IMSA Fund for Advancement of Education. Financial Audit and Compliance Examination for the Years Ended June 30, 2011 and 2010

              Office of the Auditor General, Iles Park Plaza, 740 E. Ash St., Springfield, IL 62703 • Tel: 217-782-6046 or TTY 888-261-2887
This Report Digest and a Full Report are also available on the internet at www.auditor.illinois.gov
IMSA FUND FOR ADVANCEMENT OF EDUCATION
FINANCIAL AUDIT AND COMPLIANCE
EXAMINATION
For the Year(s) Ended June 30, 2011
Summary of Findings:
Total this audit:
Total last audit:
Repeated from last audit:
1
1
1
Release Date: January 11, 2012
SYNOPSIS
• The IMSA Fund for Advancement of Education did not initially properly report its cash and investments and net asset classifications on its June 30, 2011 financial statements.
{Expenditures and Activity Measures are summarized on the reverse page.}ii
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
REVENUES
Operating Revenues:
Contributions.............................................................................................
2,077,145$
885,010$
Operating Agreement with Academy........................................................
269,600
259,441
Other Operating Revenues.........................................................................
85,495
21,361
Total Operating Revenues............................................................................
2,432,240$
1,165,812$
EXPENSES
Operating Expenses:
Academy Support.......................................................................................
836,585$
1,029,230$
Management and General..........................................................................
99,910
90,984
Fundraising.................................................................................................
54,412
72,938
Operating Agreement with Academy........................................................
269,600
259,441
Total Operating Expenses.............................................................................
1,260,507$
1,452,593$
Other Revenues, Expenses, and Contributions to Permanent
Endowments...............................................................................................
759,385
331,146
Changes in Net Assets....................................................................................
1,931,118$
44,365$
STATEMENT OF NET ASSETS
FY 2011
FY 2010
Assets:
Cash and Cash Equivalents........................................................................
919,169$
840,984$
Investments................................................................................................
3,293,581
2,683,087
Accounts Receivable..................................................................................
392,875
219,511
Prepaid Expenses.......................................................................................
4,863
3,470
Pledges Receivable....................................................................................
1,101,095
52,262
Total Assets...................................................................................................
5,711,583$
3,799,314$
Liabilities:
Accounts Payable.......................................................................................
16,438$
32,556$
Deferred Revenue......................................................................................
3,644
6,375
Total Liabilities.............................................................................................
20,082$
38,931$
Net Assets.......................................................................................................
5,691,501$
3,760,383$
FUND AGENT
During Audit Period: Suzyn Price
Currently: Cathy Veal
IMSA FUND FOR ADVANCEMENT OF EDUCATION
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For the Year(s) Ended June 30, 2011
FY 2010
FY 2011iii
Reclassification of certificates of deposit
Reclassification of earnings from permanent endowments
Management agrees with auditors
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
FINANCIAL STATEMENT RECLASSIFICATIONS
The IMSA Fund for Advancement of Education (Fund) did not initially properly report its cash and investments and net asset classifications on its June 30, 2011 financial statements.
During our audit we noted the following financial statement reporting matters that required reclassification:
• The Fund incorrectly reported $284,263 of certificates of deposit with original maturity dates of greater than three months as cash equivalents instead of investments in the Statement of Net Assets. After the auditors’ brought this matter to their attention, the Fund reclassified its certificates of deposit to investments.
• The Fund initially included $19,477 of earnings on its permanent endowments in the net asset category “Restricted Net Assets, Nonexpendable.” The language of these written endowments clearly allows the earnings on the assets to be expended in accordance with the terms of the agreement. After the auditors’ brought this to their attention, the Fund corrected this reporting error and has reported the earnings in the net asset category “Restricted Net Assets, Expendable.” (Finding 1, page 10)
We recommended management thoroughly review its financial statements and verify amounts in order to ensure the financial statements are properly presented in accordance with accounting principles generally accepted in the United States of America.
Management responded that it acknowledges the finding, made all the reclassifications and resubmitted its financial statements to the auditors. In total, the Net Assets of the Fund were reported correctly on the year-end financial statements.iv
AUDITORS’ OPINION
Our auditors reported the June 30, 2011 financial statements of the IMSA Fund for Advancement of Education are fairly presented in all material respects.
___________________________________
WILLIAM G. HOLLAND
Auditor General
WGH:CMB
AUDITORS ASSIGNED
Our special assistant auditors for this audit were Borschnack, Pelletier & Co.