REPORT DIGEST

GOVERNORS STATE UNIVERSITY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2018

Release Date:  January 29, 2018

FINDINGS THIS AUDIT:  1

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

FINDINGS LAST AUDIT: 0

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 the Governors State
University’s Financial Audit as of and for
the year ended June 30, 2018.  The
Governors State University’s Compliance
Examination (including the Single Audit)
covering the year ended June 30, 2018 will
be issued at a later date.

SYNOPSIS

• (18-01) The University had not
established adequate internal controls over
undergraduate student type classifications
which are used to identify the appropriate
tuition rates charged to students as
required by the Governors State University
Law.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER UNDERGRADUATE
STUDENT TYPE CLASSIFICATIONS

The University has not established adequate
internal controls over undergraduate
student type classifications which are used
to identify the appropriate tuition rates
charged to students as required by the
Governors State University Law (Law).

We tested the University’s internal
controls over student tuition revenue for
financial statement and compliance
purposes.  We tested 100 students who
registered for classes for the Spring of
2018. Our testing identified 12
undergraduate students (12%) whose tuition
rates charged were inaccurate due to
inaccurate student type classifications
entered in the student profile of the
University’s ERP system. The student type
classification is utilized by the
University’s ERP system to determine the
correct tuition rate based on tables
entered into the system.  We also noted 6
additional undergraduate students whose
student type classifications were
inaccurate, but it did not impact the
tuition rate assessed due to timing and/or
unchanged rates from the year prior.  The
financial error noted in our sample netted
to $1,584 and resulted in a projected error
of $211,905.  The University has not
adjusted its Fiscal Year 2018 financial
statements to address this error (Finding
1, pages 64-65).

We recommended the University improve its
controls in order to ensure undergraduate
student type classifications are properly
entered (and maintained) in student
profiles so tuition rates comply with the
requirements of the Law.  We further
recommended the University verify the
accuracy of the student type classification
of each undergraduate student (correcting
when necessary) and refund any tuition
overcharges identified.

The University agreed with the finding and
stated they performed a review of student
type classifications for all undergraduate
students enrolled during the Academic Year
2017-2018 and implemented a process to
periodically review student type
classifications in the ERP system to ensure
undergraduate student type classifications
are properly entered and maintained.  The
University also stated they will make the
necessary corrections in the ERP system and
will refund overcharges identified as
necessary.

AUDITOR’S OPINION

The auditors stated the financial
statements of the Governors State
University as of and for the year ended
June 30, 2018 are fairly stated in all
material respects.

This financial audit was conducted by
Borschnack, Pelletier & Co.

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:JGR