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STATE OF ILLINOIS
EASTERN 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
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
COMPLIANCE EXAMINATION
(In Accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended June 30, 2011
TABLE OF CONTENTS
Page
University Officials 1
Management Assertion Letter 2
Compliance Reports
Summary 4
Accountants’ Reports
Independent Accountants’ Report on State Compliance, on Internal Control over
Compliance, and on Supplementary Information for State Compliance
Purposes
7
Independent Auditors’ Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
11
Independent Auditors’ Report on Compliance with Requirements that could have a
Direct and Material Effect on Each Major Program, on Internal Control over
Compliance, and on the Schedule of Expenditures of Federal Awards in
Accordance with OMB Circular A-133
13
Schedule of Findings and Questioned Costs
Summary of Auditors’ Results 16
Current Findings – Government Auditing Standards 17
Current Findings – Federal and Questioned Costs 22
Current Findings – State Compliance 24
Prior Finding Not Repeated 30
Financial Statement Report
The University’s financial statement report for the year ended June 30, 2011, which
includes the report of independent auditors, management discussion and analysis, 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 the basic financial statements performed in accordance with
Government Auditing Standards has been issued separately.
Supplementary Information for State Compliance Purposes
Summary 31
Fiscal Schedules and Analysis
Schedule of Expenditures of Federal Awards 33
Notes to the Schedule of Expenditures of Federal Awards 39
Schedule of Appropriations, Expenditures, Lapsed and Reappropriated Balances 42
Comparative Schedule of Net Appropriations, Expenditures, Lapsed and
Reappropriated Balances
43
Comparative Schedule of Income Fund Revenues and Expenses 44
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
COMPLIANCE EXAMINATION
(In Accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended June 30, 2011
TABLE OF CONTENTS
Page
Schedule of Changes in Capital Assets 45
Auxiliary Enterprises and Activities, Financial Statements by Functional Entity
Designated Funds - Auxiliary Activities:
Balance Sheet by Entity 46
Current Funds Statement of Changes in Fund Balances by Entity 47
Statement of Changes in Plant Fund Balances by Entity 48
Auxiliary Enterprise Funds - Revenue Bonds:
Current Funds, Unrestricted, Balance Sheet by Entity 51
Statement of Current Funds, Unrestricted, Revenues and Expenditures
by Entity
52
Statement of Current Funds, Unrestricted, Statement of Changes in
Fund Balances by Entity
53
Plant Funds, Balance Sheet by Entity 54
Plant Funds, Statement of Changes in Fund Balances by Entity 56
Auxiliary Enterprise Funds - Other:
Balance Sheet by Entity 58
Current Funds Statement of Revenues and Expenditures by Entity 59
Current Funds Statement of Changes in Fund Balances by Entity 60
Plant Funds Statement of Changes in Fund Balances by Entity 61
Analysis of Revenues, Expenses and Changes in Net Assets 62
Analysis of Significant Variations in Account Balances 64
Analysis of Significant Lapse Period Spending 66
Schedule of Accounts Receivable 67
Schedule of Cash and Cash Equivalents and Investments 68
Summary of Indirect Cost Reimbursement:
Statement of Sources and Applications 69
Calculation Sheet for Indirect Cost Carry-Forward 70
Analysis of Operations
University Functions and Planning Program 71
Average Number of Employees 74
Service Efforts and Accomplishments (unaudited) 75
Schedule of Federal Expenditures, Nonfederal Expenses and New Loans 76
Undergraduate Tuition and Fee Waivers (unaudited) 77
Graduate Tuition and Fee Waivers (unaudited) 78
Bookstore and Textbook Rental Information (unaudited) 79
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
COMPLIANCE EXAMINATION
(In Accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended June 30, 2011
TABLE OF CONTENTS
Page
University Guidelines 1982, as amended 1997
Special Data Requirements for Audits of Universities 80
Summary of Eastern Illinois University Foundation Payments to the University 83
Summary of Eastern Illinois University Alumni Association, Inc. Payments to the
University
84
Description of Accounting Entities, Sources of Revenue and Purpose of Each Entity 85
Calculation Sheets for Current Excess Funds 87
Schedule of Accrued Liability for Employee Compensated Absences (unaudited) 90
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
UNIVERSITY OFFICIALS
June 30, 2011
President Dr. William L. Perry
Provost and Vice President for Academic Affairs Dr. Blair M. Lord
Vice President for Business Affairs Dr. William V. Weber
Vice President for Student Affairs Dr. Daniel P. Nadler
Vice President for University Advancement Mr. Robert K. Martin
Director of Business Services and Treasurer Mr. Paul A. McCann, CPA
General Counsel Mr. Robert L. Miller
Director of Internal Auditing Ms. Sharon K. McRaven, CPA, CIA
BOARD OF TRUSTEES (as of June 30, 2011)
Chairperson Mr. Leo Welch
Vice Chairperson Dr. Robert Webb
Secretary Mr. Roger Krotochvil
Member Pro-tem Mr. William O’Rourke (A)
Member Ms. Julie Nimmons (B)
Member Vacant
Member Vacant
Student Member Ms. Christine Anderson
(A) term expired, continues to serve until a successor is appointed
(B) term expired, continues to serve until a successor is appointed
University offices are located at:
600 Lincoln Avenue
Charleston, Illinois 61920
1
2
~
Vice President for Business Affairs
and Treasurer, Board of Trustees
600 Lincoln Avenue
Charleston, Illinois 61920-3099
Officeo (217) 581-2921
Faxo (217) 581-3290
:.:=_-==-c~:c=_:c__ _____ - ·----------
EASTERN
ILLINOIS
UNIVERSITY
MANAGEMENT ASSERTION LETIER
January31, 2012
E. C. Ortiz & Co., LLP
Certified Public Accountants
333 S. Des Plaines, Suite 2-N
Chicago, lllinois 60661
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 State of lllinois, Eastern lllinois University. We are responsible for and we have established
and maintained an effective system of internal controls over compliance requirements, except as
disclosed to the auditors during the engagement We have performed an evaluation of the State
of illinois, Eastern lllinois University's compliance with the following assertions during the year
ended June 30, 201 L Based on this evaluation, we assert that during the year ended June 30,
2011, the State oflllinois, Eastern lllinois University has materially complied with the assertions
below.
A The State oflllinois, Eastern lllinois 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 State of lllinois, Eastern lllinois University has obligated, expended, received and used
public funds of the State in accordance with any limitations, restrictions, conditions or
mandatory directions imposed by law upon such obligation, expenditure, receipt or use.
C. The State of lllinois, Eastern lllinois University has complied, in all material respects, with
applicable laws and regulations, including the State uniform accounting system, in its
financial and fiscal operations.
D. State revenues and receipts collected by the State of Illinois, Eastern Illinois 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.
3
E. Money or negotiable securities or similar assets handled by the State of Illinois, Eastern
Illinois 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,
State oflllinois, Eastern Illinois University
Dr. William Weber, Vice President for Business Affairs
Mr. Paul McCann, Director of Business Services and Treasurer
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
COMPLIANCE REPORT SUMMARY
For the Year Ended June 30, 2011
The compliance testing performed during this examination was conducted in accordance with
Government Auditing Standards and in accordance with the Illinois State Auditing Act.
ACCOUNTANTS’ REPORTS
The Independent Accountants’ Report on State Compliance, on Internal Control Over
Compliance and on Supplementary Information for State Compliance Purposes does not
contain scope limitations, disclaimers, or other significant non-standard language.
SUMMARY OF FINDINGS
Number of
Current
Report
Prior
Report
Findings 8 5
Repeated findings 4 1
Prior recommendations implemented or not
repeated
1 4
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Item No. Page Description Finding Type
FINDINGS (GOVERNMENT AUDITING STANDARDS)
11-1 17 Inaccurate Accounting for Participation in a
Public Entity Risk Pool
Significant deficiency
11-2 20 Inaccurate Capital Asset Accounting and
Depreciation Calculations
Significant deficiency
FINDINGS AND QUESTIONED COSTS (FEDERAL COMPLIANCE)
11-3 22 Noncompliance with Verification Requirements Noncompliance and
Significant deficiency
4
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
COMPLIANCE REPORT SUMMARY
For the Year Ended June 30, 2011
FINDINGS (STATE COMPLIANCE)
11-4 24 Failure to Provide a Comprehensive Listing of
Laws and Regulations
Noncompliance and
significant deficiency
11-5 25 Late Deposit of Receipts and Refunds Noncompliance and
significant deficiency
11-6 26 Delinquent Reporting of Bond Activity Noncompliance and
significant deficiency
11-7 28 Timesheets not Required Noncompliance and
significant deficiency
11-8 29 Noncompliance with Ethics Training
Requirements
Noncompliance and
significant deficiency
In addition, the following findings which are reported as current findings relating to
Government Auditing Standards also meet the reporting requirement for State Compliance.
11-1 17 Inaccurate Accounting for Participation in a
Public Entity Risk Pool
Noncompliance and
significant deficiency
11-2 20 Inaccurate Capital Asset Accounting and
Depreciation Calculations
Noncompliance and
significant deficiency
PRIOR FINDING NOT REPEATED
A 30 Noncompliance with Federal Reporting Requirements
5
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
COMPLIANCE REPORT SUMMARY
For the Year Ended June 30, 2011
EXIT CONFERENCE
The findings and recommendations appearing in this report were discussed with University
personnel at an exit conference on January 23, 2012. Attending were:
Eastern Illinois University
William Weber, Vice President for Business Affairs
Paul McCann, Director of Business Services and Treasurer
Michael Hutchinson, Interim Assistant Comptroller
Tami Babbs, Interim Assistant Comptroller
Sherry McRaven, Director of Internal Audit
Kathy Reed, Assistant Vice President - Information Technology Services
Office of the Auditor General
Daniel J. Nugent, Audit Manager
E. C. Ortiz & Co. LLP
Marites Sy, Partner
Shirley Trinidad, Manager
The responses to the recommendations were provided by Paul McCann, Director of Business
Services and Treasurer, in a letter dated January 31, 2012.
6
E.C. ORTIZ & CO., LLP
CERTIFIED PUBLIC ACCOUNTANTS
Independent Accountants' Report on State Compliance,
on Internal Control over Compliance, and on
Supplementary Information for State Compliance Purposes
Honorable William G. Holland
Auditor General
State of Illino1 s
and
The Board of Trustees
State of Illinois- Eastern Illinois University
Compliance
As Special Assistant Auditors for the Auditor General, we have examined the State of illinois
- Eastern Illinois University's 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 (Audit Guide) as adopted by the Auditor General, during the year
ended June 30, 2011. The management ofthe State of Illinois- Eastern Illinois University is
responsible for compliance with these requirements. OUT responsibility is to express an
opinion on the State of Illinois - Eastern Illinois University's compliance based on our
examination.
A. The State of Illinois - Eastern Illinois 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 State of Illinois- Eastern Illinois University has obligated, expended, received, and
used public funds of the State in accordance with any limitations, restrictions,
conditions or mandatory directions imposed by law upon such obligation, expenditure,
receipt or use.
C. The State of Illinois - Eastem Illinois University has complied, in all material respects,
with applicable laws and regulations, including the State uniform accounting system, in
its financial and ·fiscal operations.
D. State revenues and receipts collected by the State of Illinois- Eastern Illinois 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.
333 SOUTH DES PLAINES STREET, SUITE 2-N CHICAGO. ll 60661 [d: 3 12.876.1900 fax: 312.876.1911
7
E. Money or negotiable securities or similar assets handled by the State of Illinois -
Eastern Illinois University on behalf of the State or held in trust by the State of illinois -
Eastern Illinois University have been properly and legally administered and the
accounting and recorclkeeping relating thereto is proper, accurate, and in accordance
with law.
We conducted our examination in accordance with attestation standards established by the
American Institute of Certified Public Accountants; the standards applicable to attestation
engagements contained in Government Auditing Standards issued by the Comptroller General
of the United States; the Illinois State Auditing Act (Act); and the Audit Guide as adopted by
the Auditor General pmsuant to the Act; and, accordingly, included exan'lining, on a test basis,
evidence about the State of Illinois - Eastern Illinois University's compliance with those
requirements listed io the fll-st paragraph of this repmi and performing such other procedmes as
we considered necessary in the circumstances. We believe that m.u· examination provides a
reasonable basis for our opinion. Our examination does not provide a legal determination on the
State oflllinois- Eastern Illinois University's compliance with specified requirements.
In our opinion, the State of illinois - Eastem Illinois 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 om procedm:es disclosed instances of
noncompliance with the requirements, which are required to be reported in accordance with
criteria established by the Audit Guide, issued by the Illinois Office of the Auditor General
and which are described in the accompanying schedule of findings and questioned costs as
items 11-1, 11-2; 11-4, 11-5, 11-6, 11-7, and 11-8.
Intemal Control
Management of tl1e State of illinois - Eastern Illinois University is responsible for
establishing and maintaining effective iuternaJ control over compliance with the requirements
listed in the first paragraph of this repmt. In planning and performing om examination, we
considered the State of Illinois - Eastern Illinois University's internal control over
compliance with the requirements listed in the first paragraph of this repmt as a basis for
designing our examination procedures for the purpose of expressing om 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 pmpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly,
we do ·not express an opinion on the effectiveness of the State of Illinois - Eastem Illinois
University's internal control over compliar1ce.
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 repmt 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
8
noncompliance with a requirement listed in the first paragraph of this report will not be
prevented, or detected and corrected, ou a timely basis.
Our consideratiou of internal control over compliance was for the limited purpose described
in the first paragraph of this sectiou and was not designed to ideutify all deficiencies in
intemal control over compliance that might be deficiencies, significant deficieucies, 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 intemal control over compliance that we considered to be
significant deficiencies as described in the accompanying schedule of findings and question
costs as items 11-1, 11-2, 11-4, 11-5, 11-6, 11-7 and 11-8. A significant deficiency in an
entity's internal control over compliance is a deficiency, or a combination of deficiencies, in
internal control over compliance that is less severe than a material weakness in internal
control over compliance, yet important enough to merit attention by those charged with
governance.
As required by the Audit Guide, immaterial findings excluded from this repmt have been
reported in a separate letter to yom office.
The State of Illinois- Eastern Illinois 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 State of Illinois - Eastern Illinois University's responses and,
accordingly, we express no opinion on the responses.
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 State of illinois - Eastern Illinois University
and its aggregate discretely presented component units as of and for the year ended June 30,
2011, which collectively comprise the State of illinois - Eastern illinois University's basic
financial statements, and have issued our report thereon dated January 31, 2012. Our report
was modified to include reference to other auditors. Other auditors audited the financial
statements of the State of Illinois - Eastern Illinois University's discretely presented
component units, as described in om report on the State of illinois - Eastern Illinois
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 State of illinois - Eastern illinois 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 fmancial statements for the year ended June 30, 2011 talcen as
a whole.
We have also previously audited, in accordance with auditing standards generally accepted in
the United States, the State of Illinois - Eastern Illinois University's basic financial statements
9
for the year ended June 30, 2010. In our report dated April 1, 2011 of prior repmt on basic
financial statements, we expressed unqualified opinions on the respective financial statements of
the business-type activities and the aggregate discretely presented component units. Our
report was modified to include a reference to other auditors. Other auditors audited the
fmancial statements of the State of Illinois -Eastern illinois University's discretely presented
component units, as desc1ibed in our report on the State of Illinois - Eastern illinois
University's 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.
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, the State of
Illinois - Eastern Illinois University's management, and federal awarding agencies and passthrough
entities and is not intended to be and should not be used by anyone other than these
specified parties.
E· (!,. ~?J ~ Co.) LlP
January 31,2012
10
E.C. ORTIZ & CO., LLP
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
Honorable William G. Holland
Auditor General
State of Illinois
and
The Board of Trustees
State of Illinois- Eastern Illinois University
As Special Assistant Auditors for the Auditor General, we have audited the financial statements
of the business-type activities of the State of Illinois - Eastern Dlinois 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 1he State of
Illinois - Eastem Illinois University's basic financial statements and have issued Otll' report
thereon dated Januruy 31, 2012. Om rep01t 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 fu1ancial statements of the University's discretely presented component
units, as described in OW' report on the University's financial statements. This report does not
include the results of the other auditors' testing of internal control over financial rep01ting or
compliance and other matters that are reported on separately by those auditors.
Intemal Control Over Financial Reporting
Management of the State of Illinois - Eastern Illinois University is responsible for establishing
and maintaining effective intemal contro] over financial reporting. ln plruming and performing
our audit, we considered tl1e State of Ulinois - Eastem Illinois University's intemal control over
financial reporting as a basis for designing our auditing procedures for the purpose of expressing
our opinion on the fmancial statements and not for the purpose of expressing an opinion on the
effectiveness of the State of Illinois - Eastem illinois University's intemal control over financial
reporting. Accordingly, we do not express an opinion on the effectiveness of the State of
illinois- Eastern illinois University's intemal 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 n01mal 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
333 SO UTH DES PLAINES STREET, SUITE 2-N CHICAGO , IL 60661
11
te l: 312.87 6. 1900 fax : 3 12 . 8 7 6.1911
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 certain deficiencies in internal control over financial
reporting, desctibed in findings 11-1 and 11-2 in the accompanying schedule of fmdings, that
we consider to be significant deficiencies in internal control over financial reporting. A
sign~ficant deficiency is a deficiency, or a combination of deficiencies, in intemal 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 State of Illinois - Eastern Illinois
University's financial statements are free of material misstatement, we perfonned 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 State of Illinois- Eastern Illinois University's responses to the findings identified in our
audit are described in the accompanying schedule of fmdings. We did not audit the State of
Illinois -Eastern illinois 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, the State of
Illinois - Eastem illinois University management, and federal awarding agencies and passthrough
entities and is not intended to be and should not be used by anyone other than these
specifi~d parties.
f. C. ~-- ~ ev. L-1--P
January 31, 20;;-/
12
E.C. ORTIZ & CO .• LLP
C ERTI FIED PUBLIC ACCOUNTANTS
Independent Auditors' Report on Compliance with Requirements that could have a
Direct and Material Effect on Each Major Program, on Internal Control over
Compliance, and on the Schedule of Expenditures of Federal Awards in
Accordance with OMB Circular A-133
Honorable William G. Holland
Auditor General
State of Illinois
and
The Board of Trustees
State oflllinois - Eastern Illinois University
Compliance
We have audited the State oflllinois- Eastern Illinois University's compliance with the types of
compliance requirements desclibed in the US. Office of A1anagement and Budget (OMB)
Circular A -13 3 Compliance Supplement that could have a direct and material effect on each of
the State of Illinois - Eastem Illinois University's major federal programs for the year ended
June 30, 2011. The State of Illinois -Eastern Illinois University's major federal programs are
identified in the summruy of auditors' 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 State of
Illinois- Eastem Illinois University's management. Our responsibility is to express an opinion
on the State of illinois- Eastern illinois University's compliance based on our audit.
The Schedule of ExpenditlU'es of Federal Awards and our audit described below does not
include expenditures of federal awru·ds for those agencies determined to be component units of
the State of Illinois- Eastem illinois University for financial statement pmposes.
We conducted om· 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
Olvffi Circular A-133, Audits of States, Local Goverrrments, and Non-Profit Organizations.
Those standards and Olvffi Circular A-133 require that we plan and perform the audit to obtain
reasonable asslU'a.J.1Ce about whether noncompliance with the types of compliance requirements
refened to above that could have a direct and material effect on a major federal program
OCCUlTed. An audit includes examining, on a test basis, evidence about the State of Illinois -
Eastem Illinois University's compliance with those requiJ:ements and performing such other
333 SOUTH DES PLAINES STREET , SUITE 2-N CHICAGO. IL 60661 te l: 312 . 876.1900 fax : 312.876 .1911
13
procedures as we considered necessary in the circumstances. We believe that our audit provides
a reasonable basis for oUl· opinion. Our audit does not provide a legal determination of the State
oflllinois- Eastern Illinois University's compliance with those requirements.
In our opinion, the State of illinois - Eastern Illinois University complied, in all rnatetial
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 an instance of noncompliance with
those requirements, which is required to be reported in accordance with Olv1B Circular A-133
and which is described in the accompanying schedule of :findings and questioned costs as item
11-3.
Intemal Control Over Compliance
The management of the State of Tilinois - Eastern illinois University is responsible for
establishing and maintaining effective internal control over compliance with the requirements of
laws, regulations, contracts, and grants applicable to federal programs. In planning and
performing our audit, we considered the State of fllinois - Eastern lllinois University's internal
control over compliance with the 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 repmt on intemal control over compliance in accordance
with Olv1B Circular A-133, but not for the purpose of expressing an opinion on the effectiveness
of intemal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the State of illinois - Eastern ILLinois University's internal control over
compliance.
A deficiency in internal control over com.pliance exists when the design or operation of a
control over compliance does not allow management or employees, iri 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 we a/mess in
internal conttol 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
wealmesses. We did not identify any deficiencies in internat control over compliance that we
consider to be matetial wealmesses, as defined above. However, we identified certain
deficiency in internal control over compliance that we consider to be a significant deficiency as
described in the accompanying Schedule of Findings and Questioned Costs as item 11-3. A
significant deficiency in internal control over compliance is a deficiency, or a combipation 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 impmtant enough to merit attention by those charged with governance.
14
Schedule ofExpenditures ofFederal Awards
We have audited the financial statements of the business-type activities of the State of IllinoisEastern
illinois University as of and for the year ended June 30, 2011, and have issued our
report thereon dated January 31, 2012. Our report was modified to include a reference to other
auditors. Other auditors audited the financial statements of the State of Illinois - Eastern Illinois
University's discretely presented component units, as described in our report on the State of
Tilinois - Eastem Illinois University's financial statements. Om audit was pe1formed for the
purpose of forming opinions on the financial statements that collectively comprise State of
Illinois - Eastern Illinois University's basic financial statements. The accompanying Schedule
of Expenditures of Federal Awards is presented for purposes of additional analysis as required
by O:MB Circular A-133 and is not a required part of the basic fmancial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated in all material respects, in relation to the
basic financial statements taken as a whole.
The State of Illinois- Eastem Illinois University's response to the finding identified in our audit
is described in the accompanying schedule of findings and questioned costs. We did not audit
State of illinois - Eastern illinois University's response and, accordingly, we express no opinion
on the response.
This repmt is intended solely for the information and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, the Board ofTrustees, the State
of Illinois- Eastern Illinois University management, and federal awarding agencies and passthrough
entities and is not intended to be and should not be used by anyone other than these
specified parties.
;; ·C . ~' -5t u., J-L-P
January 31, 2012J
15
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COST
For the Year Ended June 30, 2011
SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Type of auditors’ report issued: Unqualified
Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiency(ies) identified 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(ies) identified not
considered to be material weaknesses? X Yes None Reported
Type of auditors’ report issued on compliance for
major programs: Unqualified
Any audit findings disclosed that are required to be
reported in accordance with Circular A-133,
Section .510(a) X Yes No
Identification of major programs:
CFDA Numbers Name of Federal Program or Cluster
84.038, 84.268, 84.033, 84.063,
84.007, 84.379, 84.375, 84.376
Student Financial Aid Cluster
47.074, 47.050, 47.049, 47.048,
10.206, 15.634, 93.173, 81.003
Research and Development Cluster
93.596, 93.575, 93.713 Child Care and Development Fund Cluster
93.707, 93.045, 93.053 Aging Cluster
93.558 Temporary Assistance For Needy Families
81.086 Conservation Research and Development
Dollar threshold used to distinguish between Type A and B programs: $300,000
Auditee qualified as low-risk auditee? Yes X No
16
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CURRENT FINDING – GOVERNMENT AUDITING STANDARDS
11-1. Finding (Inaccurate Accounting for Participation in a Public Entity Risk Pool)
Eastern Illinois University (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 to
prepaid insurance and amortized over the term of the current insurance policies, 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 $729,712 and $764,451 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 recorded.
Further, we noted the University did not adequately monitor SURMA to ensure
SURMA underwent an annual audit in fiscal year 2010 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.”
17
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
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 stated the SURMA By-Laws were adopted cooperatively by the
five universities formerly under the Board of Governors. The member universities
have been operating under those By-Laws since 1996, prior to the issuance of GASB
Interpretation No. 4. The condition found is the result of 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 audit finding.
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 No. 11-1)
Recommendation
We recommend the University implement controls to monitor the activities of
SURMA and properly account for its participation in SURMA in accordance with
GAAP.
University Response
SURMA By-Laws state that with a four/fifths vote of the Board of Directors the
entity may be terminated. However, “all members remain fully obligated for the
payment of supplementary and other payments attributable to the years during which
they were members of the Agency. After the payment of all claims, reserves,
administrative costs and expenses, if there are still surplus funds available, such
surplus funds shall be distributed to the then-existing members…” Although it is
possible that SURMA could be terminated and the funds returned to each member,
the likelihood of that happening in our opinion is remote. We look at the pool as
being able to mitigate our exposure to losses and therefore we would be unlikely to
approve the withdrawal of a member or termination of the pool-particularly if that
meant reducing the pool of assets available for the payment of losses.
GASB Interpretation #4 states that “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.” We
interpret this to mean that the determination is not made simply based upon whether
the agreement allows a member to withdraw or terminate but whether the conditions
for the withdrawal/termination could reasonably occur. We agree that the return of
the contribution is probable based solely upon the financial capacity of the entity.
18
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
However, the provisions of the agreement do not provide a situation that is probable
when you consider the necessity for a four/fifths vote and that contributions would be
returned thereby reducing the assets available for the other members to pay their
losses. We certainly would not vote for a withdrawal/termination when it would
affect our ability to pay losses.
SURMA had an audit completed of their 2010 fiscal year financial statements,
however, its completion was not timely. The report was dated December 19, 2011.
