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, 2006

 

Summary of Findings:

 

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

Total last audit†††††††††††             2

Repeated from last audit†††††††††† 2

 

Release Date:

 March 8, 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 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.

 

 

 

 

 

 

 

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††††††††††††† {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, 2006

 

 

FY 2006

FY 2005

TOTAL REVENUES

$1,261,348

$1,179,044

Local Sources

$230,862

$201,949

% of Total Revenues

18.30%

17.13%

State Sources

$767,924

$733,818

% of Total Revenues

60.88%

62.24%

Federal Sources

$262,562

$243,277

% of Total Revenues

20.82%

20.63%

 

TOTAL EXPENDITURES

$1,272,198

$1,220,061

Salaries and Benefits

$806,799

$759,424

% of Total Expenditures

63.42%

62.24%

Purchased Services

$298,866

$257,104

% of Total Expenditures

23.49%

21.07%

All Other Expenditures

$166,533

$203,533

% of Total Expenditures

13.09%

16.68%

 

 

 

TOTAL NET ASSETS

$511,911

$522,761

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$96,152

 

$106,352

 

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

 

REGIONAL SUPERINTENDENT

During Audit Period:Honorable Robert Koehn

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 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 5/3-14.5) also 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 annually.However, 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.

 

††††††† Finally, the 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 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.The Regional Superintendent was also unaware of the specific details required to be provided at the meetings.(Finding 06-1, pages 12a-12b)

 

††††††† 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 to attend the quarterly county board meetings and report the required information.

 

 

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 95 disbursements, the following was noted:

 

        Mathematical errors were noted on the supporting documentation in one instance.

        The Regional Office paid sales tax to a vendor in one instance.

        No supporting documentation to verify actual meal expenditures in four instances. ††

        Invoice was not canceled when paid to avoid duplicate payment in one instance. (Finding 06-2, page 12c)

 

††††††† The Regional Office accepted the auditorís recommendation to implement internal controls to ensure there is proper review of the original invoices and other supporting documentation to prevent unallowable, duplicate, or incorrect amounts from being paid.

 

AUDITORSí OPINION

 

††††††† Our auditors state the Regional Office of Education #30ís 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 Kemper CPA Group, LLP.