REPORT DIGEST
THE SOUTHERN ILLINOIS UNIVERSITY RESEARCH PARK, INC. (CARBONDALE)
COMPLIANCE AUDIT For the Two Years Ended: June 30, 2003 AND FINANCIAL AUDIT For the Year Ended: June 30, 2003
Summary of Findings:
Total this audit 5 Total last audit N/A Repeated from last audit N/A
Release Date: March 24
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 TDD (217) 524-4646
This Report Digest is also available on the worldwide web at |
SYNOPSIS
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SOUTHERN ILLINOIS UNIVERSITY RESEARCH PARK, INC. (CARBONDALE)
FINANCIAL AND COMPLIANCE AUDIT
For The Two Years Ended June 30, 2003
FINANCIAL OPERATIONS (All Funds) |
FY 2003 |
FY 2002* |
REVENUES |
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Operating revenues |
$30,000 |
$81,111 |
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EXPENSES |
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Operating expenses |
$3,554 |
$2,300 |
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Operating income |
$26,446 |
$78,811 |
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NONOPERATING REVENUES (EXPENSES) |
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Investment Income |
$1,122 |
$24 |
Net nonoperating revenues |
$1,122 |
$24 |
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Income before other revenues, expenses, gains and losses |
$27,568 |
$78,835 |
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Grant – capital assets |
$0 |
$3,000 |
Increase in net assets |
$27,568 |
$81,835 |
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NET ASSETS |
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Net Assets – beginning of year |
$82,300 |
$465 |
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Net Assets – end of year |
$109,868 |
$82,300 |
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OTHER SIGNIFICANT ACCOUNT BALANCES |
AT JUNE 30, 2003 |
AT JUNE 30, 2002* |
Cash and Investments Total Assets Accounts Payable Total Liabilities Net Assets – Invested in capital assets Net Assets – Restricted Net Assets – Unrestricted Total Net Assets |
$110,993 $125,852 $15,984 $15,984 $14,859 $3,000 $92,009 $109,868 |
$82,300 $82,300 $0 $0 $0 $3,000 $79,300 $82,300 |
* The figures for FY2002 are unaudited and were obtained from the MD&A in the financial audit report. |
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EXECUTIVE DIRECTOR |
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During the audit: Mr. Raymond Lenzi Currently: Mr. Raymond Lenzi |
Generally Accepted Accounting Principles not being followed
Cash balance exceeded FDIC insured limit by $10,000
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FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS FINANCIAL STATEMENTS NOT PREPARED USING PROPER BASIS OF ACCOUNTING The Research Park prepared its financial statements on the cash basis of accounting. Accounting principles generally accepted in the United States of America (GAAP) require financial statements to be prepared on the accrual basis of accounting. Furthermore, the financial statements for the Research Park are included in the financial statements for the University, and should therefore be prepared on the same basis of the accounting. As a result, it was necessary for the auditors to propose adjusting journal entries to the Research Park to convert the financial statements to the accrual basis. Research Park personnel indicated that they were not aware of the standards requiring accrual basis financial statements. (Finding 1, page 13) We recommended and the Research Park officials agreed to prepare its financial statements using the accrual basis of accounting.
BANK ACCOUNT BALANCE EXCEEDED FDIC INSURED LIMIT The Research Park maintained a cash balance in a bank account that exceeded the FDIC insured limit of $100,000 for approximately one month at the end of the year. The Research Park converted its investments to cash and deposited the proceeds into a money market account, which caused the cash balance to exceed the FDIC insured limit by approximately $10,000. Research Park personnel indicated that this was a temporary situation. (Finding 5, page 17) We recommended and the Research Park officials agreed to monitor its cash flow and take the necessary steps to eliminate future excess balances.
OTHER FINDINGS The remaining findings were less significant and are reportedly being given attention by the Research Park. We will review progress toward implementing all recommendations in our next audit. Agency responses were provided by Mr. Raymond Lenzi, Executive Director for the Research Park.
AUDITORS' OPINION Our auditors stated the June 30, 2003 financial statements of the Research Park are fairly presented in all material respects.
___________________________________ WILLIAM G.HOLLAND, Auditor General WGH:KAL:pp
SPECIAL ASSISTANT AUDITORS Kerber, Eck & Braeckel LLP were our special assistant auditors for this engagement. |