REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #28

 

BUREAU/HENRY/STARK COUNTIES

 

FINANCIAL AUDIT

(In Accordance with the

Single Audit Act and OMB Circular A-133)

 

For the Year Ended:

June 30, 2008

 

Summary of Findings:

 

Total this audit                  1

Total last audit                  2

Repeated from last audit   1

 

 

Release Date:

February 26, 2009

 

 

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 #28 did not have sufficient internal controls over the financial reporting process.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

REGIONAL OFFICE OF EDUCATION #28

BUREAU/HENRY/STARK COUNTIES

 

 

FINANCIAL AUDIT

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

For The Year Ended June 30, 2008

 

 

 

FY 2008

FY 2007

TOTAL REVENUES

$2,685,369

$2,183,343

Local Sources

$989,713

$589,024

% of Total Revenues

36.86%

26.98%

State Sources

$907,619

$950,963

% of Total Revenues

33.80%

43.56%

Federal Sources

$788,037

$643,356

% of Total Revenues

29.35%

29.47%

 

TOTAL EXPENDITURES

$2,661,814

$2,180,223

Salaries and Benefits

$943,605

$652,819

% of Total Expenditures

35.45%

29.94%

Purchased Services

$253,485

$265,076

% of Total Expenditures

9.52%

12.16%

All Other Expenditures

$1,464,724

$1,262,328

% of Total Expenditures

55.03%

57.90%

 

TOTAL NET ASSETS

$321,610

$298,055

 

INVESTMENT IN CAPITAL ASSETS

$105,985

$107,687

 

Percentages may not add due to rounding.

 

 

REGIONAL SUPERINTENDENT 

During Audit Period:  Honorable Bruce Dennison

Currently:  Honorable Bruce Dennison

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #28 did not have sufficient internal controls over the financial reporting process.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

 

Controls Over Financial Statement Preparation

 

         The Regional Office of Education #28 is required to maintain a system of controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP).  Regional Office internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge and expertise to prepare and/or thoroughly review GAAP financial statements to ensure that they are free of material misstatements and include all disclosures as required by the Governmental Accounting Standards Board (GASB).

 

         The Regional Office of Education #28 did not have sufficient internal controls over the financial reporting process.  The Regional Office maintains their accounting records on the accrual basis of accounting for disbursements and the cash basis of accounting for receipts.  While the Regional Office maintains controls over the processing of most accounting transactions, there are not sufficient controls over the preparation of the GAAP based financial statements for management or employees in the normal course of performing their assigned functions to prevent or detect financial statement misstatements and disclosure omissions in a timely manner.

 

         In their review of the Regional Office’s accounting records, auditors noted the following:

 

  • The Regional Office did not have adequate controls over the maintenance of complete records of accounts receivable and deferred revenues. 

 

  • Numerous adjustments were required to present financial statements in accordance with generally accepted accounting principles. 

 

         According to Regional Office officials, they did not have adequate funding to hire and/or train their accounting personnel in order to comply with these requirements.  (Finding 08-1, page 15)

 

         The auditors recommended that, as part of its internal control over the preparation of its financial statements, including disclosures, the Regional Office of Education #28 should implement a comprehensive preparation and/or review procedure to ensure that the financial statements, including note disclosures, are complete and accurate.  Such procedures should be performed by a properly trained individual(s) possessing a thorough understanding of applicable generally accepted accounting principles, GASB pronouncements, and knowledge of the Regional Office of Education’s activities and operations.

 

         The Regional Office of Education #28 responded that it will continue to maintain its accounting records on the accrual basis of accounting for disbursements and the cash basis of accounting for receipts, as it historically has done.  The Regional Office noted that, at the present time, the additional cost of hiring and training additional staff or contracting the service outweighs the benefits.  The Regional Superintendent and Assistant Regional Superintendent will review financial transactions and financial reports on a periodic basis.  They noted that the Regional Office will review, approve, and accept responsibility for the financial statements and related items.  If additional resources are made available through the State of Illinois, the Regional Office will consider seeking the services of an accountant to review the financial statements and related disclosures for completeness and accuracy. 

 

AUDITORS’ OPINION

 

         Our auditors state the Regional Office of Education #28’s financial statements as of June 30, 2008 are fairly presented in all material respects.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:KJM

 

 

SPECIAL ASSISTANT AUDITORS

 

         Our special assistant auditors were Ginoli & Company Ltd.