REPORT DIGEST

 

ILLINOIS SCHOOL

FOR THE DEAF

 

LIMITED SCOPE COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                       1

Total last audit                       2

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

  • Commodities inventory records were not properly maintained.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

                                    DEPARTMENT OF HUMAN SERVICES

                                       ILLINOIS SCHOOL FOR THE DEAF

 

                                    LIMITED SCOPE COMPLIANCE AUDIT

                                      For The Two Years Ended June 30, 2003

 

EXPENDITURE STATISTICS

FY 2003

FY 2002

FY 2001

! Total Expenditures (All Appropriated Funds)

$14,869,343

$14,703,014

$14,436,003

OPERATIONS TOTAL

          % of Total Expenditures 9;

$14,869,343

100%

$14,703,014

100%

$14,436,003

100%

     Personal Services

          % of Operations Expenditures

     Average No. of Employees 9;

$10,911,088

73.38%

234

$10,860,222

73.86%

257

$10,494,972

72.70%

254

     Other Payroll Costs (FICA, #9; #9; Retirement)

          % of Operations Expenditures 9;

$1,667,938

11.22%

$1,666,564

11.33%

$1,580,817

10.95%

     Contractual Services

          % of Operations Expenditures 9;

$1,571,122

10.57%

$1,444,735

9.83%

$1,537,226

10.65%

     All Other Operations Items

          % of Operations Expenditures

$719,195

4.83%

$731,493

4.98%

$822,988

5.70%

GRANTS TOTAL

          % of Total Expenditures 9;

$0

0%

$0

0%

$0

0%

! Cost of Property and Equipment

$47,629,945

$45,906,141

$43,943,880

SELECTED ACTIVITY MEASURES

FY 2003

FY 2002

FY 2001

! Average Student Population

292

284

275

! Employee to Student Ratio

0.80/1

0.90/1

0.92/1

! Cost per Year per Student

*

$57,568

$57,908

*The Department of Human Services had not calculated the average cost per student for FY 03 as of the close of audit fieldwork.

AGENCY DIRECTOR(S)

During Audit Period: Ms. Joan Forney, Superintendent

Currently: Ms. Joan Forney, Superintendent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

School personnel could not produce standard inventory reports

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

NEED TO IMPROVE RECORDKEEPING AND CONTROLS OVER COMMODITIES INVENTORY

The School did not maintain accurate records or adequate controls over commodity inventories. At the end of fiscal years 2003 and 2002, the inventory balances were $95,556 and $73,698, respectively. We noted the following:

  • School personnel could not produce reports reflecting accurate quantities of inventory on hand. System-generated reports did not deduct requisitions of goods from the quantities on hand.

  • Personnel could not produce reports listing the quantity, unit cost, and extended value of inventory at June 30 of each fiscal year.
  • The School had no user manual or any other written policies or procedures to assist personnel in properly maintaining and monitoring inventory records.
  • The quantity of all items in the system were adjusted to actual physical counts at June 30 without any identification or investigation of differences between perpetual records and actual counts. (Finding 1, Pages 9-10)

We recommended that employees be properly trained in the use of the inventory system, a system user manual be obtained or written, and standard monthly and annual reports should be generated and reviewed for reasonableness. We also recommended a policy for monthly review of reports should be written and provisions of the inventory system vendor support agreement should be reviewed and enforced.

School officials accepted our recommendation and stated proper controls over the perpetual inventory system would be established and implemented.

 

AUDITORSí OPINION

We conducted a limited scope compliance audit of the School as required by the Illinois State Auditing Act. We also performed certain agreed-upon procedures with respect to the accounting records of the School to assist with the financial audit of the entire Department. Financial statements for the Department will be presented in that report.

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:LKW:pp

 

SPECIAL ASSISTANT AUDITORS

Sulaski & Webb CPAs were our special assistant auditors for this engagement.