REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #55

 

WHITESIDECOUNTY

 

FINANCIAL AUDIT

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

 

For the Year Ended:

June 30, 2005

 

Summary of Findings:

 

Total this audit†††††††††††            †† 3

Total last audit††††††††††            ††† 1

Repeated from last audit†††††††††† 0

 

Release Date:

June 1, 2006

 

 

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 and Full Report are also available on

the worldwide web at

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

 

 

 

 

 

 

SYNOPSIS

 

        The Regional Office of Education #55 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

 

        The Regional Office of Education #55 records all expenditures of workshops and other non-major funds as a debit to the revenue accounts instead of as expenditures by function and by object for each fund.The Regional Office also reported and accounted for workshop revenues and expenditures as part of ROE Operations (general fund) rather than an enterprise fund.

 

        The Regional Office of Education #55 made reimbursements for mileage reports totaling $4,788 submitted three to five months after the travel completion dates.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


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

REGIONAL OFFICE OF EDUCATION #55

WHITESIDE COUNTY

 

FINANCIAL AUDIT

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

For The Year Ended June 30, 2005

 

 

 

FY 2005

FY 2004

TOTAL REVENUES

$1,286,844

$1,172,361

Local Sources

$164,722

$183,158

% of Total Revenues

12.80%

15.62%

State Sources

$769,135

$584,646

% of Total Revenues

59.77%

49.87%

Federal Sources

$352,987

$404,557

% of Total Revenues

27.43%

34.51%

 

TOTAL EXPENDITURES

$1,315,336

$1,132,827

Salaries and Benefits

$985,867

$836,161

% of Total Expenditures

74.95%

73.81%

Purchased Services

$220,069

$205,617

% of Total Expenditures

16.73%

18.15%

All Other Expenditures

$109,400

$91,049

% of Total Expenditures

8.32%

8.04%

 

 

 

TOTAL NET ASSETS

$338,158

$366,650

 

 

 

INVESTMENT IN CAPITAL ASSETS

$65,452

$77,507

 

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

 

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Gary Steinert

Currently:Honorable Gary Steinert


 

 

 

 

 

 

 

 

The Regional Office of Education #55 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #55 records all expenditures of workshops and other non-major funds as a debit to the revenue accounts instead of as expenditures by function and by object for each fund.The Regional Office also reported and accounted for workshop revenues and expenditures as part of ROE Operations (general fund) rather than an enterprise fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #55 made reimbursements for mileage reports totaling $4,788 submitted three to five months after the travel completion dates.

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

CONTROLS OVER COMPLIANCE WITH LAWS AND REGULATIONS

 

††† †††††† The Illinois School Code (105 ILCS 5/3-14.11) requires the Regional Superintendent to examine at least once each year all books, accounts, and vouchers of every school treasurer in his educational service region, and if he finds any irregularities in them, to report them at once, as directed by the School Code.

 

†††††††††† The Regional Office did not examine at least once each year all books, accounts, and vouchers of every school treasurer in the educational service region.Regional Office officials noted they believe the mandate is outdated and that they are satisfying the intent of the statute by other reviews they undertake.This mandate has existed in its current form since at least 1953. (Finding 05-1, pages 12-13)

 

†††††† The Regional Office accepted the recommendation, noting it will seek a legislative solution to this and other obsolete passages.

 

 

ENTERPRISE FUND EXPENDITURES CHARGED DIRECTLY AGAINST REVENUE

 

††† †††††† The Regional Office records all expenditures of workshops and other non-major funds as a debit to the revenue accounts instead of as expenditures by function and by object for each fund.Total expenditures for fiscal year 2005 charged directly to revenue accounts totaled $72,463.Since both revenues and expenditures for the respective funds were understated by $72,463, the net effect was zero.It was also noted that workshop revenues and expenditures are being reported and accounted for as part of ROE Operations (general fund) instead of an enterprise fund.

†††††††††††

 

†††††††††† The Regional Office of Education (ROE) Accounting Manual requires expenditures to be identified by function account code and object account code.It also requires all transactions associated with the cost of providing goods or services that are financed or recovered through user fees to be accounted for in an enterprise fund.Generally accepted accounting principles (GAAP) requires the recognition and reporting of revenues and expenditures separately. (Finding 05-2, pages 14-15)

 

††††††††† The Regional Office accepted the recommendation, stating it will implement the system of accounts promulgated by the Illinois State Board of Education as required by the ROE Accounting Manual.

 

 

LATE SUBMISSION OF TRAVEL EXPENSE REPORTS

 

††† ††††† The Regional Office made reimbursements for mileage reports totaling $4,788 submitted three to five months after the travel completion dates.

 

††††††††† The Regional Office of Educationís policies and procedures for professional services require submission of travel mileage reports monthly.Failure to submit and perform timely reviews of travel expenses increases the potential for errors and delays the recognition of expenditures in the accounting records.(Finding 05-3, page 16)

 

††††† The Regional Office accepted the recommendation, stating it has notified all employees of the requirement to submit their travel expenses on a monthly basis and has made that a contractual requirement for fiscal year 2006.

 

 

 

AUDITORSí OPINION

 

†††† Our auditors state the Regional Office of Education #55ís financial statements as of June 30, 2005 are fairly stated in all material respects.

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KJM:ro

 

 

 

SPECIAL ASSISTANT AUDITORS

 

††††††† Our special assistant auditors were E.C. Ortiz & Co., LLP.