REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #47: LEE, OGLE
AND WHITESIDE COUNTIES

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

Release Date:  August 27, 2025

FINDINGS THIS AUDIT: 2

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

FINDINGS LAST AUDIT: 2

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
#47 did not provide completed financial
statements in an auditable form by the
August 31, 2023 deadline.


• (23-2) The Regional Office of Education
#47 did not have adequate subrecipient
monitoring documentation.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

DELAY OF AUDIT

The Regional Office of Education #47 (ROE)
did not provide completed financial
statements in an auditable form by the
August 31, 2023 deadline. Completed
financial statements were received on July
23, 2024. The June 30, 2020 audit report was
released on August 30, 2023. Additionally,
the June 30, 2021 and June 30, 2022 audit
reports were released on August 21, 2024.

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 the 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. 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.

In accordance with 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 an 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 management indicated they
did not provide their books to their outside
accountant in time to fully adjust and
prepare their financial statements in an
auditable form. (Finding 23-001, pages 15a –
15b) This finding was first reported in
2018.

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

ROE Response:  Management agrees with the
finding.  ROE 47 will ensure that moving
forward each fiscal year the financial
statements will be prepared and available by
August 31st of that year starting with the
FY 24 audit.

SUBRECIPIENT MONITORING

The Regional Office of Education #47 (ROE)
did not have adequate subrecipient
monitoring documentation.  The ROE’s
internal controls over subrecipient
monitoring do not include timely and
adequate risk assessment procedures.
Furthermore, the ROE did not properly
monitor subrecipients in accordance with the
Uniform Guidance standards. During audit
testing procedures it was determined that
the ROE:

McKinney Education for Homeless Children –
for three (3) of three (3) subrecipients
tested, the ROE:

• Did not evaluate the risk of noncompliance
with Federal statues, regulations, and the
terms and conditions of the subaward.
• Did not conduct subrecipient monitoring
procedures during the year ended June 30,
2023.
• Did not determine whether the subrecipient
met the 2 CFR 200 Subpart F Audit
requirements criteria for a single audit.

COVID-19 ARP - McKinney Education for
Homeless Children – for three (3) of three
(3) subrecipients tested, the ROE:

• Did not identify the subaward and
applicable requirements in the agreements.
• Did not evaluate the risk of noncompliance
with Federal statues, regulations, and the
terms and conditions of the subaward.
• Did not conduct subrecipient monitoring
procedures during the year ended June 30,
2023.
• Did not determine whether the subrecipient
met the 2 CFR 200 Subpart F Audit
requirements criteria for a single audit.

Regional Office management indicated the
ROE’s internal control system does not
include controls to properly detect and
prevent noncompliance with subrecipient
monitoring requirements in a timely manner.
(Finding 23-002 pages 16a – 16c) This
finding was first reported in 2017.

The auditors recommended the ROE establish
and maintain effective internal control over
federal awards to ensure subrecipients are
properly monitored as required by 2 CFR
200.332. This includes:

a. Identifying the subaward and applicable
requirements in the agreements;
b. Evaluating the risk of noncompliance with
Federal statutes, regulations, and the terms
and conditions of the subaward;
c. Utilizing risk assessment results to
develop and implement necessary subrecipient
monitoring procedures for the fiscal year;
d. Conducting subrecipient monitoring
procedures; and
e. Determining whether the subrecipient met
the requirement criteria of 2 CFR 200
Subpart F Audit requirements for a single
audit.

ROE Response:  Effective April 2024, the
Regional Office will formally identify the
subaward and the applicable requirements in
our agreements. We will conduct subrecipient
monitoring procedures. We will determine if
the subrecipient met the requirement
criteria of 2 CFR 200 Subpart F Audit
requirements for a single audit.

AUDITORS’ OPINION

Our auditors state the Regional Office of
Education #47’s financial statements as of
June 30, 2023 are fairly presented in all
material respects.

This financial audit was conducted by the
firm of Prado & Renteria Certified Public
Accountants.

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