Auditor’s Comment
As of June 30, 2011, SURMA has the financial capability to return excess capital to
the participating universities and the SURMA By-Laws provide a mechanism for
returning excess funds to the participating universities following a withdrawal or
dissolution. As the accounting standard in question limits the University’s
consideration of the probability of a return of the excess capital contributions to “the
provisions of the pooling agreement and an evaluation of the pool’s financial capacity
to return the contribution,” the University – in our opinion – should and did record the
excess capital contribution in their financial statements.
19
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
11-2. Finding (Inaccurate Capital Asset Accounting and Depreciation Calculations)
Eastern Illinois University (University) did not properly calculate current depreciation
and improperly classified completed projects in the financial statements.
During our audit, we noted the following:
The University classified 56 asset items as building improvements, which were
depreciated using the 50-year estimated useful life of a building instead of the 20-
year estimated useful life for building improvements. As a result, current year
depreciation expense was understated by $484,489. The auditors proposed an
adjusting entry to the University to correct this error, which the University
recorded.
The University accounted for a substantially completed residence hall window
retrofitting project, totaling $923,737, as construction in progress instead of a
building improvement. The auditors proposed an adjusting entry to reclassify the
project, which University recorded. There was no material effect on the
University’s depreciation expense as a result of the misclassification.
The University’s depreciation policy states depreciation is computed using the
straight-line method over the estimated useful lives of the assets, generally 15 to 20
years for site and building improvements.
Generally Accepted Accounting Principles (GAAP) and the Statewide Accounting
Management System (SAMS), Procedure 03.30.10, requires the University transfer
construction costs from construction in progress to an appropriate fixed asset account
upon the substantial completion of the project, or when the asset is ready for its
intended purpose. Further, the University must allocate depreciation expense for
capital assets using a systematic and rational method to the periods benefiting from its
use.
According to University personnel, the use of 50-year life for building improvements
was due to difference in judgment and the misclassification of substantially
completed project was due to oversight. Most of these costs were incurred in relation
to the University’s energy conservation project for the entire University. With the
construction of the University energy steam plant, several costs were incurred and
these costs were inadvertently depreciated over 50 years, which is the estimated
useful life of the steam plant structure.
Failure to adequately monitor and review capital asset activity resulted in misstatements
to the University’s financial statements. (Finding Code Nos. 11-2, 10-1)
20
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Recommendation
We recommend the University enhance internal controls over reporting and
depreciating capital assets to ensure the proper accounting for asset classifications
and depreciation in accordance with both Generally Accepted Accounting Principles
and the Statewide Accounting Management System.
University Response
We agree with the auditor’s recommendation. We will implement controls to
improve reporting and depreciation accounting for capital assets.
21
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CURRENT FINDINGS - FEDERAL COMPLIANCE
11-3. Finding (Noncompliance with Verification Requirements)
Federal Agency: United States Department of Education (USDOE)
Federal Program: Student Financial Aid Cluster
CFDA #: 84.063, 84.038, 84.268, 84.033, 84.007, 84.379, 84.375,
84.376
Total Expenditures: $88,463,627
Questioned Costs: None
Eastern Illinois University (University) did not ensure information submitted by
students applying for financial aid was properly verified to ensure accurate
information is reflected on the Institutional Student Information Report (ISIR).
When a student applying for financial aid is selected for verification, the student is
required to provide supporting documentation to the University to verify information
provided by the student during the application process for accuracy. If the University
identifies a discrepancy between the information provided during the application
process and the supporting documentation provided by the student, the University
updates the student’s information so the ISIR will have correct information to
calculate the student’s award.
During verification testing, we noted information in the ISIR for two of 68 (3%)
students tested did not match with the verification documentation provided by the
students. As a result, one noted student’s Expected Family Contribution (EFC) should
have been reduced and the student’s Pell award should have been increased by $300.
This was corrected by the University by increasing the student’s Pell award in the
subsequent academic year. The error for the other student did not ultimately affect
the award amount.
Upon selection for verification by either the USDOE’s Central Processing System or
the University, the Code of Federal Regulations (34 CFR §668.51 et seq.) requires the
University verify an applicant’s household size, number enrolled in college, federal
adjusted gross income (AGI), federal income tax paid, and certain untaxed income
and benefits from acceptable supporting documentation. If original applications have
an error in a nondollar item, such as household size, the student or school must
correct the error.
According to University personnel, discrepancies in the information were due to
human error.
Failure to properly verify and submit corrections to student information is
noncompliance with Federal regulations and resulted in an inaccurate calculation of a
student’s financial aid award amount. (Finding Code No. 11-3)
22
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Recommendation
We recommend the University enhance controls over student aid verification to
ensure supporting documentation submitted by students agrees with information on
the Institutional Student Information Report to minimize the risk of inaccurate awards
of student financial aid.
University Response
We agree with the auditor’s recommendation. Although all information was checked,
the corrected information did not get entered into the ISIR. We will establish
procedures to double-check that the corrected information gets entered into the ISIR.
23
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
CURRENT FINDINGS – STATE COMPLIANCE
11-4. Finding (Failure to Provide a Comprehensive Listing of Laws and Regulations)
Eastern Illinois University (University) did not have a comprehensive and complete
listing of laws and regulations applicable to the University.
During testing, we requested the University provide us with a listing of all laws and
regulations applicable to the University. The University was unable to provide us
with the requested listing; however, we noted the University does maintain a listing of
new legislation applicable to the University.
Adequate controls over compliance with laws and regulations would require the
University to develop a process to identify and monitor all federal, State, and local
laws and regulations applicable to the University in order to ensure the University is
complying with those laws and regulations.
According to University personnel, maintaining a comprehensive list of laws and
regulations does not ensure compliance with applicable laws and regulations.
Failure to monitor laws and regulations applicable to the University increases the risk
the University would not comply with those laws and regulations and could
potentially result in the University incurring unexpected costs. (Finding Code No. 11-
4)
Recommendation
We recommend the University establish procedures to monitor laws and regulations
applicable to the University.
University Response
Management regularly monitors laws and regulations that are applicable to the
University. We will create a list of laws and regulations that apply to the University.
24
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
11-5. Finding (Late Deposit of Receipts and Refunds)
Eastern Illinois University (University) did not deposit receipts and refunds timely.
During our testing of receipts and refunds, we noted 26 of 80 (33%) receipts and
refunds, totaling $217,424, were deposited between two to 13 days after the checks
were received by University personnel. We noted untimely deposits from several
departments across campus, including the business office, Doudna Fine Arts Center,
Panther catering, Panther camps, student catering, clinic services, parking facilities,
and athletics.
The University’s Internal Governing Policy (IGP) #102 requires the intact deposit of
all monies collected either no later than the next University business day when total
collections exceed $50 or once a week. The University Treasurer must pre-approve
any exceptions to this requirement. Further, good business practices would require
the University make every reasonable effort to quickly deposit collected receipts into
the University’s treasury.
According to University personnel, late deposits were due to procedural errors and
other responsibilities taking priority at different University departments.
Failure to deposit collections on a timely manner reduces the amount of cash
available to pay current costs and increases the risk of misappropriation of University
funds. (Finding Code Nos. 11-5, 10-5)
Recommendation
We recommend the University investigate the reasons departments are not complying
with IGP #102 and determine appropriate enforcement actions to ensure compliance
with the University’s policy.
University Response
We want deposits to be made in accordance with our policy. We will work with
fiscal agents to improve compliance with our policy.
25
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
11-6. Finding (Delinquent Reporting of Bond Activity)
Eastern Illinois University (University) did not timely submit transaction reporting for
its revenue bond principal and interest payments to the Office of the State Comptroller.
During testing, we noted seven of 14 (50%) Notice of Payment of Bond Interest
and/or Principal reports (Form C-08) were not timely submitted to Office of the State
Comptroller.
We noted the following:
The University submitted Form C-08 reports for the University’s October 1, 2010
interest payments on Revenue Bond Series 2005, 2008, 2008B and Certificate of
Participation 2009A on May 6, 2011. As the University’s “paying agent” trustee
submitted the trustee’s monthly statement on November 15, 2010, the report was
due to the State Comptroller on November 29, 2010.
The University submitted Form C-08 reports for the University’s February 15,
2011 principal and interest payments on May 6, 2011. As the University’s
“paying agent” trustee submitted the trustee’s monthly statement on March 15,
2011, the report was due to the State Comptroller on March 29, 2011.
The Statewide Accounting Management System (SAMS), Procedure 31.30.20,
requires the University prepare and submit a Form C-08 report to the Office of the
State Comptroller within 15 days from receipt of the “paying agent” trustee’s monthly
statement.
According to University personnel, delay in submission of Form C-08 was due to
oversight.
Failure to submit timely Form C-08 reports to the Office of the State Comptroller
inhibits the State Comptroller’s ability to record and monitor State debt transactions.
(Finding Code No. 11-6)
Recommendation
We recommend the University implement controls to ensure the timely filing of bond
principal and interest payments with the State Comptroller. Further, the University
may contractually require the “paying agent” trustee to electronically file the Form C-
08 reports, as allowed for and recommended by the Statewide Accounting
Management System (Procedure 31.30.20).
26
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
University Response
We agree with the auditor’s recommendation. The University will establish
procedures to assure that the required reports are completed on a timely basis.
27
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
11-7. Finding (Timesheets not Required)
Eastern Illinois University (University) has not implemented time reporting
requirements for all employees in accordance with the State Officials and Employees
Ethics Act (Act).
During our examination, we noted the University requires all employees – except
faculty members – to report and certify time worked to the nearest quarter hour as
required by the Act. Faculty employees are required to certify that they have met
their work schedule obligations as set forth in their individual Assignment of Duties
form; however, they do not report their time to the nearest quarter hour in accordance
with 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 time sheets documenting the time spent each day on official State business to
the nearest quarter hour.” The IBHE adopted personnel policies for public
universities on February 3, 2004, in accordance with the Act. The University has not
incorporated these policies into the University’s policies.
According to the University personnel, faculty members work in accordance with their
contract. The contract defines faculty responsibilities in terms of credit units;
therefore, faculty members report that they worked in accordance with their contract.
By not requiring time sheets from all of its employees, the University does not have
complete documentation of time spent by faculty members on official State business
as contemplated by the Act. (Finding Code Nos. 11-8, 10-3, 09-4, 08-5, 07-4, 06-3,
05-4)
Recommendation
We recommend the University implement a reporting system to require all employees
to submit time sheets in compliance with the Act.
University Response
We agree with the auditor’s recommendation. The University has implemented a
system that allows employees to document time spent on official State business in
accordance with the Act. All University employees use this system. However,
faculty members, in accordance with their union contract, use the system to document
that they have worked in accordance with the contract. We will continue to work
with the faculty in an attempt to obtain compliance.
28
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
11-8. Finding (Noncompliance with Ethics Training Requirements)
Eastern Illinois University (University) did not have adequate internal controls to
ensure new employees timely completed ethics training.
During our examination, we noted 16 of 25 (64%) new hires tested completed ethics
training from one to 56 days late.
The State Officials and Employees Ethics Act (5 ILCS 430/5-10(c)) requires all new
employees entering a position requiring annual ethics training complete an initial
ethics training course within 30 days after commencing employment.
According to University personnel, the delay in the completion of ethics training of
some employees was due to oversight. Other employees came in at their busy time and
job priorities took precedence resulting in a delay in the completion of ethics training.
Failure to provide ethics training within the required timeframe may result in
employees being unaware of specific ethical requirements for State employees.
(Finding Code Nos. 11-8, 10-4)
Recommendation
We recommend the University’s Ethics Officer implement controls to monitor new
employees to ensure ethics training mandated by State law is completed in a timely
manner.
University Response
We agree with the auditor’s recommendation. The University has established a
computer system to track all new employees and remind them of their responsibilities
under the State Officials and Employees Ethics Act. The system reminds them of the
requirement to take the initial ethics training course within the first 30 days of
employment. If the employee has not completed the training as the end of the 30 day
period nears, the employee’s supervisor will be notified for follow-up.
29
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
PRIOR FINDING NOT REPEATED
A. Finding (Noncompliance with federal reporting requirements)
During the prior year engagement, Eastern Illinois University (University) did not timely
submit reports such the semi-annual federal financial report, annual progress report,
quarterly financial status report, and quarterly reports in accordance with the American
Recovery and Reinvestment Act of four federal grants as required by federal granting
agencies. (Finding Code No. 10-2)
Status: Partially implemented
During the current year engagement, our sample testing disclosed the University
submitted the required reports timely to the federal awarding agency. However, an
instance was noted wherein the University did not submit the annual progress report as
required by the federal granting agency but this was not considered to be as significant as
in the prior year and thus were reported to the University in the Report of Immaterial
Findings.
30
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
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 Appropriations, Expenditures, Lapsed and Reappropriated Balances
Comparative Schedule of Net Appropriations, Expenditures, Lapsed, and
Reappropriated Balances
Comparative Schedule of Income Fund Revenues and Expenses
Schedule of Changes in Capital Assets
Auxiliary Enterprises and Activities, Financial Statements by Functional Entity
Designated Funds - Auxiliary Activities:
Balance Sheet by Entity
Current Funds Statement of Changes in Fund Balances by Entity
Statement of Changes in Plant Fund Balances by Entity
Auxiliary Enterprise Funds - Revenue Bonds:
Current Funds, Unrestricted, Balance Sheet by Entity
Statement of Current Funds, Unrestricted, Revenues and Expenditures
by Entity
Statement of Current Funds, Unrestricted, Statement of Changes in
Fund Balances by Entity
Plant Funds, Balance Sheet by Entity
Plant Funds, Statement of Changes in Fund Balances by Entity
Auxiliary Enterprise Funds - Other:
Balance Sheet by Entity
Current Funds Statement of Revenues and Expenditures by Entity
Current Funds Statement of Changes in Fund Balances by Entity
Plant Funds Statement of Changes in Fund Balances by Entity
Analysis of Revenues, Expenses and Changes in Net Assets
Analysis of Significant Variations in Account Balances
Analysis of Significant Lapse Period Spending
Schedule of Accounts Receivable
Schedule of Cash and Cash Equivalents and Investments
Summary of Indirect Cost Reimbursement:
Statement of Sources and Applications
Calculation Sheets for Indirect Cost Carry-Forward
31
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
SUMMARY
Analysis of Operations
University Functions and Planning Program
Average Number of Employees
Service Efforts and Accomplishments (unaudited)
Schedule of Federal Expenditures, Nonfederal Expenses and New Loans
Undergraduate Tuition and Fee Waivers (unaudited)
Graduate Tuition and Fee Waivers (unaudited)
Bookstore and Textbook Rental Information (unaudited)
University Guidelines 1982, as amended 1997
Special Data Requirements for Audits of Universities
Summary of Eastern Illinois University Foundation Payments to the University
Summary of Eastern Illinois University Alumni Association, Inc. Payments to the
University
Description of Accounting Entities, Sources of Revenue and Purpose of Each Entity
Calculation Sheets for Current Excess Funds
Schedule of Accrued Liability for Employee Compensated Absences (unaudited)
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 auditors’
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.
32
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2011
CFDA Federal Project or FY11
Number Pass-Through Number Expenditures
Federal Grantor/Pass Through Grantor/Program/Grant Title
MAJOR PROGRAM - STUDENT FINANCIAL AID CLUSTER
U.S. DEPARTMENT OF EDUCATION
Federal Perkins Loans - Federal Capital Contributions 84.038 $ 6,683,939
Federal Direct Student Loans 84.268 P268K110106 64,901,860
Federal Work-Study Program
FY10 84.033 P033A091143 (5,231)
FY11 84.033 P033A101143 400,310
395,079
Federal Pell Grant Program
FY10 84.063 P063P090106 133,274
FY11 84.063 P063P100106 15,258,610
15,391,884
Federal Supplemental Educational Opportunity Grants
FY10 84.007 P007A091143 (17,116)
FY11 84.007 P007A101143 277,308
260,192
Teacher Education Assistance For College And Higher Education Grants
FY10 84.379 P379T100106 (5,000)
FY11 84.379 P379T110106 386,874
381,874
Academic Competitiveness Grants
FY10 84.375 P375A090106 650
FY11 84.375 P376S090106 185,619
186,269
National Science and Mathematics Access to Retain Talent Grants
FY10 84.376 P376S090106 3,500
FY11 84.376 P376S100106 289,070
292,570
Total Financial Aid Cluster 88,493,667
MAJOR PROGRAM - RESEARCH AND DEVELOPMENT CLUSTER
NATIONAL SCIENCE FOUNDATION
Biological Sciences
LTREB: Controls and Consequences of Exotic Plant Invasions in
Abandoned Agricultural Land 47.074 DEB-0424605 10,158
RUI: Whole Genome Analysis of Hepatic Gene Silencing 47.074 MCB-0841653 32,546
42,704
Geosciences
Collaborative Research: Enhancement of Wind Erosion by
Fire-Induced Water Repellency 47.050 EAR-0746231 11,017
The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule.
33
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2011
CFDA Federal Project or FY11
Number Pass-Through Number Expenditures
Federal Grantor/Pass Through Grantor/Program/Grant Title
Mathematical and Physical Sciences
RUI: Structural Characterization of Ionic and Radical Complexes by
High Resolution Spectroscopy 47.049 CHE-0809387 37,613
RUI: Photoreactive Crystalline Raceamic and Quasiracemic Materials 47.049 CHE-0957391 70,012
MRI: Acquisition of a Single-Crystal X-Ray Diffractometer 47.049 CHE-0722547 11,220
118,845
Polar Programs
The Social Dynamics of Early Beothuk-European Relations in
Trinity Bay, Newfoundland 47.078 ARC-1011781 14,070
TOTAL NATIONAL SCIENCE FOUNDATION 186,636
U.S. DEPARTMENT OF AGRICULTURE
Grants for Agricultural Research Competitive Research Grants
Behavioral Mechanisms Underlying Individual and Population Patterns in
Japenese Beetle 10.206 2005-35302-16364 894
A Population Genetics Analysis of Mating/Dispersal Flights of the
Red Imported Fire Ant 10.206 2009-35302-05069 30,257
TOTAL U.S. DEPARTMENT OF AGRICULTURE 31,151
U.S. DEPARTMENT OF THE INTERIOR
Passed-Through the Illinois Department of Natural Resources
State Wildlife Grants
Effects of Habitat Fragmentation on Sensitive Aquatic Species 15.634 T-50-D-1 15,363
TOTAL U.S. DEPARTMENT OF THE INTERIOR 15,363
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Research Related to Deafness and Communication Disorders
Interaction of ApoE with Estrogen in the Olfactory System 93.173 2R15DC03889-02A1 37,752
TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 37,752
U.S. DEPARTMENT OF ENERGY
Passed-through the University of Georgia
Granting of Patent Licenses
Risk Model for Tims Branch/Steed Pond 81.003 RR267-503/4693198 19,649
Passed-Through Savannah River Nuclear Solutions LLC
Deer Data Evaluation None AC71683O 15,900
TOTAL U.S. DEPARTMENT OF ENERGY 35,549
Total Research and Development Cluster 306,451
TRIO CLUSTER
U.S. DEPARTMENT OF EDUCATION
Trio - Student Support Services 84.042A P042A051072-09 30,560
Trio - Student Support Services 84.042A P042A100932 221,717
Total Trio Cluster 252,277
The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule.
34
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2011
CFDA Federal Project or FY11
Number Pass-Through Number Expenditures
Federal Grantor/Pass Through Grantor/Program/Grant Title
MAJOR PROGRAM - CHILD CARE AND DEVELOPMENT FUND (CCDF) CLUSTER
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Passed-Through the Illinois Department of Human Services
Child Care Mandatory and Matching Funds of the Child Care and
Development Fund 93.596 10C6002526 428,928
Child Care and Development Block Grant 93.575 10C6002526 528,740
ARRA - Child Care and Development Block Grant 93.713 10C6002526 69,404
Total CCDF Cluster 1,027,072
MAJOR PROGRAM - AGING CLUSTER
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Passed-Through the East Central Illinois Area Agency on Aging
ARRA - Aging Congregate Nutrition Services for States 93.707 38,450
Special Programs for the Aging, Title III, Part C, Nutrition Services
Peace Meal Senior Nutrition Program FY10 93.045 146,517
Peace Meal Senior Nutrition Program FY11 93.045 624,660
771,177
Nutrition Services Incentive Program
Peace Meal Senior Nutrition Program FY10 93.053 43,260
Peace Meal Senior Nutrition Program FY11 93.053 89,311
132,571
Total Aging Cluster 942,198
COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG) - ENTITLEMENT GRANTS CLUSTER
U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT
14.218 25,000
Total Community Development Block Grants Cluster 25,000
COMMUNITY SERVICE BLOCK GRANTS (CSBG) CLUSTER
U.S. DEPARTMENT OF HEALTH & HUMAN SERVICES
93.569 5,000
Total Community Service Block Grants Cluster 5,000
EMERGENCY FOOD AND SHELTER PROGRAM CLUSTER
U.S. DEPARTMENT OF HOMELAND SECURITY
97.024 1,116
Total Emergency Food and Shelter Program Cluster 1,116
Passed-through from the City of Bloomington, Illinois
Passed-through from the East Central Illinois Community Action Agency
Community Services Block Grants
Emergency Food and Shelter National Board Program
Passed-through from the United Way of McLean County, Illinois
Community Development Block Grants/ Entitlement Grants
The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule.
35
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2011
CFDA Federal Project or FY11
Number Pass-Through Number Expenditures
Federal Grantor/Pass Through Grantor/Program/Grant Title
FISH AND WILDLIFE CLUSTER
U.S. DEPARTMENT OF INTERIOR
Assessment of Larval Asian Carp in the Illinois River 15.605 P0405774 23,424
Assessment of Larval Asian Carp in the Illinois River 15.605 P0484000 2,781
Investigate the Impact of Commercial and Sport Harvest on the
Demographics of Flathead Catfish in the Wabash River 15.605 P0393740 13,437
Total Fish and Wildlife Cluster 39,642
MAJOR PROGRAM - TEMPORARY ASSISTANCE FOR NEEDY FAMILIES CLUSTER
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Passed-Through the Illinois Department of Human Services
Temporary Assistance for Needy Families 93.558 10C6002526 607,458
Total Temporary Assistance for Needy Families Cluster 607,458
OTHER PROGRAMS
U.S. DEPARTMENT OF EDUCATION
Higher Education - Institutional Aid
Strengthening Institutions Program - Student Success Center 84.031A P031A060147 146,455
Fund for the Improvement of Postsecondary Education
Emergency Notification System 84.116 P116Z090074 45,124
Passed-Through the Illinois Board of Higher Education
Improving Teacher Quality State Grants
Leadership for the Improvement of Teaching Performance 84.367 09NCLB3 95,080
Passed-Through the Corporation for Public Broadcasting
Ready to Teach
PBS Teacherline in Central Illinois 84.286A U286A050005 40
Passed-Through the University of California
National Writing Project
Eastern Illinois Writing Project 84.928A 08-IL05 10,319
Eastern Illinois Writing Project 84.928A 08-IL05 41,382
51,701
TOTAL U.S. DEPARTMENT OF EDUCATION 338,400
U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Nurse Education, Practice and Retention Grants
Nurse Education, Practice and Retention 93.359 1 D11HP09760-01-00 174,943
Passed-Through the University of Illinois at Chicago
Medical Library Assistance 93.879 TECH534 4,900
Passed-Through the Illinois Department of Human Services
Social Services Block Grant 93.667 10C6002526 5,383
Block Grants for Preventions and Treatment of Substance Abuse
Illinois Higher Education Prevention 93.959 10C6002526 220,245
TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 405,471
Passed-through from the Illinois Department of Natural Resources/Univ. of Illinois
Sport Fish Restoration Program
The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule.
36
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2011
CFDA Federal Project or FY11
Number Pass-Through Number Expenditures
Federal Grantor/Pass Through Grantor/Program/Grant Title
U.S. DEPARTMENT OF JUSTICE
Passed-Through the Illinois Department of Human Services
Enforcing Underage Drinking Laws Program
Illinois Higher Education Prevention 16.727 10C6002526 (958)
Illinois Higher Education Prevention 16.727 10C6002526 132,000
Enforcing Underage Drinking Laws University Initiative 16.727 10C6002526 104,989
236,031
Edward Byrne Memorial State and Local Law Enforcement Assistance Discretionary Grants Program
Prescription Information Library Project 16.580 49X1014M40 128,709
TOTAL U.S. DEPARTMENT OF JUSTICE 364,740
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
The International Conference on Applied Modeling and Information
Security Systems None NNX08AQ23G 524
TOTAL NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 524
U.S. DEPARTMENT OF ENERGY
Major Program - Conservation Research and Development
Installation of Electrical Equipment at Eastern Illinois University 81.086 DE-EE0004230 1,000,000
TOTAL U.S. DEPARTMENT OF ENERGY 1,000,000
U.S. DEPARTMENT OF COMMERCE
Public Telecommunications Facilities Planning and Construction
PTFP - Eastern Illinois University 11.550 17-02-N09179 19,868
TOTAL U.S. DEPARTMENT OF COMMERCE 19,868
NATIONAL ENDOWMENT FOR THE HUMANITIES
Promotion of the Humanities - Public Programs
Farm Life: A Century of Change for Farm Families and Their Neighbors 45.164 179
Benjamin Franklin: In Search of a Better World - A Traveling Exhibit
for Libraries 45.164 LS-50021-07 1,000
Promotion of the Humanities - Professional Development
Chaucer's Canterbury Tales 45.163 FV-50203-09 61,805
TOTAL NATIONAL ENDOWMENT FOR THE HUMANITIES 62,984
NATIONAL ENDOWMENT FOR THE ARTS
Passed-Through Arts Midwest
Promotion of the Arts - Partnership Agreement
Hot Club of San Francisco 45.025 FY11-102625 1,500
TOTAL NATIONAL ENDOWMENT FOR THE ARTS 1,500
INSTITUTE OF MUSEUM AND LIBRARY SERVICES
Passed-Through the State of Illinois Secretary of State
Grants to States
Art and Architecture in Illinois Libraries 45.310 LSTA 06-5069 6
TOTAL INSTITUTE OF MUSEUM AND LIBRARY SERVICES 6
The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule.
