REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #25

HAMILTON AND JEFFERSON COUNTIES

FINANCIAL AND COMPLIANCE AUDIT
(In Accordance with the Single Audit Act and OMB Circular A-133)

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                     4

Total last audit                     2

Repeated from last audit      1

 

Release Date:

February 10, 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 #25 did not maintain accurate rates for Teachers Retirement System and insurance withholdings on payroll records.
  • The Regional Office of Education #25 did not record $179,730 of receipts and disbursements that passed through the Distributive Fund checking account.
  • The Regional Office of Education #25 did not file two projects’ expenditure reports by their due dates, causing the Illinois State Board of Education to freeze the projects.

 

 

 

 

 

 

 

 

 

 

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

 

 

                  REGIONAL OFFICE OF EDUCATION #25

                HAMILTON AND JEFFERSON COUNTIES

 

                   FINANCIAL AND COMPLIANCE AUDIT

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

                           For The Year Ended June 30, 2003

 

FY 2003

FY 2002

TOTAL REVENUES

$3,293,320

$3,502,610

Local sources

$1,052,275

$861,025

% of Total Revenues

31.95%

24.58%

State Sources

$2,084,389

$2,469,767

% of Total Revenues

63.29%

70.51%

Federal Sources

$156,656

$171,818

% of Total Revenues

4.76%

4.91%

 

TOTAL EXPENDITURES

$3,401,409

$3,576,873

Salaries and Benefits

$2,152,054

$2,179,625

% of Total Expenditures

63.27%

60.94%

Purchased Services

$916,657

$985,824

% of Total Expenditures

26.95%

27.56%

All Other Expenditures

$332,698

$411,424

% of Total Expenditures

9.78%

11.50%

 

 

 

COST OF PROPERTY AND EQUIPMENT

$349,847

$301,787

 

* Percentages may not add due to rounding.
REGIONAL SUPERINTENDENT

During Audit Period: Honorable P.E. Cross

Currently: Honorable P.E. Cross

 

 

 

 

The Regional Office of Education #25 did not change rates for Teachers Retirement System and insurance withholdings in its payroll records in a timely manner.

 

 

 

 

 

 

 

 

 

The Regional Office of Education #25 did not record $179,730 of receipts and disbursements that passed through the Distributive Fund checking account.

 

 

 

 

 

 

 

 

The Regional Office of Education #25 did not file expenditure reports for two projects timely, causing the Illinois State Board of Education to freeze the projects’ funding.

 

 

 

 

 

 

 

 

 

 

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 03-1, page 12). This finding is repeated from our 2002 audit.

Regional Office of Education #25 agreed with the recommendation to maintain accurate withholding rates in the payroll system to ensure that employees do not overpay or underpay their portion of withholdings. (For previous Regional Office response, see Digest Footnote #1.)

 

PROPERLY RECORDING RECEIPTS AND DISBURSEMENTS

The Regional Office of Education #25 did not record $179,730 of receipts and disbursements that passed through the Distributive Fund checking account. Generally Accepted Accounting Principles require financial information to be complete. (Finding 03-2, page 13).

The Regional Office of Education #25 agreed with the recommendation to reconcile the Illinois State Board of Education disbursement reports to the general ledger monthly to ensure that all receipts and disbursements have been properly recorded.

 

 

EXPENDITURE REPORTS

The Illinois State Board of Education froze the following two projects because their expenditure reports were not filed by their due dates:
  • Title I – Reading First Part B SEA Funds; and
  • ROE/ISC School Improvement.

The Illinois State Board of Education requires timely filing of grant expenditure reports (Finding 03-3, page 14).

The Regional Office of Education #25 accepted the recommendation to establish policies to ensure all grant expenditure reports are filed by their due dates.

OTHER FINDINGS

The remaining finding is less significant and is reportedly being given attention by the Regional Office of Education #25. We will review progress toward the implementation of our recommendations during the next audit.

 

AUDITORS’ OPINION

Our auditors state the Regional Office of Education #25’s financial statements as of June 30, 2003 are fairly presented in all material respects.

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KJM:ro

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Kemper CPA Group, LLP.

 

 

DIGEST FOOTNOTES

#1: ALLOCATION OF OVER/UNDER PAYMENTS RESULTING FROM CHANGES IN RATES – Previous Regional Office Response

In its prior response in 2002, the Regional Office accepted the finding and agreed to maintain accurate withholding rates.

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