ANDREW McFARLAND MENTAL HEALTH CENTER
LIMITED SCOPE COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2009
Summary of Findings:
Total this audit: 2
Total last audit: 3
Repeated from last audit: 1
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 properly complete the notice regarding restricted rights of individuals.
• The Center did not maintain adequate controls over accounts receivable.
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
IMPROPER COMPLETION OF THE NOTICE REGARDING RESTRICTED RIGHTS
The Center did not properly complete the notice regarding restricted rights of individuals (notice). We noted the following:
• Four of 25 (16%) notices reviewed were not completed to indicate whether the notice was delivered in person or mailed.
• Twelve of 25 (48%) notices reviewed were not completed to indicate whether the recipient wished anyone to be notified and, when applicable, who was notified. (Finding 1, pages 9-10)
We recommended the Center ensure notices regarding restricted rights of individuals are properly completed to document and certify the recipients and/or affected parties are aware of the communication restrictions.
Center officials agreed with our recommendation and stated staff will be retrained and reviews will be conducted to ensure compliance.
INADEQUATE CONTROLS OVER ACCOUNTS RECEIVABLE
The Center did not maintain adequate controls over accounts receivable. We noted the following:
• Two of 25 (8%) accounts receivables tested contained errors related to the processing and entering of Medicare Part A claims. One claim was billed to Medicare by both the contractor hired to process billings and the Center. Although the bill was paid by Medicare, the Center’s records still reflected the claim as a receivable due to the double billing and resulted in the accounts receivable balance being overstated by $63,840 at 6/30/09. The other receivable was a claim totaling $41,040 with a notice date of 6/30/08 that was rejected by Medicare due to billing errors, and no action had been taken to correct the errors and resubmit the claim until auditor inquiry.
• Four of 25 (16%) accounts receivables tested totaling $8,839 outstanding for more than 180 days were not submitted to the Department of Human Services Central Office as required. (Finding 2, pages 11-12)
We recommended the Center implement controls to ensure that the status and accuracy of account receivables is checked and overdue accounts are submitted to Central Office timely.
Center officials agreed with our recommendation and stated the billing errors were corrected.
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.
WILLIAM G. HOLLAND, Auditor General
The compliance examination was conducted by the Office of the Auditor General’s staff.