REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #8

CARROLL, JO DAVIESS, AND STEPHENSON 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                          1

Repeated from last audit           0

Release Date:

March 9, 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 complete report is also available on the worldwide web at

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

SYNOPSIS

·        On the Title I – Reading First Part B SEA Funds program expenditure report submitted to ISBE, Regional Office of Education #8 included, as expenses, $3,135 that should have been included as outstanding obligations.

·        The Regional Office of Education #8 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

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

FY 2005

FY 2004

TOTAL REVENUES

$3,468,218

$3,066,797

Local Sources

$837,842

$679,882

% of Total Revenues

24.16%

22.17%

State Sources

$1,615,339

$1,702,836

% of Total Revenues

46.58%

55.52%

Federal Sources

$1,015,037

$684,079

% of Total Revenues

29.27%

22.31%

TOTAL EXPENDITURES

$3,487,736

$3,092,159

Salaries and Benefits

$1,374,516

$1,135,092

% of Total Expenditures

39.41%

36.71%

Purchased Services

$998,464

$928,393

% of Total Expenditures

28.63%

30.02%

All Other Expenditures

$1,114,756

$1,028,674

% of Total Expenditures

31.96%

33.27%

TOTAL NET ASSETS

$151,267

$197,382

INVESTMENT IN CAPITAL ASSETS

$27,210

$33,275

 
Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT 

During Audit Period:  Honorable John B. Lang  (6/1/04 – 6/27/05)

                                    Honorable Marie Stiefel (6/28/05 – 6/30/05)

Currently:  Honorable Marie Stiefel

On the Title I – Reading First Part B SEA Funds program expenditure report submitted to ISBE, Regional Office of Education #8 included, as expenses, $3,135 that should have been included as outstanding obligations.

The Regional Office of Education #8 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

INACCURATE EXPENDITURE REPORT

         The Title I – Reading First Part B SEA Funds program expenditure report submitted to State Board of Education included, as expenses, $3,135 that should have been included as outstanding obligations.  The Regional Office included July expenses in the June 30 expenditure report.  Amounts submitted on grant expenditure reports to the Illinois State Board of Education (ISBE) should be in agreement with the general ledger.  (Finding 05-1, page 11)

         The Regional Office accepted the finding and stated it will include only expenses that have already been paid in the expenditure reports submitted to ISBE. 

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 05-2, pages 12-13)

          The Regional Office accepted the recommendation and responded that it will seek a legislative solution to this and other obsolete passages. 

AUDITORS’ OPINION

            Our auditors state the Regional Office of Education #8’s financial statements as of June 30, 2005 are fairly presented in all material respects.

___________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

        Our special assistant auditors were Clifton Gunderson, LLP.