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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.
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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officials noted they believe the mandate is outdated and that they are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 Education’s 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.
AUDITORS’ OPINION
Our auditors state the Regional Office
of Education #55’s financial statements as of June 30, 2005 are fairly stated
in all material respects.
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WILLIAM G. HOLLAND, Auditor General
WGH:KJM:ro
SPECIAL
ASSISTANT AUDITORS
Our
special assistant auditors were E.C. Ortiz & Co., LLP.
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