REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #12

CLAY/CRAWFORD/ JASPER/LAWRENCE/ RICHLAND 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                          1

Total last audit                          1

Repeated from last audit           0

Release Date:

March 16, 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 #12 did not comply with certain statutory administrative requirements.

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

FY 2004

FY 2003

TOTAL REVENUES

$2,917,950

$2,923,477

Local Sources

$643,748

$574,078

% of Total Revenues

22.06%

19.64%

State Sources

$1,127,131

$1,668,886

% of Total Revenues

38.63%

57.09%

Federal Sources

$1,147,071

$680,513

% of Total Revenues

39.31%

23.28%

TOTAL EXPENDITURES

$2,992,508

$2,869,363

Salaries and Benefits

$1,626,192

$1,338,308

% of Total Expenditures

54.34%

46.64%

Purchased Services

$889,371

$1,195,051

% of Total Expenditures

29.72%

41.65%

All Other Expenditures

$476,945

$336,004

% of Total Expenditures

15.94%

11.71%

TOTAL NET ASSETS¹

$1,171,507

$1,246,065

INVESTMENT IN CAPITAL ASSETS¹

$134,102

$164,516

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 Samuel White (through April 30, 2004),

       Honorable Carol Steinman (May 1, 2004 through June 30, 2004)

Currently:  Honorable Carol Steinman

The Regional Office of Education #12 did not comply with certain statutory administrative requirements.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

COMPLIANCE WITH STATUTORY REQUIREMENTS

            The Regional Office of Education #12 did not comply with certain statutory administrative requirements.  For example, the Illinois School Code (105 ILCS 5/3-12) requires that on or before January 1 of each year, the Regional Superintendent shall publish in a newspaper of general circulation published in the region or post in each school building under his/her jurisdiction, certain information regarding the Office’s Institute Fund.  According to Regional Office management, they were unaware of the statute.

        The School Code (105 ILCS 5/3-6) requires the Regional Superintendent to report, in writing, to the county board, on or before January 1 of each year, stating: (1) the balance on hand at the time of the last report, and all receipts since that date, with the sources from which they were derived; (2) the amount distributed to each of the school treasurers in his or her county; and (3) any balance on hand.  Regional Office management stated that they relied on receiving the audited financial statements to send to the county boards; however, the audited financial statements were not received by the Regional Office of Education #12 prior to January 1, 2004. (Finding 04-1, pages 13 and 14)

         The Regional Office of Education #12 accepted the recommendation to publish the required Institute Fund report, as well as submit the required financial reports, by the statutory deadlines. 

AUDITORS’ OPINION

      Our auditors state the Regional Office of Education # 12’s financial statements as of June 30, 2004 are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JRB

SPECIAL ASSISTANT AUDITORS

        Our special assistant auditors were West & Company, LLC.