| FINANCIAL
OPERATIONS |
FY 2002 |
FY 2001* |
REVENUES
State Appropriations
Student Tuition and Fees
Grants and Contracts (all)
Payments on Behalf of the University
All Other Sources
Total
EXPENDITURES
Instruction
Academic Support
Institutional Support
Other Services
Total |
$260,115,640
106,699,023
111,618,237
71,694,105
146,050,361
$696,177,366
$224,982,962
82,386,346
57,018,284
312,101,528
$676,489,120 |
$243,899,156
109,694,750
102,839,236
63,468,908
175,946,216
$695,848,266
$208,422,388
79,462,987
54,263,640
345,153,924
$687,302,939 |
| SELECTED
ACCOUNT BALANCES |
AT JUNE 30, 2002 |
AT JUNE 30, 2001* |
Cash and
Investments
Capital Assets, net
Revenue Bonds Payable
Total Net Assets
Fund Balances |
$164,974,648
$357,706,316
$145,411,183
$281,335,791
N/A |
$144,825,416
$840,384,943
$128,551,849
N/A
$818,549,377 |
| SUPPLEMENTARY
INFORMATION (Unaudited) |
FY 2002 |
FY 2001* |
Employees (Fall Term)
Carbondale
Edwardsville
Total Employees
Students (Full-time Equivalent) (Fall Term)
Carbondale
Edwardsville
Total Students
Cost Per Full-time Equivalent Student
Classroom Utilization (Daytime Maximum)
Carbondale
Edwardsville |
6,787
2,797
9,584
17,806
9,768
27,574
$24,122
73%
75% |
6,600
2,656
9,256
18,599
9,556
28,155
$22,773
76%
79% |
| * The FY 2001 figures have not
been restated to reflect the implementation of GASB statements #35, 37 and 38. |
| UNIVERSITY PRESIDENT |
During Audit Period: Dr. James E. Walker
Currently: Dr. James E. Walker |
|
Use of University funds by employee unsubstantiated
Inadequate controls over computer security were revealed
|
INTRODUCTION
Our 2002 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.
FINDING, CONCLUSION, AND RECOMMENDATION
UNAUTHORIZED AND PERSONAL USE OF UNIVERSITY FUNDS
A University employee opened a bank account in the name of the University that was
not authorized by the University’s Treasurer. The bank account remained open for
approximately eleven months before a bank employee made University personnel aware of it.
During that time, $48,781 was deposited into the account and $15,309 was withdrawn from
the account, prior to it being closed. Of the $15,309 withdrawn from the account, $7,509
was unsubstantiated.
Upon the University’s discovery of the unauthorized account, the account was
closed and the balance was transferred to a properly authorized bank account. The subject
employee made restitution and was terminated by the University.
The Bylaws and Policies of the Southern Illinois University Board of Trustees specify
that the University Treasurer is responsible for all banking activity, including opening
and maintaining bank accounts.
This situation occurred because the bank allowed the account to be opened without
authorization from the University Treasurer, contrary to previous written direction. The
employee was authorized to receive checks on behalf of the University. (Finding 1, page
19)
We recommended that the University address its policy regarding the opening of bank
accounts in its Fiscal Officers Training Courses. The University accepted our
recommendation.
COMPUTER SECURITY WEAKNESSES
The University did not have adequate security controls over its
computer operations. During our review, we noted the following weaknesses:
- Appropriate and consistent global security settings had not been established for
accessing the University's computer networks;
- Not all systems (including some critical systems) were adequately protected via the
University’s firewall.
- The computer rooms at both campuses were not always secured behind locked doors.
- At SIUE, password changes were not required for several systems including the Student
Information System (SIS) and the payroll system. These systems contain critical and
confidential information and should require a routine password change interval;
- At SIUC, inactive accounts were not automatically revoked, nor were accounts monitored.
The principles of good internal controls require reasonable
cost-effective procedures be implemented to ensure the integrity and security of
computerized information. (Finding 2, pages 20 – 22)
We recommended the University establish formal University-wide
Information Technology policies and procedures, and we recommended specific controls which
should be incorporated into these policies and procedures. The University agreed with our
recommendation, and agreed to establish a University Wide Computer Operations Committee to
review the recommendation for corrective action where needed.
Mr. Ron Cremeens, Internal Audit Director, provided the University's response.
OTHER FINDINGS
The remaining findings are less significant and are reportedly being given
attention by the Department. We will review progress toward implementing the
recommendations during the University’s next audit.
AUDITORS’ OPINION
Our auditors stated the financial statements of the University as of June 30,
2002 and for the year then ended are fairly presented in all material respects.
____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:KAL:pp
SPECIAL ASSISTANT AUDITORS
Kerber, Eck & Braeckel LLP were our special assistant auditors for this
audit.
|
