REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #14

 

SUBURBAN COOK COUNTY

 

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†††††††††††††             2

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 Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

 

 

SYNOPSIS

 

 

 

        The Regional Office of Education #14 did not comply with certain statutory administrative requirements.

        The Regional Office of Education #14ís total liabilities exceeded its total net assets by $259,188.If the Regional Office continues to operate at the current level without obtaining additional funding or decreasing expenditures, its ability to continue as a going concern may be questioned in future years.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 


                                                                                   

REGIONAL OFFICE OF EDUCATION #14

SUBURBAN COOK COUNTY

 

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

$1,700,924

$1,741,137

Local Sources

$672,501

$714,158

% of Total Revenues

39.54%

41.02%

State Sources

$969,596

$1,026,979

% of Total Revenues

57.00%

58.98%

Federal Sources

$58,827

$0

% of Total Revenues

3.46%

0%

 

TOTAL EXPENDITURES

$2,097,525

$1,942,920

Salaries and Benefits

$878,502

$836,628

% of Total Expenditures

41.88%

43.06%

Purchased Services

$524,398

$328,680

% of Total Expenditures

25.00%

16.92%

All Other Expenditures

$694,625

$777,612

% of Total Expenditures

33.12%

40.02%

 

 

 

TOTAL NET ASSETS

($259,188)

$137,413

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$20,512

 

$31,259

 

 

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

 

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Robert Ingraffia

Currently:Honorable Robert Ingraffia

 

 


 

 

 

 

 

 

 

The Regional Office of Education #14 did not comply with certain statutory administrative requirements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #14ís total liabilities exceeded its total net assets by $259,188.If the Regional Office continues to operate at the current level without obtaining additional funding or decreasing expenditures, its ability to continue as a going concern may be questioned in future years.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 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.

 

†††††††† 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 his 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 his acts including a list of all the schools visited and dates of visitation.

 

†††††††† 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 his 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 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 and will request a meeting with the Cook County Board of Commissioners beginning in September 2007 and quarterly thereafter to report the required information.

 

 

CONTINUATION AS A GOING CONCERN

 

††††††† †The Regional Office of Education #14ís liabilities exceeded its total net assets by $259,188.On a cash basis of accounting, the Regional Office has sufficient financial

resources to operate through fiscal year 2007.However, if the Regional Office continues to operate at the current level without obtaining additional funding or decreasing expenditures, its ability to continue as a going concern may be questioned in future years.

†††††† †All audits conducted in accordance with generally accepted auditing standards require the auditor to evaluate the entityís financial position and contemplate the continuation of the entity as a going concern.

 

†††††††† According to Regional Office officials, the Regional Office of Education #14 has experienced a significant loss of funding in recent years.Along with this decreased funding, there has also been an increase in the Officeís responsibilities regarding the teacher certification program, causing the Office to hire additional staff and thus increasing expenditures.Regional Office officials also stated that the Regional Office of Education #14 is the only Regional Office of Education in the State that does not receive funding from its respective county. (Finding 6-02, page 14)

 

†††††††† The Regional Office of Education agreed with the finding and will attempt to lower expenditures as well as seek out additional funding sources in order to continue operations.The Regional Office noted that it has unsuccessfully attempted to secure funding from Cook County each year for over 10 years.

 

†††††††††††††††††††††††††††† AUDITORSí OPINION

 

†††††††† Our auditors state the Regional Office of Education #14ís 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 Clifton Gunderson, LLP.