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During disbursement testing, significant deficiencies in internal controls over
disbursements and procurements were noted.
Funds from the Early Intervention and Education-to-Careers programs paid for audits
which were not required by the Illinois Department of Human Services and the Department of
Labor, since an A-133 single audit is conducted.
During testing, five travel reimbursement vouchers out of forty tested were found to
have been paid without evidence of a supervisor’s or program director’s
authorization. |
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
INADEQUATE CONTROL OVER PURCHASING
During disbursement testing, significant deficiencies in internal controls over
disbursements and procurements were noted. These significant deficiencies are as follows:
- No documentation of Regional Superintendent review prior to disbursement even though he
indicated that such reviews occur;
- No clear assignment of authority for issuing purchase orders or contracting for goods
and services was evident;
- No documentation of review of procurement for compliance with laws, regulations and
contractual provisions; and
- Insufficient or no documentation of procedures for cost or price analysis.
In order to comply with grant, contractual and legal requirements, clear purchasing
procedures are required to be designed in order to provide the ROE with reasonable
assurance of compliance with such requirements. (Finding 02-4, pages 15-16)
Our auditors recommended the Regional Office of Education #13 develop
procurement/purchasing procedures that require, at a minimum, the following:
- Obtaining documentation that supports authorization of purchases by the Regional
Superintendent, his assistant, or other appropriate employees, such as a program
coordinator;
- Acknowledging and documenting receipt of goods or services in accordance with the
Regional Office of Education #13’s requirements;
- Verifying amounts charged for goods and services based on complete and adequate
documentation of the amounts being paid;
- Documenting disbursements, such as initialing and dating the invoices; and
- Performing a review of all supporting documentation by the Regional Superintendent or
his assistant prior to any funds being disbursed.
The Regional Office of Education #13’s personnel accepted the auditor’s
recommendation.
ALLOWABLE COSTS
Funds from the Early Intervention Program paid for an audit which was not required by
the Illinois Department of Human Services since the Regional Office of Education falls
under the A-133 single audit requirements. Also, the Education-to-Careers funds paid for
an audit which was not required by the U.S. Department of Labor, since an A-133 single
audit was conducted. (Findings 02-5 and 02-6, pages 17, 18)
The Regional Office of Education #13 had been informed by the grantor agency that an
audit was required and did not realize the region-wide A-133 audit met the requirements
set forth by the grantor agencies.
The Regional Office of Education #13’s personnel accepted the auditor’s
recommendation to discontinue these future audits.
LACK OF DISBURSEMENT AUTHORIZATION ON DOCUMENTATION
During testing, five travel reimbursement vouchers out of forty tested were found
to have been paid without evidence of a supervisor’s or program director’s
authorization. Supporting documentation should have evidence of authorization for payment
by the appropriate official. (Finding 02-8, page 20)
The Regional Office of Education #13’s personnel accepted the auditor’s
recommendation to develop procedures that would ensure that individuals, such as the
program director, submit disbursement authorization along with travel reimbursement
vouchers to support approval of expenditures.
AUDITORS’ OPINION
Our auditors state the Regional Office of Education
#13’s financial statements as of June 30, 2002 are fairly presented in all material
respects.
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WILLIAM G. HOLLAND, Auditor General
WGH:JRB:ro
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors were Kemper CPA Group, LLP.
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