FY11-ROE27-Fin-Full

              STATE OF ILLINOIS
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
FINANCIAL AUDIT
For the Year Ended June 30, 2011
Performed as Special Assistant Auditors
for the Auditor General, State of Illinois
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
TABLE OF CONTENTS
Page
OFFICIALS ................................................................................................................................ 1
FINANCIAL REPORT SUMMARY .......................................................................................... 2
FINANCIAL STATEMENT REPORT SUMMARY ................................................................. 4
FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................. 5
Independent Auditor’s Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards ..................................................................................... 7
Schedule of Findings and Responses .................................................................................. 9
Financial Statement Findings ............................................................................................... 10
Corrective Action Plan for Current Year Audit Findings .................................................... 12
Summary Schedule of Prior Audit Findings ........................................................................ 13
MANAGEMENT’S DISCUSSION AND ANALYSIS .............................................................. 14
BASIC FINANCIAL STATEMENTS
Statement of Net Assets ....................................................................................................... 20
Statement of Activities ......................................................................................................... 21
Balance Sheet – Governmental Funds ................................................................................. 22
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets .................................................................................................. 23
Statement of Revenues, Expenditures, and Changes in Fund Balance –
Governmental Funds ....................................................................................................... 24
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities – Governmental Funds ....................... 25
Statement of Net Assets – Proprietary Fund ........................................................................ 26
Statement of Revenues, Expenses, and Changes in Fund Net Assets –
Proprietary Fund ............................................................................................................. 27
Statement of Cash Flows – Proprietary Fund ....................................................................... 28
Notes to Financial Statements .............................................................................................. 29
REQUIRED SUPPLEMENTARY INFORMATION (OTHER THAN MANAGEMENT’S
DISCUSSION AND ANALYSIS)
Illinois Municipal Retirement Fund – Schedule of Funding Progress ................................. 51
i
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
TABLE OF CONTENTS
ii
Page
SUPPLEMENTARY INFORMATION
COMBINING AND INDIVIDUAL
FINANCIAL STATEMENTS AND SCHEDULES
General Fund:
Combining Schedule of Accounts ............................................................................... 52
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances ......................................................................................... 54
Education Fund:
Combining Schedule of Accounts ............................................................................... 56
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances ......................................................................................... 58
Budgetary Comparison Schedules – Education Fund Accounts:
Title I Reading First Part B SEA Funds ................................................................ 60
McDonough/Hancock ROE Homeless Grant ....................................................... 61
Title IV 21st Century Community Learning Centers ............................................ 62
Title II Teacher Quality Leadership ...................................................................... 63
Progressive Alternative Secondary School (P.A.S.S.) Funds:
Combining Schedule of Accounts ............................................................................... 64
Combining Schedule of Revenues, Expenditures, and
Changes in Fund Balances ......................................................................................... 66
Budgetary Comparison Schedules – P.A.S.S. Accounts:
Adult Education and Family Literacy – State Basic ............................................. 68
Adult Education and Family Literacy – State Performance .................................. 69
Adult Education and Family Literacy – Public Assistance ................................... 70
Regional Safe Schools........................................................................................... 71
Federal Adult Education – Basic ........................................................................... 72
Title II – Teacher Quality ...................................................................................... 73
Non Major Special Revenue Fund:
Combining Balance Sheet............................................................................................ 74
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances .................................................................................. 75
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
OFFICIALS
Regional Superintendent Ms. Jodi Scott
(current and during audit period)
Assistant Regional Superintendent Mr. Robert Gound
(current and during audit period)
Offices are located at:
200 West Broadway
Monmouth, Illinois 61462
PASS/Adult Education
1291 N. 6th Street, Suite 100
Monmouth, IL 61462
Various Education Programs
215 South 1st Street Road
Monmouth, IL 61462
High Roads Advantage
2004 SE 3rd Street
Aledo, IL 61231
21st Century Community Learning Centers
West Central Community Unit School District #235
Biggsville, IL 61418
1
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
FINANCIAL REPORT SUMMARY
The financial audit testing performed in this audit was conducted in accordance with Government Auditing
Standards and in accordance with the Illinois State Auditing Act.
AUDITOR’S REPORTS
The auditor’s reports do not contain scope limitations, disclaimers, or other significant non-standard
language.
SUMMARY OF AUDIT FINDINGS
Number of This Audit Prior Audit
Audit findings 1 2
Repeated audit findings 1 1
Prior recommendations implemented or not repeated 1 1
Details of audit findings are presented in a separate report section.
SUMMARY OF FINDINGS AND RESPONSES
Item No. Page Description Finding Type
Findings (Government Auditing Standards)
11-1 10 Controls over financial statement preparation Material Weakness
Prior Audit Findings Not Repeated (Government Auditing Standards)
10-2 13 Failure to fully insure and collateralize cash balances Significant Deficiency
2
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
FINANCIAL REPORT SUMMARY - CONTINUED
EXIT CONFERENCE
3
Henderson, Mercer and Warren Counties Regional Office of Education #27 waived having an exit
conference in a letter dated February 6, 2012. Responses to the recommendations were provided by the ROE
management in correspondence received February 8, 2012.
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
FINANCIAL STATEMENT REPORT SUMMARY
The audit of the accompanying basic financial statements of the Henderson, Mercer and Warren Counties
Regional Office of Education #27 was performed by Sulaski and Webb, CPAs.
Based on their audit, the auditors expressed an unqualified opinion on the Henderson, Mercer and Warren
Counties Regional Office of Education #27’s basic financial statements.
4
SUlki
-------'t\Vebb
C/RTIFIELJ l'lJilLIC 1\C:COlJNT;\NTS
Honorable William G. Holland
Auditor General
State of Illinois
Independent Auditor's Report
As Special Assistant Auditors for the Auditor General, we have audited the accompanying financial
statements of the govennnental activities, the business-type activities, each major fund, and the aggregate
remaining fund infonnation of the Henderson, Mercer and Warren Counties Regional Office of Education
#27, as of and for the year ended June 30, 2011, which collectively comprise the Henderson, Mercer and
Warren Counties Regional Office of Education #27's basic fmancial statements as listed in the table of
contents. These fmancial statements are the responsibility of the Henderson, Mercer and Warren Counties
Regional Office of Education #27's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our andit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States. Those standards require that we plan and perfonn 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 fmancial statements referred to above present fairly, in all material respects, the respective
· financial position of the governmental activities, the business-type activities, each m,Yor fund, and the
aggregate remaining fund information of the Henderson, Mercer and Warren Counties Regional Office of
Education #27, as of June 30, 2011, and the respective changes in financial position and cash flows, where
applicable, thereof for the year then ended in confonnity with accounting principles generally accepted in the
United States of America.
The Regional Office of Education #27 adopted GASB Statement No. 54, Fwzd Balance Reporting and
Governmental Fund Type Definitions during the year ended June 30, 2011. The statement changed the
classifications of govennnental fund balances and clarified the definitions of existing fund types. The
adoption of this statement had no effect on any of the Regional Office of Education #27's governmental
funds' assets or liabilities, nor was there any effect to the total amount of any of the Regional Office of
Education #27's govermnental fund balances as of and for the year ended June 30,2011.
5
In accordance with Government Auditing Standards, we have also issued a report dated March 20, 2012 on
our consideration of the Henderson, Mercer and Warren Counties Regional Office of Education #27's
internal control over financial reporting and on our tests of its compliance with ce1tain 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 intemal 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 repmt
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.
TI1e Management's Discussion and Analysis and Illinois Municipal Retirement Fund Schedule of Funding
Progress on pages 14 through 19 and 51 are not a required part of the basic fmancial statements but is
supplementary infonnation required by accounting principles generally accepted in the United States of
America. We have applied ce1tain lin1ited 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 infonnation and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Henderson, Mercer and Warren Counties Regional Office of Education #27's basic financial
statements. The combining and individual non-major fund financial statements and budgetary comparison
schedules are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining and individual non-major fund financial statements and budgetary comparison
schedules have been subjected to the auditing procedures applied in the audit of the basic fmancial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic fmancial
statements taken as a whole.
Sulaski and Webb
Certified Public Accountants
March 20, 2012
6
SUlki -~ebb ( IRTIFIFI J I'Uilll< • ACCOUNTANTS
Independent Auditor's Report on Intemal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance With Govemment Auditing Standards
Honorable William G. Holland
Auditor General
State of Illinois
As Special Assistant Auditors for the Auditor General, we have audited the fmancial statements of the
govenunental activities, the business-type activities, each major fund, and the aggregate remaining fund
infonnation of the Henderson, Mercer and Warren Counties Regional Office of Education #27, as of and for
the year ended June 30, 2011, which collectively comprise the Henderson, Mercer and Warren Counties
Regional Office of Education #27's basic financial statements and have issued our report thereon dated
March 20, 2012. We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to fmancial audits contained in Govemment Auditing
Standards, issued by the Comptroller General ofthe United States.
Internal Control Over Financial Repmting
Management of the Henderson, Mercer and Warren Counties Regional Office of Education #27 is
responsible for establishing and maintaining effective intemal control over financial reporting. In platming
and performing our audit, we considered the Henderson, Mercer and Warren Counties Regional Office of
Education #27's intemal control over fmancial reporting as a basis for designing our auditing procedures for
the purpose of expressing our opinions on the fmancial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Henderson, Mercer and Warren Counties Regional Office of Education
#27's intemal control over fmancial reporting. Accordingly, we do not express an opinion on the
effectiveness of the Henderson, Mercer and Warren Counties Regional Office of Education #27's intemal
control over financial reporting.
Our consideration of intemal control over finat1cial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identifY all deficiencies in the internal control over financial
reporting that might be significant deficiencies or material weaknesses and therefore, there can be no
assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified.
However, as described in the accompanying Schedule of Findings and Responses, we identified a certain
deficiency in intemal control over financial reporting that we consider to be a material weakness.
7
SUITE /tn, TilE IU.IN01S IIOUSt: 207 W. )ITf"f RSON, P.O. BOX :uu.s lllJJOtv11NCH}N, I[Jii~OIS ()1702, (J01J) llJIJ-(i071, [;\X (.l0 1J) llJI<Hr).'i
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the nonnal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity's
financial statements will not be prevented, or detected and corrected on a timely basis. We consider the
deficiency described in fmding 11-1 in the accompanying Schedule of Findings and Responses to be a
material weakness.
Compliance and Other Matters
As patt of obtaining reasonable assurance about whether the Henderson, Mercer and Warren Counties
Regional Office of Education #27'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 detennination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
The Henderson, Mercer and Warren Counties Regional Office of Education #27's response to the finding
identified in our audit is described in the accompanying Schedule of Findings and Responses. We did not
audit Henderson, Mercer and Wan·en Counties Regional Office of Education #27's response and,
accordingly, we express no opinion on it.
This report is intended solely for the infonnation and use of the Auditor General, the General Assembly, the
Legislative Audit Commission, the Governor, agency management, others within the entity and lllinois State
Board of Education and is not intended to be and should not be used by anyone other than these specified
patties.
Snlaski and Webb
Certified Public Accountants
March 20, 2012
8
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
SCHEDULE OF FINDINGS AND RESPONSES
For the Year Ended June 30, 2011
Section I – Summary of the Auditor’s Results
Financial Statements
(1) An unqualified opinion was issued on the financial statements.
Internal Control Over Financial Reporting:
(2) One material weakness disclosed during the audit of the financial statements is reported in the
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance With
Government Auditing Standards.
(3) No instances of noncompliance material to the financial statements were disclosed during the audit.
9
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
SCHEDULE OF FINDINGS AND RESPONSES
For the Year Ended June 30, 2011
Section II – Financial Statement Findings Finding No. 11-1
Repeated from 10-1, 09-1,
08-1 and 07-1
Controls Over Financial Statement Preparation
Criteria/Specific Requirement:
The Henderson, Mercer and Warren Counties Regional Office of Education #27 (ROE) is required to
maintain a system of controls over the preparation of financial statements, including disclosures, in
accordance with generally accepted accounting principles (GAAP). The ROE internal controls over
GAAP financial reporting should include adequately trained personnel with the knowledge and
expertise to prepare and/or thoroughly review GAAP based financial statements to ensure that they
are free of material misstatements and include all disclosures as required by the Governmental
Accounting Standards Board (GASB).
Condition:
The Henderson, Mercer and Warren Counties Regional Office of Education #27 does not have
sufficient internal controls over the financial reporting process. The ROE maintains their accounting
records on the cash basis of accounting. While the ROE maintains controls over the processing of
most accounting transactions, there are not sufficient controls over the preparation of the GAAP
based financial statements for management or employees in the normal course of performing their
assigned functions to prevent or detect financial statement misstatements and disclosure omissions in
a timely manner. For example, auditors, in their review of the ROE’s accounting records, noted the
following:
• Numerous adjustments were required to present financial statements in accordance with
generally accepted accounting principles.
