REPORT DIGEST

REPORT DIGEST

EASTERN ILLINOIS UNIVERSITY

FINANCIAL AUDIT AND

COMPLIANCE EXAMINATION

(In Accordance with the
Single Audit Act and OMB Circular A-133)

For the Year Ended:

June 30, 2007

Summary of Findings:

Total this audit 11

Total last audit 5

Repeated from last audit 3

Release Date:

May15, 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

www.auditor.illinois.gov

SYNOPSIS

¨ The University did not have adequate controls over bank reconciliations.

¨ The University did not have adequate control over the reporting and reconciliation of financial aid information.

¨ The University did not have documentation to prove that students with Perkins loans were contacted during the grace period.

¨ The University did not require all employees to submit time sheets as required by the State Officials and Employees Ethics Act.

¨ The University did not have adequate controls over donations and price reductions of Union bookstore inventories.

¨ The University did not have adequate controls over receipts and refunds.

¨ The University’s Internal Auditing Department did not fully comply with the Fiscal Control and Internal Auditing Act.

{Expenditures and Activity Measures are summarized on the reverse page.}

EASTERN ILLINOIS UNIVERSITY

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

For The Year Ended June 30, 2007

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS	FY 2007	FY 2006
OPERATING REVENUES Student tuition and fees, net.................................................................................................. ..... Auxiliary enterprises, net........................................................................................................ Grants and contracts............................................................................................................... Sales and services of educational departments.................................................................. Other.......................................................................................................................................... Total Operating Revenues.............................................................................................. OPERATING EXPENSES Instruction........................................................................................................................... Auxiliary enterprises.......................................................................................................... Institutional support............................................................................................................... Student services...................................................................................................................... Academic support.............................................................................................................. Operations and maintenance of plant............................................................................. Depreciation expense........................................................................................................ Public service...................................................................................................................... Student aid.......................................................................................................................... Research.............................................................................................................................. Total Operating Expenses.................................................................................................... Operating Loss............................................................................................................................. NONOPERATING REVENUES (EXPENSES) State appropriations................................................................................................................ Payments on behalf of the University.................................................................................. Other nonoperating revenues (expenses), net.................................................................... Total Nonoperating Revenues (Expenses)................................................................... Income Before Capital Contributions....................................................................................... Capital appropriations, capital gifts and donated assets....................................................... INCREASE IN NET ASSETS..................................................................................................... Net assets, beginning of the year............................................................................................... Net assets, end of the year..........................................................................................................	$62,305,638 37,943,403 14,596,831 4,221,724 2,491,975 $121,559,571 $75,436,556 29,867,003 17,730,818 18,012,013 13,509,570 11,458,348 11,774,221 7,922,071 6,083,286 1,111,083 $192,904,969 $(71,345,398) $48,282,450 27,545,752 5,847,321 $81,675,523 $10,330,125 18,567,108 $28,897,233 130,007,956 $158,905,189	$56,480,594 36,096,832 14,137,808 3,972,693 2,493,714 $113,181,641 $70,108,070 27,178,279 16,319,773 17,606,275 12,254,338 10,895,526 11,663,569 7,758,929 5,128,002 1,171,032 $180,083,793 $(66,902,152) $47,609,499 24,902,749 4,041,387 $76,553,635 $9,651,483 21,675,762 $31,327,245 98,680,711 $130,007,956
SELECTED ACCOUNT BALANCES	JUNE 30, 2007	JUNE 30, 2006
Cash and investments.................................................................................................................. Capital assets, net of accumulated depreciation...................................................................... Revenue bonds, notes payable, certificates of participation, and capital lease obligations Accrued compensated absences................................................................................................ Net assets.......................................................................................................................................	$45,858,409 $195,293,070 $62,993,727 $14,943,370 $158,905,189	$34,954,253 $178,184,836 $66,800,645 $14,537,972 $130,007,956
SUPPLEMENTAL INFORMATION (unaudited)	FY 2007	FY 2006
Employment Statistics Faculty and Administrative.................................................................................................... Civil Service................................................................................................................................ Student Employees.................................................................................................................. Total Employees.............................................................................................................. Enrollment Statistics Fall term enrollment – undergraduate................................................................................... Fall Term enrollment – graduate............................................................................................ Fall term enrollment – extension............................................................................................ Total.................................................................................................	938 839 353 2,130 9,937 1,243 1,169 12,349	937 837 352 2,126 9,825 1,194 1,110 12,129
UNIVERSITY PRESIDENT
During Audit Period: Mr. Louis V. Hencken Currently: Dr. William L. Perry (eff. 7-1-07)

Reconciliations not timely

Checks outstanding more than 6 months

Late reporting of financial aid payments

Incorrect enrollment status

Reconciliations not performed

No documentation of contacts made

Federal regulations require contacts

Noncompliance with State Officials and Employees Ethics Act

Use of negative time keeping system used by salaried employees

Inadequate basis for allocating expenditures between University and University Related Organizations

Percentage of time not supported

University officials do not concur

Auditor comment

State law requires employees to submit time sheets documenting time spent on official State business

Auditors believe positive time keeping system required by law

Bookstore inventory adjustments not adequately explained or recorded

Written policy needed for Bookstore donations and price reductions

Late deposits

Lack of documentation

No receipts log maintained

FY 2007

FY 2006

Total Operating Expenses....................................................................................................

Capital appropriations, capital gifts and donated assets.......................................................

INCREASE IN NET ASSETS.....................................................................................................

UNIVERSITY PRESIDENT