FY11-Conserv-Fdn-Fin-Comp-Full

              ILLINOIS CONSERVATION FOUNDATION
(A Component Unit ofthe State of Illinois)
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For The Year Ended June 30, 2011
Performed as Special Assistant Auditors
for the Auditor General, State of Illinois
Kyle E. McGinnis
Certified Public Accountant
200 East Pine
Springfield, Illinois 62704
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For The Year Ended June 30,2011
TABLE OF CONTENTS
Table of Contents
Foundation Officials
Management Assertion Letter
Compliance Report
Summary
Accountants' Reports
Independent Accountants' Report on State Compliance, on Internal
Control Over Compliance, and on Supplementary Information for
State Compliance Purposes
Independent Auditors' Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
Schedule ofFindings
Current Findings - Government Auditing Standards
Current Findings- State Compliance
Prior Findings Not Repeated
Financial Statement Report
Summary
Independent Auditors' Report
Management's Discussion and Analysis
Basic Financial Statements
Statement ofNet Assets
Statement of Activities
Balance Sheet-Governmental Funds
Reconciliation of the Governmental Funds Balance Sheet
to the Statement ofNet Assets
Statement of Revenues, Expenditures and Changes in Fund Balances­Governmental
Funds
Reconciliation ofthe Change in Fund Balances of Governmental Funds
to the Statement of Activities
Notes to the Basic Financial Statements
1
1-2
3-5
6
7-8
9-11
12-13
14
15-18
19
20
21-22
23-24
25
26
27
28
29
30
31-39
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
For The Year Ended June 30, 2011
TABLE OF CONTENTS
Supplementary Information for State Compliance Purposes
Summary
Fiscal Schedules and Analysis
Schedule of Expenditures ofFederal Awards
Notes to Schedule ofExpenditures ofFederal Awards
Schedule of Changes in Property
Comparative Schedule ofReceipts, Disbursements and
Fund Balance (Cash Basis)
Analysis of Significant Variations in Expenditures
Analysis of Significant Variations in Revenues
Analysis of Significant Balance Sheet Accounts
Analysis of Accounts Receivable and Accrued Investment Income
Schedule of Indirect Cost Reimbursements
Analysis of Operations
Agency Functions and Planning Program
Average Number of Employees and Foundation Members
Comparative Schedule of Administrative Expenditures
Service Efforts and Accomplishments (Unaudited)
2
40
41
42
43
44
45-46
47
48
49
50
51-52
53
54
55
Board of Directors:
FOUNDATION OFFICIALS
ILLINOIS CONSERVATION FOUNDATION
Miller, Marc- Appointment designated by statute- Chairman
Ducey, Barbara- Appointed by Senator Jones- Secretary
Russell, Robert Dr. -Appointed by Senator Philip - Treasurer
Cullerton, Bill Jr. -Appointed by Representative Madigan
Keck, Fred - Appointed by Senator Philip
Kidd, John Jr. - Appointed by Senator Jones
Newton, Larry- Appointed by Representative Cross
Lyons, Arthur - Appointed by Representative Daniels
Presbrey, Kim- Appointed by Governor Blagojevich
Wren, RichardT. Jr.- Appointed by Governor Blagojevich
Combs, Doug - Appointed by Representative Madigan
Kern, Mark- Appointed by Governor Blagojevich
Each director shall hold office until a successor has been appointed.
3
Committees were as follows:
Executive Committee
Miller, Marc - Chairman of the Board
Ducey, Barbara
Russell, Robert Dr.
Wren, RichardT. Jr.
Development Committee
Miller, Marc- Chairman of the Board
Combs, Doug
Kidd, John Jr.
Lyons, Arthur
Planned Giving Sub-Committee
Finance & Endowment Committee
Russell, Robert Dr. - Chairman
Lyons, Arthur
Newton, Larry
Special Events Committee
Presbrey, Kim - Chairman
Combs, Doug
Keck, Fred
Kidd, John Jr.
Cullerton, Bill Jr.
Allen, Ron
Strategic Planning Committee
Miller, Marc- Chairman of the Board
Ducey, Barbara
Kidd, John Jr.
Lyons, Arthur
Newton, Larry
Presbrey, Kim
Russell, Robert
Liaisons to Natural Resources Advisory Board
Wren, RichardT. Jr.
Website Committee
Presbrey, Kim
Kidd, John Jr.
Conservation Scholarship Committee
Ducey, Barbara
Cullerton, Bill Jr.
Kidd, John Jr.
Newton, Larry
4
Address:
The Foundation operates in office space maintained by the Illinois Department of Natural
Resources as follows:
Operating Office
Illinois Conservation Foundation
1 Natural Resources Way
Springfield, IL 62702-1271
Foundation Executive Director:
Spangler, Mark
Chief Financial Officer:
Bandy, John
5
Kyle E. McGinnis, CPA
200 East Pine
Springfield, Illinois 62704
Ladies and Gentlemen:
MANAGEMENT ASSERTION LETTER
January 11, 2012
We are responsible for the identification of, and compliance with, all aspects of laws,
regulations, contracts, or grant agreements that could have a material effect on the operations of
the Foundation. We are responsible for and we have established and maintained an effective
system of, internal controls over compliance requirements. We have performed an evaluation of
the Foundation's compliance with the following assertions during the one year period ended June
30, 2011. Based on this evaluation, we assert that during the year ended June 30, 2011, the
Foundation has materially complied with the assertions below.
A The Foundation has obligated, expended, received and used public funds of the State in
accordance with the purpose for which such funds have been appropriated or otherwise
authorized by law.
B. The Foundation has obligated, expended, received and used public funds of the State in
accordance with any limitations, restrictions, conditions or mandatory directions imposed by
law upon such obligation, expenditure, receipt or use.
C. The Foundation has complied, in all material respects, with applicable laws and regulations,
including the State uniform accounting system, in its financial and fiscal operations.
D. State revenues and receipts collected by the Foundation are in accordance with
applicable laws and regulations and the accounting and recordkeeping of such revenues
and receipts is fair, accurate and in accordance with law.
E. Money or negotiable securities or similar assets handled by the Foundation on behalf of
the State or held in trust by the Foundation have been properly and legally administered,
and the accounting and recordkeeping relating thereto is proper, accurate and in
accordance with law.
Yours truly,
ILLINOIS CONSERVATION FOUNDATION
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6
COMPLIANCE REPORT
SUMMARY
The compliance testing performed during this examination was conducted in accordance with
Government Auditing Standards and in accordance with the Illinois State Auditing Act.
ACCOUNTANTS' REPORT
The Independent Accountants' Report on State Compliance, on Internal Control Over Compliance,
and on Supplementary Information for State Compliance Purposes does not contain scope
limitations, disclaimers, or other significant non-standard language.
SUMMARY OF FINDINGS
Number of
Findings
Repeated findings
Current Report
4
4
Prior recommendations implemented
or not repeated 2
Item No.
11-1
11-2
11-3
11-4
SCHEDULE OF FINDINGS
Page Description
FINDINGS (GOVERNMENT AUDITING STANDARDS)
14
15
17
18
Financial statements preparation
FINDINGS (STATE COMPLIANCE)
Noncompliance with Accountability for the
Investment of Public Funds Act
Disbursement processing weakness
Segregation of duties
Prior Report
5
5
0
Finding Type
Material
Weakness and
Noncompliance
Significant
Deficiency and
Noncompliance
Significant
Deficiency and
Noncompliance
Significant
Deficiency and
Noncompliance
In addition, the following finding which is reported as current finding related to Government
Auditing Standards also meets the reporting requirements for State Compliance.
11-1 14 Financial statements preparation
7
Material
Weakness and
Noncompliance
Item No.
A
B
SCHEDULE OF FINDINGS CONTINUED
Page Description
PRIOR FINDINGS NOT REPEATED (STATE COMPLIANCE)
19
19
Bank balances in excess of the FDIC insurance
limit were not protected by collateral pledged
by the bank
Personnel policies not followed
EXIT CONFERENCE
In correspondence dated December 21,2011 the officials of the Illinois Conservation Foundation
determined that a formal exit conference would not be necessary. Responses to the recommendations
were provided by John Bandy, ChiefFinancial Officer, in a correspondence dated January 10, 2011.
