REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #38

 

LOGAN/MASON/MENARD COUNTIES

 

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†††††††††††            †† 4

Total last audit†††††††††††††             1

Repeated from last audit†††††††††† 1

 

Release Date:

Sept. 19, 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 and Full Report are also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

SYNOPSIS

 

 

 

        The Regional Office of Education #38 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

 

        The Regional Office of Education #38 had several audit adjustments from the prior year audit that were posted to the incorrect fund accounts.

 

        The Regional Office of Education #38 did not reconcile its bank reconciliation to the general ledger.

 

        The Regional Office of Education #38 recorded several different bank accounts under the same general ledger account code.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

†††††††††††††††

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 


 

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

REGIONAL OFFICE OF EDUCATION #38

LOGAN/MASON/MENARD COUNTIES

 

FINANCIAL AUDIT

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

For The Year Ended June 30, 2005

 

 

 

 

FY 2005

FY 2004

TOTAL REVENUES

$665,879

$634,621

Local Sources

$142,096

$118,678

% of Total Revenues

21.34%

18.70%

State Sources

$457,143

$267,029

% of Total Revenues

68.65%

42.08%

Federal Sources

$66,640

$248,914

% of Total Revenues

10.01%

39.22%

 

TOTAL EXPENDITURES

$662,977

$636,736

Salaries and Benefits

$356,289

$347,779

% of Total Expenditures

53.74%

54.62%

Purchased Services

$292,760

$274,314

% of Total Expenditures

44.16%

43.08%

All Other Expenditures

$13,928

$14,643

% of Total Expenditures

2.10%

2.30%

 

 

 

TOTAL NET ASSETS

$197,323

$194,421

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$25,898

 

$31,924

 

 

Percentages may not add due to rounding.

 

 

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Jean Anderson

Currently: Honorable Jean Anderson


 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #38 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #38 had several audit adjustments from the prior year audit that were posted to the incorrect fund accounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #38 did not reconcile its bank reconciliation to the general ledger.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #38 recorded several different bank accounts under the same general ledger account code.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 05-1, pages 12-13)

 

†††††††††† The Regional Office accepted the recommendation, noting it will seek a legislative solution to this and other obsolete passages.

 

 

INCORRECT POSTING OF PRIOR YEARíS AUDIT ADJUSTMENTS

 

†††††† The Regional Office of Education #38 had several audit adjustments from the prior year audit that were posted to the incorrect fund accounts.The net effect of the unrecorded transactions was an increase in net assets of $31,154.

 

†††††† The Regional Office of Education #38 is required by the Illinois State Board of Education (ISBE) to maintain financial accounting records in accordance with generally accepted accounting principles which includes ensuring that all transactions are recorded. (Finding 05-2, page 14)

 

 

†††††† The Regional Office of Education #38 accepted the recommendation, stating it has purchased a new bookkeeping system, which allows for easier adjustment transactions and corrections.

 

 

BANK RECONCILIATIONS DO NOT RECONCILE TO CASH BALANCE PER GENERAL LEDGER

 

††††††† The Regional Office of Education #38 did not reconcile its bank reconciliation to the general ledger.Several line items were omitted from the reconciliation (i.e., outstanding checks, deposits in transit, and adjustments from prior yearís audit).Additionally, there were footing errors on the bank reconciliations.

† †††††††

††††††† Sound internal controls require bank reconciliations to be performed accurately and promptly.Reconciling items should be investigated immediately and adjustments made to the general ledger. (Finding 05-3, page 15)

 

††††††† The Regional Office of Education #38 accepted the recommendation stating it has installed a new bookkeeping system which is able to balance cash with the bookkeeping entries.

††††††††

 

COMBINING DIFFERENT BANK ACCOUNTS UNDER ONE ACCOUNT CODE

 

†††††† The Regional Office of Education #38 recorded several different bank accounts under the same general ledger account code, making it difficult to reconcile cash balances from the bank reconciliations to the general ledger.

 

†††††† The Illinois State Board of Educationís (ISBE) Regional Office of Education Accounting Manual requires Regional Offices to set up separate general ledger account codes for each banking institution.(Finding 05-4, page 16)

 

†††††† The Regional Office of Education #38 agreed with the recommendation and will set up separate cash accounts in the general ledger to comply with the requirements set forth by ISBE in the Regional Office of Education Accounting Manual.††

††††††††††††††

†††††††††††††

AUDITORSí OPINION

 

††††† Our auditors state the Regional Office of Education #38ís financial statements as of June 30, 2005 are fairly presented in all material respects.

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JRB

 

 

 

SPECIAL ASSISTANT AUDITORS

 

††††††† Our special assistant auditors were Hill, Taylor Company, LLC.