FY11-ROE01-Fin-Full

              State of Illinois
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2011
Performed as Special Assistant Auditors
for the Auditor General, State of Illinois
TABLE OF CONTENTS
Agency Officials
Financial Report Summary
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
Financial Statement Report Summary
Independent Auditors' Report
Independent Auditors' 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
Summary of Auditor's Results
Financial Statement Findings
Corrective Action Plans
Summary Schedule of Prior Audit Findings
Management's Discussion and Analysis
Statement of Net Assets
Statement of Activities
Balance Sheet - Governmental Funds
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets
Statement of Revenues, Expenditures, and Changes in Fund
Balances - Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances to the Statement of Activities - Governmental Funds
Statement of Fiduciary Net Assets
Notes to Financial Statements
Required Supplemental Information (Other than Management's
Discussion and Analysis)
Schedule of Funding Progress- Illinois Municipal Retirement Fund- IMRF
Supplemental Information
Combining Schedule of Accounts - General Fund
Combining Schedule of Revenues, Expenditures,
and Changes in Fund Balances - General Fund Accounts
Combining Schedule of Accounts - Education Fund
Combining Schedule ofRevenues, Expenditures,
and Changes in Fund Balances - Education Fund Accounts
Budgetary Comparison Schedule - Education Fund Accounts
Combining Balance Sheet- Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances- Nonmajor Special Revenue Funds
Statement of Changes in Assets and Liabilities - Agency Fund
Schedule of Disbursements to School District Treasurers and Other Entities
1
2
3
4-5
6-7
8
9- 11
12- 13
14
15- 19
20
21
22
23
24
25
26
27-42
43
44
45
46-47
48-49
50-55
56
57
58
59
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
AGENCY OFFICIALS
Regional Superintendent
(Current)
Assistant Regional Superintendent
(Current)
Assistant Regional Superintendents
(During audit period)
Offices are Located at:
Adams County Courthouse
507 Vermont Street
Quincy, IL 62301
and
1267 East Washington
Pittsfield, IL 62363
1
Ms. Deborah Niederhauser
Ms. Jill Reis
Mr. Wilfred Flesner
Mr. Raymond Scheiter
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
FINANCIAL REPORT SUMMARY
The fmancial 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 auditors' report on internal controls do not contain scope limitations, disclaimers, or other significant non-standard
language.
SUMMARY OF AUDIT FINDINGS
Number of
Audit fmdings
Repeated audit findings
Prior recommendations implemented or not repeated
This Audit
3
3
0
Details of audit fmdings are presented in a separate report section.
Prior Audit
3
3
0
An additional matter which is less than a significant deficiency or material weakness but more than inconsequential, has
been reported in a Management Letter of Comment to the Regional Superintendent. In prior years, these issues may have
been included as immaterial fmdings in the auditors' reports.
Item No.
11-1
11-2
11-3
None
SUMMARY OF FINDINGS AND RESPONSES
Description
FINDINGS (GOVERNMENT AUDITING STANDARDS)
9
10
11
Transactions of two entities are recorded in one
accounting system
Controls over fmancial statement preparation
Expenditure reports did not agree to general ledger
PRIOR FINDINGS NOT REPEATED (GOVERNMENT AUDITING STANDARDS)
EXIT CONFERENCE
Finding Type
Significant Deficiency
Material Weakness
Significant Deficiency
and noncompliance
The fmdings and recommendations appearing in this report were discussed with Agency personnel at an informal exit
conference on September 15, 2011. Attending were Deborah Niederhauser, Regional Superintendent of Schools, and
Shawn Williamson, Partner, ofFick, Eggemeyer & Williamson, CPA's. Responses to the recommendations were
provided by Deborah Niederhauser, Regional Superintendent on September 16,2011.
2
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
FINANCIAL STATEMENT REPORT SUMMARY
The audit of the accompanying basic financial statements of the Adams and Pike Counties
Regional Office ofEducation #1 was performed by Pick, Eggemeyer & Williamson, CPA's.
Based on their audit, the auditors expressed an unqualified opinion on the Adams and Pike
Counties Regional Office of Education #1 's basic financial statements.
3
F~ Eggemeyer
Willia~nson
Certified Public Accountants, PC
Honorable William G. Holland
Auditor General
State of Illinois
INDEPENDENT AUDITORS' REPORT
MEMBERS OF THE
AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
As Special Assistant Auditors for the Auditor General, we have audited the accompanying financial statements
ofthe governmental activities, each major fund, and the aggregate remaining fund information of the Adams
and Pike Counties Regional Office of Education #I, as of and for the year ended June 30, 20II, which
collectively comprise the Adams and Pike Counties Regional Office of Education #I 's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the Adams and
Pike Counties Regional Office of Education #I 's management. Our responsibility is to express opinions on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards' issued
by the Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and the significant estimates made
by management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, each major fund, and the aggregate remaining fund
information of the Adams and Pike Counties Regional Office of Education #I, as of June 30, 20II, 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 Adams and Pike Counties Regional Office of Education #I adopted GASB Statement No. 54, Fund
Balance Reporting and Governmental Fund Type Definitions during the year ended June 30, 20II. The
statement changed the classifications of governmental fund balances and clarified the definitions of existing
fund types. The adoption of this statement had no effect on the any of the Adams and Pike Counties Regional
Office ofEducation #I's governmental funds' assets or liabilities nor was there any effect to the total amount
of any of the Adams and Pike Counties Regional Office of Education #I 's governmental fund balances as of
and for the year ended June 30, 20 II.
In accordance with Government Auditing Standards, we have also issued a report dated December 6, 20II on
our consideration of the Adams and Pike Counties Regional Office of Education #I 's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audit.
4
6240 S. Lindbergh, Ste 101• St. Louis, MO 63123 •(314) 845-7999 •Fax (314) 845-7770
205 S. Main •Columbia, IL 62236 •(618) 281-4999 •Fax (618) 281-9533 ewww.afewcpas.com
The Management's Discussion and Analysis and the Illinois Municipal Retirement Fund Schedule of Funding
Progress on pages 15-19 and 42 are not a required part ofthe basic financial statements but are supplementary
information required by accounting principles generally accepted in the United States of America. We have
applied certain limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the required supplementary information. However, we did not
audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Adams and Pike Counties Regional Office of Education #1 's.basic financial statements. The
combining and individual nonmajor fund financial statements, budgetary comparison schedules, and the
Schedule of Disbursements to School District Treasurers and Other Entities are presented for purposes of
additional analysis and are not a required part of the basic financial statements. The combining and individual
nonmajor fund financial statements, budgetary comparison schedules, and the Schedule of Disbursements to
School District Treasurers and Other Entities have been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
~c~cfw~
Fick, Eggemeyer, & Williamson, CPA's
December 6, 2011
5
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
SCHEDULE OF FINDINGS AND RESPONSES
For the Year Ended June 30,2011
Section I- Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: Unqualified
Internal control over financial reporting:
Material weaknesses identified
Significant deficiencies identified that are
not considered to be material weaknesses
Noncompliance material to
financial statements noted?
X Yes
X Yes
X Yes
8
___ No
___ No
___ No
ADAMSANDP~COUNTffiS
REGIONAL OFFICE OF EDUCATION #1
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,
07-1, 06-1, 05-1,
04-1, 03-4
TRANSACTIONS OF TWO ENTITffiS ARE RECORDED IN ONE ACCOUNTING SYSTEM
Criteria/Specified Requirement:
According to governmental accounting standards, transactions of two separate primary government units should
not be co-mingled in one general ledger system. According to GASB 14, a special purpose government is a
primary government if it has the following three characteristics: a separately elected governing board; fiscal
independence; and status as a separate legal entity.
Condition:
During the past fiscal year, the Adams and Pike Counties Regional Office of Education #1 (ROE) recorded cash
transactions of the West Central Regional System #240 (WCR) in its general ledger system. The WCR has a
separately elected board. It is a legally separate entity, and it is fiscally independent. The WCR administers
vocational education services for the Region, and Adams and Pike Counties Regional Office of Education #1
has acted as a fiscal agent for the WCR for several years.
Effect:
Transactions of the WCR appear in the financial reports prepared by the ROE.
Cause:
The Adams and Pike Counties Regional Office of Education #1 attempted to maintain a separate general ledger
system for the WCR. However, the ROE continued to record certain WCR transactions in the ROE general
ledger.
Recommendation:
The Adams and Pike Counties Regional Office of Education #1 should establish an entirely separate set of
records in order to eliminate the co-mingling of the Regional Office of Education #1 and WCR accounting
activity.
Management's Response:
Management of the Adams and Pike Counties Regional Office of Education #1 agrees with the finding. As of
July 1, 2011, Adams and Pike Counties Regional Office of Education # 1 will no longer be acting as the fiscal
agent for the West Central Regional System #240.
9
ADAMSANDPlliECOUNTffiS
REGIONAL OFFICE OF EDUCATION #1
SCHEDULE OF FINDINGS
For the Year Ended June 30, 2011
Section II - Financial Statement Findings FINDING NO. 11-2
CONTROLS OVER FINANCIAL STATEMENT PREPARATION
Criteria/Specified Requirement:
Repeated from 10-2, 09-2, 08-3
07-6
The Adams and Pike Counties Regional Office of Education #1 is required to maintain a system of controls over
the preparation offmancial statements in accordance with generally accepted accounting principles (GAAP).
Regional Office internal controls over GAAP fmancial 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 Adams and Pike Counties Regional Office of Education #1 does not have sufficient internal controls over
the fmancial reporting process. The Regional Office maintains its accounting records on the cash basis of
accounting. While the Regional Office maintains controls over the processing of most accounting transactions,
there are not sufficient controls over the preparation of GAAP based financial statements for management or
employees in the normal course of performing their assigned functions to prevent or detect financial statement
misstatements and disclosure omissions in a timely manner. For example, auditors, in their review of the
Regional Office's accounting records, noted the following:
• Numerous adjustments were required to present financial statements in accordance with generally
accepted accounting principles. Proposed adjusting entries changed the Regional Office's net assets by
$99,696.
• The Regional Office did not have adequate controls over the maintenance of records of accounts
receivable. Accounts receivable and grants receivable balances were adjusted at June 30, 2011 by a net
total of $42,272.
Effect:
Management or employees in the normal course of performing their assigned functions may not prevent or
detect fmancial statement misstatements and disclosure omissions in a timely manner.
Cause:
According to Regional Office officials, they did not have adequate funding to hire or train their accounting
personnel.
