REPORT DIGEST EASTERN ILLINOIS UNIVERSITY FINANCIAL AND COMPLIANCE AUDIT (In Accordance with the Single Audit Act and OMB Circular A-133) For the Year Ended: Summary of Findings: Total this audit 6 Release Date:
State of Illinois WILLIAM G. HOLLAND AUDITOR GENERAL To obtain a copy of the Report contact: (217)782-6046 or TDD (217) 524-4646 This Report Digest is also available on |
SYNOPSIS
{Expenditures and Activity Measures are summarized on the reverse page.} |
EASTERN ILLINOIS UNIVERSITY
FINANCIAL AND COMPLIANCE AUDIT
For The Period Ended June 30, 2000
| FINANCIAL OPERATIONS (CURRENT FUNDS) | FY 2000 |
FY 1999 |
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| REVENUE Appropriations Total Revenue EXPENDITURES AND MANDATORY TRANSFERS Instruction Total Expenditures and Mandatory Transfers |
$47,628,378 $144,713,439
$138,276,194 |
$44,957,800 $137,622,033
$131,766,444 |
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| SELECTED ACCOUNT BALANCES (ALL FUNDS) | JUNE 30, 2000 |
JUNE 30, 1999 |
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| Cash and
investments Buildings, land, and equipment Accrued compensated absences Revenue bonds payable Fund balances (deficit): Current Unrestricted |
$39,872,911 $187,492,926 $15,939,645 $46,515,000 $(7,961,534) |
$40,143,377 $186,227,580 $16,115,342 $47,215,000 $(6,667,311) |
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| SUPPLEMENTARY INFORMATION (Unaudited) | FY 2000 |
FY 1999 |
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| Employment
Statistics Faculty/administrative Total Employees Selected Activity Measures Annual full-time equivalent students |
823 1,985
9,775 |
832 2,014
10,207 |
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| UNIVERSITY PRESIDENT | ||||
During Audit Period: Dr. Carol Surles |
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Inaccurate test counts, pricing errors, and duplicate accounting
Expenditures totaling $404,000 were not recorded
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FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER INVENTORY The University did not have adequate controls over its commodity inventories. The total value of the University's inventory at June 30, 2000 was $1,662,424. The following issues were noted:
Good business practices require internal controls to be in place to maintain effective accounting over assets and to ensure assets are properly reported and safeguarded. This finding has been repeated since 1998. We recommended the University ensure a proper physical inventory is performed at year-end, proper documentation is maintained for inventory costs, and inventory costs per item are complete and accurate. (Finding 1, pages 22-23) University officials responded they will review the physical inventory procedures and take appropriate cost effective measures to reduce counting and pricing errors. ACCOUNTS PAYABLE NOT PROPERLY REPORTED The University did not properly classify some material expenditures as accounts payable on June 30, 2000. We noted seven invoices totaling approximately $404,000 that should have been classified at year-end as accounts payable and had not been recorded as such. Generally accepted accounting principles require that the accounts payable balance include items for which the University has a liability based on receipt or occurrence. The audited financial statements for the fiscal year ended June 30, 2000 have been adjusted for these omissions. We recommended the University closely examine vouchers when determining whether an expenditure is an accounts payable at year-end. (Finding 2, page 24) University officials concurred with our recommendation and responded they will more closely examine vouchers to determine accounts payable at year-end. OTHER FINDINGS The remaining findings are less significant and are being given attention by the University. We will review progress toward implementing these recommendations in our next audit. Responses to the recommendations were provided by Mr. Jeffrey L. Cooley, Acting Vice President for Business Affairs. AUDITORS' OPINION Our auditors state the University's financial statements as of and for the year ended June 30, 2000 are fairly presented in all material respects. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:GSS:pp SPECIAL ASSISTANT AUDITORS Doehring, Winders & Co. LLP were our special assistant auditors on this engagement. DIGEST FOOTNOTES #1 INADEQUATE INVENTORY CONTROLS - Previous Agency Responses 1999: "The University will continue to implement and strengthen year-end physical inventory procedures in the Facilities Planning and Management area. As stated in the finding, we were aware that initial June 30, 1999 inventory counts might have excluded certain items. Consequently, the University took appropriate action to accurately reflect the inventory value in the June 30, 1999 financial statements. The University is taking steps to ensure that inventory stored at Facilities Planning and Management is adequately secured." 1998: "The Director of Facilities Planning and Management has prepared a draft policy emphasizing the importance of and need for the year-end physical inventory. Specific, detailed procedures are being developed for the eight departments within Facilities Planning and Management to ensure standard inventory procedures are followed and appropriate inventory records are maintained." |