REPORT DIGEST ILLINOIS STATE 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 4 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
{Financial Information is summarized on the reverse page.} |
ILLINOIS STATE UNIVERSITY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 2000
| FINANCIAL OPERATIONS (CURRENT FUNDS) | FY 2000 |
FY 1999 |
| REVENUES Appropriations Total |
$ 83,324,456 |
$ 81,022,202 |
| EXPENDITURES AND MANDATORY
TRANSFERS Instruction Total |
$ 81,422,514 $272,855,575 |
$ 75,365,755 $266,609,474 |
| SELECTED ACCOUNT BALANCES (ALL FUNDS) | JUNE 30, 2000 |
JUNE 30, 1999 |
| Cash and short-term
investments Investments Buildings, land, and equipment Accrued liability for compensated absences Fund balances (deficit): Unrestricted |
$ 161,833 64,259,949 436,803,701 21,334,703 6,426,134 1,118,129 |
$ 161,148 60,692,339 414,919,016 22,007,971 ( 446,733) 1,455,691 |
| SUPPLEMENTARY INFORMATION | JUNE 30, 2000 |
JUNE 30, 1999 |
| Employment Statistics
(Full Time Equivalent) Faculty/administrative Total Employees |
1,755.5 3,800.3 |
1,639.5 3,700.3 |
| Selected Activity
Measures Annual full-time equivalent students |
17,823 $7,854 |
17,158 $7,930 |
| UNIVERSITY PRESIDENT | ||
During Audit Period: Dr. Victor J. Boschini, Jr |
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During its annual count the University could not locate 204 items, totaling $145,854
The University lacked formal policies and procedures to review unemployment claims
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INTRODUCTION Our audit of Illinois State University (ISU) is issued in two reports. The Compliance Audit Report contains the audit findings and the supplementary financial information including the federal single audit disclosures. The Financial Audit Report contains the opinion on the financial statements. FINDINGS, CONCLUSIONS AND RECOMMENDATIONS CONTROLS OVER FIXED ASSETS The University did not have adequate controls in place over fixed assets. Annual physical counts of property and equipment were done without a proper segregation of duties. In addition, the University did not adequately follow up on missing property. During its annual count the University could not locate 204 items, totaling $145,854. According to personnel, items not located during the annual count were investigated only to the extent that time allows. The State Property Control Act requires each agency head to adequately control fixed assets. We recommended the University comply with State law and University procedures by implementing adequate property controls. Annual physical counts should be done independently, with all discrepancies investigated. Items should be reviewed to determine whether they are still in use, should be disposed of, or sent to surplus property. Personnel should complete the required property movement forms before moving any property. (Finding Code 00-1, page 12 - 13) University officials agreed with our recommendations, stating they plan to hire a fixed asset specialist to supervise the fixed asset area, by February 2001.MONITORING UNEMPLOYMENT COMPENSATION AND CLAIMS The University’s failure to develop adequate, formalized controls for its review of unemployment benefit claims and payments resulted in $11,672 in questionable unemployment benefits being paid. This finding was first reported in 1999. At that time, the University stated it would form a team to review all current procedures and recommend revised procedures to fulfill our recommendation. As part of the current audit, we sampled 15 current unemployment claims and found 3 cases (or 20 percent) where questionable benefits, totaling $11,672, were paid by the State to former University employees.
Two months after his separation, the University rehired this same person in an extra-help position, paying him wages while he was also receiving unemployment compensation. According to University records, the University did not protest this situation. A staff member who processed unemployment activity did not compare the payroll and the quarterly unemployment statements to detect instances of simultaneous wage and unemployment benefit payments.
University officials agreed with our recommendation to formalize their policies and procedures. Officials stated that they did not agree, however, with the need to stress employing departments provide documentation for timely evaluation of unemployment claims. They added that current procedures provide all the needed information to process claims promptly, and that this finding was based on information already contained in the University's Human Resource files. According to the auditor’s comment addressing the misconduct case, the University’s Human Resource files did contain some needed information but lacked the details which would have allowed the University to more effectively protest this particular unemployment claim. As a result, the individual was allowed to draw unemployment despite alleged misconduct. OTHER FINDINGS The remaining findings and recommendations were less significant and are being given attention by University management. We will review progress toward implementation of our recommendations during our next audit. Mr. Ron Jones, Associate Vice President and Comptroller, provided University responses. AUDITORS' OPINION Our auditors state the financial statements of Illinois State University as of June 30, 2000, and for the year then ended, are fairly presented in all material respects. _____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:JHL:pp SPECIAL ASSISTANT AUDITORS Our special assistant auditors for this engagement were Clifton Gunderson L.L.C. |