REPORT DIGEST

GOVERNORS STATE UNIVERSITY

Single Audit and Compliance Examination
For the Year Ended June 30, 2015

Release Date:  March 10, 2016

FINDINGS THIS AUDIT:  7

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  2 -- 5 -- 7
Category 3:  0 -- 0 -- 0
TOTAL:  2 -- 5 -- 7

FINDINGS LAST AUDIT: 6

Category 1:	Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State
laws and regulations (material
noncompliance).
Category 2:	Findings that are
significant deficiencies in internal
control and noncompliance with State laws
and regulations.
Category 3:	Findings that have no
internal control issues but are in
noncompliance with State laws and
regulations.

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, 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

INTRODUCTION

This digest covers our Single Audit and
Compliance Examination of Governors State
University for the year ended June 30,
2015.  A separate Financial Audit as of
and for the year ending June 30, 2015, was
previously released on January 26, 2016.

SYNOPSIS

• (15-4) The University did not comply
with the federal reporting requirement of
a grant from the Veterans Benefits
Administration.

• (15-6) The University needs to improve
controls over verification of information
included on a job applicant’s resume or
application prior to hiring.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH FEDERAL REPORTING
REQUIREMENTS

Governors State University (University)
did not comply with the federal reporting
requirement of a grant from the Veterans
Benefits Administration of the U.S.
Department of Veterans Affairs (VA).

During our detail testing of 25 students,
we noted the following:
•Enrollment status change for a student
was not reported to the VA within 30 days
from the date change the occurred (53 days
late).
• Enrollment status change for a student
was not reported to the VA, which resulted
in an overpayment to the student.  The
University subsequently reported the
enrollment status change to the VA after
being noted during the audit.  (Finding 4,
pages 24-25)

We recommended the University improve its
procedures to ensure compliance with
reporting requirements.

University officials agreed with the
finding and stated they have hired and
trained staff to reduce the probability of
this occurring in the future.

NEED TO IMPROVE CONTROLS OVER VERIFICATION
OF JOB APPLICANT’S INFORMATION

The University did not have adequate
controls over verification of information
included on a job applicant’s resume or
application prior to hiring.

During our testing of the University’s
compliance with its policy and procedures
for verification of information included
on a job applicant’s resume or
application, we noted five of ten employee
personnel files reviewed did not have the
reference check form which is a required
verification document.  (Finding 6, pages
28-29)

We recommended the University evaluate its
internal control process to ensure that
policy and procedures are complied with.

University officials agreed with the
finding and stated that they have
implemented procedures to ensure that all
required documentation is forwarded to the
Human Resources Department.
OTHER FINDINGS

The remaining findings are reportedly
being given attention by University
officials. We will review progress toward
implementation of our recommendation in
our next audit.

AUDITOR’S OPINION

The financial audit report was previously
released.  The auditors stated the
financial statements of the Governors
State University as of and for the year
ended June 30, 2015, are fairly stated in
all material respects.

The auditors also conducted a Single Audit
of the University as required by OMB
Circular A-133.  Our auditors stated the
University complied, in all material
respects, with the types of compliance
requirements that could have a direct and
material effect on each of the
University’s major federal programs for
the year ended June 30, 2015.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the University for the year
ended June 30, 2015, as required by the
Illinois State Auditing Act.  The auditors
stated the University complied, in all
material respects, with the requirements
described in the report.

FRANK J. MAUTINO
Auditor General

FJM:JGR

SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors for this
engagement were E.C. Ortiz & Co., LLP.