Repository: UIHistories Project: Board of Trustees Minutes - 1916 [PAGE 200]

EXTRACTED TEXT FROM PAGE:

200

UNIVERSITY OF I L L I N O I S .

[Jan.

30,

opportunity to check our book records of property with the actual property. We have planned the work of the business office for the remaining months of the present fiscal year so as to permit of some time being given to verification of inventories. Very truly yours, [Audit Report.]

GEO. E. FRAZER.

January 18, 1915. Hon. James J. Brady, Auditor of Public Accounts, Springfield, III. DEAR SIR : In accordance with your instructions, I have audited the books and accounts of the University of Illinois at Urbana, in., for the fifteen months ended September 30, 1914. Owing to the fact that the fiscal year of the University ends on June 30, 1914, I have audited that period, and have also verified the cash receipts and disbursements for the three months ended September 30, 1914. A summary of the transactions of the year ended June 30, 1914, is as follows: Cash receipts (Exhibit "AA") $ 531,703 45 Add: State appropriation income (amount expended).. 2,278,715 86 • *$2,810,419 21 Cash disbursements (Exhibit "BB") 2,819,297 81 Excess of disbursements over receipts 8,878 50 The disbursements for1 the year resulted in an increase in net worth, as shown by comparative balance sheet (Exhibit "A") of $641,828.88. I estimate the cost of maintaining the University during the year as follows: Disbursements $2,819,297 81 Deduct: Increase in net worth 641,828 88 Estimated cost $2,177,468 93 This amount represents the cofet of ordinary maintenance, and does not take into consideration the acquisition of land, construction of new buildings, or purchase of equipment. The system of accounting in this institution gives very detailed analysis of the receipts and disbursements. There is also in force a method of recording liabilities against appropriations, which acts as a preventive against overdrafts. A transfer ledger is also used, which records inter-department transactions and requisitions from stores. In this manner the cost of each department of the University is accurately shown in full detail. Owing to the amount of time at my disposal, I have audited the balance sheet at June 30, 1914, as it would require considerable time to construct a balance sheet at September'30, 1914. The method of recording additions and deductions from balance sheet assets during the year ended June 30, 1914, could be much improved. I believe that a general ledger, recording assets and liabilities, should be installed. All additions to assets should be susceptible to audit by reference to the duplicate vouchers on file. Equipment discarded or otherwise disposed of, depreciation and any other deductions from capital assets should be credited to the proper asset account and charged to surplus, and there should be sufficient supporting data referring to same to properly verify transactions. Inventories of supplies should be taken on uniform inventory sheets, and detailed sufficiently, where possible, to admit of a comparison with the vouchers on file. Considering the many thousands of items handled by the University, and the variety thereof, the records of the cash receipts and disbursements have been kept in an accurate and efficient manner, and a great improvement has been made over the system in use at the time of last audit for your office, April, 1913. The receipts of the University are used, together with the State appropriations, for the payment of ordinary expenses and acquisitions of new property. A budget control over expenditures is in force, the Board of Trustees of the University basing their appropriations on the estimated current receipts and the State appropriations. Duplicate vouchers are on file for all disbursements. I verified the cash receipts and cash balances, and reconciled the appropriation balances with the amounts as shown by your office, both on June 30, 1914, and September 30, 1914. I submit herewith various statements, which contain full details of the cash receipts and disbursements, together with comments on my verification of the assets and liabilities at June 30, 1914. Yours very truly, Supervised b y :

WHITNEY B. PLERSHEM,

President, Accountant.

FOR M A R G A R E T FUND.

United States Audit Go.

HENRY L. HERTZ,

Certified Public

TO

This report was received for record.

AUTHORITY ACCEPT GIFTS L A N G E JAMES LOAN

(12) A request from Miss Martha J. Kyle, Acting Dean of Women, on behalf of certain young women of the University, that the Comptroller of the University be authorized to accept contributions and subscriptions received by them in trust for the Margaret Lange James Loan Fund.

On motion of Mrs. Evans, this request was granted.

* Should be $2,810,419.31—an error of 10 cents.