FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
GRANTS INCORRECTLY CALCULATED
The Illinois Community College Board (Board) calculated fiscal year 2002 grants to
community college districts incorrectly. We noted that 5 of 16 (31%) grants to community
college districts were not calculated correctly, resulting in grant under/overpayments to
all community colleges. The under/over payment ranges from an underpayment of $300,496 to
an overpayment of $118,187. (Finding 1, pages 11-12)
We recommended the Board implement procedures to ensure the accuracy of the allocation
calculation.
Board officials concurred with our finding and recommendation and stated they will take
action to ensure correct data is used. Further, formulas in the electronic software will
be reviewed to verify correct calculations are being performed.
LATE GRANT INFORMATIONAL REPORTS
The Board did not receive all informational grant reports from community colleges
by the required deadlines. We noted that 567 out of 1,501 reports in FY 2001 and 560 out
of 2,067 in FY 2002 were received late. Board staff indicated that many colleges submit
their informational state grant reports along with their audited financial statements,
which have a later due date. (Finding 3, page 14) This finding has been repeated since
1996.
We recommended the Board strengthen procedures for the community college districts
to comply with the current reporting requirements of the Illinois Administrative Code or
revise such deadlines.
Board officials concurred with our finding and recommendation and stated they do not
have statutory authority to penalize the community colleges for late submissions of grant
reports. They also indicated they will continue to send reminders to the colleges. (For
previous Board responses, see Digest Footnote #1.)
LATE GRANT REFUNDS
Our audit disclosed 4 out of 12 State grant refunds from community colleges were
received late. The late refunds totaled $117,215 and were between 1 and 130 days late. The
Grant Funds Recovery Act requires unused grant funds to be returned within 45 days of the
end of the grant period. (Finding 2, page 13) This finding has been repeated since
1996.
We recommended the Board strengthen procedures for the community college districts
to comply with the current refund submission requirements of the Board's Policy Guidelines
and the Grant Funds Recovery Act and enforce the deadlines for submitting refunds.
Board officials concurred with our finding and recommendation and stated they do not
have statutory authority to penalize the community colleges for late submissions of grant
refunds. They also indicated they will continue to remind the colleges of the due date for
refunds. (For previous Board responses, see Digest Footnote #2.)
OTHER FINDINGS
The remaining findings and recommendations were less significant and are reportedly
being given attention by Board management. We will review progress toward implementation
of our recommendations during our next audit. Responses were provided by Ellen Andres,
Chief Operating Officer.
AUDITORS' OPINION
Our auditors state that the financial statements of the Illinois
Community College Board's nonshared funds for the year ended June 30, 2002 are fairly
presented in all material respects.
____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:TLD:pp
SPECIAL ASSISTANT AUDITORS
The accounting firm of Sikich Gardner & Co, LLP served as our special
assistant auditors for this engagement.
DIGEST FOOTNOTES
#1 LATE GRANT INFORMATIONAL REPORTS - Previous Board Responses
2000: The Board concurs with the finding and will continue to send reminders to the
colleges. College report deadlines will be reviewed for adjustments that may help the
timing of reports.
1999: The Board concurs with the finding and will continue to send out reminders.
College report deadlines will be reviewed to see if adjustments can be made.
1998: The Board concurs with the finding and will continue to send out report deadline
reminders to the colleges. We will also seek a change in the Administrative Rules to
require reports and grant refunds to be due at the same time as the college audits. We
believe this will alleviate some of the late report submissions.
1996: The Board will consider, per the audit recommendation, revising the deadlines for
the community colleges' submission of state and federal grant reports, where appropriate.
As noted in the finding, the Board does require community colleges to comply with
current reporting requirements. The Board documents and publishes required due dates of
all reports due by the colleges to the Board. This system wide report is mailed to each
community college president monthly, and due dates are discussed during the official
college recognition visit conducted by the Board. Prior to the due date of the annual
restricted grant reports, the Board sends out a reminder letter which includes a copy of
the report format. The late receipt of these reports does not have a fiscal impact on the
agency or the grants distributed by the agency.
#2 LATE GRANT REFUNDS - Previous Board Responses
2000: The Board concurs with the finding and will continue to send reminders
and enforce the deadlines for submitting refunds.
1999: The Board concurs with the finding and will continue to send out reminders and
enforce the deadlines for submitting refunds.
1998: The Board concurs with the finding and will continue to send out reminders and
enforce the deadlines for submitting refunds.
1996: The Board will continue to enforce its deadlines for submitting refunds of
unexpended state grant funds by sending timely reminder letters to those colleges from
which refunds are due.
The Board currently sends reminder letters each January to those colleges from which
refunds are due to help expedite the collection of these state grant refunds. Until a
college's audited financial statements are prepared and the amount of any refund due is
verified by an independent audit, colleges sometimes delay sending refunds of state grants
back to the Board. The Board will amend its current procedures to send out reminder
letters immediately upon receipt of the community college's audited financial statements.
