REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #54: VERMILION
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 -- 1 -- 2
Category 3:  0 -- 0 -- 0
TOTAL:  1 -- 1 -- 2

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

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

• (25-2) The Regional Office of Education
#54 had inadequate internal control over
receipts.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE INTERNAL CONTROL OVER THE BANK
RECONCILIATION PROCESS

The Regional Office of Education #54 (ROE)
had inadequate internal control over the
bank reconciliation process. The ROE
maintains 13 bank accounts. During the
audit, auditors noted that the June bank
reconciliation was prepared by comparing
the total balance of all 13 bank accounts
to the corresponding total balance in the
general ledger, rather than reconciling
each account individually. Our review of
individual bank reconciliations noted that
4 out of 13 year-end reconciliations (31%)
contained unaccounted variances ranging
from $1,032 to $4,339.

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 officials indicated
reconciling items were not adjusted due to
competing priorities. (Finding 2025-001,
page 11)

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

ROE Response: The Regional Office of
Education No. 54 will have an individual
who is independent of the general ledger
processes review the bank reconciliation to
ensure agreement to the general ledger.

INADEQUATE INTERNAL CONTROL OVER RECEIPTS

The Regional Office of Education #54 (ROE)
had inadequate internal control over
receipts. During testing of receipts,
auditors noted the following:

• 3 of 40 receipts tested (8%), totaling
$9,593, had no documents to support the
receipts. As a result, we were unable to
determine the timeliness and accuracy of
the receipts deposited.
• 2 of 40 receipts tested (5%), totaling
$554, were not deposited timely, ranging
from 5 to 9 days late.

Sound internal controls require a policy on
timeliness of deposits, either based on
dollar threshold or defined timeframe, from
the date of receipt. There should be
documentation of the date when cash and
checks are received.

Regional Office officials indicated they
did not have adequate checks and balances
to ensure documentation was kept to ensure
cash receipts were deposited in a timely
manner and receipts properly supported.
(Finding 2025-002, page 12)

The auditors recommended the ROE should
maintain adequate documentation to ensure
cash receipts are deposited in a timely
manner and receipts are properly supported.

ROE Response: The Regional Office of
Education No. 54 will create adequate
checks and balances to ensure documentation
is kept and cash receipts are deposited in
a timely manner with receipts properly
supporting deposits.

AUDITORS’ OPINION

Our auditors state the Regional Office of
Education #54’s 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