REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #3

 

BOND, FAYETTE AND EFFINGHAM COUNTIES

 

FINANCIAL AUDIT

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

For the Year Ended:

June 30, 2006

 

Summary of Findings:

 

Total this audit†††††††††††††             2

Total last audit†††††††††††             2

Repeated from last audit†††††††††† 1

 

Release Date:

March 8, 2007 

 

 

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.state.il.us/auditor

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

        The Regional Office of Education #3 did not comply with certain statutory administrative requirements.

 

        The Regional Office of Education #3 did not have adequate internal controls over certain disbursements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 


†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

 

 

 

REGIONAL OFFICE OF EDUCATION #3

BOND, FAYETTE AND EFFINGHAM COUNTIES

 

FINANCIAL AUDIT

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

For The Year Ended June 30, 2006

 

 

 

FY 2006

FY 2005

TOTAL REVENUES

$1,883,514

$1,837,117

Local Sources

$506,456

$458,089

% of Total Revenues

26.89%

24.94%

State Sources

$1,012,193

$897,353

% of Total Revenues

53.74%

48.85%

Federal Sources

$364,865

$481,675

% of Total Revenues

19.37%

26.22%

 

TOTAL EXPENDITURES

$1,872,645

$1,888,883

Salaries and Benefits

$1,219,221

$1,103,523

% of Total Expenditures

65.11%

58.42%

Purchased Services

$518,375

$704,644

% of Total Expenditures

27.68%

37.30%

All Other Expenditures

$135,049

$80,716

% of Total Expenditures

7.21%

4.27%

 

 

 

TOTAL NET ASSETS

$594,565

$583,696

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$34,103

 

$34,204

 


Percentages may not add due to rounding.

 

REGIONAL SUPERINTENDENT

During Audit Period:Honorable Mark A. Drone

Currently:Honorable Mark A. Drone


 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #3 did not comply with certain statutory administrative requirements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #3 did not have adequate internal controls over certain disbursements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

 

CONTROLS OVER COMPLIANCE WITH LAWS AND REGULATIONS

 

†††††††† The Illinois School Code (105 ILCS 5/3-14.11) requires the Regional Superintendent to examine at least once each year all books, accounts, and vouchers of every school treasurer in his educational service region, and if he finds any irregularities in them, to report them at once, as directed by the School Code.

 

†††††††† The Regional Office did not examine at least once each year all books, accounts, and vouchers of every school treasurer in the educational service region.Regional Office officials noted they believe the mandate is outdated and that they are satisfying the intent of the statute by other reviews they undertake.This mandate has existed in its current form since at least 1953.†††††††††

 

††††††† †The Illinois School Code (105 ILCS 5/3-14.5) also requires the Regional Superintendent to visit each public school in the county at least once a year, noting the methods of instruction, the branches taught, the textbooks used, and the discipline, government and general condition of the schools.This mandate has existed in its current form since at least 1953.

 

†††††††† The Regional Superintendent performs compliance inspections for each public school in his region on a rotational basis every three years instead of annually.The Illinois Public School Accreditation Process Compliance Component document completed at these visits includes many of the items delineated in 105 ILCS 5/3-14.5, but does not include a review of the methods of instruction and the textbooks used in the district.(Finding 06-1, pages 12a -12b)

 

†††††††† The Regional Office accepted the recommendation to comply with the statutory requirements.The Regional Office responded that with regards to compliance with 105 ILCS 5/3-14.11 and 105 ILCS 5/3-14.5, the Illinois Association of Regional Superintendents of Schools and the Illinois State Board of Education have agreed to seek legislation to remove duplicative and/or obsolete sections of the Illinois School Code.Both parties believe that 105 ILCS 5/3-7 of the Illinois School Code and 23 Ill. Adm. Code 1.20, respectively, contain more current, thorough, and comprehensive requirements concerning a public school districtís financial transactions and visitation of public schools by the Regional Superintendent.As a result, the two parties working together will seek legislation to repeal these two sections of the Illinois School Code.††

 

 

INTERNAL CONTROL OVER DISBURSEMENTS

 

†††††††† The Regional Office did not have adequate internal controls over certain disbursements.In five instances, the Regional Office did not have proper documentation to support credit card charges totaling $747 for hotel lodging. †††

 

†††††††† The Regional Superintendent of Schools is responsible for establishing and maintaining an internal control system over disbursements and purchases to prevent errors and fraud. (Finding 06-2, page 12c)

 

†††††††† The Regional Office of Education #3 accepted the recommendation to ensure that all original credit card receipts are obtained and reconciled to the original monthly statement.The Regional Office noted that the documentation to support the credit card charges for hotel lodging were grouped together on bills from the hotels and paid accordingly.When the auditors brought the lack of documentation to their attention, the Regional Office immediately contacted the hotels and requested individual room invoices.The Regional Office obtained copies of the individual room invoices from one of the hotels, however, the other hotel involved had recently changed management and no longer had the records the Regional Office requested.

 

 

 

AUDITORSí OPINION

 

††††††† †Our auditors state the Regional Office of Education†††††† #3ís financial statements as of June 30, 2006 are fairly presented in all material respects.††††††††

 

 

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:KJM:ro

 

 

SPECIAL ASSISTANT AUDITORS

 

††††††† Our special assistant auditors were Kemper CPA Group, LLP.