REPORT DIGEST

NORTHEASTERN ILLINOIS UNIVERSITY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2018

Release Date:  January 29, 2018

FINDINGS THIS AUDIT:  1

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

FINDINGS LAST AUDIT: 1

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

This digest covers the Northeastern
Illinois University’s (University)
Financial Audit as of and for the year
ended June 30, 2018.  The University’s
Compliance Examination (including the
Single Audit) covering the year ended June
30, 2018 will be issued at a later date.


SYNOPSIS

• (18-01) The University did not establish
and implement adequate internal control
procedures over student receivables and
tuition billings.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER STUDENT
RECEIVABLES AND TUITION BILLINGS

The University did not establish and
implement adequate internal control
procedures over student receivables and
tuition billings.

We noted the following:

• The University improperly classified
student accounts with credit balances
against students’ receivable. In our
testing of receivable aging schedule of 47
students, we noted two (4%) student
accounts had credit balances totaling
$1,780. The credit balances pertained to
student overpayments from prior years which
were supposedly refunded to students. As of
June 30, 2018, there were 837 students with
credit balances totaling $311,155. The
University subsequently reclassified the
credit balances to accounts payable.

• The University did not ensure correct
tuition rates were billed to students. In
our testing of tuition fee billings of 25
students, we noted three (12%) students
erroneously billed lower tuition rates than
the approved student tuition rates by the
University’s Board of Trustees. These
students were noted to be included under
the fall 2011, summer 2013 and second
bachelor’s cohorts. As of June 30, 2018,
there were 86 students incorrectly billed
totaling $16,397.  (Finding 1, pages 69-70)

We recommended University management
provide adequate oversight over student
receivables and tuition billings to ensure
student accounts are properly classified in
the financial statements and students are
billed with accurate student tuition fee
rates.

University officials agreed with the
recommendation and stated going forward,
the University will increase the frequency
in running necessary procedures to address
student credit balances and implement a
secondary review when applying new tuitions
rates in the system.

AUDITOR’S OPINION

The auditors stated the financial
statements of the University as of and for
the year ended June 30, 2018 are fairly
stated in all material respects.

This financial audit was conducted by E.C.
Ortiz & Co., 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:JGR