REPORT DIGEST

NORTHERN ILLINOIS UNIVERSITY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2025

Release Date:  March 5, 2026

FINDINGS THIS AUDIT: 2

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

FINDINGS LAST AUDIT: 2

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, 2025.
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,
2025, will be released at a later date.

SYNOPSIS

• (25-01) The University did not have
adequate internal control over reporting
its census data.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE INTERNAL CONTROLS OVER CENSUS
DATA

Northern Illinois University (University)
did not have adequate internal control over
reporting its census data to provide
assurance that the census data submitted to
the State Universities Retirement System
(System) and State Employees’ Group
Insurance Program was complete and
accurate.

During the performance of the census
examination, the auditors noted the
following:
• While the University had performed an
initial complete reconciliation of its
census data recorded
by the System to its internal records, the
University had not fully developed a
process to annually obtain from the System
the incremental changes recorded by the
System in the census data records and
reconcile these changes back to the
University’s internal supporting records.
• During cut-off testing of data
transmitted by the University to the
System, the auditors identified the
following events were reported to the
System after the close of the fiscal year
in which the event occurred, resulting in
inaccurate member status (active or
inactive) as of fiscal year-end.
-- Two new employee hires
-- One employee going on a leave of absence
-- Forty-nine employee terminations

The result of the errors above led to
contributions due to the plan being
understated and inaccurate census data
being utilized by the System and the State
in the performance of the annual pension
and OPEB actuarial valuation processes. The
independent actuaries utilized by the
System and the State of Illinois for the
pension and OPEB plans deemed the errors
immaterial to the plan level valuations as
a whole. (Finding 1, Pages 6-7)

We recommended the University continue to
work with the System to establish the
process of annually obtaining from the
System the incremental changes recorded in
the census data records and reconcile these
changes back to the University’s internal
supporting records. If differences are
noted between the University’s data and the
System’s data, these differences should be
communicated timely and rectified to ensure
the actuarial valuations are using accurate
data. Further, we recommended the
University strengthen controls to ensure
all events occurring within the census data
accumulation year are reported timely to
the System so these events can be
incorporated into the census data utilized
in the annual actuarial valuation process.

University officials accepted the finding.
University officials stated they will work
toward timely notification and have
completed reconciliations of incremental
changes.

OTHER FINDING

The remaining finding pertains to the
University’s internal controls over user
access. 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, 2025 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:JGR