REPORT DIGEST

ILLINOIS STATE UNIVERSITY

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2025

Release Date:  March 26, 2026

FINDINGS THIS AUDIT: 14

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 3 -- 3
Category 2:  2 -- 9 -- 11
Category 3:  0 -- 0 -- 0
TOTAL:  2 -- 12 – 14

FINDINGS LAST AUDIT: 13

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, 400 West
Monroe, Suite 306, Springfield, IL
62704-9849
(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

This digest covers the Compliance
Examination of Illinois State University
for the year ended June 30, 2025.  A
separate digest covering the University’s
financial audit as of and for the year
ended June 30, 2025 was previously released
on December 16, 2025.  In addition, a
separate digest covering the University’s
Single Audit for the year ended June 30,
2025, was previously released on March 5,
2026.  In total, this report contains 14
findings, three of which were reported
within the University’s financial audit and
single audit.

SYNOPSIS

• (25-09) The University did not always
ensure compliance with the University
Faculty Research and Consulting Act and
University policies regarding outside
employment.
• (25-10) The University did not require
positive time reporting for all employees
in compliance with the State Officials and
Employees Ethics Act.
• (25-14) The University was not in
compliance with the Credit Card Marketing
Act.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH THE UNIVERSITY FACULTY
RESEARCH AND CONSULTING ACT

The Illinois State University (University)
did not always ensure compliance with the
University Faculty Research and Consulting
Act (Act) and University policies regarding
outside employment.

During Fiscal Year 2025, faculty members
reported 93 instances of outside employment
to the University Provost.

During testing, the auditors noted the
following:

• 31 (33%) instances had the Request for
Approval of Secondary/Outside Employment
Form (Form PERS 927) submitted by the
faculty member for approval by the
University’s Provost between 3 to 399 days
late.
• 37 (40%) instances had Form PERS 927
approved by the University’s Provost
between 1 to 422 days late.
• 10 (11%) instances did not have the
Annual Report of Secondary/Outside
Employment (PERS 928) submitted by the
faculty member.
• 30 (32%) instances had the Form 928
submitted by the faculty member to the
University’s Provost approved between 2 to
30 days late.
• 12 (13%) instances where the employee did
not complete a PERS 927 Form. (Finding 9,
pages 23-24) This finding has been reported
since 2012.

We recommended the University’s Provost
take appropriate corrective action and
implement internal controls to ensure
faculty members with outside research,
consulting services, or employment receive
written pre-approval to conduct the
requested activity and annually disclose
the time spent on these activities in
accordance with State law and University
policy.

University officials accepted the finding
and stated they have made process
improvements to the faculty reporting
process, as well as the review and approval
process to improve compliance.

NONCOMPLIANCE WITH THE STATE OFFICIALS AND
EMPLOYEES ETHICS ACT

The University did not require positive
time reporting for all employees in
compliance with the State Officials and
Employees Ethics Act (Act).

During testing, we noted University Policy
1.12 only requires positive time reporting
for the University’s non-faculty employees.
The faculty and graduate students within
academic positions, academic/professional
employees, and some civil service employees
do not report actual hours worked and are
only required to report benefit usage time
(vacation, sick, etc.) used to the nearest
quarter hour. (Finding 10, page 25)   This
finding has been reported since 2005.

We recommended the University revise its
policy and require all employees to submit
time sheets in compliance with State law.

University officials accepted the finding
and stated they continue to work towards a
feasible solution to incorporate
compliance.

NONCOMPLIANCE WITH THE CREDIT CARD
MARKETING ACT

The University is not in compliance with
the Credit Card Marketing Act.

The University did not have a policy
prohibiting the University and the
University’s agents, employees, student
groups, alumni organizations, or any
affiliates from providing certain student
information to a business organization or
financial institution for purposes of
marketing credit cards.  (Finding 14, Page
32)

We recommended the University develop a
policy that will prohibit providing certain
student information to a business
organization or financial institution in
accordance with the Credit Card Marketing
Act.

University officials accepted the finding
and stated they approved and published the
Credit Card Marketing and Student
Information Policy on their website in
October 2025.

OTHER FINDINGS

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 State compliance examination.

AUDITOR’S OPINIONS

The financial audit report was previously
released.  The auditors stated the
financial statements as of and for the year
ended June 30, 2025 are fairly stated in
all material respects.

The single audit report was previously
released.  The auditors conducted a single
audit of the University as required by the
Uniform Guidance. The auditors stated the
University complied, in all material
respects, with the types of compliance
requirements that could have a direct and
material effect on the University’s major
federal programs for the year ended June
30, 2025.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the University
for the year ended June 30, 2025, as
required by the Illinois State Auditing
Act.  The accountants qualified their
report on State compliance for Findings
2025-001 thru 2025-003.  Except for the
noncompliance described in these findings,
the accountants stated the University
complied, in all material respects, with
the requirements described in the report.

This State compliance examination was
conducted by FORVIS MAZARS.

COURTNEY DZIERWA
Division Director

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:vrb