REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #9

 

CHAMPAIGN AND FORD 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†††††††††††††             3

Total last audit†††††††††††             4

Repeated from last audit†††††††††† 1

 

Release Date:

May 24, 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.auditor.illinois.gov

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

        The Regional Office of Education #9 did not comply with certain statutory administrative requirements.

 

        The Regional Office of Education #9 did not make timely payments of their telephone bills, resulting in finance charges and late fees.

        The Regional Office of Education #9 did not have adequate internal controls over certain disbursements and purchases.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

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

 

 

REGIONAL OFFICE OF EDUCATION #9

CHAMPAIGN AND FORD 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

$4,341,261

$5,901,684

Local Sources

$1,927,689

$1,509,033

% of Total Revenues

44.40%

25.57%

State Sources

$1,865,357

$1,941,239

% of Total Revenues

42.97%

32.89%

Federal Sources

$548,215

$2,451,412

% of Total Revenues

12.63%

41.54%

 

TOTAL EXPENDITURES

$3,865,935

$5,707,962

Salaries and Benefits

$2,488,773

$3,035,970

% of Total Expenditures

64.38%

53.19%

Purchased Services

$957,971

$1,744,199

% of Total Expenditures

24.78%

30.56%

All Other Expenditures

$419,191

$927,793

% of Total Expenditures

10.84%

16.25%

 

 

 

TOTAL NET ASSETS

$1,607,126

$1,131,800

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$218,170

 

$235,172

 

 

†† Percentages may not add due to rounding.

 

REGIONAL SUPERINTENDENT

During Audit Period:Honorable Judith Pacey

Currently:Honorable Judith Pacey

 

 

 


 

 

 

 

 

 

 

 


The Regional Office of Education #9 did not comply with certain statutory administrative requirements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #9 did not make timely payments of their telephone bills, resulting in finance charges and late fees.

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #9 did not have adequate internal controls over certain disbursements and purchases.

 

 

 

 

 

 

 

 

 

 

 

 

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 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 does submit an annual report each fall to the county boards in the region and holds meetings quarterly with several county board members.

 

†††††††† 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 four 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.

 

†††††††† With regards to 105 ILCS 5/3-5, the Regional Office agreed with the recommendation to attend the county board meetings in September and quarterly thereafter and present a report of all of her acts as county superintendent, including a list of all the schools visited with the dates of visitation as required by the statute.

 

 
FINANCE CHARGES AND LATE FEES

††††††

††††††† †The Regional Office of Education #9 did not make timely payments of their telephone bills, resulting in finance charges and late fees.During testing of 90 disbursements, auditors noted 4 instances where the Regional Office had not made timely payment of their telephone bill and incurred late charges.Regional Office program directors were not forwarding their telephone bills for payment in a timely manner.Internal control should exist to ensure timely payments of invoices.(Finding 06-2, page 12c)

 

††††††† †The Regional Office of Education #9 accepted the recommendation to implement internal controls to ensure that disbursements are paid in a timely manner in order to avoid late charges.

 

 

INTERNAL CONTROL OVER DISBURSEMENTS AND PURCHASES

 

†††††††† The Regional Office of Education #9 did not have adequate internal controls over certain disbursements and purchases.In two instances, the Regional Office made disbursements to vendors dated June 30, 2006, when the related vendor invoices were dated in July 2006.As a result, cash and accounts payable were both understated at June 30, 2006 by $6,738.

 

†††††††† The Regional Superintendent of Schools is responsible for establishing and maintaining an internal control system over disbursements and purchases. (Finding 06-3, page 12d)

 

†††††††† The Regional Office of Education #9 accepted the recommendation to not make disbursements until an invoice is received and to record an account payable at June 30 for the amount of the invoices.

 

 

AUDITORSí OPINION

 

††††††† †Our auditors state the Regional Office of Education #9ís 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.