REPORT DIGEST REGIONAL OFFICE OF EDUCATION #50: ST. CLAIR COUNTY FINANCIAL AUDIT (IN ACCORDANCE WITH THE UNIFORM GUIDANCE) FOR THE YEAR ENDED JUNE 30, 2016 Release Date: March 29, 2017 FINDINGS THIS AUDIT: 1 CATEGORY: NEW -- REPEAT -- TOTAL Category 1: 0 -- 0 -- 0 Category 2: 1 -- 0 -- 1 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, 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 • (16-1) The Regional Office of Education #50 did not obtain required certifications from subrecipients of federal awards. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS REQUIRED CERTIFICATIONS NOT OBTAINED For Fiscal year 2016, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), contained in 2 CFR Part 200, became effective for all federal award programs administered by the St. Clair County Regional Office of Education #50 (the Regional Office). The Uniform Guidance (2 CFR 200.415(a)) requires the Regional Office to provide a specific certification to funding agencies on all annual and final fiscal reports or vouchers requesting payment, and, conversely, requires the Regional Office to obtain such certification from their subrecipients of this program. Auditors noted the Regional Office was providing the certification to the Illinois State Board of Education, the funding agency for Title I School Improvement and Accountability, when required. However, it was noted that the certifications were not obtained from the subrecipients of this program. The Regional Office was unable to dedicate the time needed to fully implement the Uniform Guidance due to competing priorities. (Finding 16-001, pages 14-15). The auditors recommended that the Regional Office develop policies and procedures to ensure all annual and final fiscal reports or vouchers requesting payment received from subrecipients of federal awards include the certification required by 2 CFR 200.415(a). The Regional Office of Education #50 responded it understands the finding and will provide the specific certification language required by 2 CFR 200.415(a) on all currently required monthly expenditure reports that are submitted with an authorized approved signature along with supporting documentation from subrecipients. AUDITORS’ OPINION Our auditors state the Regional Office of Education #50’s financial statements as of June 30, 2016 are fairly presented in all material respects. This financial report was conducted by the firm of Doehring, Winders & Co. LLP. AMEEN DADA 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