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, 2005

Summary of Findings:

Total this audit                          2

Total last audit                          1

Repeated from last audit           0

Release Date:

July 12, 2006

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 and Full Report is also available on

the worldwide web at

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

SYNOPSIS

·        The Regional Office of Education #32 did not examine at least once each year all books, accounts and vouchers of every school treasurer in the educational service region.

·        For the Local ROE Funds, 8 of 20 (40%) deposit batches representing receipt of GED and workshop fees were not deposited timely from receipt date; $4,683 was deposited more than 30 days after the receipt date. 

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

FY 2005

FY 2004

TOTAL REVENUES

$7,549,780

$5,096,841

Local Sources

$996,458

$767,143

% of Total Revenues

13.20%

15.05%

State Sources

$2,251,776

$1,497,356

% of Total Revenues

29.83%

29.38%

Federal Sources

$4,301,546

$2,832,342

% of Total Revenues

56.98%

55.57%

TOTAL EXPENDITURES

$7,312,569

$5,415,033

Salaries and Benefits

$3,653,812

$2,820,732

% of Total Expenditures

49.97%

52.09%

Purchased Services

$2,135,863

$1,604,198

% of Total Expenditures

29.21%

29.62%

All Other Expenditures

$1,522,894

$990,103

% of Total Expenditures

20.83%

18.28%

TOTAL NET ASSETS

$1,498,046

$1,254,801

INVESTMENT IN CAPITAL ASSETS

$2,146

$4,833

              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 examine at least once each year all books, accounts and vouchers of every school treasurer in the educational service region.

For the Local ROE Funds, 8 of 20 (40%) deposit batches representing receipt of GED fees and workshop fees were not deposited timely from receipt date; $4,683 was deposited more than 30 days after the receipt date. 

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 her educational service region, and if she 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.  (Finding 05-1, pages 12-13)

The Regional Office accepted the recommendation, noting it will seek a legislative solution to this and other obsolete passages.

DEPOSIT OF RECEIPTS

Sound internal controls over cash receipts require that receipts be promptly deposited in the bank.  For the Local ROE Funds, 8 of 20 (40%) deposit batches representing receipt of GED fees and workshop fees were not deposited timely from receipt date; $4,683 was deposited more than 30 days after the receipt date.  (Finding 05-2, pages 14-15)

According to ROE officials, deposit batches cited in this exception are composed of individually small receipt amounts and are mostly related to workshop fees, which are handled differently due to the timing of payments and actual workshop dates. 

The Regional Office accepted the recommendation, noting it will adopt a policy which identifies amounts and the timeframe for deposit of those amounts.

AUDITORS’ OPINION

       Our auditors state the Regional Office of Education #32’s financial statements as of June 30, 2005 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.