REPORT DIGEST WESTERN ILLINOIS UNIVERSITY FINANCIAL AUDIT For the Year Ended: June 30, 2013 Release Date: January 16, 2014 Summary of Findings: Total this audit: 1 Total last audit: 2 Repeated from last audit: 0 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 INTRODUCTION This report contains only findings pertaining to the Financial Statement Audit. The State Compliance Examination and Federal Single Audit Report will be issued at a later date. SYNOPSIS • The University did not have adequate controls over its journal entries to ensure that journal entry transactions were properly supported and reviewed prior to posting to the general ledger. FINDING, CONCLUSION, AND RECOMMENDATION INADEQUATE CONTROLS OVER JOURNAL ENTRIES The University had not established adequate controls over its journal entries. During our review of journal entries, we noted the following: • The University had no formal policy to ensure journal entries were reviewed and approved prior to posting to the general ledger. • Six of 25 (24%) journal entries totaling nearly $423,000 were not adequately supported. No supporting documentation was attached to 3 of the 6 (50%) entries and supporting documentation for the rest was insufficient to support the entry. • No independent review and/or approval was noted for 25 (100%) journal entries posted in the general ledger, totaling over $39,500,000. (Finding 1, pages 43-44). We recommended the University establish formal policies and procedures to ensure that all journal entries are adequately supported and properly reviewed by an independent person prior to posting to the general ledger. University officials agreed with the finding and responded they would establish formal policies and procedures for processing, reviewing and approving journal entries. AUDITORS' OPINION Our auditors stated the financial statements of Western Illinois University as of June 30, 2013, and for the year then ended, are fairly stated in all material respects. WILLIAM G. HOLLAND Auditor General WGH:lkw AUDITORS ASSIGNED: Our special assistant auditor for this examination was E. C. Ortiz & Co. LLP.