REPORT DIGEST

SOUTHERN ILLINOIS UNIVERSITY

FINANCIAL AND COMPLIANCE AUDIT

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

For the Year Ended:
June 30, 2001

Summary of Findings:

Total this audit 1
Total last audit 3
Repeated from last audit 0

Release Date:
April 24, 2002

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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 TDD (217) 524-4646
This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

  

 

 

 

 

 

SYNOPSIS

 
  • Internal controls over a School of Medicine change fund were circumvented with the resultant theft of $8,300.

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the reverse page.}

 

SOUTHERN ILLINOIS UNIVERSITY
FINANCIAL AND COMPLIANCE AUDIT
FOR THE YEAR ENDED JUNE 30, 2001

FINANCIAL OPERATIONS (CURRENT FUNDS)

FY 2001

FY 2000
REVENUES

State Appropriations
Student Tuition and Fees
Educational Activities
Enterprise Sales
Federal Grants
Grants and Contracts
Other Sources

Total

EXPENDITURES AND MANDATORY TRANSFERS

Instruction
Research
Public Service
Academic Support
Institutional Support
Operation of Plant
Other Services
Scholarships and Fellowships
Auxiliary Enterprises and Transfers

Total

 

$232,947,014
109,694,750
41,222,280
68,223,333
50,011,240
58,071,406
70,607,993

$630,778,016

 


$208,422,388
42,889,431
52,135,606
87,223,160
60,092,143
51,822,325
37,997,532
32,656,757
67,943,100

$641,182,442

 

$218,746,596
100,250,361
40,250,857
68,056,600
44,820,797
47,398,990
62,287,783

$581,811,984

 


$197,122,602
34,574,508
46,552,008
79,462,987
54,263,640
49,312,583
37,148,744
30,555,008
68,904,099

$597,896,179
SELECTED ACCOUNT BALANCES (ALL FUNDS)

AT JUNE 30, 2001

AT JUNE 30, 2000
Cash and Investments
Campus Plant Facilities
Accrued Compensated Absences
Revenue Bonds Payable

$144,825,416
$840,384,943
$48,253,468
$128,551,849

$158,604,738
$801,799,139
$47,923,605
$130,492,365
SUPPLEMENTARY INFORMATION (Unaudited)

FY 2001

FY 2000
Employees (Fall Term)
Carbondale
Edwardsville
Total Employees
Students (Full-time Equivalent) (Fall Term)
Carbondale
Edwardsville
Total Students
Instruction Costs Per Full-time Equivalent Student
Classroom Utilization (Daytime Maximum)
Carbondale
Edwardsville


6,600
2,656
9,256

18,599
9,556
28,155
$7,403

76%
79%


6,575
2,581
9,156

18,697
9,123
27,820
$7,086

77%
89%
UNIVERSITY PRESIDENT
During Audit Period: Frank E. Horton (2/1 - 9/30/00), Dr. James E. Walker (effective 10/1/00)
Currently: Dr. James E. Walker

 

 

 

 

 

 

 

 

Money stolen from School of Medicine

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

Our 2001 audit of Southern Illinois University is presented in three volumes: Compliance Audit; Financial Audit; and Supplementary Financial Information. The finding and recommendation is contained in the Compliance Audit volume.

FINDING, CONCLUSION, AND RECOMMENDATION

NEED TO STRENGTHEN CONTROLS OVER CHANGE FUND

Money was reported missing from the SIU Springfield School of Medicine Revolving Change Fund. The SIU Springfield School of Medicine kept approximately $20,000 in cash on hand for cash payments for lost or late payroll checks and for advances to employees for foreign travel. In July 2000, approximately $8,300 was reported missing from the Revolving Change Fund. The Springfield Police Department was notified of the missing funds and the case remains open.

The money has not been recovered. Internal controls over the Revolving Change Fund were circumvented because entry was gained to: 1) a restricted access room; 2) a combination safe; and 3) a locked cash box.

According to SIU Springfield School of Medicine personnel, at the time of the incident, controls over the Revolving Change Fund were considered adequate for the level of cash held in the Fund. SIU Springfield School of Medicine personnel have informed us that the amount kept on hand has been reduced to $1,350. Also, SIU Springfield School of Medicine personnel indicated they implemented the following additional controls immediately after the incident and early in the audit period:
  • Changed to higher security key stock
  • Upgraded to digital cameras that replaces surveillance cameras; ability to record and allow subsequent viewings
  • Reorganized to reduce number of staff with access to funds
  • Reduced number of cash drawers
  • Restricted security access to two individuals
  • Increased the number of security patrols.

Internal controls over the SIU Springfield School of Medicine Fund were circumvented at the time of the incident which led to the misappropriation of assets. (Finding 1, page 20)

We recommended the SIU Springfield School of Medicine continue to perform periodic risk assessments of the Revolving Change Fund to ensure controls are adequate.

The University officials responded that they have implemented our recommendation. The officials stated that the School of Medicine has always and will continue to perform periodic risk assessments of the Revolving Change Fund. The School of Medicine took prompt corrective action immediately following the incident.

Mr. Ron Cremeens, Internal Audit Director, provided the University's response.

AUDITORS’ OPINION

Our auditors stated the financial statements of the University as of June 30, 2001 and for the year then ended are fairly presented in all material respects.

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Kerber, Eck & Braeckel LLP were our special assistant auditors for this audit.