FY11-WIU-Comp-Full

              STATE OF ILLINOIS
WESTERN ILLINOIS UNIVERSITY
COMPLIANCE EXAMINATION
:In Accordance with the Single Audit Act and OMB Circular A-133:
FOR THE YEAR ENDED JUNE 30, 2011
Performed as Special Assistant Auditors for
the Auditor General, State of Illinois
E.C. ORTIZ & CO., LLP
CERTIFIED PUBLIC ACCOUNTANTS
State of Illinois
Western Illinois University
Compliance Examination
(In Accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended June 30, 2011
Table of Contents
Page
University Officials 1
Management Assertion Letter 2
Compliance Report
Summary 3
Accountants’ Reports
Independent Accountants’ Report on State Compliance, on Internal
Control Over Compliance, and on Supplementary Information for
State Compliance Purposes 5
Independent Auditor’s Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 9
Independent Auditors’ Report on Compliance with Requirements that Could Have
a Direct and Material Effect on Each Major Program, on Internal Control Over
Compliance, and on the Schedule of Expenditures of Federal Awards in
Accordance with OMB Circular A-133 11
Schedule of Findings and Questioned Costs
Summary of Auditors’ Results 14
Current Findings - Government Auditing Standards 16
Current Findings - Federal Compliance 21
Current Findings - State Compliance 24
Prior Findings Not Repeated 30
Financial Statement Report
The University’s financial statement report for the year ended June 30, 2011, which
includes the report of independent auditors, management discussion and analysis,
basic financial statements and notes, and the independent auditors’ report on internal
control over financial reporting and on compliance and other matters based on an
audit of basic financial statements performed in accordance with Government
Auditing Standards has been issued in a separate report dated February 8, 2012.
Supplementary Information for State Compliance Purposes
Summary 31
Fiscal Schedules and Analysis
Schedule of Expenditures of Federal Awards 33
Notes to Schedule of Expenditures of Federal Awards 41
Schedule of Net Appropriations, Expenditures and Lapsed Balances 43
Comparative Schedule of Net Appropriations, Expenditures and Lapsed Balances 44
Schedule of Changes in State Property 45
State of Illinois
Western Illinois University
Compliance Examination
(In Accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended June 30, 2011
Table of Contents (Continued)
Page
Supplementary Information for State Compliance Purposes (Continued)
Comparative Schedule of Income Fund Revenues and Expenditures 46
Comparative Schedule of Cash, Cash Equivalents and Investments at Fair Value 47
Analysis of Significant Variations in Account Balances 48
Analysis of Significant Variations in Operating and Nonoperating
Revenues and Expenses 51
Analysis of Significant Lapse Period Spending 52
Analysis of Accounts Receivable 53
Summary of Indirect Cost Reimbursements:
Statement of Sources and Applications 54
Calculation Sheet for Indirect Cost Carry-Forward 55
Calculation of Current Excess Funds 56
Current Funds, Unrestricted, Other:
Balance Sheet by Entity 58
Statement of Revenues, Expenditures and Changes in Fund Balances
by Entity 59
Auxiliary Enterprises and Activities, Financial Statements by Functional Entity
Auxiliary Enterprise Funds - Other:
Balance Sheet by Entity 60
Statement of Revenues, Expenditures and Changes in Fund Balances
by Entity 61
Auxiliary Enterprise Funds - Revenue Bonds:
Balance Sheet by Entity 62
Statement of Revenues, Expenditures and Changes in Fund Balances
by Entity 63
Plant Funds Statement of Changes in Fund Balances by Entity 65
Analysis of Operations
University Functions and Planning Program 66
Employment Statistics - Full-Time Equivalent (Unaudited) 68
Service Efforts and Accomplishments - Enrollment Statistics (Unaudited) 69
Schedule of Unrestricted Current Funds General Expenditures Per Full-Time
Equivalent Student as Reported to the Board of Higher Education (Unaudited) 70
Comments on the Percentage of Total Expenditures Represented by
Administrative Costs 71
State of Illinois
Western Illinois University
Compliance Examination
(In Accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended June 30, 2011
Table of Contents (Continued)
Page
Supplementary Information for State Compliance Purposes (Continued)
Analysis of Operations (Continued)
Comments on Certain Matters Pertaining to the University Guidelines 72
Summary of Western Illinois University Foundation Payments to the University 75
Analysis of Bookstore Operations (Unaudited) 76
University Accounting Entities and Related Sources of Revenues and Purposes 77
Schedule of Federal Expenditures, Nonfederal Expenses, and New Loans 80
Undergraduate Tuition and Fee Waivers (Unaudited) 81
Graduate Tuition and Fee Waivers (Unaudited) 82
Emergency Purchase 83
State of Illinois
Western Illinois University
University Officials
President Dr. Jack Thomas (Effective 07/01/11 to present)
Dr. Alvin Goldfarb (Through 06/30/11)
Vice President for Administrative Services Ms. Julie DeWees, Interim (Effective 06/30/11
to present)
Mrs. Jacqueline K. Thompson (Through 06/29/11)
Director of Business Services Ms. Dana Biernbaum, Interim (Effective 06/01/11
to present)
Mr. Ronald Ward (Through 05/31/11)
Director of Internal Auditing Ms. Rita M. Moore
University offices are located at:
Macomb Campus
1 University Circle
Macomb, Illinois 61455
Quad Cities Campus
3561 60th Street
Moline, Illinois 61265
1
2
WESTERN
ILLINOIS
UNIVERSITY
March 14, 2012
E. C Ortiz & Co., LLP
333 S. Des Plaines Street, Suite 2-N
Chicago, Illinois 60661
Ladies and Gentlemen:
We are responsible for the identification of, and compliance with, all aspects of laws, regulations,
contracts, or grant agreements that could have a material effect on the operations of the Western Illinois
University (UniversitJ?. We are responsible for and we have established and maintained an effective
system of internal controls over compliance requirements, except as disclosed to the auditors during the
engagement. We have performed an evaluation of the University's compliance with the following
assertions during the year ended June 30, 2011. Based on this evaluation, we assert that during the year
ended June 30, 2011, the University has materially complied with the assertions below.
A The University has obligated, expended, received and used public funds of the State in accordance
with the purpose for which such funds have been appropriated or otherwise authorized by law.
B. The University has obligated, expended, received and used public funds of the State in accordance
with any limitations, restrictions, conditions or mandatory directions imposed by law upon such
obligation, expenditure, receipt or use.
C The University has complied, in all material respects, with applicable laws and regulations, including
the State uniform accounting system, in its financial and fiscal operations.
D. State revenues and receipts collected by the University are in accordance with applicable laws and
regulations and the accounting and recordkeeping of such revenues and receipts is fair, accurate and
in accordance with law.
E. Money or negotiable securities or similar assets handled by the University on behalf of the State or
held in trust by the University have been properly and legally administered, and the accounting and
recordkeeping relating thereto is proper, accurate and in accordance with law.
Yours very truly,
Western Illinois University
M. .(\ ~
Office of the President
J e DeWees
Interim VP for Administrative
Services
Sherman Hall2o9, I University Circle, Macomb, IL 6r4H-1390
Tel3o9 . 298 . r824 Fax 309.298.2089
Dana Biembaum
Assistant VP for Administrative
Services/Interim Director -
Business Services
State of Illinois
Western Illinois University
Compliance Report
Summary
The compliance testing performed during this examination was conducted in accordance with
Government Auditing Standards and in accordance with the Illinois State Auditing Act.
Accountants’ Report
The Independent Accountants’ Report on State Compliance, on Internal Control Over
Compliance and on Supplementary Information for State Compliance Purposes does not
contain scope limitations, disclaimers, or other significant non-standard language.
Summary of Findings
Compliance Prior Compliance
Number of Report Report
Findings 7 6
Repeated findings 3 2
Prior recommendations implemented
or not repeated 3 3
Schedule of Findings and Questioned Costs
Item
No. Page Description Finding Type
FINDINGS (GOVERNMENT AUDITING STANDARDS)
11-1 16 Inadequate Controls Over University Property
and Equipment
Significant Deficiency
11-2 19 Inaccurate Accounting for Participation in
Public Entity Risk Pool
Significant Deficiency
FINDINGS AND QUESTIONED COSTS (FEDERAL COMPLIANCE)
11-3 21 Inaccurate Pell Grants Awarded Noncompliance and
Significant Deficiency
11-4 22 Inadequate Controls Over Reporting of Student
Data
Noncompliance and
Significant Deficiency
11-5 24 Employee Time Sheets Were Not Adequate Noncompliance and
Significant Deficiency
3
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs (Continued)
Item
No. Page Description Finding Type
FINDINGS (STATE COMPLIANCE)
11-6 25 Noncompliance With Required Contracting
Procedures
Noncompliance and
Significant Deficiency
11-7 28 Untimely Approval and Payment of Vouchers Noncompliance and
Significant Deficiency
In addition, the following findings which are reported as current findings and questioned
costs relating to Government Auditing Standards also meet the reporting requirements for
State Compliance.
11-1 16 Inadequate Controls Over University Property
and Equipment
Noncompliance and
Significant Deficiency
11-2 19 Inaccurate Accounting for Participation in
Public Entity Risk Pool
Noncompliance and
Significant Deficiency
PRIOR FINDINGS NOT REPEATED
A 30 Inadequate Controls Over Acquisition of Public
TV Station
B 30 Inadequate Process for Evaluating the Estimated
Allowance for Doubtful Accounts Receivable
C 30 Weaknesses Regarding the Security and Control
of Confidential Information
Exit Conference
The University waived having an exit conference in a letter dated February 1, 2012 from
Barbara Thompson, University’s Assistant Comptroller.
Responses to the recommendations were provided by Barbara Thompson, on behalf of
management in a letter dated February 1, 2012.
4
5
E.C. ORTIZ & CO., LLP
CERTIFIED PUBLIC ACCOUNTANTS
Independent Accountants' Report on State Compliance,
on Internal Control Over Compliance, and on
Supplementary Information for State Compliance Purposes
Honorable William G. Holland
Auditor General
State of Illinois
and
The Board of Trustees
Western Illinois University
Compliance
As Special Assistant Auditors for the Auditor General, we have examined Western Illinois
University's (University) compliance with the requirements listed below, as more fully
described in the Audit Guide for Financial Audits and Compliance Attestation Engagements
of Illinois State Agencies (Audit Guide) as adopted by the Auditor General, during the year
ended June 30, 2011. The management of the University is responsible for compliance with
these requirements. Our responsibility is to express an opinion on the University's
compliance based on our examination.
A. The University has obligated, expended, received, and used public funds of the State in
accordance with the purpose for which such funds have been appropriated or otherwise
authorized by law.
B. The University has obligated, expended, received, and used public funds of the State in
accordance with any limitations, restrictions, conditions or mandatory directions
imposed by law upon such obligation, expenditure, receipt or use.
C. The University has complied, in all material respects, with applicable laws and
regulations, including the State uniform accounting system, in its financial and fiscal
operations.
D. State revenues and receipts collected by the University are in accordance with
applicable laws and regulations and the accounting and recordkeeping of such revenues
and receipts is fair, accurate and in accordance with law.
E. Money or negotiable securities or similar assets handled by the University on behalf of
the State or held in trust by the University have been properly and legally administered
and the accounting and recordkeeping relating thereto is proper, accurate, and in
accordance with law.
333 SOUTH DES PLAINES STREET, SUITE 2-N CHICAGO, IL 60661 rei: 312.876.1900 fax: 312.876.1911
6
We conducted our examination in accordance with attestation standards established by the
American Institute of Certified Public Accountants; the standards applicable to attestation
engagements contained in .Government Auditing Standards issued by the Comptroller General
of the United States; the Illinois State Auditing Act (Act); and the Audit Guide as adopted by
the Auditor General pursuant to the Act; and, accordingly, included examining, on a test basis,
evidence about the University's compliance with those requirements listed in the first paragraph
of this report and performing such other procedures as we considered necessary in the
circumstances. We believe that our examination provides . a reasonable basis for our opinion.
Our examination does not provide a legal determination on the University's compliance with
specified requirements.
In our . opinion, the University complied, in all material respects, with the compliance
requirements listed in the first paragraph of this report during the year ended June 30, 2011.
However, the results of our procedures disclosed instances of noncompliance with the
requirements, which are required to be reported in accordance with criteria established by the
Audit Guide, issued by the Illinois Office of the Auditor General and which are described in
the accompanying schedule of findings and questioned costs as items 11-1, 11-2, 11-5, 11-6,
and 11-7.
Internal Control
Management of the University is responsible for establishing and maintaining effective
internal control over compliance with the requirements listed in the first paragraph of this
report. In planning and performing our examination, we considered the University's internal
control over compliance with the requirements listed in the first paragraph of this report as a
basis for designing our examination procedures for the purpose of expressing our opinion on
compliance and to test and report on internal control over compliance in accordance with the
Audit Guide, issued by the Illinois Office of the Auditor General, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly,
we do not express an opinion· on the effectiveness of the University's internal control over
compliance.
A deficiency in an entity's internal control over compliance exists when the design or
operation of a control over compliance does not allow management· or employees, in the
normal course of performing their assigned functions, to prevent, or detect and correct,
noncompliance with the requirements listed in the first paragraph of this report on a timely
basis. A material weakness over compliance is a deficiency, or combination of deficiencies,
in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a requirement listed in the first paragraph of this report will not be
prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described
in the first paragraph of this section and was not designed to identify all deficiencies in
internal control over compliance that might be deficiencies, significant deficiencies, or
material weaknesses. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses, as defined above. However, we
identified certain deficiencies in internal control over compliance that we considered to be
7
significant deficiencies as described in the accompanying schedule of findings and question
costs as items 11-1, 11-2, 11-5, 11-6, and 11-7. A significant deficiency in an entity's
internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control· over compliance that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.
As required by the Audit Guide, immaterial findings excluded from this report have been
reported in a separate letter to your office.
