Report Digest: Regional Office of Education #14 : Suburban Cook County. Financial Audit for the year ended June 30, 2008

              REPORT DIGEST
REPORT DIGEST
REGIONAL OFFICE OF
EDUCATION #14
SUBURBAN COOK
COUNTY
FINANCIAL AUDIT
For the Year Ended:
June 30, 2008
Summary of Findings:
Total this audit 12
Total last audit 3
Repeated from last audit 3
Release Date:
June 11, 2009
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 TTY (888) 261-2887
This Report Digest and Full Report are also
available on
the worldwide web at
http://www.auditor.illinois.gov
SYNOPSIS
The audit concluded that Regional Office of Education #14:
• had inadequate internal control over disbursements. Because of
the overall lack of internal controls, questions as to the accuracy
and completeness of the general ledger, and problems noted in
other findings throughout this report, auditors terminated work
before testing was completed and issued a disclaimer of opinion
on the financial statements for the year ended June 30, 2008.
• did not have sufficient internal controls over the financial reporting
process.
• had liabilities which exceeded its total net assets by $941,844.
If the Regional Office continues to operate at the current level
without obtaining additional funding or decreasing expenditures,
ROE 14’s ability to continue as a going concern is questionable.
• utilized an accounting software package which was not designed
for governmental entities and did not provide the internal controls
and reporting features required for proper fund accounting.
• did not complete 9 of 12 monthly reconciliations of its bank
statements and pooled cash accounts for fiscal year 2008.
• had inadequate controls over property and equipment.
• did not record payroll transactions in their general ledger for 5
months in fiscal year 2008 after they hired an outside agency to
prepare their payroll.
• provided cash advances to two employees for non-business
related purposes.
• paid a total of $1,798 in finance charges, late fees and other
miscellaneous service charges on 6 credit cards.
• did not have receipts to support 70 percent of charges on the
Regional Superintendent’s credit card. The Regional
Superintendent also made numerous personal purchases, took cash
advances, and paid for meals (both personal and for staff) on his
credit card without properly documenting the purchases and
advances.
• paid two Assistant Regional Superintendents $12,000 and $9,400
each in addition to their regular salaries for work completed during
regular working hours.
• used Institute Funds for unallowable expenditures under 105
ILCS 5/3-12.
{Expenditures and Revenues are summarized on the reverse page.}
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