Illinois Regional Office of Education #16 2002 Audit

REPORT DIGEST
REGIONAL OFFICE OF EDUCATION # 16

DEKALB COUNTY

FINANCIAL AUDIT

For the Year Ended:
June 30, 2002

Summary of Findings:

Total this audit 2
Total last audit 2
Repeated from last audit 2

Release Date:
January 30, 2003

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
Attn: Records Manager
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 # 16 did not have proper segregation of duties in its accounting function.

The Regional Office of Education # 16 did not distribute some flow-through monies in a timely manner.

{Expenditures and Activity Measures are summarized on the reverse page.}

REGIONAL OFFICE OF EDUCATION # 16
DEKALB COUNTY
FINANCIAL AUDIT
For The Year Ended June 30, 2002

	FY 2002	FY 2001
TOTAL REVENUES	^1$273,106	$89,553
Local sources	$47,320	$43,442
% of Total Revenues	17.33%	48.51%
State Sources	^1$225,786	$46,111
% of Total Revenues	82.67%	51.49%
Federal Sources	$0	$0
% of Total Revenues	0%	0%
TOTAL EXPENDITURES	^1$269,609	$94,933
Salaries and Benefits	^1$163,824	$0
% of Total Expenditures	60.76%	0%
Purchased Services	$44,434	$23,462
% of Total Expenditures	16.48%	24.71%
All Other Expenditures	$61,351	$71,471
% of Total Expenditures	22.76%	75.29%
COST OF PROPERTY AND EQUIPMENT	²	²
Note: Fiscal Year 2001 data was obtained from audits of ROEs conducted under the direction of the Illinois State Board of Education. ¹ Fiscal Year 2002 amounts include on-behalf payments ($163,824). These on-behalf payments were not included in Fiscal Year 2001. ² General Fixed Assets of the Region were purchased using the governmental resources of the county and were not presented. * Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Thomas Weber
Currently: Honorable Thomas Weber

The Regional Office of Education # 16 did not have proper segregation duties in its accounting function.

The Regional Office of Education # 16 did not disperse some flow-through monies in a timely manner.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

SEGREGATION OF DUTIES IN THE ACCOUNTING FUNCTION

One person has primary responsibility for most of the accounting and financial duties at the Regional Office of Education # 16. As a result, all of those aspects of internal control which rely on an adequate segregation of duties are, for all practical purposes, missing in Regional Office of Education # 16.

The Regional Superintendent of Schools is responsible for establishing and maintaining an internal control system to prevent errors and irregularities. (Finding 02-1, page 7)

The Regional Office of Education # 16 accepted the recommendation to continue to implement additional controls to counteract the segregation of duties condition, but noted that an adequate segregation of duties problem will remain, due to the limited number of staff.

UNTIMELY DISTRIBUTION OF FLOW-THROUGH MONIES

The Regional Office of Education # 16 did not distribute some of the flow-through monies to school districts in a timely fashion. As of June 30, 2002, there was approximately $10,355 of funds not disbursed and reconciled. The Regional Office of Education # 16 did not reconcile the pooled cash account where the monies were held. (Finding 02-2, page 8)

The Regional Office of Education # 16 accepted the recommendation to reconcile the pooled cash account timely so that flow-through monies can be distributed timely to the school districts.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education # 16’s financial statements as of June 30, 2002 are fairly presented in all material respects.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Clifton Gunderson LLP.