FY11-ROE48-Fin-Full

              State of Illinois
PEORIA COUNTY
REGIONAL OFFICE OF EDUCATION #48
FINANCIAL AUDIT
(In Accordance with the Single Audit Act
and OMB Circular A-133)
For the Year Ended June 30, 2011
Performed as Special Assistant Auditors
For the Office of the Auditor General
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
TABLE OF CONTENTS
June 30, 2011
Officials ............................................. ~ ......................................................... .
Compliance Report Summary .................................................................. ..
Financial Statement Report Summary ..................................................... .
FINANCIAL SECTION
Independent Auditor's Report ....................................................................... .
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
Independent Auditor's Report on Compliance with Requirements That Could
Have a Direct and Material Effect on Each Major Program and on Internal
Control Over Compliance in Accordance with OMB Circular A-133 ...... .
Schedule of Findings and Questioned Costs
Section I - Summary of Auditor's Results ............................................... ..
Section II- Financial Statement Findings .. : .............................................. .
Section III- Findings and Questioned Costs for Federal Awards ............ ..
Corrective Action Plan for Current Year Audit Findings ................... .
Summary Schedule of Prior Audit Findings ........................................... ..
Management's Discussion and Analysis ......................................... ..
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Assets .............................................................................. .
Statement of Activities ................................................................................. .
Fund Financial Statements
Balance Sheet - Governmental Funds .......................................................... .
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets- Governmental Funds ..................... -........ .
PAGE
1
2-3
4
5-6
7-8
9-10
11
12a-12i
13
14a-14d
15
16a-16g
17
18
19
20
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
TABLE OF CONTENTS
June 30, 2011
Statement of Revenues, Expenditures and Changes in
Fund Balance - Governmental Funds ........................................................ .
Reconciliation of the Statement of Revenues, Expenditures and Changes in
· Fund Balance to the Statement of Activities - Governmental Funds ........ .
Statement of Net Assets- Proprietary Funds ............................................... .
Statement of Revenues, Expenses and Changes in·
Fund Net Assets- Proprietary Funds ......................................................... .
Statement of Cash Flows - Proprietary Funds .............................................. .
Statement of Fiduciary Net Assets - Fiduciary Fund .................................... .
Statement of Changes in Fiduciary Net Assets- Fiduciary Funds .............. ~.
Notes to the Financial Statements ............................................................... .
REQUIRED SUPPLEMENTAL INFORMATION
Illinois Municipal Retirement Fund Schedule of Funding Progress ............ .
OTHER SUPPLEMENTAL INFORMATION
Combining Schedule of Accounts
General Fund ............................................................................................. .
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances - General Fund Accounts .................................................. .
Combining Schedule of Accounts
Education Fund .......................................................................................... .
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances - Education Fund Accounts ................ ~ .............................. .
Budgetary Comparison Schedule
Education Fund Accounts
ROEIISC Operations .......................................................................... .
Adult Education Basic ......................................................................... .
Adult Education Performance ................................................... ; ......... .
Upward SOS ........................................................................................ .
Communities for Youth Truants Alternative ....................................... .
McKinney-Vento Education for Homeless Children and Youth ......... .
Learning Technology Center General Operations .................... ~ .......... .
Title I School Improvement and Accountability ................................. .
Title I Reading First Part B SEA (4337-00) ........................................ .
Reading First Super Region (4337-04) ................................................ .
Special Education- IDEA Part D ....................................................... .
/
21
22
23
24
25
26
27
28-58
59
60-61
62-63
64-68
69-73
74
75
76
77
78
79
80
81
82
83
84
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
TABLE OF CONTENTS
June 30, 2011
Preschool for All Children................................................................... 85
ARRA - Title I School Improvement and Accountability................... 86
Illinois Virtual Schools- RTI Online ............. ~.................................... 87
Regional Safe Schools.......................................................................... 88
Gifted Education................................................................................... 89
Beginning Teacher Induction .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . ... . . . . . . . . . ... . . . . . . . . . . . . . .. . 90
Combining Balance Sheet
Nonmajor Special Revenue Funds............................................................. 91
Combining Statement of Revenues, Expenditures and Changes in
Fun9. Balances- Nonmajor Special Revenue Funds.................................. 92
Combining Statement of Net Assets
- Nonmajor Proprietary Funds.................................................................... 93
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets- Nonmajor Proprietary Funds........................................ 94
Combining Statement of Cash Flows- Nonmajor Proprietary Funds.......... 95
Combining Statement of Fiduciary Net Assets
Agency Funds............................................................................................. 96
Combining Statement of Changes in Assets and Liabilities
Agency Funds............................................................................................. 97-98
FEDERAL COMPLIANCE SECTION
Schedule of Expenditures ofF ederal A wards .............................................. . 99-100
Notes to the Schedule of Expenditures of Federal Awards .......................... . 101-102
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
OFFICIALS
Regional Superintendent
(Current and During the Audit Period)
Assistant Regional Superintendent
(Acting Effective January 1, 2011)
Assistant Regional Superintendent
(During the Audit period, Acting Effective from
July 1, 2010 through December 31, 201 0)
Offices are located at:
Peoria County Regional Office of Education
3 24 Main Street ·
Peoria, IL 61602
Two Rivers & Area ill
10112 W. Dubois Rd.
Edwards, IL 61528
1
Mr. Gerald M. Brookhart
Ms. Elizabeth Crider-Olcott
Mr. Randy Stueve
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
COMPLIANCE REPORT SUMMARY
The compliance audit testing performed in this audit was conducted in accordance with Government
Auditing Standards and in accordance with the Illinois State Auditing Act.
AUDITOR'S REPORTS
The auditor's reports on compliance and on internal controls do not contain scope limitations,
disclaimers, or other significant non-standard language.
SUMMARY OF AUDIT FINDINGS
Number of
Audit findings
Repeated audit findings
This Audit
3
Prior Audit
4
Prior recommendations implemented
or not repeated
2
2
1
4
An additional 2 matters~ which are less than significant deficiencies or material weaknesses, but more
than inconsequential, have been reported in a Management Letter of Comments to the Regional
Superintendent. In prior years, these issues may have been included as an immaterial finding in the
auditor's reports.
Item No.
11-1
11-2
11-3
SUMMARY OF FINDINGS AND QUESTIONED COSTS
Description Finding Type
FINDINGS (GOVERNMENT AUDITING STANDARDS)
12a
12f
12h
Inadequate Internal Controls
Over Compliance
Controls Over Financial
Statement Preparation
Material W eak:ness
Material W eak:ness
Departure from Generally Accepted Material W eak:ness
Accounting Principle
2
Item No.
11-1
10-1
10-3
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
COMPLIANCE REPORT SUMMARY (Concluded)
FINDINGS AND QUESTIONED COSTS (FEDERAL COMPLIANCE)
12a
Description
Inadequate Internal Controls
Over Compliance
Finding Type
Material Weakness
PRIOR FINDINGS NOT REPEATED (GOVERNMENT AUDITING STANDARDS)
15
15
Lack of Adequate Policies and Procedures Over Certain
Administrative Functions
Use of Designated Grant Balances
PRIOR FINDINGS NOT REPEATED (FEDERAL COMPLIANCE)
10-1 15 Lack of Adequate Policies and Procedures Over Certain
Administrative Functions
EXIT CONFERENCE
The findings and recommendations appearing in this report were discussed with Agency personnel at an
informal exit conference on August 26, 2011. Attending were Gerald Brookhart, Regional Superintendent,
Michelle D. Smith, Manager, Kemper CPA Group LLP. Responses to the recommendations were provided
by Gerald Brookhart, .Regional Superintendent on October 11, 2011.
3
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
FINANCIAL STATEMENT REPORT SUMMARY
The audit of the accompanying basic fmancial statements of the Peoria County Regional Office of
Education #48 was performed by Kemper CPA Group LLP.
Based on their audit, the auditors expressed a qualified opinion on the Peoria County Regional Office of
Education #48's basic financial statements.
4
Honorable William G. Holland
Auditor General
State of Illinois
KEMPER
.CPA GROUPLLP
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT
As Special Assistant Auditors for the Auditor General, we have audited the accompanying financial
statements of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the Peoria County Regional Office of Education #48, as of and for the year
ended June 30, 2011, which collectively comprise the Peoria County Regional Office of Education #48's
basic financial statements as listed in the table of contents. These financial statements are the responsibility
of the Peoria County Regional Office of Education #48's management. Our responsibility is to express
opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the ·audit to obtain reasonable assurance about whether the financial statements are free of material
·misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
The Peoria County Regional Office of Education #48 did not recognize and disclose postemployment
benefits other than pensions (OPEB) in their financial statements as required by Governmental Accounting
Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits Other Than Pensions. In our opinion, disclosure of that information is required to
conform with accounting principles generally accepted in the United States of America. The effects of this
departure from accounting principles generally accepted in the United States of America on the fmancial
statements of the Peoria County Regional Office of Education #48 is not reasonably determinable.
In our opinion, except for the effects of not recognizing a liability for postemployment benefits other than
pensions in the Statement of Net Assets and the Statement of Activities as described in the preceding
paragraph, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the
aggregate remaining fund information of the Peoria County Regional Office of Education #48, as of June 30,
2011, and the respective changes in financial position and cash flows, where applicable, thereof for the year
then ended in conformity with accounting principles generally accepted in the United States of America.
5
7200 Eagle Crest Blvd. • Evansville, IN 47715-8154
Phone: (812)421-8000 Fax: (812)421-2292 kempercpa.com
As described in Note 1, the Regional Office of Education #48 adopted GASB Statement No. 54, Fund
Balance Reporting and Governmental Fund Type Definitions during the year ended June 30, 2011. The
statement changed the classifications of governmental fund balances and clarified the definitions of
existing fund types. The adoption of this statement had no effect on any of the Regional Office of
Education #48's governmental funds' assets or liabilities nor was there any effect to the total amount of
any of the Regional Office of Education #48's governmental fund balances as of and for the year ended
June 30, 2011.
In accordance with Government Auditing Standards, we have also issued a report dated December 20, 2011,
on our consideration of the Peoria County Regional Office of Education #48's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
The Management's Discussion and Analysis and Illinois Municipal Retirement Fund Schedule of Funding
Progress· on pages 16a-16g, and 59 are not a required part of the basic financial statements but are
supplementary information required by accounting principles generally accepted in the United States of
America. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Peoria County Regional Office of Education #48's basic financial statements. The combining
and individual nonmajor fund financial statements and budgetary comparison schedules are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The
accompanying Schedule of Expenditures ofF ederal Awards is presented for purposes of additional analysis
as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations, and is also not a required part of the qasic financial statements.
The combining and individual nonmajor fund financial statements, budgetary comparison schedules, and the
Schedule of Expenditures of Federal Awards have been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, are fairly stated, in all material respects, in
relation to the basic financial statements taken as a whole.
Certified Public Accountants and Consultants
Evansville, Indiana
December 20, 2011
6
KEMPER
-CPA GROUPLLP
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable William G. Holland
Auditor General
State of Illinois
As Special Assistant Auditors for the Auditor General, we have audited the financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining fund
information of the Peoria County Regional Office of Education #48, as of and for the year ended June 30,
2011, which collectively comprise the Peoria County Regional Office of Education #48's basic financial
statements and have issued our report thereon dated December 20, 2011. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
Internal Control Over Financial Reporting
. Management of the Peoria County Regional Office of Education #48 is responsible for establishing and
maintaining effective internal control over financial reporting. In planning and performing our audit, we
considered the Peoria County Regional Office of Education #48's internal control over financial reporting as
a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial
statements and not for the purpose of expressing an opinion on the effectiveness of the Peoria County
Regional Office of Education #48's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness of the Peoria County Regional Office of Education #48's internal
control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in the internal control over financial
reporting that might be significant deficiencies or material weaknesses and therefore, there can be no
assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified.
