REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #13

 

CLINTON/MARION/ WASHINGTON 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 is also available on

the worldwide web at

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

 

 

 

 

 

 

SYNOPSIS

 

 

 

         The Regional Office of Education #13 had multiple programs with excess cash balances at June 30, 2005 that had not been obligated and the balances were not refunded to the granting agencies by August 15, 2005.

 

  • The Regional Office of Education #13 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.}


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

REGIONAL OFFICE OF EDUCATION #13

CLINTON/MARION/WASHINGTON 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

$2,678,057

$2,767,740

Local sources

$472,382

$488,498

% of Total Revenues

17.64%

17.65%

State Sources

$1,487,311

$1,799,046

% of Total Revenues

55.54%

65.00%

Federal Sources

$718,364

$480,196

% of Total Revenues

26.82%

17.35%

 

TOTAL EXPENDITURES

$2,683,609

$2,611,596

Salaries and Benefits

$2,100,652

$1,959,072

% of Total Expenditures

78.28%

75.01%

Purchased Services

$445,806

$457,956

% of Total Expenditures

16.61%

17.54%

All Other Expenditures

$137,151

$194,568

% of Total Expenditures

5.11%

7.45%

 

 

 

TOTAL NET ASSETS

$1,672,703

$1,678,255

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$37,912

 

$52,390

 

 

 

††††††† Percentages may not add due to rounding.

 

REGIONAL SUPERINTENDENT

During Audit Period:Honorable Danny Garrett (Retired February 28, 2005)

††††††††††††††††††††††††††††††††††† Honorable David Erlinger (Effective March 1, 2005)

Currently:Honorable David Erlinger

 


 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #13 had multiple programs with excess cash balances at June 30, 2005 that had not been obligated and the balances were not refunded to the granting agencies by August 15, 2005.The excess cash balances, per program, ranged from $21 to $38,385.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #13 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

 

 

UNEXPENDED GRANT FUNDS AND INTEREST INCOME

 

††††††† The Regional Office of Education #13 had multiple programs with excess cash balances at June 30, 2005 that had not been obligated and the balances were not refunded to the granting agencies by August 15, 2005.The excess cash balances, per program, ranged from $21 to $38,385.

 

††††††† The Regional Office of Education #13 also did not allocate interest income to any of their Federal grant programs even though several of those programs had substantial cash balances throughout the year.

 

††††††† The Illinois Grant Funds Recovery Act (30 ILCS 705/5) requires that all grant funds that have not been expended or obligated by the end of the grant period be returned to the granting agency within 45 days after the end of the period.The Act also states that all interest earned on grant funds held by a grantee shall become part of the grant principal when earned and be treated accordingly for all purposes unless the grant agreement provides otherwise.

 

††††††† In addition, the Cash Management Improvement Act of 1990 (31 CFR part 205) requires that interest earned on federal fund balances in excess of $100 be remitted back to the federal granting agency.(Finding 05-1, page 12a).

 

The Regional Office of Education #13 accepted the auditorís recommendation and responded it will return the unspent funds to the granting agencies.

 

 

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 12b)

 

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

 

 

AUDITORSí OPINION

 

††††† Our auditors state the Regional Office of Education #13ís financial statements as of June 30, 2005 are fairly presented in all material respects.

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:JRB

 

 

SPECIAL ASSISTANT AUDITORS

 

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