REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #25

HAMILTON AND JEFFERSON COUNTIES

FINANCIAL AUDIT

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

For the Year Ended:

June 30, 2004

Summary of Findings:

Total this audit                          2

Total last audit                          4

Repeated from last audit           1

Release Date:

February 17, 2005

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 TTY (888) 261-2887

This Report Digest is also available on

the worldwide web at

http://www..state.il.us/auditor

SYNOPSIS

·        The Regional Office of Education #25 had deficiencies in internal controls over disbursements and procurements.

·        The Regional Office of Education #25 did not publish or post required information about its Institute Fund.

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

FY 2004

FY 2003

TOTAL REVENUES

$3,525,395

$3,293,320

Local Sources

$1,080,338

$1,052,275

% of Total Revenues

30.64%

31.95%

State Sources

$1,732,642

$2,084,389

% of Total Revenues

49.15%

63.29%

Federal Sources

$712,415

$156,656

% of Total Revenues

20.21%

4.76%

TOTAL EXPENDITURES

$3,420,759

$3,401,409

Salaries and Benefits

$2,042,934

$2,152,054

% of Total Expenditures

59.72%

63.27%

Purchased Services

$1,192,823

$916,657

% of Total Expenditures

34.87%

26.95%

All Other Expenditures

$185,002

$332,698

% of Total Expenditures

5.41%

9.78%

TOTAL NET ASSETS¹

$478,352

$373,716

$875,684

INVESTMENT IN CAPITAL ASSETS¹

$72,410

$72,709

1         In fiscal year 2004, Regional Offices of Education implemented Government Accounting Standards Board (GASB) Statement No. 34 which established a new financial reporting model for state and local governments.  Government-wide financial statements are prepared using full accrual accounting that reports Total Net Assets.  The fiscal year 2003 ending general fixed assets have been restated to reflect the changes required as part of the implementation of GASB Statement No. 34.

              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 had deficiencies in internal controls over disbursements and procurements.

The Regional Office of Education #25 did not publish or post required information about its Institute Fund.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

INTERNAL CONTROLS OVER DISBURSEMENTS AND PURCHASES

        During disbursement testing, deficiencies in the Regional Office of Education #25’s internal controls over disbursements and procurements were noted.

·        In one instance, there was no authorizing signature on an authorization for payment form. 

·        In one instance, an invoice was not marked “paid” when paid. 

·        In one instance, there was no supporting documentation. 

·        In two instances, amounts were coded to the incorrect account number.

       The Regional Superintendent of Schools is responsible for establishing and maintaining an internal control system to prevent errors and irregularities. (Finding 04-1, page 12a) This finding is repeated from our 2003 audit.

        Regional Office of Education #25 agreed with the recommendation to ensure that internal control policies and procedures over purchases and disbursements are followed.  (For previous Regional Office response, see Digest Footnote #1.)

CONTROLS OVER COMPLIANCE WITH LAWS AND REGULATIONS

        The Illinois School Code (105 ILCS 5/3-12) requires that on or before January 1 of each year, the Regional Superintendent shall publish in a newspaper of general circulation published in the region or post in each school building under his/her jurisdiction, certain information regarding the Office’s Institute Fund.  According to the Regional Office, while the publication/posting requirement was complied with in prior years, it was not done in 2003 due to an oversight. (Finding 04-2, page 12b)

       The Regional Office of Education #25 accepted the recommendation to comply with statutory requirements.

AUDITORS’ OPINION

        Our auditors state the Regional Office of Education #25’s financial statements as of June 30, 2004 are fairly presented in all material respects.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

        Our special assistant auditors were Kemper CPA Group, LLP.

DIGEST FOOTNOTES

#1: INTERNAL CONTROLS OVER DISBURSEMENTS AND PURCHASES– Previous Regional Office Response

In its prior response in 2003, the Regional Office accepted the finding and agreed to ensure that internal control policies and procedures over purchases and disbursements are followed. 

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