REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #45: MONROE AND
RANDOLPH COUNTIES

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2024

Release Date:  July 9, 2025

FINDINGS THIS AUDIT: 1

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

FINDINGS LAST AUDIT: 0

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, 400 West
Monroe, Suite 306, Springfield, IL
62704-9849
(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

• (24-1)  The Regional Office of Education
#45 did not have sufficient internal
controls over the financial reporting
process.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CONTROLS OVER FINANCIAL STATEMENT
PREPARATION

The Regional Office of Education #45 (ROE)
did not have sufficient internal controls
over the financial reporting process.  The
ROE maintains its accounting records on the
cash basis of accounting during the fiscal
year and posts or maintains a list of year-
end accrual adjustments for financial
statement purposes.  While the ROE maintains
controls over the processing of most
accounting transactions, there are not
sufficient controls over the preparation of
GAAP based financial statements for
management or employees in the normal course
of performing their assigned functions to
prevent or detect and correct financial
statement misstatements and disclosure
errors and omissions in a timely manner.

105 ILCS 5/2-3.17a allows a Regional Office
of Education or Educational Service Center
to utilize a cash basis, modified cash
basis, or generally accepted accounting
principles (GAAP) basis of accounting to
prepare the financial statements for audit.
The ROE has chosen to utilize the GAAP basis
of accounting for financial statement
reporting. The ROE is required to maintain a
system of controls over the preparation of
financial statements. The ROE’s internal
controls over GAAP financial reporting
should include adequately trained personnel
with the knowledge, skills, and experience
to prepare GAAP-based financial statements
and include all disclosures as required by
the Governmental Accounting Standards Board
(GASB).

During review of the financial information
prepared by the ROE, the following was
noted:

• Adjustments were necessary to correct
interfund loans and record transfers between
funds.

• Adjustments were necessary to record
construction in progress.

ROE management indicated that this was an
oversight that the ROE did not effectively
detect all of the adjustments needed in
order to present financial statements in
accordance with GAAP.  (Finding 24-001,
pages 9b-9c)

The auditors recommended the ROE should
implement comprehensive preparation
procedures to ensure the financial
statements are complete and accurate.  These
procedures should be performed by a properly
trained individual(s) possessing a thorough
understanding of the applicable generally
accepted accounting principles, GASB
pronouncements, and knowledge of ROE’s
activities and operations.  Additionally,
ROE management should consider the School
Code 105 ILCS 5/2-3.17a to determine if
changing to the cash or modified cash basis
would be allowable or beneficial to the ROE
and users of the ROE financial statements.

ROE Response:  The Regional Office agrees
with the finding and corrective actions are
being implemented.

AUDITORS’ OPINION

Our auditors state the Regional Office of
Education #45 financial statements as of
June 30, 2024 are fairly presented in all
material respects.

This financial audit was conducted by the
firm of Kemper CPA Group, LLP.

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:JRB