REPORT DIGEST REGIONAL OFFICE OF EDUCATION #11 CLARK, COLES, CUMBERLAND,
DOUGLAS, EDGAR, MOULTRIE AND SHELBY COUNTIES FINANCIAL AUDIT (In Accordance with the For the Year Ended: June 30, 2009 Summary of Findings: Total this audit 1 Total last audit 2 Repeated from last audit 1 Release Date: February 11, 2010
State of Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the
Report contact: Office of the Auditor
General (217) 82-6046 or TTY (888)
261-2887 This Report Digest and Full
Report is also available on the worldwide web at http://www.auditor.illinois.gov |
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SYNOPSIS
{Expenditures and Revenues are summarized on the reverse page.} |
FINANCIAL AUDIT
For The Year Ended June
30, 2009
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FY 2009
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FY 2008
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TOTAL REVENUES |
$2,674,178 |
$2,503,521 |
Local Sources |
$516,209 |
$544,298 |
% of Total Revenues |
19.30% |
21.74% |
State Sources |
$1,403,257 |
$1,333,057 |
% of Total Revenues |
52.47% |
53.25% |
Federal Sources |
$754,712 |
$626,166 |
% of Total Revenues |
28.22% |
25.01% |
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TOTAL EXPENDITURES |
$2,722,838 |
$2,477,053 |
Salaries and Benefits |
$1,504,961 |
$1,364,438 |
% of Total Expenditures |
55.27% |
55.08% |
Purchased Services |
$472,559 |
$371,522 |
% of Total Expenditures |
17.36% |
15.00% |
All Other Expenditures |
$745,318 |
$741,093 |
% of Total Expenditures |
27.37% |
29.92% |
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TOTAL NET ASSETS |
$704,293 |
$752,953 |
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INVESTMENT IN
CAPITAL ASSETS |
$8,781 |
$13,535 |
Percentages
may not add due to rounding. |
REGIONAL
SUPERINTENDENT |
During Audit Period: Honorable John McNary Currently: Honorable Nik Groothuis |
The Regional Office
of Education #11 did not have sufficient internal controls
over the financial reporting process. |
FINDINGS, CONCLUSIONS AND RECOMMENDATIONSControls
Over Financial Statement Preparation
The Regional Office of Education #11
is required to maintain a system of controls over the preparation of
financial statements in accordance with generally accepted accounting
principles (GAAP). Regional Office
internal controls over GAAP financial reporting should include adequately trained
personnel with the knowledge and expertise to prepare and/or thoroughly
review GAAP based financial statements to ensure that they are free of
material misstatements and include all disclosures as required by the
Governmental Accounting Standards Board (GASB). The Regional Office of Education #11
did not have sufficient internal controls over the financial reporting
process. While the Regional Office
maintains controls over the processing of most accounting transactions, there
are not sufficient controls over the preparation of the GAAP based financial
statements for management or employees in the normal course of performing
their assigned functions to prevent or detect financial statement
misstatements and disclosure omissions in a timely manner. For example, auditors, in their review of
the Regional Office’s accounting records, noted the following:
According to Regional Office
officials, they did not have adequate funding to hire and/or train their
accounting personnel in order to comply with these requirements. (Finding 09-01,
pages 12a-12b) This finding was first reported in 2007. The auditors recommended that, as
part of its internal control over the preparation of its financial
statements, including disclosures, the Regional Office of Education #11
should implement a comprehensive preparation and/or review procedure to
ensure that the financial statements, including disclosures, are complete and
accurate. Such procedures should be
performed by a properly trained individual(s) possessing a thorough
understanding of applicable generally accepted accounting principles, GASB
pronouncements, and knowledge of the Regional Office of Education’s
activities and operations. The Regional Office of Education #11
responded that it understands the nature of this finding and believes that
this circumstance is not unusual in an organization of its size. The Regional Office accepts the degree of
risk associated with the condition and believes that seeking additional
accounting expertise in the form of another accounting firm or appropriately
trained individual to prepare and/or review financial statements would reduce
funds available to provide educational services for the schools in the
region. To help address the lack of
“sufficient internal controls over the financial reporting process,” the
Regional Office will seek appropriate training for its bookkeeping staff. (For
previous Regional Office response, see Digest Footnote #1.) AUDITORS’ OPINION Our auditors state the Regional Office of Education #11’s financial statements as of June 30, 2009 are fairly presented in all material respects. _____________________________________ WILLIAM
G. HOLLAND, Auditor General WGH:KJM SPECIAL ASSISTANT AUDITORS Our special assistant auditors were Kemper CPA Group, LLP. #1: Controls Over Financial
Statement Preparation - Previous Regional Office Response In
its prior response in 2008, the Regional Office of Education #11 responded it understands the nature of this finding
and believes that this circumstance is not unusual in an organization of its
size. The Regional Office accepts the
degree of risk associated with the condition and believes that seeking
additional accounting expertise in the form of another accounting firm or
appropriately trained individual to prepare and/or review financial
statements would reduce funds available to provide educational services for
the schools in the region. To help
address the lack of “sufficient internal controls over the financial
reporting process,” the Regional Office will seek appropriate training for
its bookkeeping staff. |
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