|
REPORT DIGEST CHICAGO STATE UNIVERSITY COMPLIANCE
EXAMINATION (In
accordance with the For the Year Ended: June 30, 2007 Summary of Findings: Total this year - Financial Audit 3* - Compliance Audit 14 17 Total last year - Financial Audit 2* - Compliance Audit 10 12 Repeated from last year - Financial Audit 1* - Compliance Audit 7 8 *Financial Audit Previously Released Release Date: May 15, 2008
State of Illinois Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL To obtain a copy of the
Report contact: Office of the Auditor
General Iles Park Plaza, 740 E. Ash Street Springfield, IL 62703 (217) 782-6046 or TTY (888) 261-2887 This Report Digest and Full
Report are also available on the worldwide web at |
INTRODUCTION
The Financial Statement Audit for the year ended
June 30, 2007 was previously released on April 10, 2008. That audit contained three audit findings.
Those findings pertained to significant deficiencies in internal control over
financial reporting. This report addresses Federal and State Compliance findings pertaining to the Single Audit and State Compliance Examination. In total, this document contains fourteen audit findings. SYNOPSIS ¨
The University did not
have supporting documentation and proper approvals for certain expenditures
charged to Federal Programs. ¨
The University’s
procurement policies have requirements for competitive bidding however no
evidence of competitive bidding was noted during testing of Federal
transactions. ¨
The University failed
to comply with cash management requirements. ¨
The University did not
have adequate controls over contracting procedures. ¨
The University did not
follow the travel policies of the Higher Education Travel Control Board and
the Department of Central Management Services Property Control Rules. Additionally, numerous charges to the University
credit card were not supported by receipts and documentation. ¨
The University did not
have procedures in place to periodically monitor unclaimed monies to
determine proper and timely disposition of the funds in compliance with the
Unclaimed Property Act. ¨
The University did not
perform timely reconciliations of University records to the Office of the
State Comptroller records. ¨
The University had
inadequate controls over its property and equipment records. {Financial Information is summarized on the reverse page.} |
CHICAGO STATE UNIVERSITY
COMPLIANCE EXAMINATION
|
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN NET ASSETS |
FY
2007
|
FY
2006
|
|
OPERATING REVENUES Student
tuition (net of scholarship allowances of $7,573,293 and $7,721,000............. Auxiliary
enterprises (net of scholarship allowances of $13,664 and $35,336............. Grants
and contracts (principally federal)......................................................................... Other
sources........................................................................................................................ ....... Total Operating Revenues................................................................................... OPERATING EXPENSES Instruction.............................................................................................................................. Research................................................................................................................................. Public
service......................................................................................................................... Academic
support................................................................................................................. Student
services.................................................................................................................... Institutional
support............................................................................................................. Operation
and maintenance of plant.................................................................................. Scholarships
and fellowships............................................................................................. Auxiliary
enterprises............................................................................................................. Depreciation........................................................................................................................... On-behalf
State fringe benefits........................................................................................... ....... Total Operating Expenses.................................................................................... OPERATING LOSS....................................................................................................................... NONOPERATING REVENUES (EXPENSES) State
appropriations............................................................................................................. State
fringe benefits.............................................................................................................. Investment
income................................................................................................................ Interest
on capital asset – related debt.............................................................................. ....... Net nonoperating revenues................................................................................. Capital
appropriations and grants...................................................................................... Loss on
disposal of capital assets..................................................................................... ....... Total other revenues............................................................................................. Increase
in net assets......................................................................................... NET ASSETS Net assets, beginning of the year............................................................................................... Net assets, end of the year.......................................................................................................... |
$22,023,468 3,630,015 31,083,682 3,023,784 $59,760,949 $38,298,566 5,405,867 7,359,554 7,118,467 13,468,500 8,903,062 6,701,614 5,346,202 3,902,710 4,067,182 15,176,756 $115,748,480 $(55,987,531)
41,160,000 15,176,756 54,044 (1,350,769) $55,040,031 ($947,500) $16,916,913 (32,128) $16,884,785 $15,937,285
112,189,557 $128,126,842 |
$22,437,090 4,100,582 31,181,924 3,149,562 $60,869,158 $36,655,375 3,863,448 6,192,057 6,491,124 11,056,396 9,336,983 6,402,239 5,075,461 4,278,278 3,348,005 13,402,670
$106,102,036 $(45,232,878) 38,660,300 13,402,670 57,071 (1,472,091) $50,647,950 $5,415,072 $28,253,484 (37,802) $28,215,682 $33,630,754
78,558,803 $112,189,557 |
|
SUPPLEMENTARY INFORMATION (Unaudited) |
FY
2007 |
FY
2006 |
|
Employment
Statistics Faculty/administrative.............................................................................. Student
employees.................................................................................. Total Employees.............................................................................. Selected
Activity Measures Students (Spring Term)
Undergraduate.......................................................................................
Graduate................................................................................................
Total Students........................................................................................ |
902 299 1,201 4,775 1,773 6,548 |
950 298 1,248 4,790 1,864 6,654 |
UNIVERSITY
PRESIDENT
|
||
|
During Audit Period and Current: Dr. Elnora
Daniel |
||
|
Failure to maintain
supporting documentation Questioned costs
totaling $13,702 Need to improve
property control records
University agrees
with auditors $1,519,500 of
expenditures contained no evidence of bidding
$58,359 of
expenditures contained no evidence of bidding
$1,596,637 of
expenditures contained no evidence of bidding
$1,309,692 of
expenditures contained no evidence of bidding
University agrees
with auditors
Competitive
procurement regulations not followed Cash draw-downs
exceeded the quoted cost by $76,894 $39,650 cash
drawn-down pertained to another program
University agrees
with auditors
No evidence of
competitive bids for 5 contracts totaling $679,927
One contract for
$251,000 was with an employee of the University
18 of 26 contracts
tested were executed after the date that services commenced
4 contracts
exceeding $250,000 each were not approved by the Board of Trustees
University agrees
with auditors Credit card charges
were not always supported
Payment
documentation did not identify any specific business purpose
Lack of receipts
University accepted
the recommendation
Some outstanding
checks were issued over 10 years ago University agrees
with auditors
Reconciliations for the first 5 months were not performed until December 2006 University agrees
with auditors
Inadequate controls
over property and equipment records Several items
observed were not on the property list Items could not be
located
Financial Statement
adjustments needed as a result of auditor testing |