REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #34: LAKE
COUNTY

FINANCIAL AUDIT (IN ACCORDANCE WITH THE
UNIFORM GUIDANCE)
FOR THE YEAR ENDED JUNE 30, 2020

Release Date:  June 5, 2024

FINDINGS THIS AUDIT: 1

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

• (20-1) 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. The Fiscal Year 2020
financial report was not completed until
September 8, 2022. Additionally, the ROE did
not provide sufficient requested documents
required to begin fieldwork until March 28,
2023. Finally, as audit fieldwork
progressed, the ROE did not provide
information timely to address follow-up
requests needed to complete the audit. The
final requested items were not provided
until August 8, 2023.

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. The Regional Office of Education
or Educational Service Center may utilize a
cash basis, modified cash basis, or
generally accepted accounting principles
(GAAP) basis of accounting to prepare the
financial statements for audit.

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.

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

Regional Office management indicated ongoing
internal personnel issues, office turnover,
vacant positions and the implementation of
several new programs and initiatives caused
the office to experience difficulty in
providing information by the required
timeline. (Finding 20-001, 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). Additionally, ROE
management should consider if changing to
the cash or modified cash basis 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 No. 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 the
August 31st deadline.

AUDITORS’ OPINION

Our auditors state the Regional Office of
Education #34’s financial statements as of
June 30, 2020 are fairly presented in all
material respects.

This financial audit was conducted by the
firm of Sikich CPA 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

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