Northeastern Illinois University. Compliance Examination for the Year Ended June 30, 2011

              STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
COMPLIANCE EXAMINATION
(In Accordance with the Single Audit Act
and OMB Circular A-133)
For the Year Ended June 30, 2011
Performed as Special Assistant Auditors for
the Auditor General, State of Illinois
TABLE OF CONTENTS
PAGE
Agency Officials .............................................................................................................................1
Management Assertion Letter ......................................................................................................2
Compliance Report
Summary ............................................................................................................................... 3-5
Accountants’ Reports
Independent Accountants’ Report on State Compliance, on Internal Control
over Compliance, and on Supplementary Information for State Compliance
Purposes ..................................................................................................................... 6-8
Independent Auditor's 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 ......... 9-10
Independent Auditor's 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-133 ............................................... 11-12
Schedule of Findings and Questioned Costs
Summary of Auditor’s Results...........................................................................................13
Current Finding - Government Auditing Standards ..................................................... 14-18
Current Findings - Federal Compliance ....................................................................... 19-28
Current Findings - State Compliance ........................................................................... 29-30
Prior Findings Not Repeated ........................................................................................ 31-32
Financial Statement Report
The University’s financial statement report for the year ended June 30, 2011, which
includes the report of independent auditors, management’s discussion and analysis,
basic financial statements and notes, supplementary information, and the
independent auditors’ 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.
Supplementary Information for State Compliance Purposes
Summary ............................................................................................................................ 33-34
Fiscal Schedules and Analysis
Schedule of Expenditures of Federal Awards .............................................................. 35-37
Notes to Schedule of Expenditures of Federal Awards .....................................................38
Schedule of Net Appropriations, Expenditures, Lapsed Balances and Balances
Reappropriated .............................................................................................................39
Comparative Schedule of Net Appropriations, Expenditures, Lapsed Balances
and Balances Reappropriated .......................................................................................40
Comparative Schedule of Income Fund Revenues and Expenditures ...............................41
Schedule of Changes in Capital Assets ..............................................................................42
Supplementary Information for State Compliance Purposes (continued)
Fiscal Schedules and Analysis (continued)
Analysis of Significant Variations in Expenses .................................................................43
Analysis of Significant Variations in Revenues ................................................................44
Analysis of Significant Lapse Period Spending ................................................................45
Analysis of Significant Account Balances ................................................................... 46-49
Summary of Indirect Cost Reimbursement Funds ....................................................... 50-51
Analysis of Operations
University Functions and Planning Program ............................................................... 52-53
University Enrollment and Employee Information (Unaudited) ................................. 54-55
Schedules of Federal Expenditures, Nonfederal Expenses and New Loans ......................56
Service Efforts and Accomplishments (Unaudited) .................................................... 57-60
Schedule of Tuition and Fee Waivers (Unaudited) ............................................................61
University Bookstore Information (Unaudited) .................................................................62
Special Data Requirements for Audits of Universities
University Reporting in Accordance with University Guidelines ...................................... 63-64
Schedule of Indirect Cost Funds to be Deposited into the University Income
Fund as Required by the 1982 University Guidelines (Amended 1997) .....................65
Other Entities and Auxiliary Enterprises - Calculation Sheet for Current
Excess Funds ................................................................................................................66
Description of Accounting Entities ....................................................................................67
Other Entities and Auxiliary Enterprises - Balance Sheets ..............................................68
Other Entities and Auxiliary Enterprises - Schedule of Changes in Fund
Balances - Current Funds .............................................................................................69
Summary of Foundation Payments to the University ........................................................70
Summary of Alumni Association Payments to the University ..........................................71
Related Report Published Under a Separate Cover
Northeastern Illinois University
Financial Audit for the Year Ended June 30, 2011
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
COMPLIANCE EXAMINATION
(In Accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended June 30, 2011
1
Agency Officials
President Dr. Sharon Hahs
Vice President for Finance and Administration Mr. Mark Wilcockson, CPA
Associate Vice President - Financial and Administrative Affairs Mr. David Jonaitis
Director of Financial Affairs/Controller Ms. Peggy Ho
Director of Internal Audit Mr. Ronald Cierny, CPA
Executive Director - Office of University Budgets Dr. Helen Ang
Agency offices are located at:
5500 North St. Louis Avenue
Chicago, Illinois 60625
Northeastern
Illinois
Universi!Y _______________________ _
SSOO :--lORTif ST LOl I ~ A\ tM E
CHICAGO. [LU'IOI~ 606254699
..,.., ~I 112-'> 100
February 10,2012
CliftonLarsonAllen LLP
1301 W. 22nd Street, Suite 1100
Oak Brook, IL 60523
Ladies and Gentlemen:
We are responsible for the identification of, and compliance with, all aspects of laws, regulations, contracts,
or grant agreements that could have a material effect on the operations of the University. We are responsible
for, and we have established and maintained an effective system of, intemal controls over compliance
requirements. We have performed an evaluation of the University's compliance with the following assertions
during the one-year period ended June 30, 2011. Based on this evaluation, we assert that during the year
ended June 30, 2011, the University has materially complied with the assertions below.
A . . The 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 otherwise authorized by law.
B. The 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 University has complied, in all material respects, with applicable laws and regulations, including
the State unifom1 accounting system, in its financial and fiscal operations.
D. State revenues and receipts collected by the 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.
E. Money or negotiable securities or similar assets handled by the University on behalf of the State
or held in trust by the University have been properly and legally administered, and the accounting
and recordkeeping relating thereto is proper, accurate and in accordance with law.
Yours very truly,
Northeastem Illinois University
Sharon K. Hahs
President
\_M~J Mark Wilco&son
VP for Finance and Administration
e-(' 1'-t--ctfli:;
eggy Ho
Controller
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
COMPLIANCE REPORT
For the Year Ended June 30, 2011
3
Summary
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: Current Report Prior Report
Findings 9 8
Repeated Findings 3 3
Prior Recommendations Implemented or Not Repeated 5 6
Details of findings are presented in the separately tabbed report section of this report.
Schedule of Findings and Questioned Costs
Item
No. Page(s) Description Finding Type
FINDINGS (GOVERNMENT AUDITING
STANDARDS)
11-1
11-2
14
17
Failure to Identify and Refund Title IV Aid in a
Timely Manner
Generally Accepted Accounting Principles (GAAP)
Not Properly Applied to the State Universities Risk
Management Association (SURMA) Asset
Significant Deficiency
and Federal
Noncompliance
Significant Deficiency
FINDINGS AND QUESTIONED COSTS
(FEDERAL COMPLIANCE)
11-3 19 Awarding of Student Financial Aid Significant Deficiency
and Noncompliance
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
COMPLIANCE REPORT
For the Year Ended June 30, 2011
4
Item
No. Page(s) Description Finding Type
11-4
11-5
11-6
11-7
11-8
11-9
21
23
25
27
29
30
Perkins Loan Processing Error
Performance of Financial Aid Verification Procedures
Direct Loan Cash Summary Reconciliation
Inaccurate Fiscal Operations Report and Application
to Participate (FISAP) Reporting
FINDINGS (STATE COMPLIANCE)
Generally Accepted Accounting Principles (GAAP)
Not Properly Applied to Accrued Interest
Timesheets Not Required
Significant Deficiency
and Noncompliance
Significant Deficiency
and Noncompliance
Significant Deficiency
and Noncompliance
Significant Deficiency
and Noncompliance
Significant Deficiency
and Noncompliance
Significant Deficiency
and Noncompliance
The following finding, which is reported as a current finding relating to Government Auditing
Standards, also meets the reporting requirement for Federal Compliance.
11-1 14 Failure to Identify and Refund Title IV Aid in a
Timely Manner
Significant Deficiency
and Federal
Noncompliance
Also, the following findings, which are reported as a current findings relating to Government
Auditing Standards, also meet the reporting requirement for State Compliance.
11-1
11-2
14
17
Failure to Identify and Refund Title IV Aid in a
Timely Manner
Generally Accepted Accounting Principles (GAAP)
Not Properly Applied to the State Universities Risk
Management Association (SURMA) Asset
Significant Deficiency
and Noncompliance
Significant Deficiency
and Noncompliance
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
COMPLIANCE REPORT
For the Year Ended June 30, 2011
5
PRIOR FINDINGS NOT REPEATED
Item
No. Page Description
A
B
31
31
Generally Accepted Accounting Principles (GAAP)
not properly applied to grant revenue recognition
TEACH Grants were not properly awarded
C 31 Inadequate controls over payroll processing of
employees paid from grant funds
D 31 Noncompliance with required contracting procedures
E 32 Northeastern Illinois University Alumni Association
Exit Conference
The University waived having an exit conference in correspondence dated January 30, 2012, from
the University’s Vice President for Finance and Administration, Mark Wilcockson.
The responses to the recommendations were provided by Mark Wilcockson, in correspondence
dated February 7, 2012.
CliftonLarsonAllen LLP
1301 West 22nd Street, Suite 1100
Oak Brook, IL 60523
630-573-8600 | fax 630-573-0798
www.cliftonlarsonallen.com
6
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 of the State of Illinois
and
Board of Trustees
Northeastern Illinois University
Compliance
As special assistant auditors for the Auditor General, we have examined Northeastern Illinois
University’s (the “University”) compliance with the requirements listed below, as more fully
described in the Audit Guide for Financial Audits and Compliance Attestation Engagements of
Illinois State Agencies (the “Audit Guide”) as adopted by the Auditor General, during the year
ended June 30, 2011. The management of the University is responsible for compliance with
these requirements. Our responsibility is to express an opinion on the University’s compliance
based on our examination.
A. The 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 otherwise
authorized by law.
B. The 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 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 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.
E. Money or negotiable securities or similar assets handled by the University on behalf of the
State or held in trust by the University 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 (the “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 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 determination on the University’s compliance with
7
specified requirements.
In our opinion, the University complied, in all material respects, with the compliance
requirements listed in the first paragraph of this report during the year ended June 30, 2011.
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 are described in the
accompanying Schedule of Findings and Questioned Costs as items 11-1, 11-2, 11-8 and 11-9.
Internal Control
The management of the 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 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 internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of the University’s internal control over compliance.
A deficiency in an entity’s 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 the
requirements listed in the first paragraph of this report on a timely basis. A material weakness
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
requirement listed in the first paragraph of this report 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. However, we identified certain
deficiencies in internal control over compliance that we considered to be significant deficiencies
as described in the accompanying Schedule of Findings and Questioned Costs as items 11-1, 11-
2, 11-8 and 11-9. 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.
As required by the Audit Guide, immaterial findings excluded from this report have been
reported in a separate letter to your office.
The 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
University’s responses and, accordingly, we express no opinion on the responses.
8
Supplementary 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 University and its aggregate discretely presented component
units as of and for the year ended June 30, 2011, which collectively comprise the University’s
basic financial statements, and have issued our report thereon dated February 10, 2012. Our
report was modified to include a reference to other auditors. Other auditors audited the financial
statements of the University’s discretely presented component units, as described in our report on
the University’s financial statements. 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 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 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 for the year ended
June 30, 2011, taken as a whole.
We have also previously audited, in accordance with auditing standards generally accepted in the
United States, the University’s basic financial statements for the year ended June 30, 2010. In our
report, dated January 11, 2011, on the basic financial statements, we expressed an unqualified
opinion on those financial statements. In our 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.
The University’s basic financial statements for the year ended June 30, 2009, were audited, in
accordance with auditing standards generally accepted in the United States, by other auditors. In
their report dated December 15, 2009, they expressed an unqualified opinion on those financial
statements. In their opinion, the 2009 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, 2009, taken as a whole.