37
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended June 30, 2011
CFDA Federal Project or FY11
Number Pass-Through Number Expenditures
Federal Grantor/Pass Through Grantor/Program/Grant Title
LIBRARY OF CONGRESS
EIU Teaching with Primary Sources None GA070019 167,967
TOTAL LIBRARY OF CONGRESS 167,967
Total Other Programs 2,361,460
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 94,061,341
The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule.
38
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
1. GENERAL
The accompanying Schedule of Expenditures of Federal Awards presents the activity of
all federal award programs of Eastern Illinois University for the year ended
June 30, 2011. All federal awards received directly from federal agencies as well as
federal awards passed through other government and nonprofit agencies are included on
the schedule.
Following is a legend of acronyms used in the Schedule of Expenditures of Federal
Awards:
LTREB Long-term Research in Environmental Biology
RUI Research in Undergraduate Institutions
MRI Major Research Instrumentation
ARRA American Recovery and Reinvestment Act
PBS Public Broadcasting Service
PTFP Public Telecommunications Facilities Planning and Construction
2. BASIS OF ACCOUNTING
With the exception of Peace Meal grants presented on page 35, the accompanying
Schedule of Expenditures of Federal Awards is presented using the accrual basis of
accounting. The Peace Meal grants are presented using the cash basis of accounting
since this method is allowed under the grant agreement.
3. STUDENT LOAN PROGRAMS ADMINISTERED BY THE UNIVERSITY
The University administered the following federal loan program during the year ended
June 30, 2011:
Perkins Loan Program CFDA #84.038
Outstanding balance, July 1, 2010 $ 6,695,615
Additions:
Interest income 99,064
Other income 20,996
Total 120,060
Deductions:
Loans canceled or written-off 91,941
Administrative expenses 39,795
Total 131,736
Outstanding balance, June 30, 2011 $6,683,939
39
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
The above deductions include disbursements and expenditures such as bad debts and
administrative expenditures.
4. MAJOR PROGRAMS
The following federal program expenditures comprise major program expenditures under
OMB Circular A-133 for the year ended June 30, 2011:
Student Financial Aid Cluster $88,493,667
Child Care and Development Fund Cluster 1,027,072
Conservation Research and Development 1,000,000
Aging Cluster 942,198
Temporary Assistance for Needy Families 607,458
Research and Development Cluster 306,451
Total major program expenditures 92,376,846
Non-major program expenditures 1,684,495
Total federal expenditures $94,061,341
As part of the Student Financial Aid Program, Eastern Illinois University administers
loan proceeds under the Perkins Loan Program (as described in Note 3) and the William
D. Ford Federal Direct Loan Program.
5. NONCASH TRANSACTION INFORMATION
Certain noncash expenditures are included in the total expenditures on the Schedule of
Expenditures of Federal Awards. The childcare program of the University is a processor
of childcare claims for the Illinois Department of Human Services (DHS). The
University determines eligibility and reimbursable hours for the participants. This
information is sent to DHS who then pays the claims. The noncash amounts are recorded
in the following programs: Child Care Mandatory and Matching Funds of the Child Care
and Development Fund - $232,772 (Federal CFDA #93.596), Child Care Development
Block Grant - $117,624 (Federal CFDA #93.575), Temporary Assistance For Needy
Families - $607,458 (Federal CFDA #93.558) and Social Services Block Grant - $5,383
(Federal CFDA #93.667). These noncash transactions have not been recorded on the
University's financial statements.
40
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
6. SUBRECIPIENTS
The University provided sub-awards of $123,431 through the Enforcing Underage
Drinking Laws (CFDA #16.727) to the following subrecipients: Northern Illinois
University, $14,400; Illinois State University, $17,000; Western Illinois University;
$16,910; Southern Illinois University at Carbondale, $14,332; Bradley University,
$17,000; Benedictine University, $3,991; and the Charleston Police Department,
$39,798.
7. RECONCILIATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS TO THE STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN NET ASSETS
The following is a reconciliation of total expenditures as reported on the accompanying
Schedule of Expenditures of Federal Awards to the revenue items reported as federal and
state grants and contracts on the Statement of Revenues, Expenses and Changes in Net
Assets included in the University's financial statements.
Funds, derived from federal aid, gifts or grants, may be used only to meet expenditures
for the purposes specifically identified by sponsoring agencies. The federal aid, gifts or
grants are recognized as revenue in the University's financial statements as expended.
Therefore, expenditures on the Schedule of Expenditures of Federal Awards agree with
revenues on the Statement of Revenues, Expenses and Changes in Net Assets, except as
noted below:
Total expenditures as shown on the Schedule of Expenditures of
Federal Awards $94,061,341
Add:
Direct state grants/contracts 1,239,486
Subtract:
Federal Perkins loan program – federal capital contributions
included on the Schedule of Expenditures of Federal
Awards not included in the financial statements (less
administrative costs) (6,683,939)
Direct loans included in the Schedule of Expenditures of
Federal Awards not included in the financial statements (64,901,860)
Noncash expenditures included in the Schedule of
Expenditures of Federal Awards not included in the
financial statements (963,237)
Total federal and state grants and contracts revenues shown on
the Statement of Revenues, Expenses and Changes in Net
Assets $22,751,791
41
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF APPROPRIATIONS, EXPENDITURES, LAPSED AND REAPPROPRIATED BALANCES
APPROPRIATIONS FOR FISCAL YEAR 2011
Fourteen Months Ended August 31, 2011
Approximate
Expenditures Lapse Period Approximate Approximate Balances
Appropriations Through Expenditures Total Balances Reappropriated
(Net after Transfers) June 30, 2011 7/1 - 8/31/11 Expenditures Lapsed July 1, 2011
Public Acts 96-0956
GENERAL REVENUE FUND - 001
Ordinary and contingent expenses $ 4 7,413,000 $ 47,413,000 $ - $ 47,413,000 $ - $ -
Total General Revenue Fund - 001 47,413,000 47,413,000 - 47,413,000 - -
CAPITAL DEVELOPMENT FUND - 141
Purchase equipment and complete renovation of Doudna
Fine Arts Center * 1,929,317 972,086 - 972,086 - 957,231
Total Capital Development Fund - 141 1,929,317 972,086 - 972,086 - 957,231
STATE OF ILLINOIS
STATE COLLEGE & UNIVERSITY TRUST FUND - 417
Scholarship Grant Awards 4 ,250 4,250 - 4,250 - -
Total State College & University Trust Fund - 417 4,250 4,250 - 4,250 - -
Totals - All appropriated funds $ 49,346,567 $ 48,389,336 $ - $ 48,389,336 $ - $ 957,231
Notes:
* An expenditure adjustment of $594,682 was processed as a "due to primary government" at June 30, 2011.
Expenditure amounts are vouchers approved and paid by the University and submitted to the Office of the State Comptroller for reimbursement of payments made to vendors.
The data for this report were taken from the University's records and reconciled to the data of the Office of the State Comptroller.
42
EASTERN ILLINOIS UNIVERSITY
COMPARATIVE SCHEDULE OF NET APPROPRIATIONS, EXPENDITURES,
2011 2010
PA 96-0956 PA 96-0114,
96-0035, 96-0046
GENERAL REVENUE FUND - 001
Appropriations (net of transfers) $ 47,413,000 $ 50,566,500
General Revenue Fund expenditures
Ordinary and contingent expenses 47,413,000 47,609,500
Personal services - ARRA - 1,273,663
Personal services - ARRA - 1,683,300
47,413,000 50,566,463
Lapsed balances $ - $ 37
CAPITAL DEVELOPMENT FUND - 141
Appropriations (net of transfers) $ 1,929,317 $ 1,650,000
Capital Development Fund expenditures
Fine Arts renovation * 972,086 -
Balances reappropriated $ 957,231 $ 1,650,000
STATE OF ILLINOIS
LAPSED AND REAPPROPRIATED BALANCES
Fiscal Year
STATE COLLEGE & UNIVERSITY TRUST - 417
Appropriations (net of transfers) $ 4,250 $ 4,250
State College & University Trust expenditures
Scholarships 4,250 4,250
Lapsed balances $ - $ -
Grand total, all funds
Appropriations (net of transfers) $ 49,346,567 $ 52,220,750
Expenditures 48,389,336 50,570,713
Lapsed balances $ - $ 37
Balances reappropriated $ 957,231 $ 1,650,000
Notes:
* An expenditure adjustment of $594,682 was processed as a "due to primary government" at June 30, 2011.
The data for this report were taken from the University's records and reconciled to the data of the Office of the State Comptroller.
Expenditure amounts are vouchers approved and paid by the University and submitted to the Office of the State Comptroller for
reimbursement of payments made to vendors.
43
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
COMPARATIVE SCHEDULE OF INCOME FUND REVENUES AND EXPENSES
For the Years Ended June 30, 2011 and 2010
2011 2010
INCOME FUND
Revenues
Tuition $ 73,049,045 $ 70,413,001
Services fees 337,080 307,475
Fines and penalties 72,757 74,663
Interest income 7,227 -
Other 206,601 123,929
73,672,710 70,919,068
Expenses
Personal services 36,534,202 34,165,779
FICA - Medicare 2,584,928 1,075,684
Group insurance 1,249,151 1,250,121
Compensated absences 305,959 231,444
Contractual services 8,231,137 8,553,988
Travel 779,253 916,441
Commodities 1,538,519 1,723,899
Awards, grants, and matching funds 1,546,599 1,440,027
Permanent improvements 633,131 1,086,098
Equipment and library books 2,072,856 1,518,125
Telecommunications 333,532 337,658
Operation of automotive equipment 201,663 183,243
Student awards/tuition waived 9,123,115 8,290,986
65,134,045 60,773,493
Excess of revenues over expenses $ 8,538,665 $ 10,145,575
44
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF CHANGES IN CAPITAL ASSETS
For the Year Ended June 30, 2011
6/30/2010 Additions Deletions Transfers 6/30/2011
Capital assets not being depreciated
Land and land improvements $ 2,968,015 $ - $ - $ - $ 2,968,015
Capitalized collections 198,646 - - - 198,646
Construction in progress 69,201,059 32,634,254 30,631 (20,036,506) 81,768,176
Total capital assets not being depreciated 72,367,720 32,634,254 30,631 (20,036,506) 84,934,837
Capital assets being depreciated
Site improvements 17,226,197 - - 217,376 17,443,573
Building and building improvements 290,790,242 6,140 - 19,819,130 310,615,512
Equipment 67,083,172 5,255,838 5,931,709 - 66,407,301
Capital leases - equipment 50,585 - - - 50,585
Total capital assets being depreciated 375,150,196 5,261,978 5,931,709 20,036,506 394,516,971
Less accumulated depreciation
Site improvements 11,046,394 810,577 - - 11,856,971
Buildings and building improvements 111,540,700 8,301,608 - 77 119,842,385
Equipment 55,386,707 5,430,341 5,876,409 (77) 54,940,562
Capital leases - equipment 22,883 7,226 - - 30,109
Total accumulated depreciation 177,996,684 14,549,752 5,876,409 - 186,670,027
Total capital assets, being depreciated, net 197,153,512 (9,287,774) 55,300 20,036,506 207,846,944
Intangible assets being amortized
Software 380,146 - - - 380,146
Less accumulated amortization 298,686 54,307 - - 352,993
Total intangible assets, being amortized, net 81,460 (54,307) - - 27,153
Capital assets, net $ 269,602,692 $ 23,292,173 $ 85,931 $ - $ 292,808,934
The total property and equipment has been reconciled to the property reports submitted to the Office of the State Comptroller.
45
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
DESIGNATED FUNDS - AUXILIARY ACTIVITIES
BALANCE SHEET BY ENTITY
June 30, 2011
Unique Continuing
Student/ Charges Public Education
Student Fee Material Service Staff Educational Credit Service Indirect Contract
Programs Fees Departments Programs Services Courses Activities Costs Credit Total
ASSETS
CURRENT FUNDS
Cash and temporary investments $ 5,473,501 $ 30,085 $ 4,175,092 $ 50,215 $ 143,012 $ (269,548) $ 506,164 $ 213,919 $ 603,609 $ 10,926,049
Accrued interest receivable - - 991 - - - - - - 991
Accounts receivable (net of allowance) 803,799 26,159 12,042 52,690 48,104 343,994 99,208 - 303,586 1,689,582
Inventories 24,117 - 634,328 1,451 - - - - - 659,896
Prepaid expense and other assets 27,129 - 1,463 - - - - - 450 29,042
Total current funds 6,328,546 56,244 4,823,916 104,356 191,116 74,446 605,372 213,919 907,645 13,305,560
PLANT FUNDS
Temporary cash investments 2,930,950 - 7,658,292 86,040 49,580 - 65 - 46,601 10,771,528
Accounts receivable 367,556 - - - - - - - - 367,556
Bond discount 108,219 - - - - - - - 108,219
Buildings and improvements 18,553,035 - 12,154,864 100,668 - - 42,344 - 30,850,911
Equipment 1,722,901 46,564 1,647,445 15,361 106,159 - 9 ,428 20,686 8,323 3,576,867
Construction in progress 288,040 - 69,208,682 - 2,000 - 50,000 35,000 - 69,583,722
Accumulated depreciation (3,990,831) (40,785) (2,068,131) (31,643) (53,956) - (8,459) (39,034) (8,323) (6,241,162)
Other assets 62,887 - 1,761,564 - - - - - - 1,824,451
Total plant funds 20,042,757 5,779 90,362,716 170,426 103,783 - 51,034 58,996 46,601 110,842,092
Total assets $ 26,371,303 $ 62,023 $ 95,186,632 $ 274,782 $ 294,899 $ 74,446 $ 656,406 $ 272,915 $ 954,246 $ 124,147,652
LIABILITIES AND FUND BALANCES
CURRENT FUNDS
Accounts payable and accrued expenses $ 682,437 $ - $ 921,736 $ 16,967 $ 706 2,836 $ 4 ,645 $ - $ 5,717 $ 1,635,044
Accrued payroll 56,106 - 427,530 5,063 4,955 - 25,943 3 ,023 7,803 530,423
Accrued compensated absences - - 167,812 - - - - - - 167,812
Deferred income 202,022 3,339 - - 7,262 47,741 349,418 - 141,962 751,744
Total liabilities - current funds 940,565 3,339 1,517,078 22,030 12,923 50,577 380,006 3 ,023 155,482 3,085,023
Fund balances
Current unrestricted 5,387,981 52,905 3,306,838 82,326 178,193 23,869 225,366 210,896 752,163 10,220,537
Total current funds 6,328,546 56,244 4,823,916 104,356 191,116 74,446 605,372 213,919 907,645 13,305,560
PLANT FUNDS
Accounts payable - - 4,699,006 - - - - - - 4,699,006
Notes leases payable 955,000 - - - - - - - - 955,000
Certificates of participation payable 9,784,400 - 84,930,000 - - - - - - 94,714,400
Bond premium 6,976 - - - - - - - - 6,976
Total liabilities - plant funds 10,746,376 - 89,629,006 - - - - - - 100,375,382
Fund balances
Non-indentured reserve 265,596 - 651,417 86,040 49,580 - 65 - 46,601 1,099,299
Net investment in plant 6,302,545 5,779 (3,987,140) 84,386 54,203 - 50,969 58,996 - 2,569,738
Bond issuance costs 62,886 - 2,345,487 - - - - - - 2,408,373
Construction reserve 558,550 - 1,723,946 - - - - - - 2,282,496
Other reserves 2,106,804 - - - - - - - - 2,106,804
Total fund balances 9,296,381 5,779 733,710 170,426 103,783 - 51,034 58,996 46,601 10,466,710
Total plant funds 20,042,757 5,779 90,362,716 170,426 103,783 - 51,034 58,996 46,601 110,842,092
Total liabilities and fund balances $ 26,371,303 $ 62,023 $ 95,186,632 $ 274,782 $ 294,899 $ 74,446 $ 656,406 $ 272,915 $ 954,246 $ 124,147,652
46
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
DESIGNATED FUNDS - AUXILIARY ACTIVITIES
CURRENT FUNDS STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY
For the Year Ended June 30, 2011
Unique Continuing
Student/ Charges Public Education
Student Fee Material Service Staff Educational Credit Service Indirect Contract
Programs Fees Departments Programs Services Courses Activities Costs Credit Total
REVENUES
Tuition and fees $ 1 4,283,778 $ 307,362 $ - $ 161,903 $ - $ - $ - $ - $ 1 ,272,031 $ 1 6,025,074
Federal grants and contracts - - - - - - - 181,582 - 1 81,582
State grants and contracts - - - - - - - 123,986 - 1 23,986
Private gifts, grants, and contracts 6 6,961 - - 212,267 - - 463 13,393 - 2 93,084
Investment income - - - - - - - - - -
Educational activities 1 ,721,742 756 - 427,634 636,868 - 1,365,945 - - 4 ,152,945
Other additions 1 ,361,526 3,437 - 33,900 169,894 648,634 (5,190) - 7 ,470 2 ,219,671
Total revenues and other additions 1 7,434,007 311,555 - 835,704 806,762 648,634 1,361,218 318,961 1 ,279,501 2 2,996,342
EXPENDITURES
Educational and general
Instruction - 294,588 - 200,528 25,344 632,871 (3) - 9 93,477 2 ,146,805
Research - - - - - - - - - -
Public service - - - 264,568 554,348 - 1,425,368 - - 2 ,244,284
Academic support - 11,536 - 321,197 6,046 - 10,711 129,320 - 4 78,810
Student services 1 2,031,012 - - 65,930 - - - 1,335 - 1 2,098,277
Institutional support - - ( 1,609,886) 28,523 - - - 167,972 - (1,413,391)
Operation and maintenance of plant 1 7,059 - - - 35,342 - - 35,054 - 8 7,455
Scholarships and fellowships 1 ,679,361 - - - - - - - - 1 ,679,361
Total educational and general expenditures 1 3,727,432 306,124 ( 1,609,886) 880,746 621,080 632,871 1,436,076 333,681 9 93,477 1 7,321,601
TRANSFERS AND OTHER
ADDITIONS (DEDUCTIONS)
Mandatory transfers
Principal (940,188) - - - (11,349) - - - - (951,537)
Interest (438,888) - ( 965,400) - (1,551) - - - - (1,405,839)
Student aid matching grants - - - - - - - - - -
Total mandatory transfers (1,379,076) - ( 965,400) - (12,900) - - - - (2,357,376)
Non-mandatory transfers
Renewal and replacement (200,000) - ( 351,642) - (15,000) - - - (13,639) (580,281)
Construction - - - - - - - - - -
Reserve (582,896) - - - - - - - - (582,896)
Excess local funds - - - (40,182) - ( 20) - - - (40,202)
Transfers, other - - - (2,509) (10,000) - - - - (12,509)
Total non-mandatory transfers (782,896) - ( 351,642) (42,691) (25,000) ( 20) - - (13,639) (1,215,888)
NET INCREASE (DECREASE) FOR THE YEAR 1 ,544,603 5,431 292,844 (87,733) 147,782 15,743 (74,858) (14,720) 2 72,385 2 ,101,477
FUND BALANCES AT JULY 1, 2010 3 ,843,378 47,474 3,013,994 170,059 30,411 8,126 300,224 225,616 4 79,778 8 ,119,060
FUND BALANCES AT JUNE 30, 2011 $ 5 ,387,981 $ 52,905 $ 3,306,838 $ 82,326 $ 178,193 $ 23,869 $ 225,366 $ 210,896 $ 7 52,163 $ 1 0,220,537
47
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
DESIGNATED FUNDS - AUXILIARY ACTIVITIES
STATEMENT OF CHANGES IN PLANT FUND BALANCES BY ENTITY
For the Year Ended June 30, 2011
Unique Continuing
Student/ Charges Public Education
Student Fee Material Service Staff Educational Credit Service Indirect Contract
Programs Fees Departments Programs Services Courses Activities Costs Credit Total
NON-INDENTURED RESERVES
Fund balances at July 1, 2010 $ 84,397 $ - $ 321,975 $ 86,040 $ 34,772 $ - $ 720 $ - $ 34,302 $ 562,206
Reserve additions
Current funds 200,000 - 351,642 - 15,000 - - - 13,639 580,281
Other current funds - - - - - - - - - -
Total Additions 200,000 - 351,642 - 15,000 - - - 13,639 580,281
Reserve deductions
Non-capitalized equipment purchases 18,801 - - - 192 - - - 1,340 20,333
Transfer to Plant Fund - - 22,200 - - - - - - 22,200
Transfer to Other Plant fund - - - - - - 655 - - 655
Total Deductions 18,801 - 22,200 - 192 - 655 - 1,340 43,188
Fund balances at June 30, 2011 $ 265,596 $ - $ 651,417 $ 86,040 $ 49,580 $ - $ 65 $ - $ 46,601 $ 1,099,299
NET INVESTMENT IN PLANT
Fund balances at July 1, 2010 $ 6,173,104 $ 7,466 $ (29,497,183) $ 88,356 $ 66,574 $ - $ 51,173 $ 62,339 $ 1,094 $ (23,047,077)
Plant additions
Current funds 1,054,007 - 2,536,782 - 475 - - - - 3,591,264
Other Current Funds 88,067 - 108,410 - - - - - - 196,477
Non-indentured reserves - - 22,200 - - - - - - 22,200
Construction reserve 1,762 - 23,496,531 - - - - - - 23,498,293
Gifts/Grants - - - - - - - - - -
Disposed Property (18,082) - 2,500 - - - - - - (15,582)
Omitted equipment - - - - - - - - - -
Amortization of bond premium - - - - - - - - - -
Total additions 1,125,754 - 26,166,423 - 475 - - - - 27,292,652
Plant deductions
Depreciation 786,010 1,687 656,380 3,970 12,846 - 204 3,343 1,094 1,465,534
Omitted Equipment 202,996 - - - - - - - - 202,996
Bond premium/discount 7,307 - - - - - - - - 7,307
Bonds Issued - - - - - - - - - -
Total deductions 996,313 1,687 656,380 3,970 12,846 - 204 3,343 1,094 1,675,837
Fund balances (Deficit) at June 30, 2011 $ 6,302,545 $ 5,779 $ (3,987,140) $ 84,386 $ 54,203 $ - $ 50,969 $ 58,996 $ - $ 2,569,738
48
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
DESIGNATED FUNDS - AUXILIARY ACTIVITIES
STATEMENT OF CHANGES IN PLANT FUND BALANCES BY ENTITY
For the Year Ended June 30, 2011
Unique Continuing
Student/ Charges Public Education
Student Fee Material Service Staff Educational Credit Service Indirect Contract
Programs Fees Departments Programs Services Courses Activities Costs Credit Total
BOND ISSUANCE COSTS
Fund balance at July 1, 2010 $ 73,924 $ - $ 3,980,450 $ - $ - $ - $ - $ - $ - $ 4,054,374
Additions
Bonds Proceeds - - - - - - - - - -
Investment income - - 2,390 - - - - - - 2,390
Change in fair value of investment - - - - - - - - - -
Build America bond subsidy - - 1,761,392 - - - - - - 1,761,392
Other current funds - - - - - - - - - -
Total additions - - 1,763,782 - - - - - - 1,763,782
Deductions
Amortization of closing costs 11,038 - 148,978 - - - - - - 160,016
Interest expense - - 3,249,767 - - - - - - 3,249,767
Transfer to construction funds - - - - - - - - - -
Total deductions 11,038 - 3,398,745 - - - - - - 3,409,783
Fund balance at June 30, 2011 $ 62,886 $ - $ 2,345,487 $ - $ - $ - $ - $ - $ - $ 2,408,373
CONSTRUCTION RESERVE
Fund balance at July 1, 2010 $ 560,312 $ - $ 26,979,080 $ - $ - $ - $ - $ - $ - $ 27,539,392
Additions
Gifts - - - - - - - - - -
Investment income - - 22,258 - - - - - - 22,258
Change in fair value of investments - - - - - - - - - -
Bond Proceeds - - - - - - - - - -
Total additions - - 22,258 - - - - - - 22,258
Deductions
Transfer to net investment in plant fund 1,762 - 23,496,531 - - - - - - 23,498,293
Non-capitalized construction expenses - - 1,780,861 - - - - - - 1,780,861
Total deductions 1,762 - 25,277,392 - - - - - - 25,279,154
Fund balance at June 30, 2011 $ 558,550 $ - $ 1,723,946 $ - $ - $ - $ - $ - $ - $ 2,282,496
49
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
DESIGNATED FUNDS - AUXILIARY ACTIVITIES
STATEMENT OF CHANGES IN PLANT FUND BALANCES BY ENTITY
For the Year Ended June 30, 2011
Unique Continuing
Student/ Charges Public Education
Student Fee Material Service Staff Educational Credit Service Indirect Contract
Programs Fees Departments Programs Services Courses Activities Costs Credit Total
OTHER RESERVES
Fund balance at July 1, 2010 $ 1,523,908 $ - $ - $ - $ - $ - $ - $ - $ - $ 1,523,908
Reserve Additions
Current Funds 582,896 - - - - - - - - 582,896
Change in fair value of investments - - - - - - - - - -
Total additions 582,896 - - - - - - - - 582,896
Reserve Deductions
Transfer to Current funds - - - - - - - - - -
Total deductions - - - - - - - - - -
Fund balance at June 30, 2011 $ 2,106,804 $ - $ - $ - $ - $ - $ - $ - $ - $ 2,106,804
50
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS
CURRENT FUNDS, UNRESTRICTED
BALANCE SHEET BY ENTITY
June 30, 2011
Student Student Textbook
Living Facilities Rental Total
Cash and cash equivalents $ 3,328,221 $ 275,014 $ 7 52,501 $ 4,355,736
Investments 33,243 4,101 - 37,344
Accounts receivable 3,433,171 184,459 5 69,248 4,186,878
Inventories 164,385 1,233,347 - 1,397,732
Prepaid expenses 24,774 3,355 - 28,129
Other noncurrent assets 290,019 82,134 - 372,153
Total assets $ 7,273,813 $ 1 ,782,410 $ 1 ,321,749 $ 1 0,377,972
Accounts payable $ 1,959,429 $ 2,158,482 $ 7 7,944 $ 4,195,855
Accrued payroll 578,596 106,255 1 5,521 700,372
Security deposits 732,992 - - 732,992
Accrued compensated absences 1,048,085 222,472 3 0,665 1,301,222
Deferred income, room and board 92,688 - - 92,688
Deferred income, other 54,453 107,611 7 2,577 234,641
Total liabilities 4,466,243 2,594,820 1 96,707 7,257,770
Fund balances 2,807,570 (812,410) 1 ,125,042 3,120,202
Total liabilities and fund balances $ 7,273,813 $ 1 ,782,410 $ 1 ,321,749 $ 1 0,377,972
ASSETS
LIABILITIES AND FUND BALANCES
51
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS
