REPORT DIGEST WESTERN ILLINOIS UNIVERSITY FINANCIAL AUDIT FOR THE YEAR ENDED JUNE 30, 2017 Release Date: March 15, 2018 FINDINGS THIS AUDIT: 1 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 1 -- 0 -- 1 Category 2: 0 -- 0 -- 0 Category 3: 0 -- 0 -- 0 TOTAL: 1 -- 0 -- 1 FINDINGS LAST AUDIT: 1 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 SYNOPSIS This digest covers the Western Illinois University Financial Audit as of and for the year ended June 30, 2017. The University’s Compliance Examination (including the Single Audit) covering the year ended June 30, 2017 will be issued in a separate report at a later date. • (17-1) The University did not ensure restrictions from revenue bond covenants were properly reflected within the University’s financial statements. FINDING, CONCLUSION, AND RECOMMENDATION INADEQUATE CONTROL OVER REPORTING RESTRICTED ACCOUNTS The University did not ensure restrictions from revenue bond covenants were properly reflected within the University’s financial statements. The University had not designed its internal controls to ensure accurate reporting of restricted assets and restricted net position under generally accepted accounting principles. (Finding 1, pages 53-55) We recommended the University periodically review its internal controls over financial reporting to provide assurance accounts are properly classified under generally accepted accounting principles. The University agreed with the finding and responded they will periodically review internal controls over financial reporting to ensure accounts are properly classified in conformity with generally accepted accounting principles. We will review the Agency’s progress towards the implementation of our recommendation in our next financial audit. AUDITOR’S OPINION The auditors stated the financial statements of the University as of and for the year ended June 30, 2017 are fairly stated in all material respects. This financial audit was conducted by Adelfia LLC. 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