REPORT DIGEST

WARREN G. MURRAY DEVELOPMENTAL CENTER

COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 2001

Summary of Findings:

Total this audit 2
Total last audit 3
Repeated from last audit 1

 

Release Date:
April 30, 2002

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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 TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

  

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

  • The Center did not maintain effective accounting controls over commodity inventories.
  • The Center failed to deposit and record local fund receipts timely.

 

 

 

 

 

 

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

 

WARREN G. MURRAY DEVELOPMENTAL CENTER
COMPLIANCE AUDIT
For The Two Years Ended June 30, 2001

EXPENDITURE STATISTICS

FY 2001

FY 2000

FY 1999
Total Expenditures (All Appropriated Funds)

$27,274,757

$26,025,099

$24,891,811
OPERATIONS TOTAL
% of Total Expenditures
Personal Services
% of Operations Expenditures
Average No. of Employees
Average Salary Per Employee

$27,274,757
100%
$20,124,205
73.78%
563
$35,745

$26,025,099
100%
$19,120,805
73.47%
567
$33,723

$24,891,811
100%
$18,180,551
73.04%
560
$32,465
Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

$4,164,585
15.27%

$3,882,291
14.92%

$3,651,785
14.67%
Contractual Services
% of Operations Expenditures

$1,498,997
5.50%

$1,475,585
5.67%

$1,517,270
6.09%
All Other Items
% of Operations Expenditures
GRANTS TOTAL
% of Total Expenditures

$1,486,970
5.45%
$0.00
0%

$1,546,418
5.94%
$0.00
0%

$1,544,773
6.20%
$0.00
0%
Cost of Property and Equipment
Cost of Inventories on hand

$44,528,892
$401,751

$43,719,770
$535,922

$40,378,565
$376,541
SELECTED ACTIVITY MEASURES

FY 2001

FY 2000

FY 1999

Average Number of Residents

319

320

322

Ratio of Employees to Residents

1.76 to 1

1.77 to 1

1.74 to 1

Cost Per Year Per Resident

*

$109,385

$100,482
* The Department had not calculated this amount as of the end of audit fieldwork.
FACILITY DIRECTOR(S)/HOSPITAL ADMINISTRATOR(S)

During Audit Period: Donald E. Phelps, Ph.D., Facility Director (through December 31, 1999)
Currently: Vickie Niederhofer, Facility Director
 

 

 

 

 

The Center did not maintain effective accounting controls over commodity inventories

 

 

 

 

 

 

 

 

 

 

 

 

The Center failed to record local fund receipts to the Center’s accounting system in a timely manner, resulting in the untimely deposit of local fund receipts.

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INEFFECTIVE ACCOUNTING CONTROLS OVER COMMODITY INVENTORIES

During our testing of commodity inventories, we noted the following deficiencies:
  • An excessive number of year-end inventory adjustments were required at June 30, 2000 and 2001. For the General Stores, 515 items out of 742 or 69% required adjustment in FY00, and 418 items out of 662 or 63%, required adjustment in FY01. For the Mechanical Stores, 407 items out of 2,061 required adjustment or 20% in FY00, and 402 items out of 2,029 or 20% required adjustment in FY01.
  • The Center failed to review and investigate large discrepancies before making adjustments to inventory at June 30, 2001. A $28,441 adjustment was made to the coal inventory without investigating the cause of why such a large adjustment was required.

Center officials stated that an unfilled staff position, changes in commodity control personnel, and lack of training or experience of new personnel resulted in problems with the completion and entry of store requisitions and receiving reports. (Finding 1, pages 9-10)

Center officials agreed with our recommendation to improve controls over commodity inventories and indicated that corrective action is being implemented.

FAILURE TO DEPOSIT AND RECORD LOCAL FUND RECEIPTS TIMELY

During our testing of receipts and deposits, we noted the following:

  • Resident Trust Fund transactions for resident social security checks were not posted to the accounting system in a timely manner. The average length of time from the day received to the day posted was 8.67 days for FY01 and 8.75 days for FY00.
  • Resident Trust Fund deposits for resident social security checks averaged 11 days for FY01 and 11.92 days for FY00. The batches of social security checks ranged from $95,000 to $112,000 per month.
  • A donation totaling $11,340 was not deposited to the Other Special Trust fund until 11 days after receipt.

Center officials attributed the delay in recording and depositing receipts to the large volume of transactions involved and to multiple staff participating in the receipt process. (Finding 2, page 11)

Center officials accepted our recommendation to comply with prescribed policy and procedures and the Public Funds Deposit Act. The Center has also implemented the direct deposit of Resident social security checks.

AUDITORS’ OPINION

We conducted a compliance audit of the Center as required by the Illinois State Auditing Act. We also performed certain agreed-upon procedures with respect to the accounting records of the Center to assist with the financial audit of the entire Department. Financial statements for the Department of Human Services are presented in the Central Office audit report.

WILLIAM G. HOLLAND, Auditor General

WGH:CML:pp

SPECIAL ASSISTANT AUDITORS

Glass and Shuffett, LTD. were our special assistant auditors for this engagement