FY11-ROE54-Fin-Full

              State of Illinois
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
FINANCIAL AUDIT
For the Year Ended June 30, 2011
Performed as Special Assistant Auditors
for the Office of the Auditor General
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
TABLE OF CONTENTS
FOR THE YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS
Page
Officials.. 1
Financial Report Summary 2-3
Financial Statement Report Summary 4
FINANCIAL SECTION
Independent Auditor's Report .
Independent Auditor's Report on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards .
Schedule of Findings and Responses
Section I - Summary of Auditor's Results .
Section II - Findings and Responses .
Corrective Action Plan for Current-Year Audit Findings ..
Summary Schedule of Prior Audit Findings ..
Management's Discussion and Analysis .
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement ofNet Assets .
Statement of Activities .
Fund Financial Statements
Balance Sheet - Governmental Funds .
Reconciliation ofthe Governmental Funds Balance Sheet to
the Statement ofNet Assets - Governmental Funds .
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 - Fiduciary Funds ..
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds ..
Notes to the Financial Statements ..
5-()
7-8
9
lOa-lOd
lla-llc
12
13a-13e
14
15
16
17
18
19
20
21
22-34
SUPPLEMENTARY INFORMATION
Combining Schedule ofAccounts - 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 Schedules
Education Fund Accounts
McKinney-Vento Homeless Children and Youth Program .
ARRA McKinney-Vento Homeless Children and Youth Program ..
Regional Safe Schools Program .
Combining Balance Sheet
Nonmajor Special Revenue Funds ..
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Special Revenue Funds ..
Combining Statement of Fiduciary Net Assets - Agency Funds .
Combining Statement of Changes in Assets and Liabilities -
Agency Funds .
Schedule of Disbursements to School District Treasurers and
Other Entities - Distributive Fund ..
35
36
37
38
39
40
41
42
43
44
45
46-48
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
OFFICIALS
Regional Superintendent
(Current, Acting Effective March 15,2011)
Regional Superintendent
(During the audit period, Retired March 15,2011)
Assistant Regional Superintendent
(Current, Acting Effective January 1,2012)
Assistant Regional Superintendent
(March 16, 2011, through December 31, 2011)
Assistant Regional Superintendent
(During the audit period, Acting Effective July 1,2010,
through March 15,2011)
Office is located at:
200 South College Street, Suite B
Danville,IL 61832
1
Ms. Cheryl S. Reifsteck
Mr. Michael R. Metzen
Mr. Mark Janesky
No Assistant Regional
Superintendent
Ms. Cheryl S. Reifsteck
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
FINANCIAL REPORT SUMMARY
The financial audit testing performed in this audit was conducted in accordance with Government
Auditing Standards and in accordance with the Illinois State Auditing Act.
AUDITOR'S REPORTS
The auditor's reports do not contain scope limitations, disclaimers, or other significant non-standard
language.
SUMMARY OF AUDIT FINDINGS
Number of
Audit findings
Repeated audit findings
Prior recommendations implemented
or not repeated
This Audit
3
2
o
Prior Audit
2
1
o
Details of audit findings are presented in a separate report section.
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 Comments to the Regional Superintendent.
In prior years, these issues may have been included as immaterial findings in the auditors' reports.
SUMMARY OF FINDINGS AND RESPONSES
Item No. ~ Description Finding Type
FINDINGS (GOVERNMENT AUDITING STANDARDS)
11-01
11-02
11-03
lOa
lOb
lOd
Inadequate Internal Control Procedures
Controls Over Financial Statement Preparation
Inadequate Recording of American Recovery and
Reinvestment Act Awards
Material weakness
Material weakness
Material weakness
PRIOR FINDINGS NOT REPEATED (GOVERNMENT AUDITING STANDARDS)
None
2
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
EXIT CONFERENCE
The findings and recommendations appearing in this report were discussed with Agency personnel at an
informal exit conference on August 5,2011. Attending were Cheryl Reifsteck, Regional Superintendent;
Shari Hutson, Bookkeeper; and Matt Price and Karen Bojda, CPA, Kemper CPA Group LLP. Responses
to the recommendations were provided by Cheryl Reifsteck, Regional Superintendent.
3
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
FINANCIAL STATEMENT REPORT SUMMARY
The audit of the accompanying basic fmancial statements of the Vermilion County Regional Office of
Education #54 was performed by Kemper CPA Group LLP, Certified Public Accountants and
Consultants.
Based on their audit, the auditors expressed an unqualified opinion on the Regional Office of Education
#54's basic financial statements.
4
~~KEMPER
~~CPA GROUPLLP
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT
Honorable William G. Holland
Auditor General
State of Illinois
As Special Assistant Auditors for the Auditor General, we have audited the accompanying financial
statements of the governmental activities, each major fund, and the aggregate remaining fund
information of the Regional Office of Education #54 as of and for the year ended June 30, 2011, which
collectively comprise the Regional Office of Education #54's basic financial statements as listed in the
table of contents. These financial statements are the responsibility of the Regional Office of Education
#54's management. Our responsibility is to express opinions on these fmancial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinions.
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 Regional Office of Education #54, as of June 30, 2011, and the
respective changes in fmancial position thereof for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
The Vermilion County Regional Office of Education #54 adopted GASB Statement No. 54, Fund
Balance Reporting and Governmental Fund Type Definitions during the year ended June 30, 2011. The
statement changed the classifications of governmental fund balances and clarified the definitions of
existing fund types. The adoption of this statement had no effect on any of Vermilion County Regional
Office of Education #54's governmental funds' assets or liabilities nor was there any effect to the total
amount of any of Vermilion County Regional Office of Education #54's governmental fund balances as
of and for the year ended June 30, 2011.
1413 Wabash Avenue.~attoon.IL 61938
Phone: (217) 234-8801 Fax: (217) 234-8803 kempercpa.com
In accordance with Government Auditing Standards, we have also issued a report dated January 13,
2012, on our consideration of the Regional Office of Education #54'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 ofour audit.
The Management's Discussion and Analysis on pages 13a through 13e is not a required part of the basic
financial statements but is supplementary information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming OpInIOnS on the financial statements that
collectively comprise the Regional Office of Education #54's basic fmancial 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 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.
Certified Public Accountants
and Consultants
Mattoon, Illinois
January 13,2012
6
~_KEMPER
~~CPA GROUPLLP
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING
STANDARDS
Honorable William G. Holland
Auditor General
State ofIllinois
As Special Assistant Auditors for the Auditor General, we have audited the financial statements of the
governmental activities, each major fund, and the aggregate remaining fund information of the Regional
Office of Education #54 as of and for the year ended June 30, 2011, which collectively comprise the
Regional Office of Education #54's basic financial statements and have issued our report thereon dated
January 13, 2012. We conducted our audit in accordance with auditing standards generally accepted in
the United States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General ofthe United States.
Internal Control over Financial Reporting
Management of the Regional Office of Education #54 is responsible for establishing and maintaining
effective internal control over financial reporting. In planning and performing our audit, we considered
the Regional Office of Education #54's internal control over financial reporting as a basis for designing
our auditing procedures for the purpose of expressing our opinions on the financial statements but not
for the purpose of expressing an opinion on the effectiveness of the Regional Office of Education #54's
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of Regional Office of Education #54's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in
the preceding paragraph and was not designed to identify all deficiencies in the internal control over
financial reporting that might be significant deficiencies or material weaknesses, and therefore, there can
be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been
identified. However, as described in the accompanying Schedule of Findings and Responses, we
identified certain deficiencies in internal control over financial reporting that we consider to be material
weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected on a
timely basis. We consider the deficiencies described in findings 11-01, 11-02, and 11-03 in the
accompanying Schedule of Findings and Responses to be material weaknesses.
1413 Wabash Avenue_'Mattoon, IL 61938
Phone: (217)234-8801 Fax: (217)234-8803 kempercpa.com
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Regional Office of Education #54'8
fmancial statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do
not express such an opinion. The results of our tests disclosed an instance of noncompliance or other
matter that is required to be reported under Government Auditing Standards and which is described in
the accompanying Schedule of Findings and Responses as item 11-03.
We also noted a certain matter which we have reported to management of the Regional Office of
Education #54 in a separate letter dated January 13,2012.
The Regional Office of Education #54's responses to the findings identified in our audit are described in
the accompanying Schedule of Findings and Responses. We did not audit the Regional Office of
Education #54's responses, and accordingly, we express no opinion on them.
