REPORT DIGEST

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

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2023

Release Date:  June 26, 2024

FINDINGS THIS AUDIT: 2

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

FINDINGS LAST AUDIT: 2

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

• (22-1)  The Regional Office of Education
#30’s salaries and benefits were not
supported by proper time and effort
documentation.

• (22-2)  The Regional Office of Education
#30 failed to fully insure and collateralize
cash balances.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

SALARIES AND BENEFITS NOT SUPPORTED BY
PROPER TIME AND EFFORT DOCUMENTATION

The Regional Office of Education #30’s (ROE)
salaries and benefits were not supported by
proper time and effort documentation. The
ROE did not have formal written policies
related to proper time and effort
documentation. As such, proper time and
effort documentation was not always
maintained or complete.

The Illinois State Board of Education (ISBE)
State and Federal Grant Administration
Policy, Fiscal Requirements and Procedures,
requires that auditable “time and effort”
documentation should be written, after the
fact (not estimated or budgeted)
documentation of how time was spent. Time
and effort reports totaling 100 percent
among all projects should be prepared by any
staff with salary charged (1) directly to a
federal award, (2) directly to multiple
federal or State awards, or (3) directly to
any combination of a federal award or other
federal, State or local funds. Additionally,
all time and effort sheets and other
supporting documentation must be retained at
the local level and be available for review
or audit any time within three years after
termination of the project or until the
local entity is notified in writing from
ISBE that the records are no longer needed
for audit or review.

Regional Office management indicated this
was an oversight. (Finding 2022-001, pages
11a) This finding was first reported in
2020.

The auditors recommended the ROE should
implement written policies and procedures
over time and effort reporting to ensure
proper documentation is being obtained and/
or maintained in all instances to properly
distribute salary and benefit costs for
employees who work in whole or in part on
grant program activity in accordance with
the ISBE State and Federal Grant
Administration Policy, Fiscal Requirements
and Procedures. This would include having
the documentation reviewed and formally
approved by a supervisor.

ROE Response: The Regional Office agrees
with the finding and corrective actions are
being implemented.

FAILURE TO FULLY INSURE AND COLLATERALIZE
CASH BALANCES

The Regional Office of Education #30 (ROE)
failed to fully insure and collateralize
cash balances. As of June 30, 2022, cash
account balances with one financial
institution exceeded the Federal Deposit
Insurance Corporation (FDIC) coverage and
pledged collateral coverage by $450,660. The
FDIC covers deposit balances up to a maximum
of $250,000 at each financial institution.
Pledged securities were not sufficient for
the balances exceeding FDIC coverage.

The Public Funds Deposit Act (30 ILCS 225/1)
gives the authorization for deposits in
excess of the federal insurance limit to be
covered by pledged collateral held by the
financial institutions’ trust departments in
the ROE’s name. In addition, prudent
business practice requires that all cash and
investments held by financial institutions
for the ROE be adequately covered by
depository insurance or collateral.

Regional Office management indicated this
was an oversight. (Finding 22-002, page 11b)

The auditors recommended ROE management
should monitor bank balances on all accounts
and work with the financial institution to
provide collateral or enter into an
agreement with the financial institution to
have cash balances monitored for adequate
collateral and periodically adjusted as
necessary.

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, 2022 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:JMM