|
REPORT DIGEST IMSA FUND FOR THE ADVANCEMENT OF EDUCATION FINANCIAL AUDIT AND COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2007 Summary of Findings: Total this audit 2 Total last audit 0 Repeated from last audit 0 Release Date: July 24, 2008
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 TTY (888) 261-2887 This Report Digest and Full
Report the worldwide web at http://www.auditor.illinois.gov |
SYNOPSIS
·
The IMSA
Fund for Advancement of Education (Fund) did not maintain
investments within the allocation parameters stipulated in their investment
policy. ·
The Fund
did not properly maintain disclosure statements
regarding potential conflicts of interest on file for the Board of Directors
during the FY07 period.
{Expenditures and Activity Measures are summarized on the reverse page.}
|
IMSA FUND FOR ADVANCEMENT OF EDUCATION
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For The Two Years Ended June 30, 2007
|
STATEMENT
OF ACTIVITIES |
FY 2007 |
FY 2006 |
||
|
REVENUES Program Revenues: Contributions.......................................................... Gains (Losses) on Investments................................ Registration Fees.................................................... General Revenues: Operating Agreement with Academy....................... EXPENDITURES Education Services................................................. Management and General....................................... Fund Raising........................................................... Total Expenditures........................................................ |
$ 1,153,553 589 9,258
208,807 289,163 $
1,661,370
$ 607,198 78,824 271,808 $
957,830
$
703,540 |
$ 932,932 320 7,405
158,449 110,829 $
1,209,935
$ 698,897 86,752 155,774 $
941,423
$
268,512 |
||
|
STATEMENT OF NET ASSETS |
FY 2007 |
FY 2006 |
||
|
Assets: Cash and Cash Equivalents.......................................... Investments................................................................. Account Receivable.................................................... Prepaid Expenses........................................................ Pledges Receivable..................................................... Total Assets................................................................ Liabilities: Accounts Payable....................................................... Deferred Contributions................................................ Total Liabilities............................................................ Net Assets........................................................................ |
$ 783,095 2,860,345 32,008 4,183 143,149 $
3,822,780
$ 19,610 0 $ 19,610
$
3,803,170 |
$1,173,023 1,813,252 63,864 1,239 91,054 $
3,142,432
$ 17,802 25,000 $ 42,802
$
3,099,630 |
||
FUND AGENT
|
|
|||
|
During Audit Period: Catherine C. Veal. (7/1/06-5/1/07) |
|
|||
|
Currently: Suzyn Price (5/1/07-Current)
|
|
|||
|
Noncompliance with Fund Investment Policy
The Fund did not
properly maintain Board disclosure
statements |
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS NONCOMPLIANCE WITH FUND INVESTMENT POLICY The IMSA Fund for Advancement
of Education (Fund) did not maintain investments within the allocation parameters
stipulated in their investment policy.
The Fund maintains three primary types of assets – unrestricted,
restricted, and endowment funds – with each type of asset being kept in three
different types of investment accounts. During
testing, we noted 5 of the 9 (56%) investment accounts were not within
required parameters as of June 30, 2007.
We recommended the Fund work to maintain their investment portfolio
within the parameters set in their investment policy. The Fund agreed with the finding and will implement the recommendation. LACK OF CONFLICT OF INTEREST DISCLOSURE STATEMENTS The Fund did not properly maintain disclosure statements regarding potential conflicts of interest on file for the Board of Directors during the FY07 period. The Fund had 21 Board of Directors that served during the FY 07 period. ·
Eight of 21 (38%) Board of Directors disclosure statements
could not be located for the FY07 period. Of the
eight, the Fund was able to obtain replacement statements for two Board of
Directors after FY 07. ·
Three of 21 (14%) Board of
Directors did not file their disclosure statements prior to the end of FY
07. These statements were later
obtained by the Fund. The IMSA Fund By-laws state that on an annual basis, members of the Board of Directors shall sign a statement disclosing relevant financial interests which may represent a potential conflict of interest. We recommended the Fund implement controls to ensure that
annually members of the Board of Directors have signed disclosure statements
regarding
potential conflicts of interest on file in accordance with the Fund’s
By-laws.
The Fund agreed with the finding and will implement the recommendation. Our auditors
stated the June 30, 2007 and June 30, 2006 financial statements of the IMSA
Fund for Advancement of Education are fairly presented in all material
respects. __________________________________ WILLIAM G. HOLLAND, Auditor General WGH:CML This audit was performed by the Office
of the Auditor General’s staff. |
|||