The University's responses to the findings identified in our examination are described in the
accompanying schedule of findings and questioned costs. We did not examine the
University's responses and, accordingly, we express no opinion on the responses.
Supplementary Information for State Compliance Purposes
As Special Assistant Auditors for the Auditor General, we have audited the financial
statements of the business-type activities of the University and its discretely presented
component unit as of and for the year ended June 30, 2011, which collectively comprise the
University's basic financial statements, and have issued our report thereon dated February 8,
2012. Our report was modified to include a reference to other auditors. Other auditors
audited the financial statements of the University's discretely presented component unit, as
described in our report on the University's financial statements. The accompanying
supplementary information, as listed in the table of contents as Supplementary Information
for State Compliance Purposes, is presented for purposes of additional analysis and is not a
required part of the basic financial statements of the University. The 2011 Supplementary
Information for State Compliance Purposes, except for that portion marked '"unaudited" on
which we express no opinion, has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements for the year ended June 30, 2011 taken as
a whole.
We have also previously audited, in accordance with auditing standards generally accepted in
the United States, the University's basic financial statements for the year ended June 30, 2010.
In our report dated February 4, 2011, we expressed unqualified opinions on the financial
statements of the business-type activities of the University and its discretely presented
component unit. Our report was modified to include a reference to other auditors. Other
auditors audited the financial statements of the University's discretely presented component
unit, as described in our report on the University's financial statements. In our opinion, the
2010 Supplementary Information for State Compliance Purposes, except for the portion
marked "unaudited," is fairly stated in all material respects in relation to the basic financial
statements for the year ended June 30, 2010, taken as a whole.
8
This report is intended solely for the information and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, the Board of Trustees and the
University's management, and federal awarding agencies and pass-through entities and is not
intended to be and should not be used by anyone other than these specified parties.
~. C!. ~ g._ Co., LIP
Chicago, Illinois
March 14, 2012, except for the Schedule of Expenditures of Federal Awards and the
related notes, as to which the date is February 8, 2012.
9
E.C. ORTIZ & CO., LLP
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditors' Report on Internal Control
Over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards
Honorable William G. Holland
Auditor General
State of Illinois
and
The Board of Trustees
Western Illinois University
As Special Assistant Auditors for the Auditor General, we have audited the fmancial statements
of the business-type activities of Western Illinois University (University) and its discretely
presented component unit, collectively a component unit of the State of Illinois, as of and for the
year ended June 30, 2011, which collectively comprise the University's basic financial
statements and have issued our report thereon dated February 8, 2012. Our report was modified
to include a reference to other auditors. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards issued by the Comptroller General
of the United States. Other auditors audited the financial statements of the University's
discretely presented component unit, as described in our report on the University's financial
statements. This report does not include the results of the other auditors' testing of internal
control over financial reporting or compliance and other matters that are reported on separately
by those auditors.
Internal Control Over Financial Reporting
Management of the University is responsible for establishing and maintaining effective internal
control over financial reporting. In planning and performing our audit, we considered the
University's internal control over financial reporting as a basis for designing our auditing
procedures for the purpose of expressing our opinions on the financial statements and not for the
purpose of expressing an opinion on the effectiveness of the University's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
University's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
333 SOUTH DES PLAINES STREET, SUITE 2-N CHICAGO, IL 60661 tel: 312.876.1900 fax: 312.876.1911
10
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all
deficiencies in the internal control over financial reporting . that might be deficiencies,
significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses, as
defined above. However, we identified certain deficiencies in internal control over financial
reporting, described in findings 11-1 and 11-2 in the accompanying schedule of findings that
we consider to be significant deficiencies in internal control over financial reporting. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that
is less severe than a material weakness, yet important enough to merit attention by those
charged with governance.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the University's financial statements
are free of material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances
of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
The University's responses to the findings identified in our audit are described in the
accompanying schedule of findings. We did not audit the University's responses and,
accordingly, we express no opinion on them.
This report is intended solely for the information and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, the Board of Trustees and the
University's management, and federal awarding agencies and pass-through entities and is not
intended to be and should not be used by anyone other than these specified parties.
~ ~ (!, / {;/~ 'Y
Chicago, Illinois U
February 8, 2012
11
E.C. ORTIZ & CO., LLP
C ERTIF IED PUBLIC ACCOUNTANTS
Independent Auditors' Report on Compliance with Requirements That
Could Have a Direct and Material Effect on Each Major Program, on
Internal Control Over Compliance, and on the Schedule of Expenditures of
Federal Awards in Accordance with OMB Circular A-133
Honorable William G. Holland
Auditor General
State of Illinois
and
The Board of Trustees
Western Illinois University
Compliance
We have audited Western Illinois University's (University) compliance with the types of
compliance requirements described in the US. Office of Management and Budget (OMB)
Circular A -13 3 Compliance Supplement that could have a direct and material effect on each of
the University's major federal programs for the year ended June 30, 2011. The University's
major federal programs are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs. Compliance with the requirements of
laws, regulations, contracts, and grants applicable to each of its major federal programs is the
responsibility of the University's management. Our responsibility is to express an opinion on
the University's compliance based on our audit.
The schedule of expenditures of federal awards and our audit described below does not include
expenditures of federal awards for those agencies determined to be component units of the
University for financial statement purposes.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.
Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about the University's
compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our
333 SOUTH DES PLAINES STREET, SUITE 2-N CHICAGO, IL 60661 tel: 312.876 . 1900 fax: 312.876.1911
12
optmon. Our audit does not provide a legal determination of the University's compliance with
those requirements.
In our opinion, the University complied, in all material respects, with the compliance
requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended June 30, 2011. However, the results of our auditing
procedures disclosed instances of noncompliance with those requirements, which are required to
be reported in accordance with OMB Circular A-133 and which are described in the
accompanying schedule of findings and questioned costs as items 11-3 and 11-4.
Internal Control Over Compliance
The management of the University is responsible for establishing and maintaining effective
internal ·control over compliance with the requirements of laws, regulations, contracts, and
grants applicable to federal programs. In planning and performing our audit, we considered the
University's internal control over. compliance with the requirements that could have a direct and
material effect on a major federal program to determine our auditing procedures for the purpose
of expressing our opinion on compliance and to test and report on internal control over
compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of the University's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a
control over compliance does not allow management or employees, in the normal course of
performing their assigned functions, to prevent, or detect and correct, noncompliance with a
type of compliance requirement of a federal program on a timely basis. A material weakness in
internal control over compliance is a deficiency, or combination of control deficiencies, in
internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be
prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be deficiencies, significant deficiencies, or material
weaknesses. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses, as defined above. However, we identified certain
deficiencies in internal control over compliance that we consider to be significant deficiencies as
described in the accompanying schedule of findings and questioned costs as items 11-3 and 11-
4. A significant deficiency in internal control over compliance is a deficiency, or a combination
of deficiencies, in internal control over compliance with a type of compliance requirement of a
federal program that is less severe than a material weakness in internal control over compliance,
yet important enough to merit attention by those charged with governance.
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Schedule of Expenditures of Federal Awards
We have audited the financial statements of the business-type activities of the University and its
discretely presented component unit, collectively a component unit of the State of Illinois, as of
and for the year ended June 30, 2011, and have issued our report thereon dated February 8,
2012. Our report was modified to include a reference to other auditors. Other auditors
audited the financial statements of the Unive,rsity's discretely presented component unit, as
described in our report on the University's financial statements. Our audit was performed for
the purpose of forming opinions on the financial statements that collectively comprise the
University's basic financial statements. The accompanying schedule of expenditures of federal
awards is presented for purposes of additional analysis as required by OMB Circular A-133 and
is not a required part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and, in our opinion,
is fairly stated in all material respects, in relation to the basic financial statements taken as a
whole.
The University's responses to the findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. We did not audit the University's
responses and, accordingly, we express no opinion on the responses.
This report is intended solely for the information and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, the Board of Trustees and the
University's management, and federal awarding agencies and pass-through entities and is not
intended to be and should not be used by anyone other than these specified parties.
e. c. ~ &. c~/ 1-\.f
Chicago, Illinois
March 14, 2012, except for the Schedule of Expenditures of Federal Awards and the
related notes, as to which the date is February 8, 2012.
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Summary of Auditors’ Results
Financial Statements
Type of auditors’ report issued: Unqualified
Internal control over financial reporting:
 Material weakness(es) identified? Yes  No
 Significant deficiency(ies) identified that are not
considered to be material weakness(es)?  Yes None Reported
 Noncompliance material to financial statements noted? Yes  No
Federal Awards
Internal control over major programs:
 Material weakness(es) identified? Yes  No
 Significant deficiency(ies) identified?  Yes None Reported
Type of auditors’ report issued on compliance
for major programs: Unqualified
Any audit findings disclosed that are required to be
reported in accordance with Section 510(a) of
Circular A-133?  Yes No
Identification of major programs:
CFDA Numbers Name of Federal Program or Cluster
Student Financial Assistance Cluster:
84.007 Federal Supplemental Educational Opportunity Grants
84.033 Federal Work-Study Program
84.038 Federal Perkins Loan Program
84.063 Federal Pell Grant Program
84.268 Federal Direct Student Loans
84.375 Academic Competitiveness Grants (ACG)
84.376 National Science and Mathematics Access to Retain Talent
(SMART) Grants
84.379 Teacher Education Assistance for College and Higher Education
Grants (TEACH Grants)
14
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Summary of Auditors’ Results (Continued)
Federal Awards (Continued)
Identification of major programs (continued):
CFDA Numbers Name of Federal Program or Cluster
Research and Development Cluster:
10.001 Agricultural Research_Basic and Applied Research
10.310 Agriculture and Food Research Initiative (AFRI)
10.215 Sustainable Agriculture Research Education
11.307 Economic Adjustment Assistance
12.431 Basic Scientific Research
15.650 Research Grants (Generic)
15.608 Fish and Wildlife Management Assistance
15.615 Cooperative Endangered Species Conservation Fund
47.050 Geosciences
47.074 Biological Sciences
47.075 Social, Behavioral, and Economic Sciences
47.082 ARRA - Trans-NSF Recovery Act Research Support
66.460 Nonpoint Source Implementation Grants
66.605 Performance Partnership Grants
84.048 Career and Technical Education -- Basic Grants to States
84.133E National Institute on Disability and Rehabilitation Research
93.395 Cancer Treatment Research
93.701 ARRA - Trans-NIH Recovery Act Research Support
20.509 Formula Grants for Other Than Urbanized Areas
84.195N Bilingual Education Professional Development
84.002 Adult Education - Basic Grants to States
84.173 Special Education_Preschool Grants
93.558 Temporary Assistance for Needy Families
97.067 Homeland Security Grant Program
Dollar threshold used to distinguish between
Type A and B programs: $300,000
Auditee qualified as low-risk auditee? Yes  No
15
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - Government Auditing Standards
Finding No. 11-1 - Inadequate Controls Over University Property and Equipment
Western Illinois University (University) has not established adequate internal controls over
property records to ensure proper calculation and recording of depreciation expense. In
addition, the management control created to account for missing property and review the missing
property report was not operating as intended.
During our review of capital asset depreciation, we noted 4 of 29 (14%) assets examined
were not accurately depreciated during FY 2011. Through further examination of all capital
assets, it was determined that depreciation expenses on capital assets with additional
capitalized costs in a fiscal year subsequent to the capitalized fiscal year were incorrectly
calculated. To calculate depreciation expenses on these assets, the University’s fixed assets
inventory system rounds down the assets’ useful lives by omitting the last two decimal digits
(i.e., asset net useful life of 6.67 years was replaced by 6 years). Thus, useful lives of these
assets were shortened which resulted in net overstatement of the University’s depreciation
expense and corresponding accumulated depreciation by approximately $71,858 in FY 2011.
During our review of the FY 2011 annual inventory certification submitted to the Department
of Central Management Services (DCMS), we noted the University reported 459 missing
inventory items totaling $811,467. Details showed that 184 items totaling $456,703 are
under the custodianship of the one Department (Department) and represent 62% of the
Department’s total inventory accountability totaling $736,530 as of fiscal year end. As of
June 30, 2011, the reported missing items were still included in the fixed assets inventory
because the University generally reflects deletion of the missing property from the fixed
assets inventory system two years after it was reported or discovered missing. Upon
auditors’ notification, the Department further investigated the missing items and found 99
items totaling $293,898. Subsequently, we performed a physical observation of the
equipment for this Department and found two of 25 (8%) items from the revised list of
missing equipment. These items were located in a room different from the location indicated
in the property accounting records.
The University calculates its depreciation using the straight line depreciation method by
spreading the cost evenly over the life of the fixed assets. According to University policy,
additional capitalized costs are depreciated over the remaining useful life of the main asset.
Government Accounting Standards Board (GASB) Statement No. 34 paragraph 22, states
that depreciation expense should be measured by allocating the net cost of depreciable assets
(historical cost less estimated salvage value) over their estimated useful lives in a systematic
and rational manner.
16
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - Government Auditing Standards (Continued)
Finding No. 11-1 - Inadequate Controls Over University Property and Equipment
(Continued)
The University policy also states that equipment belonging to the University is controlled
under the provisions of the State Property Control Act and is subject to the regulations of the
DCMS as “State-owned property.” Each department’s Director, considered as the inventory
custodian, is delegated the responsibility of maintaining proper accountability and control of
the equipment within their jurisdiction. Once the annual physical inventory is complete and
the Inventory Certification Discrepancy Report has been completed and signed, each Vice
President is asked to review a listing of missing items within their area and determine
whether to continue searching for the missing equipment, request a Public Safety
investigation to determine if the equipment was stolen or request Business Services to
remove the item from the departmental inventory. If the equipment is later located, it is
reinstated on the departmental inventory listing.
The Illinois Administrative Code (Title 44, Subtitle D, Chapter 1, Part 5010.400) requires
agencies to adjust property records within 30 days of acquisition, change or deletion of
equipment items.
