JACKSONVILLE DEVELOPMENTAL CENTER
LIMITED SCOPE COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2009
Summary of Findings:
Total this audit: 7
Total last audit: 3
Repeated from last audit: 0
Release Date: June 29, 2010
State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL
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• The Center did not exercise adequate controls over employee attendance to ensure employees’ work hours and benefit time were properly recorded and documented.
• The Center did not exercise adequate internal controls over payroll vouchers.
• The Center did not have adequate controls to monitor individuals on leaves of absence.
• The Center inappropriately expended trust fund monies and could not provide adequate supporting documentation.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
INADEQUATE CONTROLS OVER EMPLOYEE TIMEKEEPING
The Jacksonville Developmental Center (Center) did not exercise adequate controls over employee attendance to ensure employees’ work hours and benefit time were properly recorded and documented.
During our review of employee timekeeping records we noted the following:
• The Daily Staff Attendance Report, Staff Requests for Time Off, Monthly Attendance Record and the Annual Attendance Record did not correlate for 9 of 25 (36%) employees tested.
• A Staff Request for Time Off form was not completed for 11 of 25 (44%) employees tested when time off was taken.
• Six of 25 (24%) employees tested had Staff Request for Time Off forms that were not signed and/or dated by the employee and supervisor. As a result, we could not determine whether the absences were approved in a timely manner.
• The Center did not maintain the Staff Request for Time Off forms with the Daily Staff Attendance Reports. Staff Request for Time Off forms were kept with the employee’s supervisor. (Finding 1, pages 10-11)
We recommended the Center implement controls to ensure employees’ attendance records are accurate. We further recommended the Center ensure that employees are submitting Staff Request for Time Off forms and the proper approvals are obtained timely.
Officials agreed with our recommendation and stated the Center will retrain supervisors and timekeepers on the Administrative Directives governing employee attendance records and requests for time off. The Center’s payroll clerk will periodically monitor attendance records and staff requests for time off to assure they match.
INADEQUATE CONTROLS OVER PAYROLL VOUCHERS
The Jacksonville Developmental Center (Center) did not exercise adequate internal controls over payroll vouchers.
During our testing, we noted the Center did not have an independent person review and approve payroll vouchers. The payroll clerk enters the approved time into the Central Payroll System which generates the payroll voucher and employee paychecks. A copy of the payroll voucher is sent to the payroll clerk who files it away without any review or approval by Center personnel. (Finding 2, page 12)
We recommended the Center ensure a person independent of the payroll preparation verify payroll expenditures are accurate.
Officials agreed with our recommendation and stated that the Center will ensure a person independent of the payroll preparation verifies the payroll expenditures are accurate by hiring a Business Administrator who will assume this responsibility.
INADEQUATE CONTROLS OVER LEAVES OF ABSENCE
The Jacksonville Developmental Center (Center) did not have adequate controls to monitor individuals on leaves of absence.
During our review of leave of absences, we noted the following:
• Two of 25 (8%) employees tested, the Center did not obtain the employee signatures on the appropriate forms prior to the commencement of the leave of absence or when the employee returned from the leave of absence.
• Eight of 25 (32%) employees tested, the Center did not obtain and approve all required leave of absence forms with the agency head or the employee signatures in a timely manner. The forms were obtained and approved between 7 and 226 days after the commencement of the leave of absence.
• Four of 25 (16%) employees tested, the required personnel were not properly notified when an employee took a leave of absence or when the employee returned from the leave of absence. (Finding 3, pages 13-14)
We recommended the Center strengthen controls to monitor employees on leaves of absence by obtaining all required approval signatures and notifying the required personnel when an employee is taking and returning from a leave of absence.
Officials agreed with our recommendation and stated that the Center will tighten the existing procedures by not allowing staff to take a leave or return from leave without first completing, signing and submitting the appropriate paperwork.
INAPPROPRIATE EXPENDITURES FROM THE OTHER SPECIAL TRUST FUND
The Jacksonville Developmental Center (Center) inappropriately expended trust fund monies out of the Other Special Trust Fund (Fund). In addition, the Center could not provide adequate supporting documentation for disbursements made from the Fund.
During testing of Other Special Trust Fund transactions, we noted the following:
• Five of 25 (20%) disbursements totaling $2,063 were not appropriate. One disbursement totaling $1,000 was made to purchase postage for the Center’s postage meter and $500 was to pay the Center’s UPS delivery account. The remaining $563 in disbursements included purchases for a newspaper subscription for the business office, checks for the Center’s petty cash fund account and staff development materials.
• The Center purchased four gift cards from a vendor totaling $3,022 in fiscal year 2009. The gift cards were used to purchase Christmas gifts for persons served at the Center. After the Christmas gifts were purchased, three of the four gift cards had a total remaining balance of $364. Center personnel could not account for the remaining balances or the location of the gift cards. (Finding 4, pages 15-16)
We recommended the Center comply with the uses and purposes of the Other Special Trust Fund. We further recommended the Center maintain sufficient supporting documentation related to payment of disbursements.
Officials agreed with our recommendation and stated that the Center will retrain staff on the appropriate uses and purposes of the Other Special Trust Fund. In addition, the Center will put additional controls in place to ensure that sufficient supporting documentation regarding disbursement of funds is maintained
The remaining findings are reportedly being given attention by the Center.
We conducted a limited scope compliance examination of the Center as required by the Illinois State Auditing Act. Financial statements for the entire Department of Human Services will be presented in the Department’s audit report.
STATE COMPLIANCE EXAMINATION – ACCOUNTANTS’ REPORT
The auditors qualified their report on State Compliance for findings 09-1 and 09-2. Except for the noncompliance described in these findings, the auditors state the Center complied, in all material respects, with the requirements described in the report.
WILLIAM G. HOLLAND, Auditor General
This examination was performed by the Office of the Auditor General’s staff.