REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #3: BOND,
CHRISTIAN, EFFINGHAM, FAYETTE, AND
MONTGOMERY COUNTIES

FINANCIAL AUDIT (IN ACCORDANCE WITH THE
UNIFORM GUIDANCE)
FOR THE YEAR ENDED JUNE 30, 2023

Release Date:  April 3, 2024

FINDINGS THIS AUDIT: 1

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

• (23-1) The Regional Office of Education #3
misreported an administrative fee.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

MISREPORTING OF AN ADMINISTRATIVE FEE

During review of the Regional Office of
Education #3’s (ROE) financial information,
it was noted that the 1% administrative fee
retained by the ROE was accounted for and
reported in the same custodial fund as the
taxes that were to be distributed to the
school districts. Custodial funds account
for amounts collected and distributed on
behalf of another government or
organization. Since the fee is revenue for
the ROE itself, rather than held for a
separate entity, it should have been
reported in one of the funds that accounts
for the ROE’s revenue, such as the General
Fund.

In June 2022, the Illinois Department of
Revenue (IDOR) issued Informational Bulletin
2022-31:

Effective July 1, 2022, Public Act 102-1062
provides that one percent (1%) of the County
School Facility Occupation Tax collected
shall be distributed to the Regional
Superintendents of Schools to cover the
costs of administering and enforcing the
provisions of the County School Facility
Occupation Tax. To implement this
legislation, IDOR will retain its portion of
the administrative fee, then distribute the
remaining balance to the Regional
Superintendents of Schools. The Regional
Superintendents of Schools will then retain
their portion before distributing the
remainder to the school districts receiving
the revenue.

Regional Office management indicated they
did not realize that the activity from the
1% administrative fee from the County School
Facility Occupation Tax retained by the ROE
should not be recorded in the custodial
fund, with the related tax. (Finding
2023-001, page 13)

The auditors recommended when the ROE
receives new funding, such as an
administrative fee, it should evaluate the
source and allowed use of such funds to
determine how to properly report the funding
in the financial statements.

ROE Response: The ROE will record the local
receipts and related disbursements of the 1%
administrative fee from the County School
Facility Occupation Tax retained by the ROE
in the General Fund in the future.

AUDITORS’ OPINION

Our auditors state the Regional Office of
Education #3’s financial statements as of
June 30, 2023 are fairly presented in all
material respects.

This financial audit was conducted by the
firm of West & Company, LLC.

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

FJM:JRB