REPORT DIGEST

REGIONAL OFFICE OF EDUCATION # 44

McHENRY COUNTY

FINANCIAL AUDIT

For the Year Ended:
June 30, 2002

Summary of Findings:

Total this audit 2
Total last audit 2
Repeated from last audit 2

Release Date:
January 30, 2003

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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
Attn: Records Manager
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.
  • The Regional Office of Education #44 had cash in the bank in excess of the FDIC insurance level and pledged collateral of the financial institution several times during the year.

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the reverse page.}

 

REGIONAL OFFICE OF EDUCATION # 44
McHENRY COUNTY
FINANCIAL AUDIT
For The Year Ended June 30, 2002

FY 2002

FY 2001
TOTAL REVENUES

1$576,548

$385,240

Local sources

$145,105

$151,057

% of Total Revenues

25.17%

39.21%

State Sources

1$202,131

$28,246

% of Total Revenues

35.06%

7.33%

Federal Sources

$229,312

$205,937

% of Total Revenues

39.77%

53.46%
TOTAL EXPENDITURES

1$582,543

$347,998

Salaries and Benefits

1$254,842

$91,673

% of Total Expenditures

43.75%

26.34%

Purchased Services

$170,308

$196,789

% of Total Expenditures

29.24%

56.55%

All Other Expenditures

$157,393

$59,536

% of Total Expenditures

27.02%

17.11%
COST OF PROPERTY AND EQUIPMENT

$21,026

$ 21,026

Note: Fiscal Year 2001 data was obtained from audits of ROEs conducted under the direction of the Illinois State Board of Education.
1Fiscal Year 2002 amounts include on-behalf payments ($173,509). These on-behalf payments were not included in Fiscal Year 2001.
* Percentages may not add due to rounding.
REGIONAL SUPERINTENDENT
During Audit Period: Honorable Donald Englert
Currently: Honorable Donald Englert
 

 

 

 

 

 

 

 

 

 

 

One person has primary responsibility for most of the accounting and financial duties.

 

 

 

 

 

 

 

 

The Regional Office of Education #44 had cash in the bank in excess of the FDIC insurance level and pledged collateral of the financial institution several times during the year.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

SEGREGATION OF DUTIES

One person has primary responsibility for most of the accounting and financial duties. As a result, all of those aspects of internal control which rely upon adequate segregation of duties are, for all practical purposes, missing in the Regional Office of Education #44.

The Regional Superintendent of Schools is responsible for establishing and maintaining an internal control system to prevent errors and irregularities (Finding 02-1, page 9).

The Regional Office of Education #44’s personnel accepted the auditor’s recommendation to implement additional controls to counteract this condition. The following controls will be put in place:
  • the Regional Superintendent will review and sign the receipts list and forward it to the bookkeeper for recording;
  • the bookkeeper will prepare the monthly bank reconciliation and the Superintendent will review and approve it;
  • the Regional Superintendent will review and sign all checks; and
  • the bookkeeper will prepare a bills payable list and the Regional Superintendent will review and approve it.

The Regional Superintendent noted that while additional control procedures will be added, an inadequate segregation of duties will remain due to the limited number of staff.

UNDER COLLATERALIZATION OF BANK ACCOUNT

The Regional Office of Education #44 had cash in the bank in excess of the FDIC insurance level and pledged collateral of the financial institution several times during the year. On November 14, 2002, one of the days tested, the bank balance exceeded the FDIC pledged collateral by $1,030,308.

The total of FDIC insurance and pledged collateral should be sufficient to cover all of the cash and investment from possible loss (Finding 02-2, page 10).

The Regional Office of Education #44 accepted the auditor’s recommendation to review pledged collateral coverage to ensure that it is adequate throughout the year.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education # 44’s financial statements as of June 30, 2002 are fairly presented in all material respects.

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WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Clifton Gunderson LLP.