Northern Illinois University

REPORT DIGEST

NORTHERN ILLINOIS UNIVERSITY

FINANCIAL AND COMPLIANCE AUDIT

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

For the Year Ended:
June 30, 2000

Summary of Findings:

Total this audit 4
Total last audit 5
Repeated from last audit 1

Release Date:
March 20, 2001

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 could not account for certain equipment and did not maintain an accurate master inventory listing resulting in missing items.

The University did not have adequate monitoring and documentation of personal phone calls.

{Expenditures and Activity Measures are summarized on the next page.}

NORTHERN ILLINOIS UNIVERSITY

FINANCIAL AND COMPLIANCE AUDIT

For The Year Ended June 30, 2000 (in Thousands)

FINANCIAL OPERATIONS (CURRENT FUNDS)	FY 2000	FY 1999
REVENUES Appropriations Student tuition and fees Grants, contracts, and gifts Sales and services of educational departments Auxiliary enterprises Other TOTAL EXPENDITURES, MANDATORY TRANSFERS, AND OTHER Instruction Research Public service Academic support Student services Operation of plant Institutional support Staff benefits Scholarships and fellowships Auxiliary enterprises Other transfers and additions Total	$137,952 70,882 30,264 11,917 61,923 5,922 $318,860 $101,570 10,982 12,829 24,973 10,684 15,861 20,947 33,845 21,749 63,826 268 $317,534	$129,510 68,593 27,151 6,967 56,645 11,234 $300,100 $ 94,855 10,707 10,586 23,333 10,096 16,250 18,937 30,072 22,267 57,740 (3,861) $290,982
ACCOUNT BALANCES (ALL FUNDS)	FY 2000	FY 1999
Cash and cash equivalents Investments and marketable securities Investment in plant Accrued compensated absences Revenue bonds payable Leases payable Fund balances (deficit): Unrestricted Restricted U.S. government advances refundable Net investment in plant	$12,031 $65,751 $508,087 $25,187 $118,192 $21,162 $(10,563) $1,886 $5,870 $357,182	$32,569 $41,984 $470,327 $25,513 $83,003 $21,132 $(6,467) $1,860 $5,873 $354,312
SUPPLEMENTARY INFORMATION (In whole numbers)	FY 2000	FY 1999
Employment Statistics Appropriated funds: Faculty/administrative Civil service Student employees Miscellaneous contracts Nonappropriated funds: Faculty/administrative Civil services Student employees Total Employees Selected Activity Measures Fall semester enrollment - Undergraduate Fall semester enrollment - Graduate Total full-time equivalent semester cost per student	1,595 990 147 30 369 601 430 4,162 15,261 2,761 $3,831	1,566 969 146 49 380 650 474 4,234 14,818 2,776 $3,689
UNIVERSITY PRESIDENT
During Audit Period: Dr. John E. LaTourette (July 1999 to May 2000), Dr. John G. Peters (June 2000) Currently: Dr. John G. Peters

Property listings were not timely updated and/or maintained

Lack of monitoring personal use of University telephones

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

PROPERTY RECORDS NEED IMPROVED CONTROLS FOR ACCOUNTABILITY

Two computers and three printers totaling $25,714 assigned to one location could not be located. Also, thirteen of twenty-five items tested in three locations were found in a location different from the University's Property Inventory Listing indicating property transfers were not being reported timely to the Property Control Office. (Finding 1, pages 20-21)

We recommended the University's Property Control Office update its inventory listing to enhance control over its property and equipment. The University should conduct additional periodic physical inventories of locations to reinforce compliance to University policies and procedures on inventory control.

University officials concurred with the recommendation and stated that the Property Control Office has started conducting a physical inventory of all departments over a four-year cycle. Also, the University will update the master inventory file for all changes noted by the departments when they perform their annual inventory and other times throughout the year.

LACK OF CONTROLS IN MONITORING PHONE CALLS

The University's lack of controls in monitoring personal use of telephones by employees has resulted in improper use of State resources in violation of University procedures.

We noted in our testing of telecommunications charges, 12 of 56 telephone calls made were for a duration between 30 to 87 minutes where management either verified the phone call was for personal business or were unable to explain the purpose or nature of the call. (Finding 2, page 22)

We recommended the University implement policies and procedures to include adequate documentation for those calls of unusual and/or lengthy duration. Any personal and unauthorized calls should be billed to the employee.

University officials concurred with the recommendation and indicate they have emphasized the departmental responsibility to verify billings to include proper use of University phones and the accuracy of the charges. A monthly report which highlights calls exceeding a specified length is distributed for use by departmental managers to assist identifying inappropriate use of University phones.

OTHER FINDINGS

The remaining findings and recommendations were less significant and are being given attention by University management. We will review progress toward implementation of our recommendations during our next audit.

University responses were provided by Ms. Kathe Munz-Shinham, Associate Vice President, Division of Finance and Facilities.

AUDITORS’ OPINION

Our auditors stated the financial statements of Northern Illinois University as of June 30, 2000, and for the year then ended, are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:SES:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were the Bronner Group.