oversight

Rockford Public Schools' administration of selected aspects of the 21st Century Community Learning Centers (Learning Center) program.

Published by the Department of Education, Office of Inspector General on 2002-02-11.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                                   UNITED STATES DEPARTMENT OF EDUCATION 

                                        OFFICE OF INSPECTOR GENERAL 

                                                         REOIQNV 

                                                111 NORTfJ CANAL. SUI'IE 940 

                                                 CHICAGO,lLtfNOTS 60606 


                                                     FAX: (312) 3S3-<J24d
    Audit                                                                                                    Inycstigation
(312) 8&6·6503                                                                                              (312) 353·789]

                 MEMORANDUM
                                                                                           " If.''?
                                                                                             ,   J..,....




                 TO: 	             Susan NeuniatJ
                                   Assistant Secretary
                                   Office o-f Elementary and
                                                                                                                             "
                                                                                                                             i'




                 FROM:
                                   Regional Inspector General for Audit

                 SUBJECT: 	        FINAL AUllIT REPORT
                                   Audit ofR(Jckford Public Schools' Admillislrutioll of
                                   Selected A.\pects a/the 21'~t Century Community
                                   Leamillg Centers Program
                                   Control Numher ED-OIGlA05-B0039


                 Attached is the subject report presenting our audit of Rockford Public Schools'
                 admirustration of selected aspects of the 21 51 Century Community Leaming Centers
                 progrum. You are not required to take any action in response to this report.

                 If you have any questions or wish to discuss the contents of tIlls report, please
                 contact meal 312-886~6503.

                 Please refer lo the above audit contTol numberlu all corresPQndencerelating to this
                 report.


                 Ar!,:aChment
                                        UI'iIT~:D   STArr"s OEPARTMENT OF EDUCATION
                                               orneE or INSPgcrO R GENERAL
                                                                 lI!GIQN   v
                                                       III NOlTl, CAN"\... 'UITl''''''
                                                        CKIt'MXI.   1u..~..OIS 6(61)6




    Audll                                                                                                          Invcsli,otioR
(l I2 )1,,"65ro                                                                                                   (312)353 ·1191



                                                                                         CO NTIWL NU MllER
                                                                                           ED-O IG/AO S- BOO]')


                  Dr. Alan S. Brown. Superint~ndem                                          FEB 1 1 1001
                  Rock-fort! Public Schools
                  20) S. Madison SlIeet
                  Rockford, IL 61 104

                  Dear Dr. Brown:

                  This .·in~1 Audi . R~pol1 prcscnl$ Ihe resulls: of our audi l of Rockford Public Schools'
                  (RPS) administration of Sc!CCIOO aspects of the 21- Cemury Community Learning Centers
                  (Learning Cemers) program. Because there nre no findings that require re,;o lution. you
                  arc not required to respond to this audit report .

                                                         AU Ill T RESULTS

                  During the period June I . ZOOO. •hrough May 31. 20(H (grant year 2000). RI'S properly
                  administered selected a.>pects of the Learning Centers program in ao.:cord.lnce with Title
                  X. Part I, ofthc Elcml"ntary and S<:eondary Education Act of 1965. as amended . nod
                  Education D<:partmem General Administr.llive Regulations (Part 80 (2000». Ilased on
                  the results of our ti"Sling, it appealS thai RPS properly accounted for and used Learning
                  Centers funds. Because RPS r.:«ivcd Ihc Leaming Centers funds after JUI'\C 1.2000. and
                  did not have the program numing until <Xlobcr 2000. it had carryover funds ofS112,876
                  from gran t year 2000. RPS St.:lled in its 2000 Grant Performancc Kepon that it would usc
                  the carryovcr funds to meet increascd training, pcrwlmci. and contrJ."ual costs, RPS
                  c~pectcd "II these costs to inc!"Casc in the upco ming grant year I)(.'cau~e il planned to
                  bcginlhc program carlier in the academic year,

                  Wc tested 129 transactions totaling SI73.020 from 1.500 learning Centers tmnsnctions
                  totaling S563.098 thai RPS recorded for 1!f'.1lI1 year 2000. We traced the 129 tmnsaclioos
                  to limcsheelS. vouchers. purehaso" orders. and canceled eh<:eks to ensure thatlOlals from
                  the$!.' source documents agreed with RPS' accounting fI."COrds. RPS had sufficient
                  documentation to suppon all tnlllSactions we tested. Nothing came to our al\emio" to
                  indicat", Ihat testing of ille untcSIOO transactions would identify questionable costs. "The
                  following table show~ tile budgeted amounts and nctu.:li expenditures for the Learning
                  Centers program for grant year 2000.




