FY11-ROE33-Fin-Full

              STATE OF ILLINOIS
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
FINANCIAL AUDIT
For the Year Ended June 30, 2011
Performed as Special Assistant Auditors
for the Auditor General, State of Illinois
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
TABLE OF CONTENTS
Page
OFFICIALS ................................................................................................................................ 1
FINANCIAL REPORT SUMMARY .......................................................................................... 2
FINANCIAL STATEMENT REPORT SUMMARY ................................................................. 4
FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................. 5
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.................... 7
Schedule of Findings and Responses ................................................................................... 9
Financial Statement Findings ............................................................................................... 10
Corrective Action Plan for Current Year Audit Findings .................................................... 12
Summary Schedule of Prior Audit Findings ........................................................................ 13
MANAGEMENT’S DISCUSSION AND ANALYSIS .............................................................. 14
BASIC FINANCIAL STATEMENTS
Statement of Net Assets ....................................................................................................... 20
Statement of Activities ......................................................................................................... 21
Balance Sheet – Governmental Funds ................................................................................. 22
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets ..................................................................................................... 23
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds .......................................................................................................... 24
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities – Governmental Funds ........................... 25
Statement of Fiduciary Net Assets ....................................................................................... 26
Notes to Financial Statements .............................................................................................. 27
i
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
TABLE OF CONTENTS
ii
Page
SUPPLEMENTAL INFORMATION
COMBINING AND INDIVIDUAL
FINANCIAL STATEMENTS AND SCHEDULES
General Fund:
Combining Schedule of Accounts ................................................................................ 46
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances ......................................................................................... 47
Education Fund:
Combining Schedule of Accounts ................................................................................ 48
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances ......................................................................................... 50
Budgetary Comparison Schedules – Education Fund Accounts:
Regional Safe Schools ......................................................................................... 52
Truants Alternative Education ............................................................................. 53
McKinney Education for Homeless Children ..................................................... 54
Western Illinois Investment Grant ....................................................................... 55
Gifted Education .................................................................................................. 56
Title II Teacher Quality Leadership .................................................................... 57
Non-Major Special Revenue Funds:
Combining Balance Sheet .............................................................................................. 58
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances .................................................................................... 59
Agency Fund:
Statement of Changes in Assets and Liabilities ........................................................... 60
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
OFFICIALS
Regional Superintendent Ms. Bonnie L. Harris
(current and during audit period)
Assistant Regional Superintendent Mr. Rich Qualls
(July 1, 2010 to December 31, 2010)
Assistant Regional Superintendent Mr. William Griffin
(January 1, 2011 to June 30, 2011)
Assistant Regional Superintendent Ms. Jill Colley
(July 1, 2011 to current)
Offices are located at:
121 S. Prairie Street
P.O. Box 430
Galesburg, Illinois 61401
1
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
FINANCIAL REPORT SUMMARY
The financial 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 do not contain scope limitations, disclaimers, or other significant non-standard
language.
SUMMARY OF AUDIT FINDINGS
Number of This Audit Prior Audit
Audit findings 1 2
Repeated audit findings 1 1
Prior recommendations implemented or not repeated 1 0
Details of audit findings are presented in a separate report section.
SUMMARY OF FINDINGS AND RESPONSES
Item No. Page Description Finding Type
Findings (Government Auditing Standards)
11-1 10 Controls Over Financial Statement Preparation Material Weakness
Findings and Responses (Federal Compliance)
None
Prior Audit Findings Not Repeated (Government Auditing Standards)
10-2 13 Inadequate Controls Over Property and Equipment Significant Deficiency
2
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
FINANCIAL REPORT SUMMARY - CONTINUED
3
EXIT CONFERENCE
Knox County Regional Office of Education #33 waived having an exit conference in correspondence
received February 10, 2012. The response to the recommendation was provided by ROE management in
correspondence received November 15, 2011.
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
FINANCIAL STATEMENT REPORT SUMMARY
The audit of the accompanying basic financial statements of Knox County Regional Office of Education #33
was performed by Sulaski and Webb, CPAs.
Based on their audit, the auditors expressed an unqualified opinion on the Knox County Regional Office of
Education #33’s basic financial statements.
4
SUlkl -~ebb CERTIFIED PUBLIC ACCOUI'HANTS
Honorable William G. Holland
Auditor General
State of Illinois
Independent Auditor's Report
As Special Assistant Auditors for the Auditor General, we have audited the accompanying financial
statements of the governmental activities, each major fund, and the aggregate remaining fund information of
the Knox County Regional Office of Education #33, as of and for the year ended June 30, 2011, which
collectively comprise the Knox County Regional Office of Education #33's basic financial statements as
listed in the table of contents. These fmancial statements are the responsibility of the Knox County Regional
Office of Education #33'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 fmancial 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 fmancial 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 the significant estimates
made by management, as well as evaluating the overall fmancial statement presentation. We believe that our
audit provides a reasonable basis for our opinions.
In our opinion, the fmancial statements referred to above present fairly, in all material respects, the respective
fmancial position of the governmental activities, each major fund, and the aggregate remaining fund
information of the Knox County Regional Office of Education #33, as of June 30, 2011, and the respective
changes in financial position, thereof for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
The Knox County Regional Office of Education #33 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 defmitions of existing fund types.
The adoption of this statement had no effect on any of the Knox County Regional Office of Education #33's
governmental funds' assets or liabilities nor was there any effect to the total amount of any of the Knox
County Regional Office of Education #33'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 March 23, 2012 on
our consideration of the Knox County Regional Office of Education #33'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 fmancial 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.
SUITE 203, THE !LUNOIS HOUSE 207 \1\1. JEFFERSON, PD. BOX 3305 BLOOPAit-.!GTOI~, iLUr00iS 61702, (309) 82.8-6071, FAX. (309) 827--2.465
The Management's Discussion and Analysis on pages 14 through 19 is not a required part of the basic
financial statements but is 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 Knox County Regional Office of Education #33's basic financial statements. The combining
and individual non-major fund fmancial statements and budgetary comparison schedules are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The combining
and individual non-major fund financial statements and budgetary comparison schedules have been subjected
to the auditing procedures applied in the audit of the basic fmancial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic fmancial statements taken as a whole.
Snlaski and Webb
Certified Public Accountants
March 23, 2012
6
SUJki -~ebb C:ERTtF!ED PUBUC ACCOUNTA!\lTS
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 oflilinois
As Special Assistant Auditors for the Auditor General, we have audited the fmancial statements of the
govermnental activities, each major fund, and the aggregate remaining fuud information of the Knox County
Regional Office of Education #33, as of and for the year ended June 30, 201 I, which collectively comprise
the Knox County Regional Office of Education #33's basic financial statements and have issued our report
thereon dated March 23, 2012. 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 Knox County Regional Office of Education #33 is responsible for establishing aud
maintaining effective internal control over fmancial reporting. In planning and performing our audit, we
considered the Knox County Regional Office of Education #33'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, but not for the purpose of expressing an opinion on the effectiveness of the Knox County
Regional Office of Education #33's internal control over financial reporting. Accordingly, we do not express
an opinion on the effectiveness of the Knox County Regional Office of Education #33's internal control over
fmancial 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 fmancial
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 Responses, we identified a certain
deficiency in internal control over financial reporting that we consider to be a material weakness.
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
misstatements 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
deficiency described in fmding II-I in the accompanying Schedule of Findings and Responses to be a
material weakness.
SUITt 203, THE ILLINOIS HOUSE 207 \IV. JEF-FERSON, P.O. BOX 3305 BL00Mit'-JCTOI'-J1 ILUf'-iOiS 61702, 009) 82H-6071, F!\X (309) 827-2465
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Knox County Regional Office of Education
#33's fmancial statements are free of material misstatement, we perfonned 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.
Knox County Regional Office of Education #33's response to the finding identified in our audit is described
in the accompanying Schedule of Findings and Responses. We did not audit Knox County Regional Office
of Education #33's response and, accordingly, we express no opinion on it.
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, and the Illinois
State Board of Education and is not intended to be and should not be used by anyone other than these
specified parties.
Sulaski and Webb
Certified Public Accountants
March 23, 2012
8
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
SCHEDULE OF FINDINGS AND RESPONSES
For the Year Ended June 30, 2011
Section I – Summary of the Auditor’s Results
Financial Statements
(1) An unqualified opinion was issued on the financial statements.
Internal Control Over Financial Reporting:
(2) One material weakness disclosed during the audit of the financial statements is reported in the
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.
(3) No instances of noncompliance material to the financial statements were disclosed during the audit.