University management stated that the error in the computation of depreciation expense is
due to the University’s fixed assets inventory system’s limitation in calculating depreciation
of capital assets with additional capitalized costs. WIU management also stated that a former
employee did not keep track of the inventory, equipment location transfers, and did not fulfill
the duties of the job as outlined. Further, some items listed as “missing” on the inventory list
are actually items that have lost their inventory control tags or are very old pieces of
equipment that have been cannibalized for parts or the items broke/stopped working and
were thrown away. In either case these items were not properly reported to Property
Accounting and thus, were inaccurately reported to DCMS as discrepancies.
Failure to properly calculate depreciation may result in the overstatement or understatement
of capital asset records and an inaccurate presentation of the University’s financial
statements. The lack of thorough inventories and delay in the investigation of missing
equipment increases the potential for possible loss or theft of State property. Inaccurate
property reporting reduces the reliability of University capital asset information. (Finding
Code No. 11-1)
17
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - Government Auditing Standards (Continued)
Finding No. 11-1 - Inadequate Controls Over University Property and Equipment
(Continued)
Recommendation
We recommend the University make the necessary adjustments to its capital asset
depreciation calculations to ensure all assets have the correct depreciation amounts and book
values at year end. In addition, we recommend the University work with its system
administrators to update the values in the fixed assets inventory system so that these
miscalculations do not continue in the future. We also recommend the University ensure that
oversight review is being performed on results of the annual physical inventory by custodial
departments and responsible Vice Presidents to assure inventory accuracy and prompt
resolution of inventory discrepancies.
University Response
The University agrees with the finding. The University will review existing procedures in
these areas and take corrective action to address the recommendations in the finding.
18
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - Government Auditing Standards (Continued)
Finding No. 11-2 - Inaccurate Accounting for Participation in Public Entity Risk Pool
Western Illinois University (University) did not properly account for its participation in the
State Universities Risk Management Association (SURMA) in accordance with accounting
principles generally accepted in the United States of America (GAAP).
The University has been a member of SURMA since its inception on February 1, 1996.
SURMA was created as a successor to the Board of Governors’ Self-Insurance Liability
Program. SURMA was initially funded by the surplus of the Board of Governors’ Self-
Insurance Liability Program upon its termination (treated as capital contributions of the
original participants), as well as additional contributions which were assessed to the
members. The SURMA members are Chicago State University, Eastern Illinois University,
Governors State University, Northeastern Illinois University, and Western Illinois University.
Each university has an employee appointed as a member to the SURMA Board, which meets
on a quarterly basis.
While all past payments made by the University to SURMA have been recorded to prepaid
insurance and amortized over the term of the current insurance policies, the capital
contributions to SURMA have not been recorded as an asset on the books of the University.
The University’s share of the excess capital contributions to SURMA was $667,071 and
$700,503 as of June 30, 2011 and June 30, 2010, respectively. SURMA’s bylaws state that
in the event of termination, if there are surplus funds available, such surplus shall be
distributed to the then-existing members in the same proportion that each existing member’s
contributions over the immediately previous five years were in proportion to the
contributions of all members. Similar provisions also apply to members who elect to
withdraw (if approved by the remaining participants) prior to the termination of SURMA.
An adjusting entry was proposed to the University to correct the error. The University did
not record the entry as it was considered immaterial to the financial statements.
Further, we noted the University did not adequately monitor SURMA to ensure SURMA
underwent an annual audit in FY 2010, to provide assurance as to the accuracy of financial
information required to be reported by the University.
Governmental Accounting Standards Board (GASB) Interpretation No. 4 - Accounting and
Financial Reporting for Capitalization Contributions to Public Entity Risk Pools was issued
in February 1996 with an effective date of periods beginning after June 15, 1996. It states,
“A capitalization contribution to a public entity risk pool with transfer or pooling of risk
should be reported as a deposit if it is probable that the contribution will be returned to the
entity upon either the dissolution of or approved withdrawal from the pool. An entity’s
determination that a return of the contribution is probable should be based on the provisions
19
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - Government Auditing Standards (Continued)
Finding No. 11-2 - Inaccurate Accounting for Participation in Public Entity Risk Pool
(Continued)
of the pooling agreement and an evaluation of the pool’s financial capacity to return the
contribution.”
Further, the Fiscal Control and Internal Auditing Act (30 ILCS 10/3001) requires the
University to establish and maintain a system of fiscal and administrative controls to ensure
resources are properly recorded and accounted for to permit the preparation of accounts,
reliable financial and statistical reports, and to maintain accountability over the State’s
resources.
University management stated they do not believe SURMA would approve a withdrawal
from the pool due to the effect it would have on the remaining member’s contribution rates.
Management believes the requirement of GASB interpretation No. 4 to report contributions
as deposits will therefore not apply. Management further stated they will not record the
proposed adjustment since the amount is immaterial to the financial statements.
Failure to adequately monitor SURMA’s activities and properly account for the University’s
participation in SURMA resulted in an understatement of assets on the University’s financial
statements. (Finding Code No. 11-2)
Recommendation
We recommend the University implement controls to monitor the activities of SURMA and
properly account for its participation in SURMA in accordance with GAAP.
University Response
The University agrees with the finding. The University will implement controls to monitor
the activities of SURMA and properly account for its participation in SURMA in accordance
with GAAP.
20
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - Federal Compliance
Finding No. 11-3 - Inaccurate Pell Grants Awarded
Federal Agency: U. S. Department of Education
Program Name: Federal Pell Grant Program
CFDA#: 84.063
Questioned Costs: None
Federal Pell grants awarded to 2 of 40 (5%) students tested were incorrect. In these instances,
the Pell award should have been $5,550 based on the students’ expected family contribution
(EFC) and cost of attendance from the payment and disbursement schedules published by the
U.S. Department of Education (ED). Western Illinois University (University) only awarded
$5,350, thus each student was under awarded by $200. After notification by the auditors, the
University corrected the Pell awards of the students.
Code of Federal Regulations (34 CFR 690.62 (a)) requires that the amount of a student’s Pell
grant for an academic year should be based upon the payment and disbursement schedules
published by the Secretary of ED for each award year.
University management stated that the University had already begun awarding Pell grants for
award year 2010-2011 when new Federal Pell Grant Payment and Disbursement Schedules
were released by the ED in January 2010. All previous awards were updated to reflect the new
Pell disbursement amounts except for these students. All incorrect Pell grants awarded have
been corrected.
Inaccurate Pell grant award calculation may result in either over or under award to eligible
students and noncompliance with the Code of Federal Regulations. (Finding Code No. 11-3)
Recommendation
We recommend the University provide adequate oversight in ensuring that the Pell grants
awarded to students are correct. Award calculation should be based on the final Pell
Disbursement Schedule published by the ED during the award year.
University Response
The University agrees with the finding. The University will improve procedures to ensure
the correct amount is awarded to students for Pell grants.
21
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - Federal Compliance (Continued)
Finding No. 11-4 - Inadequate Controls Over Reporting of Student Data
Federal Agency: U. S. Department of Education
Program Name: Federal Pell Grant Program
CFDA#: 84.063
Questioned Costs: None
Federal Agency: U. S. Department of Education
Program Name: Federal Perkins Loan Program
CFDA#: 84.038
Questioned Costs: None
Western Illinois University (University) did not have adequate controls over reporting of
disbursement dates to the Common Origination and Disbursement (COD) system and student
loan information to National Student Loan Data System (NSLDS).
During our review of Student Financial Aid Cluster, we noted the following:
 Pell disbursement dates reported to the COD system were not accurate. During Spring 2011
term, Pell disbursement dates reported to the COD system for 36 of 40 (90%) students tested
differed by 10 days from the disbursement dates per University records. In addition, Pell
disbursements during the Fall 2010 term for 4 of 40 (10%) students tested, were reported
late to the COD system. Pell disbursement dates were reported 38 to 53 days after the 30
days grace period.
 The Federal Perkins Loan information for one of 23 (4%) students tested was not reported to
NSLDS. The student had no Federal Perkins loan history/record in the NSLDS website.
For FY 2011, the University disbursed a total of $5,354 in three payments, in April 2010,
December 2010 and January 2011. The University attempted to report these disbursements
via an electronic batch data transmission to NSLDS but all attempts were rejected. The loan
data of the student was rejected because of conflicting personal information (student’s first
name) stored between NSLDS and WIU’s system. The University failed to report the error
to NSLDS and conduct necessary investigation to resolve the error timely.
The federal regulation (34 CFR 668.164(a)) states that federal Pell grants are disbursed on the
date the institution credits a student’s account at the institution or pays a student or parent
directly, even if an institution uses its own funds in advance or receives program funds from the
U.S. Department of Education (ED).
22
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - Federal Compliance (Continued)
Finding No. 11-4 - Inadequate Controls Over Reporting of Student Data (Continued)
Per Office of Management and Budget (OMB) No. 1845-0039, institutions must report student
payment data within 30 calendar days after the school makes the payment; or becomes aware of
the need to make an adjustment to previously reported student payment data or expected student
payment data.
OMB No. 1845-0035 requires educational institutions to enter data in NSLDS, the national
database of information about loans and other financial aid awarded to students under Title IV.
Federal Perkins Loan is one of the Title IV grant programs of ED. NSLDS also requires that
errors in the transmission of loan information be corrected by the reporting institution within a
reasonable timeframe.
University management stated that an incorrect disbursement date was erroneously provided
to the programmer for Pell Grants disbursed for the Spring semester. After notification by
the auditors, all incorrect dates were corrected in the COD system. A reconciliation to
identify unreported disbursements in the COD system within 30 calendar days was not
performed in September 2010 for the Fall term. This caused some students to be overlooked
in the batch submission. Since that time, a monthly reconciliation has been performed to
identify unreported disbursements. University management also stated that a suffix on the
student’s name caused the last name to be incorrect in electronic batch reporting.
Management stated this error was corrected subsequent to our testing.
Reporting accurate information to NSLDS is critical for effective administration of the Title IV
student loan programs. Reporting inaccurate and late loan disbursement information to the
COD system results in noncompliance with OMB No. 1845-0039 and federal regulations.
(Finding Code No. 11-4)
Recommendation
We recommend the University ensure its financial aid system provides accurate and timely
student information as the source for COD system and NSLDS reports. We also recommend
the Financial Aid Office provide adequate oversight by reviewing the reports before submission.
University Response
The University agrees with the finding. Programming changes were implemented to ensure the
financial aid system provides accurate and timely student information. Biweekly reconciliations
were instituted to identify disbursements missed by the program within the 30-day deadline.
23
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - State Compliance
Finding No. 11-5 - Employee Time Sheets Were Not Adequate
Western Illinois University (University) did not require all employees to submit timesheets as
required by the State Officials and Employees Ethics Act (Act).
The University implemented a system which allows all administrative, professional and
faculty employees to submit time sheets on a periodic basis. During our testing of payroll,
we selected 40 employees and noted that five graduate assistant employees did not file
timesheets as required by the Act. Based upon inquiry of the University management, there
is currently no formal time reporting required for graduate assistants other than what
informal time reporting may take place within hiring departments. Graduate assistants are
not eligible for vacation, sick or other types of leave. The University has 506 Graduate
Assistants in FY 2011 which represents 18% of the total University employees.
The Act (5 ILCS 430/5-5(c)) requires the Illinois Board of Higher Education (IBHE), with
respect to State employees of public universities, to adopt and implement personnel policies.
The Act states, “The policies shall require State employees to periodically submit time sheets
documenting the time spent each day on official State business to the nearest quarter hour.”
University management stated that there was no policy in place to require positive timekeeping
for graduate assistant employees during FY 2011. Management stated the positive time
reporting system will be fully implemented for all University employees in FY 2012.
Failure to follow the time reporting requirements of the Act for all employees results in
noncompliance with the statute and a lack of accountability for graduate assistants. (Finding
Code Nos. 11-5, 10-3, 09-3, 08-2, 07-3, 06-1, 05-2)
Recommendation
We recommend the University implement procedures to ensure all employees submit time
sheets as required by the Act.
University Response
The University agrees with the finding. Positive time reporting will be fully implemented for all
University employees in the next fiscal year.
24
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - State Compliance (Continued)
Finding No. 11-6 - Noncompliance with Required Contracting Procedures
Western Illinois University (University) has not established adequate internal controls over
contracts and leases to ensure they contained all necessary provisions, were properly
executed prior to performance, and were filed with the State of Illinois, Office of the
Comptroller (Comptroller) on a timely basis.
During our review of real estate leases and contracts executed during the year ended June 30,
2011, we noted the following:
 A real estate lease disclosure form was not prepared for one of three (33%) real
property contracts tested. The real property lease was for office space rental at an
annual rate of $37,550. In addition, the real estate lease disclosure form for one of
three (33%) real estate contracts tested was completed 153 days after the
commencement of the lease term. The real property lease was for parking space
rental at an annual rate of $7,800.
 Two of three (67%) real property contracts tested were executed after the lease term
began. The lease execution dates ranged from 19 days to 162 days after the
beginning of the lease term. These real property leases pertained to office and
parking space rental agreements at an annual rate of $37,550 and $7,800,
respectively.
 One of 40 (3%) contracts tested was executed subsequent to the contract start date. This
contract pertains to services rendered for scoreboard replacement amounting to $36,985
and was executed 4 days after the beginning of the contract start date. In addition, this
contract did not include the required State Board of Elections certification.
 One of 22 (5%) large contracts tested did not include a “Memorandum of Approval”
(MOA) as required, signed by the University President, Legal Counsel and Vice
President for Administrative Services (VPAS). This contract pertains to procurement
of computer software and hardware items for resale amounting to $500,000.
 Twenty of 22 (91%) large contracts tested were filed with the Comptroller prior to
completion of MOAs. MOAs were completed one to 496 days after filing of contracts.
The contract amounts ranged from $253,000 to $3,572,000. In addition, a total of
$8,037 of authorizations for payment were filed with the Comptroller for one of 20
contracts prior to completion of the required MOA. The payment pertained to coal
purchases.
