REPORT DIGEST

REGIONAL OFFICE OF EDUCATION # 9

CHAMPAIGN AND FORD COUNTIES

FINANCIAL AUDIT
(In accordance with the Single Audit Act and OMB Circular A-133)

For the Year Ended:
June 30, 2002

Summary of Findings:

Total this audit 8
Total last audit 2
Repeated from last audit 0

Release Date:
February 11, 2003

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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
Attn: Records Manager
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
  • The Regional Office of Education # 9 purchased a 1985 pickup truck in 2000 from an employee in the Safe School Program for approximately $6,000. The truck was sold back to the same employee in Fiscal Year 2002 for $100. The truck’s fair value at the time it was sold in Fiscal Year 2002 was approximately $1,200.
  • The Regional Office of Education # 9 does not record accounts receivable or accounts payable as required by generally accepted accounting principles. They maintain cash basis accounting records throughout the year.
  • The Regional Office of Education # 9 records grants received from governmental agencies other than the Illinois State Board of Education as "other local funds" even though the grantor may be another State agency.

 

 

 

 

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

REGIONAL OFFICE OF EDUCATION # 9
CHAMPAIGN AND FORD COUNTIES
FINANCIAL AUDIT
For The Year Ended June 30, 2002

FY 2002

FY 2001
TOTAL REVENUES

1$5,504,052

$5,067,650

Local sources

$1,390,402

$1,258,161

% of Total Revenues

25.26%

24.83%

State Sources

1$2,597,674

$2,449,731

% of Total Revenues

47.20%

48.34%

Federal Sources

$1,515,976

$1,359,758

% of Total Revenues

27.54%

26.83%
TOTAL EXPENDITURES

1$5,484,975

$5,033,992

Salaries and Benefits

1$2,975,245

$2,228,462

% of Total Expenditures

54.24%

44.27%

Purchased Services

$1,405,517

$1,492,229

% of Total Expenditures

25.62%

29.64%

All Other Expenditures

$1,104,213

$1,313,301

% of Total Expenditures

20.13%

26.09%
COST OF PROPERTY AND EQUIPMENT

$465,354

$ 351,526

Note: Fiscal Year 2001 data was obtained from audits of ROEs conducted under the direction of the Illinois State Board of Education.
1 Fiscal Year 2002 amounts include on-behalf payments ($173,452). These on-behalf payments were not included in Fiscal Year 2001.
* Percentages may not add due to rounding.
REGIONAL SUPERINTENDENT
During Audit Period: Honorable Martin Barrett
Currently: Honorable Martin Barrett
 

 

 

 

 

The Regional Office of Education # 9 entered into a related party transaction.

 

 

 

 

 

 

 

The Regional Office of Education # 9 does not record accounts receivable or accounts payable as required by generally accepted accounting principles.

 

 

 

 

 

 

 

The Regional Office of Education # 9 does not track the sources of their funds accurately.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

RELATED PARTY TRANSACTION

The Regional Office of Education # 9 purchased a 1985 pickup truck in 2000 from an employee in the Safe School Program for approximately $6,000. The truck was sold back to the same employee in Fiscal Year 2002 for $100. The employee was the sole bidder in a published request for sealed bids. The truck’s fair value at the time it was sold in Fiscal Year 2002 was approximately $1,200. The Regional Office of Education # 9 did not have records showing the truck’s value at the time of the original purchase in 2000.

The Regional Office of Education # 9’s policy forbids transactions with related parties. (Finding 02-1, page 12)

The Regional Office of Education # 9 accepted the recommendation to comply with their policy that forbids related party transactions.

CASH BASIS ACCOUNTING RECORDS

The Regional Office of Education # 9 does not record accounts receivable or accounts payable as required by generally accepted accounting principles. The Regional Office of Education # 9 maintains cash basis accounting records throughout the year. The Regional Office of Education # 9’s accounting system contains an accounts payable function that is not currently used.

Accrual accounting is required by generally accepted accounting principles for financial statement presentation. (Finding 02-4, page 15)

The Regional Office of Education # 9 accepted the recommendation to utilize the payable and receivable function of their accounting system so that payables and receivables can be recorded throughout the year.

TRACKING FUNDING SOURCES

The Regional Office of Education # 9 records grants received from other governmental agencies other than the Illinois State Board of Education as "other local funds" even though the grantor may be another State agency.

The Illinois State Board of Education’s accounting manual for the Regional Offices of Education requires funding sources be tracked as federal, State or local. (Finding 02-5, page 16)

The Regional Office of Education # 9 accepted the recommendation to accurately record grant funds as required by the Illinois State Board of Education accounting manual.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education # 9’s financial statements as of June 30, 2002 are fairly presented in all material respects.

 

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WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Kemper CPA Group, LLP.