REPORT DIGEST REGIONAL OFFICE OF EDUCATION #28 BUREAU/HENRY/STARK COUNTIES FINANCIAL AUDIT (In Accordance with the Single Audit Act
and OMB Circular A-133) For the Year Ended: June 30, 2008 Summary of Findings: Total this audit 1 Total last audit 2 Repeated from last audit 1
Release Date: February 26, 2009
State of
Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the
Report contact:
Office of the Auditor
General
(217) 782-6046 or TTY (888)
261-2887
This Report Digest and Full
Report are also available on
the worldwide web at http://www.auditor.illinois.gov |
|
SYNOPSIS ·
The Regional Office of Education #28 did not have
sufficient internal controls over the financial reporting process. {Expenditures and Revenues are summarized on the reverse page.} |
REGIONAL OFFICE OF
EDUCATION #28
FINANCIAL AUDIT
For The Year Ended June
30, 2008
|
FY 2008
|
FY 2007
|
TOTAL REVENUES |
$2,685,369 |
$2,183,343 |
Local Sources |
$989,713 |
$589,024 |
% of Total Revenues |
36.86% |
26.98% |
State Sources |
$907,619 |
$950,963 |
% of Total Revenues |
33.80% |
43.56% |
Federal Sources |
$788,037 |
$643,356 |
% of Total Revenues |
29.35% |
29.47% |
|
||
TOTAL EXPENDITURES |
$2,661,814 |
$2,180,223 |
Salaries and Benefits |
$943,605 |
$652,819 |
% of Total Expenditures |
35.45% |
29.94% |
Purchased Services |
$253,485 |
$265,076 |
% of Total Expenditures |
9.52% |
12.16% |
All Other Expenditures |
$1,464,724 |
$1,262,328 |
% of Total Expenditures |
55.03% |
57.90% |
|
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TOTAL NET ASSETS |
$321,610 |
$298,055 |
|
||
INVESTMENT IN
CAPITAL ASSETS |
$105,985 |
$107,687 |
Percentages
may not add due to rounding. |
REGIONAL
SUPERINTENDENT |
During Audit Period: Honorable Bruce Dennison Currently: Honorable Bruce Dennison |
The Regional
Office of Education #28 did not have sufficient internal controls over the
financial reporting process.
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FINDINGS, CONCLUSIONS AND RECOMMENDATIONSControls
Over Financial Statement Preparation
The Regional Office of Education #28
is required to maintain a system of controls over the preparation of
financial statements in accordance with generally accepted accounting
principles (GAAP). Regional Office
internal controls over GAAP financial reporting should include adequately
trained personnel with the knowledge and expertise to prepare and/or
thoroughly review GAAP financial statements to ensure that they are free of
material misstatements and include all disclosures as required by the
Governmental Accounting Standards Board (GASB). The Regional Office of Education #28
did not have sufficient internal controls over the financial reporting
process. The Regional Office maintains
their accounting records on the accrual basis of accounting for disbursements
and the cash basis of accounting for receipts. While the Regional Office maintains
controls over the processing of most accounting transactions, there are not
sufficient controls over the preparation of the GAAP based financial
statements for management or employees in the normal course of performing
their assigned functions to prevent or detect financial statement
misstatements and disclosure omissions in a timely manner. In their review of the Regional
Office’s accounting records, auditors noted the following:
According to Regional Office officials,
they did not have adequate funding to hire and/or train their accounting
personnel in order to comply with these requirements. (Finding 08-1, page 15) The auditors recommended that, as
part of its internal control over the preparation of its financial
statements, including disclosures, the Regional Office of Education #28
should implement a comprehensive preparation and/or review procedure to
ensure that the financial statements, including note disclosures, are
complete and accurate. Such procedures
should be performed by a properly trained individual(s) possessing a thorough
understanding of applicable generally accepted accounting principles, GASB
pronouncements, and knowledge of the Regional Office of Education’s
activities and operations. The Regional Office of
Education #28 responded that it will continue to maintain its accounting
records on the accrual basis of accounting for disbursements and the cash
basis of accounting for receipts, as it historically has done. The Regional Office noted that, at the
present time, the additional cost of hiring and training additional staff or
contracting the service outweighs the benefits. The Regional Superintendent and Assistant
Regional Superintendent will review financial transactions and financial
reports on a periodic basis. They noted
that the Regional Office will review, approve, and accept responsibility for
the financial statements and related items.
If additional resources are made available through the State of
AUDITORS’ OPINION Our auditors state the Regional Office of Education #28’s financial statements as of June 30, 2008 are fairly presented in all material respects. _____________________________________ WILLIAM
G. HOLLAND, Auditor General WGH:KJM SPECIAL ASSISTANT AUDITORS Our special assistant auditors were
Ginoli & Company Ltd. |