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REPORT
DIGEST SOUTHERN
COMPLIANCE
EXAMINATION (In accordance with the
Single Audit Act and OMB Circular A-133) For the Year Ended: June 30, 2008 Summary of
Findings: Total This Year 8 Total Last Year 14 Repeated From Last Year 5 Release Date: April 14, 2009
State of
Office of the Auditor General
WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the
Report contact: Office of the Auditor
General (217) 782-6046 or TTY (888)
261-2887 This Report Digest and
the Full Report are also available on the worldwide web
at |
INTRODUCTION The Financial Statement Audit report for the year ended June 30, 2008 was previously released February 19, 2009. This report addresses federal and State compliance findings pertaining to the Single Audit and State Compliance Examination. SYNOPSIS ¨ The University did not always report changes in enrollment status of students for federal student loan programs. ¨ The University did not return Title IV funds to the U.S. Department of Education within the required 45 day timeframe. ¨ The University’s faculty did not submit timesheets as required by the State Officials and Employees Ethics Act. ¨ The University did not report monthly as required by the Board of Higher Education Act. ¨ The University did not have adequate controls to ensure employees engaged in non-University related activities complied with University policies and the University Faculty Research and Consulting Act. {Expenditures and Activity Measures are summarized on the reverse page.} |
SOUTHERN
COMPLIANCE EXAMINATION AND SINGLE
AUDIT
FOR THE YEAR ENDED JUNE 30,
2008
|
STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN NET ASSETS |
FY2008 |
FY2007 |
|
OPERATING
REVENUES Student
tuition and fees.......................................................
..... Auxiliary
enterprises.............................................................
Grants and
contracts............................................................
Sales and
services of educational activities.....................
Other.......................................................................................
Total Operating Revenues...........................................
OPERATING
EXPENSES
Instruction..............................................................................
Research.................................................................................
Public
services.......................................................................
Academic
support.................................................................
Student
services....................................................................
Institutional support.............................................................
Operation
and maintenance of plant..................................
Scholarships and fellowships.............................................
Auxiliary
enterprises.............................................................
Depreciation...........................................................................
Other.......................................................................................
Total
Operating Expenses.................................................
Operating Loss...........................................................................
NON-OPERATING REVENUES
(EXPENSES) State
appropriations.............................................................
Payments on
behalf of the University...............................
Other
non-operating revenues (expenses), net................
Net Non-operating Revenues
..........................................
Income (Loss) Before
Capital Contributions........................
Capital
appropriations, additions to endowments and capital grants ....
INCREASE
IN NET ASSETS...................................................
Net assets, beginning of
the year............................................
Net assets, end of the year............................................................................ |
$207,141,669 95,190,509 93,855,788 60,638,746 42,290,179 $499,116,891 $273,275,474 58,343,488 60,083,154 125,357,888 61,419,481 58,097,621 75,374,645 24,241,476 87,621,293 36,393,289 570,824 $860,778,633 ($361,661,742) $227,184,099 122,396,302 37,421,596 $387,001,997 $25,340,255 $14,771,583 $40,111,838 $426,137,436 $466,249,274 |
$182,140,804 83,367,711 89,604,596 52,529,185 39,603,670 $447,245,966 $259,860,902 57,700,962 56,378,043 112,268,877 55,192,637 54,640,752 65,398,396 19,159,776 77,328,543 34,958,458 350,826 $793,238,172 ($345,992,206) $223,149,103 106,525,874 34,315,848 $363,990,825 $17,998,619 $32,650,797 $50,649,416 $375,488,020 $426,137,436 |
|
SELECTED ACCOUNT BALANCES
|
JUNE 30,
2008 |
JUNE 30,
2007 |
|
Cash and investments................................................................
Capital assets, net of
accumulated depreciation....................
Total Assets................................................................................
Revenue bonds, notes
payable and capital lease
obligations.......................................................................
Accrued compensated
absences.............................................
Total Liabilities..........................................................................
Net assets....................................................................................
|
$258,508,434 $605,188,397 $938,404,694 $262,025,599 $47,967,312 $472,155,420 $466,249,274 |
$221,463,550 $572,516,218 $868,278,645 $239,784,222 $46,820,844 $442,141,209 $426,137,436 |
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EMPLOYMENT STATISTICS (unaudited) |
FALL
2007 |
FALL
2006 |
|
Edwardsville................................................................................
Total Employees....................................................................
|
6,990 2,838 9,828 |
6,974 2,802 9,776 |
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ENROLLMENT STATISTICS (unaudited) |
FALL
2007 |
FALL
2006 |
|
Edwardsville (Full-time
and Part-time students)....................
Total Enrollment...................................................................
|
20,983 13,398 34,381 |
21,003 13,449 34,452 |
UNIVERSITY
PRESIDENT | ||
|
During Audit Period: Dr.
Glenn Poshard Currently: Dr. Glenn
Poshard | ||
|
Changes in enrollment status of
students not reported Federal funds not returned
timely Noncompliance with the State
Officials and Employees Ethics Act Faculty did not submit time
sheets Reports of adjudicated cases not
filed Prior approval for outside research
and consulting not obtained Reports on non-University activities
not filed |
INTRODUCTION Our 2008
Single Audit and State Compliance Examination of Southern Illinois
University are presented in two reports. One report contains compliance
findings disclosed by our tests and certain supplemental information. The other report contains
supplementary financial information and special data requirements.