8
KYLE E. McGINNIS
Certified Public Accountant
MEMBER OF:
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
ILLINOIS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
200 EAST PINE * SPRINGFIELD, ILLINOIS 62704
TELEPHONE: (217) 753-3377 FAX: (217) 753-8922
INDEPENDENT ACCOUNTANTS' REPORT ON STATE COMPLIANCE,
ON INTERNAL CONTROL OVER COMPLIANCE. AND ON
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
Honorable William G. Holland
Auditor General
State of Illinois
Board of Directors
Illinois Conservation Foundation
Springfield, Illinois
Compliance
As Special Assistant Auditors for the Auditor General, we have examined the Jllinois
Conservation Foundation's (A Component Unit of the State of Illinois) (Foundation) compliance
with the requirements listed below, as more fully described in the Audit Guide for Financial
Audits and Compliance Attestation Engagements of Illinois State Agencies (Audit Guide) as
adopted by the Auditor General, during the year ended June 30, 2011. The management of the
Foundation is responsible for compliance with these requirements. Our responsibility is to express
an opinion on the Foundation's compliance based on our examination.
A. The Foundation has obligated, expended, received, and used public funds of the State ih
accordance with the purpose for which such funds have been appropriated or otherwise
authorized by law. ·
B. The Foundation has obligated, expended, received, and used public funds in of the State
accordance with any limitations, restrictions, conditions or mandatory directions imposed
by law upon such obligation, expenditure, receipt or use.
C. The Foundation has complied, in all material respects, with applicable laws and
regulations, including the State uniform accounting system, in its financial and fiscal
operations.
D. State revenues and receipts collected by the Foundation are in accordance with applicable
laws and regulations and the accounting and recordkeeping of such revenues and receipts
is fair, accurate and in accordance with law.
E. Money or negotiable securities or similar assets handled by the Foundation or held in
trust by the Foundation have been properly and legally administered and the accounting
and recordkeeping relating thereto is proper, accurate, and in accordance with law.
9
We conducted our examination in accordance with attestation standards established by the
American Institute of Certified Public Accountants; the standards applicable to attestation
engagements contained in Government Auditing Standards issued by the Comptroller General of
the United States; the Illinois State Auditing Act (Act); and the Audit Guide as adopted by the
Auditor General pursuant to the Act; and accordingly, included examining, on a test basis,
evidence about the Foundation's compliance with those requirements listed in the first paragraph
of this report and performing such other procedures as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Foundation's compliance with specified
requirements.
In our opinion, the Foundation complied, in all material respects, with the compliance
requirements listed in the first paragraph of this report during the year ended June 30, 2011.
However, the results of our procedures disclosed instances of noncompliance with those
requirements, which are required to be reported in accordance with criteria established by the
Audit Guide, issued by the Illinois Office of the Auditor General and which are described in the
accompanying schedule of findings as findings 11-2 through 11-4.
Internal Control
Management of the Foundation is responsible for establishing and maintaining effective internal
control over compliance with the requirements listed in the first paragraph of this report. In
planning and performing our examination, we considered the Foundation's internal control over
compliance with the requirements listed in the first paragraph of this report as a basis for
designing our examination procedures for the purpose of expressing our opinion on compliance
and to test and report on internal control over compliance in accordance with the Audit Guide
issued by the Illinois Office of the Auditor General, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not express
an opinion on the effectiveness of the Foundation's internal control over compliance.
A deficiency in an entity's internal control over compliance exists when the design or operation of
a control over compliance does not allow management or employees, in the normal course of
performing their assigned functions, to prevent, or detect and correct noncompliance with the
requirements listed in the first paragraph of this report on a timely basis. A material weakness
over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance such that there is a reasonable possibility that material noncompliance with a
requirement listed in the first paragraph of this report will not be prevented, or detected and
corrected on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control
over compliance that might be deficiencies, significant deficiencies or material weaknesses. We
did not identify any deficiencies in internal control over compliance that we consider to be
material weaknesses as defined above. However, we identified certain deficiencies in internal
control over compliance that we considered to be significant deficiencies as described in the
accompanying schedule of findings as items 11-2 through 11-4. A significant deficiency in an
entity's internal control over compliance is a deficiency, or combination of deficiencies, in internal
control that is less severe than a material weakness in internal control over compliance, yet
important enough to merit attention by those charged with governance.
10
As required by the Audit Guide, immaterial findings excluded from this report have been reported
in a separate letter to your office.
The Foundation's responses to the findings identified in our examination are described in the
accompanying schedule of findings. We did not examine the Foundation's responses and,
accordingly, we express no opinion on the responses.
Supplementary Information for State Compliance Purposes
As Special Assistant Auditors for the Auditor General, we have audited the financial statements of
the governmental activities, each major fund, and the aggregate remaining fund information of the
Foundation as of and for the year ended June 30, 2011, which collectively comprise the
Foundation's basic financial statements, and have issued our report thereon dated January 11,
2012. The accompanying supplementary information, as listed in the table of contents as
Supplementary Information for State Compliance Purposes, is presented for purposes of additional
analysis and is not a required part of the basic financial statements of the Foundation. The 2011
Supplementary Information for State Compliance Purposes, except for that portion marked
"unaudited" on which we express no opinion, has been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements for the year ended June 30, 2011,
taken as a whole.
We have also previously audited, in accordance with auditing standards generally accepted in the
United States, the Foundation's basic financial statements for the year ended June 30, 2010. In
our report dated January 5, 2011 on basic financial statements, we expressed unqualified opinions
on the respective financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information. In our opinion, the 2010 supplementary information for
State Compliance Purposes, except for the portion marked "unaudited" is fairly stated in all
material respects in relation to the basic financial statements for the year ended June 30, 2010
taken as a whole.
This report is intended solely for the information and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, Foundation management and the
Foundation's Board of Directors and is not intended to be and should not be used by anyone other
than these specified parties.
JcfzlrlL
Kyle E. McGinnis, CPA
Springfield, Illinois
January 11, 2012
11
KYLE E. McGINNIS
Certified Public Accountant
MEMBER OF:
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
ILLINOIS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
200 EAST PINE * SPRINGFIELD, ILLINOIS 62704
TELEPHONE: (217) 753-3377 FAX: (217) 753-8922
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
Honorable William G. Holland
Auditor General
State of Illinois
Board of Directors
Illinois Conservation Foundation
Springfield, Illinois
As Special Assistant Auditors for the Auditor General, we have audited the financial statements of
the governmental activities, each major fund, and the aggregate remaining fund information of the
Illinois Conservation Foundation (A Component Unit of the State of Illinois) (Foundation) as of
and for the year ended June 30, 2011, which collectively comprise the Foundation's basic financial
statements, and have issued our report thereon dated January 11, 2012. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States.
Internal Control Over Financial Reporting
Management ofthe Foundation is responsible for establishing and maintaining effective internal
control over financial reporting. In planning and performing our audit, we considered the
Foundation's internal control over financial reporting as a basis for designing our auditing
procedures for the purpose of expressing our opinions on the financial statements and not for the
purpose of expressing an opinion on the effectiveness of the Foundation's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Foundation's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in
the preceding paragraph and was not designed to identify all deficiencies in the internal control over
financial reporting that might be significant deficiencies or material weaknesses and therefore, there
can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been
identified. However, as described in the accompanying schedule of findings we identified certain
deficiencies in internal control over financial reporting that we consider to be material weaknesses.
12
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. We consider the deficiency described in finding 11-1 in the
accompanying schedule of fmdings to be a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Foundation's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements, noncompliance with which could have a direct
and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly,
we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
The Foundation's responses to the findings identified in our audit are described in the
accompanying schedule of findings. We did not audit the Foundation's responses and,
accordingly, we express no opinion on the responses.
This report is intended solely for the information and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, Foundation Management and the
Foundation's Board ofDirectors and is not intended to be and should not be used by anyone other
than these specified parties.
K~t:hr~
Kyle E. McGinnis, CPA
Springfield, Illinois
January 11, 2012
13
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
SCHEDULE OF FINDINGS
CURRENT FINDINGS- GOVERNMENT AUDITING STANDARDS
11-1. Finding (Financial statement preparation)
The Illinois Conservation Foundations (Foundation) year-end financial statements contained
weaknesses and inaccuracies.
Several errors were identified during the audit of the Foundation's draft financial statements.
The Foundation's financial statements were adjusted for the following reporting errors:
• An audit adjustment identified by management totaling $4.5 million was made by the
auditors to record a donation of land, building and equipment. As a result revenue and
assets were increased $4.5 million.
• The Foundation allocated the incorrect amount of on-behalf payments paid by the
Illinois Department of Natural Resources on their behalf. The Department failed to
include the salary and benefit information paid to the Director's assistant.
• The Foundation did not complete the comparative schedule of receipts, disbursements
and fund balance (cash basis).
The Fiscal Control and Internal Auditing (30 ILCS 10/3001) requires all State agencies to
establish and maintain a system of internal fiscal and administrative controls, which shall
provide assurance that revenues, expenditures, and transfers of assets resources, or funds
applicable to operations are properly recorded and accounted for to permit the preparation of
accounts and reliable financial reports and to maintain accountability over the State's
resources.
