REPORT DIGEST NORTHEASTERN ILLINOIS UNIVERSITY FOUNDATION FINANCIAL
AUDIT For the One Year Ended: June 30, 2007 COMPLIANCE ATTESTATION EXAMINATIONFor the Two Years Ended: June 30, 2007 Summary of FindingsTotal last audit 0 Repeated from last audit 0
Release Date: November 15, 2007
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 http://www.auditor.illinois.gov
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SYNOPSIS
· The Foundation did not properly interpret and apply Government Accounting Standards Board Statement No. 33 Accounting and Financial Reporting for Nonexchange Transactions. |
NORTHEASTERN ILLINOIS UNIVERSITY FOUNDATION
FINANCIAL AUDIT
For
the Year Ended June 30, 2007
FINANCIAL OPERATIONS (ALL FUNDS) |
FY
2007 |
FY
2006 |
REVENUES (Operating and
Nonoperating)
Contributions.................................................................... Investment
Income............................................................ University
Support............................................................ Permanent
Endowment Additions...................................... Other................................................................................ Total
Revenues........................................................... |
$ 297,352 525,923 91,296 110,553 9,714 $ 1,034,838 |
$ 250,954 213,471 67,756 60,141 8,257 $ 600,579 |
EXPENSES
Scholarships
and Fellowships........................................ University
Support........................................................ Institutional
Support.......................................................... Fundraising....................................................................... Grants
and awards............................................................ Total
Expenditures...................................................... Increase in Net Assets.......................................................... |
$
111,205 91,296 203,323 81,292 53,455 $ 540,571 $494,267 |
$
150,690 67,756 205,527 84,573 19,128 $ 527,674 $ 72,905 |
SELECTED ACCOUNT BALANCES (ALL FUNDS) |
AT
JUNE 30, 2007 |
AT
JUNE 30, 2006 |
Short term investments.......................................................... Endowment investments........................................................ Other Assets......................................................................... Total Assets.......................................................................... Accounts payable and accrued expenses............................... Deferred revenues................................................................. Net Assets............................................................................ Total Liabilities and Net Assets............................................. |
$ 166,389 1,981,695 2,663,481 23,266 $ 4,834,831 $ 6,042 752,888 4,075,901 $ 4,834,831 |
$ 182,434 1,046,060 2,344,759 24,839 $ 3,598,092 $ 16,458 0 3,581,634 $ 3,598,092 |
FOUNDATION EXECUTIVE DIRECTOR |
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During
Audit Period: Terry Bush Currently: Terry Bush |
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FINDINGS,
CONCLUSIONS, AND RECOMMENDATIONS FAILURE TO APPLY APPROPRIATE
ACCOUNTING PRINCIPLES
The
Foundation did not properly interpret and apply Government Accounting
Standards Board (GASB) Statement No. 33 Accounting
and Financial Reporting For Nonexchange Transactions.
The
Foundation received $752,888 from Northeastern Illinois University
(University) to set up a Gaining Early Awareness and Readiness for
Undergraduate Program (GEAR UP) scholarship.
The amount represented unspent grant funds from the GEAR UP program
that the University had obtained the approval from the U.S. Department of
Education to change the scope from the original proposal to establish a
scholarship component for this program.
The policy
for the administration of the scholarship includes requirements for the
eligibility of applicants, application process, requirement for the award,
eligibility for renewal, renewal application process, the amounts and use of
the scholarship funds, and the role of the Chicago GEAR UP Alliance
(Alliance). The funds will be
administered locally by the Alliance and awarded as scholarships to students
who had participated in the GEAR UP program.
The Foundation will hold and spend the funds as directed by the
Alliance.
As of fiscal
year-end, the funds were invested and restricted for use by this program and
no scholarships have been awarded.
However, we noted that the Foundation recorded the $752,888 as other
revenue, instead of deferred revenue.
The Foundation subsequently revised the financial statements to
include the adjustments necessary to apply the appropriate generally accepted
accounting principles.
According to
Foundation management, the above exception occurred due to the complexity of
the GEAR UP grant requirements which were not fully known at the time of
receipt of the grant. (Finding 1, pages 29-30)
We
recommended the Foundation improve its procedures for identifying
transactions that include special terms and properly account for such
transactions in accordance with accounting principles generally accepted in
the United States of America.
Foundation
management concurred with the finding and stated that they will strengthen
their procedures.
AUDITORS’ OPINION
Our auditors stated the financial statements of Northeastern Illinois University Foundation as of June 30, 2007, and for the year then ended, 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 E.C. Ortiz & Co, LLP. |