2012 Illinois State University Compliance Examination

              State of illinois
Illinois State University
Compliance Examination
(In Accordance with the Single Audit Act
and OMB Circular A-i33)
For the Year Ended June 30. 2011
Performed as Special Assistant Auditors for
the Auditor General. State of Illinois
BlOw epAs & Advisors
Table of Contents
State of Illinois
Illinois State University
Compliance Examination
(In Accordance with the Single Audit
Act and OMB Circular A-133)
For the Year Ended June 30, 2011
Cross-Reference Table of Special Reporting Required by 1982 University
Guidelines, as amended, and the Office of the Auditor General .................................... i
Agency Officials ................................................................ ~ .................................................. 1
Management Assertion Letter ............................................................................................. 2
Compliance Report
Summary ............................................................................................................................................ 3
Independent Accountant's Report on State Compliance, on Internal Control Over
Compliance, and on Supplementary Information for State Compliance Purposes ......................... 6
Independent Auditors' Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards .................................................................. 10
Independent Auditors' Report on Compliance With Requirements That Could Have a
Direct and Material Effect on Each Major Program, on Internal Control Over
Compliance, and on the Schedule of Expenditures of Federal Awards in
Accordance With OMB Circular A-I33 ....................................................................................... 12
Schedule of Findings and Questioned Costs:
Summary of Auditor's Results .................................................................................................... 15
Current Finding - Government Auditing Standards ............ ~ ........................................................ 17
Current Findings - State Compliance .......................................................................................... 19
Prior Finding Not Repeated ......................................................................................................... 27
Financial Statement Report
The University's financial statement report for the year ended June 30, 2011, which includes the
report of independent auditors, management discussion and analysis, required supplementary
information other than management discussion and analysis, basic financial statements and notes,
supplementary information, and the independent auditor's report on internal control over financial
reporting and on compliance and other matters based on an audit of basic financial statements
performed in accordance with Government Auditing Standards has been issued separately.
State of Illinois
Illinois State University
Compliance Examination
(In Accordance with the Single Audit
Act and OMS Circular A-133)
For the Year Ended June 30, 2011
Continued
Supplementary Information for State Compliance Purposes
Summary .......................................................................................................................................... 28
Fiscal Schedules and Analysis
Schedule of Expenditures of Federal Awards ........................................................................ 30
Notes to the Schedule of Expenditures of Federal Awards .................................................... 35
Schedule of Appropriations, Expenditures, and Lapsed Balances ......................................... 37
Comparative Schedule of Net Appropriations, Expenditures, and Lapsed Balances ............. 38
Comparative Schedule of Revenues and Expenses - University Income Fund ..................... 39
Statement of Changes in State Property ................................................................................. 40
Comparative Schedule of Cash and Cash Equivalents .......................................................... .41
Comparative Schedule of Investments ................................................................................... 42
Analysis of Significant Variations in Certain Revenue and Expense Accounts .................... 43
Analysis of Significant Variations in Certain Asset and Liability Accounts ......................... 44
Comparative Schedule of Receivables and Aged Analysis of Receivables ........................... 45
Analysis of Operations
Agency Functions and Planning Program ......................................................................................... 46
Employment Statistics (Full-Time Equivalent) (Unaudited} ............................................................ 48
Annual Cost Statistics (Unaudited) ................................................................................................... 50
Emergency Purchases .............................................. : ........................................................................ 51
Bookstore Infonnation (Unaudited) .................................................................................................. 52
Service Efforts and Accomplishments (Unaudited} .......................................................................... 53
Schedules of Federal Expenditures, Non-Federal Expenses, and New Loans .................................. 54
Summary of Agency Operations by Function of Program Activity - Student Enrollment
Statistics (Unaudited) .................................................................................................................... 55
Undergraduate Tuition and Fee Waivers (Unaudited) ...................................................................... 5 6
Graduate Tuition and Fee Waivers (Unaudited) ............................................................................... 57
Debt Financed by University Related Organization ......................................................................... 58
Acquisition of Real Estate by University or URO Not Funded by Separate Specific
Appropriation ............................................................................................................................... S9
State of Illinois
Illinois State University
Compliance Examination
(In Accordance with the Single Audit
Act and OMB Circular A-133)
For the Year Ended June 30,2011
Continued
Special Data Requirements for Audits of Universities
Entity Financial Statements:
Local Funds:
Statement of Net Assets ....................................................................................................... 60
Statement of Revenues, Expenses, and Changes in Net Assets ........................................... 61
Service Departments:
Statement of Net Assets ....................................................................................................... 62
Statement of Revenues, Expenses, and Changes in Net Assets ........................................... 63
Auxiliary Facilities:
Statement of Net Assets ....................................................................................................... 64
Statement of Revenues, Expenses, and Changes in Net Assets ........................................... 65
Calculation Sheet for Indirect Cost Carryforward ............................................................................ 66
Calculation Sheets for Current Excess Funds:
Current Unrestricted Local Funds:
Continuing Education and Public Services .......................................................................... 67
Sales and Services of Educational Activities ....................................................................... 68
Student Programs and Services ............................................................................................ 69
Field Trips and Foreign Study ............................................................................................. 70
Service Departments .................................................................................................................... 71
Auxiliary Facilities - Revenue Bonds:
Student Housing ................................................................................................................... 72
Student Activities ................................................................................................................. 73
Parking Services .................................................................................................................. 74
Auxiliary Facilities, Activities, and Accounting Entities ............................................................ 75
Summary of Foundation Payments to University ........................................................................ 77
Noninstructional Facilities Reserve ............................................................................................. 78
Disclosure of Support Which Auxiliary Facilities and Activities Have Received
During the Year from State Appropriated Funds ..................................................................... 79
Illinois Institute for Entrepreneurship Education Financial Infonnation ..................................... 80
State of Illinois
Illinois State University
Supplementary Information for State Compliance Purposes
Year Ended June 30, 2011
Source of Requirement
Revised Memo from
Office of the Auditor General,
Dated June 26,2000
Item 12, Entities Financial Statements
Item 13, Report Contents:
Page Number
and Report
Where Information
is Contained
See Note 22 of financial statements
a. Compliance Findings pertaining to the 1982 See Note I below
University Guidelines, as amended
b. Statement of Sources and Applications of Indirect Page 61 in this Report
Cost Recoveries
c. Calculation for Indirect Cost Carryforward Page 66 in this Report
d. Tuition Diverted to Auxiliary Enterprise Operations None
e. Identification of Each Specific Accounting Entity Pages 75 - 76 in this Report
and Description of the Sources of Revenue and
Purpose of Each
f. Financial Statements by Entity Including Plant Fund Pages 60 - 65 in this Report
Data
g. Calculation Sheets for Current Excess Funds Pages 67 -74 in this Report
h. Disclosure of Support Which Auxiliary Enterprise Page 79 in this Report
and Activities Have Received During the Year
from State Appropriated Funds
i. Statement of Revenue and Expenditures for Various See Note 22 of financial statements
Bond Indenture Required Accounts
j. Statement of Whether Bond Accounting Conforms to See Note 2 below
the Terms of the Bond Indenture
k. List and Description of Non instructional Facilities
Reserves
Page 78 in this Report
1. List of All University-Related Organizations (UROs) Page 77 in this Report
List of Independent Organizations None
m. Disclosure of Payments by UROs to the University Page 77 in this Report
for Services Provided
State of Illinois
Illinois State University
Cross-Reference Table of Special Reporting
Required by 1982 University Guidelines, as Amended,
and the Office of the Auditor General
For the Year Ended June 30, 2011
Source of Requirement
Revised Memo from
Office of the Auditor General,
Dated June 26, 2000
Item 13, Report Contents (Continued):
Page Number
and Report
Where Information
is Contained
n. Disclosure of Payment by the University to UROs for Page 77 in this Report
Services Provided
o. Disclosure of Cumulative Amount of Unreimbursed Page 77 in this Report
Subsidies
p. Description of Any Debt Financing by a URO Page 58 in this Report
q. Schedule of Cash and Investments Pages 41 - 42 in this Report
r. Statement Regarding Income from Investments of See Note 3 below
Pooled Funds
s. Costs per Full-Time Equivalent Student Page 50 in this Report
1. Disclosure of Acquisition of Real Estate by the Page 59 in this Report
University or URO not Funded by Separate
Specific Appropriation
u. Disclosure of Issuance of Certificates of Participation See Note 9 of financial statements
(COPs) or Participation in Lease or Purchase
Arrangements involving COPs
Other Financial Related Schedules for Universities:
1. Schedule of Appropriations, Expenditures, and
Lapsed Balances by Major Line Item
2. Schedule of Income Fund Revenues and Expenses
3. Schedule of Tuition and Fee Waivers
Page 37 in this Report
Page 39 in this Report
Pages 56 - 57 in this Report
Note 1 - There were no violations of the compliance requirements of the University Guidelines identified
during the audit of Illinois State University for the year ended June 30, 2011.
Note 2 - There were no violations of revenue bond covenants noted during the audit of Illinois State
University for the year ended June 30, 2011.
Note 3 - Investment income of pooled funds has been allocated and credited to the original sources of the
funds to the extent practical. There was no unallocated investment income that was required to be
paid into the Income Fund.
;;
State of Illinois
Illinois State University
Compliance Examination
June 30, 2011
Agency Officials
President
Vice President for Finance and Planning
Vice President for Academic Affairs and Provost
Vice President for Student Affairs
Vice President for University Advancement
Comptroller
Legal Counsel
Director - Internal Audit
Board of Trustees (as of June 30, 2011)
Chair
Secretary
Member
Member
Member
Member
Student Member
Office Locations
Agency offices are located at:
Hovey Hall
Campus Box 1100
Normal, IL 61790-1100
Dr. C. Alvin Bowman
Dr. Daniel Layzell
Dr. Sheri Everts
Mr. Steve Adams
Ms. Erin Mione'
Mr. Greg Alt
Ms. Lisa Huson
Mr. Robert Blemler
Hon. Judge Michael McCuskey
Ms. Joanne Maitland
Mr. Jay D. Bergman
Ms. Anne Davis
Mr. Bob Dobski
Ms. Betty Kinser
Mr. Sean Palmer
1
BKO, LLP
CCltificd Public Accountants
225 NOIih Water"-Street, Su-ite 400
Decatur, IL 62525-1580
Ladies and Gentlemen:
Vic.c Pi-cSidmt for Finance IUld Pbnning
30Z Hovey Hall
C:unpus Box 1100
NOfln~i, I L 61790-1-100
I'hQnc: (309H38:2·t"43
Pax; (309)'438e27G,8
Mmcl1 2, 20 I :2
We c)I'c responslbJe [or the:; idcntificMion, o( ~nc).. _comiJ,iance w.itil, all aspe,ct~ ,of
laws, rl)gulations, Cblitract~, or grant ngreern,cnts tha,t equId ~lave a material effect on the
op_eratioos of the-State of Illinois - Illinois State Universi~y. -VVc arc responsible tor and we
have establIshed arid malrttl1inecl an effective system o( Jntemai controls· over compli'ance
reqllLremeJlts. \Ve have perfuri'l1ed an evaillation of th~- State of Ulinois - IUinois S_tate
University's conipliance \\.:ith the following asstltionsdming the year ended June 3lt 2011.
Based on this evaluation,: we assert that during ,the year ended June 30; 2.011, the stale of
flliJlois - Illinois State Ulliversi[y hel$ materially compliedwjth the assertions below.
A. Tl,1(: SlMe ofTllL_po,is_- llli,nois Stute Un'iversit)'rlaS' obligated, expcncled.~ r~ceivcd and
used p\lb1ic ',fiu1ds ()fthe --,S'ta.t:~ in ,~cC0rdunc~'wiL1~ the purpose for which suoh fund_s
havc ~becn appropriated -or othclVvise' aut!~or-izul by law.
B. The Stnte o fIlIin'o is - Illinois Stale Dniv_crsilY has obligated, expcndeq, i'eceived and
used PllqtiC fuudq.of the Sta.tc in accor4an~e \'/ith ~ily limitations! restrictions,
conditions or mandatory directions imposed by \a'w upon 'such ob\jg~tion.
·expenditure.-:rcceipt 'or use.
t. The State ofillino'is - IJIinojs:Stute Univers.ity has co mp tied, in aU maleriat respects,
wj~!l applicable laws and regtil~tions, IDohldlllg th~ St.ate unitoi'm aCQDLlotmg system,
in . it$.-:fi.O.anQ'('al ,~pd tTsc(ll oper£{tio'Qs,
D. -SJatc revenues and t'cc,eipts oolleded b.y 'the State of llIihoiS - .Illinois State
U))iversity are· it1 :a~q5 rdal1,o_e with. ~ppJiyable iaws and, t'egu lat iorisand- the,
~e_cpllnfjlig ~t).u reco.tOkeeping' Q f $lIch "reVehu_f}$ imti r~ceipts' lS' falx, accutate and
,iIl'aGwrc:an.eewtth law. "
E, M6neyor, negot(ah-le. secll"ritles or similar assets.. bandied by the -State of I1lmois -
-rilinois State Uhiversit¥ 'cia behalf 0:f the· State, trr. · held In t-n..i'st b¥ the State .of
JUipQ»;,- Illmo~s:_.sJ.at.e UrjiverSity:huv-e bG~n- pI,Op,er)y and, legally: .ad1niniB.t~r?d, 'C\n.d
t}~e· ~:G'!::,q\1p~ipg illJd re¢or:d~eep:i:ng, r~latj,I.lg, tii.e~etQ is ., 'proper~. a9cUl1i~e ?-J1q .i~1-
:accor-clim:c'C' with law.,
Dr. C. : _ y-m Bowfl1~s~yPresiderif
Dj. ie; ~io:fr::"":-id~b~n~:.~o;;·: F'L.~· p.J.;~L----:-__ _
~o~ ful~ Ms. LiB,d<ItJ'S0n-, --G:ep.~ral CoUnsel' ..........