STATEMENT OF CURRENT FUNDS, UNRESTRICTED
REVENUES AND EXPENDITURES BY ENTITY
For the Year Ended June 30, 2011
Student Student Textbook
Living Facilities Rental Total
Revenues
Room and board $ 32,868,819 $ - $ - $ 32,868,819
Duplicating 1,604 335,760 - 337,364
Bowling and recreation - 64,795 - 64,795
Merchandise sales 94,081 2,111,181 398,794 2,604,056
Other 242,688 141,916 167,419 552,023
Student fees 658,959 2,706,639 - 3,365,598
Operating fee - 2,162,254 3,067,519 5,229,773
Desk sales revenue 1,301,642 91,670 - 1,393,312
Games revenue 1,210 - - 1,210
Subsidy reduction fee - 62,983 15,907 78,890
Canned drink sales - 45,409 - 45,409
Vending 247,777 36,560 - 284,337
Service and rental fees 55,209 94,433 2 89 149,931
Total revenues 35,471,989 7,853,600 3,649,928 46,975,517
Expenditures
Merchandise 6,232 1,973,763 - 1,979,995
Food 4,513,876 60,979 - 4,574,855
Salaries
Faculty 1,548,481 177,329 - 1,725,810
Civil service 8,782,918 2,015,659 302,300 11,100,877
Student 2,014,427 222,980 138,647 2,376,054
Resident assistants 1,073,075 - - 1,073,075
Compensated absences (127,852) 20,925 (16,186) (123,113)
Commodities
Office and administrative supplies 91,933 70,706 1 6,042 178,681
Household - cleaning supplies 353,569 - - 353,569
Other commodities 784,377 165,692 1 9,639 969,708
Operation of automotive equipment 17,179 2,923 - 20,102
Travel 11,598 184 - 11,782
Contractual services
Repairs 596,135 134,478 20,168 750,781
Rentals 292,723 1,594 - 294,317
Services 468,035 171,076 294,347 933,458
Insurance (137,583) (39,460) - (177,043)
Operating taxes and fees 193,706 103,016 1 4,468 311,190
Utilities 3,238,746 891,560 18,263 4,148,569
Office and administrative 11,774 40 - 11,814
Other contractual services 2,433,643 514,577 3 1,937 2,980,157
Equipment 83,935 23,881 1 ,389 109,205
Telecommunications charges 568,409 11,885 4 ,455 584,749
Waivers & scholarships 27,406 98,286 4 6,678 172,370
Building improvement 28,531 6,711 5 ,816 41,058
Total expenditures 26,875,273 6,628,784 897,963 34,402,020
Excess of revenues over expenditures $ 8,596,716 $ 1 ,224,816 $ 2 ,751,965 $ 12,573,497
52
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS
STATEMENT OF CURRENT FUNDS, UNRESTRICTED
STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY
For the Year Ended June 30, 2011
Student Student Textbook
Living Facilities Rental Total
Fund balances at July 1, 2010 $ 2,368,596 $ 162,717 $ 1,069,088 $ 3,600,401
Revenues and other additions
Operating revenues 35,471,989 7,853,600 3,649,928 46,975,517
Expenditures and other deductions
Operating expenditures 26,890,659 6,577,267 906,944 34,374,870
Change in compensated absences (127,852) 20,925 (16,186) (123,113)
Equipment 83,935 23,881 1,389 109,205
Building improvements 28,531 6,711 5,816 41,058
Total expenditures and other deductions 26,875,273 6,628,784 897,963 34,402,020
Transfers among funds
Deductions
Mandatory transfers
Debt retirement (2,978,278) (1,909,247) (305,911) (5,193,436)
Non-mandatory transfers
Repair and replacement reserve (1,109,304) (290,696) - (1,400,000)
Project Director reserve (4,070,160) - (2,390,100) (6,460,260)
Total transfers (8,157,742) (2,199,943) (2,696,011) (13,053,696)
Net increase (decrease) for the year 438,974 (975,127) 55,954 (480,199)
Fund balances at June 30, 2011 $ 2,807,570 $ (812,410) $ 1,125,042 $ 3,120,202
53
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS
PLANT FUNDS
BALANCE SHEET BY ENTITY
June 30, 2011
Student Student Textbook
Living Facilities Rental Total
ASSETS
RENEWAL AND REPLACEMENT
Cash and temporary cash investments $ 4,922,747 $ 2,665,058 $ 955,406 $ 8,543,211
Investments 14,356 13,900 4,983 33,239
Total renewal and replacement 4,937,103 2,678,958 960,389 8,576,450
RETIREMENT OF INDEBTEDNESS
Bond and interest sinking fund
Cash and temporary investments (1,309,140) (800,860) (25,000) (2,135,000)
Accounts receivable 1,505,901 929,384 77,562 2,512,847
Bond issuance costs
Other assets 79,315 51,763 87,531 218,609
Total retirement of indebtedness 276,076 180,287 140,093 596,456
INVESTMENT IN PLANT
Accounts receivable 97,931 396,415 - 494,346
Bond discount 353,913 242,027 14,311 610,251
Land 118,981 - - 118,981
Building and site improvements 84,161,444 39,363,911 3,740,771 127,266,126
Equipment 1,315,742 1,326,562 8,417,723 11,060,027
Accumulated depreciation (46,171,870) (20,117,864) (6,480,844) (72,770,578)
Construction in progress 6,207,378 223,054 - 6,430,432
Total investment in plant 46,083,519 21,434,105 5,691,961 73,209,585
PROJECT CONSTRUCTION
Cash and temporary investments - - 520,565 520,565
Investments - - 2,714 2,714
Total development reserve - - 523,279 523,279
Total assets $ 51,296,698 $ 24,293,350 $ 7,315,722 $ 82,905,770
54
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS
PLANT FUNDS
BALANCE SHEET BY ENTITY
June 30, 2011
Student Student Textbook
Living Facilities Rental Total
RENEWAL AND REPLACEMENT
Accounts payable $ 122,541 $ 1,600 $ - $ 124,141
Renewal and replacement reserve 4,814,562 2,677,358 960,389 8,452,309
Total renewal and replacement 4,937,103 2,678,958 960,389 8,576,450
RETIREMENT OF INDEBTEDNESS
Accounts payable 196,761 128,524 52,562 377,847
Bond and interest sinking fund reserve - - - -
Bond issuance costs 79,315 51,763 87,531 218,609
Total retirement of indebtedness 276,076 180,287 140,093 596,456
INVESTMENT IN PLANT
Accounts payable - 508 - 508
Revenue bonds outstanding 16,742,682 11,002,318 4,040,000 31,785,000
Notes payable - 27,803 - 27,803
Lease obligations 1,137,467 523,778 - 1,661,245
Bond premium 269,946 169,638 - 439,584
Net investment in plant 27,933,424 9,710,060 1,651,961 39,295,445
Total investment in plant 46,083,519 21,434,105 5,691,961 73,209,585
PROJECT CONSTRUCTION
Accounts payable - - - -
Construction reserve - - 523,279 523,279
Total project construction - - 523,279 523,279
Total liabilities and fund balances $ 51,296,698 $ 24,293,350 $ 7,315,722 $ 82,905,770
LIABILITIES AND FUND BALANCES
55
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS
PLANT FUNDS
STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY
For the Year Ended June 30, 2011
Student Student Textbook
Living Facilities Rental Total
RENEWAL AND REPLACEMENT
Fund balances at July 1, 2010 $ 4,635,634 $ 2,695,608 $ 927,138 $ 8,258,380
Other revenues - 200,000 - 200,000
Non-mandatory transfers - current 1,109,304 290,696 - 1,400,000
Non-mandatory transfers - Project Directors' accounts 4,070,160 - 2,390,100 6,460,260
Repair expenditures (5,000,536) (508,946) (29,550) (5,539,032)
Textbook expenditures - - (2,327,299) (2,327,299)
Fund balances at June 30, 2011 $ 4,814,562 $ 2,677,358 $ 960,389 $ 8,452,309
RETIREMENT OF INDEBTEDNESS
BOND AND INTEREST SINKING FUND
Fund balances at July 1, 2010 $ - $ - $ - $ -
Mandatory transfer from current fund 2,978,278 1,909,247 305,911 5,193,436
Debt retirement principal (2,154,230) (1,370,770) (95,000) (3,620,000)
Debt retirement interest (824,048) (538,477) (210,911) (1,573,436)
Fund balances at June 30, 2011 - - - -
BOND ISSUANCE COSTS
Fund balances at July 1, 2010 $ 112,468 $ 72,410 $ 97,298 $ 282,176
Bond closing costs amortization (33,153) (20,647) (9,767) (63,567)
Fund balances at June 30, 2011 79,315 51,763 87,531 218,609
Total retirement of indebtedness - June 30, 2011 $ 79,315 $ 51,763 $ 87,531 $ 218,609
56
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS
PLANT FUNDS
STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY
For the Year Ended June 30, 2011
Student Student Textbook
Living Facilities Rental Total
INVESTMENT IN PLANT
Fund balances at July 1, 2010 $ 23,515,347 $ 9,052,436 $ 1,205,512 $ 33,773,295
Equipment purchased (net of deletions) 81,450 147,545 2,356,851 2,585,846
Buildings/sites (net of deletions) 3,821,948 135,871 225,708 4,183,527
Loss on disposal 3,000 1,700 - 4,700
Depreciation (2,706,485) (1,311,641) (2,229,513) (6,247,639)
Debt retirement - principal payment 3,162,378 1,655,424 95,000 4,912,802
Bond discount expense (71,921) (49,417) (1,597) (122,935)
Bond premium amortization 127,707 78,142 - 205,849
Fund balances at June 30, 2011 $ 27,933,424 $ 9,710,060 $ 1,651,961 $ 39,295,445
PROJECT CONSTRUCTION
Fund balances at July 1, 2010 $ - $ - $ 671,614 $ 671,614
Construction expenditures - - (148,335) (148,335)
Fund balances at June 30, 2011 $ - $ - $ 523,279 $ 523,279
57
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
AUXILIARY ENTERPRISE FUNDS - OTHER
BALANCE SHEET BY ENTITY
June 30, 2011
Student/Staff Regional
Programs Services Total
ASSETS
CURRENT FUNDS
Cash and temporary cash investments $ 161,648 $ - $ 161,648
Accounts receivable 166,252 - 166,252
Investments 3,144 - 3,144
Total current funds 331,044 - 331,044
PLANT FUNDS
Cash and temporary cash investments 811,259 - 811,259
Investments 1,879 - 1,879
Building and site improvements 3,588,040 - 3,588,040
Land 1,248,811 - 1,248,811
Equipment 72,126 8,455 80,581
Accumulated depreciation (2,594,040) (8,455) (2,602,495)
Construction in progress 482,732 - 482,732
Total plant funds 3,610,807 - 3,610,807
Total assets $ 3,941,851 $ - $ 3,941,851
LIABILITIES AND FUND BALANCES
CURRENT FUNDS
Accounts payable $ 6,478 $ - $ 6,478
Accrued payroll 19,350 - 19,350
Fund balances 305,216 - 305,216
Total current funds 331,044 - 331,044
PLANT FUNDS
Accounts payable 19,555 - 19,555
Non-indentured reserves 793,583 - 793,583
Net investment in plant 2,797,669 - 2,797,669
Total plant funds 3,610,807 - 3,610,807
Total liabilities and fund balances $ 3,941,851 $ - $ 3,941,851
58
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
AUXILIARY ENTERPRISE FUNDS - OTHER
CURRENT FUNDS STATEMENT OF REVENUES AND EXPENDITURES BY ENTITY
For the Year Ended June 30, 2011
Student/Staff Regional
Programs Services Total
REVENUES
Sales, services - enterprises $ 663,057 $ - $ 6 63,057
Fines and penalties 329,400 - 329,400
Other income 26,500 - 2 6,500
Total revenues 1,018,957 - 1 ,018,957
EXPENDITURES
Salaries 294,199 - 2 94,199
Other expenses 99,944 - 9 9,944
Contractual services 123,131 - 1 23,131
Commodities 19,885 - 1 9,885
Total expenditures 537,159 - 5 37,159
Revenues over expenditures $ 481,798 $ - $ 481,798
59
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
AUXILIARY ENTERPRISE FUNDS - OTHER
CURRENT FUNDS STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY
For the Year Ended June 30, 2011
Student/Staff Regional
Programs Services Total
Fund balances at July 1, 2010 $ 274,418 $ - $ 274,418
Revenues and other additions
Operating revenues 1,018,957 - 1,018,957
Change in investment market value - - -
Total revenues and other additions 1,018,957 - 1,018,957
Expenditures and other deductions
Operating expenditures 537,159 - 537,159
Non-mandatory transfers 451,000 - 451,000
Total expenditures and other deductions 988,159 - 988,159
Net increase for the year 30,798 - 30,798
Fund balances at June 30, 2011 $ 305,216 $ - $ 305,216
60
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
AUXILIARY ENTERPRISE FUNDS - OTHER
PLANT FUNDS STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY
For the Year Ended June 30, 2011
Student/Staff Regional
Programs Services Total
NON-INDENTURED RESERVES
Fund balances at July 1, 2010 $ 588,290 $ - $ 588,290
Reserve additions
Current funds 451,000 - 451,000
Total additions 451,000 - 451,000
Reserve deductions
Permanent improvements 245,707 - 245,707
Total reductions 245,707 - 245,707
Fund balances at June 30, 2011 $ 793,583 $ - $ 793,583
INVESTMENT IN PLANT
Fund balances at July 1, 2010 $ 2,483,435 $ - $ 2,483,435
Plant additions
Current funds 71,039 - 71,039
Reserve funds 419,362 419,362
Total additions 490,401 - 490,401
Plant reduction
Depreciation 176,167 - 176,167
Total reduction 176,167 - 176,167
Fund balances at June 30, 2011 $ 2,797,669 $ - $ 2,797,669
61
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
ANALYSIS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
For the Years Ended June 30, 2011 and 2010
Increase Percentage
2011 2010 (Decrease) Change
Operating Revenues:
Student tuition and fees $ 76,341,978 $ 75,349,113 $ 992,865 1%
Federal grants and contracts 2,035,912 2,963,553 (927,641) -31% (A)
State grants and contracts 2,475,164 2,534,502 (59,338) -2%
Local grants and contracts 420,163 310,956 109,207 35%
Private grants and contracts 2,014,022 2,332,468 (318,446) -14%
Sales and services of educational departments 4,157,156 4,486,307 (329,151) -7%
Auxiliary enterprises 44,953,396 46,248,703 (1,295,307) -3%
Other operating revenues 2,947,282 2,637,801 309,481 12%
Operating Expenses:
Educational and general
Instruction 94,171,743 93,706,501 465,242 0%
Research 1,147,875 1,231,187 (83,312) -7%
Public service 7,896,281 8,044,122 (147,841) -2%
Academic support 15,736,629 16,095,347 (358,718) -2%
Student services 20,871,872 19,321,993 1,549,879 8%
Institutional support 20,078,350 18,942,757 1,135,593 6%
Operations of maintenance of plant 14,633,999 14,594,327 39,672 0%
Student aid 10,905,280 9,073,353 1,831,927 20% (B)
Auxiliary enterprises 33,661,480 35,716,891 (2,055,411) -6%
Depreciation expense 14,604,059 14,868,320 (264,261) -2%
Nonoperating Revenues (Expenses):
State appropriations 47,417,250 47,613,750 (196,500) 0%
State appropriations through Federal ARRA funds - 2,956,963 (2,956,963) 100% (C)
Payments on behalf of the University 48,399,928 44,755,254 3,644,674 8%
Gifts 1,729,803 1,717,722 12,081 1%
Investment income (net) 108,015 155,102 (47,087) -30%
Net decrease in fair value of investments 86,145 36,791 49,354 134%
Interest on capital asset-related debt (4,731,328) (4,503,647) (227,681) 5%
Nonoperating grants and contracts 16,985,494 14,309,497 2,675,997 19%
Amortization of bond costs, premiums, and discounts (147,037) (57,658) (89,379) 155%
Payments to the Foundation (8,340) (6,740) (1,600) 24%
Loss on disposal of capital assets (58,895) (62,856) 3,961 -6%
Other nonoperating revenues 1,761,392 783,164 978,228 125% (D)
Other Changes in Net Assets:
Capital appropriations 377,404 - 377,404 100% (E)
Capital grants and gifts 1,255,221 450,244 804,977 179% (F)
Transfers from Capital Development Board 240,471 1,212,275 (971,804) -80% (G)
62
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
ANALYSIS OF SIGNIFICANT VARIATIONS IN REVENUE, EXPENSES AND
CHANGE IN NET ASSETS
For the year ended June 30, 2011
All variances greater than $200,000 and more than 20% from fiscal year 2010 are discussed
below. Refer to the Analysis of Revenues, Expenses and Changes in Net Assets on page 60
for the actual dollar changes.
Explanations of significant variances:
(A) Federal grants and contracts – The significant decrease in this account was primarily
due to lower grants this year and concluding other grants related to the Student Success
Center, the Power Plant replacement, the Japanese Beetle Research and Development
grant, and Expanding Instructional Capacity grant. In addition, there was a decrease in
the grants for Peace Meal and Department of Education Campus Safety Equipment.
(B) Student aid expenses – The increase in this account is associated with increased Pell
grants and financial aid provided to students during fiscal year 2011.
(C) State appropriation through Federal ARRA Funds – The decrease pertains to the
funding through the American Recovery and Reinvestment Act, which was only in the
fiscal year 2010.
(D) Other nonoperating revenue – The increase in this account is due to the University
receiving a full year of the Build America Bond subsidy from the federal government
related to the issuance of the Certificate of Participation Series 2009A. In fiscal year
2010, the University only received a half year of the interest credit.
(E) Capital appropriations – The increase in this account is due to the University receiving
capital appropriations from the State in fiscal year 2011. During fiscal year 2010, the
State did not release the University’s capital appropriation.
(F) Capital grants and gifts – The increase in capital grants and gifts is the result of several
grants received relating to the construction of the Renewable Energy Center and other
campus energy savings projects.
(G) Transfers from Capital Development Board – The decrease in this account is due to the
State’s Capital Development Board spending less money on construction projects at the
University during fiscal year 2011.
63
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
ANALYSIS OF SIGNIFICANT VARIATIONS IN ACCOUNT BALANCES
JUNE 30, 2011 AND 2010
Increase Percentage
2011 2010 (Decrease) Change
Assets:
Current assets:
Cash and cash equivalents $ 41,601,939 $ 67,499,797 $ (25,897,858) -38% (A)
Restricted cash and cash equivalents 2,364,394 2,938,168 (573,774) -20% (A)
Short-term investments 245,000 250,000 (5,000) -2%
Restricted short-term investments 16,397 14,244 2,153 15%
Accounts receivable, net of allowance 13,181,079 12,458,834 722,245 6%
State appropriation receivable 20,815,237 13,266,497 7,548,740 57% (B)
Interest receivable 991 2,194 (1,203) -55%
Inventories 2,057,629 1,734,194 323,435 19%
Notes receivable, current portion, net 956,821 922,730 34,091 4%
Other assets 900,632 1,364,408 (463,776) -34%
Noncurrent assets:
Notes receivable, less current portion 5,413,588 5,332,271 81,317 2%
Endowment investments 550,971 459,477 91,494 20%
Other long-term assets 2,565,387 2,043,539 521,848 26%
Capital assets, net of accumulated depreciation 292,808,934 269,602,692 23,206,242 9%
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities 16,649,738 19,736,802 (3,087,064) -16%
Deferred revenues 3,940,806 3,855,752 85,054 2%
Long-term liabilities, current portion 9,610,987 8,929,792 681,195 8%
Noncurrent liabilities:
Long term liabilities, less current portion 134,552,909 141,685,132 (7,132,223) -5%
Federal loan program contributions refundable 5,710,824 5,720,860 (10,036) 0%
64
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
ANALYSIS OF SIGNIFICANT VARIATIONS IN ACCOUNT BALANCES
For the Year Ended June 30, 2011
All variances greater than $200,000 and more than 20% from fiscal year 2010 are discussed
below. Refer to the Analysis of Significant Variations in Account Balances on page 62 for
the actual dollar changes.
Explanations of significant variances:
(A) Cash and cash equivalents and restricted cash and cash equivalents – The significant
decrease in this account is due to the University receiving a lower State appropriation
and slower State payments in fiscal year 2011 and the University spending the
Certificate of Participation 2009A proceeds received in fiscal year 2010.
(B) State appropriation receivable – The increase was due to slower payments of State
appropriations, primarily payroll reimbursements, during fiscal year 2011.
65
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
ANALYSIS OF SIGNIFICANT LAPSE PERIOD SPENDING
For the Year Ended June 30, 2011
There were no significant expenditures incurred during the lapse period.
66
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF ACCOUNTS RECEIVABLE
For the Years Ended June 30, 2011 and 2010
Accounts receivable are as follows at June 30:
Aging Analysis 2011 2010
Current $3,780,128 $4,007,839
1-180 days past due 1,954,283 1,825,830
181 days past due 1,559,160 1,266,909
Over 1 year past due 8,926,917 7,584,322
16,220,488 14,684,900
Grants receivable not aged 1,090,253 1,591,554
Scholarship receivables not aged 1,740,613 997,063
Total accounts receivable 19,051,354 17,273,517
Less: allowance for doubtful accounts (5,870,275) (4,814,683)
$13,181,079 $12,458,834
The majority of the receivables relate to amounts due from student accounts for tuition and
fees and room and board. Smaller receivable amounts are for summer camp activities,
publication advertising and NCAA donations.
Scholarship receivables and grant receivables are not aged due to their nature. These are
usually received from other governmental agencies within the semester in which the billings
or expenses are incurred.
Collection Policies for Accounts Receivable
The University pursues a collection process for student receivables as soon as students begin
their career at EIU. Monthly statements are sent to the students as long as balances exist on
their accounts. Unpaid balances are assessed a 1% per month finance charge. Records of
students who do not pay their balances in full by a specified date are placed on hold so that
they are prevented from receiving University services or registering for classes for the next
semester.
Once students leave the University, monthly statements continue to be sent. After 90 days, if
the balance of the account is more than $1,000, the account is placed in the State
Comptroller’s Offset System. Large accounts (over $200) with no payment activity are
eventually placed with a collection agency for six months. Accounts between $200 and
$1,000 are also placed into the State Comptroller’s Offset System at the time they are
referred to the collection agency.
67
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS
Cash and cash equivalents and investments are as follows as of June 30:
2011 2010
CASH AND CASH EQUIVALENTS
Petty Cash Funds $ 35,940 $ 35,480
The Illinois Funds 43,914,160 70,386,923
Checking accounts
First Mid-Illinois Bank & Trust, Charleston, Illinois 16,233 15,562
Total cash and cash equivalents 43,966,333 70,437,965
INVESTMENTS
Certificate of deposit 245,000 250,000
Mutual funds 567,368 473,721
Total investments 812,368 723,721
Total cash and cash equivalents and investments $ 44,778,701 $ 71,161,686
68
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SUMMARY OF INDIRECT COST REIMBURSEMENT
STATEMENT OF SOURCES AND APPLICATIONS
For the Years Ended June 30, 2011 and 2010
2011 2010
Sources
Federal $ 181,582 $ 239,446
State 123,986 164,158
Other 13,393 13,286
318,961 416,890
Applications
Academic support 129,320 75,525
Institutional support 167,972 100,563
Operations and maintenance of plant 35,054 34,432
Student services 1,335 139,959
333,681 350,479
Sources over applications (14,720) 66,411
Fund balance, beginning of year 225,616 159,205
Fund balance, end of year $ 210,896 $ 225,616
69
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
SUMMARY OF INDIRECT COST REIMBURSEMENT
CALCULATION SHEET FOR INDIRECT COST CARRY-FORWARD
For the Year Ended June 30, 2011
1. Cash and Cash Equivalents Balance
Enter the June 30 indirect cost entity balance for cash and equivalents $ 213,919
2. Allocated Reimbursements
$805,016; enter 30% of this amount 241,505
3. Unallocated Reimbursements
-
4. Encumbrances and Current Liabilities Paid in the Lapse Period
Enter the amount of
Current liabilities 3,023
Encumbrances -
Total 3,023
5. Indirect Cost Carry-forward
a. Enter the total of items 2, 3 and 4 244,528
$ ( 30,609)
the Income Fund $ -
Enter the lesser of the actual unallocated indirect cost
reimbursements for the year completed OR 10% of total indirect cost
allocations for the year completed
Subtract line 5a. from item 1
Enter the total indirect cost reimbursements allocated for
expenditure for the fiscal year completed
If the positive number results, enter here and remit for deposit in
70
STATE OF ILLINOIS
EASTERN ILLINOIS UNIVERSITY
UNIVERSITY FUNCTIONS AND PLANNING PROGRAM
For the Year Ended June 30, 2011
Description of Planning System
Eastern Illinois University’s mission statement states that it offers superior, accessible
undergraduate and graduate education. Students learn the methods and results of free and
rigorous inquiry in the arts, humanities, sciences, and professions, guided by a faculty
known for its excellence in teaching, research, creativity activity, and service. The
University community is committed to diversity and inclusion and fosters opportunities for
student-faculty scholarship and applied learning experiences within a student-centered
campus culture. Throughout their education, students refine their abilities to reason and to
communicate clearly so as to become responsible citizens and leaders.
