REPORT DIGEST

ILLINOIS LITERACY FOUNDATION

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2017

Release Date:  January 31, 2018

FINDINGS THIS AUDIT:  1

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 0 -- 1
Category 2:  0 -- 0 -- 0
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 0 -- 1

FINDINGS LAST AUDIT: 0

Category 1: Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State laws
and regulations (material noncompliance).
Category 2: Findings that are significant
deficiencies in internal control and
noncompliance with State laws and
regulations.
Category 3: Findings that have no internal
control issues but are in noncompliance with
State laws and regulations.

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, 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

INTRODUCTION

The Illinois Literacy Foundation (Foundation)
was created to promote literacy among the
residents of the State of Illinois by
supporting literacy programs and enhancing
Statewide literacy awareness, to make grants
and gifts in aid and support of the goal, and
to engage generally in other lawful endeavors
consistent with the foregoing purposes.

This digest covers the financial statement
audit and compliance examination of the
Foundation as of and for the two years ended
June 30, 2017.

SYNOPSIS

• (17-1) The Foundation did not identify a
required adjustment necessary to ensure the
Foundation’s   audited financial statements
were accurately prepared.


FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO IDENTIFY FINANCIAL STATEMENT
REPORTING ERROR

The Foundation did not identify a required
adjustment necessary to ensure the
Foundation’s audited financial statements
were accurately presented in accordance with
generally accepted accounting principles
(GAAP).

The Foundation’s financial statements were
adjusted for a reporting error identified
during the audit. A correction was made to
increase the contributed services revenue and
expense on the Statement of Governmental Fund
Revenues, Expenditures & Change in Fund
Balance/Statement of Activities. The
Foundation employs a contractual worker to
service the Foundation in all capacities
necessary. The salary and benefits of this
employee are paid for by the Office of the
Secretary of State. Not recording these
transactions resulted in an understatement of
contributed service revenue and expense of
$2,181 and $16,331 for Fiscal Years 2016 and
2017, respectively. (Finding 1, pages 11-12).

We recommended the Foundation implement
internal control procedures to assess the
risk of material misstatements of the
Foundation’s financial statements and to
identify such misstatements during the
financial statement preparation process.

Foundation officials accepted the
recommendation and stated they have addressed
the deficiency described in the finding.

AUDITOR’S OPINION

The auditors stated the financial statements
of the Foundation as of and for the years
ended June 30, 2016, and June 30, 2017, are
fairly stated in all material respects.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the Foundation for the two
years ended June 30, 2017, as required by the
Illinois State Auditing Act.  The accountants
stated the Foundation complied, in all
material respects, with the requirements
described in the report.

This financial audit and compliance
examination was conducted by Kerber, Eck &
Braeckel LLP.

JANE CLARK
Division Director

This report is transmitted in accordance with
Section 3-14 of the Illinois State Auditing
Act.

FRANK J. MAUTINO
Auditor General

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