REPORT DIGEST

REPORT
DIGEST

NORTHERN ILLINOIS UNIVERSITY

FINANCIAL AND COMPLIANCE AUDIT

(In accordance with the Federal Single Audit Act and OMB Circular A-133)

For the Year Ended:
June 30, 1998

Summary of Findings:

Total this audit	2
Total last audit	3
Repeated from last audit	1

Release Date:
May 20,1999

State of Illinois
Office of the Auditor General
WILLIAM G. HOLLAND
AUDITOR GENERAL

To obtain a copy of the Report contact:
Office of the Auditor General
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217)782-6046 or TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

SYNOPSIS

The University did not reconcile certain amounts on the general ledger to supporting detail records prior to filing its annual financial information with the State Comptroller.
The University did not file a report with the Office of the Secretary of State on the total number of payroll warrants paid from its own treasury as required by the State Employment Records Act.

{Expenditures and Activity Measures are summarized on the next page.}

NORTHERN ILLINOIS UNIVERSITY
FINANCIAL AND COMPLIANCE AUDIT
For The Year Ended June 30, 1998 (in Thousands)

FINANCIAL OPERATIONS (CURRENT FUNDS)	FY 1998	FY 1997
REVENUES Appropriations Student tuition and fees Grants, contracts, and gifts Sales and services of educational departments Auxiliary enterprises Other TOTAL EXPENDITURES, MANDATORY TRANSFERS, AND OTHER Instruction Research Public service Academic support Student services Institutional support Operation of plant Staff benefits Scholarships and fellowships Auxiliary enterprises Other transfers and additions Total	$ 123,237 64,969 24,941 13,963 55,106 4,845 $ 287,061 $ 89,763 10,537 9,534 22,129 10,143 17,975 15,623 28,005 19,454 56,695 1,535 $ 281,393	$ 118,286 60,441 21,680 13,394 51,210 4,085 $ 269,096 $ 88,432 9,520 8,792 21,065 9,794 17,124 16,640 26,819 18,381 52,175 1,203 $ 269,945
ACCOUNT BALANCES (ALL FUNDS)	FY 1998	FY 1997
Cash and Cash Equivalents Investments and Marketable Securities Investment in Plant Accrued compensated absences Revenue bonds payable Fund balances (deficit) Unrestricted Restricted U.S. government advances refundable Net investment in Plant	$15,092 $46,128 $468,261 $25,713 $84,328 $(8,678) $1,770 $5,717 $369,989	$14,407 $47,055 $444,720 $26,087 $84,976 $(10,698) $1,398 $5,577 $343,664
SUPPLEMENTARY INFORMATION (In whole numbers)	FY 1998	FY 1997
Employment Statistics Appropriated funds: Faculty/administrative Civil service Student employees Miscellaneous contracts Nonappropriated funds: Faculty/administrative Civil services Student employees Total Employees Selected Activity Measures Fall semester enrollment - Undergraduate Fall semester enrollment - Graduate Total full-time equivalent semester cost per student	1,561 1,004 135 29 358 583 426 4,096 14,323 2,863 $3,516	1,547 1,035 156 43 356 553 462 4,152 13,808 2,856 $3,582
UNIVERSITY PRESIDENT
During Audit Period: Dr. John E. LaTourette Currently: Dr. John E. LaTourette

Subsidiary accounting records were not reconciled to general ledger

Report of payroll transactions not submitted

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NEED TO ENSURE SUBSIDIARY RECORDS SUPPORT GENERAL LEDGER BALANCES

The University did not reconcile amounts recorded as "due from award sponsors" on the general ledger to supporting detail prior to filing its annual financial information with the State Comptroller. Supporting information had not been compiled, which would have facilitated the reconciliation process. No material adjustments resulted from the reconciliation process. (Finding 98-1, page 17)

We recommended the University reconcile these accounts to the underlying detail once each semester and at the year-end prior to the submission of the GAAP package, in order to ensure that there is proper support for the financial statement balances.

University officials concurred with the recommendation and stated they have reconfigured the account structure to facilitate the process.

FAILURE TO FILE REPORT WITH OFFICE OF THE SECRETARY OF STATE

The University did not file a report containing the total number of payroll warrants paid from funds retained in its own treasury with the Office of the Secretary of State.

The State Employment Records Act (15 ILCS 405/13.1) requires that each institution of higher learning forward to the Office of the Secretary of State a report containing the total number of payroll warrants drawn by the Board of Trustees to be paid from funds retained in its own treasury. (Finding 98-2, page 18)

We recommended the University comply with the State Employment Records Act by filing the required information regarding payroll warrants paid from funds retained in its own treasury to the Office of the Secretary of State on a timely basis each year.

University officials concurred with our recommendation and stated in order to comply with the intent of the requirement, the University filed a report of the unduplicated headcount of all individuals paid by warrants drawn on funds in the University’s treasury. The report was forwarded as a supplement to the Agency Workforce Report that is filed annually with the Secretary of State’s office.

Ms. Kathe Shinham, Associate Vice President, provided the University’s responses.

AUDITORS’ OPINION

Our auditors stated the June 30, 1998 financial statements of Northern Illinois University are fairly presented except for the effects of such adjustments, if any, as might have been determined to be necessary had they been able to examine evidence regarding Year 2000 disclosures.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:JTD:pp

SPECIAL ASSISTANT AUDITORS

PricewaterhouseCoopers, L.L.P. were our special assistant auditors for this audit.