REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #17

 

DEWITT, LIVINGSTON, AND MCLEAN COUNTIES

 

FINANCIAL AUDIT

(In Accordance with the
Single Audit Act and OMB Circular A-133)

 

For the Year Ended:

June 30, 2007

 

Summary of Findings:

 

Total this audit                 1

Total last audit                 5

Repeated from last audit  0

 

Release Date:

June 26, 2008

 

 

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 and Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

SYNOPSIS

 

 

 

  • The Regional Office of Education #17 does not have sufficient internal controls over the financial reporting process.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

REGIONAL OFFICE OF EDUCATION #17

DEWITT, LIVINGSTON, AND MCLEAN COUNTIES

 

FINANCIAL AUDIT

(In Accordance with the Single Audit Act and OMB Circular A-133)

For The Year Ended June 30, 2007

 

 

 

FY 2007

FY 2006

TOTAL REVENUES

$5,597,204

$5,690,750

Local Sources

$2,893,855

$3,414,465

% of Total Revenues

51.70%

60.00%

State Sources

$2,197,146

$1,520,833

% of Total Revenues

39.25%

26.72%

Federal Sources

$506,203

$755,452

% of Total Revenues

9.04%

13.28%

 

TOTAL EXPENDITURES

$5,533,544

$5,469,109

Salaries and Benefits

$2,911,513

$2,816,068

% of Total Expenditures

52.62%

51.49%

Purchased Services

$2,311,031

$2,315,380

% of Total Expenditures

41.76%

42.34%

All Other Expenditures

$311,000

$337,661

% of Total Expenditures

5.62%

6.17%

 

 

 

TOTAL NET ASSETS

$1,947,450

$1,883,790

 

 

 

INVESTMENT IN CAPITAL ASSETS

 

$498,065

 

$485,921

 

        Percentages may not add due to rounding.

 

 

REGIONAL SUPERINTENDENT 

During Audit Period:  Honorable G. Lawrence Daghe

Currently:  Honorable G. Lawrence Daghe
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #17 does not have sufficient internal controls over the financial reporting process.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

 

Controls Over Financial Statement Preparation

 

         The Regional Office of Education #17 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 #17 does not have sufficient internal controls over the financial reporting process.  The Regional Office maintains their accounting records on the cash basis of accounting. 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.

 

         In their review of the Regional Office’s accounting records, auditors noted that the Regional Office did not maintain adequate internal controls over the processing of all financial transactions and numerous adjustments were required to present financial statements in accordance with generally accepted accounting principles.

 

         The auditors recommended that, as part of its internal control over the preparation of its financial statements, including disclosures, the Regional Office of Education #17 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. (Finding 07-1, pages 12-13)

 

         The Regional Office of Education #17 responded that it understands the nature of this finding and realizes that this circumstance is not unusual in an organization of this size.  The Regional Office will seek the assistance of the county auditor to provide the accounting expertise to prepare and/or review the financial statements for the office.  This should help to control the additional costs of such preparations.  The Regional Office staff have also contacted their accounting systems provider to develop reporting software that would assist all ROEs in meeting these requirements.

 

 

AUDITORS’ OPINION

 

         Our auditors state the Regional Office of Education #17’s financial statements as of June 30, 2007 are fairly presented in all material respects.   

 

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:KJM

 

 

SPECIAL ASSISTANT AUDITORS

 

         Our special assistant auditors were Clifton Gunderson, LLP.