However, as described in the accompanying Schedule of Findings and Questioned Costs we identified
certain deficiencies in internal control over financial reporting that we consider to be material weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course· of performing their assigned functions, to prevent, or detect and correct
mi~statements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies; in
internal control, such that there is a reasonable possibility that a material misstatement of the entity's
financial statements will not be prevented, or detected and corrected on a timely basis. We consider the
deficiencies described in findings 11-1, 11-2, and 11-3 in the accompanying Schedule of Findings and
Questioned Costs to be material weaknesses.
7
7200 Eagle Crest Blvd. 1111 Evansville, IN 47715-8154
Phone: (812)421-8000 Fax: (812)421-2292 kempercpa.com
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Peoria County Regional Office of Education
#48's financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements, noncompliance. with which could
have a direct and material effect on the determination of financial statement amounts. However, providing
an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do
not express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
We also noted certain matters which we have reported to management of the Peoria County Regional Office
of Education #48 in a separate letter dated December 20, 2011.
Peoria County Regional Office of Education #48's responses to the findings identified in our audit are
described in the accompanying Schedule of Findings and Questioned Costs. We did not audit the Peoria
County Regional Office of Education #48's responses and, accordingly, express no opinion on them.
This report is intended solely for the information and use of the Auditor General, the General Assembly, the
Legislative Audit Commission, the Governor, agency management, others within the organization, Illinois
State Board of Education, federal awarding agencies and pass-through entities and is not intended to be and
should not be used by anyone other than these specified parties.
Certified Public Accountants and Consultants
Evansville, Indiana
December 20, 2011
8
KEMPER
-CPA GROUPLLP
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT ON COJ\1PLIANCE WITH REQUIREMENTS THAT COULD
HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL
CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 ·
Honorable William G. Holland
Auditor General
State of Illinois
Compliance
We have audited the Peoria County Regional Office of Education #48's compliance with the types of
compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a
direct and material effect on each of the Peoria County Regional Office of Education #48's major federal
programs for the year ended June 30, 2011. The Peoria County Regional Office of Education #48's major
federal programs are identified in the summary of auditor's results section of the accompanying Schedule of
Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and
grants applicable to each of its major federal programs is the responsibility of the Peoria County Regional
Office of Education #48's management. Our responsibility is to express an opinion on the Peoria County
.Regional Office of Education #48's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect on a
major federal program occurred. An audit includes examining, on a test basis, evidence about the Peoria
County Regional Office of Education #48's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion. Our audit does not provide a legal determination of the Peoria County
Regional Office of Education #48's compliance with those requirements.
In our opinion, the Peoria County Regional Office of Education #48 complied, in all material respects, with
the compliance requirements referred to above that could have a direct and material effect on each of its
major federal programs for the year ended June 30, 2011.
9
7200 Eagle Crest Blvd. 1111 Evansville, IN 47715-8154
Phone: (812)421-8000 Fax: (812)421-2292 kernpercpa.corn
Internal Control Over Compliance
The management of the Peoria County Regional Office of Education #48 is responsible for establishing and
maintaining effective internal control over compliance with the requirements of laws, regulations, contracts,
and grants applicable to federal programs. In planning and performing our audit, we considered the Peoria
County Regional Office of Education #48's internal control over compliance with requirements that could
have a direct and material effect on a major federal program to determine our auditing procedures for the
purpose of expressing our opinion on compliance and to test and report on internal control over compliance
in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Peoria County Regional Office of Education #48's internal control over compliance.
Our consideration of internal control over compliance was limited for the purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over compliance
that might be significant deficiencies or material weaknesses and therefore, there can be no assurance
that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as
discussed below, we identified a deficiency in internal control over compliance that we consider to be a
material weakness.
A deficiency in internal control over compliance exists when the design or operation of a control does
not allow management or employees~ in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance, such that there is a reasonable.
possibility that material noncompliance with a type of compliance requirement of a federal program will
not be prevented, or detected and corrected, on a timely basis. We consider the deficiency in internal
control over compliance described in the accompanying Schedule of Findings and Questioned Costs as
item 11-1 to be a material weakness.
Peoria County Regional Office of Education #48's responses to the findings identified in our audit are
described in the accompanying Schedule of Findings and Questioned Costs. We did not audit Peoria County
Regional Office of Education #48's responses and, accordingly, we express no opinion on the responses.
This report is intended solely for the information and use of the Auditor General, the General Assembly,
the Legislative Audit Commission, the Governor, agency management, others within the entity, Illinois
State Board of Education, federal awarding agencies and pass-through entities, and is not intended to be
and should not be used by anyone other than these specified parties.
Certified Public Accountants and Consultants
Evansville, Indiana
December 20, 2011
10
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2011
SECTION 1-SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued: Qualified
Internal control over financial reporting:
• Material weakness( es) identified?
• Significant deficiency(ies) identified that are not considered to
be material weakness( es )?
• Noncompliance material to frnancial statements noted?
Federal Awards
Internal control over major programs:
• Material weakness( es) identified?
• Significant deficiency(ies) identified that are not considered to
be material weakness( es )?
Yes
No
No
Yes
No
Type of auditor's report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are required to be reported in accordance
with OMB Circular A-133, Section 510(a)? No
Identification of major programs:
CFDA Number(s)
84.010
84.389
84.357
Name of Federal Program or Cluster
Title I - Part A Cluster
Title I Grants to Local Educational Agencies
ARRA - Title I Grants to Local Educational
Agencies
Title I- Reading First Part B SEA
Dollar threshold used to distinguish between Type A and Type B programs: $300,000
Auditee qualified as a low-risk auditee? No
11
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2011
SECTION II- FINANCIAL STATEMENT FINDINGS
Finding No.ll-1- Inadequate Internal Controls over Compliance
Federal Program Name: Special Education- Technical Assistance and Dissemination to Improve
Services and Results for Children with Disabilities
Project#: H326K080001
CFDA#: 84.326K
Passed Through: University of North Carolina- Chapel Hill
Federal Agency: U.S. Department of Education
Federal Program Name: Title I Grants to Local Educational Agencies
Project#'s: 11-4331-SS, 10-4331-SS
CFDA#: 84.010
Passed Through: Illinois State Board of Education
Federal Agency: U.S. Department of Education
Federal Program Name: ARRA -Title I Grants to Local Educational Agencies
Project#: 11-4854-00
CFDA#: 84.389
Passed Through: Illinois State Board of Education
Federal Agency: U.S. Department of Education
Federal Program Name: Special Education- State Personnel Development
Project#: 11-4631-RC
CFDA#: 84.323A
Passed Through: Illinois State Board of Education
Federal Agency: U.S. Department of Education
Criteria/Specific Requirement:
As a recipient of federal, State, and local funds from various grantor agencies, the
Regional Office must incorporate certain procedures into their operations in order to
comply with the grant agreements with these entities. The Regional Office is required to
accurately spend funding in accordance with budgets submitted to grantors and
accurately submit expenditure reports timely. In addition, the Regional Office must
supply any subrecipients of its federal awards with certain information on the related
federal program.
12a
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2011
SECTION II- FINANCIAL STATEMENT FINDINGS (Continued)
Finding No. 11-1- Inadequate Internal Controls over Compliance (Continued)
Condition:
A. State Program - Communities for Youth Truants Alternative - Inaccurate expenditures
were reported on the expenditure report submitted to the Illinois State Board of Education
(IS BE). There was no control in place to ensure that someone independent of preparing
the expenditure report would review and approve the report before submitting it to ISBE.
B. Federal Program - Special Education - Technical Assistance and Dissemination to
Improve Services and Results for Children with ·Disabilities - The Regional Office
transferred funds received from the University of North Carolina to cover expenses for
their own Scaling Up of Evidence Based Practices (SISEP) program. The agreement
with the University of North Carolina contains a budget and any budget changes must be
pre-approved. Because of the transfer to the Regional Office's own SISEP program, total
expenses were not in line with budget line items for the University of North Carolina
agreement.
C. Federal Program - Title I Grants to Local Educational Agencies - During testing of
information provided to subrecipients of this program, it was noted that the information
did not include the name of the awarding federal agency and there was no statement that
the subrecipient signed stating they were informed, understood, and agreed to comply
with the applicable compliance requirements.
D. Federal Program - ARRA - Title I Grants to Local Educational Agencies - During
review of expenditure reports submitted to ISBE, it was noted that the project was frozen
due to untimely filing of the expenditure reports.
E. Federal Program- Special Education- State Personnel Development- The Regional
Office recorded reimbursements from other local governments for joint costs incurred to
put on a professional development workshop by crediting expense accounts instead of
crediting a revenue account.
F. State Program - ROEIISC Operations -: Payments to subr~cipients are budgeted,
expended and reported by line item in which the Regional Office believes the
subrecipient will use the funding instead of being budgeted, expended and reported as
payments to other governments.
Questioned Costs:
There are no questioned costs associated with any of the conditions noted.
12b
PEORlA COUNTY REGIONAL OFFICE OF EDUCATION #48
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2011
SECTION II- FINANCIAL STATEMENT FINDINGS (Continued)
Finding No. 11-1- Inadequate Internal Controls over Compliance (Continued)
Context:
A. N/A
B. In total, the Regional Office expended all funds from the University of North Carolina.
However, expenditures were over (under) budgeted by the following:
Administrative Salaries/Benefits: ($1 ,977)
Supplies: ($2,226)
Administrative Travel: ($4,607)
Other Travel: ($11)
Professional Development: $3,732
Food costs: ($6,078)
Equipment & Software: ($3,800)
Transfers out: $17,205
C. N/A
D. N/A
E. N/A
F. N/A
Effect:
A. ISBE did not receive an accurate representation of expenditures for this program.
B. The Regional Office is not in compliance with the agreement with the University of
North Carolina.
C. The Regional Office is not in compliance with requirements for this federal program.
D. Funding for this federal program was suspended until the expenditure report was filed.
E. Revenues and expenses were understated for this federal program.
F. ISBE did not receive an accurate representation of how the Regional Office of Education
#48 expended the funds for this State program.
Cause:
A. The Regional Office does not have internal controls in place over this program that
require the Program Director to submit the expenditure reports, for approval, to someone
independent of recording the expenditures prior to submission to ISBE.
B. The Regional Office staff was not aware there was a budgeting process for the Regional
Office's agreement with the University ofNorth Carolina.
C. The Regional Office staff was not aware of all the requirements related to required
information in subrecipient agreements.
D. The expenditure report was inadvertantly filed late.
E. The Regional Office was not aware of the proper reporting of cost reimbursements for
joint activities.
F. The Regional Office was not aware of the proper reporting of payments to subrecipients
for this grant program.
12c
PEORlA COUNTY REGIONAL OFFICE OF EDUCATION #48
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2011
SECTION II- FINANCIAL STATEMENT FINDINGS (Continued)
Finding No. 11-1- Inadequate Internal Controls over Compliance (Concluded)
Recommendation:
A. The Regional Office should requite that all expenditure reports be reviewed by someone
independent of recording the expenditures prior to submission.
B. The Regional Office should submit an amended budget to grantors if planned
expenditures changed from the original budget.
C. Regional Office staff should review all compliance requirements related to information
required to be communicated to subrecipients prior to sending any Federal funding to the
subreci pients.
D. The Regional Office should have procedures in place to ensure all required reports are
submitted to grantors prior to the due dates.
E. The Regional Office should record cost reimbursements for joint functions as revenues
from other local governments.
F. For any grant program for which the Regional Office has subrecipients, payments to the
subrecipients should be recorded as payments to other governments in accounting
software. Budget and expenditure reports should reflect this as well.
