REPORT DIGEST

NORTHERN ILLINOIS UNIVERSITY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2024

Release Date:  March 13, 2025

FINDINGS THIS AUDIT: 2

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

FINDINGS LAST AUDIT: 4

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, 400 West
Monroe, Suite 306, Springfield, IL
62704-9849
(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 Northern Illinois
University’s (University) Financial Audit as
of and for the year ended June 30, 2024.  A
digest covering the University’s Single
Audit will be separately released at a later
date. In addition, a separate digest
covering the University’s Compliance
Examination for the year ended June 30,
2024, will be released at a later date.

SYNOPSIS

• (24-1) The University did not properly
adjust its financial statements for certain
transactions.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FINANCIAL STATEMENT ERRORS

Northern Illinois University (the
University) did not properly adjust its
financial statements for certain
transactions.

The University prepares year-end entries to
adjust the financial statements for
transactions recorded during the year that
do not represent revenues or expenses for
the fiscal year. When testing the
University’s recorded revenues and expenses
we noted the following matters:

• The University’s fiscal year 2023 entry to
remove from revenue and expense cash basis
transactions related to direct loans was
miscalculated. The University properly
adjusted expenses but did not remove
$1,621,668 of revenue, which resulted in
fiscal year 2023 year-end accounts
receivable and revenue being overstated by
the same amount. The University did not
correct this error in fiscal year 2024 and
therefore fiscal year 2024 year-end accounts
receivable and net position are overstated
by $1,621,668.  The University elected not
to record an adjusting entry for this
matter.

• The University incorrectly recorded an
agreement with a third-party for student
scholarships. Based on the nature of the
arrangement, the agreement with the third-
party represents an agency transaction and
therefore should not result in revenue or
expense for the University. The University
improperly set up this agreement in the
general ledger, resulting in an
overstatement of accounts payable of
approximately $890,000, an understatement of
opening net position of approximately
$415,000, and an understatement of revenue
of approximately $475,000 in fiscal year
2024. The University elected not to record
an adjusting entry for this matter.

• The University incorrectly debited
unearned revenue for approximately $778,000
of Pell grants that relate to the summer
term. Pell revenue is recognized when
disbursed to students, and therefore should
not impact unearned revenue at year-end.
This resulted in an understatement of
unearned revenue of approximately $778,000,
understatement of opening net position of
approximately $681,000, and understatement
of expenses of approximately $97,000 in
fiscal year 2024. The University elected not
to record an adjusting entry for this
matter. (Finding 1, Pages 5-6)

We recommended the University review its
process to record year-end transactions to
ensure balances are properly recorded in the
University’s financial statements.

University officials accepted the finding.

OTHER FINDING

The remaining finding pertains to the
University incorrectly recording certain
agreements for Leases and Subscription –
Based Information Technology Arrangements.
We will review the University’s progress
towards the implementation of our
recommendations in our next financial audit.

AUDITOR’S OPINION

The auditors stated the financial statements
of the University as of and for the year
ended June 30, 2024 are fairly stated in all
material respects.

This financial audit was conducted by RSM US
LLP.

COURTNEY DZIERWA
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