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, 2006

 

Summary of Findings:

 

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

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

Repeated from last audit†††††††††† 2

 

Release Date:

April 17, 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 Digest are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

        The Regional Office of Education #33 did not comply with certain statutory administrative requirements.

        Two expenditure reports submitted to the granting agency did not agree to the Regional Office of Education #33ís general ledger by $12,914.Additionally, there were two instances where the correct amounts were reported on the expenditure reports but were coded incorrectly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

†††††††

 

 

 

 

 

 

 

 

 

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

 


 

 

 

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

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, 2006

 

 

FY 2006

FY 2005

TOTAL REVENUES

$706,031

$658,655

Local Sources

$49,105

$48,425

% of Total Revenues

6.96%

7.35%

State Sources

$611,191

$540,368

% of Total Revenues

86.57%

82.04%

Federal Sources

$45,735

$69,862

% of Total Revenues

6.48%

10.61%

 

TOTAL EXPENDITURES

$720,239

$658,086

Salaries and Benefits

$578,471

$525,901

% of Total Expenditures

80.32%

79.91%

Purchased Services

$51,021

$47,848

% of Total Expenditures

7.08%

7.27%

All Other Expenditures

$90,747

$84,337

% of Total Expenditures

12.60%

12.82%

 

 

 

TOTAL NET ASSETS

$62,456

$76,664

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$11,203

 

$18,191

 


†† 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 comply with certain statutory administrative requirements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Two expenditure reports submitted to the granting agency did not agree to the Regional Office of Education #33ís general ledger by $12,914.Additionally, there were two instances where the correct amounts were reported on the expenditure reports but were coded incorrectly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 #33 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 her region on a rotational basis every two 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.

 

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 her 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 her acts including a list of all the schools visited and dates of visitation.The Regional Superintendent does submit an annual report to the board and sends quarterly newsletters to each board member.(Finding 06-1, pages 15-17)

 

The Regional Office of Education #33 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 Superintendent responded that appropriate steps have been taken to rectify this noncompliance.†††

 

 

EXPENDITURE REPORTS DID NOT AGREE TO THE GENERAL LEDGER

 

Two expenditure reports submitted to the granting agency did not agree to the Regional Office of Education #33ís general ledger by $12,914.Additionally, there were two instances where the correct amounts were reported on the expenditure reports but were coded incorrectly.

Expenditure reports for education programs submitted to the granting agency should agree with the expenditures reported on the Regional Office of Education #33ís general ledger. (Finding 06-02, pages 18-19)

 

The Regional Office of Education #33 accepted the auditorsí recommendation and plans to more thoroughly compare expenditure reports to the general ledger before filing them.

 

 

AUDITORSí OPINION

 

Our auditors state the Regional Office of Education #33ís 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 Ginoli & Company LTD.