REPORT DIGEST

ILLINOIS STATE UNIVERSITY

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2021

Release Date:  May 26, 2022

FINDINGS THIS AUDIT:  14

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 2 -- 2
Category 2:  3 -- 9 -- 12
Category 3:  0 -- 0 -- 0
TOTAL:  3 -- 11 -- 14

FINDINGS LAST AUDIT: 14

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 State
compliance examination of the
University for the year ended June 30,
2021.  The University’s financial
audit as of and for the year ended
June 30, 2021, and the University’s
Single Audit for the year ended June
30, 2021, were separately released.
In total, this report contains 14
findings, 2 of which reported within
the University’s financial audit and
Single Audit reports.

SYNOPSIS

• (21-07) The University did not run
the Illinois Institute for
Entrepreneurship Education.
• (21-10) The University did not
always ensure compliance with the
University Faculty Research and
Consulting Act and University policies
regarding outside employment.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

FAILURE TO RUN THE ILLINOIS INSTITUTE
FOR ENTREPRENEURSHIP EDUCATION

The Illinois State University
(University) did not run the Illinois
Institute for Entrepreneurship
Education (IIEE).

During testing, we noted the
University transferred the IIEE to the
Chicago State University (CSU) during
Fiscal Year 2011. (Finding 7, page 23)

We recommended the University run the
IIEE or seek a legislative remedy with
CSU to formally transfer the IIEE to
CSU.

University officials indicated they
will seek legislative support to
eliminate the law.

NONCOMPLIANCE WITH THE UNIVERSITY
FACULTY RESEARCH AND CONSULTING ACT

The Illinois State University
(University) did not always Ensure
compliance with the University Faculty
Research and Consulting Act (Act) and
University policies regarding outside
employment.

During Fiscal Year 2021, faculty
members reported 96 instances of
outside employment to the University
Provost.

During testing, we noted the
following:

• Thirty-two of 96 (33%) instances had
the Request for Approval of Secondary/
Outside Employment (Form PERS 927)
submitted by the faculty member for
approval by the University’s Provost
between 1 to 239 days late.

• Two of 96 (2%) instances never had a
Form PERS 927 submitted by the faculty
member to the University’s Provost.

• Fifty-five of 96 (57%) instances had
Form PERS 927 approved by the
University’s Provost between 1 to 377
days late.

• Fifty-five of 96 (57%) instances did
not have the Annual Report of
Secondary/Outside Employment (Form
PERS 928) submitted by the faculty
member.

• Six of 96 (6%) instances had the
Form PERS 928 submitted by the faculty
member to the University’s Provost
during September and October 2021,
between 1 to 35 days late. This lag
reduced or eliminated the amount of
time available for review and approval
by the faculty member’s department
chair and dean prior to the deadline
for receiving final approval from the
University’s Provost on September 30,
2021.

• Three of 96 (3%) instances had an
approval for outside employment by the
University’s Provost, but the PERS 927
on file did not have the expected end
date of the faculty member’s
employment.

Further, this finding was first noted
during the University’s Fiscal Year
2012 State compliance examination, 10
years ago. As such, University
management has been unsuccessful in
implementing a corrective action plan
to remedy these deficiencies.
(Finding 10, pages 27-28)  This
finding has been repeated since 2012.

We recommended the University’s
Provost take appropriate corrective
action and implement internal controls
to ensure faculty members with outside
research, consulting services, or
employment receive written pre-
approval to conduct the requested
activity and annually disclose the
time spent on these activities in
accordance with State law and
University policy.

University officials indicated they
implemented a new online application
and renewal process at the beginning
of Fiscal Year 2021 and that they
continue to evaluate and improve the
process.

OTHER FINDINGS

The remaining findings pertain to (1)
weaknesses in cybersecurity programs
and practices, (2) inadequate business
continuity and disaster recovery
planning, (3) noncompliance with the
Illinois Articulation Initiative Act,
civil service requirements, and
timekeeping requirements, (4) failure
to appoint a sustainability committee,
and (5) inadequate controls over
property and equipment, employment
eligibility verifications, training,
and voucher processing.  We will
review the University’s progress
towards the implementation of our
recommendations in our next State
compliance examination.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the
University for the year ended June 30,
2021, as required by the Illinois
State Auditing Act.  The accountants
qualified their report on State
compliance for Finding 2021-001 and
Finding 2021-002.  Except for the
noncompliance described in these
findings, the accountants stated the
University complied, in all material
respects, with the requirements
described in the report.

This State compliance examination was
conducted by RSM US LLP.

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

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