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The Regional Office of
Education #47 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 #47 is not maintaining records of its accounts receivable, accounts
payable, and deferred revenue in order to efficiently and effectively convert
their financial statements from a cash basis to the accrual basis and the
modified accrual basis of accounting.
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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 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believe the mandate is outdated and that they are satisfying the intent of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 05-01, pages 11-12)
The Regional Office accepted the
recommendation, noting it will seek a legislative solution to this and other
obsolete passages.
PREPARATION OF FINANCIAL
STATEMENTS
Accounting principles generally accepted
in the United States of
America require government-wide financial
statements to be prepared on the accrual basis of accounting and the fund
financial statements to be prepared on the modified accrual basis of
accounting.
The Regional Office of Education #47
prepares its financial reports on the cash basis. The ROE is not maintaining records of its
accounts receivable, accounts payable, and deferred revenue in order to
efficiently and effectively convert their financial statements from a cash
basis to the accrual basis and the modified accrual basis of accounting. (Finding 05-02, page 13)
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The Regional Office of
Education #47 used various accounting systems for recordkeeping and does not
reconcile any one system to another.
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The Regional Office accepted the
recommendation and will maintain subsidiary records of accounts receivable,
accounts payable, deferred revenue and fund balances to allow for the
preparation of accrual basis financial statements.
CONTROLS OVER FINANCIAL REPORTING
Strong internal controls over financial reporting systems are required
to prevent inaccuracies and inefficiencies in the reporting process.
The
Regional Office of Education #47 used various accounting systems for
recordkeeping and did not reconcile any one system to another. (Finding 05-03, page 14)
The
Regional Office accepted the recommendation, responding that it now has one
accounting program internally and has entered into an intergovernmental
shared services agreement with, and transferred its financial systems to, the
Bloom Township Treasurer.
AUDITORS’
OPINION
Our auditors state the Regional Office of Education #47’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 Prado & Renteria,
Prof. Corp.
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