This report is intended solely for the information and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, Board of Trustees, 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.
a
CliftonLarsonAllen LLP
February 10, 2012
CliftonLarsonAllen LLP
1301 West 22nd Street, Suite 1100
Oak Brook, IL 60523
630-573-8600 | fax 630-573-0798
www.cliftonlarsonallen.com
9
Independent Auditor's 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 of the State of Illinois
and
Board of Trustees
Northeastern Illinois University
As special assistant auditors for the Auditor General, we have audited the financial statements of
the business-type activities of the Northeastern Illinois University (the “University”) and its
aggregate discretely presented component units, collectively a component unit of the State of
Illinois, as of and for the year ended June 30, 2011 which collectively comprise the University’s
basic financial statements, and have issued our report thereon dated February 10, 2012. Our
report was modified to include a reference to 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 units, as described in our report on the
University’s financial statements. This report does not include the results of the other auditors’
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 University is responsible for establishing and maintaining effective internal
control over financial reporting. In planning and performing our audit, we considered the
University’s internal control over financial reporting as a basis for designing our auditing
procedures for the purpose of expressing our opinion on the financial statements and not for the
purpose of expressing an opinion on the effectiveness of the University’s internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
University’s internal control over financial reporting.
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 a 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.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies in
the internal control over financial reporting that might be deficiencies, significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses, as defined above. However, we identified
deficiencies in internal control over financial reporting, described in findings 11-1 and 11-2 in
the accompanying Schedule of Findings and Questioned Costs that we consider to be significant
10
deficiencies in internal control over financial reporting. A significant deficiency is a deficiency,
or a 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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the 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.
The University's responses to the findings identified in our audit are described in the
accompanying Schedule of Findings and Questioned Costs. We did not audit the University's
responses and, accordingly, we express no opinion on them.
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, 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.
a
CliftonLarsonAllen LLP
February 10, 2012
CliftonLarsonAllen LLP
1301 West 22nd Street, Suite 1100
Oak Brook, IL 60523
630-573-8600 | fax 630-573-0798
www.cliftonlarsonallen.com
11
Independent Auditor’s 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-133
Honorable William G. Holland
Auditor General of the State of Illinois
and
Board of Trustees
Northeastern Illinois University
Compliance
We have audited Northeastern Illinois University’s (the “University”) compliance with the types
of compliance requirements described in the U.S. Office of Management and Budget (OMB)
Circular A-133, Compliance Supplement, that could have a direct and material effect on each of
the University’s major federal programs for the year ended June 30, 2011. The University’s
major federal programs are identified in the summary of auditor’s results section of the
accompanying Schedule of Findings 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 University’s management. Our responsibility is to express an opinion on the
University’s compliance based on our audit.
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-133, Audits of States, Local Governments, and Non-Profit Organizations.
Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance, with the types of compliance 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 University’s
compliance with those requirements and performing 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 University’s compliance with
those requirements.
In our opinion, the 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. However, the results of our auditing
procedures disclosed instances of noncompliance with those requirements, which are required to
be reported in accordance with OMB Circular A-133 and which are described in the
accompanying Schedule of Findings and Questioned Costs as items 11-1, 11-3, 11-4, 11-5, 11-6
and 11-7.
Internal Control over Compliance
The management of the 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
University’s internal control over compliance with requirements that could have a direct and
material effect on a major federal program to determine our auditing procedures for the purpose
of expressing our opinion on compliance and to test and report on internal control over
12
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 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 control 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. However, we identified certain
deficiencies in internal control over compliance that we consider to be significant deficiencies as
described in the accompanying Schedule of Findings and Questioned Costs as items 11-1, 11-3,
11-4, 11-5, 11-6 and 11-7. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Schedule of Expenditures of Federal Awards
We have audited the basic financial statements of the business-type activities and the aggregate
discretely presented component units of the University, as of and for the year ended June 30,
2011, and have issued our report thereon dated February 10, 2012. Our report was modified to
include a reference to other auditors. Other auditors audited the financial statements of the
University’s discretely presented component units, as described in our report on the University’s
financial statements. Our audit was performed for the purpose of forming an opinion on the
financial statements that collectively comprise the 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
financial 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.
The University’s responses to the findings identified in our audit are described in the
accompanying Schedule of Findings and Questioned Costs. We did not audit the University’s
responses and, accordingly, we express no opinion on their responses.
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, 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.
a
CliftonLarsonAllen LLP
February 10, 2012
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
13
SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of auditor’s report issued: Unqualified opinion
Internal control over financial reporting:
• Material weakness(es) identified? yes X no
• Significant deficiency(s) identified that are not considered
to be material weaknesses? X yes none
reported
Noncompliance material to financial statements noted? Yes X no
Federal Awards
Internal control over major programs:
• Material weakness(es) identified? yes X no
• Significant deficiency(s) identified that are not considered
to be material weaknesses? X yes none
reported
Type of auditor's report issued on compliance for major programs:
Unqualified opinion
Any audit findings disclosed that are required to be reported in accordance with Section 510(a) of
OMB Circular A-133? X yes No
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
Student Financial Assistance Cluster
84.334 Gaining Early Awareness and Readiness for Undergraduate
Programs
TRIO Cluster
84.287 Twenty-First Century Community Learning Centers
84.031 Higher Education Institutional Aid
Dollar threshold used to distinguish between type A and type B programs: $448,993
Auditee qualified as low-risk auditee? yes X No
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
14
CURRENT FINDING - GOVERNMENT AUDITING STANDARDS
Finding 11-1 - Failure to Identify and Refund Title IV Aid in a Timely Manner
Northeastern Illinois University (the “University”) did not properly identify all students who
withdrew from the University. The University also did not determine or return the unearned
portion of Title IV aid provided to all students who withdrew from the University resulting in
inaccuracies in the amounts reported in their financial statements and noncompliance with
federal regulations.
 In our testing of unofficial withdrawal determination, we tested a sample of 40 students
receiving Title IV aid and who failed to receive a passing grade in any of their classes.
We noted that seven students lacked documentation that they completed the period and,
therefore, should have been considered to have unofficially withdrawn from the
University.
In response to the results of this testing, University personnel performed unofficial
withdrawal determination procedures on the remaining students receiving Title IV aid
and who failed to receive a passing grade in any of their classes. These procedures
resulted in the identification of 248 students that received Title IV aid and should have
been considered to have unofficially withdrawn from the University.
ED requires (Dear Colleague Letter DCL GEN 04-03 Revised) that an institution must
have a procedure for determining whether a Title IV aid recipient who began attendance
during a period completed the period or should be treated as a withdrawal. If a student
who began attendance and has not officially withdrawn fails to earn a passing grade in at
least one course offered over an entire period, the institution must assume, for Title IV
purposes, that the student has unofficially withdrawn, unless the institution can document
that the student completed the period.
Furthermore, Federal Regulations require that when a recipient of Title IV grant or loan
assistance withdraws from an institution during a payment period or period of enrollment
in which the recipient began attendance, the institution must determine the amount of
Title IV grant or loan assistance that the student earned as of the student's withdrawal
date and refund the unearned portion to ED (34 CFR 668.22).
The withdrawal date for a student who ceases attendance without providing notice at an
institution that is not required to take attendance is the mid-point of the payment period
(34 CFR 668.22(c)). Consequently, 50% of Title IV grant or loan assistance provided to
the student is considered unearned and should be refunded to ED.
However, in the case of a student who did not begin attendance during the period of
enrollment, or if the institution is unable to document the student’s attendance at any
class during the period, all Title IV grant or loan assistance provided to the student is
considered unearned and should be refunded to ED (34 CFR 668.21(a)).
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
15
CURRENT FINDING - GOVERNMENT AUDITING STANDARDS (continued)
Finding 11-1 - Failure to Identify and Refund Title IV Aid in a Timely Manner (continued)
Based on our testing of the University’s calculation of the refundable Title IV grant and
loan assistance for the 248 students identified above, we noted that the University lacked
documentation of attendance in any class for 144 of these students.
Ultimately, in response to our testing and inquiries, the University identified $529,154 in
unearned Title IV aid which should have been refunded to ED and for which the
University has recourse against the students for payment.
Since the liability to ED had not been identified timely, the University’s financial
statements understated current liabilities for refundable grant revenues by $529,154 and
also understated student receivables, net of an allowance for doubtful accounts, by
$264,577. A proposed adjustment was not recorded by the University.
Generally accepted accounting principles require the proper identification, valuation and
reporting of assets and liabilities. Additionally, the Fiscal Control and Internal Auditing
Act (ILCS 30 10/3001), requires the University to establish and maintain a system, or
systems, of internal fiscal and administrative controls, which shall provide assurance that
revenues, expenditures, and transfers of assets, resources or funds applicable to
operations are properly accounted for to permit the preparation of accounts and reliable
financial reports.
 We also noted that the University did not make a timely determination of the withdrawal
date for students who withdrew from the Fall 2010 semester without providing
notification to the University (37 days after the end of the enrollment period).
Federal Regulations require an institution that is not required to take attendance to
determine the withdrawal date for a student who withdraws without providing
notification to the institution no later than 30 days after the end of the earlier of (i) the
payment period of enrollment; (ii) academic year in which the student withdrew; or (iii)
educational program from which the student withdrew (34 CFR 668.22 (j)(2)).
 In addition to the testing described above, we tested the calculation of unearned Title IV
funds for 20 students who officially withdrew from the University. We noted that one
student’s refund was made for an incorrect amount although the refund calculation was
prepared correctly resulting in a $340 under-refund to ED.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
16
CURRENT FINDING - GOVERNMENT AUDITING STANDARDS (continued)
Finding 11-1 - Failure to Identify and Refund Title IV Aid in a Timely Manner (continued)
OMB Circular A-110 requires nonfederal entities receiving federal awards establish and
maintain internal controls designed to reasonably ensure compliance with federal laws,
regulations, and program compliance requirements. Effective internal controls should include
procedures to ensure that the amount of Title IV aid earned by students is calculated accurately
and that unearned portions are returned in a timely manner.
University officials indicated that the conditions noted in this finding were the result of an
employee’s failure to perform their assigned function.
Failure to perform accurate and complete refund calculations and timely remittances of unearned
Title IV funds resulted in inaccurate financial reporting and may jeopardize future federal
funding. (Finding Code 11-1, 10-5).
Recommendation
We recommend that the University implement procedures to ensure that refunds are processed
timely and accurately in order to facilitate accurate financial reporting and to be in compliance
with federal regulations.
University’s Response
The University concurs with this recommendation.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
17
CURRENT FINDING - GOVERNMENT AUDITING STANDARDS (continued)
Finding 11-2 - Generally Accepted Accounting Principles (GAAP) Not Properly Applied to the
State Universities Risk Management Association (SURMA) Asset
The University did not properly account for its participation in the State Universities Risk
Management Association (SURMA) in accordance with accounting principles generally
accepted in the United States of America (GAAP).
The University has been a member of SURMA since its inception on February 1, 1996. SURMA
was created as a successor to the Board of Governors’ Self-Insurance Liability Program.
SURMA was initially funded by the surplus of the Board of Governors’ Self-Insurance Liability
Program upon its termination (treated as capital contributions of the original participants), as
well as additional contributions which were assessed to the members. The SURMA members
are Chicago State University, Eastern Illinois University, Governors State University,
Northeastern Illinois University, and Western Illinois University. Each university has an
employee appointed as a member to the SURMA Board, which meets on a quarterly basis.
While all past payments made by the University to SURMA have been recorded as insurance
expense, the capital contributions to SURMA have not been recorded as an asset on the books of
the University. The University’s share of the excess capital contributions to SURMA was
$406,284 and $386,166 as of June 30, 2011 and June 30, 2010, respectively. SURMA’s bylaws
state that in the event of termination, if there are surplus funds available, such surplus shall be
distributed to the then existing members in the same proportion that each existing member’s
contributions over the immediately previous five years were in proportion to the contributions of
all members. Similar provisions also apply to members who elect to withdraw (if approved by
the remaining participants) prior to the termination of SURMA. An adjusting entry was
proposed to the University to correct this error, which the University did not record.
Further, we noted the University did not adequately monitor SURMA to ensure SURMA
underwent an annual audit and biennial actuarial valuation to provide assurance as to the
accuracy of financial information required to be reported by the University.
Governmental Accounting Standards Board (GASB) Interpretation No. 4 - Accounting and
Financial Reporting for Capitalization Contributions to Public Entity Risk Pools was issued in
February 1996 with an effective date of periods beginning after June 15, 1996. It states, “A
capitalization contribution to a public entity risk pool with transfer or pooling of risk should be
reported as a deposit if it is probable that the contribution will be returned to the entity upon
either the dissolution of or approved withdrawal from the pool. An entity’s determination that a
return of the contribution is probable should be based on the provisions of the pooling agreement
and an evaluation of the pool’s financial capacity to return the contribution.”
