REPORT DIGEST

CHICAGO STATE UNIVERSITY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2025

Release Date:  March 10, 2026

FINDINGS THIS AUDIT: 4

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 2 -- 2
Category 2:  1 -- 1 -- 2
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 3 -- 4

FINDINGS LAST AUDIT: 3

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 the Chicago State
University’s (University) Financial Audit
as of and for the year ended June 30, 2025.
The University’s State Compliance
Examination and Single Audit reports will
be separately issued at a later date.

SYNOPSIS

• (25-02) The University did not exercise
adequate internal control over its
financial reporting.

• (25-04) The University did not have
adequate internal controls to ensure
compliance with the Illinois Pension Code.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER FINANCIAL
REPORTING

The University did not exercise adequate
internal control over its financial
reporting.

During our audit of the University’s
financial statements, we noted the
following:

• The University did not properly account
for changes in monthly payment amounts
related to subscription services resulting
in inaccurate balances in various accounts.
Specifically, operating expenses were
understated by $207,392, right of use
assets were understated by $218,240,
subscription payable was understated by
$207,075, accumulated amortization was
understated by $1,708, and gain on
termination was understated by $216,849.

• The University did not properly implement
Governmental Accounting Standards Board
(GASB) Statement No. 101, Compensated
Absences. Specifically, the inaccurate
calculation and recording of accrued
compensated absences resulted in an
overstatement of both the accrued liability
and related operating expenses by
$3,488,089.

Proposed adjustments to correct these
misstatements were recorded by the
University. (Finding 2, pages 67-68)

We recommended the University strengthen
its controls over financial reporting to
allow for the accurate preparation of its
financial statements in accordance with
U.S. generally accepted accounting
principles (GAAP).

University officials agreed with the
recommendation and stated the University
will ensure the proper implementation of
GASB statements on an ongoing basis.

INADEQUATE CONTROLS TO ENSURE COMPLIANCE
WITH  THE ILLINOIS PENSION CODE

The University did not have adequate
internal controls to ensure compliance with
the Illinois Pension Code (Code).

During testing, we requested the University
provide the populations of retired
employees, persons receiving a retirement
annuity (Annuitant) from the State
Universities Retirement System (SURS) and
re-employed by the University, and
employees who filed for disability benefits
during Fiscal Year 2025. The University
provided the populations; however, these
populations could not be reconciled to the
University’s internal records and SURS.

Due to this condition, we were unable to
conclude the University’s population
records were sufficiently precise and
detailed under the Professional Standards
promulgated by the American Institute of
Certified Public Accountants (AU-C § 500.08
and AT-C § 205.36) to test the University’s
compliance with the Code.

Even given the population limitations noted
above, we performed the testing and noted
one of seven (14%) retired employees’
unused sick leave days totaling 129 days
were incorrectly reported to SURS. (Finding
4, pages 72-73) This finding has been
reported since 2023.

We recommended the University implement
controls to ensure the completeness and
accuracy of populations of retirees, re-
employed annuitants, and employees who
filed for disability benefits.  Further, we
recommended the University accurately
report unused sick leave to SURS in
accordance with the Code.

University officials agreed with the
recommendation and stated the University
will implement controls to maintain
accurate records of retirees, re-employed
annuitants, employees who file for
disability benefits, and also implement
controls for accurate reporting of unused
sick leave to SURS.

OTHER FINDINGS

The remaining findings pertain to
inadequate internal controls over census
data and weaknesses over computer security.
We will review the University’s progress
towards the implementation of our
recommendations in our next financial
audit.

AUDITOR’S OPINIONS

The auditors stated the financial
statements of the University as of and for
the year ended June 30, 2025, are fairly
stated in all material respects.

The financial audit was conducted by Roth &
Company, LLP.

COURTNEY DZIERWA
Division Director

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

FRANK J. MAUTINO
Auditor General

FJM:vrb