REPORT DIGEST

 

THE SOUTHERN ILLINOIS UNIVERSITY RESEARCH PARK, INC. (CARBONDALE)

 

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2003

AND

FINANCIAL AUDIT

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                    5

Total last audit                    N/A

Repeated from last audit     N/A

 

Release Date:

March 24

 

 

 

 

 

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 TDD (217) 524-4646

 

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

 

SYNOPSIS

  • The Research Park did not prepare its financial statements using the proper basis of accounting.
  • The Research Park maintained a cash account with a bank balance greater than the Federal Deposit Insurance Corporation (FDIC) insured limit.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOUTHERN ILLINOIS UNIVERSITY RESEARCH PARK, INC. (CARBONDALE)

 

                                FINANCIAL AND COMPLIANCE AUDIT

                                   For The Two Years Ended June 30, 2003

 

FINANCIAL OPERATIONS (All Funds)

FY 2003

FY 2002*

REVENUES

 

 

Operating revenues

$30,000

$81,111

 

 

 

EXPENSES

 

 

Operating expenses

$3,554

$2,300

 

 

 

Operating income

$26,446

$78,811

 

 

 

NONOPERATING REVENUES (EXPENSES)

Investment Income

$1,122

$24

          Net nonoperating revenues

$1,122

$24

 

 

 

Income before other revenues, expenses, gains and losses

$27,568

$78,835

 

 

 

Grant capital assets

$0

$3,000

Increase in net assets

$27,568

$81,835

 

 

 

NET ASSETS

 

 

Net Assets beginning of year

$82,300

$465

 

 

 

Net Assets end of year

$109,868

$82,300

 

 

 

OTHER SIGNIFICANT ACCOUNT BALANCES

AT JUNE 30,

2003

AT JUNE 30,

2002*

Cash and Investments

Total Assets

Accounts Payable

Total Liabilities

Net Assets Invested in capital assets

Net Assets Restricted

Net Assets Unrestricted

Total Net Assets

$110,993

$125,852

$15,984

$15,984

$14,859

$3,000

$92,009

$109,868

$82,300

$82,300

$0

$0

$0

$3,000

$79,300

$82,300

* The figures for FY2002 are unaudited and were obtained from the MD&A in the financial audit report.

EXECUTIVE DIRECTOR

During the audit: Mr. Raymond Lenzi

Currently: Mr. Raymond Lenzi

 

 

 

 

 

 

Generally Accepted Accounting Principles not being followed

 

 

 

 

 

 

 

 

 

 

 

 

Cash balance exceeded FDIC insured limit by $10,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FINANCIAL STATEMENTS NOT PREPARED USING PROPER BASIS OF ACCOUNTING

The Research Park prepared its financial statements on the cash basis of accounting.

Accounting principles generally accepted in the United States of America (GAAP) require financial statements to be prepared on the accrual basis of accounting. Furthermore, the financial statements for the Research Park are included in the financial statements for the University, and should therefore be prepared on the same basis of the accounting.

As a result, it was necessary for the auditors to propose adjusting journal entries to the Research Park to convert the financial statements to the accrual basis.

Research Park personnel indicated that they were not aware of the standards requiring accrual basis financial statements. (Finding 1, page 13)

We recommended and the Research Park officials agreed to prepare its financial statements using the accrual basis of accounting.

 

BANK ACCOUNT BALANCE EXCEEDED FDIC INSURED LIMIT

The Research Park maintained a cash balance in a bank account that exceeded the FDIC insured limit of $100,000 for approximately one month at the end of the year.

The Research Park converted its investments to cash and deposited the proceeds into a money market account, which caused the cash balance to exceed the FDIC insured limit by approximately $10,000. Research Park personnel indicated that this was a temporary situation. (Finding 5, page 17)

We recommended and the Research Park officials agreed to monitor its cash flow and take the necessary steps to eliminate future excess balances.

 

OTHER FINDINGS

The remaining findings were less significant and are reportedly being given attention by the Research Park. We will review progress toward implementing all recommendations in our next audit.

Agency responses were provided by Mr. Raymond Lenzi, Executive Director for the Research Park.

 

AUDITORS' OPINION

Our auditors stated the June 30, 2003 financial statements of the Research Park are fairly presented in all material respects.

 

 

___________________________________

WILLIAM G.HOLLAND, Auditor General

WGH:KAL:pp

 

SPECIAL ASSISTANT AUDITORS

Kerber, Eck & Braeckel LLP were our special assistant auditors for this engagement.