The current University president started in July 2007. Various meetings were conducted
with representative groups of students, faculty, staff, and administration, and public forums
were held for students, faculty, and staff to get the University community’s participation that
would assist the President in assessing the strengths, weaknesses, opportunities, and threats
related to the University’s advancement. As a result of these meetings, the established
University-wide strategic objectives focused on:
1. Upholding excellence;
2. Strengthening the EIU personal experience for all members of the EIU community;
3. Enhancing accessibility and affordability of an EIU education; and,
4. Supporting service to each other and to community, region, State, nation, and world.
The President also established five University-wide priorities in support of the academic
and personal achievement of the students:
1. Enhancing support for excellence in faculty scholarship and teaching, in particular
faculty-mentored undergraduate research, scholarship, and creative activities;
2. Enhancing service and leadership opportunities for students;
3. Enhancing fine arts programming and outreach;
4. Enhancing study abroad opportunities; and,
5. Enhancing honors programs.
The Office of Planning and Institutional Studies is responsible for gathering University
information that provides criteria to assess progress toward the achievement of objectives
assigned to each Vice Presidents, Deans and Directors. The Department has developed a
University Metrics that shows the priorities and the list of measures used to determine the
University performance in meeting the g
Object Description
| Title | Eastern Illinois University. Compliance Examination for the Year Ended June 30, 2011 |
Description
| Title | FY11-EIU-Comp-Full |
| Transcript | STATE OF ILLINOIS EASTERN 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 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY COMPLIANCE EXAMINATION (In Accordance with the Single Audit Act and OMB Circular A-133) For the Year Ended June 30, 2011 TABLE OF CONTENTS Page University Officials 1 Management Assertion Letter 2 Compliance Reports Summary 4 Accountants’ Reports Independent Accountants’ Report on State Compliance, on Internal Control over Compliance, and on Supplementary Information for State Compliance Purposes 7 Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 11 Independent Auditors’ Report on Compliance with Requirements that could have a Direct and Material Effect on Each Major Program, on Internal Control over Compliance, and on the Schedule of Expenditures of Federal Awards in Accordance with OMB Circular A-133 13 Schedule of Findings and Questioned Costs Summary of Auditors’ Results 16 Current Findings – Government Auditing Standards 17 Current Findings – Federal and Questioned Costs 22 Current Findings – State Compliance 24 Prior Finding Not Repeated 30 Financial Statement Report The University’s financial statement report for the year ended June 30, 2011, which includes the report of independent auditors, management discussion and analysis, 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 the basic financial statements performed in accordance with Government Auditing Standards has been issued separately. Supplementary Information for State Compliance Purposes Summary 31 Fiscal Schedules and Analysis Schedule of Expenditures of Federal Awards 33 Notes to the Schedule of Expenditures of Federal Awards 39 Schedule of Appropriations, Expenditures, Lapsed and Reappropriated Balances 42 Comparative Schedule of Net Appropriations, Expenditures, Lapsed and Reappropriated Balances 43 Comparative Schedule of Income Fund Revenues and Expenses 44 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY COMPLIANCE EXAMINATION (In Accordance with the Single Audit Act and OMB Circular A-133) For the Year Ended June 30, 2011 TABLE OF CONTENTS Page Schedule of Changes in Capital Assets 45 Auxiliary Enterprises and Activities, Financial Statements by Functional Entity Designated Funds - Auxiliary Activities: Balance Sheet by Entity 46 Current Funds Statement of Changes in Fund Balances by Entity 47 Statement of Changes in Plant Fund Balances by Entity 48 Auxiliary Enterprise Funds - Revenue Bonds: Current Funds, Unrestricted, Balance Sheet by Entity 51 Statement of Current Funds, Unrestricted, Revenues and Expenditures by Entity 52 Statement of Current Funds, Unrestricted, Statement of Changes in Fund Balances by Entity 53 Plant Funds, Balance Sheet by Entity 54 Plant Funds, Statement of Changes in Fund Balances by Entity 56 Auxiliary Enterprise Funds - Other: Balance Sheet by Entity 58 Current Funds Statement of Revenues and Expenditures by Entity 59 Current Funds Statement of Changes in Fund Balances by Entity 60 Plant Funds Statement of Changes in Fund Balances by Entity 61 Analysis of Revenues, Expenses and Changes in Net Assets 62 Analysis of Significant Variations in Account Balances 64 Analysis of Significant Lapse Period Spending 66 Schedule of Accounts Receivable 67 Schedule of Cash and Cash Equivalents and Investments 68 Summary of Indirect Cost Reimbursement: Statement of Sources and Applications 69 Calculation Sheet for Indirect Cost Carry-Forward 70 Analysis of Operations University Functions and Planning Program 71 Average Number of Employees 74 Service Efforts and Accomplishments (unaudited) 75 Schedule of Federal Expenditures, Nonfederal Expenses and New Loans 76 Undergraduate Tuition and Fee Waivers (unaudited) 77 Graduate Tuition and Fee Waivers (unaudited) 78 Bookstore and Textbook Rental Information (unaudited) 79 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY COMPLIANCE EXAMINATION (In Accordance with the Single Audit Act and OMB Circular A-133) For the Year Ended June 30, 2011 TABLE OF CONTENTS Page University Guidelines 1982, as amended 1997 Special Data Requirements for Audits of Universities 80 Summary of Eastern Illinois University Foundation Payments to the University 83 Summary of Eastern Illinois University Alumni Association, Inc. Payments to the University 84 Description of Accounting Entities, Sources of Revenue and Purpose of Each Entity 85 Calculation Sheets for Current Excess Funds 87 Schedule of Accrued Liability for Employee Compensated Absences (unaudited) 90 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY UNIVERSITY OFFICIALS June 30, 2011 President Dr. William L. Perry Provost and Vice President for Academic Affairs Dr. Blair M. Lord Vice President for Business Affairs Dr. William V. Weber Vice President for Student Affairs Dr. Daniel P. Nadler Vice President for University Advancement Mr. Robert K. Martin Director of Business Services and Treasurer Mr. Paul A. McCann, CPA General Counsel Mr. Robert L. Miller Director of Internal Auditing Ms. Sharon K. McRaven, CPA, CIA BOARD OF TRUSTEES (as of June 30, 2011) Chairperson Mr. Leo Welch Vice Chairperson Dr. Robert Webb Secretary Mr. Roger Krotochvil Member Pro-tem Mr. William O’Rourke (A) Member Ms. Julie Nimmons (B) Member Vacant Member Vacant Student Member Ms. Christine Anderson (A) term expired, continues to serve until a successor is appointed (B) term expired, continues to serve until a successor is appointed University offices are located at: 600 Lincoln Avenue Charleston, Illinois 61920 1 2 ~ Vice President for Business Affairs and Treasurer, Board of Trustees 600 Lincoln Avenue Charleston, Illinois 61920-3099 Officeo (217) 581-2921 Faxo (217) 581-3290 :.:=_-==-c~:c=_:c__ _____ - ·---------- EASTERN ILLINOIS UNIVERSITY MANAGEMENT ASSERTION LETIER January31, 2012 E. C. Ortiz & Co., LLP Certified Public Accountants 333 S. Des Plaines, Suite 2-N Chicago, lllinois 60661 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 State of lllinois, Eastern lllinois University. We are responsible for and we have established and maintained an effective system of internal controls over compliance requirements, except as disclosed to the auditors during the engagement We have performed an evaluation of the State of illinois, Eastern lllinois University's compliance with the following assertions during the year ended June 30, 201 L Based on this evaluation, we assert that during the year ended June 30, 2011, the State oflllinois, Eastern lllinois University has materially complied with the assertions below. A The State oflllinois, Eastern lllinois 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 State of lllinois, Eastern lllinois University has obligated, expended, received and used public funds of the State in accordance with any limitations, restrictions, conditions or mandatory directions imposed by law upon such obligation, expenditure, receipt or use. C. The State of lllinois, Eastern lllinois University has complied, in all material respects, with applicable laws and regulations, including the State uniform accounting system, in its financial and fiscal operations. D. State revenues and receipts collected by the State of Illinois, Eastern Illinois 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. 3 E. Money or negotiable securities or similar assets handled by the State of Illinois, Eastern Illinois 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, State oflllinois, Eastern Illinois University Dr. William Weber, Vice President for Business Affairs Mr. Paul McCann, Director of Business Services and Treasurer STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY COMPLIANCE REPORT SUMMARY For the Year Ended June 30, 2011 The compliance testing performed during this examination was conducted in accordance with Government Auditing Standards and in accordance with the Illinois State Auditing Act. ACCOUNTANTS’ REPORTS The Independent Accountants’ Report on State Compliance, on Internal Control Over Compliance and on Supplementary Information for State Compliance Purposes does not contain scope limitations, disclaimers, or other significant non-standard language. SUMMARY OF FINDINGS Number of Current Report Prior Report Findings 8 5 Repeated findings 4 1 Prior recommendations implemented or not repeated 1 4 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Item No. Page Description Finding Type FINDINGS (GOVERNMENT AUDITING STANDARDS) 11-1 17 Inaccurate Accounting for Participation in a Public Entity Risk Pool Significant deficiency 11-2 20 Inaccurate Capital Asset Accounting and Depreciation Calculations Significant deficiency FINDINGS AND QUESTIONED COSTS (FEDERAL COMPLIANCE) 11-3 22 Noncompliance with Verification Requirements Noncompliance and Significant deficiency 4 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY COMPLIANCE REPORT SUMMARY For the Year Ended June 30, 2011 FINDINGS (STATE COMPLIANCE) 11-4 24 Failure to Provide a Comprehensive Listing of Laws and Regulations Noncompliance and significant deficiency 11-5 25 Late Deposit of Receipts and Refunds Noncompliance and significant deficiency 11-6 26 Delinquent Reporting of Bond Activity Noncompliance and significant deficiency 11-7 28 Timesheets not Required Noncompliance and significant deficiency 11-8 29 Noncompliance with Ethics Training Requirements Noncompliance and significant deficiency In addition, the following findings which are reported as current findings relating to Government Auditing Standards also meet the reporting requirement for State Compliance. 11-1 17 Inaccurate Accounting for Participation in a Public Entity Risk Pool Noncompliance and significant deficiency 11-2 20 Inaccurate Capital Asset Accounting and Depreciation Calculations Noncompliance and significant deficiency PRIOR FINDING NOT REPEATED A 30 Noncompliance with Federal Reporting Requirements 5 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY COMPLIANCE REPORT SUMMARY For the Year Ended June 30, 2011 EXIT CONFERENCE The findings and recommendations appearing in this report were discussed with University personnel at an exit conference on January 23, 2012. Attending were: Eastern Illinois University William Weber, Vice President for Business Affairs Paul McCann, Director of Business Services and Treasurer Michael Hutchinson, Interim Assistant Comptroller Tami Babbs, Interim Assistant Comptroller Sherry McRaven, Director of Internal Audit Kathy Reed, Assistant Vice President - Information Technology Services Office of the Auditor General Daniel J. Nugent, Audit Manager E. C. Ortiz & Co. LLP Marites Sy, Partner Shirley Trinidad, Manager The responses to the recommendations were provided by Paul McCann, Director of Business Services and Treasurer, in a letter dated January 31, 2012. 6 E.C. ORTIZ & CO., LLP CERTIFIED PUBLIC ACCOUNTANTS Independent Accountants' Report on State Compliance, on Internal Control over Compliance, and on Supplementary Information for State Compliance Purposes Honorable William G. Holland Auditor General State of Illino1 s and The Board of Trustees State of Illinois- Eastern Illinois University Compliance As Special Assistant Auditors for the Auditor General, we have examined the State of illinois - Eastern Illinois University's 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 (Audit Guide) as adopted by the Auditor General, during the year ended June 30, 2011. The management ofthe State of Illinois- Eastern Illinois University is responsible for compliance with these requirements. OUT responsibility is to express an opinion on the State of Illinois - Eastern Illinois University's compliance based on our examination. A. The State of Illinois - Eastern Illinois 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 State of Illinois- Eastern Illinois University has obligated, expended, received, and used public funds of the State in accordance with any limitations, restrictions, conditions or mandatory directions imposed by law upon such obligation, expenditure, receipt or use. C. The State of Illinois - Eastem Illinois University has complied, in all material respects, with applicable laws and regulations, including the State uniform accounting system, in its financial and ·fiscal operations. D. State revenues and receipts collected by the State of Illinois- Eastern Illinois 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. 333 SOUTH DES PLAINES STREET, SUITE 2-N CHICAGO. ll 60661 [d: 3 12.876.1900 fax: 312.876.1911 7 E. Money or negotiable securities or similar assets handled by the State of Illinois - Eastern Illinois University on behalf of the State or held in trust by the State of illinois - Eastern Illinois University have been properly and legally administered and the accounting and recorclkeeping relating thereto is proper, accurate, and in accordance with law. We conducted our examination in accordance with attestation standards established by the American Institute of Certified Public Accountants; the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States; the Illinois State Auditing Act (Act); and the Audit Guide as adopted by the Auditor General pmsuant to the Act; and, accordingly, included exan'lining, on a test basis, evidence about the State of Illinois - Eastern Illinois University's compliance with those requirements listed io the fll-st paragraph of this repmi and performing such other procedmes as we considered necessary in the circumstances. We believe that m.u· examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the State oflllinois- Eastern Illinois University's compliance with specified requirements. In our opinion, the State of illinois - Eastem Illinois 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 om procedm:es disclosed instances of noncompliance with the requirements, which are required to be reported in accordance with criteria established by the Audit Guide, issued by the Illinois Office of the Auditor General and which are described in the accompanying schedule of findings and questioned costs as items 11-1, 11-2; 11-4, 11-5, 11-6, 11-7, and 11-8. Intemal Control Management of tl1e State of illinois - Eastern Illinois University is responsible for establishing and maintaining effective iuternaJ control over compliance with the requirements listed in the first paragraph of this repmt. In planning and performing om examination, we considered the State of Illinois - Eastern Illinois University's internal control over compliance with the requirements listed in the first paragraph of this repmt as a basis for designing our examination procedures for the purpose of expressing om 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 pmpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do ·not express an opinion on the effectiveness of the State of Illinois - Eastem Illinois University's internal control over compliar1ce. 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 repmt 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 8 noncompliance with a requirement listed in the first paragraph of this report will not be prevented, or detected and corrected, ou a timely basis. Our consideratiou of internal control over compliance was for the limited purpose described in the first paragraph of this sectiou and was not designed to ideutify all deficiencies in intemal control over compliance that might be deficiencies, significant deficieucies, 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 intemal control over compliance that we considered to be significant deficiencies as described in the accompanying schedule of findings and question costs as items 11-1, 11-2, 11-4, 11-5, 11-6, 11-7 and 11-8. A significant deficiency in an entity's internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. As required by the Audit Guide, immaterial findings excluded from this repmt have been reported in a separate letter to yom office. The State of Illinois- Eastern Illinois 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 State of Illinois - Eastern Illinois University's responses and, accordingly, we express no opinion on the responses. 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 State of illinois - Eastern Illinois University and its aggregate discretely presented component units as of and for the year ended June 30, 2011, which collectively comprise the State of illinois - Eastern illinois University's basic financial statements, and have issued our report thereon dated January 31, 2012. Our report was modified to include reference to other auditors. Other auditors audited the financial statements of the State of Illinois - Eastern Illinois University's discretely presented component units, as described in om report on the State of illinois - Eastern Illinois 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 State of illinois - Eastern illinois 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 fmancial statements for the year ended June 30, 2011 talcen as a whole. We have also previously audited, in accordance with auditing standards generally accepted in the United States, the State of Illinois - Eastern Illinois University's basic financial statements 9 for the year ended June 30, 2010. In our report dated April 1, 2011 of prior repmt on basic financial statements, we expressed unqualified opinions on the respective financial statements of the business-type activities and the aggregate discretely presented component units. Our report was modified to include a reference to other auditors. Other auditors audited the fmancial statements of the State of Illinois -Eastern illinois University's discretely presented component units, as desc1ibed in our report on the State of Illinois - Eastern illinois University's 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. 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, the State of Illinois - Eastern Illinois University's management, and federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties. E· (!,. ~?J ~ Co.) LlP January 31,2012 10 E.C. ORTIZ & CO., LLP CERTIFIED PUBLIC ACCOUNTANTS Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Honorable William G. Holland Auditor General State of Illinois and The Board of Trustees State of Illinois- Eastern Illinois University As Special Assistant Auditors for the Auditor General, we have audited the financial statements of the business-type activities of the State of Illinois - Eastern Dlinois 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 1he State of Illinois - Eastem Illinois University's basic financial statements and have issued Otll' report thereon dated Januruy 31, 2012. Om rep01t 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 fu1ancial statements of the University's discretely presented component units, as described in OW' report on the University's financial statements. This report does not include the results of the other auditors' testing of internal control over financial rep01ting or compliance and other matters that are reported on separately by those auditors. Intemal Control Over Financial Reporting Management of the State of Illinois - Eastern Illinois University is responsible for establishing and maintaining effective intemal contro] over financial reporting. ln plruming and performing our audit, we considered tl1e State of Ulinois - Eastem Illinois University's intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the fmancial statements and not for the purpose of expressing an opinion on the effectiveness of the State of Illinois - Eastem illinois University's intemal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the State of illinois- Eastern illinois University's intemal 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 n01mal 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 333 SO UTH DES PLAINES STREET, SUITE 2-N CHICAGO , IL 60661 11 te l: 312.87 6. 1900 fax : 3 12 . 8 7 6.1911 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 certain deficiencies in internal control over financial reporting, desctibed in findings 11-1 and 11-2 in the accompanying schedule of fmdings, that we consider to be significant deficiencies in internal control over financial reporting. A sign~ficant deficiency is a deficiency, or a combination of deficiencies, in intemal 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 State of Illinois - Eastern Illinois University's financial statements are free of material misstatement, we perfonned 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 State of Illinois- Eastern Illinois University's responses to the findings identified in our audit are described in the accompanying schedule of fmdings. We did not audit the State of Illinois -Eastern illinois 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, the State of Illinois - Eastem illinois University management, and federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specifi~d parties. f. C. ~-- ~ ev. L-1--P January 31, 20;;-/ 12 E.C. ORTIZ & CO .• LLP C ERTI FIED PUBLIC ACCOUNTANTS Independent Auditors' Report on Compliance with Requirements that could have a Direct and Material Effect on Each Major Program, on Internal Control over Compliance, and on the Schedule of Expenditures of Federal Awards in Accordance with OMB Circular A-133 Honorable William G. Holland Auditor General State of Illinois and The Board of Trustees State oflllinois - Eastern Illinois University Compliance We have audited the State oflllinois- Eastern Illinois University's compliance with the types of compliance requirements desclibed in the US. Office of A1anagement and Budget (OMB) Circular A -13 3 Compliance Supplement that could have a direct and material effect on each of the State of Illinois - Eastem Illinois University's major federal programs for the year ended June 30, 2011. The State of Illinois -Eastern Illinois University's major federal programs are identified in the summruy of auditors' 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 State of Illinois- Eastem Illinois University's management. Our responsibility is to express an opinion on the State of illinois- Eastern illinois University's compliance based on our audit. The Schedule of ExpenditlU'es of Federal Awards and our audit described below does not include expenditures of federal awru·ds for those agencies determined to be component units of the State of Illinois- Eastem illinois University for financial statement pmposes. We conducted om· 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 Olvffi Circular A-133, Audits of States, Local Goverrrments, and Non-Profit Organizations. Those standards and Olvffi Circular A-133 require that we plan and perform the audit to obtain reasonable asslU'a.J.1Ce about whether noncompliance with the types of compliance requirements refened to above that could have a direct and material effect on a major federal program OCCUlTed. An audit includes examining, on a test basis, evidence about the State of Illinois - Eastem Illinois University's compliance with those requiJ:ements and performing such other 333 SOUTH DES PLAINES STREET , SUITE 2-N CHICAGO. IL 60661 te l: 312 . 876.1900 fax : 312.876 .1911 13 procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for oUl· opinion. Our audit does not provide a legal determination of the State oflllinois- Eastern Illinois University's compliance with those requirements. In our opinion, the State of illinois - Eastern Illinois University complied, in all rnatetial 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 an instance of noncompliance with those requirements, which is required to be reported in accordance with Olv1B Circular A-133 and which is described in the accompanying schedule of :findings and questioned costs as item 11-3. Intemal Control Over Compliance The management of the State of Tilinois - Eastern illinois University is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the State of fllinois - Eastern lllinois University's internal control over compliance with the 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 repmt on intemal control over compliance in accordance with Olv1B Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of intemal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the State of illinois - Eastern ILLinois University's internal control over compliance. A deficiency in internal control over com.pliance exists when the design or operation of a control over compliance does not allow management or employees, iri 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 we a/mess in internal conttol 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 wealmesses. We did not identify any deficiencies in internat control over compliance that we consider to be matetial wealmesses, as defined above. However, we identified certain deficiency in internal control over compliance that we consider to be a significant deficiency as described in the accompanying Schedule of Findings and Questioned Costs as item 11-3. A significant deficiency in internal control over compliance is a deficiency, or a combipation 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 impmtant enough to merit attention by those charged with governance. 