REPORT DIGEST GOVERNORS STATE UNIVERSITY FOUNDATION FINANCIAL AUDIT For the Year Ended: June 30, 2005 and COMPLIANCE ATTESTATION EXAMINATIONFor the Two Years Ended: June 30, 2005 Summary of FindingsTotal last audit 2 Repeated from last audit 1 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 did not have adequate controls over its cash deposits. {Expenditures and Activity
Measures are summarized on the reverse page.} |
For
the Year Ended June 30, 2005
FINANCIAL
OPERATIONS (ALL FUNDS) |
FY 2005 |
FY 2004 |
REVENUESOperating revenue................................................. EXPENSESOperating expenses............................................... Operating loss................................................. NONOPERATING REVENUES (EXPENSES)Investment income ................................................ Net non-operating revenues................................... Gains (losses) before other revenues, expenses, gains and losses................................................... Other revenues ..................................................... Increase (Decrease) in net assets............................ NET ASSETSNet assets-beginning of year.................................. Net assets-end of year........................................... |
$146,148 $295,781 ($149,633) $167,749 24,553 $192,302 $42,669 25,993 $2,050,246 $2,118,908 |
$37,331 $242,637 ($205,306) $118,938 57,572 $176,510 ($28,796) 16,713 ($12,083) $2,062,329 $2,050,246 |
OTHER SIGNIFICANT ACCOUNT BALANCES |
AT JUNE 30, 2005 |
AT JUNE 30, 2004 |
Cash and Investments........................................................ Capital assets.................................................................... Total Assets............................................................... Total Liabilities.................................................................. Net Assets Invested in capital assets............................................. Restricted Nonexpendable.......................................... Unrestricted................................................................ Total Net Assets......................................................... |
$ 1,012,577 1,167,851 $ 2,180,428 $61,520 $1,167,851 667,835 322,437 (39,215) $2,118,908 |
$ 987,671 1,117,851 $ 2,105,522 $55,276 $1,117,851 256,135 (5,582) $2,050,246 |
FOUNDATION EXECUTIVE DIRECTOR |
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During Audit Period: Vacant (7/01/03 to 1/31/04), Dr. James Britt (2/01/04 to 6/30/05) Currently: Dr. James Britt |
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FINDINGS,
CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER
CASH
The
Foundation did not have adequate controls over its cash deposits. During our
testing of 50 receipts, we noted that nine were not deposited timely. The receipts, each individually less than
$500, were deposited 11 to 63 days after the date of receipt. According to
Foundation management, the receipt of incoming funds involves multiple steps
that must be performed in sequence by both the Foundation and the
University’s Business Office.
Foundation management states that these funds are secured at all
points in time. (Finding 1, page 12) We
recommended the Foundation develop policies and procedures to ensure that
deposits are made timely. Foundation
management stated that the Foundation and the University are in the process
of reengineering the receipt process. AUDITORS’ OPINION Our auditors
state the June 30, 2005 financial statements of the Governors State
University Foundation are fairly presented in all material respects. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:TLK:PP SPECIAL ASSISTANT AUDITORS Our special assistant auditors for this audit were Nykiel Carlin & Co., LTD. |