REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #3: BOND,
CHRISTIAN, EFFINGHAM, FAYETTE, AND
MONTGOMERY COUNTIES

FINANCIAL AUDIT (IN ACCORDANCE WITH THE
UNIFORM GUIDANCE)
FOR THE YEAR ENDED JUNE 30, 2024

Release Date:  January 22, 2025

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

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 #3
had inadequate controls over Grant
Compliance.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CONTROLS OVER GRANT COMPLIANCE

The Regional Office of Education #3 (ROE)
had inadequate controls over grant
compliance.

During the course of the audit, auditors
noted 10 of the 25 (40%) quarterly
expenditure reports required by the Illinois
State Board of Education (ISBE) were not
submitted timely. Seven of the quarterly
expenditure reports were submitted between 2
and 4 days late, one quarterly expenditure
reports was submitted between 10 and 20 days
late, and two quarterly expenditure report
were submitted between 80 and 100 days late.

For the federal program, auditors noted 3 of
the 4 (75%) quarterly expenditure reports
required by ISBE were not submitted timely.
One of the quarterly expenditure reports was
submitted 2 days late, one of the quarterly
expenditure reports was submitted 4 days
late, and one of the quarterly expenditure
reports was submitted 89 days late.

As a recipient of federal, State, and local
funds from various grantor agencies, the ROE
must incorporate certain procedures into its
operations in order to comply with the grant
agreements with these entities. Title 2 U.S.
Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for
Federal Awards (Uniform Guidance) requires
that a recipient submit performance reports
as required by the federal award.
Specifically, these expenditure reports
should be submitted to the granting agency
in a timely manner.

The ROE is responsible for establishing and
maintaining an internal control system over
the completion of timely quarterly
expenditure reports required for grants
administered by ISBE. ISBE requires
expenditure reports to be filed within 20
days of the applicable end of each quarter.

Regional Office management indicated the ROE
submitted multiple grant expenditure reports
late. The bookkeeper did not have a schedule
in place for completing expenditure reports
in a timely manner. Management did not
monitor the deadline for reports.  (Finding
2024-001, page 13-14)

The auditors recommended the ROE should
implement adequate internal controls to
ensure that expenditure reports are filed
timely.

ROE Response: The ROE will submit timely
expenditure reports. The bookkeeper has
implemented a timed calendar system for
reminders as well as written procedures to
help ensure timely submissions. In addition,
Regional Office of Education #3 has employed
an additional bookkeeper to help spread the
work load more evenly.

AUDITORS’ OPINION

Our auditors state the Regional Office of
Education #3’s financial statements as of
June 30, 2024 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