Foundation management stated the underlying causes for inaccurate financial reporting was
attributed to the difficulty involved with accounting for the above transactions and statements.
Failure to implement appropriate internal controls and provide accurate financial information
could lead to misstatements of the state-wide and the Foundation's financial statements.
(Finding Code No. 11-1)
Recommendation
We recommend the Foundation implement additional internal control procedures to ensure
financial statements are prepared in an accurate manner.
Foundation Response
The Foundation agrees.
14
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
SCHEDULE OF FINDINGS
CURRENT FINDINGS- STATE COMPLIANCE
11-2. Finding (Noncompliance with Accountability for the Investment of Public Funds Act (Act))
The Illinois Conservation Foundation (Foundation) did not present information on the Internet
concerning their investment of public funds as required by the Act. The Foundation had the
following investment balances that would be classified as public funds by the Act at June 30,
2011:
Debt Securities
Equity Securities
Commodities
Mutual Funds
Real Estate
TOTAL
$ 728,010
1,341 '157
47,249
427,666
8.354
$2.552.436
The Accountability for the Investment of Public Funds Act (30 ILCS 237) states that each State
agency shall make available on the Internet, and update at least monthly by the 15th of the
month, sufficient information concerning the investment of any public funds held by that State
agency to identify the following:
a. The amount of funds held by that agency on the last day of the preceeding month or
the average daily balance for the preceding month;
b. The total monthly investment income and the yield for all funds invested by the agency;
c. The asset allocation of the investments made by the agency; and
d. A complete listing of all approved depository institutions, commercial paper issuers,
and broker-dealers approved to do business with the agency.
The Act defines State agency to mean those entities included in the definition of "State
agencies" in the Illinois State Auditing Act. Per the Illinois State Auditing Act the definition of a
State Agency includes, "corporate outgrowths of the State government which are created by or
pursuant to statute." Per our interpretation of the Illinois State Auditing Act and how the
Foundation was created, it is our determination the Foundation meets the definition of a State
Agency as noted in the Illinois State Auditing Act. The Act goes on to define "public funds" as
current operating funds, special funds, interest and sinking funds, and funds of any kind or
character belonging to or in the custody of any State agency, which covers the Foundation's
investments.
Foundation personnel stated they did not believe the Act applied to the Foundation.
Failure to post the required information concerning the investment of public funds results in the
Foundation's noncompliance with a statutory requirement. In addition, failure to present the
required information prevents the public from having access to how the Foundation has
invested its funds. (Finding Code No. 11-2, 10-2, 09-2, 08-2)
15
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
SCHEDULE OF FINDINGS
CURRENT FINDINGS- STATE COMPLIANCE
11-2. Finding (Noncompliance with Accountability for the Investment of Public Funds Act (Act)) -
Continued
Recommendation
We recommend the Foundation comply with the requirements of the Act and ensure the
information concerning the investment of public funds is updated monthly by the 15th of each
month.
Foundation Response
The Foundation respectfully disagrees. The Foundation will seek legislation to clarify its
exemption from the Investment of Public Funds Act.
16
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
SCHEDULE OF FINDINGS
CURRENT FINDINGS- STATE COMPLIANCE
11-3. Finding (Disbursement processing weakness)
The Illinois Conservation Foundation (Foundation) did not follow its procedures and policies
regarding disbursement processing. During our testing of cash disbursements, we discovered
the Foundation was not properly obtaining two signatures on all checks written for more than
$5,000.
The Foundation processed 32 disbursements each equal to or more than $5,000. During our
examination of these cancelled checks we found three checks (9%), totaling $36,253, contained
only one signature.
Foundation procedures adopted in October 1995 and updated March 11, 2005 require two
signatures for checks of $5,000 and over unless such payment is made from funds received
from a specific grant agreement and the disbursement furthers the specific purpose of the grant.
Foundation personnel stated the exceptions were due to time constraints and the inability to get
two signatures in a timely fashion.
Failure to obtain the two required signatures increases the risk that errors or irregularities could
occur and not be detected by the Foundation's internal control process.
(Finding Code No. 11-3, 10-3, 09-3)
Recommendation
We recommend the Foundation strengthen controls over disbursement processing by following
its policies and procedures to ensure checks over $5,000 are properly signed by two authorized
signers.
Foundation Response
The Foundation agrees.
17
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
SCHEDULE OF FINDINGS
CURRENT FINDINGS- STATE COMPLIANCE
11-4. Finding (Segregation of duties)
The Illinois Conservation Foundation (Foundation) has two employees, an Executive Director
and a property manager on payroll, and two Contractual employees, the Chief Financial
Officer and the Contract Federal Grant Director. Because of the small size of the Foundation
staff all of the accounting functions are performed by one employee which creates a
segregation of duties issue.
Good internal control would dictate financial responsibilities be divided among the accounting
and administrative staff to provide a system of checks and balances. In addition, the Fiscal
Control and Internal Auditing Act requires agencies to establish and maintain a system, or
systems, of internal fiscal and administrative controls, to provide assurance funds, property,
and other assets and resources are safeguarded against waste, loss, unauthorized use, and
misappropriation.
Foundation personnel stated the small size of the staff makes proper segregation of duties
difficult.
Failure to provide proper segregation of duties in an organization jeopardizes the internal
control and puts the Foundation at risk. (Finding Code No. 11-4, 10-5, 09-5)
Recommendation
We recommend the Board of Directors remain involved in the financial affairs of the
Foundation to provide oversight and independent review functions.
Foundation Response
The Foundation agrees.
18
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
SCHEDULE OF FINDINGS
PRIOR FINDINGS NOT REPEATED- STATE COMPLIANCE
A. Finding (Bank balances in excess of The FDIC insurance limit were not protected by
collateral pledged by the bank)
The Illinois Conservation Foundation (Foundation) did not take timely action during fiscal year
2010 to collateralize (protect) bank balances in excess of the FDIC insurance limit. During our
testing of the bank accounts, we noted one account exceeded the insurance limit on 11
different days for as much as $31,555.
During the current fiscal year all bank balances were below the FDIC insurance limit.
(Finding Code No. 10-1, 09-1, 08-1, 07-2).
B. Finding (Personnel policies not followed)
During the prior audit the foundation did not follow their personnel policies.
During the current audit we will not be repeating this finding.
(Finding Code No. 11-4, 10-4, 09-4)
19
FINANCIAL STATEMENT REPORT
SUMMARY
The audit of the accompanying basic financial statements of the Illinois Conservation Foundation
(A Component Unit of the State of Illinois) (Foundation) was performed by Kyle E. McGinnis,
CPA.
Based on their audit, the auditors expressed an unqualified opinion on the Foundation's basic
financial statements.
SUMMARY OF FINDINGS
The auditors identified matters involving the Agency's internal control over financial reporting
that they considered to be material weaknesses and significant deficiencies. The material
weakness is described in the accompanying Schedule listed in the table of contents as finding Il­l,
(Financial statement preparation). The significant deficiencies are described in the
accompanying Schedule of Findings listed in the table of contents as finding 11-2 (Noncompliance
with Accountability for the Investment of Public Funds Act); finding 11-3 (Disbursement
processing weakness) and finding 11-4 (Segregation of duties).
20
KYLE E. McGINNIS
Certified Public Accountant
MEMBER OF:
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
ILLINOIS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
200 EAST PINE • SPRINGFIELD, ILLINOIS 62704
TELEPHONE: (217) 753-3377 FAX: (217) 753-8922
INDEPENDENT AUDITORS' REPORT
Honorable William G. Holland
Auditor General
State of Illinois
Board of Directors
Illinois Conservation Foundation
Springfield, Illinois
As Special Assistant Auditors for the Auditor General, we have audited the accompanying
financial statements of the governmental activities, each major fund, and the aggregate remaining
fund information of the Illinois Conservation Foundation (A Component Unit of the State of
Illinois) (Foundation) as of and for the year ended June 30, 2011, which collectively comprise the
Foundation's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the Foundation's management. Our responsibility is to express
opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the 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.
In our opinion the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the Foundation as of June 30, 2011, and the respective changes in
financial position thereof for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
January 11, 2012 on our consideration ofthe Foundation's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
21
The Management's Discussion and Analysis on pages 23 through 24 is not a required part of the
basic financial statements but is supplementary information required by accounting principles
generally accepted in the United States of America. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement
and presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.
The Foundation has not presented budgetary comparison information that accounting principles
generally accepted in the United States of America has determined is necessary to supplement,
although not required to be part of, the basic financial statements.
