REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #03:
BOND, CHRISTIAN, EFFINGHAM, FAYETTE,
AND MONTGOMERY COUNTIES

FINANCIAL AUDIT  (IN ACCORDANCE WITH
THE UNIFORM GUIDANCE)
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  February 22, 2023

FINDINGS THIS AUDIT:  1

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

FINDINGS LAST AUDIT: 0

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 #3 did not provide completed
financial statements in an auditable
form by the August 31 deadline.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

DELAY OF AUDIT

The Regional Office of Education #3
(ROE) did not provide completed
financial statements in an auditable
form by the August 31 deadline. The
preliminary draft, excluding the
Schedule of Federal Expenditures of
Federal Awards and Notes to the
Schedule of Expenditures of Federal
Awards, was provided to the auditors
by the August 31 deadline. The ROE
notified auditors at this time that
the missing schedule and notes would
be available the following week. The
Schedule of Expenditures of Federal
Awards and Notes to the Schedule of
Expenditures of Federal Awards were
provided to the auditors on September
8, 2022.

The ROE is subject to 105 ILCS
5/2-3.17a which requires the Auditor
General’s office to cause an audit to
be made, as of June 30th of each year,
of the financial statements of all
accounts, funds, and other moneys in
the care, custody, or control of the
regional superintendent of schools of
each educational service region in the
State and of each educational service
center established in the School Code.
The audit is to be conducted in
accordance with Generally Accepted
Government Auditing Standards. The
Regional Office of Education or
Educational Service Center may 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
change to the cash basis of accounting
for financial statement reporting.

In accordance with 105 ILCS 5/2-3.17a,
the Auditor General has promulgated
administrative rules and regulations
to govern this process. Those rules,
74 Ill. Adm. Code 420.320 (c) (2),
state that for audit purposes, each
regional office of education and
educational service center shall make
available to the Auditor General or
his designee all books and records
deemed necessary to make and complete
the required audits. The records shall
be in auditable form by August 15 of
the succeeding fiscal year. Financial
reports are to be available no later
than August 31 in order for the annual
audit to be completed by an
independent auditor selected by the
Auditor General.

In addition, prudent business
practices and transparency require
timely preparation and completion of
financial statements.

Regional Office management indicated
the Schedule of Expenditures of
Federal Awards and Notes to the
Schedule of Expenditures of Federal
Awards were not provided to the ROE by
the CPA firm hired to prepare its
audit documents in a timely manner.
Normally, the ROE is not subject to a
single audit. By switching to cash
basis for FY22, the threshold for the
single audit was met. The audit firm
the ROE hired to prepare its financial
statements did not discover this until
August 31. (Finding 22-001, pages 13 –
14)

The auditors recommended the ROE
should implement procedures to ensure
compliance with 105 ILCS 5/2-3.17a and
74 Ill. Adm. Code 420.320 (c) (2).
Completed annual financial statements
need to be presented to the Auditor
General’s independent auditors for
audit by the August 31 deadline.

ROE Response: The Regional Office of
Education No. 3 understands and agrees
with this finding.

AUDITORS’ OPINION

Our auditors state the Regional Office
of Education #3’s financial statements
as of June 30, 2022 are fairly
presented in all material respects.

This financial audit was conducted by
the firm of West & Company, LLC.

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