REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #16

 

DEKALB COUNTY

 

FINANCIAL AUDIT

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                     2

Total last audit                     2

Repeated from last audit      2

 

Release Date:

February 18, 2004

 

 

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 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 Revenues are summarized on the reverse page.}

 

 

                        REGIONAL OFFICE OF EDUCATION #16

                                           DEKALB COUNTY

 

                                          FINANCIAL AUDIT

                               For The Year Ended June 30, 2003

 

FY 2003

FY 2002

TOTAL REVENUES

$357,295

$273,106

Local sources

$117,277

$47,320

% of Total Revenues

32.82%

17.33%

State Sources

$240,018

$225,786

% of Total Revenues

67.18%

82.67%

Federal Sources

$0

$0

% of Total Revenues

0%

0%

 

TOTAL EXPENDITURES

$343,792

$269,609

Salaries and Benefits

$245,916

$163,824

% of Total Expenditures

71.53%

60.76%

Purchased Services

$39,087

$44,434

% of Total Expenditures

11.37%

16.48%

All Other Expenditures

$58,789

$61,351

% of Total Expenditures

17.10%

22.76%

 

 

 

COST OF PROPERTY AND EQUIPMENT

1

1

 

1 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 Gilbert E. Morrison

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

The Regional Office of Education #16 does not have the proper internal controls in place for the accounting and financial duties. One person performs almost all accounting duties, such as recording receipts and checks, making deposits, and completing the bank reconciliation. 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 03-1, page 8). This finding is repeated from our 2002 audit.

The Regional Office of Education #16 accepted the recommendation to implement additional controls. For example, the Regional Superintendent will sign off on all invoices as approved for payment. The bookkeeper will prepare the monthly bank reconciliations and the Superintendent will review and sign off on them to indicate his approval. (For previous Regional Office Response, see Digest Footnote #1.)

 

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, 2003, there was $9,760 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 03-2, page 9). This finding is repeated from our 2002 audit.

The Regional Office of Education #16 accepted the recommendation to reconcile the pooled cash account monthly and distribute the money on a timely basis. (For previous Regional Office response, see Digest Footnote #2.)

 

AUDITORS’ OPINION

Our auditors state the Regional Office of Education #16’s financial statements as of June 30, 2003 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.

 

DIGEST FOOTNOTES

#1: SEGREGATION OF DUTIES – Previous Regional Office Response

In its prior response in 2002, the Regional Office accepted the finding and agreed to maintain additional control procedures but stated an adequate segregation of duties problem would remain due to the limited number of staff.

#2: FAILURE TO DISTRIBUTE FLOW-THROUGH MONIES TIMELY –Previous Regional Office Response

In its prior response in 2002, the Regional Office accepted the finding and agreed to distribute the flow-through monies to the school districts and other entities and to reconcile the pooled cash account in a timely manner.

Complete Regional Office responses to prior findings are available upon request from the Auditor General’s Office.