REPORT DIGEST

EASTERN ILLINOIS UNIVERSITY

COMPLIANCE EXAMINATION AND SINGLE AUDIT
FOR THE YEAR ENDED JUNE 30, 2020

Release Date:  June 29, 2021

FINDINGS THIS AUDIT:  9

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 0 -- 1
Category 2:  5 -- 3 -- 8
Category 3:  0 -- 0 -- 0
TOTAL:  6 -- 3 -- 9

FINDINGS LAST AUDIT: 8

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

INTRODUCTION

This digest covers our federal Single
Audit and Compliance Examination of
Eastern Illinois University (University)
for the year ended June 30, 2020.  A
separate Financial Audit as of and for
the year ending June 30, 2020, was
previously released on June 23, 2021.  In
total, this report contains nine
findings, one of which was not reported
in the Financial Audit.

SYNOPSIS

• (20-2) The 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.
• (20-3) The University’s Fiscal
Operations Report and Application to
Participate (FISAP) records maintained
did not agree to the actual amounts
reported.
• (20-9) The University subsidized
operations of University activities
between accounting entities during fiscal
year 2020.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

FEDERAL WORK STUDY HOURS DURING SCHEDULED
CLASS HOURS

The 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 two of 37
(5%) individuals tested worked during
scheduled class hours. (Finding 2, pages
22-23)

We recommended the University properly
review federal work study hours to ensure
none are worked during scheduled class
hours.

The University agreed with the
recommendation and stated the University
has new reports in place to verify hours
worked against student class schedules
and hours worked during regularly
scheduled class times without proper
explanations will be paid with non-
Federal funds.

FISAP RECORDS MAINTAINED DID NOT AGREE TO
THE ACTUAL AMOUNTS REPORTED

The University’s Fiscal Operations Report
and Application to Participate (FISAP)
records maintained did not agree to the
actual amounts reported.

During testing, we noted two instances
for which the FISAP did not reflect the
correct amount per the University’s
records.  The amount reported on the
FISAP was $213,153 greater than the
amount in the University’s records.
(Finding 3, page 24)

We recommended the University improve
controls to ensure the information
reported on the FISAP is accurate.

University officials agreed with the
recommendation and stated the University
will ensure that FISAP data entry is
independently reviewed prior to
submission.  University officials also
stated the error was corrected with the
FISAP filed with the U.S. Department of
Education.

NONCOMPLIANCE WITH UNIVERSITY GUIDELINES

The University subsidized operations of
University activities between accounting
entities during fiscal year 2020.
Activities are functions which are self-
supporting in whole or in part, which are
directly related to instructional,
research, or service units.

During our review of compliance with the
University Guidelines, we noted the
Student Facilities accounting entity had
negative cash balances at the beginning
and end of the fiscal year, totaling $2.4
million and $3.1 million respectively.
Furthermore, the account did not have a
positive balance at any point during the
fiscal year. A negative cash balance is,
in effect, an unrecorded interfund
payable/receivable, thereby causing a
subsidy between funds to occur.  Student
Facilities accounts for the operations of
the University’s student union, a portion
of the student recreation center, and the
financing of the University’s athletic
facilities.  As of June 30, 2020, this
accounting entity had accounts
receivable, inventories and prepaid
expenses totaling $0.8 million. (Finding
9, page 32)

We recommended the University annually
review the activities of each accounting
entity, ensure fees charged for services
are sufficient to cover expenditures, and
take appropriate corrective actions to
ensure subsidies between accounting
entities do not continue.

University officials partially agreed
with the recommendation and sated that
due to competitive pressures, the
University is sometimes unable to raise
fees to fully recover the costs of some
operations.

OTHER FINDINGS

The remaining findings are reportedly
being given attention by the University.
We will review the University’s progress
towards the implementation of our
recommendations in our next Single Audit
and State Compliance Examination.

AUDITOR’S OPINIONS

The financial audit report was previously
released. The auditors stated the
financial statements of Eastern Illinois
University as of and for the year ended
June 30, 2020, 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, 2020.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of Eastern Illinois
University for the year ended June 30,
2020, 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