REPORT DIGEST

SOUTHERN ILLINOIS UNIVERSITY

FINANCIAL STATEMENT AUDIT AND COMPLIANCE EXAMINATION

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

For the Year Ended:

June 30, 2006

Summary of Findings:

Total this audit                          5

Total last audit                          3

Repeated from last audit           1

Release Date:

March 22, 2007 

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

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

This Report Digest and the Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

SYNOPSIS

¨      Written agreements were not in place with off-campus organizations that employed federal work study students.

¨      The University did not timely cancel various calling cards, fuel pin numbers and system data access when employees separated from the University.

¨      Timesheets are not maintained in compliance with the State Officials and Employees Ethics Act.

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

During FY06, $29,000 was paid to the 38 America Reads Program tutors

Weakness in controls over reacquiring University property upon employee termination

Non-compliance with the State Officials and Employees Ethics Act

Timesheets are only maintained for the Universities civil service and student employees

Negative timekeeping system used by some employees

University officials disagree

Auditors’ Comment

INTRODUCTION

      Our 2006 Financial Audit, Single Audit, and State Compliance Examination of Southern Illinois University are presented in three reports.  The Financial Audit consists of one report which includes the various financial statements of the University.  The Single Audit and Compliance Examination contains two reports.  One report contains compliance findings disclosed by our tests and certain supplemental information.  The other report contains supplementary financial information and special data requirements.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

WRITTEN AGREEMENTS WERE NOT IN PLACE WITH OFF-CAMPUS ORGANIZATIONS EMPLOYING FEDERAL WORK STUDY STUDENTS

      The University did not comply with federal regulations for employing Federal Work Study (FWS) students as tutors with an off-campus organization.  Written agreements were not executed between the University and the employing organization for the America Reads Program as required by the Federal Student Aid Handbook (Handbook).  During the year, $29,000 was paid to 38 tutors in the America Reads Program.

      The Handbook requires the University to enter into written contracts with the off-campus organizations that “employ” FWS students.  The Handbook also outlines the specific elements of the agreement that are to be reduced to writing.

      University officials state they were not aware that this requirement applied to the University.

      We recommended that written agreements be executed between the University and the participating off-campus organizations that employ FWS students. (Finding 1, pages 14-15)

      University officials accepted our recommendation.

FAILURE TO TIMELY CANCEL UNIVERSITY CARDS AND SYSTEM DATA ACCESS UPON EMPLOYEE SEPARATION

      The University did not timely cancel telephone calling cards, fuel access PIN’s and system network access when employees were terminated from the University.

            We performed testing on the Edwardsville campus and noted that ten calling cards remained active for 30 days to 8.5 years after the employees were separated from the University. 

            We also performed testing on the Carbondale campus and noted the following:

·        Eight calling cards remained active for 27 to 60 days after the employees were separated from the University.  Six of these cards were terminated within 30 days of the employees’ separation.

·        Forty-one fuel access PIN’s remained active for 181 days to 12 years after the employees were separated from the University.  However, it was also noted that a physical “key” device is also required in order to access fuel at the pump.  This device is kept with the vehicle. 

·        Computer network access remained “active” or “expired” for 9 terminated employees.  We noted that in certain circumstances, employees with “expired” access can still re-activate their network ID’s.

All of the calling cards and fuel access PIN’s noted above have now been cancelled by the University.

            University officials indicated that a departing employee checklist is available at both campuses to ensure the timely return of all University property, but the use of the checklist on the Carbondale campus is optional.  Furthermore, it is the University’s practice to cancel calling cards within 30 days of employee separation. 

We recommended the University establish consistent campus-wide policies and procedures regarding the timely retrieval of University owed properties and timely cancellation of access upon employee termination, in order to safeguard University data and resources. Further, the University should shorten the length of time allowed to expire after employee’s separate and before cancelling calling cards. (Finding 2, pages 16-17)

University officials accepted our recommendation.

TIMESHEETS ARE NOT MAINTAINED IN COMPLIANCE WITH THE STATE OFFICIALS AND EMPLOYEES ETHICS ACT

      The University did not have a policy requiring all employees to periodically submit time sheets.

      The State Officials and Employees Ethics Act (Act) (5 ILCS 430/5-5(c)) requires State employees to periodically submit time sheets documenting the time spent each day on official State business to the nearest quarter hour.  The Illinois Board of Higher Education (IBHE) adopted personnel policies for public universities on February 1, 2004, in accordance with the Act.  However, the University did not incorporate the IBHE policies into its policies.

      We noted that the University’s salaried employees did not maintain time sheets in compliance with the Act.  Employee’s time is generally tracked using a “negative” timekeeping system, whereby the employee is assumed to be working unless noted otherwise.  The only employees documenting their work time to the nearest quarter hour were bi-weekly paid civil service employees, and student employees.  (Finding No. 4, pages 20-22)

      We recommended the University require all its employees to maintain time sheets in compliance with the Act.

      The University took exception to our finding.  University personnel indicated that its current timekeeping policies and procedures, as approved by the Office of the Executive Inspector General, meet the intent of the Act and do so in a more efficient and cost effective manner than the procedures specified by this finding.

      In an auditors’ comment, we pointed out that the advice received from the Office of the Executive Inspector General, upon which the University relied, is not a legal opinion.  Further, the auditors continue to believe that a positive timekeeping system for State employees is required by the Act.  If the University continues to disagree with this conclusion, we further recommended that it seek a formal, written opinion from the Attorney General’s Office on the requirements of this statutory provision.

OTHER FINDINGS

      The remaining findings are reportedly being given attention by the University.  We will follow-up on all findings in our next audit of the University.

AUDITORS’ OPINION

      Our auditors stated the financial statements of the University as of June 30, 2006 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

      Crowe Chizek & Company, LLC were our special assistant auditors for this audit.