9
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
SCHEDULE OF FINDINGS AND RESPONSES
For the Year Ended June 30, 2011
Section II – Financial Statement Findings Finding No. 11-1
Repeated from 10-1, 09-1,
08-1 and 07-1
Controls Over Financial Statement Preparation
Criteria/Specific Requirement:
The Knox County Regional Office of Education #33 (ROE) is required to maintain a system of
controls over the preparation of financial statements, including disclosures, in accordance with
generally accepted accounting principles (GAAP). The ROE 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:
The Knox County Regional Office of Education #33 does not have sufficient internal controls over
the financial reporting process. The ROE maintains their accounting records on the cash basis of
accounting. While the ROE maintains controls over the processing of most 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 ROE’s accounting records, noted the following:
• The ROE did not maintain adequate controls over the financial reporting process and
adjustments were required to present financial statements in accordance with generally
accepted accounting principles.
• The ROE did not maintain complete records of accounts payable or deferred revenue.
Effect:
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.
Cause:
According to ROE officials, they did not have adequate funding to hire and/or train their accounting
personnel in order to maintain a system of internal control over the preparation of financial
statements in accordance with GAAP.
10
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
SCHEDULE OF FINDINGS AND RESPONSES
For the Year Ended June 30, 2011
11
Section II – Financial Statement Findings - Continued Finding No. 11-1
Repeated from 10-1, 09-1,
08-1 and 07-1
Controls Over Financial Statement Preparation - Continued
Auditor’s Recommendation:
As part of its internal control over the preparation of financial statements, including disclosures, the
Knox County Regional Office of Education #33 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:
Due to limited funds, the Knox County Regional Office of Education #33 is not able to hire and train
accounting personnel in order to maintain a system of internal control over the preparation of
financial statements in accordance with generally accepted accounting principles.
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
CORRECTIVE ACTION PLAN FOR
CURRENT YEAR AUDIT FINDINGS
For the Year Ended June 30, 2011
Corrective Action Plan
Finding No. 11-1
Condition: The Knox County Regional Office of Education #33 does not have sufficient
internal controls over the financial reporting process. The ROE maintains their
accounting records on the cash basis of accounting. While the ROE maintains
controls over the processing of most 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 ROE’s
accounting records, noted the following:
􀂃􈍔 The ROE did not maintain adequate controls over the financial reporting
process and adjustments were required to present financial statements in
accordance with generally accepted accounting principles.
􀂃􈍔 The ROE did not maintain complete records of accounts payable or deferred
revenue.
Plan: Due to limited funds, the Knox County Regional Office of Education #33 is not able
to hire and train accounting personnel in order to maintain a system of internal
control over the preparation of financial statements in accordance with generally
accepted accounting principles.
Completion Date: As soon as possible
Contact Person: Bonnie L. Harris, Regional Superintendent
12
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended June 30, 2011
Finding
Number Prior Finding Status
10-1 The ROE did not have sufficient internal controls over Repeated as
the financial reporting process. Finding 11-1.
10-2 The ROE did not have adequate controls over fixed assets. Not Repeated.
13
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
The Management's Discussion and Analysis of the Knox County Regional Office of Education #33’s (ROE)
financial performance provides an overall narrative review of the Regional Office of Education’s financial
activities for the year ended June 30, 2011. The intent of this Management's Discussion and Analysis is to
look at the Regional Office of Education’s performance as a whole. Readers should also review the notes to
the basic financial statements and the financial statements to enhance their understanding of the Regional
Office of Education’s financial performance. Information contained in this section is qualified by the more
detailed information contained elsewhere in this ROE's financial statements, notes to financial statements and
any accompanying materials. To the extent this discussion contains any forward-looking statements of the
ROE's plans, objectives, expectations and prospects, the actual results could differ materially from those
discussed herein.
Knox County Regional Office of Education #33 has regional responsibility for five school districts: 202 –
Knoxville, 205 - Galesburg, 208 - ROWVA, 210 – Williamsfield and 217 – Abingdon. Fiscal Year 2011
enrollment in these districts was just under 8,000.
Financial Highlights
􀂾􋹔Total net assets decreased by $7,787, which represents a 6.0% decrease from fiscal year 2010.
􀂾􋹇General revenues account for $320,201 in revenue, or 40.6% of all revenues. Program specific
revenues in the form of grants and contributions accounted for $468,233 or 59.4% of total revenues.
􀂾􋹔The ROE had $794,892 in expenses.
􀂾􋹃Capital assets, prior to depreciation, decreased by $135,160 to total $77,414.
􀂾􋹔The ROE carries no long term debt.
Overview of Financial Statements
This discussion and analysis is intended to serve as an introduction to the ROE’s basic financial statements.
The ROE’s basic financial statements are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad overview of the
ROE’s finances, in a manner similar to a private-sector business. These statements are prepared using
the accrual basis of accounting and include all assets and liabilities.
The Statement of Net Assets presents information on all the ROE’s assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the ROE is improving or deteriorating.
14
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
Overview of Financial Statements (continued)
The Statement of Activities presents information showing how the ROE’s net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal years.
The government-wide financial statements outline functions of the ROE that are principally supported by
intergovernmental revenues (governmental activities). The government-wide financial statements can be
found on pages 20-21 of this report.
Fund financial statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The ROE uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. The Knox County ROE has two kinds
of funds: governmental funds and fiduciary funds.
Governmental funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on current spendable resources,
as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating the ROE’s current financing requirements. Governmental
funds are reported using modified accrual accounting. This method of accounting measures cash and
other assets that can be easily converted to cash. The governmental fund statements provide a
detailed short-term view of the Knox County Regional Office of Education #33’s operations.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the ROE’s current financing
decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of
Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities. These reconciliations are on
pages 23 and 25, respectively.
The basic governmental fund financial statements can be found on pages 22 and 24 of this report.
Fiduciary funds
Fiduciary funds are used to account for assets held by the ROE in a custodial nature and do not
involve measurement of results of operations.
The Statement of Fiduciary Net Assets can be found on page 26 of this report.
15
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
Overview of Financial Statements (continued)
Notes to the basic financial statements.
The notes provide additional information that is essential to gain a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial statements
can be found on pages 27-45 of this report.
Government-Wide Financial Analysis
Net assets
Net assets may serve over time as a useful indicator of government’s financial position. In the case of the
ROE, assets exceeded liabilities by $122,835 as of June 30, 2011. The majority of this (65% of total assets)
is due from other governmental units.
The ROE’s financial position is a product of several financial transactions including the net result of
activities, the acquisition and disposal of capital assets and the depreciation of capital assets.
The table below presents a summary of the ROE’s net assets for the fiscal years ended June 30, 2011 and
2010.
2011 2010
Assets
Current assets $ 159,680 $ 193,276
Capital assets, net 13,799 19,233
Total assets $ 173,479 $ 212,509
Liabilities
Current liabilities $ 50,644 $ 81,887
Total liabilities $ 50,644 $ 81,887
Net assets:
Invested in capital assets,
net of related debt $ 13,799 $ 19,233
Restricted for educational purposes 57,504 17,430
Unrestricted 51,532 93,959
Total net assets $ 122,835 $ 130,622
The net assets related to Regional Safe Schools, McKinney Education for Homeless Children, ROE/ISC, and
Title II Teacher Quality Leadership are restricted for educational purposes by grant agreements or contracts.
General Education Development, Bus Driver Training, Supervisory, and Institute are restricted by Illinois
Statute.
16
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
Changes in net assets
The ROE’s total revenues for the fiscal year ended June 30, 2011 were $788,434. The total cost of all
programs and services was $794,892. The following table presents a summary of the changes in net assets
for the fiscal years ended June 30, 2011 and 2010.
Revenues: 2011 2010
Program revenues
Operating grants and contributions $ 468,233 $ 432,362
General revenues
Local sources 27,765 25,803
State sources 7,834 3,964
Interest 7 40
Contributions not restricted to specific program - 7,795
On-behalf payments 284,595 292,495
Total revenues 788,434 762,459
Expenses:
Instructional services
Salaries & benefits 359,092 346,750
Purchased services 102,626 100,234
Supplies and materials 16,728 15,857
Depreciation 5,434 4,593
Payments to other governmental units 26,417 8,700
Administrative Expenses
On-behalf payments 284,595 292,495
Total expenses 794,892 768,629
Increase (decrease) in net assets (6,458) (6,170)
Net assets, beginning 130,622 136,792
Prior period adjustment (1,329) -
Net assets, ending $ 122,835 $ 130,622
17
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
Governmental activities
The following table presents the cost of two major ROE functional activities: instructional and
administrative services. The table also shows each function’s net cost (total cost less charges for services
generated by the activities and intergovernmental aid provided for specific programs). The net cost shows
the financial burden that was placed on the State and ROE’s taxpayers by each of these functions.
