University of Illinois. Compliance Examination for the year ended June 30, 2009

              REPORT DIGEST
UNIVERSITY OF ILLINOIS
COMPLIANCE
EXAMINATION
(In accordance with the
Single Audit Act and
OMB Circular A-133)
For the Year Ended:
June 30, 2009
Summary of Findings:
Total this audit: 47
Total last audit: 12
Repeated from last audit: 7
Release Date:
May 13, 2010
State of Illinois
Office of the Auditor General
WILLIAM G. HOLLAND
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 the Full Report
are available on
the worldwide web at
http://www.auditor.illinois.gov
INTRODUCTION
The Financial Statement Audit for the year ended June 30, 2009 was
previously released on March 25, 2010. That audit contained three audit
findings. This report addresses federal and State compliance findings
pertaining to the Single Audit and State Compliance Examination. In total,
this document contains 47 audit findings, three of which had been reported in
the Financial Statement Audit.
SYNOPSIS
 The University does not have adequate documentation of payroll and
fringe benefit expenditures for certain nonacademic and hourly
employees at the Chicago campus.
 The University does not have adequate documentation of payroll and
fringe benefit expenditures for employees at the Urbana campus who
work on the Cooperative Extension Services program or the Hatch Grant
under the Research and Development Cluster program.
 The University does not have an adequate process in place to determine
the allowability of certain expenditures used to meet the cost share
(matching) requirement of the Supplemental Nutrition program.
 The University used an unsupported rate to value services of volunteers
used to meet the cost share (matching) requirement of the Supplemental
Nutrition program.
 The University did not initially include all federal grants in the schedule
of expenditures of federal awards.
 The University is not adequately performing or documenting reviews of
subrecipient OMB Circular A-133 audit reports.
 The University did not accurately report federal expenditures in quarterly
reports for the Supplemental Nutrition program submitted to the Illinois
Department of Human Services.
 The University did not properly perform verification procedures for
students at the Urbana campus.
 The University did not provide required program information relative to
federal funds passed through to the subrecipients of the Research and
Development Cluster programs for the year ended June 30, 2009.
 The University has not established adequate internal controls over
contracts and leases to ensure they contain all necessary provisions and
are properly executed prior to performance.
 The University has not established adequate internal controls over
estimating and recording its allowance for doubtful patient accounts
receivable.
 The University does not have an adequate process to measure and value
pharmaceutical inventory balances as of fiscal year end.
{Financial Information and Activity Measures are summarized on the next page.}