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