!~{~t~
Springfield, Illinois
January 11, 2012
22
Introduction
Illinois Conservation Foundation
(A Component Unit of the State of Illinois)
Management's Discussion and Analysis (MD&A)
The following Management's Discussion and Analysis (MD&A) provides an introduction
and overview of the Illinois Conservation Foundation's (Foundation) financial activities for
the fiscal year ended June 30, 2011. The Foundation is a not-for-profit corporation created to
provide additional funding for the Illinois Department of Natural Resources' (IDNR)
conservation programs that either are not receiving adequate funding or else cannot be
implemented because State funding is not available. The specific purposes of the corporation
are to solicit and generate private funding and donations that assist in enhancing and
preserving Illinois' natural habitats, historic sites, river and stream corridors, state parks,
forests and fish and wildlife areas. The Foundation also accepts grants for acquisition,
construction and development of IDNR properties, and supports recreational programs of the
IDNR.
The Foundation has agreed to become the federal assistance cooperator in an ongoing urban
and community forestry program in the Chicago metropolitan region. The project, known as
the "Chicago Wilderness Project Coalition", is designed to educate the public to preserve,
restore and care for the biodiversity of this unique region. Implementation of this project is
being accomplished through the use of project partners who are first approved by the
Chicago Wilderness Steering Committee. Partners are area organizations, such as the Nature
Conservancy and the Field Museum, who are best equipped to carry out this project. Grants
and contracts are awarded by the Foundation to approved partners to accomplish specific
parts of the project's overall goals.
Financial Highlights
The net assets of the Foundation totaled $7,510,084 at fiscal year ended June 30, 2011,
compared to $2,959,539 at fiscal year ended June 30, 2010. The Foundation had total
revenue of $2,142,154 and expenditures of $1,986,737 for the fiscal year ending June 30,
2011 for an increase in net assets of $155,417. The Foundation's Natural Resources
Endowment Trust Fund was reported at $1,594,525 as of June 30, 2011.
Overview of the Financial Statements
The Foundation's financial statements are prepared on an accrual basis of accounting in
accordance with accounting principles generally accepted in the United States of America
promulgated by the Governmental Accounting Standards Board and are comprised of the
Statement ofNet Assets, the Statement of Activities and notes to the financial statements.
The Statement of Net Assets presents information on the Foundation's assets and liabilities
and the resulting net assets. This statement also reflects the Foundation's investments, at fair
value, along with the restricted and unrestricted net assets.
23
Overview of the Financial Statements Continued
Condensed Comparative Summary of Net Assets as of June 30
2011/2010
2011 2010 Change
Cash and Cash Equivalents $ 554,692 $ 426,471 $ 128,221
Accounts Receivable 11,687 21,227 ( 9,540)
Accrued Investment Income 11,418 12,474 (1,056)
Prepaid Expenses 4,884 6,980 (2,096)
Investments 2,552,437 2,529,600 22,837
Capital Assets 4.397.224 4.397.224
Total Assets $7,532,342 $2,996,752 $ 4,535,590
Liabilities 22.258 37.213 14,955
Total Net Assets $7.510.084 $22959!539 $ 42550!545
The Statement of Activities presents information regarding changes during the fiscal year
ended June 30, 2011. The statement reflects additions which include the sources of revenue.
Also reflected in the statement are deductions which include program and operating expenses
of the Foundation.
Condensed Comparative Statement of Activities for the Year Ending June 30
2011/2010
2011 2010 Change
Additions:
Governmental Activities $ 6,181,077 $ 1,910,674 $ 4,270,403
General 419,757 268,361 151.396
Total $6,600,834 $2,179.035 $ 4.421.799
Deduction:
Governmental Activities $2,050,289 $ 1,965.019 $ 85.270
Total $2.050,289 $ 1.965,019 $ 85.270
Change in net assets $ 4550545 $ 214!016 $ 4!336!529
Overall, there is an increase in net assets as reflected on the Statement of Activities of
$4,550,545 at June 30, 2011, compared to an increase of$214,016 at June 30, 2010.
24
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
STATEMENT OF NET ASSETS
ASSETS:
Current Assets:
Cash and cash equivalents
Accounts receivable
Accrued investment income
Prepaid expense
Total current assets
Noncurrent Assets:
Investments
Capital assets, net
Total Assets
LIABILITIES:
Current Liabilities:
Accounts payable
Accrued expenses
Total Liabilities
NET ASSETS:
Restricted for:
Natural Resources and Recreation
Endowment-Nonexpendab1e
Unrestricted
JUNE 30, 2011
Investment in Capital Assets, net of related debt
Total Net Assets
GOVERNMENTAL
ACTIVITIES
$
$
$
$
$
$
$
$
554,692
11,687
11,418
4,884
582,681
2,552,437
4,397,224
7,532,342
17,984
4,274
22,258
1,067,636
111,400
1,933,824
4,397,224
7,510,084
The accompanying notes are an integral part of these statements.
25
FUNCTIONS/PROGRAMS
Environment and Business
Regulation:
General Administrative
Natural Resources and Recreation
Total Governmental Activities
General Revenue:
Unrestricted Realized Gain
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2011
PROGRAM REVENUE
OPERATING CAPITAL
CHARGES GRANTSAND GRANTSAND
EXPENSES FOR GOODS CONTRIBUTIONS CONTRIBUTIONS
$ 503,300
1,546,989
$ 2,050,289
$
$
47,342
47,342
$
$
426,511
5,629,737
6,056,248
$
77,487
$ 77,487
Unrestricted Investment -Unrealized Gain
Unrestricted investment earnings
Change in Net Assets
Net assets-Beginning
Net assets-Ending
The accompanying notes are an integral part of these statements.
26
NET
(EXPENSE)
REVENUE
$ (76,789)
4,207,577
$ 4,130,788
9,999
324,022
85,736
$ 4,550,545
2,959,539
$ 7,510,084
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
BALANCE SHEET
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30,2011
SPECIAL
REVENUE PERMANENT
FUND FUND
ASSETS:
Cash and cash equivalents $ 538,584 $ 16,108
Accounts receivable 11,687
Accrued investment income 11,418
Investments 2,441,037 111,400
Total Assets $ 3,002,726 $ 127,508
LIABILITIES AND FUND BALANCES:
Liabilities:
Accounts payable $ 17,984 $
Accrued expenses 4,274
Total Liabilities $ 22,258 $
Fund Balances:
Reserved for:
Natural Resources and Recreation $ 1,051,528 $
Endowment-Nonexpendable 111,400
Education 16,108
Unreserved 1,928,940
Total Fund Balances $ 2,980,468 $ 127,508
Total Liabilities and Fund Balances $ 3,002,726 $ 127,508
The accompanying notes are an integral part of these statements.
27
TOTAL
$ 554,692
11,687
11,418
2,552,437
$ 3,130,234
$ 17,984
4,274
$ 22,258
$ 1,051,528
111,400
16,108
1,928,940
$ 3,107,976
$ 3,130,234
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2011
Total fund balances - governmental funds
Amounts reported for governmental activities in the
statement of net assets are different because:
Prepaid assets used in governmental activities are not
financial resources and, therefore, are not reported
in the funds.
Capital assets used in Governmental Activities are not
financial resources and therefore, are not reported in the funds.
Net assets of governmental activities
$
$
The accompanying notes are an integral part of these statements.
28
3,107,976
4,884
4,397,224
7,510,084
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
SPECIAL
REVENUE PERMANENT
FUND FUND TOTAL
Revenues
Donations-Restricted $ 738,543 $ 57,752 $ 796,295
Grants and Receipts from Governments 488,259 488,259
Investment Income-Restricted 4,875 4,875
Investment Income-Unrestricted 85,736 85,736
Investment Income-Unrestricted Unrealized Gain 324,022 324,022
Investment Income-Unrestricted Realized Gain 9,999 9,999
Investment Income-Restricted Unrealized Gain 14,860 14,860
Donations-Unrestricted 153,890 153,890
Merchandise Sales-Restricted 47,317 47,317
Publication Sales-Restricted 25 25
On-behalf payments 216,876 216,876
Total Revenues $ 2,064,667 $ 77,487 $ 2,142,154
Expenditures
Administrative $ 284,328 $ $ 284,328
Natural Resources and Recreation 1,485,251 282 1,485,533
On-behalf payments 216,876 216,876
Total Expenditures $ 1,986,455 $ 282 $ 1,986,737
Net Change in Fund Balances $ 78,212 $ 77,205 $ 155,417
Fund Balance-Beginning 2,902,256 50,303 2,952,559
Fund Balance-Ending $ 2,980,468 $ 127,508 $ 3,107,976
The accompanying notes are an integral part ofthese statements.
29
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State oflllinois)
RECONCILIATION OF THE CHANGE IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2011
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the
statement of activities are different because:
Changes in Prepaid expense:
Prepaid expense uses current financial resources
and is recorded as an expense in the governmental funds.
