REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #30:
ALEXANDER, JACKSON, PERRY, PULASKI, AND
UNION COUNTIES

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2021

Release Date:  August 16, 2023

FINDINGS THIS AUDIT: 2

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

FINDINGS LAST AUDIT: 2

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

• (21-1) The Regional Office of
Education #30 did not have sufficient
internal controls over the financial
reporting process.

• (21-2) The Regional Office of
Education #30’s salaries and benefits
were not supported by proper time and
effort documentation.
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

CONTROLS OVER FINANCIAL STATEMENT
PREPARATION

The Regional Office of Education #30
(ROE) did not have sufficient internal
controls over the financial reporting
process. The ROE did not adequately
detect all of the adjustments necessary
in order to properly convert its
generally accepted accounting
principles (GAAP) basis financial
statements to modified cash basis
financial statements. The beginning net
position and fund balance were not
properly adjusted to account for the
cumulative effect of changing to the
new accounting principle.

Illinois School Code, 105 ILCS
5/2-3.17a, allows a Regional Office of
Education or Educational Service Center
to utilize a cash basis, modified cash
basis, or GAAP basis of accounting to
prepare financial statements for audit.
The ROE has chosen to utilize the
modified cash basis of accounting for
financial statement reporting. The ROE
is required to maintain a system of
internal controls over the preparation
of financial statements in accordance
with its selected basis of accounting.
The ROE’s internal controls over
financial reporting should include
adequately trained personnel with the
knowledge, skills and experience to
prepare financial statements and
include all related disclosures as
required by the Governmental Accounting
Standards Board (GASB).

Regional Office management indicated
the errors were a result of the change
in accounting basis and is not a
recurring issue. (Finding 21-001, page
11a)

The auditors recommended that as part
of internal control over the
preparation of financial statements,
the ROE should implement comprehensive
preparation and/or review procedures to
ensure the financial statements,
including disclosures, are complete and
accurate. These procedures should be
performed by a properly trained
individual(s) possessing a thorough
understanding of the basis of
accounting selected for financial
statements, GASB pronouncements, and
knowledge of the ROE’s activities and
operations.

ROE Response: The Regional Office
agrees with the finding and corrective
actions are being implemented.

SALARIES AND BENEFITS NOT SUPPORTED BY
PROPER TIME AND EFFORT DOCUMENTATION

The Regional Office of Education #30
(ROE) did not have formal written
policies related to proper time and
effort documentation. As such, proper
time and effort documentation was not
always maintained or complete.

The Illinois State Board of Education
(ISBE) State and Federal Grant
Administration Policy, Fiscal
Requirements and Procedures requires
that auditable “time and effort”
documentation should be written, after
the fact (not estimated or budgeted)
documentation of how the time was
spent. Time and effort reports totaling
100 percent among all projects should
be prepared by any staff with salary
charged (1) directly to a federal
award, (2) directly to multiple federal
or State awards, or (3) directly to any
combination of a federal award or other
federal, State, or local funds.
Additionally, all time and effort
sheets and other supporting
documentation must be retained at the
local level and be available for review
or audit any time within three years
after termination of the project or
until the local entity is notified in
writing from ISBE that the records are
no longer needed for audit or review.

Regional Office management indicated
this was an oversight. (Finding 21-002,
page 11b)

The auditors recommended the ROE should
implement written policies and
procedures over time and effort
reporting to ensure proper
documentation is being obtained and/or
maintained in all instances to properly
distribute salary and benefit costs for
employees who work in whole or in part
on grant program activity in accordance
with the ISBE State and Federal Grant
Administration Policy, Fiscal
Requirements and Procedures. This would
include having the documentation
reviewed and formally approved by a
supervisor.

ROE Response: The Regional Office
agrees with the finding and corrective
actions are being implemented.

AUDITORS’ OPINION

Our auditors state the Regional Office
of Education #30’s financial statements
as of June 30, 2021 are fairly stated
in all material respects.

This financial audit was conducted by
the firm of Kemper CPA Group LLP.

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:JMM