REPORT DIGEST REGIONAL OFFICE OF EDUCATION #46: BROWN/CASS/MORGAN/SCOTT COUNTIES FINANCIAL AUDIT For the Year Ended June 30, 2014 Release Date: February 19, 2015 FINDINGS THIS AUDIT: 1 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 1 -- 0 -- 1 Category 2: 0 -- 0 -- 0 Category 3: 0 -- 0 -- 0 TOTAL: 1 -- 0 -- 1 FINDINGS LAST AUDIT: 0 Category 1: Findings that are material weaknesses in internal control and/or a qualification on compliance with State laws and regulations (material noncompliance). Category 2: Findings that are significant deficiencies in internal control and noncompliance with State laws and regulations. Category 3: Findings that have no internal control issues but are in noncompliance with State laws and regulations. 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 are also available on the worldwide web at www.auditor.illinois.gov SYNOPSIS • (14-1) The Regional Office of Education #46 did not have sufficient internal controls over the billing process. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS CONTROLS OVER BILLING PROCESS The Regional Office of Education #46 is required to maintain a system of controls over the billing process to prevent errors and ensure all amounts due to the Regional Office of Education #46 are subsequently collected. The Regional Office of Education #46 did not have sufficient internal controls over the billing process. The Regional Office maintains a worksheet that lists all County billings and documents the related collections. There was no indication on the worksheet that the Regional Office of Education #46 had received the $30,280 quarterly payment for the period of September through November of 2013. The Regional Office failed to pursue further collection of the billing. The Regional Office of Education #46 did not ensure that amounts billed were subsequently collected. (Finding 2014-001, page 10) The auditors recommended that the Regional Office of Education #46 should continue to utilize the worksheet that compares billings and the related collections. This worksheet should be reviewed regularly by management and the Regional Office of Education #46 should timely pursue unpaid billings. The Regional Office of Education #46 responded that it believes it maintains appropriate oversight and controls, however, in this instance, simple human error occurred. The Regional Office stated that due to the vast levels of segregation of duties required of its office, issues like this occur because things pass through so many hands they can get lost in the shuffle. AUDITORS’ OPINION Our auditors state the Regional Office of Education #46 financial statements as of June 30, 2014 are fairly presented in all material respects. WILLIAM G. HOLLAND Auditor General WGH:KJM AUDITORS ASSIGNED: Winkel, Parker & Foster, CPA PC were our special assistant auditors.