REPORT DIGEST REGIONAL OFFICE OF EDUCATION #20 EDWARDS/GALLATIN/ HARDIN/POPE/SALINE/
WABASH/WAYNE/WHITE COUNTIES FINANCIAL AUDIT (In Accordance with the For the Year Ended: June 30, 2007 Summary of Findings: Total this audit 2 Total last audit 1 Repeated from last audit 1 Release Date: July 24, 2008
State of Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
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Report contact: Office of the Auditor
General
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SYNOPSIS
·
The Regional Office of Education #20
had an amount on deposit at a financial institution that exceeded the
federally insured limit and amount pledged as collateral by $7,494. {Expenditures and Revenues are
summarized on the reverse page.} |
REGIONAL OFFICE OF EDUCATION #20
FINANCIAL AUDIT
For The Year Ended June 30, 2007
|
FY 2007 |
FY 2006 |
TOTAL REVENUES |
$2,674,057 |
$2,522,050 |
Local Sources |
$445,077 |
$491,857 |
% of Total Revenues |
16.64% |
19.50% |
State Sources |
$1,554,666 |
$826,304 |
% of Total Revenues |
58.14% |
32.76% |
Federal Sources |
$674,314 |
$1,203,889 |
% of Total Revenues |
25.22% |
47.73% |
|
||
TOTAL EXPENDITURES |
$2,685,606 |
$2,525,845 |
Salaries and Benefits |
$1,728,486 |
$1,622,067 |
% of Total Expenditures |
64.36% |
64.22% |
Purchased Services |
$788,176 |
$707,694 |
% of Total Expenditures |
29.35% |
28.02% |
All Other Expenditures |
$168,944 |
$196,084 |
% of Total Expenditures |
6.29% |
7.76% |
|
|
|
TOTAL NET ASSETS |
$526,090 |
$537,639 |
|
|
|
INVESTMENT IN
CAPITAL ASSETS |
$68,629 |
$83,812 |
|
||
Percentages may not add due to
rounding. |
REGIONAL
SUPERINTENDENT |
During Audit Period: Honorable Linda Blackman Currently:
Honorable |
The Regional
Superintendent did not present at the September county board meeting, and as
nearly quarterly thereafter, a report of all acts.
The Regional Office of Education #20 had an amount on deposit at a financial institution that exceeded the federally insured limit and amount pledged as collateral by $7,494.
|
FINDINGS, CONCLUSIONS AND RECOMMENDATIONSCONTROLS OVER COMPLIANCE WITH LAWS AND REGULATIONS
Illinois School Code (105 ILCS 5/3-5) requires the Regional Superintendent to present under oath or affirmation to the county board at its meeting in September and as nearly quarterly thereafter as it may have regular or special meetings, a report of all acts as county superintendent, including a list of all the schools visited with the dates of visitation. This mandate has existed in its current form since at least 1953. The
Regional Superintendent did not present at the September county board
meeting, and as nearly quarterly thereafter, a report of all acts including a
list of all the schools visited and dates of visitation. The Regional Superintendent did provide a
brochure of the responsibilities of the Regional Superintendent to the county
boards annually in August or September when the proposed budget is submitted
to the counties for the coming year. (Finding 07-01, page 13) The Regional Office responded that having been made aware of the previous administration not complying with this regulation, it is the Regional Superintendent’s intent to start as soon as possible to comply with the quarterly reports to the various county boards. The portion of this School Code that refers to mandating school visits each year under Sec. 3-14.5 has been repealed this year. However, the Regional Superintendent will still make every effort to visit the schools in his district if at no other time but to do his compliance visits. CASH COLLATERAL The Public Funds Deposit Act (30
ILCS 225/1) gives the authorization for deposits in excess of the federally
insured limit to be covered by pledged collateral held by the financial
institutions’ trust departments in the Regional Office of Education #20’s
name. In addition, prudent business
practice requires that all deposits held by financial institutions for the
Regional Office of Education #20 be adequately covered by depository
insurance or collateral. The Regional Office of Education #20
had an amount on deposit at a financial institution that exceeded the
federally insured limit and amount pledged as collateral by $7,494, at June
30, 2007. Uninsured deposits could
cause a loss to the Regional Office of Education #20 if the bank failed. On June 27, 2007, two deposits
totaling $8,561 were made to the Regional Office of Education #20’s checking
account. While performing fiscal
year-end responsibilities, Regional Office staff did not check the account
balance total at the financial institution with the unsecured amount. The Regional Office of Education #20 has not
asked for pledged securities at that particular financial institution because
it intended to keep the balance under $100,000. (Finding 07-02, page 14) The auditors recommended that the
Regional Office of Education #20 should periodically monitor the amount of
collateral held on deposits to ensure that an adequate amount is maintained. The Regional Office of Education #20 should
also seek an agreement with the bank to automatically pledge securities for
any deposit amounts in excess of the FDIC amount. The Regional Office of Education #20
responded that management agrees with the finding and as soon as the amount
in excess of $100,000 during the bank reconciliations was discovered, it was
promptly corrected. AUDITORS’ OPINION Our auditors state the Regional
Office of Education #20’s financial statements as of June 30, 2007 are fairly
presented in all material respects. _____________________________________ WILLIAM
G. HOLLAND, Auditor General WGH:JRB SPECIAL ASSISTANT AUDITORS Our special assistant auditors were
West & Company, LLC. |