This report is intended solely for the information and use of the Auditor General, the General Assembly,
the Legislative Audit Commission, the Governor, agency management, others within the entity, and the
Illinois State Board of Education and is not intended to be and should not be used by anyone other than
these specified parties.
Certified Public Accountants
and Consultants
Mattoon, Illinois
January 13,2012
8
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED JUNE 30, 2011
SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type ofauditor's report issued:
Internal control over financial reporting:
• Material weakness(es) identified?
• Significant deficiency(ies) identified that are not considered to
be material weakness(es)?
• Noncompliance material to financial statements noted?
Federal Awards
Internal control over major programs:
Unqualified
Yes
No
Yes
• Material weakness(es) identified? N/A
• Significant deficiency(ies) identified that are not considered to
be material weakness(es)? N/A
Type of auditor's report issued on compliance for major programs: N/A
Any audit findings disclosed that are required to be reported in accordance
with OMB Circular A-B3, Section .510(a)? N/A
Identification ofmajor programs:
CFDA Number(s)
N/A
Name of Federal Program or Cluster
Dollar threshold used to distinguish between Type A and Type B programs: N/A
Auditee qualified as a low-risk auditee? N/A
9
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED JUNE 30, 2011
SECTION II - FINANCIAL STATEMENT FINDINGS
Finding No. 11-01 - Inadequate Internal Control Procedures (Partial Repeat from Finding 10-01
and 09-01)
Criteria/Specific Requirement:
The Regional Superintendent of Schools is responsible for establishing and maintaining an internal
control system over receipts, disbursements, and reporting to prevent errors and fraud.
Condition:
During the audit we noted the following weaknesses in the Regional Office of Education's system of
internal controls over financial reporting:
A. Due to inadequate segregation of duties, one person is responsible for receiving money,
depositing funds, recording receipts in the general ledger, receiving unopened invoices and
vendor statements, preparing disbursement checks, entering disbursements in the general
ledger, and receiving the unopened bank statements.
B. Prior-year audit adjustments were not posted to the general ledger; therefore, some current­year
opening fund balances were not correct.
Effect:
Lack of effective internal control procedures could result in unintentional or intentional errors or
misappropriation of assets that could be material to the fmancial statements and that may not be
detected in a timely manner by employees in the normal course of performing their assigned duties.
Cause:
The Regional Office has not established sufficient internal control procedures.
Auditor's Recommendation:
A. Although the Regional Office has improved segregation of duties for bank reconciliations, the
Regional Office should segregate duties so that no one individual has access to all steps of an
accounting process.
B. After closing the prior year's financial statements, the opening fund balances for the current
year should be compared to the ending balances on the prior year's financial statements. Any
discrepancies should be reviewed and resolved.
Management's Response:
The Regional Superintendent agrees with this finding.
lOa
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED JUNE 30, 2011
SECTION II - FINANCIAL STATEMENT FINDINGS (Continued)
Finding No. 11~02 - Controls Over Financial Statement Preparation (Repeat from Finding 10~02)
Criteria/Specific Requirement:
The Regional Office of Education #54 is required to maintain a system of controls over the
preparation of financial statements in accordance with generally accepted accounting principles
(GAAP). The Regional Office's internal controls over GAAP financial reporting should include
adequately trained personnel with the knowledge and expertise to prepare and/or thoroughly review
GAAP-based financial statements to ensure that they are free of material misstatements and include
all disclosures as required by the Governmental Accounting Standards Board (GASB).
Condition:
The Regional Office of Education #54 does not have sufficient internal controls over the financial
reporting process. The Regional Office maintains their 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 the GAAP-based financial
statements for management or employees in the normal course of performing their assigned
functions to prevent or detect fmancial 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:
• The Regional Office's financial information required numerous adjusting entries to present
the financial statements in accordance with generally accepted accounting principles.
• The Regional Office did not have adequate controls over the maintenance of complete records
of accounts receivable, accounts payable, or deferred revenues. While the Regional Office
did maintain records to indicate the balances of accounts payable, accounts receivable, and
deferred revenues, no entries were provided to reconcile the Regional Office of Education
#54's grant activity, such as posting grant receivables and deferred revenues.
Effect:
Management or employees in the normal course of performing their assigned functions may not
prevent or detect financial statement misstatements and disclosure omissions in a timely manner.
Cause:
According to Regional Office officials, they did not have adequate funding to hire and/or train their
accounting personnel in order to comply with these requirements.
lOb
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED JUNE 30, 2011
SECTION n - FINANCIAL STATEMENT FINDINGS (Continued)
Finding No. 11-02 - Controls Over Financial Statement Preparation (Repeat from Finding 10-02)
Auditor's Recommendation:
As part of its internal control over the preparation of its financial statements, including disclosures,
the Regional Office of Education #54 should implement a comprehensive preparation and/or
review procedure to ensure that the financial statements, including disclosures, are complete and
accurate. Such procedures should be perfonned by a properly trained individual(s) possessing a
thorough understanding of applicable generally accepted accounting principles, GASB
pronouncements, and knowledge of the Regional Office of Education's activities and operations.
Management's Response:
The Regional Office of Education #54 accepts the degree of risk associated with this condition
because the additional expense to seek outside accounting expertise to prepare and/or review
financial statements would take away from the funds available to provide educational services for
the schools in the region. The Regional Office of Education #54 will review, approve, and accept
responsibility for the audit adjustments, financial statements and related notes provided by the
auditors.
The Regional Office of Education #54 will continue to work with the other Regional Offices of
Education to detennine the most effective method of ensuring that our employees possess the
knowledge required to compile the necessary GAAP-based financial statements.
lOc
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED JUNE 30, 2011
SECTION II - FINANCIAL STATEMENT FINDINGS (Concluded)
Finding No. 11-03 - Inadequate Recording of American Recovery and Reinvestment Act Awards
Criteria/Specific Requirement:
Federal regulations require that American Recovery and Reinvestment Act (ARRA) award recipients
maintain records that adequately identify the source and application ofRecovery Act funds.
Condition:
The Regional Office's receipts and expenditures for the ARRA and non-ARRA Education for
Homeless Children and Youth Grants were not accounted for in a way that segregated the ARRA
from the non-ARRA award activity as required.
Effect:
By not segregating ARRA and non-ARRA transactions, the actual ARRA receipts and expenditures
are not easily identifiable and available to review. Additionally, there is a possibility that
expenditures could be reported inaccurately to granting agencies.
Cause:
The Regional Office did not create separate ARRA and non-ARRA accounts to record the Education
for Homeless Children and Youth grant activity.
Auditor's Recommendation:
We recommend that the Regional Office create a separate set of accounts to record the ARRA
Homeless Education grant activity separately from the non-ARRA Homeless Education grant.
Management's Response:
The Regional Superintendent agrees with this finding.
lOd
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
CORRECTIVE ACTION PLAN FOR CURRENT-YEAR AUDIT FINDINGS
JUNE 30,2011
CORRECTIVE ACTION PLAN
Finding No. 11~01 - Inadequate Internal Control Procedures (Partial Repeat from Finding 10-01
and 09-01)
Condition:
During the audit we noted the following weaknesses in the Regional Office of Education's system of
internal controls over fmancial reporting:
A. Due to inadequate segregation of duties, one person is responsible for receiving money,
depositing funds, recording receipts in the general ledger, receiving unopened invoices and
vendor statements, preparing disbursement checks, entering disbursements in the general
ledger, and receiving the unopened bank statements.
B. Prior-year audit adjustments were not posted to the general ledger; therefore, some current­year
opening fund balances were not correct.
Plan:
A. The Regional Office will segregate duties so that no one individual has access to all steps of
an accounting process. The Regional Office will employ one more full-time employee (from
part-time employee) to insure segregation of duties. The Regional Office has revised office
procedures to improve segregation of duties.
B. After closing the prior year's financial statements, the opening fund balances for the current
year will be compared to the ending balances on the prior year's financial statements. Any
discrepancies will be reviewed and resolved.
