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, 2006

 

Summary of Findings:

 

Total this audit†††††††††††††             3

Total last audit†††††††††††††             4

Repeated from last audit†††††††††† 2

 

Release Date:

Sept. 26, 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 Report are also available on the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

SYNOPSIS

 

 

 

        The Regional Office of Education #38 did not comply with certain statutory administrative requirements.

 

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

 

         The Regional Office of Education #38 did not have a complete general ledger system that included all assets and liabilities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 


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†††††††††††††††††††††††††††††††††††††††††††††† 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, 2006

 

 

 

 

FY 2006

FY 2005

TOTAL REVENUES

$449,583

$665,879

Local Sources

$176,287

$142,096

% of Total Revenues

39.21%

21.34%

State Sources

$260,996

$457,143

% of Total Revenues

58.05%

68.65%

Federal Sources

$12,300

$66,640

% of Total Revenues

2.74%

10.01%

 

TOTAL EXPENDITURES

$427,419

$662,977

Salaries and Benefits

$355,882

$356,289

% of Total Expenditures

83.26%

53.74%

Purchased Services

$50,268

$292,760

% of Total Expenditures

11.76%

44.16%

All Other Expenditures

$21,269

$13,928

% of Total Expenditures

4.98%

2.10%

 

 

 

TOTAL NET ASSETS

$173,319

$197,323

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$19,871

 

$25,898

 

 

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 comply with certain statutory administrative requirements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #38 did not have a complete general ledger system that included all assets and liabilities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 #38 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 5/3-14.25 requires the Regional Office of Education to maintain, and make available to the public during regular business hours, a list of unfilled teaching positions within the region.

 

The Regional Office of Education #38 did not provide a listing on its website of all the unfilled teaching positions within the region.The Regional Office provided a listing of website links rather than having its own updated website.However, the link did not work.

 

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 visitations. This mandate has existed in its current form since at least 1953.

 

The Regional Office of Education #38 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 Illinois School Code 105 ILCS 5/3-14.5 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 Office performs compliance inspections for each public school in her region on a rotational basis instead of annually.While 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, it does not include a review of the methods of instruction and the textbooks used in the district.

 

Finally, the Illinois School Code 105 ILCS 5/3-7 states that each school district shall, as of June 30 each year, cause an audit to be made of its accounts.Each school district shall on or before October 15, or by extension date not to exceed 60 days of each year, submit an original and one copy of such audit to the Regional Superintendent of Schools.

 

The Regional Office of Education #38 was unable to supply evidence that 6 of the 13 school district financial statement audit reports were submitted to the ROE by October 15, 2005 or by the extension date.(Finding 06-1, pages 10-13)

 

The Regional Office of Education #38 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.

 

With regards to 105 ILCS 5/3-14.25, 105 ILCS 5/3-5, and 105 ILCS 5/3-7, management stated that they are aware of the problems and will correct the matters as soon as possible.

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.(Finding 06-2, page 14)

 

The Regional Office of Education #38 agreed with the recommendation to set up separate cash accounts in the general ledger.††

 

 

GENERAL LEDGER SYSTEM

 

Sound internal controls require a complete general ledger that has the information to enable management to perform timely account reconciliations in order to identify errors and make corrections.A complete ledger system includes all assets, liabilities, revenue, and expense accounts.

 

The Regional Office of Education #38 provided a partial general ledger system to the auditors which only included revenue and expense accounts.(Finding 06-3, page 15)

 

The Regional Office of Education #38 accepted the recommendation stating that it will be contacting the software company for assistance in printing out reports.

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AUDITORSí OPINION

 

Our auditors state the Regional Office of Education #38ís 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 Hill, Taylor Company, LLC.