REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #8

 

CARROLL, JO DAVIESS AND STEPHENSON COUNTIES

 

FINANCIAL AND COMPLIANCE AUDIT

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

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                   1

Total last audit                   1

Repeated from last audit    1

 

Release Date:

February 24, 2004

 

 

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 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 #8 did not have proper internal controls in place for the accounting and financial duties. One person performs almost all the accounting duties, such as recording receipts and checks, making deposits, and completing the bank reconciliation.

 

 

 

 

 

 

 

 

 

 

 

 

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

 

                     REGIONAL OFFICE OF EDUCATION #8

           CARROLL, JO DAVIESS AND STEPHENSON COUNTIES

 

                     FINANCIAL AND COMPLIANCE AUDIT

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

                           For The Year Ended June 30, 2003

 

FY 2003

FY 2002

TOTAL REVENUES

$4,500,086

$3,901,664

Local sources

$2,165,615

$1,781,480

% of Total Revenues

48.12%

45.66%

State Sources

$1,547,536

$2,048,615

% of Total Revenues

34.39%

52.51%

Federal Sources

$786,935

$71,569

% of Total Revenues

17.49%

1.83%

 

TOTAL EXPENDITURES

$4,649,197

$4,031,964

Salaries and Benefits

$2,785,549

$2,523,854

% of Total Expenditures

59.91%

62.60%

Purchased Services

$1,035,188

$859,685

% of Total Expenditures

22.27%

21.32%

All Other Expenditures

$828,460

$648,425

% of Total Expenditures

17.82%

16.08%

 

 

 

COST OF PROPERTY AND EQUIPMENT

$224,681

$223,120

 

*Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT

During Audit Period: Honorable John Lang

Currently: Honorable John Lang

 

 

 

 

 

 

The Regional Office of Education #8 did not have proper internal controls in place for the accounting and financial duties.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

SEGREGATION OF DUTIES

The Regional Office of Education #8 does not have proper internal controls in place for the accounting and financial duties. One person performs almost all the accounting duties, such as recording receipts and checks, making deposits, and completing the bank reconciliation. As a result, all of those aspects of internal control that rely on an adequate segregation of duties are, for all practical purposes, missing in Regional Office of Education #8.

The Regional Superintendent of Schools is responsible for establishing and maintaining an internal control system to prevent errors and irregularities (Finding 03-1, page 11). This finding is repeated from our 2002 audit.

The Regional Office of Education #8 accepted the recommendation, responding that additional controls to counteract this condition will be implemented when a new part-time secretary is hired. (For previous Regional Office response, see Digest Footnote #1.)

 

AUDITORS’ OPINION

Our auditors state the Regional Office of Education #8’s financial statements as of June 30, 2003 are fairly stated in all material respects.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KJM:ro

 

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Clifton Gunderson LLP.

 

DIGEST FOOTNOTES

#1: SEGREGATION OF DUTIES – Previous Regional Office Response

In its prior response in 2002, the Regional Office accepted the finding and agreed to maintain additional control procedures. The Regional Office stated an adequate segregation of duties problem would remain due to the limited number of staff.

Complete Regional Office responses to prior findings are available upon request from the Auditor General’s Office.