2
State of Illinois
Illinois State University
Compliance Report Summary
June 30, 2011
The compliance testing performed during this examination was conducted in accordance with
Government Auditing Standards and in accordance with the Illinois State Auditing Act.
Accountants' Reports
The Independent Accountants' Report on State Compliance, on Internal Control Over Compliance,
and on Supplementary Information for State Compliance Purposes does not contain scope
limitations, disclaimers or other significant non-standard language.
Summary of Findings
Number of
Findings
Repeated findings
Current
Report
5
2
Prior recommendations implemented or not repeated 1
Summary of Findings and Questioned Costs
Item No. Page Description
Findings (Government Auditing Standards)
Prior
Report
3
2
0
Finding Type
11-1 17 Inadequate Controls over Accounts Receivable Material Weakness
Findings and Questioned Costs (Federal Compliance)
The audit did not disclose findings required to be reported by OMB Circular A-I33.
Findings (State Compliance)
11-2 19 Lack of Review of Human Resource Computer
System Before Implementation
Material Weakness and
Material
Noncompliance
11-3 21
11-4 24
Computer Security Administration Deficiencies Significant Deficiency
and Noncompliance
Weakness Regarding the Security and Control of Significant Deficiency
Confidential Information and Noncompliance
3
Item No.
11-5
State of Illinois
Illinois State University
Compliance Report Summary
June 30, 2011
Summary of Findings and Questioned Costs
Page Description
26 Timesheets not Required
Finding Type
Significant Deficiency
and Noncompliance
In addition, the following findings which are reported as current findings and questioned costs
relating to Government Auditing Standards also meet the reporting requirements for State
Compliance.
11-1 17 Inadequate Controls over Accounts Receivable Material Weakness and
Material
Noncompliance
A. 27
Exit Conference
Prior Finding Not Repeated
Lack of Reviewed and Approved Periodic
Reconciliation of the Detailed Property and
Equipment Listings to the General Ledger
The findings and recommendations appearing in this report were discussed with University
personnel at an exit conference on February 6, 2012. Attending were:
Representing Illinois State University
Vice President for Finance and Planning Dr. Daniel Layzell
Comptroller Mr. Greg Alt
Assistant Comptroller Ms. JoEllen Bahnsen
Director - Internal Audit Mr. Robert Blemler
Associate Vice President for Administrative
Technology Ms. Andrea Ballinger
Associate Vice President - Chief Technology Officer Mr. Mark Walbert
Representing BKD LLP
Manager Ms. Heather M. Powell, CPA
4
State of Illinois
Illinois State University
Compliance Report Summary
June 30, 2011
Representing the Office of the Auditor General
Audit Manager
Information Systems Audit Manager (via phone)
Mr. Daniel J. Nugent, CPA
Ms. Kathleen A. Devitt, CISA
Responses to the recommendations were provided by Mr. Greg Alt, Comptroller, in an e-mail dated
February 10,2012.
5
K 225 N, Water Street, Su i e 400
PO. Box 1580
LLP Deca tu r, I L 62525-1580
CPAs & Advisors 217.429,2411 Fax 217.4 29.6109 www.bkd.com
Independent Accountants' Report on State Compliance,
on Internal Control Over Compliance, and on Supplementary
Information for State Compliance Purposes
Honorable William G. Holland
Auditor General
State of Illinois
and
Board of Trustees
State of Illinois - Illinois State University
Compliance
As Special Assistant Auditors for the Auditor General) we have examined the State of Ulinois - Illinois
State University's compliance with the requirements listed below, as more fully described in the Audit
Guidefor Financial Audits and Compliance Attestation Engagements a/Illinois Stale Agencies (Audit
Guide) as adopted by the Auditor General, during the year ended June 30,2011. The management of the
State of Illinois - Illinois State University is responsible for compliance with these requirements. Our
responsibility is to express an opinion on the State of Illinois - Illinois State University's compliance
based on our examination.
A. The State of Illinois - Illinois State University has obligated, expended, received and used public
funds of the State in accordance with the purpose for which such funds have been appropriated
or othelWise authorized by law,
B, The State of Illinois - Illinois State University has obligated, expended, received and used public
funds of the State in accordance with any limitations, restrictions, conditions or mandatory
directions imposed by law upon such obligation, expenditure, receipt or use.
C. The State of Illinois - Illinois State University has complied, in all material respects, with
applicable laws and regulations, including the State uniform accounting system, in its financial
and fiscal operations.
D. State revenues and receipts collected by the State of Illinois - Illinois State University are in
accordance with applicable laws and regulations and the accounting and recordkeeping of such
revenues and receipts is fair, accurate and in accordance with law.
6 • • • •• Praxitl! :
experience BKD MEMBER • •
GLOBAL AL LI ANCE OF
INOEPENOE ln FIRMS
E. Money or negotiable securities or similar assets handled by the State of Illinois - Illinois State
University on behalf of the State or held in trust by the System have been properly and legally
administered and the accounting and recordkeeping relating thereto is proper, accurate and in
accordance with law.
We conducted our examination in accordance with attestation standards established by the American
Institute of Certified Public Accountants; the standards applicable to attestation engagements contained in
Government Auditing Standards issued by the Comptroller General of the United States; the Illinois State
Auditing Act (Act); and the Audit Guide as adopted by the Auditor General pursuant to the Act; and,
accordingly, included examining, on a test basis, evidence about the State of Illinois - Illinois State
University's compliance with those requirements listed in the first paragraph of this report and performing
such other procedures as we considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a legal detennination on
the State of Illinois - Illinois State University's compliance with specified requirements.
As described in Findings 11-1 and 11-2 in the accompanying schedule of findings and questioned costs,
the State of Illinois - Illinois State University did not comply with requirements regarding applicable laws
and regulations, including the State uniform accounting system, in its financial and fiscal operations.
Compliance with such requirements is necessary, in our opinion, for the State of Illinois Illinois State
University to comply with the requirements listed in the first paragraph of this report.
In our opinion, except for the noncompliance described in the preceding paragraph, the State of Illinois -
Illinois State University complied, in all material respects, with the compliance requirements listed in the
first paragraph of this report during the year ended June 30, 20 II. However, the results of our
procedures disclosed instances of noncompliance with those requirements, which are required to be
reported in accordance with criteria established by the Audit Guide, issued by the Illinois Office of the
Auditor General and which are described in the accompanying schedule of findings and questioned costs
as items 11-3 through 11-5.
Internal Control
The management of the State of Illinois - Illinois State University is responsible for establishing and
maintaining effective internal control over compliance with the requirements listed in the first paragraph
of this report. In planning and performing our examination, we considered the State of Illinois - Illinois
State University's internal control over compliance with the requirements listed in the first paragraph of
this report as a basis for designing our examination procedures for the purpose of expressing our opinion
on compliance and to test and report on internal control over compliance in accordance with the Audit
Guide, issued by the Illinois Office of the Auditor General, but not for the purpose of expressing an
opinion on the effectiveness of Illinois State University's internal controls over compliance. Accordingly,
we do not express an opinion on the effectiveness of the State of Illinois - Illinois State University's
internal control over compliance.
Our consideration of internal control over compliance with the requirements listed in the first paragraph
of this report was for the limited purpose described in the first paragraph of this section and was not
designed to identify all deficiencies in internal control over compliance that might be deficiencies,
significant deficiencies or material weaknesses and therefore, there can be no assurance that all
deficiencies, significant deficiencies or material weaknesses have been identified. However, as described
in the accompanying schedule of findings and question costs, we identified certain deficiencies in internal
control over compliance that we consider to be material weaknesses and other deficiencies we consider to
be significant deficiencies.
7
A deficiency in an entity's internal control over compliance exists when the design or operation of a
control does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct noncompliance with the requirements listed in the first
paragraph of this report on a timely basis. A material weakness is a deficiency, or combination of
deficiencies, in internal control over compliance such that there is a reasonable possibility that material
noncompliance with a requirement listed in the first paragraph of this report will not be prevented, or
detected and corrected on a timely basis. We consider the deficiencies in internal control over
compliance as described in the accompanying schedule of findings and questioned costs as items 11-1 and
11-2 to be material weaknesses.
A significant deficiency over compliance is a deficiency, or combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance. We consider the deficiencies in internal control over compliance described in
the accompanying schedule of findings and questioned costs as items 11-3 through 11-5 to be significant
deficiencies.
As required by the Audit Guide, immaterial findings excluded from this report have been reported in a
separate letter to your office.
The State of Illinois - Illinois State University'S responses to the findings identified in our examination
are described in the accompanying schedule of findings and questioned costs. We did not examine the
State of Illinois - Illinois State University'S responses and, accordingly, we express no opinion on the
responses.
Supplemental)' Information for State Compliance Purposes
As Special Assistant Auditors for the Auditor General, we have audited the financial statements of the
business-type activities of the State of Illinois - Illinois State University as of and for the year ended
June 30,2011, which collectively comprise the State of Illinois - Illinois State University's basic
financial statements, and have issued our report thereon dated March 2, 2012. The accompanying
supplementary information, as listed in the table of contents as Supplementary Information for State
Compliance Purposes, is presented for purposes of additional analysis and is not a required part of the
basic financial statements of the State of Illinois - Illinois State University. The 2011 Supplementary
Information for State Compliance Purposes, except for that portion marked "unaudited" on which we
express no opinion, has been subjected to the auditing procedures applied by us and the other auditors in
the audit of the basic financial statements and, in our opinion, based on our audit and the report of other
auditors, is fairly stated in all material respects in relation to the basic financial statements for the year
ended June 30, 2011, taken as a whole.
Other auditors previously audited, in accordance with auditing standards generally accepted in the United
States, the State of Illinois - Illinois State University's basic financial statements for the year ended
June 30, 2010. In their report dated March 30, 2011, they expressed unqualified opinions on the financial
statements of the business type activities. In their opinion, the 2010 Supplementary Information for State
Compliance Purposes, except for the portion marked "unaudited" is fairly stated in all material respects in
relation to the basic financial statements for the year ended June 30, 2010, taken as a whole.
8
This report is intended solely for the information and use of the Auditor General, the General Assembly,
the Legislative Audit Commission, the Governor, the Board of Trustees of the State of Illinois - Illinois
State University, the State of Illinois - Illinois State University management, and federal awarding
agencies and pass-through entities and is not intended to be and should not be used by anyone other than
these specified parties.
March 2, 2012
9
K 225 N. Water Street, Suite 400
P.O. Box 1580
LLP Decatur. I L 62525-1580
GPAs & Advisors 217.429.2411 Fax 217.429.6109 www.bkd.com
Independent Auditors' Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance With
Government Auditing Standards
Honorable William G. Holland
Auditor General
State of Illinois
and
Board ofTrllstees
State of Illinois - Illinois State University
As Special Assistant Auditors for the Auditor General, we have audited the accompanying financial
statements of the business-type activities of State of Illinois - Illinois State University (University) and its
aggregate discrete Iy presented component un it, co Ilectively a component unit of the State of Illinois, as of
and for the year ended June 30, 20 II, which collectively comprise the University's basic financial
statements and have issued our report thereon dated March 2, 2012, which contains a reference to the
report of other auditors. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Other auditors
audited the financial statements of the University's discretely presented component unit, as described in
our report on the University's financial statements. This report does not include the results of the other
auditor's testing of internal control over financial reporting or compliance and other matters that are
reported on separately by those auditors.
Internal Control Over Financial Reporting
Management of the State of Illinois - Illinois State University is responsible for established and
maintaining effective internal control over financial reporting. In planning and performing our audit, we
considered the University's inten1al control over financial reporting as a basis for designing our auditing
procedures for the purpose of expressing Ollr opinion on the financial statements, but not for the purpose
of express in g an opinion on the effectiveness of the University's internal contro lover financial reporting.
Accordingly, we do not express an opinion on the effectiveness of the University's internal control over
financial reporting.
experience BK
10 • • • ••
Praxit~ :
MEMBER · •
GLOBAL ALLIANCE OF
I NDE PEND ENT FIRM S
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over financial
reporting that might be deficiencies, significant deficiencies or material weaknesses and therefore, there
can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been
identified. However, as described in the accompanying schedule of findings, we identified a certain
deficiency in internal control over financial reporting that we consider to be a material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We
consider the deficiency described in finding 11-1 in the accompanying schedule of findings to be a
material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the State of Illinois -Illinois State University'S
financial statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do
not express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
We noted certain matters that we reported to management of Illinois State University in a separate letter dated
March 2, 2012.
Illinois State University'S response to the finding identified in our audit is described in the accompanying
schedule of findings. We did not audit Illinois State University's responses and, accordingly, we express
no opinion on the response.
This report is intended solely for the information and use of the Auditor General, the General Assembly,
the Legislative Audit Commission, the Governor, the Board of Trustees of Illinois State University,
University management and federal awarding agencies and pass-through entities and is not intended to be
and should not be used by anyone other than these specified parties.
March 2, 2012
11
LLP
CPAs & Advisors
225 N, \"/ater St ree t. Suite 400
P.O, Box 1580
Decatur, IL 62525·1580
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Independent Auditors' Report on Compliance With Requirements That Could
Have a Direct and Material Effect on Each Major Program, on Internal
Control Over Compliance, and on the Schedule of Expenditures of Federal
Awards in Accordance With OMS Circular A-133
I-Ionorable William G. Holland
Auditor General
State of Illinois
and
Board of Trustees
State of Illinois - Illinois State University
Compliance
We have audited the compliance of the State of 111 inois - J II inois State University with the types of
compliance requirements described in the U.S. Office of Management and Budget (OMB) Circlllar A-i33
Compliance Supplement that could have a direct and material effect on each of the State of Illinois­Illinois
State University's major federal programs for the year ended June 30, 2011. The State of Illinois
- Illinois State University's major federal programs are identified in the summary of auditor's results
section of the accompanying schedule offindings and questioned costs. Compliance with the
requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is
the responsibility of the State of Illinois - Illinois State University's management. OUf responsibility is to
express an opinion on the State of [II inois - Illinois State University's compliance based on our audit.