Management's Response:
A. For most grants the Regional Office already requires someone other than the preparer to
review grant reports prior to submission. The Regional Office has implemented
additional procedures to ensure that these grant reports are reviewed prior to submission.
The Regional Office also filed an amended grant report with the Illinois State Board of
Education to correct the inaccurate expenditures reported.
B. Many of grants that the Regional Office receives have differing budgetary requirements
and controls are in place to ensure budgetary compliance. However, in this case a
misunderstanding about the specific budgetary requirements for this grant occurred. The
Regional Office is currently investigating what procedures can be implemented to
improve the Regional Office's controls to ensure that the budgetary requirements of each
unique grant are met.
C. The Regional Office is in the process of revising sub-recipient agreements to include the
omitted information and going forward the Regional Office will regularly review the
agreements to ensure that required information is included.
D. The Regional Office has controls in place to ensure that reports are filed timely; however,
the Regional Office will increase monitoring of this control to ensure that it is operating
effectively. Further control changes will be considered if it is determined the controls are
not operating effectively.
12d
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30,2011
SECTION II- FINANCIAL STATEMENT FINDINGS (Continued)
Finding No. 11-1- Inadequate Internal Controls over Compliance (Concluded)
Management's Response (Concluded):
E. This has been noted and the Regional Office will change its method of accounting for
these items going forward.
F. This has been noted and the Regional Office will change its method of accounting for
these items going forward.
12e
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2011
SECTION II- FINANCIAL STATEMENT FINDINGS (Continued)
Finding No. 11-2- Controls Over Financial Statement Preparation (Repeat of Finding 10-2,
09-3, 08-3 and 07-1)
Criteria/Specific Requirement:
The Regional Office of Education #48 is required to maintain a system of controls over
the preparation of financial statements in accordance with generally accepted accounting
principles (GAAP). Regional Office internal controls over GAAP financial reporting
should include adequately trained personnel with the knowledge and expertise to prepare
and/or thoroughly review GAAP based financial statements to ensure that they are free of
material misstatements and include all disclosures as required by the Governmental
Accounting Standards Board (GASB).
Condition:
Effect:
Cause:
The Regional Office of Education #48 does not have sufficient internal controls over the
financial reporting process. While the Regional Office maintains controls over the
processing of some accounting transactions, there are not sufficient controls over the
preparation of the GAAP based financial statements for management or employees in the
normal course of performing their assigned functions to prevent or detect financial
statement misstatements and disclosure omissions in a timely manner. For example,
auditors, in their review of the Regional Office's accounting records, noted that material
adjusting entries were required to present the financial statements irt accordance with
generally accepted accounting principles.
Management or employees in the normal course of performing their assigned functions
may not prevent or detect financial statement misstatements and disclosure omissions in a
timely manner.
According to Regional Office officials, although they have hired an outside Certified
Public Accountant (CPA) to help review frnancials, there was not adequate fundirg to
employ a full-time CPA to review the financials on a continuous basis.
12f
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2011
SECTION II- FINANCIAL STATEMENT FINDINGS (Continued)
Finding No. 11-2- Controls Over Financial Statement Preparation (Repeat of Finding 10-2,
09-3, 08-3 and 07-1) (Concluded)
Recommendation:
As part of its internal control over the preparation of its financial statements, including
disclosures, the Regional Office of Education #48 should implement a comprehensive
preparation and/ or review procedure to ensure that the financial statements, including
disclosures, are complete and accurate. Such procedures should be performed by a
properly trained individual(s) possessing a thorough understanding of applicable
generally accepted accounting principles, GASB pronouncements, and knowledge of the
Regional Office of Education's activities and operations.
Management's Response:
The Regional Office is working to implement controls and procedures to improve the
accounting records that underlie the financial statements in order to reduce and eliminate
the material adjustments required, as noted by the auditors, to present the financial
statements in accordance with generally accepted accounting principles. While the
Regional Office has from time to time hired a CPA to work on special projects, the
Regional Office will consider whether resources are available to provide for hiring
experienced help in reviewing the financial statements, including disclosures.
12g
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2011
SECTION II- FINANCIAL STATEMENT FINDINGS (Continued)
Finding No. 11-3 -Departure from Generally Accepted Accounting Principle (Repeat of
Finding 10-4)
Criteria/Specific Requirement:
The Illinois Administrative Code (74 Ill. Adm. Code 420.320 (c) (1) and (2)) requires that
each Regional Office of Education maintain the accounting records necessary to prepare
fmancial statements in accordance with generally accepted accounting principles (GAAP).
Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than Pensions
(OPEB), requires that employers recognize and disclose OPEB expense. Net OPEB
obligations, if any, should be reported as liabilities (or assets, if overfunded) in the financial
statements. For financial reporting purposes, an actuarial valuation is required to measure
and disclose the annual OPEB cost. In certain circumstances, an alternative measurement
method can be applied instead of obtaining an actuarial valuation.
Condition:
The Peoria County Regional Office of Education #48 participates in a defined benefit OPEB
plan that provides postemployment benefits other than pensions to its employees in exchange
for employee services rendered. Under accrual accounting, the cost of OPEB, and any
related OPEB liability, should generally be recorded in the period when the exchange for the
employees' services occurs, rather than when the benefits are paid. Currently, the Peoria
County Regional Office of Education #48's OPEB plan is financed on a pay-as-you-go basis,
and as such, the fmancial statements do not report the fmancial effects of OPEB until the
promised benefits are paid. During fiscal year 2011, the Peoria County Regional Office of
Education #48 had 14 active employees and contributions to the OPEB plan totaled $12,440.
The Peoria County Regional Office of Education #48 did not obtain an actuarial valuation of
its postemployment benefits other · than pension liability:~ or apply the alternative
measurement method in order to be in compliance with GASB Statement No. 45.
In the absence of the actuarial valuation, or the application of the alternative measurement
method, the auditors could not reasonably determine the amount by which this departure
would affect the liabilities, fund balances, and expenditures of the Peoria County Regional
Office of Education #48 as of June 30, 2011.
Effect:
Failure to apply the accounting and reporting requirements of GASB Statement No. 45 could
result in misstatements of the Peoria County Regional Office of Education #48's financial
statements. This could also result in inaccurate and incomplete disclosure of the OPEB plan
description, the funding policy, and the annual OPEB and net OPEB obligation.
12h
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2011
SECTION II- FINANCIAL STATEMENT FINDINGS (Concluded)
Finding No. 11-3- Departure from Generally Accepted Accounting Principle (Repeat of
Finding 10-4) (Concluded)
Cause:
According to Regional Office management, noncompliance with GASB Statement No. 45
was due to budget restraints and the overall complexity of the pronouncement.
Recommendation:
We recommend the Peoria County Regional Office of Education #48 obtain or perform an
actuarial valuation of its other postemployment benefit liability to be in compliance with
GASB Statement No. 45 and include all disclosures required by the Statement in its financial
statements.
Management's Response:
The Peoria County Regional Office of Education #48 is aware of the requirements of GASB
Statement no. 45, but has not obtained an actuarial valuation or pursued alternative methods
due to the cost of doing so. The Regional Office is exploring more cost effective options of
implementing this requirement and is considering implementing it in 2012.
12i
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2011
SECTION III- FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS:
INSTANCES OF NONCOMPLIANCE:
None
MATERIAL WEAKNESSES:
Finding No. 11-1- Inadequate Internal Controls over Compliance (details on pages 12a-
12e)
. PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
CORRECTIVE ACTION PLAN FOR CURRENT-YEAR AUDIT FINDINGS
JUNE 30, 2011
Corrective Action Plan
Finding No. 11-1- Inadequate Internal Controls over Compliance
Condition:
A. State Program - Communities for Youth Truants Alternative - Inaccurate expenditures were reported on
the expenditure report submitted to the Illinois State Board of Education (ISBE). There was no control
in place to ensure that someone independent of preparing the expenditure report would review and
approve the report before submitting it to ISBE.
B. Federal Program- Special Education- Technical Assistance and Dissemination to Improve Services and
Results for Children with Disabilities - The Regional Office transferred funds received from the
University of North Carolina to cover expenses for their own Scaling Up of Evidence Based Practices
(SISEP) program. The agreement with the University of North Carolina contains a budget and any
budget changes must be pre-approved. Because of the transfer to the Regional Office's own SISEP
progrmn, total expenses were not in line with budget line items for the University of North Carolina
agreement.
C. Federal Program - Title I Grants to Local Educational Agencies - During testing of information
provided to subrecipients of this program, it was noted that the information did not include the name of
the awarding federal agency and there was no statement that the subrecipient signed stating they were
informed, understood, and agreed to comply with the applicable compliance requirements.
D. Federal Program - ARRA - Title I Grants to Local Educational Agencies - During review of
expenditure reports submitted to ISBE, it was noted that the project was frozen due to untimely filing of
the expenditure reports.
E. Federal Program- Special Education- State Personnel Development- The Regional Office recorded
reimbursements from other local governments for joint costs incurred to put on a professional
development workshop by crediting expense accounts instead of crediting a revenue account.
F. State Program - ROE/ISC Operations - Payments to subrecipients are budgeted, expended and reported
by line item in which the Regional Office believes the subrecipient will use the funding instead of being
budgeted, expended and reported as payments to other governments.
Plan:
A. For most grants the Regional Office already requires someone other than the preparer to review grant
reports prior to submission. The Regional Office has implemented additional procedures to ensure that
these grant reports are reviewed prior to submission. The Regional Office also filed an amended grant
report with the Illinois State Board of Education to correct the inaccurate expenditures reported.
B. Many of grants that the Regional Office receives have differing budgetary requirements and controls are
in place to ensure budgetary compliance. However, in this case a misunderstanding about the specific
budgetary requirements for this grant occurred. The Regional Office is currently investigating what
procedures can be implemented to improve the Regional Office's controls to ensure that the budgetary
requirements of each unique grant are met.
C. The Regional Office is in the process of revising sub-recipient agreements to include the omitted
information and going forward the Regional Office will regularly review the agreements to ensure that
required information is included.
14a
PEORlA COUNTY REGIONAL OFFICE OF EDUCATION #48
CORRECTIVE ACTION PLAN FOR CURRENT-YEAR AUDIT FINDINGS
JUNE 30, 2011
Corrective Action Plan (Continued)
Finding No. 11-1- Inadequate Internal Controls over Compliance (Concluded)
D. The Regional Office has controls in place to ensure that reports are filed timely; however, the Regional
Office will increase monitoring of this control to ensure that it is operating effectively. Further control
changes will be considered if it is determined the controls are not operating effectively.
E. This has been noted and the Regional Office will change its method of accounting for these items going
forward.
F. This has been noted and the Regional Office will change its method of accounting for these items going
forward.
Anticipated Date of Completion:
Immediately upon learning of oversight.
N arne of Contact Person:
Honorable Gerald Brookhart, Regional Superintendent of Schools
14b
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
CORRECTIVE ACTION PLAN FOR CURRENT-YEAR AUDIT FINDINGS
JUNE 30, 2011
Corrective Action Plan (Continued)
Finding No. 11-2- Controls Over Financial Statement Preparation (Repeat of Finding 10-2, 09-3, 08-3
and 07-1)
Condition:
Plan:
The Regional Office of Education #48 does not have sufficient internal controls over the financial
reporting process. While the Regional Office maintains controls over the processing of some accounting
transactions, there are not sufficient controls over the preparation of the GAAP based financial
statements for management or employees in the normal course of performing their assigned functions to
prevent or detect financial statement misstatements and disclosure omissions in a timely manner. For
example, auditors, in their review of the Regional Office's accounting records, noted that material
adjusting entries were required to present the financial statements in accordance with generally accepted
accounting principles.
