REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #31

KANE COUNTY

FINANCIAL AUDIT

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

For the Year Ended:

June 30, 2004

Summary of Findings:

Total this audit                         1

Total last audit                         2

Repeated from last audit           0

Release Date:

April 28, 2005

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 is also available on

the worldwide web at

http://www.state.il.us/auditor

SYNOPSIS

·        The Regional Office of Education #31 did not deposit excess funds from the Workshop Fund into an enterprise fund but, rather, deposited them in a special revenue fund.

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

FY 2004

FY 2003

TOTAL REVENUES

$4,134,447

$3,995,014

Local Sources

$1,037,827

$1,031,149

% of Total Revenues

25.10%

25.81%

State Sources

$750,758

$2,161,724

% of Total Revenues

18.16%

54.11%

Federal Sources

$2,345,862

$802,141

% of Total Revenues

56.74%

20.08%

TOTAL EXPENDITURES

$3,820,596

$3,570,883

Salaries and Benefits

$1,635,892

$1,692,953

% of Total Expenditures

42.82%

47.41%

Purchased Services

$1,412,413

$939,366

% of Total Expenditures

36.97%

26.31%

All Other Expenditures

$772,291

$938,564

% of Total Expenditures

20.21%

26.28%

TOTAL NET ASSETS¹

$3,486,783

$3,172,932

INVESTMENT IN CAPITAL ASSETS¹

$264,250

$345,670

1         In fiscal year 2004, Regional Offices of Education implemented Government Accounting Standards Board (GASB) Statement No. 34 which established a new financial reporting model for state and local governments.  Government-wide financial statements are prepared using full accrual accounting that reports Total Net Assets.   The fiscal year 2003 ending general fixed assets have been restated to reflect the changes required as part of the implementation of GASB Statement No. 34.  Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT 

During Audit Period: Honorable Clem Mejia

Currently:  Honorable Clem Mejia

The Regional Office of Education #31 did not deposit excess funds from the Workshop Fund into an enterprise fund.  The funds were maintained in a special revenue fund instead.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

NONCOMPLIANCE WITH ADMINISTRATIVE CODE

         The Illinois Administrative Code (23 Ill. Adm. Code 110.115) requires that fees for conferences, workshops, materials and other costs charged for discretionary activities not required by law or rule are to be determined on a cost-recovery basis.  Excess funds resulting from registrations or requests for materials/ services beyond the anticipated cost-recovery basis shall be deposited in an enterprise fund to be used solely to reduce the cost of similar items or to cover costs incurred due to less-than-anticipated registrations or requests for materials/services. 

       The Regional Office of Education #31’s Workshop Fund had a fund balance of $530,941 and $486,375 as of June 30, 2004 and 2003, respectively.  Total expenditures for fiscal year 2004 and 2003 amounted to $19,794 and $14,662, respectively.  The excess funds were not deposited in an enterprise fund but were maintained in the special revenue fund.  According to Regional Office management, the excess funds were not used to reduce the cost of future workshops due to an uncertainty about funding for these activities on a year-to-year basis.  Regional Office management also stated they were unaware of the requirement to deposit the excess fees in an enterprise fund. (04-1, pages 12-13)

       The Regional Office of Education #31 accepted the recommendation to deposit excess funds in an enterprise fund, which will be created for use in fiscal year 2005.

AUDITORS’ OPINION

     Our auditors state the Regional Office of Education #31’s financial statements as of June 30, 2004 are fairly stated in all material respects.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

        Our special assistant auditors were E.C. Ortiz & Co., LLP.