25
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - State Compliance (Continued)
Finding No. 11-6 - Noncompliance With Required Contracting Procedures (Continued)
Disclosure of the identity of owners and trust beneficiaries required by the Public Officer
Prohibited Activities Act (50 ILCS 105/3.1) must be completed in writing prior to the agency
entering a lease.
The Contract Procedures of the University Policy Manual state that contracts must be submitted
for signature prior to the effective date of the agreement. Good business practice requires all
contracts and leases to be fully executed prior to the beginning of the lease term or the
commencement of services.
The Illinois Procurement Code (30 ILCS 500/20-160) states that every bid submitted to and
every contract executed by the State shall contain a certification by the bidder or contractor that
either the bidder or contractor is not required to register as a business entity with the State Board
of Elections pursuant to this Section or the bidder or contractor has registered as a business
entity with the State Board of Elections and acknowledges a continuing duty to update the
registration.
The State Finance Act (30 ILCS 105/9.02) states that any new contract, contract renewal, order
against a master contract, or any contract amendment of $250,000 or more in a fiscal year, shall
be signed or approved in writing by the agency’s chief executive officer, chief legal counsel and
chief fiscal officer. No contract, contract renewal, order against a master contract, or any
contract amendment of $250,000 or more in a fiscal year may be filed with the Comptroller, nor
may any authorization for payment pursuant to such documents be filed with the Comptroller, if
the required signatures or approvals are lacking.
University management stated the noncompletion of the required disclosure form was due to
oversight. Management stated the delay in completion of the disclosure form and untimely
execution of contracts/leases was due to late submissions by the using department and the
lessor/vendor. Management stated the contract lacking the required MOA and the State
Board of Elections certification was due to an oversight in contract review and a delay in
obtaining signatures. Management stated the MOA was not included with the contracts due
to a lack of clarity as to whether or not MOAs were needed for certain purchases.
26
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - State Compliance (Continued)
Finding No. 11-6 - Noncompliance With Required Contracting Procedures (Continued)
Failure to complete a real estate disclosure form prior to the University entering a lease
results in noncompliance with the Public Officers Prohibited Activities Act and increases the
risk that a potential conflict of interest may not be detected timely. In addition, failure to
fully execute a contract or real estate lease prior to the commencement of services or lease
term, leaves the University vulnerable to unnecessary liabilities and potential legal issues.
Further, filing contracts with the Comptroller prior to completion of required MOA and
failure to include all appropriate signatures and certifications in contracts and leases, result in
noncompliance with State statutes and reduced accountability. (Finding Code Nos. 11-6 and
10-4)
Recommendation
We recommend the University establish appropriate procedures to ensure that all contracts
and leases and related disclosure forms are properly completed, approved and executed prior
to the start of the services or lease terms.
University Response
The University agrees with the finding. The University will take the necessary corrective
action to address the recommendation in the finding.
27
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - State Compliance (Continued)
Finding No. 11-7 - Untimely Approval and Payment of Vouchers
Western Illinois University (University) did not timely process vouchers and pay required
interest.
We tested 66 vouchers from State appropriated funds totaling $499,785 and noted the
following:
 The University did not approve for payment vendor interest charges totaling $10,078
on 42 of 42 (100%) vouchers tested where interest charges were required to be
automatically calculated and paid by the University. In these instances, the invoices
were not paid by the Illinois Office of the Comptroller within 60 days of receipt.
 Seven of 66 (11%) vouchers tested totaling $68,629 were approved for payment 1 to
33 days late.
 Eleven of 66 (17%) vouchers tested totaling $90,051 were not stamped received by
the requesting department. In these cases, invoice date was used to determine timely
payment.
The Illinois Administrative Code (74 Ill. Adm. Code 900.70) requires the University to
review each vendor’s invoice and either deny the bill in whole or in part, ask for more
information necessary to review the bill; or approve the voucher in whole or in part, within
30 days after the receipt of the bill. In addition, the State Prompt Payment Act (30 ILCS
540/3-2) requires State agencies to determine whether interest is due and to automatically
pay the interest to the appropriate vendor when payment is not issued within 60 days after
receipt of a proper bill. The University is responsible for paying interest amounting to $50 or
more to the appropriate vendor. Effective July 1, 2010, Public Act 96-959 requires interest
less than $50 shall not be paid but shall be accrued until all interest due the vendor for all
similar warrants exceeds $50, at which time the accrued interest shall be payable and interest
will begin accruing again, except that interest accrued as of the end of the fiscal year that
does not exceed $50 shall be payable at that time. Amounts due for interest should be
measured and paid in accordance with the law that was in effect on the day the State of
Illinois issued payment.
The Illinois Administrative Code (74 Ill. Adm. Code 900.30) requires the University to
maintain written or electronic records reflecting the date or dates on which the proper bill
was received and approval for payment of the bill was made.
28
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Current Findings - State Compliance (Continued)
Finding No. 11-7 - Untimely Approval and Payment of Vouchers (Continued)
Regarding unpaid interest charges, University management stated that the majority of
voucher approvals were submitted to the Comptroller within 30 days, but payment was
delayed at the Comptroller’s Office. Management stated that they did not require University
departments to date stamp invoices when received. Management did not provide the
underlying cause for the University’s untimely approval of seven vouchers.
Late approval of vouchers, failure to approve payment of required interest, and inadequate
documentation of invoice receipt and voucher payment date result in noncompliance with the
Illinois Administrative Code and State Prompt Payment Act. Untimely processing and
approval of vouchers may result in the University incurring unnecessary interest charges.
(Finding Code Nos. 11-7, 10-5 and 09-5)
Recommendation
We recommend the University strengthen its controls over voucher processing to ensure
documentation of invoice receipt and voucher payment date and timely approval of vouchers,
including interest as required.
University Response
The University agrees with the finding. Interest is not calculated and vouchered on late
payments in accordance with the law. The University does not agree that it should be
responsible for the calculation and payment of vouchers for interest as it is the Illinois Office
of the Comptroller who is primarily responsible for the late payments. The University
complied, in most instances, with the only portion of the law under its control after the
General Assembly formally approved the University’s appropriations. Seven of the 66
vouchers cited were approved outside the 30-day window allotted to the University by law.
It is likely that no interest would have been due to vendors had the Comptroller’s Office paid
invoice vouchers in a timely manner. The University believes it is inappropriate to impose
interest penalties for processes that are outside its control. Furthermore, it is the University’s
belief that the original intent of the law was to ensure that State agencies make payments to
vendors in a timely manner. It appears that the law has had the undesirable effect of
penalizing State agencies for the State’s cash flow crisis.
29
State of Illinois
Western Illinois University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Prior Findings Not Repeated
A. Inadequate Controls Over Acquisition of Public TV Station
In the prior examination, the University did not perform adequate due diligence regarding
the acquisition of a public television station. Errors were made in recording the value of
capital assets and there were inadequate controls over physical inventory and records of
fixed assets. (Finding Code No. 10-1)
Status: Not repeated
In the current examination, the University had no business acquisition transactions.
Errors noted in recording related transactions were corrected, physical inventory was
properly conducted and equipment records were accurately maintained and updated.
B. Inadequate Process for Evaluating the Estimated Allowance for Doubtful Accounts
Receivable
In the prior examination, the University did not have an adequate process for evaluating
the estimated allowance for doubtful accounts. (Finding Code No. 10-2)
Status: Not repeated
In the current examination, the University developed a process to evaluate the
reasonableness of the accounting estimate.
C. Weaknesses Regarding the Security and Control of Confidential Information
In the prior examination, the University continued to have weaknesses in regards to the
security and control of confidential information. (Finding Code No. 10-6)
Status: Partially implemented
During the current examination, we found the University had established a Sensitive
Data Task Force and had started conducting a comprehensive risk assessment and
survey of the University’s sensitive data usage to identify and secure confidential
information.
30
State of Illinois
Western Illinois University
Supplementary Information for State Compliance Purposes
For the Year Ended June 30, 2011
Summary
Supplementary Information for State Compliance Purposes presented in this section of the
report includes the following:
 Fiscal Schedules and Analysis
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
Schedule of Net Appropriations, Expenditures and Lapsed Balances
Comparative Schedule of Net Appropriations, Expenditures and Lapsed Balances
Schedule of Changes in State Property
Comparative Schedule of Income Fund Revenues and Expenditures
Comparative Schedule of Cash, Cash Equivalents and Investments at Fair Value
Analysis of Significant Variations in Account Balances
Analysis of Significant Variations in Operating and Nonoperating
Revenues and Expenses
Analysis of Significant Lapse Period Spending
Analysis of Accounts Receivable
Summary of Indirect Cost Reimbursements:
Statement of Sources and Applications
Calculation Sheet for Indirect Cost Carry-Forward
Calculation of Current Excess Funds
Current Funds, Unrestricted, Other:
Balance Sheet by Entity
Statement of Revenues, Expenditures and Changes in Fund Balances by Entity
Auxiliary Enterprises and Activities, Financial Statements by Functional Entity
Auxiliary Enterprise Funds - Other:
Balance Sheet by Entity
Statement of Revenues, Expenditures and Changes in Fund Balances
by Entity
Auxiliary Enterprise Funds - Revenue Bonds:
Balance Sheet by Entity
Statement of Revenues, Expenditures and Changes in Fund Balances
by Entity
Plant Funds Statement of Changes in Fund Balances by Entity
31
State of Illinois
Western Illinois University
Supplementary Information for State Compliance Purposes
For the Year Ended June 30, 2011
Summary (Continued)
 Analysis of Operations
University Functions and Planning Program
Employment Statistics - Full-Time Equivalent (Unaudited)
Service Efforts and Accomplishments - Enrollment Statistics (Unaudited)
Schedule of Unrestricted Current Funds General Expenditures Per Full-Time
Equivalent Student as Reported to the Board of Higher Education
(Unaudited)
Comments on the Percentage of Total Expenditures Represented by
Administrative Costs
Comments on Certain Matters Pertaining to the University Guidelines
Summary of Western Illinois University Foundation Payments to the University
Analysis of Bookstore Operations (Unaudited)
University Accounting Entities and Related Sources of Revenues and Purposes
Schedules of Federal Expenditures, Nonfederal Expenses, and New Loans
Undergraduate Tuition and Fee Waivers (Unaudited)
Graduate Tuition and Fee Waivers (Unaudited)
Emergency Purchase
The accountants’ report that covers the Supplementary Information for State Compliance
Purposes presented in the Compliance Report Section states that it has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in the auditors’
opinion, except for that portion marked “unaudited,” on which they express no opinion, it is
fairly stated in all material respects in relation to the basic financial statements taken as a
whole.
