REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #31

 

KANE COUNTY

 

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                  1

Total last audit                  3

Repeated from last audit   0

 

Release Date:

June 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 Office of Education #31 did not properly record certain transactions and beginning balances in the general ledger.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

REGIONAL OFFICE OF EDUCATION #31

KANE COUNTY

 

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

$5,305,505

$5,616,249

Local Sources

$783,278

$837,009

% of Total Revenues

14.76%

14.90%

State Sources

$3,000,319

$2,964,456

% of Total Revenues

56.55%

52.78%

Federal Sources

$1,521,908

$1,814,784

% of Total Revenues

28.69%

32.31%

 

TOTAL EXPENDITURES

$5,734,941

$6,658,046

Salaries and Benefits

$1,800,757

$1,728,518

% of Total Expenditures

31.40%

25.96%

Purchased Services

$2,076,821

$2,826,750

% of Total Expenditures

36.21%

42.46%

All Other Expenditures

$1,857,363

$2,102,778

% of Total Expenditures

32.39%

31.58%

 

 

 

TOTAL NET ASSETS

$2,017,702

$2,447,138

 

 

 

INVESTMENT IN CAPITAL ASSETS

$247,348

$276,283

 

             Percentages may not add due to rounding.

 

REGIONAL SUPERINTENDENT 

During Audit Period: Honorable Clem Mejia

Currently:  Honorable Douglas Johnson

 

 

 

 

 

 

 

 

 


The Regional Office of Education #31 did not properly record certain transactions and beginning balances in the general ledger.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

 

IMPROPER RECORDING OF TRANSACTIONS AND BEGINNING BALANCES IN THE GENERAL LEDGER

 

         The Regional Office of Education #31 did not properly record certain transactions and beginning balances in the general ledger.  The Illinois Administrative Code (74 Ill. Adm. Code 420.320 (c)(1) and (2)) requires that each Regional Office of Education (ROE) maintain the accounting records necessary to prepare financial statements in accordance with generally accepted accounting principles.  In addition, the Illinois Program Accounting Manual and the ROE Accounting Manual provide guidance to ensure that complete and accurate financial information is recorded and used as a basis in preparing the ROE’s financial statements.

 

         Auditors noted the following during the review of the Kane County Regional Office of Education #31’s general ledger:

 

  • The Regional Office did not properly record the beginning balances of certain assets, liabilities and fund balances.

  • A certificate of deposit amounting to $98,494 was invested under the General Fund – Regional Program Development.  Upon maturity, the investments account of the Education Fund – Youth Home was erroneously credited instead of General Fund – Regional Program Development, resulting in a negative balance in the investments account of the Education Fund – Youth Home.

  • Proceeds from maturity of a certificate of deposit amounting to $209,237 were erroneously credited to revenues instead of investments in the Regional Program Development account.  The transaction resulted in an overstatement of revenues in the General Fund during the year.

 

         The inaccurate beginning balances which were carried forward to the current fiscal year’s general ledger resulted in an unbalanced trial balance.  Numerous adjustments were required to properly record these transactions and to present financial statements in accordance with generally accepted accounting principles. 

 

         Failure to properly record transactions and account balances may result in inaccurate and incomplete financial statements.  The Regional Office converted to a new accounting system starting in FY 2007.  A review of the beginning account balances was not thoroughly performed due to the turnover in the Regional Office’s Finance Director position.  (Finding 07-1, pages 12-13)

 

         Auditors recommended that the Kane County Regional Office of Education #31 implement comprehensive review procedures to ensure that the transactions and account balances are properly recorded in accordance with generally accepted accounting principles.

 

         The Regional Office of Education #31 agreed with the recommendation.  The Regional Office noted that the new Director of Finance will make adjustments to the beginning balances in the general ledger using the corrected beginning balances as reflected in the audit report.  The ROE noted that comprehensive review procedures will be implemented fully utilizing the new finance system to ensure that future transactions are properly recorded in accordance with generally accepted accounting principles. 

 

 

AUDITORS’ OPINION

 

         Our auditors state the Regional Office of Education #31’s financial statements as of June 30, 2007 are fairly stated in all material respects.

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:KJM

 

 

SPECIAL ASSISTANT AUDITORS

 

         Our special assistant auditors were E.C. Ortiz & Co., LLP.