REPORT DIGEST WESTERN ILLINOIS UNIVERSITY COMPLIANCE EXAMINATION AND SINGLE AUDIT FOR THE YEAR ENDED JUNE 30, 2019 Release Date: April 8, 2020 FINDINGS THIS AUDIT: 8 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 4 -- 4 -- 8 Category 3: 0 -- 0 -- 0 TOTAL: 4 -- 4 -- 8 FINDINGS LAST AUDIT: 4 Category 1: Findings that are material weaknesses in internal control and/or a qualification on compliance with State laws and regulations (material noncompliance). Category 2: Findings that are significant deficiencies in internal control and noncompliance with State laws and regulations. Category 3: Findings that have no internal control issues but are in noncompliance with State laws and regulations. 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, 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 digest covers our single audit and compliance examination of Western Illinois University (University) for the year ended June 30, 2019. A separate financial audit as of and for the year ending June 30, 2019 was previously released on March 12, 2020. In total, this report contains 8 findings, one of which was reporting in the financial audit. SYNOPSIS • (19-02) The University had weaknesses in the University’s internal controls over compliance with the College Student Immunization Act (Act). • (19-03) The University did not adequately comply with the University Guidelines on remittance of excess funds. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS NONCOMPLIANCE WITH THE COLLEGE STUDENT IMMUNIZATION ACT The University had weaknesses in the University’s internal controls over compliance with the College Student Immunization Act (Act). During our review of the University’s annual immunization report for Fall 2018 covered students, we noted the following: a) The University did not maintain documentation supporting the following classification of students as of the date the University prepared its report to the Department of Public Health (Department): • Total official 10th day on-campus headcount; • Total number of enrolled and newly enrolled students subject to the requirements; • Total number of enrolled and newly enrolled students immunized against the following: tetanus, diphtheria, and pertussis; measles; rubella; mumps; and meningococcal; and, • Total number of enrolled and newly enrolled students who have received all five vaccinations. b) The University was unable to provide the auditors with a reconciliation between new students enrolled at the University in Fall 2018 and the number of new covered students first enrolled in Fall 2018 as reported to the Department of Public Health. (Finding 2, pages 19-21). We recommended the University review and improve its current system of internal controls for monitoring covered student compliance to better ensure accurate record keeping and compliance with the Act. The University agreed with the finding. The University will retain supporting documentation used to complete forms provided by the Department of Public Health. All Medical exemptions will be reviewed by the immunization nurse and the nursing supervisor prior to clearing those students for registration. NONCOMPLIANCE WITH THE UNIVERSITY GUIDELINES ON EXCESS FUNDS The University did not adequately comply with the University Guidelines on remittance of excess funds. During our testing of the University’s compliance with the University Guidelines, we noted the University complied with the requirement to calculate excess funds on indirect cost, auxiliary enterprises and accounting entities but failed to remit amounts due to the Income Fund for the following funds: Indirect Costs: $1,806,707 Public Service: $646,310 Instructional Resources: $559,614 University Publication: $3,088 Unique Charges: $10,905 Sponsored Credit Programs: $35,329 Parking Operations: $357,160 Total: $3,419,113 (Finding 3, page 22) This finding has been repeated since 2016. We recommended the University continue to monitor the activities of each accounting entity and ensure compliance with all requirements of the University Guidelines. The University agreed with the finding. The University will continue to monitor the activities of each accounting entity and make a decision on remitting excess funds based on the University’s current resources. OTHER FINDINGS The remaining findings pertain to subsidies between accounting entities, computer inventory controls, controls over external service providers, disaster contingency planning, and segregation of duties over programmer access to production. We will review the University’s progress towards the implementation of our recommendations in our next Single Audit and compliance examination. AUDITOR’S OPINIONS The financial audit report was previously released. The auditors stated the financial statements of the University as of and for the year ended June 30, 2019, are fairly stated in all material respects. The auditors also conducted a Single Audit of the University as required by the Uniform Guidance. The auditors 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, 2019. ACCOUNTANT’S OPINION The accountants conducted a compliance examination of the University for the year ended June 30, 2019, as required by the Illinois State Auditing Act. The accountants stated the University complied, in all material respects, with the requirements described in the report. This Single Audit and compliance examination was conducted by Adelfia LLC. 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:sjs