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REPORT DIGEST NORTHERN ILLINOIS UNIVERSITY FOUNDATION FINANCIAL
AUDIT For the Year Ended: June 30, 2007 Summary of Findings: (Financial Audit) Total this audit 3 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 Full
Report are also available on the worldwide web at http://www.auditor.Illinois.gov |
INTRODUCTION This report contains findings pertaining to the
Financial Statement Audit. The report
contains three audit findings. These
findings pertain to significant deficiencies in internal control over
financial reporting. SYNOPSIS(Financial Statement Findings) ¨ The Northern Illinois University Foundation 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
FOUNDATION
FINANCIAL AUDIT
For the Year Ended June 30, 2007
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FINANCIAL OPERATIONS (ALL FUNDS) |
FY
2007 |
FY
2006 |
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REVENUES
(Operating and Nonoperating) Gifts..................................................................... Investment Income............................................... Services Contract Revenue from NIU................... All Other Income................................................. Total
Revenues.............................................. |
$10,380,218 7,039,198 538,690
782,928 $18,741,037 |
$13,919,238 3,565,157 523,074
395,455 $18,402,924 |
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EXPENSES Support for University Departments and Programs Fundraising.......................................................... Foundation
Operations and Administration............ Scholarships and Fellowships............................... Building and Land Transferred to University.......... Total Expenses..................................................... Increase in Net Assets |
$5,090,758 2,059,719 1,340,032 1,120,160
$ 9,610,669
$9,130,365 |
$7,173,855 1,056,756 1,126,830 736,494
5,549,024 $15,642,959
$2,759,965 |
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STATEMENT
OF NET ASSETS |
AT
JUNE 30, 2007 |
AT
JUNE 30, 2006 |
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Cash and Cash Equivalents................................... Investments.......................................................... Capital assets....................................................... Building Construction in Progress.......................... Other Assets........................................................ Total Assets......................................................... Accounts Payable and Accrued Liabilities............. Bonds and Notes Payable.................................... Deposits Held
for NIU Alumni Association........... Endowment Administered for NIU....................... Other Liabilities.................................................... Total Liabilities..................................................... Net AssetsUnrestricted ........................................................ Restricted Nonexpendable................................... Restricted Expendable.......................................... Invested in capital assets....................................... Total Net Assets.................................................. |
$ 455,540 62,343,683 4,937,552 11,079,315
5,015,620 $83,831,710 $2,760,118 9,851,215 2,579,917 3,602,897
735,296 $19,529,443
$5,370,717 35,048,337 18,945,661 4,937,552 $64,302,267 |
$ 4,727,117 49,158,409 4,259,237 832,265
4,158,770 $63,135,798 $1,101,290 1,410,319 2,332,380 2,913,882
206,025 $7,963,896
$5,367,120 29,900,664 15,644,881 4,259,237 $55,171,902 |
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FOUNDATION PRESIDENT |
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During Audit
Period: Mallory M. Simpson Currently: Mallory M. Simpson |
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Incomplete and inaccurate financial
statements Construction period interest not
capitalized Note disclosure changes Foundation attributes conditions to
insufficient resources, timeline pressure and complex transactions
Foundation agrees with auditors |
FINDING, CONCLUSION, AND
RECOMMENDATIONS
FINANCIAL
STATEMENT PREPARATION The Foundation
did not provide the auditors with complete and accurate financial statements
and disclosures presented in accordance with generally accepted accounting
principles. Upon initial
review of the draft statements provided by Foundation personnel, we raised
various questions and made suggestions regarding the accounting for and/or
presentation of the following accounts, transactions and disclosures. They included: ·
An adjustment
to capitalize construction period interest in the amount of $389,945. This change resulted in net changes to the
cash flows statement. ·
Modification
to note disclosures for required information. Some of the necessary changes addressed:
·
The amount of
accrued compensated absences reported was overstated by $71,064. According to
Foundation personnel, a number of factors contributed to this result. Significant new and complex transactions,
balancing insufficient resources and timeline pressure led to a less than
optimal process for review. (Finding
1, pages 5-6) We recommended
the Foundation review its current process for preparation and review of the
annual financial statements. Foundation
officials agreed with our recommendation and stated that it would carefully
review the opportunities to improve the financial reports. OTHER FINDINGS The other
findings concerned the Foundation’s lack of a formal capitalization policy
and lack of a formal fraud prevention and detection program. AUDITORS’ OPINION
Our auditors state the Foundation’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. |