Anticipated Date of Completion:
June 30, 2012
Name of Contact Person:
Ms. Cheryl Reifsteck, Regional Superintendent
lla
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
CORRECTIVE ACTION PLAN FOR CURRENT-YEAR AUDIT FINDINGS
JUNE 30, 2011
Finding No. 11-02 - Controls Over Financial Statement Preparation (Repeat from Finding 10-02)
Condition:
The Regional Office of Education #54 does not have sufficient internal controls over the financial
reporting process. The Regional Office maintains their 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 the 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:
• The Regional Office's financial information required numerous adjusting entries to present
the financial statements in accordance with generally accepted accounting principles.
• The Regional Office did not have adequate controls over the maintenance of complete
records of accounts receivable, accounts payable, or deferred revenues. While the Regional
Office did maintain records to indicate the balances of accounts payable, accounts receivable,
and deferred revenues, no entries were provided to reconcile the Regional Office of
Education #54's grant activity, such as posting grant receivables and deferred revenues.
Plan:
The Regional Office of Education #54 accepts the degree of risk associated with this condition
because the additional expense to seek outside accounting expertise to prepare and/or review
financial statements would take away from the funds available to provide educational services for
the schools in the region. The Regional Office of Education #54 will review, approve, and accept
responsibility for the audit adjustments, financial statements and related notes provided by the
auditors.
The Regional Office of Education #54 will continue to work with the other Regional Offices of
Education to determine the most effective method of ensuring that our employees possess the
knowledge required to compile the necessary GAAP-based financial statements.
Anticipated Date of Completion:
Not Applicable
Name of Contact Person:
Ms. Cheryl Reifsteck, Regional Superintendent
lIb
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
CORRECTIVE ACTION PLAN FOR CURRENT-YEAR AUDIT FINDINGS
JUNE 30, 2011
Finding No. 11-03 - Inadequate Recording of American Recovery and Reinvestment Act Awards
Condition:
The Regional Office's receipts and expenditures for the ARRA and non-ARRA Education for
Homeless Children and Youth Grants were not accounted for in a way that segregated the ARRA
from the non-ARRA award activity as required.
Plan:
The Regional Office will create a separate set of accounts to record the ARRA Homeless Education
grant activity separately from the non-ARRA Homeless Education grant.
Anticipated Date of Completion:
July 1,2011
Name of Contact Person:
Ms. Cheryl Reifsteck, Regional Superintendent
11c
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
JUNE 30, 2011
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Finding Number
10-01
10-02
Condition
Inadequate Internal Control Procedures
Controls Over Financial Statement Preparation
12
Current Status
Partial Repeat
Repeat
MANAGEMENT'S DISCUSSION AND ANALYSIS
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
I. USING THIS REPORT
These financial statements and accompanying statement are presented in a format consistent with the
presentation requirements of GASB Statement No. 34, Basic Financial Statements and Management's
Discussion and Analysis for State and Local Governments.
II. REPORT COMPONENTS
These financial statements and their accompanying information consist of several parts as follows:
1. Independent Auditor's Report
2. Basic financial statements including governmental-wide and fund financial statements
3. Supplemental information including the Management's Discussion and Analysis
III. BASIS OF ACCOUNTING
The accounting for the Regional Office of Education #54 (Regional Office) is organized on the basis of
fund accounting.
Revenues and expenses on the government-wide financial statements are reported using the accrual
basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of when cash is received or paid. Grants and similar items are recognized as revenue
as soon as all eligibility requirements imposed by the provider have been met.
Revenues and expenditures on the governmental fund financial statements are reported using the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting.
The Regional Office has not adopted a formal budgetary accounting system for its various funds. There
is a formal budget and accounting for expenses relating to the operation and maintenance of the
Regional Office operations as they relate to the funding and control of the Vermilion County General
Fund and the County Board.
Capital assets for the Regional Office have been capitalized at a $1,000 entry level. In an effort to
standardize the accounting for capital assets the Regional Office had adopted this level. Capital assets
are capitalized and reported by Vermilion County for office operations and maintenance of the Regional
Office at a level of $500; thus, the reporting by the County may differ from the Regional Office. At June
30, 2011, the Regional Office of Education #54 had an investment in capital assets of $6,077 which is
the original cost of the assets less the accumulated depreciation.
13a
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
IV. OTHER SIGNIFICANT POLICIES
State regulations have strict requirements regarding the deposits and usage of funds that are deposited
with the Regional Office. All funds have been deposited and expended in compliance with those
regulations.
Because the Regional Office operates mainly on a "pass-through" basis, there is no control over the
amount of funds that come through the Regional Office to be disbursed. Further, there is no significant
information that could be shown that would reflect changes in the funding that are under the control of
the Regional Office.
All expenditures that are made by the Regional Office are made in compliance with the purposes as set
forth by the funding bodies.
All expenditures made through the General Fund of Vermilion County are examined prior to disbursal
by the Vermilion County Auditor and approved according to their policies for such expenses. All other
records of the Regional Office are open to examination by the Vermilion County Auditor, to the extent
allowed by laws regulating such.
V. FINANCIAL HIGHLIGHTS
This report consists of a series of financial statements and notes to those statements. The statements are
organized to assist the reader in understanding the Vermilion County Regional Office of Education #54
as an entire operating entity. The statements go further to provide a detailed look at specific frnancial
activities. The governmental-wide statements, which are the Statement of Net Assets and the Statement
of Activities, provide information about the activities of the whole Regional Office.
The fund financial statements provide the next level of activity. For governmental-type funds, the
statements tell how services were financed on a short-term basis, as well as what balances remain for
future spending. The major funds of the Regional Office are also looked at on an individual basis, with
nonmajor funds being combined and presented as a total in one column. In the Regional Office, the
General Fund is by far the most significant.
The financial statements also reflect two types of funds. The governmental funds used by the Regional
Office are actually special revenue funds used to account for revenue from specific sources. The
Regional Office operates several of these special revenue funds under the blanket of the governmental
funds. Most of the Regional Office's programs and services are accounted for in the governmental
funds. These include institute services, direct services, education services, and various other services and
activities.
Fiduciary funds are accounts that are used solely to account for assets held by the Regional Office as a
trustee or an agent for other governmental agencies. Overall, the fiduciary fund is custodial in nature and
thus does not involve measurement of results of its operation.
13b
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
V. FINANCIAL IDGHLIGHTS (Continued)
During fiscal year 2011 the Regional Office of Education #54 implemented Governmental Accounting
Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions, which required certain programs and funds to be reclassified and the restatement of
beginning fund balances as detailed in Note 1 to the financial statements. Because of these
reclassifications, the fund analysis is not comparable between fiscal year 2010 and fiscal year 2011.
The following table provides a summary of the Regional Office's net assets for the fiscal years June 30,
2011 and 2010.
CONDENSED STATEMENT OF NET ASSETS
GOVERNMENTAL ACTIVITIES
Increase /
2011 2010 (Decrease)
CURRENT ASSETS
Cash and cash equivalents $203,668 $184,243 $ 19,425
Due from other governments - Local 90 7,130 (7,040)
Due from other governments- State 46,085 46,085
Total CmTent Assets 249,843 191,373 58,470
NONCURRENT ASSETS
Capital assets, net ofdepreciation 6,077 7,891 (1,814)
Total Assets 255,920 199,264 56,656
CURRENT LIABll.lTIES
Accounts Payable 68,599 59,388 9,211
Due to other governments - Local 46,085 222 45,863
Deferred revenue 17 1,083 (1,066)
Total Liabilities 114,701 60,693 54,008
NET ASSETS
Invested in capital assets 6,077 7,891 (1,814)
Unrestricted 30,981 80,184 (49,203)
Restricted for educational purposes 104,161 50,496 53,665
Total Net Assets $141,219 $138,571 $ 2,648
13c
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
V. FINANCIAL HIGHLIGHTS (Continued)
The following table shows the changes in net assets for the fiscal years ended June 30, 2011 and 2010.
