Repository: UIHistories Project: Board of Trustees Minutes - 1932 [PAGE 427]

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UNIVERSITY OF ILLINOIS

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REPORT OF A R T H U R Y O U N G A N D C O M P A N Y

(18) The following report of Arthur Young and Company, public accountants engaged to audit the accounts of the University, covering the audit for the quarter ended June 30, 1931. The reports of the Comptroller and Treasurer referred to therein have already been reported to the Board. August 31, 1931 Board of Trustees, University of Illinois, Urbana, Illinois D e a r Sirs, W e have audited the books of the University of Illinois for the quarter ended June 30, 1931, and submit the following brief summary of the work done and the result of the audit. The cash receipts have been verified by checking all cash receipts' vouchers into the cash book and examining a substantial portion of the original departmental records. Cash received as recorded has been duly deposited with the University Treasurer. The warrants drawn on the University Treasurer and those certified to the State Auditor have been checked into the cash book, and a substantial portion of the supporting vouchers has been examined with respect to authorization, object of expenditure and receipt of goods or services by the University. A number of pay roll vouchers of non-appointees has been checked against the original time reports onfilein the respective departments. Salaries paid to appointees have been checked against the Secretary's letters of appointment. The footings of the cash book have been proved. The cash balance in the hands of the University Treasurer at June 30, 1931, together with the securities of the University in his custody, as shown by the books of account, have been verified by actual inspection and confirmation from the depository. W e have also examined the securities deposited by the depository bank, protecting the University funds on deposit. These securities are in the joint control of the Treasurer and the Comptroller of the University. The amount of these securities, consisting of obligations of the United States Government, was ¥790,800 at the time of our inspection, August 7,1931, and ¥747,000 at the time of our previous inspection, April 14, 1931. Cash on hand was verified by actual count. Physical inventories taken by the several stores departments near the close of the fiscal year have been re-calculated by us and adjusted to June 30, 1931, by taking into account receipts and issues from the date of the inventory to June 30. A liberal selection of items has been verified as to quantity by actual inspection of the material, and as to prices by comparison with purchase records. Physical inventories were from 1 } 4 % to 1 0 % in excess of the respective control accounts. The control accounts are being adjusted from time to time to bring them into approximate agreement with physical inventories. The departmental accounts of work in process have been examined and have been found to agree with the controlling account in the general ledger. Disbursement vouchers representing 6 8 % of additions to fixed assets made during the year have been examined and were found to cover proper capital expenditures. The income for the quarter under audit has been verified by extensive detail checking and comparison with the reports of the Registrar and thefilesof the various operating departments. The accounts of the Chicago departments and of the Stadium Fund have been audited along the lines indicated above and have been found correct. The records of the meetings of the Board of Trustees of April 8 and 27, M a y 14, and June 15 and 26, 1931, have been examined and all actions affecting the finances of the University, insofar as they had been consummated at the time of our audit, have been checked into the books of account. The records of previous meetings have likewise been examined with respect to relative transactions recorded in the books during the quarter under audit. the Board.and bidsthe purchasing Supervising been able have been checkedextended reports made toorders issued so farbeen e have Architect minutes of a by meetingsthe detail examination, on that the as w compared in inspected and and quotations. Contracts larger e hereby certify, file ofhave division shownbeenthe to ascertainthe an against The records the Board of Trustees as have with relative bids number of of W purchase of