REPORT DIGEST

 

THE ALUMNI ASSOCIATION OF SOUTHERN ILLINOIS UNIVERSITY AT EDWARDSVILLE

 

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                       3

Total last audit                       0

Repeated from last audit        0

 

Release Date:

March 24, 2004

 

 

 

 

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

http://www.state.il.us/auditor

 

 

 

 

 

SYNOPSIS
  • The Alumni Association is operating without a written contract with the University as required by the Legislative Audit Commission University Guidelines.
  • The Alumni Association does not have an investment policy.
  • Scholarships funded by the Alumni Association were not properly supported.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOUTHERN ILLINOIS UNIVERSITY ALUMNI ASSOCIATION AT EDWARDSVILLE

                                   FINANCIAL AND COMPLIANCE AUDIT

                                     For The Two Years Ended June 30, 2003

 

FINANCIAL OPERATIONS (All Funds)

FY 2003

FY 2002

REVENUES

 

 

       Operating revenues

$290,378

$233,231

EXPENSES

 

 

       Operating expenses

$284,063

$210,843

       Operating income

$6,315

$22,388

NONOPERATING REVENUES (EXPENSES)

Contributions

$75

$760

Interest

$5,591

$6,052

Net decrease in the fair value of investments

($2,239)

($14,649)

Net nonoperating revenues

$3,427

($7,837)

Increase in net assets

$9,742

$14,551

NET ASSETS

 

 

Net Assets – beginning of year

$175,432

$160,881

Net Assets – end of year

$185,174

$175,432

OTHER SIGNIFICANT ACCOUNT BALANCES

AT JUNE 30,

2003

AT JUNE 30,

2002

Cash and Investments

Total Assets

Deferred Revenue

Total Liabilities

Net Assets – Invested in capital assets

Net Assets – Unrestricted

Total Net Assets

$216,031

$228,447

$38,400

$43,273

$3,079

$182,095

$185,174

$218,981

$220,243

$27,078

$44,811

$0

$175,432

$175,432

EXECUTIVE DIRECTOR

During the audit: Mr. Remy Billups

Currently: Mr. Remy Billups

 

 

 

 

 

 

 

 

LAC University Guidelines not being followed

 

 

 

 

 

 

 

 

 

No investment policy in place

 

 

 

 

 

 

 

 

 

 

100% of scholarships tested did not have adequate supporting documentation

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACKING CONTRACT WITH UNIVERSITY

The Alumni Association does not have a written contract with Southern Illinois University that describes its relationship, services to be performed, and the associated costs with those services.

The Legislative Audit Commission University Guidelines 1982, as amended in 1997, require written contracts between the University and each of its university related organizations.

Alumni personnel believe that the Association is covered by the contract between the University and the Edwardsville Foundation, however we determined that the Alumni Association was not a party to this contract.

The University provided the Alumni Association with salaries and benefits totaling $171,586 and $122,243, in 2003 and 2002 respectively. (Finding 1, page 12)

We recommended and the Association agreed to reduce its relationship with the University to writing.

LACKING POLICY REGARDING INVESTMENTS

The Alumni Association does not have an investment policy indicating the procedures, goals, and limits to be used during the investment decision-making process. Prudent business practices require such a policy.

Association personnel indicated that a policy has been drafted; however it has not yet been approved and implemented.

Investments in Fiscal Year 2003 totaled $193,029. (Finding 2, page 13)

We recommended and the Association agreed to implement an investment policy.

 

SCHOLARSHIP DISBURSEMENTS LACKING PROPER SUPPORT

The scholarship disbursement documentation maintained by the Association was insufficient to support that the recipient met all qualifying criteria to receive the scholarship. We tested 60 disbursements, 9 of which were for scholarships, and all 9 did not have appropriate documentation.

Supporting documentation for scholarship disbursements made by the Association (not those made on behalf of the Departments) do not reflect how the recipient was selected or the amount that was actually paid. The supporting evidence only included the recipient’s tuition bill.

Good business practices dictate that documentation exist to substantiate the selection of scholarship recipients and amounts awarded. Scholarships totaled $10,235 and $9,409, respectively, in 2003 and 2002. The exceptions we noted in our audit testing totaled $2,410 in FY 2003 and $600 in FY 2002. (Finding 3, page 14)

We recommended and the Association agreed to develop a policy regarding the maintenance of proper supporting documentation for scholarship disbursements.

 

AUDITORS' OPINION

Our auditors stated the June 30, 2003 financial statements of the Association 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 audit.