FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
RECONCILIATION OF POOLED CASH ACCOUNT
The Regional Office of Education #14 maintains a pooled cash account for all funds. The total of the transactions within the funds was not equal to the reconciled cash account by $1,778.
The total of all funds in a pooled cash account should equal the total of all transactions in the general ledger (Finding 03-1, page 10).
The Regional Office of Education #14 accepted the auditor’s recommendation to reconcile the pooled cash account funds to the total of all transactions in the pooled cash account on a monthly basis.
LACK OF BUDGET FOR CERTIFICATION RECEIPTS
The Regional Office of Education #14 does not create a budget for teacher certification receipts. Teacher certification receipts are one of the largest funding sources. The average certificate receipts between FY02 and FY03 was $520,000 per year.
Budgets are an integral part of a system of internal controls. Budgets also help to monitor the effective use of funds (Finding 03-2, page 11). This finding is partially repeated from our 2002 audit. The Regional Superintendent has taken corrective action with regard to the reconciliation of teacher certification receipts per the general ledger to the certification applications which was reported in this finding for the year ended June 30, 2002.
The Regional Office of Education #14 accepted the recommendation and agreed to create a five year budget beginning with the next five year certification cycle which begins in FY04. (For previous Regional Office response see Digest Footnote #1.)
INCOMPLETE FIXED ASSET SUB-LEDGER
The Regional Office of Education #14’s fixed asset list does not include the date of purchase/disposition or the source of funds with which the assets were purchased.
The Illinois Administrative Code requires ROEs to maintain an inventory of equipment acquired with funds received directly from the State. This listing should include, at a minimum, the cost, date of purchase/ disposition and source of funds with which the assets were purchased (Finding 03-5, page 14). This finding is repeated from our 2002 audit.
The Regional Office of Education #14 accepted the recommendation to research the date of purchase/
disposition and the source of funds with which the assets were purchased. (For previous Regional Office response, see Digest Footnote #2.)
OTHER FINDINGS
The remaining findings are reportedly being given attention by the Regional Office of Education #14. We will review progress toward the implementation of our recommendations during the next audit.
AUDITORS’ OPINION
Our auditors state the Regional Office of Education #14’s financial statements as of June 30, 2003 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 Clifton Gunderson LLP.
DIGEST FOOTNOTES
#1: LACK OF BUDGET FOR CERTIFICATION RECEIPTS – Previous Regional Office Response
In its prior response in 2002, the Regional Office disagreed with the portion of the recommendation pertaining to the creation of an annual budget for the certification receipts, noting that the Accounting Manual prepared and provided by the Illinois State Board of Education does not require a budget for the Institute Funds. The auditors responded the budgets are an integral part of internal control and can help monitor use of funds.
#2: INCOMPLETE FIXED ASSET SUB-LEDGER – Previous Regional Office Response
In its prior response in 2002, the Regional Office responded that they would maintain a list of fixed assets. The Regional Office also stated they would indicate the location of the assets in the fixed asset listing.
Complete Regional Office responses to prior findings are available upon request from the Auditor General’s Office.