The Schedule of Expenditures of Federal Awards and our audit described below does not include
expenditures offederal awards for those agencies detennined to be component units of the State of
Illinois -Illinois State University for financial statement purposes.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-I33, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perfonn the audit to obtain reasonable assurance about whether noncompliance
with the types of campi iance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining, on a test basis, evidence about The
State of Illinois - Illinois State University's compliance with those requirements and perfonning such
other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion. Our audit does not provide a legal determination of the State of Illinois
- Illinois State University's compliance with those requirements.
experience BK
12 . ' " . raxit}! :
MEMBER • •
GLOBAL ALlIAIICE OF
INDEPENDENT FIRMS
In our opinion, the State of Illinois - Illinois State University complied, in all material respects, with the
compliance requirements referred to above that could have a direct and material effect on each of its
major federal programs for the year ended June 30, 2011.
Internal Control Over Compliance
The management of the State of Illinois - Illinois State University is responsible for establishing and
maintaining effective internal control over compliance with the requirements of laws, regulations,
contracts, and grants applicable to federal programs. In planning and performing our audit, we considered
the State of Illinois - Illinois State University's internal control over compliance with requirements that
could have a direct and material effect on a major federal program in order to determine our auditing
procedures for the purpose of expressing our opinion on compliance and to test and report on internal
control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing
an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the State of Illinois - Illinois State University's internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the business-type activities of the State of Illinois - Illinois
State University and its discretely presented component unit, collectively a component unit of the State of
Illinois, as of and for the year ended June 30, 2011, which collectively comprise the State of Illinois -
Illinois State University's basic financial statements, and have issued our report thereon dated March 2,
2012, which contains a reference to the report of other auditors and an explanatory paragraph regarding
an adjustment to the prior period financial statements. Other auditors audited the financial statements of
the State of Illinois - Illinois State University's discretely presented component unit, as described in our
report on the State of Illinois - Illinois State University's financial statements. Our audit was performed
for the purpose of forming opinions on the financial statements that collectively comprise the State of
Illinois - Illinois State University's basic financial statements. The accompanying schedule of
expenditures of federal awards is presented for purposes of additional analysis as required by OMB
Circular A-133 and is not a required part of the basic fmancial statements. Such information has been
subjected to the aUditing procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a
whole.
13
This report is intended solely for the information and use of the Auditor General, the General Assembly,
the Legislative Audit Commission, the Governor, the Board of Trustees of the State of Illinois - Illinois
State University, the State of Illinois - Illinois State University management, and federal awarding
agencies and pass-through entities and is not intended to be and should not be used by anyone other than
these specified parties.
March 2, 2012
14
State of Illinois
Illinois State University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Summary of Auditor's Results
Financial Statements
1. The opinion expressed in the independent accountants' report was:
[8] Unqualified D Qualified o Adverse D Disclaimed
2. The independent accountants' report on internal control over financial reporting disclosed:
Material weakness( es)1
Significant deficiency(ies)?
3. Noncompliance considered material to the financial statements
was disclosed by the audit?
~Yes
DYes
DYes
D None reported
[8] None reported
[8] No
4. The independent accountants' report on internal control over compliance with requirements that could
have a direct and material effect on major federal awards programs disclosed:
Material weakness( es)?
Significant deficiency(ies)?
DYes
DYes
[8] None reported
[8] None reported
5. The opinion expressed in the independent accountants' report on compliance with requirements that
could have a direct and material effect on major federal awards was:
[8] Unqualified o Qualified D Adverse D Disclaimed
6. The audit disclosed findings required to be reported in accordance
with Section 510(a) of Circular A-I33? DYes ~No
15
State of Illinois
Illinois State University
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
7. The University's major programs were:
Cluster/Program
Student Financial Aid Cluster
CFDANumber
84.007
84.033
84.038
84.063
84.185
84.268
84.375
84.376
84.379
64.124
93.364
94.006
Research and Development Cluster This cluster includes numerous CFDA
numbers. Refer to programs noted with
(**) on the Schedule of Federal Awards
Broadband Technology Opportunities Program 11.557
Improving Teacher Quality State Grants 84.367
8. The threshold used to distinguish between Type A and Type B programs as those terms are defined in
OMB Circular A-133 was $503,317.
9. The Auditee qualified as a low-risk auditee as that term is defined
in OMB Circular A-133? DYes [81 No
16
State of III i nois
Illinois State University
Schedule of Findings and Recommendations
Year Ended June 30, 2011
Current Findings - Government Auditing Standards
11-1. Finding - Inadequate Controls over Accounts Receivable
Illinois State University (University) did not exercise adequate internal control over accounts
receivable.
During testing, we noted the following:
• The University overstated tuition and fees receivable by amounts originally estimated to
be received from the State, but were not adjusted to reflect actual amounts received. The
University recorded tuition and fees accounts receivable for entitlement scholarships
awarded to eligible students based upon various State laws. The University is reimbursed
for the tuition and fee revenue at a later date, based upon the availability of funds within
the State's budget. In the event of insufficient appropriations, the University must bear
the cost of the awards. As the State did not pay the cost of tuition and fees waived, the
University did not monitor and properly account for the nonpayment, resulting in an
overstatement of receivables. The University recorded a prior period adjustment of
$5,189,665 for overstated receivables from FY06 to FYIO and a current period
adjustment of$I,289,557 for overstated receivables occurring in FYII.
• The University does not have a fonnal methodology to record, review, and adjust the
allowance for uncollectible accounts receivable that takes into account historical factors,
such as collections, with qualitative factors.
• The University has not reviewed the allowance for uncollectible accounts receivable
since FY09.
The Fiscal Control and Internal Auditing Act (30 ILCS 10/3001) requires the University establish
and maintain fiscal and administrative controls to provide assurance that resources applicable to
operations are properly recorded and accounted for to pennit the preparation of accounts and
reliable financial reports and to maintain accountability over the State's resources.
University personnel stated this overstatement was the result of employees not being aware that
certain scholarship payments from the State were no longer collectible.
Failure to perfonn a periodic analysis of amounts due to the University and develop a consistent
methodology to support the amounts recorded as uncollectible accounts receivable resulted in a
material misstatement of accounts receivable. (Finding Code No. 11-1)
Recommendation
We recommend the University implement controls to periodically review accounts receivable and
adopt a methodology to record, review, and adjust an allowance for uncollectible accounts
receivable based upon historical collectability data, adjusted for any potential qualitative
considerations.
17
State of Illinois
Illinois State University
Schedule of Findings and Recommendations
Year Ended June 30, 2011
11-1. Finding - Inadequate Controls over Accounts Receivable (continued)
University Response
Accepted. The University will review its methodology and controls for reviewing and adjusting
the allowance for uncoHectible accounts receivable and incorporate a more formal analysis that
accounts for historical and potential qualitative considerations.
18
State of Illinois
Illinois State University
Schedule of Findings and Recommendations
Year Ended June 30, 2011
Current Findings - State Compliance
11-2. Finding- Lack of Review of Human Resource Computer System Before Implementation
The Illinois State University (University) Internal Audit Department did not review the new
Human Resources system prior to its implementation.
The University implemented a Human Resources system in July 2011. The system is used to
perform and track functions such as payroll, time and labor for all 3,500 faculty and personnel at
the University. The initial selection process began in 2006 to replace a 20-year old system. The
project appears to have had an initial budget of$3.5 million, with a subsequent addition of $2
million in 2010, for a total budget of$5.5 million.
The Fiscal Control and Internal Auditing Act (30 ILCS 10/2003(a)(3» requires the University's
internal auditing program to conduct "reviews of the design of major new electronic data
processing systems and major modifications of those systems before their installation to ensure
the systems provide for the adequate audit trails and accountability." In addition, the University's
Audit Charter requires the University's Internal Audit Department "review the design of major
new computer information systems and major modifications to existing computer information
systems before their installation to ensure that they provide for adequate internal controls,
transaction trails, and accountability."
According to University personnel, the Office of Internal Audit was not involved in the
development of the Human Resources system (iPeople) due to a change in management and staff
within the Office of Internal Auditing.
Failure to review a major system change prior to its implementation could result in inadequate
audit trails and accountability and is noncompliant with a statutory mandate. (Finding Code No.
11-2)
Recommendation
We recommend the University's Internal Audit Department perform a review of any major
computerized system prior to its implementation and maintain documentation of its review.
19
State of Illinois
Illinois State University
Schedule of Findings and Recommendations
Year Ended June 30, 2011
11-2. Finding- Lack of Review of Human Resource Computer System Before Implementation
(continued)
University Response
Accepted. The University concurs with the recommendation that the University's Internal Audit
Department perform a review of any major computerized system prior to implementation. Due to
a change in management of the Office of Internal Audit, it was not included as part of the iPeople
Steering Committee or the Project Team. The Office of Internal Audit did regularly meet with
the Associate Vice President for Administrative Technologies and the ChiefTechnoiogy Officer
during FY 2011 in which the iPeople project status and issues were discussed. Regular meetings
with information technology management, as well as Office of Internal Audit involvement on
several information technology related committees, have improved communication and wi II
ensure involvement of the Office of Internal Audit in any new major computerized system
implementation or significant modifications. Additionally, a post-implementation audit of the
iPeople system is scheduled as part of the FY20 12 Internal Audit Plan.
20
State of Illinois
Illinois State University
Schedule of Findings and Recommendations
Year Ended June 30, 2011
11-3 Finding - Computer Security Administration Deficiencies
Illinois State University (University) had not established adequate security policies and control
over its computer environment.
The University had not fully developed and approved relevant security policies and procedures.
We reviewed the University's policies and procedures and noted the following weaknesses:
• The University's Security Policy is in draft form. At the time of testing the policy had
not been approved by senior management or communicated to the appropriate
individuals.
• The University had established change management procedures and processes for the
new Human Resource system; however, we found no fonnal backout plans existed if
changes were unsuccessful after a move to production.
• Antivirus software was not present on 10% of computer systems.
• Over 73,300 active user accounts had never been used and another 2,400 had not been
used in over a year.
• The University's password expiration policy was not enforced. 2,498 accounts had non­expiring
passwords.
• An excessive number (81) of user accounts had powerful administrative access rights.
Generally accepted information systems audit guidelines endorse the development of computer
security policies that adequately address the current technological environment and well-designed
and well-managed controls to protect computer systems and data.
According to University personnel, this resulted from the lack of a cohesive IT Governance
structure including a common, formal, and disciplined approach for managing IT.
Controls provide assurance that an appropriate security structure is established to make certain
that information assets and resources are adequately protected from unauthorized or accidental
disclosure, modification, or destruction. (Finding Code No. 11-3)
21
State of Illinois
Illinois State University
Schedule of Findings and Recommendations
Year Ended June 30, 2011
11-3 Finding - Computer Security Administration Deficiencies (continued)
Recommendation
We recommend that the University develop standard security guidelines to ensure security
controls are adequately addressed across the University. Comprehensive policies and procedures
should outline general security provisions, appropriate use of computer resources, backup and
care of data, and other appropriate policies to help ensure that effective controls exist.
Specifically the University should:
• Finalize and communicate policies and procedures to all users, and develop a monitoring
process to promote compliance. In addition, all users should be required to sign a
statement acknowledging they have read, understand, and agree to comply with these
policies;
• Ensure all user accounts comply with established security requirements;
• Ensure that user accounts are reviewed regularly and unused or inactive accounts are
removed or deactivated in a timely manner;
• Ensure formal backout plans exists for unsuccessful changes to production systems;
• Ensure that a minimum number of users have accounts with Administrator access to
University systems; and,
• Ensure anti-virus protection is installed on all computer systems.
University Response
Accepted. University policy, 9.8 Security of Information Technology Resources and Systems,
has been approved by the Academic Senate. The scope includes actively controlling the security
of and access to ISU Information Technology Resources and Systems, and authorizes the creation
of procedures that will outline how security will be administered and how access to systems and
data will be granted, maintained, reviewed and audited.
As for backout procedures, although a formal change management process currently exists, work
is underway to establish a formal procedure for backing out changes when promoting new
changes to production systems.
22
State of Illinois
Illinois State University
Schedule of Findings and Recommendations
Year Ended June 30,2011
11-3 Finding - Computer Security Administration Deficiencies (continued)
University Response (continued)
The University will work through its IT Governance structure to create and implement a
comprehensive security policy regarding Active Directory account security - ensuring that
accounts comply with the University's password expiration and complexity policy, that
Administrator and other privileged access is granted appropriately, and that only current user and
computer accounts are present in the directory. The University does have a standard anti-virus
product, and will utilize the upcoming vendor transition to review procedures and ensure
adherence to the University standard product, including monthly review of non-compliant
systems.
23
State of Illinois
Illinois State University
Schedule of Findings and Recommendations
Year Ended June 30, 2011
11-4. Finding - Weakness Regarding the Security and Control of Confidential Information
Illinois State University (University) had not established adequate University-wide procedures for
disposal of confidential information.
Although the University had established various policies relating to the security of confidential
infonnation, the University failed to establish and implement procedures for adequately
protecting and disposing of confidential infonnation. During our review, the foHowing
weaknesses were noted:
• The University had not performed a comprehensive risk assessment to identify
confidential or personal information and its location to assure such information is
protected from unauthorized disclosure.
• While the University had established a unifonn process for the wiping and destruction of
media and data, the process had not been completely implemented. The University did
not have a process for the removal of information from certain types of computers nor for
the physical destruction of computer drives that failed and could not be cleaned using
software.
• A1though the University's Student Health Services maintained protected health
infonnation, a Health Insurance Portability and Accountability Act (HIPAA) risk
assessment had not been completed.
• The University had not fonnally approved notification procedures in the event of a
breach of security regarding personal infonnation.
The University had several computer systems that contained confidential or personal infonnation
such as names, addresses and social security numbers.
The Personal Infonnation Protection Act (815 ILCS 530) requires that entities identify and
protect all nonpublic personal infonnation. The principles of good internal controls require that
sensitive data and its location be identified and that only appropriate personnel handle and
dispose of this infonnation.