32
State of Illinois
Western Illinois University
Schedule of Expenditures of Federal Awards
For the Period Ending June 30, 2011
CFDA Pass-Through/Contract FY 2011
Number Number Expenditures
STUDENT FINANCIAL ASSISTANCE CLUSTER:
DEPARTMENT OF EDUCATION
Federal Supplemental Education Opportunity Grants (M) 84.007 P007A101313 $ 423,536
Federal Work-Study Program (M) 84.033 P033A101313 715,874
Federal Perkins Loan Program (M) 84.038 P038A071313 2,352,347
Federal Pell Grant Program
Federal Pell - 2008-2009 (M) 84.063 P063P081391 (1,183)
Federal Pell - 2009-2010 (M) 84.063 P063P091391 21,279
Federal Pell - 2010-2011 (M) 84.063 P063P101391 17,304,039
Federal Direct Student Loans
Federal Direct Student Loans - FY10 (M) 84.268 P268K101391 206,763
Federal Direct Student Loans - FY11 (M) 84.268 P268K111391 73,782,823
Academic Competitiveness Grants (ACG)
ACG - 2009-2010 (M) 84.375 P375A091391 862
ACG - 2010-2011 (M) 84.375 P375A101391 550,008
National Science and Mathematics Access to Retain Talent
(SMART) Grants (M) 84.376 P376S101391 353,561
Teacher Education Assistance for College & Higher Education Grants
(TEACH Grants) (M) 84.379 P379T111391 85,000
Federal Grantor/Pass-Through Grantor
Program/Grant Title
TOTAL STUDENT FINANCIAL ASSISTANCE CLUSTER $ 95,794,909
RESEARCH AND DEVELOPMENT CLUSTER:
DEPARTMENT OF AGRICULTURE
Agricultural Research_Basic and Applied Research
Cuphea Development II (M) 10.001 583620-6-105 $ 1,491
Agriculture and Food Research Initiative (AFRI)
Undergraduate Training & Research in Plant Breeding (M) 10.310 2010-85117-20535 211,588
Sustainable Agriculture Research Education
Passed-Through University of Minnesota
Alternative Oilseeds for Sustainable, High-Quality Biodiesel (M) 10.215 H408626311 3,212
TOTAL DEPARTMENT OF AGRICULTURE $ 216,291
DEPARTMENT OF COMMERCE
Economic Adjustment Assistance
Local Technical Assistance Flood Impact and Recovery Study (M) 11.307 06-69-05607 $ 563
TOTAL DEPARTMENT OF COMMERCE $ 563
33
State of Illinois
Western Illinois University
Schedule of Expenditures of Federal Awards
For the Period Ending June 30, 2011
CFDA Pass-Through/Contract FY 2011
Number Number Expenditures
Federal Grantor/Pass-Through Grantor
Program/Grant Title
RESEARCH AND DEVELOPMENT CLUSTER: (Continued)
DEPARTMENT OF DEFENSE
Basic Scientific Research
Near Net Shape Manufacturing for Current &
Future Generation Armament Systems (M) 12.431 W15QKN-11-2-0008 $ 27,873
TOTAL DEPARTMENT OF DEFENSE $ 27,873
DEPARTMENT OF INTERIOR
Research Grants (Generic)
Genetic Relationships of Decurrent False Aster (M) 15.650 301818G092 $ 5,693
Seed Bank Composition (M) 15.650 301819J146 45
Spatial Distribution of Indiana Bat Habitats (M) 15.650 30181AG112 14,115
19,853
Fish and Wildlife Management Assistance
Passed-Through University of Illinois
Asian Carp and Water Productivity (M) 15.608 292613 17,318
Asian Carp and Water Productivity II (M) 15.608 P0484313 1,726
19,044
Cooperative Endangered Species Conservation Fund
Passed-Through Illinois Department of Natural Resources
Monitoring Fungal Communities and Occurrence of
White-Nose Bat Syndrome (M) 15.615 RC11E53RI 13,206
TOTAL DEPARTMENT OF INTERIOR $ 52,103
NATIONAL SCIENCE FOUNDATION
Geosciences
Biogenic Cave Carbonates (M) 47.050 EAR-0719710 $ 15,949
Biological Sciences
RUI: Deciphering Plant-Herbivore Interactions (M) 47.074 DBI-0820367 98,577
Dynamics of Plant-Soil Feedbacks in Changing Environments (M) 47.074 DEB-0919510 75,180
173,757
Social, Behavioral, and Economic Sciences
SGER: Resiliency of Agricultural Communities After the
2008 Mississippi Floods (M) 47.075 BCS-0900891 2,915
Trans-NSF Recovery Act Research Support
ARRA - RUI: Selective Oxidative Transformations Using
Water-Soluble Hypervalent Iodine Reagents (M) 47.082 CHE-0910565 62,437
TOTAL NATIONAL SCIENCE FOUNDATION $ 255,058
34
State of Illinois
Western Illinois University
Schedule of Expenditures of Federal Awards
For the Period Ending June 30, 2011
CFDA Pass-Through/Contract FY 2011
Number Number Expenditures
Federal Grantor/Pass-Through Grantor
Program/Grant Title
RESEARCH AND DEVELOPMENT CLUSTER: (Continued)
ENVIRONMENTAL PROTECTION AGENCY
Nonpoint Source Implementation Grants
Passed-Through McDonough County Soil and Water Conservation District
Soil Phosphorus Study of Selected Spring Lake Erosion Areas (M) 66.460 None $ 1,171
Performance Partnership Grants
Passed-Through Illinois Environmental Protection Agency
Intensive Basin Survey Assistance 11-13 (M) 66.605 FW-11304 3,579
Intensive Basin Survey Assistance 09-10 (M) 66.605 FW-9305 3,283
Phytoplankton ID/Enumeration II (M) 66.605 WCF8301 5,624
12,486
TOTAL ENVIRONMENTAL PROTECTION AGENCY $ 13,657
DEPARTMENT OF EDUCATION
Career and Technical Education -- Basic Grants to States
Passed-Through Illinois State University
Illinois University Council for Career and Technical Education (M) 84.048 RSP10D282.04 $ 4,240
National Institute on Disability and Rehabilitation Research
Passed-Through University of Illinois Chicago
College & Community Fitness Facility Accessibility Research (M) 84.133E H133E070029 28,709
TOTAL DEPARTMENT OF EDUCATION $ 32,949
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Cancer Treatment Research
AREA Synthesis and Evaluation (M) 93.395 R15CA086933 $ 61,059
Phenoxazines Inhibition (M) 93.395 1R15CA115404 1,145
62,204
Trans-NIH Recovery Act Research Support
ARRA - AREA Synthesis & Evaluation Summer Research Experience (M) 93.701 3R15CA086933-04A2S1 55,877
TOTAL DEPARTMENT OF HEALTH AND HUMAN SERVICES $ 118,081
TOTAL RESEARCH AND DEVELOPMENT CLUSTER $ 716,575
OTHER PROGRAMS:
DEPARTMENT OF AGRICULTURE
Rural Community Development Initiative
Rural Community Development Initiative - Entrepreneurship 10.446 13-055-0370910458 $ 177,507
Rural Cooperative Development Grants
Rural Cooperative and Economic Development Center 10.771 None 44,570
TOTAL DEPARTMENT OF AGRICULTURE $ 222,077
35
State of Illinois
Western Illinois University
Schedule of Expenditures of Federal Awards
For the Period Ending June 30, 2011
CFDA Pass-Through/Contract FY 2011
Number Number Expenditures
Federal Grantor/Pass-Through Grantor
Program/Grant Title
OTHER PROGRAMS: (Continued)
DEPARTMENT OF COMMERCE
Public Telecommunications Facilities Planning and Construction
PTFP AC/Generator Project 11.550 07-01-N10004 $ 48,270
PTFP Antenna Project 11.550 07-01-N10005 2,790
TOTAL DEPARTMENT OF COMMERCE $ 51,060
DEPARTMENT OF DEFENSE
Procurement Technical Assistance For Business Firms
Passed-Through Illinois Department of Commerce and Economic Opportunity
IL Procurement Technical Assistance Center FY11 12.002 11-601104 $ 28,333
TOTAL DEPARTMENT OF DEFENSE $ 28,333
DEPARTMENT OF JUSTICE
Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and
Stalking on Campus
Relationship Violence Awareness and Prevention Initiative 16.525 2010WAAX0004 $ 48,714
Bulletproof Vest Partnership Program
Bulletproof Vest Replacement Program FY09 16.607 None 2,100
Bulletproof Vest Replacement Program FY10 16.607 None 1,950
4,050
Violence Against Women Formula Grants
Passed-Through Illinois Attorney General
Illinois Sexual Assault Nurse Examiner (SANE) Online Training Phase II 16.588 None 71,997
Grants to Encourage Arrest Policies and Enforcement of
Protection Orders Program
Passed-Through Illinois State's Attorney Appellate Prosecutor's Office
Grant to Encourage Arrest Policies & Enforcement of Protection
Orders Program 16.590 None 64,229
Enforcing Underage Drinking Laws Program
Passed-Through Eastern Illinois University
IDHS EUDL FY11 16.727 11-01 7,430
IDHS EUDL Equipment FY11 16.727 10-09 2,000
IDHS EUDL FY11 PART 2 16.727 11-06 7,500
16,930
TOTAL DEPARTMENT OF JUSTICE $ 205,920
36
State of Illinois
Western Illinois University
Schedule of Expenditures of Federal Awards
For the Period Ending June 30, 2011
CFDA Pass-Through/Contract FY 2011
Number Number Expenditures
Federal Grantor/Pass-Through Grantor
Program/Grant Title
OTHER PROGRAMS: (Continued)
DEPARTMENT OF LABOR
Incentive Grants - WIA Section 503
Passed-Through Illinois Community College Board
Transitions & Pathway Development Training 17.267 WIASCN01 $ 409
Career and Academic Readiness System FY11 17.267 CARS 11 25,082
TOTAL DEPARTMENT OF LABOR $ 25,491
DEPARTMENT OF TRANSPORTATION
Formula Grants for Other Than Urbanized Areas
Passed-Through Illinois Department of Transportation
Interagency Coordinating Council on Transportation (M) 20.509 IL-1818X025 $ 161,794
Program Coordination & Monitoring to Assist with the
Development & Implementation of ARRA Funded Capital Projects (M) 20.509 PROJ 10-15 121,002
Rural Transit Assistance Center (M) 20.509 IL-18-X026 342,589
625,385
Public Transportation Research
Passed-Through Illinois Department of Transportation
United We Ride / MY TRIP 20.514 IL-18-X026 19,666
TOTAL DEPARTMENT OF TRANSPORTATION $ 645,051
NATIONAL ENDOWMENT FOR THE HUMANITIES
Promotion of the Humanities_Public Programs
Lincoln: The Constitution and the Civil War 45.164 LL-50015-09 $ 2,042
Promotion of the Humanities_Federal/State Partnership
Passed-Through Humanities Iowa
Country School: One Room - One Nation 45.129 32-1-009 1,500
TOTAL NATIONAL ENDOWMENT FOR THE HUMANITIES $ 3,542
NATIONAL SCIENCE FOUNDATION
Education and Human Resources
Incorporating Usable Security Concepts into Computer
Science Curriculum 47.076 DUE-0736643 $ 47,550
TOTAL NATIONAL SCIENCE FOUNDATION $ 47,550
37
State of Illinois
Western Illinois University
Schedule of Expenditures of Federal Awards
For the Period Ending June 30, 2011
CFDA Pass-Through/Contract FY 2011
Number Number Expenditures
Federal Grantor/Pass-Through Grantor
Program/Grant Title
OTHER PROGRAMS: (Continued)
SMALL BUSINESS ADMINISTRATION
Congressional Grants
SBDC Congressional Grant 59.059 SBAHQ-10-I-0170 $ 12,336
Small Business Development Centers
Passed-Through Illinois Department of Commerce & Economic Opportunity
SBDC FY11 59.037 10-561127 80,000
SBDC CY11 59.037 11-181127 35,219
SBDC Disaster Assistance 59.037 09-182106 28,776
143,995
TOTAL SMALL BUSINESS ADMINISTRATION $ 156,331
ENVIRONMENTAL PROTECTION AGENCY
Water Pollution Control State, Interstate and Tribal Program Support
Passed-Through Illinois Environmental Protection Agency
Adapting IIRA Livestock GIS Resources for IEPA Use 66.419 FW-11302 $ 9,231
TOTAL ENVIRONMENTAL PROTECTION AGENCY $ 9,231
DEPARTMENT OF EDUCATION
Fund for the Improvement of Postsecondary Education
Transatlantic Dual Degree Program 84.116J P116J060007 $ 182,240
Passed-Through University of Vermont
Tri-National Competencies Across Borders and Corporate
Social Responsibility Program 84.116 GN88-17389 4,565
Passed-Through DePaul University
ACTIVE: Atlantis Collaborative Team Interaction Virtual Environment 84.116 500665SG056 14,935
Passed-Through Northern Michigan University
A Brazilian and U.S. Partnership for People, Planet & Profits:
Fostering Socially, Environmentally, & Economically
Sustainable Entrepreneurship 84.116M P116M08005 8,891
Passed-Through Western Kentucky University
Alliance to Enhance Entrepreneurial Impact to Stimulate
Economic Growth among Underserved Groups in N. America 84.116N WKURF 524549-09-01 9,149
219,780
Bilingual Education Professional Development
Project Estrella (M) 84.195N T195N070388 315,310
38
State of Illinois
Western Illinois University
Schedule of Expenditures of Federal Awards
For the Period Ending June 30, 2011
CFDA Pass-Through/Contract FY 2011
Number Number Expenditures
Federal Grantor/Pass-Through Grantor
Program/Grant Title
OTHER PROGRAMS: (Continued)
DEPARTMENT OF EDUCATION (Continued)
Adult Education - Basic Grants to States
Passed-Through Illinois Community College Board
Central Illinois Adult Education Service Center - 2010 (M) 84.002 AEL10006 1,226
Central Illinois Adult Education Service Center - 2011 (M) 84.002 AEL11006 363,401
GED Illinois Online - 2010 (M) 84.002A AEL10008 2,024
GED Illinois Online - 2011 (M) 84.002A AEL11008 239,645
Data and Information System Illinois (DAISI) - 2011 (M) 84.002A AEL11007 150,507
ICCB - Curriculum Publications Clearinghouse - 2010 (M) 84.002A AEL10002 (22)
ICCB - Curriculum Publications Clearinghouse - 2011 (M) 84.002A AEL11002 115,425
872,206
Special Education_Preschool Grants
Passed-Through Illinois State Board of Education
Illinois Starnet - 2010 (M) 84.173 10-4605-00-26-062-5440-51 1,228
Illinois Starnet - 2011 (M) 84.173 11-4605-00-26-062-5440-51 970,069
971,297
Fund for the Improvement of Education
Passed-Through Regional Office of Education
Disseminating Traditional American History to Teachers 84.215X U215X080056 33,587
Improving Teacher Quality State Grants
Passed-Through Illinois Board of Higher Education
Math & Science Teachers Training Teachers to Teach M+ST(4) 84.367 None 92,427
TOTAL DEPARTMENT OF EDUCATION $ 2,504,607
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Temporary Assistance for Needy Families
Passed-Through Illinois Department of Human Services
Low Income Degree Scholarship Program 09-10 (M) 93.558 81X6967000 $ 1,509
Low Income Degree Scholarship Program 10-11 (M) 93.558 81X6967000 559,715
561,224
Medical Library Assistance
Passed-Through University of Illinois-Chicago
Added Value Instructional Development and Distribution (A-VIDD) 93.879 TECH532 4,892
Building the Future with Community Health Information 93.879 N01-LM-6-3503 22,193
27,085
TOTAL DEPARTMENT OF HEALTH & HUMAN SERVICES $ 588,309
39
State of Illinois
Western Illinois University
Schedule of Expenditures of Federal Awards
For the Period Ending June 30, 2011
CFDA Pass-Through/Contract FY 2011
Number Number Expenditures
Federal Grantor/Pass-Through Grantor
Program/Grant Title
OTHER PROGRAMS: (Continued)
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
Volunteers in Service to America
Community Outreach Support 94.013 06VSNIL008 $ 18,829
AmeriCorps
Passed-Through Illinois Department of Human Services
AmeriCorps Project 09-12 94.006 11GL679000 130,158
ARRA - AmeriCorps Volunteer Project 94.006 11GK920000 5,544
135,702
TOTAL CORPORATION FOR NATIONAL AND COMMUNITY SERVICE $ 154,531
DEPARTMENT OF HOMELAND SECURITY
Degrees at a Distance Program
Degrees at a Distance Year 8 97.103 2009-RB-63-K145 $ 449
Degrees at a Distance Year 9 97.103 2010-RB-63-K145 8,046
8,495
Disaster Grants - Public Assistance (Presidentially Declared Disasters)
Passed-Through Illinois Emergency Management Agency
Snow Removal 97.036 FEMA-1960--109-0CF67-00 14,299
Homeland Security Grant Program
Passed-Through Illinois Law Enforcement Training
and Standards Board
Homeland Security Federal Fiscal Year 09 Funds (M) 97.067 None 303,962
Homeland Security Federal Fiscal Year 10 Funds (M) 97.067 None 174,646
478,608
TOTAL DEPARTMENT OF HOMELAND SECURITY $ 501,402
UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
USAID Development Partnerships for University Cooperation and Development
Passed-Through Association Liaison Office
Capacity Building in Southern Mexico - Phase II TIES Initiative 98.012 None $ 11,796
Capacity Building in Southern Mexico - Part II 98.012 AEG-A-00-05-00007-00 16,052
TOTAL UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT $ 27,848
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 101,682,767
(M) - Program was audited as a major program.
