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REPORT DIGEST
NORTHERN COMPLIANCE EXAMINATION
(In accordance with the Federal Single
Audit Act and OMB Circular A-133) For the Year Ended: June 30, 2008 Summary of
Findings: Total this year 4
Total last year 6 Repeated from last year 3
Rel May 28, 2009
State of
Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the
Report contact: Office of the Auditor
General
(217) 782-6046 or TTY (888) 261-2887
This Report Digest and Full Report are also available on the worldwide web at |
INTRODUCTION This report addresses the State Compliance Examination and Federal Single Audit of Northern Illinois University for the year ended June 30, 2008 conducted in accordance with OMB Circular A-133. The Financial Audit and Report Required under Government Auditing Standards for the year ended June 30, 2008 were previously issued. SYNOPSIS
·
The
University did not communicate student status changes to the National Student
Clearinghouse within 60 days of the effective date, and refunds were not
returned to the required programs within 45 days of student withdrawals.
·
The
University did not require all employees to submit time sheets as required by
the State Officials and Employee Ethics Act.
{Expenditures and Activity Measures are summarized on the next page.} |
NORTHERN
COMPLIANCE
EXAMINATION
(In
Accordance with the Single Audit Act and OMB Circular A-133)
For The Year Ended
June 30, 2008
COMPARATIVE
SCHEDULE OF INCOME FUND REVENUES AND EXPENSES
|
FY 2008
|
FY 2007
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INCOME FUND REVENUES
Tuition, net of
waivers...........................................................
Material fees........................................................................
Extension...............................................................................
Interest income.....................................................................
Other...................................................................................
Total Income Fund Revenues.........................................
INCOME FUND EXPENSES
Personal
services..................................................................
FICA/Medicare....................................................................
Contractual
services..............................................................
Travel..................................................................................
Commodities.........................................................................
Award/grants
and matching funds..........................................
Equipment and
library books..................................................
Telecommunications...............................................................
Automotive...........................................................................
Capital repairs
and permanent improvements..........................
CMS health
insurance...........................................................
Unemployment
compensation benefits....................................
Total Income Fund Expenses.......................................... |
$103,634,611
5,924,493
5,738,542
1,736,295
1,058,596 $118,092,537
$72,589,030
1,926,634
27,227,566
1,108,386
2,259,051
2,385,254
849,938
1,290,151
217,063
6,156,855
1,204,000
33,316 $117,247,244 |
$97,087,230
5,496,245
5,346,207
2,298,091 1,028,749 $111,256,522
$65,003,835
1,666,255
22,622,266
1,102,634
1,801,989
1,463,457
126,643
1,303,225
177,651
4,867,241 1,204,000
39,449 $101,378,645 |
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SUPPLEMENTARY INFORMATION (Unaudited) |
FY 2008 |
FY 2007 |
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Employment Statistics
Appropriated and Nonappropriated funds:
Faculty/administrative............................................................
Civil service..........................................................................
Student
employees................................................................
Miscellaneous
contracts.........................................................
Total Employees..............................................................
Selected Activity Measures
Fall semester enrollment – Undergraduate................................
Fall semester enrollment – Graduate.........................................
Fall semester enrollment – Professional.................................... |
2,209
1,468
544
163 4,384
17,042
2,939
399 |
2,210
1,462
521
147 4,340
17,107
3,043
385 |
UNIVERSITY PRESIDENT
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|
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During Audit Period: Dr. John G. Peters
Currently: Dr. John G. Peters |
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Student status not
communicated within 60 days
Refunds not
returned within 45 days
University
indicated that forms were backdated
University agrees
with auditors
The University did not require all
employees to submit timesheets
Pilot program
initiated in January 2008
University agrees
with auditors |
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS UNTIMELY COMMUNICATIONS OF STUDENT STATUS
CHANGES AND RETURN OF STUDENT FINANCIAL AID REFUNDS The University did not communicate
student status changes to the National Student Clearinghouse within 60 days
of the effective date, and refunds were not returned to the required programs
within 45 days of student withdrawals. During our testing of 25 students who
withdrew during the fall 2007 and spring 2008, we noted four students (16%)
whose status change was not communicated to the National Student
Clearinghouse within 60 days of the effective date of the withdrawal and one
withdrawal that had not been communicated as of December 1, 2008. The late notifications ranged from 2 to 30
days late. While testing the same 25
students we also noted refunds totaling $3,380 for two (8%) of the students
were not returned to the appropriate federal source within 45 days. The refunds ranged from 25 to 57 days late. University officials stated that they
believe they did communicate student status changes timely and made refunds
timely. The Records and Registration
Office dates the form when it’s received, which is the date of
acceptance. The reason the forms
appear to be late is because the colleges backdate the forms to accommodate
the student. Backdating the
withdrawal forms means that the colleges are documenting a date on the forms
prior to the student withdrawal date as defined by the Federal Student Aid
Handbook. After the colleges approve
the withdrawal form they submit it to the Records and Registration Office. (Finding 2, pages 22-23) We recommended the University discontinue
the practice of backdating student withdrawal forms and date the forms in
accordance with the federal rules.