Recommendation:
As part of its internal control over the preparation of its fmancial statements, including disclosures, the Regional
Office of Education #1 should implement a comprehensive preparation and/or review procedure to ensure that
the financial statements, including disclosures, are complete and accurate. Such review 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:
Management of the Adams and Pike Counties Regional Office of Education #1 agrees with the fmding. The
Regional Office of Education #1 will employ accountants familiar with ROE operations to prepare financial
statements according to GAAP standards.
10
ADAMSANDP~COUNTffiS
REGIONAL OFFICE OF EDUCATION #1
SCHEDULE OF FINDINGS
For the Year Ended June 30, 2011
Section II - Financial Statement Findings FINDING NO.
Repeated from
EXPENDITURE REPORTS DID NOT AGREE TO GENERAL LEDGER
Criteria/Specified Requirement:
11-3
10-3, 09-3, 08-4,
07-5, 06-5, 05-5
Expenditure reports for education programs submitted to the Illinois State Board of Education and the Illinois
Department of Human Services should agree with the expenditures reported on the Adams and Pike Counties
Regional Office of Education #1 's general ledger.
Condition:
A comparison of expenditure reports to the Adams and Pike Counties Regional Office of Education #1 's general
ledger revealed instances where the totals on the fmal2011 expenditure reports were not consistent with the
Adams and Pike Counties Regional Office of Education #1 's general ledger. While the following amounts are
small, given the number of inconsistencies and historical nature of the fmding (repeated several years) we noted
the following:
• The expenditure report submitted to the Illinois State Board of Education for the ROE/ISC Operations
program reported total expenditures of$99,537, while the general ledger showed expenditures of
$99,976 (a $439 difference).
• The expenditure report submitted to the Illinois State Board of Education for the Truants
Alternative/Optional Education program reported total expenditures of $58,4 73, while the general
ledger showed expenditures of$58,955 (a $482 difference).
• The expenditure report submitted to the Illinois Department of Human Services for the Regional Office
of Prevention Effectiveness Services program reported total expenditures of $95,001, while the general
ledger showed expenditures of$95,852 (a $851 difference).
• The expenditure report submitted to the Illinois Department of Human Services for the Special
Education Grants Infants/Toddlers program reported total expenditures of $392,970, while the general
ledger showed expenditures of$393,878 (an $908 difference).
Effect:
Inaccurate expenditure reports were submitted, which could lead to granting agencies requesting
reimbursements or adjustments to the fiscal year 2012 grant amounts.
Cause:
The Adams and Pike Counties Regional Office of Education #1 personnel responsible for expenditure reports
prepared the reports based on numbers that were not yet fully adjusted at year-end.
Recommendation:
The Adams and Pike Counties Regional Office of Education #1 personnel responsible for preparing the
expenditure reports should use expenditures per the general ledger after all adjustments have been made.
Management's Response:
Management of the Adams and Pike Counties Regional Office of Education #1 agrees with the finding.
Accounting personnel will not prepare reports to the Illinois State Board of Education or the Illinois Department
of Human Services until all year end adjustments have been made.
11
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
CORRECTIVE ACTION PLAN FOR CURRENT -YEAR AUDIT FINDINGS
June 30, 2011
Corrective Action Plan
Finding No. 11-1
Condition:
Plan:
During the past fiscal year, the Adams and Pike Counties Regional Office of Education #1
(ROE) recorded cash transactions of the West Central Regional System #240 (WCR) in its
general ledger system. The WCR has a separately elected board. It is a legally separate entity,
and it is fiscally independent. The WCR administers vocational education services for the
Region, and Adams and Pike Counties Regional Office of Education# 1 has acted as a fiscal
agent for the WCR for several years.
As of July 1, 2011, Adams and Pike Counties Regional Office of Education # 1 will no longer be
acting as the fiscal agent for the West Central Regional System #240.
Anticipated Completion Date: July 2011
Contact Name: Regional Superintendent Deborah Niederhauser
Corrective Action Plan
Finding No. 11-2
Condition:
Plan:
The Adams and Pike Counties Regional Office of Education #1 does not have sufficient internal
controls over the financial reporting process. The Regional Office maintains its accounting
records on the cash basis of accounting. While the Regional Office maintains controls over the
processing of most accounting transactions, there are not sufficient controls over the preparation
of GAAP based fmancial statements for management or employees in the normal course of
performing their assigned functions to prevent or detect financial statement misstatements and
disclosure omissions in a timely manner. For example, auditors, in their review of the Regional
Office's accounting records, noted the following:
• Numerous adjustments were required to present financial statements in accordance with
generally accepted accounting principles. Proposed adjusting entries changed the Regional
Office's net assets by $99,696.
• The Regional Office did not have adequate controls over the maintenance of records of
accounts receivable. Accounts receivable and grants receivable balances were adjusted at
June 30, 2011 by a net total of $42,272.
The Regional Office of Education #1 will employ accountants familiar with ROE operations to
prepare fmancial statements according to GAAP standards.
Anticipated Completion Date: September 2011
Contact Name: Regional Superintendent Deborah Niederhauser
12
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
CORRECTNE ACTION PLAN FOR CURRENT -YEAR AUDIT FINDINGS
June 30, 2011
Corrective Action Plan
Finding No. 11-3
Condition:
Plan:
A comparison of expenditure reports to the Adams and Pike Counties Regional Office of
Education #1 's general ledger revealed instances where the totals on the fmal2011 expenditure
reports were not consistent with the Adams and Pike Counties Regional Office of Education
#1 's general ledger. While the following amounts are small, given the number of
inconsistencies and historical nature of the finding (repeated several years) we noted the
following:
• The expenditure report submitted to the Illinois State Board of Education for the ROEIISC
Operations program reported total expenditures of $99,537, while the general ledger showed
expenditures of$99,976 (a $439 difference).
• The expenditure report submitted to the Illinois State Board of Education for the Truants
Alternative/Optional Education program reported total expenditures of$58,473, while the
general ledger showed expenditures of$58,955 (a $482 difference).
• The expenditure report submitted to the Illinois Department of Human Services for the
Regional Office of Prevention Effectiveness Services program reported total expenditures of
$95,001, while the general ledger showed expenditures of$95,852 (a $851 difference).
• The expenditure report submitted to the Illinois Department of Human Services for the
Special Education Grants Infants/Toddlers program reported total expenditures of $392,970,
while the general ledger showed expenditures of$393,878 (an $908 difference).
Accounting personnel will not prepare reports to the Illinois State Board of Education or the
Illinois Department of Human Services until all year end adjustments have been made.
Anticipated Completion Date: September 2011
Contact Name: Regional Superintendent Deborah Niederhauser
13
Prior Finding Number
10-1
10-2
10-3
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
June 30, 2011
Condition Current Status
Transactions of two entities Repeated as 11-1
are recorded in one
accounting system.
Controls over fmancia1 Repeated as 11-2
statement preparation
Expenditure reports did not Repeated as 11-3
agree to general ledger.
14
MANAGEMENT'S DISCUSSION
AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
Adams and Pike Counties Regional Office of Education #1 (ROE) provides this Management's Discussion and Analysis of its
financial statements. This narrative overview and analysis of the fmancial activities is for the fiscal year ended June 30, 2011.
We encourage readers to consider this information in conjunction with the ROE's financial statements, which follow.
2011 FINANCIAL HIGHLIGHTS
• Governmental Fund revenues increased from $1,901,488 in fiscal year 2010 (FYlO) to $2,007,539 in fiscal year 2011
(FY11), while Governmental Fund expenditures decreased from $2,068,035 in FY10 to $1,723,314 in FY11. This
resulted in an increase in the Governmental Fund balance from $359,433 in FY10 to $618,788 in FY11, a 72%
increase from the prior year.
USING THIS ANNUAL REPORT
The annual report consists of a series of financial statements and other information as follows:
• Management's Discussion and Analysis introduces the basic financial statements and provides an analytical overview
of the ROE's fmancial activities.
• The Government-wide Financial Statements consist of a Statement of Net Assets and a Statement of Activities. These
provide information about the activities of the ROE as a whole and present an overall view of the ROE's fmances.
• The Fund Financial Statements tell how governmental services were financed in the short term as well as what
remains for future spending. Fund financial statements report the ROE's operations in more detail than the
government-wide statements by providing information about the most significant funds.
• Notes to the Financial Statements provide additional information that is essential to a full understanding of the data
provided in the basic fmancial statements.
• Supplementary Information further explains and supports the fmancial statements with a comparison of the ROE's
budget for the year and provides detailed information about the nonmajor funds.
REPORTING THE AGENCY AS A WHOLE
The Statement of Net Assets and the Statement of Activities
The Government-wide statements report information about the ROE as a whole using accounting methods similar to
those used by private-sector companies. The Statement of Net Assets includes all the ROE's assets and liabilities. All
of the current year revenues and expenses are accounted for in the Statement of Activities regardless of when cash is
received or paid.
15
The two Government-wide statements report the ROE's net assets and how they have changed. Net assets- the
difference between the ROE's assets and liabilities- are one way to measure the agency's financial health or position.
• Over time, increases or decreases in the ROE's net assets are an indicator of whether fmancial position is
improving or deteriorating, respectively.
• To assess the ROE's overall health, additional non-financial factors, such as a change in the ROE's
responsibilities and staffing, need to be considered.
In the Government-wide financial statements, the ROE's activities are reported as:
• Governmental activities: All of the ROE's services are included here, such as Regional Safe Schools
instruction, drug prevention education, instructional staff support services and administration. Federal and
State grants finance most of these activities.
Fund Financial Statements
The fund financial statements provide detailed information about the ROE's funds, focusing on its most significant or
"major" funds- not the ROE as a whole. Funds are accounting devices the ROE uses to keep track of specific sources
of funding and spending on particular programs. Some funds are required by State law. The ROE established other
funds to control and manage money for particular purposes, such as accounting for State and Federal grants.
The ROE has two kinds of funds:
1) Governmental funds account for all of the ROE's services. These focus on how cash and other fmancial assets
can readily be converted to cash flow and the balances left at year-end that are available for spending.
Consequently, the governmental fund statements provide a detailed short-view that helps determine whether there
are more or fewer financial resources that can be spent in the near future to finance the ROE's programs.
Because this information does not encompass the additional long-term focus of the Government-wide statements,
additional information immediately following each of the governmental fund statements explains the relationship
or difference between the two statements. The ROE's governmental funds include: 1) the General Fund, and 2)
the Special Revenue funds.
2) Fiduciary funds account for funds received from the State Board of Education and distributed to school districts
and other organizations in the region.
A summary reconciliation between the Government-wide financial statements and the fund fmancial statements follows the
fund fmancial statements.
16
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of financial position. The ROE's net assets at the end of
FY11 totaled $676,815. This is compared to $590,350 at the end ofFY10. The analysis that follows provides a summary of
the ROE's net assets at June 30, 2011 and 2010 for governmental activities.
