REPORT DIGEST

REGIONAL OFFICE OF EDUCATION # 48

PEORIA COUNTY

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 3
Repeated from last audit 2

Release Date:
February 6, 2003

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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 Regional Office of Education # 48 did not have proper segregation of duties in its accounting function.
  • The Regional Office of Education # 48 prepares its financial reports on a cash basis of accounting instead of the modified accrual basis of accounting, which is required for general-purpose financial statement reporting.

 

 

 

 

 

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

REGIONAL OFFICE OF EDUCATION # 48
PEORIA COUNTY
FINANCIAL AUDIT
For The Year Ended June 30, 2002

FY 2002

FY 2001
TOTAL REVENUES

1$3,630,819

$3,460,832

Local sources

$437,658

$382,448

% of Total Revenues

12.05%

11.05%

State Sources

1$2,862,197

$2,894,297

% of Total Revenues

78.83%

83.63%

Federal Sources

$330,964

$184,087

% of Total Revenues

9.12%

5.32%
TOTAL EXPENDITURES

1$3,924,397

$3,003,831

Salaries and Benefits

1$1,551,249

$1,184,062

% of Total Expenditures

39.53%

39.42%

Purchased Services

$1,572,970

$1,237,088

% of Total Expenditures

40.08%

41.18%

All Other Expenditures

$800,178

$582,681

% of Total Expenditures

20.39%

19.40%
COST OF PROPERTY AND EQUIPMENT

$1,019,415

$975,755

Note: Fiscal Year 2001 data was obtained from audits of ROEs conducted under the direction of the Illinois State Board of Education.
1 Fiscal Year 2002 amounts include on-behalf payments ($172,263). These on-behalf payments were not included in Fiscal Year 2001.
* Percentages may not add due to rounding.
REGIONAL SUPERINTENDENT
During Audit Period: Honorable Gerald Brookhart
Currently: Honorable Gerald Brookhart
 

 

 

 

 

 

The Regional Office of Education # 48 does not have proper segregation of duties in its accounting function.

 

 

 

 

 

 

 

 

 

The Regional Office of Education # 48 prepares its financial reports on a cash basis of accounting.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

LACK OF SEGREGATION OF DUTIES IN THE ACCOUNTING FUNCTION

The Regional Office of Education # 48 does not have proper segregation of duties in the accounting function. The Regional Office of Education # 48 has a limited number of accounting staff available to maintain adequate segregation of duties. At the Two Rivers Professional Development Center, the same individual prepares the checks, records the checks, mails the signed checks and prepares the bank reconciliation.

A proper segregation of duties is required in the accounting function to reduce the risk that errors or fraud in the financial statements are not detected by employees in the normal course of performing their assigned functions. (Finding 02-1, pages 10 and 11)

The Regional Office of Education # 48 responded to the recommendation that the Assistant Regional Superintendent will continue to closely supervise monthly financial reports and transactions. However, due to the limited amount of accounting staff available, the Regional Office noted that it is not economically feasible to maintain a proper segregation of duties in the accounting function.

ACCOUNTING RECORDS MAINTAINED ON A CASH BASIS OF ACCOUNTING

The Regional Office of Education # 48 prepares its financial reports on the cash basis of accounting. The Regional Office of Education # 48 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 of accounting to the modified accrual basis of accounting.

Generally accepted accounting principles require general-purpose financial statements to be prepared on the modified accrual basis of accounting. (Finding 02-2, page 12)

The Regional Office of Education # 48 accepted the recommendation to maintain subsidiary records of accounts receivable, accounts payable and deferred revenue so that financial statements can be prepared on the modified accrual basis of accounting. The Regional Office of Education # 48 is in the process of converting to the Regional Accounting Program that was developed by the Illinois State Board of Education to assist in maintaining the recommended subsidiary records.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education # 48’s financial statements as of June 30, 2002 are fairly stated in all material respects.

 

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WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Clifton Gunderson LLP.