Illinois Regional Office of Education #14 2002 Audit

REPORT DIGEST

REGIONAL OFFICE OF EDUCATION # 14

SUBURBAN COOK COUNTY

FINANCIAL AUDIT

For the Year Ended:
June 30, 2002

Summary of Findings:

Total this audit 6
Total last audit 0
Repeated from last audit 0

Release Date:
March 11, 2003

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
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

SYNOPSIS

The Regional Office of Education # 14’s financial statements did not include a $9,137 Certificate of Deposit, and Cash and Fund Balance accounts were over or understated by $11,210.

The Regional Office of Education # 14 does not reconcile teacher certification receipts per the general ledger to the certification application or record thereof. In addition, the Regional Office does not create a budget for teacher certification receipts, which are one of the ROE’s largest funding sources.

The Regional Office of Education # 14’s current fixed asset list does not include cost, date of purchase/disposition, and location of fixed assets.

{Expenditures and Activity Measures are summarized on the reverse page.}

REGIONAL OFFICE OF EDUCATION # 14
SUBURBAN COOK COUNTY
FINANCIAL AUDIT
For The Year Ended June 30, 2002

	FY 2002	FY 2001
TOTAL REVENUES	^1$1,506,282	$1,499,361
Local sources	$523,111	$732,665
% of Total Revenues	34.73%	48.87%
State Sources	^1$977,171	$760,696
% of Total Revenues	64.87%	50.73%
Federal Sources	$6,000	$6,000
% of Total Revenues	.40%	.40%
TOTAL EXPENDITURES	^1$1,596,042	$1,475,995
Salaries and Benefits	^1$659,058	$332,738
% of Total Expenditures	41.29%	22.54%
Purchased Services	$572,987	$552,597
% of Total Expenditures	35.90%	37.44%
All Other Expenditures	$363,997	$590,660
% of Total Expenditures	22.81%	40.02%
COST OF PROPERTY AND EQUIPMENT	$84,855	$79,221
Note: Fiscal Year 2001 data was obtained from audits of ROEs conducted under the direction of the Illinois State Board of Education. ¹ Fiscal Year 2002 amounts include on-behalf payments ($224,589). On-behalf payments were not included in Fiscal Year 2001. * Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Joseph Kaczanowski
Currently: Honorable Joseph Kaczanowski

The Regional Office of Education # 14’s financial statements did not include a $9,137 Certificate of Deposit, and Cash and Fund Balance accounts were over or understated by $11,210.

The Regional Office of Education # 14 does not reconcile teacher certification receipts per the general ledger to the certification application or record thereof. In addition, the Regional Office does not create a budget for teacher certification receipts, which are one of the ROE’s largest funding sources.

The Regional Office of Education # 14’s current fixed asset list does not include cost, date of purchase/disposition, and location of fixed assets.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

INACCURATE FINANCIAL RECORDS

The Regional Office of Education # 14’s financial statements did not include a $9,137 Certificate of Deposit. In addition, the Regional Office of Education # 14’s Cash and Fund Balance accounts were under or overstated by $11,210. The under or overstatement was due to voided checks that were cancelled incorrectly in the general ledger.

The Illinois Administrative Code requires ROEs to maintain accurate financial records. (Finding 02-1, pages 10 and 11)

Regional Office of Education # 14 officials accepted the auditor’s recommendation, stating they will include the certificate of deposit on its financial statements and correct the Cash and Fund Balance account balances.

CONTROLS OVER TEACHER CERTIFICATION RECEIPTS

The Regional Office of Education # 14 does not reconcile teacher certification receipts per the general ledger to the certification application or record thereof. Without reconciliation, the completeness of certification receipts cannot be ascertained and undeposited receipts could go undetected.

In addition, the Regional Office does not create a budget for teacher certification receipts, which are one of the ROE’s largest funding sources. A budget would increase management’s ability to monitor the use of certification receipts. (Finding 02-2, pages 12 and 13)

The Regional Office of Education # 14’s management accepted the recommendation to modify procedures related to the handling of teacher certification receipts. The Regional Office, however, did not agree with the recommendation to create an annual budget for certification receipts, noting that the accounting manual prepared by the Illinois State Board of Education (ISBE) does not require a budget for those funds. The auditors commented that budgets are an integral part of internal control and can help monitor use of funds.

INCOMPLETE FIXED ASSET SUB-LEDGER

The Regional Office of Education # 14’s current fixed asset list does not include cost, date of purchase/ disposition, and location of fixed assets.

The Illinois Administrative Code requires ROEs to maintain an inventory of equipment (using forms provided by ISBE) acquired with funds received directly from the State. (Finding 02-5, pages 18 and 19)

The Regional Office of Education # 14 accepted the recommendation to maintain the required fixed asset records. The Regional Office of Education #14 stated they would decide on a dollar cut-off for a fixed asset and maintain a list of fixed assets that includes cost, date of purchase/disposition, and location.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education # 14’s financial statements as of June 30, 2002 are fairly presented in all material respects.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Prado & Renteria, Certified Public Accountants.