Governmental Funds report capital outlays as expenditures. However, in the
Statement of Activities the cost ofthose assets is allocated over their estimated
useful lives and reported as depreciation expense.
Fair market value of contributed assets
Depreciation expense
Capital assets purchases capitalized
Contributed assets expensed
Change in net assets of governmental activities
The accompanying notes are an integral part of these statements.
30
$
$
155,417
(2,096)
4,458,680
(59,062)
13,386
(15,780)
4,550,545
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit ofthe State of Illinois)
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization
The Illinois Conservation Foundation (Foundation) was authorized to be created by Public
Act 88-591 for the purpose of promoting, supporting, assisting, sustaining, and
encouraging the charitable, educational, scientific, and recreational programs, projects, and
policies ofthe Illinois Department ofNatural Resources. The Foundation's activities are
managed by a board of directors, whose members are appointed by the Governor of the
State of Illinois and by the leadership of the Illinois General Assembly.
B. Financial Reporting Entity
The financial statements of the Foundation have been prepared in accordance with
accounting principles generally accepted in the United States of America (GAAP), as
prescribed by the Governmental Accounting Standards Board (GASB).
As defined by GAAP, the financial reporting entity consists of a primary government, as
well as its component units, which are legally separate organizations for which the elected
officials of the primary government are financially accountable. Financial accountability is
defined as:
1) Appointment of a voting majority of the component unit's board and either (a) the
primary government's ability to impose its will, or (b) the possibility that the
component unit will provide a financial benefit to or impose a financial burden on
the primary government; or
2) Fiscal dependency on the primary government.
Based upon the required criteria, the Foundation has no component units. However, the
Foundation is a component unit ofthe State of Illinois. Therefore, the financial statements
ofthe Foundation are included in the financial statements ofthe State of Illinois. The State
of Illinois' Comprehensive Annual Financial Report may be obtained by writing to the
State Comptroller's Office, Division of Financial Reporting, 325 West Adams Street,
Springfield, Illinois 62704-1871.
C. Basis of Presentation
The financial activities of the Foundation, which consist only of governmental activities,
are reported as a component unit in the State of Illinois' Comprehensive Annual Report.
For its reporting purposes, the Foundation has separate fund and government-wide
financial statements and reconciles individual line items of fund financial data to
government-wide data. A brief description of the Foundation's government-wide and fund
financial statements is as follows:
31
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued
Government-wide Statements: The government-wide statement of net assets and
statement of activities report the overall financial activity of the Foundation. The
financial activities of the Foundation consist only of governmental activities, which are
primarily supported by donations and grants.
The statement of activities demonstrates the degree to which the direct expenses of a
given function (i.e. general government) are offset by program revenues. Direct
expenses are those that are clearly identifiable with a specific function. Program
revenues include grants and contributions that are restricted to meeting the operational
or capital requirements of a particular program. Revenues that are not classified as
program revenues are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about
the Foundation's funds. Separate statements for each fund category are presented. The
emphasis on fund financial statements is on a major governmental fund, each displayed
in a separate column.
The Foundation administers the following major governmental funds:
Special Revenue- This is the Foundation's primary operating fund. It accounts for all
financial resources of the Foundation, except those required to be accounted for in
another fund. The services which are administered by the Foundation and accounted for
in the special revenue fund include, among others, promoting, supporting, assisting,
sustaining and encouraging the charitable, educational, scientific and recreational
programs, projects and policies of the Illinois Department ofNatural Resources.
Certain resources obtained from federal grants and used to support Foundation activities
are accounted for in the Special Revenue Fund consistent with applicable legal
requirements.
Permanent- This fund accounts for resources held to provide funds for schools and
other youth organizations to engage in conservation projects that are both useful to the
environment and educational to those involved.
D. Measurement Focus and Basis of Accounting
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when
earned and expenses are recorded at the time liabilities are incurred, regardless of when the
related cash flow takes place. Non-exchange transactions, in which the Foundation gives
(or receives) value without directly receiving (or giving) equal value in exchange, include
grants and donations. On an accrual basis, revenue from grants, entitlements, and similar
items are recognized in the fiscal year in which all eligibility requirements imposed by the
provider have been met.
32
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit ofthe State of Illinois)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- continued
Governmental funds are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are
both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the Foundation considers revenues to be available if they
are collected within 60 days ofthe end ofthe current fiscal year. Expenditures generally
are recorded when the liability is incurred, as under accrual accounting.
Significant revenue sources which are susceptible to accrual include merchandise sales and
investment income. All other revenue sources including grants and donations are
considered to be measurable and available only when cash is received.
Private-sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in the government-wide financial statements to the extent that
those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board.
E. Cash and Cash Equivalents
Cash and cash equivalents are defined as short-term highly liquid investment (including
restricted assets) readily convertible to cash with an original maturity of three months or
less. Cash and cash equivalents include cash in banks and money market accounts held
outside the State Treasury.
F. Inventories
Inventories, consisting of general fund raising merchandise items, are stated at cost and are
recorded as expenditures when consumed rather than when purchased.
G. Investments
Investments are stated at fair value. The Foundation holds investments in marketable
equity securities and debt securities.
H. Capital Assets
Capital assets, which consist of land, building and equipment are reported at cost.
Contributed assets are reported at estimated fair value at the time received. Capital assets
are depreciated/amortized using the straight-line method.
The capitalization threshold for capital assets is $5,000 and the estimated useful life is 3-40
years.
I. Fund Balances
In the fund financial statements, governmental funds report reservations of fund balance
for amounts that are legally restricted by outside parties for use for specific purpose.
J. Net Assets
In the government-wide financial statements, equity is displayed in two components as
follows:
33
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- continued
Restricted - This consists of net assets that are legally restricted by outside parties or by
law through constitutional provisions or enabling legislation. When both restricted and
unrestricted resources are available for use, generally it is the Foundation's policy to use
restricted resources first, then unrestricted resources when they are needed.
Unrestricted- This consists of net assets that do not meet the definition of"restricted."
K. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
NOTE 2: DEPOSITS AND INVESTMENTS
A. Deposits
Cash and Cash Equivalents consist of checking and money market accounts at June 30, 2011.
The Foundation cash and cash equivalents had a bank balance of $585,992 and a carrying
balance of$554,692 at June 30, 2011. The cash and cash equivalents are either deposited in
financial institutions in which the balance is covered by Federal Depository Insurance
Coverage, or are invested in a federal obligation money market mutual fund, that is allowed to
invest only in U.S. Government Securities.
B. Investments
The Foundation's Investment Policy notes their objective is to preserve capital, invest only in
high quality securities and earn reasonable returns. Approximately 25% of donor funds are
required to be invested in order to be available on demand. No single issue shall constitute
more than 5% of the total portfolio, with the exception of government obligations. The
portfolios are to be constructed across different U.S. asset classes (stocks, bonds and cash).
34
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
NOTES TO THE BASIC FINANCIAL STATEMENTS
Investment Summary Schedule
As of June 30, 2011 the Foundation had the following investments and maturities.
Investment Type
U.S. Agency Obligations
Corporate Debt Securities
Total Debt Securities
Fair Value
$ 10,188
Less than 1
$
1 - 5
$ 10,188
363,954
$ 374,142
$
6- 10 More than 10
$
717,822 126,378 24,191
$ 728,010 $ 126,378
203,299
$ 203,299 $ 24,191
Certificate of Deposit
Corporate Equity Securities
International Equity Securities
Mutual Funds
Money Market Funds
Commodities
Real Estate
Total Investments
Interest Rate Risk
126,331
752,514
462,312
427,667
492,240
47,249
8,354
$ 3,044,677
The Foundation does not have a formal investment policy that limits investment maturities as
a means of managing the exposure to fair value losses arising from increasing interest rates.
Interest rate risk can be managed using weighted average maturity (WAM). Weighted
average maturity is calculated taking into consideration call dates, prepayment assumptions
and other features that affect the actual maturity dates of the securities in the consolidated
portfolios. On June 30, 2011 the Foundation's WAM was as follows:
Investment Type
U.S. Agency Obligations
Corporate Debt Securities
Certificate of Deposit
Corporate Equity Securities
International Equity Securities
Mutual Funds
Money Market Funds
Commodities
Real Estate
Fair Value
$ 10,188
717,822
126,331
752,514
462,312
427,666
492,240
47,249
8,354
$3.044.676
35
Weighted Average
Maturity (Years)
3.79
3.58
5.89
0.00
0.00
0.00
0.00
0.00
0.00
3.93
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 2: DEPOSITS AND INVESTMENTS -continued
Concentration of Credit Risk and Credit Risk for Investments
The Foundation does not have a formal investment policy that limits investment choices.
