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.
AUDITORS’ OPINION
Our auditors state the Regional Office of Education # 50’s financial statements as of June 30, 2003 are fairly presented in all material respects.
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WILLIAM G. HOLLAND, Auditor General
WGH:JRB
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors were Martin & Shadid.
