REPORT DIGEST

 

ALTON

MENTAL HEALTH CENTER

 

LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

For the Two Years Ended:

June 30, 2005

 

 

Summary of Findings:

 

Total this audit†††††††††††††             4

Total last audit†††††††††††††             0

Repeated from last audit†††††††††† 0

 

Release Date:

June 13, 2006 

 

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 Centerís payroll vouchers did not contain evidence the vouchers were reviewed and approved by an independent person.

 

®      The Center lacked adequate monitoring and collection of accounts receivable.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Expenditures and Activity Measures are summarized on the reverse page.}

 

 

†††††††


†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

†††††††††††††††††††††††††††††††††††††††††††††††††† ALTON MENTAL HEALTH CENTER

††††††††††††††††††††††††† LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

††††††††††††††††††††††††††††††††††††††††††††††††† For The Two Years Ended June 30, 2005

 

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY 2003

    Total Expenditures (All Appropriated Funds)..

$26,195,839

$24,582,256

$22,823,854

††††††††† OPERATIONS TOTAL...............................

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

††††††††††††††† Personal Services..............................

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

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

††††††††††††††† Average Salary Per Employee..........

$26,192,539

99.99%

$15,607,689

59.59%

256

$60,968

$24,578,956

99.99%

$14,574,059

59.29%

262

$55,626

$22,820,454

99.99%

$13,964,958

61.2%

239

$58,430

††††††††††††††† Other Payroll Costs (FICA, Retirement)..

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

$3,527,973

13.47%

$2,950,352

12%

$3,128,646

13.7%

††††††††††††††† Contractual Services...........................

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

$1,556,029

5.94%

$1,456,048

5.93%

$1,709,533

7.5%

††††††††††††††† All Other Items..................................

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

 

††††††††† GRANTS TOTAL......................................

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

$5,500,848

21%

 

$3,300

0.01%

$5,598,497

22.78%

 

$3,300

0.01%

$4,017,317

17.6%

 

$3,400

0.01%

       Cost of Property and Equipment..................

      Cost of Inventories on hand.........................

$54,577,526

$247,169

$54,181,648

$240,037

$54,104,124

$258,685

 

SELECTED ACTIVITY MEASURES (not examined)

FY 2005

FY 2004

FY 2003

      Average Number of Residents.......................

119

111

102

      Ratio of Employees to Residents...................

2.15/1

2.36/1

2.51/1

      Cost Per Year Per Resident.......................

*

$238,728

$244,165

 

* The Department had not calculated at the close of fieldwork.

 

HOSPITAL ADMINISTRATOR

During the Audit Period:††† Ms. Kay Greenwood (7/1/03-12/31/04),

††††††††††††††††††††††††††††††††††††††††††† Ms. Susan Shobe(Effective 1/1/05)

Currently:†††††††††††††††††††††††††† Ms. Susan Shobe

 

 

 


 

 

 

 

 

 

 

 

Independent review of payroll vouchers was not conducted

 

 

 

 

 

 

 

 

Department disagrees

 

 

 

 

Auditor Comment

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable were not collected timely

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

 

LACK OF INDEPENDENT REVIEW OF PAYROLL VOUCHERS

 

†††† The Centerís review of payroll vouchers did not contain evidence the vouchers were reviewed and approved by an independent person.

 

†††† The Centerís total personal services expenditures were $15,607,689 and $14,574,059 for fiscal years 2005 and 2004, respectively.Our review of payroll vouchers disclosed 63 of 63 (100%) tested contained no evidence of an independent review.

 

†††† According to Center management, the lack of an independent reviewed was due to staffing changes.(Finding 1, page 9.)

 

††† We recommended the Center establish procedures to ensure an independent person review the payroll vouchers.

 

††† The Department disagreed with our recommendation.The Department stated payroll vouchers are not approved for payment at the local level.Payroll is run centrally and approved centrally.

 

††† In our auditorís comment, we noted an independent person at the Center level should review the payroll vouchers to ensure the accuracy of pertinent payroll information.The Center has knowledge of the hours worked by each employee; thus, ensuring the expenditures are proper.

 

INADEQUATE CONTROLS OVER ACCOUNTS RECEIVABLE

 

††† The Center lacked adequate monitoring and collection of accounts receivable.

 

††† The Centerís accounts receivable were $467,102 and $403,150 for fiscal years 2004 and 2005, respectfully.Accounts receivable for fiscal year 2004 which were outstanding more than one year amounted to $380,717, or 82% of the total.For fiscal year 2005, the accounts receivable which were outstanding more than one year was $370,372, or 92% of the total.

 

††† Center management stated the lack of collection efforts was due to the lack of personnel.(Finding 3, page 12)

 

††† We recommended the Center allocate sufficient resources to process, bill and collect amounts owned.

 

††† The Department agreed with our recommendation and stated the Business Office workload will be evaluated to allocate sufficient resources.

†††

OTHER FINDINGS

 

††† The remaining findings are less significant and are reportedly being given appropriate attention by the Center.We will review progress toward implementing the recommendations during the Centerís next examination.

 

††† Ms. Carol L. Adams, Ph.D., Secretary, Illinois Department of Human Services provided responses.

 

AUDITORS' OPINION

 

††††† We conducted a special limited compliance attestation engagement of the Center as required by the Illinois State Auditing Act.The Center is not required to prepare financial statements.The financial statements are prepared on a Department wide basis.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:MKL:pp

 

 

SPECIAL ASSISTANT AUDITORS

 

†† Our Special Assistant Auditors were West & Company, LLC.