REPORT DIGEST

 

REGIONAL OFFICE OF EDUCATION #56

 

WILL COUNTY

 

FINANCIAL AND COMPLIANCE AUDIT

(In Accordance with the Single Audit Act and OMB Circular A-133)

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit 2

Total last audit 0

Repeated from last audit 0

 

Release Date:

March 2, 2004

 

 

 

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 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 #56 did not have adequate controls over fixed assets.
  • The Regional Office of Education’s invoices and supporting documents for expenditures were not stamped "PAID" nor was the check number indicated on the invoice to indicate that payment had been made.

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Revenues are summarized on the reverse page.}

 

              REGIONAL OFFICE OF EDUCATION #56

                                    WILL COUNTY

 

               FINANCIAL AND COMPLIANCE AUDIT

In Accordance with the Single Audit Act and OMB Circular A-133

                    For The Year Ended June 30, 2003

FY 2003

FY 2002

TOTAL REVENUES

$5,859,710

$5,375,291

Local Sources

$1,664,074

$1,442,815

% of Total Revenues

28.40%

26.84%

State Sources

$3,370,988

$3,692,843

% of Total Revenues

57.53%

68.70%

Federal Sources

$824,648

$239,633

% of Total Revenues

14.07%

4.46%

 

TOTAL EXPENDITURES

$5,659,612

$5,306,577

Salaries and Benefits

$1,558,180

$1,698,714

% of Total Expenditures

27.53%

32.01%

Purchased Services

$1,840,431

$1,629,057

% of Total Expenditures

32.52%

30.70%

All Other Expenditures

$2,261,001

$1,978,806

% of Total Expenditures

39.95%

37.29%

 

 

 

COST OF PROPERTY AND EQUIPMENT

$487,725

$391,917

 

* Percentages may not add due to rounding.

REGIONAL SUPERINTENDENT

During Audit Period: Honorable Richard P. Duran

Currently: Honorable Richard P. Duran

 

 

 

 

 

 

The Regional Office of Education #56 did not have adequate controls over fixed assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Regional Office of Education #56 did not stamp "PAID" or indicate the check number on supporting documents and invoices when payment was made.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER PROPERTY

The Regional Office of Education #56 did not have adequate controls over fixed assets. For example, there were no formal policies or procedures to monitor and control equipment and other fixed assets. The inventory lists did not contain all of the information required by the ROE Accounting Manual, such as tag numbers. Disposal dates were not properly indicated in the Technology equipment records and formal documentation of the disposals was not complete. Finally, the balances in the General Fixed Asset Account Group were not recorded in the general ledger.

The ROE Accounting Manual requires each ROE to maintain detailed fixed asset records for both accounting purposes as well as insurance purposes, for fixed assets costing $500 or more. In addition, sound internal controls require that policies and procedures on fixed assets cover the acquisition and tagging, recording and reporting, depreciation (if applicable), transfers and dispositions, and physical inventory, and that they be formally documented and consistently applied (Finding 03-1, pages 12-15).

The Regional Office of Education #56 accepted the recommendation stating they will develop a formal fixed asset policies and procedures manual to monitor property acquisitions, transfers and disposals. Also, a General Fixed Asset Account will be established in the general ledger. The Regional Office stated they have corrected the Technology inventory sheets to include all the information needed for adequate inventory control.

 

SUPPORTING DOCUMENTS FOR DISBURSEMENTS NOT CANCELED

The Regional Office of Education #56 did not stamp "PAID" on supporting documents or invoices nor was the check number indicated on the invoice to indicate that payment had been made.

Sound internal controls over cash disbursements require that supporting documents be properly canceled at the time of signature to prevent duplicate payment (Finding 03-2, page 16).

The Regional Office of Education #56 accepted the recommendation stating they began stamping "PAID" and indicating the check numbers directly on invoices July 1, 2003. The Regional Office of Education #56 stated they will continue to mark all purchase orders that are attached to the invoice with the check number and date of issuance.

 

AUDITORS’ OPINION

Our auditors state the Regional Office of Education #56’s financial statements as of June 30, 2003 are fairly presented in all material respects.

 

 

WILLIAM G. HOLLAND, Auditor General

WGH:KJM:ro

 

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were E.C. Ortiz & Co., LLP.