REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #31: KANE
COUNTY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  June 28, 2023

FINDINGS THIS AUDIT: 1

CATEGORY:  NEW -- REPEAT -- TOTAL
Category 1:  0 -- 0 -- 0
Category 2:  1 -- 0 -- 1
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 0 -- 1

FINDINGS LAST AUDIT: 1

Category 1: Findings that are material
weaknesses in internal control and/or a
qualification on compliance with State
laws and regulations (material
noncompliance).
Category 2: Findings that are
significant deficiencies in internal
control and noncompliance with State
laws and regulations.
Category 3: Findings that have no
internal control issues but are in
noncompliance with State laws and
regulations.

State of Illinois, Office of the
Auditor General
FRANK J. MAUTINO, AUDITOR GENERAL

To obtain a copy of the Report contact:
Office of the Auditor General, Iles
Park Plaza, 740 E. Ash Street,
Springfield, IL 62703
(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are
also available on the worldwide web at
www.auditor.illinois.gov

SYNOPSIS

• (22-1)  The Regional Office of
Education #31 had inadequate controls
over grant related payroll
disbursements.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE CONTROLS OVER GRANT RELATED
PAYROLL DISBURSEMENTS

The Regional Office of Education #31
(ROE) had inadequate controls over
grant related payroll disbursements.
During control testing over payroll
expenditures related to the Elementary
and Secondary Emergency Relief (ESSER)
III grant, it was noted that one of the
employees charged to the grant was
supposed to be paid by Kane County, on
behalf of the Regional Office of
Education, beginning with pay periods
subsequent to November 30. Instead, a
total of five pay periods continued to
be charged to ESSER III after November
30 instead of the County. Each of these
pay periods were requested for
reimbursement with ESSER III funding.
Regional Office of Education management
did start properly recording the
employee as a County expenditure
beginning with the first payroll run in
March 2022.

A critical part of the control
structure surrounding the
identification of grant expenditures
eligible for reimbursement is the
proper recording of such transactions
in the general ledger. Adequate
controls should be in place to ensure
payroll changes are reflected in the
Regional Office’s records.

Regional Office management indicated
controls were inadequate to ensure
changes in funding sources for an
employee are accurately and timely
recorded in the general ledger.
(Finding 22-001, pages 14 – 15)

The auditors recommended the ROE
develop procedures to ensure timely
communication of changes in funding
source for a routine activity such as
payroll. Such a review would ensure
financial reporting accuracy and avoid
potential noncompliance with grant
funding.

ROE Response: When posting payroll in
the Regional Office accounting system,
net pay amounts for Kane County payroll
and Regional Office payroll will be
verified and any discrepancies will be
discovered and corrected at that time.
In addition, grant expenditure reports
will be reviewed by the grant writer
and finance director on a quarterly
basis to ensure payroll costs posted to
the grant are accurate.

AUDITORS’ OPINION

Our auditors state the Regional Office
of Education #31’s financial statements
as of June 30, 2022 are fairly
presented in all material respects.

This financial audit was conducted by
the firm of GW & Associates PC.

JOE BUTCHER
Division Director

This report is transmitted in
accordance with Section 3-14 of the
Illinois State Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:BAO