REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #11:
CLARK, COLES, CUMBERLAND, DOUGLAS,
EDGAR, MOULTRIE AND
SHELBY COUNTIES

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2021

Release Date:  March 30, 2022

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: 1

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

• (21-1) The Regional Office of
Education #11 had improper financial
statement reporting of a grant.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

IMPROPER FINANCIAL STATEMENT REPORTING
OF A GRANT

During the year ended June 30, 2021,
the Regional Office of Education #11
(ROE), which is the Area IV lead
liaison for the McKinney Education for
Homeless Children grant, learned that
it could allocate a portion of the
grant funds to itself in addition to
the 25 percent allowed for
administrative costs. Previously, the
ROE had limited both its
administrative and grant expenditures
to 25 percent of the grant. Rather
than accounting for the grant in one
fund, the ROE set up a second separate
fund to account for its non-
administrative portion of the grant
and reported the revenue and
expenditures as it would with other
grants. Therefore, all of the activity
of the Homeless grant was reported in
one fund which included the ROE’s
portion of the grant, and the ROE’s
portion of the grant was reported
again in the second separate fund.

The ROE is required to prepare
financial statements that properly
report the ROE’s grant revenues and
expenditures for the period under
audit.

Regional Office management indicated
this was an error in presenting the
revenues and expenditures. This was
the first year the ROE had two
separate funds for the Area IV and Sub
Grant awards for Homeless. The
revenues and expenditures for the Sub
Grant award were reported under both
the Area IV and Sub Grant Funds.
(Finding 2021-001, page 10)

The auditors recommended the ROE
should combine the two Homeless grant
accounts at year end for financial
statement purposes and ensure revenues
and expenditures are only recorded
once to agree to the actual amount of
the grant received from the Illinois
State Board of Education.

ROE Response: The ROE agrees with this
finding and will continue to track the
revenues and expenditures separately
internally but will combine them when
preparing the financial statements.
This will prevent the revenues and
expenditures from being overstated
when presented on the financial
statements.

AUDITORS’ OPINION

Our auditors state the Regional Office
of Education #11’s financial
statements as of June 30, 2021 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:JMM