REPORT DIGEST

 

INTERMEDIATE SERVICE CENTER #4

 

SOUTH 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                      1

Repeated from last audit       0

 

Release Date:

October 15, 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) 782-6046 or TTY (888) 261-2887

 

This Report Digest and Full Report is also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

  • The South Cook Intermediate Service Center #4 did not have sufficient internal controls over the financial reporting process.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

INTERMEDIATE SERVICE CENTER #4

SOUTH COOK

 

 

FINANCIAL AUDIT

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

For The Year Ended June 30, 2008

 

 

 

FY 2008

FY 2007

TOTAL REVENUES

$8,170,574

$7,673,471

Local Sources

$2,118,728

$1,271,142

% of Total Revenues

25.93%

16.57%

State Sources

$2,996,054

$3,464,591

% of Total Revenues

36.67%

45.15%

Federal Sources

$3,055,792

$2,937,738

% of Total Revenues

37.40%

38.28%

 

TOTAL EXPENDITURES

$6,781,661

$5,591,720

Salaries and Benefits

$3,652,244

$3,251,224

% of Total Expenditures

53.85%

58.14%

Purchased Services

$2,414,163

$1,395,830

% of Total Expenditures

35.60%

24.96%

All Other Expenditures

715,254

$944,666

% of Total Expenditures

10.55%

16.89%

 

TOTAL NET ASSETS

$11,085,285

$9,696,372

 

INVESTMENT IN CAPITAL ASSETS

$3,993,314

$3,225,659

 

Percentages may not add due to rounding.

 

EXECUTIVE DIRECTOR

During Audit Period: Dr. Vanessa Kinder

Currently:Dr. Vanessa Kinder

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The South Cook Intermediate Service Center #4 did not have sufficient internal controls over the financial reporting process.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

 
CONTROLS OVER FINANCIAL STATEMENT PREPARATION

 

†††††††† The South Cook Intermediate Service Center #4 is required to maintain a system of controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP).South Cook Intermediate Service Center #4ís internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge and expertise to prepare and/or thoroughly review GAAP based 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 South Cook Intermediate Service Center #4 did not have sufficient internal controls over the financial reporting process.The Service Center maintains its accounting records on the cash basis of accounting. While the Service Center maintains controls over the processing of most 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. For example, auditors, in their review of the Service Centerís accounting records noted the following:

  • The Service Center did not have adequate controls over the maintenance of complete records of accounts receivable, accounts payable, or deferred revenue.

  • Numerous adjustments were required to present financial statements in accordance with generally accepted accounting principles.

†††††††† According to South Cook Intermediate Service Center #4 officials, they did not have adequate funding to hire and/or train their accounting personnel in order to comply with these requirements.(Finding 08-1, pages 11-12)

†††††††† The auditors recommended that, as part of its internal control over the preparation of its financial statements, including disclosures, the South Cook Intermediate Service Center #4 should implement a comprehensive preparation and/or review procedure to ensure that the financial statements, including disclosures, are complete and accurate.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 Centerís activities and operations.

 

†††††††† The South Cook Intermediate Service Center #4 responded that it understands the nature of this finding and realizes that this circumstance is not unusual in smaller organizations.South Cook Intermediate Service Center #4 is confident in the abilities of the accounting/ bookkeeping staff to prepare cash basis financial information as needed for reporting purposes throughout the year.Management will review year end reporting controls annually and investigate the cost of training staff to reach an appropriate level of expertise to do a comprehensive preparation and review of financial statements.In an attempt to correct this finding, the training sought will provide South Cook Intermediate Service Center staff with a better understanding of accrual accounting and reporting under generally accepted accounting principles (GAAP).

 

 

AUDITORSí OPINION

 

†††††††† Our auditors state the Intermediate Service Center #4ís financial statements as of June 30, 2008 are fairly presented in all material respects.

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:JRB

 

 

SPECIAL ASSISTANT AUDITORS

 

†††††††† Bass, Solomon & Dowell, LLP were our special assistant auditors in this audit.