REPORT DIGEST EASTERN ILLINOIS UNIVERSITY COMPLIANCE EXAMINATION AND SINGLE AUDIT FOR THE YEAR ENDED JUNE 30, 2019 Release Date: May 27, 2020 FINDINGS THIS AUDIT: 8 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 7 -- 1 -- 8 Category 3: 0 -- 0 -- 0 TOTAL: 7 -- 1 -- 8 FINDINGS LAST AUDIT: 1 Category 1: Findings that are material weaknesses in internal control and/or a qualification on compliance with State laws and regulations (material noncompliance). Category 2: Findings that are significant deficiencies in internal control and noncompliance with State laws and regulations. Category 3: Findings that have no internal control issues but are in noncompliance with State laws and regulations. State of Illinois, Office of the Auditor General FRANK J. MAUTINO, 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 • (19-02) The University did not review federal work study hours worked against class hours scheduled to ensure students were not working during a scheduled class and that they were paid for the correct number of hours. • (19-05) The University did not have adequate controls over procurement card transactions. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS FEDERAL WORK STUDY HOURS DURING SCHEDULED CLASS HOURS AND ERRORS IN TIMESHEETS Eastern Illinois University (University) did not review federal work study (FWS) hours worked against class hours scheduled and timesheets to ensure students were not working during a scheduled class and that they were paid for the correct number of hours. During testing, auditors noted the following: • Four of 37 (11%) individuals tested participating in the federal work study program did not reflect the correct number of hours worked or had incomplete documentation of the hours worked in their timesheets resulting in both overpayments and underpayments to the individuals. Documentation showed differences between the hours paid and hours worked ranged from an underpayment totaling one hour to 20 hours overpaid. • Three of 37 (8%) individuals tested worked during scheduled class hours. We recommended the University properly review federal work study hours to ensure none are worked during scheduled class hours and actual hours reported on timesheets are accurate. (Finding 2, pages 18-19) University officials agreed with the auditor’s recommendation. INADEQUATE CONTROLS OVER UNIVERSITY PROCUREMENT CARD TRANSACTIONS The University did not have adequate controls over procurement card (P-Card) transactions. In a sample of 40 transactions tested, auditors noted the following weaknesses and noncompliance: • Two (5%) charges tested were for items on an existing contract. • Two (5%) charges tested for logo/licensing items were not properly approved. • Seven (18%) charges tested did not have documentation of the fixed asset equipment form submission to the Business Office. • Eleven (28%) charges tested had a charge and payment that included sales tax. Total sales tax paid for the charges tested was $138. • Thirteen (33%) charges were missing proper descriptions entered in the software system. • Twenty-two (55%) charges tested exceeded the transaction limit of $2,500 and were made by cardholders for whom the University did not provide written documentation of advance approval. (Finding 5, pages 23-25) We recommended the University strengthen its internal controls over P-Card transactions to ensure compliance with the University’s policies and procedures. University officials disagreed with the auditor’s recommendation and stated the University believed their internal controls were adequate. In an auditor’s comment we noted the University’s did not follow the requirements in the P-Card Manual and did not provide adequate documentation to substantiate other claims in the University’s response. OTHER FINDINGS The remaining findings pertain to noncompliance with enrollment reporting requirements, failure to require positive time reporting for all employees, noncompliance with statutory mandates, inadequate compliance with payment card industry data security standards, weaknesses in cybersecurity programs and practices, and inadequate controls over external service providers. We will review the University’s progress towards the implementation of our recommendations in our next Single Audit and compliance examination. AUDITOR’S OPINIONS The financial audit report was released under a separate cover. The auditors stated the financial statements of Eastern Illinois University as of and for the year ended June 30, 2019, are fairly stated in all material respects. The auditors also conducted a Single Audit of the University as required by the Uniform Guidance. The auditors stated the University complied, in all material respects, with the types of compliance requirements that could have a direct and material effect on the Agency’s major federal programs for the year ended June 30, 2019. ACCOUNTANT’S OPINION The accountants conducted a compliance examination of Eastern Illinois University for the year ended June 30, 2019, as required by the Illinois State Auditing Act. The accountants stated the University complied, in all material respects, with the requirements described in the report. This Single Audit and State compliance examination were conducted by Sikich LLP. JANE CLARK Division Director This report is transmitted in accordance with Section 3-14 of the Illinois State Auditing Act. FRANK J. MAUTINO Auditor General FJM:PH