REPORT DIGEST

CHICAGO STATE
UNIVERSITY
FOUNDATION

FINANCIAL AUDIT
For the Year Ended:
June 30, 1998



Summary of Findings:

Total this audit 3
Total last audit 16
Repeated from last audit 3

Release Date:
May 20, 1999


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
Attn: Records Manager
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 Foundation did not develop and use an accounting manual and chart of accounts or maintain a complete general ledger.

The Foundation was unable to produce evidence that a formal budget was prepared or approved by the Board of Directors.

 

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


CHICAGO STATE UNIVERSITY FOUNDATION
FINANCIAL AUDIT
For the Two Years Ended June 30, 1998


FINANCIAL OPERATIONS (ALL FUNDS)

FY 1998

FY 1997

REVENUES
Contributions
Investment Revenue
Other Revenue
Total Revenue

EXPENDITURES
Scholarships
University Support (Administration)
Special Projects
Direct Program
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES


$965,602
73,765
-
$1,039,367


$67,608
71,831
0
498,904
$638,343


$401,024


$764,961
35,407
-
$800,368


$53,389
85,411
1,578
553,362
$693,740


$106,628

SELECTED ACCOUNT BALANCES
(ALL FUNDS)

AT JUNE 30,
1998

AT JUNE 30,
1997

Cash $127,024 $180,902
Certificate of Deposit $763,877 $189,216
Ernest T. Collins Trust $564,091 $508,825
Fund Balance:
Unrestricted

$(68,849)

$121,512
Restricted $1,322,694 $731,309

FOUNDATION EXECUTIVE DIRECTOR

During Audit Period: Ms. Vicki Wilson (Acting)
Currently: Mr. Katey'Assem







































Foundation failed to maintain a complete general ledger














Foundation failed to prepare a formal budget

 

 

 

 

 

 

 

 

 

INTRODUCTION

 
We performed a financial audit of Chicago State University Foundation for the year ending June 30, 1998. Because many of the prior audit compliance findings related to weak internal controls over accounting and administrative functions, we performed follow-up procedures to determine the status of the Foundation's efforts to implement our recommendations.
 

FINDINGS, CONCLUCIONS, AND RECOMMENDATIONS

INADEQUATE ACCOUNTING SYSTEM
 
The Foundation did not develop and use an accounting manual and chart of accounts or maintain a complete general ledger. The Foundation maintained 133 accounts in its general ledger but did not document the purpose of 121 of the accounts. In addition, no activity was recorded in 94 of the accounts during FY 98. (Finding 98-1, pages 5-6)
 
We recommended the Foundation review the current chart of accounts and remove obsolete accounts. We also recommended the Foundation implement a general ledger with corresponding controls and supporting books and records.
 
Foundation officials responded they have implemented a new accounting system including a new chart of accounts and an accounting manual.
 
NO BUDGET APPROVED BY THE BOARD
 
The Foundation was unable to provide evidence that a formal budget was prepared or approved by the Board of Directors for fiscal years 1996 and 1997 and 1998.
 
According to Article VI section 1(a) of the Foundation's by-laws, "The Executive Committee shall prepare a budget covering the anticipated expenses of the Foundation for the succeeding year." (Finding 98-2, page 7)
 
We recommended the Foundation establish effective procedures to ensure a budget is prepared, approved by the Board of Directors and monitored during the fiscal year.
 
Foundation officials stated that a formal budget was approved for Fiscal Year 1999 and that to properly monitor the revenues and expenditures, a quarterly report comparing "actual to budget" is being presented to the Board for review at all FY 99 quarterly meetings.
 
OTHER FINDING
 
The remaining finding is being addressed and the Foundation has described planned corrective action. We will review progress toward implementation of our recommendations in our next audit. Responses to the findings and recommendations were provided by Mr. Srini Rao.
 

AUDITORS' OPINION

Our auditors state the financial statements of Chicago State University Foundation at June 30, 1998 are fairly presented except for the effects of adjustments, if any, as might have been determined to be necessary had they been able to examine evidence regarding Year 2000 disclosures.
 

___________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:JTD:pp
 

SPECIAL ASSISTANT AUDITORS

Washington, Pittman, and McKeever, LLC were our special assistant auditors for this audit.