REPORT DIGEST

UNIVERSITY OF ILLINOIS

COMPLIANCE EXAMINATION
FOR THE YEAR ENDED JUNE 30, 2025

Release Date:  April 23, 2026

FINDINGS THIS AUDIT:1 0

CATEGORY:  NEW -- REPEAT – TOTAL
Category 1:  0 -- 1 -- 1
Category 2:  3 -- 6 -- 9
Category 3:  0 -- 0 -- 0
TOTAL:  3 -- 7 – 10

FINDINGS LAST AUDIT: 10

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, 2025.  A
separate Financial Audit as of and for the
year ended June 30, 2025 was previously
released on January 15, 2026.  A separate
Single Audit for the year ended June 30,
2025 was previously released on March 19,
2026. In total, this report contains 10
findings, 4 of which were reported in the
Financial Audit and Single Audit
collectively.

SYNOPSIS

• (25-6) The University did not require all
employees to submit time reports as
required by the State Officials and
Employees Ethics Act.
• (25-8) The University did not comply with
the provisions of the University Faculty
Research and Consulting Act.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO FOLLOW TIME REPORTING
REQUIREMENTS

The University of Illinois (University)
does not require all employees to submit
time reports as required by the State
Officials and Employees Ethics Act (Act)
and does not have adequate procedures to
ensure accurate employee time reporting.

During testing of payroll, we selected 60
employees across all three campuses and
noted the following:

• Sixteen (27%) employees (eight from the
Urbana-Champaign campus, seven from the
Chicago campus and one from the Springfield
campus) did not file time reports as
required by the Act. University management
stated faculty, postdoctoral employees,
instructors, and lecturers continue to
track their time using a “negative”
timekeeping system whereby the employee is
assumed to be working, unless noted
otherwise. (Finding 6, Pages 19-20) This
finding has been reported since 2005.

We recommended the University implement
procedures to ensure all employees submit
time sheets as required by the Act.

University officials accepted the
recommendation and indicated the University
is pursuing a statutory remedy to address
the finding.

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 a sample of sixty employees
for a total of seventy-nine 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-nine (37%)
disclosures.

• For the disclosures where the start date
was disclosed by the employee, the approval
was after the start date of the activity
for two (3%) disclosures.

• The disclosure was not approved by the
President or his designee for four (5%)
disclosures. (Finding 8, Pages 23-24)  This
finding has been reported since 2023.

We recommended the University update its
disclosure form to include all information
necessary to document compliance with the
requirements of the University Faculty
Research and Consulting Act. We also
recommended the University ensure policies
and procedures are followed to confirm that
all disclosures are properly approved
timely.

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, 2025 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, 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
Finding 2025-001. 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:VRB