REPORT DIGEST REGIONAL OFFICE OF EDUCATION #38 LOGAN/MASON/MENARD
COUNTIES FINANCIAL AUDIT (In Accordance with the For the Year Ended: June 30, 2005 Summary of Findings: Total this audit 4 Total last audit 1 Repeated from last audit 1 Release Date:
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.state.il.us/auditor |
SYNOPSIS · The Regional Office of Education #38 did not examine at least once each year all books, accounts, and vouchers of every school treasurer in its educational service region. · The Regional Office of Education #38 had several audit adjustments from the prior year audit that were posted to the incorrect fund accounts. · The Regional Office of Education #38 did not reconcile its bank reconciliation to the general ledger. · The Regional Office of Education #38 recorded several different bank accounts under the same general ledger account code.
{Expenditures and Revenues are
summarized on the reverse page.} |
REGIONAL
OFFICE OF EDUCATION #38
FINANCIAL AUDIT
For
The Year Ended June 30, 2005
|
FY 2005 |
FY 2004 |
TOTAL REVENUES |
$665,879 |
$634,621 |
Local Sources |
$142,096 |
$118,678 |
% of Total Revenues |
21.34% |
18.70% |
State Sources |
$457,143 |
$267,029 |
% of Total Revenues |
68.65% |
42.08% |
Federal Sources |
$66,640 |
$248,914 |
% of Total Revenues |
10.01% |
39.22% |
|
||
TOTAL EXPENDITURES |
$662,977 |
$636,736 |
Salaries and Benefits |
$356,289 |
$347,779 |
% of Total Expenditures |
53.74% |
54.62% |
Purchased Services |
$292,760 |
$274,314 |
% of Total Expenditures |
44.16% |
43.08% |
All Other Expenditures |
$13,928 |
$14,643 |
% of Total Expenditures |
2.10% |
2.30% |
|
|
|
TOTAL NET ASSETS |
$197,323 |
$194,421 |
|
|
|
INVESTMENT IN
CAPITAL ASSETS |
$25,898 |
$31,924 |
|
||
Percentages may not add due to rounding. |
REGIONAL
SUPERINTENDENT |
During Audit Period: Honorable Jean Anderson Currently: Honorable Jean Anderson |
The Regional Office
of Education #38 did not examine at least once each year all books, accounts,
and vouchers of every school treasurer in its educational service region.
The Regional Office of Education #38 had several audit adjustments from the prior year audit that were posted to the incorrect fund accounts.
The Regional Office of Education #38 did not reconcile its bank reconciliation to the general ledger.
The Regional Office of Education #38 recorded several different bank accounts under the same general ledger account code. |
FINDINGS, CONCLUSIONS AND RECOMMENDATIONSCONTROLS 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. INCORRECT POSTING OF PRIOR YEAR’S AUDIT
ADJUSTMENTS The Regional Office of Education #38
had several audit adjustments from the prior year audit that were posted to
the incorrect fund accounts. The net
effect of the unrecorded transactions was an increase in net assets of
$31,154. The Regional Office of Education #38 is required by the Illinois State Board of Education (ISBE) to maintain financial accounting records in accordance with generally accepted accounting principles which includes ensuring that all transactions are recorded. (Finding 05-2, page 14) The
Regional Office of Education #38 accepted the recommendation, stating it has
purchased a new bookkeeping system, which allows for easier adjustment
transactions and corrections. BANK RECONCILIATIONS DO NOT RECONCILE TO CASH BALANCE PER GENERAL LEDGER The Regional Office of Education #38
did not reconcile its bank reconciliation to the general ledger. Several line items were omitted from the
reconciliation (i.e., outstanding checks, deposits in transit, and
adjustments from prior year’s audit).
Additionally, there were footing errors on the bank reconciliations. Sound internal controls require bank reconciliations to be performed accurately and promptly. Reconciling items should be investigated immediately and adjustments made to the general ledger. (Finding 05-3, page 15) The
Regional Office of Education #38 accepted the recommendation stating it has
installed a new bookkeeping system which is able to balance cash with the
bookkeeping entries. COMBINING DIFFERENT BANK ACCOUNTS UNDER ONE ACCOUNT CODE The Regional Office of Education #38 recorded several different bank accounts under the same general ledger account code, making it difficult to reconcile cash balances from the bank reconciliations to the general ledger. The Illinois State Board of Education’s (ISBE) Regional Office of Education Accounting Manual requires Regional Offices to set up separate general ledger account codes for each banking institution. (Finding 05-4, page 16) The Regional Office of Education #38 agreed with the recommendation and will set up separate cash accounts in the general ledger to comply with the requirements set forth by ISBE in the Regional Office of Education Accounting Manual. AUDITORS’ OPINION Our auditors state the Regional Office
of Education #38’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 Hill, Taylor Company, LLC. |