REPORT DIGEST

 

DEPARTMENT OF CHILDREN AND FAMILY SERVICES

 

FINANCIAL AUDIT

For the Year Ended:

June 30, 2004

and

COMPLIANCE EXAMINATION

For the Year Ended:

June 30, 2004

 

Summary of Findings:

Total this audit                      15

Total last audit                      11

Repeated from last audit         8

 

Release Date:

April 6, 2005 

 

 

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

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 is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

SYNOPSIS

 

¨      The Department made payments for efficiency initiative billings from improper line item appropriations.  Efficiency payments totaled $6,537,191 during fiscal year 2004.

 

¨      Child welfare and foster care files lacked complete and timely prepared documentation.

 

¨      The Department's child abuse investigations did not always fully comply with State law.  For instance, the Department:

 

-                      Did not always determine whether reports of child abuse and neglect were "unfounded" or "indicated" within 60 days.

 

-                      Failed to initiate some investigations of child abuse and neglect within 24 hours of receipt.

 

¨      All contracts were not reviewed and signed prior to the beginning of the contract period.

 

¨      Interstate adoption assistance agreements were not annually verified as required by State law.

 

¨      Economic interest statements were not all filed by the due date.

 

¨      Personal use of State vehicles was not added to employees' income.

 

¨      All overtime worked was not evidenced by proper prior approval.

 

¨      Additional monitoring procedures are needed over residential and group home service providers.

 

¨      The Department did not perform sufficient monitoring of its contractors providing services to children.

 

DEPARTMENT OF CHILDREN AND FAMILY SERVICES

                             FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

                                                    For The Year Ended June 30, 2004

 

EXPENDITURE STATISTICS

FY 2004

FY 2003

!  Total Expenditures (All Funds)...................

 

$1,267,886,847

$1,300,633,554

     OPERATIONS TOTAL.................................

         % of Total Expenditures........................

$264,647,769

21%

$274,890,047

21%

         Personal Services...................................

            % of Operations Expenditures...........

            Average No. of Employees...............

$177,849,872

67%

3,406

$181,298,553

66%

3,619

         Other Payroll Costs (FICA,

          Retirement)....................................................

            % of Operations Expenditures...........

 

$33,950,029

13%

 

$39,182,441

14%

         Contractual Services...............................

            % of Operations Expenditures...........

$31,782,862

12%

$34,101,348

13%

         All Other Operations Items.....................

            % of Operations Expenditures......................

$21,065,006

8%

$20,307,705

7%

     LUMP SUM AND OTHER PURPOSES TOTAL..........................................................

         % of Total Expenditures.............................

 

$51,695,490

4%

 

$54,104,118

4%

     AWARDS AND GRANTS TOTAL................

         % of Total Expenditures........................

$951,543,588

75%

$971,639,389

75%

!  Cost of Property and Equipment (unaudited).

$36,196,000

$35,967,000

 

SELECTED ACTIVITY MEASURES (unaudited)

FY 2004

FY 2003

!  Hotline Calls.........................................................

277,295

293,292

!  Children served in-

     -     Regular foster care..........................................

-          Specialized foster care.....................................

-          Relative care...................................................

-          Residential placements.....................................

-          Independent living............................................

 

6,609

3,487

6,596

1,500

906

 

7,097

3,916

6,987

1,663

964

!. Finalized adoptions................................................

2,163

2,795

 

AGENCY DIRECTOR

     During Audit Period:  Mr. Bryan Samuels

     Currently:  Mr. Bryan Samuels

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Department did not receive guidance or documentation with the billings from CMS

 


Department staff state they have not experienced savings from the initiatives

 


Efficiency payments were made from line items that had available monies

 

 

 

 

 

 

 

 


Efficiency initiative payments totaled $6,537,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Child case files incomplete and not timely prepared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


All child abuse and neglect investigations not timely completed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


All child abuse and neglect reports not investigated timely

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Contracts signed after beginning of contract period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Noncompliance with State law

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


16 employees filed statements late

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Taxable income not reported for personal use of State vehicles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Overtime approvals missing or incomplete

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Additional monitoring procedures needed

 

 

Providers paid in excess of $218 million in FY 04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Department officials acknowledge contracts lack specific identifiable measurable criteria

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Insufficient monitoring of contractors providing services to children

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

PAYMENTS WERE MADE FOR EFFICIENCY INITIATIVE BILLINGS FROM IMPROPER LINE ITEM APPROPRIATIONS

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