REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #12

CLAY/CRAWFORD/ JASPER/LAWRENCE/ RICHLAND COUNTIES

FINANCIAL AUDIT

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

For the Year Ended:

June 30, 2006

Summary of Findings:

Total this audit                          1

Total last audit                          1

Repeated from last audit           1

Release Date:

May 24, 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 Full Report

are also available on

the worldwide web at

http://www.auditor.illinois.gov

SYNOPSIS

·        The Regional Office of Education #12 did not comply with certain statutory requirements.

        {Expenditures and Revenues are summarized on the reverse page.}

FY 2006

FY 2005

TOTAL REVENUES

$2,691,901

$3,089,481

Local Sources

$552,253

$699,082

% of Total Revenues

20.52%

22.63%

State Sources

$1,588,946

$1,352,688

% of Total Revenues

59.03%

43.78%

Federal Sources

$550,702

$1,037,711

% of Total Revenues

20.46%

33.59%

TOTAL EXPENDITURES

$2,924,437

$3,217,004

Salaries and Benefits

$1,712,368

$1,659,121

% of Total Expenditures

58.55%

51.57%

Purchased Services

$879,147

$1,010,909

% of Total Expenditures

30.06%

31.42%

All Other Expenditures

$332,922

$546,974

% of Total Expenditures

11.38%

17.00%

TOTAL NET ASSETS

$811,448

$1,043,984

INVESTMENT IN CAPITAL ASSETS

$95,957

$119,093

     Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT 

During Audit Period:  Honorable Carol Steinman

Currently:  Honorable Carol Steinman

The Regional Office of Education #12 did not comply with certain statutory requirements.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

CONTROLS OVER COMPLIANCE WITH LAWS AND REGULATIONS

The Illinois School Code (105 ILCS 5/3-14.11) requires the Regional Superintendent to examine at least once each year all books, accounts, and vouchers of every school treasurer in her educational service region, and if she finds any irregularities in them, to report them at once, as directed by the School Code.

The Regional Office of Education #12 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in the educational service region.  Regional Office officials noted they believe the mandate is outdated and that they are satisfying the intent of the statute by other reviews they undertake.  This mandate has existed in its current form since at least 1953.         

The Illinois School Code (105 ILCS 5/3-5) also requires the Regional Superintendent to present under oath or affirmation to the county board at its meeting in September and as nearly quarterly thereafter as it may have regular or special meetings, a report of all her acts as county superintendent, including a list of all the schools visited with the dates of visitation.  This mandate has existed in its current form since at least 1953.

The Regional Office of Education #12 did not present at the September county board meetings, and as nearly quarterly thereafter, a report of all her acts including a list of all the schools visited and dates of visitation.  (Finding 06-01, pages 12-13)

The Regional Office of Education #12 accepted the recommendation to comply with the statutory requirements.  The Regional Office responded that with regards to compliance with 105 ILCS 5/3-14.11, the Illinois Association of Regional Superintendents of Schools and the Illinois State Board of Education have agreed to seek legislation to remove duplicative and/or obsolete sections of the Illinois School Code.  Both parties believe that 105 ILCS 5/3-7 of the Illinois School Code contains a more current, thorough, and comprehensive requirement concerning a public school district’s financial transactions by the Regional Superintendent.  As a result, the two parties working together will seek legislation to repeal this section of the Illinois School Code.  

With regards to 105 ILCS 5/3-5, the Regional Superintendent plans to present, under oath or affirmation to the county board at its meeting in September and as nearly quarterly thereafter, reports of all her acts as Regional Superintendent, including a list of all the schools visited with the dates of visitation.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education #12’s financial statements as of June 30, 2006 are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JRB

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were West & Company, LLC.