Current and other assets
Capital assets
Total assets
Other liabilities
Total liabilities
Net assets:
Invested in capital assets
Unrestricted
Restricted for educational purposes
Total net assets
Condensed Statement of Net
Assets
Governmental Activities
20ll 2010
$895,492 $675,770
37,033 53,148
932,525 728,918
255,710 138,568
255,710 138,568
37,033 53,148
486,408 522,622
153,374 14,580
$676,815 $590,350
The ROE's combined nets assets increased by $86,465 from FY10. The increase was a result of decreasing expenditures and
increasing revenues during the year ended June 30, 2011. In addition, net assets related to the Institute Fund are considered
restricted for teacher professional development.
The following analysis shows the changes in net assets for the years ended June 30, 2011 and 2010.
Change in Net Assets
Governmental Activities
20ll 2010
Revenues:
Program revenues:
Operating grants and contributions $ 1,161,157 $ 1,357,322
General revenues:
Registration, certification and permit fees 93,530 89,891
Local sources 285,655 245,489
State sources 93,723 110,645
On-behalf payments 216,353 275,572
Interest income 346 338
Total revenues 1,850,764 2,079,257
Program expenses:
Instructional services 1,523,076 1,769,913
Administrative expenses:
On-behalf payments- state 216,353 275,572
Total expenses 1,739,429 2,045,485
Change in net assets 111,335 33,772
Net assets, beginning of year 590,350 556,578
Prior period adjustment {24,870}
Net assets, end of year $ 676,815 $ 590,350
Operating grants and contributions from local, state and federal sources account for 62.7% of the total revenue. The ROE's
expenses primarily relate to instructional services, which account for 87.6% of the total expenses.
17
Governmental activities
Revenues from governmental activities were $1,850,764 and expenses were $1,739,429. In a difficult budget year, the ROE
was able to keep expenditures below revenue, which resulted in an increase in net assets.
FINANCIAL ANALYSIS OF THE ROE'S FUNDS
As previously noted, the Adams and Pike Counties Regional Office of Education #1 uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements.
The ROE's governmental funds reported a combined fund balance of$618,788, which is above last year's ending fund balance
of $359,433. The primary reason for the increase in combined fund balances in FY11 was an increase in revenues over
expenditures.
Governmental Fund Highlights
• The ROE's increasing General Fund position is the result of the revenues increasing more than the increase
in expenditures during FY 11.
• The ROE's increasing Education Fund position is the result of decreasing expenditures.
BUDGETARY HIGHLIGHTS
The ROE was not required to adopt annual budgets for all funds under its control and is not legally required to do so. The ROE
submits its budget to the State Board of Education and all other grantors that require it. The budgets may be amended during
the year utilizing procedures prescribed by the particular grantor. Over the course of the year, the ROE amended certain
operating budgets to reflect additional revenue and expenditures associated with the additional services needed and provided.
Budgetary comparison schedules are provided in the financial statements on pages 50-55.
CAPITAL ASSETS
At June 30, 2011, the ROE had invested $37,033, net of accumulated depreciation, in various capital assets including
computers, furniture and equipment. Current year asset additions were $3,688.
The ROE had depreciation expense of$19,803 in FY11 and total accumulated depreciation of$306,287 at June 30, 2011.
More detailed information about capital assets is available in Note 13 to the fmancial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
At the time these fmancial statements were prepared and audited, the ROE was aware of certain circumstances that could
significantly affect its financial health in the future:
• The ROE experienced reduced funding for ROE operations in two of the prior three years. For FY12, the ROE
expects funding for ROE operations to be eliminated.
• The ROE expects funding from the County to increase by approximately 3% per year for many years to come.
18
ROE Operations Grant
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
FY09 FY10 FY 11
FY 09 $142,726
FY 10 $110,645
FY 11 $155,645
FY 12$ 0
The ROE operations grant has decreased 100% through FY 12.
CONTACTING THE AGENCY'S FINANCIAL MANAGEMENT
FY12
This financial report is designed to provide the ROE's financial statement users with a general overview of the ROE's finances
and to demonstrate the ROE's accountability for the money it receives. If you have any questions about this report or need
additional financial information, contact the Regional Superintendent of the Adams and Pike Counties Regional Office of
Education #1, 507 Vermont, Quincy, IL 62301.
19
Basic Financial Statements
ASSETS
Current assets:
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
STATEMENTOFNET ASSETS
JUNE 30, 2011
Cash and cash equivalents
Grants receivable
Accounts receivable
Total current assets
Noncurrent assets:
Capital assets, net of depreciation
Total noncurrent assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Cash overdraft
Accounts payable
Payroll taxes and liabilities payable
Total current liabilities
TOTAL LIABILITIES
NET ASSETS
Invested in capital assets
Unrestricted net assets
Restricted for educational purposes
TOTAL NET ASSETS
$
$
$
$
$
$
Governmental
Activities
669,872
219,757
5,863
895,492
37,033
37,033
932,525
250,614
4,596
500
255,710
255,710
37,033
486,408
153,374
676,815
The notes to the financial statements are an integral part of this statement.
20
FUNCTIONS/PROGRAMS
Primary government:
Instructional services:
Salaries and benefits
Purchased services
Travel and entertainment
Supplies and materials
Institute expenses and workshops
Depreciation
Capital outlay
Communication
Postage and copies
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2011
Pro~am Revenues
Operating Capital
Grants and Grants and
ExEenses Contributions Contributions
$ 796,343 $ 731,305 $
308,080 219,655
77,658 51,160
37,136 28,097
10,650
19,803
2,390
2,709
5,679 100
Payments to other governmental units 258,216 128,023
Other 6,802 427
Administrative:
On-behalf payments - State 216,353
Total governmental activities 1,739,429 1,161,157
Total primary government $ 1,739,429 $ 1,161,157 $
General revenues:
Registration, certification and permit fees
Local sources
State sources
On-behalf payments
Interest income
Total general revenues
Changes in net assets
Net assets- beginning
Prior period adjustment
Net assets- ending
The notes to the financial statements are an integral part of this statement.
21
Net (Expense)
Revenue and Changes
in Net Assets
Governmental
Activities
$ (65,038)
(88,425)
(26,498)
(9,039)
(10~650)
(19,803)
2,390
(2,709)
(5,579)
(130,193)
(6,375)
~216,3532
~578,2722
(578,272)
93,530
285,655
93,723
216,353
346
689,607
111,335
590,350
~24,8702
$ 676,815
ADAMSANDPlliECOUNTffiS
REGIONAL OFFICE OF EDUCATION #1
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
Other Total
ASSETS
Cash and cash equivalents $
Grants receivable
Accounts receivable
TOTAL ASSETS $
LIABILITffiS AND FUND BALANCES
LIABILITffiS
Cash overdraft $
Accounts payable
Deferred revenue
Payroll taxes and liabilities payable
TOTAL LIABILITffiS
FUND BALANCES
Restricted
Assigned
Unassigned
TOTAL FUND BALANCES
TOTAL LIABILITffiS AND FUND
BALANCES $
General
Fund
541,598
5,863
547,461
4,021
500
4,521
72,610
470,330
542,940
547,461
$
$
$
$
Education
Fund
69,745
219,757
289,502
250,614
20,994
271,608
74,426
(56,532)
17,894
289,502
Non-Major
Funds
$ 58,529
$ 58,529
$
575
575
57,954
57,954
$ 58,529
The notes to the financial statements are an integral part of this statement.
22
Governmental
Funds
$ 669,872
219,757
5,863
$ 895,492
250,614
4,596
20,994
500
276,704
132,380
72,610
413,798
618,788
$ 895,492
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2011
Total fund balances - governmental funds
Amounts reported for governmental activities in the Statement
of Net Assets are different because:
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.
Capital assets used in governmental activities are not financial resources and therefore
are not reported in the funds. The cost of assets is $343,320 and the
accumulated depreciation is $306,287.
Net assets of governmental activities
The notes to the financial statements are an integral part of this statement.
23
$
$
618,788
20,994
37,033
676,815
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
Other Non-Major
Revenues: General Fund Education Fund Funds
Registration, certification and permit fees $ 44,334 $ 5,575 $ 43,621
Local sources 239,836 45,819
State sources 250,498 849,651 852
State sources - on behalf payments 216,353
Federal sources 310,654
Interest income 317 14 15
Total revenues 751,338 1,211,713 44,488
ExEenditures:
Instructional services:
Salaries and benefits 159,451 636,892
Salaries and benefits - on behalf payments 216,353
Purchased services 73,250 224,736 10,094
Travel and entertainment 15,003 59,677 2,978
Supplies and materials 2,586 34,431 119
Institute expenses and workshops 10,650
Communication 908 959 842
Postage and copies 4,706 626 347
Payments to other governmental units 170,498 87,718
Other 3,161 3,641
Capital outlay 1,382 2,306
Total expenditures 647,298 1,047,345 28,671
Excess/( deficiency) of revenues over expenditures 104,040 164,368 15,817
Other fmancing sources (uses)
Transfers in 45,000 1,772
Transfers out (603) (46,169)
Total other fmancing sources 44,397 (44,397)
Net change in fund balances 148,437 119,971 15,817
Fund balance, Beginning of year 394,503 (77,207) 42,137
Prior period adjustment (24,870)
Fund balance, End of year $ 542,940 $ 17,894 $ 57,954
The notes to the financial statements are an integral part of this statement.
24
Total
Governmental
Funds
$ 93,530
285,655
1,101,001
216,353
310,654
346
2,007,539
796,343
216,353
308,080
77,658
37,136
10,650
2,709
5,679
258,216
6,802
3,688
1,723,314
284,225
46,772
(46,772)
284,225
359,433
(24,870)
$ 618,788
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
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
Amounts reported for governmental activities in the Statement of Activities are
different because:
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.
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
Change in net assets of governmental activities
3,688
{19,803)
The notes to the financial statements are an integral part of this statement.
25
$
$
284,225
(156,775)
(16,115)
111,335
ASSETS
Cash
Total assets
LIABILITIES
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUND
JUNE 30, 2011
Accumulated interest payable
Total liabilities
$
$
$
$
Agency
Fund
The notes to the financial statements are an integral part of this statement.
26
593
593
593
593
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Adams and Pike Counties Regional Office of Education #1 (ROE) was formed under the provisions of
the State of Illinois, Illinois State Board of Education.
In 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 A/CPA 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.
