REPORT DIGEST

ILLINOIS STATE UNIVERSITY

STATE COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  April 27, 2023

FINDINGS THIS AUDIT: 11

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 – 2 -- 2
Category 2:  1 -- 8 -- 9
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 10 -- 11

FINDINGS LAST AUDIT: 14

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 the Compliance
Examination of Illinois State
University for the year ended June 30,
2022.  A separate digest covering the
University’s financial audit as of and
for the year ended June 30, 2022 was
previously released on February 16,
2023.  In addition, a separate digest
covering the University’s Single Audit
for the year ended June 30, 2022, was
previously released on March 23, 2023,
respectively.  In total, this report
contains 11 findings, three of which
were reported within the University’s
financial audit and single audit.

SYNOPSIS

• (22-07) The University did not run
the Illinois Institute for
Entrepreneurship Education.
• (22-10) The University did not
always ensure compliance with the
University Faculty Research and
Consulting Act and University policies
regarding outside employment.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

FAILURE TO RUN THE ILLINOIS INSTITUTE
FOR ENTREPRENEURSHIP EDUCATION

The Illinois State University
(University) did not run the Illinois
Institute for Entrepreneurship
Education (IIEE).

During testing, we noted the
University transferred the IIEE to the
Chicago State University (CSU) during
Fiscal Year 2011. (Finding 7, page 22)

We recommended the University run the
IIEE or seek a legislative remedy with
CSU to formally transfer the IIEE to
CSU.

University officials indicated they
will seek legislative support to
eliminate the law.

NONCOMPLIANCE WITH THE UNIVERSITY
FACULTY RESEARCH AND CONSULTING ACT

The Illinois State University
(University) did not always ensure
compliance with the University Faculty
Research and Consulting Act (Act) and
University policies regarding outside
employment.

During Fiscal Year 2022, faculty
members reported 72 instances of
outside employment to the University
Provost.

During testing, we noted the
following:

• 28 (39%) instances had the Request
for Approval of Secondary/Outside
Employment (Form PERS 927) submitted
by the faculty member for approval by
the University’s Provost between 1 to
104 days late.

• 36 (50%) instances had Form PERS 927
approved by the University’s Provost
between 1 to 104 days late.

• 46 (64%) instances did not have the
Annual Report of Secondary/Outside
Employment (Form PERS 928) submitted
by the faculty member.

• One (1%) instance had the Form PERS
928 submitted by the faculty member to
the University’s Provost during
September 2022, 15 days late. This lag
reduced or eliminated the amount of
time available for review and approval
by the faculty member’s department
chair and dean prior to the deadline
for receiving final approval from the
University’s Provost on September 30,
2022.

• 6 (8%) instances had an approval for
outside employment by the University’s
Provost, but the PERS 927 on file did
not have the expected end date of the
faculty member’s employment.

Further, this finding was first noted
during the University’s Fiscal Year
2012 State compliance examination. As
such, University management has been
unsuccessful in implementing a
corrective action plan to remedy these
deficiencies.  (Finding 10, pages
26-27)  This finding has been reported
since 2012.

We recommended the University’s
Provost take appropriate corrective
action and implement internal controls
to ensure faculty members with outside
research, consulting services, or
employment receive written pre-
approval to conduct the requested
activity and annually disclose the
time spent on these activities in
accordance with State law and
University policy.

University officials indicated they
continue to review the process as well
as inform faculty of the reporting
obligation.

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 State compliance
examination.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the
University for the year ended June 30,
2022, as required by the Illinois
State Auditing Act.  The accountants
qualified their report on State
compliance for Finding 2022-001 and
Finding 2022-002.  Except for the
noncompliance described in these
findings, the accountants stated the
University complied, in all material
respects, with the requirements
described in the report.

This State compliance examination was
conducted by RSM US 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:TLK