REPORT DIGEST

CHICAGO STATE UNIVERSITY

FINANCIAL AUDIT
For the Year Ended: June 30, 2013


Release Date:   January 16, 2014

Summary of Findings:
Total this audit: 1
Total last audit:  3
Repeated from last audit: 1

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

SYNOPSIS

• The University did not properly account for
vested sick time absences of employees and did
not properly calculate the accrued leave
liability of the University.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INACCURATE ACCOUNTING OF ACCRUED COMPENSATED
ABSENCES

The University did not properly account for
vested sick time absences of employees and did
not properly calculate the accrued leave
liability of the University.

We compared 100% of the employees’ accrued sick
leave days/hours as of June 30, 2013 to June 30,
2012 in order to ensure that there were not any
increases in accrued vested sick days/hours for
any employees.

We noted 6 employees in which the accrued sick
leave days/hours payable at June 30, 2012 was
zero but a balance was present at June 30, 2013.
The University had inadvertently left these
employees’ vested time off of the 2012 listing.

These omissions of vested sick time at June 30,
2012 understated the accrued leave liability for
the year ending June 30, 2012 and overstated the
fiscal year 2013 expenses by approximately
$128,253.  An adjusting entry was proposed to
correct this misstatement.

We also tested a sample of 19 employees to
determine if the University was properly
accounting for leave time earned and used.  The
University maintains manual records to track
employee leave days/hours.  We noted two
employees in our sample that had accrued leave
time that was not correctly accounted for.  Once
brought to the University’s attention, the
employee records were corrected.  (Finding 1,
pages 48-49)  This finding was first reported in
2011.

We recommended that the University improve its
system for accumulating and calculating
compensated absences to ensure records and
reporting are accurate.

University officials agreed with the
recommendation and stated that the University
has conducted training that covers data
gathering and input processes.  In addition, the
University has initiated efforts to transition
to an automated system.  (For the previous
University response, see Digest Footnote #1.)

AUDITORS’ OPINION

Our auditors state the University’s financial
statements as of June 30, 2013 and for the year
then ended, are fairly presented in all material
respects.

WILLIAM G. HOLLAND
Auditor General

WGH:TLK

SPECIAL ASSISTANT AUDITORS

Borschnack, Pelletier & Co. were our special
assistant auditors.

DIGEST FOOTNOTES

 #1 –Inaccurate Accounting of Accrued
 Compensated Absences – Previous University
 Response

The current manual process has been improved for
the calculation and accumulation of compensated
absences.  In addition, the University will have
an accounting firm to provide additional
oversight and review until implementation of an
automated process.  The automated process is
scheduled to be in effect July 1, 2013.  The
University accepts the recommendation.