• The ROE did not maintain complete records of accounts receivable, accounts payable, or
deferred revenue.
Effect:
Management or employees in the normal course of performing their assigned functions may not
prevent or detect financial statement misstatements and disclosure omissions in a timely manner.
Cause:
According to ROE officials, they did not have adequate funding to hire and/or train their accounting
personnel in order to maintain a system of internal control over the preparation of financial
statements in accordance with GAAP.
10
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
SCHEDULE OF FINDINGS AND RESPONSES
For the Year Ended June 30, 2011
11
Section II – Financial Statement Findings - Continued Finding No. 11-1
Repeated from 10-1, 09-1,
08-1 and 07-1
Controls Over Financial Statement Preparation - Continued
Auditor’s Recommendation:
As part of its internal control over the preparation of its financial statements, including disclosures,
the Henderson, Mercer and Warren Counties Regional Office of Education #27 should implement a
comprehensive preparation and/or review procedure to ensure that the financial statements, including
disclosures, are complete and accurate. Such procedures should be performed by a properly trained
individual(s) possessing a thorough understanding of applicable generally accepted accounting
principles, GASB pronouncements, and knowledge of the Regional Office of Education’s activities
and operations.
Management’s Response:
The Regional Office of Education #27 understands the nature of this finding and realizes that this
circumstance is not unusual in an organization of this size. The Regional Office management is
currently confident with the abilities of the accounting staff to prepare cash basis financial
information as needed throughout the year. Management will review year end reporting controls
annually and investigate the cost of training staff to reach an appropriate level of expertise to do a
comprehensive preparation and/or review of financial statements. Management will pursue
additional training when it is considered cost beneficial since training costs would take away from
the funds available to provide education services for the schools in the region.
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
CORRECTIVE ACTION PLAN FOR
CURRENT YEAR AUDIT FINDINGS
For the Year Ended June 30, 2011
Corrective Action Plan
Finding No. 11-1
Condition: The Henderson, Mercer and Warren Counties Regional Office of Education #27
does not have sufficient internal controls over the financial reporting process. The
ROE maintains their accounting records on the cash basis of accounting. While the
ROE maintains controls over the processing of most accounting transactions, there
are not sufficient controls over the preparation of the GAAP based financial
statements for management or employees in the normal course of performing their
assigned functions to prevent or detect financial statement misstatements and
disclosure omissions in a timely manner. For example, auditors, in their review of
the ROE’s accounting records, noted the following:
􀂃􈍎 Numerous adjustments were required to present financial statements in
accordance with generally accepted accounting principles.
􀂃􈍔 The ROE did not maintain complete records of accounts receivable,
accounts payable, or deferred revenue.
Plan: The Regional Office of Education #27 understands the nature of this finding and
realizes that this circumstance is not unusual in an organization of this size. The
Regional Office management is currently confident with the abilities of the
accounting staff to prepare cash basis financial information throughout the year.
Management will review year end reporting controls annually and investigate the
cost of training staff to reach an appropriate level of expertise to do a comprehensive
preparation and/or review of financial statements. Management will pursue
additional training when it is considered cost beneficial since training costs would
take away from the funds available to provide education services for the schools in
the region.
Completion Date: As soon as possible
Contact Person: Jodi Scott, Regional Superintendent
12
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended June 30, 2011
Finding
Number Condition Current Status
10-1 The ROE did not have sufficient internal controls over Repeated as
the financial reporting process. Finding 11-1.
10-2 The ROE did not have depository insurance or collateral Not repeated.
for $88,281.
13
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
The Henderson, Mercer and Warren Counties Regional Office of Education #27 provides this Management’s
Discussion and Analysis of its financial statements. This narrative overview and analysis of the financial
activities is for the year ended on June 30, 2011 with comparative information for the year ended June 30,
2010. Readers are encouraged to consider the information in conjunction with the Regional Office’s
financial statements that follow.
2011 Financial Highlights
􀂾􋹗Within the Governmental Funds, the General Fund revenues increased by $467,165 (93%) from
$502,796 in fiscal year 2010 to $969,961 in fiscal year 2011. General Fund expenditures increased
by $127,156 (25%) from $513,542 in fiscal year 2010 to $640,698 in fiscal year 2011. These
changes are primarily due to GASB 54 reclassifications. See the Governmental Activities section for
further information on the year to year comparisons.
􀂾􋹗Within the Governmental Funds, the Special Revenue Fund revenue decreased by $352,373 (21%)
from $1,686,298 in fiscal year 2010 to $1,333,925 in fiscal year 2011. The Special Revenue Fund
expenditures decreased by $1,246,472 (64%) from $1,942,861 in fiscal year 2010 to $696,389 in
fiscal year 2011. These changes are primarily due to GASB 54 reclassifications.
􀂾􋹔The Enterprise Fund revenue decreased by $10,656 (20%) from $53,771 in fiscal year 2010 to $43,115
in fiscal year 2011. The Enterprise Fund expenditures decreased by $9,880 (36%) from $27,080 in
fiscal year 2010 to $17,200 in fiscal year 2011.
􀂾􋹔The Regional Office of Education # 27 has no long term debt.
Using This Report
This report consists of a series of financial statements and other information, as follows:
􀂾􋹍Management’s Discussion and Analysis introduces the basic financial statements and provides an
analytical overview of the Regional Office’s financial activities.
􀂾􋹔The Government-wide financial statements consist of a Statement of Net Assets and a Statement of
Activities. These provide information about the activities of the Regional Office as a whole and
present an overall view of the Office’s finances.
􀂾􋹆Fund financial statements report the Regional Office’s operations in more detail than the government-wide
statements by providing information about the most significant funds.
􀂾􋹎Notes to the financial statements provide additional information that is needed for a full understanding
of the data provided in the basic financial statements.
􀂾􋹒Required supplementary information further explains and supports the financial statements and
supplementary information provides detailed information for each category of funds and about the
non-major funds.
Reporting the Office as a Whole
It is important to note, that many grants are a cooperative effort of the Regional Office of Education #27 and
the Rock Island County Regional Office of Education #49.
14
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
The Statement of Net Assets and the Statement of Activities
The Government-wide statements report information about the Regional Office of Education #27 as a whole.
The Statement of Net Assets includes all of the assets and liabilities. All of the current year revenues and
expenses are accounted for in the Statement of Activities regardless of when cash is received or paid, using
accounting methods similar to those used by private sector companies.
The Government-wide statements report the Regional Office’s net assets and how they have changed. Net
assets - the difference between the assets and liabilities - are one way to measure the Regional Office’s
financial health or position.
􀂾􋹏Over time, increases or decreases in the net assets can be an indicator of whether financial position is
improving or deteriorating, respectively.
􀂾􋹔To assess the Regional Office’s overall health, additional non-financial factors, such as new laws,
rules, regulations, and actions by officials at the state level need to be considered.
The Government-wide financial statements present the Regional Office’s activities as both governmental and
business-type activities. Local, state and federal aid finance most of these activities.
Fund Financial Statements
The fund financial statements provide detailed information about the Regional Office’s funds. Funds are
accounting devices that allow the tracking of specific sources of funding and spending on particular
programs. Some funds are required by state law. The Regional Office established other funds to control and
manage money for particular purposes.
The Office has two kinds of funds:
1) Governmental funds account for those funds through which most governmental functions of the
Regional Office are financed. These focus on how cash and other financial assets that can be
readily converted to cash flow in and out and the balances left at year-end that are available for
spending. Consequently, the governmental fund statements provide a detailed short-term view that
helps determine whether there are more or fewer resources that can be spent in the near future to
finance the Regional Office’s programs. The Office’s Governmental Funds include: the General
Fund and the Special Revenue Fund.
The governmental funds required financial statements include a Balance Sheet and a Statement of
Revenues, Expenditures, and Changes in Fund Balances.
2) Proprietary funds account for activities where the Regional Office charges customers for services.
These funds are most similar to a business that operates for a profit. The Regional Office has one
enterprise fund, the Staff Development Fund.
The proprietary fund required financial statements include a Statement of Net Assets, Statement of
Revenues, Expenses, and Changes in Fund Net Assets, and a Statement of Cash Flows.
15
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
16
Fund Financial Statements (continued)
A summary reconciliation between the government-wide financial statements and the fund financial
statements follows the fund financial statements.
Government-Wide Financial Analysis
As noted earlier, net assets may serve, when examined over time, as one indicator of the financial position of
the Regional Office. The net assets at the end of fiscal year 2011 totaled $885,295. At the end of fiscal year
2010, the net assets were $197,010. The analysis that follows provides a summary of the Regional Office’s
net assets as of June 30, 2011 and June 30, 2010, for the governmental and business-type activities.
CONDENSED STATEMENT OF NET ASSETS
2011 2010 2011 2010 2011 2010
Current assets $ 817,350 $ 952,248 $ 72,945 $ 67,030 $ 890,295 $ 1,019,278
Total assets 817,350 952,248 72,945 67,030 890,295 1,019,278
Current liabilities 5,000 822,268 - - 5,000 822,268
Total liabilities 5,000 822,268 - - 5,000 822,268
Net assets:
Unrestricted 609,928 104,177 72,945 67,030 682,873 171,207
Restricted for educational
purposes 202,422 25,803 - - 202,422 25,803
Total net assets $ 812,350 $ 129,980 $ 72,945 $ 67,030 $ 885,295 $ 197,010
Governmental Activities Business-Type Activities Total Primary Government
The Regional Office’s net assets increased by $688,285 from fiscal year 2010. This increase is primarily due
to the Monitoring program recognizing revenue in fiscal year 2011. However, the corresponding expenses
were recorded in fiscal year 2010.
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
Government-Wide Financial Analysis (Continued)
2011 2010 2011 2010 2011 2010
Revenues:
Program revenues
Charges for services $ - $ - $ 43,115 $ 53,771 $ 43,115 $ 53,771
Operating grants and
contributions 1,198,799 1,745,254 - - 1,198,799 1,745,254
General revenues
Local sources 493,634 470,529 - - 493,634 470,529
State sources 637 3,637 - - 637 3,637
Investment earnings 1,667 4,724 - - 1,667 4,724
Contributions not restricted - 8,486 - - - 8,486
On behalf payments 304,720 289,107 - - 304,720 289,107
Total revenues $ 1,999,457 $ 2,521,737 $ 43,115 $ 53,771 $ 2,042,572 $ 2,575,508
Expenses:
Program expenses
Salaries and benefits $ 699,419 $ 1,079,665 $ - $ 5,300 $ 699,419 $ 1,084,965
Purchased services 189,834 416,554 15,028 18,393 204,862 434,947
Governmental Activities Business-Type Activities Total
CHANGES IN NET ASSETS
17
Supplies and materials 111,293 98,977 2,172 3,387 113,465 102,364
Payments to other governments 30,101 561,064 - - 30,101 561,064
Capital outlay 1,720 11,036 - - 1,720 11,036
Administrative expenses
On-behalf payments - State 304,720 289,107 - - 304,720 289,107
Total expenses $ 1,337,087 $ 2,456,403 $ 17,200 $ 27,080 $ 1,354,287 $ 2,483,483
Transfers:
Transfers in $ 67,580 $ - $ 18,791 $ - $ 86,371 $ -
Transfers out (47,580) - (38,791) - (86,371) -
Total transfers $ 20,000 $ - $ (20,000) $ - $ - $ -
Change in net assets $ 682,370 $ 65,334 $ 5,915 $ 26,691 $ 688,285 $ 92,025
Net assets beginning of year,
as restated 129,980 64,646 67,030 40,339 197,010 104,985
Net assets end of year $ 812,350 $ 129,980 $ 72,945 $ 67,030 $ 885,295 $ 197,010
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
Governmental Activities
Revenues for governmental activities were $1,999,457 and expenses were $1,337,087 for the year ended
June 30, 2011. Revenues for governmental activities were $2,521,737 and expenses were $2,456,403 for the
year ended June 30, 2010. The decrease in revenues for governmental activities is primarily due to the ROE
declining the Early Childhood Block Grant for fiscal year 2011. The decrease in expenditures for
governmental activities is due primarily to the declining of the Early Childhood Block Grant for fiscal year
2011, as well as ROE #27 opting not to continue as the fiscal agent for the Monitoring program as it had
been in fiscal year 2010.
