REPORT DIGEST

 

ELGIN MENTAL HEALTH CENTER

 

LIMITED SCOPE COMPLIANCE EXAMINATION

For the Two Years Ended: June 30, 2009

 

Summary of Findings:

Total this audit:  1

Total last audit:  4

Repeated from last audit:  1

 

Release Date: June 29, 2010

 

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 and Full Report are also available on the worldwide web at www.auditor.illinois.gov

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SYNOPSIS

 

           The Center had inadequate controls over identifying a patient’s ability to pay and following up on accounts receivable.

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

INADEQUATE CONTROLS OVER ACCOUNTS RECEIVABLE

 

            The Center had inadequate controls over identifying a patient’s ability to pay and following up on accounts receivable.

 

The Center did not complete the “Notice of Determination” within 60 days of admittance or did not complete it timely.

 

           Three of 25 (12%) accounts receivable tested totaling $1,350 did not have a “Notice of Determination” on file and 8 of 25 (32%) totaling $199,998 were not completed timely, ranging from 28 to 125 days after the 60-day period from date of admittance.

 

The Center did not maintain complete patient financial case records to support the initial setup of the patient’s receivable in the billing system.

 

           Three of 25 (12%) accounts receivable tested did not have financial case record on file.  These accounts receivable totaled $65,249.  Five of 25 (20%) accounts receivable tested did not have a completed financial case record on file. These totaled $72,214.

 

The Center did not follow-up on accounts receivable up to 180 days old or report them as a collection problem to Central Office.

 

           Nine of 25 (36%) accounts receivable tested were outstanding over 180 days old and not reported as problem accounts to DHS Central Office. These accounts receivable totaled $240,244. (Finding 1, pages 9-11) This finding was first reported in 2003.

 

Department officials agreed with our recommendation that the Center comply with existing policies and procedures to process, bill, and collect amounts owed.  Department officials stated that the Center’s Recipient Resource Unit will implement a process to provide documentation on patient files to indicate that the Notice of Determination is completed and mailed within 60 days of admission date.  (For the previous agency response, see Digest footnote #1)

 

AUDITORS’ OPINION

 

            We conducted a compliance attestation examination of the Center as required by the Illinois State Auditing Act.    We also performed certain auditing procedures with respect to the accounting records of the Center to assist with the financial audit of the entire Department of Human Services.  Financial statements for the Department will be presented in that report.

 

 

WILLIAM G. HOLLAND, Auditor General

 

WGH:KMC:drh

 

 

SPECIAL ASSISTANT AUDITORS

 

Our special assistant auditors were Martin & Shadid, P.C.

 

 

DIGEST FOOTNOTE

 

#1 INADEQUATE CONTROLS OVER ACCOUNTS RECEIVABLE – PREVIOUS AGENCY RESPONSE

 

2007:  Agreed:   The Center will continue to allocate needed resources to the Recipient Resource Unit to process, closeout, bill, and collect all amounts owed.  The Center hired a Business Manager and he is now fully trained in the areas of Medicare, Medicaid billing, and collections.