CONDENSED STATEMENT OF ACTIVITIES
GOVERNMENTAL ACTIVITIES
Increase/
2011 2010 (Decrease)
REVENUES
Program Revenues
Operating grants and contributions $310,280 $307,090 $ 3,190
General Revenues
Local sources 333,413 307,444 25,969
On-behalfpayments 294,006 330,858 (36,852)
Interest 1,248 1,382 (134)
Total Revenue 938,947 946,774 (7,827)
EXPENSES
Instructional services
Salaries and benefits 1,750 (1,750)
Purchased services 329,268 310,258 19,010
Supplies and materials 14,234 16,160 (1,926)
Other obj ects 250 2,525 (2,275)
Payments to other governments 296,727 283,080 13,647
Depreciation 1,814 1,653 161
Administrative
On-behalfpayments 294,006 330,858 (36,852)
Total Expenses 936,299 946,284 (9,985)
Change in Net Assets 2,648 490 2,158
Net Assets - Beginning 138,571 138,081 490
Net Assets - Ending $141,219 $138,571 $ 2,648
13d
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2011
V. FINANCIAL HIGHLIGHTS (Concluded)
Key financial highlights for fiscal year ended June 30, 2011, are as follows:
Net assets of governmental activities increased $2,648, representing a 2% increase from fiscal year
2010. Overall revenues have decreased 1%, and expenditures decreased 1%. The decrease in revenue is
due to less money from state and local sources, which in tum caused the decrease in the amount of
expenditures.
The major expenditures for the government funds are purchased services, representing 35% of total
expenditures, and payments to other governments, or flow-through expenditures, representing 32%.
The major funding sources for the government funds are local sources, on-behalf payments, and state
and federal revenues, representing 36%, 31%, and 33%, respectively.
In conclusion, the Regional Office continues to rely on state and federal funds for delivering the
majority of its services. The flow-through accounts provide revenues to provide services to schools,
teachers and administration that they might not otherwise have access to at the local level. The Regional
Office needs to continue to pursue cooperative efforts with other LEA's to maximize the programmatic
impact with funds available. While this fiscal report is indicative of the current trend, the overall
operation of the Regional Office is not greatly affected by decreases at this time. However, the financial
crisis and slow payment process of the State of Illinois could have a significant impact on the Regional
Office in the future.
This financial report is designed to provide the users with a general overview of the fmance on the
Vermilion County Regional Office of Education #54. It further serves to demonstrate the Regional
Office's accountability for the money it receives and expends. If you have questions about this or need
additional financial information, contact the Vermilion County Regional Office of Education #54 at 200
S. College Street, Suite B, Danville, IL 61832.
Be
BASIC FINANCIAL STATEMENTS
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
STATEMENT OF NET ASSETS
JUNE 30, 2011
Governmental
Activities
Assets
Current assets:
Cash and cash equivalents
Due from other governments - Local
Due from other governments - State
Total current assets
Noncurrent assets:
Capital assets, net of depreciation
Total assets
Liabilities
Current liabilities:
Accounts payable
Due to other governments - Local
Deferred revenue
Total liabilities
Net assets
Invested in capital assets
Restricted for educational purposes
Unrestricted
Total net assets
$ 203,668
90
46,085
249,843
6,077
255,920
68,599
46,085
17
114,701
6,077
104,161
30,981
$ 141,219
The notes to the financial statements are an integral part ofthis statement.
14
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30,2011
Program Revenues
Operating Grants
FUNCTIONS/PROGRAMS and Contributions
Governmental activities:
Instructional services:
Purchased services
Supplies and materials
Other objects
Payments to other governments
Depreciation
Administrative:
On-behalf payments - Local
On-behalf payments - State
Total governmental activities
$
$
Expenses
329,268 $
14,234
250
296,727
1,814
73,994
220,012
936,299 $
83,494
5,689
221,097
310,280
Net (Expense)
Revenue and
Changes in
Net Assets
Governmental
Activities
$ (245,774)
(8,545)
(250)
(75,630)
(1,814)
(73,994)
(220,012)
(626,019)
General revenues
Local sources
On-behalf payments - Local
On-behalf payments - State
Investment income
Total general revenues
Change in net assets
Net assets - beginning
Net assets - ending
333,413
73,994
220,012
1,248
628,667
2,648
138,571
$ 141,219
The notes to the financial statements are an integral part ofthis statement.
15
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
General
Education Other Total
General Institute Development Education Nonmajor Governmental
Fund Fund Fund Fund Funds Funds
Assets
Cash and cash equivalents $ 99,597 $ 69,679 $ 25,276 $ $ 9,116 $ 203,668
Due from other
governments - Local 90 90
Due from other
governments - State 46,085 46,085
Total assets $ 99,597 $ 69,679 $ 25,366 $ 46,085 $ 9,116 $ 249,843
Liabilities
Accounts payable $ 68,599 $ $ $ $ $ 68,599
Due to other
governments - Local 46,085 46,085
Deferred revenue 17 17
Total liabilities 68,616 46,085 114,701
Fund balances
Restricted 69,679 25,366 9,116 104,161
Unassigned 30,981 30,981
Total fund balances 30,981 69,679 25,366 9,116 135,142
Total liabilities and
fund balances $ 99,597 $ 69,679 $ 25,366 $ 46,085 $ 9,116 $ 249,843
The notes to the financial statements are an integral part ofthis statement.
16
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL FUNDS
JUNE 30, 2011
Total fund balances - governmental funds
Amounts reported for governmental activities in the Statement ofNet
Assets are different because:
Capital assets used in governmental activities are not
financial resources and therefore are not reported in the funds.
Net assets of governmental activities
$ 135,142
6,077
$ 141,219
The notes to the financial statements are an integral part ofthis statement.
17
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
General
Education Other Total
General Institute Development Education Nonmajor Governmental
Fund Fund Fund Fund Funds Funds
Revenues
Local sources $ 291,607 $ 26,640 $ 13,780 $ $ 1,386 $ 333,413
State sources 100,040 156,468 840 257,348
Federal sources 52,932 52,932
On-behalf payments - Local 73,994 73,994
On-behalf payments - State 220,012 220,012
Total revenues 685,653 26,640 13,780 209,400 2,226 937,699
Expenditures
Instructional services
Purchased services 304,863 7,208 7,214 8,340 1,643 329,268
Supplies and materials 5,106 324 4,281 4,373 150 14,234
Other objects 250 250
Payments to other governments 100,040 196,687 296,727
On-behalf payments - Local 73,994 73,994
On-behalf payments - State 220,012 220,012
Total expenditures 704,265 7.532 11,495 209,400 1,793 934,485
Excess (Deficiency) ofrevenues
over expenditures (18,612) 19,108 2,285 433 3,214
Other financing sources
Investment income 1,165 75 2 6 1,248
Total other fuancing sources 1,165 75 2 6 1,248
Net change in fund balances (17,447) 19,183 2,287 439 4,462
Fund balances - beginning ofyear 48,428 50,496 23,079 8,677 130,680
Fund balances - end ofyear $ 30,981 $ 69,679 $ 25,366 $ $ 9,116 $ 135,142
The notes to the financial statements are an integral part of this statement.
18
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
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:
Governmental funds report capital outlays as expenditures. However,
in the Statement of Activities the cost ofthose assets is allocated over
their estimated useful lives and reported as depreciation expense.
Depreciation expense
Change in net assets of governmental activities
$ 4,462
(1,814)
$ 2,648
The notes to the financial statements are an integral part ofthis statement.
19
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2011
Private-Purpose
Trust Fund
DAAPP Agency Funds
Assets
Cash and cash equivalents $ 11,895 $ 10,231
Due from other governments 7,172,700
Total assets 11,895 $ 7,182,931
Liabilities
Due to other governments $ 7,182,931
Total liabilities $ 7,182,931
Net assets
Held in trust $ 11,895
The notes to the financial statements are an integral part of this statement.
20
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
Private-Purpose
Trust Fund
DAAPP
Additions
Local sources $ 29,094
Interest 2
Total additions 29,096
Deductions
Salaries 17,500
Purchased services 12,657
Supplies and materials 2,474
Total deductions 32,631
Change in net assets (3,535)
Net assets - beginning ofyear 15,430
Net assets - end of year $ 11,895
The notes to the financial statements are an integral part ofthis statement.
21
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Regional Office of Education #54 was fonned under the provisions of the State of Illinois, Illinois
State Board ofEducation.
In 2011, the Regional Office of Education #54 implemented Governmental Accounting Standards Board
(GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, GASB
Statement No. 59, Financial Instruments Omnibus, and GASB Statement No. 62, Codification of
Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA
Pronouncements. The Regional Office of Education #54 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. Although the Regional Office of Education #54's implementation of GASB Statement No.
54 caused some funds to be reclassified, this reclassification had no effect on the reported fund balances
in the current year.
A. DATE OF MANAGEMENT'S REVIEW
Management has evaluated subsequent events through January 13, 2012, the date when the financial
statements were available to be issued.
