REPORT DIGEST SOUTHERN ILLINOIS UNIVERSITY FINANCIAL AUDIT FOR THE YEAR+ ENDED JUNE 30, 2024 Release Date: March 4, 2025 FINDINGS THIS AUDIT: 1 CATEGORY: NEW -- REPEAT – TOTAL Category 1: 0 -- 0 -- 0 Category 2: 1 -- 0 -- 1 Category 3: 0 -- 0 -- 0 TOTAL: 1 -- 0 -- 1 FINDINGS LAST AUDIT: 1 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 Southern Illinois University’s (University) Financial Audit as of and for the year ended June 30, 2024. Digests covering the University’s Single Audit and State Compliance Examination will be released at a later date. SYNOPSIS • (24-1) The University did not have adequate internal controls over cutoff of accounts payable and accrued liabilities to ensure amounts owed are recorded in the proper period. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE INTERNAL CONTROLS OVER CUTOFF OF ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The University did not have adequate internal controls over cutoff of accounts payable and accrued liabilities to ensure amounts owed are recorded in the proper period. The auditors noted the following: • The University recorded two invoices for $206,741 and $613,025, respectively, in accounts payable as of June 30, 2024. However, the services related to Fiscal Year 2025. • The University recorded a duplicate invoice for $161,675 in accounts payable as of June 30, 2024. • The University did not record an invoice for $48,163 in accounts payable as of June 30, 2024 although the goods were received in Fiscal Year 2024. • The University accrued and expensed, rather than capitalized, two fixed assets for $263,770 during Fiscal Year 2024 (Finding 1, pages 5-6). We recommended the University ensure performance of appropriate reviews of invoice details to ensure the service period is being utilized to determine the period in which accounts payable and accrued liabilities and the related expenses are recorded in the financial statements. We also recommended the University review the service date entered into the system to ensure amounts are accrued in the proper fiscal year. Additionally, we recommended the University input a control to timely review for payments on fixed assets to ensure expenses are being properly capitalized in the correct period. University officials agreed and stated the University will ensure that appropriate reviews of invoice details are performed so that accurate service dates are entered into the accounting system in order to properly record accrued expenses. Officials also stated the results of the audit were reviewed with accounts payable staff, and additional training has been provided to underscore the importance of the accuracy of the service dates to ensure expenditures are properly recorded in either the prior or current fiscal year. The University further responded that each year at fiscal year-end, the Accounts Payable supervisor will meet with staff to provide refresher training on this issue, and noted Accounts Payable staff have been encouraged to seek guidance and further review of any invoices in which the service dates are not clearly discernable. Officials also stated the University will implement controls regarding payments on fixed assets to ensure expense capitalization in the proper period, and noted that the results of this audit were shared with Property Control staff. AUDITOR’S OPINIONS The auditors stated the financial statements of the University as of and for the year ended June 30, 2024 are fairly stated in all material respects. This financial audit was conducted by Plante & Moran, PLLC. 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:lkw