EXPENDITURE STATISTICS

FY 2007

FY 2006

·         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..........................

$8,294,960,717

$52,694,392

.64%

$29,217,282

55.45%

478

$7,245,353

13.75%

$13,618,359

25.84%

$2,613,398

4.96%

$6,498,333,229

78.34%

$1,743,933,096

21.02%

$14,002,213

$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

SELECTED ACTIVITY MEASURES – UNAUDITED

FY 2007

FY 2006

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

Enrollment (in thousands)..............................................

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

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

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

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

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

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

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

Teacher Salary (average)..............................................

Administrator Salary (average)......................................

873

2,369

3.5%

93.7%

85.9%

127,010

18.8

18.8

230.6

$58,275

$102,310

873

2,075

3.5%

94.0%

87.8%

127,010

19.1

18.9

221.9

$56,685

$100,396

STATE SUPERINTENDENT OF EDUCATION

During Audit Period:      Dr. Randy Dunn (through 11/30/06); Dr. Christopher Koch (Interim Superintendent – 12/1/06 – 4/30/07); Dr. Christopher Koch - Superintendent (effective 5/1/07)

Currently:                      Dr. Christopher Koch

Noncompliance with various School Code requirements

No testing of major systems during fiscal year 2007

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:

·        submit the Physical Education Report to the General Assembly and the Governor;

·        develop a teacher evaluation plan;

·        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;

·        appoint a member to the Illinois Institute for Entrepreneurship Education;

·        have the required number of representatives on the Literacy Advisory Board;

·        submit the annual progress report timely;

·        obtain the annual performance report of the Reading Improvement Block Grant Program from school districts and submit to the General Assembly;

·        review, approve, and process 1 of 15 Safety Survey Reports timely;

·        submit the Annual Statistical Report to the Governor and the General Assembly timely;

·        implement and administer a K through 3 class size reduction program;

·        comply with several requirements of the Private Business and Vocational Schools Act; 

·        submit nominations to the Governor for his appointment to the Illinois Summer School for the Arts Board of Trustees;

·        make grants available for education programs for gifted and talented children to qualifying school districts;

·        implement and administer a grant program to school districts on the academic watch list and other school districts that have the lowest achieving students;

·        initiate and maintain an annual Governor’s Recognition Program;

·        establish a State level Committee of Cooperative Services;

·        make available competitive grants to school districts for the purpose of developing comprehensive arts programs in grades kindergarten through 6 in music, drama, dance and visual arts;

·        establish and distribute funds for the Alternative Learning Opportunities Program;

·        develop a model curriculum for the reduction of self-destructive behavior for use in grades 6 through 12 of public schools;

·        maintain staff with experience and academic preparation to provide consulting assistance for programs relating to the study of atomic radiation and its peaceful uses;

·        make available competitive grants for the purpose of providing pilot programs to focus on curriculum to improve scientific literacy or create a center on scientific literacy.  (Finding 1, pages 12-21)  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 considering development and implementation of an automated system that will allow for the tracking of all mandates which the Agency is subject and identification of the areas in the Agency responsible for compliance.  (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 audit all of the Agency’s major systems over the last two years.  The Internal Audit performed only 2 audits during fiscal year 2007.  In addition, Internal Audit completed only one of the two major EDP systems implemented during the year.  (Finding 2, page 22)

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 Internal Audit has not met the requirements for audit coverage of major systems of internal control at least once every two years and reviews of information systems development and modification projects as necessary, due to limited resources.  Agency officials further stated they are currently engaged in the process of hiring an additional staff members which would allow audit coverage of all major systems of internal control. 

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, 2007, 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

2006:  The Agency is working towards developing a process to identify all mandates to which the Agency is subject and the areas responsible for compliance.  This effort will be coordinated with the Agency’s efforts to identify obsolete legislation for repeal or amendment.  See prior year report for complete response.