According to University personnel, this resulted from the lack of a cohesive IT Governance
structure including a common, fonnal, and disciplined approach for managing IT.
The University has the responsibility to ensure that confidential information is protected from
accidental or unauthorized disclosure. Failure to establish and maintain adequate procedures to
handle and protect confidential and personally identifiable infonnation could result in identity
theft or other unintended use. (Finding Code No. 11-4, 10-3,09-2)
24
State of Illinois
Illinois State University
Schedule of Findings and Recommendations
Year Ended June 30, 2011
11-4. Finding - Weakness Regarding the Security and Control of Confidential Information
Recommendation
We recommend the University:
• Perform a comprehensive risk assessment to identify all forms of confidential or personal
information, where this information is located, and ensure adequate security controls,
including adequate physical and logical access restrictions, have been established to
safeguard data and resources;
• Implement a comprehensive process for the wiping and destruction of media and ensure
it is a requirement for all departments and organizations;
• Perform and document a HIP AA Risk Assessment; and,
• Obtain formal approval of the policies and procedures regarding security breaches.
University Response
Accepted. The University agrees with the recommendation related to risk assessment and
procedures for wiping and destruction of media. As of the date this response, Administrative
Technologies, Campus Technology Support Group, and Internal Audit have teamed together to
perform a risk assessment of information technology at the University. It is expected the
preliminary risk assessment, including HIP AA, will be completed by December 2012.
In terms of the wiping procedures, the University currently degausses media that cannot be wiped
with available tools. Examples of such media include ApplelMacintosh computers, some servers
and USB flash drives. While there is a centrally-managed program at Property Control, several
units also perform their own media wiping efforts. The University understands there is an effort
required to implement a coordinated electronic media wiping for the institution.
As for breach notification procedures, the draft Information Technology Security Incident
Response Plan (ITSIR), includes such procedures. Approval of this plan is expected to be
finalized by the end of fiscal year 2012.
25
State of Illinois
Illinois State University
Schedule of Findings and Recommendations
Year Ended June 30, 2011
11-5. Finding - Timesheets not Required
Illinois State University (University) did not require positive time reporting for all employees in
compliance with the State Officials and Employees Ethics Act (Act).
We noted University Policy 1.12 only requires positive time reporting for hourly civil service
employees, student workers, and members of the Board of Trustees. Faculty, exempt civil
service, and academic employees do not report actual hours worked and are only required to
submit benefit usage cards to identify leave time (vacation, sick, etc.) used to the nearest tenth
hour.
The Act required the Illinois Board of Higher Education (IBHE), with respect to State employees
of public universities, to adopt and implement personnel policies. The Act (5 ILCS 43 0/5-5( c»
states, "The policies shall require State employees to periodically submit time sheets
documenting the time spent each day on official State business to the nearest quarter hour." The
IBHE adopted personnel policies for public universities on February 3,2004, in accordance with
the Act. The University has not incorporated these policies into the University policies.
According to University officials, the University has purchased a new human resource
information system that will address time and labor reporting issues; however, the system has not
yet been fully implemented.
By not requiring time sheets from all of its employees, the University does not have complete
documentation of time spent by employees on official State business as contemplated by the Act.
(Finding Code No. 11-5, 10-2,09-1,08-1,07-1,06-2,05-4)
Recommendation
We recommend the University revise its policy and require all employees submit time sheets in
compliance with State law.
University Response
Accepted. The University has completed the first phase of the new human resource system
implementation and as of July 1,2011, all non-faculty University employees are reporting on a
positive time reporting basis. The second phase of the human resource system implementation
will include converting all remaining University employees from reporting on a negative time
reporting basis to the new system of positive time reporting.
26
State of Illinois
Illinois State University
Schedule of Findings and Recommendations
Year Ended June 30, 2011
Prior Finding Not Repeated
A. Finding - Lack of Reviewed and Approved Periodic Reconciliation of the Detailed Property
and Equipment Listings to the General Ledger
During the prior year engagement, Illinois State University (University) did not perform a
periodic reconciliation of the detailed property and equipment listings to the general ledger.
(Finding Code No. 10-1)
Status: Partially implemented
During the current year engagement, we noted the University improved upon reconciling detailed
property and equipment listings to the general ledger. The auditors uncovered a single,
immaterial condition of noncompliance that will be reported in the Report of Immaterial
Findings.
27
State of Illinois
Illinois State University
Supplementary Information for State Compliance Purposes
June 30, 2011 and 2010
Summary
Supplementary Information for State Compliance Purposes presented in this section of the report
includes the f01l0wing:
• Fiscal Schedules and Analysis:
Schedule of Expenditures of Federal A wards
Notes to the Schedule of Expenditures of Federal Awards
Schedule of Appropriations, Expenditures and Lapsed Balances
Comparative Schedule of Net Appropriations, Expenditures and Lapsed
Balances
Comparative Schedule of Revenues and Expenses - University Income Fund
Schedule of Changes in State Property
Comparative Schedule of Cash and Cash Equivalents
Comparative Schedule of Investments
Analysis of Significant Variations in Certain Revenue and Expense Accounts
Analysis of Significant Variations in Certain Asset and Liability Accounts
Comparative Schedule of Receivables and Aged Analysis of Receivables
• Analysis of Operations:
Agency Functions and Planning Program
Employment Statistics (Full Time Equivalent) (Unaudited)
Annual Cost Statistics (Unaudited)
Emergency Purchases
Bookstore Information (Unaudited)
Service Efforts and Accomplishments (Unaudited)
Schedules of Federal Expenditures, Non-federal Expenses, and New Loans
Summary of Agency Operations by Function of Program Activity -
Student Enrollment Statistics (Unaudited)
Undergraduate Tuition and Fee Waivers (Unaudited)
Graduate Tuition and Fee Waivers (Unaudited)
Debt Financed by University Related Organization
Acquisition of Real Estate by University or URO Not Funded by Separate
Specific Appropriation
• Special Data Requirements for Audits of Universities:
Entity Financial Statements:
Local Funds:
Statement of Net Assets
Statement of Revenues, Expenses, and Changes in Net Assets
28
State of Illinois
Illinois State University
Supplementary Information for State Compliance Purposes
June 30, 2011 and 2010
Summary
• Special Data Requirements for Audits of Universities (continued):
Entity Financial Statements (continued):
Service Departments:
Statement of Net Assets
Statement of Revenues, Expenses, and Changes in Net Assets
Auxiliary Facilities:
Statement of Net Assets
Statement of Revenues, Expenses, and Changes in Net Assets
Calculation Sheet for Indirect Cost Carryforward
Calculation Sheet for Current Excess Funds:
Current Unrestricted Local Funds:
Continuing Education and Public Services
Sales and Services of Educational Activities
Student Programs and Services
Field Trips and Foreign Study
Service Departments
Auxiliary Facilities - Revenue Bonds:
Student Housing
Student Activities
Parking Services
Auxiliary Facilities, Activities, and Accounting Entities
Summary of Foundation Payments to the University
Noninstructional Facilities Reserve
Disclosure of Support Which Auxiliary Facilities and Activities Have
Received During the Year from State Appropriated Funds
Illinois Institute for Entrepreneurship Education Financial Information
The accountants' report that covers the Supplementary Information for State Compliance Purposes
presented in the Compliance Report Section states that it has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in the accountants' opinion,
except for that portion marked "unaudited," on which they express no opinion, it is fairly stated, in
all material respects, in relation to the basic financial statements taken as a whole.
29
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2011
Federal Grantorl Passed-
Pass-Through Grantor/ CFDA Pass-Through Through to
Program or Cluster Title Number Grantor's Number Expenditures Subrecepients
STUDENT FINANCIAL AID CLUSTER
U.S. Department of Education
Federal Supplemental Educational Opportunity Grants (M) 84.007 $ 531,474.82 $
Federal Work-Study Program (M) 84.033 1,032,248.95
Federal Perkins Loan Program Federal Capital Contributions (M) 84.038
Federal Pell Grant Program (M) 84.063 18,796,095.31
Byrd Honors Scholarships (M) 84.165 7,500.00
Federal Direct Student loans (M) 64.268 108,352,602.00
Academic Competitiveness Grants (M) 84.375 666,620.69
National Science & Mathematics Access to Retain Talent
(Smart) Grants (M) 84.376 578,838.50
Teacher Education Assistance for College & Higher
Education Grants (TEACH Grants) (M) 84.379 292,680.00
U.S. Department of Veterans Affairs
Post-Sill Veterans Educational Assistance (M) 64.124 1,098,098.24
U.S. Department of Health and Human Services
Nursing Student Loans (M) 93.364
Corporation for National and Community Service
Americorps (M) 94.006 79.214.14
TOTAL STUDENT FINANCIAL AID CLUSTER 131.435.372.65
RESEARCH & DEVELOPMENT CLUSTER
U.S. Department of Agriculture
•• Sustainable Agriculture Research and Education
(Passed through University of Minnesota) (M) 10.215 H001911511 9,450.00
•• Integrated Progams
(Passed through Southern Illinois University) (M) 10.303 SIUC 08-13 {328.53}
Total U.S. Department of Agriculture R&D 9.121.47
U.S. Department of Defense
.. Mathematical Sclences Grants Program (M) 12.901 1!889.99
Total U.S. Department of Defense R&D 11889.99
U.S. Department of the Interior
.. National Cooperative Geologic Mapping Program (M) 15.810 14.994.71
Total U.S. Department of the Interior R&D 14.994.71
U.s. Department of Justice
- Edward Byme Memorial Competitive Grant
(Passed through Georgia Southern University) (M) 16.751 GSU 10362 32,018.98
- ARRA - Edward Byrne Memorial Justice Assistance
(passed through illinois Department of Human
Services) (M) 16.803 l1AM571000 321823.82
Total U.S. Department of Justice R&D 641842.80
U.S. Department of Labor
** AARA Employment ServlcelWagner-Peyser
(Passed through illinois Department of Employment
Security) (M) 17.207 11C32,ISUICA2010 3231578.29
Total U.S. Department of Labor R&D 3231578.29
National Endowment for the Humanities
- Promotion of the Humanlties-Office of Dlgltial Humanities (M) 45.169 11.714.91
Total National Endowment for the Humanities R&D 11,714.91
National Science Foundation
•• Mathematical and Physical Sciences (M) 47.049 646,734.03
"* Mathematical and Physical Sciences
(passed through Harold Washington College) (M) 47.049 CHE-0629174 82.408.05
Total R&D 47.049 729.142.08
The accompanying notes to the Sche<Iufe of Expenditures of Federal Awards are an Integral part of this scltedufe.
30
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30,2011
Federal Grantorl
Pass-through Grantorl CFDA Pass-Through
Prog@m or Cluster Title Number Grantor's Number
National Science Foundation continued
.. Computer & Information Science & Engineering (M) 47.070
•• Biological Sciences (M) 47.074
•• Biological Sciences (Passed through Iowa State University) (M) 47.074 420-40-77A
Total R&D 47.074
•• Education and Human Resources (M) 47.076
Total National Science Foundation R&D
U.S. Department of Energy
.... Renewable Energy Research & Development (M) 81.087
•• Energy Efficiency and Renewable Energy Information Dissemination,
Outreach, Training and Technical AnalysiS/Assistance (M) 81.117
Total U.S. Department of Energy R&D
U.S. Department of Education
... Tech-Prep Education
(Passed through Minnesota State Colleges &
Universities) (M) 84.243 40997
•• Research in Special Education (M) 84.324
•• Mathematics & Science Partnerships
(Passed through Illinois State Board of Education) (M) 84.366 493E)..71/01
•• Mathematics & Science Partnerships
(Passed through Monroe/Randolph Regional
Office of Education #45) (M) 84.366 IBiotech
Total 84.366
•• Improving Teacher Quality State Grants
(Passed through Illinois State Board of Education) (M) 84.367 4932-00
.. ARRA -Education Jobs Fund
(Passed through Illinois Board of Education) (M) 84.410 11-4880-00
Total U.S. Department of Education R&D
U.S. Department of Health and Human Services
•• Research Related to Deafness and Communication Disorders (M) 93.173
.. Drug Abuse and Addiction Research Programs
(Passed through Case Western Reserve
University) (M) 93.279 RES503540
- Drug Abuse and Addiction Research Programs
(Passed through University of Utah) (M) 93.279 PO 0000137622
Total R&D 93.279
.. Cancer Cause & Prevention Research (M) 93.393
•• Adoption Opportunities
(passed through Children's Home & Aid Society
ofminois) (M) 93.652 ISU
.. Adoption Opportunities (Passed through Adoptions Unlimited) (M) 93.852 Year 4, Year 5
Total R&D 93.652
.. ARRA -Trans - NIH Recovery Act Research Support (M) 93.701
•• ARRA - Health Information Technology Regional Extension Centers Program
(Passed through Northem IRlnols University) (M) 93.718
•• Allergy, Immunology, and Transplantation Research (M) 93.855
... Microbiology and Infectious Diseases Research
(Passed through University of Florida) (M) 93.856 UF-IFAS-04022551
.. Biomedical Research and Research Training
(Passed through New Mexico State University) (M) 93.859 POD83084nR0083273
Total U.S. Department of Health and Human Services R&D
U.S. Department of Homeland Security
- Emergency Management Performance Grants
(Passed through illinois Emergency Management
Agency) (M) 97.042 09EMPGISU
Total U.S. Department of Homeland Security R&D
TOTAL RESEARCH & DEVELOPMENT CLUSTER
The accompanying notes to the Schedule of Expenditures of Federal Awards are an Integral part of this schedule.
