|
REPORT DIGEST REGIONAL OFFICE OF EDUCATION #38 LOGAN/MASON/MENARD
COUNTIES FINANCIAL AUDIT For the Year Ended: Summary of Findings: Total this audit 2 Total last audit 4 Repeated from last audit 2 Release Date: June 25, 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
{Expenditures
and Revenues are summarized on the reverse page.} |
REGIONAL OFFICE OF EDUCATION #38
FINANCIAL AUDIT
For The Year Ended
|
|
FY 2008
|
FY 2007
|
TOTAL REVENUES |
$468,235 |
$431,744 |
|
Local Sources |
$153,237 |
$154,265 |
|
% of Total Revenues |
32.73% |
35.73% |
|
State Sources |
$303,708 |
$265,179 |
|
% of Total Revenues |
64.86% |
61.42% |
|
Federal Sources |
$11,290 |
$12,300 |
|
% of Total Revenues |
2.41% |
2.85% |
|
|
||
|
TOTAL EXPENDITURES |
$475,594 |
$434,170 |
|
Salaries and Benefits |
$408,499 |
$369,903 |
|
% of Total Expenditures |
85.89% |
85.20% |
|
Purchased Services |
$41,863 |
$38,824 |
|
% of Total Expenditures |
8.80% |
8.94% |
|
All Other Expenditures |
$25,232 |
$25,443 |
|
% of Total Expenditures |
5.31% |
5.86% |
|
|
||
|
TOTAL NET ASSETS |
$163,534 |
$170,893 |
|
|
||
|
INVESTMENT IN
CAPITAL ASSETS |
$7,828 |
$13,843 |
|
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 have sufficient internal controls over the financial
reporting process. The Regional Office of Education #38’s funds deposited
at a financial institution exceeded the Federal Deposit Insurance Corporation
(FDIC) insured limit by $46,853 and no additional collateral was obtained. |
FINDINGS, CONCLUSIONS AND RECOMMENDATIONSINTERNAL CONTROL OVER FINANCIAL STATEMENT
PREPARATION The Regional Office of Education #38
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 based 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 #38
did not have sufficient internal controls over the financial reporting
process. The Regional Office maintains
their accounting records on the cash basis of accounting. 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 that numerous adjustments were required to present financial statements in accordance with generally accepted accounting principles. (Finding 08-1, pages 12 and 13) The auditors recommended that, as
part of its internal control over the preparation of its financial
statements, including disclosures, the Regional Office of Education #38 should
implement a comprehensive preparation and/or review procedure to ensure that
the financial statements, including 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 #38
responded that it understands the nature of this finding and realizes the
circumstance is not unusual in an organization of its size. Management is currently confident with the
abilities of the accounting staff to prepare cash basis financial information
as needed for reporting throughout the year.
Management will review year end reporting controls annually and
investigate the cost of training staff to reach an appropriate level of
expertise to do a comprehensive preparation and/or review of financial
statements. Management will pursue
additional training when it is considered cost beneficial since training
costs would take away from the funds available to provide educational
services for the schools in the region.
UNINSURED DEPOSITS IN BANK The
Regional Office of Education #38’s funds deposited at a financial institution
exceeded the Federal Deposit Insurance Corporation (FDIC) insured limit by
$46,853 and no additional collateral was obtained. The Public
Funds Deposit Act, (30 ILCS 225/1) gives the authorization for deposits in excess
of the federally insured limit to be covered by pledged collateral held by
the financial institutions’ trust departments in the Regional Office of
Education #38’s name. In addition,
prudent business practice requires that all deposits held by financial
institutions for the Regional Office of Education #38 be adequately covered
by depository insurance or collateral. (Finding 08-2, page 14) The auditors recommended that the Regional Office of Education #38 should periodically monitor the amount of collateral held on deposits to ensure that an adequate amount is maintained. The Regional Office of Education #38 responded that it agrees with the finding and that appropriate collateralization of accounts has been confirmed by the ROE. A separate account has been established in a different bank to accommodate the ROE’s new G.E.D. testing program; as a result, G.E.D. funds no longer share a bank account with any other funds. Finally, the increase in the FDIC insurance limits should cover the Regional Office of Education #38’s deposits. AUDITORS’ OPINION Our
auditors state the Regional Office of Education #38’s financial statements as
of June 30, 2008 are fairly presented in all material respects. _____________________________________ WILLIAM G. HOLLAND,
Auditor General WGH:JRB SPECIAL ASSISTANT AUDITORS Our special assistant auditors were Kyle E. McGinnis. |
|
|
|