Total Net (Expense) Total Net (Expense)
Expenses Revenue Expenses Revenue
Instructional $ 5 10,297 $ (36,238) $ 476,134 $ (88,920)
Administrative services 284,595 (290,421) 292,495 (247,347)
Total expenses $ 794,892 $ (326,659) $ 768,629 $ (336,267)
2011 2010
The net cost of governmental activities, $326,659, was financed by general revenue, which is primarily on-behalf
payments, $284,595, and local, $27,765, and state, $7,834, revenue.
Financial Analysis of the ROE’s Funds
As noted earlier, the ROE uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental funds
The focus of the ROE’s governmental funds is to provide information on current inflows, outflows
and balances of spendable resources. Such information is useful in assessing the ROE’s financing
requirements. In particular, unreserved fund balance may serve as a useful measure of the ROE’s net
resources available for spending at the end of the fiscal year.
The financial performance of the ROE as a whole is reflected in its governmental funds. As the ROE
completed the year, its governmental funds reported a combined fund balance of $94,413, an
increase of $72,722.
During fiscal year 2011, the ROE implemented Governmental Accounting Standards Board (GASB)
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, which
required certain programs and funds to be reclassified and the restatement of beginning fund
balances as detailed in Note 12 to the financial statements. Because of these reclassifications the
fund analysis is not comparable between fiscal year 2010 and fiscal year 2011.
18
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
19
Capital Assets
As of June 30, 2011, the Knox County Regional Office of Education #33’s total capital assets were $77,414,
comprised mainly of school and office furniture and equipment. There was a decrease in capital assets of
$135,160 from the previous year due to recycling several old pieces of computer equipment. Total
accumulated depreciation as of June 30, 2011 was $63,615 and total depreciation expense for the year was
$5,434, resulting in total net capital assets of $13,799.
Additional information of the ROE’s capital assets can be found in Note 6 on page 39 of this report.
Current and Future Issues
Knox County Regional Office of Education #33 is financially stable. The current administration considers it
a fiscal responsibility to operate within available funds, not incurring any debt. The ROE will continue its
sound fiscal management to meet the many challenges of the future.
At the time these financial statements were prepared and audited, the Regional Office was aware of several
existing circumstances that could offset its financial health in the future.
􀂾􋹔 The Knox County Board financial support meets the needs of the office.
􀂾􋹔 The McKinney-Vento Homeless Assistance Grant has decreased slightly.
􀂾􋹔 The ROE continues to upgrade and maintain all office equipment.
􀂾􋹁 Although funds have been decreased for the Safe School, the ROE strives to upgrade all equipment
at the Safe School.
􀂾􋹄 Due to the decrease in funding of the TAOEP Grant, we currently have only two outreach workers in
the county.
􀂾􋹔 The lack of timely issuing of grant money fro the three programs (McKinney-Vento, TAEOP, and
RSSP) make it a hardship to continue to provide the same level of service to the public that we have
been able to provide in past years.
Contacting the ROE’s Financial Management
This financial report is designed to provide the Regional Offices’ 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 Knox County Regional Office of Education, 121 S. Prairie Street, Galesburg, IL 61401.
BASIC FINANCIAL STATEMENTS
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
STATEMENT OF NET ASSETS
June 30, 2011
Primary Government
Governmental
Activities
Current Assets:
Cash and cash equivalents $ 46,664
Due from other governmental units and agencies 113,016
Total Current Assets 159,680
Noncurrent Assets:
Capital assets, net of depreciation 13,799
Total Noncurrent Assets 13,799
TOTAL ASSETS 173,479
Current Liabilities:
Accrued payroll 30,870
Deferred revenue 19,774
TOTAL LIABILITIES 50,644
ASSETS
LIABILITIES
Invested in capital assets, net of related debt 13,799
Unrestricted 51,532
Restricted for educational purposes 57,504
TOTAL NET ASSETS $ 122,835
NET ASSETS
The notes to the financial statements are an integral part of this statement.
20
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2011
Net (Expenses)/Revenues and
Program Revenues Changes in Net Assets
Operating Primary Government
Grants and Governmental
FUNCTIONS/PROGRAMS Expenses Contributions Activities
Primary government:
Governmental activities:
Instructional Services:
Salaries and benefits $ 359,092 $ 355,069 $ (4,023)
Purchased services 102,626 82,540 (20,086)
Supplies and materials 16,728 10,253 (6,475)
Payments to other governments 26,417 26,438 21
Depreciation 5,434 - (5,434)
Capital outlay - ( 241) (241)
Administrative:
On-behalf payments 284,595 (5,826) (290,421)
Total government activities $ 794,892 $ 468,233 $ (326,659)
General revenues:
Local sources 27,765
State sources 7,834
Interest 7
On-behalf payments 284,595
Total general revenues 320,201
Change in net assets (6,458)
Net assets - beginning 130,622
Prior period adjustment (1,329)
Net assets - beginning (restated) 129,293
Net assets - ending $ 122,835
The notes to the financial statements are an integral part of this statement.
21
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2011
Other Total
General Education Institute Non-Major Governmental
Fund Fund Fund Funds Funds
ASSETS
Cash and cash equivalents $ 757 $ 709 $ 42,970 $ 2,228 $ 46,664
Due from other funds 57,278 5,962 - 5,818 69,058
Due from other governmental units and agencies - 113,016 - - 113,016
TOTAL ASSETS $ 58,035 $ 119,687 $ 42,970 $ 8,046 $ 228,738
LIABILITIES
Accrued payroll $ 6,503 $ 24,367 $ - $ - $ 30,870
Due to other funds - 69,058 - - 69,058
Deferred revenue - 20,367 14,030 - 34,397
Total liabilities 6,503 113,792 14,030 - 134,325
FUND BALANCES (DEFICITS)
Restricted - 20,610 28,940 8,046 57,596
Assigned 479 - - - 479
Unassigned 51,053 (14,715) - - 36,338
Total fund balances 51,532 5,895 28,940 8,046 94,413
TOTAL LIABILITIES AND FUND BALANCES $ 58,035 $ 119,687 $ 42,970 $ 8,046 $ 228,738
The notes to the financial statements are an integral part of this statement.
22
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
June 30, 2011
Total fund balances - governmental funds $ 94,413
Amounts reported for governmental activities in the Statement of Net
Assets are different because:
Capital assets used in governmental activities are not
financial resources and therefore, are not reported in the funds. 13,799
Because some revenues will not be collected for several months
after the Regional Office fiscal year ends, they are not
considered "available" revenues and are deferred in the
governmental funds. 14,623
Net assets of governmental activities $ 122,835
The notes to the financial statements are an integral part of this statement.
23
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended June 30, 2011
Other Total
General Education Institute Non-Major Governmental
Fund Fund Fund Funds Funds
Revenues:
Local sources $ 5,335 $ 536 $ 12,478 $ 9,416 $ 27,765
State sources 134,121 261,319 - 8 34 396,274
Federal sources - 154,868 - - 154,868
Interest - - 7 - 7
On-behalf payments 284,595 - - - 284,595
Total revenues 424,051 416,723 12,485 10,250 863,509
Expenditures:
Instructional services:
Salaries and benefits 106,922 252,170 - - 359,092
Purchased services 42,147 55,467 875 4 ,137 102,626
Supplies and materials 1 ,999 11,638 100 2 ,991 16,728
Payments to other governments - 26,417 - - 26,417
On-behalf payments 284,595 - - - 284,595
Total expenditures 435,663 345,692 975 7 ,128 789,458
Net change in fund balances (11,612) 71,031 11,510 3,122 74,051
Fund balances (deficits) - beginning (restated - see note 12) 63,144 (65,136) 17,430 6 ,253 21,691
Prior Period Adjustment - - - (1,329) (1,329)
Fund balances (deficits) - beginning (restated) 63,144 (65,136) 17,430 4,924 20,362
Fund balances - ending $ 51,532 $ 5,895 $ 28,940 $ 8,046 $ 94,413
The notes to the financial statements are an integral part of this statement.
24
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
For the Year Ended June 30, 2011
Net change in fund balances $ 74,051
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 (5,434) (5,434)
Because some revenues will not be collected for several months after
the Regional Office fiscal year ends, they are not considered "available"
revenues and are deferred in the governmental funds. 14,623
Prior year revenues that were deferred in the governmental funds
because they were not considered "available" have now been
recognized as revenue in the governmental funds. (89,698)
Changes in net assets of governmental activities $ (6,458)
The notes to the financial statements are an integral part of this statement.
