REPORT DIGEST

NORTHEASTERN ILLINOIS UNIVERSITY

FINANCIAL AND COMPLIANCE AUDIT

(In accordance with the Single Audit Act and OMB Circular A-133)

For the Year Ended:
June 30, 1999

Summary of Findings:

Total this audit 3
Total last audit 6
Repeated from last audit 1

Release Date:
April 20, 2000

State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

 

To obtain a copy of the Report contact: Office of the Auditor General
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or (217) 524-4646

This Report Digest is also available on the worldwide web at http://www.state.il.us/auditor

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

 

 

  • The University lacked controls over the monitoring of unemployment compensation resulting in questionable benefits paid to employees.

 

 

 

 

 

 

 

 

{Financial Information is summarized on the reverse page.}

NORTHEASTERN ILLINOIS UNIVERSITY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 1999

FINANCIAL OPERATIONS (CURRENT FUNDS)

FY 1999

FY 1998

REVENUES
State Appropriations
General Revenue Fund
Education Assistance Fund
Capital Development Fund
Payments on behalf of University
Student tuition and other fees
Grants (principally federal awards)
Student Union sales and services
Parking revenue
Other sources
Total

EXPENDITURES AND MANDATORY TRANSFERS
Instruction
Research
Public Service
Academic Support
Student services and Programs
Institutional support
Operation of plant
Scholarships and Fellowships
Auxiliary enterprises
Mandatory transfers
Total


$ 34,392,270
3,745,600
1,020,635
8,794,433
21,048,543
12,753,035
85,036
733,556
3,231,781
$ 85,804,889



$ 26,301,521
86,015
7,095,193
5,960,465
5,966,157
18,101,031
9,289,615
7,411,704
1,839,915
675,428
$ 82,727,044


$ 32,502,481
3,601,498
46,635
7,970,337
19,757,214
10,860,474
154,857
685,409
2,986,200
$ 78,565,105


$ 25,083,470
149,318
5,453,566
5,121,207
6,827,545
17,983,774
6,733,400
6,146,612
1,969,134
679,054
$ 76,147,080

SELECTED ACCOUNT BALANCES (ALL FUNDS)

JUNE 30, 1999

JUNE 30, 1998

Cash and short-term investments
Equipment
Buildings and Land
Accrued compensated absences
Fund balances (deficit):
Unrestricted
Restricted
Loan
Net investment in plant
Unrestricted
Restricted
Income Fund

$10,658,959
39,178,294
86,594,742
13,280,692

(4,334,495)
444,479
2,153,905

117,157,476
1,525,851
$(7,297,330)

$12,636,419
37,445,532
79,345,698
13,191,994

(7,001,800)
481,912
2,023,767

107,490,881
1,978,564
$(8,511,023)

SUPPLEMENTARY INFORMATION

FY 1999

FY 1998

Employment Statistics
Administration
Faculty
Civil Service
Students
Total Employees

Selected Activity Measures
Annual full-time equivalent students - Undergraduate
Annual full-time equivalent students - Graduate
Full-time equivalent cost per student - Undergraduate
Full-time equivalent cost per student - Graduate


202
347
453
416
1,418


5,792
1,441
$6,410
$9,595


193
344
454
431
1,422


5,657
1,441
$6,366
$7,258

UNIVERSITY PRESIDENT
During Audit Period: Dr. Salme H. Steinberg
Currently: Dr. Salme H. Steinberg
 

 

 

Inadequate controls over unemployment benefit claims and payments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF CONTROLS IN MONITORING UNEMPLOYMENT COMPENSATION

The University failed to develop adequate controls over the review of unemployment benefit claims and payments. This resulted in questionable benefits being paid by the State.

During the audit period, 28 former/current employees of the University received $72,532 in unemployment benefits. To test controls over unemployment benefit processing, we selected a sample of 20 Fiscal Year 1999 benefit recipients to determine the appropriateness of payments. We noted the following:

  • In seven cases employees received $28,461 in questionable benefits because the University failed to protest the unemployment claims.
  • In two cases reviewed, the University failed to report/protest benefits to persons who had received $7,960 in vacation payments which count as wages. These individuals received 38 weeks of unemployment benefits totaling $12,592.
  • In six cases reviewed, the benefit recipients were employed by the University while they were also receiving unemployment benefits by the State. Questionable unemployment benefit payments made in these cases totaled $4,069 for 19 weeks.
  • In eight cases reviewed, the University lacked documentation to evaluate the appropriateness of benefits paid.

In addition, the University could not locate personnel files for three individuals who were paid $6,103 in unemployment benefits for 52 weeks. (Finding 2, pages 17-18)

We recommended the University develop formal policies and procedures for review of unemployment benefit activity to ensure state resources are adequately protected.

University officials agreed with our finding and recommendation and stated they are in the process of developing formal policies and procedures for review of unemployment benefit activity.

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 in our next audit.

University responses were provided by Dr. Helen C. Ang, Acting Chief Fiscal Affairs Officer.

AUDITORS' OPINION

Our auditors stated the University’s financial statements as of June 30, 1999 and for the year then ended are fairly presented in all material respects.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:ROQ:ak

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Nykiel, Carlin, Lemna & Co.