REPORT DIGEST

REGIONAL OFFICE OF EDUCATION # 17

DEWITT, LIVINGSTON, AND MCLEAN 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 3
Total last audit 6
Repeated from last audit 3

Release Date:
April 16, 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 # 17 did not post prior year audit adjusting entries.
  • Detailed records for the General Fixed Asset Account Group were not updated for current year additions.
  • The Regional Office of Education # 17 tracks funds by revenue source rather than by program expenditures making it difficult to determine the operational cost of each grant program.

 

 

 

 

 

 

 

 

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

REGIONAL OFFICE OF EDUCATION # 17
DEWITT, LIVINGSTON, AND MCLEAN COUNTIES
FINANCIAL AUDIT
For The Year Ended June 30, 2002

FY 2002

FY 2001
TOTAL REVENUES

1$5,978,868

$5,771,355

Local sources

$3,285,451

$3,134,024

% of Total Revenues

54.95%

54.30%

State Sources

1$1,995,159

$1,912,897

% of Total Revenues

33.37%

33.14%

Federal Sources

$698,258

$724,434

% of Total Revenues

11.68%

12.55%
TOTAL EXPENDITURES

1$6,009,727

$5,777,253

Salaries and Benefits

1$3,993,207

$3,522,286

% of Total Expenditures

66.45%

60.97%

Purchased Services

$1,059,066

$1,190,599

% of Total Expenditures

17.62%

20.61%

All Other Expenditures

$957,454

$1,064,368

% of Total Expenditures

15.93%

18.42%
COST OF PROPERTY AND EQUIPMENT

$748,813

$672,083

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 ($173,492). These on-behalf payments were not included in Fiscal Year 2001.
* Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT
During Audit Period: Honorable Eugene Jontry
Currently: Honorable Eugene Jontry
 

 

 

 

The Regional Office of Education # 17 did not post prior year audit adjusting entries.

 

 

 

 

 

 

 

 

 

The Regional Office of Education # 17 did not update detailed records for the General Fixed Asset Account Group for current year additions.

 

 

 

 

 

 

The Regional Office of Education # 17 tracked funds by revenue source rather than by program expenditures.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

PRIOR YEAR AUDIT ADJUSTMENTS NOT POSTED

The Regional Office of Education # 17 maintains its financial records on a cash basis of accounting. Prior year adjusting entries, primarily for the conversion of cash basis financial statements to the modified accrual basis of accounting had not been posted to the general ledger. These prior year adjusting entries were recorded during this audit.

Generally accepted accounting principles require financial statements to be presented on the modified accrual basis of accounting. (Finding 02-1, page 11)

The Regional Office of Education # 17 accepted the recommendation and will secure and post all audit adjustments for the current year’s audit, which includes prior year adjustments.

DETAILED RECORDS FOR GENERAL FIXED ASSET ACCOUNT GROUP

The Regional Office of Education # 17 did not update detailed records for the General Fixed Asset Account Group for current year additions.

General fixed assets should be supported by a detailed record, which includes the cost. (Finding 02-2, page 12)

The Regional Office of Education # 17 accepted the auditor’s recommendation to maintain and update the detailed fixed asset records each year. The Regional Office is in the process of transferring all existing lists of general fixed assets into a software program.

ACCOUNTING FOR GRANT EXPENDITURES IN EXCESS OF GRANT REVENUES

Some of the Regional Office of Education # 17’s grants have more than one funding source. Rather than transferring other sources of revenue into the grant fund to pay the grant expenses, the Regional Office of Education # 17 transferred the expenses out of the grant funds and into the general operating fund. The Regional Office of Education # 17 is unable to determine the true operational cost of each grant if a portion of the expenses attributable to the grant is transferred out of the grant fund and into the general operation account. (Finding 02-3, page 13)

The Regional Office of Education # 17 accepted the recommendation to begin tracking funds by program expenditures rather than by revenue source.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education # 17’s financial statements as of June 30, 2002 are fairly presented in all material respects.

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Kemper CPA Group, LLP.