REPORT DIGEST

GOVERNORS STATE UNIVERSITY ALUMNI ASSOCIATION

 

FINANCIAL AUDIT

For the One Year Ended:

June 30, 2003

And

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                       2

Total last audit                       0

Repeated from last audit        0

 

 

Release Date:

February 24, 2004

 

 

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 TDD (217) 524-4646

 

This Report Digest is also available on

the worldwide web at

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

 

 

 

 

 

SYNOPSIS

 

  • The Alumni Association did not have adequate controls over its cash receipting process.
  • The Alumni Association made advances to two employees.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                  GOVERNORS STATE UNIVERSITY ALUMNI ASSOCIATION

                                                     FINANCIAL AUDIT

                                           For the Year Ended June 30, 2003

                                                  COMPLIANCE AUDIT

                                      For the Two Years Ended June 30, 2003

 

FINANCIAL OPERATIONS (ALL FUNDS)

FY 2003

FY 2002

REVENUES

      Operating revenues

 

EXPENSES

      Operating expenses

      Operating loss

 

NONOPERATING REVENUES

      Contributions

      Investment income

            Net nonoperating revenues

            Loss before other revenues, expenses, gains and             losses

 

      Additions to permanent endowments

            Decrease in net assets

 

NET ASSETS

            Net assets-beginning of year

            Net assets-end of year

 

$35,791

 

 

$184,808

($149,017)

 

 

$89,405

3,426

$92,831

 

($56,186)

 

$1,806

($54,380)

 

 

$239,213

$184,833

 

$12,164

 

 

$112,341

($100,177)

 

 

$84,588

1,329

$85,917

 

($14,260)

 

$1,802

($12,458)

 

 

$251,671

$239,213

 

OTHER SIGNIFICANT ACCOUNT BALANCES

AT JUNE 30,

2003

AT JUNE 30,

2002

Cash and Cash Equivalents

Accounts Receivable

Endowment Investments

      Total Assets

Total Liabilities

Net Assets

      Restricted Nonexpendable

      Restricted Expendable

      Unrestricted

      Total Net Assets

$ 166,520

0

42,104

$ 208,624

$23,791

 

$ 58,877

18,771

107,185

$184,833

$ 217,066

7,270

41,132

$ 265,468

$26,255

 

$ 57,071

26,415

155,727

$ 239,213

ALUMNI ASSOCIATION EXECUTIVE DIRECTOR

During Audit Period: Rosemary Hulett

Currently: Rosemary Hulett

 

 

 

 

 

Receipts were not deposited on a timely basis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Two employees received interest free advances from the Alumni Association

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER CASH

Governors State University Alumni Association (Association) did not have adequate controls over its cash receipting process.

Our testing of cash receipts revealed that 2 of 25 receipts tested were not deposited timely. The receipts, individually less than $500, were deposited 19 to 21 business days after the date of receipt.

In addition, the Association had inadequate segregation of duties in the cash receipting process. There was no segregation of duties between the receipt and the deposit of the cash receipts. Lastly, we noted there was not a master listing of all cash received and there was no reconciliation between a master listing of receipts and amounts deposited.

We recommended that the Association review its policies and procedures relating to cash receipts. One aspect of this review should be to formalize the threshold and the timeframe for delivering cash receipts to the University’s cashier office for deposit into the bank. The Association should maintain a master list of all cash receipts received and reconcile the listing to the amount deposited into the bank. We also recommended that the Association should ensure that there is an adequate segregation of duties in the cash receipt process by separating the functions of receipt delivery with the recording of the receipts. (Finding 1, pages 10-11)

Association officials accepted the finding and stated that they will review their policies and procedures relating to cash receipts.

EMPLOYEE ADVANCES

Governors State University Alumni Association (Association) made advances to two employees.

The Association advanced one University employee $7,000 and another employee was advanced $1,500. In both instances, promissory notes were signed, however there was no interest charge associated with the advances.

We recommended that the Association develop policies and procedures to ensure that all transactions further the purpose of the Association. (Finding 2, page 12)

Association officials accepted the finding and stated that they will implement the recommendation.

Association responses were provided by Mr. Tom Stepke, Controller.

AUDITORS’ OPINION

Our auditors stated the financial statements of Governors State University Alumni Association as of June 30, 2003 and for the year then ended are fairly presented in all material respects.

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:TLK:pp

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors on this audit were DeRaimo Hillger & Ripp.