Financial analysis of the Henderson, Mercer and Warren Counties Regional Office of Education #27 Funds
As previously noted, the Henderson, Mercer and Warren Counties Regional Office of Education #27 uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The
Agency’s Governmental Funds reported combined fund balances of $784,136 at June 30, 2011 compared to
fiscal year 2010’s ending fund balance (deficit) of ($202,663). This increase in combined fund balances is
due to the above mentioned changes with the Early Childhood Block Grant and Monitoring programs.
During fiscal year 2011 the Regional Office of Education #27 implemented Governmental Accounting
Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions, which required certain programs and funds to be reclassified and restatement of beginning fund
balances as detailed in Note 13 to the financial statements. Because of these reclassifications the fund
analysis is not comparable between fiscal year 2010 and fiscal year 2011.
Budgetary Highlights
The Henderson, Mercer and Warren Counties Regional Office of Education #27 annually adopts budgets for
several funds. The Regional Superintendent annually prepares an Office Operations Budget and submits it to
the Henderson, Mercer and Warren Counties Boards for their approval. The Office Operations Budget
covers a fiscal year that runs from December 1 to November 30. All grant budgets are prepared by the
Henderson, Mercer and Warren Counties Regional Office of Education #27 and submitted to the granting
agency for approval. Amendments must be submitted under guidelines established by the granting agency.
Schedules showing the budget amounts compared to the Regional Office’s actual financial activity are
included in the supplementary information of this report.
Capital Assets
The Regional Office’s capital assets include office equipment, computers, audio-visual equipment, and
building improvements. The Regional Office maintains an inventory of capital assets which have been
accumulated over time. The Regional Office adopted a capitalization and depreciation threshold of $5,000
for GASB 34. As of June 30, 2011, there were no assets costing $5,000 or more.
18
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2011
19
Economic Factors and Next Year’s Budget
At the time these financial statements were prepared and audited, the Henderson, Mercer and Warren
Counties Regional Office of Education #27 was aware of several existing circumstances that could affect its
financial health in the future:
􀂾􋹒 ROE #27 received two new state grants for FY12, the 0-3 Early Childhood grant for $87,600 and the
3-5 Early Childhood grant for $791,808. These grants required the hiring of several new employees.
􀂾􋹒 ROE #27 also received an additional federal 21st Century Community Learning grant for $150,000
for the Monmouth-Roseville CUSD. This is in addition to the continuation of a 21st Century grant
for $298,682 for the West Central CUSD.
Contacting the Regional Office’s Financial Management
This financial report is designed to provide the Regional Office’s citizens, taxpayers, clients, and other
constituents with a general overview of its finances and to demonstrate the accountability for the money it
receives. If the reader has questions concerning this report or needs additional financial information, please
contact the Regional Superintendent of the Henderson, Mercer and Warren Counties Regional Office of
Education #27 at 200 West Broadway, Monmouth, Illinois 61462.
BASIC FINANCIAL STATEMENTS
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
STATEMENT OF NET ASSETS
June 30, 2011
Governmental Business-Type
Activities Activities Total
Current Assets:
Cash and cash equivalents $ 682,396 $ 46,226 $ 728,622
Due from other governmental units 134,913 26,719 161,632
Prepaid items 41 - 41
Total Current Assets 817,350 72,945 890,295
TOTAL ASSETS 817,350 72,945 890,295
Current Liabilities:
Due to other governmental units 5,000 - 5 ,000
TOTAL LIABILITIES 5,000 - 5 ,000
Unrestricted 609,928 72,945 682,873
Restricted for educational purposes 202,422 - 202,422
Primary Government
ASSETS
LIABILITIES
NET ASSETS
20
TOTAL NET ASSETS $ 812,350 $ 72,945 $ 885,295
The notes to the financial statements are an integral part of this statement.
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2011
Operating
Charges for Grants and Governmental Business-Type
FUNCTIONS/PROGRAMS Expenses Services Contributions Activities Activities Total
Primary government:
Governmental activities:
Instructional Services:
Salaries and benefits $ 699,419 $ - $ 597,775 $ (101,644) $ - $ (101,644)
Purchased services 189,834 - 334,402 144,568 - 144,568
Supplies and materials 111,293 - 161,800 50,507 - 50,507
Payments to other governments 30,101 - 14,359 (15,742) - (15,742)
Capital outlay 1,720 - 2,030 310 - 310
Administrative:
On-behalf payments-State 304,720 - 88,433 (216,287) - (216,287)
Total governmental activities 1,337,087 - 1,198,799 (138,288) - (138,288)
Business-type activities:
Staff Development 17,200 43,115 - - 25,915 25,915
Total business-type activities 17,200 43,115 - - 25,915 25,915
Total primary government $ 1,354,287 $ 43,115 $ 1,198,799 (138,288) 25,915 (112,373)
General revenues:
Primary Government
Program Revenues
Net (Expenses)/Revenues and
Changes in Net Assets
Local sources 493,634 - 493,634
State sources 637 - 637
Investments earnings 1,667 - 1,667
On-behalf payments 304,720 - 304,720
Transfers 20,000 (20,000) -
Total general revenues and transfers 820,658 (20,000) 800,658
Change in net assets 682,370 5,915 688,285
Net assets - beginning 129,980 67,030 197,010
Net assets - ending $ 812,350 $ 72,945 $ 885,295
The notes to the financial statements are an integral part of this statement.
21
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2011
Other Total
General Education Non-Major Governmental
Fund Fund Funds Funds
ASSETS
Cash and cash equivalents $ 497,579 $ 144,108 $ 40,709 $ 682,396
Due from other funds 84,573 - - 84,573
Due from other governmental units 35,826 99,087 - 134,913
Prepaid items 10 31 - 41
TOTAL ASSETS $ 617,988 $ 243,226 $ 40,709 $ 901,923
LIABILITIES AND FUND BALANCE
LIABILITIES
Due to other funds $ 3,061 $ 73,607 $ 7,905 $ 84,573
Due to other governmental units 5,000 - - 5,000
Deferred revenue - 28,214 - 28,214
Total liabilities 8,061 101,821 7,905 117,787
FUND BALANCES
Nonspendable 10 31 - 41
Restricted - 169,548 40,709 210,257
Assigned 78,514 - - 78,514
Unassigned 531,403 (28,174) (7,905) 495,324
Total fund balances 609,927 141,405 32,804 784,136
TOTAL LIABILITIES AND FUND BALANCES $ 617,988 $ 243,226 $ 40,709 $ 901,923
The notes to the financial statements are an integral part of this statement.
22
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
RECONCILIATION OF THE BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
GOVERNMENTAL FUNDS
June 30, 2011
Total fund balances - governmental funds $ 784,136
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. -
Because some revenues will not be collected for several months
after the Regional Office fiscal year ends, they are not
considered "available" revenues and are deferred in the
governmental funds. 28,214
Net assets of governmental activities $ 812,350
The notes to the financial statements are an integral part of this statement.
23
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For the Year Ended June 30, 2011
Other Total
General Education Non-Major Governmental
Fund Fund Funds Funds
Revenues:
Local sources $ 481,143 $ - $ 12,491 $ 493,634
State sources 182,458 780,067 6 37 963,162
Federal sources - 540,703 - 540,703
Interest 1,640 - 27 1,667
On-behalf payments from State 304,720 - - 304,720
Total revenues 969,961 1,320,770 13,155 2,303,886
Expenditures:
Instructional services:
Salaries and benefits 220,913 478,423 8 3 699,419
Purchased services 96,980 84,680 8,174 189,834
Supplies and materials 18,085 92,079 1,129 111,293
Payments to other governments - 30,101 - 30,101
On-behalf payments to TRS and State 304,720 - - 304,720
Capital outlay - 1,720 - 1,720
Total expenditures 640,698 687,003 9,386 1,337,087
Excess of revenues over expenditures 329,263 633,767 3,769 966,799
Other financing sources (uses):
Transfers in 67,291 2 89 - 67,580
Transfers out (38,258) (9,322) - (47,580)
Net other sources and uses of
financial resources 29,033 (9,033) - 20,000
Net change in fund balances 358,296 624,734 3,769 986,799
Fund balances - beginning (restated - see Note 13) 251,631 (483,329) 29,035 (202,663)
Fund balances - ending $ 609,927 $ 141,405 $ 32,804 $ 784,136
The notes to the financial statements are an integral part of this statement.
24
Net change in fund balances $ 986,799
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 expenditures per the fund financials $ -
Capital outlay expenditures per the government wide statement -
Capital outlay expenditures that are capitalized -
Depreciation expense - -
Because some revenues will not be collected for several months after
the Regional Office fiscal year ends, they are not considered "available"
revenues and are deferred in the governmental funds. 28,214
Prior year revenues that were deferred in the governmental funds
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
For the Year Ended June 30, 2011
25
because they were not considered "available" have now been
recognized as revenue in the governmental funds. (332,643)
Changes in net assets of governmental activities $ 682,370
The notes to the financial statements are an integral part of this statement.
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
STATEMENT OF NET ASSETS
PROPRIETARY FUND
June 30, 2011
Enterprise
Fund
Staff
Development
ASSETS
Current assets:
Cash and cash equivalents $ 46,226
Due from other governmental
units and agencies 26,719
TOTAL ASSETS $ 72,945
NET ASSETS
Unrestricted $ 72,945
The notes to the financial statements are an integral part of this statement.
26
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUND
For the Year Ended June 30, 2011
Enterprise
Fund
Staff
Development
OPERATING REVENUES:
Charges for services $ 43,115
Total operating revenues 43,115
OPERATING EXPENSES:
Purchased services 15,028
Supplies and materials 2,172
Total operating expenses 17,200
Operating income (loss) before transfers 25,915
OTHER FINANCING SOURCES (USES)
Transfer in 18,791
Transfer out (38,791)
Total other financing sources and uses (20,000)
Change in net assets 5,915
TOTAL NET ASSETS - BEGINNING OF YEAR 67,030
TOTAL NET ASSETS - END OF YEAR $ 72,945
The notes to the financial statements are an integral part of this statement.
27
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
For the Year Ended June 30, 2011
Enterprise
Fund
Staff
Development
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from other funds for goods and services provided $ 41,596
Payments to suppliers and providers of goods and services (17,200)
Payments made to other funds for operating expenses (20,000)
Net cash provided by (used for) operating activities 4,396
Net increase (decrease) in cash and cash equivalents 4,396
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 41,830
CASH AND CASH EQUIVALENTS - END OF YEAR $ 46,226
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES:
Operating income (loss) $ 5,915
Adjustments to reconcile operating income (loss) to net cash
provided by (used for) operating activities:
Increase in due from other governmental units and agencies (1,519)
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES $ 4,396
The notes to the financial statements are an integral part of this statement.
28
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of Henderson, Mercer and Warren Counties Regional Office of Education
#27 (ROE) conform to accounting principles generally accepted in the United States of America for
governmental entities. The following is a summary of the significant accounting policies.
The Regional Superintendent is responsible for supervision and control of school districts within
Henderson, Mercer and Warren Counties. This includes all aspects of supervision, reports and
financial accounting of districts which are considered by state law to be in the Service Region. In
addition, the Regional Superintendent is charged with responsibility for township fund lands;
registration of the names of applicants for scholarships to state controlled universities; examinations
and related duties; visitation of public schools; direction of teachers and school officers; to serve as
the official advisor and assistant of school officers and teachers, to conduct teachers institutes as well
as to aid and encourage the formation of other teachers meetings and assist in their management;
evaluate the schools in Henderson, Mercer and Warren Counties; examine evidence of indebtedness;
file and keep the returns of elections required to be returned to the Regional Superintendent’s office;
and file and keep the reports and statements returned by school treasurers and trustees.
The Regional Superintendent is also charged with the responsibilities of conducting a special census,
when required, providing notice of money distributed to treasurers, board presidents, clerks, and
secretaries of the school districts on or before each September 30; maintenance of a map and
numbering of the Henderson, Mercer and Warren Counties districts; providing township treasurers
with a list of district treasurers; to inspect and approve building plans which comply with state law;
to perform and report on annual building inspections; investigate bus drivers for valid bus driver
permits and take related action as may be required to maintain a list of unfilled teaching positions
and to carry out other related duties required or permitted by law.
The Regional Superintendent is responsible for inspection and approval or rejection of school
treasurer’s bonds. The Regional Superintendent is also required to provide the State Board of
Education with an affidavit showing that the treasurers of school districts under his control are
properly bonded.
The Regional Superintendent is also responsible for apportionment and payment of funds received
from the state for the districts in Henderson, Mercer and Warren Counties or see that no payments
are made unless the treasurer has filed or renewed appropriate bond and that the district has certified
publication of the annual financial report. The Regional Superintendent is required to provide
opinions and advice related to controversies under school law.
