REPORT DIGEST
REGIONAL OFFICE OF EDUCATION #30
JACKSON AND PERRY COUNTIES
FINANCIAL AND COMPLIANCE AUDIT (In Accordance with the Single Audit Act and OMB Circular A-133)
For the Year Ended: June 30, 2003
Summary of Findings:
Total this audit 3 Total last audit 0 Repeated from last audit 0
Release Date: February 10, 2004
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 TDD (217) 524-4646
This Report Digest is also available on the worldwide web at http://www.state.il.us/auditor |
SYNOPSIS
{Expenditures and Revenues are summarized on the reverse page.} |
REGIONAL OFFICE OF EDUCATION #30
JACKSON AND PERRY COUNTIES
FINANCIAL AND COMPLIANCE AUDIT
In Accordance with the Single Audit Act and OMB Circular A-133
For The Year Ended June 30, 2003
FY 2003 |
FY 2002 |
|
TOTAL REVENUES |
$1,587,182 |
$1,711,032 |
Local sources |
$212,387 |
$168,396 |
% of Total Revenues |
13.38% |
9.84% |
State Sources |
$1,322,046 |
$1,485,154 |
% of Total Revenues |
83.30% |
86.80% |
Federal Sources |
$52,749 |
$57,482 |
% of Total Revenues |
3.32% |
3.36% |
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TOTAL EXPENDITURES |
$1,572,729 |
$1,662,733 |
Salaries and Benefits |
$769,780 |
$903,875 |
% of Total Expenditures |
48.95% |
54.36% |
Purchased Services |
$700,559 |
$621,347 |
% of Total Expenditures |
44.54% |
37.37% |
All Other Expenditures |
$102,390 |
$137,511 |
% of Total Expenditures |
6.51% |
8.27% |
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|
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COST OF PROPERTY AND EQUIPMENT |
$368,892 |
$824,690 |
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* Percentages may not add due to rounding. |
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REGIONAL SUPERINTENDENT | ||
During Audit Period: Honorable Donald Brewer Currently: Honorable Donald Brewer |
The Regional Office of Education #30’s primary accounting system does not provide internal controls and reporting features required for proper fund accounting. The Education Fund programs are not accounted for separately by program, and the ROE does not track funding sources as federal, State, or local.
The Regional Office of Education #30’s expenditure reports reflected payroll expenditures as purchased services instead of as salaries and benefits. Payroll was recorded in the ROE’s general ledger as salaries and benefits.
The Regional Office of Education #30 did not consistently use or require the use of purchase orders or cancel invoices by marking "paid" when paid. |
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS INADEQUATE ACCOUNTING SOFTWARE AND INTERNAL CONTROL The Regional Office of Education #30 utilizes a check book software package as their primary accounting software. The package does not provide the internal controls and reporting features required for proper fund accounting. For example, this software package does not allow the Regional Office of Education #30 to close an accounting period, which may result in transactions being posted to an incorrect period and not be detected. The activities of the Regional Office of Education #30’s Education Fund programs are also not accounted for separately by program. One general ledger account group is maintained for several programs. In addition, the Regional Office of Education #30 did not consistently track the sources of funds as local, State, or federal. The Regional Superintendent of Schools is responsible for establishing and maintaining an internal control system to prevent errors and irregularities. In addition, the Regional Office of Education #30 is required to maintain their accounting system in accordance with the Illinois State Board of Education’s Regional Office of Education Accounting Manual. The Manual requires the Regional Offices of Education to track funding sources as federal, State, or local. (Finding 03-1, pages 12 and 13) The Regional Office of Education #30 accepted the recommendation to improve the accounting software. The Regional Office of Education #30 stated they began using a different accounting software package in July 2003. The Regional Office of Education also stated they began implementing the Regional Office of Education Accounting Manual’s accounting numbering system in August 2003. INACCURATE REPORTING OF EXPENDITURES The Jackson County Treasurer processes the Regional Office of Education #30’s payroll. The Regional Office of Education #30 records the payroll disbursements as salaries and benefits in the general ledger, however, reports the expenditures as purchased services on the following program’s expenditure reports:
Expenditure reports should be prepared from the accounting records to accurately reflect the functional expenses of the program (Finding 03-2, page 14). The Regional Office of Education #30 accepted the recommendtion to complete expenditure reports using the proper classification of expenditures incurred and to have the expenditure reports supported by the expenditure classification reflected in the general ledger.
INTERNAL CONTROL OVER DISBURSEMENTS AND PURCHASES The Regional Office of Education #30 did not consistently:
The Regional Superintendent of Schools is responsible for establishing and maintaining a system of internal controls to prevent errors and irregularities (Finding 03-3, page 15). The Regional Office of Education #30 accepted the recommendation to ensure that purchase orders or authorization forms accompany all supporting disbursement documentation, and invoices are being marked "paid" when paid.
AUDITORS’ OPINION Our auditors state the Regional Office of Education #30’s financial statements as of June 30, 2003 are fairly presented in all material respects.
_____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:KJM:ro
SPECIAL ASSISTANT AUDITORS Our special assistant auditors were Kemper CPA Group LLP.
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