Southern Illinois University 2000 Audit

REPORT DIGEST

SOUTHERN ILLINOIS UNIVERSITY

FINANCIAL AND COMPLIANCE AUDIT

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

For the Year Ended:
June 30, 2000

Summary of Findings:

Total this audit 3
Total last audit 9
Repeated from last audit 3

Release Date:
April 26, 2001

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 identify five items totaling $1,745,000 as accounts payable. The expenditures were for construction projects at the Edwardsville campus.

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

SOUTHERN ILLINOIS UNIVERSITY FINANCIAL AND COMPLIANCE AUDIT
FOR THE YEAR ENDED JUNE 30, 2000

FINANCIAL OPERATIONS (CURRENT FUNDS)		FY 2000	FY 1999
REVENUES State Appropriations Student Tuition and Fees Educational Activities Enterprise Sales Federal Grants Grants and Contracts Other Sources Total EXPENDITURES AND MANDATORY TRANSFERS Instruction Research Public Service Academic Support Institutional Support Operation of Plant Other Services Scholarships and Fellowships Other Transfers Total		$218,746,596 100,250,361 40,250,857 68,056,600 44,820,797 47,398,990 62,287,783 $581,811,984 $197,122,602 34,574,508 46,552,008 79,462,987 54,263,640 49,312,583 37,148,744 30,555,008 68,904,099 $597,896,179	$209,152,818 97,358,861 42,848,366 58,257,429 43,213,848 41,626,119 56,010,723 $548,468,164 $186,734,025 31,921,356 46,427,040 71,208,201 54,764,093 44,249,013 40,202,715 30,271,028 58,745,739 $564,523,210
SELECTED ACCOUNT BALANCES (ALL FUNDS)		AT JUNE 30, 2000	AT JUNE 30, 1999
Cash and Investments Campus Plant Facilities Accrued Compensated Absences Revenue Bonds Payable		$158,604,738 $801,799,139 $47,923,605 $130,492,365	$138,327,401 $778,474,743 $48,066,116 $125,078,075
SUPPLEMENTARY INFORMATION (Unaudited)	FY 2000		FY 1999
Employees (Fall Term) Carbondale Edwardsville Total Employees Students (Full-time Equivalent) (Fall Term) Carbondale Edwardsville Total Students Instruction Costs Per Full-time Equivalent Student Classroom Utilization (Daytime Maximum) Carbondale Edwardsville	6,575 2,581 9,156 18,697 9,123 27,820 $7,086 77% 89%		6,680 2,507 9,187 18,688 8,831 27,519 $6,785 77% 89%
UNIVERSITY PRESIDENT
During Audit Period: Dr. Ted Sanders (through January 31, 2000), Frank E. Horton, Interim President (effective February 1 until September 30, 2000) Currently: Dr. James E. Walker (effective October 1, 2000)

All year-end obligations not identified

INTRODUCTION

Our 2000 audit of Southern Illinois University is presented in three volumes: Compliance Audit; Financial Audit; and Supplementary Financial Information. The findings and recommendations are contained in the Compliance Audit volume.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NEED TO STRENGTHEN FINANCIAL REPORTING

The University failed to identify all accounts payable at June 30, 2000 in accordance with generally accepted accounting principles. During our search for unrecorded accounts payable, we found five items totaling $1,745,000 that were for services performed or items purchased before June 30 that were not recorded as accounts payable at year-end. The expenditures were for construction projects at the Edwardsville campus.

The University's Administrative Accounting Department set a cut-off date of August 15, 2000, for the recording of accounts payable. University personnel state that the procedures for identifying accounts payable in the new Accounting Information System were not yet fully developed. The omissions found were material in amount and the financial statements were adjusted by the Administrative Accounting Department. (Finding 3, page 24)

We recommended the University identify all material amounts due at year-end in order to accurately state the University's liabilities and financial position.

University officials responded that they have accepted our recommendation.

OTHER FINDINGS

The remaining findings are less significant and are being given attention by the University. We will review the University’s progress towards the implementation of our recommendations in our next compliance audit.

Mr. Ron Cremeens, Executive Director of Audits, provided the University’s responses.

AUDITORS’ OPINION

Our auditors stated the financial statements of the University as of June 30, 2000 and for the year then ended are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Kerber, Eck & Braeckel LLP were our special assistant auditors for this audit.