Illinois Math & Science Academy 2001 Audit

REPORT DIGEST
ILLINOIS MATH &
SCIENCE ACADEMY
FINANCIAL AND COMPLIANCE AUDIT

For the Year Ended:
June 30, 2001

Summary of Findings:

Total this audit 1
Total last audit 1
Repeated from last audit 1

Release Date:
April 3, 2002

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
Attn: Records Manager
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 Illinois Mathematics and Science Academy did not deposit all cash receipts promptly.

{Expenditures and Activity Measures are summarized on the reverse page.}

ILLINOIS MATHEMATICS AND SCIENCE ACADEMY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 2001

CURRENT FUND OPERATIONS (ALL FUNDS)	FY 2001			FY 2000
REVENUES AND OTHER ADDITIONS State Appropriations Investment Income Donations Federal Government Grants Illinois State Agency Grants Student activity fees Property, from the Capital Development Board Other TOTAL REVENUES AND OTHER ADDITIONS EXPENDITURES AND OTHER DEDUCTIONS Personal Services Educational and general expenditures Other TOTAL EXPENDITURES AND OTHER DEDUCTIONS		$15,332,121 40,535 616,155 739,965 54,503 664,746 1,379,517 1,841,412 $20,668,954 $11,682,848 6,115,184 853,232 $18,651,264		$14,089,782 36,353 1,004,200 36,624 277,559 635,420 2,497,609 1,020,804 $19,598,351 $10,931,021 5,312,704 590,320 $16,834,045
SELECTED BALANCE SHEET ACCOUNTS		JUNE 30, 2001		JUNE 30, 2000
Assets: Cash Cash on deposit with State Treasurer Certificates of deposit, at cost Property, Plant and Equipment Liabilities and Fund Equity: Accounts payable Accrued salaries and benefits Accrued vacation pay and sick leave		$50,915 1,179,983 580,025 55,385,703 $418,316 659,278 1,085,000		$89,861 560,651 628,515 53,818,848 $264,257 659,166 1,068,000
SUPPLEMENTARY INFORMATION	FY 2001		FY 2000
Average Number of Employees Average Number of Students Instructional Cost Per Student		229 644 $7,500		225 642 $7,194
ACADEMY EXECUTIVE DIRECTOR
During Audit Period: Stephanie P. Marshall, Ph.D. Currently: Stephanie P. Marshall Ph.D.

Of 69 receipts and refunds tested, 14.5% were not deposited timely

FINDING, CONCLUSION, AND RECOMMENDATION

UNTIMELY DEPOSIT OF CASH RECEIPTS

The Illinois Mathematics and Science Academy did not deposit all cash receipts promptly.

Of 69 receipts and refunds tested, 10 (14.5%) were not deposited timely. Five receipts of less than $10,000 were deposited from 1 to 18 business days late and five receipts of greater than $10,000 were deposited from 1 to 15 business days late. (Finding 1, page 14) This finding has been repeated since 1999.

We recommended the Academy monitor cash receipts to ensure they are deposited timely.

The Academy responded that it had modified its procedures concerning timely deposits of funds and subsequently hired additional business department staff to allow a better distribution of workload and ensure the timely deposit of receipts in accordance with procedures. (For previous Academy responses, see Digest footnote.)

AUDITORS' OPINION

Our auditors stated that the financial statements present fairly, in all material respects, the financial position of the Illinois Mathematics and Science Academy, as of June 30, 2001 and the results of its operations for the year then ended.

____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were DeRaimo, Hillger, & Ripp, CPAs.

DIGEST FOOTNOTES

UNTIMELY DEPOSIT OF CASH RECEIPTS (Previous Academy Responses)

2000: "The Academy agrees that it would be appropriate to adopt a more formal policy concerning the timely deposit of funds, regardless of the fund receiving the deposit and whether or not it was covered by the statutory requirement."

1999: "The five checks in question were receipts representing grant funds transferred from the IMSA Fund to the Academy’s Special Trust Fund. Typically these grants are in the form of Lump Sum – Program Specific awards. The Academy had been using the procedure of holding such transfers until a formal budget was developed by the internal grant coordinator. In the future the funds will be deposited and restricted pending receipt of a formal budget."

"The Academy has never followed the practice of date stamping checks, except for Student Fee payments received in the mail directly by the Business Office. The checks in question were received in various other offices of the Academy, for special student activities, and forwarded to the Business Office for deposit. The Academy agrees that internal controls would be improved by the recommendation and will take steps to establish the procedure."

"The Academy agrees that it is important to have all pertinent data available to properly record the receipts and to provide a means of verification of amounts received. The recommendation will be implemented."