REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #53

 

TAZEWELL COUNTY

 

FINANCIAL AUDIT

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

 

For the Year Ended:

June 30, 2004

 

Summary of Findings:

Total this audit†              †††††††††††† 4

Total last audit††††††††††††              † 0

Repeated from last audit†††††††††  † 0

 

Release Date:

March 24, 2005

 

 

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 is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

 

 

SYNOPSIS

 

        The Regional Office of Education #53 did not comply with certain administrative requirements.

 

        The Regional Office of Education #53 did not prepare and submit Form 1099-MISC for two individuals who provided services and were paid in excess of $600 in calendar year 2003.

 

        The Regional Office of Education #53 did not perform any subrecipient monitoring of the Regional Safe School Program.

 

        Requests for additional drawdowns of federal funds were made before funds previously received were exhausted or before expenditures were obligated.The average monthly balance of unexpended funds was $43,709.

 

 

 

 

†††††††

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 


†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

REGIONAL OFFICE OF EDUCATION #53

TAZEWELL COUNTY

 

FINANCIAL AUDIT

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

For The Year Ended June 30, 2004)

 

 

FY 2004

FY 2003

TOTAL REVENUES

$1,323,636

$1,051,483

Local Sources

$158,723

$142,055

% of Total Revenues

11.99%

13.51%

State Sources

$778,546

$883,111

% of Total Revenues

58.82%

83.99%

Federal Sources

$386,367

$26,317

% of Total Revenues

29.19%

2.50%

 

TOTAL EXPENDITURES

$1,322,114

$1,081,837

Salaries and Benefits

$475,338

$704,451

% of Total Expenditures

35.95%

65.12%

Purchased Services

$145,042

$284,407

% of Total Expenditures

10.97%

26.29%

All Other Expenditures

$701,734

$92,979

% of Total Expenditures

53.08%

8.59%

 

 

 

TOTAL NET ASSETS1

$292,966

$291,444

 

 

 

INVESTMENT IN CAPITAL ASSETS1

 

$71,093

 

$91,998

 

1         In fiscal year 2004, Regional Offices of Education implemented Government Accounting Standards Board (GASB) Statement No. 34 which established a new financial reporting model for state and local governments.Government-wide financial statements are prepared using full accrual accounting that reports Total Net Assets.††† The fiscal year 2003 ending general fixed assets have been restated to reflect the changes required as part of the implementation of GASB Statement No. 34.

††††††††††††† Percentages may not add due to rounding.

 

REGIONAL SUPERINTENDENT

During Audit Period:Honorable Robin G. Houchin

Currently:Honorable Robin G. Houchin


 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #53 did not comply with certain administrative requirements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #53 did not prepare and submit Form 1099-MISC for two individuals who provided services and were paid in excess of $600 in calendar year 2003.

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #53 did not perform any subrecipient monitoring of the Regional Safe School Program.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Requests for additional drawdowns of federal funds were made before funds previously received were exhausted or before expenditures were obligated.The average monthly balance of unexpended funds was $43,709.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

COMPLIANCE WITH STATUTORY REQUIREMENTS

 

††††††† The Regional Office of Education #53 did not comply with certain administrative requirements.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 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 the Regional Office, management was unaware they were required to provide the financial information noted above.

 

††††††† In addition, the Illinois Administrative Code (23 Ill. Adm. Code 110.115) requires 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 requests 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.According to Regional Office, due to funding cuts for programs, the Mid-Illini Educational Cooperative charged fees for workshops and services in excess of costs in some instances. In addition, an Enterprise Fund had not been established for the excess funds.(Finding 04-1, page 15)

 

†††††† The Regional Office of Education #53 accepted the recommendation to comply with the requirements of the Illinois Statutes and Illinois Administrative Code.

 

 

EXCLUSION OF SOME REQUIRED 1099íS

 

†††††† The Regional Office of Education #53 did not prepare and submit Form 1099-MISC for two individuals who provided services and were paid in excess of $600 in calendar year 2003.A $50 per 1099 penalty can be assessed by the Internal Revenue Service for 1099s that are not filed.

 

†††††† According to IRS regulation ß1.604-1, the Tazewell County Regional Office of Education #53 is required to submit information returns (1099-MISC) to the Internal Revenue Service for all individuals who received business payments of $600 or more. (Finding 04-2, page 16)

 

†††††† The Regional Office of Education #53 accepted the auditorís recommendation to carefully review disbursements each calendar year and issue timely 1099s for all individuals who were paid in excess of $600.

 

 

INADEQUATE SUBRECIPIENT MONITORING OF FEDERAL GRANT

 

††††† The Regional Office of Education #53 did not perform any subrecipient monitoring of the Regional Safe School Program.The Regional Safe School funds of $299,192 passed from the Regional Office of Education to Illinois Central College to run the program without any oversight.

 

††††† The Regional Office of Education #53 is required to monitor the subrecipient of federal money according to the compliance requirements of OMB Circular A-133.(Finding 04-3, page 17)

 

†† ††††The Regional Office of Education #53 accepted the auditorís recommendation to monitor the spending of their subrecipient for the Regional Safe School Program in accordance with OMB Circular A-133 sub-recipient monitoring requirements.

 

 

EXTENDED TIME ELAPSING BETWEEN DRAWDOWN AND DISBURSEMENT

 

††††† The Regional Office of Education #53 requested additional drawdowns of federal funds before funds previously received were exhausted or expenditures were obligated.On quarterly expenditure reports, the Regional Office showed all unspent funds as being obligated, rather than only those funds that had been obligated as of the report date.The average monthly balance of unexpended funds was $43,709.

 

†††††† Recipients of federal monies must follow procedures to minimize the time elapsing between the transfer of funds from the U.S. Treasury and disbursement, in accordance with OMB Circular A-133.(Finding 04-4, page 18)

 

†††††† The Regional Office of Education #53 accepted the auditorís recommendation to only record obligations for known invoices and commitments on quarterly expenditure reports.

 

 

AUDITORSí OPINION

 

††††† Our auditors state the Regional Office of Education #53ís financial statements as of June 30, 2004 are fairly presented in all material respects.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KJM:ro

 

 

SPECIAL ASSISTANT AUDITORS

 

††††††† Our special assistant auditors were Ginoli & Company, LTD.