REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #34: LAKE
COUNTY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2019

Release Date:  December 15, 2021

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

• (19-1) The Regional Office of
Education #34 did not provide
completed financial statements in an
auditable format by the August 31
deadline.

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

DELAY OF AUDIT

The Regional Office of Education #34
(ROE) did not provide completed
financial statements in an auditable
format in a timely fashion. Fieldwork
was originally scheduled for the first
quarter of 2020, but the financial
records and financial statements were
not available for audit until January
2021. A final copy of the financial
report was submitted to the auditor on
January 25, 2021. Fieldwork was
substantially completed in February
2021.

The Regional Office 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 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.

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 15th of
the succeeding fiscal year. Financial
reports are to be available no later
than August 31st in order for the
annual audit to be completed by an
independent auditor selected by the
Auditor General. Annual financial
statements are to be prepared on an
accrual basis of accounting in
accordance with generally accepted
accounting principles (GAAP).
Additionally, effective 6/25/21 Public
Act 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.

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

Regional Office management indicated
internal personnel issues, COVID-19,
moving locations and office turnover
caused the office to experience
difficulty in providing information by
the required timeline. (Finding
19-001, pages 10 – 11)

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).
Annual financial statements should be
compiled on an accrual basis of
accounting in accordance with GAAP.
Additionally, ROE management should
consider Public Act 102-0025 to
determine if changing to cash or
modified cash would be allowable or
beneficial to the ROE and users of the
ROE statements. These financial
statements need to be presented to the
Auditor General’s independent auditors
for audit by the August 31st deadline.

ROE Response: The Regional Office of
Education #34 agrees with this finding
and continues to implement procedures
to ensure compliance with 105 ILCS
5/2-3.17a and 74 Ill. Adm. Code
420.320 (c) (2). Annual financial
statements will be compiled on an
accrual basis of accounting in
accordance with GAAP. Future financial
statements will be available to the
Auditor General by August 31 deadline.

AUDITORS’ OPINION

Our auditors state the Regional Office
of Education #34’s financial
statements as of June 30, 2019 are
fairly presented in all material
respects.

This financial audit was conducted by
the firm of Lauterbach & Amen, 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