The Regional Office is working to implement controls and procedures to improve the accounting records
that underlie the financial statements in order to reduce and eliminate the material adjustments required,
as noted by the auditors, to present the financial statements in accordance with generally accepted
accounting principles. While the Regional Office has from time to time hired a CPA to work on special
projects, the Regional Office will consider whether resources are available to provide for hiring
experienced help in reviewing the financial statements, including disclosures.
Anticipated Date of Completion:
Immediately upon learning of oversight.
N arne of Contact Person:
Honorable Gerald Brookhart, Regional Superintendent of Schools
14c
PEORlA COUNTY REGIONAL OFFICE OF EDUCATION #48
CORRECTIVE ACTION PLAN FOR CURRENT-YEAR AUDIT FINDINGS
JUNE 30,2011
Corrective Action Plan (Concluded)
Finding No. 11-3- Departure from Generally Accepted Accounting Principle (Repeat of Finding 10-4)
Condition:
Plan:
The Peoria County Regional Office of Education #48 participates in a defined benefit OPEB plan that
provides postemployment benefits other than pensions to its employees in exchange for employee
services rendered. Under accrual accounting, the cost of OPEB, and any related OPEB liability, should
generally be recorded in the period when the exchange for the employees' services occurs, rather than
when the benefits are paid. Currently, the Peoria County Regional Office of Education #48's OPEB
plan is financed on a pay-as-you-go basis, and as such, the financial statements do not report the
financial effects of OPEB until the promised benefits are paid. During fiscal year 2011, the Peoria
County Regional Office of Education #48 had 14 active employees and contributions to the OPEB plan
totaled $12,440. The Peoria County Regional Office of Education #48 did not obtain an actuarial
valuation of its postemployment benefits other than pension liability, or apply the alternative
measurement method in order to be in compliance with GASB Statement No. 45.
In the absence of the actuarial valuation, or the application of the alternative measurement method, the
auditors could not reasonably determine the amount by which this departure would affect the liabilities,
fund balances, and expenditures of the Peoria County Regional Office of Education #48 as of June 30,
2011.
The Peoria County Regional Office of Education #48 is aware of the requirements of GASB Statement
no. 45, but has not obtained an actuarial valuation or pursued alternative methods due to the cost of
doing so. The Regional Office is exploring more cost effective options of implementing this
requirement and is considering implementing it in 2012.
Anticipated Date of Completion:
As soon as funding is available.
Name of Contact Person:
Honorable Gerald Brookhart, Regional Superintendent of Schools
14d
Finding
No.
10-1
10-2
10-3
10-4
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2011
Condition
Lack of Adequate Policies and Procedures
Over Certain Administrative Functions
Controls over Financial Statement Preparation
Use of Designated Grant Balances
Departure From Generally Accepted
Accounting Principles
15
Current Status
Corrected
Repeated as Finding 11-2
Corrected
Repeated as Finding 11-3
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
The Regional Office of Education #48 for the County of Peoria provides this Management's Discussion and
Analysis of its fmancial statements. This narrative overview and analysis of the financial activities is for the
fiscal year 2011 that ended on June 30, 2011. Readers are encouraged to consider the information in
conjunction with the Regional Office's financial statements that follow.
During fiscal year 2011 the Regional Office of Education #48 implemented Governmental Accounting
Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Defmitions,
which required certain programs and funds to be reclassified and the restatement of beginning fund balances as
detailed in Note 13 to the financial statements. Because of these reclassifications the fund analysis is not
comparable between fiscal year 201 0 and fiscal year 2011. In addition, in fiscal year 2011 the Illinois Virtual
School program that was previously reported as an Education Fund was restated to be presented as a proprietary
fund.
2011 FINANCIAL HIGHLIGHTS
• Within the Governmental Funds, the General Fund revenues decreased by $49,543 from $1,163,942 in
fiscal year 2010 to $1,114,399 in fiscal year 2011. .General Fund expenditures decreased by $111,069
from $1,237,756 in fiscal year 2010 to $1,126,687 in fiscal year 2011. The majority of the revenue and
expenditure decreases are due to a decrease in payments made by the State and local governments for
employee benefits and other operational support on-behalf of the Regional Office.
• Within the Governmental Funds, the Special Revenue Fund revenue decreased by $1,059,308 from
$5,445,905 in fiscal year 2010 to $4,386,597 in fiscal year 2011. The Special Revenue Fund
expenditures decreased by $3,600,859 from $7,128,967 in fiscal year 2010 to $3,528,108 in fiscal year
2011. The majority of the revenue and expenditure decreases are due to a significant decrease in both
local funds and state grant funds within the Education Fund. Also, due to late payments from the State,
the decision was made not to accept certain state grants, as doing so would potentially impact the fiscal
viability of the Regional Office.
USING THIS REPORT
This report consists of a series of financial statements and other information, as follows:
• Management's Discussion and Analysis introduces the basic fmancial statements and provides an
analytical overview of the Regional Office's financial activities. ,
• The government-wide financial statements consist of a Statement of Net Assets and a Statement of
Activities. These provide information about the activities of the Regional Office of Education as a
whole and present an overall view of the Office's finances.
16a
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
USING THIS REPORT (CONTINUED)
• Fund financial statements report the Regional Office's operations in more detail than the government-wide
statements by providing information about the most significant funds.
• Notes to the financial statements provide additional information that is needed for a full understanding of
the data provided in the basic financial statements.
• Required supplementary information further explains and supports the fmancial statements and
supplementary information provides detailed information for each category of funds and about the non­major
funds.
REPORTING THE OFFICE AS A WHOLE
The Statement of Net Assets and the Statement of Activities
The government-wide statements report information about the Regional Office of Education #48 as a whole.
The Statement of Net Assets includes all of the assets and liabilities. All of the current year revenues and
expenses are accounted for in the Statement of Activities regardless of when cash is received or paid, using
accounting methods similar to those used by private-sector companies.
The two government-wide statements report the Office's net assets and how they have changed. Net assets (the
difference between the assets and liabilities) are one ·way to measure the Office's fmancial health or position.
• Over time, increases or decreases in the net assets can be an indicator of whether financial position is
improving or deteriorating, respectively.
• To assess the Regional Office's overall health, additional non-financial factors, such as new laws, rules,
regulations, and actions by officials at the state level need to be considered.
The government-wide financial statements present the Office's activities as both governmental and business­type
activities. Local, state and federal aid finance most of these activities.
The fund fmancial statements provide detailed information about the Peoria County Regional Office's funds,
focusing on its most significant or "major" funds. Funds are accounting devices that allow the tracking of
specific sources of funding and spending on particular programs. Some funds are required by state law. The
Regional Office of Education #48 established other funds to control and manage money for particular purposes.
16b
PEORlA COUNTY REGIONAL OFFICE OF EDUCATION #48
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
REPORTING THE OFFICE AS A WHOLE (CONTINUED)
The Office has three kinds of funds:
1) . Government funds account for all of the Office's services. These focus on how cash and other
financial assets that can be readily converted to cash flow in and out and the balances left at year-end
that are available for spending. Consequently, the governmental fund statements provide a detailed
short-term view that helps determine whether there are more or fewer resources that can be spent in
the near future to finance the Office's programs. The Office's Governmental Funds include: the
General Fund, Education Fund, Learning Technology Center, School Improvement Grant, Title II Co­op,
and various other non-major funds.
The governmental funds required financial statements include a Balance Sheet and a Statement of
Revenues, Expenditures, and Changes in Fund Balances.
2) Fiduciary funds are used to account for assets held by the Regional Office of Education #48 in a trust
capacity or as an agent for individuals and private or governmental organizations. These funds are
custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.
The fiduciary funds' required financial statements include a Statement of Fiduciary Net Assets.
3) Proprietary funds account for activities where the ROE charges customers for services. These funds
are most similar to a business that' operates for a profit. The ROE's enterprise funds include the
following: Local Workshops Fund, Illinois Virtual School Fund, and various other non-major
enterprise funds.
The proprietary funds required fmancial statements include a Statement of Net Assets, Statement of
Revenues, Expenses, and Changes in Fund Net Assets, and a Statement of Cash Flows.
A summary reconciliation between the government-wide financial statements and the fund financial
statements follows the fund financial statements.
OFFICE-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve, when examined over time, as one indicator of the financial position of
the Regional Office. The net assets at the end of fiscal year 2011 totaled $3,099 ,24_9. At the end of fiscal year
2010, the net assets were $2,096,440. The analysis that follows provides a summary of the Office's net assets
as of June 30,2011 and June 30, 2010, for the governmental and business-type activities.
16c
Current assets
Capital assets
Total assets
Current liabilities
Non current liabilities
Total liabilities
Net assets:
Invested in capital assets,
net of related debt
Unrestricted
Restricted for educational
purposes
Total net assets
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
CONDENSED STATEMENT OF NET ASSETS
Governmental Activities Business-Type Activities
2011 2010 2011 2010
$ 934,550 $ 3,557,594
157,301
$ 2,579,671
32,798
$ 1,043,354
32,874
$
76,463
1,011,013
443,524 .
443,524
76,463
296,780
194,246
567,489
3,714,895
2,632,367
2,632,367
144,209
901,634
36,685
$ 1,082,528
2,612,469
72,455
8,254
80,709
19,911
2,511,849
1,076,228
49,429
12,887
62,316
28,467
985,445
$ 2,531,760 $ 1,013,912 ====:::::::::=
$
$
Total Primary Government
2011 2010
3,514,221
109,261
3,623,482
515,979
8,254
524,233
96,374
2,808,629
194,246
3,099,249
$
$
4,600,948
190,175
4,791,123
2,681,796
12,887
2,694,683
172,676
1,887,079
36,685
2,096,440
The Peoria County Regional Office of Education's net assets increased by $1,002,809 from FY10. This
significant increase occurred primarily as a result of the full implementation and expansion of the Illinois
Virtual School throughout high schools across the State of Illinois, as well as aggressive cost cutting measures
and seeking o.ut alternative revenue sources due to on-going cash flow issues caused by the State of Illinois'
funding delays and reductions.
16d
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
CHANGES IN NET ASSETS
Governmental Activities Business-Type Activities Total
2011 2010 2011 2010 2011 2010
Revenues:
Program revenues
Charges for services $ $ $ 3,778,860 $ 1,028,090 $ 3,778,860 $ 1,028,090
Operating grants and
contributions 3,641,951 3,076,286 3,641,951 3,076,286
General revenues
Local sources 491,960 620,707 491,960 620,707
State sources (501,371) 3,935,544 (501,371) 3,935,544
Federal sources 42,026 42,026
Investment earnings 9,676 919 231 292 9,907 1,211
On behalf payments 867,082 1,095,515 867,082 1,095,515
Loss on disposal of assets (6,408) (35,846) (2,017) (6,408) (37,863)
Interest expense (765) (982) (765) (982)
Transfers ~250,1312 3,982 250,131 ~3,9822
Total revenues $ 4,252,759 $ 8,739,133 $ 4,028,457 $ 1,021,401 $ 8,281,216 $ 9,760,534
Expenses:
Program expenses
Salaries and benefits $ 1,458,337 $ 3,496,235 $ 1,204,759 $ 71,318 $ 2,663,096 $ 3,567,553
Purchased services 1,447,255 2,569,250 373,846 188,209 1,821,101 2,757,459
Supplies and materials 201,197 206,437 22,303 2,952 223,500 209,389
Payments to other governments 671,694 943,895 3,126 9,798 674,820 953,693
Capital outlay
Depreciation expense 64,335 88,555 15,046 11,646 79,381 100,201
Other objects 6,430 5,960 379 262 6,809 6,222
Administrative expenses
On-behalf payments- L~cal 299,305 367,027 299,305 367,027
On-behalf payments - State 567,777 728,488 567,777 728,488
Total expenses $ 4,716,330 $ 8,405,847 $ 1,619,459 $ 284,185 $ 6,335,789 $ 8,690,032
Change in net assets $ (463,571) $ 333,286 $ 2,408,998 $ 737,216 $ 1,945,427 $ 1,070,502
Net assets beginning of year (As restated) 1,031,060 749,242 122,762 276,696 1,153,822 1,025,938
Net assets end of year $ 567,489 $ 1,082,528 $ 2,531,760 $ 1,013,912 $ 3,099,249 $ 2,096,440
16e
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
Governmental Activities
Revenues for governmental activities were $4,252,759 and expenses were $4,716,330 for the year ended June
30, 2011. Revenues for governmental activities were $8,739,133 and expenses were $8,405,847 for the year
ended June 30, 2010. These decreases in revenues and expenditures are due primarily to decreases in state
grants and subsequent decreases in services provided in those specific areas by the Regional Office. Also, as
mentioned previously, due to late payments from the State, the decision was made not to accept certain state
grants, as doing so would potentially impact the fiscal viability of the Regional Office.
