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SYNOPSIS · The Regional Office of Education #4 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region. · The Regional Office of Education #4 did not record equipment purchases totaling $11,285 in the property records.
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REGIONAL
OFFICE OF EDUCATION #4
FINANCIAL AUDIT
For
The Year Ended June 30, 2005
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FY 2005 |
FY 2004 |
TOTAL REVENUES |
$6,778,458 |
$5,380,472 |
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Local Sources |
$1,189,854 |
$857,372 |
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% of Total Revenues |
17.55% |
15.93% |
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State Sources |
$2,942,690 |
$3,211,262 |
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% of Total Revenues |
43.41% |
59.68% |
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Federal Sources |
$2,645,914 |
$1,311,838 |
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% of Total Revenues |
39.03% |
24.38% |
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TOTAL EXPENDITURES |
$6,344,480 |
$5,093,070 |
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Salaries and Benefits |
$2,819,943 |
$2,508,515 |
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% of Total Expenditures |
44.45% |
49.25% |
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Purchased Services |
$2,247,705 |
$1,549,165 |
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% of Total Expenditures |
35.43% |
30.42% |
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All Other Expenditures |
$1,276,832 |
$1,035,390 |
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% of Total Expenditures |
20.13% |
20.33% |
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TOTAL NET ASSETS |
$3,271,608 |
$2,837,630 |
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INVESTMENT IN
CAPITAL ASSETS |
$58,229 |
$66,747 |
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Percentages may not add
due to rounding |
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REGIONAL
SUPERINTENDENT |
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During Audit Period: Honorable Richard Fairgrieves Currently: Honorable Richard Fairgrieves |
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The Regional Office
of Education #4 did not examine at least once each year all books, accounts,
and vouchers of every school treasurer in its educational service region.
The Regional Office of Education #4 did not record equipment purchases totaling $11,285 in the property records.
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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. (Finding 05-1, pages 12-14) The Regional Superintendent responded that after reviewing ROE audits for twenty years, he had never seen this Section of the Code mentioned either as a comment or a concern, and that he had searched diligently for the “Standard” the Regional Office would need to meet in order to comply with the finding. The Superintendent further stated that this Section of the School Code is over a hundred years old and was enacted before the school districts were required to have an annual financial audit by a certified public accountant. The Superintendent also cites Section 5/3-7 of the School Code which he feels provides no doubt that the ROEs have the authority to conduct an audit of a school district if the need arises. However, the Superintendent states that to place this financial burden on the people of Illinois without reasonable cause seems an unreasonable interpretation of this section of the School Code. The auditors commented that this requirement exists in statute and the statute specifies what the Regional Office must do to comply with this mandate. Recognizing that the law has been in effect for over 50 years and much has changed over that time, the auditors included in their recommendation that the Regional Superintendent should seek to have the mandate repealed if he believes it is outdated. PROPERTY RECORDS NOT UPDATED TIMELY The Regional Office of Education #4 did not record equipment purchases totaling $11,285 in the property records. Ten percent (2 out of 20) of the items tested for equipment purchased during the year were not recorded in the property records. The Regional Office of Education Accounting Manual requires each ROE to maintain detailed fixed asset records for both accounting and insurance purposes for fixed assets costing $500 and above. Generally accepted accounting principles require that an inventory of all fixed assets be maintained and property records be updated to reflect all existing items as of year-end. (Finding 05-2, pages 15-16) The Regional Office accepted the recommendation stating that the Office Manager will be responsible for the inventory of all property for the Regional Office of Education and Kishwaukee Intermediate Delivery System. Items over $500.00 will be tagged before they are put into service. The listing of the items on the inventory will reflect the delivery sequence and be kept on file with the Office Manager.
AUDITORS’ OPINION
Our auditors state the Regional Office
of Education #4’s financial statements as of June 30, 2005 are fairly stated
in all material respects.
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WILLIAM G. HOLLAND, Auditor General
WGH:KJM:ro
SPECIAL
ASSISTANT AUDITORS
Our special assistant auditors were E.C. Ortiz & Co., LLP. |
