FY10-ROE46-Fin-Full

              STATE OF ILLINOIS
OFFICE OF THE AUDITOR GENERAL
FINANCIAL AUDIT
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
For the Year Ended June 30, 2010
WILLIAM G. HOLLAND
AUDITOR GENERAL
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
TABLE OF CONTENTS
PAGE
OFFICIALS ...................................................................................................................................1
FINANCIAL REPORT SUMMARY ...........................................................................................2
FINANCIAL STATEMENT REPORT SUMMARY .................................................................4
INDEPENDENT AUDITORS’ REPORT ...................................................................................5
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ................................7
Schedule of Findings and Responses ...............................................................................................9
Corrective Action Plan for Current Year Audit Findings ..............................................................18
Summary Schedule of Prior Audit Findings ..................................................................................21
BASIC FINANCIAL STATEMENTS
EXHIBIT
Government-wide Financial Statements:
Statement of Net Assets ....................................................................................... A.................22
Statement of Activities ......................................................................................... B.................23
Governmental Fund Financial Statements:
Balance Sheet - Governmental Funds .................................................................. C.................24
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets ....................................................................... D.................25
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Governmental Funds ........................................................... E.................26
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Statement of Activities
Governmental Funds ...................................................................................... F.................27
Fiduciary Fund Financial Statement:
Statement of Fiduciary Net Assets ....................................................................... G.................28
Notes to Financial Statements ........................................................................................................29
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
TABLE OF CONTENTS (Continued)
PAGE
REQUIRED SUPPLEMENTARY INFORMATION
(Other than Management’s Discussion and Analysis)
Schedule of Funding Progress - IMRF (Unaudited) ................................................................48
OTHER SUPPLEMENTARY INFORMATION
SCHEDULE
General Fund:
Combining Schedule of Accounts ......................................................... 1 ........................49
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances ................................................................ 2 ........................51
Budgetary Comparison Schedule ............................................................ 3 ........................53
Education Fund:
Combining Schedule of Accounts .......................................................... 4 ........................54
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances ................................................................. 5 ........................57
Budgetary Comparison Schedule ............................................................ 6 ........................60
Alternative Schools Fund:
Combining Schedule of Accounts ......................................................... 7 ........................64
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances ................................................................ 8 ........................66
Nonmajor Special Revenue Funds:
Combining Balance Sheet ...................................................................... 9 ........................68
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances ............................................................... 10 ........................69
Agency Fund:
Statement of Changes in Assets and Liabilities………………………..11……………...70
1
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
OFFICIALS
Regional Superintendent
(Current Effective April 16, 2011) Honorable Jeff Stephens
Regional Superintendent
(During the audit period) Honorable Stephen Breese
Assistant Regional Superintendent
(During the audit period) Mr. Jeff Stephens
Offices are located at:
110 N. West Street
Jacksonville, IL 62650
2
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
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.
AUDITORS’ REPORTS
The auditors’ reports do not contain scope limitations, disclaimers, or other significant non-standard
language.
SUMMARY OF AUDIT FINDINGS
Number of This Audit Prior Audit
Audit findings 3 3
Repeated audit findings 2 1
Prior recommendations implemented 1 2
or not repeated
Details of audit findings are presented in a separate report section.
Additional matters which were less than significant deficiencies or material weaknesses but more
than inconsequential, have been reported in a Management Letter of Comments to the Regional
Superintendent. In prior years, these issues may have been included as immaterial findings in the
auditors’ reports.
SUMMARY OF FINDINGS AND RESPONSES
Item No. Page Description Finding Type
FINDINGS (GOVERNMENT AUDITING STANDARDS)
10-1 10
Controls Over Compliance with Laws and Regulations Noncompliance
10-2 12
Inadequate Controls Over Property and Equipment Significant
Deficiency
10-3 15 Controls Over Financial Statement Preparation Significant
Deficiency
PRIOR FINDINGS NOT REPEATED (GOVERNMENT AUDITING STANDARDS)
09-2 21 Inadequate Internal Control Procedures Significant
Deficiency
3
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
FINANCIAL REPORT SUMMARY (Concluded)
EXIT CONFERENCE
The findings and recommendations appearing in this report were discussed with
Brown/Cass/Morgan/Scott Counties Regional Office of Education #46 personnel at an exit
conference held on November 23, 2011. Attending were Regional Superintendent, Jeffrey
Stephens, Bookkeeper, Kris Lantz-Kaufmann, Independent Accountant, John Eyth, Kelly
Mittelstaedt, ROE Audit Manager, and Jeannie Kim, ROE Audit Staff. Responses to the
recommendations were provided by Jeffrey Stephens, Regional Superintendent on December 9,
2011.
4
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
FINANCIAL STATEMENT REPORT SUMMARY
The audit of the accompanying basic financial statements of the Brown, Cass, Morgan, and Scott
Counties Regional Office of Education #46 was performed by staff of the Illinois Office of the
Auditor General.
Based on their audit, the auditors expressed an unqualified opinion on the Brown, Cass, Morgan,
and Scott Counties Regional Office of Education #46’s basic financial statements.
SPRINGFIELD OFFICE: CHICAGO OFFICE:
ILES PARK PLAZA
7 4 0 EAST ASH • 62703-3 1 54
PHONE: 217n B2-6046
MICHAEL A . B I L A NDIC BLDG . · SUITE S-900
160 NORTH LASALLE · 6060 1-3103
PHONE: 3 12/8 14-4000
FAX: 2 17nB5-8222 • TTY: 888/26 1-2887
OFFICE OF THE AUDITOR G E N ERAL
WILLIAM G . HOLLAND
INDEPENDENT AUDITORS' REPORT
Honorable William G. Holland
Auditor General
State of Illinois
FAX: 3 1 2/8 14·4006
We have audited the accompanying financial statements of the governmental actJvJtles, each
major fund, and the aggregate remaining fund information of the Brown, Cass, Morgan, and
Scott Counties Regional Office of Education #46, as of and for the year ended June 30, 2010.
which collectively comprise the Brown. Cass, Morgan. and Scott Counties Regional Office of
Education #46's basic financial statements as listed in the table of contents. These financial
statements are the responsibi lity of the Brown, Cass, Morgan, and Scott Counties Regional
Office of Education #46's management. Our responsibility is to express opinions on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Governmenf
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and the significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of the Brown, Cass, Morgan, and Scott Counties Regional
Office of Education #46, as of June 30, 20 l 0, and the respective changes in fi nancial position
thereof for the year then ended in conformity with accounting principles generally accepted in
the United States of America.
In accordance with Government Auditing Standards, we have also issued a report dated
December 14, 2011 , on our consideration of the Brown, Cass, Morgan, and Scott Counties
Regional Office of Education #46's internal control over financi al reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
The Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 has not
presented a Management's Discussion and Analysis that accounting principles generally
accepted in the United States of America has determined is necessary to supplement, although
not required to be part of, the basic financial statements. ·
IN TERNET ADDRESS: AUDITOR@MAIL.STATE.IL.U S
RECYC LED PA~R · SOYBEA N INKS
The Illinois Municipal Retirement Fund Schedule of Funding Progress on page 45 is not a
requjred 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 Brown, Cass, Morgan and Scott Counties Regional Office of Education
#46's basic financial statements. The combining and individual nonmajor fund financial
statements and budgetary comparison schedules are presented for purposes of additional analysis
and are not a required part of the basic fmancial statements. The combining and individual
nonmajor fund financial statements and budgetary comparison schedules 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.
~~~ ~tu.DcU-Kelly
Mitt lstaedt, CPA
December 14, 20 11
6
SPRINGFIELD OFFICE:
ILES PARK PLAZA
740 EAST ASH • 62703-3 1 54
PHONE: 217/782-6046
FAX: 217n85·8222 • TTY: 8 88/26 1-2887
C HICAGO OFFICE:
MIC H A EL A . B I LANDIC BLDG. · SUITE S-900
160 NORTH LASALLE · 6 0601-3 103
PHONE: 3 12/8 14-4 000
OFFICE OF THE AUDITOR GENERAL
WILLIAM G . HOLLAND
FAX: 3 12/ 8 14· 4006
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Honorable William G. Holland
Auditor General
State of Illinois
We have audited the financial statements ofthe governmental activities, each major fund, and the
aggregate remaining fund information of the Brown, Cass, Morgan, and Scott Counties Regional
Office of Education #46, as of and for the year ended June 30, 2010, which collectively comprise
the Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46's basic tlnancial
statements and have issued our report thereon dated December 14, 2011. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Brown, Cass, Morgan, and Scott
Counties Regional Office of Education #46'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 Brown,
Cass, Morgan, and Scott Counties Regional Office of Education #46's internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 's internal control
over financial reporting.
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
detlciency, or 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.
Our consideration of internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies in
the internal control over financial reporting that might be deficiencies, significant deficiencies or
material weaknesses. We did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses, as defined above. However, we identified
certain deficiencies in internal control over financial reporting, described in findings 10-2 and
10-3 in the accompanying Schedule of Findings and Responses that we consider to be significant
deficiencies in internal control over financial reporting. A significant deficiency is a deficiency,
or a combination of deficiencies, in internal control that is less severe than a material weakness,
yet important enough to merit attention by those charged with governance.
INT ERNET ADDR ESS: A U D ITOR®MAIL. STAT E .IL.US
RE CYCLED PA~ER · SOYBEAN INKS
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Brown, Cass, Morgan, and Scott
Counties Regional Office of Education #46's financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion.
The results of our tests disclosed 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 I 0-1.
We also noted certain matters which we have reported to management of the Brown, Cass,
Morgan, and Scott Counties Regional Office of Education #46 in a separate letter dated
December 14, 2011.
The Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46's responses to
the findings identified in our audit are described in the accompanying Schedule of Findings and
Responses. We did not audit Brown, Cass, Morgan, and Scott Counties Regional Office of
Education #46'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.
8
j~~~t
Kell)IMitte staedt, CPA
December 14, 2011
9
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2010
Section I: Summary of Auditors’ Results:
Financial Statements
Type of auditor’s report issued: Unqualified Opinion
Internal control over financial reporting:
• Material weakness(es) identified? yes x no
• Significant deficiency(ies) identified that are not
considered to be material weaknesses? x yes none reported
• Noncompliance material to
financial statements noted? x yes no
10
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2010
Section II: Financial Statement Findings:
Finding No. 10-1 Controls Over Compliance with Laws and Regulations
(Repeat from 2009-No. 09-1)
Criteria/Specific Requirement:
The Illinois School Code (105 ILCS 5/3-14.20) requires the Regional Superintendent to inspect
the building plans and specifications, including but not limited to plans and specifications for the
heating, ventilating, lighting, seating, water supply, toilets and safety against fire of public school
rooms and buildings submitted to him by school boards, and to approve all those which comply
substantially with the statutorily authorized school building codes. The Regional Superintendent
is to approve or deny the plans and specifications within three months after the date they were
submitted by the school board.
Condition:
The Regional Office of Education #46 did not document its review and approval of all building
plans and specifications as required by 105 ILCS 5/3-14.20. During testing of 8 building plans
and specifications submitted to the Regional Office by school districts, auditors noted the
following:
• 5 of 8 building plans submitted lacked required documentation showing Regional Office
inspection.
• 1 of 8 building plan inspections did not have the Regional Superintendent’s signature on
the building permit.
• The Regional Office did not maintain its own listing of building inspection submissions.
It relied on a listing from the Illinois State Board of Education (ISBE) website that did
not clearly identify submissions for building inspections.
11
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2010
Section II: Financial Statement Findings:
Finding No. 10-1 Controls Over Compliance with Laws and Regulations
(Repeat from 2009-No. 09-1) (Concluded)
Effect:
The Regional Office of Education #46 did not comply with statutory requirements.
Cause:
According to Regional Office officials, the ROE #46 Office attempts to comply with all statutory
requirements. This situation happened in part due to a change in the personnel responsible for
conducting this portion of the work within the office.
