REPORT DIGEST

ILLINOIS CONSERVATION FOUNDATION

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2019

Release Date:  February 11, 2020

FINDINGS THIS AUDIT:  2

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

INTRODUCTION

This digest covers our financial audit of the
Illinois Conservation Foundation (Foundation)
as of and for the year ended June 30, 2019.
The Foundation’s compliance examination
covering the year ended June 30, 2019 will be
released under a separate cover.

SYNOPSIS

• (19-1) The Foundation had weaknesses over
its receipts and credit card expenditure
processes.
• (19-2) The Foundation did not have adequate
controls over its capital assets.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

WEAKNESSES OVER RECEIPTS AND EXPENDITURES

The Illinois Conservation Foundation
(Foundation) had weaknesses over its receipts
and credit card expenditure processes.

During testing, the auditors noted receipts
were not timely deposited, the Foundation did
not maintain proper segregation of duties over
its receipts processing, credit card
expenditures did not have supporting receipts
or invoices, credit card statements did not
indicate a review was conducted and monthly
bank reconciliations prepared by a consultant
were not reviewed by management.   (Finding 1,
pages 33-34)

We recommended management increase its
oversight of the receipts and credit card
processing performed by its contractor to
timely prevent or detect misstatements.

The Foundation agreed with the auditor’s
recommendation.

INADEQUATE CONTROLS OVER CAPITAL ASSETS

The Foundation did not have adequate controls
over its capital assets. During testing, the
auditors noted the Foundation did not ensure
its listing of capital assets was complete and
accurate or adequately updated or maintained.
Furthermore, the Foundation did not maintain a
listing of property and equipment below the
capitalization threshold of $5,000. Finally,
the Foundation did not conduct regular
physical inspection of capital assets and did
not utilize tag numbers to account for its
property and equipment.  (Finding 2, pages
35-36)

We recommended management ensure assets are
properly accounted through the maintenance of
a complete and updated asset listing which
should be clearly assigned to a responsible
employee. In addition, we recommended the
Foundation periodically conduct a physical
count and inspection of all its assets to
prevent and detect misappropriation or
misstatements.

The Foundation agreed with the auditor’s
recommendation.

AUDITOR’S OPINION

The auditors stated the financial statements
of the Foundation as of and for the year ended
June 30, 2019, are fairly stated in all
material respects.

This financial audit was conducted by E.C.
Ortiz & Company, 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