REPORT DIGEST

 

INTERMEDIATE SERVICE CENTER #1

 

NORTH COOK

 

FINANCIAL AUDIT

(In Accordance with the
Single Audit Act and
OMB Circular A-133)

 

For the Year Ended:

June 30, 2008

 

Summary of Findings:

 

Total this audit                     1

Total last audit                     0

Repeated from last audit      0

 

Release Date:

April 21, 2009

 

 

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

 

 

 

 

To obtain a copy of the Report contact:

Office of the Auditor General

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 82-6046 or TTY (888) 261-2887

 

 

This Report Digest and Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

         The North Cook Intermediate Service Center #1 did not have sufficient internal controls over the financial reporting process.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Revenues are summarized on the reverse page.}

 

 

 

 

INTERMEDIATE SERVICE CENTER #1

NORTH COOK

 

 

FINANCIAL AUDIT

(In Accordance with Single Audit Act and OMB Circular A-133)

For The Year Ended June 30, 2008

 

 

 

FY 2008

FY 2007

TOTAL REVENUES

$5,576,399

$5,128,615

Local Sources

$2,183,152

$1,899,885

% of Total Revenues

39.15%

37.04%

State Sources

$2,404,230

$2,411,438

% of Total Revenues

43.11%

47.02%

Federal Sources

$989,017

$817,292

% of Total Revenues

17.74%

15.94%

 

TOTAL EXPENDITURES

$5,558,154

$4,898,417

Salaries and Benefits

$3,001,743

$2,512,879

% of Total Expenditures

54.01%

51.30%

Purchased Services

$1,948,471

$1,824,195

% of Total Expenditures

35.06%

37.24%

All Other Expenditures

$607,940

$561,343

% of Total Expenditures

10.94%

11.46%

 

TOTAL NET ASSETS

$2,628,618

$2,610,373

 

INVESTMENT IN CAPITAL ASSETS

$197,387

$231,813

 

Percentages may not add due to rounding.

 

 

EXECUTIVE DIRECTOR

During Audit Period:Mr. Robert Ingraffia

Currently: Mr. Robert Ingraffia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The North Cook Intermediate Service Center #1 did not have sufficient internal controls over the financial reporting process.

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

 

Controls Over Financial Statement Preparation

 

†††††††† The North Cook Intermediate Service Center #1 (Service Center) is required to maintain a system of controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP).The Service Centerís internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge and expertise to prepare and/or thoroughly review GAAP financial statements to ensure that they are free of material misstatements and include all disclosures as required by the Governmental Accounting Standards Board (GASB).

 

†††††††† The North Cook Intermediate Service Center #1 did not have sufficient internal controls over the financial reporting process.The Service Center maintains their accounting records on the cash basis of accounting.While the Service Center maintains controls over the processing of some accounting transactions, there are not sufficient controls over the preparation of the GAAP based financial statements for management or employees in the normal course of performing their assigned functions to prevent or detect financial statement misstatements and disclosure omissions in a timely manner.

 

†††††††† In the auditorsí review of the Service Centerís accounting records, numerous journal entries were required to present financial statements in accordance with generally accepted accounting principles.For example, adjusting journal entries were required because the Service Center did not periodically review general ledger account balances for proper account classification, variances, and unusual items.

As a result, the accrued payroll liability account required an adjustment in the amount of $14,206.

 

††††† ††Additionally, the prior year adjusting journal entries were not posted correctly. Due to the lack of general ledger account review, the Center did not detect audit adjustments from the prior fiscal period that were recorded in the current fiscal period.This resulted in an error of $62,410 to the beginning fund balance.

 

†††††††† According to North Cook Intermediate Service Center officials, they did not have adequate funding to hire and/or train their accounting personnel in order to comply with these requirements.Additionally, reviews of general ledger accounts were not thoroughly performed due to the turnover in the Accounting Coordinator, Executive Director, and Business Manager positions. (Finding 08-01, pages 11-12)

 

†††††††† The auditors recommended that North Cook Intermediate Service Center #1 implement comprehensive review processes and year-end closing procedures to ensure that transactions and account balances are properly recorded in accordance with generally accepted accounting principles.Such procedures should be performed by a properly trained individual(s) possessing a thorough understanding of applicable generally accepted accounting principles, GASB pronouncements, and knowledge of the Intermediate Service Center activities and operations.

 

†††††††† The Service Center agreed with the finding and stated it will monitor/review year-end closing procedures and possibly employ other resources when additional monies become available to do so.

 

AUDITORSí OPINION

 

†††††††† Our auditors state the Intermediate Service Center #1ís financial statements as of June 30, 2008 are fairly presented in all material respects.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:KJM

 

 

SPECIAL ASSISTANT AUDITORS

 

†††††††† Our special assistant auditors were Bass, Solomon, & Dowell, LLP.