B. FINANCIAL REPORTING ENTITY
The Regional Superintendent is charged with responsibility for township fund lands; registration of the
names of applicants for scholarships to State-controlled universities; examinations and related duties;
visitation of public schools; direction of teachers and school officers; serving as the official advisor and
assistant of school officers and teachers; conducting teachers institutes as well as aiding and encouraging
the fonnation of other teachers' meetings and assisting in their management; evaluating the schools in
the region; examining evidence ofindebtedness; filing and keeping the returns of elections required to be
returned to the Regional Superintendent's office; and filing and keeping 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 Regional Office of Education #54' s districts; providing township treasurers with a list of district
treasurers; inspecting and approving building plans which comply with State law; perfonning and
reporting on annual building inspections; investigating bus drivers for valid bus driver pennits and
taking related action as may be required; maintaining a list of unfilled teaching positions; and carrying
out other related duties required or pennitted 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 or her region are properly bonded.
22
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. FINANCIAL REPORTING ENTITY (Concluded)
The Regional Superintendent is 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 Regional Office of Education #54 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 the region. Such activities are reported as a single special
revenue fund (Education Fund).
C. SCOPE OF THE REPORTING ENTITY
The Regional Office of Education #54 reporting entity includes all related organizations for which it
exercises oversight responsibility.
The Regional Office of Education #54 has developed criteria to determine whether outside agencies with
activities which benefit the citizens of the region, including districts or joint agreements which serve
pupils from numerous regions, should be included in its financial reporting entity. The criteria include,
but are not limited to, whether the Regional Office of Education #54 exercises oversight responsibility
(which includes financial interdependency, selection of governing authority, designation of management,
ability to significantly influence operations, and accountability for fiscal matters), scope of public
service, and special financing relationships.
The districts and joint agreements have been determined not to be a part of the reporting entity after
applying the criteria of manifesting of oversight, scope of public service, and special financing
relationships and are therefore excluded from the accompanying financial statements because the
Regional Office of Education #54 does not control the assets, operations, or management of the districts
or joint agreements. In addition, the Regional Office of Education #54 is not aware of any entity that
would exercise such oversight as to result in the Regional Office of Education #54 being considered a
component unit of the entity.
D. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The Statement of Net Assets and the Statement of Activities are government-wide financial statements.
They report information on all of the Regional Office of Education #54'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 Regional Office of Education #54 has no
business-type activities that rely on fees and charges for support.
23
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (Concluded)
The Regional Office of Education #54'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 Regional Office of Education #54. These statements are presented on an "economic resources"
measurement focus as prescribed by GASB Statement No. 34. All of the Regional Office of Education
#54'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 financial statements.
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, such as payables, receivables, and transfers. Interfund activities between governmental funds
appear as due to/due from other funds 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. All internal balances in the Statement ofNet Assets have been eliminated.
The purpose of interfund borrowing and permanent transfers is to cover temporary or permanent
shortfalls in cash flow within grant programs and funds.
E. 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 between
fund balances and changes in fund balances presented in these statements and the net assets and changes
in net assets presented in the government-wide financial 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
financial 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.
24
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. 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 financial statements focus on the measurement of spending, or "financial flow,"
and the determination of changes in financial position rather than upon net income determination. This
means that generally only current assets and current liabilities are 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 a specific purpose or project before
any amounts will be paid to the Regional Office of Education #54; 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 susceptible­to-
accrual criteria are met.
Under the terms of grant agreements, Regional Office of Education #54 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 finance the
program. It is Regional Office ofEducation #54's policy to first apply restricted funds to such programs,
and then unrestricted funds. For unrestricted funds, committed funds are used first, then assigned funds,
then unassigned funds if any.
G. FUND ACCOUNTING
The Regional Office of Education #54 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 Regional
Office of Education #54 uses governmental and fiduciary funds.
25
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
G. FUND ACCOUNTING (Continued)
GOVERNMENTAL FUNDS
Governmental funds are those through which most governmental functions typically are reported.
Governmental funds reporting focuses on the sources, uses, and balances of current fmancial resources.
Expendable assets are assigned to the various governmental funds according to the purpose for which
they mayor 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.
As prescribed by GASB Statement No. 34, governmental fund reporting focuses on the major funds,
rather than on the fund type. There is a two-step process for determining if a fund should be reported as a
major fund: (1) total assets, liabilities, revenues, or expenditures/expenses (excluding extraordinary
items) of an individual fund are at least 10% of the corresponding total for the fund type, and (2) total
assets, liabilities, revenues, or expenditures/expenses (excluding extraordinary items) of an individual
fund are at least 5% of the total of all governmental and proprietary funds combined. Funds that do not
meet the major fund determination requirements are reported in aggregate as nonmajor funds. The
Regional Office of Education #54 has presented all major funds that met the above qualifications.
The Regional Office ofEducation #54 reports the following major governmental funds:
General Fund - The General Fund is the general operating fund ofthe Regional Office of Education #54.
It is used to account for the expenditures that benefit all school districts in the region except those
required to be accounted for and reported in other funds. General funds include the following:
Direct Services - The Direct Services accounts are used for various programs that benefit the
school districts or the regional office, such as the computer consortium and technology
hub. Interest from the Distributive Fund is transferred to this program.
Regional Safe School - General State Aid - This program accounts for the general operations of
the Regional Safe School.
Major Special Revenue Funds - Special revenue funds are used to account for and report the proceeds of
specific revenue sources (other than fiduciary or major capital projects) that are legally restricted to
expenditures for specified purposes. Major special revenue funds include the following:
26
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. FUND ACCOUNTING (Continued)
Institute Fund - This fund accounts for teacher certificate registrations, issuance and evaluation
fees for processing certificates, and expenses for teachers' institutes, workshops, or
meetings of a professional nature that are designed to promote the professional growth of
teachers. All funds generated remain restricted until expended only on the aforementioned
activities.
General Education Development Fund - This fund accounts for the receipts and expenses
pertaining to the GED/High School Equivalency program for high school dropouts.
Education Fund - This fund is used to account for and report the proceeds of specific revenue sources
that are restricted by grant agreements or contracts to expenditures for specified purposes supporting
education enhancement programs as follows:
McKinney-Vento Homeless Children and Youth Program - This program accounts for the
proceeds of the McKinney-Vento Homeless Children and Youth Program and the ARRA
McKinney-Vento Homeless Children and Youth Program grants. This program is
designed to assist in implementing homeless services. The program collaborates with all
schools within the region concerning the identification of homeless youth and works with
the districts to provide local and State resources to those students.
Regional Safe School Program - The program accounts for the Regional Safe Schools grant
monies. The program concentrates on the education of students who have been expelled
from the school districts served by the Regional Office of Education #54. In addition,
this program includes State and federal lunch and breakfast programs.
The Regional Office ofEducation #54 reports the following nonmajor governmental funds:
Nonmajor Special Revenue Funds - Special revenue funds are used to account for and report the
proceeds of specific revenue sources (other than fiduciary or major capital projects) that are legally
restricted to expenditures for specified purposes. Nonmajor special revenue funds include the following:
Bus Driver Training - This fund accounts for State and local receipts and expenses related to
initial and refresher courses of instruction for school bus drivers.
Supervisory Fund - This fund accounts for State receipts provided to the Regional Office of
Education to pay day-to-day expenses as approved by the Regional Superintendent.
27
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. FUND ACCOUNTING (Concluded)
FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the Regional Office of Education #54 in a trustee
capacity or as an agent for individuals, private organizations, other governmental units, and/or other
funds.
Agency Funds - Agency funds are custodial in nature (assets equal liabilities) and do not involve
measurement of results of operations. Agency funds include the following:
Distributive Fund - This fund distributes monies received from the State to the school districts
and other entities.
Board of School Trustees - The fund accounts for the Regional Board of School Trustees'
operating accounts.
Private-Purpose Trust Fund - This fund is used to account for the resources held by the Regional Office
of Education #54 as a trustee for Vermilion County's Drug and Alcohol Abuse .Prevention Program
(DAAPP).
Interest on Distributive Fund - The Regional Office of Education #54 has agreements with all districts in
the region whereby the Regional Office of Education #54 is allowed to keep the interest on the
Distributive Fund for expenditures benefiting all districts.
H. GOVERNMENTAL FUND BALANCES
Fund balance is the difference between assets and liabilities in a governmental fund. The following types
of fund balances may be presented in the Governmental Funds Balance Sheet and Governmental Funds
Combining Schedule of Accounts:
Nonspendable Fund Balance - The portion of a governmental fund's net assets that are not available
to be spent, either short term or long term, due to either their form or legal restrictions. The
Regional Office of Education #54 has no nonspendable fund balances.
