REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #49

ROCK ISLAND COUNTY

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                          2

Total last audit                          3

Repeated from last audit           1

Release Date:

 June 29, 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 #49 included certain expenditures as both expense items and outstanding obligations in the expenditure report, thus doubling up the expense reported on several State grants.

• The Regional Office of Education #49 did not comply with certain statutory requirements.

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

FY 2005

FY 2004

TOTAL REVENUES

$4,638,748

$5,062,484

Local Sources

$881,560

$651,803

% of Total Revenues

19.00%

12.88%

State Sources

$1,367,779

$1,072,399

% of Total Revenues

29.49%

21.18%

Federal Sources

$2,389,409

$3,338,282

% of Total Revenues

51.51%

65.94%

TOTAL EXPENDITURES

$4,726,404

$4,893,712

Salaries and Benefits

$1,357,301

$1,292,046

% of Total Expenditures

28.72%

26.40%

Purchased Services

$1,657,761

$899,557

% of Total Expenditures

35.07%

18.38%

All Other Expenditures

$1,711,342

$2,702,109

% of Total Expenditures

36.21%

55.22%

TOTAL NET ASSETS

$841,898

$929,554

INVESTMENT IN CAPITAL ASSETS

$138,332

$155,553

              Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT

During Audit Period:  Honorable Joseph Vermeire

Currently:  Honorable Joseph Vermeire

The Regional Office of Education #49 included certain expenditures as both expense items and outstanding obligations in the expenditure report, thus doubling up the expense reported on several State grants.

The Regional Office of Education #49 did not comply with certain statutory requirements.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

INACCURATE EXPENDITURE REPORT

The Regional Office of Education #49 included certain expenditures as both expense items and outstanding obligations in the expenditure report, thus doubling up the expenses reported on several State grants.  The accounting software used to prepare the expenditure reports failed to clear obligations after they had been paid.  The expense was then showing up as an expense and as an outstanding obligation. (Finding 05-1, page 11)

The Regional Office of Education #49 agreed with the recommendation, stating it will contact the software manufacturer to resolve this problem.   The Regional Office will also review cash balances on grants when preparing expenditure reports in the future.

COMPLIANCE WITH STATUTORY REQUIREMENTS

      The Regional Office of Education #49 did not comply with certain statutory requirements.  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 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 are satisfying the intent of the statute by other reviews they undertake.  This mandate has existed in its current form since at least 1953.

      State statute (105 ILCS 5/3-14.17) also requires that the Regional Superintendent notify the presidents of boards of trustees and the clerks and secretaries of school districts, on or before September 30, annually, of the amount of money distributed by him to the school treasurer, with the date of distribution.  According to the Regional Office, the notification has not been done in the past several years unless it was requested by the Districts.

       Finally, the Regional Office inspected and surveyed all public schools under their supervision as required by the Illinois School Code (105 ILCS 5/3-14.21) but did not use forms provided by the State Board of Education to report its findings.   (Finding 05-2, page 12-14)

      The Regional Office of Education #49 accepted the recommendation to comply with all statutory requirements.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education #49’s 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 Clifton Gunderson, LLP.