REPORT DIGEST

SOUTHERN ILLINOIS UNIVERSITY

COMPLIANCE EXAMINATION AND SINGLE AUDIT
FOR THE YEAR ENDED JUNE 30, 2018

Release Date:  March 28, 2019

FINDINGS THIS AUDIT:  12

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  6 -- 6 -- 12
Category 3:  0 -- 0 -- 0
TOTAL:  6 -- 6 -- 12

FINDINGS LAST AUDIT: 13

Category 1: Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State laws
and regulations (material noncompliance).
Category 2: Findings that are significant
deficiencies in internal control and
noncompliance with State laws and
regulations.
Category 3: Findings that have no internal
control issues but are in noncompliance
with State laws and regulations.

State of Illinois, Office of the Auditor
General
FRANK J. MAUTINO, 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 Full Report are also
available on the worldwide web at
www.auditor.illinois.gov

INTRODUCTION

This digest covers our federal Single Audit
and Compliance Examination of Southern
Illinois University (University) for the
year ended June 30, 2018.  A separate
Financial Audit as of and for the year
ending June 30, 2018, was previously
released on March 21, 2018.  In total, this
report contains 12 findings, one of which
was reported in the Financial Audit.
SYNOPSIS

• (18-5) The University did not complete
exit counseling for all necessary students
within the required time period.
• (18-6) The University did not have a
policy that requires all employees to
periodically submit timesheets documenting
the time spent each day on official
business.
• (18-8) The University did not manage the
National Corn-to-Ethanol Research Pilot
Plant under the review and guidance of the
Illinois Ethanol Research Advisory Board.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

EXIT COUNSELING NOT COMPLETED

The University did not complete exit
counseling for all necessary students from
the Edwardsville campus within 30 days of
the withdrawal date.

We noted 10 of 17 (59%) students tested who
received direct loans and officially
withdrew received exit counseling 55 to 137
days late. Five additional students who
received direct loans and withdrew,
officially or unofficially, received no
exit counseling after leaving the
University.  (Finding 5, pages 25-26)

We recommended the University implement
formalized procedures to verify that all
appropriate students complete exit
counseling timely.

The University stated implementation was in
process, and noted they are working to
develop a reliable reporting mechanism
which accurately and timely identifies
students subject to exit counseling.

FAILURE TO REQUIRE FACULTY TIMESHEETS

The University did not have a policy that
requires all employees to periodically
submit timesheets documenting the time
spent each day on official business to the
nearest quarter hour as required by the
State Officials and Employees Ethics Act.

The University, after more than 13 years,
had still not incorporated into their own
policies the personnel policies required by
the Illinois Board of Higher Education for
public universities.

The University’s faculty did not submit
timesheets in compliance with the Act and
were not required by the University to do
so. The University assumed faculty to be
working unless noted otherwise. We noted no
measures were taken by the University to
consider and explore a resolution in Fiscal
Year 2018. (Finding 6, pages 27-28) This
finding was first reported in 2005.

We recommended the University work with
faculty unions to amend its policies to
require all employees to submit timesheets
documenting time spent daily on official
State business to the nearest quarter hour
as required by the Act or seek legislative
remedy.

The University agreed and stated this
matter is subject to bargaining with the
various faculty unions across campuses.
Management responded because of competing
priorities and budget constraints, they are
limited in the items they can reasonably
include in bargaining negotiations.
Officials further stated they will continue
to consider and explore a resolution as
opportunity allows. (For previous
University response, see Digest Footnote
#1.)

NONCOMPLIANCE WITH THE SOUTHERN ILLINOIS
UNIVERSITY MANAGEMENT ACT (ILLINOIS ETHANOL
RESEARCH ADVISORY BOARD)

The University did not manage the National
Corn-to-Ethanol Research Pilot Plant (Pilot
Plant) under the review and guidance of the
Illinois Ethanol Research Advisory Board
(Advisory Board).

The Advisory Board did not meet due to lack
of a quorum and had not performed its
duties of providing review and guidance to
the University Board of Trustees to assist
in operating and managing the Pilot Plant
as required by State statute. The
Edwardsville campus had continued to manage
the Research Pilot Plant under the guidance
of a stakeholders group. Six of the
thirteen Board members are appointed by the
Governor and had expired terms.

The Advisory Board is required to meet
annually and has the following duties:
• Review of annual operating plans and
budget of the Pilot Plant,
• Advising on research and development
priorities and projects to be carried out
at the Pilot Plant,
• Advising on policies and procedures
regarding the management and operation of
the Pilot Plant,
• Developing bylaws,
• Submitting a final report to the Governor
and General Assembly outlining the progress
and accomplishments made during the year
along with a financial report for the year,
and
• Establishing and operating the National
Corn-to-Ethanol Research Center of
Excellence with purposes and goals
including conducting research, providing
training, consulting, developing
demonstration projects and serving as an
independent resource to the ethanol
industry.  (Finding 8, pages 30-32)  This
finding was first reported in 2015.

We recommended the University continue to
work with the seven existing Advisory Board
members to schedule an annual meeting that
all seven members can attend, thereby
achieving a quorum, so the Board can
perform its duties under the Act.  We
further recommended the University continue
to work with the Governor’s Office of
Executive Appointments to fill the
vacancies on the Advisory Board.

University officials agreed with the
finding and responded they would encourage
and work with the new administration to get
appointments to the Board made as quickly
as possible.  (For previous University
response, see Digest Footnote #2.)

OTHER FINDINGS

The remaining findings pertain to
depreciation calculation, federal
compliance requirements, retirement system
notifications, public availability of
executive evaluations, computer inventory,
payment card industry data security and
internal controls over external service
providers. We will review the University’s
progress towards the implementation of our
recommendations in our next Single Audit
and compliance examination.

AUDITOR’S OPINIONS

The financial audit report was previously
released. The auditors stated the financial
statements of the University as of and for
the year ended June 30, 2018, are fairly
stated in all material respects.

The auditors also conducted a Single Audit
of the University as required by the
Uniform Guidance.  The auditors stated the
University complied, in all material
respects, with the types of compliance
requirements that could have a direct and
material effect on the Agency’s major
federal programs for the year ended June
30, 2018.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the University for the year
ended June 30, 2018, as required by the
Illinois State Auditing Act.  The
accountants stated the University complied,
in all material respects, with the
requirements described in the report.

This Single Audit and compliance
examination were conducted by Plante &
Moran, PLLC.

JANE CLARK
Division Director

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:LKW

DIGEST FOOTNOTES

#1 – FAILURE TO REQUIRE FACULTY TIMESHEETS
– prior response

2017:  Agree.

This matter is subject to bargaining with
the various faculty unions across campuses.
Because of many competing priorities, not
the least of which is continued budget
constraints, management is limited in the
items it can reasonably include in
bargaining negotiations. The University
will continue to consider and explore a
resolution as opportunity allows.

#2 - NONCOMPLIANCE WITH THE SOUTHERN
ILLINOIS UNIVERSITY MANAGEMENT ACT
(ILLINOIS ETHANOL RESEARCH ADVISORY BOARD)
– prior response

2017:  Agree.

SIU will continue to work with the existing
Advisory Board members in an attempt to
achieve a quorum at its next annual
meeting. Additionally, we will continue to
work with the Governor’s Office to fill the
current vacancies. NCERC at SIUE will
utilize our working Stakeholders group to
assist in every way possible to influence
the Office of the Governor to make the much
need appointments to the Advisory Board.