Restricted Fund Balance - The portion of a governmental fund's net assets that are subject to external
enforceable legal restrictions. The following funds are restricted by Illinois Statute: Institute
Fund, General Education Development Fund, Bus Driver Training, and Supervisory Fund.
28
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30,2011
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. GOVERNMENTAL FUND BALANCES (Concluded)
Committed Fund Balance - The portion of a governmental fund's net assets with self-imposed
constraints or limitations that have been placed at the highest level of decision making. The
Regional Office of Education #54 has no committed fund balances.
Assigned Fund Balance - The portion of a governmental fund's net assets for which an intended use
of resources has been denoted. The accounts presented with assigned fund balances are specified
for a particular purpose by the Regional Superintendent. The Regional Office of Education #54
has no assigned fund balances.
Unassigned Fund Balance - Available expendable fmancial resources in a governmental fund that are
not designated for a specific purpose. The following General Fund account has an unassigned
fund balance: Direct Services.
I. NET ASSETS
Net assets present the difference between assets and liabilities in the Statement of Net Assets. Net assets
are 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 by either (1)
external groups such as creditors, grantors, contributors, or laws or regulations of other
governments or (2) law through constitutional provisions or enabling legislation.
Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or
"invested in capital assets."
J. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on deposit and on hand. The Regional Office of Education #54
considers certificates of deposit with an original maturity date greater than 90 days to be investments; it
currently has no deposits classifed as investments. All interest income is recognized as revenue in the
appropriate fund's Statement ofRevenues, Expenditures, and Changes in Fund Balances.
K. INVENTORY
Inventory is not recorded. The cost is recorded as an expenditure at the time individual inventory items
are purchased.
29
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30,2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Concluded)
L. CAPITAL ASSETS
Capital assets purchased or acquired with an original cost of $1,000 or more and estimated useful lives
of greater than two years 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:
Office equipment
Computer equipment
5-7 years
3 years
The majority of capital assets used by the Regional Office of Education #54 have been purchased by
Vermilion County. These capital assets are the property of Vermilion County and are included in
Vermilion County's fmancial statements.
M. COMPENSATED ABSENCES AND PENSION AND RETIREMENT COMMITMENTS
These fmancial statements relate information pertaining to the funds administered by the Regional
Superintendent. All personnel of the Regional Office of Education #54 receive their salaries from other
sources. The Superintendent and Assistant Superintendent receive their salaries directly from the Illinois
State Board of Education. The other personnel are employees of Vermilion County. There are no
compensated absence, pension, or retirement obligations to disclose. Employment- and post­employment-
related obligations for the Superintendent and Assistant Superintendent are disclosed in the
financial statements of the Illinois State Board of Education. Employment- and post-employment-related
obligations for other employees are included in the Vermilion County annual fmancial report.
N. 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.
O. BUDGET INFORMATION
The Regional Office of Education #54 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 Funds do not have separate budgets. Comparisions of budgeted and actual results are presented
as supplementary information. Budgetary comparison schedules have been presented for the following
programs: McKinney-Vento Homeless Children and Youth Program, ARRA McKinney-Vento
Homeless Children and Youth Program, and the Regional Safe Schools Program.
30
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE2-CASH
The Regional Office of Education #54 does not have a formal investment policy. The Regional Office of
Education #54 is allowed to invest in securities as authorized by 30 ILCS-235/2 and 6 and 105 ILCS­5/
8-7.
A. DEPOSITS
At June 30, 2011, the carrying amount of the Regional Office of Education #54's government-wide
and fiduciary fund deposits were $203,668 and $22,126, respectively, and the bank balances were
$224,186 and $463,994, respectively. The Regional Office of Education #54's fiduciary fund
deposits include a $7,000 certificate of deposit that is reported in the basic financial statements under
the caption "Cash and cash equivalents." Of the total bank balances as of June 30, 2011, $299,498
was secured by federal depository insurance, and $22,151 was collateralized by securities pledged by
the Regional Office of Education #54' s financial institutions on behalf of the Regional Office.
B. INVESTMENTS
The Regional Office of Education #54's only investments are internally pooled in the Illinois Funds
Money Market Fund. As of June 30, 2011, the Regional Office of Education #54 had investments
with carrying value of $366,531 in the Illinois Funds Money Market Fund
CREDIT RISK
At June 30, 2011, the Illinois Funds Money Market Fund had a Standard and Poor's AAAm 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 provision of the Illinois Public
Funds Investment 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 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 one year 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.
31
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 3 - CAPITAL ASSETS
In accordance with GASB Statement No. 34, the Regional Office of Education #54 has reported capital
assets in the government-wide Statement of Net Assets. Purchases are reported as capital outlay in the
governmental fund statements. The following table provides a summary of changes in total assets,
accumulated depreciation, and investment in capital assets for the year ended June 30, 2011:
Beginning
Balance Additions Deletions
Ending
Balance
Governmental activities:
Capital assets being depreciated:
Office equipment
Total capital assets being depreciated
$ 10,067
10,067
$ $ $ 10,067
10,067
Less accumulated depreciation for:
Office equipment (2,176) (1,814) (3,990)
Total accumulated depreciation (2,176) (1,814) (3,990)
Governmental activities capital assets, net $ 7,891 $ (1,814) $ $ 6,077
Capital assets are depreciated using the straight-line method over the estimated useful lives of the assets.
Depreciation expense for the year ended June 30, 2011, of $1,814 was charged to governmental
activities on the government-wide Statement of Activities. Investment in capital assets is the component
of net assets that reports capital assets net of accumulated depreciation.
NOTE 4 - INTERFUND ACTIVITY
DUE TO/FROM OTHER FUNDS
As of June 30, 2011, there were no interfund balances due to/from other funds in the governmental fund
balance sheet.
32
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30,2011
NOTE 5 - DUE TOIFROM OTHER GOVERNMENTS
The Regional Office of Education #54's Education and Agency Funds have funds due from/to various
other governmental units which consist of the following:
Due from other governments:
Agency Funds
Illinois State Board of Education
Local school districts
Governmental Funds
Local school districts
Total
Due to other governments:
Agency Funds
Local school districts
Governmental Funds
Total
NOTE 6 - RISK MANAGEMENT
$ 7,172,652
48
90
$ 7,172,790
$ 7,182,931
$ 7,182,931
The Regional Office of Education #54 is exposed to various risks of loss related to torts; theft of,
damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The Regional Office of Education #54 is covered by commercial insurance purchased by Vennilion
County to cover these risks. No losses have been incurred in excess ofthe amounts covered by insurance
over the past three years.
NOTE 7- ON-BEHALF PAYMENTS
Vermilion County provides the Regional Office of Education #54 with staff and pays certain
expenditures on behalf of the Regional Office of Education #54. The expenditures paid by Vermilion
County for the year ended June 30, 2011, were as follows:
33
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2011
NOTE 7 - ON-BEHALF PAYMENTS (Concluded)
Office salaries and benefits
Travel
Supplies
Other expenses
$ 55,395
5,761
3,532
9,306
$ 73,994
These amounts have been recorded in the accompanying financial statements as local revenue and
expenditures.
The State of Illinois paid the following salaries on behalf ofthe Regional Office of Education #54:
Regional Superintendent
Salary
Benefits (includes state-paid insurance)
Assistant Regional Superintendent
Salary
Benefits (includes state-paid insurance)
TRS Pension Contribution
$
$
92,818
13,054
65,094
12,568
36,478
220,012
Salary and benefit data for the Regional Superintendent and Assistant Regional Superintendent were
calculated based on data provided by the Illinois State Board ofEducation.
These amounts have been recorded in the accompanying financial statements as State revenue and
expenditures.
NOTE 8 - SUBSEQUENT EVENT
For fiscal year 2012, the Governor of Illinois vetoed the appropriation line for the Regional
Superintendent's and Assistant Regional Superintendent's salaries and benefits, as well as the
appropriation line for the Regional Office's general operations grant. The Regional Superintendents' and
Assistant Regional Superintendents' salaries were reinstated in November 2011 for one year only, to be
paid from State personal property replacement tax funds, but the general operations grant was not
reinstated. The Regional Superintendents will make every effort to secure other local funding to support
the programs and services the Regional Office provides. The effect of these funding cuts on the
Regional Office's long-term ability to continue to provide services at their current level is unknown.
