REPORT DIGEST

 

WARREN G. MURRAY DEVELOPMENTAL CENTER

 

LIMITED SCOPE

COMPLIANCE ATTESTATION ENGAGEMENT

For the Two Years Ended:

June 30, 2005

 

Summary of Findings:

 

Total this audit††††††††††††            † 5

Total last audit††††††††††            ††† 3

Repeated from last audit†††††††††† 3

 

Release Date:

June 13, 2006 

 

 

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 TTY (888) 261-2887

 

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

 

 

 

†††††

SYNOPSIS

 

u      The Center's property and equipment and inventory values for the years ended June 30, 2004 and 2005 could not be audited due to inadequate documentation.

 

u      The Center did not perform annual reviews of real property inventory records to ensure accuracy.

 

 

 

 

 

 

†††††

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


WARREN G. MURRAY DEVELOPMENTAL CENTER

LIMITED SCOPE COMPLIANCE ATTESTATION ENGAGEMENT

For The Two Years Ended June 30, 2005

 

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY 2003

      Total Expenditures (All Appropriated Funds)...

$31,958,537

$29,480,647

$29,164,170

††††††††† OPERATIONS TOTAL................................

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

††††††††††††††† Personal Services....................................

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

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

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

 

$31,955,637

99.99%

$23,468,369

73.40%

545

$43,061

$29,477,747

99.99%

$22,064,245

74.9%

569

$38,777

$29,161,170

99.99%

$21,482,487

73.67%

565

$38,022

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

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

$5,350,011

16.7%

$4,397,119

14.9%

$4,534,852

15.55%

††††††††††††††† Contractual Services..............................

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

$1,598,100

5.00%

$1,550,287

5.30%

$1,613,695

5.53%

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

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

 

††††††††† GRANTS TOTAL....................................

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

$1,539,157

4.9%

 

$2,900

0.01%

$1,466,096

4.90%

 

$2,900

0.01%

$1,530,136

5.25%

 

$3,000

0.01%

    Cost of Property and Equipment (not examined)

     Cost of Inventories on hand (not examined)....

$50,836,248

$522,687

$49,188,746

$439,887

$47,571,556

$449,055

 

SELECTED ACTIVITY MEASURES (not examined)

FY 2005

FY 2004

FY 2003

         Average Number of Residents........................

345

350

347

         Ratio of Employees to Residents....................

1.58 to 1

1.63 to 1

1.63 to 1

         Cost Per Year Per Resident............................

*

$126,208

$119,947

* The Department had not calculated this amount as of the end of audit fieldwork.

 

FACILITY DIRECTOR

Director†††††††††††††††††††††††††††††††††††††††††††††† Mr. James Veach

Director (7/1/03-7/15/04)†††††††††††††††††† Ms. Vicki Niederhofer


 

 

 

 



The Center did not maintain effective accounting controls over commodity inventories

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

NEED TO IMPROVE COMMODITYINVENTORY PROCEDURES

 

††††† The Centerís commodities inventory procedures were not performed in a timely manner to ensure the proper accounting and safeguarding of inventory.During our review, we noted the following:

 

®      A complete pharmacy inventory count was last conducted on June 27, 2004.

 

®      A commodities inventory was conducted prior to June 30, 2005; however, records were not maintained in order to roll forward to year-end numbers.

 

®      The June 30, 2004 and 2005 net commodities inventory adjustments were ($99,672) and ($265,410), respectively and they were posted after inventory reports were printed.Furthermore, the price-per unit of coal was misstated, resulting in an understatement of $82,952 for fiscal year 2005.

 

††††† The Centerís Schedule of Changes in Inventory contained approximately $439,887 and $522,687 at June 30, 2004 and 2005, respectively.Due to the inability to support the amounts recorded, these amounts could not be examined.

 

††††† We recommended the Center allocate sufficient and adequate trained staff to maintain a perpetual inventory and a review of the Commodity Control Systems reports be performed on a timely basis. (Finding 1, pages 10-11)This finding was first reported in 1999.

 

††††† Center officials agreed with our finding and recommendation and stated they currently have one property and supply clerk that handles both commodity control and equipment inventory.Further the Center has

 

 

implemented a new in-house database for inventory control as of December 2005.(For the previous response, see Digest Footnote #1)

 

 

 

 

 


The Center did not perform a real property inventory

REAL PROPERTY INVENTORY

 

††††† The Center did not perform a real property inventory count which would reveal obsolete items.

 

††††† During our testing of real property, we noted the real property inventory report contained several items, which appeared to be obsolete, and no items had been removed from inventory for the two years under examination.In addition, a complete real property inventory count was not conducted in order to ensure the accuracy of the contents listed in the report.

††††† The Center reported total real property balances at June 30, 2005 and 2004 of $47,687,932 and $45,999,261, respectfully.Due to the inability to support the amounts recorded, these amounts could not be examined.

 

††††† We recommend the Center strengthen controls over real property inventory and comply with SAMS to ensure accurate reporting of real property information. (Finding 3, page 14)

 

††††† The Center agreed with the recommendation.The Center has assigned real property responsibilities to the Chief Engineer.The real property inventory will be completed in full by June 30, 2006.

 

OTHER FINDINGS

 

††††† The remaining findings are less significant and are reportedly being given appropriate attention by the Center.We will review progress toward implementing the recommendations during the Center's next examination.

 

††† Ms. Carol L. Adams, Ph.D., Secretary, Illinois Department of Human Services provided responses.

 

 

AUDITORíS OPINION

 

††††† We conducted a limited scope compliance attestation engagement 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 will be presented in that report.

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:MKL:pp

 

 

SPECIAL ASSISTANT AUDITORS

 

††††† Our special assistant auditors were West & Company, LLC.

 

DIGEST FOOTNOTES

 

#1- INACCURATE INVENTORY RECORDS-Previous Response

2003: Center officials agreed with our recommendation to improve controls over commodity inventories and indicated that corrective action is being implemented.