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, 2009
Summary of Findings:
Total This Year: 4
Total Last Year: 8
Repeated From Last Year: 2
Release Date: March 11, 2010
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 Full Report is also available on the worldwide web at
•The University did not have adequate controls over loan reporting. Specifically, the University did not report changes in enrollment status of students in the required time frame to the National Student Clearinghouse for Federal Students Loan Programs.
•The University misstated an amount on the Fiscal Operation Report and Application to Participate (FISAP) by $468,000. Specifically, the amount on the FISAP report for the federal share of community service earned compensation did not trace to supporting documentation provided by the Student Financial Aid Office.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
NEED TO IMPROVE CONTROLS OVER LOAN REPORTING
The University did not have adequate controls over loan reporting.
The Carbondale Campus did not report changes in enrollment status of students in the required timeframe to the National Student Clearinghouse (NSC) for federal student loan programs. Out of 33 enrollment status changes tested, 25 were not reported to the NSC. The NSC is Carbondale’s enrollment reporting service.
The National Student Loan Data System (NSLDS) Enrollment Reporting Guide requires schools to confirm and report the enrollment status of students who receive Federal student loans. As with any school/servicer arrangement for the administration of Title IV programs, the school remains responsible for submitting timely, accurate, and complete enrollment reporting roster files and for maintaining proper documentation in accordance with Federal Regulation 34 CFR 682.610(c).
A student’s enrollment status determines eligibility for deferment, grace periods, and repayments, as well as the Federal Government’s payment of interest subsidies. Enrollment reporting is critical for effective administration of the Title IV student loan programs. (Finding 1, pages 12-13) This finding was first reported in 2007.
We recommended the University implement policies and procedures to prevent backdated withdrawals of students and ensure the timely and accurate reporting of information to the National Student Clearinghouse. We also recommended the campus reevaluate its controls for identifying the withdrawal and graduation dates for its students.
University officials accepted our recommendations. (For the previous University response, see Digest Footnote #1.)
NEED TO IMPROVE REPORTING TO THE FEDERAL GOVERNMENT
The University misstated an amount on the Fiscal Operation Report and Application to Participate (FISAP) by $468,000.
The amount recorded on the FISAP for the Federal Share of community service earned compensation did not trace to supporting documentation provided by the Student Financial Aid Office. Additionally, this amount has been recorded incorrectly in three other locations. The amount recorded by the University was $52,006 as opposed to $520,006. The variance between these two amounts is $468,000. Other variances were noted where the supporting documentation was less than the amount reported. The combined variance of these occurrences totaled $6,526.
The FISAP report is misstated by $468,000 on four separate line items of the report. Although the amount does not appear to distort any calculations or other figures within the report, the amount recorded did not appear to be questioned through an internal review or edit checks that are imbedded in the online application. Additionally, the amount does not affect any line items associated with financial aid funding. (Finding 2, pages 14-15)
We recommended that the FISAP report undergo an internal review performed by personnel familiar with the report where clerical errors could be discovered prior to submission. Such a review would involve comparing the report to supporting documentation.
University officials accepted our recommendations.
The remaining two findings are reportedly being given attention by the University. We will review the University’s progress toward the implementation of our recommendations in our next audit.
Our auditors stated the financial statements of the University as of June 30, 2009 and for the year then ended are fairly presented in all material respects.
WILLIAM G. HOLLAND, Auditor General
SPECIAL ASSISTANT AUDITORS
Crowe Horwath LLP were our special assistant auditors for this audit.
#1 INADEQUATE CONTROLS OVER LOAN REPORTING – Previous University Response
University officials accepted the recommendation that the University implement policies and procedures to prevent backdated withdrawals of students and ensure the timely and accurate reporting of information to the National Student Clearinghouse.