REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #20: EDWARDS,
GALLATIN, HAMILTON, HARDIN, POPE, SALINE,
WABASH, WAYNE AND WHITE COUNTIES

FINANCIAL AUDIT
FOR THE YEAR ENDED JUNE 30, 2023

Release Date:  January 31, 2024

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:  0

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

• (23-1) The Regional Office of Education
#20 did not have sufficient internal
controls over the financial reporting
process.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CONTROLS OVER FINANCIAL STATEMENT
PREPARATION

The Regional Office of Education #20 (ROE)
did not have sufficient internal controls
over the financial reporting process. The
initial financial statements included the
General Education Development fund in
aggregate as a nonmajor fund. Total
liabilities in the General Education
Development fund of $5,805 exceeded 10% of
all governmental fund liabilities and 5% of
the total liabilities of the governmental
and proprietary funds combined, and should
have been considered a major fund.

As prescribed by Governmental Accounting
Standards Board (GASB) No. 34, governmental
and proprietary fund reporting focuses on
the major funds, rather than on the fund
type. There is a two-step process for
determining if a fund should be reported as
a major fund: 1) total assets, liabilities,
revenues, or expenditures/expenses
(excluding extraordinary items) of an
individual fund are at least 10 % of the
corresponding total for the fund type, and
2) total assets, liabilities, revenues, or
expenditures (excluding extraordinary items)
of an individual fund are at least 5% of the
corresponding total of all governmental and
proprietary funds combined. Funds that do
not meet the major fund determination
requirements are reported in aggregate as
nonmajor funds.

The Regional Office management indicated the
miscalculation was a result of overlooking
that interfund loans should be included in
the major fund calculation. (Finding
2023-001, page 10)

The auditors recommended as part of internal
control over preparation of financial
statements, the ROE should continue to
implement comprehensive review procedures to
ensure that the financial statements are
complete and accurate.

ROE Response: The Regional Office of
Education #20 (ROE) will continue to
implement comprehensive review procedures to
ensure that the financial statements are
complete and accurate. Interfund loans will
be duly noted and reviewed as part of
internal controls relating to major fund
determination while preparing annual
financial statements.

AUDITORS’ OPINION

Our auditors state the Regional Office of
Education #20’s financial statements as of
June 30, 2023 are fairly presented in all
material respects.

This financial audit was conducted by the
firm of Doehring, Winders & Co. 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:JRB