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
18
CURRENT FINDING - GOVERNMENT AUDITING STANDARDS (continued)
Finding 11-2 - Generally Accepted Accounting Principles (GAAP) Not Properly Applied to the
State Universities Risk Management Association (SURMA) Asset (continued)
Further, the Fiscal Control and Internal Auditing Act (30 ILCS 10/3001) requires the University
to establish and maintain a system of fiscal and administrative controls to ensure resources are
properly recorded and accounted for to permit the preparation of accounts, reliable financial and
statistical reports, and to maintain accountability over the State's resources.
University officials indicated that the SURMA by-laws were adopted cooperatively by the five
universities formerly under the Board of Governors and SURMA. The member universities have
been operating under those by-laws since 1995, prior to the issuance of GASB Interpretation
No. 4. The condition found is the result of SURMA's failure to review and revise the by-laws
and the member institutions’ interpretation that the return of the funds is not probable and hence
the failure to record the related accounting entries, as pointed out in the new audit finding this
year.
Failure to adequately monitor SURMA’s activities and properly account for the University’s
participation in SURMA resulted in an understatement of assets on the University’s financial
statements. (Finding Code 11-2).
Recommendation
We recommend that the University implement controls to monitor the activities of SURMA and
properly account for its participation in SURMA in accordance with GAAP.
University’s Response
The University concurs with this recommendation.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
19
CURRENT FINDINGS - FEDERAL COMPLIANCE
Federal Agency: U.S. Department of Education
Program Name CFDA#
Program
Expenditures
Student Financial Aid Cluster Cluster $ 47,505,886
Questioned Costs: None
Finding 11-3 - Awarding of Student Financial Aid
The University did not have adequate controls in place over the awarding of student financial aid.
Through the testing of 83 students we noted that the budget used to calculate the student's cost of
attendance was incorrect for 9 students. These errors were attributable to the following:
 For four students tested, an incorrect number of credit hours were used to calculate these
students’ budgeted cost of attendance.
 For one student tested, we noted that three months were used to calculate the summer budgeted
cost of attendance instead of the approved two months.
 For four students tested, we noted that an incorrect tuition rate was used to calculate the
students’ cost of attendance.
For eight of these students, the error in the control process did not result in an over award as the
students were awarded less than his/her financial need. In one instance, a student was offered
financial aid which exceeded his/her financial need, however, since some awards had not been
disbursed, the student did not actually receive an over award.
According to 34 CFR 675.9, 676.9, 674.9, 682.201, 685.200; 42 CFR Sections 57.206 and
57.306(b); 42 USC 5293a(d)(2), a student must have financial need to receive aid, and total
awards may not exceed need.
OMB Circular A-110, Uniform Administrative Requirements for Grants and Agreements with
Institutions of Higher Education, Hospitals and Other Non-Profit Organizations, requires
nonfederal entities receiving federal awards establish and maintain internal control designed to
reasonably ensure compliance with federal laws, regulations and program compliance
requirements. An effective system of internal control should include procedures to reasonably
ensure an accurate calculation of a student's financial aid award.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
20
CURRENT FINDINGS - FEDERAL COMPLIANCE (continued)
Finding 11-3 - Awarding of Student Financial Aid (continued)
University officials stated University employees did not follow procedures that were in place.
Failure to maintain accurate budget information in the system could result in an over award of a
student’s financial need. (Finding Code 11-3, 10-4).
Recommendation
We recommend that the University improve its procedures over the awarding of student financial
aid to ensure that students are awarded accurately.
University’s Response
The University concurs with this recommendation.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
21
CURRENT FINDINGS - FEDERAL COMPLIANCE (continued)
Federal Agency: U.S. Department of Education
Program Name CFDA #
Program
Expenditures
Perkins Loans 84.038 $ 230,545
Questioned Costs: None
Finding 11-4 - Perkins Loan Processing Error
The University reported inaccurate Perkins Loan information to the National Student Loan Data
System (NSLDS).
Through the testing of 25 students that received Federal Perkins Loans during the year, we noted
that the University did not accurately report one student's Federal Perkins Loan information to the
NSLDS. We noted that the University was reporting this student’s information under the wrong
social security number.
Applicable regulations (34 CFR 674.16(j)) state that institutions must report enrollment and loan
status information, or any Title IV loan-related information required by the Secretary, to the
Secretary by the deadline date established by the Secretary.
OMB Circular A-110, Uniform Administrative Requirements for Grants and Agreements with
Institutions of Higher Education, Hospitals and Other Non-Profit Organizations, requires
nonfederal entities receiving federal awards to establish and maintain internal controls designed
to reasonably ensure compliance with federal laws, regulations and program compliance
requirements. An effective system of internal control should include procedures to reasonably
ensure accurate reporting of a student's Federal Perkins Loan information to the NSLDS.
University officials stated that the University uses a paper document to input information to the
NSLDS and believe that this was an isolated incident where information was inadvertently entered
on the wrong student's account.
Inaccurate reporting of a student's Federal Perkins Loan information to the NSLDS could lead to
inaccurate awarding of student financial aid. (Finding Code 11-4).
Recommendation
We recommend that the University implement controls to ensure that all Perkin's loan
information is reported correctly to the NSLDS.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
22
CURRENT FINDINGS - FEDERAL COMPLIANCE (continued)
Finding 11-4 - Perkins Loan Processing Error (continued)
University’s Response
The University concurs with this recommendation.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
23
CURRENT FINDINGS - FEDERAL COMPLIANCE (continued)
Federal Agency: U.S. Department of Education
Program Name CFDA #
Program
Expenditures
Student Financial Aid Cluster Cluster $ 47,505,886
Questioned Costs: $125
Finding 11-5 - Performance of Financial Aid Verification Procedures
The University did not properly perform required verification procedures for students receiving
financial aid.
Through our testing of the verification procedures performed on 25 students, we noted errors
affecting three students as follows:
 One student's income tax paid amount that was used in the determination of the expected family
contribution was higher than the amount on the student’s tax return. The result of this
adjustment is a change in expected family contribution from $925, which was used to calculate
the award, to the correct amount of $1,095. This resulted in an over award of Pell by $125.
 One student's adjusted gross income used to calculate the student's expected family contribution
was higher than the reported adjusted gross income on the student’s tax return. The result of this
adjustment is a change in expected family contribution from $2,943, which was used to
calculate the award, to the correct amount of $2,478. This did not result in a change in the
student's financial aid award.
 We noted one instance where the student's verification form was not signed. It is the
University's policy that the verification form be signed by the student.
An institution shall require each applicant whose application is selected to verify items specified in
34 CFR Section 668.56 which is used to determine the applicant’s expected family contribution.
In addition, OMB Circular A-110, Uniform Administrative Requirements for Grants and
Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit
Organizations, requires nonfederal entities receiving federal awards establish and maintain
internal control designed to reasonably ensure compliance with federal laws, regulations and
program compliance requirements. Effective internal controls should include establishing
procedures to ensure required documentation used to verify student information is obtained and
evaluated prior to disbursement of Title IV funds.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
24
CURRENT FINDINGS - FEDERAL COMPLIANCE (continued)
Finding 11-5 - Performance of Financial Aid Verification Procedures (continued)
Additionally, corrections should be made as required by federal regulations and documentation
of the performance of verification procedures should be maintained in the student’s financial aid
file.
University officials stated that the condition noted above was due to an oversight.
Failure to properly perform verification procedures in accordance with federal regulations may
result in students receiving the incorrect amount of financial aid. (Finding Code 11-5).
Recommendation
We recommend that the University review its controls over the verification process to ensure that
all students are awarded the correct amount of financial aid.
University’s Response
The University concurs with this recommendation.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
25
CURRENT FINDINGS - FEDERAL COMPLIANCE (continued)
Federal Agency: U.S. Department of Education
Program Name CFDA #
Program
Expenditures
Federal Direct Student Loans 84.268 $ 26,156,347
Questioned Costs: None
Finding 11-6 - Direct Loan Cash Summary Reconciliation
The University did not reconcile its cash balance for the Federal Direct Loan Program on a monthly
basis.
We requested monthly reconciliations of the University’s Direct Loan records to the ending cash
balance on the School Account Statements (SAS) provided by the Common Origination and
Disbursement (COD) System. Although the University was able to provide evidence that it had
separately analyzed components of the SAS, the University could not provide us with a
reconciliation of the cash balance.
The Department of Education’s “Direct Loan School Guide”, Chapter 6, Reconciliation, requires
that the University reconcile the ending cash balance on the SAS with its internal records on a
monthly basis, ensuring that any discrepancies are resolved, and documents any reason for a
positive or negative balance.
In addition, OMB Circular A-110, Uniform Administrative Requirements for Grants and
Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit
Organizations, requires nonfederal entities receiving federal awards establish and maintain
internal controls designed to reasonably ensure compliance with federal laws, regulations and
program compliance requirements. Effective internal controls should include procedures to
ensure that program records are reconciled to the fiscal records on a monthly basis.
University officials stated that reconciliations were being performed by the financial aid and
finance office over the draw downs and the disbursements; however reconciliation of the ending
cash balance of the loan program was not being documented.
Failure to properly reconcile program and fiscal records is a violation of federal regulations and
could result in a loss of federal funding. (Finding Code 11-6).
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
26
CURRENT FINDINGS - FEDERAL COMPLIANCE (continued)
Finding 11-6 - Direct Loan Cash Summary Reconciliation (continued)
Recommendation
We recommend that the University review its procedures to ensure that the ending cash balance
per the Direct Loan Cash Summary is being reconciled on a monthly basis.
University’s Response
The University concurs with this recommendation.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
27
CURRENT FINDINGS - FEDERAL COMPLIANCE (continued)
Federal Agency: U.S. Department of Education
Program Name CFDA #
Program
Expenditures
Student Financial Aid Cluster Cluster $ 47,505,886
Questioned Costs: None
Finding 11-7 - Inaccurate Fiscal Operations Report and Application to Participate (FISAP)
Reporting
The University reported inaccurate information on its Fiscal Operations Report and Application to
Participate (FISAP) filed September 30, 2011. An amended FISAP was filed on January 3, 2012.
Through our testing procedures performed on the FISAP, we noted that the following significant
inaccuracies on the FISAP filed on September 30, 2011.
 Total undergraduate tuition and fees for the award year ended June 30, 2011 was reported as
$54,541,033 but should have been reported as $56,126,761.
 Total graduate tuition and fees for the award year ended June 30, 2011 was reported as
$11,709,873 but should have been reported as $10,448,405.
 Total federal Pell grant expenditures for the 2010-2011 award year was reported as
$23,951,933 but should have been reported as $19,274,053.
The Code of Federal Regulations (34 CFR 675.19(b)(3) requires the University to submit a
Fiscal Operations Report plus other information required by the U.S. Department of Education.
The Code requires the information to be accurate and to be submitted timely.
OMB Circular A-110 requires nonfederal entities receiving federal awards establish and maintain
internal controls designed to reasonably ensure compliance with federal laws, regulations, and
program compliance requirements. Effective internal controls should include procedures to ensure
that reports are complete and accurate.
University officials stated that the condition noted above was due to oversight.
Inaccurate reporting on the FISAP could result in an incorrect award of campus-based funds to the
University. Furthermore, failure to properly complete the FISAP is a violation of federal
regulations and could jeopardize future federal funding. (Finding Code 11-7).
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
28
CURRENT FINDINGS - FEDERAL COMPLIANCE (continued)
Finding 11-7 - Inaccurate Fiscal Operations Report and Application to Participate (FISAP)
Reporting (continued)
Recommendation
We recommend that the University review its procedures to ensure that the FISAP is being
prepared accurately.
University’s Response
The University concurs with this recommendation.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
29
CURRENT FINDINGS - STATE COMPLIANCE
Finding 11-8 - Generally Accepted Accounting Principles (GAAP) Not Properly Applied to
Accrued Interest
The University did not record accrued interest payable for all outstanding debt issuances.
Through our testing of accrued interest payable as of June 30, 2011, we noted that the University
did not record $75,852 related to the 2010 Certificates of Participation. An adjusting entry was
proposed to the University to correct this error, which the University did not record.
