REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #45:
MONROE AND RANDOLPH COUNTIES

FINANCIAL AUDIT (In accordance with the Single Audit Act
and OMB Circular A-133)
For the Year Ended: June 30, 2012

Release Date:   March 7, 2013

Summary of Findings:
Total this audit: 1
Total last audit:  1
Repeated from last audit: 0

State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, 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

• The Regional Office of Education #45 had to record
material journal entries for the proper preparation of
GAAP based financial statements.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

JOURNAL ENTRIES

The Monroe and Randolph Counties Regional Office of
Education #45 is required to maintain a system of
internal controls over the preparation of financial
statements in accordance with generally accepted
accounting principles (GAAP) in order to detect,
prevent, and/or correct misstatements in the financial
statements.

As a result of the audit, the ROE had to record material
adjusting journal entries for the purpose of proper
preparation of the GAAP based financial statements.
These adjusting journal entries were:

1. To reverse a prior year adjusting journal entry;
2. To move transfer entries out of fund balance and into
a transfer in/out account; and
3. To recognize deferred revenue for FY2013 revenue that
was received in FY2012.  (Finding 12-01, page 12)

Misstatements or omissions in the application of GAAP
were not detected by management.  The auditors
recommended that the Regional Office of Education #45
should take appropriate steps to ensure that all
transactions are properly recorded in accordance with
GAAP prior to the audit being performed.

The Regional Office of Education #45 responded that it
agrees with the finding.  The Regional Office’s staff
will more closely monitor journal entries to detect,
prevent, and/or correct misstatements in the financial
statements.

AUDITORS’ OPINION

Our auditors state the Regional Office of Education
#45’s financial statements as of June 30, 2012 are
fairly presented in all material respects.

WILLIAM G. HOLLAND
Auditor General

WGH:JRB

AUDITORS ASSIGNED:  Kemper CPA Group, LLP were our
special assistant auditors.