Western Illinois University. Single Audit and Compliance Examination

              Office of the Auditor General, Iles Park Plaza, 740 E. Ash St., Springfield, IL 62703 • Tel: 217-782-6046 or TTY 888-261-2887
This Report Digest and a Full Report are also available on the internet at www.auditor.illinois.gov
WESTERN ILLINOIS UNIVERSITY
SINGLE AUDIT AND
STATE COMPLIANCE EXAMINATION
For the One Year Ended: June 30, 2011
Summary of Findings this Audit Cycle:
• Compliance and Single Audit
• Financial Audit (previously reported 2-8-12)
TOTAL findings:
Summary of findings from previous audit cycle:
Repeated from last audit:
5
2
7
6
3
Release Date: March 27, 2012
INTRODUCTION
The Financial Audit for the year ended June 30, 2011 was previously released on February 21, 2012. That audit contained two findings. This report addresses Federal and State compliance findings pertaining to the Single Audit and State Compliance Examination. In total, this report contains 7 findings, two of which were also reported in the Financial Audit.
SYNOPSIS
• The University had not established adequate internal controls over contracts and leases to ensure they contained all necessary provisions, were properly executed prior to performance, and were properly filed.
{Expenditures and Activity Measures are summarized on the reverse page.}ii
COMPARATIVE SCHEDULE OF INCOME FUND REVENUES AND EXPENDITURES (Amounts in Thousands)
INCOME FUND REVENUES
Registration fees................................................
66,769$
64,416$
Other student charges........................................
1,070
869
Extension...........................................................
6,089
4,690
Tuition and fees waived, faculty and staff.........
(3,810)
(3,919)
Tuition and fees waived, students......................
(3,841)
(3,727)
Other..................................................................
863
700
Total Revenues............................................
67,140$
63,029$
INCOME FUND EXPENDITURES
Personal services................................................
47,807$
43,743$
Contractual services...........................................
6,040
6,817
Travel.................................................................
666
868
Commodities......................................................
1,228
1,277
Library books and equipment............................
2,015
2,186
Operation of automotive equipment..................
50
156
Telecommunications..........................................
221
303
Awards, grants, and matching funds..................
1,683
1,042
FICA/Medicare..................................................
604
599
Permanent improvements...................................
166
238
Employment security.........................................
11
21
Total Expenditures.......................................
60,491$
57,250$
SUPPLEMENTAL INFORMATION (unaudited)
FY 2011
FY 2010
Employment Statistics
Faculty and Administrative................................
1,138
1,160
Civil Service......................................................
823
846
Student Employees............................................
275
289
Total Employees..........................................
2,236
2,295
Enrollment Statistics
Fall term enrollment - undergraduate.................
9,977
10,077
Fall term enrollment - graduate..........................
1,677
1,762
Fall term enrollment - extension........................
931
840
Total.............................................................
12,585
12,679
Cost Per Student (Unaudited)
Cost Per Full-Time Equivalent Student.............
10,453$
10,440$
During Examination Period: Dr. Alvin Goldfarb
Currently: Dr. Jack Thomas
WESTERN ILLINOIS UNIVERSITY
COMPLIANCE EXAMINATION AND SINGLE AUDIT
For The Year Ended June 30, 2011
UNIVERSITY PRESIDENT
FY 2010
FY 2011iii
Agreements were signed after the term began
Contracts filed with the State Comptroller before approval
University agrees with auditors
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
NONCOMPLIANCE WITH REQUIRED CONTRACTING PROCEDURES
The University had not established adequate internal controls over contracts and leases to ensure they contained all necessary provisions, were properly executed prior to performance, and were properly filed. We noted:
• One lease disclosure forms was completed 153 days after the lease began,
• Two leases and one contract were executed 4-162 days after the leases or contract began,
• One large contract was not approved by all three required top administrators, and
• Twenty large contracts were filed with the State Comptroller 1 to 496 days prior to full management approval. (Finding 4, pages 25-27)
We recommended the University establish appropriate procedures to ensure all contracts, leases, and related disclosures are properly completed, approved, and executed prior to the start of the services or lease terms.
University officials accepted the finding and stated corrective action will be taken.
OTHER FINDINGS
The remaining findings are reportedly being given attention by the University. We will review the University’s progress towards the implementation of our recommendations in our next audit.
AUDITORS' OPINION
The auditors conducted a compliance examination and Single audit of the University for the year ended June 30, 2011. A financial audit covering the year ended June 30, 2011 was issued separately.
___________________________________
WILLIAM G. HOLLAND
Auditor General
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AUDITORS ASSIGNED: Our special assistant auditors for this examination were E. C. Ortiz & Co. LLP.