REPORT DIGEST

WESTERN 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, 2005

Summary of Findings:

Total this audit 3

Total last audit 3

Repeated from last audit 1

Release Date:

March 8, 2006

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 the Full Report are also available on

the worldwide web at

http://www.state.il.us/auditor

SYNOPSIS

· All employees were not required to periodically submit timesheets to document the time spent on official State business.

· Publications printed by the University did not include the phrase “Printed by the authority of the State of Illinois”.

{Financial Information is summarized on the reverse page.}

WESTERN ILLINOIS UNIVERSITY

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

For the Year Ended June 30, 2005

FINANCIAL OPERATIONS	FY 2005		FY 2004
OPERATING REVENUES Tuition and fees, net.......................................................... Auxiliary enterprises, net................................................... Grants and contracts.......................................................... Other..................................................................................... Total Operating Revenues........................................ OPERATING EXPENSES Instruction........................................................................... Research............................................................................... Public service...................................................................... Academic support.............................................................. Student services................................................................. Institutional support.......................................................... Operation and maintenance of plant................................ Student aid........................................................................... Auxiliary enterprises.......................................................... Depreciation........................................................................ On-behalf payments........................................................... Other..................................................................................... Total Operating Expenses......................................... Operating Income (Loss)........................................................... NONOPERATING REVENUES (EXPENSES) State appropriations........................................................... Capital appropriations........................................................ Gifts....................................................................................... Interest on capital assets - related debt.......................... Investment income............................................................. Other net.............................................................................. INCREASE IN NET ASSETS................................................... Net assets, beginning of year................................................... Net assets, end of year..............................................................	$51,075,172 45,848,730 20,928,925 7,817,875 $125,670,702 $51,059,319 4,565,146 10,303,513 12,894,622 15,254,938 9,572,886 12,702,001 5,297,863 38,970,579 9,763,734 29,966,687 5,492,584 $205,843,872 $(80,173,170) $86,359,787 346,136 607,893 (2,391,788) 1,033,515 2,456 $5,784,829 $91,691,966 $97,476,795		$44,126,804 42,392,818 21,467,731 9,022,362 $117,009,715 $49,082,909 5,148,557 10,721,040 12,065,576 15,625,275 9,420,983 12,483,110 5,498,580 37,122,186 9,606,897 67,284,696 4,364,681 $238,424,490 $(121,414,775) $122,302,896 783,810 3,578,599 (2,556,496) 648,835 362,934 $3,705,803 $87,986,163 $91,691,966
SELECTED ACCOUNT BALANCES	June 30, 2005		June 30, 2004
Cash and Investments............................................................... Capital Assets, net of accumulated depreciation.................. Accrued Compensated Absences........................................... Revenue Bonds Payable............................................................	$50,331,945 $128,364,208 $18,034,715 $45,202,845		$50,062,395 $129,703,354 $18,321,095 $53,440,822
SUPPLEMENTAL INFORMATION	FY 2005		FY 2004
Employment Statistics
Faculty and Administrative...............................................	1,052		1,065
Civil Service.........................................................................	822		795
Student Employees.............................................................	302		317
Total Employees.........................................................	2,176		2,177
Enrollment Statistics
Fall term enrollment - undergraduate...............................	10,752	10,462
Fall term enrollment -graduate..........................................	1,715	1,844
Fall term enrollment - extension........................................	1,091	1,163
Full-time equivalent cost per student..............................	$8,203	$8,454
UNIVERSITY PRESIDENT
During Audit Period: Dr. Alvin Goldfarb Currently: Dr. Alvin Goldfarb

Timesheets not required of all employees

Publications not identified as being “Printed by the authority of the State of Illinois”

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

EMPLOYEE TIMESHEETS NOT REQUIRED

The University did not require all employees to periodically submit timesheets as required by the State Officials and Employees Ethics Act.

We noted that only non-exempt civil service and student workers are required to submit a timesheet. Faculty, exempt civil service and professional staff employees are not required to submit time reports. The University tracks the employees’ time using a negative reporting system instead. The negative reporting system only requires the employees to submit vacation and sick leave to the nearest quarter hour and does not require employees to document the amount of time spent on official State business.

The Act requires the University adopt personnel policies which require State employees to periodically submit timesheets documenting the time spent each day on official State business to the nearest quarter hour. (Finding 2, page 17)

We recommended the University amend its policies to require all employees to submit timesheets in compliance with the Act.

University officials responded that they have been addressing this problem by re-writing the automated personnel/payroll system to accommodate the requirement that administrative personnel fill out time cards. They anticipate having the systems completed and ready for testing and implementation during the Spring of 2006.

UNIVERSITY PUBLICATIONS LACKED REQUIRED PHRASE

The University did not include information required by the Illinois Procurement Code on publications printed for the University. The Procurement Code requires the University to include the phrase, “Printed by the authority of the State of Illinois”, the date of each publication, the number of copies printed and the printing order number on all books, pamphlets, documents and reports published by the University. University personnel stated they were not aware of the requirement. (Finding 3, page 18)

We recommended that University personnel become familiar with the Procurement Code requirements and put into place a policy which ensures the required information is printed on University publications.

University officials responded that they have made the required changes.

OTHER FINDING

The remaining finding is less significant and has been addressed by University management. We will review progress toward the implementation of our recommendations in our next examination. University responses were provided by Carole Carter, Internal Audit Director.

AUDITORS' OPINION

Our auditors state the financial statements of Western Illinois University as of June 30, 2005, 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

BKD, LLP were our special assistant auditors.