Auditor’s Recommendation:
The Regional Office of Education #46 should comply with the requirements of 105 ILCS 5/3-
14.20 and maintain all required documentation for building inspections and have it appropriately
approved. In addition, the Regional Office should maintain documentation showing all building
plans submitted by school boards for inspection.
Management’s Response:
Upon notification by the auditors of the paperwork exceptions, the ROE feels we have been in
full compliance after March 2010. We will continue to monitor this part of the operations to
insure that all documentation is done.
12
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2010
Section II: Financial Statement Findings:
Finding No. 10-2 – Inadequate Controls Over Property and Equipment
Criteria/Specific Requirement:
The Regional Office of Education (ROE) Accounting Manual requires each ROE to maintain
detailed fixed asset records for both accounting purposes as well as insurance purposes, for fixed
assets costing $500 or more. Generally accepted accounting principles require that an inventory
of all fixed assets and depreciation schedules for assets meeting the capitalization threshold for
reporting be maintained.
The ROE Accounting Manual also states that the fixed asset inventory records should include:
the inventory control number (tag number); major asset class; function and activity; reference to
the acquisition source document; acquisition date; vendor; a short description of the asset; unit
charged with custody; location; fund and account from which purchased; method of acquisition;
estimated useful life and method of depreciation; estimated salvage value; and date, method, and
authorization of disposition.
In addition, the Illinois State Board of Education’s State and Federal Grant Administration
Policy and Fiscal Requirements and Procedures requires that property records for assets
purchased with grant funds, must be maintained, that include: description of the property; serial
number or other identification number; source of property; who holds title; acquisition date and
cost of property; percentage of State/federal participation in the cost of the property; location,
use and condition of the property; and disposition date including the date of disposal and sale
price of the property.
Condition:
The Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 did not have
adequate controls over fixed assets.
The inventory listing provided by the Regional Office was inaccurate and incomplete. We noted
the following:
• Many items on the inventory listings did not include all information required by the ROE
Accounting Manual and the Illinois State Board of Education’s State and Federal Grant
Administration Policy and Fiscal Requirements and Procedures.
13
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2010
Section II: Financial Statement Findings:
Finding No. 10-2 – Inadequate Controls Over Property and Equipment
• There were many inconsistencies in the inventory listings and many items lacked
sufficient detailed descriptions and information for identification.
• 2 items from the fixed asset listing did not have the correct value assigned at the time of
donation.
Effect:
The absence of a sound system of internal controls over fixed assets can result in inaccurate
reporting of fixed assets and inadequate physical control for equipment items. An incomplete
fixed asset listing does not provide an adequate basis for physical control and losses may occur
without being detected.
Cause:
According to Regional Office officials, most of the fixed assets that were underreported were
items that had been donated to the program. While this equipment does have value, mostly it
would be considered non-consequential to many businesses. At the time, the Regional Office
felt it did not need to assign a value to these items, however, it does understand the need for
better records.
Auditor’s Recommendation:
The Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 should
establish and implement more detailed written policies and procedures for inventory that comply
with the requirements of both the ROE Accounting Manual and the Illinois State Board of
Education’s State and Federal Grant Administration Policy and Fiscal Requirements and
Procedures to effectively and efficiently monitor property acquisitions, transfers and disposals,
and provide for accurate reporting of fixed asset balances.
14
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2010
Section II: Financial Statement Findings:
Finding No. 10-2 – Inadequate Controls Over Property and Equipment (Concluded)
The policies and procedures should be updated on a periodic basis or at least annually and
include the following:
• procedures for the individual responsible for annual inventory listings to ensure annually
that all lists are consistently completed and accurate;
• procedures for documenting, recording, and assigning values for donated items;
• procedures for recording and updating inventory and asset listings as assets are
purchased; and
• procedures for the disposition of assets.
Management’s Response:
The ROE has had property and equipment procedures in place for several years and continues to
follow those procedures. Errors were made on the inventory and asset listing and have since been
corrected. The vast majority of our equipment is used and donated and not immediately, if ever,
put into service. It is placed in storage and much of it is never used and goes directly to be
recycled.
The ROE has updated procedures to tag items and place them on the fixed asset listing only if
and when the item is put into service. The ROE has also prepared for better tracking and
documentation of equipment or inventory items before they are moved from one location to
another. In addition, the ROE has implemented a more detailed listing of items being recycled.
The ROE will also ensure that each employee’s inventory listing for their area will be complete
to include serial number and description.
15
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2010
Section II: Financial Statement Findings:
Finding No. 10-3 – Controls Over Financial Statement Preparation (Repeat from 2009-No.
09-3, 2008-No. 08-1 and 2007-No. 07-9)
Criteria/Specific Requirement:
The Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 is required to
maintain a system of controls over the preparation of financial statements in accordance with
generally accepted accounting principles (GAAP). Regional Office internal controls over GAAP
financial reporting should include adequately trained personnel with the knowledge and expertise
to prepare and/or thoroughly review GAAP based financial statements to ensure that they are
free of material misstatements and include all disclosures as required by the Governmental
Accounting Standards Board (GASB).
Condition:
The Regional Office of Education #46 did not have sufficient internal controls over the financial
reporting process. The Regional Office maintains their accounting records on the cash basis of
accounting during the year and records accruals at year end. While the Regional Office
maintains controls over the processing of most accounting transactions, there were not sufficient
controls over the preparation of the GAAP based financial statements for management or
employees in the normal course of performing their assigned functions to prevent or detect
financial statement misstatements and disclosure omissions in a timely manner. For example,
auditors, in their review of the Regional Office’s accounting records, noted the following:
• The Regional Office was unable to provide accurate trial balances and footnote
disclosures to present financial statements in accordance with generally accepted
accounting principles.
• The fiscal year 2010 beginning fund balances in the accounting records provided to
auditors did not agree to the prior year’s ending fund balance for some of the accounts
due to prior year adjusting journal entries not being recorded correctly. Additional
adjusting entries were necessary to correct the accounting records.
16
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2010
Section II: Financial Statement Findings:
Finding No. 10-3 – Controls Over Financial Statement Preparation (Repeat from 2009-No.
09-3, 2008-No. 08-1 and 2007-No. 07-9) (Concluded)
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.
Auditor’s Recommendation:
As part of its internal control over the preparation of its financial statements, including
disclosures, the Regional Office of Education #46 should implement a comprehensive
preparation and/or review procedure to ensure that the financial statements, including
disclosures, are complete and accurate. Such procedures should be performed by a properly
trained individual(s) possessing a thorough understanding of applicable generally accepted
accounting principles, GASB pronouncements, and knowledge of the Regional Office of
Education’s activities and operations.
Management’s Response:
The ROE has made great strides in improving its year-ending general ledger. We continue to
improve our system in an effort to meet the necessary requirements. We are limited as to what
adjusting journal entries can be made as our accounting system does not allow us to add new
accounts to our chart of accounts going back to prior fiscal years. We made efforts to try to book
all audit adjustments proposed by auditors but were limited due to the system limitations, which
was understood between the auditing team and the ROE. We understand errors were made and
will continue to improve our review. Due to continued funding limitations and uncertainties, the
ROE does not foresee the ability to hire a CPA to prepare full financial statements for future
audits.
17
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2010
Section III: Federal Award Findings:
Not Applicable
18
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS
Year Ended June 30, 2010
Finding No. 10-1 Controls Over Compliance with Laws and Regulations
(Repeat from 2009-No. 09-1)
Condition:
The Regional Office of Education #46 did not document its review and approval of all building
plans and specifications as required by 105 ILCS 5/3-14.20. During testing of 8 building plans
and specifications submitted to the Regional Office by school districts, auditors noted the
following:
• 5 of 8 building plans submitted lacked required documentation showing Regional Office
inspection.
• 1 of 8 building plan inspections did not have the Regional Superintendent’s signature on
the building permit.
• The Regional Office did not maintain its own listing of building inspection submissions.
It relied on a listing from the Illinois State Board of Education (ISBE) website that did
not clearly identify submissions for building inspections.
Plan:
The ROE has acquired more training for all involved in this process and will continue to seek
outside affirmation that the processes that are currently in place do the job of adequately
accounting for all paperwork that needs to be done.
Anticipated Date of Completion:
These changes are already in place.
Name of Contact Person:
Honorable Jeff Stephens, Regional Superintendent
19
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS
Year Ended June 30, 2010
Finding No. 10-2 – Inadequate Controls Over Property and Equipment
Condition:
The Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 did not have
adequate controls over fixed assets.
The inventory listing provided by the Regional Office was inaccurate and incomplete. We noted
the following:
• Many items on the inventory listings did not include all information required by the ROE
Accounting Manual and the Illinois State Board of Education’s State and Federal Grant
Administration Policy and Fiscal Requirements and Procedures.
• There were many inconsistencies in the inventory listings and many items lacked
sufficient detailed descriptions and information for identification.
• 2 items from the fixed asset listing did not have the correct values assigned at the time of
donation.
Plan:
The ROE is continuing to review and revise its inventory and equipment oversight to meet the
necessary requirements.
Anticipated Date of Completion:
By fiscal year-end 2012
Name of Contact Person:
Honorable Jeff Stephens, Regional Superintendent
20
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS
Year Ended June 30, 2010
Finding No. 10-3 – Controls Over Financial Statement Preparation (Repeat from 2009-No.
09-3, 2008-No. 08-1 and 2007-No. 07-9)
Condition:
The Regional Office of Education #46 did not have sufficient internal controls over the financial
reporting process. The Regional Office maintains their accounting records on the cash basis of
accounting during the year and records accruals at year end. While the Regional Office
maintains controls over the processing of most accounting transactions, there were not sufficient
controls over the preparation of the GAAP based financial statements for management or
employees in the normal course of performing their assigned functions to prevent or detect
financial statement misstatements and disclosure omissions in a timely manner. For example,
auditors, in their review of the Regional Office’s accounting records, noted the following:
• The Regional Office was unable to provide accurate trial balances and footnote
disclosures to present financial statements in accordance with generally accepted
accounting principles.
• The fiscal year 2010 beginning fund balances in the accounting records provided to
auditors did not agree to the prior year’s ending fund balance for some of the accounts
due to prior year adjusting journal entries not being recorded correctly. Additional
adjusting entries were necessary to correct the accounting records.
Plan:
The ROE will continue to review and make improvements to year-end general ledger integrity.
Anticipated Date of Completion:
By fiscal year-end 2012
Name of Contact Person:
Honorable Jeff Stephens, Regional Superintendent
21
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
June 30, 2010
Finding No. Condition Current Status
09-1 Controls Over Compliance with Laws and Repeated
Regulations
09-2 Inadequate Internal Control Procedures See Note Below
09-3 Controls Over Financial Statement Preparation Repeated
Note: Although the Regional Office of Education #46 has not fully implemented the corrective
action plan associated with this finding during fiscal year 2010, they have made significant
progress in addressing the condition. Therefore, the effect of the condition is inconsequential to
the specific programs and the overall financial statements and is now being addressed with
management in a separate letter dated December 14, 2011.
BASIC FINANCIAL STATEMENTS
EXHIBIT A
Governmental
Activities Total
Current:
Cash and cash equivalents $ 4 58,702 $ 4 58,702
Accounts receivable 1 69,579 1 69,579
Due from other governments 153,321 153,321
Total current assets 7 81,602 7 81,602
Noncurrent:
Capital assets, being depreciated, net 3 5,708 3 5,708
Total assets 8 17,310 8 17,310
LIABILITIES
Current:
Accounts payable 1 38,253 1 38,253
Due to other governments 4 3,946 4 3,946
Deferred revenue 3 ,864 3 ,864
Total liabilities 1 86,063 1 86,063
NET ASSETS
Investment in capital assets, net of related debt 3 5,708 3 5,708
Unrestricted 5 79,566 5 79,566
Restricted for teacher professional development 1 5,973 1 5,973
Total net assets $ 631,247 $ 631,247
ASSETS
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
STATEMENT OF NET ASSETS
June 30, 2010
Primary
Government
The notes to the financial statements are an integral part of this statement.
