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believe the mandate is outdated and that they are satisfying the intent of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. The Regional Superintendent submitted to
each county board his annual report and presented the budget to the
Boone County
board on September 8, 2005 and to the
Winnebago County
board on September 29, 2005. The
annual report included statistics on major areas of activities of the ROE,
including the inspections of school buildings within the region. Details of the dates of visits and other
statistics are provided upon request.
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 Office of Education performed
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 12-14)
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 Superintendent stated that he meets with members of the Boone County
and Winnebago County boards to present budget requests and related
information. The ROE’s annual report
is presented to both county boards in December. The Regional Superintendent is available
for any other meetings deemed necessary by the county boards.
CONTROLS OVER PROPERTY RECORDS AND TRANSACTIONS
The Regional Office of
Education #4 did not maintain adequate controls over property records and
transactions. During the testing of 10
property items from the property listing, auditors noted that the serial
numbers of 5 items were not in the property listing and the serial numbers of
2 items did not match the serial numbers in the property listings.
Also, in a detailed testing of
equipment purchases, there were two computer purchases for business partners/staff
totaling $3,756 that were incorrectly recorded or not reimbursed in a timely
manner. One purchase for $1,223 was paid by the ROE
on September 22, 2005 and not fully reimbursed by the business partner/staff
until December 20, 2005. In the other
instance, a computer purchase for $2,533 was recorded as a capital
expenditure when paid by the ROE and as service income when the reimbursement
was received. The transaction should
have been recorded as a receivable.
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.
Sound business practices also
require that disbursements made as an advance be reimbursed on a timely
basis. Generally accepted accounting
principles require that these transactions be accounted for with no net asset
effect. (Finding 06-2, pages 15-17)
The Regional Office accepted the
recommendation stating that it will continue to work to improve and refine
the inventory control system and that there is total awareness of the
importance of having a completely accurate fixed assets list.
AUDITORS’ OPINION
Our auditors state the Regional
Office of Education #4’s financial statements as of June 30, 2006 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.
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