Financial Analysis of the Peoria County Regional Office of Education #48 Funds
As previously noted, the Peoria County Regional Office of Education #48 uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. The Agency's Governmental Funds reported
combined fund balances of $274,787 at June 30, 2011 compared to fiscal year 2010's ending fund balance of
($1,235,004). The majority of this increase is due to the late receipt of state grant revenues in the Education
Fund in 2011 that were actually due in fiscal year 2010. The large negative balance in 2010 was the result of
late payments from the State of Illinois that were so late that they could not be considered to provide current
financial resources in 2010 and were not recognized until2011.
Budgetary Highlights
The Peoria County Regional Office of Education #48 annually adopts budgets for several funds. The Institute
Fund Budget, the Direct Services Budget and the Special Funds Budget are prepared by the Regional
Superintendent and serve as a guideline for activities and expenditures. The Regional Superintendent annually
prepares an Office Operations Budget and submits it to the Peoria County Board for their approval. The Office
Operations Budget covers a fiscal year that runs from January 1 to December 31. All grant budgets are
prepared by the Peoria County Regional Office of Education #48 and submitted to the granting agency for
approval. .Amendments must be submitted under guidelines established by the granting agency. Schedules
showing the budget amounts compared to the Office's actual financial activity are included in the
supplementary information of this report.
Capital Assets
Capital Assets of the Peoria County Regional Office of Education #48 include office equipment, computers,
audio-visual equipment, and office furniture. The Peoria County Regional Office of Education #48 maintains
an inventory of capital assets that have been accumulated over time. During the year ended June 30, 2011,
Peoria County Regional Office of Education #48 purchased assets totaling $4,875 and disposed of assets
totaling $58,372, resulting in an ending balance of $600,303~ In addition, the Peoria County Regional Office of
Education #48 has adopted a depreciation schedule that reflects the level of Net Governmental Activities
Capital Assets. More detailed information about capital assets is available in Note 7 of the financial statements.
16f
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
Economic Factors and Next Year's Budget
At the time these financial statements were prepared and audited, the Peoria County Regional Office of
Education #48 was aware of several existing circumstances that could affect its financial health in the future:
• Due to continuing uncertainties in funding from the State of Illinois, all State-funded grant programs for
FY' 12 have been voluntarily eliminated or reduced by the Peoria Regional Office of Education except
those that are self-sustaining through district and local workshops and grants.
• Also, due to the Governor's recent amendatory veto of the State budget, salaries for the Peoria Regional
Superintendent and Asst. Regional Superintendent have been eliminated. If this situation is not resolved
within the next few months, these offices will cease to function, thus jeopardizing the total operation of
this office.
• The Regional Office will continue in FY' 12 as the primary administrator and fiscal agent for the $1.4
million Illinois Virtual School project for the entire State of Illinois, including Chicago.
Contacting the Regional Office's Financial Management
This financial report is designed to provide the Regional Office's citizens, taxpayers, clients, and other
constituents with a general overview of its finances and to demonstrate the accountability for the money it
receives. If the reader has questions concerning this report or needs additional financial information, please
contact The Regional Superintendent of the Peoria County Regional Office of Education #48 at 324 Main St.,
Room 401, Peoria, IL 61602.
16g
BASIC FINANCIAL STATEMENTS
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
STATEMENT OF NET ASSETS
JUNE 30, 2011
Primary Government
Governmental Business-Type
Activities Activities
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 651,259 $ 1,303,876
Due (to) from other funds (426,076) 426,076
Accounts receivable 6,871
Due from other governments:
Local 24,276 833,052
State 361,246
Federal 316,974
Prepaid expenses 16,667
Total current assets 934,550 2,579,671
NONCURRENT ASSETS:
Capital assets, net of depreciation 76,463 32,798
TOTAL ASSETS 1,011,013 2,612,469
LIABILITIES
CURRENT LIABILITIES:
Accounts payable 112,538 5,937
Lease payable 4,633
Accrued payroll and employee benefits 12,550 61,885
Due to other governments:
State 79,734
Deferred revenue 238,702
Total current liabilities 443,524 72,455
NONCURRENT LIABILITIES:
Lease payable 8,254
TOTAL LIABILITIES 443,524 80,709
NET ASSETS
Invested in capital assets, net of related debt 76,463 19,911
Unrestricted 296,780 2,511,849
Restricted for educational purposes 194,246
TOTAL NET ASSETS $ 567,489 $ 2,531,760
The notes to the fmancial statements are an integral part of this statement.
17'
$
$
Total
1,955,135
6,871
857,328
361,246
316,974
16,667
3,514,221
109,261
3,623,482
118,475
4,633
74,435
79,734
238,702
515,979
8,254
524,233
96,374
2,808,629
194,246
3,099,249
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2011
Net (Expense) Revenue and
ProB!:am Revenues Changes in Net Assets
Operating Prim~ Government
Charges for Grants and Governmental Business-Type
FUNCTIONS/PROGRAMS Exeenses Services Contributions Activities Activities
PRIMARY GOVERNMENT:
Governmental Activities:
Instructional Services:
Salaries and benefits $ 1,458,337 $ $ 1,555,465 $ 97,128 $ $
Purchased services 1,447,255 1,142,914 (304,341)
Supplies and materials 201,197 279,084 77,887
Other objects 6,430 212 (6,218)
Depreciation 64,335 (64,335)
Capital outlay 2,800 2,800
Payments to other govennnents 671,694 661,476 (10,218)
Administrative:
On-behalf payments - Local 299,305 (299,305)
On-behalf payments - State 567,777 {567,7772
Total Governmental Activities 4,716,330 3,641,951 {1,074,3792
Business-type Activities:
Registration fees 99,579 150,228 50,649
Local revenues 45,650 155,229 109,579
Tuition and subscriptions 1,474,995 3,473,403 1,998,408
Total Business-type Activities 1,620,224 3,778,860 2,158,636
Total Primary Government $ 6,336,554 $ 3,778,860 $ 3,641,951 (1,074,379) 2,158,636
General Revenues:
Local sources 491,960
State sources (501,371)
Federal sources
On-behalf payments - Local 299,305
On-behalf payments - State 567,777
Loss on disposal of equipment (6,408)
Investment income 9,676 231
Transfers {250,1312 250,131
Total General Revenues and Transfers 610,808 250,362
Change in net assets (463,571) 2,408,998
Net Assets- beginning (Restated- See Note 13) 1,031,060 122,762
Net Assets - ending $ 567,489 $ 2,531, 760 $
The notes to the financial statements are an integral part of this statement.
18
Total
97,128
(304,341)
77,887
(6,218)
(64,335)
2,800
(10,218)
(299,305)
{567,7772
{1,074,3792
50,649
109,579
1,998,408
2,158,636
1,084,257
491,960
(501,371)
299,305
567,777
(6,408)
9,907
861,170
1,945,427
1,153,822
3,099,249
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30,2011
Other
General Education NonMajor.
Fund Fund Funds Eliminations
ASSETS
Cash and cash equivalents $ 184,094 $ 337,682 $ 129,483 $
Due from other funds 60,795 (60,795)
Accounts receivable 6,871
Due from other governments:
Local 24,276
State 361,246
Federal 316,974
TOTAL ASSETS $ 276,036 $ 1,015,902 $ 129,483 $ (60,795)
LIABILITIES AND FUND BALANCE
LIABILITIES:
Accounts payable $ 10,058 $ 101,090 $ 1,390 $
Accrued payroll and employee benefits 12,550
Due to other funds 21,484 465,387 (60,795)
Due to other governments:
State 79,734
Deferred revenue 454,941
Total liabilities 31,542 1,113,702 1,390 (60,795)
FUND BALANCE:
Restricted 66,153 128,093
Assigned 174,787
Unassigned 69,707 (163,953)
Total fund balance 244,494 (97,800) 128,093
TOTAL LIABILITIES AND
FUND BALANCE $ 276,036 $ 1,015,902 $ 129,483 $ (60,795)
The notes to the financial statements are an integral part of this statement.
19
Total
Governmental
Funds
$ 651,259
6,871
24,276
361,246
316,974
$ 1,360,626
$ 112,538
12,550
426,076
79,734
454,941
1,085,839
194,246
174,787
(94,246)
274,787
$ 1,360,626
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL FUNDS
JUNE 30, 2011
Total fund balances- governmental funds
Amounts reported for governmental activities in the Statement ofNet Assets
are different because:
Capital assets used in governmental activities are not
financial resources and, therefore, are not reported in the funds.
Revenues in the Statement of Activities that do not provide current
financial resources, and are not reported as revenues in the funds.
Net assets of governmental activities
$ 274,787
76,463
216,239
$ 567,489
The notes to the financial statements are an integral part of this statement.
20
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES 1N FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 3 0, 2011
Other
General Education NonMajor
Fund Fund Funds
REVENUES
Local sources $ 245,557 $ 162,441 $ 83,962
State sources 1,760 2,075,451 2,200
Federal sources 2,062,543
On-behalf payments - Local 299,305
On-behalf payments - State 567,777
Total revenues 1,114,399 4,300,435 86,162
EXPENDITURES
Instructional Services
Salaries and benefits 135,297 1,321,036 2,004
Purchased services 115,942 1,292,825 38,488
Supplies and materials 2,279 191,943 6,975
Other objects 6,087 143 200
Payments to other governments 671,694
On-behalf payments - Local 299,305
On-behalf payments - State 567,777
Capital outlay 2,800
Total expenditures 1,126,687 3,480,441 47,667
Excess/(Deficiency) of revenues over expenditures (12,288) 819,994 38,495
OTIIER FINANCING SOURCES (USES)
Transfers in 39,166 214,873
Transfers out (10,844) (493,086) (240)
Interest income 35 9,625 16
Total other fmancing sources 28,357 (268,5882 (2242
Net change in fund balances 16,069 551,406 38,271
FUND BALANCE (DEFICIT) -BEGINNING (RESTATED-See Note 13) 228,425 (649,2062 89,822
FUND BALANCE- ENDING $ 244,494 $ (97,800) $ 128,093
The notes to the financial statements are an integral part of this statement.
21
Eliminations
$
(214,958)
214,958
Total
Governmental
Funds
$ 491,960
2,079,411
2,062,543
299,305
567,777
5,500,996
1,458,337
1,447,255
201,197
6,430
671,694
299,305
567,777
2,800
4,654,795
846,201
39,081
(289,212)
9,676
(240,4552
605,746
(330,9592
$ 274,787
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTNITIES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
Net change in fund balances $ 605,746
Amounts reported for governmental activities in the Statement of
Activities are different because:
Governmental funds report capital outlays as expenditures. However,
in the Statement of Activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense.
