REPORT DIGEST

UNIVERSITY OF ILLINOIS

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2023

Release Date:  May 7, 2024

FINDINGS THIS AUDIT: 22

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 2 -- 2
Category 2:  8 -- 12 -- 20
Category 3:  0 -- 0 -- 0
TOTAL:  8 -- 14 -- 22

FINDINGS LAST AUDIT: 19

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 our State Compliance
Examination of the University of Illinois
for the year ended June 30, 2023.  A
separate Financial Audit as of and for the
year ended June 30, 2023 was previously
released on February 6, 2024.  A separate
Single Audit for the year ended June 30,
2023 was previously released on March 28,
2024. In total, this report contains 22
findings, 9 of which were reported in the
Financial Audit and Single Audit
collectively.

SYNOPSIS

• (23-11) The University did not comply with
requirements applicable to its property and
equipment.

• (23-15) The University did not report
certain automobile accidents involving
University vehicles to the Department of
Central Management Services in a timely
manner.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER PROPERTY AND
EQUIPMENT

The University of Illinois did not comply
with requirements applicable to its property
and equipment.

We tested a sample of 89 items from the
University’s equipment inventory listing to
determine whether the equipment was in the
correct location and properly recorded in
the University’s property records. As a
result of our testing, we noted the
following:

• Two pieces of data storing equipment
(totaling $78,674) could not be verified by
us as still being in the University’s
possession and should have been located at
the Springfield campus.
• Eight pieces of non-data storing equipment
(totaling $1,929,048) had been disposed of
per the equipment custodians.  The equipment
was still included on the University’s year-
end equipment listing.  Seven of these items
(totaling $175,148) should have been located
at the Chicago campus and the remaining item
(totaling $1,753,900) should have been
located at the Urbana-Champaign campus.
• Two items approved for off-campus use
(totaling $20,900) could not be found.
• Four items (totaling $1,678,361) at the
Urbana-Champaign campus were not properly
tagged.

Additionally, the University’s certification
of inventory as of June 30, 2023 which
includes all equipment with an acquisition
cost greater than $2,500 and all high theft
equipment disclosed 95 other items totaling
$1,455,051 which could not be located out of
the University’s $2,185,940,753 equipment
inventory.

We tested a sample of 60 items located at
the University to determine whether the
equipment was properly recorded in the
University’s property records and noted four
pieces of equipment (7%) could not be found
in the University’s property records. Three
of these items were located in Urbana-
Champaign campus and one at the Chicago
campus.

We tested a sample of 61 equipment
acquisitions to determine whether items were
added to the University’s property records
timely and for the correct amount and we
noted:

• Eight (13%) equipment acquisitions
(totaling $1,033,153) were added to the
University’s equipment inventory records
between 13 to 167 days late.  Two of the
items were acquisitions at the Urbana-
Champaign campus and the remaining six were
acquisitions of the Chicago campus.

• Five (8%) equipment acquisitions, four at
the Urbana- Champaign campus and one at the
Chicago campus, were recorded at understated
values.  The understatements were caused by
improperly reducing the acquisition value of
two assets by trade-in allowances (totaling
$28,208), not including shipping fees
(totaling $2,150) for two of the assets, and
missing one invoice (totaling $6,500) when
recording the value of an asset comprised of
multiple invoiced amounts.

We tested a sample of 60 equipment deletions
to determine whether items removed from the
University’s property records timely, at the
correct amount and properly approved and we
noted ten (17%) equipment deletions were
removed from the University’s equipment
records between 17 to 426 days late.
(Finding 11, Pages 25-26)

We recommended the University review its
process for ensuring all equipment records
are accurately maintained and updated in a
timely manner.  We also recommended the
University strengthen its internal control
over the accountability of University
equipment.

University officials accepted the
recommendation.

UNTIMELY VEHICLE ACCIDENT REPORTING

The University of Illinois (University) did
not report certain automobile accidents
involving University vehicles to the
Department of Central Management Services in
a timely manner.

During our testing of the operation of
University vehicles, we noted the University
reported 169 accidents involving University
vehicles to the Department of Central
Management Services (CMS) during fiscal year
2023. The Urbana Champaign campus reported
136 accidents, the Chicago campus reported
32 accidents and the Springfield campus
reported one accident.

• Of the 136 accidents reported by the
Urbana-Champaign campus, 22 (16%) were not
reported
timely and ranged from one to 56 days late.

• Of the 32 accidents reported by the
Chicago campus, twelve (38%) were not
reported timely and
ranged from one to 12 days late.

• Upon further review of the University’s
listing of accidents, we noted the Urbana-
Champaign campus did not report one accident
to CMS at all.

In addition, we noted the following:

• Of the 136 accidents reported to the
Urbana-Champaign campus, 24 (18%) involving
University
vehicles were not reported timely to the
Urbana-Champaign campus’ motor pool and
ranged from
one to 42 days late.

• Of the 32 accidents reported to the
Chicago campus, nine (28%) were not reported
timely to
the Chicago campus’ Transportation Office
and ranged from one to seven days late.

• Upon further review of the University’s
listing of accidents, we noted the Urbana-
Champaign
campus submitted one accident claim to CMS
but did not include it on the University’s
listing.  (Finding 15, Pages 34-35)

We recommended the University implement
procedures to ensure accidents are reported
in a timely manner.  We also recommended the
University ensure policies and procedures
are clearly understood and followed by all
personnel responsible for the oversight of
University vehicles within each department.

University officials accepted the
recommendation.

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 the
next engagement.

AUDITOR’S OPINIONS

The financial audit was previously released.
Our auditors stated the financial statements
of the University of Illinois as of and for
the year ended June 30, 2023 are fairly
stated in all material respects.

The single audit was previously released.
Our auditors also conducted a Single Audit
of the University as required by the Uniform
Guidance and stated the University complied,
in all material respects, with the types of
compliance requirements that could have a
direct and material effect on the
University’s major federal programs for the
year ended June 30, 2023.

ACCOUNTANT’S OPINION

The accountants conducted a State compliance
examination of
the University for the year ended June 30,
2023, as required by
the Illinois State Auditing Act. The
accountants qualified
their report on State compliance for
Findings 2023-001 and 2023-002. Except for
the noncompliance described in these
findings, the accountants stated the
University complied, in all material
respects, with the requirements described in
the report.

The State Compliance Examination was
conducted by RSM US LLP.

JANE CLARK
Division Director

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:TLK