For the period ended June 30, 2011, Henderson, Mercer and Warren Counties Regional Office of
Education #27 applied for, received, and administered numerous state and federal programs and
grants in assistance and support of the educational activities of the school districts in Henderson,
Mercer and Warren Counties. Such activities are reported as a single special revenue fund
(Education Fund).
29
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
REPORTING ENTITY
The ROE’s reporting entity includes all related organizations for which it exercises oversight
responsibility.
The ROE has developed criteria to determine whether outside agencies with activities which benefit
the citizens of the region, including joint agreements which serve pupils from numerous school
districts, should be included within its financial reporting entity. The criteria include, but are not
limited to, whether the ROE exercises oversight responsibility (which includes financial
interdependency, selection of governing authority, designation of management, ability to
significantly influence operations, and accountability for fiscal matters), scope of public service, and
special financing relationships.
Certain joint agreements have been determined not to be part of the reporting entity after applying
the manifesting of oversight, scope of public service, and special financing relationships criteria and
are therefore excluded from the accompanying financial statements because the ROE does not
control the assets, operations, or management of the joint agreements. However, Progressive
Alternative Secondary School (PASS) was determined to be part of the reporting entity and, as such,
is reflected as part of these financial statements. In addition, the ROE is not aware of any entity
which would exercise such oversight as to result in the ROE being considered a component of the
entity.
BASIS OF PRESENTATION – GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS
Government-wide Financial Statements – The Statement of Net Assets and the Statement of
Activities report information on all of the nonfiduciary activities of the primary government.
The Statement of Net Assets presents the Henderson, Mercer and Warren Counties Regional Office
of Education #27 nonfiduciary assets and liabilities, with the difference reported as net assets.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function. Program revenues include 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 and
contributions that are restricted to meeting the operational or capital requirements of a particular
function. Other items not properly included among program revenues are reported instead as general
revenues. Major individual governmental funds are reported as separate columns in the fund
financial statements.
The statements are separated by governmental and business-type activities. The only business-type
activity for the ROE is the Staff Development Fund, which accounts for fees that are charged for the
development of staff for educators in west central Illinois.
30
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
BASIS OF PRESENTATION – GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS (Continued)
Fund Financial Statements – The accounts of the ROE are organized on the basis of funds, each of
which is considered a separate accounting entity. The operations of each fund are accounted for with
a separate set of self-balancing accounts comprised of its assets, liabilities, fund balance, revenues,
and expenditures. The ROE’s resources are allocated to and accounted for in individual funds based
upon the purposes for which they are to be spent and the means by which spending activities are
controlled. Major individual governmental funds are reported as separate columns in the fund
financial statements. All remaining governmental funds are aggregated and reported as other non-major
governmental funds.
Governmental Fund Types
Governmental Funds are those through which most governmental functions of the ROE are financed.
The acquisition, use, and balances of the ROE’s expendable financial resources and the related
current liabilities are accounted for through Governmental Funds. The ROE’s major Governmental
Funds include the following:
General Fund – The General Fund is used to account for resources traditionally associated with
government which are not required, legally or by sound financial management, to be accounted for in
another fund. The General Fund is always considered a major fund. General Funds include the
following:
ROE #27 Fund – This fund accounts for monies received for and in payment of expenditures
in connection with general administrative activities.
General State Aid – To account for the administration of monies to be received for, and
payment of, expenditures for the Progressive Alternative Secondary School.
Even Start - Local – To account for local grant monies received for, and payment of,
expenditures incurred for the Even Start program.
High Roads Youth Program – To account for the grant monies received for, and payment of,
expenditures incurred for the High Roads Youth Program.
Incoming Freshman Academy – To account for the grant monies received for, and payment
of, expenditures incurred for the Incoming Freshman Academy Program.
American College Test (ACT) Class – To account for the administration of classes to
prepare students for the ACT.
Criminal Background Investigation – To account for the assessments received from the
school districts to pay for the processing of background checks of substitute teachers and
expenditures incurred providing this service to the school districts.
31
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
BASIS OF PRESENTATION – GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS (Continued)
Education Administration – To account for the stewardship of the assets held in trust per
agreement with the Boards of Education of the local school districts on the use of interest
earnings earned from temporary investment of distributive funds.
Education Fund – The Education Fund is used to account for and report the proceeds of specific
revenue sources that are restricted by grant agreements or contracts to expenditures for specified
purposes supporting education enhancement programs as follows:
Title I – Reading First Part B SEA Funds – To account for funds received to provide
assistance to school districts in establishing reading programs for students in kindergarten
through third grade that are based on scientific reading research. Reading First also focuses
on teacher development and ensuring that all teachers, including special education teachers,
have the tools they need to effectively help their students learn to read.
McDonough/Hancock ROE Homeless Grant – To account for grant monies received for, and
payment of, expenditures incurred for the Homeless Grant from the McDonough/Hancock
ROE.
KIDS Standards Aligned Classroom – To account for the grant monies received for, and
payment of, expenditures incurred for the KIDS Standards Aligned Classroom.
Illinois Violence Prevention Act (IVPA) Mini-Grant – To account for funds received from
IVPA to provide community awareness, coordination and training to impede family
violence.
Early Childhood - Block Grant – To account for the grant monies received for, and payment
of, expenditures incurred for the Early Childhood Block Grant.
Early Childhood – Monitoring – To account for the grant monies received for, and payment
of, expenditures incurred for the Early Childhood – Monitoring Grant.
Gifted Education – To account for the grant monies received for, and payment of,
expenditures incurred for the Gifted Education Grant.
Workforce Investment – To account for the funds received from the Workforce Investment
Office of Western Illinois to assist economically disadvantaged youth in finding the
appropriate services needed to remove barriers to successful participation in employment.
32
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
BASIS OF PRESENTATION – GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS (Continued)
Title IV 21st Century Community Learning Centers – To create community learning centers
that provide academic enrichment opportunities for children, particularly students who
attend high-poverty and low-performing schools, to meet State and local student standards in
core academic subjects, to offer students a broad array of enrichment activities that can
complement their regular academic programs, and to offer literacy and other educational
services to the families of participating children.
Title I Grant to Local Educational Agency Part A – To account for the monies received for,
and payment of, expenditures incurred for the Title I Local Educational Agency Part A
Grant.
Title II Teacher Quality Leadership – To account for the monies received for, and payment
of, expenditures incurred for the Title II Teacher Quality Leadership Program.
Progressive Alternative Secondary School (P.A.S.S.) – To account for the administration of
monies used for the following sources:
ARRA – Education Jobs - To account for grant monies received for and in payment
of expenditures for activities to save or create education jobs during the 2010-2011
school year.
Adult Education and Family Literacy – State Basic – To account for grant monies
received for, and payment of, expenditures incurred for students in high school,
General Educational Development, and computer classes with high reading level.
Adult Education and Family Literacy – State Performance – To account for grant
monies for formula-driven rewards for successful completion of the program.
Adult Education and Family Literacy – Public Assistance – To account for grant
monies received from the Department of Human Services for expenditures incurred
for educational services given for students on public assistance.
Regional Safe Schools – To account for the administration of monies to be used for
the Regional Safe Schools Program funded by the Illinois State Board of Education.
Federal Adult Education - Basic – To account for federal grant monies received for,
and payment of, education and literacy for adults.
Title II – Teacher Quality – To account for grant monies received to assist school
districts in educating school staff in the use of technology and telecommunications
in instructional and administrative functions.
33
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
BASIS OF PRESENTATION – GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS (Continued)
Health Literacy – To account for grant monies received for, and payment of,
expenditures for the Health Literacy Program.
State Free Lunch and Breakfast – To account for grant monies received for, and
payment of, expenditures for the State Free Lunch and Breakfast Program.
National School Lunch Program – To account for grant monies received for, and
payment of, expenditures for the National School Lunch Program.
School Breakfast Program – To account for grant monies received for, and payment
of, expenditures for the School Breakfast Program.
The ROE also reports the following non-major governmental funds:
Non-Major Special Revenue Funds – Special Revenue Funds are used to account for and report the
proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.
The ROE’s non-major special revenue funds include the following:
General Education Development (GED) – To account for the revenues and expenditures
associated with the processing of applications for the high school level GED test and the
issuance of diplomas upon successful completion of the examination.
Bus Driver Training – To account for the stewardship of the assets held in trust in
connection with the Bus Driver Training Program.
Supervisory Expense – To account for resources accumulated for, and payment of,
expenditures incurred in providing supervisory services.
Institute – To account for fees collected for the registration and renewal of teaching
certificates. These fees are used to defray administrative expenses incidental to teachers’
institutes, workshops, or meetings of a professional nature that are designed to promote the
professional growth of teachers or for the purpose of defraying the expense of any general or
special meeting of teachers or school personnel. All funds generated remain restricted until
expended only on the aforementioned activities.
Proprietary Fund Types
Enterprise Fund – Used to account for resources from fees charged directly to those entities
or individuals that use the services of the ROE. This consists mainly of monies received for,
and payment of, expenditures for workshops and other services for the school districts. The
ROE’s enterprise funds include the following:
34
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
BASIS OF PRESENTATION – GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS (Continued)
Staff Development – To account for local revenues and disbursements related to the
development of staff.
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
Measurement focus refers to what is being measured. Basis of accounting refers to when revenues
and expenditures are recognized in the accounts and reported in the financial statements. Basis of
accounting relates to the timing of the measurement made, regardless of the measurement focus
applied.
Accounting records are maintained on the cash basis of accounting. Under this method, revenue is
recorded when collected and expenditures are recorded when disbursements are made. The financial
statements of the Henderson, Mercer and Warren Counties Regional Office of Education #27 are
prepared by making memorandum adjusting entries to the cash basis financial records.
The government-wide financial statements and the proprietary fund financial statements are reported
using the economic resources measurement focus and the accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing
of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been satisfied.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under the modified accrual basis
of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and
available. Available means collectible within the current period or soon enough thereafter to be used
to pay liabilities of the current period. For this purpose, the ROE considers revenues to be available
if they are collected within sixty days of the end of the current fiscal period. Revenues received
more than sixty days after the end of the current period are deferred in the governmental fund
financial statements, but are recognized as current revenues in the government-wide financial
statements. Expenditures are recognized under the modified accrual basis of accounting when the
related fund liability is incurred.
Under the terms of grant agreements, Henderson, Mercer and Warren Counties Regional Office of
Education #27 funds certain programs by a combination of specific cost-reimbursement grants and
general revenues. Thus, when program expenses are incurred, there are both restricted and
unrestricted funding sources available to finance the program. It is the Henderson, Mercer and
Warren Counties Regional Office of Education #27’s policy to first apply restricted funds, then
unrestricted. For unrestricted fund balance, committed funds are used first, then assigned funds, then
unassigned if any.
35
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (Continued)
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund’s principal ongoing operations. The principal operating
revenues of the Agency’s enterprise fund is charges to customers for services. Operating expenses
for enterprise funds include the cost of sales and services and administrative expenses. All revenues
and expenses not meeting this definition are reported as nonoperating revenues and expenses.
GOVERNMENTAL FUND BALANCES
Fund Balance is the difference between assets and liabilities in a Governmental Fund. The following
types of fund balances may be presented in the Governmental Funds Balance Sheet and
Governmental Funds Combining Schedule of Accounts:
Nonspendable Fund Balance – the portion of a Governmental Fund’s net assets that are not
available to be spent, either short term or long term, in either form or through legal
restrictions. The nonspendable fund balance reported is for prepaid expenses from ROE #27
Fund, Even Start Local, Early Childhood – Block Grant, and Title IV 21st Century
Community Learning Centers.
Restricted Fund Balance – the portion of a Governmental Fund’s net assets that are subject
to external enforceable legal restrictions. The following accounts fund balances are
restricted by grant agreements or contracts: McDonough/Hancock ROE Homeless Grant,
Early Childhood – Block Grant, Early Childhood – Monitoring, Gifted Education,
Workforce Investment, Title IV 21st Century Community Learning Centers, Title I Grant to
Local Educational Agency Part A, Title II Teacher Quality Leadership, Regional Safe
Schools, Federal Adult Education – Basic, Title II Teacher Quality, State Free Lunch and
Breakfast, National School Lunch Program, and School Breakfast Program. The following
funds are restricted by Illinois Statute: Bus Driver Training, Supervisory Expense, and
Institute.
Committed Fund Balance – the portion of a Governmental Fund’s net assets with self-imposed
constraints or limitations that have been placed at the highest level of decision
making. There are no accounts presenting a committed fund balance.
Assigned Fund Balance – the portion of a Governmental Fund’s net assets to denote an
intended use of resources. The accounts presented with assigned fund balances are specified
for a particular purpose by the Regional Superintendent. The accounts presenting an
assigned fund balance are Even Start Local, High Roads Youth Program, Incoming
Freshman Academy, and American College Test Class.
