Repository: UIHistories Project: Board of Trustees Minutes - 1934 [PAGE 117]

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UNIVERSITY OF ILLINOIS

"5

if any, will not be substantial; however, under the proposed plan of reorganization, a portion of the funds on deposit will not be available for some time, pending the sale of certain assets of the bank in a market more favorable than that at the present time. In connection with this account the University holds the personal bond of Mr. Hazen S. Capron and his Co-Sureties. United States F o u r t h Liberty Bonds of a par value of $500,000 have been deposited by F r a n k M. Gordon, Treasurer, to secure his balance of $366496.34. The deposit of this collateral has been confirmed to us by the Trustee. Petty cash funds were verified by actual count and by confirmations received from the depositories. Of the total petty cash funds, $31,490.89, an amount of $15,572.16 is on deposit with the closed First National Bank, Champaign. T h e securities as shown by the books of account were verified by actual inspection and by confirmation from the custodian. The following securities were in default at June 30, 1932: Lois A. and John H . Boyden, real estate note $ 6 440 46 Chicago and West Towns Railway Company, first mortgage gold

bond 1 000 00

La Salle-Wacker Building Corporation, bond W. B. and M. E. Martin, mortgage on land

2 000 00 7 500 00 $16 940 46

Physical inventories taken by the several stores departments near the close of the fiscal year were re-calculated by us and adjusted to J u n e 30, 1932, by taking into account receipts and issues from the date of the inventory to June 30, A selection of items was verified as to quantities by actual inspection of the material and as to prices by comparison with purchase records. Physical inventories were 6^3% in excess of the control accounts due to the fact that the credits to the control accounts contain a margin of profit charged to departments upon issue of material. T h e departmental accounts of work in process were examined and were found to agree with the controlling account in the general ledger. Disbursement vouchers representing 62% of additions to fixed assets made during the year were examined and were found to cover proper capital expenditures. T h e accounts of land, buildings and equipment were checked against the detailed ledgers and card records and were found to agree therewith. T h e income for the quarter under audit was verified by extensive detail checking and comparison with the report and files of the Registrar and the files of the various operating departments. The accounts of the Chicago departments and of the Stadium Fund were audited along the lines indicated above and were found correct. T h e records of the meetings of the Board of Trustees of April 20, May 11, and June 11, 1932, were examined and all actions affecting the finances of the University, in so far as they had been consummated at the time of our audit, were checked into the books of account. T h e records of previous meetings were likewise examined with respect to relative transactions recorded in the books during the quarter under audit. The records of the purchasing division were inspected and a number of the larger purchase orders issued were compared with relative bids and quotations. Contracts and bids on file in the office of the Supervising Architect were checked against reports made to the Board of Trustees as shown in the minutes of the meetings of the Board. W e hereby certify that, so far as we have been able to ascertain by an extended detail examination, All income which the University should have received during the quarter ended June 30, 1932, has been received and accounted for. All disbursements have been made for University purposes and have been properly authorized and the expenditures have been correctly recorded in the books of account. Subject to our comments on the University's funds at the First National Bank, Champaign, the cash and securities as shown by the books at June 30, 1932, are correct in amount and have been verified by actual inspection, count, or confirmation from the depository.