Passed-
Through to
EXRendltures SubreceRients
37.255.11
280,444.38 30,465
291607.00
310,051.38 30,465
5501841.64 1061856
116271290.21 1371321
389,515.20
72,906.77
462.421.97
5,369.70
261,310.83
372,179.12
4°1949.98
413,129.10
11,908.00
534,897.00
112261614.63
140,976.69 110,212
10,385.50
94,014.90
104.400.40
69,269.82
30,422.48
15.288.32
45,710.80
260,742.19 87,696
3,500.00
140,170.17
22.130.22
15.84
786.918.13 1971908
281248.94
28.248.94
4,557.634.05 3351229
31
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2011
Federal Grantorl
Pass-Through Grantorl CFDA Pass-Through
Program or Cluster TItle Number Grantor'S Number
OTHER PROGRAMS
U.S. Department of Agriculture
National Schoollllnch Program
(Passed through Illinois State Board of Education) 10.555 4400
Environmental Quality Incentives Program 10.912
Total U.S. Department of Agriculture Non-R&D
U.S. Department of Commerce
ARRA· Broadband Technology Opportunities Program
(Passed through Illinois Department of Central
Management Services) (M) 11.557 ISU
Manufacturing Extension Partnership
(Passed through Illinois Manufacturing Extension Center) 11.611 IMEC
Total U.S. Department of Commerce Non-R&D
U.S. Department of Justice
Public Safety Partnership & Community Policing 16.710
Total U.S. Department of Justice Non-R&D
U.S. Department of Labor
WIA Dislocated Workers (Passed through Career link) 17.260 Krejci, Moody
Occupational Safety & Health-Susan Harwood Training Grants
(Passed through Illinois Manufacturing Extension Center) 17.502 IMEC
Total U.S. Department of labor Non-R&D
National Endowment for the Arts
Promotion of the Arts-Grants to Organizations and Individuals 45.024
Total National Endowment for the Arts Non·R&D
National Endowment for the Humanities
Promotion of the Humanities-Public Programs 45.164
Total National Endowment for the Humanities Non-R&D
National Science Foundation
Mathematical and Physical Sciences 47.049
Computer & Information Science & Engineering
(Passed through Marist College) 47.070 NSF CN8-0829558
Education and Human Resources 47.076
Education and Human Resources
(Passed through Pugent Sound Center) 47.076 HRD·0631789
Education and Human Resources
(Passed through Chicago State University) 47.076 53725
Education and Human Resources
(Passed through University of Arizona) 47.076 DRL081996
Total 47.076
ARRA - Trans-NSF Recovery Act Research Support 47.082
Total National Science Foundation Non-R&D
U.S. Small Business Administration
Small Business Development Center 59.000
Small Business Deveolpment Center (Passed through United States
Department of Housing & Urban Development) 59.000 B-09-SP-ll-0269
Total 59.000
Small BUSiness Development Centers (Passed through Illinois
Department of Commerce and Economic Opportunity) 59.037 09-181106
Total U.S. Smail Business Administration Non-R&D
The accompanying notes to the Schedule of Expenditures of Federal Awards are an Integral part of this schedule.
Passed·
Through to
EXQengitures Subreceelents
23.564.26
171500.15
41 1°64.41
719,274.26
4071346.52
111261622.78
49,940.09 41,438
49,940.09 41,438
23,592.27
21,738.72
451330.99
151°00.00
151°00.00
669.55
669.55
16,608.02
1,856.90
181,649.54
6,516.80
18.788.75
31686.89
2101641.98
271350.08
2561456.98
268,725.69
11.907.16
2781632.85
601185.94
338.818.79
32
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2011
Federal Grantorl
Pass-Through Grantorl
Program or Cluster Title
U.S. Environmental Protection Agency
CFDA Pass-Through
Number Grantor's Number
Science To Achieve Results Fellowship Program 66.514
Energy Efficiency and Conservation Block Grant Program
(Passed through Illinois Manufacturing Extension Center) 66.717 IMEC
Brownfields Training, Research, & Technical Assistance
Grants & Cooperative Agreements
(Passed through Kansas State University) 66.814 S09042
Tolal U.S. Environmental Protection Agency Non-R&D
U.S. Deparbnent of Energy
State Energy Program Special Projects
(Passed through Illinois Manufacturing Extension Center) 81.119 IMEC
Energy Efficiency and Conservation Block Grant Program
(Passed through Illinois Manufacturing Extension Center) 81.128 IMEC
Total U.S. Department of Energy Non-R&D
U.S. Deparbnent of Education
Special Education-Grants to States
(Passed through illinois State Board of Education) 84.027 A TT AP
TRIO· Student Support Services 84.042
Career and Technical Education - Basic Grants to States
(Passed through Illinois Community College Board)
Career and Technical Education - Basic Grants to States
(Passed through Illinois State Board of Education)
Safe & Drug-Free Schools & Communities National Programs
Bilingual Education Professional Development
Even Start - State Educational Agencies
(Passed through OER Associates)
Twenty-First Century Community Learning Centers
ARRA - Education Technology State Grants
(Passed through Pontiac Township High School)
Special Education - Personnel Development to Improve Services
and Results for Children with Disabilities
Teacher Quality Partnership Grants
Mathematics & Science Partnerships
(Passed through illinois State Board of Education)
Improving Teacher Quality State Grants
84.048 CTEL11001
84.048 10 & 11-4720
Total 84.048
84.184
84.195
84.213 OER
84.287
84.318 16132
84.325
84.336
84.366 4936
(Passed through Illinois Board of Higher Education) (M) 84.367 11TQP
Improving Teacher Quality State Grants
(Passed through Hlinois State Board of Education) (M) 84.367 MY11721
Improving Teacher Quality State Grants
(Passed through Peoria Public Schools
District 150) (M) 84.361 PPS-ISU
School Improvement Grants
(Passed through illinois Board of Education)
National Writing Project
(Passed through National Writing Project)
Total U.S. Department of Education Non-R&D
U.S. Department of Health and Human Services
Total 84.367
84.377
84.928 92-IL03
Advanced Education Nursing Traineeships 93.358
National Center for Research Resources 93.389
Total U.S. Department of Health and Human Services Non-R&D
Corporation for National and Community Service
Americorps (Passed through Jumpstart)
Americorps (Passed through Western Illinois University)
94.006 750200
94.006 5-18271 & 5-19880
Total 94.006
Total Corporation for National and Community Service Non-R&D
The 8CCOIlipally!ng notes to the Schedule of Expend'ltures of Federal Awards are an Integrel part of this schedule.
Expenditures
11,674.53
712.19
11.814.26
24,200.98
392.80
1,413.65
1.806.45
252,031.90
273,032.43
300,858.79
260,088.10
560,946.89
124,140.64
289,953.15
15.445.71
53.667.27
13.056.61
146,244.40
1,103,168.68
1,425.149.17
58.108.18
377,225.47
171.676.67
607,010.32
76,142.50
44.213.98
4,984.203.65
29,344.00
283.975.01
313,319,01
59.143.81
17.983.10
77.126.91
77,126.91
Passed­Through
to
Subrecepients
43,775
40.467
84.242
20,933
248,218
115,992
115,992
469.385
13.535
13.535
33
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30.2011
Federal Grantorf
Pass-Through Grantorl
Program or Cluster ntle
Library of Congress
Teaching with Primary Sources
Teaching with Primary Sources Regional Center Pilot
Total library of Congress Non-R&D
Corporation for Public Broadcasting
Community Service Grant
Total Corporation for Public Broadcasting Non-R&O
TOTAL OTHER PROGRAMS NON-R&O
TOTAL EXPENDITURES OF FEDERAL AWARDS
... Research and Development Cluster
(M) - Program was audited as a major Program
CFDA Pass-Through
Number Grantor*s Number
NONE
NONE
NONE
The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule.
Passed­Through
to
Expenditures Subreceplents
208,972.34
315,368.07 213,064
524,340.41 213,064
134,033.07
134,033.07
7,932,934.07 737.422
143,925.940.77 $ 1,072,651
34
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2011
NOTE 1 - BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards includes the federal grant activity for the
year ended June 30, 2011, and is presented on the accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements ofOMB Circular A-I33, Audits o/States, Local
Governments, and Non-Profit Organizations. Some amounts presented in this schedule may differ from
amounts presented in, or used in the preparation of, the basic financial statements due to specific reporting
requirements prescribed by OMB Circular A-133.
NOTE 2 - LOANS OUTSTANDING
The University had the following loan balances outstanding at June 30, 2011. These loan balances
outstanding are also included in the federal expenditures presented in this schedule.
Nursing Student Loans
Perkins Loan Program
Total loans outstanding
There were no administrative costs charged to the Perkins Loan Program.
Outstanding
Balance at
June 30, 2011
$ 384,729
9,929,554
$ 10.314,283
NOTE 3 - GUARANTEED STUDENT LOANS - NONCASH EXPENDITURES OF FEDERAL
AWARDS
During the audit period, the University processed the following amounts of new loans under the Federal
Direct Student Loans Program:
Direct Student Loans Program
Direct Parent Loan for Undergraduate Students Program (PLUS)
Total
There were no administrative costs charged to the loan program.
$ 80,560,023
27,792,579
$108.352,602
35
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30,2011
NOTE 4 - FOOD DISTRIBUTION PROGRAM - NONCASH EXPENDITURES OF FEDERAL
AWARDS
During the audit period, the University received $10,770 of food commodities provided by the United
States Department of Agriculture, and distributed through the Food Distribution Program that is
administered by the Illinois State Board of Education.
NOTE 5 - INSURANCE - NONCASH EXPENDITURES OF FEDERAL AWARDS
During the audit period, there was no Federally-funded insurance in effect.
36
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
SCHEDULE OF APPROPRIATIONS, EXPENDITURES,
AND LAPSED BALANCES
APPROPRIATIONS FOR FISCAL YEAR 2011
For the Fourteen Months Ended August 31,2011
Approximate Approximate
Lapse Period Total
Voucher Expenditures, Expenditures, Approximate
Expenditures, Two Months Fourteen Balances
Appropriations Twelve Months Ended Months Ended Lapsed,
(Net After Ended June 30, August 31, August 31, August 31,
Transfers) 2011 2011 2011 2011
GENERAL REVENUE FUND-
001 (p .A. 96-0956)
Lump-sum Operations $79,789,500 $79,392,632 $396,868 $79,789,500 $ -
Total $79,789,500 $79,392,632 $396,868 $79,789,500 $ -
GRAND TOTAL - ALL FUNDS $79,789,500 $79,392,632 $396,868 $79,789,500 $ -
Note I: The data for this report was taken from the University's records and has been reconciled to the data of the
Office of the State Comptroller.
Note 2: Expenditure amounts are vouchers approved and paid by the University and submitted to the Office of the
State Comptroller for reimbursement of payments made to vendors.
37
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
COMPARATIVE SCHEDULE OF NET APPROPRIATIONS,
EXPENDITURES, AND LAPSED BALANCES
For the Years Ended June 30,2011 and 2010
2011 2010
96-0956 96-0114
GENERAL REVENUE FUND - 001
Appropriations (net of transfers) $ 79,789,500 $ 85,096,430
Expenditures:
Lump sum operations 79,789,500 80,452,000
Personal services - ARRA 4,644,430
Total expenditures 79,789,500 85,096,430
Lapsed balances $ $
STATE COLLEGE AND UNIVERSITY
TRUST FUND - 417
Appropriations (net of transfers) $ $ 50,000
Expenditures
A wards and grants 50,000
Total expenditures 50,000
Lapsed balances $ $
GRANT TOTAL, ALL FUNDS
Appropriations (net of transfers) $ 79,789,500 $ 85,146,430
Expenditures 79,789,500 85,146,430
Lapsed balances $ $
Note 1: The data for this report was taken from the University's records and has been reconciled to the data of
the Office of the State Comptroller.
Note 2: Expenditure amounts are vouchers approved and paid by the University and submitted to the Office of
the State Comptroller for reimbursement of payments made to vendors.
38
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
COMP ARA TIVE SCHEDULE OF REVENUES AND EXPENSES
UNIVERSITY INCOME FUND
Years Ended June 30,2011 and 2010
2011 2010
REVENUES
Registration fees $ 133,563,399 $ 122,001,951
Registration - extension 1,478,300 1,293,866
Enrollment deposit fee forfeitures 11,200 11,550
Tuition and fees waived 5,255,400 4,334,200
Library fines 14,741 18,439
Invesnnentincome 811,563 832,621
Net increase in fair market value of investments 353,893
Payments on behalf of University 1,205,883 1,314,581
Gifts and donations
Other 559,793 396,907
$ 143,254,172 $ 130,204,115
EXPENSES
Personal services $ 62,351,698 $ 58,296,386
SURS retirement 140,734 9,434
Medicare 1,945,707 1,891,889
Contractual services 34,937,992 29,383,291
Travel 1,543,119 1,430,610
Commodities 2,710,252 2,714,926
Equipment and library books 10,082,953 10,060,016
Telecommunications services 2,885,331 1,397,918
Operation of automotive equipment 593,458 595,054
Tuition and fees waived 5,255,400 4,334,200
Awards, grants, and matching funds 7,757,407 6,370,001
Permanent improvements 2,660,807 7,766,783
Subtotal 132,864,858 124,250,508
GASB No. 35 Adjustments:
Depreciation 11,618,275 10,869,468
Equipment additions/disposals (9,896,517) (13,306,020)
$ 134,586,616 $ 121,813,956
Note 1: Pursuant to the State Finance Act (30 ILCS 1 05/6a-l b), responsibility and control of the Illinois
State University Income Fund was transferred directly to the University. It is now a non-appropriated, local
fund maintained by the University.
39
ST ATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
STATEMENT OF CHANGES IN STATE PROPERTY
For the Year Ended June 30, 2011
Data for this schedule included all accounting entities and was obtained from University records,
which have been reconciled to the property records submitted to the Office of the State Comptroller.