36
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
GOVERNMENTAL FUND BALANCES (Continued)
Unassigned Fund Balance – available expendable financial resources in a governmental fund
that are not designated for a specific purpose. The unassigned fund balance is made up of
ROE #27 Fund and General State Aid, and the negative fund balances for Criminal
Background Investigation, Adult Education and Family Literacy – State Basic, Adult
Education and Family Literacy – State Performance, Adult Education and Family Literacy –
Public Assistance, and General Education Development.
NET ASSETS
Equity is classified as net assets. Net assets represent the difference between assets and liabilities
and is displayed in three components:
Invested in capital assets, net of related debt – Consists of capital assets including restricted
capital assets, net of accumulated depreciation and reduced by the outstanding balances of
any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition,
construction, or improvement of those assets.
Restricted net assets – Consists of net assets with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, or laws or regulations of other
governments; or (2) law through constitutional provisions or enabling legislation.
Unrestricted net assets – All other net assets that do not meet the definition of “restricted” or
“invested in capital assets, net of related debt.”
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues, expenditures, gains, losses,
and other changes in fund balance during the reporting period. Actual results could differ from those
estimates.
BUDGETS
The ROE does not adopt a formal budget for all revenues and expenditures of the governmental
funds and is not legally required to do so. The Regional Office of Education Funds are controlled by
the Regional Superintendent of Education and the State of Illinois. Certain programs administered
by the ROE are subject to budget approval by the State of Illinois. The actual to budget comparisons
are prepared on the modified accrual basis of accounting. The following accounts/funds prepare
budgets:
37
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
BUDGETS (Continued)
Educational Grants:
Title I – Reading First Part B SEA
McDonough/Hancock ROE Homeless Grant
Title IV – 21st Century Community Learning Centers
Title II Teacher Quality Leadership
Adult Education and Family Literacy – State Basic
Adult Education and Family Literacy – State Performance
Adult Education and Family Literacy – Public Assistance
Regional Safe Schools
Federal Adult Education - Basic
Title II – Teacher Quality
TEACHER CERTIFICATION
Teacher certification revenues are recognized over a five year period when applicable.
REVENUES – EXCHANGE AND NON-EXCHANGE TRANSACTIONS
Revenue resulting from exchange transactions, in which each party gives and receives essentially
equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual
basis, revenue is recorded in the fiscal year in which the resources are measurable and become
available.
Non-exchange transactions, in which the ROE receives value without directly giving value in return,
include grants and donations. On an accrual basis, revenue from grants and donations is recognized
in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements
include timing requirements, which specify the year when the resources are required to be used or
the fiscal year when use is first permitted, matching requirements, in which the ROE must provide
local resources to be used for specific purpose, and expenditure requirements, in which the resources
are provided to the ROE on a reimbursement basis. On a modified accrual basis, revenue from non-exchange
transactions must be available before it can be recognized.
CAPITAL ASSETS
General capital assets generally result from expenditures in the governmental funds. These assets are
reported in the governmental activities column of the government-wide Statement of Net Assets.
Purchases of equipment are recorded as capital outlay expenditures of the various funds. All capital
assets are capitalized at cost or estimated historical cost and updated for additions and retirements
during the year. The ROE capitalizes items costing $5,000 or more. As of June 30, 2011, there were
no items costing $5,000 or more.
38
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
DEFERRED REVENUES
The ROE reports unearned deferred revenue in the governmental fund Balance Sheet. Deferred and
unearned revenue arises when potential revenue does not meet both the measurable and available
criteria for recognition in the current period.
INVESTMENTS AND CASH ACCOUNTS
State regulations require that the ROE deposit funds under its control into accounts insured by the
federal government, secured by substantial collateral or into pooled investment trusts. All funds not
needed for immediate disbursements are maintained in interest bearing accounts. Statutes authorize
the ROE to make deposits or invest in obligation of states and their political subdivisions, savings
accounts, credit union shares, repurchase agreements, commercial paper rated within the three
highest classifications by at least two standard rating services, and the Illinois Public Treasurer’s
Investment Pool.
REVENUES FROM FEDERAL AND STATE GRANTS
Revenues from federal and state grant awards are recorded net of the amount due to the State for the
unused portion of the grant or the amount carried over to the following fiscal year project. Amounts
due to the state or carried over to the following year project are recorded as liabilities.
DUE FROM OTHER GOVERNMENTAL UNITS AND AGENCIES
Due from other governmental units and agencies is reported at gross with no allowance for
uncollectibles since management feels the amount of any uncollectible accounts is immaterial.
ACCUMULATED UNPAID VACATION AND SICK PAY
Sick pay must be accumulated but does not vest with the employee. Vacation time must be used
during the calendar year earned or it is forfeited. Any accruals as of June 30 are considered
immaterial.
INTERFUND RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds that may
result in amounts owed between funds and are classified as “due to and from other funds.” Interfund
receivables and payables between funds within governmental activities are eliminated in the
Statement of Net Assets.
39
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
NEW ACCOUNTING STANDARDS
In fiscal year 2011, the ROE implemented Governmental Accounting Standards Board (GASB)
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, GASB
Statement No. 59, Financial Instruments Omnibus, and GASB Statement No. 62, Codification of
Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and
AICPA Pronouncements. The ROE implemented these standards during the current year; however,
GASB Statements No. 59 and 62 had no impact on the financial statements. The implementation of
GASB Statement No. 54 changed fund balance reporting for governmental funds by adding some
additional fund balance classifications, clarifying governmental fund type definitions, and providing
additional disclosures on how fund balance constraints are imposed and may be modified or
eliminated.
2. INTERGOVERNMENTAL AGREEMENT
Henderson, Mercer and Warren Counties Regional Office of Education #27 entered into an
Intergovernmental Agreement with Rock Island Regional Office of Education #49 executed pursuant
to the provisions of the Intergovernmental Cooperation Clause of the Illinois Constitution as well as
the provisions of the Intergovernmental Cooperation Act of 1973 and the Illinois Admin. Code
525.110.
3. CASH
The Illinois Compiled Statutes authorize the ROE to make deposits and invest in U.S. Government,
State of Illinois, and municipal securities; certificates of deposit or time savings deposits insured by
the FDIC; mortgage notes, bonds, or debentures issued by the Federal Housing Administration;
bonds and other obligations of the Federal National Mortgage Association; commercial paper rated
within the three highest classifications by at least two standard rating services; credit union shares;
and the Illinois Public Treasurer’s Investment Pool.
At June 30, 2011, the carrying amount of the ROE’s various bank deposits totaled $728,622
and the bank balances totaled $747,477. Included in the bank balance is $24,999 deposited in the
Illinois Funds. The Illinois Funds portfolio includes: certificates of deposit issued by Illinois
financial institutions, repurchase agreements backed by direct treasury obligations from primary
government securities dealers, direct treasury obligations of the U.S. Government, and money
market funds backed by full faith and credit obligations of the U.S. Government. The ROE owns no
identifiable investment securities in the Illinois Funds; therefore, credit risk cannot be assessed for
the Illinois Funds.
Custodial credit risk is the risk that in the event of a bank failure, the ROE’s deposits may not be
returned to it. The ROE does not have a deposit policy for custodial credit risk. As of June 30,
2011, $357,562 of the deposits made by the ROE were covered by the Federal Depository Insurance
Corporation (FDIC), and the remaining $389,915 were collateralized by the respective financial
institution.
40
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
4. RECEIVABLES/PAYABLES
Receivables for the Henderson, Mercer and Warren Counties ROE #27 at June 30, 2011, are as
follows:
Due from Other
Governmental Units Other Total
Governmental activities:
General $ 35,826 $ - $ 35,826
Education 99,087 - 99,087
Business-type activities:
Staff Development 26,719 - 26,719
Total $ 161,632 $ - $ 161,632
Payables for the Henderson, Mercer and Warren Counties ROE #27 at June 30, 2011, are as follows:
Due to Other
Governmental Units Other Total
Governmental activities:
General $ 5,000 $ - $ 5,000
Total governmental activities $ 5,000 $ - $ 5,000
5. DUE TO/FROM OTHER GOVERNMENTS
The Henderson, Mercer and Warren Counties Regional Office of Education #27’s governmental
activities have amounts due to and due from various other governmental units which consist of the
following:
Due From Other Governmental Units:
Illinois State Board of Education $ 32,229
Illinois Community College Board 47,068
Other Regional Office of Education 42,759
Other Governments 39,576
Total $161,632
Due To Other Governmental Units:
Other School Districts $ 5,000
41
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
6. INTERFUND TRANSACTIONS
DUE TO/FROM OTHER FUNDS
The Henderson, Mercer and Warren Counties ROE #27 had the following due to/from other fund
balances for the year ended June 30, 2011 due to the State of Illinois being slow in paying funds for a
couple of the ROE’s programs:
Due from Due to
General Fund
ROE #27 Fund $ 10,966 $ -
General State Aid 73,607 -
Criminal Background Investigation - 3,061
Education Fund
ARRA - Education Jobs - 7,410
Adult Ed - State Basic - 24,556
Adult Ed - State Performance - 12,597
Adult Ed - Public Assistance - 9,875
Regional Safe Schools - 19,169
Non-Major Fund
General Education Development - 7,905
Total $ 84,573 $ 84,573
INTERFUND TRANSFERS
During the year ended June 30, 2011, the ROE made transfers between funds to help cover costs of
other funds and to properly close inactive funds. The amounts transferred between accounts are
shown as transfers in the Statement of Revenues, Expenditures, and Changes in Fund Balance. The
detail of interfund transfers for the year ended June 30, 2011 is as follows:
Transfers in Transfers out
General Fund
ROE #27 Fund $ 66,991 $ 289
General State Aid 300 -
Education Administration - 37,969
Education Fund
Title I Reading First Part B SEA Funds 289 -
KIDS Standards Aligned Classroom - 3,100
Illinois Violence Prevention Act Mini-Grant - 5,922
Health Literacy - 300
Proprietary Fund
Staff Development 18,791 38,791
Total $ 86,371 $ 86,371
42
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
7. RETIREMENT PLANS
All certified personnel participate in the Teachers’ Retirement System of the State of Illinois (TRS)
and the Teacher Health Insurance Security (THIS) Fund. All other employees who meet or exceed
prescribed annual hourly standards are enrolled in the Illinois Municipal Retirement Fund (IMRF).
TRS Plan Description
The ROE (employer) participates in the Teachers’ Retirement System of the State of Illinois (TRS).
TRS is a cost-sharing multiple-employer defined benefit pension plan that was created by the Illinois
legislature for the benefit of Illinois public school teachers employed outside the city of Chicago.
The Illinois Pension Code outlines the benefit provisions of TRS, and amendments to the plan can be
made only by legislative action with the Governor’s approval. The State of Illinois maintains the
primary responsibility for funding the plan, but contributions from participating employers and
members are also required. The TRS Board of Trustees is responsible for the system’s
administration.
TRS members include all active nonannuitants who are employed by a TRS-covered employer to
provide services for which teacher certification is required. The active member contribution rate for
the year ended June 30, 2011 was 9.4 percent of creditable earnings. The same contribution rate
applies to members whose first contributing service is on or after January 1, 2011, the effective date
of the benefit changes contained in Public Act 96-0889. These contributions, which may be paid on
behalf of employees by the employer, are submitted to TRS by the employer. The active member
contribution rate was also 9.4 percent for the years ended June 30, 2010 and 2009.
The State of Illinois makes contributions directly to TRS on behalf of the ROE’s TRS-covered
employees.
• On-behalf Contributions to TRS. The State of Illinois makes employer pension
contributions on behalf of the ROE. For the year ended June 30, 2011, State of Illinois
contributions were based on 23.10 percent of creditable earnings not paid from federal funds,
and the ROE recognized revenue and expenditures of $84,557 in pension contributions that
the State of Illinois paid directly to TRS. For the years ended June 30, 2010, and June 30,
2009, the State of Illinois contribution rates as percentages of creditable earnings not paid
from federal funds were 23.38 percent ($73,693) and 17.08 percent ($33,375), respectively.
The ROE makes other types of employer contributions directly to TRS.
• 2.2 Formula Contributions. Employers contribute 0.58 percent of total creditable earnings
for the 2.2 formula change. This rate is specified by statute. Contributions for the year
ended June 30, 2011 were $1,094. Contributions for the years ended June 30, 2010, and
June 30, 2009, were $827 and $1,133, respectively.
