REPORT DIGEST

WESTERN ILLINOIS UNIVERSITY

COMPLIANCE EXAMINATION AND SINGLE AUDIT
FOR THE YEAR ENDED JUNE 30, 2017

Release Date:  March 29, 2018

FINDINGS THIS AUDIT:  6

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  1 -- 0 -- 1
Category 2:  1 -- 4 -- 5
Category 3:  0 -- 0 -- 0
TOTAL:  2 -- 4 -- 6

FINDINGS LAST AUDIT: 7

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 our federal Single Audit
and Compliance Examination of Western
Illinois University (University) for the year
ended June 30, 2017.  A separate Financial
Audit as of and for the year ending June 30,
2017 was previously released on March 15,
2018.  In total, this report contains 7
findings, one of which was reported in the
Financial Audit.

SYNOPSIS

• (17-3) The University did not adequately
comply with the University Guidelines on
remittance of excess funds.
• (17-5) The University was unable to locate
44 computers during their annual inventory
and did not always protect their computers
and removable media with encryption methods.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH THE UNIVERSITY GUIDELINES
ON EXCESS FUNDS

The University did not adequately comply with
the University Guidelines on remittance of
excess funds.

We noted the University complied with the
requirement to calculate excess funds on
indirect cost, auxiliary enterprises and
accounting entities but failed to remit
amounts due to the Income Fund for the
following funds (Finding 3, page 25):

Indirect Cost: $848,948
Public Service: $275,894
Instructional Resources: $515,016
University Publication: $2,839
Total: $1,642,697

We recommended the University continue to
monitor the activities of each accounting
entity and ensure compliance with all the
requirements of the University Guidelines.

University officials agreed with the finding
and stated they will continue to monitor the
activities of each accounting entity and make
a decision on remitting excess funds based on
the University’s current resources affected
by the State budget impasse.

WEAKNESS IN COMPUTER INVENTORY CONTROLS

The University was unable to locate 44
computers with an original cost of $55,327
during their annual inventory.

We also found the University does not always
protect their computers and removable media
with encryption methods. Although the
University performs periodic scanning to
identify social security numbers on
University equipment, the University could
not determine if the missing computers
contained confidential information at the
time they were reported missing.  (Finding 5,
pages 27-28)

We recommended the University review current
practices to determine if enhancements can be
implemented to prevent the theft or loss of
computers. We also recommended the University
evaluate data maintained on computers and
ensure those containing confidential
information are adequately protected with
methods such as encryption.

The University agreed with the finding and
stated they are taking measures to help
locate equipment and are reviewing encryption
options.
OTHER FINDINGS

The remaining findings pertain to federal
compliance, subsidies between accounting
entities, and expenditures in excess of
license plate fees earned. We will review the
University’s progress towards the
implementation of our recommendations in our
next Single Audit and compliance examination.

AUDITOR’S OPINIONS

The financial audit report was previously
released.  The auditors stated the financial
statements of the University as of and for
the year ended June 30, 2017 are fairly
stated in all material respects.

The auditors also 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
University’s major federal programs for the
year ended June 30, 2017.

ACCOUNTANT’S OPINION

The accountants conducted a compliance
examination of the University for the year
ended June 30, 2017, as required by the
Illinois State Auditing Act.  The accountants
qualified their report on State compliance
for Finding 2017-001.  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 Single Audit and compliance examination
were conducted by Adelfia LLC.

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

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