REPORT DIGEST

GOVERNORS STATE UNIVERSITY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  March 30, 2023

FINDINGS THIS AUDIT: 1

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

FINDINGS LAST AUDIT: 1

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 the Governors State
University’s (University) Financial
Audit as of and for the year ended
June 30, 2022.  The University’s
Single Audit covering the year ended
June 30, 2022 was separately released.
The University’s State Compliance
Examination covering the year ended
June 30, 2022, will be separately
released at a later date.

SYNOPSIS

• (22-1) The University did not have
adequate internal control over
reporting its census data and did not
have a reconciliation process to
provide assurance census data
submitted to its pension and other
postemployment benefits plans was
complete and accurate.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE INTERNAL CONTROLS OVER
CENSUS DATA

The University did not have adequate
internal control over reporting its
census data and did not have a
reconciliation process to provide
assurance census data submitted to its
pension and other postemployment
benefits (OPEB) plans was complete and
accurate.

During testing we noted the following:

• The University had not performed an
initial complete reconciliation of its
census data recorded by State
Universities Retirement System (SURS)
to its internal records to establish a
base year of complete and accurate
census data.

• After establishing a base year, the
University had not developed a process
to annually obtain from SURS the
incremental changes recorded by SURS
in their census data records and
reconcile these changes back to the
University’s internal supporting
records.

• During our cut-off testing of data
transmitted by the University to SURS,
we noted 24 instances of an active
employee becoming inactive and 1
instance of an inactive employee
becoming retired were reported to SURS
after the close of the fiscal year in
which the event occurred. (Finding 1,
Pages 5-6)  This finding has been
reported since 2020.

We recommended the University work
with SURS to complete the base year
reconciliation of Fiscal Year 2021
active members’ census data from its
underlying records to a report of
census data submitted to SURS’ actuary
and the Department of Central
Management Services’ (CMS) actuary. In
addition, we recommended, after
completing an initial full
reconciliation, the University may
limit the annual reconciliations to
focus on the incremental changes to
the census data file from the prior
actuarial valuation, provided no risks
are identified that incomplete or
inaccurate reporting of census data
may have occurred during prior
periods. Further, we recommended the
University ensure all events occurring
within a census data accumulation year
are timely reported to SURS so these
events can be incorporated into the
census data provided to SURS’ actuary
and CMS’ actuary

University officials agreed with the
finding and stated the University has
been working with SURS to address the
issues identified.

AUDITOR’S OPINION

The auditors stated the financial
statements of the University as of and
for the year ended June 30, 2022 are
fairly stated in all material
respects.

This financial audit was conducted by
Adelfia, LLC.

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