REPORT DIGEST

SOUTHERN ILLINOIS

RESEARCH PARK, INC. (CARBONDALE)

FINANCIAL AUDIT

For the Year Ended:

June 30, 2008

Release Date:

December 9, 2008

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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740 E. Ash Street

Springfield, IL 62703

782-6046 or TTY (888) 261-2887

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SYNOPSIS

· The Southern Illinois Research Park, Inc. posted an adjustment totaling $10,500 to correct a misstatement in recording refundable security deposits.

SOUTHERN ILLINOIS RESEARCH PARK, INC.

FINANCIAL AUDIT

For The Year Ended June 30, 2008

FINANCIAL OPERATIONS (All Funds)	FY 2008	FY 2007
REVENUES
Operating revenues..............................................	$309,070	$256,866

EXPENSES
Operating expenses..............................................	$343,319	$249,097

Operating income (loss)..................................	($34,249)	$7,769

NONOPERATING REVENUES
Interest Income..........................................................	$5,048	$2,910
Grant Income.............................................................	-	$18,718
Total non-operating revenues................................	$5,048	$21,628

Increase (decrease) in net assets.................................	($29,201)	$29,397

NET ASSETS
Net Assets – beginning of year...................................	$389,626	$360,229

Net Assets – end of year............................................	$360,425	$389,626

OTHER SIGNIFICANT ACCOUNT BALANCES	AT JUNE 30, 2008	AT JUNE 30, 2007
Cash .......................................................................... Deposits with SIU....................................................... Capital Assets, net....................................................... Total Assets.............................................................. Accounts Payable........................................................ Deferred Revenue and refundable deposits................... Total Liabilities......................................................... Net Assets – Invested in capital assets......................... Net Assets – Unrestricted............................................ Total Net Assets.......................................................	$58,003 $97,033 $235,405 $393,841 $- $33,416 $33,416 $235,405 $125,020 $360,425	$55,262 $101,749 $266,481 $425,283 $6,926 $28,731 $35,657 $266,481 $123,145 $389,626
INTERIM EXECUTIVE DIRECTOR
During the audit: Mr. Kyle Harfst Currently: Mr. Kyle Harfst

Adjustment posted totaling $10,500

Additional review of transactions needed

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CONTROLS OVER FINANCIAL REPORTING

During the current year audit, the Research Park posted an adjustment to record refundable security deposits totaling $10,500, resulting in a decrease in rent revenue and an increase in liabilities. It appears that this misstatement was a result of an erroneous journal entry which recognized all rent related liabilities from the period year, including refundable security deposits. It is management’s responsibility to have internal controls in place to provide appropriate and reliable financial reports and to select and apply appropriate principles.

Management stated the error was caused by a lack of review and communication between management and the contract accounting firm regarding the details of the transactions. There was no documentation of the journal entry report having been reviewed. (Finding 1, page 20)

We recommended that an individual independent of initiating and posting general journal entries review and approve journal entries on a periodic basis. The Executive Director should physically review the journal entries list on a quarterly basis and sign-off on the list. We also recommended that a separate general ledger account be created to differentiate between prepaid rent liability and the refundable security deposit liability.

Research Park officials agreed with our recommendation.

AUDITORS’ OPINION

Our auditors stated the June 30, 2008 financial statements of the Southern Illinois Research Park, Inc. are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Crowe Horwath LLP were our special assistant auditors for this audit.