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Regional Office officials noted they believe this mandate is outdated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 four years instead of annually.
While the Illinois Public School Accreditation Process Compliance
Component document completed at these inspections includes many of the items
delineated in 105 ILCS 5/3-14.5, it does not include a review of the methods
of instruction and the textbooks used in the district.
Finally, 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 ROE did submit an
annual financial report to its counties but the report did not contain all of
the items mentioned in the School Code.
(Finding 06-01, pages 15-17)
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 stated they
will report, on a quarterly basis, the official acts of the Regional
Superintendent.
LACK OF COST ALLOCATION PLAN
The
Regional Office of Education #26 did not maintain a cost allocation plan in
accordance with OMB Circular A-87 for indirect costs. The Regional Office invoices the
various grants and programs it administers for central service activities,
including support salaries and related benefits, accounting and secretarial
services, and space rent, based on the grants’ budgeted costs (rather than as
part of a cost allocation plan). Such
salaries and benefits are allowable under Circular A-87. However, where employees work on multiple
activities or cost objectives, a distribution of their salaries or wages is
required to be documented in accordance with the provisions of OMB Circular
A-87 or be included in the ROE’s cost allocation plan.
Costs are allocable to federal awards if
the goods or services involved are chargeable or assignable to the award in
accordance with the relative benefits received. Where an accumulation of indirect costs
will ultimately result in charges to a Federal Award, a cost allocation plan
is required as described in Attachments C, D and E of OMB Circular A-87, Cost
Principles for State, Local, and Indian Tribal Governments. (Finding 06-02, pages 18-20). This finding was first reported in 2003.
The Regional Office of Education accepted
the recommendation noting they have developed a time study plan that seeks to
ascertain how much time each of the organization’s approximately sixty
employees spend in performance of duties related to the grants. The time study is based on a template the
Regional Office received from the Illinois State Board of Education. The time study is being completed on a
daily basis by the Regional Office of Education employees and will cover
approximately one year. It is the hope
of the management of the Regional Office of Education that the effect of this
time study will be to give documentation that will substantiate the costs for
salaries allocated to the various grants they administer and give grant
writers a much more quantitative rationale for the requests they make for
salaries in future grant applications.
A second aspect of costs allocated
to various grants by the ROE is those costs related to various clerical expenses,
such as for copying and telephone expense.
A significant amount of those costs are currently being adequately
documented. To assure a proper charge
is being made for rent costs, the ROE proposes to measure the areas used for
offices for the various grants and charge the grants their fair share on a
proportional basis. (For previous Regional Office response, see Digest
Footnote #1.)
AUDITORS’ OPINION
Our auditors state the
Regional Office of Education #26’s financial statements as of June 30, 2006
are fairly presented in all material respects.
_____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:KJM:ro
SPECIAL
ASSISTANT AUDITORS
Our
special assistant auditors were Ginoli & Company Ltd.
DIGEST
FOOTNOTE
#1: LACK OF COST
ALLOCATION PLAN – Previous Regional Office Response
In
its prior response in 2005, the Regional Office accepted the recommendation,
responding it had contacted a local certified public accounting firm (CPA) to
address cost allocations.
Complete
Regional Office responses to prior findings are available upon request from
the Auditor General’s Office.
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