REPORT DIGEST EASTERN ILLINOIS UNIVERSITY Single Audit and Compliance Examination For the One Year Ended June 30, 2013 Release Date: March 26, 2014 Summary of Findings: • Compliance: 5 • Financial Audit (released 12-19-13): 0 Total findings: 5 Total last audit: 16 Repeated from last audit: 5 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 This digest covers our Single Audit and compliance examination of the Eastern Illinois University for the year ended June 30, 2013. A financial audit as of and for the year ending June 30, 2013, was previously released on December 19, 2013. • The University did not exercise adequate internal controls over the University’s vehicles. • The University needs to improve compliance with the University Faculty Research and Consulting Act. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS NEED TO IMPROVE CONTROLS OVER VEHICLES Eastern Illinois University (University) did not exercise adequate internal controls over the University’s vehicles. The auditors noted the following: • The University did not collect and maintain odometer readings on a regular basis for University owned vehicles. • The University did not have a policy in place regarding all University-owned vehicles to undergo regular service and/or repairs in order to maintain the vehicles in a road worthy and safe operating condition. During University-owned vehicle maintenance testing, the auditors noted: • Two of 40 (5%) vehicles tested were driven over 7,000 and 15,500 miles with a year between regular maintenance. The University did not require maintenance records to be submitted for services performed at other locations. Additionally, the second vehicle’s maintenance was not performed at regular intervals because the vehicle was not available for service at the time. • Two of 40 (5%) vehicles did not have recorded odometer readings during Fiscal Year 2013 or vehicle maintenance records. The University did not require maintenance records to be submitted for the services performed at other locations for these vehicles. (Finding 2, pages 20-21) We recommended the University: • Collect, maintain, and review odometer readings on a regular basis to provide assurance University-owned vehicles are being properly used and whether each vehicle can be justified as the most cost effective solution for the University’s specific operational needs; • Adopt a policy and implement internal controls to ensure all University vehicles undergo regular service and/or repair. University officials agreed with the recommendation, indicating they will continue to centralize responsibility for collecting periodic odometer readings from University vehicles and will work to ensure that each vehicle receives routine maintenance. NEED TO IMPROVE COMPLIANCE WITH THE UNIVERSITY FACULTY RESEARCH AND CONSULTING ACT The University did not always ensure compliance with the University Faculty Research and Consulting Act. During testing, the auditors noted the following: • Seven of ten (70%) request forms for outside employment were submitted by faculty members between one and 154 days after the outside services began. • Nine of ten (90%) approvals for outside employment request forms submitted by faculty members were approved by the University’s provost between four to 163 days after outside services began. • Three of ten (30%) full-time faculty members approved for outside employment did not complete an annual statement of the amount of time spent on outside employment with the University’s provost. (Finding 3, pages 22-23) We recommended the University enhance the internal controls to ensure faculty members with outside research or consulting services receive written pre-approval to conduct the requested activity and annually disclose time spent on these activities in accordance with State law. University officials agreed with the recommendation and stated they will continue to remind faculty of their responsibilities under this statute. The University would also work with faculty members to provide timely approval of their outside research and consulting services and obtain an appropriate indication of time spent on the outside projects. 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 State compliance examination and federal Single Audit of the University for the year ended June 30, 2013. A financial audit of the University as of and for the year ended June 30, 2013, was previously released. WILLIAM G. HOLLAND Auditor General WGH:mkl SPECIAL ASSISTANT AUDITORS Our special assistant auditors for this engagement were CliftonLarsonAllen, LLP.