43
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
RETIREMENT PLANS (Continued)
TRS Plan Description (Continued)
• Federal and Special Trust Fund Contributions. When TRS members are paid from federal
and special trust funds administered by the ROE, there is a statutory requirement for the
ROE to pay an employer pension contribution from those funds. Under a policy adopted by
the TRS Board of Trustees that was first effective for the fiscal year ended June 30, 2006,
employer contributions for employees paid from federal and special trust funds will be the
same as the state contribution rate to TRS.
For the year ended June 30, 2011, the employer pension contribution was 23.10 percent of
salaries paid from federal and special trust funds. For the years ended June 30, 2010 and
2009, the employer contribution was 23.38 and 17.08 percent of salaries paid from federal
and special trust funds, respectively. For the year ended June 30, 2011, salaries totaling
$58,453 were paid from federal and special trust funds that required employer contributions
of $13,503. For the years ended June 30, 2010 and June 30, 2009, required ROE
contributions were $1,165 and $1,209, respectively.
• Early Retirement Option (ERO). The ROE is also required to make one-time employer
contributions to TRS for members retiring under the Early Retirement Option (ERO). The
payments vary depending on the age and salary of the member.
The maximum employer ERO contribution is 117.5 percent and applies when the member is
age 55 at retirement.
For the year ended June 30, 2011, the ROE paid $-0- to TRS for employer contributions
under the ERO program. For the years ended June 30, 2010 and June 30, 2009, the ROE
made no payments under the ERO.
• Salary Increases Over 6 Percent and Excess Sick Leave. If an employer grants salary
increases over 6 percent and those salaries are used to calculate a retiree’s final average
salary, the employer makes a contribution to TRS. The contribution will cover the
difference in actuarial cost of the benefit based on actual salary increases and the benefit
based on salary increases of up to 6 percent.
For the year ended June 30, 2011, the ROE paid $-0- to TRS for employer contributions due
on salary increases in excess of 6 percent. For the year ended June 30, 2010 and June 30,
2009, the ROE paid $-0- and $-0- to TRS for employer contributions due on salary increases
in excess of 6 percent, respectively.
If an employer grants sick leave days in excess of the normal annual allotment and those
days are used as TRS service credit, the employer makes a contribution to TRS. The
contribution is based on the number of excess sick leave days used as service credit, the
highest salary used to calculate final average salary, and the TRS total normal cost rate
(18.03 percent of salary during the year ended June 30, 2011, as recertified pursuant to
Public Act 96-1511).
44
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
RETIREMENT PLANS (Continued)
TRS Plan Description (Continued)
For the year ended June 30, 2011, the ROE paid $-0- to TRS for sick leave days granted in
excess of the normal annual allotment. For the year ended June 30, 2010 and June 30, 2009,
the ROE paid $-0- and $-0- in employer contributions granted for sick leave days,
respectively.
TRS financial information, an explanation of TRS benefits, and descriptions of member, employer,
and state funding requirements can be found in the TRS Comprehensive Annual Financial Report for
the year ended June 30, 2010. The report for the year ended June 30, 2011, is expected to be
available in late 2011.
The reports may be obtained by writing to the Teachers’ Retirement System of the State of Illinois,
2815 West Washington Street, P.O. Box 19253, Springfield, Illinois 62794-9253. The most current
report is also available on the TRS Web site at http://trs.illinois.gov.
Illinois Municipal Retirement Fund
Plan Description. The ROE’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 ROE’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.
Funding Policy. As set by statute, the ROE’s Regular plan members are required to contribute 4.50
percent of their annual covered salary. The statute requires the ROE 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 2010 used by the ROE was 10.40
percent of annual covered payroll. The ROE annual required contribution rate for calendar year
2010 was 12.04 percent. The ROE 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 calendar year ending December 31, 2010, the ROE’s actual contributions
for pension cost for the Regular were $31,556. Its required contribution for calendar year 2010 was
$36,532.
45
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
RETIREMENT PLANS (Continued)
Illinois Municipal Retirement Fund (Continued)
Three-Year Trend Information for the Regular Plan
Calendar Percentage
Year Annual Pension of APC Net Pension
Ending Cost (APC) Contributed Obligation
12/31/2010 $ 36,532 86% $ 4 ,976
12/31/2009 28,988 100% 0
12/31/2008 25,892 100% 0
The required contribution for 2010 was determined as part of the December 31, 2008, actuarial
valuation using the entry age normal actuarial cost method. The actuarial assumptions at December
31, 2008, 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 ROE’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 20%
corridor between the actuarial and market value of assets. The ROE Regular plan’s unfunded
actuarial accrued liability at December 31, 2008 is being amortized as a level percentage of projected
payroll on an open 10 year basis.
Funded Status and Funding Progress. As of December 31, 2010, the most recent actuarial valuation
date, the Regular plan was 87.02 percent funded. The actuarial accrued liability for benefits was
$855,225 and the actuarial value of assets was $744,247, resulting in an underfunded actuarial
accrued liability (UAAL) of $110,978. The covered payroll for calendar year 2010 (annual payroll
of active employees covered by the plan) was $303,425 and the ratio of the UAAL to the covered
payroll was 37 percent.
The schedule of funding progress, presented as RSI following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liability for benefits.
46
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
8. OTHER POSTEMPLOYMENT BENEFITS
THIS Plan Description
The ROE (employer) participates in the Teacher Health Insurance Security (THIS) Fund, a cost-sharing,
multiple-employer defined benefit postemployment healthcare plan that was established by
the Illinois legislature for the benefit of Illinois public school teachers employed outside the city of
Chicago. The THIS Fund provides medical, prescription, and behavioral health benefits, but 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 Fund.
The percentage of employer required contributions in the future will be determined by the director of
HFS and will not exceed 105 percent of the percentage of salary actually required to be paid in the
previous fiscal year.
• On behalf contributions to THIS Fund. The state of Illinois makes employer retiree health
insurance contributions on behalf of the ROE. State contributions are intended to match
contributions to THIS Fund from active members which were 0.88 percent of pay during the
year ended June 30, 2011. State of Illinois contributions were $1,702, and the ROE
recognized revenue and expenditures of this amount during the year.
State contributions intended to match active member contributions during the year ended
June 30, 2010 were 0.84 percent of pay. State contributions on behalf of ROE employees
were $1,197. Had the Regional Office of Education #27 recognized revenue and
expenditures for State contributions intended to match active member contributions during
the year ended June 30, 2009, under the current standards, the contribution match would
have been 0.84 percent of pay or $1,641.
• Employer contributions to THIS Fund. The ROE also makes contributions to THIS Fund.
The employer THIS Fund contribution was 0.66 percent during the year ended June 30,
2011, and 0.63 percent during the years ended June 30, 2010 and June 30, 2009. For the
year ended June 30, 2011, the ROE paid $1,276 to the THIS Fund. For the years ended June
30, 2010 and June 30, 2009, the ROE paid $898 and $1,231 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.
47
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
OTHER POSTEMPLOYMENT BENEFITS (Continued)
In addition, the ROE allows IMRF employees, who retire through the ROE’s plan disclosed in Note
7, the option to continue in the ROE’s health insurance plan as required by the Illinois Compiled
Statutes, but the retiree pays the full premium for the health insurance. This has not created an
implicit subsidy as defined by GASB Statement No. 45 (GASB S-45), Accounting and Financial
Reporting by Employers for Postemployment Benefits Other Than Pensions as the ROE’s health
insurance plan is considered a community rated plan. In addition, the ROE has no explicit subsidy as
defined in GASB S-45.
9. ON-BEHALF PAYMENTS AND RELATED PARTY TRANSACTIONS
The State of Illinois makes contributions directly to TRS on behalf of the ROE’s TRS-covered
employees. The salaries, fringe benefits, and TRS contributions of the Regional Superintendent and
the Assistant Superintendents are paid by the State of Illinois. The following salary and benefit data
for the Regional Superintendent and Assistant Regional Superintendents was calculated based on
data provided by the Illinois State Board of Education.
TRS pension contributions $ 84,557
THIS contributions 1,702
Regional Superintendent – salary 90,871
Regional Superintendent – benefits (includes State paid insurance) 25,018
Assistant Regional Superintendent – salary 81,784
Assistant Regional Superintendent – benefits (includes State paid insurance) 20,788
Total $304,720
10. OTHER DISCLOSURES
Accounting principles generally accepted in the United States of America require disclosure of
certain information concerning individual funds (which are presented only in combination on the
financial statements). Funds having deficit fund balances and funds which overextended
appropriations during the year are required to be disclosed.
A. The following funds/accounts had a deficit fund balance at June 30, 2011.
Fund/Account Amount
Criminal Background Investigation $ 3,061
Adult Education and Family Literacy – State Basic 15,338
Adult Education and Family Literacy – State Performance 7,202
Adult Education and Family Literacy – Public Assistance 5,634
General Education Development 7,905
48
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
OTHER DISCLOSURES (Continued)
B. The following fund had an excess of actual expenditures over budget for the year ended
June 30, 2011.
Budget Unfavorable
Fund Amount Expenditures Variance
McDonough/Hancock ROE
Homeless Grant $ 7,848 $ 7,878 $ 30
11. OPERATING LEASES
Progressive Alternative Secondary School (PASS) leases their office and classroom space at a
monthly rent of $1,000. The lease term is from June 1, 2010 to May 31, 2011 with an option to
renew for an additional twelve months. The lease was not renewed, but PASS is now leasing the
space on a month by month basis under the same payment terms.
The ROE’s main office leases its office space at a yearly rent of $6,000. The lease is renewable on a
year to year basis.
The ROE entered into a lease with New Life Assembly of God Church in Aledo for the use of its
church for the High Roads Program. The lease term is from July 1, 2010 to June 30, 2011 and may
be extended for additional terms upon the mutual agreement of both parties. The rent paid for this
term was $2,400.
During the year ended June 30, 2011, rentals under lease obligations were $20,400.
12. LINE OF CREDIT
On June 22, 2010, the ROE established a line of credit in the amount of $300,000 in anticipation of
grant payments outstanding at the Illinois Office of the Comptroller for fiscal year 2010. The line of
credit had an interest rate of 4% and matured on December 31, 2010. No amounts were drawn on
this note and the ROE did not renew it when it matured.
49
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
NOTES TO FINANCIAL STATEMENTS
June 30, 2011
50
13. RECLASSIFICATIONS
In the fiscal year ending June 30, 2011, the ROE’s presentation of fund balances was changed due to
the implementation of GASB 54. Implementation of this Statement caused certain accounts to be
reclassified to a different major fund category. The beginning fund balance amounts for the year
ended June 30, 2011 have been reclassified to conform to the current presentation. The following
table summarizes the changes.
General Education Non-Major
Fund Fund Fund Totals
06/30/10 fund balances
as previously reported $ 8 8,837 $ (364,919) $ 7 3,419 $ (202,663)
Change due to GASB 54
implementation 1 62,794 (118,410) (44,384) -
06/30/10 fund balances
as reclassified $ 2 51,631 $ (483,329) $ 2 9,035 $ (202,663)
14. SUBSEQUENT EVENTS
The salaries and benefits of the Regional Superintendent and Assistant Regional Superintendents of
the ROE are paid by the State of Illinois. Effective July 1, 2011, Governor Pat Quinn eliminated
their funding from the State budget, stating that there is not enough money to pay them and that they
should be paid on a local level, not state level. Therefore, these individuals worked without a
paycheck starting July 1, 2011. Subsequently, on November 14, 2011, Governor Pat Quinn
approved legislation passed by State lawmakers to ensure that Regional Offices of Education have
the funds needed to operate through the end of the 2012 fiscal year. The legislation also requires a
commission be established to determine the future of the Regional Offices of Education.
REQUIRED SUPPLEMENTARY INFORMATION
(Other than Management’s Discussion and Analysis)
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)
12/31/2010 $ 744,247 $ 855,225 $ 110,978 87.02% $ 303,425 36.58%
12/31/2009 6 67,954 7 90,774 122,820 84.47% 306,757 40.04%
12/31/2008 6 25,121 7 16,124 91,003 87.29% 291,251 31.25%
(Unaudited - See Accompanying Independent Auditor's Report)
HENDERSON, MERCER AND WARREN COUNTIES
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF FUNDING PROGRESS
June 30, 2011
REGIONAL OFFICE OF EDUCATION #27
51
On a market value basis, the actuarial value of assets as of December 31, 2010 is $780,156. On a market
basis, the funded ratio would be 91.22%.