The Foundation investment policy sets forth no single issue shall constitute more than 5% of
the total portfolio, with the exception of government obligations. The following table
presents the quality ratings of debt securities held by the Foundation as of June 30, 2011.
Moody's Quality Fair
Investment Type Rating Value
Corporate Obligations A1 $ 49,499
A2 325,490
A3 77,339
Aa2 134,349
Aa3
B1 24,942
B2
NR 106,203
Total Corporate Obligations $ 717,822
Agency Obligations AAA $ 10,188
Total Agency Obligations $ 10,188
Total Debt Securities $ 728.010
NOTE 3: RESERVED FUND BALANCE
Gifts and donations made to the Foundation that are subject to expenditure for a particular
named project are considered to be restricted donations. That portion of the fund balance that
is the result of restricted donations is reserved for Natural Resources and Recreation purposes.
On October 28, 1996, a private donation of3,500 (5,504 shares adjusted for a 3 for 2 stock
split in December, 2002 and reinvesting a special capital gain in fiscal year 2003) shares of
Adams Express Stock was made to the Foundation for the purpose of establishing a
permanent endowment. The value of the stock as of the date of donation was $70,219. A
donation was made in November 2010 to purchase an additional4,496 shares, to bring the
total holdings of Adams Express Stock to 10,000 shares. Earnings, in the form of dividends,
from these securities are to be used to provide funds for schools and other youth organizations
to engage in conservation projects which are both useful in the environment and educational
to those involved. That portion of the fund balance that is the result ofthe endowment
donation is reserved for Endowment-Nonexpendable. That portion of the fund balance that is
the result of unspent earnings from endowment investments is reserved for Education.
36
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 4: INCOME TAXES
The Foundation is a non-profit corporation exempt from income taxes under Section
501(c)(3) of the United States Revenue Code. As such, donations made to the Foundation are
deductible by the donor.
NOTE 5: RELATED PARTY TRANSACTIONS
The Assistant to the Executive Director was paid by the Illinois Department ofNatural
Resources (Department). The Department also provides office space, equipment and some
administrative expenses for the Foundation, which are immaterial and are not reported in the
financial statements.
The amount of financial assistance from the Department being included in the Foundation's
financial statements for the year ended June 30, 2011 is as follows:
Salaries
Benefits
Total
$ 144,543
72,333
$216.876
The total of $216,876 is included in the Statement of Activities as a General Administrative
revenue and expense; it is included on the Statement of Revenues, Expenditures and Changes
in Fund Balances-Governmental Funds as on-behalf revenues and expense.
NOTE 6: COMMITMENTS
The Foundation has agreed to become the federal assistance cooperator in an ongoing urban
and community forestry program in the Chicago metropolitan region. The project, known as
the "Chicago Wilderness Project Coalition", is designed to educate the public, to preserve,
restore and care for the biodiversity of this unique region. Implementation of this project is
being accomplished through the use of project partners who are first approved by the Chicago
Wilderness Steering Committee. Partners are area organizations, such as the Nature
Conservancy and the Field Museum, who are best equipped to carry out this project. Grants
and contracts are awarded by the Foundation to approved partners to accomplish specific parts
of the project's overall goals.
Over the past ten years the Foundation has been awarded nine grants from the Forest Service
of the U.S. Department of Agriculture and ten grants from the Fish and Wildlife Service of
the U.S. Department of the Interior to partially fund this project. The amounts awarded on
these grants total $7,319,500. In fiscal year 2011 the Foundation paid a total of$358,080 to
Chicago Wilderness Members. Over the past ten years the Foundation has received
$7,006,053 for the Chicago Wilderness partners. The Foundation has negotiated a 5%- 10%
indirect cost rate agreement with the federal funding agencies to cover administrative and
other costs of the project. Six of the grants from the U.S. Department of Agriculture and nine
of the grants from the Department of Interior have been closed.
37
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit ofthe State of Illinois)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 6: COMMITMENTS - continued
The most recent Department of Agriculture award extends through September 30, 2013 and
the latest award from the Department of Interior extends through September 30, 2012.
NOTE 7: NATURAL RESOURCE AND RECREATION EXPENDITURE DETAIL
The Natural Resource and Recreation expenditures are detailed as follows:
Educational Services: Becoming an Outdoor Woman
Special Events: Celebrity Quail Hunt
Chronic Wasting Disease
DNR Diversity Employee Committee
Disabled Outdoor Opportunities Program
Dynegy Midwest Generation Settlement
ENTICE
Federal Grant Expenses
Education Series: Field Interpretation
Chicago Fishing Rodeo
Celebrity Whitetail Hunt
Memorial- Scott White
Hall ofFame Dinner
Creating habitat and Home for Wildlife-Book Sale
ICF Grants
Fisheries Program
Clinton Lake Handicapped Shotgun Deer Hunt
Legislative Caucus
Law Enforcement
Clinton Lake Youth Pheasant Hunt
Illinois and Michigan Trail Projects
Memorial- Todd Fink
NASPYouth
State Parks
Land Acquisition Fund
Rock Cut State Park
Safety Education Program
Sportsmen Against Hunger
Hennepin Canal
FOlD Photographs
ICF/ DU Reception
Schoolyard Habitat Grant
Forestry: Tree Planting
Weatherby Foundation Events
Blackhawk Statue Restoration at Lowden State Park
Wingsshooting Clinic
Special Events: Youth Programs
38
$ 20,071
42,043
7,582
253
3,147
98,114
62,137
460,991
217
1,278
19,033
1,300
78,911
24,236
13,631
1,000
2,103
11,510
13,048
449
3,600
500
19,552
265
144,000
2,455
5,124
39,839
2,800
2,276
4,049
282
49,808
6,750
2,832
13,015
24,076
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit ofthe State of Illinois)
NOTES TO THE BASIC FINANCIAL STATEMENTS
NOTE 7: NATURAL RESOURCE AND RECREATION EXPENDITURE DETAIL­continued
Toretenson Propertyn
Wildlife Resources
Sportsman Raffle
Earth Day in the Parks
Environmental Restoration
Moraine View State Park
National Heritage
Youth Fishing
WSRC Skeet House Sponsorship
Scholarship Fund
2011 Shot Show
Springfield Fundraising Dinner
NOTES: ACCOUNTSRECENABLE
198,388
1,866
37,721
717
1,749
2,297
4,817
23,646
20,507
10,000
1,411
137
$ 1.485.533
At June 30, 2011, the Foundation had accounts receivable of$11,687. This amount consists
of$10,038 in federal grants and $1,649 in miscellaneous receipts. The Foundation considers
all the accounts receivable to be fully collectible.
NOTE 9: RISK MANAGEMENT
The Foundation had workers compensation, liability, automobile, and umbrella insurance
coverage for the fiscal year, and there were no claims for the past three years.
NOTE 10: CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2011 was as follows:
Governmental activities:
Land
Balance
July 1, 2010
$
Capital assets being depreciated:
Building
Equipment
Less: accumulated depreciation:
Building
Equipment
Governmental activities:
Capital Assets, Net $ =====
Additions
$ 2,968,000
1,365,000
123,286
(38,729)
(20,333)
$ 4,397,224
39
Deletions
$
Balance
Transfers June 30, 2011
$ $ 2,968,000
1,365,000
123,286
(38,729)
(20,333)
$ 4,397,224
Illinois Conservation Foundation
(A Component Unit ofthe State of Illinois)
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
SUMMARY
Supplementary information for state compliance purposes presented in this section of the report
includes the following:
Fiscal Schedules and Analysis:
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
Schedule of Changes to Property
Comparative Schedule of Receipts, Disbursements and Fund Balance (Cash Basis)
Analysis of Significant Variations in Expenditures
Analysis of Significant Variations in Revenues
Analysis of Significant Balance Sheet Accounts
Analysis of Accounts Receivable and Accrued Investment Income
Schedule of Indirect Cost Reimbursements
Analysis of Operations:
Agency Functions and Planning Program
Average Number of Employees and Foundation Members
Comparative Schedule of Administrative Expenditures
Service Efforts and Accomplishments (Unaudited)
Schedule ofFederal and Nonfederal Expenditures
The accountants' report that covers the Supplementary Information for State Compliance Purposes
presented in the Compliance Report Section states that it has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in the accountants' opinion,
except for that portion marked "unaudited," on which they express no opinion, it is fairly stated in
all material respects in relation to the basic financial statements taken as a whole.
