REPORT DIGEST
ILLINOIS BOARD OF HIGHER EDUCATION
COMPLIANCE AUDIT For the Two Years Ended: June 30, 2003
Summary of Findings:
Total this audit 2 Total last audit 1 Repeated from last audit 1
Release Date: April 20, 2004
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 TDD (217) 524-4646
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SYNOPSIS
{Expenditures and Activity Measures are summarized on the reverse page.} |
ILLINOIS BOARD OF HIGHER EDUCATION
COMPLIANCE AUDIT
For The Two Years Ended June 30, 2003
EXPENDITURE STATISTICS |
FY 2003 |
FY 2002 |
FY 2001 |
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! Total Expenditures (All Funds) |
$115,710,051 |
$130,632,449 |
$104,703,809 |
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OPERATIONS TOTAL % of Total Expenditures |
$17,691,251 15% |
$17,909,106 14% |
$3,024,485 3% |
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Personal Services % of Operations Expenditures Average No. of Employees |
$2,218,422 13% 104 |
$2,388,378 13% 113 |
$2,179,964 72% 61 |
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Other Payroll Costs (FICA, Retirement) % of Operations Expenditures |
$14,776,949 83% |
$14,791,958 83% |
$29,077 1% |
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Contractual Services % of Operations Expenditures |
$531,301 3% |
$567,788 3% |
$594,210 20% |
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All Other Operations Items % of Operations Expenditures |
$164,579 1% |
$160,982 1% |
$221,234 7% |
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Permanent Improvements % of Total Expenditures |
$0 0% |
$0 0% |
$0 0% |
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GRANTS TOTAL % of Total Expenditures
Total State-Funded Grants % of Total Grants
Total Federally-Funded, Title II Grants % of Total Grants
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$98,018,800 85%
$95,962,063 98%
$2,056,737 2% |
$112,723,343 86%
$109,457,734 97%
$3,265,609 3% |
$101,679,324 97%
$98,453,590 97%
$3,225,734 3% |
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! Cost of Property and Equipment |
$39,285,022 |
$34,646,679 |
$2,114,756 |
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CASH RECEIPTS |
FY 2003 |
FY 2002 |
FY 2001 |
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! General Revenue Fund-001 . ! Education Assistance Fund-007 . ! Capital Development Fund-141 . ! Fund for Illinois Future-611 ! Illinois Century Network Fund - 729 ! Tobacco Settlement Recovery Fund - 733 ! BHE State Projects Fund - 736 ! Build Illinois Bond Fund - 971 ! 9; Federal Grants Fund- 983 .Total . |
$491,548 45,827 0 0 2,583,957 60,611 125,000 0 1,511,195 $4,818,138 |
$588,555 14,261 1,108 0 13,249,456 0 181,900 8,582 3,277,229 $17,321,091 |
$1,112,928 60,259 73,368 510,391 0 0 0 0 3,414,207 $5,171,153 |
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EXECUTIVE DIRECTOR |
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During Audit Period: Dr. Keith R. Sanders (7/1/2001 4/30/2002), Dr. Daniel J. LaVista (effective 5/1/2002) Currently: Dr. Daniel J. LaVista |
Excess Equipment costing approximately $2,735,000 and purchased in FY2000 was still in storage as of June 30, 2003
The stored equipment accounted for $13,716 in annual rental costs and approximately $100,000 in annual maintenance agreements and insurance
IBHE tuition waiver regulations outdated
Universities' waiver programs not yet evaluated |
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
EXCESS INVENTORY NOT TRANSFERRED The Illinois Century Network (ICN), a division of the Illinois Board of Higher Education (IBHE), did not identify excess equipment and make it available for transfer as required by the Illinois Procurement Code. The Illinois Procurement Code (30 ILCS 500/50-55) states that every State agency shall inventory or stock no more than a twelve month need of equipment, supplies, commodities, articles and other items, except as otherwise authorized by the State agencys regulations.
During our testing, we noted the following observations and comments:
By purchasing a stock of equipment beyond a years supply, the ICN is paying unnecessary storage, maintenance, and insurance costs. Due to the nature of the equipment, the ICN is facing a likely loss on trade-in due to the equipment becoming obsolete or outdated before being put into service. We recommended that ICN personnel identify and transfer excess equipment timely as required by the Illinois Procurement Code. (Finding 1, pages 10-12) IBHE officials agreed with our finding and are in the process of implementing the recommendation.
NEED TO FULLY IMPLEMENT RECOMMENDATIONS FROM THE 1998 Management Audit of Tuition and Fee Waivers The Illinois Board of Higher Education (IBHE) has fully implemented one of the three recommendations made in the Management Audit of Tuition and Fee Waivers (April 1998) and partially implemented the other two recommendations identified below:
We recommended the IBHE fully implement all the recommendations made three years ago in the Management Audit of Tuition and Fee Waivers. IBHE officials agreed with our recommendation and stated that the staff work plan for this year has been adjusted to ensure revisions to administrative rules are filed to change the tuition waiver limit, and the evaluation of waiver programs is completed. Responses were provided by Peggy Podlasek, Board Fiscal Officer. AUDITORS' OPINION We conducted a compliance audit of the Illinois Board of Higher Education as required by the Illinois State Auditing Act. We have not audited any financial statements of the Board for the purpose of expressing an opinion, because the agency does not, nor is it required to, prepare financial statements
____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:CML:pp
SPECIAL ASSISTANT AUDITORS Our special assistant auditors on this engagement were Striegel Knobloch & Company, L.L.C.
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