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REPORT DIGEST NORTHERN ILLINOIS UNIVERSITY ALUMNI ASSOCIATION FINANCIAL
AUDIT For the Year Ended: June 30, 2007 Summary of Findings: (Financial Audit) Total this audit 2 Total last audit 0 Repeated from last audit 0 Release Date: March 25, 2008
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 the
Full Report are also available on the worldwide web at www.auditor.illinois.gov |
INTRODUCTION This report contains findings pertaining to the
Financial Statement Audit. The report
contains two audit findings. These
findings pertain to significant deficiencies in internal control over
financial reporting.
SYNOPSIS(Financial Statement Finding) ¨ The Northern Illinois University Alumni Association did not provide the auditors with complete and accurate financial statements and disclosures presented in accordance with generally accepted accounting principles. {Expenditures and Activity
Measures are summarized on the reverse page.} |
NORTHERN ILLINOIS UNIVERSITY ALUMNI
ASSOCIATION
FINANCIAL AUDIT
For the Year Ended June 30, 2007
|
FINANCIAL OPERATIONS (ALL FUNDS) |
FY
2007 |
FY
2006 |
|
REVENUES
(Operating and Nonoperating) Gifts..................................................................... Royalties.............................................................. Program Support from NIU President Allocation Investment Income............................................... Total
Revenues.............................................. |
$55,050 68,256 10,000 340,147 $473,453 |
$19,856 51,133
183,930 $254,919 |
|
EXPENSES Scholarships and Fellowships............................... Alumni relations, outreach, events and travel.........
Total Expenses............................................... Increase (Decrease) in Net Assets |
$53,000 193,542 $246,542 $226,911 |
$46,000 266,925 $312,925 ($58,006) |
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STATEMENT
OF NET ASSETS |
AT
JUNE 30, 2007 |
AT
JUNE 30, 2006 |
|
Cash and cash equivalents.................................... Prepaid Expenses................................................. Cash and Investments Administered by NIU Foundation..................................................... Total Assets......................................................... Total Liabilities..................................................... Unrestricted Net Assets....................................... Restricted Non-expendable Net Assets................ Restricted Expendable Net Assets........................ Total Net Assets.................................................. |
2,579,917 $ 2,623,207 $110,556 $2,084,961 136,466 291,224 $2,512,651 |
2,348,561 $ 2,350,561 $64,821 $1,928,333 120,945 236,462 $2,285,740 |
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ASSOCIATION OFFICIALS |
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During Audit Period: Michael
Malone - Interim Executive Director (to 6/30/07) Currently: Joseph
Matty |
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Incomplete and inaccurate financial
statements
Reconciliation out of balance
Note disclosure changes Association attributes conditions to
insufficient resources and timeline pressure
Association agrees with auditors |
FINDING, CONCLUSION, AND
RECOMMENDATIONS
FINANCIAL
STATEMENT PREPARATION The Association
did not provide the auditors with complete and accurate financial statements
and disclosures presented in accordance with generally accepted accounting
principles. During our
audit of the Association’s financial statements, we made suggestions to
correct the presentation of the cash flows statement reconciliation of net
operating loss to cash flow from operating activities. The reconciliation was out of balance by
$242,097. In addition,
required disclosures to the notes to the financial statements were added or
modified for the following areas: 1.
Disclosures
for cash and investments. 2.
Policy
regarding application of Financial Accounting Standard Board (FASB)
statements issued prior to November 30, 1989. 3.
Policy
regarding whether first to apply restricted or unrestricted net assets when
an expense is incurred for purposes for which both restricted and
unrestricted net assets are available. According to
Association personnel, a number of factors contributed to this result. Insufficient resources and timeline
pressure led to a less than optimal process for review. (Finding 1, pages 5-6). We recommended
the Association review its current process for preparation of annual
financial statements. Alumni
Association officials agreed with our recommendation and stated that it would
carefully review the opportunities to improve the financial reports. OTHER FINDING The other
finding concerned the Alumni Association’s lack of a formal fraud prevention
and detection program. AUDITORS’ OPINION
Our auditors state the Alumni Association’s financial statements as of June 30, 2007 are fairly presented in all material respects. ______________________________________ WILLIAM G. HOLLAND, Auditor General WGH:JAF:pp SPECIAL ASSISTANT AUDITORS
Clifton Gunderson, LLP were our special assistant auditors on this audit. |