SUPPLEMENTARY INFORMATION
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF ACCOUNTS
GENERAL FUNDS
June 30, 2011
High
Even Roads
ROE #27 General Start Youth
Fund State Aid Local Program
ASSETS
Cash and cash equivalents $ 159,289 $ 267,747 $ 6,468 $ 526
Due from other funds 10,966 73,607 - -
Due from other governmental units 22,855 - - 6,971
Prepaid items 5 - 5 -
TOTAL ASSETS $ 193,115 $ 341,354 $ 6,473 $ 7,497
LIABILITIES AND
FUND BALANCE
LIABILITIES
Due to other funds $ - $ - $ - $ -
Due to other governmental units - - - -
Total Liabilities - - - -
FUND BALANCE (DEFICIT)
Nonspendable 5 - 5 -
Assigned - - 6,468 7,497
Unassigned 193,110 341,354 - -
Total Fund Balance (Deficit) 193,115 341,354 6,473 7,497
TOTAL LIABILITIES AND FUND
BALANCE $ 193,115 $ 341,354 $ 6,473 $ 7,497
52
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF ACCOUNTS
GENERAL FUNDS
June 30, 2011
ASSETS
Cash and cash equivalents
Due from other funds
Due from other governmental units
Prepaid items
TOTAL ASSETS
LIABILITIES AND
FUND BALANCE
LIABILITIES
Incoming American College Criminal
Freshman Test (ACT) Background Education
Academy Class Investigation Administration Total
$ 51,708 $ 11,841 $ - $ - $ 497,579
- - - - 84,573
6,000 - - - 35,826
- - - - 10
$ 57,708 $ 11,841 $ - $ - $ 617,988
Due to other funds
Due to other governmental units
Total Liabilities
FUND BALANCE (DEFICIT)
Nonspendable
Assigned
Unassigned
Total Fund Balance (Deficit)
TOTAL LIABILITIES AND FUND
BALANCE
$ - $ - $ 3,061 $ - $ 3,061
5,000 - - - 5,000
5,000 - 3,061 - 8,061
- - - - 10
52,708 11,841 - - 78,514
- - (3,061) - 531,403
52,708 11,841 (3,061) - 609,927
$ 57,708 $ 11,841 $ - $ - $ 617,988
53
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GENERAL FUND ACCOUNTS
For the Year Ended June 30, 2011
High
Even Roads
ROE #27 General Start Youth
Fund State Aid Local Progam
REVENUES
Local sources $ 160,200 $ 158,902 $ 20,366 $ 112,725
State sources - 182,458 - -
Interest 1,625 - - -
On-behalf payments from State 258,345 46,375 - -
Total revenues 420,170 387,735 20,366 112,725
EXPENDITURES
Salaries and benefits 85,814 23,156 14,738 79,790
Purchased services 35,206 17,100 5,937 31,034
Supplies and materials 3,229 9,051 1,800 1,462
On-behalf payment to TRS and State 258,345 46,375 - -
Total expenditures 382,594 95,682 22,475 112,286
Excess (deficiency) of revenues
over expenditures 37,576 292,053 (2,109) 439
OTHER FINANCING SOURCES (USES):
Transfers in 66,991 300 - -
Transfers out (289) - - -
Total other financing sources and uses 66,702 300 - -
Net change in fund balances 104,278 292,353 (2,109) 439
FUND BALANCE AT
BEGINNING OF YEAR (restated - See Note 13) 88,837 49,001 8,582 7,058
FUND BALANCE (DEFICIT) AT
END OF YEAR $ 193,115 $ 341,354 $ 6,473 $ 7,497
54
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GENERAL FUND ACCOUNTS
For the Year Ended June 30, 2011
REVENUES
Local sources
State sources
Interest
On-behalf payments from State
Total revenues
EXPENDITURES
Salaries and benefits
Purchased services
Supplies and materials
On-behalf payment to TRS and State
Total expenditures
E dfii ) f
Incoming American College Criminal
Freshman Test (ACT) Background Education
Academy Class Investigation Administration Total
$ 20,300 $ 8,250 $ 400 $ - $ 481,143
- - - - 182,458
15 - - - 1,640
- - - - 304,720
20,315 8,250 400 - 969,961
17,415 - - - 220,913
3,790 78 3,835 - 96,980
171 2,372 - - 18,085
- - - - 304,720
21,376 2,450 3,835 - 640,698
Excess (deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources and uses
Net change in fund balances
FUND BALANCE AT
BEGINNING OF YEAR (restated - See Note 13)
FUND BALANCE (DEFICIT) AT
END OF YEAR
(1,061) 5,800 (3,435) - 329,263
- - - - 67,291
- - - (37,969) (38,258)
- - - (37,969) 29,033
(1,061) 5,800 (3,435) (37,969) 358,296
53,769 6,041 374 37,969 251,631
$ 52,708 $ 11,841 $ (3,061) $ - $ 609,927
55
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF ACCOUNTS
EDUCATION FUND
June 30, 2011
Title I McDonough/ KIDS Illinois
Reading First Hancock ROE Standards Violence Early Early
Part B Homeless Aligned Prevention Act Childhood - Childhood -
ASSETS SEA Funds Grant Classroom Mini-Grant Block Grant Monitoring
ASSETS
Cash and cash equivalents $ - $ 1 ,160 $ - $ - $ 1 5,811 $ 3 1,685
Due from other governmental
units and agencies - - - - - 19,790
Prepaid Items - - - - 27 -
TOTAL ASSETS $ - $ 1 ,160 $ - $ - $ 1 5,838 $ 5 1,475
LIABILITIES AND
FUND BALANCE
LIABILITIES
Due to other funds $ - $ - $ - $ - $ - $ -
Deferred revenue - - - - - -
Total Liabilities - - - - - -
FUND BALANCE
Nonspendable - - - - 27 -
Restricted - 1,160 - - 1 5,811 51,475
Unassigned - - - - - -
Total Fund Balance (Deficit) - 1,160 - - 1 5,838 51,475
TOTAL LIABILITIES AND FUND
BALANCE $ - $ 1 ,160 $ - $ - $ 1 5,838 $ 5 1,475
56
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF ACCOUNTS
EDUCATION FUND
June 30, 2011
ASSETS
ASSETS
Cash and cash equivalents
Due from other governmental
units and agencies
Prepaid Items
TOTAL ASSETS
LIABILITIES AND
FUND BALANCE
LIABILITIES
Due to other funds
Deferred revenue
Total Liabilities
Title IV Progressive
21st Century Title I Title II Alternative
Community Grant to Local Teacher Secondary
Gifted Workforce Learning Educational Quality School
Education Investment Centers Agency Part A Leadership (P.A.S.S.) Total
$ 85 $ 9 ,383 $ 5 6,911 $ 1 1,796 $ 4 ,321 $ 1 2,956 $ 144,108
- - - - - 7 9,297 99,087
- - 4 - - - 31
$ 85 $ 9 ,383 $ 5 6,915 $ 1 1,796 $ 4 ,321 $ 9 2,253 $ 243,226
$ - $ - $ - $ - $ - $ 7 3,607 $ 7 3,607
- - - - - 2 8,214 28,214
101 821 101 821
FUND BALANCE
Nonspendable
Restricted
Unassigned
Total Fund Balance (Deficit)
TOTAL LIABILITIES AND FUND
BALANCE
- - - - - 101,821 101,821
- - 4 - - - 31
85 9,383 5 6,911 1 1,796 4,321 1 8,606 169,548
- - - - - (28,174) (28,174)
85 9,383 5 6,915 1 1,796 4,321 (9,568) 141,405
$ 85 $ 9 ,383 $ 5 6,915 $ 1 1,796 $ 4 ,321 $ 9 2,253 $ 243,226
57
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
EDUCATION FUND ACCOUNTS
For the Year Ended June 30, 2011
Title I McDonough/ KIDS Illinois
Reading First Hancock ROE Standards Violence Early Early
Part B Homeless Aligned Prevention Act Childhood - Childhood -
SEA Funds Grant Classroom Mini-Grant Block Grant Monitoring
REVENUES
State sources - $ - $ - $ - $ 73,378 $ 562,740
Federal sources 2 ,984 9 ,038 - - - -
Total revenues 2 ,984 9 ,038 - - 73,378 562,740
EXPENDITURES
Salaries and benefits - 5 ,663 - - 9,268 4,687
Purchased services 2 ,343 1 ,444 - - 12,209 14,780
Supplies and materials 930 771 - - 28,627 1,516
Capital outlay - - - - 1,720 -
Payments to other governments - - - - 5,716 10,907
Total expenditures 3 ,273 7 ,878 - - 57,540 31,890
Excess (deficiency) of revenues
over expenditures (289) 1 ,160 - - 15,838 530,850
OTHER FINANCING SOURCES (USES):
Transfers in 289 - - - - -
Transfers out - - (3,100) (5,922) - -
Total other financing sources and uses 289 - (3,100) (5,922) - -
Net change in fund balances - 1 ,160 (3,100) (5,922) 15,838 530,850
FUND BALANCE (DEFICIT) AT
BEGINNING OF YEAR (restated - See Note 13) - - 3 ,100 5 ,922 - (479,375)
FUND BALANCE (DEFICIT) AT
END OF YEAR $ - $ 1 ,160 $ - $ - $ 15,838 $ 51,475
58
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
EDUCATION FUND ACCOUNTS
For the Year Ended June 30, 2011
REVENUES
State sources
Federal sources
Total revenues
EXPENDITURES
Salaries and benefits
Purchased services
Supplies and materials
Capital outlay
Payments to other governments
Total expenditures
Excess (deficiency) of revenues
over expenditures
Title IV Progressive
21st Century Title I Title II Alternative
Community Grant to Local Teacher Secondary
Gifted Workforce Learning Educational Quality School
Education Investment Centers Agency Part A Leadership (P.A.S.S.) Total
$ 17,435 $ - $ - $ - $ - $ 126,514 $ 780,067
- - 338,543 49,341 67,229 7 3,568 540,703
.
17,435 - 338,543 49,341 67,229 200,082 1,320,770
17,183 - 188,807 35,999 46,822 169,994 478,423
50 109 32,040 1,546 13,598 6 ,561 84,680
117 403 47,303 - 2,488 9 ,924 92,079
- - - - - - 1,720
- - 13,478 - - - 30,101
17,350 512 281,628 37,545 62,908 186,479 687,003
85 (512) 56,915 11,796 4,321 1 3,603 633,767
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
Total other financing sources and uses
Net change in fund balances
FUND BALANCE (DEFICIT) AT
BEGINNING OF YEAR (restated - See Note 13)
FUND BALANCE (DEFICIT) AT
END OF YEAR
- - - - - - 289
- - - - - (300) (9,322)
- - - - - (300) (9,033)
85 (512) 56,915 11,796 4,321 1 3,303 624,734
- 9,895 - - - (22,871) (483,329)
$ 85 $ 9,383 $ 56,915 $ 11,796 $ 4,321 $ (9,568) $ 141,405
59
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Federal sources $ 3,696 $ 3,696 $ 2,984 $ (712)
Total revenues 3,696 3,696 2,984 (712)
EXPENDITURES
Purchased services 2,290 2,290 2,343 (53)
Supplies and materials 1,406 1,406 930 476
Total expenditures 3,696 3,696 3,273 423
Excess (deficiency) of revenue over expenditures - - (289) (289)
OTHER FINANCING SOURCES:
Transfers in - - 289 289
Total Other Financing Sources - - 289 289
Budgeted Amounts
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
TITLE I - READING FIRST PART B SEA FUNDS
For the Year Ended June 30, 2011
Net Change $ - $ - - $ -
FUND BALANCE AT BEGINNING
OF YEAR -
FUND BALANCE AT END OF YEAR $ -
60
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Federal sources $ 6,844 $ 7,848 $ 9,038 $ 1,190
Total revenues 6,844 7,848 9,038 1,190
EXPENDITURES
Salaries and benefits 5,715 5,715 5,663 52
Purchased services 690 1,094 1,444 (350)
Supplies and materials 439 639 771 (132)
Payments to other governments - 400 - 400
Total expenditures 6,844 7,848 7,878 (30)
Excess of revenue over expenditures $ - $ - 1,160 $ 1,160
FUND BALANCE AT BEGINNING
Budgeted Amounts
For the Year Ended June 30, 2011
HENDERSON, MERCER AND WARREN COUNTIES
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
MCDONOUGH/HANCOCK ROE HOMELESS GRANT
REGIONAL OFFICE OF EDUCATION #27
OF YEAR -
FUND BALANCE AT END OF YEAR $ 1,160
61
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Federal sources $ 298,682 $ 298,682 $ 338,543 $ 39,861
Total revenues 298,682 298,682 338,543 39,861
EXPENDITURES
Salaries and benefits 221,846 208,221 188,807 19,414
Purchased services 54,673 55,923 32,040 23,883
Supplies and materials 22,163 34,538 47,303 (12,765)
Payments to other governments - - 13,478 (13,478)
Total expenditures 298,682 298,682 281,628 17,054
Excess of revenue over expenditures $ - $ - 56,915 $ 56,915
Budgeted Amounts
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
TITLE IV 21ST CENTURY COMMUNITY LEARNING CENTERS
For the Year Ended June 30, 2011
FUND BALANCE AT BEGINNING
OF YEAR -
FUND BALANCE AT END OF YEAR $ 56,915
62
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Federal sources $ 100,000 $ 100,000 $ 67,229 $ (32,771)
Total revenues 100,000 100,000 67,229 (32,771)
EXPENDITURES
Salaries and benefits 34,748 60,716 46,822 13,894
Purchased services 55,175 29,207 13,598 15,609
Supplies and materials 10,077 10,077 2,488 7,589
Total expenditures 100,000 100,000 62,908 37,092
Excess of revenue over expenditures $ - $ - 4,321 $ 4,321
Budgeted Amounts
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
BUDGETARY COMPARISON SCHEDULE
EDUCATION FUND ACCOUNTS
TITLE II - TEACHER QUALITY LEADERSHIP
For the Year Ended June 30, 2011
FUND BALANCE AT BEGINNING
OF YEAR -
FUND BALANCE AT END OF YEAR $ 4,321
63
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF ACCOUNTS
P.A.S.S.