A. FINANCIAL REPORTING ENTITY
The Regional Superintendent is charged with responsibility for township fund lands; registration of the names of
applicants for scholarships to State-controlled universities; examinations and related duties; visitation of public
schools; direction of teachers and school officers; to serve as the official advisor and assistant of school officers
and teachers; to conduct teachers institutes as well as to aid and encourage the formation of other teachers'
meetings and assist in their management; to evaluate the schools in the region; to examine evidence of
indebtedness; to file and keep the returns of elections required to be returned to the Regional Superintendent's
office; and to 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 ROE's districts;
providing township treasurers with a list of district treasurers; inspecting and approving building plans which
comply with State law; performing and reporting on annual building inspections; investigating bus drivers for
valid bus driver permits and taking related action as may be required; maintaining a list of unfilled teaching
positions; and carrying out other related duties required or permitted by law.
The Regional Superintendent is responsible for inspection and approval or rejection of school treasurers'
bonds. The Regional Superintendent is also required to provide the State Board of Education with an
affidavit showing that the treasurers of school districts within his region are properly bonded.
The Regional Superintendent is also responsible for apportionment and payment of funds received from the
State for the districts in the region, or seeing that no payments are made unless the treasurer has filed or
renewed appropriate bond and that the district has certified publication of the annual financial report. The
Regional Superintendent is required to provide opinions and advice related to controversies under school
law.
For the period ended June 30, 2011, the ROE 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
Regional Office of Education #1. Such activities are reported as a single special revenue fund (Education
Fund).
27
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. SCOPE OF THE REPORTING ENTITY
The Adams and Pike Counties Regional Office of Education #1 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 Adams and Pike Counties Regional
Office of Education #1, including districts or joint agreements, which serve pupils from numerous regions,
should be included in its fmancial reporting entity. The criteria include, but are not limited to, whether the
ROE exercises oversight responsibility (which includes fmancial interdependency, selection of governing
authority, designation of management, ability to significantly influence operations, and accountability for
fiscal matters), scope of public service, and special fmancing relationships.
The districts and joint agreements have been determined not to be a part of the reporting entity after applying
the manifesting of oversight, scope of public service, and special financing relationships criteria and are
therefore excluded from the accompanying fmancial statements because the ROE does not control the assets,
operations or management of the districts or 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 unit of the entity.
C. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The Statement of Net Assets and the Statement of Activities are government-wide financial statements. They
report information on all of the ROE's activities, with most of the interfund activities removed.
Governmental activities include programs supported primarily by state and federal grants and other
intergovernmental revenues.
The ROE's government-wide financial statements include a Statement of Net Assets and a Statement of
Activities. These statements present a summary of governmental activities for the ROE. These statements are
presented on an "economic resources" measurement focus as prescribed by GASB Statement No. 34. All of
the ROE's assets and liabilities, including capital assets, are included in the accompanying Statement of Net
Assets. The Statement of Activities demonstrates the degree to which the direct expenses of a given function
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function. Program revenues include (1) charges for services and (2) grants and contributions that are
restricted to meeting operational or capital requirements of a particular function.
Separate financial statements are provided for governmental funds, and fiduciary funds, even though the
latter are excluded from the government-wide financial statements. Major individual governmental funds are
reported as separate columns in the fund fmancial statements.
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, such as payables, receivables, and transfers. Interfund activities between governmental funds
appear as due to/due from on the Governmental Fund Balance Sheet and as other resources and other uses on
the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances.All interfund
transactions between governmental funds are eliminated on the government-wide financial statements.
28
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. GOVERNMENTAL FUND FINANCIAL STATEMENTS
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures,
and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An
accompanying schedule is presented to reconcile and explain the differences in fund balances and changes in
fund balances as presented in these statements to the net assets and changes in net assets presented in the
government-wide fmancial statements.
The governmental fund fmancial statements have been prepared in accordance with generally accepted
accounting principles on the modified accrual basis. 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. Revenues received more than 60 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
fmancial statements. Expenditures are recognized in the accounting period in which the fund liability is
incurred, if measurable, except expenditures for prepaid expenses, and other long-term obligations, which are
recognized when paid.
E. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The government-wide fmancial 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 grantor have been met.
The governmental funds fmancial statements focus on the measurement of spending, or "fmancial flow," and
the determination of changes in fmancial position rather than upon net income determination. This means
that only current assets and current liabilities are generally included on their balance sheets. The reported
fund balance (net current assets) is considered a measure of"available spendable resources." Governmental
fund operating statements present increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary
of sources and uses of "available spendable resources" during a period.
In applying the susceptible-to-accrual concept to intergovernmental revenues, the legal and contractual
requirements of the numerous individual programs are used as guidance. There are, however, essentially two
types of these revenues. In one, monies must be expended on the specific purpose or project before any
amounts will be paid to the ROE; therefore, revenues are recognized based upon the expenditures recorded.
In the other, monies are virtually unrestricted as to purpose of expenditure and are usually recoverable only
for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at
the time of receipt or earlier if the susceptible to accrual criteria are met.
Under the terms of grant agreements, the Adams and Pike Counties Regional Office of Education #1 funds
certain programs by a combination of specific cost-reimbursement grants and general revenues. Thus, when
program expenses are incurred, there are both restricted and unrestricted funding resources available to
fmance the program. It is the Adams and Pike Counties Regional Office of Education #1 's policy to first
apply restricted funds, then unrestricted. For unrestricted funds, committed funds are used first, then
assigned funds, then unassigned if any.
29
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. FUND ACCOUNTING
The ROE uses funds to maintain its financial records during the year. A fund is defined as a fiscal and
accounting entity with a self-balancing set of accounts. The ROE uses governmental, and fiduciary funds.
GOVERNMENTAL FUNDS
Governmental funds are those through which most governmental functions typically are reported.
Governmental fund reporting focuses on the sources, uses, and balances of current financial resources.
Expendable assets are assigned to the various governmental funds according to the purpose for which they
may or must be used. Current liabilities are assigned to the fund from which they will be paid. The difference
between governmental fund assets and liabilities is reported as fund balance. The ROE reports the following
governmental funds:
General Fund- General fund is the general operating fund of the agency. It is used to account for all
fmancial resources except those required to be accounted for in another fund. The general fund consists of
General State Aid and minor activities such as copier and postage reimbursements.
Special Revenue Funds - Transactions related to resources obtained from specific revenue sources that are
legally restricted to expenditures for specified purposes are accounted for in special revenue funds.
FIDUCIARY FUNDS
Agency Funds - Agency funds consist of funds received from the State Board of Education and distributed
by the Adams and Pike Counties Regional Office of Education #1 to school districts and other organizations.
These funds are custodial in nature and do not involve the measurement of the results of operations.
G. 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:
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: Gifted Education, Student Assistance Program, State Free Lunch and Breakfast, National School
Lunch Program, McKinney Education for Homeless Children, Regional Safe Schools, Technology Prep
Additional, ARRA- General State Aid, SAFE Program, System of Support, and Teachers and
Administrators Mentoring Program. The following funds are restricted by Illinois Statue: Institute, General
Educational Development Fund, Bus Driver Fees and Pike County Film Cooperative.
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: Fingerprinting, School
Directory, School Crisis Assistance Team and Local Fees.
30
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Unassigned Fund Balance- available expendable fmancial resources in a governmental fund that are not
designated for a specific purpose. The unassigned fund balance is made up of the General Operations
account, General State Aid, the Miscellaneous Fund, the Postage Fund and the Copier Fund.
H. 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.
Unrestricted net assets - All other net assets that do not meet the defmition of "restricted" or "investment in
capital assets."
I. CAPITAL ASSETS
Capital assets purchased or acquired with an original cost of $500 or more and estimated useful lives of
greater than one year are reported at historical cost or estimated historical cost. Contributed assets are
reported at fair market value as of the date received. Additions, improvements, and other capital outlays that
significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and
maintenance are expensed as incurred.
Capital assets are depreciated using the straight-line method over the following estimated useful lives:
Equipment - 5 Years
Furniture - 7 Years
J. BUDGET INFORMATION
The ROE acts as the administrative agent for certain grant programs that are accounted for in the General and
Education Funds. Certain programs have separate budgets and are required to report to the Illinois State
Board of Education; however, none of the annual budgets have been legally adopted nor are they required to
be. Certain programs within the General Fund and Special Revenue Fund do not have separate budgets.
Comparisons of budgeted and actual results are presented as supplementary information. Budgetary
comparison schedules have been provided in supplementary schedules for the following funds:
Administrators Academy, Regional Office of Prevention Effectiveness Services, Truants Alternative and
Optional Education, ROEIISC Operations, Student Assistance Program, McKinney Education for Homeless,
Regional Safe Schools, Special Education Grants Infant/Toddler, Workforce Investment Act and ARRA­Education
Jobs Fund.
31
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. CASH AND CASH EQUIVALENTS
The ROE's cash and cash Equivalents are considered to be demand deposits and short-term investments. All
interest income is recognized as revenue in the appropriate fund's Statement of Revenues, Expenditures, and
Changes in Fund Balances.
L. ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
M. DESCRIPTION OF FUNDS
The Adams and Pike Counties Regional Office of Education #1 reports the following major governmental funds:
The General Fund is the operating fund of the Adams and Pike Counties Regional Office of Education # 1. It is
used to account for all fmancial resources in the Region expect those required to be accounted and reported for in
other funds. General Funds include the following:
A. General State Aid - This fund maintains revenues received from the State Board of Education
earned on a per child basis and administers related program expenditures.
B. Miscellaneous Fund - This fund represents accumulated unused grant funds from programs that
no longer exist.
C. Fingerprinting- This fund performs fingerprint-based criminal history record checks.
D. General Operations- This fund accounts for monies received for expenditures in connection with
general administrative activities.
E. School Directory - This fund accounts for school directory expenditures that are made available
to all the districts in the Region.
F. Postage Fund - This fund accounts for all expenditures related to postage.
G. Copier Fund- This fund accounts for all expenditures related to the copier.
H. School Crisis Assistance Team- This program accounts for monies received to assist districts in
the Region when a crisis strikes.
I. Local Fees- This program accounts for monies received for the general operations of workshops
and the administrators academy.
The Education fund is used to account for various grants supporting education enhancement programs and is a
major special revenue fund. The following is a brief description of each program in the Adams and Pike Counties
Regional Office of Education # 1 Education fund:
32
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
J. Administrators Academy- The Adams and Pike Counties Regional Office of Education #1
received a State grant to provide workshops for area teachers.
K. Regional Office of Prevention Effectiveness Services - This is a State grant to provide substance
abuse prevention for youth ages 10-1 7 in Calhoun, Greene, Cass and Morgan Counties.
L. Truants Alternative and Optional Education Program - This was a State grant to provide
counseling and incentives for problem students.
M. Gifted Education - This is a State and local grant to train teachers to work with highly intelligent
student.
N. ROE/ISC Operations- This fund accounts for grant monies received for and in payment of
expenditures for assisting schools in all areas of school improvement.
