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, 2006

Summary of Findings:

Total this audit                          1

Total last audit                          2

Repeated from last audit           1

Release Date:

May 10, 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 complete report is also available on the worldwide web at

http://www.auditor.illinois.gov

SYNOPSIS

·        The Regional Office of Education #8 did not comply with certain statutory administrative requirements.

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

FY 2006

FY 2005

TOTAL REVENUES

$3,415,537

$3,468,218

Local Sources

$733,688

$837,842

% of Total Revenues

21.48%

24.16%

State Sources

$2,049,866

$1,615,339

% of Total Revenues

60.02%

46.58%

Federal Sources

$631,983

$1,015,037

% of Total Revenues

18.50%

29.27%

TOTAL EXPENDITURES

$3,391,342

$3,487,736

Salaries and Benefits

$1,322,439

$1,374,516

% of Total Expenditures

38.99%

39.41%

Purchased Services

$989,413

$998,464

% of Total Expenditures

29.17%

28.63%

All Other Expenditures

$1,079,490

$1,114,756

% of Total Expenditures

31.83%

31.96%

TOTAL NET ASSETS

$175,462

$151,267

INVESTMENT IN CAPITAL ASSETS

$19,435

$27,210

 
Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT 

During Audit Period:  Honorable Marie Stiefel

Currently:  Honorable Marie Stiefel

The Regional Office of Education #8 did not comply with certain statutory administrative requirements.

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 her educational service region, and if she 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.  For example, the Regional Superintendent has been examining school district financial statements and audit reports on an annual basis. This mandate has existed in its current form since at least 1953.

         The Illinois School Code (105 ILCS 5/3-5) also requires the Regional Superintendent to present under oath or affirmation to the county board at its meeting in September and as nearly quarterly thereafter as it may have regular or special meetings, a report of all her acts as county superintendent, including a list of all the schools visited with the dates of visitation.  This mandate has existed in its current form since at least 1953.

         The Regional Office did not present at the September county board meeting, and as nearly quarterly thereafter, a report of all her acts including a list of all the schools visited and dates of visitation.  The Regional Superintendent sends an affirmed report for the September meeting only.  

         Finally, the Illinois School Code (105 ILCS 5/3-14.5) 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 her 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 11-13) 

         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 district’s 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.  

         The Regional Office also noted that with regards to 105 ILCS 5/3-14.5, a Health/Life Safety inspection is completed for each school building in the region annually.  The Regional Office also conducts compliance visits for the State Board of Education that include noting methods of instruction and branches taught as well as examining district policies to ensure they are in compliance with the Illinois School Code and Illinois Administrative Code.   

         With regards to 105 ILCS 5/3-5, the Regional Office stated it currently submits an annual report the three county boards.  However, to comply with the statute, the Regional Superintendent will present the affirmed report on a quarterly basis.

AUDITORS’ OPINION

         Our auditors state the Regional Office of Education #8’s financial statements as of June 30, 2006 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.