Beginning Ending
Balance Additions Retirements Balance
Land $ 14,158,006 $ $ $ 14,158,006
Land Improvements 33,063,588 437,782 (188,039) 33,313,331
Infrastructure 12,682,559 12,682,559
Buildings 422,051,885 91,056,112 (3,435,290) 509,672,707
Equipment 73,351,021 7,216,299 (1,689,535) 78,877,785
Li brary materials 74,336,701 3,774,371 78,111,072
Construction in 80,378,947 25,381,831 (89,173,178) 16,587,600
progress
Intangible - internally
generated software 6,782,814 3,600,933 (271,258) 10,112,489
Subtotal 716,805,521 131,467,328 (94,757,300) 753,515,549
Less accumulated
depreciation for:
Land Improvements 9,756,015 994,422 (188,040) 10,562,397
Infrastructure 6,071,004 311,507 6,382,511
Buildings 186,555,250 9,976,032 (3,421,534) 193,109,748
Equipment 57,770,472 5,263,786 (1,578,527) 61,455,731
Library materials 57,882,034 3,233,504 61,115,538
Total accumulated
depreciation 318,034,775 19,779,251 (5,188,101) 332,625,925
CAPITAL ASSETS,
NET $ 398,770,746 $ 420,889,624
Note 1: This summary schedule was prepared using State property records required by the Illinois
Administrative Code (Code). The capitalization policy in the Code is different than the capitalization policy
established by the Office of the Comptroller for financial reporting in accordance with generally accepted
accounting principles.
40
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
COMPARATIVE SCHEDULE OF CASH AND
CASH EQUIV ALENTS
June3~2011and2010
Significant details of cash and cash equivalents as of June 30, 2011 and 2010 are presented below for all
funds of the University:
CASH ON HAND - V AUL T
AND CHANGE FUNDS
BANK MONEY MARKET
FUNDS
Commerce Bank
Illinois Funds @ U.S. Bank
Bank of New York
U.S Bank
Total bank money
market funds
TOTAL CASH AND CASH
EQUIVALENTS
Ending
Balance
$ 241 2658
15,013,162
10,366,438
1,300,633
9,760,515
36,440,748
$ 36.682.406
2011
Interest
Rate
Non-interest
bearing
N/A
.024%
0%
0%
2010
Ending Interest
Balance Rate
Non-interest
$ 1862742 bearing
11,809,243 N/A
37,829,715 .089%
5,259,509 .00% to .10%
5,943,603 0%
60,842,070
$ 6}'028.812
Cash and cash equivalent balances are presented in the balance sheets at June 30, 2011 and 2010 as follows:
Cash and cash equivalents $ 25,621,673
Restricted cash and cash equivalents 11,060,733
TOTAL CASH AND
CASH EQUIVALENT
BALANCES $ 36.682.406
$ 49,826,109
11,202,703
$ 61.028.812
41
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
COMPARATIVE SCHEDULE OF INVESTMENTS
June 30,2011 and 2010
2011 2010
Ending Ending
Balance Interest Rate Balance
U.S. Treasury and Agency
Obligations and
Agency notes $112,991,120 .50-5.375% $ 83,127.305
TOTAL INVESTMENTS $1122291 2120 $ 8321272305
Investments are presented in the balance sheets at June 30, 2011 and 2010 as follows:
Current:
Investments
Restricted investments
Noncurrent:
Investments
Restricted investments
TOT AL INVESTMENTS
$ 21,612,550
4,431,054
83,703,480
3,244,036
$112,221,120
$ 28,505,635
54,621,670
$83.127,305
Interest Rate
1.375-5.375%
42
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
ANALYSIS OF SIGNIFICANT VARIATIONS IN CERTAIN REVENUE AND EXPENSE ACCOUNTS
For the Year Ended June 30. 2011
Amounts shown below are for general analytical purposes. Significant items Impacting the University's financial position and operations are also discussed in the Managemenfs Discussion
and Analysis section of the financial statements.
Fiscal Year
2011
Operating revenues:
Student tuition and fees, net 167,142,161
Operating expenses:
Depreciation 19,779,251
Staff Benefits 1,911,309
Student aid 36,920,437
Payments on behalf of the University 86,469,651
Nonoperating revenues (expenses):
Payments on behalf of the University 86,469,651
Laboratory schools 9,085,803
Investment income 1,561,596
Interest expense (4,419,723)
Capital appropliatlons 709,628
Capital grants and gifts 2,474,776
Increase
2010 (Decrease)
151,104,041 16,038,120
17,939,398 1,839,853
1,220,296 691,013
31,674,364 5,246,073
78,553,377 7,916,274
78,553,377 7,916,274
7,731,508 1,354,295
2,352,613 (791,017)
(3,280.279) (1,139,444)
7,583,879 (6,814,251)
927,928 1,546,848
%of
Change
10.61%
10.26%
56.63%
16.56%
10.08%
10.08%
17.52%
-33.62%
34.74%
-90.64%
166.70%
Notes
Page
2
3
4
5
6
7
8
9
10
11
1 Student tuition and fees Increased by $16,038,120. This increase was largely a result of the University's 6.09% Increase in tuition and fees for incoming students.
2 Depreciation expense Increased by $1,839,853 due to completion of projects including the Student Fitness Center, rehab of Stroud Auditorium and StevensonfTumer
Ufe/Safety Improvements and Abatement
3 Staff benefits Increased by $691,013. In 2010, the expenses were offset by a decrease in the value of accrued vacation and sick pay of $757,960. In 2011, the offset was only $281,384.
4 Student aid expenses increased by $5,246,073. This is a result of increased Pell awards of $2,683,921, an increase in internal funding by the University of $1 ,422,625, and increased tuition and
fee waivers of $921.200.
5/6 Payments on behalf of the University increased by $7,916,274. The state's payments for SURS benefits and insurance benefits increased by $4,085,293 and $3,830,981 respectively.
7 Laboratory school revenues Increased by $1,354,295 as a result of increased State Aid.
8 Investment revenue decreased by $791,017. Interest income actually decreased by $525,114 for this fiscal year and the change in fair market value oflnvestments
decreased by $265.903.
9 Interest expense Increased by $1,139,444. The Interest expense related to the construction for the Student Fitness Center is no longer capitalized. but rather expensed directly.
10 Capital appropriations decreased by $6,874,251 due to the substantial completion of major projects including StevensonlTurner Life/Safety Improvements and StevensonlTumer Abatement that
were funded by the State's Capital Development Board.
11 Capital grants and gifts increased by $1,546,848 primarily due to an Increase in Foundation gifts of $806,224 and income from an Illinois Broadband grant of$719.274.
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
ANALYSIS OF SIGNIFICANT VARIATIONS IN CERTAIN ASSET AND LIABILITY ACCOUNTS
For the Year Ended June 30, 2011
Amounts shown below are for general analytical purposes. Significant items impacting the University's financial position and operations are also discussed In the Management's Discussion
and Analysis section of the financial statements.
Rscal Year Notes
2011 2010
Increase
(Decrease)
% of
Change ~
ASSETS
Current assets:
Cash and Cash Equivalents 25,621,673 49,826,109 (24,204,436) -48.58%
Investments 21,612,550 28.505.635 (6.893.085) -24.18%
Investments - Restricted 4.431.054 0 4,431,054
Appropriations Receivable from State 35.047.150 20.390.047 14,657,103 71.88%
Noncurrent assels:
Investments 83.703,480 54,621,670 29.081.810 53.24%
Investments - Restricted 3.244.036 3,244.036
Capital assets not depreciated 40.858,095 101.319,767 (60,461.672) -59.67%
Capital assets, net 380,031,529 297,450,979 82.580.550 27.76%
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 21.510.325 25.698.104 (4.187,779) ·16.30%
Non current liabilities
Certificates of Participation 34.334.008 20,471,234 13,862.774 67.72%
Notes
1 Cash and cash equivalents decreased by $24,204.436. This resulted from a change in mix of cash and investments.
2 Investments and Restricted Investments decreased by a total of $2,462.031 as a result of the change in the mix of investments held by the University during 2011.
3 Appropriations receivable from the state increased by $14,657.103. this is a reflection of the delay of payments from the State.
1
2
2
3
4
4
5
6
7
8
4 Long-teon Investments and Long-Ierm restricted investments increased by a total of $32,325,846. There was a change in the investment mix between short term and long term investments.
5/6 Capital assets not depreciated decreased by $60.461.672 and Capital assets. net Increased by $82,580,550. These changes are a result of the completion of various construction projects
7
8
including rehabilitation of Watterson Towers, Watterson Commons Dining Center and the Student Fitness Center.
Accounts payable and accrued liabilities decreased by $4,187.779. This is a result ofthe completion of construction and rehabilitation projects on campus including
rehabilitation of Watterson Towers. Watterson Commons Dining Center and the Student Fitness Center.
COPS increased by $13,662,774 as a result of borrowing $15.000,000 of which $14,675.000 was classified as the non current portion.
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
COMPARATIVE SCHEDULE OF RECEIVABLES AND
AGED ANALYSIS OF RECEIVABLES
ACCOUNTS RECEIVABLE
CWTent funds:
June 30,2011 and 2010
2010
(as restated)
Increase
(Decrease)
Local funds (less allowance for doubtful
accounts of$I,741,158 and $1,581,440
at June 30, 2011 and 2010, respectively) $ 4,090,352 $ 3,375,603 $ 714,749
Auxiliary facilities system (less allowance
for doubtful accounts of $920,385
and $877,320 at June 30, 2011 and
2010, respectively)
Restricted funds
Payroll and clearing accounts
Total CWTent funds
Agency funds
Loan funds
TOTAL ACCOUNTS RECEIVABLE
NOTES RECEIVABLE
Loan funds:
Student loans receivable (less allowance for
doubtful loans of $993,784 and $973,784
at June 30, 2011 and 2010, respectively)
AGED ANALYSIS OF ACCOUNTS RECEIVABLE
AND UNCOLLECTIBLE ACCOUNTS
1,181,855 1,241,367 (59,512)
2,599,411 2,793,724 (194,313)
71~723 131 2204 (592481)
7,943,341 7,541,898 401,443
1,110,519 922,781 187,738
8,950 8,291 659
$ 9~062281 ° $ 824722210 $ 582284Q
$ 2.312,7Q4 $2,756,4QO $ (383,626)
The University did not have an aged analysis of accounts receivable; however, accounts receivable other
than tuition, room and board, and fees receivable are generally less than 180 days old and considered to be
collectible. An allowance for doubtful accounts of $1,476,682 and $1,334,304 at June 30, 2011 and 2010,
respectively, has been established for tuition receivable deemed uncollectible. An allowance for doubtful
accounts of $687,077 and $651,510 at June 30, 2011 and 2010, respectively, has been established for room
and board receivable deemed uncollectible. An additional allowance for doubtful accounts of $497,784 and
$472,946 at June 30, 2011 and 2010, respectively, has been established for fees receivable deemed
uncollectible.
Notes receivable are presented in the balance sheets at June 30, 2011 and 2010 as follows:
Current
Noncurrent
2011 2010
$ 921,929 $ 928,736
82450,775 8,827,664
$ 2.312,704 $ 9,756,400
45
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
ANALYSIS OF OPERATIONS
AGENCY FUNCTIONS AND PLANNING PROGRAM
June 30, 2011
Illinois State University was founded in 1857 as the first public institution of higher education in the State.
The documents establishing Illinois State as a teacher education institution were drafted by Abraham
Lincoln. Illinois State is a multi-purpose institution with degree programs at the bachelor's, master's, and
doctoral levels.
The basic purpose and function of academic programming at Illinois State University is stated in the
Mission Statements portion of the University's Academic Plan, which is updated and submitted annually to
the Illinois Board of Higher Education. The Mission Statements include: (1) the illinois State University
Board of Trustees Vision Statement for the Year 2014, (2) University Mission Statement, and (3) College
Mission Statements.
The Academic Plan submitted during our audit period is for fiscal years 2011-2016 and can be found at
htlp:llprovost.illinoisstate.eduldownloads/academic planlAcademicPlan2011 2016.pdf. It includes: (1) an
identification of institutional priorities; (2) the University's strategic plan, Educating Illinois 2008-2014
Priorities for Illinois' First Public University; and, (3) specific curricular initiatives set forth by those
responsible for academic planning within the University.
The Academic Plan also includes academic unit (college) objectives for fiscal year 2012 and program
reviews for the departments in the University being reviewed in the most recent review cycle. Program
reviews contain recommendations for enhancing the programs being examined as well as plans for
monitoring progress toward the fulfillment of these recommendations. During fiscal year 2011, program
reviews were completed on the following programs: B.S. in Medical Laboratory Science, B.S. in Safety,
B.A., M.A., and M.S. in English, PhD. in English Studies, M.A. & M.S. in Writing, Teaching of Writing in
HighlMiddle School - Post-Baccalaureate Certificate, B.A. & B.S. in Interdisciplinary Studies, and B.A.,
B.S., & M.S. in Mathematics.
Compilation of the University'S Academic Plan is coordinated through the Office of the Associate Provost,
whose functions also ensure cohesion between the Academic Plan and the University'S strategic plan:
Educating Illinois: 2008-2014 Priorities for Illinois' First Public University.
• Educating Illinois is the University'S multi-year strategic plan. It has articulated five core values
(individualized attention, public opportunity, active pursuit of learning and scholarship, diversity, and
innovation) that support 5 goals and 27 corresponding action items addressed by the campus
community. University progress is summarized on the accomplishments section of the Educating
Illinois Website, www.educatingillinois.illinoisstate.edu.
Other university-wide planning documents and processes include the following:
• Resource Allocation and Management Program (RAMP) for Operations and Grants Resource
Requirements is a five-year plan that includes a comparison to the preceding two fiscal years. Among
the data included are a summary of operations costs by function and source of funds, summary of staff
requirements and earnings, projected enrollments, and tuition and fees. Detailed information by various
departments and programs is included.
46
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
ANAL YSIS OF OPERATIONS
AGENCY FUNCTIONS AND PLANNING PROGRAM
June 30, 2011
• Resource Allocation and Management Program (RAMP) Capital Requirements Plan is also a five-year
planning program that includes a summary of capital requirements by budget category. These
requirements are detailed as to building or components of buildings, as well as other capital projects,
planned for the University.
• Master Plan: 2010-2030 Looking to the Future defines the future physical development of facilities,
grounds, technology, and infrastructure. This plan is the basis for those recommendations in Resource
Allocation and Management Program (RAMP) Capital Requirements Plan.
