Illinois Regional Office of Education #40 2002 Audit

REPORT DIGEST
REGIONAL OFFICE OF EDUCATION # 40

CALHOUN/GREENE/ JERSEY/MACOUPIN COUNTIES

FINANCIAL AUDIT
(In accordance with the Single Audit Act and OMB Circular A-133)

For the Year Ended:
June 30, 2002

Summary of Findings:

Total this audit 2
Total last audit 6
Repeated from last audit 2

Release Date:
January 30, 2003

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
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646
This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

SYNOPSIS

The expenditure report for the Even Start program contained $6,849 more in expenditures than were reported on the Regional Office of Education #40’s general ledger.

The Regional Office of Education #40 earned interest on several federal funds. The interest earned was not allocated to each respective grant.

{Expenditures and Activity Measures are summarized on the reverse page.}

REGIONAL OFFICE OF EDUCATION # 40
CALHOUN/GREENE/JERSEY/MACOUPIN COUNTIES
FINANCIAL AUDIT
For The Year Ended June 30, 2002

	FY 2002	FY 2001
TOTAL REVENUES	^{1,2$2,318,351}	$1,720,615
Local sources	^2$493,731	$410,291
% of Total Revenues	21.30%	23.85%
State Sources	^1$1,245,695	$962,094
% of Total Revenues	53.73%	55.92%
Federal Sources	$578,925	$348,230
% of Total Revenues	24.97%	20.24%
TOTAL EXPENDITURES	^{1,2$2,245,378}	$1,821,692
Salaries and Benefits	^{1,2$1,420,484}	$1,060,703
% of Total Expenditures	63.26%	58.23%
Purchased Services	$412,062	$444,090
% of Total Expenditures	18.35%	24.38%
All Other Expenditures	$412,832	$ 316,899
% of Total Expenditures	18.39%	17.40%
COST OF PROPERTY AND EQUIPMENT	$538,621	$ 422,639
Note: Fiscal Year 2001 data was obtained from audits of ROEs conducted under the direction of the Illinois State Board of Education. ¹Fiscal Year 2002 amounts include on-behalf payments ($226,709). These on-behalf payments were not included in Fiscal Year 2001. ² Fiscal Year 2002 amounts include local on-behalf payments ($82,175). The local on-behalf payments were not included in Fiscal Year 2001. * Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Russell Masinelli (July 1, 2001-June 30, 2002)
Currently: Honorable Larry Pfeiffer (July 1, 2002-Present)

The expenditure report for the Even Start program contained $6,849 more in expenditures than were reported on the general ledger.

Interest earned on federal funds was not allocated to each respective grant.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

AN EXPENDITURE REPORT FOR A SPECIAL REVENUE FUND DOES NOT AGREE TO THE GENERAL LEDGER

The expenditure report for the Even Start program contained $6,849 more in expenditures than were reported on the Regional Office of Education #40’s general ledger.

Expenditure reports for special revenue programs submitted to the Illinois State Board of Education should agree with the expenditures reported on the Regional Office of Education #40’s general ledger.

A comparison of the expenditure report to the Regional Office of Education #40’s general ledger revealed instances where the totals on the expenditure report did not agree with the Regional Office of Education #40 books, resulting in an inaccurate expenditure report. (Finding 02-1, pages 12-13)

The Regional Office of Education #40’s personnel corrected the expenditure report and a check is being mailed back to the Illinois State Board of Education in the amount of $6,849.

FAILURE TO ALLOCATE INTEREST TO FEDERAL GRANTS

The Regional Office of Education #40 earned interest on several federal funds. The interest earned was not allocated to each respective grant.

The Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, issued by OMB, March 1998, Subpart C, Section .21(I) does not allow grantees to retain excess interest income.

Failure to follow federal requirements could result in loss of funding. (Finding 02-2, pages 14-15)

The Regional Office of Education #40’s personnel agreed to allocate interest, every month, to the federal funds based on each fund’s percentage of the ending bank balance in the account.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education #40’s financial statements as of June 30, 2002 are fairly presented in all material respects.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were West & Company, LLC.