REPORT DIGEST

 

CHICAGO READ

MENTAL HEALTH CENTER

 

LIMITED SCOPE

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                       3

Total last audit                       3

Repeated from last audit        1

 

Release Date:

May 20, 2004

 

 

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 TDD (217) 524-4646

 

This Report Digest is also available on

the worldwide web at

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

 

 

 

SYNOPSIS

 

  • The wages of an employee with statewide responsibilities were paid from Center appropriations.
  • The Center did not process Medicare receivable claims timely and did not notify the Department of Human Services Central Office of collection problems.

 

 

 

 

 

 

 

 

 

 

 

 

 

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

                                CHICAGO READ MENTAL HEALTH CENTER

                                                    COMPLIANCE AUDIT

                                       For The Two Years Ended June 30, 2003

EXPENDITURE STATISTICS

FY 2003

FY 2002

FY 2001

! Total Expenditures (All Appropriated Funds)

34,303,292

$36,341,308

$36,067,282

OPERATIONS TOTAL

% of Total Expenditures

Personal Services

$33,915,392

98.9%

$25,134,202

$35,953,408

98.9%

$26,747,756

$35,679,382

98.9%

$26,368,572

% of Operations Expenditures

Average No. of Employees

Average Salary Per Employee

74.1%

419

$59,986

74.4%

485

$57,212

73.9%

496

$53,162

Other Payroll Costs (FICA, Retirement)

% of Operations Expenditures

$5,285,944

15.6%

$5,584,832

15.5%

$5,469,108

15.3%

Contractual Services

% of Operations Expenditures

$2,484,579

7.3%

$2,566,118

7.1%

$2,654,641

7.5%

Commodities

% of Operations Expenditures

$685,406

2.0%

$715,919

2.0%

$822,302

2.3%

All Other Items

% of Operations Expenditures

$325,261

1.0%

$338,783

1.0%

$364,759

1.0%

GRANTS TOTAL

% of Total Expenditures

$387,900

1.1%

$387,900

1.1%

$387,900

1.1%

  • Cost of Property and Equipment

$23,260,675

$22,421,805

$21,610,066

SELECTED ACTIVITY MEASURES

FY 2003

FY 2002

FY 2001

! Average Number of Residents

178

149

200

! Ratio of Employees to Residents

2.35/1

3.26/1

2.48/1

! Cost Per Year Per Resident

*

$221,176

$213,126

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

     

FACILITY DIRECTOR

During Audit Period: Thomas Simpatico, M.D.

Currently: Thomas Simpatico, M.D.

 

 

 

 

 

 

 

 

 

 

 

 

An employee on the Centerís payroll did not perform job responsibilities related to the Center

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three of twenty accounts receivable tested did not have claims filed timely with Medicare, resulting in a loss of revenue of $371

 

 

Accounts receivable collection problems not reported to Central Office

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

APPROPRIATION OF WAGES FOR AN EMPLOYEE WITH STATE-WIDE RESPONSIBILITIES

The wages of an employee with statewide responsibilities were paid from Center appropriations.

In testing personal service expenditures, we identified an employee on the Centerís payroll who did not perform job responsibilities related to the Center. A State agency should only pay the salary and benefits of employees from whom they receive services.

Based on the job description, the individual is an employee of the Behavioral Health Systems Integration Unit, Illinois Department of Human Services. As such, the individual functions subject to the administrative approval of the Chief of the Behavioral Health Systems Integration Unit and the Director, Division of Mental Health. (Finding 1, page 9)

Center officials accepted our recommendation to coordinate with the DHS Central Office to resolve this issue.

INADEQUATE CONTROL OVER ACCOUNTS RECEIVABLE

The Center did not process Medicare receivable claims and did not notify the Department of Human Services Central Office of a collection problem with certain patientís accounts receivable.

Three of twenty (15%) accounts receivable tested did not have claims filed timely with Medicare. These unprocessed claims totaled $371 and resulted in a loss of revenue.

 

Eight of twenty (40%) accounts receivable tested were over a year old and the Center did not report the collection problems to Central Office. These accounts receivable totaled $277,545 and ranged from $1,311 to

$74,778. (Finding 3, pages 11-12

Center officials accepted our recommendation to allocate sufficient resources to the Recipient Resource Unit to process, bill and collect amounts owed.

 

OTHER FINDING

The remaining finding dealt with untimely annual evaluations. We will review progress toward implementation of all recommendations during the next audit.

 

AUDITORSí OPINION

We conducted a compliance audit of the Center as required by the Illinois State Auditing Act. This was a limited scope compliance audit that also included performing certain agreed-upon procedures with respect to the accounting records of the Center to assist our audit of the entire Department. Financial statements for the entire Department of Human Services will be presented in that report.

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KMC:drh

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Prado & Renteria.