REPORT DIGEST GOVERNORS STATE UNIVERSITY Single Audit and Compliance Examination For the Year Ended June 30, 2015 Release Date: March 10, 2016 FINDINGS THIS AUDIT: 7 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 2 -- 5 -- 7 Category 3: 0 -- 0 -- 0 TOTAL: 2 -- 5 -- 7 FINDINGS LAST AUDIT: 6 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 This digest covers our Single Audit and Compliance Examination of Governors State University for the year ended June 30, 2015. A separate Financial Audit as of and for the year ending June 30, 2015, was previously released on January 26, 2016. SYNOPSIS • (15-4) The University did not comply with the federal reporting requirement of a grant from the Veterans Benefits Administration. • (15-6) The University needs to improve controls over verification of information included on a job applicant’s resume or application prior to hiring. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS NONCOMPLIANCE WITH FEDERAL REPORTING REQUIREMENTS Governors State University (University) did not comply with the federal reporting requirement of a grant from the Veterans Benefits Administration of the U.S. Department of Veterans Affairs (VA). During our detail testing of 25 students, we noted the following: •Enrollment status change for a student was not reported to the VA within 30 days from the date change the occurred (53 days late). • Enrollment status change for a student was not reported to the VA, which resulted in an overpayment to the student. The University subsequently reported the enrollment status change to the VA after being noted during the audit. (Finding 4, pages 24-25) We recommended the University improve its procedures to ensure compliance with reporting requirements. University officials agreed with the finding and stated they have hired and trained staff to reduce the probability of this occurring in the future. NEED TO IMPROVE CONTROLS OVER VERIFICATION OF JOB APPLICANT’S INFORMATION The University did not have adequate controls over verification of information included on a job applicant’s resume or application prior to hiring. During our testing of the University’s compliance with its policy and procedures for verification of information included on a job applicant’s resume or application, we noted five of ten employee personnel files reviewed did not have the reference check form which is a required verification document. (Finding 6, pages 28-29) We recommended the University evaluate its internal control process to ensure that policy and procedures are complied with. University officials agreed with the finding and stated that they have implemented procedures to ensure that all required documentation is forwarded to the Human Resources Department. OTHER FINDINGS The remaining findings are reportedly being given attention by University officials. We will review progress toward implementation of our recommendation in our next audit. AUDITOR’S OPINION The financial audit report was previously released. The auditors stated the financial statements of the Governors State University as of and for the year ended June 30, 2015, are fairly stated in all material respects. The auditors also conducted a Single Audit of the University as required by OMB Circular A-133. Our auditors stated the University complied, in all material respects, with the types of compliance requirements that could have a direct and material effect on each of the University’s major federal programs for the year ended June 30, 2015. ACCOUNTANT’S OPINION The accountants conducted a compliance examination of the University for the year ended June 30, 2015, as required by the Illinois State Auditing Act. The auditors stated the University complied, in all material respects, with the requirements described in the report. FRANK J. MAUTINO Auditor General FJM:JGR SPECIAL ASSISTANT AUDITORS Our Special Assistant Auditors for this engagement were E.C. Ortiz & Co., LLP.