Capital outlay
Depreciation expense
Loss on disposal of equipment
Revenues reported in the Statement of Activities in the prior year
that did not provide current financial resources, and were not
reported as revenues in the funds.
Reported in the funds in the current year:
State sources
Federal sources
Revenues in the Statement of Activities that do not provide current
financial resources, and are not reported as revenues in the funds.
Deferred revenue
State sources
Federal sources
Change in net assets of governmental activities
$ 2,800
(64,335)
(6,408)
(1,204,352)
(13,261)
$ 13,981
202,258
The notes to the financial statements are an integral part of this statement.
22
(67,943)
(1,217,613)
. 216,239
$ (463,571)
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30,2011
Business-type Activities
Pro:erietary Funds
Nonmajor
Local Illinois Virtual Proprietary
Worksho:es School Funds Eliminations
Assets
Current assets:
Cash and cash equivalents $ 528,705 $ 634,227 $ 140,944 $
Due from other governments
Local 26,702 798,725 7,625
Due from other funds 96,147 347,997 (18,068)
Prepaid expenses 16,667
Total current assets 651,554 1,797,616 148,569 (18,068)
Noncurrent assets:
Capital assets, net of depreciation 13,664 19,134
Total Assets 665,218 1,816,750 148,569 (18,068)
Liabilities and Net Assets
Current liabilities:
Accounts payable 6 5,931
Accrued payroll liabilities 677 61,208
Lease payable 4,633
Due to other funds 18,068 (18,068)
Deferred revenue
Total current liabilities 23,384 . 67,139 (18,068)
Noncurrent liabilities:
Lease payable, net of current 8,254
Total Liabilities 31,638 67,139 (18,068)
Net Assets
Invested in capital assets, net of related debt 777 19,134
Unrestricted 632,803 1,730,477 148,569
Total Net Assets $ 633,580 $ 1,749,611 $ 148,569 $
The notes to the fmancial statements are an integral part of this statement.
23
Totals
$ 1,303,876
833,052
426,076
16,667
2,579,671
32,798
2,612,469
5,937
61,885
4,633
72,455
8,254
80,709
19,911
2,511,849
$ 2,531,760
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
Business-type Activities-
Proprietary Funds
Nonrnajor
Local illinois Virtual Proprietary
Workshops School Funds Eliminations
Operating Revenues
Charges for services $ 150,228 $ 3,473,403 $ 155,229 $
Operating Expenses
Salaries and benefits 58,448 1,113,933 32,378
Purchased services 25,538 342,870 5,438
Supplies and materials 3,594 10,888 7,821
Payments to other governments 6 3,120
Other objects 366 13
Depreciation 10,862 4,184
Total operating expenses 98,814 1,474,995 45,650
Operating Income (Loss) 51,414 1,998,408 109,579
Nonoperating Revenue (Expense)
Interest income 35 186 10
Interest expense (765)
Total nonoperating revenue (expense) (730) 186
Income (Loss) Before Transfers 50,684 1,998,594 109,589
Transfers in 291,401 407 (41,677)
Transfers out (41,677) 41,677
Total transfers 291,401 (41,677) 407
Change in Net Assets 342,085 1,956,917 109,996
Net Assets- Beginning (Restated- See Note 13) 291,495 (207,306) 38,573
Net Assets - Ending $ 633,580 $ 1,749,611 $ 148,569 $
The notes to the fmancial statements are an integral part of this statement.
24
Totals
$3,778,860
1,204,759
373,846
22,303
3,126
379
15,046
1,619,459
2,159,401
231
(765)
(534)
2,158,867
250,131
250,131
2,408,998
122,762
$2,531,760
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
Business-type Activities
Proprietary Funds
Nonmajor
Local lllinois Virtual Proprietary
Workshops School Funds Totals
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and providers of goods and services
Payments to employees
Net cash provided by (used for) operating activities
Cash Flows from Capital and Related Financing Activities
Acquisition of capital assets
Principal paid on lease obligations
Interest paid on lease obligations
Net cash (used for) capital and related fmancing activities
Cash Flows from Investing Activities
Interest earned from investments
Net cash provided by investing activities
Cash Flows from Noncapital Financing Activities
Cash payments to other funds
Cash payments from other funds
Net cash provided by (used for) noncapital financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents - Beginning
Cash and cash equivalents - Ending
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation
Change in assets and liabilities:
(Increase )/Decrease in prepaid expenses .
(Increase) I Decrease in due from other governments
Increase I (Decrease) in deferred revenue
Increase I (Decrease) in lease payable
Increase I (Decrease) in accounts payable
Net cash provided by (used for) operating activities
$ 194,633 $ 2,925,652 $
(52,909) (562,118)
(58,448} (1,113,933}
83,276 1,249,601
(2,075)
(4,407)
(765)
(5,172} (2,075}
35 186
35 186
(5,460) (613,485)
442,278
436,818 (613,485}
514,957 634,227
13,748
$ 528,705 $ 634,227 $
$ 51,414 $ 1,998,408 $
10,862 4,184
(16,667)
44,405 394,867
(942,618)
(23,405} (188,5732
$ 83,276 $ 1,249,601 $
The notes to the fmancial statements are an integral part of this statement.
25
134,587 $ 3,254,872
(34,671) (649,698)
(32,378} (1,204,759)
67,538 1,400,415
(2,075)
(4,407)
(765}
(7,247)
231
10 231
(618,945)
7,870 450,148
7,870 (168,797}
75,418 1,224,602
65,526 79,274
140,944 $ 1,303,876
109,579 $ 2,159,401
15,046
(16,667)
(2,467) 436,805
(18,175) (960,793)
(13,092) (13,092)
(8,307} (220,285}
67,538 $ 1,400,415
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUND
ASSETS
Cash and cash equivalents
Due from other governments
TOTAL ASSETS
LIABILITIES
Due to other governments
Accounts payable
TOTAL LIABILITIES
NET ASSETS
Reserved for scholarships
JUNE 30, 2011
$
$
$
Peoria
Promise
Foundation
3,414
3,414
6,871
6,871
(3,457)
The notes to the financial statements are an integral part of this statement.
26
Agency
Funds
$ 27,801
1,137,634
$ 1,165,435
$ 1,165,435
$ 1,165,435
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
ADDITION
Donations
DEDUCTION
Salaries and benefits
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING OF YEAR
NET ASSETS, END OF YEAR
$
$
Peoria
Promise
Foundation
38,145
41,602
(3,457)
(3,457)
The notes to the financial statements are an integral part of this statement.
27
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO TilE FINANCIAL STATEMENTS
FOR TilE YEAR ENDED JUNE 30, 2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Peoria County Regional Office of Education #48 was formed under the provisions of the
State of Illinois, Illinois State Board of Education.
In 2011, the Regional Office of Education #48 implemented Governmental Accounting
Standards Board (GASB) Statement No.54, Fund Balance Reporting and Governmental Fund
Type Definitions, GASB Statement No. 59, Financial Instruments Omnibus, and GASB
Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in
Pre-November 30, 1989 FASB and AICPA Pronouncements. The Regional Office of Education
#48 implemented these standards during the current year; however, GASB Statements No. 59
and 62 had no impact on the financial statements. The implementation of GASB Statement No.
54 changed fund balance reporting for governmental funds by adding some additional fund
balance classifications, clarifying governmental fund type definitions,. and providing some
additional disclosures on how fund balance constraints are imposed and may be modified or
eliminated.
A. DATE OF MANAGEMENT'S REVIEW
The Peoria County Regional Office of Education #48 has evaluated subsequent events through
December 20, 2011, the date which the financial statements were available to be issued.
B. FINANCIAL REPORTING ENTITY
The Regional Superintendent is charged with responsibility for township fund lands; registration
of the names of applicants for scholarships to State controlled universities; examinations and
related duties; visitation of public schools; direction of teachers and school officers; to serve as
the official advisor and assistant of school officers and teachers; to conduct teacher institutes as
well as to aid and encourage' the formation of other teachers' meetings and assist in their
management; evaluate the schools in the region; examine evidence of indebtedness; file and keep
the returns of elections required to be returned to the Regional Superintendent's office; and file
and keep the reports and statements returned by school treasurers and trustees.
The Regional Superintendent is also charged with the responsibilities of conducting a special
census, when required; providing notice of money distributed to treasurers, board presidents,
clerks, and secretaries of the school districts on or before each September 30; maintenance of a
map and numbering of the Peoria County Regional Office of Education #48's districts; providing
township treasurers with a list of district treasurers; inspecting and approving building plans
which comply with State law; performing and reporting on annual building inspections;
investigating bus drivers for valid bus driver permits and taking related action as may be
required; maintaining a list of unfilled teaching positions and carrying out other related duties
required or permitted by law.
28
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. FINANCIAL REPORTING ENTITY (Concluded)
The Regional Superintendent is responsible for inspection and approval or rejection of school
treasurers' bonds. The Regional Superintendent is also required to provide the State Board of
Education with an affidavit showing that the treasurers of school districts under his control are
properly bonded.
The Regional Superintendent is also responsible for apportionment and payment of funds
received from the State for the districts in the Peoria County Regional Office of Education #48,
or see that no payments are made unless the treasurer has filed or renewed appropriate bond and
that the district has certified publication of the annual financial report. The Regional
Superintendent is required to provide opinions and advice related to controversies under school
law.
For the period ended June 30, 2011, the Peoria County Regional Office of Education #48 applied
for, received, and administered numerous State and federal programs and grants in assistance and
support of the educational activities of the school districts in Peoria County Regional Office of
Education #48. Such activities are reported as a single special revenue fund (Education Fund).
C. SCOPE OF THE REPORTING ENTITY
The Peoria County Regional Office of Education #48 reporting entity includes all related
organizations for which they exercise oversight responsibility.
The Peoria County Regional Office of Education #48 has developed criteria to determine
whether outside agencies with activities which benefit the citizens of the Peoria County Regional
Office of Education #48, including districts or joint agreements which serve pupils from
numerous regions, should be included in its financial reporting entity. The criteria include, but
are not limited to, whether the Peoria County Regional Office of Education #48 exercises
oversight responsibility (which includes financial interdependency, selection of governing
authority, designation of management, ability to significantly influence operations, and
accountability for fiscal matters), scope of public service, and special financing relationships.
The districts and joint agreements have been determined not to be a part of the reporting entity
after applying the manifesting of oversight, scope of public service, and special financing
relationships criteria and are therefore excluded from the accompanying financial statements
because the Peoria County Regional Office of Education #48 does not control the assets,
operations, or management of the districts or joint agreements. In addition, the Peoria County
Regional Office of Education #48 is not aware of any entity, which would exercise such
oversight as to result in the Peoria County Regional Office of Education #48 being considered a
component unit of the entity.
29
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30,2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The Statement of Net Assets and the Statement of Activities are government-wide financial
statements. They report information on all of the Peoria County Regional Office of Education
#48's activities with most of the interfund activities removed. Governmental activities include
programs supported primarily by State and federal grants and other intergovernmental revenues.
The Peoria County Regional Office of Education #48 has three business-type activities; Local
Workshops, Tech Support, and the Illinois Virtual School. The Local Workshop Fund accounts
for fees charged for various workshops and conferences that provide staff development for
educators in central and west central Illinois. The Tech Support Fund accounts for monies
received related to the Regional Office providing technical support to District 150 and the related
payroll expenses. The Illinois .Virtual School Fund accounts for tuition and subscription costs
charged to schools and the Illinois State Board of Education for use of the Illinois Virtual School
(IVS).
