REPORT DIGEST

 

ILLINOIS STATE BOARD OF EDUCATION

 

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

 

For the Year Ended:

June 30, 2006

 

Summary of Findings:

Total this audit                        2

Total last audit                        3

Repeated from last audit         1

 

 

Release Date:

April 5, 2007

 

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 the full report are also available on the worldwide web at

www.auditor.illinois.gov

 

 

 

 

 

 

SYNOPSIS

 

 

¨       The Agency did not comply with certain duties mandated by State statute.

 

¨       The Agency’s Internal Audit division did not comply with provisions of the Fiscal Control and Internal Auditing Act.    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the reverse page.}

                                                                             


 

 

STATE BOARD OF EDUCATION

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

FOR THE YEAR ENDED JUNE 30, 2006

(Comparative Data Shown for Fiscal Year Ending June 30, 2005)

 

EXPENDITURE STATISTICS

FY 2006

FY 2005

 

·         Total Expenditures (All Funds)............................

 

       OPERATIONS TOTAL........................................

             % of Total Expenditures..................................

 

             Personal Services.............................................

             % of Operations Expenditures...........................

             Average No. of Employees...............................

 

             Other Payroll Costs (FICA, Retirement)............

             % of Operations Expenditures...........................

 

             Contractual Services.........................................

             % of Operations Expenditures...........................

 

             All Other Operations Items...............................

             % of Operations Expenditures...........................

 

       GRANTS, REFUNDS, OTHER.............................

             % of Total Expenditures..................................

 

       Federal Expenditures Passed Through to Other Entities 

             % of Total Expenditures..................................

 

·         Cost of Property and Equipment..........................

 

 

$7,900,566,800

 

$78,106,085

.99%

 

$29,770,873

38.12%

497

 

$6,814,305

8.72%

 

$39,020,295

49.96%

 

$2,500,612

3.20%

 

$6,055,317,217

76.64%

 

$1,767,143,498

22.37%

 

$14,337,051

 

$7,575,779,397

 

$72,452,426

.96%

 

$30,090,381

41.53%

497

 

$6,976,243

9.63%

 

$33,323,489

45.99%

 

$2,062,313

2.85%

 

$5,737,817,697

75.74%

 

$1,765,509,274

23.30%

 

$15,327,113

SELECTED ACTIVITY MEASURES – UNAUDITED

FY 2006

FY 2005

Number of Operating School Districts............................

Dropout Rate................................................................

Attendance Rate...........................................................

Graduation Rate............................................................

Total Number of Teachers (FTE)..................................

Students Per Teacher (Elementary)...............................

Students Per Teacher (Secondary).................................

Students Per Administrator............................................

Instructional Expenditures Per Pupil...............................

Operational Expenditures Per Pupil................................

*Agency unable to provide 2006 performance measures as  of January 2007

873

3.5%

94.0%

87.8%

*

*

*

*

*

$9,099

889

4.0%

93.9%

87.4%

128,079

18.4

18.2

209.5

$5,216

$8,786

 

STATE SUPERINTENDENT OF EDUCATION

During Audit Period:      Dr. Randy Dunn 

Currently:                      Dr. Christopher Koch (Interim Superintendent effective December 1, 2006)


 

 

 


 

 

 

 

 

 

 

 

 

 

 


Noncompliance with various School Code requirements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No testing of major systems during fiscal year 2006

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

 

NONCOMPLIANCE WITH MANDATED DUTIES

 

      The Agency did not comply with duties mandated by State statute.  We noted the Agency did not:

 

·        prepare and make available to school boards instructional materials relative to commemorated persons, activities, or events;

·        submit the Capital Needs Assessment Report to the General Assembly in a timely manner;

·        provide grants to charter schools to pay the start-up costs of acquiring educational materials and supplies, textbooks, furniture, and other equipment needed during the initial term;

·        maintain personnel to provide consulting assistance for programs relating to the study of atomic radiation and its peaceful uses;

·        review, approve, and process 5 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; or

·        establish a grant program for school districts on the academic watch list and other school districts that have the lowest achieving students.  (Finding 1, pages 12-18)  This finding was first reported in 2000.     

 

      We recommended the Agency develop a system to identify all mandates and develop procedures to ensure compliance.   

 

      Agency officials stated they are working towards developing a process to identify all mandates to which the Agency is subject and the areas responsible for compliance and this effort will be coordinated with the Agency’s efforts to identify obsolete legislation for repeal or amendment.  (For the previous agency response, see Digest Footnote #1.)

 

 

NONCOMPLIANCE WITH THE FISCAL CONTROL AND INTERNAL AUDITING ACT

 

            The Agency’s Internal Audit Division did not comply with provisions of the Fiscal Control and Internal Auditing Act (Act).  We noted the Internal Audit Division did not adequately prepare a two-year plan for fiscal years 2006 and 2007 as it relied on the culmination of an agreement with the Illinois Office of Internal Audit (Central Management Services).  However, the Agency never reached an agreement with the Office of Internal Audit.  As a result, no testing was planned or performed during the fiscal year 2006 on any major systems as required by the Act.  (Finding 2, page 19)

 

We recommended the Agency allocate adequate resources to the Internal Audit Division to ensure audits of major systems are performed at least once every two years.  We further recommended the Agency reiterate the importance of communication between the Internal Audit and Data Systems divisions to ensure the review of major new electronic date processing systems before their installation.

 

      Agency officials stated they recognize that Internal Audit was not allocated sufficient resources to carry out its mandated duties but that a Chief Internal Auditor was appointed in May 2006 and additional resources have been requested to allow Internal Audit to meet the requirements of the Act.   

     

 

 

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, 2006, 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

 

2005:  The Agency agrees with the recommendation that it should comply with statutory requirements.  See prior year report for complete response.