REPORT DIGEST

NORTHEASTERN ILLINOIS UNIVERSITY

 

FINANCIAL AND COMPLIANCE AUDIT

(In accordance with the Single Audit Act and OMB Circular A-133)

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                      2

Total last audit                      2

Repeated from last audit       0

 

Release Date:

February 24, 2004

 

 

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 TDD (217) 524-4646

 

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

SYNOPSIS

 
  • The University failed to provide currently enrolled students and current employees direct individual notice of the availability of the annual campus security report.
  • The University did not obtain the necessary Real Estate Lease Form Disclosure Statement.

 

 

 

 

 

 

 

 

 

 

 

{Financial Information is summarized on the reverse page.}

 

NORTHEASTERN ILLINOIS UNIVERSITY

 FINANCIAL AND COMPLIANCE AUDIT

       For The Year Ended June 30, 2003

 

STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

FY 2003

FY 2002

OPERATING REVENUES

     Student tuition and fees (net of scholarship allowances)

     Grants and contracts

     Auxiliary enterprises

     Payments on behalf of the University

     Other operating revenues

          Total Operating Revenues

 

OPERATING EXPENSES

     Instruction

     Research

     Public service

     Academic support

     Student services and programs

     Institutional support

     Operation and maintenance of plant

     Scholarships and fellowships

     Auxiliary enterprises

     Depreciation

     Other operating expenses

          Total Operating Expenses

Operating loss

 

NONOPERATING REVENUES (EXPENSES)

     State Appropriations

     Investment income

     Interest on indebtedness

     Other nonoperating revenue

     Net nonoperating revenues

          Income before other revenues, expenses,
          gains and losses

     Capital additions provided by State of Illinois

      Loss on disposal of capital assets

INCREASE IN NET ASSETS

Net assets, beginning of year

Net assets, end of year

 

$21,758,716

23,207,802

2,577,555

13,190,418

1,831,718

$62,566,209

 

 

$34,092,827

125,797

12,052,847

6,569,509

6,720,382

24,283,640

9,422,621

4,510,231

2,119,574

4,132,106

776,561

$104,806,095

($42,239,886)

 

 

$42,610,724

226,799

(377,666)

72,602

$42,532,459

 

$292,573

4,213,536

(173,389)

$4,332,720

$81,104,395

$85,437,115

 

$20,186,426

21,629,234

2,426,829

11,913,629

1,749,347

$57,905,465

 

 

$34,626,306

157,533

11,090,027

6,114,161

6,534,196

22,949,242

9,995,925

4,395,033

2,326,005

3,913,580

575,332

$102,677,340

($44,771,875)

 

 

$44,996,320

422,595

(402,756)

388,706

$45,404,865

 

$632,990

4,490,362

(565,135)

$4,558,217

$76,546,178

$81,104,395

SELECTED ACCOUNT BALANCES

JUNE 30, 2003

JUNE 30, 2002

Cash and short-term investments

Capital Assets

Accrued compensated absences

Revenue Bonds Payable

$23,426,560

78,180,022

10,986,855

5,050,000

$25,992,162

75,824,673

12,426,339

5,325,000

SUPPLEMENTARY INFORMATION (UNAUDITED)

FY 2003

FY 2002

Employment Statistics

          Administration

          Faculty

          Civil Service

          Students

                    Total Employees

Selected Activity Measures

Annual full-time equivalent students

Full-time equivalent cost per student – Undergraduate

Full-time equivalent cost per student – Graduate

 

262

403

486

389

1,540

 

8,234

$6,831

$9,502

 

238

379

470

367

1,454

 

6,629

$7,169

$9,772

UNIVERSITY PRESIDENT

During Audit Period: Dr. Salme H. Steinberg

Currently: Dr. Salme H. Steinberg

 

 

 

 

 

Required direct notification did not occur

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease Form Disclosure Statement was not obtained prior to the execution of the lease

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CAMPUS SECURITY REPORT NOTIFICATION

The University failed to provide currently enrolled students and current employees direct individual notice of the availability of the annual campus security report.

The Department of Education Student Assistance General Provision (34 CFR Part 668, Subpart D, 668.41) requires that by October 1 of each year, the University must distribute to all enrolled students and current employees its annual security report.

The University agreed to comply with the requirements of the Federal Regulations concerning institutional and financial assistance information for students and prospective students, upon signing the U.S. Department of Education Student Financial Assistance Program Participation Agreement.

If the University fails to take corrective actions, the United States Secretary of Education could take action against the University by imposing sanctions. The type of sanction would depend on the severity of the violations. Possible sanctions could include the assessment of fines and in severe violations, the limitation, suspension, or termination of the University from participation in the Title IV, HEA Programs. (Finding 1, Pages 15-16)

We recommended that the University develop policies and procedures that ensure all currently enrolled students and all current employees receive direct individual notice of the availability of the annual campus security report as required by federal regulations.

The University agreed with the finding and stated that they will implement the recommendation.

 

REAL ESTATE LEASE FORM DISCLOSURE STATEMENT NOT OBTAINED

The University did not obtain the necessary Real Estate Lease Form Disclosure Statement.

Our review of real property leases revealed that the University entered into a new lease agreement for additional office space but had not obtained the required Real Estate Lease Form Disclosure Statement.

Section 3.1 of the Corrupt Practices Act (50 ILCS 105/3.1) states, "Before any contract relating to the ownership or use of real property is entered into by and between the State or any local government unit or any agency of either, the identity of every owner and beneficiary having any interest, real or personal, in such property, and every member, shareholder, limited partner or general partner entitled to receive more than 7 ˝% of the total distributable income of any limited liability company, corporation, or limited partnership having any interest, real or personal, in such property must be disclosed."

Failure to obtain the required disclosures is a violation of State statutes. (Finding 2, Page 17)

We recommended that the University obtain the required Real Estate Lease Form Disclosure Statement for new leases before the lease is signed.

University officials agreed with the recommendation and stated that the form in question has now been completed and provided to the auditors.

University responses were provided by Mark Wilcockson, Vice President for Finance and Administration.

 

 

AUDITORS' OPINION

Our auditors stated the University’s financial statements at June 30, 2003 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 Nykiel, Carlin & Co.