REPORT DIGEST EASTERN ILLINOIS UNIVERSITY FINANCIAL AUDIT, SINGLE AUDIT, AND COMPLIANCE EXAMINATION FOR THE YEAR ENDED JUNE 30, 2016 Release Date: March 29, 2017 FINDINGS THIS AUDIT: 3 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 1 -- 2 -- 3 Category 3: 0 -- 0 -- 0 TOTAL: 1 -- 2 -- 3 FINDINGS LAST AUDIT: 4 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 INTRODUCTION During the fiscal year ended June 30, 2016, Eastern Illinois University’s net position decreased by approximately $19.6 million to $213.4 million. At June 30, 2015 and June 30, 2014 the net position total was $233,096,856 and $231,591,602 respectively. The FY16 decreases were primarily due to declining student enrollment and State appropriations. The unrestricted portion of the net position has been declining steadily in recent years. SYNOPSIS • (16-02) The University did not exercise adequate internal control over the return of grant and loan funds to the United States Department of Education. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER REFUNDS Eastern Illinois University (University) did not exercise adequate internal controls over the return of grant and loan funds to the United States Department of Education. During testing, the auditors noted five of 25 (20%) unearned grant and loan funds were not properly calculated, resulting in the amount returned being understated by $822. (Finding 2, pages 20-21) We recommended the University implement controls to ensure all returns of grant and loan funds are properly calculated and timely refunded. The University agreed with the recommendation. OTHER FINDINGS The remaining findings pertain to noncompliance with enrollment reporting requirements and lack of timesheets. We will review the University’s progress towards the implementation of our recommendations in our next financial audit, Single Audit, and compliance examination. AUDITOR’S OPINION(S) The auditors stated the financial statements of the University as of and for the year ended June 30, 2016, are fairly stated in all material respects. The auditors also conducted a Single Audit of the University as required by the Uniform Guidance. The auditors stated the University complied, in all material respects, with the types of compliance requirements that could have a direct and material effect on the University’s major federal programs for the year ended June 30, 2016. ACCOUNTANT’S OPINION The accountants conducted a compliance examination of the University for the year ended June 30, 2016, as required by the Illinois State Auditing Act. The accountants stated the University complied, in all material respects, with the requirements described in the report. This financial audit, Single Audit, and compliance examination was conducted by CliftonLarsonAllen, LLP. BRUCE L. BULLARD Division Director This report is transmitted in accordance with Section 3-14 of the Illinois State Auditing Act. FRANK J. MAUTINO Auditor General FJM:mkl