REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #20

 

EDWARDS/GALLATIN/ HARDIN/POPE/SALINE/ WABASH/WAYNE/WHITE COUNTIES

 

FINANCIAL AUDIT

(In Accordance with the
Single Audit Act and OMB Circular A-133)

 

For the Year Ended:

June 30, 2007

 

Summary of Findings:

 

Total this audit††††††††††   ††† 2

Total last audit††††††††††††   † 1

Repeated from last audit  1

 

Release Date:

July 24, 2008

 

 

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 Superintendent did not present at the September county board meeting, and as nearly quarterly thereafter, a report of all acts.

 

        The Regional Office of Education #20 had an amount on deposit at a financial institution that exceeded the federally insured limit and amount pledged as collateral by $7,494.

 

 

 

 

 

 

 

 

 

 

 

 

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


 

REGIONAL OFFICE OF EDUCATION #20

EDWARDS, GALLATIN, HARDIN, POPE, SALINE, WABASH, WAYNE AND

WHITE COUNTIES

 

 

FINANCIAL AUDIT

(In Accordance with the Single Audit Act and OMB Circular A-133)

For The Year Ended June 30, 2007

 

 

FY 2007

FY 2006

TOTAL REVENUES

$2,674,057

$2,522,050

Local Sources

$445,077

$491,857

% of Total Revenues

16.64%

19.50%

State Sources

$1,554,666

$826,304

% of Total Revenues

58.14%

32.76%

Federal Sources

$674,314

$1,203,889

% of Total Revenues

25.22%

47.73%

 

TOTAL EXPENDITURES

$2,685,606

$2,525,845

Salaries and Benefits

$1,728,486

$1,622,067

% of Total Expenditures

64.36%

64.22%

Purchased Services

$788,176

$707,694

% of Total Expenditures

29.35%

28.02%

All Other Expenditures

$168,944

$196,084

% of Total Expenditures

6.29%

7.76%

 

 

 

TOTAL NET ASSETS

$526,090

$537,639

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$68,629

 

$83,812

 

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

 

REGIONAL SUPERINTENDENT

During Audit Period:Honorable Linda Blackman

Currently:Honorable Lawrence Fillingim

 

 


 

 

 

 

 

 

 

 


The Regional Superintendent did not present at the September county board meeting, and as nearly quarterly thereafter, a report of all acts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #20 had an amount on deposit at a financial institution that exceeded the federally insured limit and amount pledged as collateral by $7,494.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

 

CONTROLS OVER COMPLIANCE WITH LAWS AND REGULATIONS

 

†††††††† Illinois School Code (105 ILCS 5/3-5) 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 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 Superintendent did not present at the September county board meeting, and as nearly quarterly thereafter, a report of all acts including a list of all the schools visited and dates of visitation.The Regional Superintendent did provide a brochure of the responsibilities of the Regional Superintendent to the county boards annually in August or September when the proposed budget is submitted to the counties for the coming year.(Finding 07-01, page 13)

 

†††††††† The Regional Office responded that having been made aware of the previous administration not complying with this regulation, it is the Regional Superintendentís intent to start as soon as possible to comply with the quarterly reports to the various county boards.The portion of this School Code that refers to mandating school visits each year under Sec. 3-14.5 has been repealed this year.However, the Regional Superintendent will still make every effort to visit the schools in his district if at no other time but to do his compliance visits.

 

 

CASH COLLATERAL

 

†††††††† The Public Funds Deposit Act (30 ILCS 225/1) gives the authorization for deposits in excess of the federally insured limit to be covered by pledged collateral held by the financial institutionsí trust departments in the Regional Office of Education #20ís name.In addition, prudent business practice requires that all deposits held by financial institutions for the Regional Office of Education #20 be adequately covered by depository insurance or collateral.

 

†††††††† The Regional Office of Education #20 had an amount on deposit at a financial institution that exceeded the federally insured limit and amount pledged as collateral by $7,494, at June 30, 2007.Uninsured deposits could cause a loss to the Regional Office of Education #20 if the bank failed.

 

†††††††† On June 27, 2007, two deposits totaling $8,561 were made to the Regional Office of Education #20ís checking account.While performing fiscal year-end responsibilities, Regional Office staff did not check the account balance total at the financial institution with the unsecured amount.The Regional Office of Education #20 has not asked for pledged securities at that particular financial institution because it intended to keep the balance under $100,000.(Finding 07-02, page 14)

 

†††††††† The auditors recommended that the Regional Office of Education #20 should periodically monitor the amount of collateral held on deposits to ensure that an adequate amount is maintained.The Regional Office of Education #20 should also seek an agreement with the bank to automatically pledge securities for any deposit amounts in excess of the FDIC amount.

 

†††††††† The Regional Office of Education #20 responded that management agrees with the finding and as soon as the amount in excess of $100,000 during the bank reconciliations was discovered, it was promptly corrected.

 

 

AUDITORSí OPINION

 

†††††††† Our auditors state the Regional Office of Education #20ís financial statements as of June 30, 2007 are fairly presented in all material respects.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JRB

 

 

SPECIAL ASSISTANT AUDITORS

 

†††††††† Our special assistant auditors were West & Company, LLC.