REPORT DIGEST

REGIONAL OFFICE OF EDUCATION # 49

ROCK ISLAND 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 1
Repeated from last audit 1

Release Date:
January 30, 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 #49 maintains a pooled cash account for several funds. The total of the transactions within the funds was not equal to the reconciled cash account.
  • The Regional Office of Education #49 had cash in the bank in excess of the FDIC insurance level and pledged collateral of its financial institutions during certain times of the year.

 

 

 

 

 

 

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

REGIONAL OFFICE OF EDUCATION # 49
ROCK ISLAND COUNTY
FINANCIAL AUDIT
For The Year Ended June 30, 2002

FY 2002

FY 2001
TOTAL REVENUES

1$3,687,322

$1,927,721

Local sources

$489,273

$461,759

% of Total Revenues

13.27%

23.95%

State Sources

1$1,864,227

$1,285,790

% of Total Revenues

50.56%

66.70%

Federal Sources

$1,333,822

$180,172

% of Total Revenues

36.17%

9.35%
TOTAL EXPENDITURES

1$3,561,597

$1,863,749

Salaries and Benefits

1$1,156,064

$664,960

% of Total Expenditures

32.46%

35.68%

Purchased Services

$593,305

$334,268

% of Total Expenditures

16.66%

17.94%

All Other Expenditures

$1,812,228

$864,521

% of Total Expenditures

50.88%

46.39%
COST OF PROPERTY AND EQUIPMENT

$220,715

$ 283,234

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 ($206,177). On-behalf payments were not included in Fiscal Year 2001.
* Percentages may not add due to rounding.
REGIONAL SUPERINTENDENT
During Audit Period: Honorable Joseph Vermeire
Currently: Honorable Joseph Vermeire
 

 

 

The Regional Office of Education #49 maintains a pooled cash account for several funds. The total of the transactions within the funds was not equal to the reconciled cash account.

 

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #49 had cash in the bank in excess of the FDIC insurance level and pledged collateral of its financial institutions during certain times of the year.

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

RECONCILIATION OF POOLED CASH ACCOUNT

The Regional Office of Education #49 maintains a pooled cash account for several funds. The total of the transactions within the funds was not equal to the reconciled cash account. When a pooled cash account is maintained, the total of the cash in each fund combined should be in agreement with the total of all the transactions in the general ledger.

Not reconciling the pooled cash accounts with general ledger transactions could result in inaccurate expenditure report information and grant reporting. (Finding 02-1, page 9)

The Regional Office of Education #49’s personnel accepted the auditor’s recommendation to reconcile the pooled cash account funds on a monthly basis.

UNDER COLLATERALIZATION OF BANK ACCOUNTS

The Regional Office of Education #49 had cash in the bank in excess of the FDIC insurance level and pledged collateral of its financial institutions during certain times of the year. Occasionally, the Regional Office of Education #49 will have a large amount of funds in one of its bank accounts for a few days due to the timing of receipts received and disbursements made. During one of these periods, cash in the bank was in excess of the FDIC insurance level and pledged collateral of its financial institutions by $29,532.

The total of FDIC insurance and pledged collateral should be sufficient to cover all of the Regional Office of Education #49’s cash and investments from possible loss. (Finding 02-2, page 10)

The Regional Office of Education #49’s personnel accepted the auditor’s recommendation. The Regional Office of Education #49 is working on implementing recommended procedures to ensure that cash and investments do not exceed both the FDIC coverage and pledged collateral held in its name.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education #49’s financial statements as of June 30, 2002 are fairly presented 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.