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)

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..................................................

$39,862

3,428

 

†† 2,579,917

$ 2,623,207

 

$110,556

 

$2,084,961

136,466

291,224

$2,512,651

$†††††††††††††††

2,000

 

†† 2,348,561

$ 2,350,561

 

$64,821

 

$1,928,333

120,945

236,462

$2,285,740

ASSOCIATION OFFICIALS

During Audit Period: Michael Malone - Interim Executive Director (to 6/30/07)

Currently: Joseph Matty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Associationís 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 Associationís lack of a formal fraud prevention and detection program.

 

AUDITORSí OPINION

 

 

Our auditors state the Alumni Associationís 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.