The Peoria County Regional Office of Education #48's government-wide frnancial statements
include a Statement of Net Assets and a Statement of Activities. These statements present a.
summary of governmental and business-type activities for the Peoria County Regional Office of
Education #48 accompanied by a total column. These statements are presented on an "economic
resources" measurement focus as prescribed by GASB Statement No. 34. All of the Peoria
County Regional Office of Education #48's assets and liabilities, including capital assets, are
included in the accompanying Statement of Net Assets. The Statement of Activities
demonstrates the degree to which the direct expenses of a given function are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific function.
Program revenues include 1) charges for services, and 2) grants and contributions that are
restricted to meeting operational or capital requirements of a particular function.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds are reported as separate columns in the fund
financial statements.
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to
interfund activities, such as, payables, receivables and transfers. Interfund activities between
governmental funds and proprietary funds appear as due to/ due from on the governmental fund
Balance Sheet and proprietary fund Statement of Net Assets and as other financing sources and
uses on the governmental fund Statement of Revenues, Expenditures and Changes in Fund
Balances and as transfers in and out on the proprietary fund Statement of Revenues, Expenses
and Changes in Fund Net Assets. All interfund transactions between governmental funds are
eliminated on the government-wide financial statements. Interfund activities between
governmental funds and business-type funds remain as due to/due from on the government-wide
financial statements.
30
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (Concluded)
All internal balances in the Statement of Net Assets have been eliminated except those
representing balances between the governmental activities and the business-type activities.
The purpose of interfund borrowing and permanent transfers is to cover temporary or permanent
short falls in cash flow within grant programs and funds.
E. PROPRIETARY FUND FINANCIAL STATEMENTS .
Proprietary fund financial statements include a Statement of Net Assets, a Statement of
Revenues, Expenses and Changes in Fund Net Assets, and a Statement of Cash Flows for each
major proprietary fund and nonmajor funds aggregated.
Proprietary funds are accounted for using the "economic resources" measurement focus and the
accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent)
are included on the Statement of Net Assets. The Statement of Revenues, Expenses and Changes
in Fund Net Assets present increases (revenues) and decreases (expenses) in total net assets.
Under the accrual basis of accounting, revenues are recognized in the period in which they are
earned while expenses are recognized in the period in which the liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the
primary operations of the fund. All other revenues are reported as non-operating revenues.
Operating expenses are those expenses that are essential to the primary operations of the fund.
All other expenses are reported as non-operating expenses.
F. GOVERNMENTAL FUND FINANCIAL STATEMENTS
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances for all major governmental funds and nonmajor
funds aggregated. An accompanying schedule is presented to reconcile and explain the
differences in fund balances and changes in fund balances as presented in these statements to the
net assets and changes in net assets presented in the government-wide financial statements.
The governmental fund financial statements have been prepared in accordance with generally
accepted accounting principles ori the modified accrual basis. Under modified accrual basis of
accounting, revenues are recorded when susceptible to accrual i.e., both measU.rable and
available. Available means collectible within the current period or soon enough thereafter to be
used to pay liabilities of the current period, typically 60 days. Expenditures are recognized in the
accounting period in which the fund liability is incurred, if measurable, except expenditUres for
prepaid expenses and other long-term obligations, which are recognized when paid.
31
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011.
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. GOVERNMENTAL FUND FINANCIAL STATEMENTS (Concluded)
Revenue received after the Regional Office's availability period are reported as deferred revenue
in the fund statements and are reported as current revenue in the Statement of Activities.
G. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Grants and si!fiilar items are recognized as revenue as soon as all eligibility requirements
imposed by the grantor have been met.
The governmental funds financial statements focus on the measurement of spending or "financial
flow" and the determination of changes in financial position, rather than upon net income
determination. This means that only current assets and current liabilities are generally included
on their balance sheets. Their reported fund balance (net current assets) is· considered a measure
of "available spendable resources." Governmental fund operating statements present increases
(revenues and other financing sources) and decreases (expenditures and other fmancing uses) in
net current assets. Accordingly, they are said to present a summary of sources and uses of
"available spendable resources" during a period.
In applying the susceptible to accrual concept to intergovernmental revenues, the legal and
contractual requirements of the numerous individual programs are used as guidance. There are
however, essentially two types of these revenues. In one, monies must be expended on the
specific purpose or project before any amounts will be paid to the Peoria County Regional Office
of Education #48; therefore, revenu~s are recognized based upon the expenditures recorded. In
the other, monies are virtually unrestricted as to purpose of expenditure and are usually
recoverable only for failure to comply with prescribed compliance requirements. These
resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual
criteria are met.
Under the terms of grant agreements, Peoria County Regional Office of Education #48 funds
certain programs by a combination of specific cost-reimbursement grants and general revenues.
Thus, when program expenses are incurred, there are both restricted and unrestricted funding
resources available to fmance the program. It is the Peoria County Regional Office of Education
#48's policy to first apply cost-reimbursement grant resources to such programs, and then general
revenues. It is the Peoria County Regional Office of Education #48's policy to first apply restricted
funds, then unrestricted. For unrestricted fund balances, committed funds are used first, then
assigned funds, then unassigned if any.
32
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. FUND ACCOUNTING
The Peoria County Regional Office of Education #48 uses funds to maintain its financial records
during the year. A fund is defined as a fiscal and accounting entity with a self-balancing set of
accounts. The Peoria County Regional Office of Education #48 uses governmental, proprietary,
and fiduciary funds.
GOVERNMENTAL FUNDS
Governmental funds are those through which most governmental functions typically are reported.
Governmental funds reporting focuses on the sources, uses and balances of current financial
resources. Expendable assets are assigned to the various governmental funds according to the
purpose for which they may or must be used. Current liabilities are assigned to the fund from
which they will be paid. The difference between governmental fund assets and liabilities is
reported as a fund balance.
As prescribed by GASB Statement No. 34, governmental fund reporting focuses on the major
funds, rather than on the fund type. There is a two-step process for determining if a fund should
be reported as a major fund: 1) total assets, liabilities, revenues, or expenditures/expenses
(excluding extraordinary items) of an individual fund are at least 10% of the corresponding total
for the fund type, and 2) total assets, liabilities, revenues, or expenditures/expenses (excluding
extraordinary items) of an individual fund are at least 5% of the corresponding total for the total
of all governmental and proprietary funds combined. Funds that do not meet the major fund
determination requirements are reported in aggregate as nonmajor funds. The Peoria County
Regional Office of Education #48 has presented all major funds that met the above
qualifications.
The Peoria County Regional Office of Education #48 reports the following major governmental
funds:
General Fund - The General Fund is used to account for resources traditionally associated with
government which are not required, legally or by sound financial management, to be accounted
for in another fund. The General Fund is always considered a major fund. The following
accounts are included in the General Fund: ·
Administrative Interest Fund - To account for interest earned on local, education for
employment, and target fund accounts.
ROE Local Fund - To account for transition money received from the State of Illinois.
Transition monies are the monies paid by the State of Illinois to ROEs affected by
the closing of the Educational Service Centers following the merger of various
ROEs.
33
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
. GOVERNMENTAL FUNDS (Continued)
General State Aid - This program is used to account for grant monies received for, and
payment of, expenditures related to any educational purposes consistent with State
and local requirements.
Jail Library - To account for local monies received to provide a librarian at the Peoria
County Jail.
Pleasant Valley - To account for monies received from Pleasant Valley School for
expenditures incurred providing professional development support and assistance.
Lincoln Senior Award - To account for local monies received to provide Abraham
Lincoln A wards to sixteen high school students.
National Board Certification- To account for monies received to provide reimbursements
to teachers who complete a program through a college for a national certificate
which is good for 10 years.
Office of Prevention - To account for monies used to create a "library" of substance abuse
and violence prevention materials which directs a 40 percent portion of Title IV
grants from 15 Peoria County school districts to Peoria County Sheriff for use in the
D.A.R.E. program.
Spring Celebration - To account for monies received for a program designed to offer
students in grades K-12 the opportunity to perform, exhibit, and demonstrate their
abilities in the Fine Arts and Applied Arts.
Hospital Tutoring- State laws require that hospitalized students receive tutoring. To account
for the related transactions, including the receipt of the bills from the hospitals,
billing the appropriate schools, receiving payment from the schools, and remitting
payments to the hospitals.
Directory - To account for the collection and distribution of funds used for advertising space
in the school directory.
Food Co-op - To account for the Regional Office of Education's administration of food
programs for the schools participating in the co-op.
Consortium for Educational Change - To provide Peoria School Districts coaching,
consulting, and facilitating in the area of continuous improvement and leadership
development.
34
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
GOVERNMENTAL FUNDS (Continued)
Title II Co""OP - To account for monies spent to enhance math and science instruction within ·
participating schools.
Upward Generated- To account for local monies received to promote adult literacy.
Major Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of
specific revenue sources (other than fiduciary or major capital projects) that are restricted to
expenditures for specified purposes. Major special revenue funds include the following:
Education Fund - This fund is used to account for and report proceeds of specific revenue
sources that are restricted by grant agreements or contracts to expenditures for specified
purposes supporting education enhancement programs as follows:
·Adult Education Basic and Performance - To account for State and federal monies
received for educational programs for incarcerated persons.
Upward SOS- To account for State monies received to promote adult literacy.
Communities for Youth Truants Alternative - To account for monies received for
programs leading to a high school diploma for students with truancy problems.
McKinney-Vento Education for Homeless Children and Youth- To account for monies
received to provide information to schools, community members and government
entities about the educational rights of homeless students.
Peoria County- To account for monies received to support and enhance the education of
the citizenry of Peoria.
Learn and Serve America- To account for monies received to encourage and support the
use of service learning as a teaching methodology in the elementary and secondary
schools of Illinois.
Learning Technology Center - General Operations - To account for monies received to
provide a technology support system for area school districts.
ROEIISC Operations- To account for the administration of the Two Rivers Professional
Development Center, which provides staff training and development and school
improvement services.
35
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
GOVERNMENTAL FUNDS (Continued)
Education Technology Competitive Grant - To account for monies received to provide
staff development and resources to area educators.
Title I School Improvement and Accountability- To account for monies received from
the State (federal dollars) to support school improvement services for Title I
schools in academic difficulty.
Title II Teacher Quality Leadership - To account for monies received from the State
(federal dollars) to support school improvement services for schools in academic
difficulty.
Title I Reading First Part B SEA (4337-00) - To account for monies received from the
State (federal dollars) for expenditures incurred providing reading assistance to
Reading First districts and buildings.
Reading First Super Region (4337-04) - To account for monies received from the State
for expenditures incurred providing professional development to teachers related
to response to intervention
Coordination and Services Grant - To account for monies received from the State to
support school improvement services for schools in academic difficulty.
Mathematics and Science Partnership - To account for monies received from the ·State
(federal dollars) for expenditures incurred providing math/science grant
workshops and services.
Special Education - IDEA Part D - To account for monies received from the State
(federal dollars) for expenditures incurred to combine professional development
in response to intervention, standards aligned classroom, and reading literacy to
improve intervention with children.
Illinois Department of Public Health - To account for monies received from the State for
expenditures incurred in providing teachers with information about asthma.
Socially Emotional Learning- To account for monies received to identify and implement
teams that will develop a framework for the integration of SEL Standards and
other mental health initiatives.
36
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
GOVERNMENTAL FUNDS (Continued)
Preschool for All Children - To account for monies from the State for expenditures
incurred to make voluntary preschool available to all 3 and 4 year olds in an effort
to help those children prepare for kindergarten and their school career.
Standards Aligned Classroom - Statewide Professional Development - To account for
monies received from Regional Office of Education #11 for expenditures for State
Standard Aligned Classroom initiatives and salaries.
Principal Mentoring - To provide an experienced mentor to all principals new to the
profession within Illinois public schools.
