REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #50

ST. CLAIR COUNTY

 

 

FINANCIAL AND COMPLIANCE AUDIT

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

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                      4

Total last audit                      2

Repeated from last audit       0

 

Release Date:

March 18, 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

  • The Regional Office of Education #50 submitted inaccurate quarterly expenditure reports to the Illinois State Board of Education.
  • The Regional Office of Education #50 lacked controls over subrecipient monitoring.

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

               REGIONAL OFFICE OF EDUCATION #50

                               ST. CLAIR COUNTY

                FINANCIAL AND COMPLIANCE AUDIT

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

                      For The Year Ended June 30, 2003

 

FY 2003

FY 2002

TOTAL REVENUES

$4,827,785

$5,251,462

Local Sources

$600,008

$596,108

% of Total Revenues

12.43%

11.35%

State Sources

$2,683,055

$3,299,715

% of Total Revenues

55.58%

62.83%

Federal Sources

$1,544,722

$1,355,639

% of Total Revenues

32.00%

25.81%

 

TOTAL EXPENDITURES

$4,702,885

$5,151,399

Salaries and Benefits

$3,413,008

$2,928,655

% of Total Expenditures

72.57%

56.85%

Purchased Services

$860,100

$1,381,130

% of Total Expenditures

18.29%

26.81%

All Other Expenditures

$429,777

$841,614

% of Total Expenditures

9.14%

16.34%

 

 

 

COST OF PROPERTY AND EQUIPMENT

$717,576

$716,159

 

* Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Rosella Wamser

Currently: Honorable Rosella Wamser

 

 

 

 

 

The Regional Office of Education #50 submitted inaccurate quarterly expenditure reports to the Illinois State Board of Education.

 

 

 

 

 

 

 

 

 

The Regional Office of Education #50 is lacking controls over subrecipient monitoring.

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

IMPROPER EXPENDITURE REPORTING

The Regional Office of Education #50 submitted inaccurate quarterly expenditure reports to the Illinois State Board of Education. The outstanding obligations amount on the quarterly expenditure reports does not represent actual expenditures for which the related services or goods are received or ordered prior to the end of the reporting period.

Regional Office staff stated that the quarterly reports were prepared in this manner at the direction of the Illinois State Board of Education due to the delay in receiving grant funds. The auditors noted the final expenditure reports are accurate. (Finding 03-3, pages 15-16)

The Regional Office of Education #50 accepted the recommendation and will report actual obligations on the expenditure reports.

 

LACK OF CONTROLS OVER SUBRECIPIENT MONITORING

The Regional Office of Education #50 is lacking controls over subrecipient monitoring. Five of the seven subrecipients examined (71%) did not submit all the documentation requested by the Regional Office as a condition of reimbursement. The Regional Office approved and made the reimbursement despite not having all the documentation.

OMB Circular A-110, "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and other Non-Profit Organizations", states recipients are responsible for managing and monitoring subawards to ensure subrecipients are meeting audit requirements. (Finding 03-4, pages 17-18)

 

The Regional Office of Education #50 accepted the recommendation and will strengthen their controls over subrecipient monitoring. A log sheet has been developed to track the receipt of documentation from the subrecipients. The log sheet will list the documentation requested and the date received and will be completed and approved by the Project Coordinator prior to submitting it to finance for payment.

 

OTHER FINDINGS

The remaining findings are reportedly being given attention by the Regional Office of Education #50. We will review progress toward the implementation of our recommendations during the next audit.

 

AUDITORSí OPINION

Our auditors state the Regional Office of Education # 50ís financial statements as of June 30, 2003 are fairly presented in all material respects.

 

 

___________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JRB

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Martin & Shadid.