REPORT DIGEST IMSA FUND FOR ADVANCEMENT OF EDUCATION FINANCIAL AUDIT FOR THE YEAR ENDED: JUNE 30, 2012 Release Date: January 30, 2013 Summary of Findings: Total this audit: 1 Total last audit: 1 Repeated from last audit: 1 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 are also available on the worldwide web at www.auditor.illinois.gov SYNOPSIS • The IMSA Fund for Advancement of Education did not initially properly report certain financial statement amounts in its June 30, 2012 financial statements. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS FINANCIAL STATEMENT ERRORS The IMSA Fund for Advancement of Education (Fund) did not initially properly report certain financial statement amounts in its June 30, 2012 financial statements. During our audit we noted the following financial statement reporting matters that required reclassification: • The Fund incorrectly reported a certificate of deposit in the amount of $15,268 with original maturity date of greater than three months as a cash equivalent instead of an investment in the Statement of Net Assets. After the auditors’ brought this matter to their attention, the Fund reclassified its certificate of deposit to investments. • The Fund initially prepared a non-classified Statement of Net Assets. Governmental Accounting Standards Board Statement No. 34 requires proprietary funds to be presented in a classified format to distinguish between current and long-term assets and liabilities. After bringing this to their attention, the Fund revised the Statement of Net Assets to reflect both current and non-current assets. • The Fund initially reported $50,280 of permanent endowments as “unrestricted net assets” instead of “restricted net assets, nonexpendable” on the Statement of Net Assets. After bringing this to the Fund’s attention, the Fund correctly included this amount as “restricted net assets, nonexpendable” on the Statement of Net Assets. • The Fund initially included $50,280 in “Contributions” in the operating revenues section of the Statement of Revenues, Expenses, and Changes in Net Assets instead of as “Contributions to permanent endowments” in the other revenues section of the Statement of Revenues, Expenses, and Changes in Net Assets. After the auditors’ brought this to their attention, the Fund corrected this reporting error and has reported this amount as “Contributions to permanent endowments.” (Finding 1, page 25) We recommended management thoroughly review its financial statements and verify amounts in order to ensure the financial statements are properly presented in accordance with accounting principles generally accepted in the United States of America. Management agreed with the finding and recommendation. AUDITORS’ OPINION Our auditors reported the June 30, 2012 financial statements of the IMSA Fund for Advancement of Education are fairly presented in all material respects. WILLIAM G. HOLLAND Auditor General WGH:LM:rt AUDITORS ASSIGNED Our special assistant auditors for this audit were Borschnack, Pelletier & Co.