2012 Southern Illinois University Financial Report

              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
SOUTHERN ILLINOIS UNIVERSITY
FINANCIAL AUDIT AND COMPLIANCE EXAMINATION (In accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended: June 30, 2011
Summary of Findings:
Total this audit:
Total last audit:
Repeated from last audit:
6
6
2
Release Date: April 17, 2012
SYNOPSIS
• The University’s East St. Louis campus failed to produce evidence that an eligibility determination was performed on 3 of the 60 students of the Head Start program selected for testing.
• The University’s East St. Louis campus did not perform a formalized review of budget to actual reports for their Head Start program during fiscal year 2011.
• The University’s East St. Louis campus failed to meet the Head Start program’s required 100% funded enrollment status.
{Expenditures and Activity Measures are summarized on the reverse page.}ii
FINANCIAL OPERATIONS
Operating Revenues
Student tutition and fees, net...................................
242,813,334$
239,531,944$
Auxiliary enterprises...............................................
107,373,101
106,461,946
Grants and contracts................................................
109,135,111
109,919,427
Sales and services of educational activities............
78,558,753
71,146,322
Other........................................................................
54,886,757
41,093,270
Total Operating Revenues..................................
592,767,056$
568,152,909$
Operating Expenses
Instruction................................................................
317,152,057$
314,929,274$
Research...................................................................
63,660,347
64,467,684
Public service..........................................................
62,657,302
63,662,792
Academic support....................................................
161,909,517
149,910,775
Student services.......................................................
69,031,681
68,648,632
Institutional support................................................
70,058,717
69,255,532
Operation and maintenance of plant.......................
84,188,302
78,274,816
Scholarships and fellowships..................................
31,645,865
31,618,117
Auxiliary enterprises...............................................
98,759,484
96,071,371
Depriciation.............................................................
44,134,264
40,542,476
Other........................................................................
406,880
431,667
Total Operating Expenses..................................
1,003,604,416$
977,813,136$
Operating Income (Loss)..............................................
(410,837,360)$
(409,660,227)$
NONOPERATING REVENUES (EXPENSES)
State appropriations.................................................
222,013,500$
220,753,700$
Capital appropriations, gifts and grants..................
30,267,882
5,329,861
On behalf payments of the University....................
191,169,767
178,405,918
Other, net.................................................................
49,928,314
64,969,617
INCREASE (DECREASE) IN NET ASSETS.........
82,542,103$
59,798,869$
Net assets, beginning of year........................................
545,851,322$
486,052,453$
Net assets, end of year..................................................
628,393,425$
545,851,322$
SUMMARY - BALANCE SHEET
2011
2010
Current Assets..............................................................
289,668,133$
254,145,530$
Noncurrent Assets .......................................................
838,483,043
808,020,171
Total Assets.............................................................
1,128,151,176$
1,062,165,701$
Current Liabilities........................................................
143,773,319
143,538,405
Noncurrent Liabilities..................................................
355,984,432
372,775,974
Total Liabilities.......................................................
499,757,751$
516,314,379$
Total Net Assets......................................................
628,393,425$
545,851,322$
EMPLOYMENT STATISTICS (unaudited)
FALL 2010
FALL 2009
Carbondale....................................................................
7,215
7,304
Edwardsville.................................................................
2,935
2,974
Total Employees......................................................
10,150
10,278
ENROLLMENT STATISTICS (unaudited)
FALL 2010
FALL 2009
Carbondale (Full-time and Part-time students)...........
19,817
20,350
Edwardsville (Full-time and Part-time students).........
14,133
13,940
Total Enrollment.....................................................
33,950
34,290
UNIVERSITY PRESIDENT
During Audit Period: Dr. Glenn Poshard
Currently: Dr. Glenn Poshard
SOUTHERN ILLINOIS UNIVERSITY
COMPLIANCE EXAMINATION AND SINGLE AUDIT
For The Year Ended June 30, 2011
2010
2011iii
University was unable to provide student files for 3 students
University agrees with auditors
Informal policies and procedures for review of monthly budget to actual reports
University agrees with auditors
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
HEAD START ELIGIBILITY
During our eligibility testing of the Head Start program the East St. Louis campus failed to produce evidence that an eligibility determination was performed on 3 of 60 students selected for testing.
Of a sample of 60 students selected for compliance testing with eligibility requirements, the University was unable to provide student files for 3 (5.0%) students. The Head Start program student files contain the eligibility determination worksheet, the students’ program application form, and documented evidence of a formalized review of these documents by a Head Start administrator at the University. The 3 student record files were unable to be located by Head Start administrators. The University stated the records were most likely shredded accidently. (Finding 1, page 11)
We recommended the Edwardsville campus reevaluate its policies and procedures surrounding records management to ensure supporting documentation is properly maintained until electronically archived.
University officials accepted the finding.
HEAD START CASH MANAGEMENT CONTROLS
The East St. Louis campus did not perform a formalized review of budget to actual reports for their Head Start program during fiscal year 2011.
The University had informal policies and procedures in place to review monthly budget to actual reports for the Head Start program. The University used the monthly budget to actual reports as a control to monitor revenues and expenditures related to the Head Start program during the grant period. The reviews were not formally documented, and as such, no audit evidence exists to prove that the reviews occurred. (Finding 2, page 12)
We recommended the Edwardsville campus create formalized policies and procedures related to internal control documentation and retention for the Head Start program.
University officials accepted the finding.
FAILURE TO MEET HEAD START EARMARKING REQUIREMENT
The East St. Louis campus failed to meet the Head Start program’s required 100% funded enrollment status.iv
Eight individuals short of meeting earmarking requirement
University agrees with auditors
The East St. Louis campus has a funded enrollment requirement of 1,569 individuals. Only 1,561 are enrolled leaving the program 8 individuals (1%) short of meeting the earmarking requirement. (Finding 4, page 14)
We recommended that a documented supervisory review of projected enrollment levels occurs before the grant agreements are signed. The University should also formally monitor the enrollment status quarterly throughout the grant period.
University officials accepted the finding.
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
Our auditors stated the financial statements of the University as of June 30, 2011 and for the year then ended are fairly presented in all material respects.
___________________________________
WILLIAM G. HOLLAND
Auditor General
WGH:gr:rt
SPECIAL ASSISTANT AUDITORS
Crowe Horwath LLP were our special assistant auditors for this audit.