REPORT DIGEST

NORTHERN ILLINOIS UNIVERSITY

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  July 6, 2023

FINDINGS THIS AUDIT: 0

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

FINDINGS LAST AUDIT: 0

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 our Compliance
Examination of Northern Illinois
University for the year ended June 30,
2022.  A separate Financial Audit as of
and for the year ended June 30, 2022,
was previously released on February 16,
2023. Additionally, a Single Audit as
of and for the year ended June 30, 2022
was released on March 30, 2023. In
total, this report contains 16
findings, two of which were reported in
the Financial Audit.

SYNOPSIS

• (22-3) The University has not
established adequate internal controls
over contracts to ensure they are
approved prior to performance and
comply with all applicable State
requirements.
• (22-6) The University has not
established adequate controls over the
completion of I-9 forms for employees
hired by the University.
• (22-10) The University did not
conduct trainings for all its employees
as required by the State Officials and
Employees Ethics Act.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE INTERNAL CONTROLS OVER
CONTRACTS

The University has not established
adequate internal controls over
contracts to ensure they are approved
prior to performance and comply with
all applicable State requirements.

During our review of 40 contracts for
the year ended June 30, 2022, we noted
the following:

• Seven contracts (18%) totaling
$165,359 were not approved prior to
goods or services being provided. The
contracts were executed between 8 to
105 days after the commencement of the
services or the receipt of the goods.

• Five contract (13%) totaling $436,540
were filed with the Office of the
Comptroller late.  The contracts were
filed between 264 and 444 days late.

• One contract (3%) totaling $25,000
did not obtain the vendor certification
agreement prior to the approval of the
contract. The certification agreement
was signed 72 days late.

During our review of 3 lease agreements
in which the University was the lessor
for the year ended June 30, 2022 we
noted one lease (33%) totaling $18,318
was not signed prior to the
commencement of the lease. The lease
was executed 3 days after the
commencement of the lease. (Finding 3,
pages 12-13)   This finding has been
reported since 2012.

We recommended the University establish
and maintain internal control procedure
over contracts and lease agreements to
ensure contracts are complete and
properly approved prior to performance,
and the University adhere to State laws
and regulations.

University officials accepted the
recommendation.

INADEQUATE CONTROLS OVER I-9 FORMS

The University has not established
adequate controls over the appropriate
completion of I-9 forms for employees
hired by the University.

During our review of a sample of forty
(40) employee hires, we noted the
following:

• Four employees (10%) did not complete
section 1 of the I-9 form on or before
their respective hire date.

• One employee (3%) did not complete on
Section 2 of the I-9 form properly as
their first day of employment was not
filled out.

• Five employees (13%) did not complete
Section 2 of the I-9 form within three
days of their first day of employment.
(Finding 6, page 16)

We recommended the University enhance
their controls over the process for
preparing and reviewing the I-9 Forms
to ensure compliance with U.S.
Citizenship and Immigration Services
requirements.

University officials accepted the
recommendation.

LACK OF ANNUAL EMPLOYEE TRAININGS

The University did not conduct
trainings for all its employees as
required by the State Officials and
Employees Ethics Act.

During our testing of 40 employees, we
noted the following:

• Of the 10 new hires tested, one
employee (10%) did not complete their
ethics training within 30 days of being
hired. The number of days late was 54
days.

• Of the 10 new hires tested, seven
employees (70%) did not complete their
sexual harassment training within 30
days of being hired. Four employees
(40%) did not have any sexual
harassment training during fiscal year
2022, and for three employees (30%),
the number of days late ranged from 46
to 87 days late.

• Of the 30 active employees tested,
one employee (3%) did not complete an
annual ethics training during
fiscal year 2022.

• Of the 30 active employees tested,
one employee (3%) did not complete an
annual sexual harassment training
during fiscal year 2022.  (Finding 10,
page 20)  This finding has been
reported since 2020.

We recommended the University ensure
required employee trainings are
conducted annually in accordance with
the State Officials and Employees
Ethics Act.

University officials accepted the
recommendation.

OTHER FINDINGS

The remaining findings are reportedly
being given attention by the
University.  We will review the
University’s progress towards the
implementation of our recommendations
in our next State Compliance
Examination.

AUDITOR’S OPINION

The financial audit report was
previously released. 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.

The single audit report was previously
released.  The auditors conducted a
single audit of the University as
required by the Uniform Guidance. The
auditors stated the University
complied, in all material respects,
with the types of compliance
requirements that could have a direct
and material effect on the University’s
major federal programs for the year
ended June 30, 2022.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the University for the
year ended June 30, 2022, as required
by the Illinois State Auditing Act.
The accountants qualified their report
on State Compliance for Finding
2022-001.  Except for the noncompliance
described in that finding, the
accountants stated the University
complied, in all material respects,
with the requirements described in the
report.

This State Compliance Examination was
conducted by CliftonLarsonAllen 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

FJM:TLK