WESTERN ILLINOIS UNIVERSITY
Compliance Examination and Single Audit
For the Year Ended June 30, 2010
Summary of Findings this Audit Cycle:
• Compliance and Single Audit: 4
• Financial Audit (previously reported 2-4-11): 2
TOTAL findings: 6
Summary of Findings from Previous Audit Cycle: 5
• Repeated from last audit: 2
Release Date: March 22, 2011
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 are also available on the worldwide web at www.auditor.illinois.gov
The Financial Statement Audit for the year ended June 30, 2010 was previously released on February 16, 2011. That audit contained two findings. This report addresses Federal and State compliance findings pertaining to the Single Audit and State Compliance Examination. In total, this report contains 6 findings, two of which were also reported in the Financial Audit.
• The University had not established adequate internal controls over contracts and leases to ensure they contained all necessary provisions and were properly executed prior to performance.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
NONCOMPLIANCE WITH REQUIRED CONTRACTING PROCEDURES
The University had not established adequate internal controls over contracts and leases to ensure they contained all necessary provisions and were properly executed prior to performance. We tested 3 leases and 40 contracts and noted:
• One (33%) lease disclosure forms was completed 83 days after lease execution,
• Two (67%) leases were executed 16-76 days after leases began,
• Three (8%) contracts were signed after purchasing goods totaling nearly $400,000,
• Three of 9 (33%) contracts over $250,000 were not approved by all three required top administrators, and
• Two (5%) contracts were not filed with the State Comptroller. (Finding 4, pages 27-28)
We recommended the University establish appropriate procedures to ensure all contracts, leases, and related disclosures are properly completed, approved, and executed prior to the start of the services or lease terms. We also recommended the University review its procedures to ensure contracts are filed with the Comptroller.
University officials accepted the finding and stated procedures have been or will be developed to address the exceptions reported.
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 audit.
The auditors conducted a compliance examination and Single audit of the University for the year ended June 30, 2010. A financial audit covering the year ended June 30, 2010 was issued separately.
WILLIAM G. HOLLAND
AUDITORS ASSIGNED: Our special assistant auditors for this examination were E. C. Ortiz & Co. LLP.