Rock Island Today

An Illinois Auditor General report released recently in Springfield found that Regional Office of Education 49 for Rock Island County demonstrated insufficient internal control of financial reporting and departure from generally accepted accounting procedures.

“(The) Regional Office did not have adequate controls over the maintenance of complete records,” the report from Auditor General Frank Mautino’s office stated. “While the Regional Office did maintain records to indicate the balances of accounts receivable, accounts payable, and unearned revenue, not all entries were provided to reconcile the Regional Office’s grant activity.”

Regarding the fiscal year ended June 30, 2015, the district’s officials “did not have adequate funding to hire and/or train their accounting personnel” to comply with requirements, the audit stated. “This finding was first reported in 2007.”

Rock Island education officials responded that the district will ensure training opportunities for staffers in its four positions with direct access to financial statements. 

Additionally, Mautino’s office revealed that ROE 49 Rock Island County departed from generally accepted accounting principles (GAAP). Specifically, the district uses a defined benefit (OPEB) plan offering (non-pension) post-employment benefits for services rendered. Under accrual accounting, its cost should be recorded during the actual period of service, rather than when benefits are allocated, the Auditor General said.

“Currently, ROE 49’s OPEB plan is financed on a pay-as-you-go basis, and as such, the financial statements do not (correctly) report the financial effects,” the audit stated. Lacking actuarial valuation, auditors were unable to determine the amount by which this departure would impact the overall report. 

Consequently, “inadequate funding for the required actuarial services … led to the failure to implement GASB (Governmental Accounting Standards Board) Statement No. 45,” the audit stated, adding that the finding was first reported in 2010. The auditors recommended that the ROE 49 obtain actuarial valuation or an alternative method for the post-employment benefit and include all pertinent disclosures required.

Rock Island County received $4.24 million in tax revenue in FY 2015, according to the audit. It spent $4.08 million, of which $1.65 million (41 percent) was allotted to salaries and benefits, the Auditor General’s report said.

Ginoli & Company Ltd. of Peoria prepared the audit.

Honorable Tammy Muerhoff is regional superintendent for Rock Island County, which oversaw 63 public schools as of 2014.