REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #34

 

LAKE COUNTY

 

FINANCIAL AUDIT

(In Accordance with the

Single Audit Act and

OMB Circular A-133)

For the Year Ended:

June 30, 2008

 

Summary of Findings:

 

Total this audit†††††††††††††††††††††† 1

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

Repeated from last audit††††††† 0

 

Release Date:

July 23, 2009

 

 

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 Lake County Regional Office of Education #34 paid $55,154 to one vendor for services provided without having executed a contract that specified the scope of services to be provided or the amount to be paid.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

REGIONAL OFFICE OF EDUCATION #34

LAKE COUNTY

 

FINANCIAL AUDIT

(In Accordance with the Single Audit Act and OMB Circular A-133)

For The Year Ended June 30, 2008

 

 

 

FY 2008

FY 2007

TOTAL REVENUES

$6,069,731

$5,626,220

Local Sources

$1,725,886

$1,863,784

% of Total Revenues

28.43%

33.13%

State Sources

$3,494,066

$2,784,572

% of Total Revenues

57.57%

49.49%

Federal Sources

$849,779

$977,864

% of Total Revenues

14.00%

17.38%

 

TOTAL EXPENDITURES

$5,887,905

$5,634,651

Salaries and Benefits

$2,705,414

$2,927,292

% of Total Expenditures

45.95%

51.95%

Purchased Services

$1,674,866

$1,761,991

% of Total Expenditures

28.45%

31.27%

All Other Expenditures

$1,507,625

$945,368

% of Total Expenditures

25.61%

16.78%

 

TOTAL NET ASSETS

$2,303,036

$2,121,210

 

INVESTMENT IN CAPITAL ASSETS

$12,266

$14,823

 

Percentages may not add due to rounding.

 

 

REGIONAL SUPERINTENDENT

During Audit Period:Honorable Roycealee Wood

Currently:Honorable Roycealee Wood

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Lake County Regional Office of Education #34 paid $55,154 to one vendor for services provided without having executed a contract that specified the scope of services to be provided or the amount to be paid.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

 

INADEQUATE CONTROLS OVER PURCHASED SERVICES EXPENDITURES

 

†††††††† The Lake County Regional Office of Education #34 paid $55,154 to one vendor for services provided without having executed a contract that specified the scope of services to be provided or the amount to be paid.Good internal controls require that all contracts be executed prior to services being performed and payments being made.

††††††††

†††††††† Auditorsí review of expenditures disclosed that ROE #34 did not maintain adequate controls over purchased services expenditures.The Regional Office failed to execute a written contract for one of eight (12.5%) program consultants which should have documented the scope and description of services to be provided to the ROE as well as the schedule of fees to be paid.The related purchased services expenditures amounted to $55,154.These were paid out of the Pre-school Monitoring Grant ($40,259), Reading Recovery Grant ($8,894), and McKinney Education for Homeless Children ($6,001).

 

††† †††††Failure to execute contracts with independent contractors may result in services being provided that are inconsistent with program goals and activities, inadequate protection of Regional Office interests, and the incurring of unallowable costs.In addition, inadequate supporting documents do not provide sufficient evidence for the validity and accuracy of the payments processed, thereby increasing the risk that unauthorized disbursements may be made.

 

†††††††† According to Regional Office management, the ROE overlooked the requirement to execute a written contract with the independent consultant.(Finding 08-1, pages 12 and 13)

 

†††††††† The auditors recommended that the Lake County Regional Office of Education #34 should ensure that all costs charged to the different programs are sufficiently documented and adequately supported.Auditors noted that the Regional Office should require all consultant agreements to be supported by a written contract with detailed scope of services and rates of compensation.

 

†††††††† The Regional Office of Education #34 agreed with the finding.The ROE noted that contracts for said vendor have been developed, issued, and signed.

 

 

AUDITORSí OPINION

 

†††††††† Our auditors state the Regional Office of Education #34ís financial statements as of June 30, 2008 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 & Company, LLP.