34
SUPPLEMENTARY INFORMATION
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
COMBINING SCHEDULE OF ACCOUNTS
GENERAL FUND
JUNE 30, 2011
Regional
Safe School -
Direct Services General State Aid Total
Assets
Cash and cash equivalents $ 99,597 $ $ 99,597
Total assets $ 99,597 $ $ 99,597
Liabilities
Accounts payable $ 68,599 $ $ 68,599
Deferred revenue 17 17
Total liabilities 68,616 68,616
Fund balance
Unassigned 30,981 30,981
Total fund balance 30,981 30,981
Total liabilities and fund balance $ 99,597 $ $ 99,597
35
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GENERAL FUND ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2011
Regional
Safe School -
Direct Services General State Aid Total
Revenues
Local sources $ 291,607 $ $ 291,607
State sources 100,040 100,040
On-behalf payments - Local 73,994 73,994
On-behalf payments - State 220,012 220,012
Total revenues 585,613 100,040 685,653
Expenditures
Purchased services 304,863 304,863
Supplies and materials 5,106 5,106
Other objects 250 250
Payments to other governments 100,040 100,040
On-behalf payments - Local 73,994 73,994
On-behalf payments - State 220,012 220,012
Total expenditures 604,225 100,040 704,265
Deficiency of revenues over expenditures (18,612) (18,612)
Other financing sources
Interest 1,165 1,165
Total other financing sources 1,165 1,165
Net change in fund balance (17,447) (17,447)
Fund balance - beginning 48,428 48,428
Fund balance - ending $ 30,981 $ $ 30,981
36
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
COMBINING SCHEDULE OF ACCOUNTS
EDUCATION FUND
JUNE 30,2011
McKinney-Vento
Homeless
Children & Youth
Program
Regional Safe
Schools Program Total
Assets
Due from other governments - State
Total assets
Liabilities
Due to other governments - Local
Total liabilities
$
$
$
$
37
$
$
$
$
46,085 ......;$:......-__4_6_':.,..08_5_
46,085 =$=====4=6'=0=85=
46,085 _$:......-__4_6':.,..0_85_
46,085 =$=====4=6'=0=85=
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
EDUCAnON FUND ACCOUNTS
FOR THE YEAR ENDED JUNE 30, 2011
Regional Safe
Schools Program
Revenues
State sources
Federal sources
Total revenues
McKinney-Vento
Homeless
Children & Youth
Program
$
12,713
12,713
$ 156,468 $
40,219
196,687
Total
156,468
52,932
209,400
Expenditures
Purchased services
Supplies and materials
Payments to other governments
Total expenditures
Net change in fund balance
Fund balance - beginning
8,340 8,340
4,373 4,373
196,687 196,687
12,713 196,687 209,400
Fund balance - ending $
38
$ $
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
MCKINNEY-VENTO HOMELESS CHILDREN AND YOUTH PROGRAM
FOR THE YEAR ENDED JUNE 30. 2011
Budgeted Amounts Actual
Original Final Amounts
Revenues
Federal sources $ 8.340 $ 8.719 $ 8.719
Total revenues 8.340 8.719 8.719
Expenditures
Purchased services 8.340 8,340 8,340
Supplies and materials 379 379
Total expenditures 8,340 8,719 8,719
Excess (deficiency) of revenues
over expenditures $ $
Fund balance - beginning
Fund balance - ending $
39
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
BUDGETARY COMPAIDSON SCHEDULE
EDUCATION FUND ACCOUNTS
ARRA MCKINNEY-VENTO HOMELESS CHILDREN AND YOUTH PROGRAM
FOR THE YEAR ENDED JUNE 30, 2011
Budgeted Amounts
Original Final
Actual
Amounts
Revenues
Federal sources $ 4,000 $ 3,994 $ 3,994
Total revenues 4,000 3,994 3,994
Expenditures
Supplies and materials 4,000 2,996 3,994
Capital outlay 998
Total expenditures 4,000 3,994 3,994
Excess (deficiency) of revenues
over expenditures $ $
Fund balance - beginning
Fund balance - ending $
40
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
REGIONAL SAFE SCHOOLS PROGRAM
FOR THE YEAR ENDED JUNE 30, 2011
Budgeted Amounts Actual
Original Final Amounts
Revenues
State sources $ 131,436 $ 81,445 $ 156,468
Federal sources 40,219
Total revenues 131,436 81,445 196,687
Expenditures
Payments to other governments 131,436 81,445 196,687
Total expenditures 131,436 81,445 196,687
Excess (deficiency) ofrevenues
over expenditures $ $
Fund balance - beginning
Fund balance - ending $
41
VERMILION COUNTY
REGIONAL OFFICE OF EDUCAnON #54
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2011
SPECIAL REVENUE FUNDS
Assets
Cash and cash equivalents
Total assets
Bus Driver Supervisory
Training Fund Total
$ 4,498 $ 4,618 $ 9,116
$ 4,498 $ 4,618 $ 9,116
Fund balances
Restricted
Total fund balances
$
$
42
4,498 $
4,498 $
4,618 ......:$:......-_9,:..,..1--:16_
4,618 =$====9=,1=16=
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
SPECIAL REVENUE FUNDS
Bus Driver Supervisory
Training Fund Total
Revenues
Local sources $ 1,386 $ $ 1,386
State sources 840 840
Total revenues 2,226 2,226
Expenditures
Purchased services 1,286 357 1,643
Supplies and materials 150 150
Total expenditures 1,436 357 1,793
Excess (deficiency) of revenues
over expenditures 790 (357) 433
Other financing sources
Interest 6 6
Total other financing sources 6 6
Net change in fund balances 790 (351) 439
Fund balance - beginning 3,708 4,969 8,677
Fund balance - ending $ 4,498 $ 4,618 $ 9,116
43
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUNDS
JUNE 30, 2011
Board of
Distributive School
Fund Trustees Totals
Assets
Cash and cash equivalents $ $ 10,231 $ 10,231
Due from other governments 7,172,652 48 7,172,700
Total assets $ 7,172,652 $ 10,279 $ 7,182,931
Liabilities
Due to other governments $ 7,172,652 $ 10,279 $ 7,182,931
Total liabilities $ 7,172,652 $ 10,279 $ 7,182,931
44
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
Balance Balance
Beginning End
ofYear Additions Deductions of Year
DISTRIBUTIVE
Assets
Due from other governments $ 10,248,406 $ 83,482,396 $ 86,558,150 $ 7,172,652
Total assets $ 10,248,406 $ 83,482,396 $ 86,558,150 $ 7,172,652
Liabilities
Due to other governments $ 10,248,406 $ 83,482,396 $ 86,558,150 $ 7,172,652
Total liabilities $ 10,248,406 $ 83,482,396 $ 86,558,150 $ 7,172,652
BOARD OF SCHOOL TRUSTEES
Assets
Cash and cash equivalents $ 10,214 $ 126 $ 109 $ 10,231
Due from other governments 48 48
Total assets $ 10,262 $ 126 $ 109 $ 10,279
Liabilities
Due to other governments $ 10,262 $ 126 $ 109 $ 10,279
Total liabilities $ 10,262 $ 126 $ 109 $ 10,279
TOTALS - ALL AGENCY FUNDS
Assets
Cash and cash equivalents $ 10,214 $ 126 $ 109 $ 10,231
Due from other governments 10,248,454 83,482,396 86,558,150 7,172,700
Total assets $ 10,258,668 $ 83,482,522 $ 86,558,259 $ 7,182,931
Liabilities
Due to other governments $ 10,258,668 $ 83,482,522 $ 86,558,259 $ 7,182,931
Total liabilities $ 10,258,668 $ 83,482,522 $ 86,558,259 $ 7,182,931
45
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
SCHEDULE OF DISBURSEMENTS TO SCHOOL DISTRICT TREASURERS AND OTHER ENTITIES
DISTRIBUTIVE FUND
FOR THE YEAR ENDED JUNE 30, 2011
1,100 1,268
24 7,109 6,930
12,222 60,406 117,614
256,218 562,828 157,965
Community
Unit School Community Community
District #4 Unit School Unit School
Georgetown- District #5 District #7
Ridge Farm Catlin Rossville
1llinois Illinois Illinois
$ 5,337,608 $ 1,759,078 $ 1,432,763
8,158 5,072
219,196 88,754 71,244
300,885 92,719 35,053
8,741 9,297 1,561
3,569
11,870 704 2,149
40 8
14,757 6,826
314,969 85,428 130,053
86,431 11,684 81,451
22,904 21,850
5,291 4,846
13,222
296,602 263,216
35
69,726 71,034
2,955
391,373 398,083
General State Aid
Special Education
Private Facility Tuition
Extraordinary
Personnel
Orphanage - Individual
Summer School
Career & Technical Education
Bilingual Education - TPI
State Free Lunch & Breakfast
School Breakfast Incentive
Driver Education
Transporation
Regular
Special Education
ROE School Bus Driver Training
National Board Certification Initiatives
Truants Alternative/Optional Ed.
