REPORT DIGEST

IMSA FUND FOR ADVANCEMENT OF EDUCATION

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For the Year Ended June 30, 2011

Release Date: January 11, 2012

Summary of Findings:

Total this audit: 1

Total last audit: 1

Repeated from last audit: 1

State of Illinois, Office of the Auditor General

WILLIAM G. HOLLAND, AUDITOR GENERAL

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This Report Digest and Full Report are also available on the worldwide web at www.auditor.illinois.gov

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SYNOPSIS

• The IMSA Fund for Advancement of Education did not initially properly report its cash and investments and net asset classifications on its June 30, 2011 financial statements.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FINANCIAL STATEMENT RECLASSIFICATIONS

The IMSA Fund for Advancement of Education (Fund) did not initially properly report its cash and investments and net asset classifications on its June 30, 2011 financial statements.

During our audit we noted the following financial statement reporting matters that required reclassification:

• The Fund incorrectly reported $284,263 of certificates of deposit with original maturity dates of greater than three months as cash equivalents instead of investments in the Statement of Net Assets. After the auditors’ brought this matter to their attention, the Fund reclassified its certificates of deposit to investments.

• The Fund initially included $19,477 of earnings on its permanent endowments in the net asset category “Restricted Net Assets, Nonexpendable.” The language of these written endowments clearly allows the earnings on the assets to be expended in accordance with the terms of the agreement. After the auditors’ brought this to their attention, the Fund corrected this reporting error and has reported the earnings in the net asset category “Restricted Net Assets, Expendable.” (Finding 1, page 10)

We recommended management thoroughly review its financial statements and verify amounts in order to ensure the financial statements are properly presented in accordance with accounting principles generally accepted in the United States of America.

Management responded that it acknowledges the finding, made all the reclassifications and resubmitted its financial statements to the auditors. In total, the Net Assets of the Fund were reported correctly on the year-end financial statements.

AUDITORS’ OPINION

Our auditors reported the June 30, 2011 financial statements of the IMSA Fund for Advancement of Education are fairly presented in all material respects.

WILLIAM G. HOLLAND

Auditor General

WGH:CMB

AUDITORS ASSIGNED

Our special assistant auditors for this audit were Borschnack, Pelletier & Co.