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 his
educational service region, and if he finds any irregularities in them, to
report them at once, as directed by the School Code.
The
Regional Office 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noted they believe the mandate is outdated and that they are satisfying the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 his 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 did not present at the September county board meeting and as
nearly quarterly thereafter, a report of all his acts including a list of all
the schools visited and dates of visitation.
Finally,
the Illinois School Code (105 ILCS 5/3-14.5) requires the Regional
Superintendent to visit each public school in the county at least once a
year, noting the methods of instruction, the branches taught, the textbooks
used, and the discipline, government and general condition
of the schools.
This mandate has existed in its current form since at least 1953.
The Regional Superintendent performs
compliance inspections for each public school in his region on a rotational
basis every three years instead of annually.
The Illinois Public School Accreditation Process Compliance Component
document completed at these visits includes many of the items delineated in
105 ILCS 5/3-14.5, but does not include a review of the methods of
instruction and the textbooks used in the district. (Finding 06-1, pages
11-13)
The Regional Office 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 and 105 ILCS 5/3-14.5, 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 and 23 Ill. Adm. Code 1.20, respectively, contain
more current, thorough, and comprehensive requirements concerning a public
school district’s financial transactions and visitation of public schools by
the Regional Superintendent. As a
result, the two parties working together will seek legislation to repeal
these two sections of the Illinois School Code.
With
regards to 105 ILCS 5/3-5, the Regional Office agreed with the recommendation
and will request a meeting with the Cook County Board of Commissioners
beginning in September 2007 and quarterly thereafter to report the required
information.
CONTINUATION
AS A GOING CONCERN
The Regional Office of
Education #14’s liabilities exceeded its total net assets by $259,188. On a cash basis of accounting, the Regional
Office has sufficient financial
resources to operate through fiscal year
2007. However, if the Regional Office
continues to operate at the current level without obtaining additional
funding or decreasing expenditures, its ability to continue as a going
concern may be questioned in future years.
All audits conducted in accordance with
generally accepted auditing standards require the auditor to evaluate the
entity’s financial position and contemplate the continuation of the entity as
a going concern.
According to Regional Office officials, the Regional Office of
Education #14 has experienced a significant loss of funding in recent
years. Along with this decreased
funding, there has also been an increase in the Office’s responsibilities
regarding the teacher certification program, causing the Office to hire
additional staff and thus increasing expenditures. Regional Office officials also stated that
the Regional Office of Education #14 is the only Regional Office of Education
in the State that does not receive funding from its respective county. (Finding
6-02, page 14)
The Regional Office of Education agreed with the finding and will
attempt to lower expenditures as well as seek out additional funding sources
in order to continue operations. The
Regional Office noted that it has unsuccessfully attempted to secure funding
from Cook
County each year for over 10 years.
AUDITORS’ OPINION
Our auditors state the Regional Office of Education #14’s financial
statements as of June 30, 2006 are fairly presented in all material respects.
_____________________________________
WILLIAM
G. HOLLAND, Auditor General
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SPECIAL ASSISTANT AUDITORS
Our special assistant
auditors were Clifton
Gunderson, LLP.
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