                           __ . ____..__.._. ,..-.00_.. ­
                                    ~
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                                         BACKGROUND

Tille X. Part I. of me Elementary and Secondary Education Act of 1965. a~ amended.
authorizes the Learning Centers p..... gram. lbc Learning Centers program provides three­
year grantS that provide funds 10 rural and inner cily schools or CQnsorti~ of schools 10
enable them \0 plan. implement. o r expand projects that be",:fit the educational. health.
social serviets, cultural. and n:creational nc~"<.!s of the cornrowlit),. The program. funded
al S453 million for fiscal year 2000 and S846 million for fiscal year 2001, enables
schools 10 stay open longer and SCI up communit y learning centers.

A community learning center is an entity wilhin Dpublic clcmcnllU)', middle. or
secondary school building lhul provides educational. recreational. health. an d social
service programs for residents orall ages within a local community. A local cducmiorml
agency operal~s the community learning Cetlter in conjunction with local govemmcnml
agencies, businesses, vocatioMI educational r rosrams. institutioll5 of higher cdllCation.
community colleges. and eullura!, m:reatiorml. and other community and human service
entities. The center must include no less than 4 oftbe 13 activities listed in Title X. Pan
l. Section 10905. The local educational agenC)' is encouraged to use the funds to
accomplish activities that olTer significant ex panded learning opponunities for children
and youth in the community and thm contribute to reduced drug usc and violence. The
progrnms may include features to suppon health needs, literacy education. children's dny
care services. and telecommunications and technology educal ion for individuals of all
ages.

For grant year 2000. RPS was awarded a total of$675 ,975 in Learning Ce nlers funds.
RPS set up Rockford Rocks on Reading using Fcdcml funds K't:civcd under this program.

, RPS onsinally clm<god $65,127 offrlbJ:e bco.r.ts to the Lean"n!: Centers provam. H""''''·..... " 

o,-.~lLartod 59&7 offrlnS. bc:Kfiu to the p<ogr.lIJI. RPS mumod 1M $917 to the Dcfwtm""t, IU'S' 

carryover lOIal or $ II I .1189 inc,..ased by S9SJ to $1 I 2,176 

The pmgram is d~signed to serve 2,051 st utl",nts and 1,025 commuuity members through
all cxtcntled tlay and c"leuded year program, The gram supports 4 lifter school programs
in the 611 0-' zip code, The program's goals are \0 Increase studcm achicvement in
reading anti math. provide students an opponunity 10 panicipatc in enrichmem activities..
and offer educational and socilll enrichmcntto parems and community members.

                   OBJECTIVE, seOI'!::, ANI) METHOlJOLOGY

'Inc objective of our audit was to detennine whether RPS properly administered selected
aspects of the Learning Centers progrum in accordance with Title X. Pan I, of the
Elementary and Secondary Education Act of 1965, as amcnded. and Educatioo
Depanmcnt Gener.ll Administrath'c Regulations (34 c'F.R, Pan 80 (2000» .
Specifically, we conducted the lIuditto det~nnine ifRPS properly accounted for Learning
Centers funds and used the funtl s in accordance with th~ requ ircmcnts ofthc grunt. Our
audit period was June 1. 2000. through May 31. 2001.

To accomplish our objcctive. we reviewed R I'S' (I) most rncnt Office of Management
and Budget Circular A-I33 audit repon; (2) wrinen policics and procedllrC'S o,'cr
budgeting and accouming for Learning Centen funds. approving ofand paying for
purchases of goods and services. and paying sabries and fringe benefits; (3) accounting
and payroll records; and (4) purchase orders. invoices. and cancelled checks for expenses
charged to the Learning Centers program during the audi t period. We alsu interviewed
various RPS employees.

During the audit. we relied on computer-processed datll containing Lcarning Cemcrs
accounting transactions. To assess the reliability ofthc accounting data. we compared the
data with source documeots (purchase orders and invoices) and the source documentati on
with the computer data. Based on the tcsts. \\ e concluded that the computer-processed
data were sufficiently rcliable to be used in meeting the audi( s objl~tive

We reviewed RPS' accounting records for Leamiog Ccnters transactions during grunt
year 2000. During this period. RPS n::conlcd 1.500 transactions totnling $563.098. We
nmdomly selected and revie",cd 127 transact ions totaling 572.691. In additioll. We
judgmentally selectcd and reviewed two transactions totaling $100.329. One transaction
 was the only transaction in its cost category and the second transaction was one of two
trnnSllCtions in its cost category. We tested the transactions to determine whether they
 wen:: properly accounted for. allowahle. supponnble. and chargl"li to lhe correct COSt
 category.