40
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
Schedule ofExpenditures of
Federal Awards
For the Year Ended June 30, 2011
Federal Other
Federal Grantor/ CFDA Identification Award Award Federal Sub-Grantee
Pro~am Number Number Period Amount Expenditures Awards
Major Programs:
Direct Programs:
U.S De~artment of the Interior:
Fish and Wildlife Enhancement 15.608 30181-6-0050 06/26/06-09/30/11 $ 420,000 $ 11,309 $ 10,522
15.608 30181-7-0058 08/01/07-09/30/12 390,000 5,923 5,641
15.608 30181-7-0058 Mod 1 08/01/08-09/30/12 270,000 1,343 2,125
15.608 30181-7-0058 Mod 2 07/01/09-09/30/12 240,000 127,735 120,505
15.608 30181-7-0058 Mod 3, 4 07/01110-09/30/12 290,000 95,542 90,134
$ 241,852 $ 228,927
Non-Major Programs:
U.S. De~artment of Agriculture
Cooperative Forestry Assistance 10.675 07-DG-11420004-247 07/01107-09/30/11 374,500 $ 53,770 $ 51,209
10.675 07-DG-11420004-247 07/01/07-09/30/11 125,000 36,414 34,353
10.675 10-DG-11420004-269 08/01110-09/30/13 125,000 46,206 43,591
$ 136,390 $ 129,153
Direct Programs:
Forest Land Enhancement Program 10.677 06-DG-11244225-157 05117/06-09/30/10 74,065 $ 6,059 $ 5,508
Fire Crew 10.664 09-DG-11420004-364 08/01/09-09/30/12 50,000 $ 4,785 $ 4,514
Midewin National Tallgrass Prairie 10.xxx 10-PA-11091500-002 07/01110-09/30/11 96,024 $ 48,398 $ 45,658
Wood Education and Resource Center (WERC) 15.631 10-DG-11420004-107 06/01/10-05/31/11 65,000 $ 43,044 $ 39,500
Fish & Wildlife Service Rain Garden Grant 15.631 30181-9-1205 09/30/09-12/31111 18,000 $ 7,731 $ 7,731
15.631 30181-A-1303 09/30/10-12/31112 10,000
Total Federal Awards and Expenditures $2,547,589 $ 488,259 $ 460,991
See accompanying notes to the schedule of expenditures of federal awards.
41
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2011
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Note 1 -Basis ofPresentation:
The accompanying schedule of expenditures of federal awards includes the federal grant activity o1
the Illinois Conservation Foundation and is presented on the accrual basis of accounting. The
information on this schedule is presented in accordance with the requirements of
OMB Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations."
Therefore, some amounts presented in this schedule may differ from amounts presented in, or
used in presentation of, the basic financial statements.
Note 2 - Amounts Provided to Subrecipients:
The Foundation provided $358,080 to various members of the Chicago Wilderness Coalition
during the fiscal year ended June 30, 2011.
Note 3 - Determination of Type A Programs:
Program 15.608 has been determined to be a Type A program.
Note 4- Administrative Costs:
Federal expenditures include $27,268 of administrative costs.
Note 5 - Non-Cash Assistance:
The Foundation did not receive any non-cash assistance during the year ended June 30, 2011.
42
Balance at June 30,2010
Additions
Retirements and disposals
Balance at June 30, 2011
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
Schedule of Changes in Property
For the Years Ended June 30, 2011 and 2010
Building and
Improvements Equipment Land Total
$ - $ - $ - $
1,365,000 123,286 2,968,000 4,456,286
$ 1,365,000 $ 123,286 $ 2,968,000 $ 4,456,286
43
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit ofthe State of Illinois)
Comparative Schedule of Receipts, Disbursements and Fund Balance (Cash Basis)
For the Years Ended June 30, 2011 and 2010
2011 2010
Cash and cash equivalents, beginning $ 426,471 $ 385,930
Receipts:
Donations 952,382 909,998
Grants and Receipts from Other Governments 497,609 897,444
Merchandise Sales 47,317 47,663
Publication Sales 25 630
Investment Income 91,667 85,993
Sale of Investments 1,846,218 1,744,896
Disbursements:
General Administrative (289,687) (160,845)
Programs (1,497,136) (1,825,976)
Purchase of investments (1,520,174) (1,659,262)
Cash and cash equivalents, ending $ 554,692 $ 426,471
44
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
Analysis of Significant Variations in Expenditures
For the Years Ended June 30,2011 and2010
Program 2011 2010
(1) Land Acquisition 144,000
(2) Dynegy Midwest Settlement 98,114 169,782
(3) Midwest Fish & Wildlife Conference 110,050
(4) Torstenson Property 198,388
(5) Sportsman Against Hunger 39,839 10,039
(6) Forestry-Tree Planting 49,808 150,034
(7) Celebrity Whitetail Hunt 19,033
(8) Sportsman Raffle 37,721 14,413
(9) Youth Fishing 23,646 719
(10) Creating Habitat & Home for Wildlife 24,236 10
(11) General Administrative Expenses 284,328 163,943
( 12) Macy's Promotion 38,592
(13) Federal Funds 460,991 827,826
Increase
(Decrease) %
144,000 100.0%
(71,668) -42.2%
(110,050) -100.0%
198,388 100.0%
29,800 296.8%
(100,226) -66.8%
19,033 100.0%
23,308 161.7%
22,927 3188.7%
24,226 2422.6%
120,385 73.4%
(38,592) -100.0%
(366,835) -44.3%
( 1) Land acquisition increased $144,000 or 100% in fiscal year 2011. The Foundation contributed toward a
major land acquisitions in fiscal year 2011 and there weren't any land purchases in fiscal year 2010.
(2) Dynegy Midwest Expenditures decreased $71,668 or 42.2% during fiscal year 2011. This project was
winding down and fewer funds were available for expenditure.
(3) Midwest Fish and Wildlife conference expenditures decreased $110,050 or 100%. This conference was
held in Illinois in fiscal year 2010 and not in fiscal year 2011.
45
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
Analysis of Significant Variations in Expenditures
For the Years Ended June 30, 2011 and 2010
(4) Torstenson property expenditures increased $198,388 or 100% in fiscal year 2011. This was a new
project in fiscal year 2011.
(5) Sportsman Against Hunger expenditures increased $29,800 or 296.8% in fiscal year 2011. This increase
was due to an increase in activity in this project. There was an increase demand for payments to venders for
deer processing, venison is distributed to food pantries throughout the state.
(6) Forestry Tree Planting expenditures decreased $100,226 or 66.8% in fiscal year 2011. This decrease was
caused by a reduction in resources for the forestry program. The Foundation received a donation, in a prior
fiscal year, to place trees. They are nearing the end of this programs resources and are slowly drawing down
the funds each year.
(7) The Celebrity Whitetail Hunt expenditures increased $19,033 or 100% in fiscal year 2011. This was a new
project in fiscal year 2011.
(8) New Sportsmen Raffle expenditures increased $23,308 or 161.7% in fiscal year 2011. This event took
place late in fiscal year 2010 and the prize money was not disbursed until fiscal year 2011.
(9) Youth Fishing expenditures increased $22,927 or 3188.7% in fiscal year 2011. This was a new project in
fiscal year 2011.
(10) Creating Habitat & Home for Wildlife increased $24,226 or 2422.6% in fiscal year 2011. This was a new
project in fiscal year 2011.
(11) General Administrative Expenses increased $120,385 or 73.4% in fiscal year 2011. This increase was
caused by the Executive Director position being vacant most of fiscal year 2010.
(12) Macy's Promotion expenditures decreased $38,592 or 100% in fiscal year 2011. This was a one time
promotion and all the proceeds were paid out in fiscal year 2010.
(13) Federal Funds expenditures decreased $366,835 or 44.3% in fiscal year 2011. This decrease was the
direct result of a reduction in funding of the Chicago Wilderness project during fiscal year 2011. In addition to
this project there appears to be less availability of grant proceeds over all. The grants that the Foundation
routinely participate in are getting smaller and some are no longer available.
46
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
Analysis of Significant Variations in Revenues
For the Years Ended June 30, 2011 and 2010
Increase
Program 2011 2010 (Decrease) %
(1) Grants and Receipts from Government 488,259 893,248 (404,989) -45.3%
(2) Investments Income - Restricted Unrealized
Gain (Loss) 14,860 3,468 11,392 328.5%
(3) Investment Income - Unrestricted
Unrealized Gain (Loss) 324,022 122,265 201,757 -165.0%
(4) Investment Income - Unrestricted Realized
Gain (Loss) 9,999 63,491 (53,492) -84.3%
(5) Investment Income - Restricted 4,875 2,477 2,398 -96.8%
(6) Donations- Unrestricted 153,890 120,825 33,065 27.4%
(7) On-behalf Payments 216,876 90,674 126,202 139.2%
(1) Grants and Receipts from Governments decreased $404,989 or 45.3% in fiscal year 2011. This decrease
was caused by a decrease in the activity of the project. There is a decrease in the availability of grant
funds, and some projects are no longer available. Furthermore, it is not cost effective for the Foundation
to participate in these projects and have not renewed some of the grant programs.
