REPORT DIGEST

NORTHEASTERN ILLINOIS UNIVERSITY

STATE COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  May 25, 2023

FINDINGS THIS AUDIT: 12

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  4 -- 7 -- 11
Category 3:  0 -- 0 -- 0
TOTAL:  4 -- 8 -- 12

FINDINGS LAST AUDIT: 16

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)
Compliance Examination for the year
ended June 30, 2022.  A separate
digest covering the University’s
Financial Audit as of and for the year
ended June 30, 2022, was previously
released on March 23, 2023.   In
addition, a separate digest covering
the University’s Single Audit for the
year ended June 30, 2022, was
previously released on March 30, 2023.
In total, this report contains 12
findings, four were reported in the
Financial Audit and three were
reported in the Single Audit.


SYNOPSIS

• (22-10) The University did not have
adequate controls over its property
and equipment.

• (22-11) The University did not fully
comply with the Fiscal Control and
Internal Auditing Act.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROLS OVER UNIVERSITY
PROPERTY AND EQUIPMENT

The University did not have adequate
controls over its property and
equipment.

During our testing of 25 equipment
additions, we noted 9 (36%), totaling
$12,531, were not recorded within 90
days of acquisition. They were
recorded between 96 to 160 days after
the acquisition dates.

During our testing of 8 equipment
expenditures, we noted 5 (63%)
equipment expenditures tested totaling
$1,988,034 were not timely recorded in
the fixed asset management system. In
further testing, we determined that
there was a significant lag in
recording fixed asset additions and
transfers during the year. As a
result, the C-15 report populated from
general ledger expenditures did not
reconcile with the fixed asset report
as of June 30, 2022.

The University does not have approved
written policies and procedures on
certain critical functions and
processes related to equipment
management such as:

• Proper conduct of the physical count
process.
• Delineating the categories of
equipment that are subject to theft
with value less than the nominal value
to ensure equipment is marked with a
unique identification number.
(Finding 10, pages 28-29)  This
finding has been reported since 2018.

We recommended the University improve
its procedures to ensure equipment
records are accurately maintained and
assets are properly accounted for.  We
also recommended the University
establish relevant equipment
management policies to ensure
procedures are observed consistently
by employees.

University officials agreed with the
recommendation.

NONCOMPLIANCE WITH THE FISCAL CONTROL
AND INTERNAL AUDITING ACT

The University did not fully comply
with the Fiscal Control and Internal
Auditing Act.

During testing of the University’s
internal auditing activities, we noted
the University did not perform audits
according to their approved Fiscal
Year 2022 plan, which included payroll
conversion, grants, information
technology security, and the project
management office. In addition, the
University did not perform audits of
receipts and tuition and fee waivers
in Fiscal Year 2021 or 2022.  (Finding
11, page 30)

We recommended the University ensure
completion of audits according to
their approved plan and the Code.

University officials agreed with the
recommendation.

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.

ACCOUNTANT’S OPINION

The accountants conducted a State
compliance examination of the
University for the year ended June 30,
2022, as required by the Illinois
State Auditing Act.  The accountants
qualified their report on State
compliance for Finding 2022-001.
Except for the noncompliance described
in this finding, the accountants
stated the University complied, in all
material respects, with the
requirements described in the report.

This State compliance examination was
conducted by Plante & Moran, PLLC.

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