REPORT DIGEST

NORTHEASTERN ILLINOIS UNIVERSITY

FINANCIAL AND COMPLIANCE AUDIT

(In accordance with the Single Audit Act and OMB Circular A-133)

For the Year Ended:
June 30, 2002

Summary of Findings:

Total this audit 2
Total last audit 3
Repeated from last audit 1

Release Date:
March 4, 2003

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State of Illinois
Office of the Auditor General
WILLIAM G. HOLLAND
AUDITOR GENERAL

To obtain a copy of the Report contact:
Office of the Auditor General
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

  

 

 

 

 

 

 

 

SYNOPSIS

 
  • The University failed to fully monitor the subgrantees for the Federal Gear-Up program.

 

 

 

 

 

 

 

 

 

 

{Financial Information is summarized on the reverse page.}

 

NORTHEASTERN ILLINOIS UNIVERSITY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 2002

FINANCIAL OPERATIONS

FY 2002

FY 2001*
REVENUES

State Appropriations
General Revenue Fund
Education Assistance Fund
Capital Development Fund
Payments on behalf of University
Student tuition and other fees
Grants (principally federal awards)
Auxiliary enterprises
Other sources
Total

EXPENSES

Instruction
Research
Public Service
Academic Support
Student services and Programs
Institutional support
Operation of plant
Scholarships and Fellowships
Auxiliary enterprises
Depreciation
Interest
Other operating expense
Mandatory transfers
Total

 


$38,589,773
6,272,672
133,875
12,986,229
20,186,426
21,629,234
2,426,829
6,485,875
$108,710,913

 

$34,626,306
157,533
11,090,027
6,114,161
6,534,196
24,021,842
9,995,925
4,395,033
2,326,005
3,913,580
402,756
575,332
0
$104,152,696

 


$36,636,100
5,973,944
920,941
11,269,364
23,911,604
20,638,946
1,013,497
4,013,977
$104,378,373

 

$31,454,819
246,981
11,370,932
7,083,955
6,009,667
20,434,014
10,872,017
8,787,979
2,103,903
0
570,424
0
375,705
$99,310,396
SELECTED ACCOUNT BALANCES

JUNE 30, 2002

JUNE 30, 2001
Cash and short-term investments
Equipment
Buildings and Land
Accrued compensated absences
Net Assets:
Invested in capital assets – net of related debts
Unrestricted
Restricted
* The FY 2001 figures have not been restated to reflect the implementation of GASB statements #35, 37 and 38.		 $25,992,162
8,490,695
67,333,978
12,426,339

$69,363,356
6,753,861
4,987,178

 $21,052,850
43,355,323
91,842,851
11,865,943

$0
134,343,479
5,421,234
SUPPLEMENTARY INFORMATION

FY 2002

FY 2001
Employment Statistics
Administration
Faculty
Civil Service
Students
Total Employees
Selected Activity Measures
Annual full-time equivalent students – Undergraduate
Annual full-time equivalent students – Graduate
Full-time equivalent cost per student – Undergraduate
Full-time equivalent cost per student – Graduate

238
379
470
367
1,454


6,437
1,529
$7,169
$9,772

222
371
473
401
1,467


6,251
1,435
$6,880
$9,779
UNIVERSITY PRESIDENT
During Audit Period: Dr. Salme H. Steinberg
Currently: Dr. Salme H. Steinberg
 

 

 

 

 

No procedures in place at the University to follow-up on the Subgrantee audit reports

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NEED TO IMPROVE MONITORING OF SUBGRANTEES

The University has a five year $31.3 million dollar Federal grant for the Gear-Up program to provide or guarantee low-income students financial assistance to attend an institution of higher education.

During fiscal year 2001, the University passed through $2,745,953 of funds received to six subgrantees. The subgrantees were paid on a reimbursement basis from quarterly progress and expenditure reports received from them and reviewed by the University. The grant agreement required the subgrantee to provide the University with a current certified audit report no later than six months after the subgrantee’s fiscal year (by December 31, 2001).

Although the University had received all six audit reports for the fiscal year 2001 subgrants, there were no procedures in place to follow-up on the reports. Federal regulations require pass through entities to properly monitor subgrantees to ensure that subrecipients have complied with audit requirements. (Finding 1, pages 16-17)

We recommended the University develop procedures to properly monitor and administer subgrants.

University officials agreed with our recommendation and stated they have implemented a procedure to review the reports and follow up if any discrepancies are discovered.

OTHER FINDING

The remaining finding and recommendation is less significant and is reportedly being given attention by University management. We will review progress toward implementation of our recommendations in our next audit.

University responses were provided by Mark Wilcockson, Vice President for Finance and Administration.

AUDITORS' OPINION

Our auditors stated the University’s financial statements at June 30, 2002 and for the year then ended are fairly presented in all material respects.

 

 

___________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Nykiel, Carlin & Co.