Gifted Education - Grantees of the Gifted Education Program funds are required to
sponsor Gifted Education Seminars in their region. The purchase of supplemental
educator materials, classroom supplies and oversight of the grant are additional
components of the initiative.
Beginning Teacher Induction- The Illinois State Board of Education provided funding for
competitive grants for new teachers to the profession to be mentored by trained
mentors. The Peoria Regional Office was awarded the grant that will assist new
teachers during their first year of educational practice.
State Implementation and Scaling-up of Evidence-based Practices (SISEP)-To provide
State level leadership to support collaboration between general education and
special education.
Transportation Career Cluster- To account for federal funds received to develop a series
of grade 6-12 curriculum units that will introduce students to careers, skills and
concepts they will need to succeed in the transportation industry.
Regional Safe Schools - To account for monies passed through to Peoria County School
District 150.
State Implementation and Scaling-up of Evidence-based Practices (SISEP) - University
of North Carolina - To account for federal funds to provide fiscal and
administrative support for State transformation specialists and regional
implementation teams in building capacity in the State, provide assistance for
ongoing coordination of regional implementation teams as developed, and
provide technical assistance and support to regional implementation team.
37
PEORlA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
GOVERNMENTAL FUNDS (Continued)
IDEA ARRA- Galesburg -To account for federal funding to provide Standards-Aligned
Classroom coaching; Response to intervention training and differentiation
instruction to grades 6-12 educators.
Title I ARRA- Galesburg - To account for federal funding to provide Standards-Aligned
Classroom coaching; Response to intervention training and differentiation instruction
to grades PreK-5 educators.
ARRA- Education Jobs Fund Program- To account for federal funding passed through the
State to provide assistance to save or create education jobs for the 2010-2011 school
year.
ARRA- Title I School Improvement and Accountability- To account for monies received
from the State (federal dollars) to implement programs in schools that have high
concentrations of students from families in poverty in order to improve teaching and
learning for students most at risk of failing to meet state academic achievement
standards.
Illinois Virtual School- RTI Online- To account for State funding to provide subscriptions
for online access to the Illinois Virtual School that provides professional
development for educators.
The Peoria County Regional Office of Education #48 reports the following nonmajor governmental
funds:
Art Opportunities - To account for contributions received for expenditures made for the art
opportunities program. .
· Bus Driver Training - This fund accounts for State and local receipts and expenses as a result
of training school district bus drivers.
Secretary - To account for local monies received to provide an additional secretary for the
Regional Office.
General Education Development - To account for the Regional Office of Education's
administration of the GED Testing Program. Revenues are received from testing and
diploma fees.
Institute - This fund accounts for teacher certificate registration, issuance and evaluation fees
for processing certificates, and expenses of meetings of a professional nature. All
funds generated remain restricted until expended only on the aforementioned
activities.
38
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
GOVERNMENTAL FUNDS (Concluded)
Supervisory - This fund accounts for proceeds provided to the Regional Superintendent
by the Illinois State Board of Education to be used for travel and related purposes.
PROPRlETARY FUNDS
Proprietary funds are those in which revenues and expenses related to services provided to
organizations inside the Peoria County Regional Office of Education #48 on a cost
reimbursement basis are reported.
Local Workshops Fund -This fund is used to account for the various fees charged for
local workshops that provide professional development to area educators.
Illinois Virtual School Fund - This fund accounts for income received and expenses
incurred for work awarded to the Illinois Virtual School. The work obtained is a
result of proposals submitted by IVS to a district/agency in response to their
published scope of work. This fund also accounts for tuition payments from
school districts for grade 5-12 online courses and indirect costs that are not
covered under the Regional Office of Education #48's contract with the Illinois
State Board of Education. In addition, the Illinois Virtual School Fund is used to
account for monies received to engage in a partnership to guide the transformation
of the Illinois Virtual High School (IVHS) into the Illinois Virtual School (IVS).
IVS is intended to expand the number of traditional students served, expand the
grade levels to include grades 5 through 8, operate in an "anywhere, anytime"
mode, and serve nontraditional students~ The IVS will also expand professional
development. options available to Illinois teachers for certificate renewal process.
Tech Support- This fund accounts for the income received and expenses incurred for the
Regional Office to provide technical support to District 150.
Learning Technology Center Technical Training and Support - To account for monies
received to provide training and professional development to area educators.
Aspire- To deliver professional development based on the following initiatives: response
to intervention, standards-aligned classroom, and reading literacy.
39
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30,2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
FIDUCIARY FUNDS
Agency Funds- Agency Funds are used to account for assets held by the Peoria County Regional
Office of Education #48 in a trustee capacity or as an agent for individuals, private organizations,
other governmental units, and/or other funds. These funds are custodial in nature (assets equal
liabilities) and do not involve measurement of results of operations. Agency Funds include the
following:
Regional Board of Trustees - To account for the proceeds and related costs from the sale
of school properties within the Regional Office of Education.
Central Illinois Science Education (C.I.S.E.) - To account for the receipts and
disbursements of the C.I.S.E. This account is maintained for the convenience of
the C.I.S.E.
Peoria Promise Foundation- To account for monies received from private donations to
fund a scholarship to Illinois Central College (ICC) for Peoria students.
Criminal Background Checks- To account for the pass-through of monies from various
school districts to agencies to conduct criminal background checks on substitute
teachers.
Perfect - To account for the pass-through of monies from the Illinois State Board of
Education to agencies to conduct vocational programs for students.·
SEAPCO - To account for the pass-through of monies from the Illinois State Board of
Education to agencies to conduct Special Education instruction in Peoria County.
IVS Scholarship Fund- To account for scholarship monies from the LUDA Education
Foundation to provide scholarships to students.
40
PEORlA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I. GOVERNMENTAL FUND BALANCES
Fund Balance is the difference between assets and liabilities in a Governmental Fund. The following
types of fund balances may be presented in the Governmental Funds Balance Sheet and
Governmental Funds Combining Schedule of Accounts:
Nonspendable Fund Balance -the portion of a Governmental Fund's net assets that are not available
to be spent, either short term or long term, in either form or through legal restrictions.
Restricted Fund Balance - the portion of a Governmental Fund's net assets that are subject to
~xternal enforceable legal restrictions. The following fund balances are restricted by grant
agreements or contracts: ROE/ISC Operations and Special Education - IDEA Part D. The
following funds are restricted by Illinois Statute: Bus Driver Training, Institute, General Education
Development, and Supervisory.
Committed Fund Balance - the Portion of a Governmental Fund's net assets with self-imposed
constraints or limitations that have been placed at the highest level of decision making. There are no
accounts presenting a committed fund balance.
Assigned Fund Balance- the Portion of a Governmental Fund's net assets to denote an intended use
of resources. The accounts presented with assigned fund balances are specified for a particular
purpose by the Regional Superintendent. The following accounts comprise assigned fund balance:
Upward Generated, Title II Coop, Directory, Food Co-op, Hospital Tutoring, Office of Prevention,
Spring Celebration, Consortium for Educational Change, Jail Library, and Lincoln Senior Award.
Unassigned Fund Balance - available expendable resources in a governmental fund that are not
designated for a specific purpose. The unassigned fund balance is made up of the following:
Administrative Interest Fund, ROE Local Fund, Communities for Truants Alternative, Title I School
Improvement and Accountability, and Transportation Career Cluster.
J. NET ASSETS
Equity is classified as net assets and displayed in three components:
Invested in capital assets - Consists of capital assets, net of accumulated depreciation.
Restricted net assets - Consists of net assets with constraints placed on the use either by
(1) external groups such as creditors, grantors, contributors, or laws or regulations of
other governments; or (2) law through constitutional provisions or enabling legislation.
Unrestricted net assets - All other net assets that do not meet the definition of "restricted"
or "invested in capital assets."
41
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consists of cash on deposit. The Peoria County Regional Office of
Education #48 considers all liquid investments with a maturity of three months or less when
purchased to be cash equivalents.
L. INVENTORY
Inventory is not recorded. The cost is recorded as an expenditure at the time individual inventory
items are purchased.
M. CAPITAL ASSETS
Capital assets purchased or acquired with an original cost of $500 or more are reported at
historical cost or estimated historical cost. Contributed assets are reported at fair market value as
of the date received.
Additions, improvements and other capital outlays that significantly extend the useful life of an
asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred.
Depreciation on all assets is provided on the straight-line basis over the following estimated
useful lives:
Office Equipment and Furniture
Computer Equipment
Other Equipment
N. COMPENSATED ABSENCES
5 -10 years
3- 5 years
5 -20 years
Non-certified and certified employees who work 12 calendar months earn up to 20 vacation days
for a full year of service. The accumulated total of vacation days may never exceed 30 days. In
the event that a program terminates, no vacation days will be honored past the ending date of the
program. Certified employees who work less than 12 calendar months per year do not earn
vacation days, and therefore, no liability is accrued.
Employees receive up to 12 sick days annually and the unused portion is accumulated up to 180
days and carried forward. Employee sick leave is recorded when paid. Upon termination,
employees do not receive any accumulated sick leave pay, and therefore, no liability is accrued.
42
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concluded)
0. ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect certain reported·
amounts and disclosures. Accordingly, actual results could differ from those estimates.
P. BUDGET INFORMATION
The Peoria County Regional Office of Education #48 acts as the administrative agent for certain
grant programs that are accounted for in the General and Education Fund. Certain programs have
separate budgets and are required to report to the Illinois State Board of Education, however,
none of the annual budgets have been legally adopted nor are they required to do so.
Comparisons of budgeted and actual results are presented as supplemental information.
Budgetary comparison schedules have been provided in supplementary schedules for the
following funds: ROEIISC Operations, Adult Education Basic, Adult Education Performance,
·upward SOS, Communities for Youth Truants Alternative, McKinney-Vento Education for
Homeless Children and Youth, Learning Technology Center General Operations, Title I School
Improvement and Accountability, Title I Reading First Part B SEA, Reading First Super Region,
Special Education - IDEA Part D, Preschool for All Children, ARRA - Title I School
Improvement and Accountability, Illinois Virtual School - RTI Online, Regional Safe Schools,
Gifted Education, and Beginning Teacher Induction.
NOTE 2 -DEPOSITS AND INVESTMENTS
The fllinois Compiled Statutes authorize the Peoria County Regional Office of Education #48 to
make deposits and invest in U.S. Government, State of Illinois and municipal securities,
certificates of deposit or time savings deposits insured by the FDIC, mortgage notes, bonds, or
debentures issued by the Federal Housing Administration, bonds and other obligations of the
Federal National Mortgage Association, commercial paper rated within the three highest
classifications by at least two standard rating services, credit union shares, and the Illinois Public
Treasurer's Investment Pool.
A. DEPOSITS
At June 30, 2011, the carrying amount of the Peoria County Regional Office of Education #48's
government-wide and Agency fund deposits were $1,955,135 and $27,801, respectively, and the
bank balances were $556,510 and $27,801, respectively. Of the total bank balances as of
June 30, 2011, $250,000 was secured by federal depository insurance and $334,311 was
collateralized by securities pledged by the Peoria County Regional Office of Education #48's
financial institution in the name of the Regional Office.
43
PEORIA COUNTY REGIONAL OFFICE OF EDUCATION #48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 2 -DEPOSITS AND INVESTMENTS (Concluded)
B. INVESTMENTS
The Peoria County Regional Office of Education #48 does not have a formal investment policy
but requires that funds be invested solely in investments authorized by the Public Funds
Investment Act, 30 ILCS 235/2. As of June 30, 2011, the Peoria County Regional Office of
Education #48 had investments with a carrying and fair value of $1,763,381 invested in the
Illinois School District Liquid Asset Fund Plus.
CREDIT RISK
At June 30, 2011, the Illinois School District Liquid Asset Fund Plus (ISDLAF+) had a Standa