(2) Investment Income- Restricted Unrealized Gain (Loss) increased $11,392 or 328.5% in fiscal year 2011.
This increase was due to the improvement in the overall financial market.
(3) Investment Income- Unrestricted Unrealized Gain (Loss) increased $201,757 or 165.0% in fiscal year
2011. This increase was due to the improvement in the overall fmancial market.
(4) Investment Income- Unrestricted Realized Gain (Loss) decreased $53,492 or 84.3% in fiscal year 2011.
This increase was caused by normal fluctuations in the timing of realized gains or losses.
(5) Investment Income- Restricted increased $2,398 or 96.8% in fiscal year 2011. This increase was the
result of additional restricted investment purchases during the current fiscal year.
(6) Donations- Unrestricted increased $33,065 or 27.4% in fiscal year 2011. This increase was caused by an
increase in receipts from the Celebrity Whitetail Hunt, Sportsman Raffle and Point of Sale License System
Donations.
(7) On-behalf payments increased $126,202 or 139.2% in fiscal year 2011. This increase was caused by the
establishment of an additional employee assigned to the Foundation.
47
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
Analysis of Significant Balance Sheet Accounts
For the Years Ended June 30, 2011 and 2010
2011 2010
( 1) Accounts Receivable $ 11,687 $ 21,227
(2) Accounts Payable 17,984 31,651
(3) Cash and Cash Equivalents 554,692 426,471
Increase
(Decrease) %
$ (9,540) -44.9%
(13,667) -43.2%
128,221 30.1%
(1) Accounts receivable decreased $9,540 or 44.9% in fiscal year 2011, this figure is primarily made up
of federal funding receivables. The Foundation is reducing their involvement in these programs, due to
decreased availability of funds.
(2) Accounts payable decreased $13,667 or 43.2% in fiscal year 2011, due to a decrease in federal
funding.
(3) Cash and cash equivalents increased $128,221 or 30.1 %. The increase was due to a large amount of
the investment funds deposited into cash because of the volatility in the market.
48
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit ofthe State of Illinois)
Analysis of Accounts Receivable and Accrued Investment Income
For the Years Ended June 30,2011 and 2010
2011 2010
(1) Accounts Receivable $ 11,687 $ 21,227
(2) Accrued Investment Income 11,418 12,474
Decrease
$ (9,540)
(1,056)
(1) Accounts Receivable consists of a)amounts due from the sale of deer and turkey pins prior to June
30, 2011 and funds not remitted until after July 1, 2011 and b) amounts due from the Grantor Agency
for federal expenditures incurred in fiscal year 2011 but not reimbursed until July, 2011 and c)
amount due from ENTICE Program and d) amount due from Earth Share of Illinois and e)
registration fees received before June 30, 2011 but not deposited until July 2011.
a) Under 60 days old- $ 290
b) Under 60 days old- 10,038
c) Under 60 days old- 831
d) Under 60 days old- 408
e) Under 60 days old- 120
$ 11,687
(2) Accrued investment income consists of interest earned on cash equivalents for the year ending
June 30, 2011 but not remitted until July, 2011.
49
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State oflllinois)
Schedule of Indirect Cost Reimbursements
For the Years Ended June 30, 2011 and 2010
The indirect cost reimbursements are based on rates negotiated with the U.S. Department oflnterior
and the U.S. Department of Agriculture. These indirect cost reimbursements provide funding for
allowable program costs that are incurred for a common purpose and are not assignable to specific
cost objectives. Indirect cost reimbursements are deposited into the Foundations checking account.
Following are reimbursements deposited during fiscal year 2011 and 2010:
Federal Programs/Grants 2011 2010
U.S. Department oflnterior
Fish and Wildlife Enhancement $ 12,925 $ 34,086
U.S. Department of Agriculture
Cooperative Forestry Assistance 7,237 18,251
Forest Land Enhancement Program 551 5,232
Fire Crew 271 6,216
Wood Education and Resource Center (WERC) 3,544
Midewin National Tallgrass Prairie 2,740 1,637
Total Indirect Cost Reimbursements $ 27,268 $ 65,422
50
Agency Function
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit ofthe State of Illinois)
Agency Functions and Planning Program
June 30, 2011
The Illinois Conservation Foundation (Foundation) was authorized to be created by the Illinois
Department of Conservation (a predecessor agency of the Illinois Department ofNatural
Resources) by Public Act 88-591 on August 20, 1994. The role ofthe Foundation is to provide
additional funding for the Illinois Department of Natural Resources' conservation programs that
are either not receiving adequate State funding or cannot be implemented because State funding
is not available (20 ILCS 880/1 0).
The Foundation's Board of Directors are appointed as follows:
1 appointment designated by Statute
2 by the President of the Illinois Senate
2 by the Minority Leader of the Illinois Senate
2 by the Speaker of the Illinois House of Representatives
2 by the Minority Leader of the Illinois House of Representatives
4 by the Governor
The Director of the Illinois Department ofNatural Resources serves as the Chairman of the
Board of Directors.
Planning Program
The Foundation has adopted a Mission Statement. Guidelines have been established as stated in
the Illinois Conservation Foundation Act and the Foundation's Operating Procedures Manual.
MISSION STATEMENT
For a brief moment in time, the earth is ours-not to waste or own-but to share with creatures,
great and small.
The role of the Illinois Conservation Foundation and its partners is to preserve and enhance our
natural resources by supporting and fostering ecological, educational, and recreational
programs for the benefit of all people now and for generations to come.
51
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit ofthe State of Illinois)
Agency Functions and Planning Program
June 30, 2011
GUIDELINES
The Foundation is a not-for-profit corporation incorporated on March 7, 1995 under the laws of
the State of Illinois. Its purposes are charitable and educational.
The Foundation is organized exclusively for charitable and educational purposes within the
meaning of Section 501 (c) (3) of the Internal Revenue Code of 1954. As delineated by the
Illinois Conservation Foundation Act (20 ILCS 880), the specific purposes of the Foundation are:
a) to promote, support, assist, sustain and encourage the charitable, educational, scientific, and
recreational programs, projects, and policies of the Illinois Department ofNatural Resources;
b) to solicit and accept aid or contributions consistent with the stated intent of the donor and the
goals ofthe Foundation;
c) to accept grants for the acquisition, construction, improvement, and development of potential
Foundation projects; and
d) to solicit and generate private funding and donations that assist in enhancing and preserving
Illinois' natural habitats, historic sites, river and stream corridors, state parks, forests and fish
and wildlife areas.
52
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State of Illinois)
AVERAGE NUMBER OF EMPLOYEES AND FOUNDATION MEMBERS
The following table, prepared from Foundation records, presents the average number of
Foundation employees and the average number of Foundation Members, for the fiscal year ended
June 30,
Fiscal Year
2009
2010
2011
Employees
1
1
1
53
Foundation Members
13
13
12
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit of the State oflllinois)
Comparative Schedule of Administrative Expenditures
For the Years Ended June 30, 2011 and 2010
Accounting
Director's Salary
General Administrative
Total Administrative Expenditures
TOTAL EXPENDITURES
% of Administrative Expenditures to
Total Expenditures
2011
$ 22,209
127,027
135,092
$ 284,328
$ 1,986,737
14.31%
54
2010
$ 21,775
32,869
109,299
$ 163,943
$ 1,964,994
8.34%
Increase
(Decrease)
$ 434
94,158
25,793
$ 120,385
ILLINOIS CONSERVATION FOUNDATION
(A Component Unit ofthe State of Illinois)
Analysis of Operations
Service Efforts and Accomplishments
(Unaudited Disclosures by Agency Management)
• The Foundation administers the Chicago Wilderness Cooperative Forestry Assistance
program and works with many natural resources organizations in the northeastern Illinois
six county area. The program has been funded over the past 10 years by $7,319,500 in
grants from the U.S. Forest Service and the U.S. Fish and Wildlife Service.
• The Foundation administered distribution of $98,114 for various Illinois Department of
natural Resources projects from Court ordered environmental decrees or settlements.
• The Foundation coordinated the fundraising for the various youth programs, scholarships,
and special events.
• The Foundation provided $49,808 to the Illinois Department of Natural Resources for tree
nursery production.
• The Foundation funded 2 grants totaling $10,000 of non-federal money to various entities
for educational and environmental programs.
• The Foundation issued 66 Illinois Biodiversity Field Trip grants totaling $62,13 7.
• The Foundation provided $144,000 for acquisition of land by the Illinois Department of
Natural Resources.
• In August 2010 the Foundation accepted a donation of 742 acres of exceptional wildlife
habitat near Pecatonica in Winnebago County to serve as a youth conservation education
center operated by the Foundation.
55