REPORT DIGEST

UNIVERSITY OF ILLINOIS

RESEARCH PARK, LLC

FINANCIAL AUDIT

For the Year Ended:

June 30, 2007

Release Date:

November 8, 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

SYNOPSIS

·        The Research Park did not prepare an accurate Statement of Cash Flows.

Expenditures and Activity Measures are summarized on the reverse page.}

FINANCIAL OPERATIONS

FY 2007

FY 2006

OPERATING REVENUES

      Budget Allocation University of Illinois.......................

      Service Income.........................................................

      Rental Income..........................................................

            Total..................................................................

OPERATING EXPENSES

      Salaries                                                                     

      Advertising................................................................

      Depreciation..............................................................

      Legal fees..................................................................

      Professional fees........................................................

      Services under 13^th amendment to Development       Agreement.................................................................

      Support for Enterprise Works....................................

      Support for Office of Vice Chancellor Research.........

      Other........................................................................

            Total...................................................................

OPERATING INCOME.............................................

NONOPERATING REVENUE..................................

INCREASE IN NET ASSETS.......................................

NET ASSETS - Beginning of Year..................................

NET ASSETS - End of Year..........................................

$309,312

392,360

158,033

$859,705

$101,511

26,074

28,304

37,640

65,770

41,274

19,847

106,326

30,725

$457,471

$402,234

$66

$402,300

$461,523

$863,823

$158,332

103,165

106,313

$367,810

$115,569

0

29,270

37,240

54,822

0

30,000

71,014

24,946

$362,861

$4,949

$19

$4,968

$456,555

$461,523

SELECTED ACCOUNT BALANCES

AT JUNE 30,

2007

AT JUNE 30,

2006

Cash..............................................................................

Accounts Receivable......................................................

Capital Assets................................................................

Lease Receivable............................................................

Accounts Payable...........................................................

$2,717

$20,000

$720,175

$173,054

$52,123

$3,156

$20,000

$669,567

$121,347

$352,547

EXECUTIVE DIRECTOR

During Audit Period: Mr. David Chicoine – July 1, 2006 – December 31, 2006, Interim Executive Director - Mr. James A. Weyhenmeyer – January 16, 2007 – present

Current: Mr. James A. Weyhenmeyer

Inaccuracies were brought to the attention of Research Park personnel

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INACCURATE STATEMENT OF CASH FLOWS

      The University of Illinois Research Park did not prepare an accurate Statement of Cash Flows.

      During our review of the Statement of Cash Flows we noted that the statement was prepared using the indirect method and contained inaccuracies in the preparation of the Statement.  These inaccuracies were brought to the attention of Research Park personnel so they could be corrected.  The Research Park was able to correct the Statement with our assistance. (Finding 1, Page 20)

      We recommended that the Research Park prepare an accurate Statement of Cash Flows in accordance with accounting principles generally accepted in the United States of America.

      Research Park officials stated that they agreed with the finding and that at the end of future fiscal years they will allow University financial reporting staff to review the cash flow statement for accuracy and method prior to final submission to the external auditors.

AUDITORS’ OPINION

      Our auditors stated the Company’s June 30, 2007 financial statements are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:TLK:pp

SPECIAL ASSISTANT AUDITORS

      Our special assistant auditors were Clifton Gunderson LLP.