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FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
LACK OF CONTROLS OVER THE GENERAL EDUCATIONAL DEVELOPMENT (GED) PROGRAM
The Agency failed to ensure the implementation and
maintenance of internal controls over the GED testing process and accounting
for program application fees.
Receipts into the State Board of Education GED Testing Fund (Fund 161)
totaled $404,319 in fiscal year 2005.
We noted the following:
·
The agency received statements from the bank and had
access to the database maintained by vendor that provided current listing of
approved applicants, but the Agency did not perform any procedures to ensure
receipts deposited in the bank included all monies to which they are
entitled.
·
The agency did not perform a year-end analysis to
determine whether deferred revenue should have been recorded in Fund 161
accounting reports filed with the State Comptroller and the agency’s
financial statements.
·
Although the Agency had access to the database
maintained by the vendor for the GED program, the Agency decided to rely on
the vendor to ensure the applicant listings are complete and accurate. (Finding 1, pages 14-15)
We recommended the Agency implement policies and
procedures to establish controls over the GED testing process and collection
and accounting of all application fees.
The Agency agreed that the processes necessary to ensure
accurate revenue recognition of GED fees were not in place. Agency officials stated they reviewed the
steps and costs necessary to develop and implement the added procedures and
controls, but determined that these could not be effectively implemented
before the July 2005 transfer of the program to the Illinois Community
College Board. In the future, if the
GED program returns to the Agency, the procedures to ensure accurate revenue
recognition will be implemented.
NONCOMPLIANCE WITH MANDATED DUTIES SET FORTH IN STATE LAW
The Agency did not comply with duties mandated by State
statute. We noted the Agency did not:
·
prepare fiscal notes timely as requested by the
General Assembly;
·
ensure regional superintendents certified to the
Agency by September 1 that he or she did not employ his or her spouse, child,
stepchild or relative as an assistant regional superintendent;
·
receive an annual statistical compilation of
drug-related incidents in schools from the Department of State Police and
compile this information by school district and make it available to the
public;
·
submit its plan to incorporate social and emotional
development standards as part of the Illinois Learning Standards in a timely
manner;
·
issue Certificate of Approval for the Expenditure of
Fire Prevention and Safety Funds timely;
·
compile data by school district on attacks on school
personnel and make it public;
·
appoint 2 of 17 members of the Advisory council on
Bilingual Education;
·
review approved charter school proposals from local
school boards timely;
·
review, approve, process 6 of 15 Safety Survey
Reports and 3 of 10 amendments of the Safety Survey Reports timely;
·
initiate and maintain an annual Governor’s
Recognition Program;
·
establish a State level Committee of Cooperative
Services;
·
develop a model curriculum for the reduction of
self-destructive behavior for use in grades 6 through 12 of public schools;
·
make computer literacy and high-tech competency
grants available to qualifying school districts;
·
establish a grant program for school districts on the
academic watch list and other school districts that have the lowest achieving
students; or
·
provide grants for the purpose of completing a school
safety assessment audit and developing a written safety plan. (Finding 2, pages 19-22) This finding was first reported in
2000.
We recommended the Agency establish policies and procedures
to comply with all mandated duties.
Agency officials agreed with our recommendation that it
should comply with statutory requirements.
(For the previous agency response, see Digest Footnote #1.)
FOLLOW-UP
TO FINANCIAL AND MANAGEMENT AUDIT OF THE TEACHERS ACADEMY FOR MATHEMATICS AND
SCIENCE (TAMS)
The Agency did not properly monitor the Teachers Academy of
Mathematics and Science (Academy). We
noted the following:
·
The Agency did not monitor the use of interest income
on State funds to ensure the funds were used for the same purpose as the
principal of the grant and the Agency did not examine the Academy’s use of
interest revenue and recover any funds that were used for non-grant purposes.
·
The Agency did not develop criteria to be included in
the formal grant agreements with the Academy that returns fixed assets
purchased with State funds by the Academy to the State in the event the
Agency discontinues funding of the Academy program.
Similar
issues were raised with regard to prior period funding provided by the Agency
to TAMS and the Agency is awaiting an Attorney General opinion on those
matters. (Finding 3, pages 23-24)
We recommended the Agency continue to work with
the Attorney General Office to obtain the opinions as requested. We also recommended the Agency monitor the
use of interest income and develop criteria covering items purchased with
State funds.
Agency officials stated they have devoted substantial time
and effort to satisfactorily settle the FY03 questioned costs related to the
FY03 TAMS audit findings. Agency officials
also stated TAMS received no funds for FY06 and ceased operations in early
FY06. In addition, the Agency now
requires formal agreements defining such matters as appropriate use of
interest income and disposition of assets purchased with State funds with all
subrecipients.
Dr. Dunn, Superintendent, provided the responses to our
findings and recommendations in a letter dated February 17, 2006.
AUDITORS’ OPINION
Our special assistant auditors stated that the Agency’s
financial statements of the governmental activities, the major fund, and the
aggregate remaining fund information of the Agency, as of and for the year
ended June 30, 2005, are fairly stated in all material respects.
_____________________________________
WILLIAM
G. HOLLAND, Auditor General
WGH:JSC:pp
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors for this audit were
Washington, Pittman & McKeever, LLC.
DIGEST FOOTNOTES
#1 –
NONCOMPLIANCE WITH MANDATED DUTIES - Previous Agency Response
2004: The
Agency agrees with the recommendation that it should comply with statutory
requirements. See prior year report
for complete response.
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