FY2004 System Audit

June M. Peterson

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• Publié par: Armyo
• Nombre de lectures: 22
• Langue: English

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FY2004 System Audit







NORTHERN ILLINOIS LIBRARY SYSTEM

Financial Statements

June 30, 2004

(With Independent Auditors' Report Thereon)



























MILLIKIN BENNING KLECKLER & KOBISCHKA, LLC

Certified Public Accountants

NORTHERN ILLINOIS LIBRARY SYSTEM

Table of Contents

Exhibit Page

Independent Auditors' Report

FINANCIAL STATEMENTS:
Combined Statement of Assets, Liabilities, and Fund
Equity – All Fund Types and Account Group A 2
Combined Statement of Revenues, Expenditures, and
Changes in Fund Balances – All Governmental
Fund Types B 3
Combined Statem
Changes in Fund Balances – Budget and Actual –
All Governmental Fund Types C 4

Notes to Financial Statements 5 – 11

INDIVIDUAL FUND AND ACCOUNT GROUP
FINANCIAL STATEMENTS:
Statement of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual:
General Fund D 12 – 13
Statement of Revenues, Expenditures, and Changes in

Special Revenue Funds E 14
Statement of General Fixed Assets – General Fixed
Assets Account Group F 15
Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards 16






Independent Auditors' Report

The Board of Directors
Northern Illinois Library System
Rockford, Illinois:


We have audited the accompanying financial statements of each major fund and the aggregate
remaining fund information of the Northern Illinois Library System (NILS), as of June 30, 2004,
and for the year then ended, as listed in the table of contents, which collectively comprise a
portion of NILS’ basic financial statements required by U.S. generally accepted accounting
principles. These financial statements are the responsibility of NILS’ management. Our
responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United
States of American and standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.

Management has not presented government-wide financial statements to display the financial
position and changes in financial position of its governmental activities. U.S. generally accepted
accounting principles require the presentation of government-wide financial statements. The
amounts that would be reported in government-wide financial statements for NILS governmental
activities are not reasonably determinable.

NILS merged with two similar regional library systems effective July 1, 2004. Because NILS
ceased to exist, the Illinois State Library System did not require NILS to implement the
provisions of GASB Statement No. 34, Basic Financial Statements – and Management’s
Discussion and Analysis – for State and Local Governments, as of June 30, 2004.

In our opinion, because of the effects of the matter discussed in the preceding paragraph, the
financial statements referred to above do not present fairly, in conformity with U.S. generally
accepted accounting principles, the financial position of NILS, as of June 30, 2004, or the
changes in its financial position or its cash flows, where applicable, for the year then ended.
In accordance with Government Auditing Standards, we have also issued our report dated July
30, 2004 on our consideration of Northern Illinois Library System’s internal control over
financial reporting and our tests of its compliance with laws, regulations, contracts and grants.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be read in conjunction with this report in considering the results of our
audit.

Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise NILS’ basic financial statements. The combining statements and schedule
listed in the table of contents are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion, is
fairly presented in all material respects in relation to the basic financial statements taken as a
whole.


Rockford, Illinois
July 30, 2004
EXHIBIT A

NORTHERN ILLINOIS LIBRARY SYSTEM

Combined Statement of Assets, Liabilities, and
Fund Equity — All Fund Types and Account Group

June 30, 2004

Governmental Totals
Fund Types Account (memorandum only)
Special Group
Assets General Revenue General FundFundFixed
Assets 2004

Cash $ 731,624 – – 731,624
Accounts receivable 13,714 9,600 23,314
Prepaid expenses 47,179 – – 47,179
Due from general fund – 145,151 145,151
Furnishings and equipment – – 2,605,747 2,605,747

$ 792,517 154,751 2,605,747 3,553,015

Liabilities and Fund Equity

Liabilities:
Accounts payable 8,424 1,624 – 10,048
Compensated absences payable 45,961 – 45,961
Due to special revenue fund 145,151 – – 145,151

Total liabilities 199,536 1,624 – 201,160

Fund Equity:
Investment in general fixed assets – – 2,605,747 2,605,747
Fund balances:
Unreserved:
Designated:
Operating reserve 381,233 153,127 – 534,360
Capital projects 211,748 – – 211,748

Total fund equity 592,981 153,127 2,605,747 3,351,855
$ 792,517 154,751 2,605,747 3,553,015

See accompanying notes to financial statements.

EXHIBIT B

NORTHERN ILLINOIS LIBRARY SYSTEM

Combined Statement of Revenues, Expenditures, and
Changes in Fund Balances – All Governmental Fund Types

Year ended June 30, 2004





Governmental Total
Fund Types
( memorandum only)
Special
GeneralRevenue2004
Revenues:
Area and per capita grant $ 1,200,565 105,270 1,305,835 Other state grants – 16,400 16,400
Interest 10,218 – 10,218
Fees from services and materials 49,980 219,580 269,560
Other revenue 18,768 – 18,768
Total revenues 1,279,531 341,250 1,620,781

Expenditures – culture and education 1,264,478 427,985 1,692,463

Excess of revenues over
expenditures 15,053 (86,735) (71,682)

Fund balance, beginning of year 577,928 239,862 817,790

Fund balance, end of year $ 592,981 153,127 746,108





See accompanying notes to financial statements.
NORTHERN ILLINOIS LIBRARY SYSTEMS

Combined Statement of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual –
All Government Fund Types
Year Ended June 30, 2004
General Fund Special Revenue Fund Totals (memorandum only)
Variance- Variance- Variance-
favorable favorable favorable
Budget Actual (unfavorable) Budget Actual (unfavorable) Budget Actual (unfavorable)
Revenues:
Area and per capita grants $ 1,200,565 1,200,565 – 50,000 105,270 55,270 1,250,565 1,305,835 55,270
Other state grants – –– – 16,400 16,400 – 16,400 16,400
Interest 3,400 10,218 6,818– – – 3,400 10,218 6,818
Fees from services and materials 48,000 49,980 1,980 216,068 219,580 3,512 264,068 269,560 5,492
Other revenue 18,7689,250 9,518 – – – 9,250 18,768 9,518
Total revenue 1,261,215 1,279,531 18,316 266,068 341,250 75,182 1,527,283 1,620,781 93,498
Expenditures:
Personnel 704,748 740,258 (35,510) 116,483 111,382 5,101 821,231 851,640 (30