GOVERNORS STATE UNIVERSITY

Single Audit and Compliance
Examination
For the Year Ended June 30, 2020

Release Date: June 23, 2021


FINDINGS THIS AUDIT:  11

CATEGORY:  NEW -- REPEAT -- TOTAL

Category 1: 1 -- 0 -- 1
Category 2: 2 -- 8 -- 10
Category 3: 0 -- 0 -- 0
TOTAL: 3 -- 8 -- 11

FINDINGS LAST AUDIT:  12


INTRODUCTION

This digest covers the Governors State
University Single Audit and Compliance
Examination for the year ended June
30, 2020.  A separate digest covering
the University’s Financial Audit as of
and for the year ended June 30, 2020
will be released under separate cover.
In total, this report contains 11
findings, one of which was reported in
the Financial Audit.


SYNOPSIS

• (20-03) The University did not meet
the funded enrollment requirement for
its Head Start Program.
• (20-04) The University did not
comply with the Abused and Neglected
Child Reporting Act.
• (20-06) The University’s program of
internal audit did not review all
major sytems within a two year period.
• (20-07) The University did not
comply with requirements applicable to
its computer and other equipment.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

FAIULURE TO MEET HEAD START PROGRAM
EARMARKING REQUIREMENTS

The University did not meet the funded
enrollment requirement for its Head
Start Program.

The University did not meet the funded
enrollment requirements for its Head
Start Program. In our detailed
testing of the monthly enrollment
reports for Fiscal Year 2020,
we noted the University did not meet
the funded enrollment requirement for
the 12 months (2 to 12 individuals
underenrolled). (Finding 3, pages
24-25) This finding has been repeated
since 2014.

We recommended the University improve
its recruitment procedures to ensure
compliance with the funded enrollment
of the Program.

University officials agreed with the
finding and stated they have begun a
process of addressing the issues
identified.

CHILD ABUSE REPORTER TRAINING

The University did not comply with the
Abused and Neglected Child Reporting
Act (Act) regarding training. Our
testing of 35 employees identified:

• 7 (20%) employees did not receive
the required reporter training within
one year of initial employment.

• 21 (60%) employees for which the
University did not have any
documentation in which the employee
acknowledges the Act’s reporting
requirements.

• 8 (23%) employees did not sign and 1
(3%) employee did not date the
documentation in which the employee
acknowledges the reporting
requirements of the Act prior to the
commencement of employment.

• 10 (29%) employees signed documents
after January 1, 2019 acknowledging
the reporting requirements of the Act,
however the form was not up to date as
it did not include information
regarding mandated reporter training
provided by the Department of Children
and Family Services. (Finding 4, page
26-27) This finding has been repeated
since 2016.

We recommended the University comply
with the requirements of the Act and
ensure all employees receive the
proper training within the required
timeframe, include the proper
information in the employee’s signed
training statements, and timely obtain
signed statements from required
employees.

University officials agreed with the
finding and stated the University will
modify its practices to work towards
compliance.

FAIULURE TO REVIEW MAJOR SYSTEMS
WITHIN A TWO YEAR PERIOD

The University’s program of internal
auditing was unable to review all
major systems within a two year period
as required by the Fiscal Control and
Internal Auditing Act (FCIAA).

During testing, it was determined the
Chief Internal Auditor did not issue
internal audit reports covering
reviews of all major systems of
internal accounting and administrative
controls over the past two year
period. The only internal audit report
issued during Fiscal Years 2019 and
2020 was an audit of the Illinois
Board of Higher Education tuition and
fee waiver guidelines. In addition,
the auditors noted the Chief Internal
Auditor reported four other audits
were “completed” in the annual report
dated September 30, 2020 to the
University’s President; however, as of
January 6, 2021, none of the noted
four audit reports had been issued.
(Finding 6, pages 30-31)

We recommended the University improve
its procedures to ensure all major
systems of internal accounting and
administrative controls are reviewed
at least once every two years as
required by the FCIAA.

University officials agreed with the
finding and stated they have
implemented a process to address the
issue.

INADEQUATE CONTROLS OVER COMPUTERS AND
EQUIPMENT

The University did not comply with
requirements applicable to its
computers and other equipment.

We examined and performed procedures
on the physical inventory performed by
the University that was certified as
of September 1, 2019. We noted the
University reported 10 items, valued
at $16,539, of unlocated equipment.
Five of those items were deleted
including 3 computers totaling $3,760.
The University also completed a second
certification of its inventory as of
June 30, 2020. The University reported
ten unlocated items valued at $14,711,
all of which were computers or
workstations. The University did not
immediately perform a complete
assessment of the missing computers
and storage devices to determine
whether they contained confidential
information and whether notifications
were required as outlined in the
Personal Information Protection Act
(815 ILCS 530/25).

We also tested 25 computers that were
sent to surplus according to the
University’s property control records
to determine whether the University
complied with its internal procedures
and maintained evidence the computers
had been “wiped” prior to transfer.
The University could not provide any
evidence for one (4%) of these
computers demonstrating it had been
wiped before being transferred to
surplus.

We tested ten equipment additions made
during the year and noted 6 (60%) of
the additions were not timely added
(21 to 60 days late) to the property
control records.

Our physical inventory testing of 60
items on the property control records
on the June 30, 2020 certified
physical inventory listing identified
two computers (3%) with a total value
of $3,071 that could not be found.
(Finding 7 pages 32- 34) This finding
has been repeated since 2016.

We recommended the University improve
the operation of its internal controls
over the accountability of University
equipment and comply with its
procedures for documenting wiping of
computer equipment prior to disposal
and ensuring items are accurately and
timely recorded. Further, we
recommended the University perform and
document timely assessments of all
missing computer and data storage
equipment to determine whether they
contained confidential
information and whether notifications
under the Personal Information
Protection Act are required.

University officials agreed with the
finding and stated they will continue
to improve its property control
process and reporting requirements.

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 engagement.

AUDITOR’S OPINIONS

The financial audit report was
released under separate cover.
The auditors stated the financial
statements of the University as of and
for the year ended June 30, 2020 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,
2020.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the University for the
year ended June 30, 2020, as required
by the Illinois State Auditing Act.
The accountants qualified their report
on State Compliance for Finding
2020-001. Except for the noncompliance
described in that finding, the
accountants stated the University
complied, in all material respects,
with the requirements described in the
report.

This Single Audit and compliance
examination was conducted by
Borschnack, Pelletier & Co.

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:JGR