REPORT DIGEST

NORTHERN ILLINOIS UNIVERSITY

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2025

Release Date:  June 9, 2026

FINDINGS THIS AUDIT: 17

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  1 -- 4 -- 5
Category 2:  5 -- 7 -- 12
Category 3:  0 -- 0 -- 0
TOTAL:  6 -- 11 -- 17

FINDINGS LAST AUDIT: 15

State of Illinois, Office of the Auditor
General
CHRISTOPHER B. MEISTER, 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 our Compliance
Examination of Northern Illinois
University (University) for the year ended
June 30, 2025.  A separate Financial Audit
and a separate Single Audit as of and for
the year ended June 30, 2025, were both
previously released. In total, this report
contains 17 findings, 5 of which were
reported in the Financial Audit and Single
Audit.

SYNOPSIS

• (25-06) The University did not ensure
that interagency agreements were executed
in a timely manner.
• (25-09) The University has not
established adequate controls over its
Commercial Card Program.
• (25-14) The University did not follow
its procurement procedures for general
vouchers.
• (25-15) The University was not in
compliance with the Public Higher
Education Act.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE INTERNAL CONTROLS OVER
INTERAGENCY AGREEMENTS

The University did not ensure that
interagency agreements were signed by the
appropriate parties and agreed to in a
timely manner.

During our testing of 11 interagency
agreements, we noted five (45%) were
signed by the appropriate parties between
10 to 148 days after the agreement start
date.  (Finding 6, page 19).

We recommended the University implement
procedures to ensure agreements are
executed by the appropriate parties in a
timely manner prior to the agreement start
date.

University officials accepted the
recommendation.

INADEQUATE CONTROLS OVER PROCUREMENT CARD
USE

The University has not established
adequate controls over its Commercial Card
Program (P-Cards) to ensure compliance
with applicable requirements.

The University operates a P-card system
that allows individuals throughout the
University to make small purchases
(defined as less than $5,000) on a credit
card, which is directly paid by the
University monthly.  There were 455
cardholders with transactions during the
period of examination who incurred a total
of $10,239,459.

During our review of a sample of 60 P-card
transactions, totaling $106,669, made by
60 employees, we noted the following:

• Ten transactions (17%), totaling $9,060,
had no record of being approved, and there
was no
proper segregation of duties over these
transactions.

• Thirteen transactions (22%), totaling
$24,483, were not approved timely.  The
approvals ranged from one to 24 days late.

• Three transactions (5%), totaling
$1,775, had no supporting documentation
available from the purchaser. As a result,
we were unable to determine if the expense
transactions were proper or properly
recorded.

• One employee (2%) did not complete the
annual required refresher training on P-
card procedures.

• One transaction (2%) included sales tax
of $38, although the University is exempt
from the sales tax.  (Finding 9, Pages
22-23) This finding has been reported
since 2021.

We recommended the University enhance its
controls over the processing of P-Card
transactions to ensure employees comply
with policies and procedures.

University officials accepted the
recommendation.

INADEQUATE CONTROLS OVER VOUCHER
PROCESSING

The University did not follow its
procurement procedures for general
vouchers.

During our testing of 33 general vouchers
that required purchase orders (PO), we
noted eight vouchers (24%), totaling
$45,504, had delivery/service dates for
goods or services that were before the PO
was signed by the University Procurement
Services & Contract Management (PSCM).
These POs were approved between 1 and 92
days after the service start date.
(Finding 14, page 29)

We recommended the University enhance its
controls over the procurement process to
ensure goods are ordered and services
begin only after there is a PO (and
contract if applicable) signed by PSCM.

University officials accepted the
recommendation.

NONCOMPLIANCE WITH THE PUBLIC HIGHER
EDUCATION ACT

The University was not in compliance with
the Public Higher Education Act (Act).

During testing, we noted that although the
University made a wellness kiosk available
to the students on campus, it was not
accessible on weekends and after class
hours as required. In addition, the kiosk
did not display a statement advising the
consumer to check the expiration date of
the product before using its products
during Fiscal Year 2025, as required by
the Act.  (Finding 15, page 30)

We recommended the University ensure the
wellness kiosk is available on campus
during the hours required by the Act and
that it is operated in compliance with all
applicable statutory requirements.

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 OPINIONS

The auditors stated the financial
statements of the University as of and for
the year ended June 30, 2025 are fairly
stated in all material respects.

The auditors also 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, 2025.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the University
for the year ended June 30, 2025, as
required by the Illinois State Auditing
Act.  The accountants qualified their
report on State compliance for Findings
2025-001, 2025-002, 2025-004, 2025-006,
and 2025-007.  Except for the
noncompliance described in this 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 RSM US LLP.

COURTNEY DZIERWA
Deputy Auditor General

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

CHRISTOPHER B. MEISTER
Auditor General

CBM:JGR