22
EXHIBIT B
Program
Revenues
Operating Grants Governmental
FUNCTIONS/PROGRAMS Expenses and Contributions Activities Total
Primary government:
Governmental activities:
Education:
Salaries $ 1,057,497 $ 825,560 $ (231,937) $ (231,937)
Benefits 176,710 137,953 (38,757) (38,757)
Purchased services 315,044 245,947 (69,097) (69,097)
Supplies and materials 64,661 50,479 (14,182) (14,182)
Capital outlay - - - -
Miscellaneous 30,843 24,078 (6,765) (6,765)
Payments to other governments 1,321 1,032 (289) (289)
Depreciation expense 11,932 - (11,932) (11,932)
Administrative:
On-behalf payments 385,195 - (385,195) (385,195)
Total primary government 2,043,203 1,285,049 (758,154) (758,154)
General revenues:
Local sources 261,013 261,013
Interest income 8,505 8,505
Contributions not restricted to specific program 6,147 6,147
On-behalf payments 385,195 385,195
Total general revenues 660,860 660,860
CHANGE IN NET ASSETS (97,294) (97,294)
NET ASSETS, BEGINNING OF YEAR 728,541 728,541
NET ASSETS, END OF YEAR $ 631,247 $ 631,247
Changes in Net Assets
Primary Government
Year Ended June 30, 2010
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
STATEMENT OF ACTIVITIES
Net (Expenses) Revenues and
The notes to the financial statements are an integral part of this statement.
23
EXHIBIT C
Alternative Other Total
General Education Schools Nonmajor Governmental
Fund Fund Fund Funds Funds
ASSETS
Cash and cash equivalents $ 5 3,310 $ 9 1,434 $ 282,538 $ 31,420 $ 458,702
Accounts receivable 1 60,886 6,000 2,543 150 169,579
Due from other governments 3 1,500 1 21,821 - - 153,321
Due from other funds - - 265,682 - 265,682
TOTAL ASSETS 245,696 219,255 550,763 31,570 1,047,284
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable 7,913 6 2,887 54,880 12,573 138,253
Due to other governments - 4 3,946 - - 43,946
Due to other funds 1 71,203 9 3,315 1,014 150 265,682
Deferred revenue 9 7,444 8 6,178 - - 183,622
Total liabilities 2 76,560 2 86,326 55,894 12,723 631,503
FUND BALANCES
Unreserved, reported in:
General fund (30,864) - - - ( 30,864)
Special revenue funds - (67,071) 494,869 18,847 446,645
Total fund balances (30,864) (67,071) 494,869 18,847 415,781
TOTAL LIABILITIES AND FUND BALANCES $ 245,696 $ 219,255 $ 550,763 $ 31,570 $ 1,047,284
June 30, 2010
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
BALANCE SHEET
GOVERNMENTAL FUNDS
The notes to the financial statements are an integral part of this statement.
24
EXHIBIT D
Total fund balances - governmental funds (page 24) $ 415,781
Amounts reported for governmental activities in the
Statement of Net Assets are different because:
Capital assets used in governmental activities are not
financial resources and, therefore, are not reported
in the funds. 35,708
Some revenues will not be collected for several months
after the Regional Office's fiscal year ends, they are
not considered "available" revenues and are deferred
in the governmental funds. 179,758
Net assets of governmental activities (page 22) $ 631,247
June 30, 2010
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
The notes to the financial statements are an integral part of this statement.
25
EXHIBIT E
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Alternative Other Total
General Education Schools Nonmajor Governmental
Fund Fund Fund Funds Funds
REVENUES:
Local sources $ 224,746 $ 114 $ 13,833 $ 22,320 $ 261,013
State sources 241,285 167,706 472,674 4,632 886,297
Federal sources - 96,883 122,111 - 218,994
Interest income 994 488 6,624 399 8,505
On-behalf payments 385,195 - - - 385,195
Total revenues 852,220 265,191 615,242 27,351 1,760,004
EXPENDITURES:
Current:
Education:
Salaries 348,859 213,814 488,171 6,653 1,057,497
Benefits 46,081 38,884 89,721 2,024 176,710
Purchased services 125,320 110,136 63,996 15,592 315,044
Supplies and materials 9,112 15,234 31,387 8,928 64,661
Miscellaneous 12,297 4,108 3,044 11,394 30,843
Payments to other governments - 1,321 - - 1,321
On-behalf payments 385,195 - - - 385,195
Capital outlay - - - - -
Total expenditures 926,864 383,497 676,319 44,591 2,031,271
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (74,644) (118,306) (61,077) (17,240) (271,267)
OTHER FINANCING SOURCES (USES):
Transfers in 16,013 30,449 87,243 5,914 139,619
Transfers out (21,690) (3,253) (114,676) - (139,619)
Total other financing sources (uses) (5,677) 27,196 (27,433) 5,914 -
NET CHANGES IN FUND BALANCES (80,321) (91,110) (88,510) (11,326) (271,267)
FUND BALANCES, BEGINNING OF YEAR 49,457 24,039 583,379 30,173 687,048
FUND BALANCES, END OF YEAR $ (30,864) $ (67,071) $ 494,869 $ 18,847 $ 415,781
Year Ended June 30, 2010
The notes to the financial statements are an integral part of this statement.
26
EXHIBIT F
Net change in fund balances (page 26) $ (271,267)
Amounts reported for governmental activities in the
Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However,
in the Statement of Activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense.
Capital outlay $ -
Depreciation expense (11,932) (11,932)
Contributed capital asset recorded in government-wide
Financial Statements, not Fund Financial Statements 6,147
Some revenues will not be collected for several months
after the Regional Office's fiscal year ends, they are
not considered "available" revenues and are deferred
in the governmental funds. 179,758
Change in net assets of governmental activities (page 23) $ (97,294)
Year Ended June 30, 2010
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
GOVERNMENTAL FUNDS
CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
The notes to the financial statements are an integral part of this statement.
27
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET ASSETS
June 30, 2010
Exhibit G
Agency
Fund
ASSETS
Due from other governments $ 127,797
TOTAL ASSETS $ 127,797
LIABILITIES
Due to other governments $ 127,797
TOTAL LIABILITIES $ 127,797
The notes to the financial statements are an integral part of this statement.
28
29
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 is an entity that
is a result of two Educational Service Regions becoming a Regional Office of Education as of
August 7, 1995. The Brown, Cass, Morgan, and Scott Counties Regional Office of Education
#46 operates under the School Code (105 ILCS 5/3 and 5/3A). The Regional Office of
Education #46 encompasses the Brown, Cass, Morgan, and Scott Counties, Illinois. A Regional
Superintendent of Schools serves as Chief Administrative Officer of the Regional Office of
Education #46 and is elected pursuant to 105 ILCS 5/3 and 5/3A of the School Code. The
principal financial duty of the Regional Superintendent is to receive and distribute monies due to
school districts from general State aid, State categorical grants, and various other sources.
The functions of the Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46
include, but are not limited to the following:
• processing teachers’ certificates;
• teaching initial and refresher classes for school bus drivers within the Brown, Cass, Morgan,
and Scott Counties Regional Office of Education #46;
• reviewing life/safety requirements for schools in conjunction with the State of Illinois;
• issuing newsletters regarding new Illinois life/safety requirements; and
• monitoring compliance with State laws and Department of Education policies and
procedures.
The Regional Superintendent’s responsibilities for administering the school educational service
region programs include, but are not limited to: providing directions to teachers and school
officials on science, art and teaching methods; implementing the State Board of Education’s Policy
Programs; encouraging camaraderie among teachers through the teachers’ institute; making public
notice of unfilled teaching positions within the region; and ensuring of the safety, health, and
welfare of the students in the region by periodically inspecting the school buildings and ensuring
that the bus drivers have valid driving licenses and are properly trained to operate the school buses.
The Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 has no
distributive fund since the State of Illinois maintains responsibility for the function of
distributing State and federal aid to individual school districts.
The financial statements of the Brown, Cass, Morgan, and Scott Counties Regional Office of
Education #46 have been prepared in conformity with generally accepted accounting principles
(GAAP) as applied to governmental units. The following is a summary of the significant
accounting policies:
For financial reporting purposes, the Brown, Cass, Morgan, and Scott Counties Regional Office
of Education #46 has included all funds, organizations, agencies, boards, commissions and
authorities. The Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 has
also considered all potential component units for which it is financially accountable and other
organizations for which the nature and significance of their relationship with the Brown, Cass,
Morgan, and Scott Counties Regional Office of Education #46 are such that exclusion would
cause the Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46’s
30
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
A. Reporting Entity (Concluded)
financial statements to be misleading or incomplete. The Governmental Accounting Standards
Board has set forth criteria to be considered in determining financial accountability. These
criteria include appointing a voting majority of an organization’s governing body and (1) the
ability of the Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 to
impose its will on that organization or (2) the potential for the organization to provide specific
benefits to or impose specific financial burdens on the Brown, Cass, Morgan, and Scott Counties
Regional Office of Education #46. The Brown, Cass, Morgan, and Scott Counties Regional
Office of Education #46 has no component units that meet the Governmental Accounting
Standards Board criteria and is not a component unit of any other entity.
B. Basis of Presentation
Government-wide Financial Statements - The Statement of Net Assets and the Statement of
Activities report information on all of the activities of the Brown, Cass, Morgan, and Scott
Counties Regional Office of Education #46. For the most part, the effect of interfund activity
has been removed from these statements. Governmental activities are normally supported by
intergovernmental and local revenues.
The Statement of Net Assets presents the Brown, Cass, Morgan, and Scott Counties Regional
Office of Education #46’s nonfiduciary assets and liabilities, with the difference reported as net
assets. Net assets are reported in three categories:
Invested in capital assets, net of related debt consist of capital assets, net of accumulated
depreciation and reduced by outstanding balances for any debt attributable to the acquisition,
construction or improvement of those assets.
Restricted net assets result when constraints placed on net asset use are either externally imposed
or imposed by law through constitutional provisions or enabling legislation.
Unrestricted net assets consist of net assets that do not meet the definition of the two preceding
categories. Unrestricted net assets often have constraints on resources imposed by management
that can be removed or modified.
The Statement of Activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those clearly
identifiable with a specific function. Program revenues include: 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges provided by
a given function and 2) grants, contributions, and interest restricted to meeting the operational
requirements of a particular function. Other items not properly included among program
revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, and fiduciary funds, even
though the latter are excluded from the government-wide financial statements.
31
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Basis of Presentation (Continued)
Fund Financial Statements - Separate financial statements are provided for governmental
funds. Major individual governmental funds are reported as separate columns in the fund
financial statements. All remaining governmental funds are aggregated and reported as
nonmajor governmental funds.
Governmental Funds
Governmental funds are those through which most governmental functions are financed. The
acquisition, use, and balances of the expendable financial resources and the related current
liabilities are accounted for through governmental funds.
General Fund - The General Fund is the operating fund of the Brown, Cass, Morgan, and
Scott Counties Regional Office of Education #46. The General Fund accounts for all
financial resources except those required to be accounted for in another fund. The
following funds comprise the General Fund:
County Support – to account for local revenues and disbursements related to
County support.
ROE/ISC Operations - to account for a grant that provides operating funds for the
Region.
Gifted District Fund – to account for local revenues and disbursements related to
the Gifted education program.
School Directory – to account for local revenues and disbursements related to
publishing the school directory.
Teacher Certification Information Systems – to account for revenue received from
the Illinois State Board of Education to administrate the completion of system
improvements to the State teacher certification software program.
Spelling Bee Fund – to account for local area business donations that provide
funding related to operating spelling bee events.
Media Center – to account for library and video materials available to all the
districts in the Region.
Identix Fingerprinting Fund - to account for a fee assessed to Districts and the
expenses associated with providing background check/fingerprinting services.
