REPORT DIGEST

 

THE ALUMNI ASSOCIATION OF SOUTHERN ILLINOIS UNIVERSITY AT EDWARDSVILLE

 

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2005

AND

FINANCIAL AUDIT

For the Year Ended:

June 30, 2005

 

Summary of Findings:

Total this audit             2

Total last audit             3

Repeated from last audit 2

 

Release Date:

March 23, 2006 

 

 

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

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

 

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

        The Alumni Association is operating without a written contract with the University as required by the Legislative Audit Commission University Guidelines.

 

        The Alumni Association does not have an investment policy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SOUTHERN ILLINOIS UNIVERSITY ALUMNI ASSOCIATION AT EDWARDSVILLE

FINANCIAL AND COMPLIANCE AUDIT

For The Two Years Ended June 30, 2005

 

FINANCIAL OPERATIONS (All Funds)

FY 2005

FY 2004

REVENUES

 

 

Operating revenues..............................................

$261,993

$287,873

 

 

 

EXPENSES

 

 

Operating expenses..............................................

$249,876

$284,530

 

 

 

Operating income...........................................

$12,117

$3,343

 

 

 

NONOPERATING REVENUES (EXPENSES)

 

 

Contributions.......................................................

$100

$35

Investment Income...............................................

$8,756

$6,593

Net change in fair value of investments..................

$6,687

$18,931

Net non-operating revenues............................

$15,543

$25,559

 

 

 

Increase in net assets......................................

$27,660

$28,902

 

 

 

NET ASSETS

 

 

Net Assets beginning of year.............................

$214,076

$185,174

 

 

 

Net Assets end of year......................................

$241,736

$214,076

 

 

 

OTHER SIGNIFICANT ACCOUNT BALANCES

AT JUNE 30,

2005

AT JUNE 30,

2004

Cash and Investments..................................................

Total Assets.............................................................

Deferred Revenue.......................................................

Total Liabilities........................................................

Net Assets Invested in capital assets.........................

Net Assets Unrestricted...........................................

Total Net Assets......................................................

$299,070

$316,999

$60,230

$75,263

$906

$240,830

$241,736

$261,850

$266,024

$37,660

$51,948

$1,992

$212,084

$214,076

EXECUTIVE DIRECTOR

During the audit: Mr. Remy Billups (through July 12, 2005)

Currently: Vacant

 



 

 

 

 

 

 

 

 

 

LAC University Guidelines not being followed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No investment policy in place

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

LACKING CONTRACT WITH UNIVERSITY

 

The Alumni Association does not have a written contract with Southern Illinois University that describes its relationship, services to be performed, and the associated costs with those services.

 

The Legislative Audit Commission University Guidelines 1982, as amended in 1997, require written contracts between the University and each of its university related organizations.

 

Alumni personnel believe that the Association is covered by the contract between the University and the Edwardsville Foundation, however we determined that the Alumni Association was not a party to this contract.

 

The University provided the Alumni Association with salaries and benefits totaling $172,598 and $173,546, in 2005 and 2004 respectively. (Finding 1, page 12)

 

We recommended and the Association agreed to reduce its relationship with the University to writing. Furthermore, the Association indicated that a contract with the University was finalized and subsequently signed, with an effective date of November 21, 2005.

 

LACKING POLICY REGARDING INVESTMENTS

 

The Alumni Association does not have an investment policy indicating the procedures, goals, and limits to be used during the investment decision-making process. Prudent business practices require such a policy.

 

Association personnel indicated that a policy has been drafted; however it has not yet been approved and implemented.

 

Investments in Fiscal Year 2005 totaled $233,646. (Finding 2, page 13)

 

We recommended and the Association agreed that an investment policy is necessary. The Association intends to develop an investment policy as it also addresses its strategic direction to best fit the needs of the University.

 

 

AUDITORS' OPINION

 

Our auditors stated the June 30, 2005 financial statements of the Association 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.