REPORT DIGEST

EASTERN ILLINOIS UNIVERSITY

Single Audit and Compliance Examination
For the One Year Ended June 30, 2013


Release Date:   March 26, 2014

Summary of Findings:
• Compliance:   5
• Financial Audit (released 12-19-13):   0
Total findings:   5
Total last audit:   16
Repeated from last audit:   5

State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL

To obtain a copy of the Report contact:
Office of the Auditor General, Iles Park Plaza,
740 E. Ash Street, Springfield, IL 62703
(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

SYNOPSIS

This digest covers our Single Audit and
compliance examination of the Eastern Illinois
University for the year ended June 30, 2013.  A
financial audit as of and for the year ending
June 30, 2013, was previously released on
December 19, 2013.

• The University did not exercise adequate
internal controls over the University’s
vehicles.

• The University needs to improve compliance
with the University Faculty Research and
Consulting Act.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NEED TO IMPROVE CONTROLS OVER VEHICLES

Eastern Illinois University (University) did not
exercise adequate internal controls over the
University’s vehicles.

The auditors noted the following:

• The University did not collect and maintain
odometer readings on a regular basis for
University owned vehicles.

• The University did not have a policy in place
regarding all University-owned vehicles to
undergo regular service and/or repairs in order
to maintain the vehicles in a road worthy and
safe operating condition.

During University-owned vehicle maintenance
testing, the auditors noted:

• Two of 40 (5%) vehicles tested were driven
over 7,000 and 15,500 miles with a year between
regular maintenance.  The University did not
require maintenance records to be submitted for
services performed at other locations.
Additionally, the second vehicle’s maintenance
was not performed at regular intervals because
the vehicle was not available for service at the
time.

• Two of 40 (5%) vehicles did not have recorded
odometer readings during Fiscal Year 2013 or
vehicle maintenance records.  The University did
not require maintenance records to be submitted
for the services performed at other locations
for these vehicles. (Finding 2, pages 20-21)

We recommended the University:

• Collect, maintain, and review odometer
readings on a regular basis to provide assurance
University-owned vehicles are being properly
used and whether each vehicle can be justified
as the most cost effective solution for the
University’s specific operational needs;

• Adopt a policy and implement internal controls
to ensure all University vehicles undergo
regular service and/or repair.

University officials agreed with the
recommendation, indicating they will continue to
centralize responsibility for collecting
periodic odometer readings from University
vehicles and will work to ensure that each
vehicle receives routine maintenance.

NEED TO IMPROVE COMPLIANCE WITH THE UNIVERSITY
FACULTY RESEARCH AND CONSULTING ACT

The University did not always ensure compliance
with the University Faculty Research and
Consulting Act.

During testing, the auditors noted the
following:

• Seven of ten (70%) request forms for outside
employment were submitted by faculty members
between one and 154 days after the outside
services began.

• Nine of ten (90%) approvals for outside
employment request forms submitted by faculty
members were approved by the University’s
provost between four to 163 days after outside
services began.

• Three of ten (30%) full-time faculty members
approved for outside employment did not complete
an annual statement of the amount of time spent
on outside employment with the University’s
provost. (Finding 3, pages 22-23)

We recommended the University enhance the
internal controls to ensure faculty members with
outside research or consulting services receive
written pre-approval to conduct the requested
activity and annually disclose time spent on
these activities in accordance with State law.

University officials agreed with the
recommendation and stated they will continue to
remind faculty of their responsibilities under
this statute. The University would also work
with faculty members to provide timely approval
of their outside research and consulting
services and obtain an appropriate indication of
time spent on the outside projects.

OTHER FINDINGS

The remaining findings are reportedly being
given attention by the University.  We will
review the University’s progress towards the
implementation of our recommendations in our
next audit.

AUDITORS’ OPINION

The auditors conducted a State compliance
examination and federal Single Audit of the
University for the year ended June 30, 2013.  A
financial audit of the University as of and for
the year ended June 30, 2013, was previously
released.

WILLIAM G. HOLLAND
Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this
engagement were CliftonLarsonAllen, LLP.