REPORT DIGEST

NORTHEASTERN ILLINOIS UNIVERSITY

SINGLE AUDIT
FOR THE YEAR ENDED JUNE 30, 2021

Release Date:  June 2, 2022

FINDINGS THIS AUDIT:  8

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  0 -- 7 -- 7
Category 3:  0 -- 0 -- 0
TOTAL:  0 -- 8 -- 8

FINDINGS LAST AUDIT: 11

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 (University)
Single Audit for the year ended June
30, 2021.  A separate digest covers
the University’s Financial Audit and
Compliance Examination as of and for
the year ended June 30, 2021.  In
total, this report contains 8
findings, three were reported in the
Financial Audit and all eight were
reported in the Compliance
Examination.

SYNOPSIS

• (21-04) The University did not
timely submit disbursement records of
the Federal Pell Grant Program to the
Department of Education’s Common
Origination and Disbursement System.
• (21-07) The University did not
communicate required program
information and monitor subrecipients
of federal awards.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

REPORTING OF DISBURSEMENTS TO THE
COMMON ORIGINATION AND DISBURSEMENT
SYSTEM

The University did not timely submit
disbursement records of the Federal
Pell Grant Program to the Department
of Education’s Common Origination and
Disbursement (COD) System.

During testing of 23 students with 49
disbursement transactions who received
Federal Pell Grant Program funds
totaling $99,972, we noted 5 (22%)
students with 10 disbursement
transactions totaling $22,793 were
reported to the COD System 9 days
late. (Finding 4, pages 23-24)

We recommended the University continue
to improve its internal control
process to ensure all student
disbursement records are reported to
the COD system timely in accordance
with the federal requirements.

University officials agreed with the
finding.

INADEQUATE CONTROL OVER SUBRECIPIENTS

The University did not communicate
required program information and
monitor subrecipients of federal
awards.

During testing of eight subrecipients,
with pass-through federal expenditures
totaling $1,472,962, on five programs
of the Research and Development
Cluster, Higher Education
Institutional Aid, Twenty-First
Century Community Learning Centers,
and Gaining Early Awareness and
Readiness for Undergraduate Programs,
we noted the following:
• The University did not timely
communicate the required federal award
information to five subrecipients
(63%) to comply with federal statutes,
regulations, and terms and conditions
of the award. The communication
through the agreements were made 203
to 321 days late.
• The University did not communicate
the required federal award information
to three subrecipients (38%) to comply
with federal statutes, regulations,
and terms and conditions of the award.
• The University did not verify that
subrecipients undergo an audit when
the subrecipients federal awards
exceeded the threshold.
• The University erroneously
classified a contractor as a
subrecipient. (Finding 7 pages 29-31)
This finding has been repeated since
2018.

We recommended the University
implement uniform procedures across
all departments to serve as a
guideline in communicating required
subaward information to subrecipients,
verify subrecipients to determine
whether or not an audit is required,
and properly classify contractors from
subrecipients.

University officials agreed with the
finding.

OTHER FINDINGS

The remaining findings are reportedly
being given attention by the
University.  We will review the
Agency’s progress towards the
implementation of our recommendations
in our next Single Audit.

AUDITOR’S OPINION

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 Agency’s major federal programs
for the year ended June 30, 2021.

This Single Audit was conducted by
Roth & 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