25
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
STATEMENT OF FIDUCIARY NET ASSETS
June 30, 2011
ASSETS
Cash and cash equivalents $ 1 ,740
Total Assets $ 1 ,740
LIABILITIES
Due to others $ 1 ,740
Total Liabilities $ 1 ,740
Agency
Funds
26
The notes to the financial statements are an integral part of this statement.
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of Knox County Regional Office of Education #33 (ROE) conform to
accounting principles generally accepted in the United States of America for governmental entities.
The following is a summary of the significant accounting policies.
The Knox County Regional Office of Education #33 was created by Illinois Public Act 88-89, as
amended. The ROE operates under the School Code (105 ILCS 5/3 and 5/3A). The Regional Office
of Education #33 encompasses Knox County in Illinois. A Regional Superintendent of Schools
serves as chief administrative officer of the ROE and is elected pursuant to 105 ILCS 5/3 and 5/3A
of the School Code.
The Regional Superintendent is responsible for supervision and control of school districts within
Knox County. This includes all aspects of supervision, reports and financial accounting of districts
which are considered by state law to be in the Service Region. In addition, 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 teachers institutes as well as to aid and
encourage the formation of other teachers meetings and assist in their management; evaluate the
schools in Knox County; 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 Knox County districts; providing township treasurers with a list of district
treasurers; to inspect and approve building plans which comply with state law; to perform and report
on annual building inspections; investigate bus drivers for valid bus driver permits and take related
action as may be required; to maintain a list of unfilled teaching positions and to carry out other
related duties required or permitted by law.
The Regional Superintendent is responsible for inspection and approval or rejection of school
treasurer’s 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 her control are
properly bonded.
The Regional Superintendent is also responsible for apportionment and payment of funds received
from the state for the districts in Knox County, or see that no payments are made unless the treasurer
has filed or renewed appropriate bonds 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.
27
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
For the period ended June 30, 2011, Knox County Regional Office of Education #33 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 Knox County. Such activities are reported as a
single special revenue fund (Education Fund).
REPORTING ENTITY
The ROE’s reporting entity includes all related organizations for which it exercises oversight
responsibility.
The ROE has developed criteria to determine whether outside agencies with activities which benefit
the citizens of the region, including joint agreements which serve pupils from numerous school
districts, should be included within its financial reporting entity. The criteria include, but are not
limited to, whether the ROE 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.
Certain joint agreements have been determined not to be 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 ROE does not
control the assets, operations, or management of the joint agreements. In addition, the ROE is not
aware of any entity which would exercise such oversight as to result in the ROE being considered a
component of the entity.
BASIS OF PRESENTATION – GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS
Government-wide Financial Statements – The Statement of Net Assets and the Statement of
Activities report information on all of the nonfiduciary activities of the primary government.
The Statement of Net Assets presents the Knox County Regional Office of Education #33
nonfiduciary assets and liabilities, with the difference reported as 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 grants and contributions that are restricted to meeting the
operational or capital requirements of a particular program. Other items not properly included
among program revenues are reported instead as general revenues. Major individual governmental
funds are reported as separate columns in the fund financial statements.
The ROE’s government-wide financial statements consist only of governmental activities.
28
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
BASIS OF PRESENTATION – GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS (Continued)
Fund Financial Statements – The accounts of the ROE are organized on the basis of funds, each of
which is considered a separate accounting entity. The operations of each fund are accounted for with
a separate set of self-balancing accounts comprised of its assets, liabilities, fund balance, revenues,
and expenditures. The ROE’s resources are allocated to and accounted for in individual funds based
upon the purposes for which they are to be spent and the means by which spending activities are
controlled. Major individual governmental funds are reported as separate columns in the fund
financial statements. All remaining governmental funds are aggregated and reported as other non-major
governmental funds.
Governmental Fund Types
Governmental Funds are those through which most governmental functions of the ROE are financed.
The acquisition, use, and balances of the ROE’s expendable financial resources and the related
current liabilities are accounted for through Governmental Funds. The ROE’s major Governmental
Funds include the following:
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 accounts for the ROE’s on-behalf payments from the State of
Illinois and Knox County to pay the salary and benefits of the Regional Superintendent, Assistant
Regional Superintendent and clerical staff. The General Fund is always considered a major fund.
General funds include the following:
ROE #33 Fund – Used to account for the on-behalf payments from the State of Illinois and
Knox County.
General State Aid – To account for monies received for and in payment of expenditures for
the general operations of the Regional Alternative School.
Workshops – Workshops, seminars, and classes are held throughout the school year and in
the summer to help teachers and administrators gain professional knowledge and earn
professional credit.
Drop Out Summit – To provide funds to identify students in danger of dropping out and
provide services to convince them to stay in school.
29
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
BASIS OF PRESENTATION – GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS (Continued)
Education Fund – The Education Fund includes proceeds from specific revenue sources that are
restricted by grant agreements or contracts to expenditures for specified purposes supporting
education enhancement programs. The following accounts are included in the Education Fund:
Regional Safe Schools – To provide funds for programs to increase safety and promote the
learning environment in schools and to meet the particular educational needs of disruptive
students more appropriately and individually in alternative educational environments.
Truants Alternative Education – To establish and expand program options outside of regular
school attendance to prevent students from becoming chronic truants or dropping out of
school and to focus on employability skills for those 16-21 years old.
McKinney Education for Homeless Children – To address the problems that homeless
children and youth face in enrolling, attending, and succeeding in school.
Western Illinois Investment Grant – To assist economically disadvantaged youth in finding
the appropriate services needed to remove barriers to successful participation in employment
and training activities which will result in employment that leads to self-sufficiency.
Title I Reading First Part B SEA Grant – To account for funds received to provide assistance
to school districts in establishing reading programs for students in kindergarten through third
grade that are based on scientific reading research. Reading First also focuses on teacher
development and ensuring that all teachers, including special education teachers, have the
tools they need to effectively help their students learn to read.
Gifted Education – To provide funds for programs of instruction in language arts and
mathematics for those students who perform or show the potential for performing at
remarkably high levels of accomplishment when compared with other students of their age,
experience, and environment.
ROE/ISC – Monies are expended to conduct professional development programs.
ARRA – General State Aid – To account for ARRA grant monies received for and in
payment of expenditures for the general operations of the Regional Alternative School.
Title II Teacher Quality Leadership – To account for grant monies received for and in
payment of expenditures for activities that aim to increase student academic achievement
through strategies such as improving teacher and principal quality; increasing the number of
highly qualified teachers, principals, and assistant principals in the schools; and holding
local educational agencies and schools accountable for improvements in student academic
achievement.
30
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
BASIS OF PRESENTATION – GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS (Continued)
ARRA – Education Jobs – To account for grant monies received for and in payment of
expenditures for activities to save or create education jobs during the 2010-2011 school year.
Reorganization Incentive Feasibility Study – Feasibility studies are a tool to be used by
school districts wanting to investigate the advantages and/or disadvantages of reorganization
options.
Institute Fund – To account for fees collected for the registration and renewal of teaching
certificates. These fees are used to defray administrative expenses incidental to teachers’ institutes,
workshops, or meetings of a professional nature that are designed to promote the professional growth
of teachers or for the purpose of defraying the expense of any general or special meeting of teachers
or school personnel. All funds generated remain restricted until expended only on the
aforementioned activities.
The ROE also reports the following non-major governmental funds:
Non-Major Special Revenue Funds – Special Revenue Funds are used to account for the proceeds of
specific revenue sources that are legally restricted to expenditures for specified purposes. The
ROE’s non-major special revenue funds include the following:
General Education Development (GED) – To account for the revenues and expenditures
associated with the processing of applications for the high school level GED test and the
issuance of diplomas upon successful completion of the examination.
Bus Driver Training – To account for the stewardship of the assets held in trust in
connection with the Bus Driver Training Program.
Supervisory – To account for monies from the State of Illinois for expenditures incurred in
providing supervisory services in the county.
Fiduciary Fund Types
Agency Funds are used to account for assets held by the ROE in a trustee capacity or as an agent for
individuals and private or governmental organizations. Agency Funds are custodial in nature (assets
equal liabilities) and do not involve measurement of results of operations. The ROE has the
following Agency Fund:
Knox County Substance Abuse Prevention (KCSAP) Program – To account for funds raised
for use in the KCSAP Program. Funds are passed through the ROE to the KCSAP
committee.
31
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
EQUITY CLASSIFICATIONS
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. There are no accounts presenting a nonspendable fund balance.
Restricted Fund Balance – The portion of a Governmental Fund’s net assets that are subject
to external enforceable legal restrictions. The following accounts fund balances are
restricted by grant agreements or contracts: Regional Safe Schools, McKinney Education
for Homeless Children, ROE/ISC, and Title II Teacher Quality Leadership. The following
funds are restricted by Illinois Statute: General Education Development, Bus Driver
Training, Supervisory, and Institute.
