Illinois Regional Office of Education #19 2002 Audit

REPORT DIGEST

REGIONAL OFFICE OF EDUCATION # 19

DUPAGE COUNTY

FINANCIAL AUDIT

For the Year Ended:

June 30, 2002

Summary of Findings:

Total this audit 3
Total last audit 5
Repeated from last audit 3

Release Date:
March 11, 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 # 19 has not been spending all the interest it has allocated to the respective grant funds.

The Regional Office of Education # 19’s general fixed asset physical inventory list, from grant purchases, does not include the information necessary to prepare the required Schedule of Changes in General Fixed Assets by Function and Activity.

The Regional Office of Education # 19 has money due to other entities sitting in its Making the Linc ($15,113), State Drug Education Initiative ($4,365), and Restitution Funds ($63,045).

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

REGIONAL OFFICE OF EDUCATION # 19
DUPAGE COUNTY
FINANCIAL AUDIT
For The Year Ended June 30, 2002

	FY 2002	FY 2001
TOTAL REVENUES	^1$4,108,333	$4,229,359
Local sources	$979,107	$964,382
% of Total Revenues	23.83%	22.80%
State Sources	^1$3,093,226	$2,976,042
% of Total Revenues	75.29%	70.37%
Federal Sources	$36,000	$288,935
% of Total Revenues	.88%	6.83%
TOTAL EXPENDITURES	^1$4,005,623	$3,964,013
Salaries and Benefits	^1$1,957,832	$1,605,994
% of Total Expenditures	48.88%	40.51%
Purchased Services	$1,596,629	$1,491,475
% of Total Expenditures	39.86%	37.63%
All Other Expenditures	$451,162	$866,544
% of Total Expenditures	11.26%	21.86%
COST OF PROPERTY AND EQUIPMENT	$914,981	$780,861
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 totals include on-behalf payments ($172,231). On-behalf payments were not included in Fiscal Year 2001. * Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Berardo DeSimone
Currently: Honorable Berardo DeSimone

The Regional Office of Education # 19 has not been spending all the interest it has allocated to the respective grant funds.

The Regional Office of Education # 19’s general fixed asset physical inventory list does not include the information necessary to prepare the required Schedule of Changes in General Fixed Assets by Function and Activity.

The Regional Office of Education # 19 has money due to other entities sitting in its Making the Linc, State Drug Initiative, and Restitution Funds.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

ALLOCATION OF INTEREST

The Regional Office of Education # 19 has not been spending all the interest it has allocated to the respective grant funds. The unspent interest money totals $13,818 for the year ended June 30, 2002.

If funds from two or more sources are accounted for in one bank account, the Regional Office of Education # 19 must allocate, on a reasonable basis, a portion of the interest earned on that bank account to each of those sources. The Illinois Grant Funds Recovery Act states that the interest earned on grant funds must be expended for grant purposes within the grant period or returned to the grantor. (Finding 02-1, page 10)

The Regional Office of Education # 19 accepted the recommendation and stated they are taking a proactive approach to see that the interest is expended for grant purposes or for allowable administrative expenses.

ACCOUNTIG FOR FIXED ASSETS BY FUNCTION AND ACTIVITY

The Regional Office of Education # 19’s general fixed asset physical inventory list, from grant purchases, does not include the information necessary to prepare the required Schedule of Changes in General Fixed Assets by Function and Activity. However, the Statement of General Fixed Assets and Schedule of General Fixed Assets by Function and Activity have been prepared.

Generally accepted accounting principles require the Schedule of Changes in General Fixed Assets by Function and Activity to be included in general-purpose financial statements. (Finding 02-2, page 11)

The Regional Office of Education # 19 accepted the recommendation to review old fixed asset purchases from grant funds and develop a system to identify and record grant purchases by function and activity.

FUNDS DUE TO OTHER ENTITIES

The Regional Office of Education # 19 has money due to other entities sitting in its Making the Linc ($15,113), State Drug Education Initiative ($4,365), and Restitution Funds ($63,045).

All funds that are due to other entities should be dispersed by DuPage County Regional Office of Education # 19. (Finding 02-3, page 12)

The Regional Office of Education # 19 accepted the recommendation to determine the sources of the money in the Making the Linc, State Drug Initiative, and Restitution Funds and disburse the money to the intended recipients.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education # 19’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.