REPORT DIGEST

INTERMEDIATE SERVICE CENTER # 2

WEST COOK

FINANCIAL AUDIT

For the Year Ended:
June 30, 2002

Summary of Findings:

Total this audit 1
Total last audit 0
Repeated from last audit 0

Release Date:
February 6, 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
  • Our auditors state the Intermediate Service Center # 2’s financial statements as of June 30, 2002 are fairly presented in all material respects. However, the auditors note that as of June 30, 2002, the Center’s total liabilities exceed total assets by $403,407 which raises substantial doubt about the Intermediate Service Center’s ability to continue as a going concern. However, the Intermediate Service Center # 2’s Board believes that the actions presently being taken to revise operating requirements provide the opportunity for the Intermediate Service Center to continue as a going concern.
  • Capital leases are not being recorded at cost on the detail schedule of general fixed assets. Only current payments are being recognized on the schedule.

 

 

{Expenditures and Activity Measures are summarized on the reverse page.}

 

INTERMEDIATE SERVICE CENTER # 2
WEST COOK
FINANCIAL AUDIT
For The Year Ended June 30, 2002

FY 2002

FY 2001
TOTAL REVENUES

$5,735,638

$8,242,510

Local sources

$3,080,841

$5,826,348

% of Total Revenues

53.71%

70.69%

State Sources

$2,588,146

$2,336,082

% of Total Revenues

45.12%

28.34%

Federal Sources

$66,651

$80,080

% of Total Revenues

1.16%

.97%
TOTAL EXPENDITURES

$6,375,476

$9,111,613

Salaries and Benefits

$2,929,062

$1,763,208

% of Total Expenditures

45.94%

19.35%

Purchased Services

$2,938,416

$6,047,389

% of Total Expenditures

46.09%

66.37%

All Other Expenditures

$507,998

$1,301,016

% of Total Expenditures

7.97%

14.28%
COST OF PROPERTY AND EQUIPMENT

$615,028

$423,229

Note: Fiscal Year 2001 data was obtained from audits of ROEs conducted under the direction of the Illinois State Board of Education.
* Percentages may not add due to rounding.
EXECUTIVE DIRECTOR
During Audit Period: Gretchen Alexander
Currently: Gretchen Alexander
 

 

 

 

 

 

 

Capital leases are not being recorded at cost on the detail schedule of general fixed assets. Only current payments are being recognized on the schedule.

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

INACCURATE GENERAL FIXED ASSET SCHEDULE

Capital leases are not being recorded at cost on the detail schedule of general fixed assets. Only current payments are being recognized on the schedule. All general fixed asset purchases, including capital leases, should be recorded at cost. (Finding 02-1, page 8)

The Intermediate Service Center # 2’s personnel accepted the auditor’s recommendation to record the total capital cost of general fixed assets "purchased" under capital leases for the year ended June 30, 2002 and for all applicable future years. The Intermediate Service Center #2’s personnel responded that the detail schedule of general fixed assets has been adjusted and the correct total general fixed asset cost has been recognized in the general fixed assets account group section of the June 30, 2002 general-purpose financial statements.

AUDITORS’ OPINION

Our auditors state the Intermediate Service Center # 2’s financial statements as of June 30, 2002 are fairly presented in all material respects. However, the auditors note that as of June 30, 2002, the total liabilities exceed total assets by $403,407 which raises substantial doubt about the Intermediate Service Center’s ability to continue as a going concern. However, the Intermediate Service Center’s #2’s Board believes that the actions presently being taken to revise operating requirements provide the opportunity for the Intermediate Service Center to continue as a going concern.

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WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Lindgren, Callihan, Van Osdol & Co., Ltd.