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, 2006

Summary of Findings:

Total this audit                          1

Total last audit                          2

Repeated from last audit           1

Release Date:

July 31, 2007

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 #49 did not comply with certain statutory administrative requirements.

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

FY 2006

FY 2005

TOTAL REVENUES

$4,122,958

$4,638,748

Local Sources

$890,953

$881,560

% of Total Revenues

21.61%

19.00%

State Sources

$2,006,749

$1,367,779

% of Total Revenues

48.67%

29.49%

Federal Sources

$1,225,256

$2,389,409

% of Total Revenues

29.72%

51.51%

TOTAL EXPENDITURES

$4,081,760

$4,726,404

Salaries and Benefits

$1,469,135

$1,357,301

% of Total Expenditures

35.99%

28.72%

Purchased Services

$2,086,143

$1,657,761

% of Total Expenditures

51.11%

35.07%

All Other Expenditures

$526,482

$1,711,342

% of Total Expenditures

12.90%

36.21%

TOTAL NET ASSETS

$883,096

$841,898

INVESTMENT IN CAPITAL ASSETS

$108,018

$138,332

              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 did not comply with certain statutory administrative requirements.

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 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 of Education #49 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.         

The Illinois School Code (105 ILCS 5/3-14.5) also requires the Regional Superintendent to visit each public school in the county at least once a year, noting the methods of instruction, the branches taught, the textbooks used, and the discipline, government and general condition of the schools.  This mandate has existed in its current form since at least 1953.

The Regional Office of Education #49 performs compliance inspections for each public school in its region on a rotational basis every three years instead of annually.  While the Illinois Public School Accreditation Process Compliance Component document completed at these visits includes many of the items delineated in 105 ILCS 5/3-14.5, it does not include a complete review of all items for every school.  (Finding 06-1, pages 11-13)

The Regional Office of Education #49 responded that with regards to compliance with 105 ILCS 5/3-14.11 and 105 ILCS 5/3-14.5, the Illinois Association of Regional Superintendents of Schools and the Illinois State Board of Education have agreed to seek legislation to remove duplicative and/or obsolete sections of the Illinois School Code.  Both parties believe that 105 ILCS 5/3-7 of the Illinois School Code and 23 Ill. Adm. Code 1.20, respectively, contain more current, thorough, and comprehensive requirements concerning a public school district’s financial transactions and visitation of public schools by the Regional Superintendent.  As a result, the two parties working together will seek legislation to repeal these two sections of the Illinois School Code.  

AUDITORS’ OPINION

Our auditors state the Regional Office of Education #49’s financial statements as of June 30, 2006 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.