|
REPORT DIGEST
SOUTHERN
COMPLIANCE EXAMINATION
(In accordance with the Single Audit Act
and OMB Circular A-133) For the Year Ended: June 30, 2008 Summary of Findings: Total This Year 8 Total Last Year 14 Repeated From Last Year 5 Release Date: April 14, 2009
State of
Office of the Auditor General
WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the
Report contact: Office of the Auditor
General
(217) 782-6046 or TTY (888)
261-2887 This Report Digest and the
Full Report are also available on the worldwide web at |
INTRODUCTION The Financial Statement Audit report for the year ended June 30, 2008 was previously released February 19, 2009. This report addresses federal and State compliance findings pertaining to the Single Audit and State Compliance Examination. SYNOPSIS ¨ The University did not always report changes in enrollment status of students for federal student loan programs. ¨ The University did not return Title IV funds to the U.S. Department of Education within the required 45 day timeframe. ¨ The University’s faculty did not submit timesheets as required by the State Officials and Employees Ethics Act. ¨ The University did not report monthly as required by the Board of Higher Education Act. ¨ The University did not have adequate controls to ensure employees engaged in non-University related activities complied with University policies and the University Faculty Research and Consulting Act.
{Expenditures and Activity Measures are summarized on the reverse page.} |
SOUTHERN
COMPLIANCE
EXAMINATION AND SINGLE AUDIT
FOR
THE YEAR ENDED JUNE 30, 2008
|
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS |
FY2008
|
FY2007
|
|
OPERATING REVENUES Student tuition and fees....................................................... ..... Auxiliary enterprises............................................................. Grants and contracts............................................................ Sales and services of educational
activities..................... Other.......................................................................................
Total Operating Revenues........................................... OPERATING EXPENSES Instruction.............................................................................. Research................................................................................. Public services....................................................................... Academic support................................................................. Student services.................................................................... Institutional support............................................................. Operation and maintenance of plant.................................. Scholarships and fellowships............................................. Auxiliary enterprises............................................................. Depreciation........................................................................... Other.......................................................................................
Total
Operating Expenses.................................................
Operating
Loss........................................................................... NON-OPERATING REVENUES (EXPENSES) State appropriations............................................................. Payments on behalf of the University............................... Other non-operating revenues
(expenses), net................ Net Non-operating
Revenues .......................................... Income (Loss) Before Capital Contributions........................ Capital appropriations,
additions to endowments and capital grants
....
INCREASE IN
NET ASSETS...................................................
Net assets, beginning of the
year............................................ Net assets, end of the year............................................................................ |
$207,141,669 95,190,509 93,855,788 60,638,746 42,290,179 $499,116,891 $273,275,474 58,343,488 60,083,154 125,357,888 61,419,481 58,097,621 75,374,645 24,241,476 87,621,293 36,393,289 570,824 $860,778,633 ($361,661,742) $227,184,099 122,396,302 37,421,596 $387,001,997 $25,340,255 $14,771,583 $40,111,838 $426,137,436 $466,249,274 |
$182,140,804 83,367,711 89,604,596 52,529,185 39,603,670 $447,245,966 $259,860,902 57,700,962 56,378,043 112,268,877 55,192,637 54,640,752 65,398,396 19,159,776 77,328,543 34,958,458 350,826 $793,238,172 ($345,992,206) $223,149,103 106,525,874 34,315,848 $363,990,825 $17,998,619 $32,650,797 $50,649,416 $375,488,020 $426,137,436 |
|
SELECTED ACCOUNT BALANCES |
JUNE 30, 2008
|
JUNE 30,
2007
|
|
Cash
and investments................................................................ Capital
assets, net of accumulated depreciation.................... Total Assets................................................................................ Revenue bonds, notes payable and capital lease obligations....................................................................... Accrued
compensated absences............................................. Total Liabilities.......................................................................... Net assets.................................................................................... |
$258,508,434 $605,188,397 $938,404,694 $262,025,599 $47,967,312 $472,155,420 $466,249,274 |
$221,463,550 $572,516,218 $868,278,645 $239,784,222 $46,820,844 $442,141,209 $426,137,436 |
|
EMPLOYMENT STATISTICS
(unaudited) |
FALL 2007
|
FALL 2006
|
|
Edwardsville................................................................................ Total Employees.................................................................... |
6,990 2,838 9,828 |
6,974 2,802 9,776 |
|
ENROLLMENT STATISTICS
(unaudited) |
FALL 2007
|
FALL 2006
|
|
Edwardsville (Full-time and
Part-time students).................... Total Enrollment................................................................... |
20,983 13,398 34,381 |
21,003 13,449 34,452 |
UNIVERSITY
PRESIDENT
|
||
|
During Audit Period: Dr. Glenn Poshard Currently: Dr. Glenn Poshard |
||
|
Changes in enrollment
status of students not reported
Federal funds not
returned timely
Noncompliance with
the State Officials and Employees Ethics Act
Faculty did not
submit time sheets
Reports of
adjudicated cases not filed
Prior approval for
outside research and consulting not obtained
Reports on
non-University activities not filed |
INTRODUCTION Our 2008 Single Audit and
State Compliance Examination of Southern Illinois University are presented in
