REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #32

 

IROQUOIS/KANKAKEE 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                          1

Total last audit                          3

Repeated from last audit           0

 

Release Date:

July 27, 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 #32 did not timely include indirect cost reimbursements in drawdown requests for the Title IV- Safe and Drug Free Schools – Reduce Alcohol Abuse grant. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 
 

                                                                                   

REGIONAL OFFICE OF EDUCATION #32

IROQUOIS/KANKAKEE COUNTIES

 

FINANCIAL AUDIT

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

For The Year Ended June 30, 2004

 

 

 

 

FY 2004

FY 2003

TOTAL REVENUES

$5,096,841

$6,359,221

Local Sources

$767,143

$327,493

% of Total Revenues

15.05%

5.15%

State Sources

$1,497,356

$4,307,924

% of Total Revenues

29.38%

67.74%

Federal Sources

$2,832,342

$1,723,804

% of Total Revenues

55.57%

27.11%

 

TOTAL EXPENDITURES

$5,415,033

$6,416,232

Salaries and Benefits

$2,820,732

$2,469,409

% of Total Expenditures

52.09%

38.49%

Purchased Services

$1,604,198

$1,072,439

% of Total Expenditures

29.62%

16.71%

All Other Expenditures

$990,103

$2,874,384

% of Total Expenditures

18.28%

44.80%

 

 

 

TOTAL NET ASSETS1

$1,254,801

$1,572,993

 

 

 

INVESTMENT IN CAPITAL ASSETS1

 

$4,833

 

$9,189

 

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 Kay Pangle

Currently:  Honorable Kay Pangle

 

 

 

 

 

 

 

 

 

 

 

 


The Regional Office of Education #32 did not timely include indirect cost reimbursements in drawdown requests for the Title IV- Safe and Drug Free Schools – Reduce Alcohol Abuse grant. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

 

DELAY IN DRAWDOWN OF INDIRECT COSTS

 

           The Regional Office of Education #32 did not timely include indirect cost reimbursements in drawdown requests for the Title IV- Safe and Drug Free Schools – Reduce Alcohol Abuse grant.  Indirect costs for the project year ended September 20, 2003 amounted to $9,382, and the indirect costs for the period October 2003 through May 2004 amounted to $4,145.  These amounts were drawn down on May 17, 2004 upon the auditor’s notification.

 

           The Title IV- Safe and Drug Free Schools – Reduce Alcohol Abuse grant budget allows for the reimbursement of indirect costs based on the restricted indirect cost rate established by the School Business and Support Services Division of the Illinois State Board of Education.  These funds are used to cover payroll, purchasing, and technology support services provided by the Regional Office to project staff.  To minimize the time between the disbursement and collection of funds, as well as to properly and timely account for the program costs, indirect costs should be included in each drawdown for costs of the project.  Regional Office officials noted that staff in charge of the drawdown was waiting for guidelines in computing the indirect costs for reimbursement.  (Finding 04-1, pages 13 and 14)

 

           The Regional Office of Education #32 agreed with the auditor’s recommendation stating that since the audit, the Regional Office has implemented the practice of including the indirect cost portion of the grant with every drawdown. 

       

 

AUDITORS’ OPINION

 

       Our auditors state the Regional Office of Education #32’s financial statements as of June 30, 2004 are fairly presented in all material respects.

 

 

 

 


WILLIAM G. HOLLAND, Auditor General

 

WGH:JRB

 

 

 

SPECIAL ASSISTANT AUDITORS

 

            Our special assistant auditors were E.C. Ortiz & Co., LLP.