REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #4

 

BOONE AND WINNEBAGO  COUNTIES

 

FINANCIAL AUDIT

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

 

For the Year Ended:

June 30, 2005

 

Summary of Findings:

 

Total this audit                          2

Total last audit                          0

Repeated from last audit           0

 

Release Date:

July 12, 2006 

 

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 are also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

·        The Regional Office of Education #4 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

 

·        The Regional Office of Education #4 did not record equipment purchases totaling $11,285 in the property records.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


 

 

                                                                                   

REGIONAL OFFICE OF EDUCATION #4

BOONE AND WINNEBAGO COUNTIES

 

FINANCIAL AUDIT

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

For The Year Ended June 30, 2005

 

 

 

FY 2005

FY 2004

TOTAL REVENUES

$6,778,458

$5,380,472

Local Sources

$1,189,854

$857,372

% of Total Revenues

17.55%

15.93%

State Sources

$2,942,690

$3,211,262

% of Total Revenues

43.41%

59.68%

Federal Sources

$2,645,914

$1,311,838

% of Total Revenues

39.03%

24.38%

 

TOTAL EXPENDITURES

$6,344,480

$5,093,070

Salaries and Benefits

$2,819,943

$2,508,515

% of Total Expenditures

44.45%

49.25%

Purchased Services

$2,247,705

$1,549,165

% of Total Expenditures

35.43%

30.42%

All Other Expenditures

$1,276,832

$1,035,390

% of Total Expenditures

20.13%

20.33%

 

 

 

TOTAL NET ASSETS

$3,271,608

$2,837,630

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$58,229

 

$66,747

         Percentages may not add due to rounding

 

REGIONAL SUPERINTENDENT 

During Audit Period: Honorable Richard Fairgrieves

Currently: Honorable Richard Fairgrieves

 


 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #4 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #4 did not record equipment purchases totaling $11,285 in the property records.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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. (Finding 05-1, pages 12-14)

 

       The Regional Superintendent responded that after reviewing ROE audits for twenty years, he had never seen this Section of the Code mentioned either as a comment or a concern, and that he had searched diligently for the “Standard” the Regional Office would need to meet in order to comply with the finding.  The Superintendent further stated that this Section of the School Code is over a hundred years old and was enacted before the school districts were required to have an annual financial audit by a certified public accountant.  The Superintendent also cites Section 5/3-7 of the School Code which he feels provides no doubt that the ROEs have the authority to conduct an audit of a school district if the need arises.  However, the Superintendent states that to place this financial burden on the people of Illinois without reasonable cause seems an unreasonable interpretation of this section of the School Code. 

 

       The auditors commented that this requirement exists in statute and the statute specifies what the Regional Office must do to comply with this mandate.  Recognizing that the law has been in effect for over 50 years and much has changed over that time, the auditors included in their recommendation that the Regional Superintendent should seek to have the mandate repealed if he believes it is outdated. 

 

 

PROPERTY RECORDS NOT UPDATED TIMELY

 

           The Regional Office of Education #4 did not record equipment purchases totaling $11,285 in the property records.  Ten percent (2 out of 20) of the items tested for equipment purchased during the year were not recorded in the property records. 

 

           The Regional Office of Education Accounting Manual requires each ROE to maintain detailed fixed asset records for both accounting and insurance purposes for fixed assets costing $500 and above.  Generally accepted accounting principles require that an inventory of all fixed assets be maintained and property records be updated to reflect all existing items as of year-end. (Finding 05-2, pages 15-16)

 

           The Regional Office accepted the recommendation stating that the Office Manager will be responsible for the inventory of all property for the Regional Office of Education and Kishwaukee Intermediate Delivery System.  Items over $500.00 will be tagged before they are put into service. The listing of the items on the inventory will reflect the delivery sequence and be kept on file with the Office Manager.

 

 

AUDITORS’ OPINION

 

     Our auditors state the Regional Office of Education #4’s financial statements as of June 30, 2005 are fairly stated in all material respects.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:KJM:ro

 

SPECIAL ASSISTANT AUDITORS

 

        Our special assistant auditors were E.C. Ortiz & Co., LLP.