FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
CONTROLS OVER
COMPLIANCE WITH LAWS AND REGULATIONS
The
Illinois School Code (105 ILCS 5/3-14.11) requires the Regional Superintendent
to examine at least once each year all books, accounts, and vouchers of every
school treasurer in his educational service region, and if he finds any
irregularities in them, to report them at once, as directed by the School
Code.
The Regional Office did not
examine at least once each year all books, accounts, and vouchers of every
school treasurer in the educational service region. Regional Office officials noted they
believe the mandate is outdated and that they are satisfying the intent of
the statute by other reviews they undertake.
This mandate has existed in its current form since at least 1953.
The Illinois School Code (105 ILCS 5/3-14.5)
also requires the Regional Superintendent to visit each public school in the
county at least once a year, noting the methods of instruction, the branches
taught, the textbooks used, and the discipline, government and general
condition of the schools. This mandate
has existed in its current form since at least 1953.
The Regional Superintendent performs
compliance inspections for each public school in his region on a rotational
basis every three years instead of annually.
The Illinois Public School Accreditation Process Compliance Component
document completed at these visits includes many of the items delineated in
105 ILCS 5/3-14.5, but does not include a review of the methods of
instruction and the textbooks used in the district.
Finally, the 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 his 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 Office did not present
at the September county board meeting, and as nearly quarterly thereafter, a
report of all his acts including a list of all the schools visited and dates
of visitation. The Regional
Superintendent does submit an annual report each fall to the county boards in
the region, but does not attend county board meetings quarterly and was
unaware of the specific details required to be provided at the meetings.
(Finding 06-1, pages 12a -12b)
The Regional Office accepted the recommendation to comply with the
statutory requirements. The Regional
Office responded that with regards to compliance with 105 ILCS 5/3-14.11 and
105 ILCS 5/3-14.5, the Illinois Association of Regional Superintendents of
Schools and the Illinois State Board of Education have agreed to seek
legislation to remove duplicative and/or obsolete sections of the Illinois
School Code. Both parties believe that
105 ILCS 5/3-7 of the Illinois School Code and 23 Ill. Adm. Code 1.20, respectively, contain
more current, thorough, and comprehensive requirements concerning a public
school district’s financial transactions and visitation of public schools by
the Regional Superintendent. As a
result, the two parties working together will seek legislation to repeal
these two sections of the Illinois School Code. With regards to 105 ILCS 5/3-5, the
Regional Office agreed with the recommendation to attend the quarterly county
board meetings and report the required information.
INTERNAL
CONTROL OVER DISBURSEMENTS AND PURCHASES
The Regional Office of Education #25 did not have adequate internal
controls over certain disbursements and purchases. The Regional Office made disbursements from
a vendor’s statements instead of the original invoices. As a result, an invoice in the amount of
$48.25 was paid three times and an invoice in the amount of $1,789.48 was
paid twice. The duplicate payments were
credited to the Regional Office’s account with the vendors. In addition, the Regional Office made a
disbursement from copies of two invoices.
The Regional Office of Education #25 also paid total charges exceeding
$10,000 for fiscal year 2006 on a department store credit card. The Regional Office made payments to the
credit card as employees submitted individual receipts rather than from a
reconciled monthly statement. The
Regional Office did not reconcile the monthly statement to ensure all
receipts had been submitted and paid, and were for a legitimate business
purpose. Consequently, the Regional
Office had purchases on the monthly statements for which receipts were not
submitted and no payments were made, resulting in the Regional Office incurring
finance and late charges.
On 8 of 12 monthly statements there were charges where the receipts
had not been turned in for payment and the Regional Office incurred finance
charges of $12.26 and late charges totaling $111.31. In addition, five charges totaling $434.46
had been paid twice.
The Regional Superintendent of Schools is responsible for establishing
and maintaining an internal control system over disbursements and purchases
to prevent errors and fraud. (Finding
06-2, page 12c)
The Regional Office of Education agreed with the finding, responding
that after learning of the internal control deficiencies, the Regional Office
of Education #25 has implemented corrective procedures. Now, all credit card receipts are reconciled
to the credit card statement and payments are made in a timely manner from
the reconciled monthly statements.
AUDITORS’ OPINION
Our auditors state the Regional
Office of Education #25’s financial statements as of June 30, 2006 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.
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