0. Student Assistance Program- This was a State grant to provide substance abuse prevention for
youth ages 10-17 in Adams and Pike Counties.
P. State Free Lunch and Breakfast- This was a State grant that provides free lunches and breakfasts
to students eligible to receive free meals.
Q. National School Lunch Program- This was a federal grant that provides nutritionally balanced,
low-cost or free lunches to children each school day.
R. McKinney Education for Homeless Children - The Adams and Pike Counties Regional Office of
Education #1 received a State grant to provide for a local homeless liaison to help homeless
students in the Region.
S. Regional Safe Schools- The Adams and Pike Counties Regional Office of Education #1 receives
a grant to assist in making schools safer. The agency is currently contracting with Quincy #172
and Pikeland to maintain the program.
T. ARRA- McKinney Education for Homeless Children- The Adams and Pike Counties Regional
Office of Education #1 received ARRA funds to provide for a local homeless liaison to help
homeless students in the Region.
U. Technology Prep Additional -A program which funds a college sponsored workshop for
technology teacher education.
V. School Breakfast Program - A federal grant that provides cash assistance to states to operate
nonprofit breakfast programs in schools.
W. Special Education Grants Infant/Toddler- The Adams and Pike Counties Regional Office of
Education #1 received a federal grant provided by the Department of Human Services to fund a
program for pre-school children with disabilities.
X. American Recovery and Reinvestment Act (ARRA) - General State Aid - A federal grant used to
support payments of the General State Aid formula to the Adams and Pike Counties Regional
Office of Education #1.
33
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2011
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Y. Workforce Investment Act- This program accounts for grant monies received for expenditures
associated with vocational training services and coordination of activities to the economically
disadvantaged.
Z. Schools Against Fearful Environments (SAFE) - A program that provides security service from
the Sheriffs Department to local school districts.
AA. English Language Learners - The Adams and Pike Counties Regional Office of Education # 1
received a federal grant to help teachers work with non-English-speaking immigrants.
BB. ARRA - Education Jobs Fund-A federal grant used to retain existing employees, to recall or
rehire former employees, and to hire new employees, in order to provide early childhood,
elementary, or secondary educational and related services.
CC. Title II- Teacher Quality- This program accounts 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.
DD. System of Support- The Adams and Pike Counties Regional Office of Education# 1 received a
grant to assist schools and improve annual school planning.
EE. Teachers and Administrators Mentoring Program- A two-year comprehensive
induction/mentoring program based on the State-approved Induction for the 21st Century
Educator model.
The following is a brief description of each non-major special revenue fund:
FF. Institute Fund (Adams and Pike Counties)- The Institute Fund is authorized by Section 3-12 of
The School Code oflllinois (Illinois. Rev. Stat. 1987, ch. 122, para. 3-12). All examination,
registration and renewal fees are paid into the Institute Fund, which is used to defray
administrative expenses incidental to teacher's institutes, workshops, or meetings of a
professional nature. All funds generated remain restricted until expended only on the
aforementioned activities.
GG. General Education Development Fund- This fund was established to administer the high school
level test of General Education Development.
HH. Bus Driver Fees- This fund is financed by bus driver fees, which are used for training purposes.
II. Pike Co. Film Cooperative Fund- This fund is financed by contributions from the six member
schools within Pike County based on an amount equal to $1.25 per enrolled student.
The following is a brief description of the Adams and Pike Counties Regional Office of Education #1 's agency
fund:
JJ. Distributive Fund- The ROE receives funds from the State Board of Education which it
distributes to school districts and other organizations
34
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2011
Note 2- RECLASSIFICATIONS
During the current fiscal year Fingerprinting, the Miscellaneous Fund and General State Aid were reclassified as
part of the General Fund and fund balances in the amounts of$6,077, $813 and $252,370, respectively, were
reclassified. In addition, the ROE/ISC Operations fund balance was reclassified from the General Fund to the
Education Fund in the amount of ($65,206). These reclassifications were as a result of implementing GASB 54.
Note 3- CASH AND CASH EQUIVALENTS
Deposits
Custodial credit risk is the risk that in the event of a bank failure, the Adams and Pike Counties Regional Office
of Education #1 's deposits may not be returned to it. The Adams and Pike Counties Regional Office of
Education #1 does not have a deposit policy for custodial credit risk. At June 30, 2011, the carrying amount of
the ROE deposits was $419,851 (including $593 of fiduciary fund cash and excluding $250,614 of cash
overdraft liability) and the bank balance was $596,336. Of the total bank balances as of June 30, 2011,
$268,082 was secured by federal depository insurance, $327,661 by the Temporary Liquidity Guarantee
Program, and $593 was held in the Illinois Funds Money Market. The Temporary Liquidity Guarantee Program
is a program that guarantee's all deposits in non interest-bearing transaction deposit accounts held in domestic
offices of participating FDIC-insured institutions.
Investments
The Adams and Pike Counties Regional Office of Education #1 does not have a formal investment policy, as its
only investments are internally pooled in the Illinois Funds Money Market Fund. As of June 30, 2011, the
Adams and Pike Counties Regional Office of Education #1 had investments with carrying and fair values of
$593 invested in the Illinois Funds Money Market.
Credit Risk
At June 30, 2011, the Illinois Funds Money Market Fund had a Standards and Poor's AAA rating. The pool is
audited annually by an outside independent auditor, and copies of the report are distributed to participants.
Although not subject to direct regulatory oversight, the fund is administered by the Illinois State Treasurer in
accordance with the provisions of the Illinois Public Funds Investments Act, 30 ILCS 235. All investments are
fully collateralized.
Interest Rate Risk
The Illinois Funds Money Market Fund, created by the Illinois General Assembly, enables custodians of public
funds to have an investment option with a competitive rate of return on fully collateralized investments and
immediate access to the funds. The investment policy of the Illinois Funds Money Market Fund states that
unless authorized specifically by the Treasurer, a minimum of 75% of its investments shall have less than one­year
maturity and no investment shall exceed two years maturity.
Concentration of Credit Risk
Unless specifically authorized by the Treasurer, the Illinois Funds Money Market Fund's investment policy
limits investment categories to not exceed 25% of the portfolio, with the exception of cash equivalents and U.S.
Treasury securities. Further, certificates of deposit cannot exceed 10% of any single financial institution's total
deposits.
35
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 4- OTHER REQUIRED FUND DISCLOSURES
Deficit fund balances at June 30, 2011 are as follows:
Regional Office of Prevention Effectiveness Services
Truants Alternative and Optional Education
ROEIISC Operations
Special Education Grants Infant/Toddler
Workforce Investment Act
Note 5- COMPENSATED ABSENCES
$ 949
$ 5,031
$ 9,537
$ 36,655
$ 4,360
Non-certified and certified employees who work 12 calendar months earn 10 to 20 vacation days for each full
year of service, depending on years of service. At the end of each fiscal year, accumulated and carried forward
vacation time can be up to 10 days. Employee vacation pay is recorded when paid. Accumulated unpaid
vacation benefits were not determined but are not material in relation to the financial statements as a whole in
the opinion of management. Upon termination, employees do not receive accrued vacation pay, and therefore,
no liability is recorded.
Employees receive up to 12 sick days annually and the unused portion is accumulated up to one year and carried
forward. Employee sick leave is recorded when paid. Upon termination, employees do not receive any
accumulated sick leave pay, and therefore, no liability is recorded.
Note 6- DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
Statement of Financial Accounting Standards, No. 107, "Disclosures about Fair Value of Financial
Instruments, " requires certain entities to disclose the estimated fair value of their fmancial instrument assets and
liabilities. The Adams and Pike Counties Regional Office of Education #1 's fmancial instruments consist
principally of cash and cash equivalents, receivables and payables. There are no significant differences between
the carrying value and fair value of any of these fmancial instruments.
Note 7- ON-BEHALF PAYMENTS
Regional Superintendent Salary
Regional Superintendent Fringe Benefits
(includes State paid insurance)
Assistant Regional Superintendent Salary
Assistant Regional Superintendent Fringe Benefits
(includes State paid insurance)
Contributions to TRS and THIS
Total
$ 96,435
14,527
72,327
1,048
32.016
$ 216.353
Salary and benefit data for the Regional Superintendent and Assistant Regional Superintendent was calculated
based on data provided by the Illinois State Board of Education. Pension contribution data for Teachers'
Retirement System participants was obtained from the Teachers' Retirement System of the State of Illinois.
36
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 8- OPERATING LEASES
At June 30, 2011, the ROE was a party to the following lease agreements:
On June 1, 2011, the Children and Family Connections Program of the Regional Office of :Education entered
into a one-year lease for office space with WCU Tower Corporation. The monthly lease payment is $800.
Future minimum lease payments are as follows:
For the fiscal years ending, June 30, 2012
Total future minimum lease payments
Note 9- DISTRIBUTIVE FUND INTEREST
Amount
$ 9,600
$ 9.600
The Adams and Pike Counties Regional Office of Education #1 has agreements with its school districts that it
may keep and use Distributive Fund interest for purposes that benefit all districts in Adams and Pike Counties.
Note 10- OTHER POSTEMPLOYEMENT BENEFITS
The Adams and Pike Counties Regional Office of Education #1 has evaluated its potential other post
employment benefits liability. Former employees who choose to retain their rights to health insurance through
the Adams and Pike Counties Regional Office ofEducation #1 are required to pay 100% of the current premium.
However, no former employees have chosen to stay in the Adams and Pike Counties Regional Office of
Education #1 's health insurance plan. Therefore, there has been zero percent utilization and therefore no
implicit subsidy to calculate in accordance with GASB Statement No. 45, Accounting and Financial Reporting
by Employers for Postemployment Benefits Other Than Pensions. Additionally, the Adams and Pike Counties
Regional Office of Education #1 had no former employees for which the Adams and Pike Counties Regional
Office of Education #1 was providing an explicit subsidy and no current employees with agreements for future
explicit subsidies upon retirement. Therefore, the Adams and Pike Counties Regional Office of Education #1
has not recorded any post employment benefit liability as of June 30, 2011.
Note 11 -PRIOR PERIOD ADJUSTMENTS
A prior period adjustment in the amount of $24,870 was recorded in the Special Education Grants Infant/Toddler
fund to correct the beginning fund balance. A prior period adjustment in the amount of $541 was recorded to the
beginning office equipment and office equipment accumulated depreciation to correct beginning capital asset
account balances.
Note 12- INTERFUND TRANSFERS
During the current fiscal year there were three transfers. The first transfer was from the Safe Program to the
General Fund in the amount of$45,000 for an expenditure paid out of the General Fund. The second transfer
was from the General Fund to English Language Learners in the amount of $603 to cover a previous deficit
balance. The last transfer was from State Free Breakfast and Lunch to School Breakfast program in the amount
of $1,169 to cover a previous deficit balance.