The Fiscal Control and Internal Auditing Act (30 ILCS 10/3001) requires the University to
establish and maintain a system of fiscal and administrative controls to ensure resources are
properly recorded and accounted for to permit the preparation of accounts, reliable financial and
statistical reports, and to maintain accountability over the State's resources.
University officials stated that this missing accrued interest was the result of an oversight.
By not recording all accrued interest, this omission could result in financial statements that are
materially misstated. (Finding Code 11-8).
Recommendation
We recommend that the University improve its procedures to ensure that all accrued interest is
recorded in their financial statements.
University’s Response
The University concurs with this recommendation.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
30
CURRENT FINDINGS - STATE COMPLIANCE (continued)
Finding 11-9 - Timesheets Not Required
The University did not require all employees to submit timesheets as required by the State
Officials and Employees Ethics Act (the “Act”).
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 430/5-5(c))
states, “The policies shall require State employees to periodically submit timesheets
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’s policies.
Based on our detailed testing of 75 employees’ timesheets, we noted that eight employees were
not required to file timesheets. These eight employees were all faculty members.
University procedures did not require time reporting documenting the time spent each day on
official State business to the nearest quarter hour to be submitted for faculty, instructors, and
graduate assistants. The employees documenting time to the nearest quarter hour are
administrative and professional, civil service, miscellaneous hourly, student aide, work study,
and resource professionals.
University officials stated that the University currently requires time reports from all hourly
employees and administrative staff. The time reporting requirement has not been implemented for
faculty.
By not requiring positive time reporting from all its employees, the University is not in
compliance with the Act. (Finding Code Numbers 11-9, 10-8, 09-9, 08-6, 07-6, 06-5, 05-4).
Recommendation
We recommend the University amend its policies to require all employees to submit time reports
in compliance with the Act.
University’s Response
The University concurs with this recommendation.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
31
PRIOR FINDINGS NOT REPEATED
A Generally Accepted Accounting Principles (GAAP) not properly applied to grant revenue
recognition
Status: Not Repeated
It was recommended that the University improve its system for determining the timing of
grant revenue recognition to properly account for such transactions in accordance with
GAAP.
In the current year, we did not note any inaccuracies in the determination and timing of grant
revenue recognition (Finding Code No. 10-1).
B TEACH Grants Were Not Properly Awarded
Status: Not Repeated
It was recommended that the University review its award process for TEACH grants to
ensure that students who are not eligible for the TEACH grant do not receive the grant.
In the current year, we did not note any instances of non-compliance in testing the eligibility
requirements of the TEACH grant. (Finding Code No. 10-2).
C Inadequate Controls Over Payroll Processing of Employees Paid from Grant Funds
Status: Not Repeated
It was recommended that the University implement controls that require the time and effort
sheets to be returned within a reasonable amount of time.
In the current year, we did not note any instances of non-compliance in testing the payroll
transactions of employees paid from grant funds. (Finding Code No. 10-3, 09-5).
D Noncompliance with Required Contracting Procedures
Status: Not Repeated.
It was recommended that the University adhere to its procedures to ensure that all contracts
over the threshold amount contain the required signatures.
In the current year, during our review of various contracts, we noted that all the necessary
signatures were included. (Finding Code No. 10-6, 09-8).
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2011
32
PRIOR FINDINGS NOT REPEATED (continued)
E Northeastern Illinois University Alumni Association
Status: Not Repeated.
It was recommended that the University review its controls over the creation of maintenance
of UROs.
In the current year, we noted that the University Board of Trustees approved the Alumni
Association, authorized the use by the Alumni Association of the University name, and
authorized the contractual relationship between the University and the Alumni Association.
(Finding code No. 10-7).
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
For the Year Ended June 30, 2011
33
Summary
Supplementary Information for State Compliance Purposes presented in this section of the report
includes the following:
 Fiscal Schedules and Analysis
Schedule of Expenditures of Federal Awards
Notes to the Schedule of Expenditures of Federal Awards
Schedule of Net Appropriations, Expenditures, Lapsed Balances and Balances
Reappropriated
Comparative Schedule of Net Appropriations, Expenditures, Lapsed Balances and
Balances Reappropriated
Comparative Schedule of Income Fund Revenues and Expenditures
Schedule of Changes in Capital Assets
Analysis of Significant Variations in Expenses
Analysis of Significant Variations in Revenues
Analysis of Significant Lapse Period Spending
Analysis of Significant Account Balances
Summary of Indirect Cost Reimbursement Funds
 Analysis of Operations
University Functions and Planning Program
University Enrollment and Employee Information (Unaudited)
Schedules of Federal Expenditures, Nonfederal Expenses and New Loans
Service Efforts and Accomplishments (Unaudited)
Schedule of Tuition and Fee Waivers (Unaudited)
University Bookstore Information (Unaudited)
 Special Data Requirements for Audits of Universities
University Reporting in Accordance with University Guidelines
Schedule of Indirect Cost Funds to be deposited into the University Income Fund as
Required by 1982 University Guidelines (Amended 1997)
Other Entities and Auxiliary Enterprises - Calculation Sheet for Current Excess Funds
Description of Accounting Entities
Other Entities and Auxiliary Enterprises - Balance Sheets
Other Entities and Auxiliary Enterprises - Schedule of Changes in Fund Balances -
Current Funds
Summary of Foundation Payments to the University
Summary of Alumni Association Payments to the University
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
For the Year Ended June 30, 2011
34
Summary (continued)
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.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2011
CFDA Pass-Through Federal
Federal Grantor/Pass-Through Grantor Program/Grant Title Number Number Expenditures
MAJOR PROGRAMS
Department of Education
Student Financial Assistance Cluster
Federal Pell Grant Program 84.063 $ 19,100,384
Academic Competitiveness Grant Program 84.375 431,662
Federal Work Study Program 84.033 509,015
National Science and Mathematics Access to Retain Talent
(SMART) Grants 84.376 440,255
Federal Supplemental Educational Opportunity Grant Program 84.007 352,178
Federal Teacher Education Assistance for College and Higher
Education Grants (TEACH grant) 84.379 285,500
Federal Perkins Loan Program (Note 2) 84.038 -
Federal Direct Student Loan Program (Note 3) 84.268 -
Total Student Financial Assistance Cluster 21,118,994
Gaining Early Awareness and Readiness for Undergraduate Programs 84.334 7,847,463
TRIO Cluster
TRIO - Talent Search Program 84.044 467,027
TRIO Upward Bound Program 84.047 467,613
TRIO Upward Bound Math and Science Competition 84.047 322,493
TRIO - Ronald E. McNair Post Baccalaureate Achievement 84.217 197,447
TRIO - Student Support Services - Regular; Disabilities; Teacher Prep 84.042 300,197
Total TRIO Cluster 1,754,777
Higher Education - Institutional Aid - CCRAA 84.031 1,075,928
Higher Education - Institutional Aid - PPOHA 84.031 260,360
Strengthening Institutions - Hispanic Serving Institutions 84.031 1,069,947
2,406,235
Twenty-First Century Community Learning Centers
Passed-Through Illinois State Board of Education
Project 4421-07 '10 84.287 776,931
Project 4421-10 '10 84.287 417,876
1,194,807
Total Department of Education 34,322,276
Total Major Programs 34,322,276
OTHER PROGRAMS
Department of Education
Bilingual Education Training Grants
National Professional Development Program 84.195 204,587
Rehabilitation Long-Term Training
Rehabilitation Counseling 84.129 79,626
35
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2011
CFDA Pass-Through Federal
Federal Grantor/Pass-Through Grantor Program/Grant Title Number Number Expenditures
OTHER PROGRAMS (continued)
Department of Education (continued)
PEP Aspira
Fund for the Improvement of Education 84.215 124,132
Capacity Building for Traditionally Underserved Populations
Rehabilitation Counseling Capacity Building Project 84.315 37,881
Passed-Through Berwyn South School District 100
Professional Development in the Arts 84.351 None 231,462
Passed-Through University of Illinois at Chicago
Teacher Quality Partnership 84.336 0411 273,523
Passed-Through Illinois Board of Higher Education
No Child Left Behind 84.367 None 253,576
Total Department of Education 1,204,787
National Science Foundation
Mathematical and Physical Sciences
Math and Science Cohort of Scholars 47.049 109,230
Robust Numerical Methods in Polynomial Algebra with
Approximate Data 47.049 32,633
Research in Undergraduate Institutions: Hamiltonian Instability 47.049 1,100
Biological Sciences 47.074 43,323
American Recovery and Reinvestment Act
Enriching the First Year Experience - ARRA 47.082 69,760
Passed-Through Purdue University
Undergraduate Research Centers 47.049 501-1324-01 2,705
Passed-Through University of Wisconsin
How Does Teachers' Visual Scaffolding Support Students'
Mathematics Learning 47.076 192K850 38,005
Passed-Through Chicago State University
Illinois Louis Stokes Alliance for Minority Participation 47.076 None 20,251
Passed-Through National Center for Science & Civic Engagement
Science Education for New Civic Engagements and Responsibilities 47.076 None 32
Passed-Through Loyola
Loyola Research Experience Undergrad 47.075 14,696
Total National Science Foundation 331,735
36
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2011
CFDA Pass-Through Federal
Federal Grantor/Pass-Through Grantor Program/Grant Title Number Number Expenditures
OTHER PROGRAMS (continued)
Department of Health and Human Services
National Institutes of Health
An Office of Research Development to Foster Research 93.865 68,322
Passed-Through Illinois Department of Human Services
Substance Abuse Prevention 93.959 10C6002591 54,631
Passed-Through Northwestern University
Select Training and Research Program 93.859 PROJ0001509 36,622
Total Department of Health and Human Services 159,575
Department of Agriculture
EPWO Habitat Restoration
Fish and Wildlife Management Assistance 15.608 7,547
ARS and NEIU Partnership
Agricultural Research Basic and Applied Research 10.001 13,958
Targeted Investigation of Earth Resources
Hispanic Serving Institutions Education Grants 10.223 24,460
Collaboration and Retention in Environmental & Agriculture
Hispanic Serving Institutions Education Grants 10.223 21,071
Total Department of Agriculture 67,036
Total Other Programs 1,763,133
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 36,085,409
See the accompanying notes to Schedule of Expenditures of Federal Awards.
37
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2011
38
NOTE 1 - SIGNIFICANT ACCOUNTING POLICY
Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards by federal agency and program
represents the financial assistance transactions of the State of Illinois, Northeastern Illinois
University, which are recorded on the accrual basis of accounting. The information in this Schedule
is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local
Governments and Non-Profit Organizations.
NOTE 2 - STUDENT LOAN PROGRAM ADMINISTERED BY THE UNIVERSITY
The University administered the following federal loan program during the year ended June 30,
2011:
Federal Perkins Loan Program CFDA #84.038
Outstanding balance at July 1, 2010 $ 2,406,672
Additions:
Interest income 43,042
Other income 4,049
Decrease in allowance for doubtful accounts 45,341
Total additions 92,432
Deductions:
Loans cancelled or written off 103,364
Collection costs 46,931
Administrative charges 11,527
Total deductions 161,822
Outstanding balance at June 30, 2011 $ 2,337,282
Loans made by the University to eligible students under the Federal Perkins Loan Program during the
year ended June 30, 2011 were $230,545.
NOTE 3 - GUARANTEED LOANS
During the year ended June 30, 2011, the University awarded $26,156,347 in new loans under the
Federal Direct Student Loan Program (CFDA #84.268).
