REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #11

CLARK, COLES, CUMBERLAND, DOUGLAS, EDGAR, MOULTRIE AND SHELBY COUNTIES

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                          2

Total last audit                          3

Repeated from last audit           0

Release Date:

February 24, 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 #11 offset revenues and expenditures of $22,265 within the System of Support fund.

·        The Regional Office of Education #11 did not adequately monitor sub-recipients.  The Regional Office conducted some programmatic monitoring of sub-recipients, but did not obtain and review copies of the audit reports for the sub-recipients of the Standards Aligned Classroom-Statewide Professional Development Program.

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

FY 2004

FY 2003

TOTAL REVENUES

$3,093,301

$3,201,050

Local Sources

$446,384

$456,179

% of Total Revenues

14.43%

14.25%

State Sources

$682,462

$1,253,493

% of Total Revenues

22.06%

39.16%

Federal Sources

$1,964,455

$1,491,378

% of Total Revenues

63.51%

46.59%

TOTAL EXPENDITURES

$3,183,275

$3,206,071

Salaries and Benefits

$1,213,480

$1,191,135

% of Total Expenditures

38.12%

37.15%

Purchased Services

$366,901

$603,352

% of Total Expenditures

11.53%

18.82%

All Other Expenditures

$1,602,894

$1,411,584

% of Total Expenditures

50.35%

44.03%

TOTAL NET ASSETS¹

$674,342

$764,316

INVESTMENT IN CAPITAL ASSETS¹

$33,142

$36,572

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 John McNary

Currently:  Honorable John McNary

The Regional Office of Education #11 offset revenues and expenditures of $22,265 within the System of Support fund.

The Regional Office of Education #11 did not adequately monitor
sub-recipients.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

REPORTING OF REVENUES AND EXPENDITURES

        The Regional Office of Education #11 offset revenues and expenditures of $22,265 within the System of Support fund.

        Regional Offices of Education are required to maintain accounting records in accordance with generally accepted accounting principles.  Generally accepted accounting principles require reporting of revenues and expenditures in gross amounts, not net of reimbursements (Finding 04-1, page 12). 

        The Regional Office of Education #11 accepted the recommendation to post all revenue in revenue accounts and all expenditures in expenditure accounts in gross amounts as required by generally accepted accounting principles.

INADEQUATE MONITORING OF SUB-RECIPIENTS

        The Regional Office of Education #11 did not adequately monitor sub-recipients.  The Regional Office conducted some programmatic monitoring of sub-recipients, but did not obtain and review copies of the audit reports for the sub-recipients of the Standards Aligned Classroom-Statewide Professional Development Program. 

        The Regional Office of Education #11, as a pass-through entity, is required to monitor the activities of a nonfederal entity that expends federal awards received from the Regional Office of Education.  Monitoring of sub-recipients should include a review of the sub-recipients’ annual audits to ensure that the sub-recipients’ systems of internal controls over programs are adequate.  The pass-through entity should ensure sub-recipients take timely and appropriate corrective action on all audit findings (Finding 04-2, page 13).

         The Regional Office of Education #11 accepted the recommendation to obtain copies of annual audit reports for all sub-recipients, review them for findings related to compliance with laws, regulations, and grant contract provisions, and take appropriate actions when required.

AUDITORS’ OPINION

        Our auditors state that the Regional Office of Education #11’s financial statements as of June 30, 2004 are fairly presented in all material respects.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

        Our special assistant auditors were Kemper CPA Group, LLP.