37
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 13- CAPITAL ASSETS
A summary of capital assets follows:
Beginning Ending
Balances Increases Decreases Balances
Governmental activities:
Capital assets being depreciated:
Office furniture $ 23,772 $ $ $ 23,772
Office equipment 315,860 3,688 319,548
Total capital assets
being depreciated 339,632 3,688 343,320
Less accumulated depreciation for:
Office furniture 23,426 116 23,542
Office equipment 263,058 19,687 282,745
Total accumulated depreciation 286,484 19,803 306,287
Governmental activity
capital assets, net $ 53,148 ($ 16,115) $ $ 37,033
Depreciation policies are disclosed in Note 1. Depreciation expense for the fiscal year ended June 30, 2011, was
$19,803.
Note 14- RISK MANAGEMENT- INSURANCE
The ROE purchases commercial general liability, workers' compensation, and property insurance and is covered
for all risks. There have been no significant reductions in coverage during the fiscal year. Settlement amounts
have not exceeded insurance coverage for any of the three prior years.
Note 15- DEFINED BENEFIT PENSION PLAN
Plan Description. The ROE's defmed benefit pension plan for Regular employees provides retirement,
disability benefits, post retirement increases, and death benefits to plan members and beneficiaries. The Adams
and Pike Counties Regional Office of Education #1 's plan is affiliated with the lllinois Municipal Retirement
Fund (IMRF), an agent multiple-employer plan. Benefit provisions are established by statute and may only be
changed by the General Assembly of the State of lllinois. IMRF issues a publicly available fmancial report that
includes financial statements and required supplementary information. That report may be obtained on-line at
www .imrf.org.
Funding Policy. As set by statute, the employer Regular plan members are required to contribute 4.50% of their
annual covered salary. The statute requires employers to contribute the amount necessary, in addition to
member contributions, to fmance the retirement coverage of its employees. The employer contribution rate for
calendar year 2010 was 11.85%. The employer also contributes for disability benefits, death benefits and
supplemental retirement benefits, all of which are pooled at the IMRF leveL Contribution rates for disability and
death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by
statute.
38
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2011
Note 15 - DEFINED BENEFIT PENSION PLAN (Continued)
Annual Pension Cost. The required contribution for calendar year 2010 was $68,389.
Actuarial
Valuation
Date
12-31-10
12-31-09
12-31-08
Three-Year Trend Information for the Regular Plan
Annual Pension
Cost (APC)
68,389
7,092
22,145
Percentage
ofAPC
Contributed
100%
100%
100%
Net Pension
Obligation
$0
$0
$0
The required contribution for 2010 was determined as part ofthe December 31, 2008 actuarial valuation using
the entry age normal actuarial cost method. The actuarial assumptions at December 31, 2008, included (a)
7.50% investment rate of return (net of administrative expenses and direct investment expenses), (b) projected
salary increases of 4.00% per year, attributable to inflation (c) additional projected salary increases ranging from
.4% to 10.0% per year depending on age and service, attributable to seniority/merit, and (d) post-retirement
benefit increases of3% annually. The actuarial value of the employer Regular plan assets was determined using
techniques that spread the effects of short-term volatility in the market value of investments over a five-year
period with a 25% corridor between the actuarial and market value of assets. The employer Regular plan's
unfunded actuarial accrued liability at December 31, 2008 is being amortized as a level percentage of projected
payroll on a open 10 year basis.
Funded Status and Funding Progress. As of December 31, 2010, the most recent actuarial valuation date, the
Regular plan was 84.32 percent funded. The actuarial accrued liability for benefits was $1,124,184 and the
actuarial value of assets was $947,920, resulting in an underfunded actuarial accrued liability (UAAL) of
$176,264. The covered payroll for calendar year 2010 (annual payroll of active employees covered by the plan)
was $577,126 and the ratio of the UAAL to covered payroll was 31 percent.
The schedule of funding progress, presented as RSI following the notes to the financial statements, presents
multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liability for benefits.
Note 16- TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS
The Adams and Pike Counties Regional Office of Education #1 participates in the Teacher's Retirement System
of the State oflllinois (TRS). TRS is a cost-sharing multiple-employer defmed 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 ofTRS, and amendments to the plan can be
made only by legislative action with the Governor's approval. The State of Illinois maintains 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.
39
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 16- TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS (Continued)
The State of Illinois makes contributions directly to TRS on behalf of the Adams and Pike Counties Regional
Office of Education #1 TRS-covered employees.
On-behalf contributions - The State of Illinois makes employer pension contributions on behalf of the Adams
and Pike Counties Regional Office of Education #1. 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 Adams and
Pike Counties Regional Office of Education # 1 recognized revenue and expenditures of $31,996 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 contributions rates as percentages of creditable earnings were 23.3 8 percent ($57, 1 07)
and 17.08 percent ($16,531), respectively.
The Adams and Pike Counties Regional Office of Education # 1 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 $11.
Contributions for the years ending June 30, 2010 and June 30, 2009, were $354 and $527, respectively.
Federal and special trust fund contributions - When TRS members are paid from federal and special trust
funds administered from the Adams and Pike Counties Regional Office of Education #1, there is a statutory
requirement for the Adams and Pike Counties Regional Office of Education #1 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
$11,261 and $7,987, respectively.
Early Retirement Option (ERO)- The Adams and Pike Counties Regional Office of Education #1 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, ROE paid $35,235 to TRS for employer contributions under the ERO
programs. For the years ended June 30, 2010 and June 30, 2009, ROE paid $0 and $0 in employer ERO
contributions, respectively.
40
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2011
Note 16- TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS (Continued)
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 fmal 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.
For the years ended June 30,2011, June 30,2010 and June 30,2009, the Adams and Pike Counties Regional
Office of Education # 1 paid no employer contributions due on salary increases in excess of 6 percent.
If an employer grants sick leave days in excess of 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 fmal 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 years ended June 30, 2011, June 30, 2010 and June 30,2009, the Adams and Pike Counties Regional
Office of Education #1 paid no employer contributions granted for sick leave days in excess of the normal
annual allotment.
TRS fmancial information, an explanation ofTRS 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 Teacher's Retirement System of the State of illinois, P.O. Box
19253, 2815 West Washington Street, Springfield, IL 62794-9253. The most current report is also available on
the TRS website at http://trs.illinois.gov.
Note 17- TEACHERS' HEALTH INSURANCE SECURITY FUND
The Adams and Pike Counties Regional Office of Education #1 participates in the Teacher Health Insurance
Security (THIS) Fund, a cost-sharing, multiple-employer defmed 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 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.
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 Governor's approval. The illinois
Department ofHealthcare and Family Services (HFS) and the illinois Department of Central Management
Services (CMS) administer the plan with the cooperation ofTRS. The director ofHFS 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 ofHealthcare
and Family Services and will not exceed 105 percent of the percentage of salary actually required to be paid in
the previous fiscal year.
41
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
Note 17- TEACHERS' HEALTH INSURANCE SECURITY FUND (Continued)
On-behalf contributions- The State of Illinois makes employer retiree health insurance contributions on behalf
of the Adams and Pike Counties Regional Office of Education # 1. 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 oflllinois contributions were $20, and the Adams and Pike Counties Regional Office of Education
#1 recognized revenue and expenditures of this amount during the year.
State contributions intended to match active member contributions during the years ended June 30, 2010 and
June 30,2009 were 0.84 percent of pay. State contributions on behalf of Adams and Pike Counties Regional
Office ofEducation #1 employees were $513 and $813, respectively.
Employer Contributions to TillS Fund - The Adams and Pike Counties Regional Office of Education # 1
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 Adams and Pike Counties Regional Office of Education #1 paid $35 to the THIS
Fund. For the years ended June 30, 2010 and June 30,2009, the Adams and Pike Counties Regional Office of
Education #1 paid $897 and $1,335 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.
NOTE 18 - SUBSEQUENT EVENT
Management has evaluated subsequent events through December 6, 2011, the date which the financial
statements were available for issue.
