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, 1999

Summary of Findings:

Total this audit 9

Total last audit 12

Repeated from last audit 3

Release Date:
March 21, 2000

Logo.gif (1870 bytes)

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

 

 

  • The University did not have adequate controls over the review of unemployment benefit claims and payments.
  • The University reimbursed an employee for commuting expenses which are not allowed by the travel regulations.

 

 

 

 

 

 

 

 

 

 

 

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

SOUTHERN ILLINOIS UNIVERSITY
FINANCIAL AND COMPLIANCE AUDIT
FOR THE YEAR ENDED JUNE 30, 1999

FINANCIAL OPERATIONS (CURRENT FUNDS)

FY 1999

FY 1998

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 Expenditures
Mandatory Transfers

Total

 

$209,152,818
97,358,861
42,848,366
58,257,429
43,213,848
41,626,119
56,010,723

$548,468,164

 

$186,734,025
31,921,356
46,427,040
71,208,201
54,764,093
44,249,013
40,202,715
30,271,028
51,506,016
7,239,732

$564,523,210

 

$199,501,451
93,167,975
54,189,073
54,264,115
39,650,253
37,398,527
53,431,605

$531,602,999

 

$181,576,926
30,527,762
41,818,766
68,540,916
50,074,893
43,396,480
36,864,739
27,145,581
49,534,584
6,912,290

$536,392,937

SELECTED ACCOUNT BALANCES (ALL FUNDS)

AT JUNE 30,
1999

AT JUNE 30,
1998

Cash and Investments
Campus Plant Facilities
Accrued Compensated Absences
Revenue Bonds Payable

 

$138,327,401
$778,474,743
$48,066,116
$125,078,075

$122,034,948
$750,669,254
$47,740,890
$105,139,530

SUPPLEMENTARY INFORMATION

FY 1999

FY 1998

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

 

6,499
2,507

9,006

 

18,688
8,831

27,519

$6,785


77%
89%

 

6,822
2,433

9,255

 

18,583
8,404

26,987

$6,728


79%
89%

UNIVERSITY PRESIDENT
During Audit Period: Dr. Ted Sanders (through January 31, 2000)
Currently: Frank E. Horton, Interim President (effective February 1, 2000)
 

 

 

 

 

 

 

 

 

 

Problems in reviewing unemployment benefit claims

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Travel regulations not followed

INTRODUCTION

Our 1999 audit of Southern Illinois University is presented in three volumes: Compliance Audit; Financial Audits; and Supplementary Financial Information. The findings and recommendations are contained in the Compliance Audit volume.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF CONTROLS IN MONITORING UNEMPLOYMENT COMPENSATION

The University's failure to develop adequate controls over the review of unemployment benefit claims and payments has resulted in several problems.

During FY 99, 164 former/current employees of the University received almost $532,000 in unemployment benefits. To test controls over unemployment benefit processing we selected a sample of 75 of the 164 benefit recipients from Edwardsville and Carbondale. We tested for documentation support for the unemployment benefits paid, as well as the appropriateness of the benefit payments.

  • Failure to Report Simultaneous Work: In 15 percent (11 of 75) of the cases reviewed, benefit recipients were working at the University while they were also receiving unemployment benefits resulting in questionable benefits being paid. Questionable unemployment benefit payments made in these 11 cases totaled $5,749 for 38 weeks.
  • Vacation Pay: In 9 percent (7 of 75) of the cases reviewed, the University failed to report $14,060 in vacation payments, which are equivalent to wages, while the individuals were also receiving unemployment benefits. These 7 individuals received 161 weeks of unemployment benefits totaling $41,524.
  • Failure to Protest Questionable Unemployment Claims: In 7 percent (5 of 75) of the cases sampled, the University failed to protest potentially ineligible unemployment claims resulting in questionable benefits being paid. In 4 instances the University failed to protest that the individual resigned from his or her employment. These 4 cases went on to be paid $12,302 for 55 weeks of unemployment. In one instance documentation supported misconduct by the employee that the University failed to protest on the claim notice. The individual received $6,680 in unemployment benefits for 29 weeks.
  • Lack of Documentation: In 7 percent (5 of 75) of the cases sampled, we found that the University lacked some documentation to provide for adequate review of unemployment benefits paid out and charged to the State. (Finding 1, page 20)

We recommended the University develop policies and procedures for the review of unemployment benefit claims and charges that include protesting all cases where potential ineligibility exists so that State resources are adequately protected.

University officials responded that they accepted our recommendation and stated they will review University procedures for processing unemployment claims.

REIMBURSEMENT OF NON-ALLOWABLE TRAVEL EXPENSES

The University reimbursed an employee for travel expenses that were incurred during the employee's commute from his residence to his designated headquarters without submitting an exception report. This employee's permanent home is in St. Louis, Missouri, and his headquarters for travel purposes is the Carbondale campus. The employee's secondary duty station is the Edwardsville campus. When this employee was required to work at the Edwardsville campus, he claimed and received reimbursement for mileage between his designated headquarters, Carbondale, and his home in St. Louis. These payments were approximately $4,500. The Travel Guide for SIU Employees states that "As a condition of employment, employees expect to incur commuting expenses between their residence and headquarters. These expenses are not reimbursable." The University failed to complete an Exception Report for this travel, which must be completed and submitted to the Higher Education Travel Control Board. (Finding 4, page 27)

We recommended the University follow its policy of not reimbursing employees for their normal commuting expenses or clarify its policy in regard to this type of situation.

University official responded that they accepted our recommendation and stated the University does not and will not reimburse employees for their normal commuting expenses. The officials stated further their belief that the University saved approximately $2,900 in travel costs related to the employee’s travel.

OTHER FINDINGS

The remaining findings are less significant and are being given attention by the University. We will review the University’s progress towards the implementation of our recommendations in our next compliance audit.

Mr. Ron Cremeens, Executive Director of Audits, provided the University’s responses.

AUDITORS’ OPINION

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

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KMM:pp

SPECIAL ASSISTANT AUDITORS

PricewaterhouseCoopers LLP were our special assistant auditors for these audits.