NOTE 4 - WAIVED MATCHING REQUIREMENT
During the year ended June 30, 2011, the State of Illinois, Northeastern Illinois University was
granted a waiver from the U.S. Department of Education that released the University from the
requirement of matching any Federal Work-Study (FWS) funds and any Federal Supplemental
Educational Opportunity Grant (FSEOG) funds.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
SCHEDULE OF NET APPROPRIATIONS, EXPENDITURES, LAPSED BALANCES
AND BALANCES REAPPROPRIATED*
Appropriations for Fiscal Year 2011
Fourteen Months Ended August 31, 2011
Lapse Period
Appropriations Expenditures Expenditures Balances
(Net After Through July 1 to Total Balances Reappropriated
Transfers) June 30, 2011 August 31, 2011 Expenditures Lapsed July 1, 2011
APPROPRIATED FUNDS
General Revenue Fund 001 (Public Act 96-0956) $ 40,695,200 $ - $ - $ - $ - $ -
Personal services - 39,086,679 10,670 39,097,349 - -
Social Security - Medicare contributions - 543,401 - 543,401 - -
Employer contributions to group insurance - 1 ,054,450 - 1 ,054,450 - -
-
Total General Revenue Fund 40,695,200 40,684,530 10,670 4 0,695,200 - -
Capital Development Fund 141 (Public Act 96-0114)
Equipment and Remodeling of Buildings 16,018 16,018 - 16,018 - -
TOTAL APPROPRIATED FUNDS $ 40,711,218 $ 40,700,548 $ 10,670 $ 40,711,218 $ - $ -
* The information contained in this schedule was taken from the University records which have been reconciled to those of the Office of State Comptroller.
39
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
COMPARATIVE SCHEDULE OF NET APPROPRIATIONS, EXPENDITURES
LAPSED BALANCES AND BALANCES REAPPROPRIATED*
For the Years Ended June 30, 2011, 2010, and 2009
2011 2010 2009
PA 96-0956 PA 96-0114 PA 95-0734
General Revenue Fund-001:
Appropriations (net after transfers) $ 40,695,200 $ 39,247,700 $ 43,401,900
Expenditures:
Personal services 39,097,349 37,673,929 37,965,861
Social Security - Medicare contributions 543,401 501,171 437,700
Employer contributions to group insurance 1,054,450 1,072,600 1,072,600
Contractual services - - 1,130,000
Equipment - - 199,998
Hispanic serving institution initiative - - 1,158,011
Retention and graduation rates for minority students - - 167,891
North Atlantic Slave Trade Study - - 185,995
Total expenditures 40,695,200 39,247,700 42,318,056
Lapsed Balances $ - $ - $ 1,083,844
Federal stimulus - ARRA Fund 001
Appropriations (net after transfers) - Educational Fund $ - $ 1,050,000 $ -
Expenditures:
Personal services 1,049,962
Appropriations (net after transfers) - Government Services Fund - 3,104,200 -
Expenditures:
Personal services 3,104,200
Total expenditures - 4,154,162 -
Lapsed Balances $ - $ 38 $ -
Capital Development Fund - 141
Appropriations (net after transfers) $ 16,018 $ 219,783 $ 2,071,805
Expenditures:
Equipment and remodeling of buildings 16,018 203,766 1,852,022
Lapsed Balances $ - $ 16,017 $ 219,783
GRAND TOTAL, ALL FUNDS
Total appropriations (net after transfers) $ 40,711,218 $ 43,621,683 $ 45,473,705
Total expenditures 40,711,218 43,605,628 44,170,078
Lapsed balances $ - $ 16,055 $ 1,303,627
Balances reappropriated $ - $ 16,017 $ 219,783
* The information contained in this schedule was taken from the University records which have been reconciled to those
of the State Comptroller.
Fiscal Years
40
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
COMPARATIVE SCHEDULE OF INCOME FUND REVENUES AND EXPENDITURES*
For the Years Ended June 30, 2011 and 2010
2011 2010
FUND BALANCE, BEGINNING OF YEAR $ 18,162,727 $ 4,480,328
Income fund revenues
Tuition 58,453,799 53,314,830
Rental income 47,873 46,479
Investment income 97,149 61,023
Miscellaneous 2,330,751 697,394
Total income fund revenues 60,929,572 54,119,726
Income fund expenditures
Personal services (including change in accrued
compensated absences) 26,834,428 23,272,181
Social Security, Medicare, health and life insuranc 343,682 348,134
Contractual services 8,402,919 8,671,706
Travel 254,450 267,850
Commodities 1,008,981 1,037,951
Equipment and library books 1,606,032 2,504,422
Telecommunications 524,554 520,037
Operation of automotive 25,043 37,422
Awards, grants and matching funds 312,038 243,144
Permanent improvements 755,508 74,801
Tuition and fee waivers 3,736,268 3,459,679
Total income fund expenditures 43,803,903 40,437,327
FUND BALANCE, END OF YEAR $ 35,288,396 $ 18,162,727
* This schedule has been prepared on the accrual basis of accounting.
41
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
SCHEDULE OF CHANGES IN CAPITAL ASSETS*
For the Years Ended June 30, 2011, 2010, and 2009
Balance Balance Balance
June 30, 2009 Additions Deductions June 30, 2010 Additions Deductions June 30, 2011
Land $ 3,518,301 $ - $ - $ 3,518,301 $ - $ - $ 3,518,301
Land improvements 10,497,272 467,685 - 10,964,957 - - 10,964,957
Building and building improvement 123,023,948 7,776,235 - 1 30,800,183 3,399,811 126,938 134,073,056
Equipment and library books 55,630,529 4,327,602 5,177,247 54,780,884 2,700,476 1,535,655 55,945,705
Construction in progress 5,812,579 1,502,293 6,497,541 817,331 4,260,807 2,406,428 2,671,710
TOTAL $ 198,482,629 $ 14,073,815 $ 11,674,788 $ 200,881,656 $ 10,361,094 $ 4,069,021 $ 207,173,729
* This schedule has been prepared from the University's property control records. These records are maintained on a basis prescribed by the
Department of Central Management Services and differ from the information presented in the basic financial statements due to the higher
capitalization thresholds which were adopted for financial recording purposes. These records have been reconciled to the property records
submitted to the Office of the State Comptroller.
42
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENSES
For the Year Ended June 30, 2011
The Statement of Revenues, Expenses, and Changes in Net Assets is presented on page 19 of the financial audit report. Following are explanations for significant variances between expense
accounts exceeding $100,000 and 10%:
2011 2010 Amount Percentage Comments
Research $ 764,946 $ 894,756 $ (129,810) -15% Decrease mainly due to the decrease in state grants.
Scholarships and fellowships 9,124,810 7,845,618 1,279,192 16% Increase mainly due to the $1.3 million increase in the expenditures for awards/grants to
eligible Pell grant recipients.
Other operating expenses 1,763,866 1,485,620 278,246 19% Increase mainly due to the following: a) $0.1 million spent on the issuance cost related
to COPs issued in September 2010; b) $0.1 million increase in expenses related to the
Parking Facility Repair and Maintenance Project; c) $0.1 million increase in expense.
Increase (Decrease)
43
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
ANALYSIS OF SIGNIFICANT VARIATIONS IN REVENUES
For the Year Ended June 30, 2011
The Statement of Revenues, Expenses, and Changes in Net Assets is presented on page 19 of the financial audit report. Following are explanations for significant variances between revenue accounts
exceeding $100,000 and 10%:
2011 2010 Amount Percentage Comments
Federal grants and contracts $ 13,561,635 $ 1 2,002,930 $ 1,558,705 13% Increase mainly due to the following : a) $0.4 million new funding from the new GEAR UP
IV grants; b) $0.3 million new funding from the new Student Support Services Program
(SSSP) grants; c) $0.6 million more revenues for Title IV SHSI grants.
State and local grants 2,706,114 3 ,124,281 (418,167) -13% Decrease mainly due to the following: (a) $0.3 million decrease in 21st Century Community
Learning Centers grant; (b) closure of Community College Student Transfer Initiative grant
resulting in a decrease in revenue of $0.2 million.
Other operating revenues 4,317,416 3,893,200 424,216 11% Increase mainly due to an increase in student health insurance fee from about $2.7 million
($528.25 per student) in fiscal year 2010 to about $3.1 million ($667.25 per student) during
the current fiscal year.
ARRA fund - 4,154,162 (4,154,162) -100% ARRA stimulus funding was appropriated for one year only in 2010.
Payments on behalf of the University 33,390,867 30,095,726 3,295,141 11% The increase reflects the rise in employee benefit costs financed by the State of Illinois
Pell grant 19,972,301 15,743,639 4,228,662 27% The increase is due to an increase in the number of Pell eligible students.
Increase (Decrease)
44
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
ANALYSIS OF SIGNIFICANT LAPSE PERIOD SPENDING
For the Year Ended June 30, 2011
45
There were no significant expenditures during the lapse period.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
ANALYSIS OF SIGNIFICANT ACCOUNT BALANCES
For the Years Ended June 30, 2011 and 2010
2011 2010
CASH AND INVESTMENTS
The University's cash and investments are classified as follows:
Cash and cash equivalents $ 42,612,198 $ 30,343,413
Restricted cash and cash equivalents 7,635,272 4,304,270
Restricted investments 1,346,959 993,705
TOTAL CASH AND INVESTMENTS $ 51,594,429 $ 35,641,388
The University's cash and investments were held in the following accounts:
Deposits held at U.S. Bank:
University 2004 Bond Reserve Account $ 16,647 $ 199
University 2004 Bond Account 424,208 424,202
University 1997 Bond Reserve Account 6,329 407,249
University 1973 Bond Account 275,122 204,289
Deposits held at Pittsburgh National Bank 30,928 24,159
University Operating Account 2,303,057 5,010,650
University Operating Investment Account 41,613,521 -
University Clearing Account (938,778) (668,127)
University Payroll Account (223,194) (251,716)
University Student Refund Account (265,397) (455,612)
Student Union Revenue Fund 29,044 73
Repair and Replacement Account 332,166 509,111
Equipment Reserve 134,885 134,885
University Emergency Loan Account (2,493) (750)
2006 Certificate of Participation Project Account 1,681,793 2,600,103
2010 Certificate of Participation Project Account 4,704,149 -
U.S. Treasury Notes 1,102,471 749,217
U.S. Bank Jumbo Customers' Deposit 244,488 244,488
Illinois Funds 118,183 26,701,668
Petty cash - all accounts 7,300 7,300
TOTAL CASH AND INVESTMENTS $ 51,594,429 $ 35,641,388
As of June 30, 2011, all deposit amounts were fully collateralized with federal government securities pledged by
the applicable financial institution, were invested in U.S. Government securities, money market funds, or were
on deposit with Illinois Funds. The Illinois Funds includes investment in U.S. Government-backed securities
which yielded an average annual rate of 0.115% during fiscal year 2011. The University has the right to
withdraw its participation from the pool at any point in time. The U.S. Treasury Notes have interest rates of
1.844%.
46
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
ANALYSIS OF SIGNIFICANT ACCOUNT BALANCES
For the Years Ended June 30, 2011 and 2010
RECEIVABLES
The University's receivables (net of allowance for doubtful accounts) are classified as follows:
2011 2010
Grants $ 3,089,505 $ 5,504,301
Student loans 2,024,367 2,211,423
Tuition and fees 3,660,151 3,758,822
Other receivables 17,808,831 9,963,069
TOTAL RECEIVABLES $ 26,582,854 $ 21,437,615
Grants receivable consists of amounts due from the federal government and other granting
sources at the end of the fiscal year. The increase in total grants receivable was mainly due to
regular monthly scheduled draws from the Department of Education which resulted in lower
receivables in FY 2011 compared to FY 2010. Other receivables consist primarily of amounts
due from State appropriation, parking fines, library fines, and other miscellaneous receivables.
The significant increase in other receivables was mostly attributed to the delay in
reimbursement payments owed to the University at June 30, 2011, by the State Comptroller
for payroll expenses. The University’s outstanding receivables from State appropriations
amounted to $17.3 million as of June 30, 2011.
