REPORT DIGEST

UNIVERSITY OF ILLINOIS

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2024

Release Date:  April 17, 2025

FINDINGS THIS AUDIT: 10

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  1 -- 8 -- 9
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 9 -- 10

FINDINGS LAST AUDIT: 22

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 our State Compliance
Examination of the University of Illinois
for the year ended June 30, 2024.  A
separate Financial Audit as of and for the
year ended June 30, 2024 was previously
released on January 28, 2025.  A separate
Single Audit for the year ended June 30,
2024 was previously released on March 11,
2025. In total, this report contains 10
findings, 4 of which were reported in the
Financial Audit and Single Audit
collectively.

SYNOPSIS

• (24-5) The University did not comply with
requirements applicable to its property and
equipment.

• (24-9) The University did not comply with
the provisions of the University Faculty
Research and Consulting Act.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER PROPERTY AND
EQUIPMENT

The University of Illinois (University) did
not comply with requirements applicable to
its property and equipment.

We tested a sample of 60 items included in
the University’s records to determine
whether the equipment existed as of the
University’s fiscal year-end. As a result of
our testing, we noted the following:

• Two pieces of non-data storing equipment
(totaling $1,084,288) had been provided to
another University. The equipment was still
included on the University’s year-end
equipment listing at the Urbana-Champaign
campus.

• One piece of non-data storing equipment
(totaling $84,274) did not have proper
documentation supporting the disposal. The
equipment was still included on the
University’s year-end equipment listing at
the Chicago campus.

Additionally, the University’s certification
of inventory as of June 30, 2024, which
includes all equipment with an acquisition
cost greater than $2,500 and all high theft
equipment, disclosed 7 other items totaling
$31,870 which could not be located out of
the University’s $2,331,739,048 equipment
inventory. (Finding 5, Pages 17-18)

We recommended the University review its
process for ensuring all equipment records
are accurately maintained and updated in a
timely manner.  We also recommended the
University strengthen its internal control
over the accountability of University
equipment.

University officials accepted the
recommendation.

NONCOMPLIANCE WITH UNIVERSITY FACULTY
RESEARCH AND CONSULTING ACT

The University did not comply with the
provisions of the University Faculty
Research and Consulting Act (Act).

A disclosure application, START
myDisclosures is used by all faculty
employees to annually complete a disclosure
and request for approval to perform outside
research or consulting services. Throughout
the year, additional disclosures and
requests for prior approval are necessary
whenever a change in such activities is
proposed or when required by granting
agencies.

In reviewing the disclosure applications, we
noted the following:

• The disclosure did not require the faculty
member to list the start date of the
research or consulting service. As a result,
we were unable to determine if written
approval of the President, or his designee,
was obtained prior to the start of such
services for twenty of 28 (71%) disclosures
tested.

• For the disclosures where the begin date
was disclosed by the employee, the approval
was after the start date of the activity for
seven of 28 (25%) disclosures tested.
(Finding 9, Pages 25-26)

We recommended the University work to update
its disclosure form to include all
information necessary to document compliance
with the requirements of the University
Faculty Research and Consulting Act.

University officials accepted 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 the
next engagement.

AUDITOR’S OPINIONS

The financial audit was previously released.
Our auditors stated the financial statements
of the University of Illinois as of and for
the year ended June 30, 2024 are fairly
stated in all material respects.

The single audit was previously released.
Our auditors also conducted a Single Audit
of the University as required by the Uniform
Guidance and 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, 2024.

ACCOUNTANT’S OPINION

The accountants conducted a State compliance
examination of the University for the year
ended June 30, 2024, as required by the
Illinois State Auditing Act. The accountants
qualified their report on State compliance
for Finding 2024-001. 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.

The State Compliance Examination was
conducted by RSM US LLP.

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:TLK