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: Workshops and Drop Out Summit.
Unassigned Fund Balance – Available expendable financial resources in a governmental
fund that are not designated for a specific purpose. The unassigned fund balance is made up
of General State Aid and the deficit balances from Regional Safe Schools, Truants
Alternative Education, and ARRA – General State Aid.
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 their 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.
32
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
EQUITY CLASSIFICATIONS (Continued)
Unrestricted net assets – All other net assets that do not meet the definition of “restricted” or
“invested in capital assets.”
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
Measurement focus refers to what is being measured. Basis of accounting refers to when revenues
and expenditures are recognized in the accounts and reported in the financial statements. Basis of
accounting relates to the timing of the measurement made, regardless of the measurement focus
applied.
Accounting records are maintained on the cash basis of accounting. Under this method, revenue is
recorded when collected and expenditures are recorded when disbursements are made. The financial
statements of the Knox County Regional Office of Education #33 are prepared by making
memorandum adjusting entries to the cash basis financial records.
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
similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been satisfied.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under the modified accrual basis
of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and
available. Available means collectible within the current period or soon enough thereafter to be used
to pay liabilities of the current period. For this purpose, the ROE considers revenues to be available
if they are collected within sixty days of the end of the current fiscal period. Revenues received
more than sixty days after the end of the current period are deferred in the governmental fund
financial statements, but are recognized as current revenues in the government-wide financial
statements. Expenditures are recognized under the modified accrual basis of accounting when the
related fund liability is incurred.
Under the terms of grant agreements, Knox County Regional Office of Education #33 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 sources available to
finance the program. It is the Knox County Regional Office of Education #33’s policy to first apply
restricted funds, then unrestricted. For unrestricted funds, committed funds are used first, then
assigned funds, then unassigned if any.
33
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues, expenditures, gains, losses,
and other changes in fund balance during the reporting period. Actual results could differ from those
estimates.
BUDGETS
The ROE does not adopt a formal budget for all revenues and expenditures of the governmental
funds and is not legally required to do so. The Regional Office of Education Funds are controlled by
the Regional Superintendent of Education and the State of Illinois. Certain programs administered
by the ROE are subject to budget approval by the State of Illinois. The actual to budget comparisons
are prepared on the modified accrual basis of accounting. The following accounts/funds prepare
budgets:
Educational Grants:
Regional Safe Schools
Truants Alternative Education
McKinney Education for Homeless Children
Western Illinois Investment Grant
Gifted Education
Title II Teacher Quality Leadership
TEACHER CERTIFICATION
Teacher certification revenues are recognized over a five year period when applicable.
REVENUES – EXCHANGE AND NON-EXCHANGE TRANSACTIONS
Revenue resulting from exchange transactions, in which each party gives and receives essentially
equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual
basis, revenue is recorded in the fiscal year in which the resources are measurable and become
available.
34
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
REVENUES – EXCHANGE AND NON-EXCHANGE TRANSACTIONS (Continued)
Non-exchange transactions, in which the ROE receives value without directly giving value in return,
include grants and donations. On an accrual basis, revenue from grants and donations is recognized
in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements
include timing requirements, which specify the year when the resources are required to be used or
the fiscal year when use is first permitted, matching requirements, in which the ROE must provide
local resources to be used for specific purpose, and expenditure requirements, in which the resources
are provided to the ROE on a reimbursement basis. On a modified accrual basis, revenue from non-exchange
transactions must be available before it can be recognized.
CAPITAL ASSETS
General capital assets generally result from expenditures in the governmental funds. These assets,
which include equipment, are reported in the government-wide Statement of Net Assets. Purchases
of equipment are recorded as capital outlay expenditures of the various funds. All capital assets
are capitalized at cost or estimated historical cost and updated for additions and retirements during
the year. Capital assets are defined as assets with a cost of $500 or more. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend the asset’s life
are not capitalized. Capital assets are depreciated over their estimated useful lives, which
approximate 5 to 7 years, using the straight-line method.
DEFERRED REVENUES
Deferred revenue arises when resources are received by the ROE before it has a legal claim to them,
as when monies are received prior to incurring qualifying expenditures (unearned). In subsequent
periods, when both revenue recognition criteria are met, or when the ROE has a legal claim to the
resources, revenue is recognized.
INVESTMENTS AND CASH ACCOUNTS
State regulations require that the ROE deposit funds under its control into accounts insured by the
federal government, secured by substantial collateral or into pooled investment trusts. All funds not
needed for immediate disbursements are maintained in interest bearing accounts. Statutes authorize
the ROE to make deposits or invest in obligation of states and their political subdivisions, savings
accounts, credit union shares, repurchase agreements, commercial paper rated within the three
highest classifications by at least two standard rating services, and the Illinois Public Treasurer’s
Investment Pool.
REVENUES FROM FEDERAL AND STATE GRANTS
Revenues from federal and state grant awards are recorded net of the amount due to the State for the
unused portion of the grant or the amount carried over to the following fiscal year project. Amounts
due to the state or carried over to the following year project are recorded as liabilities.
35
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
DUE FROM OTHER GOVERNMENTAL UNITS AND AGENCIES
Due from other governmental units and agencies is reported at gross with no allowance for
uncollectibles since management feels the amount of any uncollectible accounts is immaterial.
INTERFUND RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds that may
result in amounts owed between funds and are classified as “due to and from other funds.” Interfund
receivables and payables between funds within governmental activities are eliminated in the
Statement of Net Assets.
NEW ACCOUNTING STANDARDS
In fiscal year 2011, the ROE 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 ROE 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
additional disclosures on how fund balance constraints are imposed and may be modified or
eliminated.
INTERGOVERNMENTAL AGREEMENT
On July 1, 2003, the Regional Office of Education #33 entered into an Intergovernmental Agreement
executed pursuant to the provisions of the Intergovernmental Cooperation Clause of the Illinois
Constitution as well as the provisions of the Intergovernmental Cooperation Act of 1973 and the
Illinois Administrative Code 525.110.
The Educational Service delivery system formed is known as the Two Rivers Professional
Development Center. The Peoria County Regional Office of Education was designated as
administrative agent and as director.
2. CASH
The Illinois Compiled Statutes authorize the ROE 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.
36
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
CASH (Continued)
At June 30, 2011, the carrying amount of the ROE’s various bank deposits totaled $48,404 and the
bank balances totaled $64,657. Included in the bank balance is $6,639 deposited in the Illinois
Funds. The Illinois Funds portfolio includes: certificates of deposit issued by Illinois financial
institutions, repurchase agreements backed by direct treasury obligations from primary government
securities dealers, direct treasury obligations of the U.S. Government, and money market funds
backed by full faith and credit obligations of the U.S. Government. The ROE owns no identifiable
investment securities in the Illinois Funds; therefore, credit risk cannot be assessed for the Illinois
Funds. As of June 30, 2011, all deposits made by the ROE were covered by the Federal Depository
Insurance Coverage (FDIC).
3. RECEIVABLES/PAYABLES
Receivables for the Knox County ROE #33 at June 30, 2011, are as follows:
Due from Other
Governmental
Units and Agencies Other Total
Governmental activities:
Education $ 113,016 $ - $ 113,016
Total governmental activities $ 113,016 $ - $ 113,016
Payables for the Knox County ROE #33 at June 30, 2011, are as follows:
Due to Other
Governmental Units Other Total
Governmental activities:
General $ - $ 6,503 $ 6,503
Education - 24,367 24,367
Total governmental activities $ - $ 30,870 $ 30,870
37
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
4. DUE TO/FROM OTHER GOVERNMENTS
The Knox County Regional Office of Education #33’s governmental activities have amounts due to
and due from various other governmental units which consist of the following:
Due From Other Governmental Units and Agencies:
Illinois State Board of Education $ 89,527
Other Regional Offices of Education 5,489
Other Governmental Agency 18,000
$ 113,016
Due To Other Governmental Units: $ 0
5. INTERFUND TRANSACTIONS
DUE TO/FROM OTHER FUNDS
The Knox County ROE #33 had the following due to/from other fund balances for the year ended
June 30, 2011 due to the State of Illinois being slow in paying funds for a couple of ROE #33’s
programs:
Due from Due to
General Fund:
General State Aid $ 57,278 $ -
Education Fund:
Regional Safe Schools - 20,768
Truants Alternative Education - 42,345
Western Illinois Investment Grant - 4,000
ROE/ISC 5,962 -
ARRA - General State Aid - 201
ARRA - Education Jobs - 1,744
Non-Major Fund:
General Education Development 5,818 -
Total $ 69,058 $ 69,058
38
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
6. CAPITAL ASSETS
Capital asset activity during the fiscal year ended June 30, 2011 was as follows:
Balance Balance
7/1/2010 Additions Disposals 6/30/2011
Equipment $ 212,574 $ - $ ( 135,160) $ 77,414
Less accumulated depreciation (193,341) (5,434) 135,160 (63,615)
Total $ 19,233 $ (5,434) $ - $ 13,799
7. RETIREMENT PLANS
Teachers’ Retirement System of the State of Illinois
The ROE (employer) participates in the Teachers’ Retirement System of the State of Illinois (TRS).
