REPORT DIGEST
SOUTHERN ILLINOIS UNIVERSITY
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION
(In accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended: June 30, 2011
Release Date: April 17, 2012
Summary of Findings:
Total this audit: 6
Total last audit: 6
Repeated from last audit: 2
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, Iles Park Plaza, 740 E. Ash Street, Springfield, IL 62703
(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
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SYNOPSIS
• The University’s East St. Louis campus failed to produce evidence that an eligibility determination was performed on 3 of the 60 students of the Head Start program selected for testing.
• The University’s East St. Louis campus did not perform a formalized review of budget to actual reports for their Head Start program during fiscal year 2011.
• The University’s East St. Louis campus failed to meet the Head Start program’s required 100% funded enrollment status.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
HEAD START ELIGIBILITY
During our eligibility testing of the Head Start program the East St. Louis campus failed to produce evidence that an eligibility determination was performed on 3 of 60 students selected for testing.
Of a sample of 60 students selected for compliance testing with eligibility requirements, the University was unable to provide student files for 3 (5.0%) students. The Head Start program student files contain the eligibility determination worksheet, the students’ program application form, and documented evidence of a formalized review of these documents by a Head Start administrator at the University. The 3 student record files were unable to be located by Head Start administrators. The University stated the records were most likely shredded accidently. (Finding 1, page 11)
We recommended the Edwardsville campus reevaluate its policies and procedures surrounding records management to ensure supporting documentation is properly maintained until electronically archived.
University officials accepted the finding.
HEAD START CASH MANAGEMENT CONTROLS
The East St. Louis campus did not perform a formalized review of budget to actual reports for their Head Start program during fiscal year 2011.
The University had informal policies and procedures in place to review monthly budget to actual reports for the Head Start program. The University used the monthly budget to actual reports as a control to monitor revenues and expenditures related to the Head Start program during the grant period. The reviews were not formally documented, and as such, no audit evidence exists to prove that the reviews occurred. (Finding 2, page 12)
We recommended the Edwardsville campus create formalized policies and procedures related to internal control documentation and retention for the Head Start program.
University officials accepted the finding.
FAILURE TO MEET HEAD START EARMARKING REQUIREMENT
The East St. Louis campus failed to meet the Head Start program’s required 100% funded enrollment status.
The East St. Louis campus has a funded enrollment requirement of 1,569 individuals. Only 1,561 are enrolled leaving the program 8 individuals (1%) short of meeting the earmarking requirement. (Finding 4, page 14)
We recommended that a documented supervisory review of projected enrollment levels occurs before the grant agreements are signed. The University should also formally monitor the enrollment status quarterly throughout the grant period.
University officials accepted the finding.
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 audit.
AUDITORS’ OPINION
Our auditors stated the financial statements of the University as of June 30, 2011 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
Crowe Horwath LLP were our special assistant auditors for this audit.