Star Online – agreement between Western Illinois University and Regional Office
of Education #46 to help area teachers sign up and receive online professional
development at a reduced rate.
32
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Governmental Funds (Continued)
Illinois School for the Deaf –Contracted arrangement with Illinois School for the
Deaf (ISD) and Illinois Department of Human Services to provide payrolling
services for contracted ISD substitute teachers.
Illinois School for the Visually Impaired – Contracted arrangement with Illinois
School for the Visually Impaired (ISVI) and Illinois Department of Human
Services to provide payrolling services for contracted ISVI substitute teachers.
Special Revenue Funds - to account for the proceeds of specific revenue sources (other
than fiduciary or major capital projects) that are legally restricted to expenditure for
specified purposes. The major special revenue funds include the following:
Education Fund – to account for State and federal grant monies received for, and
payment of, expenditures incurred in administering numerous grant awards which
include:
ROE School Improvement Fund - to account for costs associated with improving
school programs and policies for the districts within the Region.
Dental Sealant Fund - to account for the costs associated with providing the dental
sealant program to Morgan and Scott County schools.
Truants Alternative/Optional Education Fund - to account for a grant that
provides truancy guidance and alternative education options for applicable
students within the Region.
Regional Safe Schools Fund - to account for a grant that provides additional staff
and materials for the alternative schools in the Region.
Title I –School Improvement and Accountability - RESPRO - to account for a
grant that provides training for various school improvement approaches within the
Region.
Title I - Reading First Part B SEA Fund - to account for a grant that promotes the
importance of reading development for the students within the Region.
McKinney Education for Homeless Children Fund - to account for a grant that
provides assistance for homeless children within school districts.
Standards Aligned Classroom Fund - to account for reimbursements for providing
services to schools for aligning classrooms to the standards.
33
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Governmental Funds (Continued)
Title II – Teacher Quality – RESPRO – to account for a grant to provide Title II
coaches to assist Title II Schools with professional development.
Title IV - Safe and Drug Free Schools - Formula Fund - to account for a grant to
provide teachers with professional development opportunities related to
maintaining a safe and drug free school.
Title II - Teacher Quality Fund - to account for a grant to provide professional
development opportunities for teachers.
Lice Busters Fund - to account for a grant that provides lice treatment for students
within the Region.
Title III- English Language Learners – Federal grant to provide professional
development and training to local rural districts on State and federal laws related
to serving English Language Learner students.
Feasibility Study – to account for State funding received for a feasibility study for
possible district consolidation between Meredosia-Chambersburg, Virginia, and
Triopia Schools.
Gifted Education – to account for State funding to administrate the Gifted
Education program in ROE #46’s four counties.
American Recovery and Reinvestment Act (ARRA) Homeless - Federal funds to
pay qualifying expenses associated with McKinney Education for Homeless
Assistance Act.
Alternative Schools Fund - to account for the activities and programs of the alternative
schools within the Region. The following funds comprise the Alternative Schools Fund:
Registration Fees Fund – to account for local revenues and disbursements related
to the alternative school programs.
Paid Lunches Fund – to account for local revenues and disbursements related to
school lunches.
State Lunch Fund – to account for state revenues and disbursements related to
school lunches.
National School Lunch Fund – to account for federal revenues and disbursements
related to school lunches.
School Breakfast Fund – Federal funds to help offer breakfast programs to the
two alternative schools.
34
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Governmental Funds (Concluded)
Truants Alternative/Optional Education State Aid Fund – to account for General
State Aid revenues and disbursements associated with the Truants
Alternative/Optional Education Program (TAOEP).
Alternative Resource Center (ARC) – State Aid Fund – to account for General
State Aid revenues and disbursements associated with the ARC Safe Schools
Program.
Truants Alternative/Optional Education Program - ARRA State Aid – Federal
funds to pay State Aid claims associated with Truants Alternative/Optional
Education Program (TAOEP).
Alternative Resource Center (ARC) - ARRA State Aid – Federal funds to pay
State Aid claims associated with ARC Safe Schools Program.
Nonmajor Special Revenue Funds - the following special revenue funds are non-major
governmental funds:
Institute Fund - to account for activities associated with the recertification process
for teachers, and expenses of meetings of a professional nature. All funds
generated remain restricted until expended only on the aforementioned activities.
Bus Driver Fund - to account for the testing and training of bus drivers for the
districts within the Region.
General Education Development Fund - to account for administration of General
Education Development testing for applicants within the Region.
Supervisory Fund - to account for monies that are used by the Regional
Superintendent and the Assistant Regional Superintendent for travel and other
related expenses.
Job Bank Fund- to account for a fee assessed to districts and the expenses
associated with posting job openings on the State website.
Fiduciary Funds
Agency Funds - are used to account for assets held in a trustee capacity or as an agent for
individuals, private, or governmental organizations. These funds are custodial in nature (assets
equal liabilities) and do not involve measurement of results of operations. Agency Funds include
the following:
35
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
School Facility Occupation Tax – 1 percent sales tax collected in Cass County for
school facility maintenance and improvements to be distributed to the following
districts: A-C Central, Beardstown, Meredosia-Chambersburg, PORTA, Triopia,
and Virginia.
C. Measurement Focus and Basis of Accounting
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
Governmental fund and fiduciary financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered to be
available when they are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the government considers revenues to be
available if they are collected within 60 days after year end. 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 generally recorded when a liability is incurred, as under accrual accounting. In
applying the susceptible to accrual concept to intergovernmental revenues, the legal and
contractual requirements of the numerous individual programs are used as guidance. Capital
asset acquisitions are reported as expenditures in governmental funds.
There are, however, essentially two types of these revenues. In one, monies must be expended
on the specific purpose or project before any amounts will be paid; therefore, revenues are
recognized based upon the expenditures recorded. In the other, monies are virtually unrestricted
as to purpose of expenditure and are usually revocable only for failure to comply with prescribed
compliance requirements. These resources are reflected as revenues at the time of receipt or
earlier if the susceptible to accrual criteria are met. All other revenue items are considered to be
measurable and available only when cash is received by the Brown, Cass, Morgan, and Scott
Counties Regional Office of Education #46.
The Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 records on-behalf
payments made by the State to the Teachers’ Retirement System as revenue and
expenditures.
Under the terms of grant agreements, the Brown, Cass, Morgan, and Scott Counties Regional
Office of Education #46 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 the Brown,
Cass, Morgan, and Scott Counties Regional Office of Education #46’s policy to first apply cost-reimbursement
grant resources to such programs, and then general revenues.
36
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
. D. Assets, Liabilities, and Fund Equity (Continued)
The following accounting policies are followed in preparing the balance sheet:
Cash and cash equivalents - Brown, Cass, Morgan, and Scott Counties Regional Office of
Education #46 considers all investments in certificates of deposit with maturities within
one year to be cash equivalents.
Inventory – Inventory is not recorded. The cost is recorded as an expenditure at the time
individual inventory items are purchased.
Capital assets - Capital assets, which include furniture and equipment, are reported in the
government-wide Statement of Net Assets. Capital assets are recorded at historical cost.
Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repair that do not add to the value of the asset or
materially extend asset lives are not capitalized. Capital assets are defined by the Brown,
Cass, Morgan, and Scott Counties Regional Office of Education #46 as assets with an
initial, individual cost in excess of $500 and estimated useful lives in excess of two years.
Capital assets are depreciated using the straight line method over 5-10 years.
Deferred revenue - Although certain revenues are measurable, they are not available.
Available means collected within the current period or expected to be collected soon
enough thereafter to be used to pay liabilities of the current period. Deferred revenue in
the governmental fund financial statements represents the amount of assets that have been
recognized, but the related revenue has not been recognized since the assets are not
collected within the current period or expected to be collected soon enough thereafter to
be used to pay liabilities of the current period. Deferred revenue consists of unexpended
grant proceeds.
Compensated absences – Regular full-time employees who work 12 calendar months
earn up to 20 vacation days for a full year of service. Employees who work less than 12
calendar months per year do not earn vacation days. Any accruals of June 30th are
considered immaterial by management and are not reflected in the basic financial
statements. Employees receive up to 10 sick days annually and the unused portion is
accumulated up to 180 days and carried forward. Employee sick leave is recorded when
paid. Upon termination, employees do not receive any accumulated sick leave pay, and
therefore, no liability is accrued.
Fund equity - In the governmental fund financial statements, reservations of fund balance
are reported for amounts that are not available for appropriation or are legally restricted
by outside parties for use for a specific purpose.
Restricted net assets - In the government-wide Statement of Net Assets, net assets are
reported as restricted when constraints placed on net asset use are either externally
imposed by creditors, grantors, contributors or laws and regulations of other governments
or imposed by law through constitutional provisions or enabling legislation.
37
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concluded)
D. Assets, Liabilities, and Fund Equity (Concluded)
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.
E. Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as supplementary information.
The Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 did not
formally adopt a budget for the year ended June 30, 2010 and is not legally required to do so.
The Illinois State Board of Education and Department of Human Services require budgets for
certain programs. These budgets were used to prepare budgetary comparison schedules for the
following programs: ROE/ISC Operations Fund, Truants Alternative/Optional Education Fund,
Regional Safe Schools Fund, Title I-Reading First Part B SEA Fund, Title IV- Safe and Drug
Free Schools – Formula Fund, and Title II - Teacher Quality Fund, Title III-English Language
Learners, and Gifted Education.
NOTE 2 - DEPOSITS AND INVESTMENTS
The deposit and investment of monies is governed by the provisions of the Illinois Compiled
Statutes (30 ILCS-235/2 and 6 and 105 ILCS-5/8-7). At June 30, 2010, the carrying amount of
the government-wide and agency funds deposits were $458,702 and $0, respectively and the bank
balances were $554,967 and $0 respectively.
Deposits
Custodial credit risk - Custodial credit risk is the risk that in the event of a bank failure, Brown,
Cass, Morgan, and Scott Counties Regional Office of Education #46’s deposits may not be
returned. Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 does not
have a deposit policy for custodial credit risk. Of the total bank balances as of June 30, 2010,
$416,594 was secured by federal depository insurance and $130,000 was collateralized by
securities pledged by the Regional Office of Education #46’s financial institution on behalf of
the Regional Office.
38
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 2 - DEPOSITS AND INVESTMENTS (Concluded)
Investments
Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 does not have a
formal investment policy, as its only investments are internally pooled in the Illinois Funds
Money Market Fund. As of June 30, 2010, Brown, Cass, Morgan, and Scott Counties Regional
Office of Education #46 had investments with carrying and fair values of $8,372 invested in the
Illinois Funds Money Market Fund.
Credit risk - At June 30, 2010 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 provisions 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.
NOTE 3 - DUE FROM/TO OTHER GOVERNMENTS
The due from/to other governments for governmental funds is all due from/to the Illinois State
Board of Education. The agency fund due to other governments is due to school districts in Cass
County. The Regional Office of Education #46’s due from/to other governments at June 30,
2010 consists of the following:
Due Due
Governmental Funds From To
General Fund
ROE/ISC Operations $ 31,500 $ -
Education Fund
Truants Alternative/Optional Education Fund 62,018 -
Regional Safe Schools Fund 57,222 -
Title I – Reading First Part B SEA Fund - 6,339
Title II – Teacher Quality -RESPRO - 3,806
McKinney Education for Homeless Children Fund 2,525 -
Title III – English Language Learners 56 -
Gifted Education - 33,801
Agency Fund
School Facility Occupation Tax 127,797 127,797
Total $ 281,118 $171,743_
39
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 4 - CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2010 is as follows:
Depreciation expense was charged as follows:
Governmental activities:
Depreciation expense $ 11,932
Investment in capital assets is the component of net assets that reports capital assets net of
accumulated depreciation.
NOTE 5 – OPERATING LEASE
Brown, Cass, Morgan, and Scott Counties Regional Office of Education #46 has not entered into
any capital lease agreements as lessee for financing. The Regional Office of Education entered
into three rental agreements and one operating lease agreement all which are renewable annually.