40
State of Illinois
Western Illinois University
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2011
NOTE 1 - BACKGROUND
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all
federal award programs of the University. The Schedule includes all federal awards received
directly from federal agencies as well as federal financial awards passed through other
agencies.
Summary of Significant Accounting Policies - Basis of Presentation
The schedule includes the federal awards activity of the University and is presented on the
accrual basis of accounting. The information in this schedule is presented in accordance with
the requirements of OMB Circular A-133 Audits of States, Local Governments and Non-
Profit Organizations. Therefore, some amounts presented in this schedule may differ from
amounts presented in, or used in the preparation of, the basic financial statements.
NOTE 2 - STUDENT LOAN PROGRAM ADMINISTERED BY THE UNIVERSITY
The University administered the following federal loan program during the year ended
June 30, 2011:
Perkins Loan Program CFDA No. 84.038
Outstanding balance, July 1, 2010 $ 2,392,939
Additions:
Interest income 54,854
Contributions 44,940
Total additions 99,794
Deductions:
Loans cancelled or written-off 39,631
Miscellaneous adjustment 2,814
Administrative charges 73,842
Collection agency fees, net 4
Litigation costs 24,095
Total deductions 140,386
Outstanding balance, June 30, 2011 $ 2,352,347
41
State of Illinois
Western Illinois University
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2011
NOTE 3 - SUBRECIPIENTS
Of the federal expenditures presented in the schedule, the University provided Federal
awards in the amount of $167,939 to subrecipients in 2011 as follows:
Grant/Program Title
CFDA
Number Reference Number
Provided To
Subrecipients
Biological Sciences 47.074 DBI-0820367 $ 32,026
National Institute on Disability and
Rehabilitation Research 84.133E H133E070029 25,976
Fund for the Improvement of
Postsecondary Education 84.116J P116J060007 88,410
AmeriCorps 94.006 11GL679000 20,532
USAID Development Partnerships for
University Cooperation and Development 98.012 AEG-A-00-05-00007-00 995
Total
$ 167,939
42
State of Illinois
Western Illinois University
Schedule of Net Appropriations, Expenditures and Lapsed Balances
Fourteen Months Ended August 31, 2011
Approximate Approximate
Expenditures Lapse Period Approximate Balances
Appropriations Through Expenditures Total Expenditures Lapsed
Net of Transfers June 30, 2011 (b) July 1 - August 31 (c) August 31, 2011 (c) August 31, 2011 (c)
Public Act No. 96-0956
GENERAL REVENUE FUND (001) (a)
Operational expenses $ 56,182,700 $ 56,182,700 $ - $ 56,182,700 $ -
STATE COLLEGES & UNIVERSITIES TRUST FUND (417) (a)
Scholarships - license plates 10,000 7,973 - 7,973 2,027
TOTALS $ 56,192,700 $ 56,190,673 $ - $ 56,190,673 $ 2,027
Notes:
(a) The information reflected in this schedule was taken from University’s records and has been reconciled to the State Comptroller's records.
(b) Expenditure amounts are vouchers approved for payment by the University and submitted to the State Comptroller for payment to vendors.
(c) Approximate lapse period expenditures do not include interest payments approved for payment by the University and submitted to the Comptroller for payment
after August.
43
State of Illinois
Western Illinois University
Comparative Schedule of Net Appropriations, Expenditures and Lapsed Balances
For the Years Ended June 30, 2011 and 2010
2011 2010
P.A. 96-0956 (b) P.A. 96-0114 (c)
GENERAL REVENUE FUND (001) (a)
Appropriations (net of transfers) $ 56,182,700 $ 59,919,600
Expenditures
Operational expenses 56,182,700 56,391,080
Personal Services - ARRA - 3,528,500
Total expenditures 56,182,700 59,919,580
Lapsed balances $ - $ 20
STATE COLLEGES AND UNIVERSITY TRUST (417) (a)
Appropriations (net of transfers) $ 10,000 $ 10,000
Expenditures
Scholarships 7,973 10,000
Lapsed balances $ 2,027 $ -
GRAND TOTAL, ALL FUNDS
Total appropriations (net of transfers) $ 56,192,700 $ 59,929,600
Total expenditures 56,190,673 59,929,580
Total lapsed balances $ 2,027 $ 20
Notes:
(a) The information reflected in this schedule was taken from University's records and has been reconciled to the
State Comptroller's records.
(b) FY 2011 expenditures and related lapsed balances do not reflect any interest payments approved for payment
by the University and submitted to the Comptroller for payment after August.
(c) FY 2010 amounts are final and include any interest payments made after August.
Fiscal Years
44
State of Illinois
Western Illinois University
Schedule of Changes in State Property
For the Year Ended June 30, 2011
Balance Balance
July 1, 2010 June 30, 2011
Non-depreciable capital assets:
Land and land improvements $ 3,221,432 $ 5 0,000 $ ( 35,000) $ - $ 3,236,432
Works of art and historical treasures 471,569 - - - 4 71,569
Construction in progress 15,715,051 26,777,548 - ( 12,368,186) 30,124,413
Total non-depreciable capital assets 19,408,052 26,827,548 (35,000) (12,368,186) 33,832,414
Depreciable capital assets:
Site improvements 28,638,147 - - - 2 8,638,147
Buildings and building improvements 233,180,970 1,556,361 - 1 2,368,186 247,105,517
Equipment 73,736,645 1,595,545 (1,331,582) - 7 4,000,608
Total depreciable capital assets 335,555,762 3,151,906 (1,331,582) 12,368,186 349,744,272
Less accumulated depreciation:
Site improvements 14,084,887 931,649 - - 1 5,016,536
Buildings and building improvements 121,351,849 6,587,508 - - 1 27,939,357
Equipment 65,592,974 2,749,068 (1,286,260) - 6 7,055,782
201,029,710 10,268,225 (1,286,260) - 2 10,011,675
Total depreciable capital assets, net 134,526,052 (7,116,319) (45,322) 12,368,186 139,732,597
Capital assets, net $ 153,934,104 $ 19,711,229 $ ( 80,322) $ - $ 173,565,011
Note: Data for this schedule included all accounting entities and was obtained from University records which have been reconciled to the basic
financial statements and to the property records submitted to the Office of the Comptroller.
Additions Retirements Transfers
45
State of Illinois
Western Illinois University
Comparative Schedule of Income Fund Revenues and Expenditures
For the Years Ended June 30, 2011 and 2010
2011 2010
INCOME FUND
REVENUES
Registration fees $ 66,768,995 $ 64,416,489
Other student charges 1,069,541 868,939
Fines 5,531 10,772
Finance charges 370,661 354,212
Interest 11,973 38,078
Extension 6,088,862 4,689,894
Other 475,629 297,059
Tuition and fees waived, faculty and staff ( 3,810,384) (3,919,221)
Tuition and fees waived, students ( 3,840,557) (3,726,638)
Total revenues 67,140,251 63,029,584
EXPENDITURES
Personal services 47,807,499 43,743,280
Contractual services 6,039,674 6,816,876
Travel 666,533 867,603
Commodities 1,228,329 1,277,014
Library books and equipment 2,014,820 2,185,866
Operation of automotive equipment 49,754 155,816
Telecommunications 221,273 303,054
Awards, grants, and matching funds 1,682,689 1,042,340
FICA/Medicare 604,025 598,779
Permanent improvements 165,845 238,121
Employment security 11,298 20,528
Total expenditures 60,491,739 57,249,277
EXCESS OF REVENUES OVER EXPENDITURES $ 6,648,512 $ 5,780,307
46
State of Illinois
Western Illinois University
Comparative Schedule of Cash, Cash Equivalents and Investments at Fair Value
June 30, 2011 and 2010
2011 2010
Cash and cash equivalents
Cash on hand $ 65,211 $ 80,684
Checking accounts
Morton Community Bank (non-interest bearing) 115,324 237,786
Illinois Funds (2011, 0.116%; 2010, 0.129%) 51,716,267 40,570,412
Certificates of deposit
Morton Community Bank (2011, 0.350%; 2010, 0.700%) 3,005,375 3,000,000
Total cash and cash equivalents 54,902,177 43,888,882
Investments
Certificates of deposit
Morton Community Bank (2011, 0.400-1.050%; 2010, 1.000-1.250%) 25,000,000 7,000,000
First Bankers Trust Co. (2011, not applicable; 2010, 0.650-0.750%) - 3,000,205
First State Bank (2011, 0.650-0.900%; 2010, not applicable) 3,004,685 -
Total investments 28,004,685 10,000,205
Total cash and cash equivalents and investments $ 82,906,862 $ 53,889,087
47
State of Illinois
Western Illinois University
Analysis of Significant Variations in Account Balances
For the Year Ended June 30, 2011
A comparative schedule of significant variations in account balances (at least $200,000 and
20% of the previous year) for the fiscal years ended June 30, 2011 and June 30, 2010 are shown
below:
FISCAL YEAR ENDED
JUNE 30,
INCREASE
(DECREASE)
ACCOUNTS 2011 2010 AMOUNT %
Cash and cash equivalents $ 54,825,938 $ 43,706,204 $ 11,119,734 25%
Investments, current 28,004,685 10,000,205 18,004,480 180%
Due from primary government 25,359,680 17,925,991 7,433,689 41%
Other assets, noncurrent 1,775,501 1,053,952 721,549 68%
Accounts payable and
accrued liabilities 5,095,763 2,791,624 2,304,139 83%
Other liabilities, current 1,355,662 758,808 596,854 79%
Revenue bonds payable, current 2,694,602 4,077,680 (1,383,078) (34%)
Certificates of participation,
current 1,484,943 838,081 646,862 77%
Revenue bonds payable,
noncurrent 54,290,293 31,474,896 22,815,397 72%
Certificates of participation,
noncurrent 30,470,171 20,172,555 10,297,616 51%
Other obligations, noncurrent - 224,175 (224,175) (100%)
Unrestricted net assets 40,742,082 31,949,730 8,792,352 28%
48
State of Illinois
Western Illinois University
Analysis of Significant Variations in Account Balances (Continued)
For the Year Ended June 30, 2011
University management provided the following explanations for the significant variations
identified above.
Cash and cash equivalents
The increase in cash and cash equivalents is due to funds held by the University from unspent
debt proceeds for current capital projects.
Investments, current
The increase in investments, current, is due to additional funds available for investment from
the issuance of the Series 2011 Certificates of Participation and Series 2010 Revenue Bonds
Payable by the University during fiscal year 2011.
Due from primary government
The increase in due from primary government is due to delays in receipt of State appropriations
for fiscal year 2011 expenditures of the University.
Other assets, noncurrent
The increase in other assets, noncurrent, is due to the issuance costs related to the Series 2011
Certificates of Participation and the Series 2010 Revenue Bonds Payable. Issuance costs are
classified as an asset and amortized over the number of years in the repayment schedule.
Accounts payable and accrued liabilities
The increase in accounts payable and accrued liabilities is primarily due to the timing of the
payments for vendor invoices during the fiscal year end. Also, the increase is due to recognition
of retention fees on capital projects at year end because of new constructions projects which
began in fiscal year 2011 and were funded by new debt issuances.
Other liabilities, current
The increase in other liabilities, current, is attributable to the increase in interest payable for new
debt issued during fiscal year 2011.
Revenue bonds payable, current
The decrease in revenue bonds payable, current, reflects a decrease in the required principal
payments in fiscal year 2012 on Series 2005 Revenue Bonds Payable.
49
State of Illinois
Western Illinois University
Analysis of Significant Variations in Account Balances (Continued)
For the Year Ended June 30, 2011
Certificates of participation, current
The increase in certificates of participation, current, is due to an increase in required principal
payments in fiscal year 2012 from the issuance of the Series 2011 Certificates of Participation.
Revenue bonds payable, noncurrent
The increase in revenue bonds payable, noncurrent, is due to the issuance of the Series 2010
Revenue Bonds Payable which were issued by the University during fiscal year 2011.
Certificates of participation, noncurrent
The increase in certificates of participation, noncurrent, is due to the issuance of the Series 2011
Certificates of Participation which were issued by the University during fiscal year 2011.
Other obligations, noncurrent
The decrease in other obligations, noncurrent, is due to restructuring of student housing deposits
and subsequent refunding of the deposits to the students during the fiscal year.
Unrestricted net assets
The increase is unrestricted net assets is primarily due to the net increase in the University's
tuition and fees and nonoperating grant revenues during fiscal year 2011.
50
State of Illinois
Western Illinois University
Analysis of Significant Variations in Operating and Nonoperating
Revenues and Expenses
For the Year Ended June 30, 2011
A comparative schedule of significant variations in operating and nonoperating revenues and
expenses (at least $200,000 and 20% of the previous year) for the fiscal years ended June 30,
2011 and June 30, 2010 are shown below:
FISCAL YEAR ENDED
JUNE 30,
INCREASE
(DECREASE)
ACCOUNTS 2011 2010 AMOUNT %
Nonoperating revenues/expenses:
Nonoperating grants $17,324,135 $14,293,498 $ 3,030,637 21%
Investment income 298,293 97,094 201,199 207%
Other nonoperating revenues 193,751 3,958,254 (3,764,503) (95%)
Capital State appropriations 11,471,389 6,495,559 4,975,830 77%
University management provided the following explanations for the significant variations
identified above.
Nonoperating grants
The increase in nonperating grants is a result of additional funding for Pell grants during
fiscal year 2011.
Investment income
The increase in investment income is a result of the additional funding available for
investment from unspent debt issuance proceeds.
