REPORT DIGEST

 

NORTHERN ILLINOIS UNIVERSITY ALUMNI ASSOCIATION

 

FINANCIAL AUDIT

For the Year Ended:

June 30, 2007

AND

STATE COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2008

 

Summary of Findings:

Total this audit†††††††††††††††††††† 1

Total last audit†††††††††††††††††††† 2

Repeated from last audit††††† 1

 

 

Release Date:

April 30, 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 the Full Report are also available on

the worldwide web at

www.auditor.illinois.gov

 

 

 

 

 

 

 

 

INTRODUCTION

 

This digest covers our financial audit of the Northern Illinois University Alumni Association (Alumni Association) for the year ended June 30, 2008 and our State compliance examination of the Association for the two years ended June 30, 2008.

 

 

SYNOPSIS

 

®      The Alumni Association did not have a formal fraud risk assessment in place.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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

 

 

 

 


NORTHERN ILLINOIS UNIVERSITY ALUMNI ASSOCIATION

FINANCIAL AUDIT AND STATE COMPLIANCE EXAMINATION

For the Period Ended June 30, 2008

 

FINANCIAL OPERATIONS

FY 2008

FY 2007

REVENUES (Operating and Nonoperating)

Gifts.....................................................................

Royalties..............................................................

Program support from NIU President allocation

Investment income (loss)......................................

††††† Total revenues................................................

 

$57,314

45,371

†††† -

(104,421)

(1,736)

 

$55,050

68,256

10,000

340,147

473,453

EXPENSES

Scholarships and fellowships.................................

Alumni relations, outreach, events and travel.........

††††† Total expenses...............................................

 

Increase (Decrease) in Net Assets

 

43,000

358,525

401,525

 

$(403,261)

 

53,000

193,542

246,542

 

$226,911

STATEMENT OF NET ASSETS

AT JUNE 30, 2008

AT JUNE 30, 2007

Cash and cash equivalents....................................

Prepaid expenses and other receivables................

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

$42,205

††† 8

 

†† 2,223,897

†††2,266,110

 

†††† 156,720

 

1,706,227

123,585

††† 279,578

$2,109,390

$39,862

3,428

 

†† 2,579,917

†††2,623,207

 

†††† 110,556

 

2,084,961

136,466

291,224

$2,512,651

ASSOCIATION OFFICIALS

During Audit Period: Mr. Joseph Matty (as of July 1, 2007); Mr. Michael Malone (Interim) (through June 30, 2007)

Currently: Mr. Joseph Matty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


No formal fraud risk assessment program is in place

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Alumni Association disagreed with our recommendation

 

 


Auditorsí comment

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDING, CONCLUSION, AND RECOMMENDATIONS

 

††††††††††† FRAUD PREVENTION AND DETECTION PROGRAM

 

The Northern Illinois University Alumni Association (Alumni Association) did not have a formal fraud risk assessment program in place.

 

The Alumni Association relies on current internal controls that have been put in place as well as several other key policies and practices to prevent and detect fraud but has not established a formal program to assess the specific risks associated with fraud.

 

The Alumni Association is responsible for the development of internal controls and monitoring of their operating effectiveness.Additionally, it is managementís responsibility to establish reasonable controls to prevent and detect fraud.

 

Management officials stated they believe the Association has adequate policies and procedures in place to address fraud risks.(Finding 1, pages 10-11 in the compliance report)

 

We recommended that management establish and clearly document a continuous fraud prevention, deterrence and detection program.This program should include evaluating whether appropriate internal controls have been implemented in any areas identified as posing a higher risk of fraudulent activity.

 

The Alumni Association disagreed with our recommendation and stated that a great deal of time and effort has been invested in researching best practices and in creating and implementing policies and practices to prevent and detect fraud.

 

In an auditorís comment we noted that the Alumni Association was not able to provide any evidence during the course of our audit work that it had established a formal fraud risk assessment program.

 

AUDITORSí OPINION

 

 

Our auditors state the Alumni Associationís financial statements as of June 30, 2008 are fairly presented in all material respects.

 

 

 

 

††††††††††††††††† ______________________________________

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

 

†††††† WGH:JAF:pp

 

 

SPECIAL ASSISTANT AUDITORS

 

Our special assistant auditors for this audit were Clifton Gunderson, LLP.