Rent expense for FY 2010 was $44,600. These agreements were for the Regional Office of
Education’s Beardstown Office, Lafayette Center/Alternative Resource Center (ARC) in
Jacksonville, the Jefferson Center, and the Regional Office of Education’s Jacksonville Office.
NOTE 6 – DEFINED BENEFIT PENSION PLAN
Teacher’s Retirement System of the State of Illinois
The Regional Office of Education #46 participates in the Teachers’ Retirement System of the
State of Illinois (TRS). TRS is a cost-sharing multiple-employer defined benefit pension plan
that was created by the Illinois legislature for the benefit of Illinois public school teachers
employed outside the city of Chicago. The Illinois Pension Code outlines the benefit provisions
of TRS, and amendments to the plan can be made only by legislative action with the Governor’s
approval. The State of Illinois maintains the primary responsibility for funding the plan, but
contributions from participating employers and members are also required. The TRS Board of
Trustees is responsible for the system’s administration.
TRS members include all active non-annuitants who are employed by a TRS-covered employer
to provide services for which teacher certification is required. The active member contribution
rate for the year ended June 30, 2010, was 9.4 percent of creditable earnings. These
contributions, which may be paid on behalf of employees by the employer, are submitted to TRS
by the employer. The active member contribution rate was also 9.4 percent for the years ended
June 30, 2009 and 2008.
The State of Illinois makes contributions directly to TRS on behalf of the Regional Office of
Education #46’s TRS-covered employees.
Balance
July 1, 2009 Additions Deletions
Balance
June 30, 2010
Governmental Activities:
Furniture and equipment $ 99,919 $ 6,147 $ - $ 106,066
Less accumulated depreciation 58,426 11,932 - 70,358
Total capital assets, net $ 41,493 $ (5,785) $ - $ 35,708
40
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 6 – DEFINED BENEFIT PENSION PLAN (Continued)
• On-behalf Contributions to TRS. The State of Illinois makes employer pension contributions
on behalf of the Regional Office of Education #46. For the year ended June 30, 2010, the
State of Illinois contributions were based on 23.38 percent of creditable earnings not paid
from federal funds, and the Regional Office of Education #46, recognized revenue and
expenditures of $172,784 in pension contributions that the State of Illinois paid directly to
TRS. For the years ended June 30, 2009 and June 30, 2008, the State of Illinois contribution
rates as percentages of creditable earnings not paid from federal funds were 17.08 percent
($127,376) and 13.11 percent ($35,978), respectively.
The Regional Office of Education #46 makes other types of employer contributions directly to
TRS.
• 2.2 Formula Contributions. Employers contribute 0.58 percent of total creditable earnings
for the 2.2 formula change. The rate is specified by statute. Contributions for the year ended
June 30, 2010 were $3,224. Contributions for the years ending June 30, 2009 and June 30,
2008, were $3,263 and $2,358, respectively.
• Federal and Special Trust Fund Contributions. When TRS members are paid from federal
and special trust funds administered by the Regional Office of Education #46, there is a
statutory requirement for the Regional Office of Education #46 to pay an employer pension
contribution from those funds. Under a policy adopted by the TRS Board of Trustees that
was first effective for the fiscal year ended June 30, 2006, employer contributions for
employees paid from federal and special trust funds will be the same as the State contribution
rate to TRS. For the year ended June 30, 2010, the employer pension contribution was 23.38
percent of salaries paid from federal and special trust funds. For the years ended June 30,
2009 and June 30, 2008, the employer contribution was 17.08 percent and 13.11 percent of
salaries paid from federal and special trust funds, respectively. For the year ended June 30,
2010, salaries totaling $23,000 were paid from federal and special trust funds that required
Regional Office of Education #46 employer contributions of $5,377. For the years ended
June 30, 2009 and June 30, 2008, there were no salaries paid from federal and special trust
funds.
• Early Retirement Option (ERO). The Regional Office of Education #46 is also required to
make one-time employer contributions to TRS for members retiring under the Early
Retirement Option (ERO). The payments vary depending on the age and salary of the
member.
Public Act 94-0004 made changes in the ERO program that were in effect for all ERO
retirements in fiscal years 2008 through 2010. The act increased member and employer
contributions and eliminated the waiver of member and employer ERO contributions that had
been in effect for members with 34 years of service. Under the current ERO, the maximum
employer contribution is 117.5 percent and applies when the member is age 55 at retirement.
41
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 6 – DEFINED BENEFIT PENSION PLAN (Continued)
For the year ended June 30, 2010, the Regional Office of Education #46 paid $0 to TRS for
employer contributions under the ERO program. For the years ended June 30, 2009 and June
30, 2008, the Regional Office of Education #46 paid $0 in employer ERO contributions.
• Salary Increases Over 6 Percent and Excess Sick Leave. Public Act 94-0004 added two
additional employer contributions to TRS.
- If an employer grants salary increases over 6 percent and those salaries are used to
calculate a retiree’s final average salary, the employer makes a contribution to TRS.
The contribution will cover the difference in actuarial cost of the benefit based on
actual salary increases and the benefit based on salary increases of up to 6 percent.
For the years ended June 30, 2010, June 30, 2009, and June 30, 2008, the Regional
Office of Education #46 paid $0 to TRS for employer contributions due on salary
increases in excess of 6 percent.
- If an employer grants sick leave days in excess of the normal annual allotment and
those days are used as TRS service credit, the employer makes a contribution to TRS.
The contribution is based on the number of excess sick leave days used as service
credit, the highest salary used to calculate final average salary, and the TRS total
normal cost rate (18.55 percent of salary during the year ended June 30, 2010). For
the years ended June 30, 2010, June 30, 2009, and June 30, 2008, the Regional Office
of Education #46 paid $0 in employer contributions granted for sick leave days.
Further Information on TRS. TRS financial information, an explanation of TRS benefits, and
descriptions of member, employer and State funding requirements can be found in the TRS
Comprehensive Annual Financial Report for the year ended June 30, 2009. The report for the
year ended June 30, 2010, was available in early 2011. The reports may be obtained by writing
to the Teachers’ Retirement System of the State of Illinois, P.O. Box 19253, 2815 West
Washington Street, Springfield, IL 62794-9253. The most current report is also available on the
TRS Web site at www.trs.illinois.gov.
Illinois Municipal Retirement Fund
Plan Description. The Brown, Cass, Morgan, and Scott Counties Regional Office of Education
#46’s defined benefit pension plan for Regular employees provides retirement and disability
benefits, post retirement increases, and death benefits to plan members and beneficiaries. The
Regional Office of Education #46’s plan is affiliated with the Illinois Municipal Retirement Fund
(IMRF), an agent multiple-employer plan. Benefit provisions are established by statute and may
only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly
available financial report that includes financial statements and required supplementary
information. That report may be obtained on-line at www.imrf.org.
42
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 6 – DEFINED BENEFIT PENSION PLAN (Continued)
Funding Policy. As set by statute, the Regional Office of Education #46’s Regular plan
members are required to contribute 4.50 percent of their annual covered salary. The statute
requires employers to contribute the amount necessary, in addition to member contributions, to
finance the retirement coverage of its own employees. The employer contribution rate for
calendar year 2009 was 7.79 percent of annual covered payroll. The Regional Office of
Education #46 also contributes for disability benefits, death benefits, and supplemental
retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability
and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement
benefits rate is set by statute.
Annual Pension Cost. For fiscal year ending December 31, 2009, the Regional Office of
Education #46’s annual pension cost of $29,200 for the Regular plan was equal to Regional
Office of Education #46’s required and actual contributions.
Three-Year Trend Information for the Regular Plan
Fiscal Percentage
Year Annual Pension of APC Net Pension
Ending Cost (APC) Contributed Obligation
12/31/09 $ 29,200 100% $ 0
12/31/08 30,224 100% 0
12/31/07 24,643 100% 0
The required contribution for 2009 was determined as part of the December 31, 2007, actuarial
valuation using the entry age normal actuarial cost method. The actuarial assumptions at
December 31, 2007, included (a) 7.5 percent investment rate of return (net of administrative and
direct investment expenses), (b) projected salary increases of 4.00% a year, attributable to
inflation, (c) additional projected salary increases ranging from 0.4% to 10 % per year depending
on age and service, attributable to seniority/merit, and (d) post-retirement benefit increases of 3%
annually. The actuarial value of the Regional Office of Education #46’s Regular plan assets was
determined using techniques that spread the effects of short-term volatility in the market value of
investments over a five-year period with a 15% corridor between the actuarial and market value
of assets. The Regional Office of Education #46’s Regular plan’s unfunded actuarial accrued
liability is being amortized as a level percentage of projected payroll on a closed basis. The
remaining amortization period at the December 31, 2007, valuation was 5 years.
Funded Status and Funding Progress. As of December 31, 2009, the most recent actuarial
valuation date, the Regular plan was 83.38 percent funded. The actuarial accrued liability for
benefits was $862,265 and the actuarial value of assets was $718,914, resulting in an
underfunded actuarial accrued liability (UAAL) of $143,351. The covered payroll (annual
payroll of active employees covered by the plan) was $374,843 and the ratio of the UAAL to the
covered payroll was 38 percent. In conjunction with the December 2009 actuarial valuation the
market value of investments was determined using techniques that spread the effect of short-term
volatility in the market value of investments over a five-year period with a 20% corridor between
the actuarial and market value of assets. In 2010, the unfunded actuarial accrued liability is
being amortized on a level percentage of projected payroll on an open 10 year basis.
43
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 6 – DEFINED BENEFIT PENSION PLAN (Concluded)
The schedule of funding progress, presented as RSI following the notes to the financial
statements, presents multiyear trend information about whether the actuarial value of plan assets
is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
NOTE 7 - OTHER POSTEMPLOYMENT BENEFITS
Illinois Municipal Retirement Fund
The Regional Office has evaluated its potential other post employment benefits liability. Former
employees who choose to retain their rights to health insurance through the Regional Office are
required to pay 100% of the current premium. However, no former employees have chosen to
stay in the Regional Office’s health insurance plan. Therefore, there has been zero percent
utilization and therefore no implicit subsidy to calculate in accordance with GASB Statement
No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other
Than Pensions. Additionally, the Regional Office had no former employees for which the it was
providing an explicit subsidy and no current employees with agreements for future explicit
subsidies upon retirement. Therefore, the Regional Office has not recorded any post
employment benefit liability as of June 30, 2010.
Teachers’ Health Insurance Security Fund
The Regional Office of Education #46 participates in the Teacher Health Insurance Security
(THIS) Fund, a cost-sharing, multiple-employer defined benefit postemployment healthcare plan
that was established by the Illinois legislature for the benefit of Illinois public school teachers
employed outside the city of Chicago. The THIS Fund provides medical, prescription, and
behavioral health benefits, but does not provide vision, dental, or life insurance benefits to
annuitants of the Teachers’ Retirement System (TRS). Annuitants may participate in the State
administered participating provider option plan or choose from several managed care options.
The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions
of THIS Fund and amendments to the plan can be made only by legislative action with the
Governor’s approval. The Illinois Department of Healthcare and Family Services (HFS) and the
Illinois Department of Central Management Services (CMS) administer the plan with the
cooperation of TRS. The director of HFS determines the rates and premiums for annuitants and
dependent beneficiaries and establishes the cost-sharing parameters. Section 6.6 of the State
Employees Group Insurance Act of 1971 requires all active contributors to the TRS who are not
employees of the state make a contribution to THIS.
44
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 7 - OTHER POSTEMPLOYMENT BENEFITS (Continued)
The percentage of employer required contributions in the future will be determined by the
director of Healthcare and Family Services and will not exceed 105 percent of the percentage of
salary actually required to be paid in the previous fiscal year.
• On behalf contributions to THIS Fund. The State of Illinois makes employer retiree health
insurance contributions on behalf of the Regional Office of Education #46. State
contributions are intended to match contributions to THIS Fund from active members which
were 0.84 percent of pay during the year ended June 30, 2010. State of Illinois contributions
were $4,669, and the Regional Office of Education #46 recognized revenue and expenditures
of this amount during the year.
