REPORT DIGEST

GOVERNORS STATE UNIVERSITY

SINGLE AUDIT
FOR THE YEAR ENDED JUNE 30, 2021

Release Date:  July 13, 2022

FINDINGS THIS AUDIT:  5

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  3 -- 0 -- 3
Category 3:  0 -- 1 -- 1
TOTAL:  3 -- 2 -- 5

FINDINGS LAST AUDIT: 3

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 Governors State
University’s (University) Single Audit
for the year ended June 30, 2021. A
separate digest covering the
University’s Financial Audit was
previously released on June 16, 2022.
In addition, a separate digest
covering the University’s Compliance
Examination will be separately
released.  In total, this report
contains 5 findings, one of which was
reported in the Financial Audit.

SYNOPSIS

• (21-02) The University did not
timely provide exit counseling for
Federal Direct Student Loan recipients
who ceased half-time study at the
University.
• (21-03) The University did not
accurately and timely report student
enrollment information to the U.S.
Department of Education’s National
Student Loan Data System.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

UNTIMELY EXIT COUNSELING

The University did not timely provide
exit counseling for Federal Direct
Student Loan recipients who ceased
half-time study at the University.

We tested a sample of 60 students who
received Federal student financial
aid.  Included in those 60 students
were 14 Federal Direct Student Loan
recipients who ceased half-time study
at the University during Fiscal Year
2021. The University’s notification to
the students of the need to complete
exit counseling was provided 43 days
late for 2 (14%) of the students and
was never sent for 3 (21%) students.
(Finding 2, pages 17-18)

We recommended the University conduct
timely exit counseling in accordance
with Federal regulations.

University officials agreed with the
finding and stated they updated
procedures to conduct timely exit
counseling.

ENROLLMENT REPORTING

The University did not accurately and
timely report student enrollment
information to the U.S. Department of
Education’s National Student Loan Data
System (NSLDS).

During our audit, we tested 25
students who experienced a change in
enrollment status during the fiscal
year. Our testing identified two
students (8%) who had a change in
enrollment status (graduated) which
was not reported accurately to the
NSLDS (student was erringly reported
as withdrawn). These two students were
reported to NSLDS 119 days (59 days
late) after the status change.
(Finding 3, pages 19-20)

We recommended the University improve
its procedures to ensure timely and
accurate reporting of student
enrollment status to the NSLDS.

University officials agreed with the
finding and stated it has updated its
procedures to ensure timely and
accurate reporting of students’
enrollment information.

OTHER FINDINGS

The remaining findings pertain to
inadequate internal controls over
census data, errors in Fiscal
Operations Report, and Federal Perkins
Loan Cohort default rate too high.
We will review the University’s
progress towards the implementation of
our recommendations in our next Single
Audit.

AUDITOR’S OPINION

The financial audit report was issued
separately.  The auditors stated the
financial statements of the University
as of and for the year ended June 30,
2021, 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,
2021.

This Single Audit 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