June 30, 2011
Adult Education Adult Education Adult Education
and Family and Family and Family Federal
ARRA - Literacy - Literacy - Literacy - Regional Adult
Education State State Public Safe Education -
ASSETS Jobs Basic Performance Assistance Schools Basic
ASSETS
Cash and cash equivalents $ - $ - $ - $ - $ - $ 3
Due from other governmental
units and agencies 7,410 24,582 12,589 9,897 24,785 -
TOTAL ASSETS $ 7,410 $ 24,582 $ 12,589 $ 9,897 $ 24,785 $ 3
LIABILITIES AND FUND BALANCE
LIABILITIES
Due to other funds $ 7,410 $ 24,556 $ 12,597 $ 9,875 $ 19,169 $ -
Deferred revenue - 15,364 7,194 5,656 - -
Total Liabilities 7,410 39,920 19,791 15,531 19,169 -
FUND BALANCE
Restricted - - - - 5,616 3
Unassigned - (15,338) (7,202) (5,634) - -
Total Fund Balance (Deficit) - (15,338) (7,202) (5,634) 5,616 3
TOTAL LIABILITIES AND FUND
BALANCE $ 7,410 $ 24,582 $ 12,589 $ 9,897 $ 24,785 $ 3
64
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF ACCOUNTS
P.A.S.S.
June 30, 2011
ASSETS
ASSETS
Cash and cash equivalents
Due from other governmental
units and agencies
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Due to other funds
Deferred revenue
Total Liabilities
State National
Title II Free Lunch School School
Teacher Health and Lunch Breakfast
Quality Literacy Breakfast Program Program Total
$ 171 $ - $ 2 7 $ 12,651 $ 104 $ 12,956
- - 3 4 - - 79,297
$ 171 $ - $ 6 1 $ 12,651 $ 104 $ 92,253
$ - $ - $ - $ - $ - $ 73,607
- - - - - 28,214
- - - - - 101,821
FUND BALANCE
Restricted
Unassigned
Total Fund Balance (Deficit)
TOTAL LIABILITIES AND FUND
BALANCE
171 - 6 1 12,651 104 18,606
- - - - - (28,174)
171 - 6 1 12,651 104 (9,568)
$ 171 $ - $ 6 1 $ 12,651 $ 104 $ 92,253
65
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
P.A.S.S. ACCOUNTS
For the Year Ended June 30, 2011
Adult Education Adult Education Adult Education
and Family and Family and Family Federal
ARRA - Literacy - Literacy - Literacy - Regional Adult
Education State State Public Safe Education -
Jobs Basic Performance Assistance Schools Basic
REVENUES
State sources $ - $ 29,961 $ 21,267 $ 19,811 $ 5 5,180 $ -
Federal sources 16,593 - - - - 35,406
Total revenues 16,593 29,961 21,267 19,811 5 5,180 35,406
EXPENDITURES
Salaries and benefits 16,593 35,733 20,544 16,648 4 6,501 33,975
Purchased services - 1,135 1,036 3 15 3,063 684
Supplies and materials - - - - - 744
Total expenditures 16,593 36,868 21,580 16,963 4 9,564 35,403
Excess (deficiency) of revenues
over expenditures - (6,907) (313) 2,848 5,616 3
OTHER FINANCING SOURCES (USES):
Transfer out - - - - - -
Total other financing sources and uses - - - - - -
Net change in fund balances - (6,907) ( 313) 2,848 5,616 3
FUND BALANCE (DEFICIT) AT
BEGINNING OF YEAR (restated - see Note 13) - (8,431) (6,889) (8,482) - -
FUND BALANCE (DEFICIT) AT
END OF YEAR $ - $ (15,338) $ (7,202) $ (5,634) $ 5 ,616 $ 3
66
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
P.A.S.S. ACCOUNTS
For the Year Ended June 30, 2011
REVENUES
State sources
Federal sources
Total revenues
EXPENDITURES
Salaries and benefits
Purchased services
Supplies and materials
Total expenditures
Excess (deficiency) of revenues
over expenditures
State National
Title II Free Lunch School School
Teacher Health and Lunch Breakfast
Quality Literacy Breakfast Program Program Total
$ - $ - $ 295 $ - $ - $ 126,514
499 - - 18,379 2,691 73,568
499 - 295 18,379 2,691 200,082
- - - - - 169,994
328 - - - - 6,561
- - 261 6,405 2,514 9,924
328 - 261 6,405 2,514 186,479
171 34 11 974 177 13 603
OTHER FINANCING SOURCES (USES):
Transfer out
Total other financing sources and uses
Net change in fund balances
FUND BALANCE (DEFICIT) AT
BEGINNING OF YEAR (restated - see Note 13)
FUND BALANCE (DEFICIT) AT
END OF YEAR
- 11,974 13,603
- (300) - - - (300)
- (300) - - - (300)
171 (300) 34 11,974 1 77 13,303
- 300 27 677 (73) (22,871)
$ 171 $ - $ 61 $ 12,651 $ 104 $ ( 9,568)
67
Actual Variance with
Original Final Amounts Final Budget
REVENUES
State sources $ 36,873 $ 36,873 $ 29,961 $ (6,912)
Total revenues 36,873 36,873 29,961 (6,912)
EXPENDITURES
Salaries and benefits 35,799 35,799 35,733 66
Purchased services 1,074 1,074 1,135 (61)
Total expenditures 36,873 36,873 36,868 5
Excess (deficiency) of revenue
over expenditures $ - $ - (6,907) $ (6,907)
Budgeted Amounts
For the Year Ended June 30, 2011
P.A.S.S. ACCOUNTS
HENDERSON, MERCER AND WARREN COUNTIES
BUDGETARY COMPARISON SCHEDULE
ADULT EDUCATION AND FAMILY LITERACY - STATE BASIC
REGIONAL OFFICE OF EDUCATION #27
FUND BALANCE (DEFICIT) AT BEGINNING
OF YEAR (8,431)
FUND BALANCE (DEFICIT) AT
END OF YEAR $ (15,338)
68
Actual Variance with
Original Final Amounts Final Budget
REVENUES
State sources $ 21,851 $ 21,581 $ 21,267 $ (314)
Total revenues 21,851 21,581 21,267 (314)
EXPENDITURES
Salaries and benefits 20,699 20,699 20,544 155
Purchased services 1,152 882 1,036 (154)
Total expenditures 21,851 21,581 21,580 1
Excess (deficiency) of revenue
over expenditures $ - $ - (313) $ (313)
Budgeted Amounts
For the Year Ended June 30, 2011
HENDERSON, MERCER AND WARREN COUNTIES
BUDGETARY COMPARISON SCHEDULE
P.A.S.S. ACCOUNTS
ADULT EDUCATION AND FAMILY LITERACY - STATE PERFORMANCE
REGIONAL OFFICE OF EDUCATION #27
FUND BALANCE (DEFICIT) AT BEGINNING
OF YEAR (6,889)
FUND BALANCE (DEFICIT) AT
END OF YEAR $ (7,202)
69
Actual Variance with
Original Final Amounts Final Budget
REVENUES
State sources $ 16,967 $ 16,967 $ 19,811 $ 2,844
Total revenues 16,967 16,967 19,811 2,844
EXPENDITURES
Salaries and benefits 16,668 16,668 16,648 20
Purchased services 299 299 315 (16)
Total expenditures 16,967 16,967 16,963 4
Excess of revenue over expenditures $ - $ - 2,848 $ 2,848
FUND BALANCE DEFICIT) AT BEGINNING
For the Year Ended June 30, 2011
Budgeted Amounts
HENDERSON, MERCER AND WARREN COUNTIES
BUDGETARY COMPARISON SCHEDULE
P.A.S.S. ACCOUNTS
ADULT EDUCATION AND FAMILY LITERACY - PUBLIC ASSISTANCE
REGIONAL OFFICE OF EDUCATION #27
70
( )
OF YEAR (8,482)
FUND BALANCE (DEFICIT) AT
END OF YEAR $ (5,634)
Actual Variance with
Original Final Amounts Final Budget
REVENUES
State sources $ 49,565 $ 49,565 $ 55,180 $ 5,615
Total revenues 49,565 49,565 55,180 5,615
EXPENDITURES
Salaries and benefits 46,502 46,502 46,501 1
Purchased services 3,063 3,063 3,063 -
Total expenditures 49,565 49,565 49,564 1
Excess of revenue over expenditures $ - $ - 5,616 $ 5,616
For the Year Ended June 30, 2011
Budgeted Amounts
HENDERSON, MERCER AND WARREN COUNTIES
BUDGETARY COMPARISON SCHEDULE
P.A.S.S. ACCOUNTS
REGIONAL SAFE SCHOOLS
REGIONAL OFFICE OF EDUCATION #27
71
FUND BALANCE AT BEGINNING
OF YEAR -
FUND BALANCE AT END OF YEAR $ 5,616
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Federal sources $ 35,406 $ 35,406 $ 35,406 $ -
Total revenues 35,406 35,406 35,406 -
EXPENDITURES
Salaries and benefits 34,172 34,172 33,975 197
Purchased services 684 684 684 -
Supplies and materials 550 550 744 (194)
Total expenditures 35,406 35,406 35,403 3
Excess of revenue over expenditures $ - $ - 3 $ 3
For the Year Ended June 30, 2011
Budgeted Amounts
HENDERSON, MERCER AND WARREN COUNTIES
BUDGETARY COMPARISON SCHEDULE
P.A.S.S. ACCOUNTS
FEDERAL ADULT EDUCATION - BASIC
REGIONAL OFFICE OF EDUCATION #27
72
FUND BALANCE AT BEGINNING
OF YEAR -
FUND BALANCE AT END OF YEAR $ 3
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Federal sources $ 329 $ 329 $ 499 $ 170
Total revenues 329 329 499 170
EXPENDITURES
Purchased services 329 329 328 1
Total expenditures 329 329 328 1
Excess of revenue over expenditures $ - $ - 171 $ 171
FUND BALANCE AT BEGINNING
For the Year Ended June 30, 2011
Budgeted Amounts
HENDERSON, MERCER AND WARREN COUNTIES
BUDGETARY COMPARISON SCHEDULE
P.A.S.S. ACCOUNTS
TITLE II - TEACHER QUALITY
REGIONAL OFFICE OF EDUCATION #27
73
OF YEAR
-
FUND BALANCE AT END OF YEAR $ 171
HENDERSON, MERCER AND WARREN COUNTIES
REGIONAL OFFICE OF EDUCATION #27
COMBINING BALANCE SHEET
NON-MAJOR SPECIAL REVENUE FUNDS
June 30, 2011
General Bus
Education Driver Supervisory
Development Training Expense Institute Total
ASSETS
Cash and cash equivalents $ - $ 8,981 $ 793 $ 30,935 $ 40,709
TOTAL ASSETS $ - $ 8,981 $ 793 $ 30,935 $ 40,709
LIABILITIES AND
FUND BALANCE
LIABILITIES
Due to other funds $ 7,905 $ - $ - $ - $ 7,905
Total Liabilities 7,905 - - - 7,905
FUND BALANCE (DEFICIT)
Restricted - 8,981 793 30,935 40,709
Unassigned (7,905) - - (7,905)
Total Fund Balance (Deficit) (7,905) 8,981 793 30,935 32,804
TOTAL LIABILITIES AND FUND
BALANCE $ - $ 8,981 $ 793 $ 30,93