REPORT DIGEST

 

IMSA FUND FOR THE ADVANCEMENT OF EDUCATION

 

FINANCIAL AUDIT

 

For the Year Ended:

June 30, 2008

 

 

Summary of Findings:

 

Total this audit††††††††††      ††† 1

Total last audit††††††      ††††††† 1

Repeated from last audit     0

 

Release Date:

June 25, 2009

 

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 IMSA Fund for Advancement of Education (Fund) did not have sufficient controls over the financial reporting process.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

 

 

 

IMSA FUND FOR ADVANCEMENT OF EDUCATION

FINANCIAL AUDIT

For the Year Ended June 30, 2008

 

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSET

FY 2008

FY 2007

REVENUES

Operating Revenues:

  Contributions...........................................................

†† Operating Agreement with Academy.....................

Investment Income...............................................

Other Operating Revenues....................................

Total Operating Revenues...........................................

 

EXPENSES

Operating Expenses

Academy Support...................................................

Management and General........................................

Fund Raising...........................................................

†† Operating Agreement with Academy......................

Total Operating Expenses..............................................

 

Other Revenues and Expenses

 

Changes in Net Assets.......................................................

 

 

 

††††† $ †††††942,839

271,924

115,087 

††††††††† 42,789††

††† $† †1,372,639

 

 

 

††† $†††† †561,977

101,563

47,122††

††† ††††††††††271,924

$†††† 982,586††

 

6,229

 

†† $ ††††396,282 

 

 

 

††††† $ 1,148,553

208,807

115,305

†††††††††† 9,258††

††† $1,481,923

 

 

 

††† $†††† 607,198††

56,423

85,402

†††††† 208,807

††† $†††† 957,830

 

179,447

 

†† $†††† 703,540

 

STATEMENT OF NET ASSETS

†† FY 2008

†† FY 2007

Assets:

Cash and Cash Equivalents.....................................

Investments............................................................

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

Prepaid Expenses...................................................

Pledges Receivable.................................................

Total Assets..................................................................

 

Liabilities:

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

Total Liabilities.............................................................

 

Net Assets.........................................................................

 

††††† $†††† 763,356††

3,149,798††

138,157

5,423

†††††† 186,118††

††† $4,242,852

 

 

††† $†††††† 43,400

$†††††† 43,400

  

†† $4,199,452

 

 

††††† $  783,095

2,860,345

32,008

4,183

††† †††143,149 

$ 3,822,780

 

 

$†††††† 19,610

††† $      19,610

 

††††† $ 3,803,170

 

FUND AGENT

 

††††† During Period:Suzyn Price

††††† Currently:Suzyn Price

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Numerous adjustments to the financial statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

INSUFFICIENT CONTROLS OVER FINANCIAL REPORTING

 

The IMSA Fund for Advancement of Education (Fund) did not have sufficient controls over the financial reporting process.

 

During testing, numerous adjustments were required to be made.The adjustments were as follows:

 

        The Fund included two items, totaling $25,792, in both accounts payable and due to IMSA.As a result, the Fund overstated both accounts payable and academy support expenses.

 

        During FY08, the Fund made changes to reflect the estimated value of non-cash compensation provided by the Illinois Mathematics and Science Academy (Academy) to the Fund which were not previously recorded. As a result, the operating agreement with the Academy increased by $20,794.

 

        The Fund received a deposit for one of the three endowment accounts during FY08.The receipt was deposited into the restricted account but recorded as a contribution to permanent endowment.As a result, the Fund understated restricted contributions by $1,000 and overstated contributions to permanent endowment by $1,000.

 

        There were two instances in which the Fundís financial statements did not match their audited trial balance:

o                Unrestricted net assets were overstated by $6,151 and restricted/endowment net assets were understated by $6,151.

o                Cash was overstated by $656 and investments were understated by $656.

 

      As a result of the above adjustments, restricted net assets was understated by an additional $25,792.

 

Failure to apply the applicable accounting principles generally accepted in the United States of America could result in misstatements in the financial statements. (Finding 1, page 25-26)

 

We recommended internal controls over financial reporting be strengthened to ensure presentation of financial reports including financial report components are in accordance with generally accepted accounting principles.

 

The Fund agreed with the finding and stated they have initiated enhanced internal controls over the course of the current fiscal year to address auditor findings.

 

 

 

AUDITORSí OPINION

 

††††† Our auditors stated the June 30, 2008 financial statements of the IMSA Fund for Advancement of Education are fairly presented in all material respects.

 

 

 

 

__________________________________

†††††††††† WILLIAM G. HOLLAND, Auditor General

WGH:AKS

 

 

AUDITORS ASSIGNED

 

†††††††††† This audit was performed by the Office of the Auditor Generalís staff.