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 INADEQUATE CONTROLS OVER LOAN REPORTING The Carbondale Campus did not always report changes in
enrollment status of students to the National Student Clearinghouse (NSC) for
federal student loan programs. Out of
33 enrollment status changes tested, 13 were not reported to the NSC. The NSC is The National Student Loan Data System (NSLDS) Enrollment Reporting Guide requires schools to confirm and report the enrollment status of students who receive federal student loans. As with any school/servicer arrangement for the administration of Title IV programs, the school remains responsible for submitting timely, accurate, and complete enrollment reporting roster files and for maintaining proper documentation in accordance with Federal Regulation 34 CFR 682.610(c). A student’s enrollment status determines eligibility for deferment, grace periods, and repayments, as well as the Federal Government’s payment of interest subsidies. Enrollment reporting is critical for effective administration of the Title IV student loan programs. (Finding 1, page 13) We recommended the University implement policies and procedures to prevent backdated withdrawals of students and ensure the timely and accurate reporting of information to the National Student Clearinghouse. University officials accepted our recommendation. UNTIMELY RETURN OF TITLE IV FUNDS The University did not return Title IV funds to the Department of Education within the required 45 day timeframe. The Edwardsville campus did not return Title IV funds within 45 days of the student’s withdrawal date for 10 of 33 students selected for testing. The total dollar amount of funds not returned within 45 days was $19,223. During the fiscal year, the Edwardsville campus implemented Banner, a computerized accounting system which includes a student financial aid module. Within the new system issues were identified by the University pertaining to the return of Title IV funds. The Edwardsville campus then took corrective action in an attempt to correct the issues noted. The We recommended the Edwardsville campus continue to follow new
processes put into place during the Spring and Summer terms of fiscal year
2008 to ensure Title IV funds are returned to the U.S. Department of Education
in a timely fashion. Further, we
recommended the University officials accepted our recommendations. TIME SHEETS ARE NOT REQUIRED The University does not have a policy that requires all employees to periodically submit time sheets documenting the time spent each day on official University business to the nearest quarter hour as required by the State Officials and Employees Ethics Act (Act). We noted that the University’s faculty did not submit
timesheets in compliance with the Act.
The process is effectively a “negative” timekeeping system whereby the
employee is assumed to be working unless noted otherwise. During fiscal year 2007 the University
adopted a policy to require time sheets from all employees except faculty. (Finding 5, page 19) This
finding was first reported in 2005. We recommended the University amend its policies to require all employees to submit time sheets in compliance with the Act. University officials responded they will continue to work with other public universities and the Illinois Board of Higher Education in resolution of this issue. (For the previous University response, see Digest Footnote #1.) FAILURE TO REPORT IN ACCORDANCE WITH THE BOARD OF HIGHER EDUCATION
ACT The University did not report monthly as required by the
Board of Higher Education Act (Act).
The We recommended the University establish controls to ensure reports are filed as required by the Act. University officials responded that the recommendation was implemented. INADEQUATE CONTROLS OVER EMPLOYEES ENGAGED IN NON-UNIVERSITY RELATED
ACTIVITY The University did not have adequate controls to ensure employees engaged in non-University related activities complied with University policies and the University Faculty Research and Consulting Act (Act). The We recommended the University revise its policies and procedures to strengthen its controls and to ensure compliance with the mandated requirements. We further recommended the University reiterate to employees the importance of filing reports as required by State law and University policies. University officials accepted our recommendation. OTHER FINDINGS The remaining findings are
reportedly being addressed by University management. We will review the University’s progress
toward the implementation of our recommendations in our next examination. AUDITORS’ OPINION The financial audit reports were previously released. Our auditors stated the financial statements of the University as of June 30, 2008 and for the year then ended are fairly presented in all material respects. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:KMA:pp SPECIAL ASSISTANT AUDITORS Crowe Horwath LLP were our special assistant auditors for this audit. DIGEST
FOOTNOTE #1 TIME
SHEETS ARE NOT REQUIRED – Previous University Response Prior
to July 1, 2007, the University relied on the advice given by the Office of
Executive Inspector General (“OEIG”) in FY 04 related to the interpretation
of Section 5-5 of the State Officials and Employees Ethics Act (“Act”). Specifically, the OEIG through its then
Executive Inspector General stated that the negative time keeping procedure
utilized by the University complied with the time keeping requirements of
Section 5-5 of the Act. The University
believed that it could reasonably rely on the interpretation and advice of
the entity responsible for enforcement of the Act. Notwithstanding
this advice, and given recent findings and recommendations of the Illinois
Auditor General, Southern Illinois University began requiring
administrative/professional and exempt civil service employees to submit time
sheets documenting the time spent each day on official State business to the
nearest quarter hour. This requirement
has been in place since July 2007. All
employees who are classified as Administrative/Professional or exempt civil
service employees, including the President and Chancellors and their
administrative officials and staff are maintaining the required time
sheets. At this time, the University
has not required faculty to maintain such time sheets. Further non-exempt civil service and other
employees maintained time sheets prior to the adoption of the Act because
they are paid on an “hourly” basis. The
University is exploring the legal and institutional implications of expanding
this new procedure to the faculty and it is expected that a final decision
will be made in FY 08. |