MT. VERNON — The annual audit performed by the state Auditor General showed the Hamilton/Jefferson Regional Office of Education had 10 findings, with four repeated from the previous audit.
The audit covers the fiscal year which ended June 30, 2012.
“For the fiscal year ended June 30, 2012, auditors disclaimed an opinion of the financial statements of the Regional Office of Education 25,” the audit report summary states. “The Regional Office did not have sufficient internal controls over the processing of most accounting transactions.”
Specific findings included that the office did not have “sufficient internal controls over the financial reporting process; did not have adequate review of journal entries; had a cash account not recorded on the books; did not have adequate internal controls over cash, payroll, grant compliance cash disbursements; and had excess working cash in an internal service fund.”
The audit was released last week by Auditor General William Holland. The audit shows that in FY 2011-12, the ROE had $2.2 million in revenues from local sources compared to $3.9 million in the previous year; that total expenditures were $2.24 million, compared to $4 million the previous fiscal year.
In citing insufficient internal controls, the audit states the ROE had all new management and accounting personnel unfamiliar with ROE policies, procedures and necessary internal controls over financial reporting — an issue first found by the auditors in 2007.
“The Regional Office of Education 25 responded that it understands the nature of this finding and realizes that this circumstance is not unusual to an organization of its size,” the audit states. “The transition to the office without any prior knowledge of the office practices and a part-time bookkeeper for half of the year led to several mistakes. The (ROE) stated that now that a full time trained bookkeeper has been hired, the ROE is implementing procedures and controls that ensure all records are maintained and all assets and revenues are recorded in the general ledger, which includes all transactions, deposits, expenses, assets and liabilities.”