REPORT DIGEST

ILLINOIS CONSERVATION FOUNDATION

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2018

Release Date:  February 6, 2018

FINDINGS THIS AUDIT:  2

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

FINDINGS LAST AUDIT: 1

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
FRANK J. MAUTINO, 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

• (2018-001)	The Foundation did not have
adequate controls over the financial
statement process regarding merchandise
available for sale.
• (2018-002)	The Foundation did not have
adequate planning and monitoring
procedures.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FINANCIAL REPORTING PREPARATION –
MERCHANDISE HELD FOR SALE

The Illinois Conservation Foundation
(Foundation) did not have adequate controls
over the financial statement process
regarding merchandise available for sale.

During the audit, the auditors noted that
the Foundation did not perform an inventory
count on its lapel pins used for fund-
raising. The Foundation subsequently
performed a count and recorded inventory of
$17,477.  (Finding 1, pages 11-12)  This
finding has been repeated since 2011.

We recommended management perform an annual
count of its merchandise held for sale to
determine the amount of assets to be
recorded at the end of the fiscal year.

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

INADEQUATE PLANNING AND MONITORING PROGRAM

The Foundation did not have adequate
planning and monitoring procedures.

During the audit, the auditors noted the
Foundation had not established procedures
and processes for program monitoring, key
measurement criteria or performance
measures to assess progress toward
objectives.  Further, the Foundation did
not have a budgeting process to assist in
the evaluation of its progress towards its
objectives and assign priorities and
resources.

We also noted the Foundation’s current
policies and procedures were last updated
in 1995 and have not been updated after
this date to reflect changes of current
procedures and practices.

Finally, we noted the Foundation’s Board is
currently composed of 12 instead of 13
members as required by the Illinois
Conservation Foundation Act.  (Finding 2,
pages 13-14)

We recommended management establish and
implement a planning and monitoring program
of its activities and measurement criteria
and processes to determine progress towards
its objectives. In addition, we recommended
management update its policies and
procedures to reflect current practices and
continue its efforts to fill the vacancy in
the Board.

Foundation management agreed with our
recommendation.

AUDITOR’S OPINION

The auditors stated the financial
statements of the Foundation as of and for
the year ended June 30, 2018, 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, 2018, as required by the
Illinois State Auditing Act.   The
accountants stated the Foundation complied,
in all material respects, with the
requirements described in the report.

The financial audit and the compliance
examination were conducted by E.C. Ortiz &
Co., LLP.

JANE CLARK
Division Director

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:JMR

DIGEST FOOTNOTES

#1 - FINANCIAL STATEMENT PREPARATION

2017-001:  The Foundation agrees.