FINDINGS,
CONCLUSIONS, AND RECOMMENDATIONS INADEQUATE CONTROLS OVER LOAN
REPORTING The
Carbondale Campus did not always report changes in enrollment status of
students to the National Student Clearinghouse (NSC) for federal student
loan programs. Out of 33
enrollment status changes tested, 13 were not reported to the NSC. The NSC is The National Student Loan Data System (NSLDS) Enrollment Reporting Guide requires schools to confirm and report the enrollment status of students who receive federal student loans. As with any school/servicer arrangement for the administration of Title IV programs, the school remains responsible for submitting timely, accurate, and complete enrollment reporting roster files and for maintaining proper documentation in accordance with Federal Regulation 34 CFR 682.610(c). A student’s enrollment status determines eligibility for deferment, grace periods, and repayments, as well as the Federal Government’s payment of interest subsidies. Enrollment reporting is critical for effective administration of the Title IV student loan programs. (Finding 1, page 13) We recommended the University implement policies and procedures to prevent backdated withdrawals of students and ensure the timely and accurate reporting of information to the National Student Clearinghouse. University officials accepted our recommendation. UNTIMELY RETURN OF TITLE IV FUNDS The University did not return Title IV funds to the Department of Education within the required 45 day timeframe. The Edwardsville campus did not return Title IV funds within 45 days of the student’s withdrawal date for 10 of 33 students selected for testing. The total dollar amount of funds not returned within 45 days was $19,223. During the fiscal year, the Edwardsville campus implemented Banner, a computerized accounting system which includes a student financial aid module. Within the new system issues were identified by the University pertaining to the return of Title IV funds. The Edwardsville campus then took corrective action in an attempt to correct the issues noted. The
We
recommended the Edwardsville campus continue to follow new processes put
into place during the Spring and Summer terms of fiscal year 2008 to
ensure Title IV funds are returned to the U.S. Department of Education in
a timely fashion. Further, we
recommended the University officials accepted our recommendations. TIME SHEETS ARE NOT
REQUIRED The University does not have a policy that requires all employees to periodically submit time sheets documenting the time spent each day on official University business to the nearest quarter hour as required by the State Officials and Employees Ethics Act (Act). We noted
that the University’s faculty did not submit timesheets in compliance with
the Act. The process is
effectively a “negative” timekeeping system whereby the employee is
assumed to be working unless noted otherwise. During fiscal year 2007 the
University adopted a policy to require time sheets from all employees
except faculty. (Finding 5,
page 19) This finding was first reported in
2005. We recommended the University amend its policies to require all employees to submit time sheets in compliance with the Act. University officials responded they will continue to work with other public universities and the Illinois Board of Higher Education in resolution of this issue. (For the previous University response, see Digest Footnote #1.) FAILURE TO REPORT IN ACCORDANCE WITH
THE BOARD OF HIGHER EDUCATION ACT The
University did not report monthly as required by the Board of Higher
Education Act (Act). The
We recommended the University establish controls to ensure reports are filed as required by the Act. University officials responded that the recommendation was implemented. INADEQUATE CONTROLS OVER EMPLOYEES
ENGAGED IN NON-UNIVERSITY RELATED ACTIVITY The University did not have adequate controls to ensure employees engaged in non-University related activities complied with University policies and the University Faculty Research and Consulting Act (Act). The
We recommended the University revise its policies and procedures to strengthen its controls and to ensure compliance with the mandated requirements. We further recommended the University reiterate to employees the importance of filing reports as required by State law and University policies. University officials accepted our recommendation. OTHER FINDINGS The
remaining findings are reportedly being addressed by University
management. We will review
the University’s progress toward the implementation of our recommendations
in our next examination. AUDITORS’
OPINION The financial audit reports were previously released. Our auditors stated the financial statements of the University as of June 30, 2008 and for the year then ended are fairly presented in all material respects. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:KMA:pp SPECIAL ASSISTANT
AUDITORS Crowe Horwath LLP were our special assistant auditors for this audit. DIGEST FOOTNOTE #1 TIME
SHEETS ARE NOT REQUIRED – Previous University
Response Prior to July 1, 2007, the University relied on
the advice given by the Office of Executive Inspector General (“OEIG”) in
FY 04 related to the interpretation of Section 5-5 of the State Officials
and Employees Ethics Act (“Act”).
Specifically, the OEIG through its then Executive Inspector General
stated that the negative time keeping procedure utilized by the University
complied with the time keeping requirements of Section 5-5 of the
Act. The University believed
that it could reasonably rely on the interpretation and advice of the
entity responsible for enforcement of the Act. Notwithstanding this advice, and given recent
findings and recommendations of the Illinois Auditor General, Southern
Illinois University began requiring administrative/professional and exempt
civil service employees to submit time sheets documenting the time spent
each day on official State business to the nearest quarter hour. This requirement has been in place
since July 2007. All
employees who are classified as Administrative/Professional or exempt
civil service employees, including the President and Chancellors and their
administrative officials and staff are maintaining the required time
sheets. At this time, the
University has not required faculty to maintain such time sheets. Further non-exempt civil service
and other employees maintained time sheets prior to the adoption of the
Act because they are paid on an “hourly” basis. The University is exploring the legal and
institutional implications of expanding this new procedure to the faculty
and it is expected that a final decision will be made in FY
08. |