Further, the University should identify and communicate changes in
students’ status and return refunds to the appropriate federal programs
within the required federal timeframes. University officials accepted the
auditor’s recommendation and indicated that they had created a working group
to review the entire process. NEED TO COMPLY WITH STATE OFFICIALS AND EMPLOYEES
ETHICS ACT REGARDING TIME REPORTING The
University did not require all employees to submit time sheets as required by
the State Officials and Employees Ethics Act. We
noted certain categories of the University’s employees did not submit time
sheets in compliance with the Act. We
tested a sample of 25 University employees for compliance with the State
Officials and Employee Ethics Act. Except
for hourly employees who do use timecards, employees’ time is tracked using
Northern Illinois University’s payroll system, which is a “negative”
timekeeping system whereby the employee is assumed to be working unless noted
otherwise. No time sheets documenting
the time spent each day on official State business to the nearest quarter
hour are maintained for the University salaried employees. In
an effort to work towards compliance, the University initiated a pilot
program in January 2008. Full
implementation of the program had not occurred by the time we concluded our
field work. University
management stated that the University planned on implementing new procedures
during the fiscal year, and did in fact implement these new procedures, to
bring reporting into compliance for select areas of the University. The University expects to be in compliance
by fiscal year 2009. (Finding 4, page
25) This finding was first reported in 2005. University
officials accepted our recommendation to continue their efforts to develop
and implement a program to require all employees to submit time sheets in
compliance with the Act. (For the
previous University response, see Digest Footnote #1.)
OTHER FINDINGS The
remaining findings are reportedly being given attention by the
University. We will review the
University’s progress toward the implementation of our recommendations in our
next financial audit, State compliance examination and federal Single audit. AUDITORS' OPINION We conducted a compliance examination of the University for the year ended June 30, 2008 as required by the Illinois State Auditing Act, the Single Audit Act and OMB Circular A-133. A financial audit and report required under Government Auditing Standards covering the year ending June 30, 2008 were issued separately. ___________________________________ WILLIAM G. HOLLAND, Auditor General WGH:JAF:pp SPECIAL ASSISTANT AUDITORS Our special assistant auditors for this engagement were Clifton Gunderson LLP. DIGEST FOOTNOTES #1:
TIME REPORTING – Previous University Response As stated in the
pervious audit responses, NIU promptly developed a compliance procedure upon
implementation of the State Officials and Employee Ethics Act (SOEEA). This procedure utilized the Salaried
Employee Benefit Usage Form as the verification and documentation format for
salaried employee work time reporting.
The hourly time sheet record is utilized for hourly employee work time
reporting confirmations. Consistent
with the auditor’s recommendations that a “positive” procedure for work time
reporting be implemented, NIU has initiated preparations for a phased work
time reporting procedure in addition to the already existing benefit usage
reporting process. This new proposed
process will utilize the monthly benefit usage reporting cycle to implement a
supplemental work time reporting procedure.
Under this format, the Salaried
Employee Benefit Usage Form will incorporate a supplemental entry space for
the total number of hours worked during the reporting period, pursuant to the
SOEEA. Because the SOEEA requires State employees to periodically submit time
sheets documenting the time spent each day on official State business to the
nearest quarter hour (5 ILCS 430/5-5), the work time reported in this entry
space will be expected to include all time utilized for University business
on a twenty-four hour, seven-day-per-week, basis including weekends. This
entry will be considered separate and distinct from compensation-related
benefit usage entries on the same form. Accordingly, this number will not be
expected to reconcile with the vacation and sick leave benefit time reported,
as the reporting requirements differ.
Under this procedure, employees will be required to keep their own
work time logs, using such tools as the GroupWise calendar, of time spent on
university business indicating the number of hours dedicated to state service
to the nearest 15-minute interval. The number of hours will then be indicated
on the Salaried Employee Benefit Usage Form and signed by the supervisor or
department head. During spring 2008,
the reporting format will be tested with select areas of the university
including Human Resource Services. As of FY09, the final reporting procedure
will be implemented for all salaried staff members in the non-academic
administrative areas. |