Had the Regional Office of Education #46 recognized revenue and expenditures for State
contributions intended to match active member contributions during the years ended June 30,
2009 and June 30, 2008 under the current standards, the contribution match would have been
0.84 percent of pay or $6,264 and $4,746, respectively.
• Employer contributions to THIS Fund. The Regional Office of Education #46 also makes
contributions to THIS Fund. The employer THIS Fund contribution was 0.63 percent during
the years ended June 30, 2010, June 30, 2009, and June 30, 2008. For the year ended June 30,
2010, the Regional Office of Education #46 paid $3,502 to the THIS Fund. For the years
ended June 30, 2009 and June 30, 2008, the Regional Office of Education #46 paid $3,544
and $2,414 to the THIS Fund, respectively, which was 100 percent of the required
contribution.
The publicly available financial report of the THIS Fund may be obtained by writing to the
Department of Healthcare and Family Services, 201 S. Grand Ave., Springfield, IL 62763-
3838.
NOTE 8 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Generally accepted accounting principles require disclosure of certain information concerning
individual funds which are presented only in combination on the financial statements. Funds
having deficit fund balances/net assets and funds which over expend appropriations during the
year are required to be disclosed.
45
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 8 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)
Because some revenues from the State of Illinois will not be collected for several months after
the Regional Office’s fiscal year ends, they are not considered “available” revenues and are
deferred in the governmental funds. The following funds had deficit fund balances at June 30,
2010. The deficits will be covered by normal operations or fund transfers.
General Fund
ROE/ISC Operations $ (20,000)
Illinois School for the Deaf (37,374)
Illinois School for the Visually Impaired (37,491)
Education Fund
Truants Alternative/Optional Education Fund (40,746)
Regional Safe Schools (38,148)
Feasibility Study ( 6,000)
Total Deficit Fund Balances $ (179,759)_
NOTE 9 - ON-BEHALF PAYMENTS
Salaries of the Regional Superintendent and the Assistant Regional Superintendent are paid by
the State of Illinois. The Brown, Cass, Morgan, and Scott Counties Regional Office of
Education #46 pays all other salaries.
On-behalf payments are as follows:
Regional Superintendent - salary $ 96,435
Regional Superintendent - benefits 14,446
(includes State paid insurance)
Assistant Regional Superintendent - salary 86,791
Assistant Regional Superintendent - benefits 10,070
(includes State paid insurance)
TRS on-behalf payments 177,453
Total on-behalf payments $ 385,195
Salary and benefit data for the Regional Superintendent and Assistant Regional Superintendent
was calculated based on data provided by the Illinois State Board of Education.
NOTE 10 - NEW PRONOUNCEMENTS
Effective July 1, 2009, the Brown, Cass, Morgan, and Scott Counties Regional Office of
Education #46 adopted the following pronouncements: GASB Statement No. 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, GASB
Statement No. 51, Accounting and Financial Reporting for Intangible Assets, GASB Statement
No. 53, Accounting and Financial Reporting for Derivative Instruments, and GASB Statement
No. 58, Accounting and Financial Reporting for Chapter 9 Bankruptcies. There was no
significant impact on the Brown, Cass, Morgan, and Scott Counties Regional Office of
Education #46’s financial statements as a result of adopting the above statements.
46
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 11 – INTERFUND TRANSACTIONS
The purpose of interfund borrowing and permanent transfers is to cover temporary or permanent
short falls in cash flow within grant programs and funds.
(a) Transfers In (Out) Other Funds
The following is a summary of transfers for the year ended June 30, 2010:
Fund Transfers-out Transfers-in
General Fund
County Support $ 8,352 14,437
ROE/ISC Operations - 111
Gifted District Fund - 1,375
School Directory 2 -
Teacher Certification Information Systems 3,313 -
Identix Fingerprinting Fund - 90
Star Online 126 -
Illinois School for the Deaf 5,837 -
Illinois School for the Visually Impaired 4,060 -
Education Fund
ROE School Improvement Fund 2,023 129
Truants Alternative/Optional Education Fund - 22,914
Regional Safe Schools Fund - 4,431
Title I-School Improvement and Accountability-
RESPRO - 521
Title I-Reading First Part B SEA Fund 128
McKinney Education for Homeless Children Fund - 115
Standards Aligned Classroom Fund - 2,213
Title II- Teacher Quality Fund 2 -
Title III-English Language Learners 1,100 125
ARRA Homeless - 1
Alternative Schools Fund
Registration Fees Fund 4,706 -
Paid Lunches Fund 3,866 -
State Lunch Fund 1,234 -
National School Lunch Fund 17,663 -
School Breakfast Fund 4,231 -
Truants Alternative/Optional Education State
Aid Fund 77,712 31,703
Alternative Resource Center (ARC) State Aid Fund 5,264 51,694
Truants Alternative/Optional Education Program-
ARRA State Aid - 3,050
Alternative Resource Center (ARC)-ARRA State Aid - 796
Nonmajor Special Revenue Fund
Supervisory Fund - 5,914
Total $ 139,619 $ 139,619
47
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE 11 – INTERFUND TRANSACTIONS (Concluded)
(b) Due From (To) Other Funds
The following is a summary of amounts due from (to) other funds as of June 30, 2010:
Fund Due From Due To
General Fund
ROE/ISC Operations $ $ 31,500
Teacher Certification Information Systems 4,782
Illinois School for the Deaf 85,067
Illinois School for the Visually Impaired 49,854
Education Fund
Truants Alternative/Optional Education Fund 47,717
Regional Safe Schools 43,073
McKinney Education for Homeless Children 2,525
Alternative Schools Fund
Truants Alternative/Optional Education
State Aid Fund 265,682
Registration Fees Fund 875
Paid Lunches Fund 139
NonMajor Special Revenue Funds
Job Bank Fund ______ __150
Total $ 265,682 $ 265,682
REQUIRED SUPPLEMENTARY INFORMATION
(Other than Management’s Discussion and Analysis)
48
BROWN, CASS, MORGAN, AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2010
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF FUNDING PROGRESS
(Unaudited)
Actuarial
Accrued UAAL as a
Actuarial Liability Unfunded Percentage
Actuarial Value of (AAL) AAL Funded Covered of Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (a/b) (c) ((b-a)/c)
12/31/09 $ 718,914 $ 862,265 $ 143,351 83.38% $ 374,843 38.24%
12/31/08 681,641 819,139 137,498 83.21% 364,584 37.71%
12/31/07 805,955 797,286 (8,669) 101.09% 325,530 0.00 %
OTHER SUPPLEMENTARY INFORMATION
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF ACCOUNTS
GENERAL FUND
June 30, 2010
SCHEDULE 1
Teacher
Gifted Certification
County ROE/ISC District School Information Spelling Bee
Support Operations Fund Directory Systems Fund
Cash and cash equivalents $ 47,660 $ - $ - $ - $ - $ 336
Accounts receivable 15,168 - - - 9,802 -
Due from other funds - - - - - -
Due from other governments - 31,500 - - - -
TOTAL ASSETS 62,828 31,500 - - 9,802 336
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable 1,414 - - - 5,020 -
Due to other governments - - - - - -
Due to other funds - 31,500 - - 4,782 -
Deferred revenue 2,580 20,000 - - - -
Total liabilities 3,994 51,500 - - 9,802 -
FUND BALANCE
Unreserved 58,834 (20,000) - - - 336
TOTAL LIABILITIES AND
FUND BALANCE $ 62,828 $ 31,500 $ - $ - $ 9,802 $ 336
ASSETS
49
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF ACCOUNTS
GENERAL FUND
June 30, 2010
Cash and cash equivalents
Accounts receivable
Due from other funds
Due from other governments
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable
Due to other governments
Due to other funds
Deferred revenue
Total liabilities
FUND BALANCE
Unreserved
TOTAL LIABILITIES AND
FUND BALANCE
ASSETS
SCHEDULE 1
(CONTINUED)
Illinois
Identix Illinois School for
Media Fingerprinting Star School for the Visually
Center Fund Online the Deaf Impaired Total
$ 1,895 $ 3,419 $ - $ - $ - $ 53,310
- - - 85,731 50,185 160,886
- - - - - -
- - - - - 31,500
1,895 3,419 - 85,731 50,185 $ 245,696
329 154 - 665 331 7,913
- - - - - -
- - - 85,067 49,854 171,203
- - - 37,373 37,491 97,444
329 154 - 123,105 87,676 276,560
1,566 3,265 - (37,374) (37,491) (30,864)
$ 1,895 $ 3,419 $ - $ 85,731 $ 50,185 $ 245,696
50
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GENERAL FUND ACCOUNTS
Year Ended June 30, 2010
SCHEDULE 2
Teacher
Gifted Certification
County ROE/ISC District School Information Spelling Bee
Support Operations Fund Directory Systems Fund
REVENUES:
Local sources $ 194,083 $ - $ 3,472 $ - $ - $ 1,400
State sources - 35,566 - - 69,802 -
Federal Sources - - - - - -
Interest income 960 - 1 - 11 2
On-behalf payments - 385,195 - - - -
Total revenues 195,043 420,761 3,473 - 69,813 1,402
EXPENDITURES:
Current:
Education:
Salaries 117,196 40,904 - - - -
Benefits 29,837 12,174 - - - -
Purchased services 27,942 2,018 3,165 - 66,500 191
Supplies and materials 3,253 581 218 - - 972
Miscellaneous 12,297 - - - - -
Payments to other governments - - - - - -
On-behalf payments - 385,195 - - - - -
Capital outlay - - - - - -
Total expenditures 190,525 440,872 3,383 - - 66,500 1,163
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 4,518 (20,111) 90 - - 3,313 239
OTHER FINANCING SOURCES (USES):
Transfers in 14,437 111 1,375 - - -
Transfers out (8,352) - - (2) (3,313) -
Total other financing sources (uses) 6,085 111 1,375 (2) - (3,313) -
NET CHANGES IN FUND BALANCE 10,603 (20,000) 1,465 (2) - - 239
FUND BALANCE (DEFICIT), BEGINNING OF YEAR 48,231 - (1,465) 2 - 97
FUND BALANCE (DEFICIT), END OF YEAR $ 58,834 $ (20,000) $ - $ - $ - $ 336
51
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GENERAL FUND ACCOUNTS
Year Ended June 30, 2010
REVENUES:
Local sources
State sources
Federal Sources
Interest income
On-behalf payments
Total revenues
EXPENDITURES:
Current:
Education:
Salaries
Benefits
Purchased services
