REPORT DIGEST

WESTERN ILLINOIS UNIVERSITY

COMPLIANCE EXAMINATION

(In accordance with the

Single Audit Act and

OMB Circular A-133)

For the Year Ended

June 30, 2008

Summary of Findings:

Total this audit 2

Total last audit 5

Repeated from last audit 2

Release Date:

March 19, 2009

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

www.auditor.illinois.gov

INTRODUCTION

The Financial Statement Audit for the year ended June 30, 2008 was previously released on February 19, 2009.

SYNOPSIS

· The University’s Internal Auditing Department did not fully comply with the Fiscal Control and Internal Auditing Act.

· All employees were not required to submit time sheets to document the time spent on official State business as required by the State Officials and Employees Ethics Act.

{Financial Information is summarized on the reverse page.}

WESTERN ILLINOIS UNIVERSITY

COMPLIANCE EXAMINATION

For the Year Ended June 30, 2008

COMPARATIVE SCHEDULE OF INCOME FUND REVENUES AND EXPENDITURES	FY 2008	FY 2007
INCOME FUND REVENUES Registration fees.............................................. Extension......................................................... Interest ........................................................... Tuition and fees, foregone, faculty and staff....... Tuition and fees, foregone, scholarships students \| Other................................................. Total Revenues.......................................... INCOME FUND EXPENDITURES Personal services............................................. Contractual services......................................... Travel ........................................................... Commodities................................................... Library books and equipment........................... Operation of automotive equipment.................. Telecommunications......................................... Awards, grants, and matching funds................. FICA/Medicare............................................... Permanent Improvements................................. Employment security........................................ Total Expenditures.....................................	$59,513,570 2,897,680 900,317 (3,388,478) (3,040,741) 1,092,281 $57,974,429 $39,938,614 7,795,695 1,183,874 1,148,713 2,299,437 81,414 58,350 867,956 622,610 1,903,862 19,368 $55,919,893	$54,924,204 2,828,721 1,269,686 (3,129,202) (2,575,492) 844,128 $54,162,045 $36,361,907 6,870,100 1,050,602 1,068,501 2,600,621 73,168 58,631 781,966 535,118 347,979 24,126 $49,772,719
SUPPLEMENTAL INFORMATION (unaudited)	FY 2008	FY 2007
Employment Statistics
Faculty and Administrative...............................	1,144	1,125
Civil Service....................................................	849	844
Student Employees..........................................	285	297
Total Employees........................................	2,278	2,266
Enrollment Statistics
Fall term enrollment – undergraduate................	10,806	10,972
Fall term enrollment – graduate.........................	1,744	1,727
Fall term enrollment – extension.......................	781	903
Total.........................................................	13,331	13,602
UNIVERSITY PRESIDENT
During Audit Period: Dr. Alvin Goldfarb Currently: Dr. Alvin Goldfarb

Internal audit plan not implemented

University Response

Negative time reporting is not adequate

University Response

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH THE FISCAL CONTROL AND INTERNAL AUDITING ACT

The University’s Internal Auditing Department did not fully comply with the Fiscal Control and Internal Auditing Act (Act).

During Fiscal Year 2008, there were nine specific compliance audits on the internal audit plan. Our review disclosed that five of nine audits on the audit plan were not completed. Three audits were conducted but were not on the original audit plan. In addition, no audits relating to internal and administrative controls for grants received or made by the University were completed during the last three years.

The Act requires that the internal auditing program include audits of major systems of internal and administrative control conducted on a periodic basis so that all major systems are reviewed at least once every two years. The audits must include grants received or made to determine that the grants are monitored, administered, and accounted for in accordance with applicable laws and regulations. (Finding 08-1, pages 16-17 in the Compliance Examination Report)

We recommended the University complete internal audits of its major systems of internal accounting and administrative controls as required by the Act.

University officials agreed with the finding and stated that they will continue to review and modify plans as necessary to ensure periodic review of key systems.

EMPLOYEE TIME SHEETS NOT ADEQUATE

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

Administrative, professional and faculty employees are required to submit time reports. However, the faculty employee’s time is reported using a negative reporting method. The time report lists minimum contracted hours and the employee indicates time away from the office, for vacation, sick, or other types of leave.

The Act requires the University adopt personnel policies which requires State employees to periodically submit time sheets documenting the time spent each day on official State business to the nearest quarter hour.

University management stated they have not yet developed a system for faculty employees to submit their timesheets. (Finding 08-2, pages 18-19 in the Compliance Examination Report) This finding was first reported in 2005.

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

University officials agreed with our finding and stated they are still investigating a feasible, efficient reporting process for the unique requirements of faculty. (For the previous University response, see Digest Footnote #1)

AUDITORS' OPINION

We conducted a compliance examination of the University for the year ended June 30, 2008, as required by the Illinois State Auditing Act, the Single Audit Act and OMB Circular A-133. A financial statement audit and report required under Government Auditing Standards covering the year ended June 30, 2008 was issued separately.

___________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:CML:pp

SPECIAL ASSISTANT AUDITORS

E.C. Ortiz & Co., LLP were our special assistant auditors.

DIGEST FOOTNOTES

#1: EMPLOYEE TIME SHEETS NOT ADEQUATE – Previous University Response

We agree with the finding. We are currently using a “negative” reporting process, only indicating the faculty’s time away from the University on vacation, sick leave, etc. We are still investigating a feasible, efficient reporting process for the unique requirements of faculty. An efficient process will allow compliance with not only the State Officials and Employees Ethics Act, but also other granting agency requirements.

An evaluation will also occur on how we track and allocate time for employees performing dual responsibilities for the University and the Foundation. The process needs to be efficient, auditable and should not be a burden for the staff and administration.