REPORT DIGEST

CHICAGO STATE UNIVERSITY

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2023

Release Date:  May 23, 2024

FINDINGS THIS AUDIT: 16

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  2 -- 1 -- 3
Category 2:  3 -- 10 -- 13
Category 3:  0 -- 0 -- 0
TOTAL:  5 -- 11 -- 16

FINDINGS LAST AUDIT: 14

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, AUDITOR GENERAL

To obtain a copy of the Report contact:
Office of the Auditor General, 400 West
Monroe, Suite 306, Springfield, IL
62704-9849
(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are also
available on the worldwide web at
www.auditor.illinois.gov

INTRODUCTION

This digest covers the Compliance
Examination of Chicago State University
(University) for the year ended June 30,
2023.  A separate digest covering the
University’s financial audit as of and for
the year ended June 30, 2023, was previously
released on February 22, 2024.  In addition,
a separate digest covering the University’s
Single Audit for the year ended June 30,
2023, was previously released on March 28,
2024.  In total, this report contains
sixteen findings, six of which were reported
in the Financial Audit and Single Audit
collectively.

SYNOPSIS

•  (23-07) The University did not have
adequate controls over equipment.

•  (23-10) The University did not fully
comply with the requirements of the Chicago
State University    Law regarding flexible
hours positions.

•  (23-15) The University did not have
adequate controls over contractual services
expenditures.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS


INADEQUATE CONTROLS OVER EQUIPMENT

The Chicago State University (University)
did not investigate missing equipment items
during its annual inventory count.

We reviewed the University’s Annual
Certification of Inventory (Certification)
submitted to the Department of Central
Management Services (CMS). The Certification
reported 150 unlocated items amounting to
$748,156 or 4% of the total dollar amount of
University equipment. Of the 150 unlocated
equipment items:

• 46 (31%) items consisting of chassis,
controller wireless blades, power protector,
UPS system, video conferencing equipment,
camcorder, network switches, and laptops
totaling $526,956 were missing from the
Information Technology Department.

• 11 (7%) items consisting of scrubbers, air
conditioners, rotary scroll compressor,
motor control center, and a sewer camera
totaling $74,630 were missing from the
Physical Facilities and Planning Management
Department.

• 60 (40%) laptops totaling $30,900 were
missing from the Athletics Department.

• Six (4%) items consisting of laptops,
blood perfusion monitor, Millar Pressure-
Volume 300 Foundation system totaling
$48,739 were missing from the College of
Pharmacy.

• Nine (6%) items consisting of laptops and
central processing units totaling $9,373
were missing from the Education Opportunity
Center.

• 18 (12%) items consisting of laptops,
central processing units, UPS, microphone,
tablets, and a copier totaling $57,559 were
missing from the Admission, Pharmacy
Practice, Enrollment Management, Biological
Sciences, Advanced Studies in Education,
Center for Stem Education, Student Affairs,
Daycare Center, and Pharmaceutical Sciences
Departments. (Finding 7, pages 25-26)

We recommended the University strengthen
controls over equipment and investigate or
reexamine large discrepancies identified
during its annual inventory counts.

University officials agreed with the finding
and indicated an internal asset validation
process is in place currently which requires
University Department Equipment Managers to
complete investigation and re-inventory
procedures of missing assets.

NONCOMPLIANCE WITH THE CHICAGO STATE
UNIVERSITY LAW

The University did not fully comply with the
requirements of the Chicago State University
Law regarding flexible hours positions.

The University Board of Trustees (Board)
established goals for flexible hours
positions at the University. The Board
passed a resolution in 2013 to achieve a
goal of having 20% of its employees working
flexible schedules by 2016. During testing,
we noted the University reached its 20%
goal; however, the University did not begin
the process of evaluating the effectiveness
and efficiency of the flexible hours
program. (Finding 10, page 34)   This
finding has been reported since 2021.

We recommended the University evaluate the
effectiveness and efficiency of the program
in compliance with the requirements of the
Chicago State University Law.

University officials agreed with the
recommendation and stated the University was
implementing a corrective action plan to
demonstrate an evaluation on the efficiency
and effectiveness of the flexible hours
program.

INADEQUATE CONTROLS OVER CONTRACTUAL
SERVICES EXPENDITURES

The Chicago State University (University)
did not have adequate controls over
contractual services expenditures.

During our review of 40 contracts (totaling
$2,667,966), including purchase orders,
executed during the fiscal year ended June
30, 2023, we noted the following:

• Eight contracts (totaling $377,841) were
executed subsequent to the start date of the
contracts. The contract execution dates were
17 and 89 days from the commencement of
services.

• One exempt purchase (totaling $117,149)
was not published timely in the Illinois
Procurement Bulletin.

• Two contracts (totaling $148,708) were not
signed by the University President.

• Fifteen contracts (totaling $665,504) were
not supported with three price quotations
and at least one of the three quotes from a
Business Enterprise Program Certified
Vendor.

In addition, during testing of a real
property contract (totaling $1,282,500)
executed during the fiscal year 2023, the
University did not obtain the disclosure
form from the lessor. (Finding 15, pages
43-45)  This finding has been reported since
2016.

We recommended the University establish
appropriate procedures to ensure all
contracts are signed and executed prior to
the commencement of services. Further, we
recommended the University review its
procedures to ensure disclosures are
obtained prior to the execution of
contracts, exempt purchases are timely
published in the Illinois Procurement
Bulletin, and contracts are supported by
three price quotes in accordance with the
State statutes and guidelines. Lastly, we
recommended the University obtain the real
estate disclosure form for each real
property contract executed in accordance
with the Public Officer Prohibited
Activities Act.

University officials agreed with the
recommendation indicating additional staff
would be hired within Procurement Services
during the course of FY25 which will allow
for increased efforts to ensure compliance
with all applicable requirements.

OTHER FINDINGS

The remaining findings pertain to inadequate
internal controls over census data,
compliance with Illinois Pension Code,
personal services and service providers;
failure to provide uniform resource locator
to Department of Education, notify students
and parents upon disbursement of funds,
comply with established procurement
procedures, and prepare and file the Agency
Workforce Report; weaknesses over computer
security, cybersecurity programs and
practices and maintenance of employment
eligibility verification forms;
noncompliance with the Chicago State
University Law, inadequate disaster recovery
process and change control weaknesses. We
will review the University’s progress
towards the implementation of our
recommendations in our next engagement.


AUDITOR’S OPINIONS

The financial audit was previously released.
Our auditors stated the financial statements
of the University as of and for the year
ended June 30, 2023 are fairly stated in all
material respects.
The single audit was previously released.
Our auditors conducted a Single Audit of the
University as required by the Uniform
Guidance and stated the University complied,
in all material respects, with the types of
compliance requirements that could have a
direct and material effect on the
University’s major federal programs for the
year ended June 30, 2023.

ACCOUNTANT’S OPINION

The accountants conducted a State compliance
examination of the University for the year
ended June 30, 2023, as required by the
Illinois State Auditing Act.  The
accountants qualified their report on State
compliance for Findings 2023-003, 2023-007,
and 2023-008. Except for the noncompliance
described in these findings, the accountants
stated the University complied, in all
material respects, with the requirements
described in the report.

This State Compliance Examination was
conducted by Roth & Company, LLP.

JANE CLARK
Division Director

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:vrb