROPERLY NOTIFY DONORS

The Foundation did not comply with
provisions of the Illinois Conservation
Foundation Act (Act).

During testing of donation thank-you
letters, we noted 25 of 25 (100%)
donation letters did not include
required language notifying the donors
that the Foundation is not subject to
the provisions of the Public Funds
Investment Act. (Finding 2, page 13)

We recommended the Foundation comply
with the requirements of the Act and
ensure all donors providing gifts,
grants, or bequests to the Foundation
receive written notice that the
Foundation is not subject to the
provisions of the Public Funds
Investment Act.

Foundation management accepted our
recommendation.

AUDITOR’S OPINION

The auditors stated the financial
statements of the Illinois Conservation
Foundation as of and for the year ended
June 30, 2015, are fairly stated in all
material respects.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Foundation for the
year ended June 30, 2015, as required
by the Illinois State Auditing Act.
The auditors stated the Foundation
complied, in all material respects,
with the requirements described in the
report.

WILLIAM G. HOLLAND
Auditor General

WGH:APA

SPECIAL ASSISTANT AUDITORS

Kemper CPA Group, LLP was our special
assistant auditor for this engagement.

DIGEST FOOTNOTES

#1 – NEED TO IMPROVE FINANCIAL
REPORTING PROCESS

2014:  The Foundation agrees.