Summary of Findings

Total this audit 1

Total last audit 1

Repeated from last audit 0

Release Date:

December 18, 2008

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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SYNOPSIS

· The Foundation maintained deposits in excess of the Federal Deposit Insurance Coverage, did not maintain proper controls over bank accounts, and did not perform timely reconciliations for all bank accounts.

CHICAGO STATE UNIVERSITY FOUNDATION

FINANCIAL AUDIT

For the Year Ended June 30, 2008

FINANCIAL OPERATIONS (ALL FUNDS)	FY 2008	FY 2007
REVENUES Operating revenues......................................................... EXPENSES Operating expenses........................................................ Operating loss.......................................................... NONOPERATING REVENUES (EXPENSES) Contributions.................................................................. Investment income.......................................................... Interest expense.............................................................. Bad debt expense........................................................... In-kinds CSU................................................................. Net nonoperating revenues.............................................. Income (loss) before other revenues, expenses, ........ gains and losses........................................................ Endowment contributions................................................ Total other revenues, expenses, gains and losses Increase (decrease) in net assets............................... NET ASSETS Net Assets – beginning of year Net Assets – End of year	$657,314 $1,654,779 ($997,465) $721,122 50,509 (1,797) (35,898) (5,390) $728,546 ($268,919) $3,250 $3,250 ($265,669) $5,388,295 $5,122,626	$754,485 $1,769,641 ($1,015,156) $2,934,204 300,140 1,340 0 (41,408) $3,191,596 $2,176,440 $4,318 $4,318 $2,180,758 $3,207,537 $5,388,295
OTHER SIGNIFICANT ACCOUNT BALANCES	At June 30, 2008	At June 30, 2007
Cash and Investments Total Assets Accounts Payable and other liabilities Total Liabilities Net Assets – Restricted-Nonexpendable Net Assets – Restricted – Expendable Net Assets – Unrestricted Total Net Assets	$4,096,852 $5,865,072 $252,862 $742,446 $2,054,725 $2,393,563 $674,338 $5,122,626	$5,354,897 $6,515,777 $588,821 $1,127,482 $2,117,156 $2,825,653 $445,486 $5,388,295
FOUNDATION EXECUTIVE DIRECTOR
During Audit Period: Mr. Marquis Miller (7-1-07 thru 4-14-08), Ms. Yvette Clayton - Acting Executive Director (4-15-08 thru 4-30-08) Mr. Katey Assem (5-1-08 thru current)

Internal controls over bank accounts need improvement

Deposits exceeded FDIC coverage by $25,313

Bank reconciliations were performed untimely

Authorized signers were not updated timely

Foundation officials agreed with the finding and recommendation

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

UNCOLLATERALIZED DEPOSIT ACCOUNTS AND UNTIMELY BANK RECONCILIATIONS

The Foundation maintained deposits in excess of the Federal Deposit Insurance Coverage (FDIC), did not maintain proper controls over bank accounts, and did not perform timely reconciliations for all Foundation bank accounts.

During our audit we noted the following:

· The Foundation’s deposits (bank balances) at various financial institutions totaled $2,191,191 at June 30, 2008. These deposits exceeded FDIC coverage by $25,313.

· All twelve of the bank reconciliations that were required to be performed throughout the fiscal year were performed untimely. They were performed between 5 and 277 days late. In addition, 10 of 12 bank reconciliations were not initialed by the person performing the bank reconciliation nor the reviewer.

· Four of the twelve bank, certificate of deposit and investment accounts had authorized signers that were no longer employees of the Foundation or the University. The authorized signers were changed on these accounts 4 to 7 months after the personnel changes occurred. (Finding 1, Pages 22-23)

We recommended that the Foundation adhere to their policy to ensure its funds are insured for all bank accounts. We also recommended that the Foundation allocate adequate resources to ensure that all bank accounts are reconciled in a timely manner and that controls are maintained over authorized signers on accounts.

Foundation officials concurred with the recommendation.

AUDITORS' OPINION

Our auditors stated the June 30, 2008 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

DeRaimo, Hillger & Ripp were our special assistant auditors for this audit.

Summary of Findings

SYNOPSIS

FINANCIAL AUDIT

At June 30, 2008

At June 30, 2007