Supplies and materials
Miscellaneous
Payments to other governments
On-behalf payments
Capital outlay
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCE
FUND BALANCE (DEFICIT), BEGINNING OF YEAR
FUND BALANCE (DEFICIT), END OF YEAR
SCHEDULE 2
(CONTINUED)
Illinois
Identix Illinois School for
Media Fingerprinting Star School for the Visually
Center Fund Online the Deaf Impaired Total
$ 15,650 $ 10,031 $ 110 $ - $ - $ 224,746
- - - 85,732 50,185 241,285
- - - - - -
17 2 1 - - 994
- - - - - 385,195
15,667 10,033 111 85,732 50,185 852,220
- - - 111,002 79,757 348,859
- - - 2,591 1,479 46,081
11,870 7,578 - 3,676 2,380 125,320
4,088 - - - - 9,112
- - - - - 12,297
- - - - - -
- - - - - 385,195
- - - - - -
15,958 7,578 - 117,269 83,616 926,864
(291) 2,455 111 (31,537) (33,431) (74,644)
- 90 - - - 16,013
- - (126) (5,837) (4,060) (21,690)
- 90 (126) (5,837) (4,060) (5,677)
(291) 2,545 (15) (37,374) (37,491) (80,321)
1,857 720 15 - - 49,457
$ 1,566 $ 3,265 $ - $ (37,374) $ (37,491) $ (30,864)
52
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND ACCOUNT
Year Ended June 30, 2010
SCHEDULE 3
ROE/ISC Operations
Variance
with
Final
Budget
Actual Favorable
REVENUES: Original Final Amounts (Unfavorable)
Local sources - - - -
State sources 35,430 55,566 35,566 (20,000)
Federal sources - - - -
Interest income - - - -
On-behalf payments - - 385,195 385,195
Total revenues 35,430 55,566 420,761 365,195
EXPENDITURES:
Current:
Salaries 25,000 40,638 40,904 (266)
Benefits 8,456 12,258 12,174 84
Purchased services 1,474 2,170 2,018 152
Supplies and materials 500 500 581 (81)
Miscellaneous - - - -
Payments to other governments - - - -
On-behalf payments - - 385,195 (385,195)
Capital outlay - - - -
Total expenditures 35,430 55,566 440,872 (385,306)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (20,111) (20,111)
OTHER FINANCING SOURCES:
Transfers in 111
Transfers out -
Total other financing sources (uses) 111
NET CHANGES IN FUND BALANCE (20,000)
FUND BALANCE (DEFICIT),
BEGINNING OF YEAR -
FUND BALANCE (DEFICIT),
END OF YEAR $ (20,000)
Budgeted Amounts
53
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF ACCOUNTS
EDUCATION FUND
June 30, 2010
SCHEDULE 4
Title I -
Truants School Title I -
Alternative/ Improvement Reading First
ROE School Dental Optional Regional and Part B
Improvement Sealant Education Safe Schools Accountability - SEA
Fund Fund Fund Fund RESPRO Fund
Cash and cash equivalents $ 7,210 $ 9,505 $ - $ - $ 1,694 $ 23,144
Accounts receivable - - - - - -
Due from other governments - - 6 2,018 57,222 - -
Due from other funds - - - - - -
TOTAL ASSETS 7,210 9,505 62,018 57,222 1,694 23,144
LIABILITIES
Accounts payable - - 1 4,301 14,149 410 1 6,805
Due to other governments - - - - - 6 ,339
Due to other funds - - 47,717 43,073 - -
Deferred revenue - - 4 0,746 38,148 1,284 -
Total liabilities - - 1 02,764 95,370 1,694 2 3,144
FUND BALANCE
Fund balance (deficit), unreserved 7,210 9 ,505 (40,746) (38,148) - -
TOTAL LIABILITIES
AND FUND BALANCE (DEFICIT) $ 7,210 $ 9,505 $ 62,018 $ 57,222 $ 1,694 $ 23,144
ASSETS
LIABILITIES AND FUND BALANCE
54
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF ACCOUNTS
EDUCATION FUND
June 30, 2010
Cash and cash equivalents
Accounts receivable
Due from other governments
Due from other funds
TOTAL ASSETS
LIABILITIES
Accounts payable
Due to other governments
Due to other funds
Deferred revenue
Total liabilities
FUND BALANCE
Fund balance (deficit), unreserved
TOTAL LIABILITIES
AND FUND BALANCE (DEFICIT)
ASSETS
LIABILITIES AND FUND BALANCE
SCHEDULE 4
(CONTINUED)
Title IV -
McKinney Standards Title II - Safe and Drug Title II -
Education for Aligned Teacher Free Schools - Teacher Lice
Homeless Children Classroom Quality - Formula Quality Busters
Fund Fund RESPRO Fund Fund Fund
$ - $ - $ 3 ,806 $ - $ - $ 1,108
- - - - - -
2 ,525 - - - - -
- - - - - -
2,525 - 3,806 - - 1,108
- - - - - -
- - 3 ,806 - - -
2,525 - - - - -
- - - - - -
2 ,525 - 3 ,806 - - -
- - - - - 1,108
$ 2,525 $ - $ 3,806 $ - $ - $ 1,108
55
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF ACCOUNTS
EDUCATION FUND
June 30, 2010
Cash and cash equivalents
Accounts receivable
Due from other governments
Due from other funds
TOTAL ASSETS
LIABILITIES
Accounts payable
Due to other governments
Due to other funds
Deferred revenue
Total liabilities
FUND BALANCE
Fund balance (deficit), unreserved
TOTAL LIABILITIES
AND FUND BALANCE (DEFICIT)
ASSETS
LIABILITIES AND FUND BALANCE
SCHEDULE 4
(CONTINUED)
Title III -
English
Language Feasibility Gifted ARRA
Learners Study Education Homeless Total
$ 6 36 $ - $ 44,331 $ - $ 9 1,434
- 6 ,000 - - 6,000
5 6 - - - 1 21,821
- - - - -
692 6,000 44,331 - 219,255
6 92 6 ,000 1 0,530 - 62,887
- - 3 3,801 - 43,946
- - - - 93,315
- 6 ,000 - - 86,178
6 92 1 2,000 4 4,331 - 2 86,326
- (6,000) - - (67,071)
$ 692 $ 6,000 $ 44,331 $ - $ 219,255
56
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
EDUCATION FUND ACCOUNTS
Year Ended June 30, 2010
SCHEDULE 5
Title I -
Truants School Title I -
Alternative/ Regional Improvement Reading First
ROE School Dental Optional Safe and Part B
Improvement Sealant Education Schools Accountability - SEA
Fund Fund Fund Fund RESPRO Fund
Local sources $ 114 $ - $ - $ - $ - $ -
State sources - 3,911 74,452 58,036 - -
Federal sources - - - - 8,175 32,040
Interest income 45 40 - - 27 24
Total revenues 159 3,951 74,452 58,036 8,202 32,064
EXPENDITURES:
Current:
Education:
Salaries - - 96,690 74,941 10,935 -
Benefits - - 16,987 11,504 1,379 -
Purchased services 1,599 1,668 20,854 14,170 1,038 30,762
Supplies and materials - 516 3,581 - 738 1,180
Miscellaneous 18 25 - - - 69
Payments to other governments - - - - 1,321 -
Capital outlay - - - - - -
Total expenditures 1,617 2,209 138,112 100,615 15,411 32,011
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,458) 1,742 (63,660) ( 42,579) (7,209) 53
OTHER FINANCING SOURCES (USES):
Transfers in 129 - 22,914 4,431 521 -
Transfers out (2,023) - - - - (128)
Total other financing sources (uses) (1,894) - 22,914 4,431 521 (128)
NET CHANGES IN FUND BALANCE (3,352) 1,742 (40,746) ( 38,148) (6,688) (75)
FUND BALANCE (DEFICIT),
BEGINNING OF YEAR 10,562 7,763 - - 6,688 75
FUND BALANCE (DEFICIT),
END OF YEAR $ 7,210 $ 9,505 $ (40,746) $ (38,148) $ - $ -
REVENUES:
57
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
EDUCATION FUND ACCOUNTS
Year Ended June 30, 2010
Local sources
State sources
Federal sources
Interest income
Total revenues
EXPENDITURES:
Current:
Education:
Salaries
Benefits
Purchased services
Supplies and materials
Miscellaneous
Payments to other governments
Capital outlay
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCE
FUND BALANCE (DEFICIT),
BEGINNING OF YEAR
FUND BALANCE (DEFICIT),
END OF YEAR
REVENUES:
SCHEDULE 5
(CONTINUED)
Title IV -
McKinney Standards Title II - Safe and Drug Title II -
Education for Aligned Teacher Free Schools - Teacher Lice
Homeless Children Classroom Quality - Formula Quality Busters
Fund Fund RESPRO Fund Fund Fund
$ - $ - $ - $ - $ - $ -
- 1,660 - - - -
10,100 - 21,001 146 1,421 -
1 - 26 - 2 5
10,101 1,660 21,027 146 1,423 5
8,800 (1) 6,900 - - -
- - 4,492 - - 38
6 47 1,531 5,862 146 1,421 -
4 39 153 107 - - -
3 30 - 3,666 - - -
- - - - - -
- - - - - -
10,216 1,683 21,027 146 1,421 38
(115) (23) - - 2 (33)
1 15 2,213 - - - -
- - - - (2) -
1 15 2,213 - - (2) -
- 2,190 - - - (33)
- (2,190) - - - 1,141
$ - $ - $ - $ - $ - $ 1,108
58
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
EDUCATION FUND ACCOUNTS
Year Ended June 30, 2010
Local sources
State sources
Federal sources
Interest income
Total revenues
EXPENDITURES:
Current:
Education:
Salaries
Benefits
Purchased services
Supplies and materials
Miscellaneous
Payments to other governments
Capital outlay
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCE
FUND BALANCE (DEFICIT),
BEGINNING OF YEAR
FUND BALANCE (DEFICIT),
END OF YEAR
REVENUES:
SCHEDULE 5
(CONTINUED)
Title III -
English
Language Feasibility Gifted ARRA
Learners Study Education Homeless Total
$ - $ - $ - $ - $ 114
- - 28,147 1,500 167,706
24,000 - - - 96,883
35 - 282 1 488
24,035 - 28,429 1,501 265,191
12,944 - 1,905 700 213,814
3,996 - 488 - 38,884
3,018 6,000 20,618 802 110,136
3,102 - 5,418 - 15,234
- - - - 4,108
- - - - 1,321
- - - - -
23,060 6,000 28,429 1,502 383,497
975 ( 6,000) - (1) (118,306)
125 - - 1 30,449
( 1,100) - - - (3,253)
(975) - - 1 27,196
- ( 6,000) - - (91,110)
- - - - 24,039
$ - $ (6,000) $ - $ - $ (67,071)
59
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
Year Ended June 30, 2010
SCHEDULE 6
Truants Alternative/Optional Education Fund
Variance Variance
with with
Final Final
Budget Budget
Actual Favorable Actual Favorable
Original Final Amounts (Unfavorable) Original Final Amounts (Unfavorable)
REVENUES:
Local sources $ - $ - $ - $ - $ - $ - $ - $ -
State sources 1 15,198 1 15,198 74,452 (40,746) 96,184 96,184 58,036 (38,148)
Federal sources - - - - - - - -
Interest income - - - - - - - -
Total revenues 1 15,198 1 15,198 74,452 (40,746) 96,184 96,184 58,036 (38,148)
EXPENDITURES:
Current:
Education:
Salaries 7 9,711 - 96,690 (96,690) 65,085 65,085 74,941 (9,856)
Benefits 1 4,414 - 16,987 (16,987) 11,587 11,587 11,504 8 3
Purchased services 2 1,022 - 20,854 (20,854) 19,512 19,512 14,170 5 ,342
Supplies and materials 51 - 3,581 (3,581) - - - -
Miscellaneous - - - - - - - -
Payments to other governments - - - - - - - -
Capital outlay - - - - - - - -
Total expenditures 1 15,198 - 138,112 (138,112) 96,184 96,184 100,615 (4,431)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES ( 63,660) ( 42,579)
OTHER FINANCING SOURCES (USES):
Transfers in 22,914 4,431
Transfers out - -
Total other financing sources (uses) 22,914 4,431
NET CHANGES IN FUND BALANCE ( 40,746) ( 38,148)
FUND BALANCE (DEFICIT),
BEGINNING OF YEAR - -
FUND BALANCE (DEFICIT),
END OF YEAR $ ( 40,746) $ ( 38,148)
Regional Safe Schools Fund
Budgeted Amounts Budgeted Amounts
60
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
Year Ended June 30, 2010
REVENUES:
Local sources
State sources
Federal sources
Interest income