14 Schedule ofExpenditures ofFederal Awards We have audited the financial statements of the business-type activities of the State of IllinoisEastern illinois University as of and for the year ended June 30, 2011, and have issued our report thereon dated January 31, 2012. Our report was modified to include a reference to other auditors. Other auditors audited the financial statements of the State of Illinois - Eastern Illinois University's discretely presented component units, as described in our report on the State of Tilinois - Eastem Illinois University's financial statements. Om audit was pe1formed for the purpose of forming opinions on the financial statements that collectively comprise State of Illinois - Eastern Illinois University's basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by O:MB Circular A-133 and is not a required part of the basic fmancial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects, in relation to the basic financial statements taken as a whole. The State of Illinois- Eastem Illinois University's response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. We did not audit State of illinois - Eastern illinois University's response and, accordingly, we express no opinion on the response. This repmt is intended solely for the information and use of the Auditor General, the General Assembly, the Legislative Audit Commission, the Governor, the Board ofTrustees, the State of Illinois- Eastern Illinois University management, and federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties. ;; ·C . ~' -5t u., J-L-P January 31, 2012J 15 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COST For the Year Ended June 30, 2011 SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditors’ report issued: Unqualified Internal control over financial reporting: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified 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(ies) identified not considered to be material weaknesses? X Yes None Reported Type of auditors’ report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section .510(a) X Yes No Identification of major programs: CFDA Numbers Name of Federal Program or Cluster 84.038, 84.268, 84.033, 84.063, 84.007, 84.379, 84.375, 84.376 Student Financial Aid Cluster 47.074, 47.050, 47.049, 47.048, 10.206, 15.634, 93.173, 81.003 Research and Development Cluster 93.596, 93.575, 93.713 Child Care and Development Fund Cluster 93.707, 93.045, 93.053 Aging Cluster 93.558 Temporary Assistance For Needy Families 81.086 Conservation Research and Development Dollar threshold used to distinguish between Type A and B programs: $300,000 Auditee qualified as low-risk auditee? Yes X No 16 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS CURRENT FINDING – GOVERNMENT AUDITING STANDARDS 11-1. Finding (Inaccurate Accounting for Participation in a Public Entity Risk Pool) Eastern Illinois University (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 to prepaid insurance and amortized over the term of the current insurance policies, 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 $729,712 and $764,451 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 recorded. Further, we noted the University did not adequately monitor SURMA to ensure SURMA underwent an annual audit in fiscal year 2010 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.” 17 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 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 stated the SURMA By-Laws were adopted cooperatively by the five universities formerly under the Board of Governors. The member universities have been operating under those By-Laws since 1996, prior to the issuance of GASB Interpretation No. 4. The condition found is the result of 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 audit finding. 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 No. 11-1) Recommendation We recommend the University implement controls to monitor the activities of SURMA and properly account for its participation in SURMA in accordance with GAAP. University Response SURMA By-Laws state that with a four/fifths vote of the Board of Directors the entity may be terminated. However, “all members remain fully obligated for the payment of supplementary and other payments attributable to the years during which they were members of the Agency. After the payment of all claims, reserves, administrative costs and expenses, if there are still surplus funds available, such surplus funds shall be distributed to the then-existing members…” Although it is possible that SURMA could be terminated and the funds returned to each member, the likelihood of that happening in our opinion is remote. We look at the pool as being able to mitigate our exposure to losses and therefore we would be unlikely to approve the withdrawal of a member or termination of the pool-particularly if that meant reducing the pool of assets available for the payment of losses. GASB Interpretation #4 states that “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.” We interpret this to mean that the determination is not made simply based upon whether the agreement allows a member to withdraw or terminate but whether the conditions for the withdrawal/termination could reasonably occur. We agree that the return of the contribution is probable based solely upon the financial capacity of the entity. 18 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS However, the provisions of the agreement do not provide a situation that is probable when you consider the necessity for a four/fifths vote and that contributions would be returned thereby reducing the assets available for the other members to pay their losses. We certainly would not vote for a withdrawal/termination when it would affect our ability to pay losses. SURMA had an audit completed of their 2010 fiscal year financial statements, however, its completion was not timely. The report was dated December 19, 2011. Auditor’s Comment As of June 30, 2011, SURMA has the financial capability to return excess capital to the participating universities and the SURMA By-Laws provide a mechanism for returning excess funds to the participating universities following a withdrawal or dissolution. As the accounting standard in question limits the University’s consideration of the probability of a return of the excess capital contributions to “the provisions of the pooling agreement and an evaluation of the pool’s financial capacity to return the contribution,” the University – in our opinion – should and did record the excess capital contribution in their financial statements. 19 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 11-2. Finding (Inaccurate Capital Asset Accounting and Depreciation Calculations) Eastern Illinois University (University) did not properly calculate current depreciation and improperly classified completed projects in the financial statements. During our audit, we noted the following: The University classified 56 asset items as building improvements, which were depreciated using the 50-year estimated useful life of a building instead of the 20- year estimated useful life for building improvements. As a result, current year depreciation expense was understated by $484,489. The auditors proposed an adjusting entry to the University to correct this error, which the University recorded. The University accounted for a substantially completed residence hall window retrofitting project, totaling $923,737, as construction in progress instead of a building improvement. The auditors proposed an adjusting entry to reclassify the project, which University recorded. There was no material effect on the University’s depreciation expense as a result of the misclassification. The University’s depreciation policy states depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 15 to 20 years for site and building improvements. Generally Accepted Accounting Principles (GAAP) and the Statewide Accounting Management System (SAMS), Procedure 03.30.10, requires the University transfer construction costs from construction in progress to an appropriate fixed asset account upon the substantial completion of the project, or when the asset is ready for its intended purpose. Further, the University must allocate depreciation expense for capital assets using a systematic and rational method to the periods benefiting from its use. According to University personnel, the use of 50-year life for building improvements was due to difference in judgment and the misclassification of substantially completed project was due to oversight. Most of these costs were incurred in relation to the University’s energy conservation project for the entire University. With the construction of the University energy steam plant, several costs were incurred and these costs were inadvertently depreciated over 50 years, which is the estimated useful life of the steam plant structure. Failure to adequately monitor and review capital asset activity resulted in misstatements to the University’s financial statements. (Finding Code Nos. 11-2, 10-1) 20 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS Recommendation We recommend the University enhance internal controls over reporting and depreciating capital assets to ensure the proper accounting for asset classifications and depreciation in accordance with both Generally Accepted Accounting Principles and the Statewide Accounting Management System. University Response We agree with the auditor’s recommendation. We will implement controls to improve reporting and depreciation accounting for capital assets. 21 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS CURRENT FINDINGS - FEDERAL COMPLIANCE 11-3. Finding (Noncompliance with Verification Requirements) Federal Agency: United States Department of Education (USDOE) Federal Program: Student Financial Aid Cluster CFDA #: 84.063, 84.038, 84.268, 84.033, 84.007, 84.379, 84.375, 84.376 Total Expenditures: $88,463,627 Questioned Costs: None Eastern Illinois University (University) did not ensure information submitted by students applying for financial aid was properly verified to ensure accurate information is reflected on the Institutional Student Information Report (ISIR). When a student applying for financial aid is selected for verification, the student is required to provide supporting documentation to the University to verify information provided by the student during the application process for accuracy. If the University identifies a discrepancy between the information provided during the application process and the supporting documentation provided by the student, the University updates the student’s information so the ISIR will have correct information to calculate the student’s award. During verification testing, we noted information in the ISIR for two of 68 (3%) students tested did not match with the verification documentation provided by the students. As a result, one noted student’s Expected Family Contribution (EFC) should have been reduced and the student’s Pell award should have been increased by $300. This was corrected by the University by increasing the student’s Pell award in the subsequent academic year. The error for the other student did not ultimately affect the award amount. Upon selection for verification by either the USDOE’s Central Processing System or the University, the Code of Federal Regulations (34 CFR §668.51 et seq.) requires the University verify an applicant’s household size, number enrolled in college, federal adjusted gross income (AGI), federal income tax paid, and certain untaxed income and benefits from acceptable supporting documentation. If original applications have an error in a nondollar item, such as household size, the student or school must correct the error. According to University personnel, discrepancies in the information were due to human error. Failure to properly verify and submit corrections to student information is noncompliance with Federal regulations and resulted in an inaccurate calculation of a student’s financial aid award amount. (Finding Code No. 11-3) 22 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS Recommendation We recommend the University enhance controls over student aid verification to ensure supporting documentation submitted by students agrees with information on the Institutional Student Information Report to minimize the risk of inaccurate awards of student financial aid. University Response We agree with the auditor’s recommendation. Although all information was checked, the corrected information did not get entered into the ISIR. We will establish procedures to double-check that the corrected information gets entered into the ISIR. 23 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS CURRENT FINDINGS – STATE COMPLIANCE 11-4. Finding (Failure to Provide a Comprehensive Listing of Laws and Regulations) Eastern Illinois University (University) did not have a comprehensive and complete listing of laws and regulations applicable to the University. During testing, we requested the University provide us with a listing of all laws and regulations applicable to the University. The University was unable to provide us with the requested listing; however, we noted the University does maintain a listing of new legislation applicable to the University. Adequate controls over compliance with laws and regulations would require the University to develop a process to identify and monitor all federal, State, and local laws and regulations applicable to the University in order to ensure the University is complying with those laws and regulations. According to University personnel, maintaining a comprehensive list of laws and regulations does not ensure compliance with applicable laws and regulations. Failure to monitor laws and regulations applicable to the University increases the risk the University would not comply with those laws and regulations and could potentially result in the University incurring unexpected costs. (Finding Code No. 11- 4) Recommendation We recommend the University establish procedures to monitor laws and regulations applicable to the University. University Response Management regularly monitors laws and regulations that are applicable to the University. We will create a list of laws and regulations that apply to the University. 24 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 11-5. Finding (Late Deposit of Receipts and Refunds) Eastern Illinois University (University) did not deposit receipts and refunds timely. During our testing of receipts and refunds, we noted 26 of 80 (33%) receipts and refunds, totaling $217,424, were deposited between two to 13 days after the checks were received by University personnel. We noted untimely deposits from several departments across campus, including the business office, Doudna Fine Arts Center, Panther catering, Panther camps, student catering, clinic services, parking facilities, and athletics. The University’s Internal Governing Policy (IGP) #102 requires the intact deposit of all monies collected either no later than the next University business day when total collections exceed $50 or once a week. The University Treasurer must pre-approve any exceptions to this requirement. Further, good business practices would require the University make every reasonable effort to quickly deposit collected receipts into the University’s treasury. According to University personnel, late deposits were due to procedural errors and other responsibilities taking priority at different University departments. Failure to deposit collections on a timely manner reduces the amount of cash available to pay current costs and increases the risk of misappropriation of University funds. (Finding Code Nos. 11-5, 10-5) Recommendation We recommend the University investigate the reasons departments are not complying with IGP #102 and determine appropriate enforcement actions to ensure compliance with the University’s policy. University Response We want deposits to be made in accordance with our policy. We will work with fiscal agents to improve compliance with our policy. 25 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 11-6. Finding (Delinquent Reporting of Bond Activity) Eastern Illinois University (University) did not timely submit transaction reporting for its revenue bond principal and interest payments to the Office of the State Comptroller. During testing, we noted seven of 14 (50%) Notice of Payment of Bond Interest and/or Principal reports (Form C-08) were not timely submitted to Office of the State Comptroller. We noted the following: The University submitted Form C-08 reports for the University’s October 1, 2010 interest payments on Revenue Bond Series 2005, 2008, 2008B and Certificate of Participation 2009A on May 6, 2011. As the University’s “paying agent” trustee submitted the trustee’s monthly statement on November 15, 2010, the report was due to the State Comptroller on November 29, 2010. The University submitted Form C-08 reports for the University’s February 15, 2011 principal and interest payments on May 6, 2011. As the University’s “paying agent” trustee submitted the trustee’s monthly statement on March 15, 2011, the report was due to the State Comptroller on March 29, 2011. The Statewide Accounting Management System (SAMS), Procedure 31.30.20, requires the University prepare and submit a Form C-08 report to the Office of the State Comptroller within 15 days from receipt of the “paying agent” trustee’s monthly statement. According to University personnel, delay in submission of Form C-08 was due to oversight. Failure to submit timely Form C-08 reports to the Office of the State Comptroller inhibits the State Comptroller’s ability to record and monitor State debt transactions. (Finding Code No. 11-6) Recommendation We recommend the University implement controls to ensure the timely filing of bond principal and interest payments with the State Comptroller. Further, the University may contractually require the “paying agent” trustee to electronically file the Form C- 08 reports, as allowed for and recommended by the Statewide Accounting Management System (Procedure 31.30.20). 26 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS University Response We agree with the auditor’s recommendation. The University will establish procedures to assure that the required reports are completed on a timely basis. 27 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 11-7. Finding (Timesheets not Required) Eastern Illinois University (University) has not implemented time reporting requirements for all employees in accordance with the State Officials and Employees Ethics Act (Act). During our examination, we noted the University requires all employees – except faculty members – to report and certify time worked to the nearest quarter hour as required by the Act. Faculty employees are required to certify that they have met their work schedule obligations as set forth in their individual Assignment of Duties form; however, they do not report their time to the nearest quarter hour in accordance with 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 time sheets documenting the time spent each day on official State business to the nearest quarter hour.” The IBHE adopted personnel policies for public universities on February 3, 2004, in accordance with the Act. The University has not incorporated these policies into the University’s policies. According to the University personnel, faculty members work in accordance with their contract. The contract defines faculty responsibilities in terms of credit units; therefore, faculty members report that they worked in accordance with their contract. By not requiring time sheets from all of its employees, the University does not have complete documentation of time spent by faculty members on official State business as contemplated by the Act. (Finding Code Nos. 11-8, 10-3, 09-4, 08-5, 07-4, 06-3, 05-4) Recommendation We recommend the University implement a reporting system to require all employees to submit time sheets in compliance with the Act. University Response We agree with the auditor’s recommendation. The University has implemented a system that allows employees to document time spent on official State business in accordance with the Act. All University employees use this system. However, faculty members, in accordance with their union contract, use the system to document that they have worked in accordance with the contract. We will continue to work with the faculty in an attempt to obtain compliance. 28 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 11-8. Finding (Noncompliance with Ethics Training Requirements) Eastern Illinois University (University) did not have adequate internal controls to ensure new employees timely completed ethics training. During our examination, we noted 16 of 25 (64%) new hires tested completed ethics training from one to 56 days late. The State Officials and Employees Ethics Act (5 ILCS 430/5-10(c)) requires all new employees entering a position requiring annual ethics training complete an initial ethics training course within 30 days after commencing employment. According to University personnel, the delay in the completion of ethics training of some employees was due to oversight. Other employees came in at their busy time and job priorities took precedence resulting in a delay in the completion of ethics training. Failure to provide ethics training within the required timeframe may result in employees being unaware of specific ethical requirements for State employees. (Finding Code Nos. 11-8, 10-4) Recommendation We recommend the University’s Ethics Officer implement controls to monitor new employees to ensure ethics training mandated by State law is completed in a timely manner. University Response We agree with the auditor’s recommendation. The University has established a computer system to track all new employees and remind them of their responsibilities under the State Officials and Employees Ethics Act. The system reminds them of the requirement to take the initial ethics training course within the first 30 days of employment. If the employee has not completed the training as the end of the 30 day period nears, the employee’s supervisor will be notified for follow-up. 29 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS PRIOR FINDING NOT REPEATED A. Finding (Noncompliance with federal reporting requirements) During the prior year engagement, Eastern Illinois University (University) did not timely submit reports such the semi-annual federal financial report, annual progress report, quarterly financial status report, and quarterly reports in accordance with the American Recovery and Reinvestment Act of four federal grants as required by federal granting agencies. (Finding Code No. 10-2) Status: Partially implemented During the current year engagement, our sample testing disclosed the University submitted the required reports timely to the federal awarding agency. However, an instance was noted wherein the University did not submit the annual progress report as required by the federal granting agency but this was not considered to be as significant as in the prior year and thus were reported to the University in the Report of Immaterial Findings. 30 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES 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 Appropriations, Expenditures, Lapsed and Reappropriated Balances Comparative Schedule of Net Appropriations, Expenditures, Lapsed, and Reappropriated Balances Comparative Schedule of Income Fund Revenues and Expenses Schedule of Changes in Capital Assets Auxiliary Enterprises and Activities, Financial Statements by Functional Entity Designated Funds - Auxiliary Activities: Balance Sheet by Entity Current Funds Statement of Changes in Fund Balances by Entity Statement of Changes in Plant Fund Balances by Entity Auxiliary Enterprise Funds - Revenue Bonds: Current Funds, Unrestricted, Balance Sheet by Entity Statement of Current Funds, Unrestricted, Revenues and Expenditures by Entity Statement of Current Funds, Unrestricted, Statement of Changes in Fund Balances by Entity Plant Funds, Balance Sheet by Entity Plant Funds, Statement of Changes in Fund Balances by Entity Auxiliary Enterprise Funds - Other: Balance Sheet by Entity Current Funds Statement of Revenues and Expenditures by Entity Current Funds Statement of Changes in Fund Balances by Entity Plant Funds Statement of Changes in Fund Balances by Entity Analysis of Revenues, Expenses and Changes in Net Assets Analysis of Significant Variations in Account Balances Analysis of Significant Lapse Period Spending Schedule of Accounts Receivable Schedule of Cash and Cash Equivalents and Investments Summary of Indirect Cost Reimbursement: Statement of Sources and Applications Calculation Sheets for Indirect Cost Carry-Forward 31 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES SUMMARY Analysis of Operations University Functions and Planning Program Average Number of Employees Service Efforts and Accomplishments (unaudited) Schedule of Federal Expenditures, Nonfederal Expenses and New Loans Undergraduate Tuition and Fee Waivers (unaudited) Graduate Tuition and Fee Waivers (unaudited) Bookstore and Textbook Rental Information (unaudited) University Guidelines 1982, as amended 1997 Special Data Requirements for Audits of Universities Summary of Eastern Illinois University Foundation Payments to the University Summary of Eastern Illinois University Alumni Association, Inc. Payments to the University Description of Accounting Entities, Sources of Revenue and Purpose of Each Entity Calculation Sheets for Current Excess Funds Schedule of Accrued Liability for Employee Compensated Absences (unaudited) 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 auditors’ 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. 32 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2011 CFDA Federal Project or FY11 Number Pass-Through Number Expenditures Federal Grantor/Pass Through Grantor/Program/Grant Title MAJOR PROGRAM - STUDENT FINANCIAL AID CLUSTER U.S. DEPARTMENT OF EDUCATION Federal Perkins Loans - Federal Capital Contributions 84.038 $ 6,683,939 Federal Direct Student Loans 84.268 P268K110106 64,901,860 Federal Work-Study Program FY10 84.033 P033A091143 (5,231) FY11 84.033 P033A101143 400,310 395,079 Federal Pell Grant Program FY10 84.063 P063P090106 133,274 FY11 84.063 P063P100106 15,258,610 15,391,884 Federal Supplemental Educational Opportunity Grants FY10 84.007 P007A091143 (17,116) FY11 84.007 P007A101143 277,308 260,192 Teacher Education Assistance For College And Higher Education Grants FY10 84.379 P379T100106 (5,000) FY11 84.379 P379T110106 386,874 381,874 Academic Competitiveness Grants FY10 84.375 P375A090106 650 FY11 84.375 P376S090106 185,619 186,269 National Science and Mathematics Access to Retain Talent Grants FY10 84.376 P376S090106 3,500 FY11 84.376 P376S100106 289,070 292,570 Total Financial Aid Cluster 88,493,667 MAJOR PROGRAM - RESEARCH AND DEVELOPMENT CLUSTER NATIONAL SCIENCE FOUNDATION Biological Sciences LTREB: Controls and Consequences of Exotic Plant Invasions in Abandoned Agricultural Land 47.074 DEB-0424605 10,158 RUI: Whole Genome Analysis of Hepatic Gene Silencing 47.074 MCB-0841653 32,546 42,704 Geosciences Collaborative Research: Enhancement of Wind Erosion by Fire-Induced Water Repellency 47.050 EAR-0746231 11,017 The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule. 33 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2011 CFDA Federal Project or FY11 Number Pass-Through Number Expenditures Federal Grantor/Pass Through Grantor/Program/Grant Title Mathematical and Physical Sciences RUI: Structural Characterization of Ionic and Radical Complexes by High Resolution Spectroscopy 47.049 CHE-0809387 37,613 RUI: Photoreactive Crystalline Raceamic and Quasiracemic Materials 47.049 CHE-0957391 70,012 MRI: Acquisition of a Single-Crystal X-Ray Diffractometer 47.049 CHE-0722547 11,220 118,845 Polar Programs The Social Dynamics of Early Beothuk-European Relations in Trinity Bay, Newfoundland 47.078 ARC-1011781 14,070 TOTAL NATIONAL SCIENCE FOUNDATION 186,636 U.S. DEPARTMENT OF AGRICULTURE Grants for Agricultural Research Competitive Research Grants Behavioral Mechanisms Underlying Individual and Population Patterns in Japenese Beetle 10.206 2005-35302-16364 894 A Population Genetics Analysis of Mating/Dispersal Flights of the Red Imported Fire Ant 10.206 2009-35302-05069 30,257 TOTAL U.S. DEPARTMENT OF AGRICULTURE 31,151 U.S. DEPARTMENT OF THE INTERIOR Passed-Through the Illinois Department of Natural Resources State Wildlife Grants Effects of Habitat Fragmentation on Sensitive Aquatic Species 15.634 T-50-D-1 15,363 TOTAL U.S. DEPARTMENT OF THE INTERIOR 15,363 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Research Related to Deafness and Communication Disorders Interaction of ApoE with Estrogen in the Olfactory System 93.173 2R15DC03889-02A1 37,752 TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 37,752 U.S. DEPARTMENT OF ENERGY Passed-through the University of Georgia Granting of Patent Licenses Risk Model for Tims Branch/Steed Pond 81.003 RR267-503/4693198 19,649 Passed-Through Savannah River Nuclear Solutions LLC Deer Data Evaluation None AC71683O 15,900 TOTAL U.S. DEPARTMENT OF ENERGY 35,549 Total Research and Development Cluster 306,451 TRIO CLUSTER U.S. DEPARTMENT OF EDUCATION Trio - Student Support Services 84.042A P042A051072-09 30,560 Trio - Student Support Services 84.042A P042A100932 221,717 Total Trio Cluster 252,277 The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule. 34 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2011 CFDA Federal Project or FY11 Number Pass-Through Number Expenditures Federal Grantor/Pass Through Grantor/Program/Grant Title MAJOR PROGRAM - CHILD CARE AND DEVELOPMENT FUND (CCDF) CLUSTER U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed-Through the Illinois Department of Human Services Child Care Mandatory and Matching Funds of the Child Care and Development Fund 93.596 10C6002526 428,928 Child Care and Development Block Grant 93.575 10C6002526 528,740 ARRA - Child Care and Development Block Grant 93.713 10C6002526 69,404 Total CCDF Cluster 1,027,072 MAJOR PROGRAM - AGING CLUSTER U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed-Through the East Central Illinois Area Agency on Aging ARRA - Aging Congregate Nutrition Services for States 93.707 38,450 Special Programs for the Aging, Title III, Part C, Nutrition Services Peace Meal Senior Nutrition Program FY10 93.045 146,517 Peace Meal Senior Nutrition Program FY11 93.045 624,660 771,177 Nutrition Services Incentive Program Peace Meal Senior Nutrition Program FY10 93.053 43,260 Peace Meal Senior Nutrition Program FY11 93.053 89,311 132,571 Total Aging Cluster 942,198 COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG) - ENTITLEMENT GRANTS CLUSTER U.S. