REPORT DIGEST

UNIVERSITY OF ILLINOIS

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2023

Release Date:  February 6, 2024

FINDINGS THIS AUDIT: 3

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

FINDINGS LAST AUDIT:  4

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

The University’s financial audit report
consists of three sets of financial
statements as follows – the financial
statements of the University, the revenue
bond financial statements of the Auxiliary
Facilities System, and the revenue bond
financial statements of the Health Services
Facilities System.

This digest covers the University of
Illinois’s Financial Audit as of and for the
year ended June 30, 2023.  The University’s
Compliance Examination and Single Audit will
be issued in separate reports at a later
date.

SYNOPSIS

•  (23-1) The University did not maintain
appropriate control over accounting for
grant subawards.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER REVENUE AND EXPENSE
ACCRUALS FOR GRANT SUBAWARDS

The University of Illinois (University) did
not maintain appropriate control over
accounting for grant subawards.

During our test work over revenues and
expenditures, it was noted that payments to
subrecipients of grant funds, and the
related reimbursements from the federal
government, were not recorded in a
consistent manner when applicable
eligibility requirements were met. Upon
discovery of this inconsistency, the
University re-analyzed related accounts and
determined that accounts receivable and
accounts payable were both overstated by
approximately $40,000,000, and federal grant
revenue and research expenses were
overstated by $3,000,000. There was no
impact to opening or closing net position.
Management elected to record the adjustment
for the estimated amount of the error.
(Finding 1, Page 5)

We recommended the University continue to
review its process for ensuring transactions
are recognized in the correct fiscal year.

University officials agreed with the
recommendation.

OTHER FINDINGS

The remaining findings pertained to
weaknesses in controls over Electronic
Health Record System and inadequate controls
over classifying assets as restricted and
are reportedly being given attention by the
University.  We will review the University’s
progress towards implementation of our
recommendations in our next engagement.

AUDITOR’S OPINION(S)

Our auditors stated the financial statements
of the University, the Auxiliary Facilities
System and the Health Services Facilities
System as of June 30, 2023, and for the year
then ended, are fairly stated in all
material respects.

This financial audit was conducted by RSM US
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:TLK