REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #41

 

MADISON 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                      3

Total last audit                      2

Repeated from last audit       1

 

Release Date:

June 30, 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 Regional Office of Education #41 had deposits which were uninsured and uncollateralized totaling $220,805 at June 30, 2008.

 

·         The Regional Office of Education #41 had excess grant funds and unspent interest revenue that was not returned to the granting agency. 

 

  • The Regional Office of Education #41 did not include the required identification of federal awards information in their contract with their subrecipient, a State university, nor did it monitor the subrecipient by requesting a copy of the financial audit of the entity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

REGIONAL OFFICE OF EDUCATION #41

MADISON 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

$5,254,366

$5,423,967

Local Sources

$2,346,313

$3,036,912

% of Total Revenues

44.65%

55.99%

State Sources

$2,221,873

$1,816,186

% of Total Revenues

42.29%

33.48%

Federal Sources

$686,180

$570,869

% of Total Revenues

13.06%

10.52%

 

TOTAL EXPENDITURES

$5,192,482

$5,403,926

Salaries and Benefits

$3,789,625

$4,146,475

% of Total Expenditures

72.98%

76.73%

Purchased Services

$817,606

$908,064

% of Total Expenditures

15.75%

16.80%

All Other Expenditures

$585,251

$349,387

% of Total Expenditures

11.27%

6.47%

 

TOTAL NET ASSETS

$2,092,419

$2,030,535

 

INVESTMENT IN CAPITAL ASSETS

$225,774

$228,781

 

Percentages may not add due to rounding.

 

 

REGIONAL SUPERINTENDENT 

During Audit Period:  Honorable Robert Daiber

Currently:  Honorable Robert Daiber

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #41 had deposits which were uninsured and uncollateralized totaling $220,805 at June 30, 2008.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #41 had excess grant funds and unspent interest revenue that was not returned to the granting agency. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #41 did not include the required identification of federal awards information in their contract with their subrecipient, a State university, nor did it monitor the subrecipient by requesting a copy of the financial audit of the entity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

UNCOLLATERALIZED AND UNINSURED DEPOSITS

 

         The Public Funds Deposit Act (30 ILCS 225/1) gives the authorization for deposits in excess of the federally insured limit to be covered by pledged collateral held by the financial institutions’ trust departments in the Regional Office of Education’s name.  In addition, prudent business practice requires all deposits held by financial institutions for the Regional Office of Education be adequately covered by depository insurance or collateral.

 

         The Regional Office of Education #41 had deposits which were uninsured and uncollateralized totaling $220,805 at June 30, 2008.  (Finding 08-01, page 12)

 

         The Regional Office of Education #41 responded that it will monitor collateral held for bank deposits.  The Regional Office will also establish an agreement with banks to automatically pledge adequate collateral.

 

 

EXCESS GRANT FUNDS AND INTEREST INCOME

 

         The Illinois Grant Funds Recovery Act (30 ILCS 705/5) requires that all grant funds that have not been expended or obligated by the end of the grant period be returned to the granting agency within 45 days after the end of the period.  The Act also states that all interest earned on grant funds held by a grantee shall become part of the grant principal when earned and be treated accordingly for all purposes unless the grant agreement provides otherwise.  In addition, 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.

 

         The Regional Office of Education #41 had excess grant funds in the amount of $26,434 in the Mathematics & Science Partnership grant plus interest revenue earned in prior years of $1,752, remaining at June 30, 2008.  The grant ended August 31, 2007 and the funds were not returned to the granting agency.  In addition, there were two funds that had unspent interest revenue totaling $452 that was required to be returned to the grantor.  (Finding 08-02, pages 13-14)

 

         The Regional Office of Education #41 responded that it will review practices and investigate the interest earnings and cash balances remaining in accounts at the end of the fiscal year to determine what actions need to be taken to close-out accounts.  The Regional Office of Education #41 will also obtain appropriate documentation from granting agencies regarding the required disposition of outstanding grant money and return the outstanding grant money to the appropriate agency when required.

 

 

INADEQUATE IDENTIFICATION OF FEDERAL AWARD AND MONITORING OF SUBRECIPIENTS

 

          OMB Circular A-133, Section 400(d) places responsibilities on pass-through entities at the time of the award which include identifying to the subrecipient, the Federal award information (CFDA title and number, award name, award year and name of Federal agency) and applicable compliance requirements.  In addition, the pass-through entity is required to ensure that subrecipients expending $500,000 or more in Federal awards during the subrecipient’s fiscal year have met the audit requirements of OMB Circular A-133 and that the required audits are completed within 9 months of the end of the subrecipient’s audit period.

 

          The Regional Office of Education #41 did not include the required identification of federal awards information in their contract with their subrecipient, a State university.  The Regional Office entered into a partnership with a State university to fund a research project about the diversity of mathematics and science curriculum in Illinois.  In addition, the Regional Office of Education did not monitor the subrecipient by requesting a copy of the financial audit of the entity, which spent more than $500,000 in federal awards.  (Finding 08-03, pages 15-16)

 

         The Regional Office of Education #41 responded that it will identify all federal awards with subrecipients and include appropriate notification that includes: CFDA title and number, award name, award year, and name of the Federal agency in all contracts with the subrecipient.  The Regional Office will also request audited financial statements from subrecipients.

 

AUDITORS’ OPINION

 

         Our auditors state the Regional Office of Education #41’s 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 J.W. Boyle & Co., Ltd.