REPORT DIGEST

NORTHEASTERN ILLINOIS UNIVERSITY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2020

Release Date:  May 25, 2021

FINDINGS THIS AUDIT:  3

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

FINDINGS LAST AUDIT: 0

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 (University)
Financial Audit as of and for the year
ended June 30, 2020.  A separate digest
covering the University’s Compliance
Examination (including the Single Audit)
for the year ended June 30, 2020 will be
released under a separate cover.

SYNOPSIS

• (20-01) The University did not have
adequate internal control over reporting
its census data and did not have a
reconciliation process to provide
assurance census data submitted to its
pension and other postemployment benefits
was complete and accurate.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE INTERNAL CONTROLS OVER CENSUS
DATA

The University did not have adequate
internal control over reporting its
census data and did not have a
reconciliation process to provide
assurance census data submitted to its
pension and other postemployment benefits
was complete and accurate.

During testing, some of the more
significant issues we noted included the
following:

• The University had not performed an
initial complete reconciliation of its
census data recorded by SURS and CMS to
its internal records to establish a base
year of complete and accurate census
data.

• We performed an analysis of
transactions reported by the University
to SURS during the census data
accumulation period throughout Fiscal
Year 2018, noting four of seven (57%)
employees with a return from a leave of
absence had the end date of the leave of
absence untimely reported to SURS by the
University. SURS determined the total
potential impact to each of these
employees’ total service credit was it
could be off by one-half to 6 years.

• As of the end of the census data
accumulation year on June 30, 2018, we
identified eight employees where each
employee’s associated termination or
rehire date(s) had been untimely reported
to SURS. SURS determined these errors
resulted in the employees being
misclassified between the active,
retired, and inactive member categories
within SURS. The total potential impact
to each former employee's total service
credit was it could be off between 0.0
and 1.75 years (Finding 1, pages 74-78)

We recommended the University implement
controls to ensure census data events are
timely and accurately reported to SURS
and CMS.  Further, we recommended the
University work with SURS and CMS to
develop an annual reconciliation process
of its active members’ census data from
its underlying records to a report from
each plan of census data submitted to the
plan’s actuary.

University officials agreed with our
recommendation.

OTHER FINDINGS

The remaining findings pertain to
weaknesses in computer security and lack
of adequate controls over review of
service providers.  We will review the
University’s progress towards the
implementation of our recommendations in
our next financial audit.

AUDITOR’S OPINION(S)

The auditors stated the financial
statements of the University as of and
for the year ended June 30, 2020, are
fairly stated in all material respects.

This financial audit was conducted by
Roth & Co. 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:JGR