| FINANCIAL
OPERATIONS |
FY 2002 |
FY 2001* |
REVENUES
Appropriations
Student tuition and fees
Laboratory schools
Grants, contracts, and gifts
Sales and services of educational departments
Payments on behalf of the University
Auxiliary enterprises
Other
Total |
$ 92,437,141
76,186,270
7,992,250
30,710,130
1,812,628
33,507,730
54,881,049
20,652,214 $318,179,412
|
$ 87,764,156
72,391,775
7,446,888
24,589,434
1,762,490
32,184,171
51,119,929
17,376,122 $294,634,965
|
EXPENSES
Instruction
Research
Public service
Academic support
Student services
Institutional support
Operation of plant
Depreciation
Student aid
Auxiliary enterprises
Mandatory transfers
Payments on behalf of the University
Other
Total
* FY 2001 amounts have not been restated to reflect the implementation of GASB statements
#34,35, 37, and 38. |
$ 89,283,788
12,050,528
10,384,437
9,762,210
22,399,384
23,543,149
18,212,746
16,845,068
18,102,739
46,773,529
N/A
33,507,730
9,553,703
$310,419,011
|
$ 88,302,348
12,042,792
10,042,991
12,874,730
23,052,410
20,992,054
21,320,872
N/A
16,680,543
40,352,471
11,718,915
32,184,171
5,356,933
$294,921,230
|
| SELECTED
ACCOUNT BALANCES |
JUNE 30, 2002 |
JUNE 30, 2001* |
Cash and cash equivalents
Investments
Buildings, land, and equipment
Accumulated depreciation
Accrued liability for compensated absences
Fund balances
Net Assets
* FY 2001 amounts have not been restated to reflect the implementation of GASB
statements #34,35, 37, and 38. |
$ 25,181,704
33,501,290
475,413,348
252,670,492
21,042,914
N/A
209,114,663 |
$ 21,459,064
34,981,020
456,793,265
N/A
21,657,504
441,843,083
N/A |
| SUPPLEMENTARY
INFORMATION |
JUNE 30, 2002 |
JUNE 30, 2001 |
Employment Statistics
(Full Time Equivalent)
Faculty/administrative
Civil service
Student employees and miscellaneous contracts
Total Employees |
1,815.4
1,345.3
721.1
3,881.8
|
1,764.0
1,339.4
700.2
3,803.6
|
Selected Activity
Measures
Annual full-time equivalent students
Cost per full-time equivalent student, based on education and general expenditures from
current funds |
18,672
$8,145 |
18,175
$8,058 |
| UNIVERSITY
PRESIDENT |
|
During Audit Period: Dr. Victor J. Boschini, Jr.
Currently: Dr. Victor J. Boschini, Jr.
|
|
The University did not properly record donated assets at values of approximately
$3,070,000 and $389,338
There were no procedures in place to identify and account for assets received by
donation directly to a University Department
The University’s Accounts Receivable reports contained amounts which could not
be supported
The University has over $20 million in computing equipment
|
INTRODUCTION
Our audit of Illinois State University 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
FIXED ASSET ADDITIONS AND RETIREMENTS NOT PROPERLY RECORDED
The University did not properly record some purchases, disposals and donations of
fixed assets in the financial records. During our testing of fixed asset additions and
deletions we noted several errors.
- Donated assets with values of approximately $3,070,000 and $389,338 had not been
recorded in the University’s financial or property records for fiscal years 2002 and
2001, respectively.
- Assets with a value of $23,551 were disposed of during fiscal year 2001, but were not
removed from property or financial records until fiscal year 2002.
- Assets with a value of $147,933 were purchased during fiscal year 2001, but were not
added to the property or financial records until fiscal year 2002.
- Assets with a value of $289,611 were inadvertently deleted from property records in
fiscal year 2001. The error was discovered and corrected by the University in fiscal year
2002.