TRS is a cost-sharing multiple-employer defined benefit pension plan that was created by the Illinois
legislature for the benefit of Illinois public school teachers employed outside the city of Chicago.
The Illinois Pension Code outlines the benefit provisions of TRS, and amendments to the plan can be
made only by legislative action with the Governor’s approval. The State of Illinois maintains the
primary responsibility for funding the plan, but contributions from participating employers and
members are also required. The TRS Board of Trustees is responsible for the system’s
administration.
TRS members include all active nonannuitants who are employed by a TRS-covered employer to
provide services for which teacher certification is required. The active member contribution rate for
the year ended June 30, 2011 was 9.4 percent of creditable earnings. The same contribution rate
applies to members whose first contributing service is on or after January 1, 2011, the effective date
of the benefit changes contained in Public Act 96-0889. These contributions, which may be paid on
behalf of employees by the employer, are submitted to TRS by the employer. The active member
contribution rate was also 9.4 percent for the years ended June 30, 2010 and 2009.
The State of Illinois makes contributions directly to TRS on behalf of the ROE’s TRS-covered
employees.
• On-behalf Contributions to TRS. The State of Illinois makes employer pension
contributions on behalf of the ROE. For the year ended June 30, 2011, State of Illinois
contributions were based on 23.10 percent of creditable earnings not paid from federal funds,
and the ROE recognized revenue and expenditures of $59,639 in pension contributions that
the State of Illinois paid directly to TRS. For the years ended June 30, 2010, and June 30,
2009, the State of Illinois contribution rates as percentages of creditable earnings not paid
from federal funds were 23.38 percent ($64,502) and 17.08 percent ($15,530), respectively.
39
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
RETIREMENT PLANS (Continued)
Teachers’ Retirement System of the State of Illinois (Continued)
The ROE makes other types of employer contributions directly to TRS.
• 2.2 Formula Contributions. Employers contribute 0.58 percent of total creditable earnings
for the 2.2 formula change. This rate is specified by statute. Contributions for the year
ended June 30, 2011 were $517. Contributions for the years ending June 30, 2010 and June
30, 2009, were $579 and $527, respectively.
• Federal and Special Trust Fund Contributions. When TRS members are paid from federal
and special trust funds administered by the ROE, there is a statutory requirement for the
ROE to pay an employer pension contribution from those funds. Under a policy adopted by
the TRS Board of Trustees that was first effective for the fiscal year ended June 30, 2006,
employer contributions for employees paid from federal and special trust funds will be the
same as the state contribution rate to TRS.
For the year ended June 30, 2011, the employer pension contribution was 23.10 percent of
salaries paid from federal and special trust funds. For the years ended June 30, 2010 and
2009, the employer contribution was 23.38 and 17.08 percent of salaries paid from federal
and special trust funds, respectively. For the year ended June 30, 2011, salaries totaling $-0-
were paid from federal and special trust funds that required employer contributions of $-0-.
For the years ended June 30, 2010 and June 30, 2009, required ROE contributions were $-0-
and $-0-, respectively.
• Early Retirement Option (ERO). The ROE is also required to make one-time employer
contributions to TRS for members retiring under the Early Retirement Option (ERO). The
payments vary depending on the age and salary of the member.
The maximum employer ERO contribution is 117.5 percent and applies when the member is
age 55 at retirement.
For the year ended June 30, 2011, the ROE paid $-0- to TRS for employer contributions
under the ERO program. For the years ended June 30, 2010 and June 30, 2009, the ROE
made no payments under the ERO.
• Salary Increases Over 6 Percent and Excess Sick Leave. If an employer grants salary
increases over 6 percent and those salaries are used to calculate a retiree’s final average
salary, the employer makes a contribution to TRS. The contribution will cover the
difference in actuarial cost of the benefit based on actual salary increases and the benefit
based on salary increases of up to 6 percent.
40
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
RETIREMENT PLANS (Continued)
Teachers’ Retirement System of the State of Illinois (Continued)
For the year ended June 30, 2011, the ROE paid $-0- to TRS for employer contributions due
on salary increases in excess of 6 percent. For the year ended June 30, 2010 and June 30,
2009, the ROE paid $-0- and $-0- to TRS for employer contributions due on salary increases
in excess of 6 percent, respectively.
If an employer grants sick leave days in excess of the normal annual allotment and those
days are used as TRS service credit, the employer makes a contribution to TRS. The
contribution is based on the number of excess sick leave days used as service credit, the
highest salary used to calculate final average salary, and the TRS total normal cost rate
(18.03 percent of salary during the year ended June 30, 2011, as recertified pursuant to
Public Act 96-1511).
For the year ended June 30, 2011, the ROE paid $-0- to TRS for sick leave days granted in
excess of the normal annual allotment. For the year ended June 30, 2010 and June 30, 2009,
the ROE paid $-0- and $-0- in employer contributions granted for sick leave days,
respectively.
TRS financial information, an explanation of TRS benefits, and descriptions of member, employer,
and state funding requirements can be found in the TRS Comprehensive Annual Financial Report for
the year ended June 30, 2010. The report for the year ended June 30, 2011, is expected to be
available in late 2011.
The reports may be obtained by writing to the Teachers’ Retirement System of the State of Illinois,
2815 West Washington Street, P.O. Box 19253, Springfield, Illinois 62794-9253. The most current
report is also available on the TRS Web site at http://trs.illinois.gov.
8. OTHER POSTEMPLOYMENT BENEFITS
Teacher Health Insurance Security Fund
The ROE (employer) participates in the Teacher Health Insurance Security (THIS) Fund, a cost-sharing,
multiple-employer defined benefit postemployment healthcare plan that was established by
the Illinois legislature for the benefit of Illinois public school teachers employed outside the city of
Chicago. The THIS Fund provides medical, prescription, and behavioral health benefits, but it does
not provide vision, dental, or life insurance benefits to annuitants of the Teachers’ Retirement
System (TRS). Annuitants may participate in the state administered participating provider option
plan or choose from several managed care options.
41
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
OTHER POSTEMPLOYMENT BENEFITS (Continued)
Teacher Health Insurance Security Fund (Continued)
The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions of
THIS Fund and amendments to the plan can be made only by legislative action with the Governor’s
approval. The Illinois Department of Healthcare and Family Services (HFS) and the Illinois
Department of Central Management Services (CMS) administer the plan with the cooperation of
TRS. The director of HFS determines the rates and premiums for annuitants and dependent
beneficiaries and establishes the cost-sharing parameters. Section 6.6 of the State Employees Group
Insurance Act of 1971 requires all active contributors to the TRS who are not employees of the state
make a contribution to THIS Fund.
The percentage of employer required contributions in the future will be determined by the director of
HFS and will not exceed 105 percent of the percentage of salary actually required to be paid in the
previous fiscal year.
• On behalf contributions to THIS Fund. The State of Illinois makes employer retiree health
insurance contributions on behalf of the ROE. State contributions are intended to match
contributions to THIS Fund from active members which were 0.88 percent of pay during the
year ended June 30, 2011. State of Illinois contributions were $787, and the ROE
recognized revenue and expenditures of this amount during the year.
State contributions intended to match active member contributions during the year ended
June 30, 2010 were 0.84 percent of pay. State contributions on behalf of ROE employees
were $839. Had the ROE recognized revenue and expenditures for State contributions
intended to match active member contributions during the year ended June 30, 2009, under
the current standards, the contribution match would have been 0.84 percent of pay, or $764.
• Employer contributions to THIS Fund. The ROE also makes contributions to THIS Fund.
The employer THIS Fund contribution was 0.66 percent during the year ended June 30,
2011, and 0.63 percent during the years ended June 30, 2010, and June 30, 2009. For the
year ended June 30, 2011, the ROE paid $590 to the THIS Fund. For the years ended June
30, 2010 and June 30, 2009, the ROE paid $629 and $573 to the THIS Fund, respectively,
which was 100 percent of the required contribution.
The publicly available financial report of the THIS Fund may be obtained by writing to the
Department of Healthcare and Family Services, 201 S. Grand Ave., Springfield, IL 62763-3838.
