REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #33

KNOX COUNTY

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                          1

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 #33 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

·        An expenditure report submitted to the Illinois State Board of Education did not agree to the Regional Office of Education #33’s general ledger by $2,586.80.

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

FY 2005

FY 2004

TOTAL REVENUES

$658,655

$724,546

Local Sources

$48,425

$65,234

% of Total Revenues

7.35%

9.00%

State Sources

$540,368

$349,653

% of Total Revenues

82.04%

48.26%

Federal Sources

$69,862

$309,659

% of Total Revenues

10.61%

42.74%

TOTAL EXPENDITURES

$658,086

$732,032

Salaries and Benefits

$525,901

$599,392

% of Total Expenditures

79.91%

81.88%

Purchased Services

$47,848

$85,719

% of Total Expenditures

7.27%

11.71%

All Other Expenditures

$84,337

$46,921

% of Total Expenditures

12.82%

6.41%

TOTAL NET ASSETS

$76,664

$76,095

INVESTMENT IN CAPITAL ASSETS

$18,191

$29,967

   Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT 

During Audit Period:  Honorable Bonnie L. Harris

Currently:  Honorable Bonnie L. Harris

The Regional Office of Education #33 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

An expenditure report submitted to the Illinois State Board of Education did not agree to the Regional Office of Education #33’s general ledger by $2,586.80.

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 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 05-01, pages 15-16)

        The Regional Office accepted the recommendation to comply with the statutory requirement, noting that it will seek a legislative solution to this and other obsolete passages.    

EXPENDITURE REPORT DID NOT AGREE TO THE GENERAL LEDGER

       A comparison of the expenditure reports to the Regional Office of Education #33’s general ledger revealed an instance where the totals on the final 2004 expenditure report did not agree with the Regional Office’s books by $2,586.80, resulting in an inaccurate expenditure report. 

        Expenditure reports for education programs submitted to the Illinois State Board of Education should agree with the expenditures reported on the Regional Office of Education #33’s general ledger. (Finding 05-02, page 17)

        The auditors recommended that Regional Office personnel should compare the total expenditures to the general ledger accounts before filing the reports, as well as repay the Illinois State Board of Education $2,586.80.  The Regional Office responded it would repay the Illinois State Board of Education $2,586.80.

AUDITORS’ OPINION

        Our auditors state the Regional Office of Education #33’s financial statements as of June 30, 2005 are fairly presented in all material respects.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

        Our special assistant auditors were Ginoli & Company LTD.