REPORT DIGEST

NORTHEASTERN ILLINOIS UNIVERSITY

COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2021

Release Date:  June 2, 2022

FINDINGS THIS AUDIT:  16

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  2 -- 13 -- 15
Category 3:  0 -- 0 -- 0
TOTAL:  2 -- 14 -- 16

FINDINGS LAST AUDIT: 20

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 (University)
Compliance Examination for the year
ended June 30, 2021.  Separate digests
covers the University’s Financial
Audit and Single Audit as of and for
the year ended June 30, 2021.  In
total, this report contains 16
findings, three were reported in the
Financial Audit and eight were
reported in the Single Audit.


SYNOPSIS

• (21-09) The University did not have
adequate controls over its property
and equipment.

• (21-14) The University did not
ensure an adequately developed and
tested disaster recovery plan existed
for critical applications.

• (21-15) Noncompliance with the
Illinois Articulation Initiative Act.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROLS OVER UNIVERSITY
PROPERTY AND EQUIPMENT

The University did not have adequate
controls over its property and
equipment.

During our tracing of 80 equipment
items totaling $297,168 to the annual
inventory report submitted to the
Department of Central Management
Services (CMS), we noted 2 (3%)
equipment items consisting of a laptop
cart and an oversized printer totaling
$2,365 purchased prior to the annual
inventory report date could not be
traced to the annual inventory report.
It was determined the equipment items
were not timely recorded in the
University’s property records to allow
for the equipment to be included in
the annual inventory report. These
items were recorded 236 to 309 days
after the acquisition dates.

During our review of the University’s
annual inventory count certification,
we noted the University did not
accurately report the results of its
annual inventory count to CMS. The
University performed its annual
inventory count between July 2020 and
October 2020. During this timeframe,
the University identified 153
unlocated items totaling $108,724
consisting of
127 non-computer items totaling
$72,062, and 26 computers and laptops
totaling $36,662. The University
prepared and submitted deletion
requests for these unlocated items
prior to
the submission of its annual inventory
certification to CMS, allowing the
University to report discrepancy of
only 2 items totaling $2,026 between
its records and its annual inventory
count.

The University did not have approved
written policies and procedures on
certain critical functions and
processes related to equipment
management such as:

• Proper conduct of the physical count
process.
• Adequate accounting and monitoring
of electronic devices individually
costing below $1,000.
• Delineating the categories of
equipment that are subject to theft
with value less than the nominal value
to ensure equipment is marked with a
unique identification number.
(Finding 09, pages 33-35)  This
finding has been repeated since 2018.

We recommended the University improve
its procedures to ensure property and
equipment records are accurately
maintained and assets are properly
accounted for.  We also recommended
the University establish relevant
equipment management policies to
ensure procedures are observed
consistently by employees.

University officials agreed with the
finding.

LACK OF DISASTER CONTINGENCY PLAN

The University did not ensure an
adequately developed and tested
disaster recovery plan existed for
critical applications.

The University had invested in
computer hardware and systems and had
established several critical,
confidential or financially sensitive
applications for use in meeting its
mission. However, the University had
not developed and tested a disaster
recovery plan to recover their
applications. (Finding 14, page 45)
This finding has been repeated since
2013.

We recommended the University develop
a formal disaster recovery plan to be
tested at least annually. The plan
should be continuously updated to
reflect environmental changes and
improvements identified from the
tests.

University officials agreed with the
finding.

NONCOMPLIANCE WITH THE ILLINOIS
ARTICULATION INITIATIVE ACT

The University did not submit a
minimum of one course per major under
the Illinois Articulation Initiative
(Initiative) for some majors offered
by the University.

The Initiative, through its
itransfer.org website, exists to ease
the transfer of students among the
State’s associate and baccalaureate
degree granting institutions.

During testing, we noted the
University did not have a minimum of
one course included within the related
Initiative major for its art, biology,
early childhood education, physics,
political science, psychology,
English, history, media and
communication arts, theater arts and
sociology degree programs.  (Finding
15, page 46)

We recommended the University fully
comply with the requirements of the
Act by maintaining a minimum of one
course in the related Initiative major
that the University is offering.

University officials agreed with the
finding.

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 engagement.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the
University for the year ended June 30,
2021, as required by the Illinois
State Auditing Act.  The accountants
qualified their report on State
compliance for Finding 2021-001.
Except for the noncompliance described
in this finding, the accountants
stated the University complied, in all
material respects, with the
requirements described in the report.

This State compliance examination 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