42
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
9. ON-BEHALF PAYMENTS AND RELATED PARTY TRANSACTIONS
The State of Illinois makes employer pension contributions and employer retiree health insurance
contributions on behalf of the ROE. The salaries, fringe benefits, and TRS contributions of the
Regional Superintendent and the Assistant Superintendents are paid by the State of Illinois. The
following salary and benefit data for the Regional Superintendent and Assistant Regional
Superintendents was calculated based on data provided by the Illinois State Board of Education.
TRS pension contributions $ 59,639
THIS contributions 787
Regional Superintendent – salary 96,435
Regional Superintendent – benefits (includes State paid insurance) 22,060
Assistant Regional Superintendent – salary 72,326
Assistant Regional Superintendent – benefits (includes State paid insurance) 1,049
Total $ 252,296
The following salary and benefit data for other employees of the ROE was calculated based on data
provided by Knox County:
Salaries $ 23,283
Benefits 9,016
Total $ 32,299
The total of the on-behalf payments shown above, $284,595, is reported as revenues and
expenditures in the General Fund.
10. OTHER DISCLOSURES
Accounting principles generally accepted in the United States of America require disclosure of
certain information concerning individual funds (which are presented only in combination on the
financial statements). Funds having deficit fund balances and funds which overextended budgets
during the year are disclosed below.
A. The following funds/accounts had a deficit fund balance at June 30, 2011.
Fund/Account Amount
Truants Alternative Education $ 8,792
ARRA – General State Aid 201
43
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
OTHER DISCLOSURES (Continued)
B. The following funds had an excess of actual expenditures over budget for the year ended
June 30, 2011.
Budget Unfavorable
Fund Amount Expenditures Variance
Regional Safe Schools $ 5 8,349 $ 6 6,385 $ 8 ,036
11. PRIOR PERIOD ADJUSTMENT
The ROE’s financial statements as of June 30, 2010 improperly classified the Knox County
Substance Abuse Prevention (KCSAP) Program as a non-major special revenue fund instead of an
agency fund. The Governmental Funds cash and fund balance have been reduced by $1,329 and the
Agency Funds cash and due to others have been increased by $1,329 to correct the aggregate effect
of the error. Had the error not been made, the net change in fund balance for the fiscal year ending
June 30, 2010 would have been decreased by $389.
12. RECLASSIFICATIONS
In the fiscal year ending June 30, 2011, the ROE’s presentation of fund balances was changed due to
the implementation of GASB 54. Implementation of this Statement caused certain accounts to be
reclassified to a different major fund category. The beginning fund balance amounts for the year
ended June 30, 2011 have been reclassified to conform to the current presentation. The following
table summarizes the changes.
General Education Institute Non-Major
Fund Fund Fund Fund Totals
06/30/10 fund balances (deficits)
as previously reported $ - $ (735) $ 17,430 $ 4,996 $ 21,691
Change due to GASB 54
implementation 63,144 (64,401) - 1,257 -
06/30/10 fund balances
(deficits) as reclassified $ 63,144 $ (65,136) $ 17,430 $ 6,253 $ 21,691
44
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
45
13. SUBSEQUENT EVENTS
The salaries and benefits of the Regional Superintendent and Assistant Regional Superintendents of
the ROE are paid by the State of Illinois. Effective July 1, 2011, Governor Pat Quinn eliminated
their funding from the State budget, stating that there is not enough money to pay them and that they
should be paid on a local level, not state level. Therefore, these individuals worked without a
paycheck starting July 1, 2011. Subsequently, on November 14, 2011, Governor Pat Quinn
approved legislation passed by State lawmakers to ensure that Regional Offices of Education have
the funds needed to operate through the end of the 2012 fiscal year. The legislation also requires a
commission be established to determine the future of the Regional Offices of Education.
SUPPLEMENTAL INFORMATION
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
COMBINING SCHEDULE OF ACCOUNTS
GENERAL FUND
June 30, 2011
ROE #33 General Drop Out
ASSETS Fund State Aid Workshops Summit Total
ASSETS
Cash and cash equivalents $ - $ 278 $ 30 $ 449 $ 757
Due from other funds - 57,278 - - 57,278
TOTAL ASSETS $ - $ 57,556 $ 30 $ 449 $ 58,035
LIABILITIES AND
FUND BALANCE
LIABILITIES
Accrued payroll $ - $ 6,503 $ - $ - $ 6,503
Total Liabilities - 6,503 - - 6,503
FUND BALANCE
Assigned - - 30 449 479
Unassigned - 51,053 - - 51,053
Total Fund Balance - 51,053 30 449 51,532
TOTAL LIABILITIES AND FUND
BALANCE $ - $ 57,556 $ 30 $ 449 $ 58,035
46
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GENERAL FUND ACCOUNTS
For the Year Ended June 30, 2011
ROE #33 General Drop Out
Fund State Aid Workshops Summit Total
REVENUES
Local sources $ - $ 5,115 $ 220 $ - $ 5,335
State sources - 134,121 - - 134,121
On-behalf payments 284,595 - - - 284,595
Total revenues 284,595 139,236 220 - 424,051
EXPENDITURES
Salaries and benefits - 106,922 - - 106,922
Purchased services - 41,526 200 421 42,147
Supplies and materials - 1,995 - 4 1,999
On-behalf payments 284,595 - - - 284,595
Total expenditures 284,595 150,443 200 425 435,663
Net change in fund balances - (11,207) 20 (425) (11,612)
FUND BALANCE AT
BEGINNING OF YEAR (restated - see note 12) - 62,260 10 874 63,144
FUND BALANCE AT
END OF YEAR $ - $ 51,053 $ 30 $ 449 $ 51,532
47
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
COMBINING SCHEDULE OF ACCOUNTS
EDUCATION FUND
June 30, 2011
McKinney Western Title I
Regional Truants Education Illinois Reading First
Safe Alternative for Homeless Investment Part B SEA Gifted
ASSETS Schools Education Children Grant Grant Education
ASSETS
Cash and cash equivalents $ - $ - $ 11 $ - $ - $ -
Due from other funds - - - - - -
Due from other governmental
units and agencies 35,075 52,708 - 18,000 - -
TOTAL ASSETS $ 3 5,075 $ 52,708 $ 11 $ 18,000 $ - $ -
LIABILITIES AND
FUND BALANCE
LIABILITIES
Accrued payroll $ - $ 10,367 $ - $ 14,000 $ - $ -
Due to other funds 2 0,768 42,345 - 4,000 - -
Deferred revenue 5 ,835 8,788 - - - -
Total Liabilities 2 6,603 61,500 - 18,000 - -
FUND BALANCE (DEFICITS)
Restricted 1 4,194 - 11 - - -
Unassigned (5,722) (8,792) - - - -
Total Fund Balance (Deficit) 8 ,472 (8,792) 11 - - -
TOTAL LIABILITIES AND FUND
BALANCE $ 3 5,075 $ 52,708 $ 11 $ 18,000 $ - $ -
48
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
COMBINING SCHEDULE OF ACCOUNTS
EDUCATION FUND
June 30, 2011
ASSETS
ASSETS
Cash and cash equivalents
Due from other funds
Due from other governmental
units and agencies
TOTAL ASSETS
LIABILITIES AND
FUND BALANCE
LIABILITIES
Accrued payroll
Due to other funds
Deferred revenue
Total Liabilities
Title II Reorganization
ARRA - Teacher ARRA - Incentive
General Quality Education Feasibility
ROE/ISC State Aid Leadership Jobs Study Total
$ - $ - $ 698 $ - $ - $ 709
5,962 - - - - 5,962
5,489 - - 1,744 - 113,016
$ 11,451 $ - $ 698 $ 1,744 $ - $ 119,687
$ - $ - $ - $ - $ - $ 24,367
- 201 - 1,744 - 69,058
5,744 - - - - 20,367
5,744 201 - 1,744 - 113,792
FUND BALANCE (DEFICITS)
Restricted
Unassigned
Total Fund Balance (Deficit)
TOTAL LIABILITIES AND FUND
BALANCE
5,707 - 698 - - 20,610
- - (201) - - - (14,715)
5,707 (201) 698 - - 5,895
$ 11,451 $ - $ 698 $ 1,744 $ - $ 119,687
49
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
EDUCATION FUND ACCOUNTS
For the Year Ended June 30, 2011
