REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #16: DEKALB
COUNTY

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2025

Release Date:  February 18, 2026

FINDINGS THIS AUDIT: 2

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

FINDINGS LAST AUDIT: 0

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

• (25-1) The Regional Office of Education
#16 had inadequate internal control over
the bank reconciliation process.

• (25-2) The Regional Office of Education
#16 had noncompliance with grant
requirements.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF ADEQUATE CONTROLS OVER BANK
RECONCILIATION PROCESS

The Regional Office of Education #16 (ROE)
had inadequate internal control over the
bank reconciliation process. The ROE
maintains 6 bank accounts. During the
audit, auditors noted the following:

• 12 of the 72 bank reconciliations (17%)
were not performed timely, ranging from 37
to 110 days from month end.
• 6 of the 72 bank reconciliations (8%)
were not performed.
• 3 of the 6 year-end bank reconciliations
(50%) contained unaccounted variances from
$1,162 to $5,825.

Effective internal control policies require
complete and accurate accounting records of
all transactions of the entity. Sound
internal controls require bank
reconciliations to be performed accurately
and promptly, no later than the end of the
following month. Reconciling items should
be investigated immediately, and
adjustments made to the general ledger.
Bank reconciliations should also be
reviewed and approved by a person
independent of the preparer in a timely
manner.

Regional Office management indicated staff
turnover and transition caused a delay in
reconciliations. (Finding 2025-001, page
11)

The auditors recommended the ROE should
have an individual, independent of the
general ledger processes, review the bank
reconciliation to ensure agreement to the
general ledger and reported correctly in
the financial statements.

ROE Response: Due to being a small
organization, it is challenging to
segregate duties. However, management has
overseen supplemental training and
oversight to ensure timely reconciliations
and that all are performed.

NONCOMPLIANCE WITH GRANT REQUIREMENTS

The Regional Office of Education #16 (ROE)
had noncompliance with grant requirements.
The ROE submitted 10 of 33 expenditure
reports untimely (30%) ranging from 1 to 9
days late.

Item 5 of Section A of the Illinois State
Board of Education’s State and Federal
Grant Administration Policy, Fiscal
Requirements, and Procedures requires
grantees with an approved state and/or
federal grant program to submit quarterly
expenditure reports, at minimum, on or
before 20 calendar days after the end of
the reporting quarter.

Regional Office management indicated
several of the late expenditure reports
were due to a subcontract that requires
additional communication and steps within
the expenditure report process. (Finding
2025-002, page 12)

The auditors recommended the ROE should
develop internal controls to ensure
expenditure reports are submitted within
the grantors’ due date.

ROE Response: Staff turnover and transition
to a new finance manager occurred during
Fiscal Year 2025. This impacted not only
the new Finance Manager, but also the
administrative oversight required for
expenditure reports.

AUDITORS’ OPINION

Our auditors state the Regional Office of
Education #16 financial statements as of
June 30, 2025 are fairly presented in all
material respects.

This financial audit was conducted by the
firm of Adelfia LLC.

TRICIA WAGNER
Division Director

This report is transmitted in accordance
with Section 3-14 of the Illinois State
Auditing Act.

FRANK J. MAUTINO
Auditor General

FJM:BAO