REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #30

 

JACKSON AND PERRY COUNTIES

 

FINANCIAL AUDIT

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

 

For the Year Ended:

June 30, 2005

 

Summary of Findings:

 

Total this audit†††††††††††††             2

Total last audit† †††††††††††             0

Repeated from last audit†††††††††† 0

 

Release Date:

March 2, 2006

 

 

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 is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

 

 

SYNOPSIS

 

        The Regional Office of Education #30 did not comply with certain statutory administrative requirements.

        The Regional Office of Education #30 had deficiencies in internal controls over disbursements.

 

 

 

 

 

 

 

†††††††

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 


 

†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

REGIONAL OFFICE OF EDUCATION #30

JACKSON AND PERRY COUNTIES

 

 

FINANCIAL AUDIT

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

For The Year Ended June 30, 2005

 

 

FY 2005

FY 2004

TOTAL REVENUES

$1,179,044

$1,145,105

Local Sources

$201,949

$197,765

% of Total Revenues

17.13%

17.27%

State Sources

$733,818

$652,850

% of Total Revenues

62.24%

57.01%

Federal Sources

$243,277

$294,490

% of Total Revenues

20.63%

25.72%

 

TOTAL EXPENDITURES

$1,220,061

$1,132,367

Salaries and Benefits

$759,424

$708,538

% of Total Expenditures

62.24%

62.57%

Purchased Services

$257,104

$186,993

% of Total Expenditures

21.07%

16.51%

All Other Expenditures

$203,533

$236,836

% of Total Expenditures

16.68%

20.92%

 

 

 

TOTAL NET ASSETS

$522,761

$563,778

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$106,352

 

$119,562

 

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

 

REGIONAL SUPERINTENDENT

During Audit Period:Honorable John Hawkins (7/1/04 through 11/30/04)

††††††††††††††††††††††††††††††††††† Honorable Robert Koehn (12/1/04 through 6/30/05)

Currently:Honorable Robert Koehn


 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #30 did not comply with certain statutory administrative requirements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #30 had deficiencies in internal controls over disbursements and procurements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

CONTROLS OVER COMPLIANCE WITH LAWS AND REGULATIONS

 

††††††† The Regional Office of Education #30 did not comply with certain statutory administrative requirements.†††

The Illinois School Code (105 ILCS 5/3-14.21) requires the Regional Superintendent to inspect and survey all public schools under his supervision and notify the board of education, or the trustees of schools in a district with trustees, in writing before July 30, whether or not the several schools in their district have been kept as required by law.The Regional Superintendent is to report his or her findings to the State Board of Education on forms provided by the State Board of Education.

 

††††††† The Regional Office did not submit the required Annual Inspection Report, as provided by the Illinois State Board of Education, for their fiscal year 2004 inspections prior to July 30, 2005. Regional Office officials stated they were unaware of the date the reports were required to be submitted.

 

††††††† The Illinois School Code (105 ILCS 5/3-14.11) also 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. (Finding 05-1, pages 12a-12b)

 

††††††† The Regional Office of Education #30 accepted the recommendation to submit the required inspection report prior to July 30.The Regional Office also stated it would request that the General Assembly delete the requirements of 105 ILCS 5/14.11 and other obsolete sections from the statutes.

 

 

INADEQUATE INTERNAL CONTROLS OVER DISBURSEMENT PROCESS

 

††††††† The Regional Superintendent of Schools is responsible for establishing and maintaining an internal control system to prevent errors and fraud.

 

†††††††† In the testing of 125 disbursements, the following was noted:

 

        Invoices were not canceled after payment in 4 instances.

        Mathematical errors were noted on the supporting documentation in 3 instances.

        An authorization form was not signed by a program director or Superintendent in 1 instance.

        An account allocation on the check and purchase order did not match the general ledger detail in 1 instance.

        A contract labor agreement did not specify the amount of fee to be paid for the service rendered in 1 instance.

        An over-limit fee of $20 was paid on a credit card disbursement. (Finding 05-2, pages 12c-12d)

 

††††††† The Regional Office accepted the auditorís recommendation to strengthen its internal controls over the disbursement process.

 

AUDITORSí OPINION

 

††††††† Our auditors state the Regional Office of Education #30ís financial statements as of June 30, 2005 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.