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT 14.218 25,000 Total Community Development Block Grants Cluster 25,000 COMMUNITY SERVICE BLOCK GRANTS (CSBG) CLUSTER U.S. DEPARTMENT OF HEALTH & HUMAN SERVICES 93.569 5,000 Total Community Service Block Grants Cluster 5,000 EMERGENCY FOOD AND SHELTER PROGRAM CLUSTER U.S. DEPARTMENT OF HOMELAND SECURITY 97.024 1,116 Total Emergency Food and Shelter Program Cluster 1,116 Passed-through from the City of Bloomington, Illinois Passed-through from the East Central Illinois Community Action Agency Community Services Block Grants Emergency Food and Shelter National Board Program Passed-through from the United Way of McLean County, Illinois Community Development Block Grants/ Entitlement Grants The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule. 35 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2011 CFDA Federal Project or FY11 Number Pass-Through Number Expenditures Federal Grantor/Pass Through Grantor/Program/Grant Title FISH AND WILDLIFE CLUSTER U.S. DEPARTMENT OF INTERIOR Assessment of Larval Asian Carp in the Illinois River 15.605 P0405774 23,424 Assessment of Larval Asian Carp in the Illinois River 15.605 P0484000 2,781 Investigate the Impact of Commercial and Sport Harvest on the Demographics of Flathead Catfish in the Wabash River 15.605 P0393740 13,437 Total Fish and Wildlife Cluster 39,642 MAJOR PROGRAM - TEMPORARY ASSISTANCE FOR NEEDY FAMILIES CLUSTER U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed-Through the Illinois Department of Human Services Temporary Assistance for Needy Families 93.558 10C6002526 607,458 Total Temporary Assistance for Needy Families Cluster 607,458 OTHER PROGRAMS U.S. DEPARTMENT OF EDUCATION Higher Education - Institutional Aid Strengthening Institutions Program - Student Success Center 84.031A P031A060147 146,455 Fund for the Improvement of Postsecondary Education Emergency Notification System 84.116 P116Z090074 45,124 Passed-Through the Illinois Board of Higher Education Improving Teacher Quality State Grants Leadership for the Improvement of Teaching Performance 84.367 09NCLB3 95,080 Passed-Through the Corporation for Public Broadcasting Ready to Teach PBS Teacherline in Central Illinois 84.286A U286A050005 40 Passed-Through the University of California National Writing Project Eastern Illinois Writing Project 84.928A 08-IL05 10,319 Eastern Illinois Writing Project 84.928A 08-IL05 41,382 51,701 TOTAL U.S. DEPARTMENT OF EDUCATION 338,400 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Nurse Education, Practice and Retention Grants Nurse Education, Practice and Retention 93.359 1 D11HP09760-01-00 174,943 Passed-Through the University of Illinois at Chicago Medical Library Assistance 93.879 TECH534 4,900 Passed-Through the Illinois Department of Human Services Social Services Block Grant 93.667 10C6002526 5,383 Block Grants for Preventions and Treatment of Substance Abuse Illinois Higher Education Prevention 93.959 10C6002526 220,245 TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 405,471 Passed-through from the Illinois Department of Natural Resources/Univ. of Illinois Sport Fish Restoration Program The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule. 36 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2011 CFDA Federal Project or FY11 Number Pass-Through Number Expenditures Federal Grantor/Pass Through Grantor/Program/Grant Title U.S. DEPARTMENT OF JUSTICE Passed-Through the Illinois Department of Human Services Enforcing Underage Drinking Laws Program Illinois Higher Education Prevention 16.727 10C6002526 (958) Illinois Higher Education Prevention 16.727 10C6002526 132,000 Enforcing Underage Drinking Laws University Initiative 16.727 10C6002526 104,989 236,031 Edward Byrne Memorial State and Local Law Enforcement Assistance Discretionary Grants Program Prescription Information Library Project 16.580 49X1014M40 128,709 TOTAL U.S. DEPARTMENT OF JUSTICE 364,740 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION The International Conference on Applied Modeling and Information Security Systems None NNX08AQ23G 524 TOTAL NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 524 U.S. DEPARTMENT OF ENERGY Major Program - Conservation Research and Development Installation of Electrical Equipment at Eastern Illinois University 81.086 DE-EE0004230 1,000,000 TOTAL U.S. DEPARTMENT OF ENERGY 1,000,000 U.S. DEPARTMENT OF COMMERCE Public Telecommunications Facilities Planning and Construction PTFP - Eastern Illinois University 11.550 17-02-N09179 19,868 TOTAL U.S. DEPARTMENT OF COMMERCE 19,868 NATIONAL ENDOWMENT FOR THE HUMANITIES Promotion of the Humanities - Public Programs Farm Life: A Century of Change for Farm Families and Their Neighbors 45.164 179 Benjamin Franklin: In Search of a Better World - A Traveling Exhibit for Libraries 45.164 LS-50021-07 1,000 Promotion of the Humanities - Professional Development Chaucer's Canterbury Tales 45.163 FV-50203-09 61,805 TOTAL NATIONAL ENDOWMENT FOR THE HUMANITIES 62,984 NATIONAL ENDOWMENT FOR THE ARTS Passed-Through Arts Midwest Promotion of the Arts - Partnership Agreement Hot Club of San Francisco 45.025 FY11-102625 1,500 TOTAL NATIONAL ENDOWMENT FOR THE ARTS 1,500 INSTITUTE OF MUSEUM AND LIBRARY SERVICES Passed-Through the State of Illinois Secretary of State Grants to States Art and Architecture in Illinois Libraries 45.310 LSTA 06-5069 6 TOTAL INSTITUTE OF MUSEUM AND LIBRARY SERVICES 6 The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule. 37 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Year Ended June 30, 2011 CFDA Federal Project or FY11 Number Pass-Through Number Expenditures Federal Grantor/Pass Through Grantor/Program/Grant Title LIBRARY OF CONGRESS EIU Teaching with Primary Sources None GA070019 167,967 TOTAL LIBRARY OF CONGRESS 167,967 Total Other Programs 2,361,460 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 94,061,341 The accompanying notes to the Schedule of Expenditures of Federal Awards are an integral part of this schedule. 38 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 1. GENERAL The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Eastern Illinois University for the year ended June 30, 2011. All federal awards received directly from federal agencies as well as federal awards passed through other government and nonprofit agencies are included on the schedule. Following is a legend of acronyms used in the Schedule of Expenditures of Federal Awards: LTREB Long-term Research in Environmental Biology RUI Research in Undergraduate Institutions MRI Major Research Instrumentation ARRA American Recovery and Reinvestment Act PBS Public Broadcasting Service PTFP Public Telecommunications Facilities Planning and Construction 2. BASIS OF ACCOUNTING With the exception of Peace Meal grants presented on page 35, the accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. The Peace Meal grants are presented using the cash basis of accounting since this method is allowed under the grant agreement. 3. STUDENT LOAN PROGRAMS ADMINISTERED BY THE UNIVERSITY The University administered the following federal loan program during the year ended June 30, 2011: Perkins Loan Program CFDA #84.038 Outstanding balance, July 1, 2010 $ 6,695,615 Additions: Interest income 99,064 Other income 20,996 Total 120,060 Deductions: Loans canceled or written-off 91,941 Administrative expenses 39,795 Total 131,736 Outstanding balance, June 30, 2011 $6,683,939 39 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The above deductions include disbursements and expenditures such as bad debts and administrative expenditures. 4. MAJOR PROGRAMS The following federal program expenditures comprise major program expenditures under OMB Circular A-133 for the year ended June 30, 2011: Student Financial Aid Cluster $88,493,667 Child Care and Development Fund Cluster 1,027,072 Conservation Research and Development 1,000,000 Aging Cluster 942,198 Temporary Assistance for Needy Families 607,458 Research and Development Cluster 306,451 Total major program expenditures 92,376,846 Non-major program expenditures 1,684,495 Total federal expenditures $94,061,341 As part of the Student Financial Aid Program, Eastern Illinois University administers loan proceeds under the Perkins Loan Program (as described in Note 3) and the William D. Ford Federal Direct Loan Program. 5. NONCASH TRANSACTION INFORMATION Certain noncash expenditures are included in the total expenditures on the Schedule of Expenditures of Federal Awards. The childcare program of the University is a processor of childcare claims for the Illinois Department of Human Services (DHS). The University determines eligibility and reimbursable hours for the participants. This information is sent to DHS who then pays the claims. The noncash amounts are recorded in the following programs: Child Care Mandatory and Matching Funds of the Child Care and Development Fund - $232,772 (Federal CFDA #93.596), Child Care Development Block Grant - $117,624 (Federal CFDA #93.575), Temporary Assistance For Needy Families - $607,458 (Federal CFDA #93.558) and Social Services Block Grant - $5,383 (Federal CFDA #93.667). These noncash transactions have not been recorded on the University's financial statements. 40 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 6. SUBRECIPIENTS The University provided sub-awards of $123,431 through the Enforcing Underage Drinking Laws (CFDA #16.727) to the following subrecipients: Northern Illinois University, $14,400; Illinois State University, $17,000; Western Illinois University; $16,910; Southern Illinois University at Carbondale, $14,332; Bradley University, $17,000; Benedictine University, $3,991; and the Charleston Police Department, $39,798. 7. RECONCILIATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS The following is a reconciliation of total expenditures as reported on the accompanying Schedule of Expenditures of Federal Awards to the revenue items reported as federal and state grants and contracts on the Statement of Revenues, Expenses and Changes in Net Assets included in the University's financial statements. Funds, derived from federal aid, gifts or grants, may be used only to meet expenditures for the purposes specifically identified by sponsoring agencies. The federal aid, gifts or grants are recognized as revenue in the University's financial statements as expended. Therefore, expenditures on the Schedule of Expenditures of Federal Awards agree with revenues on the Statement of Revenues, Expenses and Changes in Net Assets, except as noted below: Total expenditures as shown on the Schedule of Expenditures of Federal Awards $94,061,341 Add: Direct state grants/contracts 1,239,486 Subtract: Federal Perkins loan program – federal capital contributions included on the Schedule of Expenditures of Federal Awards not included in the financial statements (less administrative costs) (6,683,939) Direct loans included in the Schedule of Expenditures of Federal Awards not included in the financial statements (64,901,860) Noncash expenditures included in the Schedule of Expenditures of Federal Awards not included in the financial statements (963,237) Total federal and state grants and contracts revenues shown on the Statement of Revenues, Expenses and Changes in Net Assets $22,751,791 41 EASTERN ILLINOIS UNIVERSITY SCHEDULE OF APPROPRIATIONS, EXPENDITURES, LAPSED AND REAPPROPRIATED BALANCES APPROPRIATIONS FOR FISCAL YEAR 2011 Fourteen Months Ended August 31, 2011 Approximate Expenditures Lapse Period Approximate Approximate Balances Appropriations Through Expenditures Total Balances Reappropriated (Net after Transfers) June 30, 2011 7/1 - 8/31/11 Expenditures Lapsed July 1, 2011 Public Acts 96-0956 GENERAL REVENUE FUND - 001 Ordinary and contingent expenses $ 4 7,413,000 $ 47,413,000 $ - $ 47,413,000 $ - $ - Total General Revenue Fund - 001 47,413,000 47,413,000 - 47,413,000 - - CAPITAL DEVELOPMENT FUND - 141 Purchase equipment and complete renovation of Doudna Fine Arts Center * 1,929,317 972,086 - 972,086 - 957,231 Total Capital Development Fund - 141 1,929,317 972,086 - 972,086 - 957,231 STATE OF ILLINOIS STATE COLLEGE & UNIVERSITY TRUST FUND - 417 Scholarship Grant Awards 4 ,250 4,250 - 4,250 - - Total State College & University Trust Fund - 417 4,250 4,250 - 4,250 - - Totals - All appropriated funds $ 49,346,567 $ 48,389,336 $ - $ 48,389,336 $ - $ 957,231 Notes: * An expenditure adjustment of $594,682 was processed as a "due to primary government" at June 30, 2011. Expenditure amounts are vouchers approved and paid by the University and submitted to the Office of the State Comptroller for reimbursement of payments made to vendors. The data for this report were taken from the University's records and reconciled to the data of the Office of the State Comptroller. 42 EASTERN ILLINOIS UNIVERSITY COMPARATIVE SCHEDULE OF NET APPROPRIATIONS, EXPENDITURES, 2011 2010 PA 96-0956 PA 96-0114, 96-0035, 96-0046 GENERAL REVENUE FUND - 001 Appropriations (net of transfers) $ 47,413,000 $ 50,566,500 General Revenue Fund expenditures Ordinary and contingent expenses 47,413,000 47,609,500 Personal services - ARRA - 1,273,663 Personal services - ARRA - 1,683,300 47,413,000 50,566,463 Lapsed balances $ - $ 37 CAPITAL DEVELOPMENT FUND - 141 Appropriations (net of transfers) $ 1,929,317 $ 1,650,000 Capital Development Fund expenditures Fine Arts renovation * 972,086 - Balances reappropriated $ 957,231 $ 1,650,000 STATE OF ILLINOIS LAPSED AND REAPPROPRIATED BALANCES Fiscal Year STATE COLLEGE & UNIVERSITY TRUST - 417 Appropriations (net of transfers) $ 4,250 $ 4,250 State College & University Trust expenditures Scholarships 4,250 4,250 Lapsed balances $ - $ - Grand total, all funds Appropriations (net of transfers) $ 49,346,567 $ 52,220,750 Expenditures 48,389,336 50,570,713 Lapsed balances $ - $ 37 Balances reappropriated $ 957,231 $ 1,650,000 Notes: * An expenditure adjustment of $594,682 was processed as a "due to primary government" at June 30, 2011. The data for this report were taken from the University's records and reconciled to the data of the Office of the State Comptroller. Expenditure amounts are vouchers approved and paid by the University and submitted to the Office of the State Comptroller for reimbursement of payments made to vendors. 43 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY COMPARATIVE SCHEDULE OF INCOME FUND REVENUES AND EXPENSES For the Years Ended June 30, 2011 and 2010 2011 2010 INCOME FUND Revenues Tuition $ 73,049,045 $ 70,413,001 Services fees 337,080 307,475 Fines and penalties 72,757 74,663 Interest income 7,227 - Other 206,601 123,929 73,672,710 70,919,068 Expenses Personal services 36,534,202 34,165,779 FICA - Medicare 2,584,928 1,075,684 Group insurance 1,249,151 1,250,121 Compensated absences 305,959 231,444 Contractual services 8,231,137 8,553,988 Travel 779,253 916,441 Commodities 1,538,519 1,723,899 Awards, grants, and matching funds 1,546,599 1,440,027 Permanent improvements 633,131 1,086,098 Equipment and library books 2,072,856 1,518,125 Telecommunications 333,532 337,658 Operation of automotive equipment 201,663 183,243 Student awards/tuition waived 9,123,115 8,290,986 65,134,045 60,773,493 Excess of revenues over expenses $ 8,538,665 $ 10,145,575 44 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF CHANGES IN CAPITAL ASSETS For the Year Ended June 30, 2011 6/30/2010 Additions Deletions Transfers 6/30/2011 Capital assets not being depreciated Land and land improvements $ 2,968,015 $ - $ - $ - $ 2,968,015 Capitalized collections 198,646 - - - 198,646 Construction in progress 69,201,059 32,634,254 30,631 (20,036,506) 81,768,176 Total capital assets not being depreciated 72,367,720 32,634,254 30,631 (20,036,506) 84,934,837 Capital assets being depreciated Site improvements 17,226,197 - - 217,376 17,443,573 Building and building improvements 290,790,242 6,140 - 19,819,130 310,615,512 Equipment 67,083,172 5,255,838 5,931,709 - 66,407,301 Capital leases - equipment 50,585 - - - 50,585 Total capital assets being depreciated 375,150,196 5,261,978 5,931,709 20,036,506 394,516,971 Less accumulated depreciation Site improvements 11,046,394 810,577 - - 11,856,971 Buildings and building improvements 111,540,700 8,301,608 - 77 119,842,385 Equipment 55,386,707 5,430,341 5,876,409 (77) 54,940,562 Capital leases - equipment 22,883 7,226 - - 30,109 Total accumulated depreciation 177,996,684 14,549,752 5,876,409 - 186,670,027 Total capital assets, being depreciated, net 197,153,512 (9,287,774) 55,300 20,036,506 207,846,944 Intangible assets being amortized Software 380,146 - - - 380,146 Less accumulated amortization 298,686 54,307 - - 352,993 Total intangible assets, being amortized, net 81,460 (54,307) - - 27,153 Capital assets, net $ 269,602,692 $ 23,292,173 $ 85,931 $ - $ 292,808,934 The total property and equipment has been reconciled to the property reports submitted to the Office of the State Comptroller. 45 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY DESIGNATED FUNDS - AUXILIARY ACTIVITIES BALANCE SHEET BY ENTITY June 30, 2011 Unique Continuing Student/ Charges Public Education Student Fee Material Service Staff Educational Credit Service Indirect Contract Programs Fees Departments Programs Services Courses Activities Costs Credit Total ASSETS CURRENT FUNDS Cash and temporary investments $ 5,473,501 $ 30,085 $ 4,175,092 $ 50,215 $ 143,012 $ (269,548) $ 506,164 $ 213,919 $ 603,609 $ 10,926,049 Accrued interest receivable - - 991 - - - - - - 991 Accounts receivable (net of allowance) 803,799 26,159 12,042 52,690 48,104 343,994 99,208 - 303,586 1,689,582 Inventories 24,117 - 634,328 1,451 - - - - - 659,896 Prepaid expense and other assets 27,129 - 1,463 - - - - - 450 29,042 Total current funds 6,328,546 56,244 4,823,916 104,356 191,116 74,446 605,372 213,919 907,645 13,305,560 PLANT FUNDS Temporary cash investments 2,930,950 - 7,658,292 86,040 49,580 - 65 - 46,601 10,771,528 Accounts receivable 367,556 - - - - - - - - 367,556 Bond discount 108,219 - - - - - - - 108,219 Buildings and improvements 18,553,035 - 12,154,864 100,668 - - 42,344 - 30,850,911 Equipment 1,722,901 46,564 1,647,445 15,361 106,159 - 9 ,428 20,686 8,323 3,576,867 Construction in progress 288,040 - 69,208,682 - 2,000 - 50,000 35,000 - 69,583,722 Accumulated depreciation (3,990,831) (40,785) (2,068,131) (31,643) (53,956) - (8,459) (39,034) (8,323) (6,241,162) Other assets 62,887 - 1,761,564 - - - - - - 1,824,451 Total plant funds 20,042,757 5,779 90,362,716 170,426 103,783 - 51,034 58,996 46,601 110,842,092 Total assets $ 26,371,303 $ 62,023 $ 95,186,632 $ 274,782 $ 294,899 $ 74,446 $ 656,406 $ 272,915 $ 954,246 $ 124,147,652 LIABILITIES AND FUND BALANCES CURRENT FUNDS Accounts payable and accrued expenses $ 682,437 $ - $ 921,736 $ 16,967 $ 706 2,836 $ 4 ,645 $ - $ 5,717 $ 1,635,044 Accrued payroll 56,106 - 427,530 5,063 4,955 - 25,943 3 ,023 7,803 530,423 Accrued compensated absences - - 167,812 - - - - - - 167,812 Deferred income 202,022 3,339 - - 7,262 47,741 349,418 - 141,962 751,744 Total liabilities - current funds 940,565 3,339 1,517,078 22,030 12,923 50,577 380,006 3 ,023 155,482 3,085,023 Fund balances Current unrestricted 5,387,981 52,905 3,306,838 82,326 178,193 23,869 225,366 210,896 752,163 10,220,537 Total current funds 6,328,546 56,244 4,823,916 104,356 191,116 74,446 605,372 213,919 907,645 13,305,560 PLANT FUNDS Accounts payable - - 4,699,006 - - - - - - 4,699,006 Notes leases payable 955,000 - - - - - - - - 955,000 Certificates of participation payable 9,784,400 - 84,930,000 - - - - - - 94,714,400 Bond premium 6,976 - - - - - - - - 6,976 Total liabilities - plant funds 10,746,376 - 89,629,006 - - - - - - 100,375,382 Fund balances Non-indentured reserve 265,596 - 651,417 86,040 49,580 - 65 - 46,601 1,099,299 Net investment in plant 6,302,545 5,779 (3,987,140) 84,386 54,203 - 50,969 58,996 - 2,569,738 Bond issuance costs 62,886 - 2,345,487 - - - - - - 2,408,373 Construction reserve 558,550 - 1,723,946 - - - - - - 2,282,496 Other reserves 2,106,804 - - - - - - - - 2,106,804 Total fund balances 9,296,381 5,779 733,710 170,426 103,783 - 51,034 58,996 46,601 10,466,710 Total plant funds 20,042,757 5,779 90,362,716 170,426 103,783 - 51,034 58,996 46,601 110,842,092 Total liabilities and fund balances $ 26,371,303 $ 62,023 $ 95,186,632 $ 274,782 $ 294,899 $ 74,446 $ 656,406 $ 272,915 $ 954,246 $ 124,147,652 46 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY DESIGNATED FUNDS - AUXILIARY ACTIVITIES CURRENT FUNDS STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY For the Year Ended June 30, 2011 Unique Continuing Student/ Charges Public Education Student Fee Material Service Staff Educational Credit Service Indirect Contract Programs Fees Departments Programs Services Courses Activities Costs Credit Total REVENUES Tuition and fees $ 1 4,283,778 $ 307,362 $ - $ 161,903 $ - $ - $ - $ - $ 1 ,272,031 $ 1 6,025,074 Federal grants and contracts - - - - - - - 181,582 - 1 81,582 State grants and contracts - - - - - - - 123,986 - 1 23,986 Private gifts, grants, and contracts 6 6,961 - - 212,267 - - 463 13,393 - 2 93,084 Investment income - - - - - - - - - - Educational activities 1 ,721,742 756 - 427,634 636,868 - 1,365,945 - - 4 ,152,945 Other additions 1 ,361,526 3,437 - 33,900 169,894 648,634 (5,190) - 7 ,470 2 ,219,671 Total revenues and other additions 1 7,434,007 311,555 - 835,704 806,762 648,634 1,361,218 318,961 1 ,279,501 2 2,996,342 EXPENDITURES Educational and general Instruction - 294,588 - 200,528 25,344 632,871 (3) - 9 93,477 2 ,146,805 Research - - - - - - - - - - Public service - - - 264,568 554,348 - 1,425,368 - - 2 ,244,284 Academic support - 11,536 - 321,197 6,046 - 10,711 129,320 - 4 78,810 Student services 1 2,031,012 - - 65,930 - - - 1,335 - 1 2,098,277 Institutional support - - ( 1,609,886) 28,523 - - - 167,972 - (1,413,391) Operation and maintenance of plant 1 7,059 - - - 35,342 - - 35,054 - 8 7,455 Scholarships and fellowships 1 ,679,361 - - - - - - - - 1 ,679,361 Total educational and general expenditures 1 3,727,432 306,124 ( 1,609,886) 880,746 621,080 632,871 1,436,076 333,681 9 93,477 1 7,321,601 TRANSFERS AND OTHER ADDITIONS (DEDUCTIONS) Mandatory transfers Principal (940,188) - - - (11,349) - - - - (951,537) Interest (438,888) - ( 965,400) - (1,551) - - - - (1,405,839) Student aid matching grants - - - - - - - - - - Total mandatory transfers (1,379,076) - ( 965,400) - (12,900) - - - - (2,357,376) Non-mandatory transfers Renewal and replacement (200,000) - ( 351,642) - (15,000) - - - (13,639) (580,281) Construction - - - - - - - - - - Reserve (582,896) - - - - - - - - (582,896) Excess local funds - - - (40,182) - ( 20) - - - (40,202) Transfers, other - - - (2,509) (10,000) - - - - (12,509) Total non-mandatory transfers (782,896) - ( 351,642) (42,691) (25,000) ( 20) - - (13,639) (1,215,888) NET INCREASE (DECREASE) FOR THE YEAR 1 ,544,603 5,431 292,844 (87,733) 147,782 15,743 (74,858) (14,720) 2 72,385 2 ,101,477 FUND BALANCES AT JULY 1, 2010 3 ,843,378 47,474 3,013,994 170,059 30,411 8,126 300,224 225,616 4 79,778 8 ,119,060 FUND BALANCES AT JUNE 30, 2011 $ 5 ,387,981 $ 52,905 $ 3,306,838 $ 82,326 $ 178,193 $ 23,869 $ 225,366 $ 210,896 $ 7 52,163 $ 1 0,220,537 47 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY DESIGNATED FUNDS - AUXILIARY ACTIVITIES STATEMENT OF CHANGES IN PLANT FUND BALANCES BY ENTITY For the Year Ended June 30, 2011 Unique Continuing Student/ Charges Public Education Student Fee Material Service Staff Educational Credit Service Indirect Contract Programs Fees Departments Programs Services Courses Activities Costs Credit Total NON-INDENTURED RESERVES Fund balances at July 1, 2010 $ 84,397 $ - $ 321,975 $ 86,040 $ 34,772 $ - $ 720 $ - $ 34,302 $ 562,206 Reserve additions Current funds 200,000 - 351,642 - 15,000 - - - 13,639 580,281 Other current funds - - - - - - - - - - Total Additions 200,000 - 351,642 - 15,000 - - - 13,639 580,281 Reserve deductions Non-capitalized equipment purchases 18,801 - - - 192 - - - 1,340 20,333 Transfer to Plant Fund - - 22,200 - - - - - - 22,200 Transfer to Other Plant fund - - - - - - 655 - - 655 Total Deductions 18,801 - 22,200 - 192 - 655 - 1,340 43,188 Fund balances at June 30, 2011 $ 265,596 $ - $ 651,417 $ 86,040 $ 49,580 $ - $ 65 $ - $ 46,601 $ 1,099,299 NET INVESTMENT IN PLANT Fund balances at July 1, 2010 $ 6,173,104 $ 7,466 $ (29,497,183) $ 88,356 $ 66,574 $ - $ 51,173 $ 62,339 $ 1,094 $ (23,047,077) Plant additions Current funds 1,054,007 - 2,536,782 - 475 - - - - 3,591,264 Other Current Funds 88,067 - 108,410 - - - - - - 196,477 Non-indentured reserves - - 22,200 - - - - - - 22,200 Construction reserve 1,762 - 23,496,531 - - - - - - 23,498,293 Gifts/Grants - - - - - - - - - - Disposed Property (18,082) - 2,500 - - - - - - (15,582) Omitted equipment - - - - - - - - - - Amortization of bond premium - - - - - - - - - - Total additions 1,125,754 - 26,166,423 - 475 - - - - 27,292,652 Plant deductions Depreciation 786,010 1,687 656,380 3,970 12,846 - 204 3,343 1,094 1,465,534 Omitted Equipment 202,996 - - - - - - - - 202,996 Bond premium/discount 7,307 - - - - - - - - 7,307 Bonds Issued - - - - - - - - - - Total deductions 996,313 1,687 656,380 3,970 12,846 - 204 3,343 1,094 1,675,837 Fund balances (Deficit) at June 30, 2011 $ 6,302,545 $ 5,779 $ (3,987,140) $ 84,386 $ 54,203 $ - $ 50,969 $ 58,996 $ - $ 2,569,738 48 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY DESIGNATED FUNDS - AUXILIARY ACTIVITIES STATEMENT OF CHANGES IN PLANT FUND BALANCES BY ENTITY For the Year Ended June 30, 2011 Unique Continuing Student/ Charges Public Education Student Fee Material Service Staff Educational Credit Service Indirect Contract Programs Fees Departments Programs Services Courses Activities Costs Credit Total BOND ISSUANCE COSTS Fund balance at July 1, 2010 $ 73,924 $ - $ 3,980,450 $ - $ - $ - $ - $ - $ - $ 4,054,374 Additions Bonds Proceeds - - - - - - - - - - Investment income - - 2,390 - - - - - - 2,390 Change in fair value of investment - - - - - - - - - - Build America bond subsidy - - 1,761,392 - - - - - - 1,761,392 Other current funds - - - - - - - - - - Total additions - - 1,763,782 - - - - - - 1,763,782 Deductions Amortization of closing costs 11,038 - 148,978 - - - - - - 160,016 Interest expense - - 3,249,767 - - - - - - 3,249,767 Transfer to construction funds - - - - - - - - - - Total deductions 11,038 - 3,398,745 - - - - - - 3,409,783 Fund balance at June 30, 2011 $ 62,886 $ - $ 2,345,487 $ - $ - $ - $ - $ - $ - $ 2,408,373 CONSTRUCTION