Audit findings reveal late payments, poor internal controls at IL higher
ed board
[April 30, 2025]
By Jim Talamonti | The Center Square
(The Center Square) – The Illinois Board of Higher Education is facing
questions from lawmakers about financial noncompliance and late payments
to schools.
The latest report from the Legislative Audit Commission called for IBHE
to have stronger internal controls, after the Office of the Auditor
General found that the board made late voucher payments to schools 90%
of the time in fiscal year 2023.
Courtney Dzierwa of the Auditor General’s Office said the board’s
internal controls were not operating effectively.
“Due to this condition, we qualified our opinion because we determined
the board had not complied in all material respects with all applicable
laws and regulations,” Dzierwa said.
IBHE failed to explain a $23,959 voucher payment made without approval.
State Sen. Chapin Rose, R-Mahomet, asked Dzierwa if there was anything
in her opinion that would suggest intentional malfeasance.
“We did issue a modified opinion on compliance. We did not identify any
issues that you indicated,” Dzierwa answered.
“Negligence isn’t good,” Rose said.
Rose told IBHE Executive Director Ginger Ostro that the board is on the
wrong track.
“This is not a good look. You’re asking the state right now, well I
guess you’ll say the legislature is contemplating, but you’ve led a
multi-year effort, that if it culminates in legislation this spring, to
hand you guys essentially a very large check and just trust you to get
the dollars out the door to all of our four-year institutions,” Rose
said.
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Members of the Illinois Board of Higher Education during a
Legislative Audit Commission hearing on April 29, 2025 -
BlueRoomStream
Rose noted that the Legislative Audit Commission made 17 compliance
recommendations, nine of which were repeat findings. He said IBHE is
trending in the wrong direction.
“We’ve gone from three audits to 11 audits to 17 findings. What’s
going on? And don’t tell me you didn’t know,” Rose said.
Ostro blamed staff turnover during the COVID-19 pandemic.
“We had responsibilities on too few staff that we have now changed
and addressed, and we were expanding and taking on more
responsibilities,” Ostro said.
The board agreed with the findings and said it obtained additional
training to ensure transactions are properly processed.
Ostro previously served as director of the Governor’s Office of
Management and Budget. She also served as chief financial officer at
Chicago State University and at Chicago Public Schools.
Ostro said IBHE has made significant changes in its leadership
structure.
“We have seen evidence with the changes that we have made, that our
processes have been improved and we are complying with the statutory
requirements,” Ostro said. |
