REPORT DIGEST

NORTHEASTERN ILLINOIS UNIVERSITY

Financial Audit
For the Year Ended June 30, 2015

Release Date:  February 4, 2016

FINDINGS THIS AUDIT:  1

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 0 -- 1
Category 2:  0 -- 0 -- 0
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 0 -- 1

FINDINGS LAST AUDIT: 3

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 Northeastern
Illinois University’s Financial Audit
as of and for the year ended June 30,
2015.  The Northeastern Illinois
University’s Compliance Examination
(including the Single Audit) covering
the year ended June 30, 2015 will be
issued at a later date.

SYNOPSIS

• 15-1  The University had inadequate
internal controls over the review and
approval of 	journal entries and
bank reconciliations.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

NEED TO IMPROVE CONTROLS OVER JOURNAL
ENTRIES AND BANK RECONCILIATIONS

Northeastern Illinois University
(University) did not have adequate
controls over the review and approval
of journal entries and bank
reconciliations.

In our performance of auditing
procedures on grant revenue, we noted
that an erroneous journal entry posted
to the University’s accounting system
resulted in an overstatement of
beginning net position and an
understatement of grant revenue for
the fiscal year ended June 30, 2015
totaling $401,081.

In addition, our testing of six
journal entries for review and
approval revealed that three of these
entries were not reviewed or approved
by another individual prior to entry
into the University’s accounting
system.

Also, in our review of bank
reconciliations prepared for the
months of September 2014, February
2015 and June 2015, we noted that
although the bank reconciliations were
prepared within one week of the end of
the respective month, the
reconciliations were not reviewed and
approved by a person independent of
the preparer in a timely manner.

Specifically, one reconciliation from
September 2014 was not reviewed until
December 12, 2014, four
reconciliations from February 2015
were not reviewed until June 16, 2015,
and six reconciliations from June 2015
were not reviewed until various dates
in August 2015.  (Finding 1, pages
64-65)

We recommended the University
implement procedures to ensure that
all journal entries are reviewed and
approved by another individual prior
to entry into the University’s
accounting system and that bank
reconciliations be reviewed in a
timely manner.

University officials concurred with
the finding.

AUDITOR’S OPINION

Our auditors state the financial
statements of the Northeastern
Illinois University as of and for the
year ended June 30, 2015 are fairly
presented in all material respects.

FRANK J. MAUTINO
Auditor General

FJM:TLK

SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors for
this audit were CliftonLarsonAllen
LLP.