REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #40

 

CALHOUN/GREENE/ JERSEY/MACOUPIN 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†††††††††††††             2

Total last audit†††††††††††††             5

Repeated from last audit†††††††††† 1

 

Release Date:

June 5, 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 is also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

 

        The Regional Office of Education #40 did not comply with certain statutory administrative requirements.

 

  • The Regional Office of Education #40 had interest income earned from federal funding in excess of $100 that was due back to the grantor agency.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

REGIONAL OFFICE OF EDUCATION #40

CALHOUN/GREENE/JERSEY/MACOUPIN 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

$1,667,653

$1,620,158

Local Sources

$378,564

$395,730

% of Total Revenues

22.70%

24.43%

State Sources

$940,571

$892,398

% of Total Revenues

56.40%

55.08%

Federal Sources

$348,518

$332,030

% of Total Revenues

20.90%

20.49%

 

TOTAL EXPENDITURES

$1,661,390

$1,680,262

Salaries and Benefits

$1,097,150

$1,166,759

% of Total Expenditures

66.04%

69.44%

Purchased Services

$399,549

$364,631

% of Total Expenditures

24.05%

21.70%

All Other Expenditures

$164,691

$148,872

% of Total Expenditures

9.91%

8.86%

 

 

 

TOTAL NET ASSETS

$310,833

$304,570

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$36,560

 

$51,435

 

††††††††††††† Percentages may not add due to rounding.

 

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Larry D. Pfeiffer

Currently:Honorable Larry D. Pfeiffer

 

 


 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #40 did not comply with certain statutory administrative requirements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #40 had interest income earned from federal funding in excess of $100 that was due back to the grantor agency.

 

 

 

 

 

 

 

 

 

 

 

 

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 his educational service region, and if he finds any irregularities in them, to report them at once, as directed by the School Code.

 

The Regional Office of Education #40 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 that 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 his region on a rotational basis every three 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.

 

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 his 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 of Education #40 did not present at the September county board meeting, and as nearly quarterly thereafter, a report of all his acts including a list of all the schools visited and dates of visitation.

 

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 was unable to supply evidence that 4 of the 16 school district financial statement audit reports were submitted to the Regional Office of Education #40 by October 17, 2005 or by the extension date.Further, one school districtís financial statement audit report was not signed by the District Superintendent until after the deadline on October 20, 2005.(Finding 06-01, pages 13-15)

 

The Regional Office of Education #40 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 is requesting the county board to include him on the agenda to present the quarterly report.Finally, regarding 105 ILCS 5/3-7, the office manager has developed an Excel spreadsheet to monitor the time frame for these reports.

 

 

RETURNING INTEREST EARNED IN EXCESS OF $100 ON A FEDERAL GRANT

 

The Regional Office of Education #40 had interest income earned from federal funding in excess of $100 that was due back to the granting agency for Mathematics and Science Partnership.The interest income earned totaled $145 for the grant period ended August 31, 2005.

 

The Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (34 Code of Federal Regulations Part 80.21) requires that interest earned on federal fund balances in excess of $100 be remitted back to the federal granting agency.(Finding 06-2, pages 16-17)

 

The Regional Office of Education #40 accepted the recommendation to monitor the amount of interest income earned on federal funding and return any amount in excess of $100 to the federal granting agency.

 

 

AUDITORSí OPINION

 

Our auditors state the Regional Office of Education #40ís 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 West & Company, LLC.