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REPORT DIGEST REGIONAL OFFICE OF EDUCATION #47 LEE
AND FINANCIAL AUDIT (In Accordance with the For the Year Ended: June 30, 2008 Summary of Findings: Total this audit 1 Total last audit 0 Repeated from last audit 0
Release Date: December 17, 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 is also available on the worldwide web at http://www.auditor.illinois.gov |
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SYNOPSIS
{Expenditures and Revenues are summarized on the
reverse page.} |
REGIONAL OFFICE OF EDUCATION #47
FINANCIAL AUDIT
For The Year Ended June 30, 2008
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FY 2008
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FY 2007
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TOTAL REVENUES |
$2,515,105 |
$2,432,858 |
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Local Sources |
$458,650 |
$560,665 |
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% of Total Revenues |
18.24% |
23.05% |
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State Sources |
$1,392,428 |
$1,184,500 |
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% of Total Revenues |
55.36% |
48.69% |
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Federal Sources |
$664,027 |
$687,693 |
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% of Total Revenues |
26.40% |
28.27% |
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TOTAL EXPENDITURES |
$2,497,435 |
$2,340,278 |
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Salaries and Benefits |
$1,154,830 |
$958,368 |
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% of Total Expenditures |
46.24% |
40.95% |
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Purchased Services |
$671,493 |
$678,909 |
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% of Total Expenditures |
26.89% |
29.01% |
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All Other Expenditures |
$671,112 |
$703,001 |
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% of Total Expenditures |
26.87% |
30.04% |
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TOTAL NET ASSETS |
$497,170 |
$479,500 |
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INVESTMENT IN
CAPITAL ASSETS |
$66,640 |
$70,058 |
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Percentages
may not add due to rounding. |
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REGIONAL
SUPERINTENDENT |
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During Audit Period: Honorable Amy Jo Clemens Currently: Honorable Amy Jo Clemens |
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The Regional
Office of Education #47 did not follow applicable cash management compliance
requirements for the Mathematics and Science Partnership grant and expended
funds that were due back to the granting agency. |
FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS INADEQUATE CONTROLS
OVER CASH MANAGEMENT The Regional Office of Education #47 did not
follow applicable cash management compliance requirements for the Mathematics
and Science Partnership grant and expended funds that were due back to the
granting agency. The Regional Office of Education (ROE) Accounting Manual states that
if dollars from two or more sources of funds are combined in one bank account
and/or fund, the ROE must allocate, on a reasonable basis, a portion of the
interest earned on that bank account or fund to each of those sources of
funds. The allocation should be done
no less than monthly when bank statements are received. Once the interest is allocated to the
appropriate source of funds, certain rules apply to the expenditure of that
interest. The ROE Accounting Manual states that the rules for allocating and
expending interest vary depending on the source of funds that generated the
interest. U.S. Department of Education
regulations appear in 34 Code of Federal Regulations (CFR). Part 80 of 34 CFR is titled: “Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local Governments.” It is also known as the “Common Rule”
because most federal agencies have adopted it in their regulations. The “Common Rule” states that annual
interest earned in excess of $100 on advances of funds must be submitted
promptly to the granting agency. The
$100 may be spent on administrative costs.
Those administrative costs must be for that grant and within the grant
period. Some grants may be exempt from
the “Common Rule.” The Regional Office of Education earned approximately $140 in interest on Mathematics and Science Partnership advancements and did not remit amounts in excess of $100 to the granting agency on at least a quarterly basis. This amount was calculated by using a method that calculated interest earned on a monthly basis. (Finding 08-1, pages 13-15) The
auditors recommended that the Regional Office of Education #8 should monitor
interest earned on federal advances.
Any interest amounts in excess of $100 should be remitted on at least
a quarterly basis to the appropriate granting agency as required by rules,
regulations, or statutes. The Regional Office of Education #47
responded that it earned more than $100 in interest for the Illinois Math and
Science Partnership for months in which there were more receipts than
expenditures. However, it should be
noted that the Regional Office of Education also had months in which
expenditures exceeded receipts and the office had to “carry” the program,
which is not taken into consideration for this calculation. Regardless, the Regional Office of
Education recognizes that the federal rules and regulations must be followed
and will make adjustments to its financial operations to eliminate this in
the future. AUDITORS’ OPINION Our auditors state the Regional Office of Education #47’s financial statements as of June 30, 2008 are fairly presented in all material respects. _____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:JB SPECIAL ASSISTANT AUDITORS Our special assistant auditors were Clifton Gunderson, LLP. |