RESERVE Fund balance at July 1, 2010 $ 560,312 $ - $ 26,979,080 $ - $ - $ - $ - $ - $ - $ 27,539,392 Additions Gifts - - - - - - - - - - Investment income - - 22,258 - - - - - - 22,258 Change in fair value of investments - - - - - - - - - - Bond Proceeds - - - - - - - - - - Total additions - - 22,258 - - - - - - 22,258 Deductions Transfer to net investment in plant fund 1,762 - 23,496,531 - - - - - - 23,498,293 Non-capitalized construction expenses - - 1,780,861 - - - - - - 1,780,861 Total deductions 1,762 - 25,277,392 - - - - - - 25,279,154 Fund balance at June 30, 2011 $ 558,550 $ - $ 1,723,946 $ - $ - $ - $ - $ - $ - $ 2,282,496 49 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY DESIGNATED FUNDS - AUXILIARY ACTIVITIES STATEMENT OF CHANGES IN PLANT FUND BALANCES BY ENTITY For the Year Ended June 30, 2011 Unique Continuing Student/ Charges Public Education Student Fee Material Service Staff Educational Credit Service Indirect Contract Programs Fees Departments Programs Services Courses Activities Costs Credit Total OTHER RESERVES Fund balance at July 1, 2010 $ 1,523,908 $ - $ - $ - $ - $ - $ - $ - $ - $ 1,523,908 Reserve Additions Current Funds 582,896 - - - - - - - - 582,896 Change in fair value of investments - - - - - - - - - - Total additions 582,896 - - - - - - - - 582,896 Reserve Deductions Transfer to Current funds - - - - - - - - - - Total deductions - - - - - - - - - - Fund balance at June 30, 2011 $ 2,106,804 $ - $ - $ - $ - $ - $ - $ - $ - $ 2,106,804 50 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS CURRENT FUNDS, UNRESTRICTED BALANCE SHEET BY ENTITY June 30, 2011 Student Student Textbook Living Facilities Rental Total Cash and cash equivalents $ 3,328,221 $ 275,014 $ 7 52,501 $ 4,355,736 Investments 33,243 4,101 - 37,344 Accounts receivable 3,433,171 184,459 5 69,248 4,186,878 Inventories 164,385 1,233,347 - 1,397,732 Prepaid expenses 24,774 3,355 - 28,129 Other noncurrent assets 290,019 82,134 - 372,153 Total assets $ 7,273,813 $ 1 ,782,410 $ 1 ,321,749 $ 1 0,377,972 Accounts payable $ 1,959,429 $ 2,158,482 $ 7 7,944 $ 4,195,855 Accrued payroll 578,596 106,255 1 5,521 700,372 Security deposits 732,992 - - 732,992 Accrued compensated absences 1,048,085 222,472 3 0,665 1,301,222 Deferred income, room and board 92,688 - - 92,688 Deferred income, other 54,453 107,611 7 2,577 234,641 Total liabilities 4,466,243 2,594,820 1 96,707 7,257,770 Fund balances 2,807,570 (812,410) 1 ,125,042 3,120,202 Total liabilities and fund balances $ 7,273,813 $ 1 ,782,410 $ 1 ,321,749 $ 1 0,377,972 ASSETS LIABILITIES AND FUND BALANCES 51 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS STATEMENT OF CURRENT FUNDS, UNRESTRICTED REVENUES AND EXPENDITURES BY ENTITY For the Year Ended June 30, 2011 Student Student Textbook Living Facilities Rental Total Revenues Room and board $ 32,868,819 $ - $ - $ 32,868,819 Duplicating 1,604 335,760 - 337,364 Bowling and recreation - 64,795 - 64,795 Merchandise sales 94,081 2,111,181 398,794 2,604,056 Other 242,688 141,916 167,419 552,023 Student fees 658,959 2,706,639 - 3,365,598 Operating fee - 2,162,254 3,067,519 5,229,773 Desk sales revenue 1,301,642 91,670 - 1,393,312 Games revenue 1,210 - - 1,210 Subsidy reduction fee - 62,983 15,907 78,890 Canned drink sales - 45,409 - 45,409 Vending 247,777 36,560 - 284,337 Service and rental fees 55,209 94,433 2 89 149,931 Total revenues 35,471,989 7,853,600 3,649,928 46,975,517 Expenditures Merchandise 6,232 1,973,763 - 1,979,995 Food 4,513,876 60,979 - 4,574,855 Salaries Faculty 1,548,481 177,329 - 1,725,810 Civil service 8,782,918 2,015,659 302,300 11,100,877 Student 2,014,427 222,980 138,647 2,376,054 Resident assistants 1,073,075 - - 1,073,075 Compensated absences (127,852) 20,925 (16,186) (123,113) Commodities Office and administrative supplies 91,933 70,706 1 6,042 178,681 Household - cleaning supplies 353,569 - - 353,569 Other commodities 784,377 165,692 1 9,639 969,708 Operation of automotive equipment 17,179 2,923 - 20,102 Travel 11,598 184 - 11,782 Contractual services Repairs 596,135 134,478 20,168 750,781 Rentals 292,723 1,594 - 294,317 Services 468,035 171,076 294,347 933,458 Insurance (137,583) (39,460) - (177,043) Operating taxes and fees 193,706 103,016 1 4,468 311,190 Utilities 3,238,746 891,560 18,263 4,148,569 Office and administrative 11,774 40 - 11,814 Other contractual services 2,433,643 514,577 3 1,937 2,980,157 Equipment 83,935 23,881 1 ,389 109,205 Telecommunications charges 568,409 11,885 4 ,455 584,749 Waivers & scholarships 27,406 98,286 4 6,678 172,370 Building improvement 28,531 6,711 5 ,816 41,058 Total expenditures 26,875,273 6,628,784 897,963 34,402,020 Excess of revenues over expenditures $ 8,596,716 $ 1 ,224,816 $ 2 ,751,965 $ 12,573,497 52 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS STATEMENT OF CURRENT FUNDS, UNRESTRICTED STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY For the Year Ended June 30, 2011 Student Student Textbook Living Facilities Rental Total Fund balances at July 1, 2010 $ 2,368,596 $ 162,717 $ 1,069,088 $ 3,600,401 Revenues and other additions Operating revenues 35,471,989 7,853,600 3,649,928 46,975,517 Expenditures and other deductions Operating expenditures 26,890,659 6,577,267 906,944 34,374,870 Change in compensated absences (127,852) 20,925 (16,186) (123,113) Equipment 83,935 23,881 1,389 109,205 Building improvements 28,531 6,711 5,816 41,058 Total expenditures and other deductions 26,875,273 6,628,784 897,963 34,402,020 Transfers among funds Deductions Mandatory transfers Debt retirement (2,978,278) (1,909,247) (305,911) (5,193,436) Non-mandatory transfers Repair and replacement reserve (1,109,304) (290,696) - (1,400,000) Project Director reserve (4,070,160) - (2,390,100) (6,460,260) Total transfers (8,157,742) (2,199,943) (2,696,011) (13,053,696) Net increase (decrease) for the year 438,974 (975,127) 55,954 (480,199) Fund balances at June 30, 2011 $ 2,807,570 $ (812,410) $ 1,125,042 $ 3,120,202 53 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS PLANT FUNDS BALANCE SHEET BY ENTITY June 30, 2011 Student Student Textbook Living Facilities Rental Total ASSETS RENEWAL AND REPLACEMENT Cash and temporary cash investments $ 4,922,747 $ 2,665,058 $ 955,406 $ 8,543,211 Investments 14,356 13,900 4,983 33,239 Total renewal and replacement 4,937,103 2,678,958 960,389 8,576,450 RETIREMENT OF INDEBTEDNESS Bond and interest sinking fund Cash and temporary investments (1,309,140) (800,860) (25,000) (2,135,000) Accounts receivable 1,505,901 929,384 77,562 2,512,847 Bond issuance costs Other assets 79,315 51,763 87,531 218,609 Total retirement of indebtedness 276,076 180,287 140,093 596,456 INVESTMENT IN PLANT Accounts receivable 97,931 396,415 - 494,346 Bond discount 353,913 242,027 14,311 610,251 Land 118,981 - - 118,981 Building and site improvements 84,161,444 39,363,911 3,740,771 127,266,126 Equipment 1,315,742 1,326,562 8,417,723 11,060,027 Accumulated depreciation (46,171,870) (20,117,864) (6,480,844) (72,770,578) Construction in progress 6,207,378 223,054 - 6,430,432 Total investment in plant 46,083,519 21,434,105 5,691,961 73,209,585 PROJECT CONSTRUCTION Cash and temporary investments - - 520,565 520,565 Investments - - 2,714 2,714 Total development reserve - - 523,279 523,279 Total assets $ 51,296,698 $ 24,293,350 $ 7,315,722 $ 82,905,770 54 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS PLANT FUNDS BALANCE SHEET BY ENTITY June 30, 2011 Student Student Textbook Living Facilities Rental Total RENEWAL AND REPLACEMENT Accounts payable $ 122,541 $ 1,600 $ - $ 124,141 Renewal and replacement reserve 4,814,562 2,677,358 960,389 8,452,309 Total renewal and replacement 4,937,103 2,678,958 960,389 8,576,450 RETIREMENT OF INDEBTEDNESS Accounts payable 196,761 128,524 52,562 377,847 Bond and interest sinking fund reserve - - - - Bond issuance costs 79,315 51,763 87,531 218,609 Total retirement of indebtedness 276,076 180,287 140,093 596,456 INVESTMENT IN PLANT Accounts payable - 508 - 508 Revenue bonds outstanding 16,742,682 11,002,318 4,040,000 31,785,000 Notes payable - 27,803 - 27,803 Lease obligations 1,137,467 523,778 - 1,661,245 Bond premium 269,946 169,638 - 439,584 Net investment in plant 27,933,424 9,710,060 1,651,961 39,295,445 Total investment in plant 46,083,519 21,434,105 5,691,961 73,209,585 PROJECT CONSTRUCTION Accounts payable - - - - Construction reserve - - 523,279 523,279 Total project construction - - 523,279 523,279 Total liabilities and fund balances $ 51,296,698 $ 24,293,350 $ 7,315,722 $ 82,905,770 LIABILITIES AND FUND BALANCES 55 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS PLANT FUNDS STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY For the Year Ended June 30, 2011 Student Student Textbook Living Facilities Rental Total RENEWAL AND REPLACEMENT Fund balances at July 1, 2010 $ 4,635,634 $ 2,695,608 $ 927,138 $ 8,258,380 Other revenues - 200,000 - 200,000 Non-mandatory transfers - current 1,109,304 290,696 - 1,400,000 Non-mandatory transfers - Project Directors' accounts 4,070,160 - 2,390,100 6,460,260 Repair expenditures (5,000,536) (508,946) (29,550) (5,539,032) Textbook expenditures - - (2,327,299) (2,327,299) Fund balances at June 30, 2011 $ 4,814,562 $ 2,677,358 $ 960,389 $ 8,452,309 RETIREMENT OF INDEBTEDNESS BOND AND INTEREST SINKING FUND Fund balances at July 1, 2010 $ - $ - $ - $ - Mandatory transfer from current fund 2,978,278 1,909,247 305,911 5,193,436 Debt retirement principal (2,154,230) (1,370,770) (95,000) (3,620,000) Debt retirement interest (824,048) (538,477) (210,911) (1,573,436) Fund balances at June 30, 2011 - - - - BOND ISSUANCE COSTS Fund balances at July 1, 2010 $ 112,468 $ 72,410 $ 97,298 $ 282,176 Bond closing costs amortization (33,153) (20,647) (9,767) (63,567) Fund balances at June 30, 2011 79,315 51,763 87,531 218,609 Total retirement of indebtedness - June 30, 2011 $ 79,315 $ 51,763 $ 87,531 $ 218,609 56 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY AUXILIARY ENTERPRISE FUNDS - REVENUE BONDS PLANT FUNDS STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY For the Year Ended June 30, 2011 Student Student Textbook Living Facilities Rental Total INVESTMENT IN PLANT Fund balances at July 1, 2010 $ 23,515,347 $ 9,052,436 $ 1,205,512 $ 33,773,295 Equipment purchased (net of deletions) 81,450 147,545 2,356,851 2,585,846 Buildings/sites (net of deletions) 3,821,948 135,871 225,708 4,183,527 Loss on disposal 3,000 1,700 - 4,700 Depreciation (2,706,485) (1,311,641) (2,229,513) (6,247,639) Debt retirement - principal payment 3,162,378 1,655,424 95,000 4,912,802 Bond discount expense (71,921) (49,417) (1,597) (122,935) Bond premium amortization 127,707 78,142 - 205,849 Fund balances at June 30, 2011 $ 27,933,424 $ 9,710,060 $ 1,651,961 $ 39,295,445 PROJECT CONSTRUCTION Fund balances at July 1, 2010 $ - $ - $ 671,614 $ 671,614 Construction expenditures - - (148,335) (148,335) Fund balances at June 30, 2011 $ - $ - $ 523,279 $ 523,279 57 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY AUXILIARY ENTERPRISE FUNDS - OTHER BALANCE SHEET BY ENTITY June 30, 2011 Student/Staff Regional Programs Services Total ASSETS CURRENT FUNDS Cash and temporary cash investments $ 161,648 $ - $ 161,648 Accounts receivable 166,252 - 166,252 Investments 3,144 - 3,144 Total current funds 331,044 - 331,044 PLANT FUNDS Cash and temporary cash investments 811,259 - 811,259 Investments 1,879 - 1,879 Building and site improvements 3,588,040 - 3,588,040 Land 1,248,811 - 1,248,811 Equipment 72,126 8,455 80,581 Accumulated depreciation (2,594,040) (8,455) (2,602,495) Construction in progress 482,732 - 482,732 Total plant funds 3,610,807 - 3,610,807 Total assets $ 3,941,851 $ - $ 3,941,851 LIABILITIES AND FUND BALANCES CURRENT FUNDS Accounts payable $ 6,478 $ - $ 6,478 Accrued payroll 19,350 - 19,350 Fund balances 305,216 - 305,216 Total current funds 331,044 - 331,044 PLANT FUNDS Accounts payable 19,555 - 19,555 Non-indentured reserves 793,583 - 793,583 Net investment in plant 2,797,669 - 2,797,669 Total plant funds 3,610,807 - 3,610,807 Total liabilities and fund balances $ 3,941,851 $ - $ 3,941,851 58 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY AUXILIARY ENTERPRISE FUNDS - OTHER CURRENT FUNDS STATEMENT OF REVENUES AND EXPENDITURES BY ENTITY For the Year Ended June 30, 2011 Student/Staff Regional Programs Services Total REVENUES Sales, services - enterprises $ 663,057 $ - $ 6 63,057 Fines and penalties 329,400 - 329,400 Other income 26,500 - 2 6,500 Total revenues 1,018,957 - 1 ,018,957 EXPENDITURES Salaries 294,199 - 2 94,199 Other expenses 99,944 - 9 9,944 Contractual services 123,131 - 1 23,131 Commodities 19,885 - 1 9,885 Total expenditures 537,159 - 5 37,159 Revenues over expenditures $ 481,798 $ - $ 481,798 59 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY AUXILIARY ENTERPRISE FUNDS - OTHER CURRENT FUNDS STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY For the Year Ended June 30, 2011 Student/Staff Regional Programs Services Total Fund balances at July 1, 2010 $ 274,418 $ - $ 274,418 Revenues and other additions Operating revenues 1,018,957 - 1,018,957 Change in investment market value - - - Total revenues and other additions 1,018,957 - 1,018,957 Expenditures and other deductions Operating expenditures 537,159 - 537,159 Non-mandatory transfers 451,000 - 451,000 Total expenditures and other deductions 988,159 - 988,159 Net increase for the year 30,798 - 30,798 Fund balances at June 30, 2011 $ 305,216 $ - $ 305,216 60 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY AUXILIARY ENTERPRISE FUNDS - OTHER PLANT FUNDS STATEMENT OF CHANGES IN FUND BALANCES BY ENTITY For the Year Ended June 30, 2011 Student/Staff Regional Programs Services Total NON-INDENTURED RESERVES Fund balances at July 1, 2010 $ 588,290 $ - $ 588,290 Reserve additions Current funds 451,000 - 451,000 Total additions 451,000 - 451,000 Reserve deductions Permanent improvements 245,707 - 245,707 Total reductions 245,707 - 245,707 Fund balances at June 30, 2011 $ 793,583 $ - $ 793,583 INVESTMENT IN PLANT Fund balances at July 1, 2010 $ 2,483,435 $ - $ 2,483,435 Plant additions Current funds 71,039 - 71,039 Reserve funds 419,362 419,362 Total additions 490,401 - 490,401 Plant reduction Depreciation 176,167 - 176,167 Total reduction 176,167 - 176,167 Fund balances at June 30, 2011 $ 2,797,669 $ - $ 2,797,669 61 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY ANALYSIS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS For the Years Ended June 30, 2011 and 2010 Increase Percentage 2011 2010 (Decrease) Change Operating Revenues: Student tuition and fees $ 76,341,978 $ 75,349,113 $ 992,865 1% Federal grants and contracts 2,035,912 2,963,553 (927,641) -31% (A) State grants and contracts 2,475,164 2,534,502 (59,338) -2% Local grants and contracts 420,163 310,956 109,207 35% Private grants and contracts 2,014,022 2,332,468 (318,446) -14% Sales and services of educational departments 4,157,156 4,486,307 (329,151) -7% Auxiliary enterprises 44,953,396 46,248,703 (1,295,307) -3% Other operating revenues 2,947,282 2,637,801 309,481 12% Operating Expenses: Educational and general Instruction 94,171,743 93,706,501 465,242 0% Research 1,147,875 1,231,187 (83,312) -7% Public service 7,896,281 8,044,122 (147,841) -2% Academic support 15,736,629 16,095,347 (358,718) -2% Student services 20,871,872 19,321,993 1,549,879 8% Institutional support 20,078,350 18,942,757 1,135,593 6% Operations of maintenance of plant 14,633,999 14,594,327 39,672 0% Student aid 10,905,280 9,073,353 1,831,927 20% (B) Auxiliary enterprises 33,661,480 35,716,891 (2,055,411) -6% Depreciation expense 14,604,059 14,868,320 (264,261) -2% Nonoperating Revenues (Expenses): State appropriations 47,417,250 47,613,750 (196,500) 0% State appropriations through Federal ARRA funds - 2,956,963 (2,956,963) 100% (C) Payments on behalf of the University 48,399,928 44,755,254 3,644,674 8% Gifts 1,729,803 1,717,722 12,081 1% Investment income (net) 108,015 155,102 (47,087) -30% Net decrease in fair value of investments 86,145 36,791 49,354 134% Interest on capital asset-related debt (4,731,328) (4,503,647) (227,681) 5% Nonoperating grants and contracts 16,985,494 14,309,497 2,675,997 19% Amortization of bond costs, premiums, and discounts (147,037) (57,658) (89,379) 155% Payments to the Foundation (8,340) (6,740) (1,600) 24% Loss on disposal of capital assets (58,895) (62,856) 3,961 -6% Other nonoperating revenues 1,761,392 783,164 978,228 125% (D) Other Changes in Net Assets: Capital appropriations 377,404 - 377,404 100% (E) Capital grants and gifts 1,255,221 450,244 804,977 179% (F) Transfers from Capital Development Board 240,471 1,212,275 (971,804) -80% (G) 62 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY ANALYSIS OF SIGNIFICANT VARIATIONS IN REVENUE, EXPENSES AND CHANGE IN NET ASSETS For the year ended June 30, 2011 All variances greater than $200,000 and more than 20% from fiscal year 2010 are discussed below. Refer to the Analysis of Revenues, Expenses and Changes in Net Assets on page 60 for the actual dollar changes. Explanations of significant variances: (A) Federal grants and contracts – The significant decrease in this account was primarily due to lower grants this year and concluding other grants related to the Student Success Center, the Power Plant replacement, the Japanese Beetle Research and Development grant, and Expanding Instructional Capacity grant. In addition, there was a decrease in the grants for Peace Meal and Department of Education Campus Safety Equipment. (B) Student aid expenses – The increase in this account is associated with increased Pell grants and financial aid provided to students during fiscal year 2011. (C) State appropriation through Federal ARRA Funds – The decrease pertains to the funding through the American Recovery and Reinvestment Act, which was only in the fiscal year 2010. (D) Other nonoperating revenue – The increase in this account is due to the University receiving a full year of the Build America Bond subsidy from the federal government related to the issuance of the Certificate of Participation Series 2009A. In fiscal year 2010, the University only received a half year of the interest credit. (E) Capital appropriations – The increase in this account is due to the University receiving capital appropriations from the State in fiscal year 2011. During fiscal year 2010, the State did not release the University’s capital appropriation. (F) Capital grants and gifts – The increase in capital grants and gifts is the result of several grants received relating to the construction of the Renewable Energy Center and other campus energy savings projects. (G) Transfers from Capital Development Board – The decrease in this account is due to the State’s Capital Development Board spending less money on construction projects at the University during fiscal year 2011. 63 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY ANALYSIS OF SIGNIFICANT VARIATIONS IN ACCOUNT BALANCES JUNE 30, 2011 AND 2010 Increase Percentage 2011 2010 (Decrease) Change Assets: Current assets: Cash and cash equivalents $ 41,601,939 $ 67,499,797 $ (25,897,858) -38% (A) Restricted cash and cash equivalents 2,364,394 2,938,168 (573,774) -20% (A) Short-term investments 245,000 250,000 (5,000) -2% Restricted short-term investments 16,397 14,244 2,153 15% Accounts receivable, net of allowance 13,181,079 12,458,834 722,245 6% State appropriation receivable 20,815,237 13,266,497 7,548,740 57% (B) Interest receivable 991 2,194 (1,203) -55% Inventories 2,057,629 1,734,194 323,435 19% Notes receivable, current portion, net 956,821 922,730 34,091 4% Other assets 900,632 1,364,408 (463,776) -34% Noncurrent assets: Notes receivable, less current portion 5,413,588 5,332,271 81,317 2% Endowment investments 550,971 459,477 91,494 20% Other long-term assets 2,565,387 2,043,539 521,848 26% Capital assets, net of accumulated depreciation 292,808,934 269,602,692 23,206,242 9% Liabilities: Current liabilities: Accounts payable and accrued liabilities 16,649,738 19,736,802 (3,087,064) -16% Deferred revenues 3,940,806 3,855,752 85,054 2% Long-term liabilities, current portion 9,610,987 8,929,792 681,195 8% Noncurrent liabilities: Long term liabilities, less current portion 134,552,909 141,685,132 (7,132,223) -5% Federal loan program contributions refundable 5,710,824 5,720,860 (10,036) 0% 64 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY ANALYSIS OF SIGNIFICANT VARIATIONS IN ACCOUNT BALANCES For the Year Ended June 30, 2011 All variances greater than $200,000 and more than 20% from fiscal year 2010 are discussed below. Refer to the Analysis of Significant Variations in Account Balances on page 62 for the actual dollar changes. Explanations of significant variances: (A) Cash and cash equivalents and restricted cash and cash equivalents – The significant decrease in this account is due to the University receiving a lower State appropriation and slower State payments in fiscal year 2011 and the University spending the Certificate of Participation 2009A proceeds received in fiscal year 2010. (B) State appropriation receivable – The increase was due to slower payments of State appropriations, primarily payroll reimbursements, during fiscal year 2011. 65 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY ANALYSIS OF SIGNIFICANT LAPSE PERIOD SPENDING For the Year Ended June 30, 2011 There were no significant expenditures incurred during the lapse period. 66 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF ACCOUNTS RECEIVABLE For the Years Ended June 30, 2011 and 2010 Accounts receivable are as follows at June 30: Aging Analysis 2011 2010 Current $3,780,128 $4,007,839 1-180 days past due 1,954,283 1,825,830 181 days past due 1,559,160 1,266,909 Over 1 year past due 8,926,917 7,584,322 16,220,488 14,684,900 Grants receivable not aged 1,090,253 1,591,554 Scholarship receivables not aged 1,740,613 997,063 Total accounts receivable 19,051,354 17,273,517 Less: allowance for doubtful accounts (5,870,275) (4,814,683) $13,181,079 $12,458,834 The majority of the receivables relate to amounts due from student accounts for tuition and fees and room and board. Smaller receivable amounts are for summer camp activities, publication advertising and NCAA donations. Scholarship receivables and grant receivables are not aged due to their nature. These are usually received from other governmental agencies within the semester in which the billings or expenses are incurred. Collection Policies for Accounts Receivable The University pursues a collection process for student receivables as soon as students begin their career at EIU. Monthly statements are sent to the students as long as balances exist on their accounts. Unpaid balances are assessed a 1% per month finance charge. Records of students who do not pay their balances in full by a specified date are placed on hold so that they are prevented from receiving University services or registering for classes for the next semester. Once students leave the University, monthly statements continue to be sent. After 90 days, if the balance of the account is more than $1,000, the account is placed in the State Comptroller’s Offset System. Large accounts (over $200) with no payment activity are eventually placed with a collection agency for six months. Accounts between $200 and $1,000 are also placed into the State Comptroller’s Offset System at the time they are referred to the collection agency. 67 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SCHEDULE OF CASH AND CASH EQUIVALENTS AND INVESTMENTS Cash and cash equivalents and investments are as follows as of June 30: 2011 2010 CASH AND CASH EQUIVALENTS Petty Cash Funds $ 35,940 $ 35,480 The Illinois Funds 43,914,160 70,386,923 Checking accounts First Mid-Illinois Bank & Trust, Charleston, Illinois 16,233 15,562 Total cash and cash equivalents 43,966,333 70,437,965 INVESTMENTS Certificate of deposit 245,000 250,000 Mutual funds 567,368 473,721 Total investments 812,368 723,721 Total cash and cash equivalents and investments $ 44,778,701 $ 71,161,686 68 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SUMMARY OF INDIRECT COST REIMBURSEMENT STATEMENT OF SOURCES AND APPLICATIONS For the Years Ended June 30, 2011 and 2010 2011 2010 Sources Federal $ 181,582 $ 239,446 State 123,986 164,158 Other 13,393 13,286 318,961 416,890 Applications Academic support 129,320 75,525 Institutional support 167,972 100,563 Operations and maintenance of plant 35,054 34,432 Student services 1,335 139,959 333,681 350,479 Sources over applications (14,720) 66,411 Fund balance, beginning of year 225,616 159,205 Fund balance, end of year $ 210,896 $ 225,616 69 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY SUMMARY OF INDIRECT COST REIMBURSEMENT CALCULATION SHEET FOR INDIRECT COST CARRY-FORWARD For the Year Ended June 30, 2011 1. Cash and Cash Equivalents Balance Enter the June 30 indirect cost entity balance for cash and equivalents $ 213,919 2. Allocated Reimbursements $805,016; enter 30% of this amount 241,505 3. Unallocated Reimbursements - 4. Encumbrances and Current Liabilities Paid in the Lapse Period Enter the amount of Current liabilities 3,023 Encumbrances - Total 3,023 5. Indirect Cost Carry-forward a. Enter the total of items 2, 3 and 4 244,528 $ ( 30,609) the Income Fund $ - Enter the lesser of the actual unallocated indirect cost reimbursements for the year completed OR 10% of total indirect cost allocations for the year completed Subtract line 5a. from item 1 Enter the total indirect cost reimbursements allocated for expenditure for the fiscal year completed If the positive number results, enter here and remit for deposit in 70 STATE OF ILLINOIS EASTERN ILLINOIS UNIVERSITY UNIVERSITY FUNCTIONS AND PLANNING PROGRAM For the Year Ended June 30, 2011 Description of Planning System Eastern Illinois University’s mission statement states that it offers superior, accessible undergraduate and graduate education. Students learn the methods and results of free and rigorous inquiry in the arts, humanities, sciences, and professions, guided by a faculty known for its excellence in teaching, research, creativity activity, and service. The University community is committed to diversity and inclusion and fosters opportunities for student-faculty scholarship and applied learning experiences within a student-centered campus culture. Throughout their education, students refine their abilities to reason and to communicate clearly so as to become responsible citizens and leaders. The current University president started in July 2007. Various meetings were conducted with representative groups of students, faculty, staff, and administration, and public forums were held for students, faculty, and staff to get the University community’s participation that would assist the President in assessing the strengths, weaknesses, opportunities, and threats related to the University’s advancement. As a result of these meetings, the established University-wide strategic objectives focused on: 1. Upholding excellence; 2. Strengthening the EIU personal experience for all members of the EIU community; 3. Enhancing accessibility and affordability of an EIU education; and, 4. Supporting service to each other and to community, region, State, nation, and world. The President also established five University-wide priorities in support of the academic and personal achievement of the students: 1. Enhancing support for excellence in faculty scholarship and teaching, in particular faculty-mentored undergraduate research, scholarship, and creative activities; 2. Enhancing service and leadership opportunities for students; 3. Enhancing fine arts programming and outreach; 4. Enhancing study abroad opportunities; and, 5. Enhancing honors programs. The Office of Planning and Institutional Studies is responsible for gathering University information that provides criteria to assess progress toward the achievement of objectives assigned to each Vice Presidents, Deans and Directors. The Department has developed a University Metrics that shows the priorities and the list of measures used to determine the University performance in meeting the g |
