REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #24: GRUNDY AND
KENDALL COUNTIES

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2022

Release Date:  February 14, 2024

FINDINGS THIS AUDIT: 2

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

FINDINGS LAST AUDIT:  5

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

• (22-1) The Regional Office of Education
#24 did not provide completed financial
statements in an auditable form by the
August 31 deadline.

• (22-2) The Regional Office of Education
#24 had inadequate controls over grant
compliance.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

DELAY OF AUDIT

The Regional Office of Education #24 (ROE)
did not provide completed financial
statements in an auditable form by the
August 31, 2022 deadline. The preliminary
draft was provided to the auditors on August
28, 2023.

The ROE is subject to 105 ILCS 5/2-3.17a
which requires the Auditor General’s office
to cause an audit to be made, as of June
30th of each year, of the financial
statements of all accounts, funds and other
moneys in the care, custody or control of
the regional superintendent of schools of
each educational service region in the State
and of each educational service center
established in the School Code. The audit is
to be conducted in accordance with Generally
Accepted Government Auditing Standards
(GAGAS). The Regional Office of Education or
Educational Service Center may utilize a
cash basis, modified cash basis, or
generally accepted accounting principles
(GAAP) basis of accounting to prepare the
financial statements for audit. The ROE has
chosen to use the cash basis of accounting
for financial reporting.

In accordance with 105 ILCS 5/2-3.17a, the
Auditor General has promulgated
administrative rules and regulations to
govern this process. Those rules, 74 Ill.
Adm. Code 420.320 (c) (2), state that for
audit purposes, each regional office of
education and educational service center
shall make available to the Auditor General
or his designee all books and records deemed
necessary to make and complete the required
audits. The records shall be in auditable
form by August 15 of the succeeding fiscal
year. Financial reports are to be available
no later than August 31 in order for the
annual audit to be completed by an
independent auditor selected by the Auditor
General.

In addition, prudent business practices and
transparency require timely preparation and
completion of financial statements.

Regional Office officials indicated prior
staff that handled the financials was unable
to finalize records in a timely manner.
(Finding 22-001, pages 10 – 11) This finding
was first reported in 2018.

The auditors recommended the ROE should
implement procedures to ensure compliance
with 105 ILCS 5/2-3.17a and 74 Ill. Adm.
Code 420.320 (c) (2). These financial
statements need to be presented to the
Auditor General’s independent auditors for
audit by the August 31 deadline.

ROE Response: The new ROE financial team
have made the necessary financial
corrections. The team has reconciled
financials and is now currently on pace to
meet future deadlines.

CONTROLS OVER GRANT COMPLIANCE

The Regional Office of Education #24 (ROE)
had inadequate controls over grant
compliance. Auditors noted that expenditure
reports for two grants, Digital Equity and
Elementary and Secondary School Emergency
Relief (ESSER) II, reported budgeted
expenditures rather than actual expenditures
per the accounting records. Expenditures
were overreported by $9,113 and $3,983,
respectively. In addition, for the Digital
Equity grant, differences among line items
between actual expenditures and budgeted
amounts exceeded the thresholds permitted by
the Illinois State Board of Education
(ISBE), so the budget should have been
amended but was not.

As a recipient of federal, State, and local
funds from various grantor agencies, the ROE
must incorporate certain procedures into its
operations in order to comply with the grant
agreements with these entities.

The ROE is responsible for establishing and
maintaining an internal control system over
the completion of expenditure reports
required for grants administered by ISBE.

Regional Office officials indicated the new
financial team discovered expenditures were
classified incorrectly. (Finding 22-003,
page 12)

The auditors recommended the ROE should
implement adequate internal controls to
ensure that year-end expenditure reports
match the trial balance. The REOE should
ensure that budgeted and actual expenditures
are compared periodically and at the end of
the grant period, and should amend grant
budgets as needed when required by the
grantor.

ROE Response: The newly established ROE
financial team reviews the expenditures on a
monthly basis to ensure financial reports
match trial balance figures.

AUDITORS’ OPINION

Our auditors state the Regional Office of
Education #24’s financial statements as of
June 30, 2022 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


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