Other nonoperating revenues
A decrease in other nonoperating revenues occurred because State fiscal stabilization funding
(ARRA) was not available for operations during fiscal year 2011.
Capital State appropriations
The increase in capital State appropriations represents an increase in capital funding provided
by the Capital Development Board (CDB) to the University for State funded renovations of
Memorial Hall and the Quad Cities campus.
51
State of Illinois
Western Illinois University
Analysis of Significant Lapse Period Spending
For the Year Ended June 30, 2011
No appropriation line item had lapse period expenditures in excess of $200,000 and 20% of
total line item expenditures for the fourteen months ended August 31, 2011.
52
State of Illinois
Western Illinois University
Analysis of Accounts Receivable
June 30, 2011 and 2010
Accounts receivable (net) at June 30, were as follows:
2011 2010
Current unrestricted funds $ 5,147,362 $ 3,814,491
Current restricted funds 2,630,839 3,417,715
Loan funds 308 201
Plant funds 280,525 52,916
Agency funds 241 47
Total accounts receivable (net) $ 8,059,275 $ 7,285,370
Accounts receivable at gross less allowance for uncollectible accounts
were as follows:
2011 2010
Accounts receivable - all funds, at gross $ 11,231,875 $ 11,153,670
Less: allowance for uncollectible accounts 3,172,600 3,868,300
Total accounts receivable (net) $ 8,059,275 $ 7,285,370
Accounts receivable aging was as follows:
2011 2010
Receivables not past due $ 4,766,294 $ 5,062,897
Past due receivables:
1 day - 90 days 2,042,606 2,300,868
91 days - 180 days - -
181 days - 1 year 729,223 778,863
Over 1 year 3,693,752 3,011,042
Total receivables past due 6,465,581 6,090,773
Total receivables, at gross $ 11,231,875 $ 11,153,670
Collection Policies for Accounts Receivables
Accounts receivable of WIU consists of tuition and fee charges to students, amounts receivable from funding agencies for grants,
amounts receivable from third parties, and charges for auxiliary enterprise services provided to students, faculty and staff.
The University processes student accounts receivable through the Billing and Receivables Office. Monthly statements are
processed for all students. If the balance on the account exceeds $4.99 and payment is not received by the due date, academic
transcripts are not released. A 1% finance charge is assessed on all past due balances that exceed $14.99. Students with past due
balances exceeding $499.99 are not permitted to register for future terms.
Students who are no longer enrolled and have an account balance continue to receive monthly statements. Accounts with balances
less than $5.00 are not subject to collection efforts due to the costs associated with the collection process. Accounts with balances
less than $100.00 are sent two separate collection notices by the Billing and Receivables Office. If the account is not paid in full
by the due date of the second collection notice, the debt is subject to offset through the Comptroller’s Office. Accounts with
balances that are $100.00 and over are subject to collection notices, telephone contacts, Comptroller’s offset and
attorney/collection agency placement.
53
State of Illinois
Western Illinois University
Summary of Indirect Cost Reimbursements
Statement of Sources and Applications
For the Years Ended June 30, 2011 and 2010
2011 2010
SOURCES
Federal $ 556,011 $ 556,273
State 399,444 422,308
Private 1,217 23,719
Other 234,610 211,119
Total sources 1,191,282 1,213,419
APPLICATIONS
Research 218,396 126,248
Academic support 309,210 274,422
Institutional support 408,510 507,034
Total applications 936,116 907,704
EXCESS OF SOURCES OVER APPLICATIONS 255,166 305,715
TRANSFERS AND OTHER DEDUCTIONS
Transfers to other funds (69,714) (69,475)
EXCESS OF SOURCES OVER APPLICATIONS
AFTER TRANSFERS AND OTHER DEDUCTIONS 185,452 236,240
FUND BALANCE, BEGINNING OF YEAR 774,569 538,329
FUND BALANCE, END OF YEAR $ 960,021 $ 774,569
54
State of Illinois
Western Illinois University
Summary of Indirect Cost Reimbursements
Calculation Sheet for Indirect Cost Carry-Forward
For the Year Ended June 30, 2011
1. Cash and cash equivalents balance
Enter the June 30 indirect cost entity balance for cash and equivalents
Add:
Cash....................................................................................... $ 1,031,055
Cash equivalents.................................................................... $ -
Bank deposits................................................................... $ -
Marketable securities........................................................ $ -
Certificates of deposit........................................................ $ -
Repurchase agreements................................................... $ -
Other cash equivalent items.............................................. $ -
Interfund receivables.............................................................. $ - $ 1,031,055
2. Allocated Reimbursements
Enter the total indirect cost reimbursements allocated for
expenditure for the fiscal year completed:
$ 1,924,149; enter 30% of this amount................................ $ 577,245
3. Unallocated Reimbursements
Enter the lesser of the actual unallocated indirect cost
reimbursements for the year completed OR 10% of
total indirect cost allocations for the year completed................. $ -
4. Encumbrances and current liabilities
Paid in lapse period
Enter the amount of:
Current liabilities...................................................................... $ 77,563
Encumbrances......................................................................... $ 3,859
Total.............................................................................................. $ 81,422
5. Indirect Cost Carry-forward
a. Enter the total of items 2, 3 and 4.......................................... $ 658,667
b. Subtract from item 1 $ 372,388
If a positive number results, enter here and remit for
deposit in the Income Fund......................................................... $ 372,388
55
State of Illinois
Western Illinois University
Calculation of Current Excess Funds
June 30, 2011
University
University Recreation Housing
Union Facility and Dining
CURRENT AVAILABLE FUNDS:
Cash and cash equivalents (A) $ 2,807,439 $ 625,849 $ 1,377,031
WORKING CAPITAL ALLOWANCES:
Highest month's expenditures 1,897,366 431,681 5,294,549
Encumbrances and current liabilities paid in lapse period 463,149 110,963 1,096,948
Refundable deposits/deferred income 29,176 71,188 607,528
Allowance for sick leave/vacation payouts 38,329 27,116 109,042
Total working capital allowances (B) 2,428,020 640,948 7,108,067
CURRENT EXCESS FUNDS:
Deduct B from A (C) 379,419 (15,099) (5,731,036)
CALCULATION OF INCOME FUND REMITTANCE:
An entity may offset excess capital or current funds
within the entity:
Enter the amount to be offset (D) (380,000) - -
Enter the sum of C and D and move the amount due, if
any, for deposit in the Income Fund $ (581) $ (15,099) $ (5,731,036)
Auxiliary Enterprises - Revenue Bond
56
State of Illinois
Western Illinois University
Calculation of Current Excess Funds (Continued)
June 30, 2011
Student Instructional University
Programs Resources Stores and Sponsored
Public and and Service University Credit University Parking Transit
Service Services Services Centers Publications Programs Services Operations Fee
02 03 04 05 06 08 12 11 13
CURRENT AVAILABLE FUNDS:
Cash and cash equivalents $ 753,421 $ 1,580,274 $ 712,190 $ (1,458,847) $ 3,248 $ 171,321 $504,280 $ 358,306 $ (25,402)
Interfund receivables 390 1,218 - 94,417 - - - - -
Total current available funds (A) 753,811 1,581,492 712,190 (1,364,430) 3,248 171,321 504,280 358,306 (25,402)
WORKING CAPITAL ALLOWANCES:
Highest month's expenditures 512,889 3,221,585 582,971 885,085 7,219 57,429 443,103 78,314 219,486
Encumbrances and current liabilities paid in lapse period 325,689 700,155 158,431 371,953 - 37,408 158,311 32,656 110,414
Refundable deposits/deferred income 116,103 149,674 18,268 - - 110,860 - - 6,001
Total working capital allowances (B) 954,681 4,071,414 759,670 1,257,038 7,219 205,697 601,414 110,970 335,901
CURRENT EXCESS FUNDS:
Deduct B from A (C) (200,870) (2,489,922) (47,480) (2,621,468) (3,971) (34,376) (97,134) 247,336 (361,303)
CALCULATION OF INCOME FUND REMITTANCE:
An entity may offset excess capital or current funds
within the entity:
Enter the amount to be offset (D) (94,130) (47,126) (340,228) (57,212) (823) - - (273,728) -
Enter the sum of C and D and move the amount due, if
any, for deposit in the Income Fund $ (295,000) $(2,537,048) $(387,708) $ (2,678,680) $ (4,794) $ (34,376) $ (97,134) $ (26,392) $(361,303)
Auxiliary Enterprises
57
State of Illinois
Western Illinois University
Current Funds, Unrestricted, Other
Balance Sheet by Entity
June 30, 2011
Student Instructional University Unique Sponsored Compensated
Indirect Public Programs Resources Stores and University Charge Credit Unrestricted Absences for University
Cost Service and Services and Services Service Centers Publications Programs Programs Gifts All Entities Services Total
ASSETS
Cash and temporary cash investments $ 1,031,055 $ 752,721 $ 1,573,259 $ 712,015 $ (1,469,912) $ 3 ,248 $ 44,845 $ 1 71,321 $ 41,868 $ 1 ,977,242 $ 504,280 $ 5,341,942
Cash, change funds - 700 7,015 175 11,065 - - - - - - 18,955
A ccounts receivable, net 6,529 9,171 422,633 45,835 130,126 1 7 35 - - - 20 614,366
Inventories - 1,655 34,841 46,603 1,069,087 - - - - - - 1,152,186
Investment in plant:
Equipment - 69,755 250,706 138,981 1,014,025 - - - - - - 1,473,467
Building - - 332,645 - 95,997 - - - - - 139,903 568,545
Construction in progress - - - - 92,867 - - - - - - 92,867
TOTAL ASSETS 1,037,584 834,002 2,621,099 943,609 943,255 3 ,265 44,880 1 71,321 41,868 1 ,977,242 644,203 9,262,328
LIABILITIES AND FUND BALANCES
LIABILITIES
Accrued payroll 38,046 287,439 195,521 29,907 121,502 - - 3 5,017 13,256 - 155,075 875,763
Interfund payables - - - - - - - - 398 - - 398
Accounts payable 39,518 22,389 400,797 95,975 228,936 - 20,208 1 ,725 - - 3,236 812,784
Accrued compensated absences - - - - - - - - - 1 ,236,836 - 1,236,836
Deferred revenues - 116,103 149,674 18,268 - - 25,215 1 10,860 - - - 420,120
Installment purchases payable - - - - 271,723 - - - - - - 271,723
Total liabilities 77,564 425,931 745,992 144,150 622,161 - 45,423 1 47,602 13,654 1 ,236,836 158,311 3,617,624
FUND BALANCES
Current unrestricted 960,020 244,186 1,244,631 320,250 (657,210) 2 ,442 (543) 2 3,719 28,214 7 40,406 345,989 3,252,104
Renewals and replacements - 94,130 47,126 340,228 47,137 8 23 - - - - - 529,444
Net investment in plant - 69,755 583,350 138,981 931,167 - - - - - 139,903 1,863,156
Total fund balances (deficit) 960,020 408,071 1,875,107 799,459 321,094 3 ,265 (543) 2 3,719 28,214 7 40,406 485,892 5,644,704
TOTAL LIABILITIES AND FUND BALANCES $ 1,037,584 $ 834,002 $ 2,621,099 $ 943,609 $ 943,255 $ 3 ,265 $ 44,880 $ 1 71,321 $ 41,868 $ 1 ,977,242 $ 644,203 $ 9,262,328
58
State of Illinois
Western Illinois University
Current Funds, Unrestricted, Other
Statement of Revenues, Expenditures and Changes in Fund Balances by Entity
For the Year Ended June 30, 2011
Student Instructional University Unique Sponsored Compensated
Indirect Public Programs Resources Stores and University Charge Credit Unrestricted Absences for University
Cost Service and Services and Services Service Centers Publications Programs Programs Gifts All Entities Services Total
REVENUES AND OTHER ADDITIONS
Fees and dues $ - $ 367,456 $ 11,873,820 $ 1,854,215 $ 2,685 $ - $ - $ - $ - $ - $ - $ 14,098,176
Indirect cost recovery 1,125,655 - - - - - - - - - - 1,125,655
Investment income 422 272 853 173 289 - - 2 2 6 1,250 764 4,051
Sales and subscriptions - 81,002 300,284 223,288 2,670,207 5,591 - - - - - 3,280,372
Charges for services 49,447 2,685,499 1,354,769 50,616 3,684,144 2,943 378,921 352,702 - - 4,280 8,563,321
Athletic guarantees - - 570,721 - - - - - - - - 570,721
Other - 9,134 1,050,343 71,345 232,273 - 41,301 - - - 33,723 1,438,119
Gifts 15,757 60,060 77,371 - 20,000 - 4,545 - 1 30,329 - 300 308,362
