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REPORT DIGEST CHICAGO STATE UNIVERSITY FOUNDATION FINANCIAL
AUDIT For
the One Year Ended: June
30, 2006 Summary of FindingsTotal last audit 1 Repeated from last audit 0 Release Date: February 21, 2007
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 |
SYNOPSIS
· The Foundation did not prepare an accurate Statement of Cash Flows. · The Foundation maintained deposits in excess of the Federal Deposit Insurance Corporation (FDIC) coverage and pledged collateral. |
CHICAGO STATE UNIVERSITY
FOUNDATION
For
the Year Ended June 30, 2006
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FINANCIAL OPERATIONS (ALL FUNDS) |
FY 2006 |
FY 2005 |
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REVENUES EXPENSES Operating expenses........................................................ Operating loss.......................................................... NONOPERATING REVENUES (EXPENSES) CRCP grant................................................................... Contributions.................................................................. Investment income.......................................................... In-kinds CSU................................................................. Net nonoperating revenues....................................... Income before other revenues, expenses, gains and losses....................................................................... Endowment contributions................................................ Debt write-off CSU........................................................ Total other revenues, expenses, gains and losses Increase in net assets................................................ NET ASSETS Net Assets – beginning of year........................................ Net Assets – End of year............................................... |
$953,896 $1,660,623 ($706,727) $0 990,097 100,973 (14,611) $1,076,459 $369,732 $17,198 0 $17,198 $386,930 $2,820,607 $3,207,537 |
$664,191 $2,112,389 ($1,448,198) $750,000 763,617 94,215 (19,391) $1,588,441 $140,243 $408,634 100,000 $508,634 $648,877 $2,171,730 $2,820,607 |
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OTHER SIGNIFICANT ACCOUNT BALANCES |
At June 30, 2006
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At June 30, 2005
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Total Assets...................................................................... Total Liabilities................................................................. Net Assets – Restricted – Expendable.................................. Net Assets – Unrestricted ................................................... Total Net Assets............................................................... |
$5,300,389 $5,678,927 $2,120,726 $2,471,390 $1,871,390 $886,367 $449,780 $3,207,537 |
$3,039,118 $3,103,380 $145,377 $282,773 $1,847,690 $735,091 $237,826 $2,820,607 |
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FOUNDATION EXECUTIVE DIRECTOR |
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During Audit Period: Mr. Marquis Miller Currently – Mr. Marquis Miller |
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Inaccuracies were brought to the attention of Foundation personnel
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FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
INACCURATE STATEMENT OF CASH FLOWS The Foundation did not prepare an accurate Statement of Cash Flows. During our audit of the Statement of Cash Flows we noted certain inaccuracies in the preparation of the Statement. These inaccuracies were brought to the attention of Foundation personnel so they could be corrected. The Foundation was able to correct the Statement with auditor assistance. (Finding 1, Page 8) We recommended that the Foundation prepare an accurate Statement of Cash Flows in accordance with accounting principles generally accepted in the United States of America. Foundation officials stated that they concur with the finding and that they will utilize the account change analysis as a means of verifying the accuracy of the Statement of Cash Flows activity.
UNCOLLATERALIZED DEPOSIT ACCOUNTS The Foundation maintained deposits in excess of the Federal Deposit Insurance Corporation (FDIC) coverage and pledged collateral. The Foundation’s deposits (bank balances) at various financial institutions totaled $3,806,539 at June 30, 2006. These deposits exceeded the amount of FDIC coverage by $951,829. (Finding 2, Page 9) We recommended that the Foundation amend its investment policy to include obtaining sufficient collateral to cover its uninsured deposits. Foundation officials stated that they will recommend to their Board to amend its investment policy to require collateralization for deposits in excess of insurance coverage. AUDITORS' OPINION Our auditors stated the June 30, 2006 financial statements of the Chicago State University Foundation are fairly presented in all material respects. ____________________________________ WILLIAM G. HOLLAND, Auditor General
WGH:TLK:pp SPECIAL ASSISTANT AUDITORS Nykiel Carlin & Co., LTD were our special assistant auditors for this audit. |