REPORT DIGEST WILLIAM A. HOWE
DEVELOPMENTAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2007 Summary of Findings: Total this audit 2 Total last audit 1 Repeated from last audit 0 Release Date: June 12, 2008
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 Attn: Records Manager 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 |
SYNOPSIS
¨
The Center was
decertified as a provider of Medicare services on March 15, 2007.
¨
The Center had
inadequate control and maintenance of time and attendance records and payroll
records.
{Expenditures
and Activity Measures are summarized on the reverse page.} |
WILLIAM A. HOWE DEVELOPMENTAL CENTER
LIMITED SCOPE COMPLIANCE EXAMINATION
For
The Two Years Ended June 30, 2007
EXPENDITURE STATISTICS |
FY 2007 |
FY 2006 |
FY 2005 |
Total Expenditures (All Appropriated Funds)................. |
$55,137,106 |
$49,632,457 |
$53,152,580 |
OPERATIONS
TOTAL..................................
% of Total Expenditures........................
|
$55,126,006
99.9% |
$49,623,457
99.9% |
$53,141,580
99.9% |
Personal Services...................................
% of
Operations Expenditures...........
Average
No. of Employees...............
Average
Salary Per Employee..........
|
$41,133,707
74.6%
767
$53,629 |
$37,844,824
76.3%
767
$49,341 |
$38,442,033
72.3%
826
$46,540 |
Other
Payroll Costs (FICA, Retirement)......
% of
Operations Expenditures...........
|
$7,711,101
14.0% |
$6,040,447
12.2% |
$8,789,798
16.5% |
Contractual Services...............................
% of
Operations Expenditures...........
|
$4,660,294
8.5% |
$4,418,060
8.9% |
$4,382,146
8.3% |
Commodities...................................................
% of
Operations Expenditures.......................
|
$1,007,329
1.8% |
$862,332
1.7% |
$880,128
1.7% |
All Other Items......................................
% of
Operations Expenditures...........
|
$613,575
1.1% |
$457,794
0.9% |
$647,475
1.2% |
GRANTS
TOTAL..........................................
% of Total Expenditures.........................
Cost of Property and Equipment………………. |
$11,100
0.1%
$56,583,144 |
$9,000
0.1%
$56,434,705 |
$11,000
0.1%
$55,911,357 |
SELECTED ACTIVITY
MEASURES |
FY 2007 |
FY 2006 |
FY 2005 |
Average Number of Residents............................. |
387 |
408 |
430 |
Ratio of Employees to Residents...........................
Paid Overtime Hours & Earned Compensatory Hours.................................................................
Value of Paid Overtime Hours & Earned Compensatory
Hours...........................................
|
1.98/1
|
1.88/1
|
1.92/1
|
Cost Per Year Per Resident.................................
|
* |
$154,258 |
$158,395 |
*Department had not calculated at the close of
fieldwork. |
|||
FACILITY DIRECTOR(S) |
|||
During
Audit Period: Jay Canna (7/01/05 – 4/27/07); Sharon Parker (4/27/07–
7/27/07); Arthur Holmberg (7/27/07 – 4/08/08); Joseph Turner, Acting
(Effective 4/08/08) Currently: Joseph Turner, Acting |
Decertification resulted in an estimated loss of revenue of
$8,300,000 as of June 30, 2007 and a potential loss of revenue approximating
$25,500,000 on an annual basis 54 of 240 (23%) Monthly Attendance Record Reports were not included
in the Center’s timekeeping files |
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS DECERTIFICATION OF
CENTER AS MEDICARE SERVICES PROVIDER
The Federal Department of Health and Human Services decertified the Center as a provider of Medicare services. The decertification resulted in an estimated loss of revenue of $8,300,000 as of June 30, 2007 and a potential loss of revenue approximating $25,550,000 on an annual basis. The Center for Medicare & Medicaid Services conducted a survey of the Center in August 2006 and identified that the center failed to meet certain Federal Conditions of Participation. Another survey was conducted in March 2007. That survey identified that the Center did not meet the Federal Condition of Participation in the areas of Governing Body and Management and Client Protections. The Center was notified on March 15, 2007 of the Center’s immediate termination as a Medicaid provider. (Finding 1, pages 9-10) Department officials agreed with our recommendation that the Center develop and implement a plan to obtain recertification and address the non-compliance with federal requirements. INADEQUATE CONTROL AND MAINTENANCE OF TIME AND ATTENDANCE RECORDS AND
PAYROLL RECORDS In our testing of payroll expenditures we noted: - 54 of 240 (23%) of Monthly Attendance Record Reports were not included in the Center’s timekeeping files. - 63 of 240 (26%) of Monthly Attendance Record Reports included in the Center’s timekeeping file were not signed by the employee’s supervisor. - 3 of 12 (25%) employee final pay/termination packets necessary to document the calculation of final pay and accrued benefits could not be located. (Finding 2, pages 11-12) Department officials agreed with our recommendation that the Center implement procedures to ensure timekeeping and payroll records are properly filed and maintained and that employees review and sign the Monthly Attendance Record Report and supervisors document their review by signing the form before filing it. AUDITORS' OPINION We conducted a compliance examination of the Center as required by the Illinois State Auditing Act. This was a limited scope compliance examination. The Center’s accounting records will be covered by the 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 Duffner & Company, P.C.. |