REPORT DIGEST

KILEY DEVELOPMENTAL CENTER

LIMITED SCOPE

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2005

Summary of Findings:

Total this audit 4

Total last audit 4

Repeated from last audit 2

Release Date:

June 13, 2006

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887)

This Report Digest is also available on

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SYNOPSIS

· Written performance evaluations were not prepared and submitted on an annual basis.

· The Center did not maintain adequate control over cafeteria cash receipts.

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

KILEY DEVELOPMENTAL CENTER

COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2005

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY2003

Total Expenditures (All Appropriated Funds)....

$27,946,760

$25,225,272

$25,735,348

OPERATIONS TOTAL.....................................

% of Total Expenditures...........................

Personal Services......................................

$27,933,260

99.9%

$20,218,062

$25,211,572

99.9%

$18,334,865

$25,721,348

99.9%

$18,568,492

% of Operations Expenditures..............

Average No. of Employees...............

Average Salary Per Employee..........

72.4%

411

$49,192

72.7%

413

$44,394

72.2%

418

$44,422

Other Payroll Costs (FICA, Retirement).....

% of Operations Expenditures..........

$4,639,483

16.6%

$3,642,258

14.5%

$3,964,961

15.4%

Contractual Services..................................

% of Operations Expenditures..........

$1,909,880

6.8%

$2,013,463

8.0%

$2,060,238

8.0%

Commodities.....................................................

% of Operations Expenditures.....................

$964,886

3.5%

$941,454

3.7%

$921,622

3.6%

All Other Items.........................................

% of Operations Expenditures...........

$200,949

0.7%

$279,532

1.1%

$206,035

0.8%

GRANTS TOTAL.............................................

% of Total Expenditures............................

$13,500

0.1%

$13,700

0.1%

$14,000

0.1%

· Cost of Property and Equipment....................

$23,108,557

$21,628,459

$20,925,865

SELECTED ACTIVITY MEASURES (not examined)	FY 2005	FY 2004	FY 2003
· Average Number of Residents.............................	261	267	281
· Ratio of Employees to Residents...........................	1.57/1	1.55/1	1.49/1
· Cost Per Year Per Resident.................................	*	$129,425	$118,084
*Department had not calculated at the close of fieldwork.

	FACILITY DIRECTOR
	During Audit Period: Dr. John Schulien (7/1/03 to 12/31/04) Suzanne McWilliams (1/1/05 to 6/30/05) Currently: Suzanne McWilliams
In 21 of 50 employee files examined (42%) performance evaluations had been completed late or not at all The Center did not maintain adequate controls over cafeteria cash		FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS UNTIMELY PERFORMANCE EVALUATIONS Written performance evaluations were not prepared and submitted on an annual basis. In 21 of 50 employee personnel files examined (42%) performance evaluations had been completed late or not at all. Twelve employees had performance evaluation that were performed between nine and 120 days late and four over 120 days late. Eleven employees were missing performance evaluation for one of the two years in the engagement period. (Finding 1, pages 8-9) We recommended the Center prepare and submit performance evaluations in accordance with DHS directives and the Illinois Administrative Code. The Center agreed with this finding and responded that it had recently filled some of its significant positions that will have impact on having evaluations completed. The facility will also review status of evaluations at its Executive Committee meetings monthly. INADEQUATE CONTROLS OVER CAFETERIA CASH RECEIPTS The Center did not maintain adequate controls over cafeteria cash receipts, which approximate $20,000 a year. The Center operated this cafeteria, which offered a limited supply of snack foods and was partially staffed with residents from the Center, out of the new rehabilitation workshop fund. The cafeteria was not adequately controlled. Actual cash deposits were often higher than the cafeteria daily sales register report and differences could not be reconciled. The Center also did not prepare quarterly profit and loss statements, nor conduct an annual inventory of goods on hand. (Finding 2, page 10) We recommended the Center strengthen controls over cafeteria cash receipts, prepare profit and loss (P&L)

statements, and conduct an inventory. The Center agreed with this finding stating software allowing for the completion of quarterly P&L statements has been purchased. Conducting a quarterly inventory is also part of the program. No sales of items will occur after the cash register is closed each day, which should allow for deposits to match the cafeteria daily sales register report.

OTHER FINDINGS

The other findings related to inadequate inventory controls and approvals for leaves of absence. We will review progress toward implementing all recommendations in our next audit.

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 on this audit were Martin & Shadid, P.C.