Expended for plant facilities 62,555 36,407 130,500 134,399 66,304 - - - - - - 430,165
Other fixed asset additions - 5,995 - 34,532 123,770 - - - - - - 164,297
Total revenues and other additions 1,253,836 3,245,825 15,358,661 2,368,568 6,799,672 8,534 424,767 352,704 1 30,355 1,250 39,067 29,983,239
EXPENDITURES AND OTHER DEDUCTIONS
Cost of sales 116 59,242 81,062 11,375 2,689,363 - - - - - - 2,841,158
Personal services 67,279 2,353,672 3,419,632 472,936 2,081,665 - 12,021 160,126 1 01,770 - 2,474,277 11,143,378
Contractual services 354,825 370,855 3,580,548 708,658 327,692 2,495 387,359 27,443 3 7,845 - 451,577 6,249,297
Telecommunications 5,661 18,434 151,508 35,764 417,407 228 83 - 1 85 - 2,566 631,836
Travel 69,328 28,266 190,526 21,250 352,715 - 21,619 24,931 1 65 - 5,181 713,981
Retirement 2,918 - - - - - - - - - - 2,918
Commodities 63,824 84,745 804,627 356,609 381,992 4,490 6,516 6,463 2 ,464 - 16,693 1,728,423
Equipment 156,573 115,368 408,927 487,463 147,435 2,161 144 - - - 2,775 1,320,846
Scholarships 59 150 2,060,669 - - - - 53,718 6 ,739 - - 2,121,335
Compensated absences adjustment - - - - - - - - - (59,377) - ( 59,377)
Athletic guarantees - - 85,858 - - - - - - - - 85,858
Other 215,533 204,882 3,769,032 118,421 364,668 427 477 63,108 1 ,245 - (2,995,320) 1,742,473
Other fixed asset deductions - 23,315 113,888 79,261 319,310 - - - - - 11,338 547,112
Total expenditures and other deductions 936,116 3,258,929 14,666,277 2,291,737 7,082,247 9,801 428,219 335,789 1 50,413 (59,377) (30,913) 29,069,238
NET INCREASE (DECREASE) IN
FUND BALANCES BEFORE TRANSFERS 317,720 (13,104) 692,384 76,831 (282,575) (1,267) (3,452) 16,915 (20,058) 60,627 69,980 914,001
TRANSFERS
T r ansfers from (to) other funds, current funds (69,714) (2,273) 175,235 (102,079) (34,264) - - - - - - ( 33,095)
T r ansfers from (to) other funds, plant funds (62,555) 2,273 (2,766) 114,562 60,937 - - - - - - 112,451
Transfers for installment purchase payments - - - (34,291) (102,071) - - - - - (95,000) (231,362)
Total transfers (132,269) - 172,469 (21,808) (75,398) - - - - - (95,000) (152,006)
NET INCREASE (DECREASE) FOR THE YEAR 185,451 (13,104) 864,853 55,023 (357,973) (1,267) (3,452) 16,915 (20,058) 60,627 (25,020) 761,995
FUND BALANCES, BEGINNING OF YEAR 774,569 421,175 1,010,254 744,436 679,067 4,532 2,909 6,804 4 8,272 679,779 510,912 4,882,709
FUND BALANCES (DEFICIT), END OF YEAR $ 960,020 $ 408,071 $ 1,875,107 $ 799,459 $ 321,094 $ 3,265 $ (543) $ 23,719 $ 2 8,214 $ 740,406 $ 485,892 $ 5,644,704
59
State of Illinois
Western Illinois University
Auxiliary Enterprise Funds - Other
Balance Sheet by Entity
June 30, 2011
Parking Transit
Operations Fee Total
ASSETS
Cash and temporary cash investments (overdraft) $ 358,006 $ (25,402) $ 332,604
Change funds 300 - 300
Accounts receivable, net 62,883 321,587 384,470
Investment in plant:
Buildings 24,190 - 24,190
Site improvements 1,485,397 - 1,485,397
Equipment 31,085 33,892 64,977
Construction in Progress - 12,800 12,800
TOTAL ASSETS 1,961,861 342,877 2,304,738
LIABILITIES AND FUND BALANCES
LIABILITIES
Accrued payroll 28,818 5,017 33,835
Accounts payable - 101,381 101,381
Deferred revenues - 6,001 6,001
Total liabilities 28,818 112,399 141,217
FUND BALANCES
Current funds 118,643 183,786 302,429
Renewals and replacements 273,728 - 273,728
Net investment in plant 1,540,672 46,692 1,587,364
Total fund balances 1,933,043 230,478 2,163,521
TOTAL LIABILITIES AND FUND BALANCES $ 1,961,861 $ 342,877 $ 2,304,738
60
State of Illinois
Western Illinois University
Auxiliary Enterprise Funds - Other
Statement of Revenues, Expenditures and Changes in Fund Balances by Entity
For the Year Ended June 30, 2011
Parking Transit
Operations Fee Total
REVENUES AND OTHER ADDITIONS
Sales and services $ 461,678 $ 1,032,401 $ 1,494,079
Fees - 726,077 726,077
Investment income 158 71 229
Fines 247,556 - 247,556
Other 1,982 4,160 6,142
Expended for plant facilities - 12,800 12,800
Total revenues and other additions 711,374 1,775,509 2,486,883
EXPENDITURES AND OTHER DEDUCTIONS
Personal services 543,902 75,025 618,927
Contractual services 30,239 1,038,921 1,069,160
Commodities 28,064 35,405 63,469
Permanent improvements - 12,800 12,800
Equipment 1,511 4,313 5,824
Travel 700 2,255 2,955
Telecommunications 2,173 714 2,887
Other 57,124 563,501 620,625
Other fixed asset deductions 88,352 9,430 97,782
Total expenditures and other deductions 752,065 1,742,364 2,494,429
NET INCREASE (DECREASE) IN FUND
BALANCES BEFORE TRANSFERS (40,691) 33,145 (7,546)
TRANSFERS
Transfers to other funds, current funds (50,000) - (50,000)
Transfers from other funds, plant funds 50,000 - 50,000
Total transfers - - -
NET INCREASE (DECREASE) FOR THE YEAR (40,691) 33,145 (7,546)
FUND BALANCES, BEGINNING OF YEAR 1,973,734 197,333 2,171,067
FUND BALANCES, END OF YEAR $ 1,933,043 $ 230,478 $ 2,163,521
61
State of Illinois
Western Illinois University
Auxiliary Enterprise Funds - Revenue Bonds
Balance Sheet by Entity
June 30, 2011
University Recreation University
Union Facility Housing & Dining Total
ASSETS
Current funds:
Cash and investments $ 2,807,439 $ 625,849 $ 1,377,031 $ 4 ,810,319
Accounts and interest receivable, less allowance
for doubtful accounts of $1,612,700 424,345 70,492 1,247,130 1 ,741,967
Inventories 1,056,862 16,055 - 1 ,072,917
Equipment, net 96,510 - - 9 6,510
T otal assets, current funds 4,385,156 712,396 2,624,161 7 ,721,713
Plant funds:
Cash - retirement of indebtedness 6,931 60,912 654,538 7 22,381
Cash - renewals and replacements 2,359,882 (2,132,690) 20,788,737 2 1,015,929
Cash - construction funds - 683 19,565,471 1 9,566,154
Interest receivable - - 107,458 1 07,458
Investment in plant:
Land, buildings, and improvements 2,353,211 14,103,428 40,372,770 5 6,829,409
Equipment 25,764 247,754 431,286 7 04,804
Contruction in progress - - 11,976,485 1 1,976,485
Bond issuance costs 14,351 9 1,513 961,221 1 ,067,085
T otal assets, plant funds 4,760,139 12,371,600 94,857,966 1 11,989,705
TOTAL ASSETS 9,145,295 13,083,996 97,482,127 1 19,711,418
LIABILITIES AND FUND BALANCES
LIABILITIES
Current funds:
Accrued payroll 125,207 83,732 506,604 7 15,543
Accounts payable 270,816 27,231 574,946 8 72,993
Deferred revenues 29,176 71,188 607,528 7 07,892
Accrued compensated absences 291,009 205,877 827,895 1 ,324,781
Total liabilities, current funds 716,208 388,028 2,516,973 3 ,621,209
FUND BALANCES
Fund balances, reserve for operations 3,668,948 324,368 107,188 4 ,100,504
Total liabilities and fund balances, current funds 4,385,156 712,396 2,624,161 7 ,721,713
LIABILITIES
Plant funds:
Accounts payable and accrued payroll 8,393 3 ,653 1,448,248 1 ,460,294
Accrued interest 6,931 60,912 648,796 7 16,639
Revenue bonds payable 687,557 5,840,676 50,456,663 5 6,984,896
Total liabilities, plant funds 702,881 5,905,241 52,553,707 5 9,161,829
FUND BALANCES
Retirement of indebtedness 14,351 91,513 966,964 1 ,072,828
Renewals, replacements reserve 2,351,489 (2,136,344) 20,074,249 2 0,289,394
Project construction fund - 6 83 ( 5,356,732) (5,356,049)
Investment in plant, net 1,691,418 8,510,507 26,619,778 3 6,821,703
Total fund balances, plant funds 4,057,258 6,466,359 42,304,259 5 2,827,876
Total liabilities and fund balances, plant funds 4,760,139 12,371,600 94,857,966 1 11,989,705
TOTAL LIABILITIES AND FUND BALANCES $ 9,145,295 $ 13,083,996 $ 97,482,127 $ 1 19,711,418
62
State of Illinois
Western Illinois University
Auxiliary Enterprise Funds - Revenue Bonds
Statement of Revenues, Expenditures and Changes in Fund Balances by Entity
For the Year Ended June 30, 2011
University Recreation University
Union Facility Housing & Dining Total
REVENUES
Room and board $ - $ - $ 33,734,994 $ 3 3,734,994
Graduate and family housing - - 1,228,332 1 ,228,332
Sales and services 4,965,227 579,037 1,817,154 7 ,361,418
Student fees 2,980,192 3,241,665 776,651 6 ,998,508
Investment income 11,762 2,767 36,612 5 1,141
Other 132,484 20,610 1,339,084 1 ,492,178
Total revenues 8,089,665 3,844,079 38,932,827 5 0,866,571
OPERATING EXPENDITURES
Cost of merchandise sold 3,186,139 53,667 - 3 ,239,806
Personal services:
Student 186,970 264,567 1,462,770 1 ,914,307
Regular 2,145,243 1,199,385 7,683,358 1 1,027,986
Compensated absences (30,880) (17,265) (110,601) (158,746)
Fringe benefits 74,060 27,001 252,829 3 53,890
Food service and catering 40,841 761 12,349,202 1 2,390,804
Contractual services 204,473 62,859 772,759 1 ,040,091
Supplies 77,229 86,847 304,430 4 68,506
Travel 8,562 4,456 27,003 4 0,021
Utilities 622,834 110,938 3,597,540 4 ,331,312
Telephone 17,921 4,580 99,827 1 22,328
Repairs and maintenance 90,042 80,767 675,216 8 46,025
Insurance 21,779 6,309 132,911 1 60,999
Other financial 58,812 3,096 18,219 8 0,127
Equipment 5,334 5,435 210,517 2 21,286
Bad debts (12,226) (15,453) 3,767 (23,912)
Administrative support 295,734 140,533 1,423,043 1 ,859,310
Miscellaneous 133,134 50,113 792,950 9 76,197
Total operating expenditures 7,126,001 2,068,596 29,695,740 3 8,890,337
EXCESS OF REVENUES OVER
OPERATING EXPENDITURES $ 963,664 $ 1,775,483 $ 9,237,087 $ 1 1,976,234
63
State of Illinois
Western Illinois University
Auxiliary Enterprise Funds - Revenue Bonds
Statement of Revenues, Expenditures and Changes in Fund Balances by Entity (Continued)
For the Year Ended June 30, 2011
University Recreation University
Union Facility Housing & Dining Total
TRANSFERS
Transfers for principal and interest $ (234,145) $ (1,072,295) $ (5,671,306) $ (6,977,746)
Transfers for renewals, replacements,
deferred maintenance and equipment reserve (728,283) (678,617) (3,541,407) (4,948,307)
Total transfers (962,428) (1,750,912) (9,212,713) (11,926,053)
NET INCREASE FOR THE YEAR 1,236 24,571 24,374 5 0,181
FUND BALANCES, BEGINNING OF YEAR 3,667,712 299,797 82,814 4 ,050,323
FUND BALANCES, END OF YEAR $ 3,668,948 $ 324,368 $ 107,188 $ 4 ,100,504
64
State of Illinois
Western Illinois University
Auxiliary Enterprise Funds - Revenue Bonds
Plant Funds Statement of Changes in Fund Balances by Entity
For the Year Ended June 30, 2011
University Recreation University
Union Facility Housing & Dining Total
Retirement of indebtedness
Fund balances, July 1, 2010 $ 15,991 $ 99,723 $ 412,884 $ 528,598
Bond issuance expenditures (1,640) (7,992) (58,950) (68,582)
Retirement of bonds (201,141) (806,837) (3,132,022) (4,140,000)
Interest paid, bonds (33,004) (265,676) (2,539,533) (2,838,213)
Mandatory debt retirement transfer 234,145 1,072,295 5,671,306 6,977,746
Bond proceeds - - 508,279 508,279
Transfers from current funds - - 105,000 105,000
Fund balances, June 30, 2011 $ 14,351 $ 91,513 $ 966,964 $ 1,072,828
Renewals, replacements, def. maint. and equipment reserve
Fund balances (deficits), July 1, 2010 $ 2,436,712 $ (2,734,767) $ 20,380,026 $ 20,081,971
Transfers from current funds 728,283 678,617 3,436,407 4,843,307
Expenditures for renewals and replacements (813,506) (80,194) (3,742,184) (4,635,884)
Fund balances (deficits), June 30, 2011 $ 2,351,489 $ (2,136,344) $ 20,074,249 $ 20,289,394
Project construction fund
Fund balances, July 1, 2010 $ - $ 6 83 $ - $ 6 83
Investment income - - 149,529 149,529
Capitalized interest - - 1,214,099 1,214,099
Bond proceeds - - 25,001,721 25,001,721
Bonds issued - - (25,510,000) (25,510,000)
Expenditures for renewals and replacements - - (6,212,081) (6,212,081)
Fund balances (deficits), June 30, 2011 $ - $ 683 $ (5,356,732) $ (5,356,049)
Investment in plant (net)
Fund balances, July 1, 2010 $ 862,800 $ 8,188,954 $ 16,171,103 $ 25,222,857
Retirement of bonds 201,142 824,700 3,114,158 4,140,000
Additions to plant 772,109 22,957 9,847,780 10,642,846
Depreciation (142,313) (509,121) (2,423,716) (3,075,150)
Discount amortization 1,165 1 ,629 4 ,199 6 ,993
Refund amortization (3,485) (18,612) (47,216) (69,313)
Transfers (net) - - (46,530) (46,530)
Fund balances, June 30, 2011 $ 1,691,418 $ 8,510,507 $ 26,619,778 $ 36,821,703
65
State of Illinois
Western Illinois University
University Functions and Planning Program
For the Year Ended June 30, 2011
The primary focus of Western Illinois University (University), a component unit of the State
of Illinois (State), is on instruction and