REPORT DIGEST

REGIONAL OFFICE OF EDUCATION # 1

ADAMS AND PIKE COUNTIES

FINANCIAL AUDIT

For the Year Ended:

June 30, 2002

Summary of Findings:

Total this audit 3
Total last audit 4
Repeated from last audit 2

Release Date:
April 16, 2003

logo.jpg (8630 bytes)

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
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

 

 

SYNOPSIS

 

 

  • The Regional Office of Education # 1 does not maintain a General Fixed Asset Account Group as required by generally accepted accounting principles. Because this account group was omitted, the Regional Office of Education # 1 received a qualified opinion on their general-purpose financial statements.
  • The Regional Office of Education does not account for the monthly excess balances in the payroll imprest bank account. The grant or the county is being overcharged or undercharged for payroll expenses on a monthly basis.
  • The Regional Office of Education # 1’s bank reconciliation for the projects account had an adjustment of $29,991, which was not properly recorded in the accounting records. During the year, there were transfers made and not recorded, in addition to transfers recorded and not made, which resulted in this adjustment.

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

REGIONAL OFFICE OF EDUCATION # 1
ADAMS AND PIKE COUNTIES
FINANCIAL AUDIT
For The Year Ended June 30, 2002

FY 2002

FY 2001

TOTAL REVENUES

1$1,818,410

$1,762,420

Local sources

$145,486

$161,434

% of Total Revenues

8.00%

9.16%

State Sources

1$1,584,124

$1,305,481

% of Total Revenues

87.12%

74.07%

Federal Sources

$88,800

$295,505

% of Total Revenues

4.88%

16.77%

TOTAL EXPENDITURES

1$1,737,938

$1,823,779

Salaries and Benefits

1$856,322

$661,944

% of Total Expenditures

49.27%

36.30%

Purchased Services

$304,210

$403,390

% of Total Expenditures

17.50%

22.12%

All Other Expenditures

$577,406

$758,445

% of Total Expenditures

33.22%

41.59%

COST OF PROPERTY AND EQUIPMENT

2

2

Note: Fiscal Year 2001 data was obtained from audits of ROEs conducted under the direction of  the Illinois State Board of Education.
1 Fiscal Year 2002 amounts include on-behalf payments ($182,489). On-behalf payments were not included in Fiscal Year 2001.
2 A schedule of general fixed assets was not maintained, therefore a qualified opinion was issued.
* Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT
During Audit Period: Honorable Raymond Scheiter
Currently: Honorable Raymond Scheiter
 

 

 

 

The Regional Office of Education # 1 does not maintain a schedule of general fixed assets.

 

 

 

 

 

 

 

 

The Regional Office of Education # 1 does not properly account for the monthly excess balances in the payroll imprest bank account.

 

 

 

 

 

 

 

The Regional Office of Education # 1’s bank reconciliation for the projects account had an adjustment of $29,991, which was not properly recorded in the accounting records.

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

NO GENERAL FIXED ASSET ACCOUNT GROUP

The Regional Office of Education # 1 does not maintain a schedule of general fixed assets. Generally accepted accounting principles require that entities maintain a General Fixed Asset Account Group. Because the Regional Office of Education # 1 omitted this account group, the audit opinion on the general-purpose financial statements was qualified. (Finding 02-1, page 11)

The Regional Office of Education # 1 accepted the recommendation to follow its policy for recording general fixed assets.

MAINTENANCE OF THE PAYROLL BANK ACCOUNT

The Regional Office of Education # 1 does not account for the monthly excess balances in the payroll imprest bank account. The various grants and the county are charged their proportionate share of the payroll and the funds are deposited into the payroll imprest account. After each payroll is disbursed, the Regional Office of Education # 1’s payroll bank account has a balance ranging from $16,329 to $19,354 when the balance in the payroll account should be $500.

The payroll account should be accurately maintained, and any excess balances investigated and accounted for so that the county or grants are not over/under charged for payroll expenses. (Finding 02-2, page 12)

The Regional Office of Education # 1 accepted the recommendation to accurately maintain the payroll account so that the grants and county are properly charged for payroll expenditures.

BANK RECONCILIATIONS

The Regional Office of Education # 1’s bank reconciliation for the projects account had an adjustment in the amount of $29,991, which was not properly recorded in the accounting records. During the year there were transfers made and not recorded, in addition to transfers recorded and not made which resulted in this adjustment.

Generally accepted accounting principles require that bank reconciliations be performed to insure that all transactions have been recorded. (Finding 02-3, page 13)

The Regional Office of Education # 1 accepted the recommendation to properly perform monthly reconciliations on all bank accounts and investigate and account for any adjustments noted on the reconciliation.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education # 1’s financial statements as of June 30, 2002 are fairly presented in all material respects except for the effect of the omission of the General Fixed Asset Account Group. The General Fixed Asset Account Group should be included in order to conform with generally accepted accounting principles.

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KJM:ro

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Bennett & Middendorf, LTD.