47
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
ANALYSIS OF SIGNIFICANT ACCOUNT BALANCES
For the Years Ended June 30, 2011 and 2010
RECEIVABLES, continued
The aging of such receivables, by type, as of June 30, 2011, is as follows:
Over
Current 1-2 years 2-3 years 3 years Total
GRANTS $ 3,089,505 $ - $ - $ - $ 3,089,505
STUDENT LOANS
Perkins loan $ 2,379,830 $ 64,500 $ 76,345 $ 234,930 $ 2,755,605
Emergency loan 24,490 3,101 1,258 25,398 54,247
TEACH Grant (444) - - - (444)
TOTAL STUDENT LOANS $ 2,403,876 $ 67,601 $ 77,603 $ 260,328 2,809,408
Allowance for doubtful accounts (785,041)
NET STUDENT LOANS $ 2,024,367
TUITION AND FEES
From students $ 3,651,540 $ 1,118,270 $ 1,495,814 $ 43,629 $ 6,309,253
TOTAL TUITION AND FEES $ 3,651,540 $ 1,118,270 $ 1,495,814 $ 43,629 6,309,253
Allowance for doubtful accounts (2,649,102)
NET TUITION AND FEES $ 3,660,151
OTHER RECEIVABLES
Parking fines $ 96,088 $ 61,519 $ 37,984 $ 91,862 $ 287,453
Library fines 105,536 119,782 382,758 - 608,076
Other accruals 17,614,913 - - - 17,614,913
TOTAL OTHER RECEIVABLES $ 17,816,537 $ 181,301 $ 420,742 $ 91,862 18,510,442
Allowance for doubtful accounts (701,611)
NET OTHER RECEIVABLES $ 17,808,831
48
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
ANALYSIS OF SIGNIFICANT ACCOUNT BALANCES
For the Years Ended June 30, 2011 and 2010
LIABILITIES
A comparative analysis of liabilities of the University is provided below:
2011 2010
Accounts payable and accrued liabilities $ 7,532,184 $ 6,373,838
Deferred revenues 2,664,518 3,713,627
Liability for compensated absences 8,308,024 8,840,891
Revenue bonds payable 17,520,000 17,685,000
Certificates of participation, net 18,915,869 13,461,153
Funds held in custody for others 139,460 126,113
TOTAL LIABILITIES $ 55,080,055 $ 50,200,622
Increase in certificates of participation was due to the $6.0 million certificates of participation
issued in September 2010 to finance the acquisition of energy conserving improvements.
Increase in accounts payable and accrued liabilities was mainly due to the expenditures and
retainage accrued for the Energy Conservation Project.
Decrease in deferred revenues was mainly due to the receipts on which allocated deferred
revenues on tuition and fees was based was about $5.3 million in FY 2010 compared to $4.5
million in FY 2011.
49
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
SUMMARY OF INDIRECT COST REIMURSEMENT FUNDS
For the Year Ended June 30, 2011
FUND BALANCE, JUNE 30, 2010 $ 1,429,033
21ST CCLC Morton High School $ 30,953
21ST Community centers 57,550
Academic Enhancements 91,860
Berwyn Cicero Initiative Ed Excel 14,662
Berwyn Professional Dev In Arts Ed 17,153
Bookstore 18,070
Bridges To the Future 1,838
Campus Recreation 42,356
Center for Authentic Science Practice in Education 1,815
Childcare Center 33,439
CPS Avenues for Success Programs 273
English Language Acquisition 18,241
Enriching the First Year Experience 11,671
Fish and Wildlife EPWO Habitat Rest 686
GEAR UP Programs 373,625
Gifted Fast Pace Programs 2,435
Health Services 19,492
Interactive Teaching & Learning 169
Kirk Yard Tract Insect Survey 2,040
Learning Together 8
Least Restrictive Environment Program 2,900
Louis Stoke Alliance Minority 2,468
McNair Scholars Program 13,124
NCLB Plans for Academic Success 21,806
Non-Credit Contracts 5,425
Northwestern University START Program 2,713
Office of Research Development 2,722
Parking Lot Administration 128,871
PEP Villa Park 81
Performing Arts 9,704
Perkins Loan Program 11,527
Physical Education Program Aspira 9,114
Polk Bros Every Art Every Child 1,840
Rehabilitation Counseling Capacity 2,744
Rehabilitation Long Term Training 4,199
50
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
FISCAL SCHEDULES AND ANALYSIS
SUMMARY OF INDIRECT COST REIMURSEMENT FUNDS
For the Year Ended June 30, 2011
Robust Numerical Methods in Polynomial Algebra 6,021
Safe & Drug Free Schools & Communities 5,627
SEOG Program 16,770
Step Up to High School Program 1,025
Student Support Services Program 11 7,593
SSSP with Disabilities 11 8,445
SSSP Teacher Preparation 11 6,199
Student Activities 46,401
Student Union Service 83,976
Substance Abuse HIV HEPA Prevention 8,390
Talent Search 34,595
Technology Initiatives 194,370
Terra Foundation Every Art Child 1,223
Training Services for NC 1,724
UIC Teacher Quality Partnership 20,261
Upward Bound 65,319
USDA TIERRA 2011 1,540
UW Visual Scaffolding for Math 11,882
Vending 7,202
Waukegan Community District 42
Work Study Programs 21,196 1,507,375
Other Source-IC on Course Fees/PELL Administrative Fee 35,203
Total Available 2,971,611
Less: Expenditures and Transfer
Academic Services 313,193
Administrative Services 502,824
Student Services 50,907
Public Services 4,141
Funds Transferred to Income Fund 705,787 1,576,852
FUND BALANCE, JUNE 30, 2011 $ 1,394,759
51
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
ANALYSIS OF OPERATIONS
UNIVERSITY FUNCTIONS AND PLANNING PROGRAM
For the Year Ended June 30, 2011
52
Description of Planning System
Functions
Mission
The University, as a public comprehensive university with locations throughout Chicago,
provides an exceptional environment for learning, teaching, and scholarship. The University
prepares a diverse community of students for leadership and service in our region and in a
dynamic multicultural world.
Vision
The University will be a leader among metropolitan universities, known for its dedication to its
urban mission, for the quality of its programs, for the success of its graduates, and for the
diversity of its learning environment.
Values
The University is committed to a set of shared values - integrity, excellence, access to
opportunity, diversity, community, and empowerment through learning - that, taken collectively,
guides their actions and interactions, both within and throughout the University and outside the
University, as they work together to prepare graduates for the responsible exercise of citizenship.
These values serve as the touchstone for planning how the University will best achieve the
educational mission entrusted to them.
Planning
The University has identified six strategic goals as the most critical objectives in meeting their
Mission and achieving their Vision. These strategic goals, and the action steps accompanying
each goal, will be used to establish their work and budget priorities each year and will serve as
the framework to determine the success of the University. The six strategic goals are as follows:
(1) Student Success: Ensure student success from recruitment through graduation by creating
a culture in which all members of the University community are engaged in attracting,
educating, and graduating students who achieve the objectives for baccalaureate and
graduate degrees.
(2) Academic Excellence and Innovation: Develop an environment that supports curricular
and pedagogical innovation aligned with the mission of the institution, the standards of the
disciplines, student needs, and career and civic opportunities in a global society.
(3) Urban Leadership: Work collaboratively with educational, social service, governmental,
and business institutions in Chicago and the region to build upon the University’s tradition
of community involvement.
(4) Exemplary Faculty and Staff: Invest in faculty and staff to make the University a world-class
metropolitan university and an employer of choice.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
ANALYSIS OF OPERATIONS
UNIVERSITY FUNCTIONS AND PLANNING PROGRAM
For the Year Ended June 30, 2011
53
Description of Planning System (continued)
Planning (continued)
(5) Enhanced University Operations: Provide a supportive learning, teaching and working
environment by improving operating productivity, physical infrastructure, and
environmental sustainability.
(6) Fiscal Strength: Enhance the University’s financial position by reducing reliance on State
general funds and student tuition, diversifying revenue sources, and strengthening
institutional relationships with federal, state, and local governments, and private sponsors.
Also included in the University’s strategic plan are the specific action steps, which outline the
various activities the University will undertake in the next few years to achieve its strategic
goals. The University will analyze the action steps under each strategic goal to determine the
areas of responsibility, timeframes, required resources, priority order of the action steps, and
yearly tasks that help them accomplish the action steps. The University will develop annual
work plans and work teams (across units) as needed to move their plan forward.
The University will develop, using the President’s Council and the Office of Institutional
Research, a limited number of key indicators or benchmarks for each strategic goal. They will
be measured periodically and the results reported to the University community. The University
will require unit goals and actions to be in harmony with the University strategic goals.
The University will ask the University Budgetary Council to redefine its role to include an
annual review of their strategic planning progress. Annual progress reports will be provided to
the University community (e.g., the State of the University address) and the Board of Trustees.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
ANALYSIS OF OPERATIONS
UNIVERSITY ENROLLMENT AND EMPLOYEE INFORMATION (Unaudited)
For the Year Ended June 30, 2011
54
Enrollment Information
Enrollments of both undergraduate and graduate students for each term (including extension
centers and part-time students) for the school years 2010-2011 and 2009-2010, as shown in the
Board of Trustees’ Enrollment Report were as follows:
2010-2011 2009-2010
Fall 11,746 11,631
Spring 11,166 11,066
Summer 5,638 5,853
Average Annual Full Time Equivalent (FTE) Enrollment
In fiscal year 2011, the University had an average FTE enrollment of 8,611 students, comprised
of 7,254 undergraduates and 1,357 graduate students. This number was calculated in accordance
with the Illinois Board of Higher Education guidelines as follows: annual undergraduate
semester credit hours (SCH) divided by 30. It is assumed that a full-time undergraduate student
enrolls for 15 hours per term, two terms per year. The same logic was used to calculate graduate
FTE, except that SCH was divided by 24. It is assumed that a full-time graduate student enrolls
for 12 hours per term, two terms per year.
Annual Cost per FTE Student
The University, like all other public universities in Illinois, is required to submit to the Illinois
Board of Higher Education an annual cost study. This cost study calculates the number of
dollars per credit hour by discipline and student level. Operating costs are accounted for in this
study.
Assuming an undergraduate FTE enrolls for two terms at 15 hours per term, and that a graduate
FTE enrolls for two terms at 12 hours per term, the fiscal year 2011 annual costs per FTE,
calculated by dividing the total costs of instruction by the corresponding FTE, were as follows:
a) undergraduate - $8,397, and b) graduate - $11,627.
Costs per Credit Hour
The University’s costs per credit hour (based upon total expenditures for instruction divided by
total credit hours) for fiscal years 2011 and 2010 are as follows:
2011 2010
Costs per Credit Hour $307 $ 311
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
ANALYSIS OF OPERATIONS
UNIVERSITY ENROLLMENT AND EMPLOYEE INFORMATION (Unaudited)
For the Year Ended June 30, 2011
55
Student/Faculty Ratio
The University’s student/faculty ratio (based upon full time equivalent students and faculty on a
staff year basis) for fiscal years 2011 and 2010 is as follows:
2011 2010
Student/Faculty Ratio 18:1 17:1
Employee Information
The average number of employees at the University during fiscal years 2011 and 2010 is as
follows:
2011 2010
Administration 302 267
Faculty 415 466
Civil Service 528 473
Students 277 256
Total employees 1,522 1,462
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
ANALYSIS OF OPERATIONS
SCHEDULES OF FEDERAL EXPENDITURES, NONFEDERAL
EXPENSES AND NEW LOANS
For the Year Ended June 30, 2011
SCHEDULE A - FEDERAL FINANCIAL COMPONENT
Total federal expenditures reported on SEFA Schedule $ 36,085,409
Total new loans made not included on SEFA Schedule 2 6,156,347
Amount of federal loan balances at beginning of the year
(not included on the SEFA Schedule and continued compliance required) 2,406,672
TOTAL SCHEDULE A $ 64,648,428
SCHEDULE B - TOTAL FINANCIAL COMPONENT
Total operating expenses (from financial statements) $ 153,500,409
Total nonoperating expenses (from financial statements) 1 ,499,699
Total new loans made 2 6,156,347
Amount of federal loan balances at beginning of the year 2,406,672
TOTAL SCHEDULE B $ 183,563,127
SCHEDULE C
Percent
Total Schedule A $ 64,648,428 35.2%
Total nonfederal expenses 118,914,699 64.8%
TOTAL SCHEDULE B $ 183,563,127 100.0%
These schedules are used to determine the University's single audit costs in accordance with OMB Circular A-133.
56
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
ANALYSIS OF OPERATIONS
SERVICE EFFORTS AND ACCOMPLISHMENTS (Unaudited)
For the Year Ended June 30, 2010*
57
Mission Statement
The University, as a public comprehensive university with locations throughout Chicago,
provides an exceptional environment for learning, teaching, and scholarship. The University
prepares a diverse community of students for leadership and service in our region and in a
dynamic multicultural world.
