SOUTHERN ILLINOIS UNIVERSITY
FINANCIAL AND COMPLIANCE AUDIT
(In accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended:
Summary of Findings:
State of Illinois
Office of the Auditor General
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217)782-6046 or TDD (217) 524-4646
This Report Digest is also available on
SOUTHERN ILLINOIS UNIVERSITY
FINANCIAL AND COMPLIANCE AUDIT
FOR THE YEAR ENDED JUNE 30, 1998
|FINANCIAL OPERATIONS (CURRENT FUNDS)||
Student Tuition and Fees
Grants and Contracts
Operation of Plant
Scholarships and Fellowships
|BALANCES (ALL FUNDS)||
AT JUNE 30, 1998
AT JUNE 30, 1997
|Cash and Investments
Campus Plant Facilities
Accrued Compensated Absences
Revenue Bonds Payable
|Employees (Fall Term)
Students (Full-time Equivalent)
Instruction Costs Per Full-time Equivalent Student
Classroom Utilization (Daytime Maximum)
|During Audit Period: Dr. Ted
Currently: Dr. Ted Sanders
University needs to monitor Year 2000 progress
Admission decisions not documented
Need to improve documentation of property locations
Our 1998 audit of Southern Illinois University is presented in four volumes: State Compliance Audit; Federal Compliance Audit; Financial Audits; and Supplementary Financial Information. The State Compliance Audit contains five compliance findings, and the Federal Compliance Audit contains seven findings.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
NEED TO CONTINUE YEAR 2000 EFFORTS
The Universitys efforts to define and correct impending computer problems due to the impact of the Year 2000 are not fully adequate. The University has made progress in addressing the documentation issues surrounding the Year 2000. In the event the Oracle System implementation does not stay on schedule, the University would need to consider alternative options. Lack of adequate back-up plans could force the University to adopt a reactive rather than a proactive stance when addressing the issues. The University should ensure all future computer purchases follow an established protocol, ensuring the proper technical verbiage has been included to protect the University in the event an application fails or crashes in 2000 resulting in an interruption of business. (Finding 98-5, page 16 in State Report)
We recommended the University continue taking steps necessary to ensuring a successful conversion before, during and after 2000.
University officials accepted our recommendation and stated that the University continues its Year 2000 Compliance efforts with the implementation of Oracle. As a back up, SIUCs mission critical legacy systems are being modified to handle Year 2000 conversion problems. At SIUE, over 90% of its mission-critical application systems already have been converted and tested successfully to ensure Year 2000 compliance, and the remainder will be completed in 1999. SIUE reports it is currently inventorying and testing every microcomputer on its main campus to assure Year 2000 compliance.
LACK OF PROPER DOCUMENTATION FOR ADMISSION EXCEPTIONS
The University is not maintaining sufficient documentation to support the decision to admit high school students who do not meet the minimum requirements for high school course work credits. Three of the ten students selected for testing had deficiencies in one or more areas of the required high school curriculum. The admission files did not contain any documentation as to the consideration of the minimum high school standards or the reasons why an exception to the admission standards was granted. The University does not currently have a policy requiring the documentation of admissions of students not meeting the prerequisites.
The Southern Illinois University Management Act states that "no new student shall be admitted to...the University unless such student has satisfactorily completed at least 15 units of high school course work from the following 5 categories:
4 years of English
3 years of social studies
3 years of mathematics
3 years of science
2 years of electives"
This lack of documentation undermines the intent of the statute to foster high academic standards and to ensure that all applicants are treated equitably. (Finding 98-2, page 13 in State Report)
We recommended the University follow the statutory requirements for the proper admission of students and maintenance of documentation for exception situations.
University officials stated that they accepted our recommendation.
LACK OF CONTROLS OVER EQUIPMENT FOR HONORS PROGRAM
The University did not maintain adequate records for all the equipment purchased through the Honors Program. Seven of seventeen pieces of equipment charged to the Honors Program and selected for testing were on loan to faculty members. However the proper request forms were not completed for six of these items. The total value of this equipment, which was all in the possession of one faculty member, was $3,268. In addition, the University does not appear to have adequate control procedures to ensure that all equipment is retrieved from departing professors. The State Property Control Rules require the University to be responsible for establishing and maintaining internal control records over property and equipment. (Finding 98-1, page 12 in State Report)
We recommended the University strengthen its procedures over property and equipment loaned to professors. Appropriate loan request forms should be completed and approved on a timely basis prior to the removal of any equipment from the campus. In addition, the University should emphasize to professors that University equipment must be returned upon their departure.
University officials accepted our recommendation and stated that the missing documentation has been placed in the correct files, and that a plan has been put in place to prevent such gaps in the records in the future.
The remaining findings are less significant and have been given appropriate attention by the University. We will review the Universitys progress towards the implementation of our recommendations in our next compliance audit.
Mr. Ron Cremeens, Executive Director of Audits, provided the Universitys responses.
Our auditors stated the June 30, 1998 financial statements of the University are fairly presented.
SPECIAL ASSISTANT AUDITORS
PricewaterhouseCoopers L.L.P. were our special assistant auditors for these audits.