REPORT DIGEST

ILLINOIS STATE BOARD OF EDUCATION

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2019

Release Date:  January 30, 2020

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: 1

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

INTRODUCTION

This report contains only results pertaining
to the Financial Statement Audit and agreed-
upon procedures for the Illinois State Board
of Education (Agency) for the year ended
June 30, 2019.  Our next engagement will
include a financial audit for the year ended
June 30, 2020 and a compliance examination
for the two years ending June 30, 2020.

SYNOPSIS

• (19-01) The Agency did not maintain
sufficient controls over financial reporting
to ensure the financial statements were
complete and accurate.

FINDING, CONCLUSION, AND RECOMMENDATION

FINANCIAL STATEMENT REPORTING ERROR

The Illinois State Board of Education
(Agency) did not maintain sufficient
controls over financial reporting to ensure
the financial statements were complete and
accurate.

The Agency improperly reported
reappropriations of $56.3 million as lapsed
appropriations.  Additionally, the Agency
improperly excluded the Capital Development
Fund, which had no activity, from the
Agency’s financial statements.  This fund
had appropriations and reappropriations of
$25 million each, netting to a zero fund
balance. These misstatements were identified
during the financial audit and subsequently
corrected by Agency personnel.  (Finding 1,
pages 59-60)  This finding has been repeated
since 2017.

We recommended the Agency exercise due care
to identify misstatements during the
financial statement preparation and review
process.

The Agency agreed with the finding and
stated they will perform additional planning
steps specific to financial statement
preparation with a goal of sharing context
for each significant fund.

We will review the Agency’s progress towards
the implementation of our recommendation in
our next audit.

AUDITOR’S OPINION

The auditors stated the financial statements
of the Agency as of and for the year ended
June 30, 2019 are fairly stated in all
material respects.

This financial audit was conducted by
Kerber, Eck & Braeckel LLP.

JANE CLARK
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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