Total revenues
EXPENDITURES:
Current:
Education:
Salaries
Benefits
Purchased services
Supplies and materials
Miscellaneous
Payments to other governments
Capital outlay
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCE
FUND BALANCE (DEFICIT),
BEGINNING OF YEAR
FUND BALANCE (DEFICIT),
END OF YEAR
SCHEDULE 6
(CONTINUED)
Variance Variance
with with
Final Final
Budget Budget
Actual Favorable Actual Favorable
Original Final Amounts (Unfavorable) Original Final Amounts (Unfavorable)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
38,281 38,281 32,040 ( 6,241) 146 146 146 -
- - 24 24 - - - -
38,281 38,281 32,064 ( 6,217) 146 146 146 -
- - - - - - - -
- - - - - - - -
38,101 38,101 30,762 7,339 146 146 146 -
180 180 1,180 ( 1,000) - - - -
- - 69 (69) - - - -
- - - - - - - -
- - - - - - - -
38,281 38,281 32,011 6,270 146 146 146 -
53 -
- -
(128) -
(128) -
(75) -
75 -
$ - $ -
Budgeted Amounts
Title I - Reading First Part B SEA Fund Title IV - Safe and Drug Free Schools - Formula Fund
Budgeted Amounts
61
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
Year Ended June 30, 2010
REVENUES:
Local sources
State sources
Federal sources
Interest income
Total revenues
EXPENDITURES:
Current:
Education:
Salaries
Benefits
Purchased services
Supplies and materials
Miscellaneous
Payments to other governments
Capital outlay
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCE
FUND BALANCE (DEFICIT),
BEGINNING OF YEAR
FUND BALANCE (DEFICIT),
END OF YEAR
SCHEDULE 6
(CONTINUED)
Variance Variance
with with
Final Final
Budget Budget
Actual Favorable Actual Favorable
Original Final Amounts (Unfavorable) Original Final Amounts (Unfavorable)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
1,421 1,421 1,421 - 24,000 24,000 24,000 -
- - 2 2 - - 3 5 3 5
1,421 1,421 1,423 2 24,000 24,000 24,035 3 5
- - - - 3,300 12,900 12,944 (44)
- - - - 6 75 4,000 3,996 4
1,421 1,421 1,421 - 18,025 4,100 3,018 1,082
- - - - 2,000 3,000 3,102 (102)
- - - - - - - -
- - - - - - - -
- - - - - - - -
1,421 1,421 1,421 - 24,000 24,000 23,060 9 40
2 9 75
- 1 25
(2) (1,100)
(2) (975)
- -
- -
$ - $ -
Budgeted Amounts
Title III - English Language Learners
Budgeted Amounts
Title II - Teacher Quality Fund
62
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
Year Ended June 30, 2010
REVENUES:
Local sources
State sources
Federal sources
Interest income
Total revenues
EXPENDITURES:
Current:
Education:
Salaries
Benefits
Purchased services
Supplies and materials
Miscellaneous
Payments to other governments
Capital outlay
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGES IN FUND BALANCE
FUND BALANCE (DEFICIT),
BEGINNING OF YEAR
FUND BALANCE (DEFICIT),
END OF YEAR
SCHEDULE 6
(CONTINUED)
Gifted Education
Variance
with
Final
Budget
Actual Favorable
Original Final Amounts (Unfavorable)
$ - $ - $ - $ -
61,948 61,948 28,147 (33,801)
- - - -
- - 282 282
61,948 61,948 28,429 (33,519)
2,200 2,200 1,905 295
600 600 488 112
48,458 48,458 20,618 27,840
10,690 10,690 5,418 5,272
- - - -
- - - -
- - - -
61,948 61,948 28,429 33,519
-
-
-
-
-
-
$ -
Budgeted Amounts
63
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF ACCOUNTS
ALTERNATIVE SCHOOLS FUND
June 30, 2010
64
SCHEDULE 7
Registration Paid State National School
Fees Lunches Lunch School Lunch Breakfast
Fund Fund Fund Fund Fund
Cash and cash equivalents $ - $ - $ - $ - $ -
Accounts receivable 875 139 - - -
Due from other governments - - - - -
Due from other funds - - - - -
TOTAL ASSETS 875 139 - - -
LIABILITIES
Accounts payable - - - - -
Due to other governments - - - - -
Due to other funds 875 139 - - -
Deferred revenue - - - - -
Total liabilities 875 139 - - -
FUND BALANCE
Fund balance (deficit), unreserved - - - - -
TOTAL LIABILITIES
AND FUND BALANCE (DEFICIT) $ 875 $ 139 $ - $ - $ -
ASSETS
LIABILITIES AND FUND BALANCES
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF ACCOUNTS
ALTERNATIVE SCHOOLS FUND
June 30, 2010
65
Cash and cash equivalents
Accounts receivable
Due from other governments
Due from other funds
TOTAL ASSETS
LIABILITIES
Accounts payable
Due to other governments
Due to other funds
Deferred revenue
Total liabilities
FUND BALANCE
Fund balance (deficit), unreserved
TOTAL LIABILITIES
AND FUND BALANCE (DEFICIT)
ASSETS
LIABILITIES AND FUND BALANCES
SCHEDULE 7
(CONTINUED)
Truants Truants
Alternative/ Alternative Alternative/
Optional Resource Optional Alternative
Education Center (ARC) - Education Resource
State State Program - Center (ARC) -
Aid Aid ARRA ARRA
Fund Fund State Aid State Aid Total
$ 250,301 $ 32,237 $ - $ - $ 282,538
1,529 - - - 2,543
- - - - -
265,682 - - - 265,682
517,512 32,237 - - 550,763
38,806 16,074 - - 54,880
- - - - -
- - - - 1,014
- - - - -
38,806 16,074 - - 55,894
478,706 16,163 - - 494,869
$ 517,512 $ 32,237 $ - $ - $ 550,763
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
ALTERNATIVE SCHOOLS FUND ACCOUNTS
Year Ended June 30, 2010
SCHEDULE 8
Registration Paid State National School
Fees Lunches Lunch School Lunch Breakfast
Fund Fund Fund Fund Fund
Local sources $ 5,750 $ 3,859 $ - $ - $ 4,224
State sources - - 1,232 - -
Federal sources - - - 17,632 -
Interest income 1 7 2 31 7
Total revenues 5,751 3,866 1,234 17,663 4,231
EXPENDITURES:
Current:
Education:
Salaries - - - - -
Benefits - - - - -
Purchased services - - - - -
Supplies and materials 2,295 - - - -
Miscellaneous - - - - -
Payments to other governments - - - - -
Capital outlay - - - - -
Total expenditures 2,295 - - - -
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 3,456 3,866 1,234 17,663 4,231
OTHER FINANCING SOURCES (USES)
Transfers in - - - - -
Transfers out (4,706) (3,866) (1,234) (17,663) (4,231)
Total other financing sources (uses) (4,706) (3,866) (1,234) (17,663) (4,231)
NET CHANGE IN FUND BALANCE (1,250) - - - -
FUND BALANCE (DEFICIT),
BEGINNING OF YEAR 1,250 - - - -
FUND BALANCE (DEFICIT),
END OF YEAR $ - $ - $ - $ - $ -
REVENUES:
66
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
ALTERNATIVE SCHOOLS FUND ACCOUNTS
Year Ended June 30, 2010
Local sources
State sources
Federal sources
Interest income
Total revenues
EXPENDITURES:
Current:
Education:
Salaries
Benefits
Purchased services
Supplies and materials
Miscellaneous
Payments to other governments
Capital outlay
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT),
BEGINNING OF YEAR
FUND BALANCE (DEFICIT),
END OF YEAR
REVENUES:
SCHEDULE 8
(CONTINUED)
Truants Truants
Alternative/ Alternative Alternative/
Optional Resource Optional Alternative
Education Center (ARC) - Education Resource
State State Program - Center (ARC) -
Aid Aid ARRA ARRA
Fund Fund State Aid State Aid Total
$ - $ - $ - $ - $ 13,833
347,332 124,110 - - 472,674
- - 76,899 27,580 122,111
6,555 6 11 4 6,624
353,887 124,116 76,910 27,584 615,242
297,765 117,573 52,978 19,855 488,171
47,197 18,205 17,064 7,255 89,721
44,352 14,286 4,574 784 63,996
20,158 3,604 4,844 486 31,387
1,829 715 500 - 3,044
- - - - -
- - - - -
411,301 154,383 79,960 28,380 676,319
(57,414) (30,267) (3,050) (796) (61,077)
31,703 51,694 3,050 796 87,243
(77,712) (5,264) - - (114,676)
(46,009) 46,430 3,050 796 (27,433)
(103,423) 16,163 - - (88,510)
582,129 - - - 583,379
$ 478,706 $ 16,163 $ - $ - $ 494,869
67
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
June 30, 2010
SCHEDULE 9
General
Bus Education Job
Institute Driver Development Supervisory Bank
Fund Fund Fund Fund Fund Total
ASSETS
Cash and cash equivalents $ 28,201 $ 1,579 $ 1,640 $ - $ - $ 31,420
Accounts receivable - - - - 150 150
Due from other governments - - - - - -
Due from other funds - - - - - -
TOTAL ASSETS 28,201 1,579 1,640 - 150 31,570
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable 12,228 100 245 - - 12,573
Due to other governments - - - - - -
Due to other funds - - - - 150 150
Deferred revenue - - - - - -
Total liabilities 12,228 100 245 - 150 12,723
FUND BALANCES (DEFICIT)
Unreserved 15,973 1,479 1,395 - - 18,847
TOTAL LIABILITIES AND
FUND BALANCES (DEFICIT) $ 28,201 $ 1,579 $ 1,640 $ - $ 150 $ 31,570
68
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
Year Ended June 30, 2010
SCHEDULE 10
General
Bus Education Job
Institute Driver Development Supervisory Bank
Fund Fund Fund Fund Fund Total
REVENUES:
Local sources $ 13,510 $ 1,018 $ 6,442 $ - $ 1,350 $ 22,320
State sources - 632 - 4,000 - 4,632
Federal Sources - - - - - -
Interest income 387 7 5 - - 399
Total revenues 13,897 1,657 6,447 4,000 1,350 27,351
EXPENDITURES:
Current:
Education:
Salaries 6,653 - - - - 6,653
Benefits 2,024 - - - - 2,024
Purchased services 411 1,630 2,297 9,904 1,350 15,592
Supplies and materials 6,113 60 2,755 - - 8,928
Miscellaneous 11,384 - - 10 - 11,394
Payments to other governments - - - - - -
Capital outlay - - - - - -
Total expenditures 26,585 1,690 5,052 9,914 1,350 44,591
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (12,688) (33) 1,395 (5,914) - (17,240)
OTHER FINANCING SOURCES (USES):
Transfers in - - - 5,914 - 5,914
Transfers out - - - - - -
Total other financing sources (uses) - - - 5,914 - 5,914
NET CHANGES IN FUND BALANCES (12,688) (33) 1,395 - - (11,326)
FUND BALANCE (DEFICIT),
BEGINNING OF YEAR 28,661 1,512 - - - 30,173
FUND BALANCE (DEFICIT),
END OF YEAR $ 15,973 $ 1,479 $ 1,395 $ - $ - $ 18,847
69
BROWN, CASS, MORGAN AND SCOTT COUNTIES
REGIONAL OFFICE OF EDUCATION #46
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
Year Ended June 30, 2010
Schedule 11
Balance Balance
SCHOOL FACILITY OCCUPATION TAX July 1, 2009 Additions Deductions June 30, 2010
ASSETS
Due from other governments $ - $ 6 69,995 $ 5 42,198 $ 127,797
TOTAL ASSETS $ - $ 6 69,995 $ 5 42,198 $ 127,797
LIABILITIES
Due to other governments $ - $ 6 69,995 $ 5 42,198 $ 127,797
TOTAL LIABILITIES $ - $ 6 69,995 $ 5 42,198 $ 127,797
Balance Balance
TOTAL OCCUPATION TAX July 1, 2009 Additions Deductions June 30, 2010
ASSETS
Due from other governments $ - $ 6 69,995 $ 5 42,198 $ 127,797
TOTAL ASSETS $ - $ 6 69,995 $ 5 42,198 $ 127,797
LIABILITIES
Due to other governments $ - $ 6 69,995 $ 5 42,198 $ 127,797
TOTAL LIABILITIES $ - $ 6 69,995 $ 5 42,198 $ 127,797
70