REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #47

 

LEE AND OGLE COUNTIES

 

FINANCIAL AUDIT

(In Accordance with the
Single Audit Act and OMB Circular A-133)

For the Year Ended:

June 30, 2005

 

Summary of Findings:

 

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

Total last audit††††††††††††            † 0

Repeated from last audit†††††††††† 0

 

Release Date:

September 19, 2006

 

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.state.il.us/auditor

 

 

 

 

 

 

 

SYNOPSIS

 

 

        The Regional Office of Education #47 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

 

        The Regional Office of Education #47 is not maintaining records of its accounts receivable, accounts payable, and deferred revenue in order to efficiently and effectively convert their financial statements from a cash basis to the accrual basis and the modified accrual basis of accounting.

 

        The Regional Office of Education #47 used various accounting systems for recordkeeping and does not reconcile any one system to another.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

REGIONAL OFFICE OF EDUCATION #47

LEE AND OGLE COUNTIES

 

FINANCIAL AUDIT

(In Accordance with the Single Audit Act and OMB Circular A-133)

For The Year Ended June 30, 2005

 

 

 

 

FY 2005

FY 2004

TOTAL REVENUES

$1,994,073

$1,584,037

Local Sources

$582,519

$424,770

% of Total Revenues

29.21%

26.82%

State Sources

$730,296

$540,941

% of Total Revenues

36.62%

34.15%

Federal Sources

$681,258

$618,326

% of Total Revenues

34.16%

39.03%

 

TOTAL EXPENDITURES

$1,950,495

$1,557,663

Salaries and Benefits

$808,150

$668,182

% of Total Expenditures

41.43%

42.90%

Purchased Services

$539,433

$376,410

% of Total Expenditures

27.66%

24.17%

All Other Expenditures

$602,912

$513,071

% of Total Expenditures

30.91%

32.94%

 

 

 

TOTAL NET ASSETS

$322,671

$279,093

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$61,299

 

$36,876

 

Percentages may not add due to rounding.

 

 

 

REGIONAL SUPERINTENDENT

 

 

During Audit Period: Honorable Amy Jo Clemens

Currently:Honorable Amy Jo Clemens

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #47 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #47 is not maintaining records of its accounts receivable, accounts payable, and deferred revenue in order to efficiently and effectively convert their financial statements from a cash basis to the accrual basis and the modified accrual basis of accounting.

 

 

 

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 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. (Finding 05-01, pages 11-12)

 

††††††† The Regional Office accepted the recommendation, noting it will seek a legislative solution to this and other obsolete passages.††

 

 

PREPARATION OF FINANCIAL STATEMENTS

 

†††† Accounting principles generally accepted in the United States of America require government-wide financial statements to be prepared on the accrual basis of accounting and the fund financial statements to be prepared on the modified accrual basis of accounting.

 

††††† The Regional Office of Education #47 prepares its financial reports on the cash basis.The ROE is not maintaining records of its accounts receivable, accounts payable, and deferred revenue in order to efficiently and effectively convert their financial statements from a cash basis to the accrual basis and the modified accrual basis of accounting.(Finding 05-02, page 13)

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #47 used various accounting systems for recordkeeping and does not reconcile any one system to another.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

††††† The Regional Office accepted the recommendation and will maintain subsidiary records of accounts receivable, accounts payable, deferred revenue and fund balances to allow for the preparation of accrual basis financial statements.

 

 

CONTROLS OVER FINANCIAL REPORTING

 

††† Strong internal controls over financial reporting systems are required to prevent inaccuracies and inefficiencies in the reporting process.

 

††† The Regional Office of Education #47 used various accounting systems for recordkeeping and did not reconcile any one system to another.(Finding 05-03, page 14)

 

††† The Regional Office accepted the recommendation, responding that it now has one accounting program internally and has entered into an intergovernmental shared services agreement with, and transferred its financial systems to, the Bloom Township Treasurer.

 

AUDITORSí OPINION

 

††††††† Our auditors state the Regional Office of Education #47ís financial statements as of June 30, 2005 are fairly presented in all material respects.

 

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:JRB

 

 

SPECIAL ASSISTANT AUDITORS

 

†††††††††† Our special assistant auditors were Prado & Renteria, Prof. Corp.