In these instances, University procedures were not followed or there were no procedures
in place to identify and account for assets received by donation and given directly to a
University Department. University personnel failed to identify and correct these errors
during the annual physical inventory counts. (Finding 1, pages 12-13)
We recommended the University establish procedures for documenting and reporting the
receipt of donated items. Further, the University should coordinate its current procedures
for tracking property additions and deletions with its procedures for conducting physical
counts of inventories. Additional training was also recommended regarding the procedures
and completion of the annual inventory.
University officials agreed with our recommendations for the establishment of
procedures regarding donated assets and for coordinating the current procedures for
tracking property with the physical counts of inventories. The University stated that
departmental inventory stewards will also be trained on the process required for donated
property and annual physical inventory counts.
ACCOUNTS RECEIVABLE REPORT CONTAINED AMOUNTS WHICH COULD NOT BE SUPPORTED
The University’s December 31, 2001 quarterly report for "Aging of Total
Gross Receivables" filed with the State Comptroller contained amounts that were not
supported with adequate documentation by the University. The accounting information on the
December, 2001 report, which did not have adequate support documentation follows:
- $166,000 for receivables 91-180 days past due;
- $356,000 for receivables 181-365 days past due; and
- $3,375,000 in receivables greater than 1 year past due.
The lack of documentation was the result of employee oversight and system deficiencies.
Although the University has a computerized accounts receivable system, details for the
aging reports are manually calculated and summarized for reporting purposes. In addition,
the University did not have written procedures that outlined the manual computation
process or that identified the documentation that should be maintained as support. We also
noted that the reports were not reviewed closely by someone other than the preparer to
ensure accuracy. (Finding 2, page 14)
We recommended the University implement written procedures for preparing the quarterly
accounts receivable reports and for maintaining adequate supporting documentation. The
procedures should require an independent review of financial reports and the University
should explore the cost benefits of enhancements to the current accounts receivable system
to generate more useful reports.
University officials agreed with our recommendations to implement written procedures,
to maintain supporting documentation for the quarterly accounts receivable reports, and to
conduct independent reviews of the report. The University also agreed to study the
feasibility of enhancing the current accounts receivable system to provide more useful
reports.
LACK OF A FULLY DEVELOPED AND TESTED DISASTER RECOVERY PLAN
The University had not fully developed and tested the disaster recovery plan for
its computerized financial accounting system or its other administrative computing
operations. The University has over $20 million in computing equipment, with one mainframe
system for financial accounting and another for administrative computing operations.
The financial accounting system’s disaster recovery plan has not been finalized
and formally tested. In addition, the primary and backup computer systems reside in the
same building. Due to other priorities, the University has not devoted sufficient
resources to complete the disaster recovery plan.
The administrative computing operation’s disaster recovery plan has not been
tested. In addition, the University did not have a designated alternate data processing
facility to serve as a hot or cold site for recovery. Budget limits have prevented the
University from making formal agreements with organizations to test the disaster recovery
plan.
A fully developed and tested disaster recovery plan would help the University continue
its operations in the event of a disaster. (Finding 3, pages 15-16)
We recommended the University make certain that disaster contingency planning,
documentation and testing are adequately performed and monitored. Copies of disaster
recovery plans, recovery procedures for each system and full backups of computer operating
systems, critical systems and data should be stored at a secure off-site location.
University officials agreed with the recommendation and stated that testing of the
disaster recovery plan is being implemented. The backup system for the financial
accounting system is expected to be moved off-site by April 2003 and cost estimates for a
mainframe recovery service subscription have been received and will be evaluated in detail
after the completion of the testing of backup tapes.
Mr. Ron Jones, Comptroller, and Greg Alt, Assistant Comptroller, provided University
responses.
AUDITORS' OPINION
Our auditors state the financial statements of Illinois State University as of
June 30, 2002, and for the year then ended, are fairly presented in all material respects.
_____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:CML:pp
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors for this engagement were Clifton Gunderson LLP.
|
