REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #32

 

IROQUOIS/KANKAKEE 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†††††††††† 1

 

Release Date:

August 23, 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.auditor.illinois.gov

 

 

 

 

 

SYNOPSIS

 

 

  • The Regional Office of Education #32 did not comply with certain statutory administrative requirements.

 

  • The Regional Office of Education #32 did not timely submit reimbursement requests for the Grants to Reduce Alcohol Abuse Program.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 


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

REGIONAL OFFICE OF EDUCATION #32

IROQUOIS/KANKAKEE 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

$7,477,732

$7,549,780

Local Sources

$1,143,017

$996,458

% of Total Revenues

15.29%

13.20%

State Sources

$2,316,723

$2,251,776

% of Total Revenues

30.98%

29.83%

Federal Sources

$4,017,992

$4,301,546

% of Total Revenues

53.73%

56.98%

 

TOTAL EXPENDITURES

$7,455,389

$7,312,569

Salaries and Benefits

$3,495,939

$3,653,812

% of Total Expenditures

46.89%

49.97%

Purchased Services

$2,504,628

$2,135,863

% of Total Expenditures

33.60%

29.21%

All Other Expenditures

$1,454,822

$1,522,894

% of Total Expenditures

19.51%

20.83%

 

 

 

TOTAL NET ASSETS

$1,520,389

$1,498,046

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$0

 

$2,146

 

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

 

 

REGIONAL SUPERINTENDENT

During Audit Period:Honorable Kay Pangle

Currently:Honorable Kay Pangle

 


 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #32 did not comply with certain statutory administrative requirements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #32 did not timely submit reimbursement requests for the Grants to Reduce Alcohol Abuse Program.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 her educational service region, and if she finds any irregularities in them, to report them at once, as directed by the School Code.

 

The Regional Office of Education #32 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 Office of Education #32 performs compliance inspections for each public school in her region on a rotational basis every five years instead of annually. 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.(Finding 06-1, pages 12-14)

 

The Regional Office of Education #32 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.††

 

††††

DELAY IN SUBMISSION OF REIMBURSEMENT REQUESTS

 

The Grants to Reduce Alcohol Abuse grant agreement states that payments to the grantee will be made upon submission of the request for payment form.Funds are drawn through the Department of Educationís Grant Administration and Payment System (GAPS) based on the reimbursement request filed by the grantee.The request for payment form indicates that the current request should be for expenditures paid or to be paid within the month or quarter.

 

Sound business practice suggests that a reimbursement request be submitted timely to minimize the time between the disbursement and collection of funds, as well as to properly and timely account for the program costs.

 

During testing of payment requests for fiscal year 2006, reimbursement requests for the quarter ended December 31, 2005 and the quarter ended June 30, 2006 were submitted in February 2006 and upon grant closeout in September 2006, respectively.

 

Regional Office officials noted that staff was involved in the conversion to a new accounting system in those months when reimbursement requests were not filed.Also, the staff in charge of the drawdown was waiting for all the expenses to be recorded in the books to prevent excess payment by the grantor prior to the grant closeout.

 

Failure to submit reimbursement requests on a monthly or quarterly basis resulted in opportunity loss for the use of the available funds and possible loss of interest earned.(Finding 06-2, pages 15-16)

 

The Regional Office of Education #32 accepted the recommendation, noting that they do not expect that these conditions will occur again, as there is no anticipated plan to purchase a new accounting system.Also, a reimbursement calendar will be developed to assure timely submission of reimbursement requests.

 

†††††††

AUDITORSí OPINION

 

†††††† Our auditors state the Regional Office of Education #32ís financial statements as of June 30, 2006 are fairly presented in all material respects.

 

 

 

 


WILLIAM G. HOLLAND, Auditor General

 

WGH:JRB

 

 

 

SPECIAL ASSISTANT AUDITORS

 

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