42
Required Supplemental Information
(Other than Management's Discussion & Analysis)
Actuarial
Valuation
Date
12/31/2010
12/31/2009
12/31/2008
Actuarial
ADAMSANDPlliBCOUNTffiS
REGIONAL OFFICE OF EDUCATION #1
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
Illinois Municipal Retirement Fund (IMRF)
(UNAUDITED)
Actuarial Unfunded
Value of Liability AAL Funded Covered
Assets Entry Age (UAAL) Ratio Payroll
® @) (B-A) (AlB) (Q
947,920 1,124,184 176,264 84.32% 577,126
822,488 995,689 173,201 82.60% 590,965
793,365 910,330 116,965 87.15% 601,769
UAALasa
Percentage of
Covered Payroll
[(B-A)/C]
30.54%
29.31%
19.44%
On a market value basis, the actuarial value of assets as ofDecember 31,2010 is $1,012,604. On a market
basis, the funded ratio would be 90.07%
43
SUPPLEMENTAL INFORMATION
General State Miscellaneous
Aid Fund
ASSETS
Cash and cash equivalents $ 322,898 $ 87,626
Accounts receivable 222
Total assets $ 322,898 $ 87,848
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $ $
Payroll taxes and liabilities payable
Total liabilities
Fund balances
Assigned
Unassigned 322,898 87,848
Total fund balance 322,898 87,848
Total liabilities and fund balance $ 322,898 $ 87,848
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
COMBINING SCHEDULE OF ACCOUNTS
GENERAL FUND
JUNE 30, 2011
General School Postage
Finge~rinting OQerations Directo!X
$
$
$
$
9,841 $ 41,501 $ 11,569 $
9,841 $ 41,501 $ 11,569 $
914 $ $ $
500
914 500
8,927 11,569
41,001
8,927 41,001 11,569
9,841 $ 41,501 $ 11,569 $
See accompanying Independent Auditor's Report
44
Fund
8,148
44
8,192
8,192
8,192
8,192
School Crisis
Copier Assistance Local Combined
Fund Team Fees Total
$ 9,414 $ 984 $ 49,617 $ 541,598
977 4,620 5,863
$ 10,391 $ 984 $ 54,237 $ 547,461
$ $ $ 3,107 $ 4,021
500
3,107 4,521
984 51,130 72,610
10,391 470,330
10,391 984 51,130 542,940
$ 10,391 $ 984 $ 54,237 $ 547,461
General State
Aid
Revenues
Registration, certification and permit fees $
Local sources
State sources 250,498
State sources - on behalf payments 216,353
Interest income 299
Total revenues 467,150
Expenditures
Salaries and benefits
Salaries and benefits - on behalf payments 216,353
Purchased services 9,352
Travel and entertainment 377
Supplies and materials 17
Institute expenses and workshops
Capital outlay
Communication
Postage and copies 25
Payment to other governmental units 170,498
Other
Total expenditures 396,622
Excess/( deficiency) of revenues over expenditures 70,528
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources
Net changes in fund balances 70,528
Fund balance, Beginning of year 252,370
Fund balance, End of year $ 322,898
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #I
COMBINING SCHEDULE OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GENERAL FUND ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2011
Miscellaneous General School Postage
$
$
Fund Fin&e!J!rintin& OEerations Directo!}:
$ 15,284 $ $ 6,555
116,446 110,103
3 5
116,449 15,285 110,108 6,556
34,332 125,119
35,982 12,435 1,854
1,556 1,090
1,100
620
371
221 2,940
73,811 12,435 126,973 4,401
42,638 2,850 (16,865) 2,155
45,000
!603l
44,397
87,035
813
87,848
2,850 (16,865) 2,155
6,077 57,866 9,414
$ 8,927 $ 41,001 $ 11,569
See accompanying Independent Auditor's Report
45
Fund
$
4,821
4,822
756
756
4,066
4,066
4,126
$ 8,192
School Crisis
Copier Assistance Local Combined
Fund Team Fees Total
$ $ $ 22,495 $ 44,334
8,466 239,836
250,498
216,353
6 317
8,467 22,501 751,338
159,451
216,353
13,627 73,250
11,980 15,003
1,469 2,586
762 1,382
537 908
3,925 4,706
170,498
3 161
3,925 28,375 647,298
4,542 (5,874) 104,040
45,000
!603l
44,397
4,542 (5,874) 148,437
5,849 984 57,004 394,503
$ 10,391 $ 984 $ 51,130 $ 542,940
Regional Office
of Prevention
Administrators Effectiveness
Academ:z: Services
ASSETS
Cash and cash equivalents $ $
Grants receivable 23,200
Total assets $ $ 23,200
LIABILITIES AND FUND BALANCE
Liabilities
Cash overdraft $ $ 24,149
Deferred revenue
Total liabilities 24149
Fund balances
Restricted
Unassigned {949}
Total fund balance (949}
Total1iabilities and fund balance $ $ 23,200
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
COMBINING SCHEDULE OF ACCOUNTS
EDUCATION FUND
JUNE 30,2011
Truants
Alternative Student
and Optional Gifted ROE/ISC Assistance
$
$
$
$
Education Educaton 0Eerations Program
$ 124 $ $
32,979 58,537 5,892
32,979 $ 124 $ 58,537 $ 5,892
32,913 $ $ 56,537 $ 4,642
5,097 11,537
38,010 68,074 4,642
124 1,250
(5,031} (9,537}
(5,03!l 124 (9,537} 1,250
32,979 $ 124 $ 58,537 $ 5,892
See accompanying Independent Auditor's Report
46
ARRA-McKinney
McKinney
State Free National Education for Regional Education for
Lunch and School Lunch Homeless Safe Homeless
Breakfast Pro1£!!m Children Schools Children
$ 538 $ 243 $ 2,539 $ $
83 45,939
$ 621 $ 243 $ 2,539 $ 45,939 $
$ $ $ $ 42,662 $
42,662
621 243 2,539 3,277
621 243 2,539 3,277
$ 621 $ 243 $ 2,539 $ 45,939 $
Special
School Education
Tech. Prep Breakfast Grants
Additional Pro~[am Infantff oddler
ASSETS
Cash and cash equivalents $ 47 $ $
Grants receivable 32,800
Total assets $ 47 $ $ 32,800
LIABILITIES AND FUND BALANCE
Liabilities
Cash overdraft $ $ $ 69,455
Deferred revenue
Total liabilities 69455
Fund balances
Restricted 47
Unassigned {36,655}
Total fund balance 47 {36,655}
Total liabilities and fund balance $ 47 $ $ 32,800
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #I
COMBINING SCHEDULE OF ACCOUNTS
EDUCATION FUND
JUNE 30, 2011
ARRA- English
General State Workforce SAFE Language
$
$
$
$
Aid Investment Act Pro~[am Learners
$ $ 48,324 $
4,360
$ 4,360 $ 48,324 $
$ 4,360 $ $
4,360
8,720
48,324
{4,360}
{4,360} 48 324
$ 4,360 $ 48,324 $
See accompanying Independent Auditor's Report
47
Teachers and
ARRA- Administrators
Education Title II- System of Mentoring Combined
Jobs Fund Teacher Quali~ SUQQOrl Pro~[am Total
$ $ $ 17,928 $ $ 69,745
15,896 71 219,757
$ $ 15,896 $ 17,999 $ $ 289,502
$ $ 15,896 $ $ $ 250,614
20,994
15,896 271,608
17,999 74,426
{56,532}
17,999 17,894
$ $ 15,896 $ 17,999 $ $ 289,502
Regional Office
of Prevention
Administrators Effectiveness
Academ::z: Services
Revenues
Registration, certification and permit fees $ $
Local sources
State sources 20,000 41,311
Federal sources 55,530
Interest income
Total revenues 20,000 96,841
Expenditures
Salaries and benefits 20,269 68,474
Purchased services 5,353
Travel and entertainment 15,376
Supplies and materials 6,649
Institute expenses and workshops
Capital outlay
Communication
Postage and copies
Payment to other governmental units
Other
Total expenditures 20,269 95,852
Excess/( deficiency) of revenues over expenditures (269) 989
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources
Net changes in fund balances (269) 989
Fund balance, Beginning of year 269 (1,938)
Prior period adjustment
Fund balance, End of year $ $ (949)
ADAMSANDPlliECOUNTffiS
REGIONAL OFFICE OF EDUCATION #I
COMBINING SCHEDULE OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
EDUCATION FUND ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2011
Truants
Alternative Student
and Optional Gifted ROEIISC Assistance
$
$
Education Educaton 0Eerations Pro![!!m
$ $ $
78,603 155,645
78,603 155,645
42,915 7,567 49,718
10,417 20,117 39,799
4,427 5,836
390 75 3,943
369 590
304
133 90
58,955 27,759 99,976
19,648 (27,758) 55,669
19,648 (27,758) 55,669
(24,679) 27,882 (65,206)
(5,031) $ 124 $ (9,537) $
See accompanying Independent Auditor's Report
48
72,045
72,045
57,932
5,526
8,294
856
72,608
(563)
(563)
1,813
1,250
ARRA-McKinney
McKinney
State Free National Education for Regional Education for
Lunch and School Lunch Homeless Safe Homeless
Breakfast Pro~ Children Schools Children
$ $ $ $ $
285 115,637
6,176 16,708
285 6,176 16,708 115,637
11,236 3,979 1,051
167 341 449
990
6,175 795
600
322
70,939
167 6,175 14,284 74,918 1,500
118 2,424 40,719 (1,500)
(1,169)
(1,169)
(1,051) 2,424 40,719 (1,500)
1,672 242 115 (37,442) 1,500
$ 621 $ 243 $ 2,539 $ 3,277 $
School
Tech. Prep Breakfast
Additional Pro~m
Revenues
Registration, certification and permit fees $ 5,575 $
Local sources
State sources
Federal sources
Interest income
Total revenues 5,575
Expenditures
Salaries and benefits
Purchased services 9,523
Travel and entertainment
Supplies and materials
Institute expenses and workshops
Capital outlay
Communication
Postage and copies
Payment to other governmental units
Other
Total expenditures 9,523
Excess/( deficiency) of revenues over expenditures (3,948)
Other financing sources (uses)
Transfers in 1,169
Transfers out
Total other financing sources 1,169
Net changes in fund balances (3,948) 1,169
Fund balance, Beginning of year 3,995 (1,169)
Prior period adjustment
Fund balance, End of year $ 47 $
ADAMSANDP~COUNTffiS
REGIONAL OFFICE OF EDUCATION #1
COMBIN!NG SCHEDULE OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
Special
Education
Grants
Infant/Toddler
$
318,960
73,940
392,900
300,518
64,842
22,756
4,057
1,706
16,556
410,435
(17,535)
(17,535)
5,750
!24,870)
$ (36,655)
EDUCATION FUND ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2011
ARRA-General
State Workforce SAFE
Aid Investment Act Pro~m
$ $ $
45,819
11
45,830
4,287
73
4,360
(4,360) 45,830
!45,000)
!45,000)
(4,360) 830
47,494
$ $ (4,360) $ 48,324
See accompanying Independent Auditor's Report
49
English
Language
Learners
$
603
603
603
(603)
$
Teachers and
ARRA- Administrators
Education Title II- System of Mentoring Combined
Jobs Fund Teacher Quali!Y SUEEOrt Pro~m Total
$ $ $ $ $ 5,575
45,819
47,165 849,651
22,808 99,356 36,136 310,654
1 1 14
22,808 99,357 36,137 47,165 1,211,713
8,000 35,169 25,777 636,892
14,808 52,697 624 224,736
1,998 59,677
11,491 34,431
2,306
959
626
87,718
22,808 99,357 28,399 1,047,345
7,738 47,165 164,368
1,772
(46,169)
(44,397)
7,738 47,165 119,971
10,261 (47,164) (77,207)
!24,870)
$ $ $ 17,999 $ $ 17,894
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2011
Administrators Academi:
Variance
Positive
Budget Actual (Negative}
Revenues:
Local sources $ $ $
State sources 20,000 20,000
Federal sources
Interest income
Total revenues 20,000 20,000
Expenditures:
Salaries and benefits 18,644 20,269 (1,625)
Purchased services 1,356 1,356
Travel and entertainment
Supplies and materials
Institute expenses and workshops
Capital outlay
Communication
Postage and copies
Payment to other governmental units
Other
Total expenditures 20,000 20,269 (269}
Net change in fund balances $ (269) $ (269)
Fund balance, Beginning of year 269
Fund balance, End of year $
Re11;ional Office of Prevention Effectiveness Services
