REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #30
ALEXANDER, JACKSON, PERRY, PULASKI,
AND UNION COUNTIES

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2019

Release Date:  October 13, 2021

FINDINGS THIS AUDIT:  1

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

FINDINGS LAST AUDIT: 2

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

• (19-1) The Regional Office of
Education #30 did not properly
recognize and disclose postemployment
benefits other than pensions as
required by Governmental Accounting
Standards Board Statement No. 75.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

DEPARTURE FROM U.S. GENERALLY ACCEPTED
ACCOUNTING PRINICPLES

The Regional Office of Education #30
(ROE) did not properly recognize and
disclose postemployment benefits other
than pensions (OPEB) as required by
Governmental Accounting Standards
Board (GASB) Statement No. 75 in its
financial statements or notes.

The ROE participates in a defined
benefit plan, the Jackson County
Health Insurance Plan, which provides
OPEB to its employees in exchange for
employee services rendered. This plan
is administered by the Jackson County
government which obtains the actuarial
valuation of the OPEB. The ROE is
included in this actuarial valuation;
however, the ROE has not been
segregated from the rest of the
Jackson County government in the
actuarial valuation. As such, the
assets, liabilities, deferred outflows
of resources, deferred inflows of
resources, and/or expenditures of the
Jackson County Health Insurance plan
related to the ROE, as required by
GASB Statement No. 75, could not be
determined.

The Illinois Administrative Code (74
Ill. Adm. 420.320 (c) (1) and (2))
requires that each Regional Office of
Education maintain the accounting
records necessary to prepare financial
statements in accordance with U.S.
generally accepted accounting
principles (GAAP). Additionally,
effective June 25, 2021 PA 102-0025
allows that a Regional Office of
Education or Educational Service
Center may utilize a cash basis,
modified cash basis, or GAAP basis of
accounting to prepare the financial
statements for audit.

GASB Statement No. 75 – Accounting and
Financial Reporting for Postemployment
Benefits Other Than Pensions (OPEB),
requires that employers recognize and
disclose OPEB expense. Net OPEB
obligations, if any, should be
reported as liabilities (or assets if
overfunded) in the financial
statements. For financial reporting
purposes, an actuarial valuation,
prepared in accordance with GASB
Statement No. 75, is required to
measure and disclose the annual OPEB
cost. In certain circumstances, an
alternative measurement method can be
applied instead of obtaining an
actuarial valuation.

Regional Office management indicated
their actuarial valuation information
was not segregated from the rest of
the Jackson County government in the
actuarial plan that was obtained for
the Jackson County Health Insurance
Plan as of November 30, 2018. (Finding
2019-001, pages 11a – 11b)

The auditors recommended the ROE
should convey the requirements of GASB
Statement No. 75 to the Jackson County
government and work to obtain the
information needed to comply.
Additionally, Regional Office
management should consider PA 102-0025
to determine if changing to the cash
basis or modified cash basis would be
allowable or beneficial to the ROE and
users of its 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 #30’s financial
statements as of June 30, 2019 are
fairly stated in all material
respects, except for the effects of
not recognizing or disclosing
postemployment benefits other than
pensions for the Jackson County Health
Insurance Plan in the Statement of Net
Position and Statement of Activities.

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:JMM