REPORT DIGEST

 

SOUTHERN ILLINOIS UNIVERSITY

 

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

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

For the Year Ended:

June 30, 2005

 

Summary of Findings:

Total this audit                          3

Total last audit                          3

Repeated from last audit           1

 

Release Date:

March 23, 2006 

 

 

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 TTY (888) 261-2887

 

This Report Digest and the Full Report are also available on

the worldwide web at

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

 

 

 

 

 

 

 

SYNOPSIS

 

 

      Timesheets are not maintained in compliance with the State Officials and Employees Ethics Act.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the reverse page.}


                                                                      SOUTHERN ILLINOIS UNIVERSITY

                                                   FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

                                                                    FOR THE YEAR ENDED JUNE 30, 2005

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

 
FY2005

 

FY2004

OPERATING REVENUES

    Student tuition and fees........................................

    Auxiliary enterprises.................................................

    Grants and contracts............................................

    Sales and services of educational activities..............

    Other.............................................................

         Total Operating Revenues..................

OPERATING EXPENSES

    Instruction...........................................................

    Research..............................................................

    Public services...................................................

    Academic support.................................................

    Student services.....................................................

    Institutional support...............................................

    Operation and maintenance of plant........................

    Scholarships and fellowships...................................

    Auxiliary enterprises..................................... Depreciation............................................................

    Additional on-behalf SURS allocation for unfunded liability...

Other....................................................................

Total Operating Expenses................................

Operating Loss.....................................................

NONOPERATING REVENUES (EXPENSES)

    State appropriations............................................

    Payments on behalf of the University....................

    Additional on-behalf SURS allocation for unfunded liability.............................................................

    Other non-operating revenues (expenses), net.........

      Net Non-operating Revenues .......................

Income (Loss) Before Capital Contributions.......

     Capital appropriations, additions to endowments and
     capital grants and gifts..........................................

INCREASE IN NET ASSETS.................................

Net assets, beginning of the year...............................

Net assets, end of the year

  

     $144,102,417

        74,706,877

        90,701,261

        83,291,635

             374,864

  $393,177,054

 

     $242,327,412

        48,383,431

        55,440,574

        98,746,353

        52,675,779

        56,640,579

        60,947,591

        19,019,815

        70,180,400

        31,842,676

                      0

             410,227

  $736,614,837

($343,437,783)

 

     $217,425,727

        98,121,894

 

                      0

        31,161,479

  $346,709,100

      $3,271,317

 

        $9,040,426

    $12,311,743

     $355,430,562

$367,742,305                         

 

$128,651,935

      70,679,014

      88,010,306

      72,907,124

          468,086

$360,716,465

 

  $225,548,481

      48,493,944

      52,498,428

      92,270,967

      47,787,416

      58,298,105

      59,610,827

      18,501,136

      70,637,616

      29,140,624

    141,111,746

            90,328

$843,989,618

($483,273,153)

 

  $213,458,064

      92,928,477

 

    141,111,746

      24,202,508

$471,700,795

($11,572,358)

 

    $20,719,758

   $9,147,400

  $346,283,162

$355,430,562

SELECTED ACCOUNT BALANCES

JUNE 30, 2005

JUNE 30, 2004

Cash and investments....................................

Capital assets, net of accumulated depreciation.............

Total Assets.............................................................

Revenue bonds, notes payable and capital lease

         obligations.........................................................

Accrued compensated absences..................................

Total Liabilities............................................................

Net assets................................................................

$222,091,080

$472,049,234

$763,763,703

 

$191,202,009

$44,878,658

$396,021,398

$367,742,305

$197,004,741

$449,902,411

$712,540,715

 

$151,881,739

$44,430,126

$357,110,153

$355,430,562

UNIVERSITY PRESIDENT

During Audit Period: Dr. James E. Walker

Currently:  Glenn Poshard

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timesheets are only maintained for the Universities hourly paid employees, extra help and student workers

 

 

 

 

 

 

 

 

University officials disagree

 

 

 

 

 

 

Auditors’ Comment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

 

      Our 2005 audit of Southern Illinois University is presented in three volumes: Compliance Examination; Financial Audit; and Supplementary Financial Information.  The findings and recommendations are contained in the Compliance Examination volume.

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

TIMESHEETS ARE NOT MAINTAINED IN COMPLIANCE WITH THE STATE OFFICIALS AND EMPLOYEES ETHICS ACT

 

      The University did not require time sheets from certain of its employees, including those assigned to its University Related Organizations.

 

      The State Officials and Employees Ethics Act (Act) requires the University to adopt personnel policies consistent with the Act.  The Act (5 ILCS 430/5-5(c)) states that the policies shall require State employees to periodically submit time sheets documenting the time spent each day on official State business to the nearest quarter hour.

 

      We noted the majority of the Universities employees did not maintain time sheets in compliance with the Act.  Employee’s time is generally tracked using the Human Resources Management System, which is a “negative” timekeeping system whereby the employee is assumed to be working unless noted otherwise.  The only employees documenting their work time to the nearest quarter hour were hourly paid civil service employees, extra help, student workers, and non-status employees.  (Finding No. 1, pages 19-21)

 

      We recommended the University require all its employees to maintain time sheets in compliance with the Act.

 

      The University respectfully took exception to our finding.  University personnel indicated that its current timekeeping policies and procedures, as approved by the Office of the Executive Inspector General, meet the intent of the Act and do so in a more efficient and cost effective manner than the procedures specified by this finding.

 

      In an auditors’ comment, we pointed out that the memorandum from the Office of the Executive Inspector General, upon which the University relied, states it is not a legal opinion.  Further, the auditors continue to believe that a positive timekeeping system for State employees is required by the Act.  If the University continues to disagree with this conclusion, we further recommended that it seek a formal, written opinion from the Attorney General’s Office on the requirements of this statutory provision.

 

OTHER FINDINGS

 

      The remaining findings are reportedly being given attention by the University.  We will follow-up on all findings in our next audit of the University.

 

      Mr. Ron Cremeens, Internal Audit Director, provided the University's responses.

 

 

AUDITORS’ OPINION

 

      Our auditors stated the financial statements of the University as of June 30, 2005 and for the year then ended are fairly presented in all material respects.

 

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:KAL:pp

 

 

SPECIAL ASSISTANT AUDITORS

 

      Kerber, Eck & Braeckel LLP were our special assistant auditors for this audit.