REPORT DIGEST

REGIONAL OFFICE OF EDUCATION # 25

HAMILTON AND JEFFERSON COUNTIES

FINANCIAL AUDIT
For the Year Ended:
June 30, 2002

Summary of Findings:

Total this audit 2
Total last audit 1
Repeated from last audit 0

Release Date:
February 11, 2003

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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 # 25 did not maintain accurate rates for Teachers Retirement System and insurance withholdings on payroll records.
  • The Regional Office of Education # 25 had deposits in the bank in excess of the amount pledged as collateral by the financial institution.

 

 

 

 

 

 

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

 

REGIONAL OFFICE OF EDUCATION # 25
HAMILTON AND JEFFERSON COUNTIES
FINANCIAL AUDIT
For The Year Ended June 30, 2002

FY 2002

FY 2001
TOTAL REVENUES

1$3,502,610

$3,505,346

Local sources

$861,025

$891,028

% of Total Revenues

24.58%

25.42%

State Sources

1$2,469,767

$2,077,533

% of Total Revenues

70.51%

59.27%

Federal Sources

$171,818

$536,785

% of Total Revenues

4.91%

15.31%
TOTAL EXPENDITURES

1$3,576,873

$3,378,018

Salaries and Benefits

1$2,179,625

$1,985,109

% of Total Expenditures

60.94%

58.77%

Purchased Services

$985,824

$1,066,774

% of Total Expenditures

27.56%

31.58%

All Other Expenditures

$411,424

$326,135

% of Total Expenditures

11.50%

9.65%
COST OF PROPERTY AND EQUIPMENT

$301,787

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 the Fiscal Year 2001.
2 The Fiscal Year 2001 financial statement opinion was qualified due to the lack of General Fixed Asset Account Group as required by generally accepted accounting principles.
* Percentages may not add due to rounding.
REGIONAL SUPERINTENDENT
During Audit Period: Honorable Paul Cross
Currently: Honorable Paul Cross
 

 

 

 

The ROE did not maintain accurate rates for Teachers Retirement System and insurance withholdings in its payroll records.

 

 

 

 

 

 

 

The ROE had deposits in the bank in excess of the amount pledged as collateral by financial institutions.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

WITHHOLDING RATES FOR TEACHERS RETIREMENT SYSTEM AND INSURANCE

Teachers Retirement System and insurance withholdings rates are not changed in the payroll system in a timely manner. The Regional Office of Education # 25 maintains a miscellaneous overage/underage account for overpayments and underpayments that arise from the changes.

Withholding rates must be kept accurate in the Regional Office of Education # 25’s payroll system (Finding 02-1, page 12).

Regional Office of Education # 25 agreed with the recommendation to maintain accurate withholding rates in the payroll system to ensure that an employee does not overpay or underpay their portion of withholdings.

CASH COLLATERAL

The Regional Office of Education # 25 had deposits in the bank that exceeded the amount the financial institution pledged as collateral by approximately $65,000 during one month in Fiscal Year 2002.

Deposits in excess of the federally insured limit should be covered by collateral held by the financial institutions’ trust departments in the ROE’s name (Finding 02-2, page 13).

The Regional Office of Education # 25 agreed with the recommendation to increase the amount of collateral pledged by the bank to cover their deposits. The ROE also agreed to periodically monitor the amount of collateral to ensure that an adequate level is maintained.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education # 25’s financial statements as of June 30, 2002 are fairly presented in all material respects.

 

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WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Kemper CPA Group, LLP.