REPORT DIGEST

REGIONAL OFFICE OF EDUCATION #49: ROCK
ISLAND COUNTY

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

Release Date:  November 19, 2025

FINDINGS THIS AUDIT: 1

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

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
#49 lacked sufficient internal controls
over the financial reporting process.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CONTROLS OVER FINANCIAL STATEMENT
PREPARATION

The Regional Office of Education #49 (ROE)
lacked sufficient internal controls over
the financial reporting process. While the
ROE maintained controls over the processing
of most accounting transactions, there were
not sufficient controls over the
preparation of the financial statements for
management or employees in the normal
course of performing their assigned
functions to prevent, or detect and
correct, financial statement misstatements
and disclosure omissions in a timely
manner.

The ROE’s financial information prepared
reported the Institute Fund within the
aggregate of nonmajor funds when it met the
criteria as a major fund.

The ROE subsequently revised its financial
statements to present the Institute Fund as
a major fund.

The 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
generally accepted accounting principles
(GAAP) basis of accounting to prepare
financial statements for audit. The ROE
chose to utilize the cash basis of
accounting for financial statement
reporting. The ROE is required to maintain
a system of controls over the preparation
of financial statements in accordance with
its selected basis of accounting.

GASB Statement No. 34, Basic Financial
Statements – and Management’s Discussion
and Analysis – for State and Local
Government (Statement), states the focus of
governmental and proprietary fund financial
statements is on major funds.  Fund
statements should present the financial
information of each major fund in a
separate column.  Nonmajor funds should be
aggregated and displayed in a single
column.

The reporting government’s main operating
fund (the general fund or its equivalent)
should always be reported as a major fund.
Other individual governmental and
enterprise funds should be reported in
separate columns as major funds based on
these criteria:

a. Total assets, liabilities, revenues, or
expenditures/expenses of that individual
governmental or enterprise fund are at
least 10 percent of the corresponding total
(assets, liabilities, and so forth) for all
funds of that category or type (that is,
total governmental or total enterprise
funds), and

b. Total assets, liabilities, revenues, or
expenditures/expenses of the individual
governmental fund or enterprise fund are at
least 5 percent of the corresponding total
for all governmental and enterprise funds
combined.

In addition to funds that meet the major
fund criteria, any other governmental or
enterprise fund that the government’s
officials believe is particularly important
to financial statement users (for example,
because of public interest or consistency)
may be reported as a major fund.

Regional Office officials indicated the
exception noted was due to oversight.
(Finding 2023-001, pages 15 – 16) This
finding was first reported in 2007.

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

ROE Response: The ROE will identify and
attend applicable courses and/or training
sessions that will lend for more
comprehensive preparation procedures
implemented to ensure the accuracy and
completion of financial statements.

AUDITORS’ OPINION

Our auditors state the Regional Office of
Education #49’s financial statements as of
June 30, 2023 are fairly presented in all
material respects.

This financial audit was conducted by the
firm of Adelfia 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

FJM:JRB