Program Goals
The University will be a leader among metropolitan universities, known for its dedication to its
urban mission, for the quality of its programs, for the success of its graduates, and for the
diversity of its learning environment.
Fiscal Year
2008 Actual
Fiscal Year
2009 Actual
Fiscal Year
2010 Target
Fiscal Year
2010 Actual
Input Indicators
Total expenditures - all sources
(in thousands) (a) $ 116,851 $ 118,979 $ 126,227 $ 125,316
Total expenditures - State appropriated funds
(in thousands) 40,745 44,170 43,401 43,606
Total staff - all fund sources (b) 1,493 1,547 1,547 1,493
Total staff - State appropriated fund sources (b) 1,142 1,208 1,189 1,173
Output Indicators
Undergraduate headcount enrollment 8,987 9,191 N/A 9,498
Total headcount enrollment 11,193 11,631 N/A 11,746
Percent: part-time student enrollment (c) 52.0% 50.3% N/A 48.6%
Baccalaureate degrees conferred 1,503 1,612 N/A 1,515
Master’s degrees conferred 562 546 N/A 551
Minority graduates: percent of total
baccalaureate degrees conferred 49.83% 50.99% N/A 51.55%
Minority graduates: percent of total master’s
degrees 37.01% 38.10% N/A 34.85%
N/A - Information was not available or not applicable to the period presented.
* Information for the year ended June 30, 2011 not yet available.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
ANALYSIS OF OPERATIONS
SERVICE EFFORTS AND ACCOMPLISHMENTS (Unaudited)
For the Year Ended June 30, 2010*
58
Fiscal Year
2008 Actual
Fiscal Year
2009 Actual
Fiscal Year
2010 Target
Fiscal Year
2010 Actual
Outcome Indicators
Percent of graduates employed full-time (d) 78.7% 83.0% N/A N/A
Percent of graduates employed part-time (d) 9.9% 8.0% N/A N/A
Percent of graduates unemployed and
not seeking employment (d) 5.0% 5.7% N/A N/A
Percent of graduates employed full-time
in a related field (d) 55.3% 70.4% N/A N/A
Percent of graduates earning a post-baccalaureate
degree (d) 49.3% 51.7% N/A N/A
Percent of graduates satisfied with career path
preparation provided by the undergraduate
education experience (d) 86.6% 94.2% N/A N/A
Percent of graduates satisfied with post-graduate
employment (d) 88.5% 96.2% N/A N/A
Six-year graduation rate: first-time, full-time
freshman (c) 18.4% 20.4% N/A N/A
Percent of baccalaureate degree recipients
employed or enrolled in further education
within one year of graduation N/A N/A N/A N/A
Annual number of students completing
requirements for initial teacher certification 471.0 451.0 N/A 436.0
External Benchmarks
Six-year graduation rate: Statewide average (c) 59.1% 59.8% N/A N/A
Instructional cost per credit hour: public
university average, all instructional levels
(in dollars) $ 301.59 $ 316.62 N/A N/A
Percent of total expenditures (all sources)
devoted to Instruction: public university
average 37.8% 41.7% 38.7% 40.6%
Percent of total expenditures (all sources)
devoted to Research and Public Service:
public university average 15.3% 12.1% 12.0% 11.0%
N/A - Information was not available or not applicable to the period presented.
* Information for the year ended June 30, 2011 not yet available.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
ANALYSIS OF OPERATIONS
SERVICE EFFORTS AND ACCOMPLISHMENTS (Unaudited)
For the Year Ended June 30, 2010*
59
Fiscal Year
2008 Actual
Fiscal Year
2009 Actual
Fiscal Year
2010 Target
Fiscal Year
2010 Actual
External Benchmarks (continued
Percent of total expenditures (all sources)
devoted to Academic and Student
Support: public university average 20.7% 22.6% 23.3% 25.7%
Percent of total expenditures (all sources)
devoted to all other programs: public
university average (e) 26.2% 23.5% 26.0% 22.7%
Undergraduate tuition and mandatory fees:
annual based on 30 credit hours, public
university average (in dollars) (f) $ 7,998 $ 8,964 $ 9,158 $ 9,908
Undergraduate tuition and mandatory fees as
a percentage of Illinois per capita
disposable income 25.4% 27.7% N/A N/A
Percent of undergraduate students receiving
some form of financial aid: public
university average 79.3% 66.2% N/A N/A
Percent of undergraduate students receiving
grant or scholarship assistance: public
university average 54.2% 56.6% N/A N/A
Percent of undergraduate students receiving
loan assistance: public university average 51.3% 27.3% N/A N/A
Percent of undergraduate students receiving
employment assistance: public university
average 21.4% 6.4% N/A N/A
Efficiency/Cost-Effectiveness
Instructional cost per credit hour, all
instructional levels (in dollars) $ 346.08 $ 354.62 N/A N/A
Percent of total expenditures (all sources)
devoted to Instruction 27.2% 26.5% 26.5% 25.8%
Percent of total expenditures (all sources)
devoted to Research and Public Service 21.9% 21.7% 21.7% 21.6%
Percent of total expenditures (all sources)
devoted to Academic and Student
Support 24.9% 25.2% 25.2% 26.8%
N/A - Information was not available or not applicable to the period presented.
* Information for the year ended June 30, 2011 not yet available.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
ANALYSIS OF OPERATIONS
SERVICE EFFORTS AND ACCOMPLISHMENTS (Unaudited)
For the Year Ended June 30, 2010*
60
Fiscal Year
2008 Actual
Fiscal Year
2009 Actual
Fiscal Year
2010 Target
Fiscal Year
2010 Actual
Efficiency/Cost-Effectiveness (continued)
Percent of total expenditures (all sources)
devoted to all other programs (e) 26.0% 26.6% 26.6% 25.8%
Undergraduate tuition and mandatory fees:
annual based on 30 credit hours
(in dollars) (f) $ 7,998 $ 10,404 $ 11,009 $ 11,009
Percent of undergraduate students receiving
some form of financial aid 64.6% 80.7% N/A N/A
Percent of undergraduate students receiving
grant or scholarship assistance 54.0% 54.7% N/A N/A
Percent of undergraduate students receiving
loan assistance 22.6% 54.7% N/A N/A
Percent of undergraduate students receiving
employment assistance 5.9% 19.2% N/A N/A
Footnotes
a. Total expenditures include expenditures from all appropriated funds (primarily general
funds), as well as from restricted and non-appropriated fund sources. Expenditures here
include appropriated capital spending which is excluded from some later measures in the
report.
b. Staff levels reference the number of staff years (a measure of staff effort over a 12-month
period) supported by respective fund sources. State appropriated fund sources include
University income funds.
c. Institutions with high ratios of part-time students will have lower graduation rates.
d. Data regarding graduate employment, attainment, and career path preparation/satifisfaction
was obtained from the Illinois Board of Higher Education's Baccalaureate follow-up Survey.
The Survey is conducted annually on a rolling cycle that surveys graduates one, five, and
nine years after graduation. Data provided reflects the class of 2003 five years out (fiscal
year 2008) and the class of 2000 nine years out (fiscal year 2009).
e. All other programs include Institutional Support, Operation and Maintenance of Physical
Plant, and Independent Operations, including student housing and food service operations.
f. Entry-level tuition and fees.
N/A - Information was not available or not applicable to the period presented.
* Information for the year ended June 30, 2011 not yet available.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
ANALYSIS OF OPERATIONS
SCHEDULE OF TUITION AND FEE WAIVERS (Unaudited)
For the Year Ended June 30, 2011
(In Thousands of Dolars)
Undergraduate Graduate
Tuition Waived Fees Waived Tuition Waived Fees Waived
Value of Value of Value of Value of
MANDATORY WAIVERS Recipients Waivers Recipients Waivers Recipients Waivers Recipients Waivers
Teacher Special Education 13 $ 56.3 13 $ 8.1 35 $ 81.9 35 $ 31.3
General Assembly 33 101.5 33 42.2 8 18.7 8 5.0
ROTC 31 112.1 31 6.3 - - - -
DCFS 6 35.7 6 5.9 - - - -
Children of Employees 42 90.9 - - - - - -
Senior Citizens 6 11.4 - - 2 1.9 - -
Unfunded Veterans Grant 230 577.7 230 368.8 48 97.0 48 6.2
Unfunded National Guard 23 86.9 23 0.5 5 10.4 5 0.9
Subtotal 384 1,072.5 336 431.8 98 209.9 96 43.4
DISCRETIONARY WAIVERS
Faculty/Administrators - - - - 53 82.7 53 19.7
Civil Service 72 97.2 72 22.2 85 132.6 85 18.1
Academic/Other Talent 423 932.7 - - 291 347.1 - -
Foreign Exchange Students 55 421.8 55 72.1 19 81.8 19 30.3
Student Need-Financial Aid - - - - 21 25.0 - -
Student Need-Special Programs 73 127.4 - - - - - -
Cooperating Professionals - - - - 99 106.5 - -
Research Assistants - - - - 15 60.6 15 15.2
Teaching Assistants - - - - 30 68.1 30 35.4
Other Assistants - - - - 44 155.1 44 42.7
Interinstitutional/Related Agencies 33 80.5 33 7.3 6 17.3 6 2.5
Contract/Training Grants - - - - 119 190.6 119 40.7
Subtotal 656 1,659.6 160 101.6 782 1,267.4 371 204.6
TOTAL 1,040 $ 2,732.1 496 $ 533.4 880 $ 1,477.3 467 $ 248.0
61
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
ANALYSIS OF OPERATIONS
UNIVERSITY BOOKSTORE INFORMATION (Unaudited)
For the Year Ended June 30, 2011
62
The summary of University bookstore information for fiscal year 2011 is as follows:
Contracted/Rents to Students/University operated Contracted
Contractor Beck’s Bookstore, Inc.
Contract term 07/01/01 - 06/30/11
Amount of gross sales for bookstore $5,276,808
Amount (if any) to be paid to bookstore by the University None
Commissions $361,394
Commission terms 8.0% of Net Sales
Given exclusive rights Yes
Competition/“Other” nearby/On-campus bookstores Barnes and Noble
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SPECIAL DATA REQUIREMENTS FOR AUDITS OF UNIVERSITIES
UNIVERSITY REPORTING IN ACCORDANCE WITH UNIVERSITY GUIDELINES
For the Year Ended June 30, 2011
63
In accordance with an Office of the Auditor General, July 25, 2000, memorandum entitled
“Matters Regarding University Audits” (Memorandum), certain supplemental data is required to
be reported for University audits. The table below cross references the memorandum
requirements (indicated by number and letter paragraph references) to the University financial
statements and audit reports for the year ended June 30, 2011, where such special data is found.
Compliance Findings
13(a) There were no findings during the current year.
Indirect Cost Reimbursements
13(b) A statement of the sources and applications of indirect cost reimbursements is included
on pages 50 and 51 of this report.
13(c) The University’s calculation sheet for indirect cost carry-forward is included in this
report on page 65. The excess funds were deposited to the Income Fund within 45 days
after the end of the lapse period.
Tuition Charges and Fees
13(d) No instances of tuition being diverted to auxiliary enterprise operations were noted.
Auxiliary Enterprises, Activities and Accounting Entities
13(e) Identification of each specific accounting entity and descriptions of the sources of
revenue and purpose of each are presented in this report on page 67.
13(f) Entity financial statements are presented on pages 68 and 69 of this report. The entity
financial statements should be read in conjunction with the University’s audited financial
statements for the year ended June 30, 2011.
13(g) The University’s calculation sheet for current excess funds is presented in this report on
page 66. The excess funds were deposited into the Income Fund within 45 days after the
end of the lapse period.
13(h) Support received by Auxiliary Enterprises from State appropriated funds for retirement
and group insurance benefits amounted to approximately $164,738 and $491,568,
respectively, for the year ended June 30, 2011.
13(i) A Statement of Revenues and Expenses for Various Bond Indenture Required Accounts
is presented on page 35 of the financial audit report.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SPECIAL DATA REQUIREMENTS FOR AUDITS OF UNIVERSITIES
UNIVERSITY REPORTING IN ACCORDANCE WITH UNIVERSITY GUIDELINES
For the Year Ended June 30, 2011
64
Auxiliary Enterprises, Activities and Accounting Entities (continued)
13(j) The revenue bond fund accounting conforms to the terms of the bond issue, including all
covenants thereto.