Budget Actual
Revenues:
Local sources $ $
State sources 41,206
Federal sources 55,530
Interest income
Total revenues 96,736
Expenditures:
Salaries and benefits 68,188
Purchased services 5,454
Travel and entertainment 17,467
Supplies and materials 5,100
Institute expenses and workshops
Capital outlay
Communication
Postage and copies 100
Payment to other governmental units
Other
Total expenditures
Net change in fund balances
Fund balance, Beginning of year
Fund balance, End of year
427
96,736
$
$
See accompanying Independent Auditor's Report
50
41,311
55,530
96,841
68,474
5,353
15,376
6,649
95,852
989
(1,938)
(949}
Variance
Positive
(Negative}
$
105
105
(286)
101
2,091
(1,549)
100
427
884
$ 989
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
FOR THE YEAR ENDED JUNE 30,2011
Truants Alternative and OJ:!tional Education
Variance
Positive
Budget Actual {Negative)
Revenues:
Local sources $ $ $
State sources 58,473 78,603 20,130
Federal sources
Interest income
Total revenues 58,473 78,603 20,130
Expenditures:
Salaries and benefits 40,689 42,915 (2,226)
Purchased services 16,784 10,417 6,367
Travel and entertainment 4,427 (4,427)
Supplies and materials 1,000 390 610
Institute expenses and workshops
Capital outlay
Communication 369 (369)
Postage and copies 304 (304)
Payment to other governmental units 133 (133)
Other
Total expenditures 58,473 58,955 {482)
Net change in fund balances $ 19,648 $ 19,648
Fund balance, Beginning of year (24,679)
Fund balance, End of year $ (5,031)
ROEIISC OJ:!erations
Variance
Positive
Budget Actual {Negative)
Revenues:
Local sources $ $ $
State sources 101,537 155,645 54,108
Federal sources
Interest income
Total revenues 101,537 155,645 54,108
Expenditures:
Salaries and benefits 46,578 49,718 (3,140)
Purchased services 52,207 39,799 12,408
Travel and entertainment 2,752 5,836 (3,084)
Supplies and materials 3,943 (3,943)
Institute expenses and workshops
Capital outlay
Communication 590 (590)
Postage and copies
Payment to other governmental units 90 (90)
Other
Total expenditures 101,537 99,976 1,561
Net change in fund balances $ 55,669 $ 55,669
Fund balance, Beginning of year (65,206)
Fund balance, End of year $ (9,537)
See accompanying Independent Auditor's Report
51
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2011
Student Assistance Program
Variance
Positive
Budget Actual (Negative)
Revenues:
Local sources $ $ $
State sources 71,123 72,045 922
Federal sources
Interest income
Total revenues 71,123 72,045 922
Expenditures:
Salaries and benefits 57,098 57,932 (834)
Purchased services 6,081 5,526 555
Travel and entertainment 7,045 8,294 (1,249)
Supplies and materials 300 856 (556)
Institute expenses and workshops
Capital outlay 599 599
Communication
Postage and copies
Payment to other governmental units
Other
Total expenditures 71,123 72,608 (1,485}
Net change in fund balances $ (563) $ (563}
Fund balance, Beginning of year 1,813
Fund balance, End of year $ 1,250
McKinne;t Education for Homeless
Budget Actual
Revenues:
Local sources $ $
State sources
Federal sources 16,710
Interest income
Total revenues 16,710
Expenditures:
Salaries and benefits 12,325
Purchased services 2,985
Travel and entertainment
Supplies and materials 1,400
Institute expenses and workshops
Capital outlay
Communication
Postage and copies
Payment to other governmental units
Other
Total expenditures
Net change in fund balances
Fund balance, Beginning of year
Fund balance, End of year
16,710
$
$
See accompanying Independent Auditor's Report
52
16,708
16,708
11,236
341
990
795
600
322
14,284
2,424
115
2,539
Variance
Positive
(Negative}
$
(2)
(2}
1,089
2,644
(990)
605
(600)
(322)
2,426
$ 2,424
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #I
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2011
Regional Safe Schools
Variance
Positive
Budget Actual Q:legative}
Revenues:
Local sources $ $ $
State sources 75,939 115,637 39,698
Federal sources
Interest income
Total revenues 75,939 115,637 39,698
Expenditures:
Salaries and benefits 5,000 3,979 1,021
Purchased services
Travel and entertainment
Supplies and materials
Institute expenses and workshops
Capital outlay
Communication
Postage and copies
Payment to other governmental units 70,939 70,939
Other
Total expenditures 75,939 74,918 1,021
Net change in fund balances $ 40,719 $ 40,719
Fund balance, Beginning of year (37,442)
Fund balance, End of year $ 3,277
SEecial Education Grants Infantffoddler
Budget Actual
Revenues:
Local sources $ $
State sources 357,060
Federal sources 73,940
Interest income
Total revenues 431,000
Expenditures:
Salaries and benefits 315,576
Purchased services 68,091
Travel and entertainment 23,896
Supplies and materials 4,260
Institute expenses and workshops
Capital outlay 1,791
Communication
Postage and copies
Payment to other governmental units 17,386
Other
Total expenditures 431,000
Net change in fund balances $
Fund balance, Beginning of year
Prior period adjustment
Fund balance, End of year $
See accompanying Independent Auditor's Report
53
318,960
73,940
392,900
300,518
64,842
22,756
4,057
1,706
16,556
410,435
(17,535)
5,750
(24,870)
~36,655}
Variance
Positive
(Negative}
$
(38,100)
~38,100}
15,058
3,249
1,140
203
85
830
20,565
$ ~17,535}
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #I
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 20 II
Workforce Investment Act
Budget Actual
Revenues:
Local sources $ 32,000 $ $
State sources
Federal sources
Interest income
Total revenues 32,000
Expenditures:
Salaries and benefits 24,400 4,287
Purchased services 1,500 73
Travel and entertainment 6,100
Supplies and materials
Institute expenses and workshops
Capital outlay
Communication
Postage and copies
Payment to other governmental units
Other
Total expenditures 32,000 4,360
Net change in fund balances $ (4,360) $
Fund balance, Beginning of year
Fund balance, End of year $ {4,360)
ARRA- Education Jobs Fund
Budget Actual
Revenues:
Local sources $ $
State sources
Federal sources 22,808
Interest income
Total revenues 22,808
Expenditures:
Salaries and benefits 8,000
Purchased services 14,808
Travel and entertainment
Supplies and materials
Institute expenses and workshops
Capital outlay
Communication
Postage and copies
Payment to other governmental units
Other
Total expenditures
Net change in fund balances
Fund balance, Beginning of year
Fund balance, End of year
22,808
$
$
See accompanying Independent Auditor's Report
54
22,808
22,808
8,000
14,808
22,808
$
$
Variance
Positive
Q::!egative)
(32,000)
{32,000)
20,113
1,427
6,100
27,640
{4,360)
Variance
Positive
(Negative)
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
FOR THE YEAR ENDED JUNE 30,2011
Title II -Teacher Quali!J:
Budget Actual
Revenues:
Local sources $ $
State sources
Federal sources 97,647
Interest income
Total revenues 97,647
Expenditures:
Salaries and benefits 37,034
Purchased services 51,037
Travel and entertainment
Supplies and materials 9,576
Institute expenses and workshops
Capital outlay
Communication
Postage and copies
Payment to other governmental units
Other
Total expenditures 97,647
Net change in fund balances $
Fund balance, Beginning of year
Fund balance, End of year $
See accompanying Independent Auditor's Report
55
99,356
1
99,357
35,169
52,697
11,491
99,357
$
$
Variance
Positive
(Negative}
1,709
1
1,710
1,865
(1,660)
(1,915)
{1,710}
ASSETS
Cash and cash equivalents $
Total assets $
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable $
Total liabilities
Fund balance
Restricted
Unassigned
Total fund balance
Total liabilities and fund balance $
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2011
Institute Institute General
Funds Funds Education
Adams Pike Development
Coun~ Coun~ Fund
14,841 $ 8,942 $ 13,291 $
14,841 $ 8,942 $ 13,291 $
$ $ 575 $
575
14,841 8,942 12,716
14,841 8,942 12,716
14,841 $ 8,942 $ 13,291 $
See accompanying Independent Auditor's Report
56
Pike County
Bus Film
Driver Cooperative
Fees Fund TOTAL
16,055 $ 5,400 $ 58,529
16,055 $ 5,400 $ 58,529
$ $ 575
575
16,055 5,400 57,954
16,055 5,400 57,954
16,055 $ 5,400 $ 58,529
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
Institute Institute General
Funds Funds Education
Adams Pike Development
County Coun!X: Fund
Revenues:
Registration, certification and permit fees $ 15,284 $ 4,959 $ 21,520
Local sources
State sources
Interest income 3 3
Total revenues 15,287 4,962 21,521
Expenditures:
Salaries and benefits
Purchased services 8,522
Travel and entertainment 396 2,082
Supplies and materials 119
Institute expenses and workshops 8,708 1,942
Capital outlay
Communication 842
Postage and copies 347
Payment to other government units
Other 3,641
Total expenditures 9,104 1,942 15,553
Excess/( deficiency) of revenues over expenditures 6,183 3,020 5,968
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources
Net changes in fund balances
Fund balance, Beginning of year
Fund balance, End of year
6,183 3,020 5,968
8,658 5,922 6,748
$ 14,841 $ 8,942 $ 12,716
See accompanying Independent Auditor's Report
57
$
$
Pike County
Bus Film
Driver Cooperative
Fees Fund TOTAL
1,858 $ $ 43,621
852 852
4 4 15
2,714 4 44,488
1,572 10,094
500 2,978
119
10,650
842
347
3,641
2,072 28,671
642 4 15,817
642 4 15,817
15,413 5,396 42,137
16,055 $ 5,400 $ 57,954
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE YEAR ENDED JUNE 30, 2011
DISTRIBUTIVE FUND
Balance
July I, 2010 Additions Reductions
ASSETS
Cash $ 3 $ 1,462,565 $ 1,461,975
Total assets 3 1,462,565 1,461,975
LIABILITIES
Accumulated interest payable $ 3 $ 590 $
Total liabilities $ 3 $ 590 $
See accompanying Independent Auditor's Report
58
Balance
June 30, 2011
$ 593
593
$ 593
$ 593
ADAMS AND PIKE COUNTIES
REGIONAL OFFICE OF EDUCATION #1
SCHEDULE OF DISBURSEMENTS TO SCHOOL DISTRICT TREASURERS AND OTHER ENTITIES
DISTRIBUTIVE FUND
FOR THE YEAR ENDED JUNE 30, 2011
West Central
Region#240
General State Aid $ $
ARRA- Jobs Fund
National School Lunch Program
National School Breakfast Program
State Free Lunch and Breakfast
Interest transfer
ROEIISC Operations
ROEIISC School Bus Driver Training
Regional Safe Schools
Teachers and Administrators Mentoring Program
Title II - Teachers Quality
Truants Alternative and Optional Education
Vocational Education 717,910
$ 717,910 $
See accompanying Independent Auditor's Report
59
ROE#l Totals
250,498 $ 250,498
22,808 22,808
6,187 6,187
222 222
201 201
8 8
118,645 118,645
852 852
149,698 149,698
47,165 47,165
83,460 83,460
64,321 64,321
717,910
744,065 $ 1,461,975