REGIONAL OFFICE OF EDUCATION #50
ST. CLAIR COUNTY
FINANCIAL AUDIT (In accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended: June 30, 2011
Release Date: January 26, 2012
Summary of Findings:
Total this audit: 1
Total last audit: 0
Repeated from last audit: 0
State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL
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Office of the Auditor General, Iles Park Plaza, 740 E. Ash Street, Springfield, IL 62703
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• The Regional Office of Education #50 did not have adequate internal controls over compliance with grant agreements.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
INADEQUATE INTERNAL CONTROLS OVER COMPLIANCE
The Regional Office of Education #50 has several federally funded grant programs. Grant monies can only be used for allowable expenditures as outlined in grant agreements.
Due to late reimbursements, a program lacked cash to pay for expenditures, resulting in a loan from another program. A review of the amounts due between programs showed a $2,153 loan from Mathematics and Science Partnership program to the Mental Health Parent Resource program. Loans are not one of the allowed uses of the Mathematics and Science Partnership program.
According to Regional Office officials, the bookkeeper that administers this program has many years experience with grant programs, but is fairly new to administering federal grant funds. The comptroller was out of the office when the transaction occurred. The comptroller would normally approve these transactions and the person who approved the transaction overlooked the fact that this was a grant. (Finding 11-1, page 12a-12b)
The auditors recommended that only discretionary funds should be used to make loans between funds. Each transaction should be examined to ensure that grant funds are not loaned to other programs. All bookkeepers and individuals authorizing funding movement should be aware of the prohibition against loaning restricted funds.
The Regional Office of Education #50 responded that it has established procedures to assure that loans between funds are only made from discretionary funds. The Regional Office noted that in October, all bookkeepers and program coordinators/directors were familiarized with the rules which prohibit loans from restricted funds. A procedure on loans was added to the Fiscal Policies & Procedures Manual. Also, this training will be a routine part of orientation for new staff in Finance and for those authorized to approve loans.
Our auditors state the Regional Office of Education #50’s financial statements as of June 30, 2011 are fairly presented in all material respects.
WILLIAM G. HOLLAND
AUDITORS ASSIGNED: Kemper CPA Group, LLP were our special assistant auditors.