REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #43

 

MARSHALL/PUTNAM/ WOODFORD COUNTIES

FINANCIAL AUDIT

 

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit 2

Total last audit 1

Repeated from last audit 1

 

 

Release Date:

January 28, 2004

 

 

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 TDD (217) 524-4646

 

 

This Report Digest is also available on

the worldwide web at

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

 

 

 

 

SYNOPSIS

 

  • One person has primary responsibility for most of the accounting and financial duties for the Regional Office of Education #43.
  • The Regional Office does not maintain a general ledger to record fund transactions.

 

 

 

 

 

 

 

 

 

 

 

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

 

 

                      REGIONAL OFFICE OF EDUCATION #43

                 MARSHALL/PUTNAM/WOODFORD COUNTIES

 

                                      FINANCIAL AUDIT

                           For The Year Ended June 30, 2003

 

FY 2003

FY 2002

TOTAL REVENUES

$259,904

$268,696

Local sources

$32,242

$35,283

% of Total Revenues

12.41%

13.13%

State Sources

$226,142

$232,096

% of Total Revenues

87.01%

86.38%

Federal Sources

$1,520

$1,317

% of Total Revenues

.58%

.49%

 

TOTAL EXPENDITURES

$260,564

$262,808

Salaries and Benefits

$222,616

$164,892

% of Total Expenditures

85.44%

62.74%

Purchased Services

$34,510

$94,678

% of Total Expenditures

13.24%

36.03%

All Other Expenditures

$3,438

$3,238

% of Total Expenditures

1.32%

1.23%

     

COST OF PROPERTY AND EQUIPMENT

$1,177**

$1,177**

 

* Percentages may not add due to rounding.

** Marshall, Putnam and Woodford Counties provide the fixed assets used by the ROE. Thus, the counties are responsible for those records and the recording of those assets. However, the ROE did purchase some fixed assets during the Fiscal Year 2002.

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Richard Herring (retired 7/31/02)

Honorable Rolland Marshall

Currently: Honorable Rolland Marshall

 

 

 

 

 

 

 

One person has primary responsibility for most of the accounting and financial duties for the Regional Office of Education #43.

 

 

 

 

 

 

 

 

 

The Regional Office of Education #43 has a computerized accounting system and transactions are not being recorded into a general ledger.

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

INADEQUATE SEGREGATION OF DUTIES

One person has primary responsibility for most of the accounting and financial duties for the Regional Office of Education #43. Inadequate segregation of duties could limit the effectiveness and efficiency of the internal control system.

The Regional Superintendent of Schools is responsible for establishing and maintaining an internal control system to prevent errors and/or irregularities (Finding 03-1, page 15). This finding is repeated from our 2002 audit. In response to the 2002 audit, the Superintendent has strengthened internal controls by reviewing all bank reconciliations, invoices, and deposits, and signing all checks.

The Regional Office of Education #43 accepted the recommendation to further improve internal controls. The Regional Superintendent plans to reassign duties between the bookkeeper, secretary and himself to achieve improved segregation of duties. (For previous Regional Office response, see Digest Footnote #1.)

 

NO GENERAL LEDGER MAINTAINED

The Regional Office of Education #43 has a computerized accounting system and transactions are not being recorded into a general ledger. Transactions are recorded by fund but no breakdown of revenues by source of funds and no breakdown of expenditures by function code and object within the fund is being maintained.

According to the Regional Office of Education Accounting Manual, all transactions of each fund and each source of funds must be recorded in the general ledger by the double-entry method. (Finding 03-2, page 16)

The Regional Office of Education # 43 accepted the recommendation to record transactions in a general ledger.

 

 

                 AUDITORSí OPINION

Our auditors state the Regional Office of Education #43ís financial statements as of June 30, 2003 are fairly presented in all material respects.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JRB:ro

 

  SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Ginoli & Company LTD.

 

                   DIGEST FOOTNOTES

#1: INADEQUATE SEGREGATION OF DUTIES -- Previous Regional Office Response

In its prior response in 2002, the Regional Office accepted the recommendation to improve the internal control system.

 

Complete Regional Office responses to prior findings are available upon request from the Auditor Generalís Office.