REGIONAL OFFICE OF EDUCATION #34:
FINANCIAL AUDIT (In Accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended June 30, 2009
Summary of Findings:
Total this audit: 1
Total last audit: 1
Repeated from last audit: 1
Release Date: November 18, 2010
State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL
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• During their review of Regional Office of Education #34’s expenditures, auditors noted one of eighteen (6%) program consultants did not have a contract on file.
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
INADEQUATE CONTROLS OVER PURCHASED SERVICES EXPENDITURES
During their review of expenditures, auditors noted one of eighteen (6%) program consultants did not have a contract on file. The amount paid to the consultant totaled $35,832 and was paid out of Staff Development Workshop funds ($12,938) and ROE/ISC Local funds ($22,894).
Good internal controls require that all contracts be executed prior to services being performed and payments being made to contractors. Failure to execute contracts with independent contractors may result in services being provided that are inconsistent with program goals and activities, inadequate protection of the Regional Office’s interests, and the incurring of unallowable costs.
Regional Office management stated that the services and amount of the contractual services to be provided were the same as the prior year agreement. As a result, the ROE #34 did not have on file a written contract with the independent consultant. (Finding 09-1, page 12)
The auditors recommended that the Lake County Regional Office of Education #34 establish procedures to ensure that all program costs are sufficiently documented and adequately supported. Auditors noted that all consultant agreements should be supported by a written contract with detailed scope of services and rates of compensation.
The Lake County Regional Office of Education #34 agreed with the finding. The ROE noted that contracts for said vendor will be obtained for FY 2009 and all future contracts will be executed.
Our auditors state the Regional Office of Education #34’s financial statements as of June 30, 2009 are fairly presented in all material respects.
WILLIAM G. HOLLAND, Auditor General
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors were James Williams & Company, LLC.