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 of
Education #38 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noted they believe the mandate is outdated and that they are satisfying the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.
The Illinois School Code 105 ILCS 5/3-14.25 requires the Regional
Office of Education to maintain, and make available to the public during
regular business hours, a list of unfilled teaching positions within the
region.
The Regional Office of Education #38 did not provide a listing on its
website of all the unfilled teaching positions within the region. The Regional Office provided a listing of
website links rather than having its own updated website. However, the link did not work.
The 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 her acts as county
superintendent, including a list of all the schools visited with the dates of
visitations. This mandate has existed in its current form since at least
1953.
The Regional Office of Education #38 did not present at the September
county board meeting and as nearly quarterly thereafter, a report of all her
acts including a list of all the schools visited and dates of visitation.
The Illinois School Code 105 ILCS 5/3-14.5 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 Office performs
compliance inspections for each public school in her region on a rotational
basis instead of annually. While the Illinois
Public School Accreditation Process Compliance Component document completed
at these visits 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, the Illinois
School Code 105 ILCS 5/3-7 states that each school district shall, as of June
30 each year, cause an audit to be made of its accounts. Each school district shall on or before
October 15, or by extension date not to exceed 60 days of each year, submit
an original and one copy of such audit to the Regional Superintendent of
Schools.
The Regional Office of
Education #38 was unable to supply evidence that 6 of the 13 school district
financial statement audit reports were submitted to the ROE by October 15,
2005 or by the extension date. (Finding
06-1, pages 10-13)
The Regional Office of Education #38 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.
With regards to 105 ILCS 5/3-14.25, 105 ILCS 5/3-5, and 105 ILCS
5/3-7, management stated that they are aware of the problems and will correct
the matters as soon as possible.
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. (Finding 06-2, page 14)
The
Regional Office of Education #38 agreed with the recommendation to set up
separate cash accounts in the general ledger.
GENERAL LEDGER SYSTEM
Sound internal controls require a complete general ledger that has the
information to enable management to perform timely account reconciliations in
order to identify errors and make corrections. A complete ledger system includes all
assets, liabilities, revenue, and expense accounts.
The Regional Office of Education #38 provided a partial general
ledger system to the auditors which only included revenue and expense
accounts. (Finding 06-3, page 15)
The Regional Office of Education #38 accepted the
recommendation stating that it will be contacting the software company for
assistance in printing out reports.
AUDITORS’ OPINION
Our auditors state the Regional Office of Education #38’s financial
statements as of June 30, 2006 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.
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