• Additionally, the Facilities Condition Assessment provides quantitative information on the condition of
physical structures and current and projected maintenance needs. The results from this assessment are
used to inform the Master Plan and Capital RAMP.
Location of Agency: Normal, Illinois
Agency Head: Dr. C. Alvin Bowman, President
47
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
EMPLOYMENT STATISTICS (FULL-TIME EQUIVALENT)
Years Ended June 30, 2011 and 2010
YEAR ENDED JUNE 30, 2011
Appropriated funds:
Faculty I administrati ve
Civil service
Student employees
Miscellaneous contracts
Non-appropriated funds:
Faculty! administrative
Civil service
Student employees
TOTAL ALL FUNDS
YEAR ENDED JUNE 30, 2010
Appropriated funds:
Faculty /administrati ve
Civil service
Student employees
Miscellaneous contracts
Non-appropriated funds:
Faculty/administrative
Civil service
Student employees
TOTAL ALL FUNDS
(Unaudited) *
Instructional Organized
Activities Research
1,071.50 170.40
211.00 5.90
85.00 .40
15.20 21.90
1,382.70 198.60
55.10 122.10
21.90 28.00
29.90 17.50
106.90 167.60
1,489.60 366.20
1,031.60 154.90
210.70 6.30
85.00 .60
18.00 24.80
1,345.30 186.60
103.70 125.00
20.80 34.60
25.20 19.90
149.70 179.50
11425.00 366.10
Public
Service
28.20
8.20
.80
.20
37.40
64.50
17.50
9.20
91.20
128.60
32.60
13.70
2.80
.30
49.40
59.90
17.50
9.20
86.60
136.00
* This information has been provided by the University's Office of Budget and Planning and continued on
following page.
This is the employment information reported to the Illinois Board of Higher Education. Staff years are
computed by dividing the employees' number of months of employment during the fiscal year by 12 and
multiplying that number by a factor of one for full-time and multiplying by the percentage of appointment
for part-time. Examples of staff year computations are as follows:
• 1 full-time employee employed 12 months of the fiscal year counts - 1 staff year
• 1 full-time employee employed 6 months of the fiscal year COWltS - .5 staff year
• lone-third time employee employed 12 months of the fiscal year counts - .33 staff year
• lone-third time employee employed 6 months of the fiscal year counts - .17 staff year
48
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
EMPLOYMENT STATISTICS (FULL-TIME EQUIVALENT) continued
Years Ended June 30,2011 and 2010
(Unaudited) *
Operation and
Academic Student Institutional Maintenance Independent Total All
Support Services Support Physical Plant Operations Functions
52.20 61.70 62.70 7.00 1,453.70
78.80 25.90 188.50 184.70 703.00
13.60 6.80 25.20 8.10 139.90
1.40 2.30 6.30 34.40 81.70
146.00 96.70 282.70 234.20 2,378.30
2.70 146.20 7.90 2.30 40.60 441.40
0.10 78.30 28.70 172.40 247.10 594.00
3.70 61.90 .90 8.90 294.00 426.00
6.50 286.40 37.50 183.60 581.70 1,461.40
152!50 383.10 320.20 417.80 581.70 31832.10
51.10 60.90 64.00 7.50 1,402.60
81.60 25.70 186.50 177.90 702.40
16.80 7.10 24.00 5.30 141.60
1.70 2.70 7.40 40.70 95.60
151.20 96.40 281.90 231.40 2,342.20
3.20 136.20 7.20 2.00 41.70 478.90
.30 80.10 27.30 171.30 249.70 601.60
2.30 65.80 .90 8.50 251.00 382.80
5.80 282.10 35.40 181.80 542.40 1,463.30
151.00 318.50 317.30 413.20 542.40 3,805.50
49
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
ANNUAL COST STATISTICS
June 30, 2011 and 2010
(Unaudited)
Following is a computation of cost per full-time equivalent student:
2011
Total education and general expenses/expenditures from
current appropriated funds $ 80,044,225*
Expenses/expenditures from locally held University
Income Fund 132~864:858
Total expenses from current appropriated and
locally held funds 212,909,083
Full-time equivalent students 19,059
COST PER FULL-TIME EQUIV ALENT
STUDENT $ 11) 71
2010
$ 80,731,421 *
124 .. 250:508
204,981,929
19,022
$ lQ2176
* Amount represents total General Fund expenses less the amount for payments on behalf
of the University.
50
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
EMERGENCY PURCHASES
For the Years Ended June 30, 2011 and 2010
In Fiscal Year 2011, the University had two emergency purchases.
The Horton Field House north gym floor had water damage and required new flooring for $151,365.
Repair delays due to settling an insurance claim negatively impacted summer camp schedules and
jeopardized fall collegiate athletic schedules creating the need for the emergency purchase.
Illinois State University received a federal grant for conducting its renewable energy and water quality
research project. The research project required the use of a field irrigator, which became available on
spot market for $150,000. This was a quick purchase from the City of Lexington for $28,280 less than
what the City originally paid for the equipment in a competitive bid process and $30,244 less than the
current market value.
51
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
BOOKSTORE INFORMATION
For the Year Ended June 30, 2011
(Unaudited)
The University has a contractual arrangement for bookstore operations on campus. The University's
contract was for the period May 15, 2001 through June 30, 2006 and has been extended for the period
July 1,2006 through June 30, 2013. The contract with the bookstore requires commissions to be paid to
the University based on the following terms:
1. 9.0% of gross sales up to $3,000,000; plus
2. 10.0% of gross sales from $3,000,000 to $3,500,000; plus
3. 12.0% of gross sales over $3,500,000
Bookstore gross sales and University commissions were as follows:
Fiscal Year
2011
2010
2009
Bookstore sales
$ 2,606,266
$ 2,811,785
$ 2,938,367
Commission
$ 234,564
$ 253,061
$ 264,453
The contract with the bookstore gives the contractor exclusive rights to sell books on campus; however,
there is a competing bookstore near campus.
52
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
SERVICE EFFORTS AND ACCOMPLISHMENTS
For the Year Ended June 30,2011
(Unaudited)
Agency: Illinois State University (636)
Total Appropriated and Income Fund Budget
as Approved by ISU Board of Trustees
Faculty FTE (Full Time Equivalent) - Fall 2010
Lab School FTE - Fall 2010
AdminlProfessional FTE - Fa112010
Civil Service FTE - Fa112010
Fall 201 0 Enrollment
FY2011 Degrees
FY2011 Undergraduate Direct Instruction Costs
FY2011 Graduate Direct Instruction Costs
FY2011 Undergraduate credit hours
FY2011 Graduate credit hours
Major Function: Higher Education
$ 385,525,000
1,025.0
90.3
708.3
1,435.3
21,134
FY20 11 Undergraduate Direct Instruction Cost/Credit Hour
5,267
$40,022,880
$6,600,688
523,610.5
44,816
$77.63
FY2011 Graduate Direct Instruction Cost/Credit Hour $156.47
53
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
SCHEDULES OF FEDERAL EXPENDITURES, NON-FEDERAL EXPENSES, AND NEW
LOANS
Year Ended June 30,2011
Schedule A - Federal Financial Component
Total Federal expenditures reported on SEF A schedule
Total new loans made not included on SEF A schedule
Amount of Federal loan balances (not included on the
SEF A schedule and continued compliance required)
Other noncash federal award expenditures (not included
on SEF A schedule)
Total Schedule A
Schedule B - Total Financial Component
Total operating expenses (from financial statements)
Total non-operating expenses (from financial statements)
Total new loans made
Amount of Federal loan balances
Other noncash Federal award expenditures
Total Schedule B
Schedule C
Total Schedule A
Total Non-Federal Expenses
Total Schedule B
* Loan amounts are included on SEF A schedule
$143,936,711
435,056,685
$578,993.396
$143,925,941
10,770
$143,936,711
$455,896,018
4,419,723
108,352,602
10,314,283
10,770
$578,993,396
*
*
Percent
24.86 %
75.14 %
100.00 %
These schedules are used to determine the University's single audit costs in accordance with OMB
Circular A-133.
54
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
SUMMARY OF AGENCY OPERATIONS BY FUNCTION
OF PROGRAM ACTIVITY
STUDENT ENROLLMENT STATISTICS
Years Ended June 30, 2011 and 2010
(Unaudited)
Enrollment statistics for the past two academic years are as follows:
All students, including extension
All students, including extension
Number of Enrolled Students
at Beginning of School Year
2010 .. 2011 2009 .. 2010
21.134 21.184
Full-time Students Equivalent
2010-2011 2009-2010
19,059 19.022
55
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
UNDERGRADUATE TUITION AND FEE WAIVERS
For the Year Ended June 30, 2011
(Unaudited)
Tuition Waived Fees Waived
Total On Thousands of Dollars}
Number of Number of Value of Number of Value of
Reci(!ients* Recil!ients* Waivers Reci(!ients* Waivers
Mandatory Waivers
Teacher Special Education 335 335 $ 2,613.0 335 $ 720.3
General Assembly 118 118 932.8
Reserve Officer's Training Corps 42 42 295.8
Wards of Illinois Department of
Children and Family Services 30 28 139.2 30 29.2
Veterans Grants and Scholarships 347 347 2,299.2
Children of Employees 273 273 980.9 --..
(subtotal) 1,145 1.143 7,260.9 365 749.5
Discretionary Waivers
Faculty/Administrators (Non-Civil
Service) 9 9 14.1 8 3.2
Civil Service 73 73 177.1 69 42.0
Children of Deceased Employees 1 1 7.9 1 1.9
Athletic 373 373 2,076.0
Academic/Other Talent 579 579 1,933.8 23 32.8
Foreign Exchange Students 18 18 108.4
Out-of-State Students 3 3 19.6 1 2.0
Teaching Assistants
Retired University Employees 3 3 5.6 1 1.2
Cooperating Professionals --..
(subtotal) 1,059 1,059 4,342.5 103 83.1
Total 2.204 2.202 $1 1,603.4 468 $ 832.6
* Unduplicated. Totals may be less than the sum of the detail.
56
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
GRADUATE TUITION AND FEE WAIVERS
For the Year Ended June 30, 2011
(Unaudited)
Tuition Waived Fees Waived
Total an Thousands of Dollars}
Number of Number of Value of Number of Value of
Recil!ients* Recil!ients* Waivers Recil!ients* Waivers
Mandatory Waivers
Teacher Special Education 13 13 $ 63.1 13 $ 18.5
Reserve Officer's Training Corps 1 1 3.7
Veterans Grants & Scholarships 45 45 131.5 ---
(subtotal) 59 59 198.3 -11 18.5
Discretionary Waivers
Facultyl Administrators (Non-Civil
Service) 137 137 278.4 129 71.6
Civil Service 73 73 130.1 65 32.9
Cooperating Professionals 495 495 845.4
Athletic 8 8 36.2
Academic/Other Talent 507 507 782.8 60 31.9
Foreign Exchange Students 45 45 170.1
Graduate Assistants - Research 228 228 1,115.5
Graduate Assistants - Teaching 449 449 2,200.1
Graduate Assistants - Other 361 361 1,939.8
Retired University Employees 2 2.9 __1 .5
(subtotal) 2,305 2,305 7,501.3 255 136.9
Total 2.364 2.364 $ 1t622.6 268 $ 155.4
* Unduplicated. Totals may be less than the sum of the detail.
57
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
DEBT FINANCED BY UNIVERSITY RELATED ORGANIZATION
For the Year Ended June 30, 2011
A contract at June 30, 2011 consisted of a $3,300,000 installment contract-for-deed secured by the Alumni
Center building. The contract requires 119 monthly payments of $22,500 at 6.5% interest with a final
payment of the remaining outstanding balance.
Maturities and Interest Requirements on the contract-for-deed at June 30, 2011, are as follows:
Year Ending
June 30 Princi12al Interest Total
2012 69,085 200,915 270,000
2013 73,712 196,288 270,000
2014 78,649 191,351 270,000
2015 83,916 186,084 270,000
Sub-total 305,362 774,638 1,080,000
2016-2019 2,816,929 536,706 3,353,635
Sub-total $ 3,122,291 $ 1,311,344 $ 4,433,635
58
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
ACQUISITION OF REAL ESTATE BY UNIVERSITY OR URO
NOT FUNDED BY SEPARATE SPECIFIC APPROPRIATION
Year Ended June 30,2011
In Fiscal Year 2011, the University did not acquire real estate which was funded outside of a separate
specific appropriation.
