FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
NONCOMPLIANCE WITH STATUTORY MANDATES
The
Regional Office of Education #50 did not comply with certain statutory
administrative requirements and the Illinois Administrative Code. The Illinois Administrative Code (23 Ill.
Adm. Code 110.115) states that fees for conferences, workshops, materials and
other costs charged for discretionary activities not required by law or rule
are to be determined on a cost-recovery basis. Excess funds resulting from registrations or request for
materials/ services beyond the anticipated cost-recovery basis shall be
deposited in an Enterprise Fund to be used solely to reduce the cost of
similar items or to cover costs incurred due to less-than-anticipated
registrations or requests for materials/services. Fees charged by the Regional Office for technology-related
services were not determined on a cost recovery basis. Also, excess fees were not deposited into
an Enterprise Fund.
The
Illinois School Code (105 ILCS 5/3-6) requires the Regional Superintendent to
report, in writing, to the county board on or before January 1 of each year,
stating: (1) the balance on hand at
the time of the last report, and all receipts since that date, with the
sources from which they were derived; (2) the amount distributed to each of
the school treasurers in his or her county; and (3) any balance on hand. According to Regional Office management,
the annual report had been sent to the County Clerk before January 1;
however, the County Clerk did not receive it and an additional copy was hand
delivered on August 20, 2004.
The School Code (105 ILCS
5/3-12) also requires that on or before January 1 of each year, the Regional
Superintendent shall publish in a newspaper of general circulation published
in the region or post in each school building under his/her jurisdiction,
certain information regarding the Office’s Institute Fund. According to Regional Office management,
the newspaper lost the original fax transmission of this information forcing
the Regional Office to send a second fax, which delayed the publication of
the information, 16 days after the deadline.
(Finding 04-1, pages 12-14)
The Regional Office of Education #50 accepted the recommendation
stating it will take actions necessary to address the items noted in the
finding.
INADEQUATE RECORDS RETENTION
The Regional Office of Education #50 did not maintain student files
for the McKinney Education for Homeless Children program in accordance with
federal regulations or their own record retention policies. All student files were shredded by the
caseworker once the school year had ended and all reporting requirements had
been met. Proper disposition
procedures were also not followed as no documentation of the disposal was
maintained. The Regional Office
expended $56,000 in McKinney program funds in fiscal year 2004.
The U.S. Department of Education’s “Education Department General
Administrative Regulations” (34 CFR Part 80.42) requires records to be
retained for three years after completing activities pertaining to grant
funds or until all outstanding claims have been resolved. In addition, the Regional Office of
Education #50’s record retention policy for grant records requires they be
maintained for three years following completion of the terms of the
grant. The failure to retain student
records in accordance with regulations resulted in a qualified opinion on
compliance for this major federal program. (Finding 04-2, pages 15-16)
The Regional Office of Education
#50 accepted the recommendation and stated it will take steps to ensure that
all grant program records are maintained in accordance with federal and State
regulations, as well as, Regional Office of Education record retention
policies.
AUDITORS’ OPINION
Our auditors state
the Regional Office of Education # 50’s financial statements as of June 30,
2004 are fairly presented in all material respects.
___________________________________
WILLIAM
G. HOLLAND, Auditor General
WGH:JRB
SPECIAL ASSISTANT AUDITORS
Our special assistant
auditors were Martin & Shadid CPAs, P.C.
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