We conducted our fieldwork at R?S' administrative ofiices in Rockford. 11Iinois. and Ollr
regional ortiee in Chicago, Illinois, between September 24. 2001. and De<:cmbcr 6. 2001.
On December 6, 2001. we held a mccting wit h the auditee to discuss lhe contents of lite
rcpon. Our nudil was performed in accordance with government auditing standards
appropriate to the scope: described abo,·c.
                  STATEIVlENT ON MANAGEl\'lENT CONTORLS

As part of OUT audit, we assessed RPS' system of mi;lllagement controls, policies,
proce4ures~ mid practices applicable to RPS' accounting forand11singLearning Centers
program funds. We perfonned theassessmentto deterinine the level of Control risk, that
is, the risk that malerial errors, iriegularities~ or illegal acts may occur. We perfonned the
assessment to assist us in detelll1ining the nature, extellt,and limiilgof the tests needed to
accomplish our audit objective.

To make our asse..,<;sment,we idelitiftcd R}'>S;significant ntanagemcnt controls and
c1a~sifiedthem into the followin$ c.ategorics:


• Allocating funds,
• Accounting for funds,
• Approving of and paying for purchases of goods and services, and
• Paying salaries and fringe benefits.

Due to inherent limitations, a study and evaluation made for the limited purpose
described above would not necessarily disClose all material weaknesses in RPS'
management control sthIcturc. OUf assessment did not disc10seany significant
management control weaknesses that could adverselyafiect RPS' accounting lor and
using Learning Centers funds.



In accordance with tbeFrecdom ofInforrnation Act (5 U.S.C. § 552) •.reports issued by
the Office oflnspectorGencrl3..l are_a'VaiIable~ifrequested. to members of the press and
general public to the extent infonnallon conm:inedtherein is not subject to. exemptions in
the Act.

Ifyou have any questions, please contac.tmeat312-886-6SQ3.         Plea~e   refer to the control
number in all correspondence relate-d to this report.

                                                       s·

                                                            h d
                                                        Regional fnspector General
                                                        for Audit-Region V
                                                                                    "   3
                                                                                                                     ,

                                                                                                                                                 I
                                           REPORT DlSTRIBUTION LIST
                                                                                                                                No. of
                                                                                                                               Copies

Auditcc ......................................................................... ................................... .................... 1 


A<,;tioll Official 

Susan Neuman. Assistant S~cretury 

Office of Elementary and Secondary Educatio n............. .                                                        ...................... 1 


Other ED Oflices 

Deputy Secretary. Office of the Deputy S«rctalj' ......................................... ..... ............ 1 

Chief ofStllff. Offi<,;" oflhe Secretary ........................ ..................................... ............... I 

Under Secretary. Office of the Und~"T Se<:retary ........ ....................................                    . ..... ......... I 

Press Secretary. . ..... ........ .................                    ........ ........ ................ .....     .............. I 

Chief Financial Officer, Office of the Chief l~i Mnciul Officer .. ....................                           ............... I 

Office of Public AlTain ................................. ....................................................................... 1 

Assistant Scen>tary, Office of Legislation and Congressional Affairs ................................. I 

Assistant Secretary, Office of the IntM1!;o,·cmmcntal and Intefageney A lTai~ ............... I 

Om<,;e of the ChiefFinancinl Officcr 

Dire<,;tor, Financial !mprovemelll and Post Audit Operations . ....................... .................... I 

Correspondence Control. Office of General Counsel .......... .......................................... ... I 

Office of the ChiefFinandal Officer 

Post Audit Group ... .......................... ..................................................                  .............. I 

Audit Liaison. Office or Elementary and SKondary Education.......................................... I 


EO·OI G 

InspeI.!tor General ..... ........ .........         ...................           ......... .....              . ...... .............. I 

Deputy Inspector Gcncml ......... ................. .................................................... ..................... 1 

Assistant Inspector General for Audit. ... ....................... ................................................. 1 

AssisulIlt Inspector G1:ner.iI for Investigation ....................................................................... 1 

Deputy Assistant inspector (kncral for Aooil...................................................................... 1 

Gencrol Operations Tcam ............................................. ........................                . ..................... I 

Director, Stale and Local Adl'isory and Assistance.....                             ................ ....... ....................... I 

Area Manngers           ......... ..................             ......... .......          .. .........                             ... 6 

Region V Audit Office............                             .. ................      ...............                ................ 6