REPORT DIGEST

CHICAGO STATE UNIVERSITY
FOUNDATION

COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 1999

FINANCIAL AUDIT

For the Year Ended:
June 30, 1999

Summary of Findings:

Total this audit 1
Total last audit 16
Repeated from last audit 1

Release Date:
April 20, 2000

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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

 

 

 

 

 

 

 

 

 

 

SYNPOSIS

 

 

  • The Foundation's Board Designated Fund has a negative fund balance of $437,000.

 

 

 

 

CHICAGO STATE UNIVERSITY FOUNDATION
FINANCIAL AND COMPLIANCE AUDIT
For The Two Years Ended June 30, 1999

FINANCIAL OPERATIONS (CURRENT FUNDS)

FY 1999

FY 1998

REVENUES
Contributions
Investment and Dividends
Other Revenue
Total Revenue
EXPENDITURES
Direct Program
Scholarships
University Support
Other Expenditures
Total Expenditures


$ 762,161
289,157
23,820
$ 1,075,138


$ 581,190
60,557
53,213
23,820
$ 719,500


$ 965,602
73,765
0
$1,039,367


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

BALANCE SHEET (ALL FUNDS)

JUNE 30, 1999

JUNE 30, 1998

ASSETS
Cash and Investments
Trust Funds
Other Assets
Total Assets
LIABILITIES AND FUND BALANCES
Liabilities
Fund Balances
Unrestricted
Restricted
Total Liabilities and Fund Balances


$418,676
1,386,271
147,825
$1,952,772


$343,289

69,815
1,539,668
$1,952,772


$890,891
564,091
4,884
$1,459,866

$206,021

(68,849)
1,322,694
$1,459,866

FOUNDATION EXECUTIVE DIRECTOR
During Audit Period: Mr. Katey' Assem
Currently: Mr. Katey' Assem
 

 

 

Continued existence of negative fund balance in restricted fund

FINDING, CONCLUSION, AND RECOMMENDATION

NEGATIVE FUND BALANCES

The Foundation's Board Designated Fund has a negative fund balance of $437,000. The continued existence of a negative fund balance in this restricted fund could raise concerns about the Foundation's ability to meet its ongoing operating expenditures. (Finding 1, page 14). This finding has been repeated since 1995.

We recommended the Foundation establish a plan to properly address the deficit and more closely monitor expenditures.

The University's President, Elnora D. Daniel, responded that the Foundation will make transfers from unrestricted fund accounts to cover the negative fund balances. Additionally, the Finance Committee will look at ways to increase fundraising activities so that negative balances will be eliminated completely. (For previous Agency responses, see Digest Footnote #1.)

PRIOR FINDINGS

Fifteen of the 16 prior audit findings and recommendations were either implemented or not repeated.

AUDITORS’ OPINION

Our auditors state the financial statements of Chicago State University Foundation as of June 30, 1999 and for the year then ended are fairly presented in all material respects.

 

___________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

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

DIGEST FOOTNOTE

#1 NEGATIVE FUND BALANCE - Previous Agency Responses

1998: The Foundation concurs. The Finance Committee of the Foundation is addressing this issue.
1997: The Foundation concurs. The administrative expenses of the Foundation make up most of the Board Designated Funds' fund balance. The growth of the Board Designated Fund's negative balance has been slowed during the fiscal year 1997. Its overall percentage of the total fund balance has decreased from FY 96. The Finance/Investment committee will be addressing the issue of funding the administrative expenses.
1995: Subsequent to the audit, the Foundation conducted a fund-raising gala which grossed over $525,000.00. The fund-raising gala is expected to be an annual event. In addition to the fund-raisers, efforts are underway to identify funds to cover administrative expenses of the Foundation. These steps, in conjunction with tighter monitoring of expenditures, should address the issue of Board Designated Fund Balance deficit.