REPORT DIGEST
WESTERN ILLINOIS UNIVERSITY
Compliance Examination and Single Audit
For the Year Ended June 30, 2010
Summary of Findings this Audit Cycle:
• Compliance and Single Audit: 4
• Financial Audit (previously reported 2-4-11): 2
TOTAL findings: 6
Summary of Findings from Previous Audit Cycle: 5
• Repeated from last audit: 2
Release Date: March 22, 2011
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 Full Report are also available on the worldwide web at www.auditor.illinois.gov
____________________________
INTRODUCTION
The Financial Statement Audit for the year ended June 30,
2010 was previously released on February 16, 2011. That audit contained two findings. This report addresses Federal and State
compliance findings pertaining to the Single Audit and State Compliance
Examination. In total, this report
contains 6 findings, two of which were also reported in the Financial Audit.
SYNOPSIS
• The University had not established adequate internal
controls over contracts and leases to ensure they contained all necessary
provisions and were properly executed prior to performance.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
NONCOMPLIANCE WITH REQUIRED CONTRACTING PROCEDURES
The University had not established adequate internal
controls over contracts and leases to ensure they contained all necessary
provisions and were properly executed prior to performance. We tested 3 leases and 40 contracts and
noted:
• One (33%) lease disclosure forms was completed 83 days
after lease execution,
• Two (67%) leases were executed 16-76 days after leases
began,
• Three (8%) contracts were signed after purchasing goods
totaling nearly $400,000,
• Three of 9 (33%) contracts over $250,000 were not approved
by all three required top administrators, and
• Two (5%) contracts were not filed with the State
Comptroller. (Finding 4, pages 27-28)
We recommended the
University establish appropriate procedures to ensure all contracts, leases,
and related disclosures are properly completed, approved, and executed prior to
the start of the services or lease terms.
We also recommended the University review its procedures to ensure
contracts are filed with the Comptroller.
University officials
accepted the finding and stated procedures have been or will be developed to
address the exceptions reported.
OTHER FINDINGS
The remaining
findings are reportedly being given attention by the University. We will review the University’s progress
towards the implementation of our recommendations in our next audit.
AUDITORS' OPINION
The
auditors conducted a compliance examination and Single audit of the University
for the year ended June 30, 2010. A
financial audit covering the year ended June 30, 2010 was issued separately.
WILLIAM G. HOLLAND
Auditor General
WGH:lkw
AUDITORS ASSIGNED: Our special assistant auditors for this examination were E. C. Ortiz & Co. LLP.