REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #47: LEE, OGLE
AND WHITESIDE COUNTIES

FINANCIAL AUDIT (IN ACCORDANCE WITH THE
UNIFORM GUIDANCE)
FOR THE YEAR ENDED June 30, 2024

Release Date:  August 27, 2025

FINDINGS THIS AUDIT: 2

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

• (24-1) The Regional Office of Education
#47 did not have sufficient internal
controls over financial statement reporting.

• (24-2) The Regional Office of Education
#47 did not have adequate subrecipient
monitoring.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INTERNAL CONTROLS OVER FINANCIAL STATEMENT
REPORTING

The Regional Office of Education #47 (ROE)
does not have sufficient internal controls
to ensure accuracy in grant accounting and
reporting. During the audit of the financial
information prepared by the ROE, the
following was noted.
The ROE posted expenditures to the incorrect
grant ledger. Management discovered the
error in grant reporting and cost
reimbursement vouchers after the year-end
closing cycle had been completed and
informed the grantor accordingly.

105 ILCS 5/2-3.17a allows a Regional Office
of Education or Educational Service Center
to utilize a cash
basis, modified cash basis, or generally
accepted accounting principles (GAAP) basis
of accounting system
to prepare the financial statements for
audit. The ROE has chosen the cash basis of
accounting for financial statement
reporting. The ROE is required to maintain a
system of controls over the preparation of
financial statements, in accordance with its
selected basis of accounting. In addition, a
strong system of internal controls includes
reconciliation of grant financial reports
with supporting accounting records, review
of and approval by a responsible official
before filing.

Regional Office Management indicated the
accounting process did not include timely
procedures to verify the accuracy of grant
accounting records and cost reimbursement
vouchers. (Finding 24-001, pages 15a-15b)

The auditors recommended that the ROE needs
to implement comprehensive procedures as
part of their internal control over grant
accounting and reporting to ensure accuracy.

ROE Response:  There was a miscommunication
between our office and the new accountant
that was hired by one of our subrecipients.
That miscommunication led to a reimbursement
voucher not being filed with the state on
time. We made the state aware of the
miscommunication and worked with the state
to get our subrecipient the reimbursement
that they were entitled to receive. Starting
with the FY 25 school year, our office will
implement procedures to ensure that every
subrecipient is able to submit all
reimbursement vouchers prior to the year-end
closing cycle.

SUBRECIPIENT MONITORING

The Regional Office of Education #47 (ROE)
did not have adequate subrecipient
monitoring documentation.  The ROE did not
perform subrecipient monitoring procedures
including the preparation and retention of
monitoring documentation.

During audit testing procedures it was
determined that for
one (1) of two (2) subrecipients tested, the
ROE :
• Did not identify the subaward and
applicable requirements in the agreements.
• Did not conduct subrecipient monitoring
procedures during the year ended June 30,
2024.

For two (2) of two (2) subrecipients tested,
the ROE:
• Did not evaluate the risk of noncompliance
with Federal statutes, regulations, and the
terms and conditions of the subaward.
• Did not determine whether the subrecipient
met the 2 CFR 200 Subpart F Audit
requirements criteria for a single audit.

Regional Office Management indicated the ROE
is not adhering to established subrecipient
monitoring policies and procedures to
properly detect and prevent noncompliance
with subrecipient monitoring requirements.
(Finding 24-002 pages 16a – 16b) This
finding was first reported in 2017.

The auditors recommended that the ROE adhere
to set subrecipient monitoring policies and
procedures and maintain effective internal
control over federal awards to ensure
subrecipients are properly monitored as
required by 2 CFR 200.332. This includes:

a. Identifying the subaward and applicable
requirements in the agreements;
b. Evaluating the risk of noncompliance with
Federal statutes, regulations, and the terms
and conditions of the subaward;
c. Utilizing risk assessment results to
develop and implement necessary subrecipient
monitoring procedures for the fiscal year;
d. Conducting subrecipient monitoring
procedures;
e. Determining whether the subrecipient met
the requirement criteria of 2 CFR 200
Subpart F Audit requirements for a single
audit; and
f. Retaining supporting monitoring
documentation.

ROE Response:  Effective with the FY 25
School Year, the Regional Office will
formally identify the subaward and the
applicable requirements in our agreements.
We will conduct and document subrecipient
monitoring procedures. We will determine if
the subrecipient met the requirement
criteria of 2 CFR 22 Subpart F Audit
requirements for a single audit.

AUDITORS’ OPINION

Our auditors state the Regional Office of
Education #47’s financial statements as of
June 30, 2024 are fairly presented in all
material respects.

This financial audit was conducted by the
firm of Prado & Renteria Certified Public
Accountants.

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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