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REPORT DIGEST GOVERNORS STATE UNIVERSITY COMPLIANCE
EXAMINATION (In
accordance with the For the Year Ended: June 30, 2007 Summary of Findings: Total last audit 9 Repeated from last audit 3 Release Date: March 25, 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 awarded student financial aid to students at unapproved locations.
¨
The University used an incorrect period of
enrollment calculation on the return of Title IV funds calculation sheets
causing the amounts to be inaccurate and some of the funds were not timely
returned. ¨ The University did not timely submit pension contributions for employees paid from trust or Federal funds to the Board of Trustees of the State University Retirement System. {Financial Information is
summarized on the reverse page.} |
GOVERNORS STATE UNIVERSITY
COMPLIANCE EXAMINATION
For
The Year Ended June 30, 2007
|
INCOME FUND REVENUES AND EXPENDITURES |
FY 2007 |
FY 2006 |
FUND BALANCE – BEGINNING OF YEAR INCOME FUND REVENUES Student fees........................................................................ Excess funds....................................................................... Investment income............................................................... Miscellaneous...................................................................... Total
Income Fund Revenues........................................ INCOME FUND EXPENDITURES Personal services (including change in
accrued compensated absences).............................................................................. Medicare............................................................................. Contractual services............................................................. Travel................................................................................. Commodities........................................................................ Equipment and books........................................................... Telecommunications............................................................. Operation of vehicles........................................................... Awards, grants and matching funds....................................... Permanent improvements..................................................... Tuition and fee waivers........................................................ Total
Income Fund Expenditures................................... FUND BALANCE – END OF YEAR
|
$3,190,925 $18,548,070 0
823,761 131,800 $19,503,631 $7,915,080 946,167 2,742,727 295,434 471,983 987,043 664,391 53,230 50,570 1,221,520 1,036,759 $16,384,904
$6,309,652 |
$1,617,609 $14,906,669 599,097 478,435 63,817 $16.048,018 $6,616,023 939,757 2,569,759 232,698 639,577 1,111,923 160,197 51,729 106,748 1,101,651 944,640 $14,474,702
$3,190,925 |
|
SUPPLEMENTARY INFORMATION (Unaudited) |
FY 2007 |
FY 2006 |
|
Employment Statistics (Full
Time Equivalent - Average Number) Appropriated
funds: Faculty/administrative/other professional............................. Civil service...................................................................... Graduate assistants and Student employees......................... Nonappropriated
funds: Faculty/administrative........................................................ Civil service...................................................................... Student employees............................................................. Total Employees........................................................ |
389.3 185.6 30.8 136.1 84.9 40.8 867.5 |
316.7 182.4 29.2 115.8 70.8 34.2 749.1 |
|
Selected Activity Measures Annual
full-time equivalent students – undergraduate............... Annual full-time equivalent students – graduate....................... |
2,094 2,089 |
1,883 1,916 |
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UNIVERSITY
PRESIDENT |
||
|
During Audit Period:
Dr. Stuart Fagan – thru
6-30-07, Dr. Elaine Maimon – July 1, 2007 to Present Currently: Dr. Elaine Maimon |
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Some locations were
not approved in advance The University was unable to provide a
list of students receiving financial aid at offsite locations
University agrees
with auditors Incorrect
calculations performed Refunds were
inaccurate
Title IV refund was
returned late
University agrees
with auditors
Payments were
submitted monthly
The Pension Code
requires immediate transmission
University agrees
with auditors |
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS STUDENT FINANCIAL AID AWARDED TO STUDENTS AT UNAPPROVED LOCATIONS The University awarded student financial aid to students at unapproved locations. Our testing of the United States Department of Education
Institutional Participation and Oversight Service, Eligibility and
Certification Approval Report disclosed that 3 out of 29 offsite locations,
where the University provides education courses were not approved prior to
providing services at these locations.
The University was unable to provide us with a list of students
receiving financial aid at offsite locations that offered 50% or more of an
education program. (Finding 1, Page
14) We recommended the University seek approval from the Department of Education for any locations where educational programs are offered, prior to offering classes at these locations. University officials agreed with the finding and recommendation and stated that they have refined the current process to ensure that permission is obtained prior to offering classes at offsite locations. RETURN OF TITLE IV FUNDS The University used an
incorrect period of enrollment calculation on the return of Title IV funds
calculation sheets causing the amounts to be inaccurate and some of the funds
were not timely returned. During our testing of 40
students that withdrew from the University we noted: · 13 of the 40 students (33%) calculation sheets contained incorrect period of enrollment calculations. By using the incorrect calculations, the University failed to return $1,914 due to the Department of Education for student financial aid program refunds for 6 of the students. In addition, the University refunded to the Department of Education $3,029 in excess of the required refund for the remaining 7 students. ·
1 of the 40 students tested withdrew.
This resulted in the University being required to return Title IV
funds. The University however did not
return the funds timely. This refund
was returned 59 days late. (Finding
2, Page 15) We recommended the University
improve procedures to ensure that all Title IV funds calculations are
reviewed prior to returning money to the Department of Education. University officials agreed
with the finding and stated that they have refined their internal procedures. LATE
PAYMENTS TO THE STATE UNIVERSITY RETIREMENT FUND The University did not timely submit pension contributions for employees paid from trust or Federal funds to the Board of Trustees of the State University Retirement System (SURS). We examined payments made by the University to SURS for contributions for employees paid from trust or Federal funds and noted that the University was submitting payments on a monthly basis. The Illinois Pension Code (40 ILCS 5/15-181) requires the warrant or check drawn to SURS, together with the additional copy of the payroll supplied by the employer, shall be transmitted immediately to the Board of SURS. Failure to timely remit the funds may result in decreased earnings potential of the State University Retirement System and results in noncompliance with the Code. (Finding 5, Page 18)
We recommended that the University comply with the requirements of the Illinois Pension Code and promptly remit payments to the Board of Trustees of SURS. University officials agreed with the finding and stated that the process has changed to remit the payments in accordance with the Illinois Pension Code.
OTHER FINDINGS The remaining findings are reportedly being given attention
by University officials. We will
review progress toward implementation of our recommendations in our next
audit.
AUDITORS' OPINION The financial audit report has been previously issued. Our auditors state the University’s financial statements as of June 30, 2007 and for the year then ended, are fairly presented in all material respects. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:TLK:pp
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors
for this audit were Clifton Gunderson LLP. |