59
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
STATEMENT OF NET ASSETS· LOCAL FUNDS
YEAR ENDED JUNE 30, 2011
SI12<I .... SlDdenl
Ind!ncl C..,dnuln; SaIeo I. Senice Procnuns Prop-ams FlddTrlpl.
ea.t Ed .... d.R&< or Ed.alioDIII &.SeniftI· &<Senicoo- Ford", Sl12<Iy lacome ParroU
S!!l!~rI PRhUcScmce Adivldes URivusily HigllSch.ol Atllvid .. Fnnd Fuud To.a1
ASSETS
C_Assots:
Cosh and cash equivalOll1$ S 3,41S,456 $ 1,%O,t!46 S 2,4n,021 $ 251,_ $ 1,066,431 $ ( 1,071,285) S 7,1&9,0"
C8$h and casb equivaleals - rcotricted 9,760,"5 9,760,SIS
Inve:mnems • R<o!ricted 4,431,054 4,431,054
AC<f1lOC! in_ re«Mble 7,878 165 68,119 76,162
Accrued in,.,.., ....:eivable • Res1rieIccI 19,197 19,897
ACCOUI!f3 rcccivohle, neI 258,923 12,469 402,549 3,342,040 4,OIS,981
Appropriations r«:eivabIe from Stale 35,047,150 3S,047,IS0
InVl:DlOrics 187,734 23,793 121,203 338.730
Prepaid expenses and d<po5ilS 27,954 33,924 9,361 174,421 1,001 114 909.590 1,157,065
DcI'cmd dJaIgts and obligalions 69,468 69,468
Totalturtem .ssdS 3S,812 3,896,202 1,106,469 3,176,194 252,607 1,067,245 52,510,541 62,105,097
NCI1CUm:nI Assots;
!nvestnu:m3 2.334,442 48,9S4 20,185,498 22,568,894
RcstricIed Invootmcnls 3.244,036 3,244,036
B<Xld issumcc COSIS 894,249 894,249
CapitalIISSeIS, net 1,093,961 839.235 5,061,247 1,221,451 11,495 9,105 212,870,256 221,106,150
O1bor noncurrem .... 15 1.800,000 1,800,000
Total noncutreIlf asocts 3,428.403 888,1&9 S,061~41 1.2.21.451 11.495 9,105 238,994,039 249,613,929
TotalllSSctS 3,464,235 4,7B4,39I 6,161,716 4,397,645 264,102 1,076,350 291,564,581 1I1.719,02~
LIABILITIES
Curnn' Liobilili .. ,
Accounts payable and I!CCIUCd li&bili!ics 111.411 311,440 127.184 673,387 23.317 IU,a50 6,809,165 8,240,354
ObIipIions payable 17,968 17,968
Assots hcId in.US1Ody lOr 0Ihm IlDd deposits 18,679 106,123 124.802
Defemd reveoue $60,033 2,217 378,990 170,000 3,201.846 4,913,146
Accnxd~ubscn= 3,369 19,124 2,016 95,194 312 l,l05 I,JIl,039 1.434,259
Cerlificatoo ofPlOl1icipGliOD 1,198,238 1.198,238
Total c""""" liobilili .. 114,180 909,276 131,471 1,253,694 23,629 9$5,055 12,540,856 15,928,167
NIHICUJTcII Liabai .... '
Acaued~a&s.n ... 21.751 151.569 16.608 784,n9 2,568 9,930 11,242,059 12,240,820
CenifiCl\11lS of pal'licipotion 34,1l4,OO8 34,334,008
TDIalll<>!l<;\lmlllliobilitics 2','57 151,569 16,603 784,329 2,568 9,930 45,576,067 46,574,827
TotoIli&bili!i .. 142,537 1,066,845 148,085 2,038,023 26,197 964,985 5B,II6,923 62.503,595
NETASSItTS
Inwstod in CIIj>iIIIl assets. net of rellIled dch. 1,093,961 839,235 5.061.247 1,221,451 11,495 9,105 181,098,525 195,315,019
Unrcotricted 2:1';'.'.737 2,878,311 958,3B4 1.138,171 226,410 102,260 46,349,139 Sl,880.4lZ
~ TotalaecUJetl S l,lll.69B 3,'1',546 6.0191631 2,359,622 S 231,905 1111365 233,4471664 S S 249.215.431
STATEOFILUNOIS
ILUNOIS STATE tINlVERSITY
STATEMENT OF REVENUES, EXPENSES, AND CHANCES IN NET ASSETS· LOCAL FUNDS
YEAR ENDED JUNE 30, lOll
Stutl<o, Stud.."
Indirect CanliAulDe S_4SO.-.ke Pro, ....... Proa ....... FlddTt1p&.
COlt Educallon&' or Ed_lional &.s.m.:... &.Som,..· Fordpl Study Iptctme-
Sn2E!!" I'1lblkSonice
OPERATING R.EVENUF.S
Actm&. Vnlvusl!I "!I!!S<bool A<lind .. Fund ToUl!
StudentlUili"" aruI fees, Ilot $ 4.660 $ 24.)27,472 2.501.729 140.108.300 S 161.142.161
Solco1 mid "",ices of eduoaliONIllOlMlics 2,566.187 4.197 2,570.384
0I!ler opemin~ '"""" .... 1,148,223 10.117,723 2,034 8.707.131 216,01] 41B.950 SOUBl Z1.711,n7
TolII operating __
1.748.223 10.122,383 2,568.221 33,034,703 120.210 2.920.679 140.SO'J.8S3 191.424.302
OPERATING EXPENSES
Ed~ end 0mctaI
lmInIdion 481.232 l.nS,222 411,908 2,B55.185 64,857.580 70.381.721
R=cb 593.515 42,584 118,303 661,414 504.254 1.920.1)0
Public scMeo 6,510,901 453,512 7,836 A46.576 7.418.R2S
A.c:ademic Suppo:I IB,61A 26,521 136.790 7.703.568 7,8BS,493
Smdmnsuvi ... 217,119 53.834 19.321,910 937,845 30.530,768
~suppcrt 238,057 142,261 12.345.014 12,875.338
Oponilioo mid main!emonce of plant 194,464 81,156 (49,152) 465,714 15,095._ 15,781,$91
Depm:ia:ion 102,511 48,641 261,589 191,663 3.015 1,069 11.618,276 12,226.840
Stzlfbenefi .. 32,898 95.668 7.415 41.835 2.112 6.698 (l20,}15) 66.91\
Smdmnllid 600 1.973 7,300 2,964,072 263 12.%5,880 15,946.083
Olher operating ""I"""Ii1o!a 2~37,3'2 10 900 2.338.292
T~III opetll!ins_ 1,230,135 10,"1,444 2,164,'33 3).405.898 661J.OI 2.86].815 126.354.027 117,438.003
~i:I<omo(loSJ) 517,488 (29.0611 lI96,662) (l7l.I?S) (446,991) S6.864 14.455.856 13.986.299
NONOPERATING R£VENUIS (EXl'ENSES)
paym..". on bcNIf ofll •• lInivelJity· FOWldalion 1.205.883 1,205,883
Lobo"",,!), School. 545.974 545,914
Oifts Mel dOMIions 652 198 319.917 320,761
InvcstmenllllCCmo. net of investment _ 46,401 9,475 44.749 938 1.165.456 1,261,025
Int ...... exponso (389.)30) (339,330)
Other nonoperating revalues 142,083 28,408 483.087 93,1)7 741,3U
Net nonoperating revenues 46,407 152,210 28,606 527,836 546,912 2.395,663 3,691,634
'-me (Loss) bof.no copilll items 563.895 123,149 !168.0S6l 156.641 99,921 S6,864 16.851.'19 11,683,933
Capitol opproprilllions 709.628 709,628
Capital gt1IlItO aDd gifts 8711.596 870,596
Total capilli ...... U80.224 1.580.224
hl=os. (dccra:tc) in net ...... 56J.895 123.149 (168.056) 156.641 99,921 56,864 18.431.743 19,264.157
NET ASSETS
Ne, ....... bql2lalnl of year 2,757,803 3.594,397 6,IJ1.687 2~02.981 131,984 54.501 215.015,921 229,951,214
N.t ...... • ... elor,..... 3,321,698 S 3,711,546 6,019,631 S 2,359.622 231,905 S 111,365 233,4411664 249,215,431
.0..).
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
STATEMENT OF NET ASSETS - SERVICE DEPARTMENTS
June 30, 2011
ASSETS
Current Assets:
Cash and cash equivalents
Accounts receivable, net
Inventories
Prepaid expenses and deposits
Total current assets
Noncurrent Assets:
Capital assets, net
Total assets
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities
Deferred revenue
Accrued compensated absences
Total current liabilities
Noncurrent Liabilities:
Accrued compensated absences
Total liabilities
NET ASSETS
Invested in capital assets,.. net of related debt
Unrestricted
Total net assets
$
Service
Departments
7,335,694
74,371
1,707,312
179,827
9,297,204
3,398,950
12,696,154
982,674
73,045
68,958
1,124,677
1,011,868
2,136,545
3,398,950
7,160,659
$ 10,559,609 =========
62
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS­SERVICE
DEPARTMENTS
OPERATING REVENUES
Other operating revenues
Total operating revenues
OPERATING EXPENSES
Educational and General
Instruction
Institutional support
YEAR ENDED JUNE 30,2011
Operation and maintenance of plant
Depreciation
Staff benefits
Total operating expenses
Operating income
NONOPERATING REVENUES (EXPENSES)
Investment income, net of investment expenses
Other nonoperating revenues
Other nonoperating expenses
Total nonoperating revenues (expenses)
Increase in net assets
NET ASSETS
Net assets - beginning of year
Net assets - end of year
Service
Departments
$ 16,984,553
-----.;..-~-
16,984,553
863,530
7,664,433
6,957,078
947,549
48,121
16,480,711
503,842
613,976
5,075
(6,291)
612,760
1,116,602
9,443,007
$ 10,559,609 ==========
63
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
STA TEMENT OF NET ASSETS - AUXILIARY FACILITIES
JUNE 30, 2011
Auxiliary
Student Facilities
Housing Activities Parkin~ Total
ASSETS
Current Assets:
Cash and cash equivalents $ (460,494) $ 114,853 $ (667,084) $ (1,012,725)
Cash and cash equivalents. restricted 1,300,217 1,300,217
Investments 14,035,940 7,576,611 21,612,551
Accrued interest receivable 309,517 63,185 3,130 375,832
Accounts receivable, net 824,694 282,465 74,697 1,181,856
Inventories 718,380 185,731 904,111
Prepaid expenses and deposits 10,979 12,824 1,964,274 1,988,077
Deferred charges and obligations 17,150 68,336 12,775 98,261
Total current assets 15,456,166 9,604,222 1,387,792 26,448,180
Noncurrent Assets:
Investments 59,094,048 1,112,898 927,639 61,134,585
Bond issuance costs 233,213 959,646 53,967 1,246,826
Capital assets, net 90,441,578 81,376,545 21,924,037 193,742,160
Total noncurrent assets 149,768,839 83,449,089 22,905,643 256,123,571
Total assets 165,225,005 93,053,311 24,293,435 282,571,751
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities 4,481,403 966,650 159,507 5,607,560
Assets held in custody for others and deposits 1,888,474 41,520 1,929,994
Deferred revenue 121,043 266,917 154,064 542,024
Accrued compensated absences 136,170 24,392 10,613 171,175
Revenue bonds payable 414,984 3,809,865 1,910,135 6,134,984
Total current liabilities 7,042,074 5,109,344 2,234,319 14,385,737
Noncurrent Liabilities:
Assets held in custody for others and deposits 215,484 215,484
Accrued compensated absences 1,441,109 258,141 112,317 1,811,567
Revenue bonds payable 35,563,663 44,941,774 11,192,126 91,697,563
Total noncurrent liabilities 37,220,256 45,199,915 11,304,443 93,724,614
Total liabilities 44,262,330 50,309,259 13,538,762 108,110,351
NET ASSETS
Invested in capital assets, net of related debt 54,462,931 33,925,123 8,821,776 97,209,830
Unrestricted 66,499,744 8,818,929 1,932,897 77,251,570
Total net assets $ 120z962l675 $ 4217441052 $ 10a754z673 $ 174A612400
64
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - AUXILIARY FACILITIES
YEAR ENDED JUNE 30. lOll
Student
HousinG Activities Parking Total
OPERATING REVENUES
Auxiliary enterprises:
Auxiliary facilities $ 62,554,289 $ 16,427,264 $ 4,036,514 $ 83,018,067
Total operating revenues 62,554,289 16,427,264 4,036,514 83,018,067
OPERATING EXPENSES
Educational and General
Depreciation 2,413,018 3,060,796 601,128 6,074,942
Auxiliary facilities:
Student housing, activity facilities, and parking 46,067,310 9,841,232 1,2181260 57,126,802
Total operating expenses 48,480,328 12,902,028 1,819,388 63,201,744
Operating income 14,073,961 3,525,236 2,217,126 19,816,323
NONOPERATING REVENUES (EXPENSES)
Investment income, net of investment expenses (532,700) 155,838 25,834 (351,028)
Interest expense (l,629,300) (1,719,784) (681,309) (4,030,393)
Other nonoperating revenues 224,497 15,009 200 239,706
Net nonoperating expenses (1,937,503) ( 1,548,937) (655,275) (4,141,715)
Increase in net assets 12,136,458 1,976,299 1,561,851 15,674,608
NET ASSETS
Net assets - beginning of year 108,826,217 41,108,997 9,232,073 159,167,287
Prior period adjustments (341,244) (39,251) (380,495)
Net assets - eod of year $ 120,962,675 $ 42,744,052 $ 10,754,673 $ 174,461,400
65
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
CALCULATION SHEET FOR INDIRECT COST CARRYFORWARD
June 30, 2011
1. Cash and Equivalents Balance
Add:
Cash
Cash Equivalents ................................................ .
Bank Deposits ...................................... .
Marketable Securities ............................. .
Certificates of Deposit ............................. .
Repurchase Agreements ........................ ..
Other cash equivalent items ...................... .
Interfund receivables .................................................. .
2. Allocated Reimbursements
Enter the total indirect cost reimbursements allocated for
expenditure for the fiscal year completed:
$5,853,324; enter 30% of this amount .......................... ..
3. Unallocated Reimbursements
Enter the lesser of the actual unallocated indirect cost
reimbursements for the year completed OR 10% of
total indirect cost allocations for the year completed .............. ,
4. Encumbrances and Current Liabilities
Paid in the Lapse Period
Enter the amount of:
Current Liabilities .................................................. .
Encumbrances ..................................................... .
Total .......................................................................... .
5.
2,293,515
1,755,997
114,780
114,780
2,293,5151
Indirect Cost Carry-forward
a. Enter the total of items 2, 3 and 4 .. ............................................................... J... .2..,._ 04_5.,. 5..9 _9. .1.
b. Subtract from item 1 ................................................................................. --_24. .7..,.9 _16-
If a positive number results, enter here and remit
for deposit in the Income Fund. 247,9161
66
STATE OF ILLINOIS
ILLINOIS STATE UNIVERSITY
CURRENT UNRESTRICTED LOCAL FUNDS
CONTINUING EDUCATION AND PUBLIC SERVICES
CALCULATION SHEET FOR CURRENT EXCESS FUNDS
June 30, 2011
1. Current Available Funds
Add:
Cash ................................................................................ .
Cash Equivalents ............................................................... ..
Bank Deposits ................................................. .
Marketable Securities ........................................ .
Certificates of Deposit ....................................... ..
Repurchase Agreements ...............