13(k) A list and description of non-instructional facilities reserves are presented on page 48 of
the financial audit report.
University Related Organizations
13(l) The University recognizes the Northeastern Illinois University Foundation (the
“Foundation”) and the Northeastern Illinois University Alumni Association (the
"Association") as University related organizations. The University has designated no
organization as “Independent Organizations” as defined in Section VII of the University
Guidelines.
13(m) The Foundation and the Association do not pay the University for services provided.
Compensation is in the form of University support. See page 70 and 71 of this report for
details related to services and support provided.
13(n) The University does not pay the Foundation and the Association for services provided.
Compensation is in the form of services and facilities provided. See footnote 7 on page
39 of the financial audit report for details related to services and support provided.
13(o) At June 30, 2011, there were no unreimbursed subsidies to the Foundation and the
Association from the University or appropriated funds.
13(p) There is no debt financing provided by the Foundation and the Association.
Other Topics
13(q) Schedules of cash and investments held by the University are presented in the Analysis of
Significant Account Balances section of this report on pages 46 and 47, and in footnote 2
on page 26 of the financial audit report.
13(r) Income from the investment of pooled funds is credited to the University’s Income Fund.
Income from the investment of non-pooled funds is credited to the fund making the
investment.
13(s) Costs per full-time equivalent student are presented on page 54 in this report.
13(t) Neither the University nor the University Related Organizations has purchased any real
estate during the year ended June 30, 2011.
13(u) In September 2010, the University issued Certificates of Participation Series 2010 in the
amount of $6,060,000. The Series 2010 Certificates were issued to finance the
acquisition of energy conserving improvements at the University. See footnote 6 on page
37 of the financial audit report.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SPECIAL DATA REQUIREMENTS FOR AUDITS OF UNIVERSITIES
SCHEDULE OF INDIRECT COST FUNDS TO BE DEPOSITED INTO
THE UNIVERSITY INCOME FUND AS REQUIRED BY THE 1982
UNIVERSITY GUIDELINES (AMENDED 1997)
For the Year Ended June 30, 2011
1. Cash and cash equivalents balance:
Cash and cash equivalents $ 1,521,914
2. Allocated reimbursements:
Total indirect cost reimbursements allocated for
expenditure for the fiscal year completed:
$1,798,584: enter 30% of this amount 539,575
3. Unallocated reimbursements:
Lesser of the actual unallocated indirect cost
reimbursements for the year completed or 10% of
total indirect cost allocations for the year completed 179,858
4. Encumbrances and current liabilities paid in the lapse period:
Current liabilities and encumbrances 128,382
5. Indirect cost carry-forward 847,815
EXCESS CASH TO BE DEPOSITED TO THE UNIVERSITY
INCOME FUND $ 674,099
65
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SPECIAL DATA REQUIREMENTS FOR AUDITS OF UNIVERSITIES
OTHER ENTITIES AND AUXILIARY ENTERPRISES - CALCULATION SHEET FOR CURRENT EXCESS FUNDS
For the Year Ended June 30, 2011
Student Other Other Total
Student Public Service and Staff Service Educational Educational Student Parking Lot Auxiliary Auxiliary
Fee Programs Activities Services Departments Services Contracts Union Administration Enterprises Enterprises
1. Current available funds
Cash A. $ 3,810,219 $ 151,643 $ 505,133 $ 412,097 $ 124,955 $ 177,848 $ 412,724 $ 1,233,371 $ 931,194 $ 2,577,289
2. Working capital allowance
Highest month's expenditures $ 2,876,538 $ 91,313 $ 1,794,056 $ 1,155,982 $ 96,491 $ 4,625 $ 165,799 $ 583,100 $ 197,422 $ 946,321
Encumbrances and current liabilities paid in lapse period 639,515 28,026 3 3,320 190,865 7 ,089 - 36,179 40,517 1 8,096 9 4,792
Deferred income 298,267 - 9 2,835 - - - 50,926 95,558 - 146,484
Refundable deposits - 18 - - - - 2,436 - 266,448 268,884
Working capital allowance B. $ 3,814,320 $ 119,357 $ 1,920,211 $ 1,346,847 $ 103,580 $ 4,625 $ 255,340 $ 719,175 $ 481,966 $ 1,456,481
3. Current excess funds (margin of compliance):
Deduct B from A C. $ (4,101) $ 32,286 $ (1,415,078) $ (934,750) $ 21,375 $ 173,223 $ 157,384 $ 514,196 $ 449,228 $ 1,120,808
4. Calculation of income fund remittance:
An entity may offset excess capital or
current funds within the entity.
Enter the amount to be offset, if any, here D. (1,056,732) (1,233,086) ( 205,103) (1,447,727)
Enter the algebraic sum of C and D and remit
the amount due, if any, for deposit in the Income Fund $ (1,024,446) $ (1,211,711) $ ( 31,880) $ (326,919)
Excess Funds Offset
Indentured capital reserves:
Allowable capital reserves $ 1,230,163 $ 1,322,676 $ 245,929 $ 2,868,357
Actual capital reserves 173,431 89,590 40,826 1,420,630
Total Excess Funds Offset $ 1,056,732 $ 1,233,086 $ 205,103 $ 1,447,727
Auxiliary Enterprises
66
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SPECIAL DATA REQUIREMENTS FOR AUDITS OF UNIVERSITIES
DESCRIPTION OF ACCOUNTING ENTITIES
For the Year Ended June 30, 2011
67
Accounting entities as defined by the 1982 (Amended 1997) Legislative Audit Commission
Guidelines and their primary revenue sources are as follows:
Activities
Student Fee Programs are organized student activities funded primarily by student fees.
Public Service Activities are noncredit conferences, seminars, short courses and other services
offered to the public for a fee. The primary revenue source is the fee charged to participants.
Student and Staff Services are services offered at a charge to University staff and students.
Service Departments provide products or services to organizational units within the University.
Charges for services provide the revenue.
Other Educational Services are activities related to the educational process which incidentally
generate products or services made available to the public for a charge.
Educational Contracts are courses for credit which are presented by, and have the course content
coordinated with, a government unit, community organization or private business.
Auxiliary Enterprises
Student Union is an operation financed by revenue bonds with principal operations, including
food service, conference and assembly space, student card services, and information services.
Parking Lot Administration provides the operation, maintenance, and development of the
University parking facilities. Revenues come from charges for parking and fines.
Other Auxiliary Enterprises are self-supporting activities that include vending machines, child
care, and bookstore.
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SPECIAL DATA REQUIREMENTS FOR AUDITS OF UNIVERSITIES
OTHER ENTITIES AND AUXILIARY ENTERPRISES - BALANCE SHEETS
For the Year Ended June 30, 2011
Student Other Other
Student Indirect Public Service and Staff Service Educational Educational Student Parking Lot Auxiliary
Fee Programs Cost Activities Services Departments Services Contracts Union Administration Enterprises Totals
ASSETS
Current fund assets:
Cash and investments $ 3,810,219 $ 1,521,914 $ 151,643 $ 505,133 $ 412,097 $ 124,955 $ 177,848 $ 412,724 $ 1,233,371 $ 931,195 $ 9,281,099
Accounts receivable - net 270,684 - - 292,980 - - - 163,255 271,985 38,621 1,037,525
Prepaid expenses 16,412 1,578 - 536 - - - - - - 18,526
Inventories - - - - 16,611 - - 1,559 - - 18,170
Total 4,097,315 1,523,492 151,643 798,649 428,708 124,955 177,848 577,538 1,505,356 969,816 10,355,320
Plant fund assets:
Cash and investments 2,738,148 - 173,431 (44,618) 2,070,488 89,590 40,827 467,051 446,752 506,827 6,488,496
Accounts receivable - net - - - - - - - - - - -
Land and land improvements 564,646 - 284,635 155,273 246,256 209,773 3,492 634,433 4,557,154 367,888 7,023,550
Buildings and construction in progress 9,751,347 - 5,254,171 1,186,935 2,303,739 4,507,356 684,880 5,558,226 15,715,935 3,367,974 48,330,563
Equipment 3,281,725 - 25,984 102,091 5,879,967 2,099,448 277,692 548,028 877,464 95,060 13,187,459
Total 16,335,866 - 5,738,221 1,399,681 10,500,450 6,906,167 1,006,891 7,207,738 21,597,305 4,337,749 75,030,068
TOTAL ASSETS $ 20,433,181 $ 1,523,492 $ 5,889,864 $ 2,198,330 $ 10,929,158 $ 7,031,122 $ 1,184,739 $ 7,785,276 $ 23,102,661 $ 5,307,565 $ 85,385,388
LIABILITIES
Current fund liabilities:
Accounts payable and accrued liabilities $ 639,515 $ 128,382 $ 28,026 $ 33,320 $ 190,865 $ 7,090 $ - $ 88,090 $ 71,249 $ 37,032 $ 1,223,569
Deferred income 298,267 351 84 92,835 - - - 50,926 95,558 - 538,021
Refundable deposits - - 1 8 - - - - 2,436 - 266,448 268,902
Total 937,782 128,733 28,128 126,155 190,865 7,090 - 141,452 166,807 303,480 2,030,492
Plant fund liabilities:
Accounts payable and accrued liabilities 8,751 - - - - 58 - 223,806 71,767 - 304,382
Revenue bonds payable - - - - - - - 550,000 16,970,000 - 17,520,000
Total 8,751 - - - - 58 - 773,806 17,041,767 - 17,824,382
Total liabilities 946,533 128,733 28,128 126,155 190,865 7,148 - 915,258 17,208,574 303,480 19,854,874
Fund balance:
Current 3,159,533 1,394,759 123,515 672,494 237,843 117,865 177,848 436,086 1,338,549 666,336 8,324,828
Reserves - Plant 2,729,397 - 173,431 (44,618) 2,070,488 89,532 40,827 243,245 374,985 506,827 6,184,114
Investment in Plant 13,597,718 - 5,564,790 1,444,299 8,429,962 6,816,577 966,064 6,190,687 4,180,553 3 ,830,922 51,021,572
Total fund balance 19,486,648 1,394,759 5,861,736 2,072,175 10,738,293 7,023,974 1,184,739 6,870,018 5,894,087 5,004,085 65,530,514
TOTAL LIABILITIES AND FUND BALANCE $ 20,433,181 $ 1,523,492 $ 5,889,864 $ 2,198,330 $ 10,929,158 $ 7,031,122 $ 1,184,739 $ 7,785,276 $ 23,102,661 $ 5,307,565 $ 85,385,388
Auxiliary Enterprises
68
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SPECIAL DATA REQUIREMENTS FOR AUDITS OF UNIVERSITIES
OTHER ENTITIES AND AUXILIARY ENTERPRISES - SCHEDULE OF CHANGES
IN FUND BALANCES - CURRENT FUNDS
For the Year Ended June 30, 2011
Accounting Entities and Balance Expenditures Balance
Auxiliary Enterprises June 30, 2010 Revenues and Transfers June 30, 2011
Student fee programs $ 3,262,019 $ 8 ,303,845 $ 8,406,331 $ 3,159,533
Indirect cost 1,429,033 1,542,578 1,576,852 1,394,759
Public service activities 143,470 343,786 363,741 123,515
Student and staff services 577,477 3,644,399 3,549,382 672,494
Service departments 1,455,771 1,738,794 2,956,722 237,843
Other educational services 156,843 57,824 96,802 117,865
Educational contracts 9,871 174,000 6,023 177,848
Student union (115,496) 1,761,117 1,209,535 436,086
Parking lot administration 953,424 2,577,412 2,192,287 1,338,549
Other auxiliary enterprises 663,332 1,174,610 1,171,606 666,336
TOTAL $ 8,535,744 $ 21,318,365 $ 21,529,281 $ 8,324,828
69
STATE OF ILLINOIS
NORTHEASTERN ILLINOIS UNIVERSITY
SPECIAL DATA REQUIREMENTS FOR AUDITS OF UNIVERSITIES
SUMMARY OF FOUNDATION PAYMENTS TO THE UNIVERSITY
For the Year Ended