McKinney Western Title I
Regional Truants Education Illinois Reading First
Safe Alternative for Homeless Investment Part B SEA Gifted
Schools Education Children Grant Grant Education
REVENUES
Local sources $ 536 $ - $ - $ - $ - $ -
State sources 83,801 122,825 - - - 36,622
Federal sources 9,552 - 8,055 25,000 49 -
Total revenues 93,889 122,825 8,055 25,000 49 36,622
EXPENDITURES
Salaries and benefits 50,180 82,152 6,027 25,000 - 34
Purchased services 16,143 5,692 1,001 - - 4,564
Supplies and materials 62 - 16 - 4 9 9,548
Payments to other governments - - 1,011 - - 22,476
Total expenditures 66,385 87,844 8,055 25,000 49 36,622
Net change in fund balances 27,504 34,981 - - - -
FUND BALANCE (DEFICIT) AT
BEGINNING OF YEAR (restated - see note 12) (19,032) (43,773) 11 - - -
FUND BALANCE (DEFICIT) AT
END OF YEAR $ 8,472 $ (8,792) $ 11 $ - $ - $ -
50
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
EDUCATION FUND ACCOUNTS
For the Year Ended June 30, 2011
REVENUES
Local sources
State sources
Federal sources
Total revenues
EXPENDITURES
Salaries and benefits
Purchased services
Supplies and materials
Payments to other governments
Total expenditures
Net change in fund balances
Title II Reorganization
ARRA - Teacher ARRA - Incentive
General Quality Education Feasibility
ROE/ISC State Aid Leadership Jobs Study Total
$ - $ - $ - $ - $ - $ 536
11,071 - - - 7,000 261,319
- - 100,000 12,212 - 154,868
11,071 - 100,000 12,212 7,000 416,723
- - 77,280 11,497 - 252,170
3,223 - 17,129 715 7,000 55,467
- - 1,963 - - 11,638
- - 2,930 - - 26,417
3,223 - 99,302 12,212 7,000 345,692
7,848 - 698 - - 71,031
FUND BALANCE (DEFICIT) AT
BEGINNING OF YEAR (restated - see note 12)
FUND BALANCE (DEFICIT) AT
END OF YEAR
(2,141) (201) - - - (65,136)
$ 5,707 $ (201) $ 698 $ - $ - $ 5,895
51
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
REGIONAL SAFE SCHOOLS
For the Year Ended June 30, 2011
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Local sources $ - $ - $ 536 $ 536
State sources 58,349 58,349 83,801 25,452
Federal sources - - 9,552 9,552
Total revenues 58,349 58,349 93,889 35,540
EXPENDITURES
Salaries and benefits 51,781 50,180 50,180 -
Purchased services 6,568 8,069 16,143 (8,074)
Supplies and materials - 100 62 38
Total expenditures 58,349 58,349 66,385 (8,036)
Net change in fund balance $ - $ - 27,504 $ 27,504
FUND BALANCE (DEFICIT) AT
BEGINNING OF YEAR (19,032)
FUND BALANCE AT END OF YEAR $ 8,472
Budgeted Amounts
NOTE: The budget amounts for Regional Safe Schools reflect only the amounts pertaining to the Regional Safe
Schools Grant. The actual amounts reflect grant funds as well as other federal, state, and local monies which are not
subject to grant budget requirements.
52
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
TRUANTS ALTERNATIVE EDUCATION
For the Year Ended June 30, 2011
Actual Variance with
Original Final Amounts Final Budget
REVENUES
State sources $ 87,844 $ 87,844 $ 122,825 $ 34,981
Total revenues 87,844 87,844 122,825 34,981
EXPENDITURES
Salaries and benefits 82,152 82,152 82,152 -
Purchased services 5,692 5,692 5,692 -
Total expenditures 87,844 87,844 87,844 -
Net change in fund balance $ - $ - 34,981 $ 34,981
FUND BALANCE (DEFICIT) AT
BEGINNING OF YEAR (43,773)
FUND BALANCE (DEFICIT) AT END OF YEAR $ (8,792)
Budgeted Amounts
53
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
McKINNEY EDUCATION FOR HOMELESS CHILDREN
For the Year Ended June 30, 2011
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Federal sources $ 6,456 $ 8,055 $ 8,055 $ -
Total revenues 6,456 8,055 8,055 -
EXPENDITURES
Salaries and benefits 5,921 6,028 6,027 1
Purchased services 535 1,011 1,001 10
Supplies and materials - 16 16 -
Payments to other governments - 1,000 1,011 (11)
Total expenditures 6,456 8,055 8,055 -
Net change in fund balance $ - $ - - $ -
FUND BALANCE AT BEGINNING
OF YEAR 11
FUND BALANCE AT END OF YEAR $ 11
Budgeted Amounts
54
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
WESTERN ILLINOIS INVESTMENT GRANT
For the Year Ended June 30, 2011
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Federal sources $ 25,000 $ 25,000 $ 25,000 $ -
Total revenues 25,000 25,000 25,000 -
EXPENDITURES
Salaries and benefits 25,000 25,000 25,000 -
Total expenditures 25,000 25,000 25,000 -
Net change in fund balance $ - $ - - $ -
FUND BALANCE AT BEGINNING
OF YEAR -
FUND BALANCE AT END OF YEAR $ -
Budgeted Amounts
55
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
GIFTED EDUCATION
For the Year Ended June 30, 2011
Variance with
Original Final FY 2010 FY 2011 Total Final Budget
REVENUES
State sources $ 54,787 $ 54,787 $ 18,165 $ 36,622 $ 54,787 $ -
Total revenues 54,787 54,787 18,165 36,622 54,787 -
EXPENDITURES
Salaries and benefits 2,602 2,077 2,042 34 2,076 1
Purchased services 9,162 9,687 5,190 4,564 9,754 (67)
Supplies and materials 13,023 13,023 3,433 9,548 12,981 42
Payments to other governments 30,000 30,000 7,500 22,476 29,976 24
Total expenditures 54,787 54,787 18,165 36,622 54,787 -
Net change in fund balance $ - $ - $ - $ - - $ -
FUND BALANCE AT BEGINNING
OF YEAR -
FUND BALANCE AT END OF YEAR $ -
Budgeted Amounts Actual Amounts
56
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
TITLE II TEACHER QUALITY LEADERSHIP
For the Year Ended June 30, 2011
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Federal sources $ 100,000 $ 100,000 $ 100,000 $ -
Total revenues 100,000 100,000 100,000 -
EXPENDITURES
Salaries and benefits 75,114 77,280 77,280 -
Purchased services 16,291 20,423 17,129 3,294
Supplies and materials 8,595 2,297 1,963 334
Payments to other governments - - 2,930 (2,930)
Total expenditures 100,000 100,000 99,302 698
Net change in fund balance $ - $ - 698 $ 698
FUND BALANCE AT BEGINNING
OF YEAR -
FUND BALANCE AT END OF YEAR $ 698
Budgeted Amounts
57
KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
June 30, 2011
Knox County
General Bus Substance Abuse
Education Driver Prevention
Development Training Program Supervisory Total
ASSETS
Cash and cash equivalents $ 635 $ 1,444 $ - $ 149 $ 2,228
Due from other funds 5,818 - - - 5,818
TOTAL ASSETS $ 6,453 $ 1,444 $ - $ 149 $ 8,046
LIABILITIES AND
FUND BALANCE
LIABILITIES $ - $ - $ - $ - $ -
FUND BALANCE
Restricted 6,453 1,444 - 149 8,046
TOTAL LIABILITIES AND FUND
BALANCE $ 6,453 $ 1,444 $ - $ 149 $ 8,046
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KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NON-MAJOR SPECIAL REVENUE FUNDS
For the Year Ended June 30, 2011
Knox County
General Bus Substance Abuse
Education Driver Prevention
Development Training Program Supervisory Total
REVENUES
Local sources $ 7,946 $ 1,470 $ - $ - $ 9,416
State sources - 834 - - 834
Total revenues 7,946 2,304 - - 10,250
EXPENDITURES
Purchased services 3,227 910 - - 4,137
Supplies and materials 2,991 - - - 2,991
Total expenditures 6,218 910 - - 7,128
Net change in fund balances 1,728 1,394 - - 3,122
FUND BALANCE AT
BEGINNING OF YEAR (restated - see note 12) 4,725 50 1,329 149 6,253
PRIOR PERIOD ADJUSTMENT - - (1,329) - (1,329)
FUND BALANCE AT
BEGINNING OF YEAR (RESTATED) 4,725 50 - 149 4,924
FUND BALANCE AT
END OF YEAR $ 6,453 $ 1,444 $ - $ 149 $ 8,046
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KNOX COUNTY
REGIONAL OFFICE OF EDUCATION #33
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For the Year Ended June 30, 2011
Balance
7/1/2010 Balance
(as restated) Additions Deductions 6/30/2011
KNOX COUNTY SUBSTANCE
ABUSE PREVENTION PROGRAM
ASSETS
Cash and cash equivalents $ 1,329 $ 500 $ 89 $ 1,740
LIABILITIES
Due to others $ 1,329 $ 500 $ 89 $ 1,740
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