REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #30

 

JACKSON AND PERRY COUNTIES

 

FINANCIAL AND COMPLIANCE AUDIT

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

 

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                      3

Total last audit                      0

Repeated from last audit       0

 

Release Date:

February 10, 2004

 

 

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 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 #30 utilizes a financial software package that does not provide the internal controls and reporting features required for proper fund accounting. In addition, the Regional Office of Education #30 did not consistently track funding sources as federal, State, or local.

  • The Regional Office of Education #30 records payroll disbursements as salaries and benefits in its general ledger; however, they report the payroll disbursements as purchased services in the Illinois State Board of Education expenditure reports.

  • The Regional Office of Education #30 did not consistently use or require the use of purchase orders or authorization forms that provide approval by a department head or the Superintendent.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

                       REGIONAL OFFICE OF EDUCATION #30

                            JACKSON AND PERRY COUNTIES

 

                        FINANCIAL AND COMPLIANCE AUDIT

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

                             For The Year Ended June 30, 2003

 

 

FY 2003

FY 2002

TOTAL REVENUES

$1,587,182

$1,711,032

Local sources

$212,387

$168,396

% of Total Revenues

13.38%

9.84%

State Sources

$1,322,046

$1,485,154

% of Total Revenues

83.30%

86.80%

Federal Sources

$52,749

$57,482

% of Total Revenues

3.32%

3.36%

 

TOTAL EXPENDITURES

$1,572,729

$1,662,733

Salaries and Benefits

$769,780

$903,875

% of Total Expenditures

48.95%

54.36%

Purchased Services

$700,559

$621,347

% of Total Expenditures

44.54%

37.37%

All Other Expenditures

$102,390

$137,511

% of Total Expenditures

6.51%

8.27%

 

 

 

COST OF PROPERTY AND EQUIPMENT

$368,892

$824,690

 

* Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Donald Brewer

Currently: Honorable Donald Brewer

 

 

 

 

 

The Regional Office of Education #30ís primary accounting system does not provide internal controls and reporting features required for proper fund accounting. The Education Fund programs are not accounted for separately by program, and the ROE does not track funding sources as federal, State, or local.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #30ís expenditure reports reflected payroll expenditures as purchased services instead of as salaries and benefits. Payroll was recorded in the ROEís general ledger as salaries and benefits.

 

 

 

 

 

 

 

 

The Regional Office of Education #30 did not consistently use or require the use of purchase orders or cancel invoices by marking "paid" when paid.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

INADEQUATE ACCOUNTING SOFTWARE AND INTERNAL CONTROL

The Regional Office of Education #30 utilizes a check book software package as their primary accounting software. The package does not provide the internal controls and reporting features required for proper fund accounting. For example, this software package does not allow the Regional Office of Education #30 to close an accounting period, which may result in transactions being posted to an incorrect period and not be detected. The activities of the Regional Office of Education #30ís Education Fund programs are also not accounted for separately by program. One general ledger account group is maintained for several programs. In addition, the Regional Office of Education #30 did not consistently track the sources of funds as local, State, or federal.

The Regional Superintendent of Schools is responsible for establishing and maintaining an internal control system to prevent errors and irregularities. In addition, the Regional Office of Education #30 is required to maintain their accounting system in accordance with the Illinois State Board of Educationís Regional Office of Education Accounting Manual. The Manual requires the Regional Offices of Education to track funding sources as federal, State, or local. (Finding 03-1, pages 12 and 13)

The Regional Office of Education #30 accepted the recommendation to improve the accounting software. The Regional Office of Education #30 stated they began using a different accounting software package in July 2003. The Regional Office of Education also stated they began implementing the Regional Office of Education Accounting Manualís accounting numbering system in August 2003.

INACCURATE REPORTING OF EXPENDITURES

The Jackson County Treasurer processes the Regional Office of Education #30ís payroll. The Regional Office of Education #30 records the payroll disbursements as salaries and benefits in the general ledger, however, reports the expenditures as purchased services on the following programís expenditure reports:

  • Truants Alternative/Optional Education;
  • McKinney Education for Homeless Children;
  • Administratorís Academy;
  • ROE/ISC Operations; and
  • ROE/ISC Technology.

Expenditure reports should be prepared from the accounting records to accurately reflect the functional expenses of the program (Finding 03-2, page 14).

The Regional Office of Education #30 accepted the recommendtion to complete expenditure reports using the proper classification of expenditures incurred and to have the expenditure reports supported by the expenditure classification reflected in the general ledger.

 

INTERNAL CONTROL OVER DISBURSEMENTS AND PURCHASES

The Regional Office of Education #30 did not consistently:

  • Use or require the use of purchase orders or authorization forms that provide approval by a department head or the Superintendent and reflect the source and the availability of funds.
  • Cancel invoices by marking "paid" when paid.

The Regional Superintendent of Schools is responsible for establishing and maintaining a system of internal controls to prevent errors and irregularities (Finding 03-3, page 15).

The Regional Office of Education #30 accepted the recommendation to ensure that purchase orders or authorization forms accompany all supporting disbursement documentation, and invoices are being marked "paid" when paid.

 

AUDITORSí OPINION

Our auditors state the Regional Office of Education #30ís financial statements as of June 30, 2003 are fairly presented in all material respects.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KJM:ro

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Kemper CPA Group LLP.