|
INTRODUCTION
Our 2006 financial audit, single audit
and State compliance examination are presented in two reports. The financial audit consists of one report
which includes various financial statements of the University. The financial audit has been previously
released. The single audit and
compliance examination is in separate report document. This report contains audit findings
disclosed by our tests, certain supplemental financial information, and
special data requirements.
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
ERROR RESULTED IN LOSS OF FEDERAL FUNDS
Illinois State University
(University) had an error on its fiscal year 2005 Fiscal Operations Report
and Application to Participate (FISAP) that resulted in a loss of Federal
funds to the University.
The University mistakenly
reported $11,943 of its fiscal year 2005 Federal Work Study (FWS) Award as
being unexpended instead of reporting it as a carryover to the following
fiscal year. As a result, the
Department of Education reduced their FWS award by the $11,943 that was
reported as unexpended. The University
had actually made qualifying expenditures during fiscal year 2006 and drawn
the funds, but the Department of Education retroactively reduced the award
after the FISAP was submitted.
We noted that the University
requested and received $851,225 in reimbursements from the Department of
Education for its fiscal year 2005 FWS program. Subsequent to those expenditures, the Department of Education
reduced the fiscal year 2005 award to $839,282.
Improper financial reporting
resulted in an $11,943 loss of Federal funds to the University and an
overstatement of grants receivable on the University’s financial statements.
(Finding 1, Page 14)
We recommended
that the University improve its procedures for reviewing federal financial
reports prior to submission. Further,
the University should report the error to the Department of Education, and if
required, remit the excess funds drawn on the fiscal year 2005 FWS program
and adjust the accounting records accordingly.
University officials agreed with the
finding and stated that the FWS program accounts have been adjusted to
reflect the $11,943 award reduction and the fiscal year 2005 excess funds
draw has been reconciled with the Department of Education.
TIME SHEETS NOT REQUIRED
Illinois State University (University)
did not require positive time reporting for all of its employees in
compliance with the State Officials and Employees Ethics Act (Act).
The Act requires the
University, through policies adopted by the Illinois Board of Higher
Education, to adopt personnel policies consistent with the Act. The Act (5 ILCS 430/5-5(c)) states, “the
policies shall require State employees to periodically submit time sheets
documenting the time spent each day on official State business to the nearest
quarter hour.”
Of the 35 employees’ time
sheets that were examined, 19 (all faculty or salary civil service employees)
did not submit time sheets documenting the time spent each day on official
State business to the nearest quarter hour.
We noted that the University’s procedures only required positive time
reporting for hourly civil service employees and student workers. Exempt civil service and academic
employees were required to submit benefit usage cards that identified leave time
used (negative time reporting). (Finding 2, Page 15)
We
recommended that the University require all employees to maintain time sheets
in compliance with the Act.
University officials
acknowledge the State Officials and Employees Ethics Act requires the
adoption of personnel policies consistent with the Act. The University is
reviewing the compliance of personnel policies for each employee group and
the feasibility and advisability of expanding the time reporting system. This
review will consider compliance issues related to the Fair Labor Standards
Act, other relevant State and federal legislation, and any prevailing labor
agreements.
OTHER FINDING
The remaining finding is reportedly being given attention by
the University. We will review the
University’s progress toward the implementation of our recommendations in our
next audit.
AUDITORS' OPINION
Our
auditors stated the University’s financial statements at June 30, 2006 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 were Nykiel Carlin & Co.
|
