REPORT DIGEST REGIONAL OFFICE OF EDUCATION #48: PEORIA COUNTY FINANCIAL AUDIT (IN ACCORDANCE WITH THE UNIFORM GUIDANCE) FOR THE YEAR ENDED JUNE 30, 2017 Release Date: June 12, 2018 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 • (17-1) The Regional Office of Education #48 did not use time and effort documentation to distribute employees’ salary and benefit costs. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS SALARIES AND BENEFITS NOT SUPPORTED BY PROPER DOCUMENTATION The Regional Office of Education #48 (ROE) did not use time and effort documentation to distribute the salary and benefit costs for three administrative employees who worked partly on Mathematics and Science Partnership activities and partly on other ROE activities. These employees completed time and effort documentation, but the documentation was not used in the distribution of salary and benefit costs charged to these programs. Further, it was noted one of these employees did not complete any time and effort documentation for four months and another did not for one month. The salary and benefits charged to the Mathematics and Science Partnership programs for both of these employees were based on an estimate of time worked on program activities. Employees of the ROE are required by the Uniform Guidance to document their time and effort working on the Mathematics and Science Partnership programs when only a portion of their work is spent on these programs. According to Regional Office officials, the ROE was unable to implement a system of time and effort documentation fully compliant with the Uniform Guidance until July 2017 (FY18). (Finding 2017-001, pages 13-14) The auditors recommended that the ROE should use time and effort documentation to distribute salary and benefits costs for employees who worked partly on Mathematics and Science Partnership activities as well as other activities in accordance with the Uniform Guidance. ROE Response: The Regional Office has created time and effort sheets that all employees must complete documenting time worked on all grants, state and federal, for each pay period. All salary and benefit costs will be allocated accordingly based upon completed time sheets. AUDITORS’ OPINION Our auditors state the Regional Office of Education No. 48’s financial statements as of June 30, 2017 are fairly stated in all material respects. This financial report was conducted by the firm of Doehring, Winders & Co. LLP. KELLY MITTELSTAEDT Audit Manager This report is transmitted in accordance with Section 3-14 of the Illinois State Auditing Act. FRANK J. MAUTINO Auditor General FJM:KJM