Regional Safe Schools
Early Childhood - Block Grant
K-6 Reading Improvement
ADA Safety & Education Block Grant
Orphanage Tuition
Teacher & Administrators Mentoring Program
National School Lunch Program
Special Milk Program
School Breakfast Program
Fresh Fruits & Vegetables
NSLP Equipment Grant
Title I - Low Income
Title I - Reading First Part SEA Funds
Title I - Migrant Education
Title I - Migrant Incentive
Title IV - Safe & Drug Free Sch - Formula
Fed. - Sp. Ed. - Pre-School Flow Through
Fed. - Sp. Ed. - LD.E.A, Flow Through
LD.E.A. Room and Board
ARRA-Title I Low Income
ARRA-IDEA Flow Through
ARRA-Technology
ARRA- Education Jobs Funds
Title III--Lang Inst Prog-Limited Eng
Title III Limited English
Learn &Serve America
Title II - Teacher Quality
Technology Enhancing Education - Formula
Other Federal Programs
Community
Unit School
District #1
Bismarck
Illinois
$ 2,814,038
149,762
120,688
22,130
3,202
22,836
237,365
102,027
10,570
3,703
104,103
56,903
23,030
552
Community
Unit School
District #2
Westville
Illinois
$ 6,181,527
237,583
285,332
105,479
628
15,148
26
18,305
350,786
86,971
1,760
75,701 95,580
574
6,220
2,273
34,089
20,997
14,170
1,699
158,647
8,163
13,018
6,118
1,712
52,912
11,770
101,265
1,600
1,349
41,921
130,453
14,907
$ 3,939,373 $ 8,776,585
46
$ 7,461,396 $ 2,318,838 $ 2,118,289
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
SCHEDULE OF DISBURSEMENTS TO SCHOOL DISTRICT TREASURERS AND OTHER ENTITIES
DISTRIBUTIVE FUND
FOR THE YEAR ENDED JUNE 30, 2011
1,440 17,492
45 182
22,446
67,817 310,638
26,903 45,353
3,308 23,958
1,013 5,404
30,049 320,702
511
13,924 72,167
54,902 456,247
164,191
4,675
873
484 2,949
8,649 52,653
14,621 229,526
General State Aid
Special Education
Private Facility Tuition
Extraordinary
Personnel
Orphanage - Individual
Summer School
Career & Technical Education
Bilingual Education - TPI
State Free Lunch & Breakfast
School Breakfast Incentive
Driver Education
Transporation
Regular
Special Education
ROE School Bus Driver Training
National Board Certification Initiatives
Truants Alternative/Optional Ed.
Regional Safe Schools
Early Childhood - Block Grant
K-6 Reading Improvement
ADA Safety & Education Block Grant
Orphanage Tuition
Teacher & Administrators Mentoring Program
National School Lunch Program
Special Milk Program
School Breakfast Program
Fresh Fruits & Vegetables
NSLP Equipment Grant
Title I - Low Income
Title I - Reading First Part SEA Funds
Title I • Migrant Education
Title I - Migrant Incentive
Title IV - Safe & Drug Free Sch - Formula
Fed. - Sp. Ed. - Pre-School Flow Through
Fed. - Sp. Ed. - LD.EA Flow Through
LD.EA Room and Board
ARRA-Title I Low Income
ARRA-IDEA Flow Through
ARRA-Technology
ARRA- Education Jobs Funds
Title III--Lang Inst Prog-Limited Eng
Title III Limited English
Learn & Serve America
Title II - Teacher Quality
Technology Enhancing Education - Formula
Other Federal Programs
Community
Unit School
District #10
Potomac
l1linois
$ 927,498
41,619
28,500
10,881
Community
Unit School
District # 11
Hoopeston
Illinois
$ 5,718,311
6,587
249,161
279,298
3,476
76,812
Community
Unit School
District #12
Jamaica
Illinois
$ 1,215,938
76,454
77,674
1,082
2,016
8,257
207,732
72,068
6,353
1,832
77,975
62,459
5,859
78,252
16,664
Community
Unit School
District #61
Armstrong-
Ellis
Illinois
$ 231,652
20,044
20,957
7,393
739
6
31,905
13,245
491
18,098
6,953
62,857
607
552
30,939
5,162
$ 1,232,526 $ 8,062,739 $ 1,910,615
47
$ 451,600
VERMILION COUNTY
REGIONAL OFFICE OF EDUCATION #54
SCHEDULE OF DISBURSEMENTS TO SCHOOL DISTRICT TREASURERS AND OTHER ENTITIES
DISTRIBUTIVE FUND
FOR THE YEAR ENDED JUNE 30, 2011
Community Community Armstrong Twp.
Unit School Unit School High School
District #76 District #118 District #225 Vermilion
Oakwood Danville Armstrong County
Illinois Illinois lllinois ROE #54 Total
General State Aid $ 3,951,145 $ 27,384,528 $ 195,476 $ 100,040 $ 57,249,602
Special Education
Private Facility Tuition 6,609 168,656 34,875 229,957
Extraordinary 200,984 1,245,798 17,941 2,618,540
Personnel 137,301 1,024,481 9,000 2,411,888
Orphanage - Individual 12,191 106,468 276,736
Summer School 58,697 63,976
Career & Technical Education 146,540 146,540
BilingUal Education - TPI 42,396 42,396
State Free Lunch & Breakfast 5,825 99,593 470 1,023 161,671
School Breakfast Incentive 555 862
Driver Education 19,129 68,429 9,065 190,050
Transporation
Regular 466,267 1,180,166 28,198 3,411,324
Special Education 91,874 480,469 11,143 1,109,619
ROE School Bus Driver Training 840 840
National Board Certification Initiatives 3,521 5,281
Truants Alternative/Optional Ed. 142,825 142,825
Regional Safe Schools 109,360 109,360
Early Childhood - Block Grant 1,902,660 1,902,660
K-6 Reading Improvement 16,242 132,681 250,204
ADA Safety & Education Block Grant 4,870 25,016 476 56,927
Orphanage Tuition 300,487 300,487
Teacher & Administrators Mentoring Program 100,000 113,222
National School Lunch Program 161,784 1,542,530 20,244 20,131 2,942,435
Special Milk Program 5,858 6,404
School Breakfast Program 476,247 8,189 730,010
Fresh Fruits & Vegetables 5,329 3,166 8,495
NSLP Equipment Grant 25,988 28,943
Title I - Low Income 176,415 3,298,350 5;079,851
Title I - Reading First Part SEA Funds 3,017 3,017
Title I - Migrant Education 164,191
Title I - Migrant Incentive 4,675
Title IV - Safe & Drug Free Sch - Formula 554 6,175 12,177
Fed. - Sp. Ed. - Pre-School Flow Through 48,100 48,100
Fed. - Sp. Ed. - I.D.E.A. Flow Through 1,065,328 1,065,328
I.D.E.A. Room and Board 7,097 43,831 54,615 144,969
ARRA-Title I Low Income 39,152 637,641 1,714 1,004,610
ARRA-IDEA Flow Through 691,769 691,769
ARRA-Technology 69,641 69,641
ARRA- Education Jobs Funds 228,553 725,607 5,938 2,548,608
Title III--Lang lost Prog-Limited Eng 11,113 11,113
Title III Limited English 24,044 24,044
Learn & Serve America 8,163
Title II - Teacher Quality 71,089 593,353 4,546 1,000,743
Technology Enhancing Education· Formula 8,809 9,935
Other Federal Programs 155,962 155,962
$ 5,666,722 $ 43,980,000 $ 387,763 $ 251,704 $ 86,558,150
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