REPORT DIGEST

 

WARREN G. MURRAY DEVELOPMENTAL CENTER

 

LIMITED SCOPE

COMPLIANCE

ATTESTATION

EXAMINATION

For the Two Years Ended:

June 30, 2007

 

 

Summary of Findings:

Total this examination†††             2

Total last examination††††††††††††††† 5

Repeated from last examination1

 

Release Date:

June 12, 2008

 

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 and full Report is also available on

the worldwide web at

http://www.auditor.Illinois.gov

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

®      The Center failed to exercise adequate controls over commodities inventory.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††


†††††††††††††††††††††††††††††††† WARREN G. MURRAY DEVELOPMENTAL CENTER

††††††††††††††††††††††††††††††††††† LIMITED SCOPE COMPLIANCE EXAMINATION

†††††††††††††††††††††††††††††††††††††††††††††† For The Two Years Ended June 30, 2007

 

EXPENDITURE STATISTICS

FY 2007

FY 2006

FY 2005

      Total Expenditures (All Appropriated Funds)...............

 

$33,102,511

$31,552,341

$31,958,537

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

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

†††††††††††

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

$33,099,611

99.99%

 

$25,062,151

$31,549,441

99.99%

 

$24,257,573

$31,955,637

99.99%

 

$23,468,369

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

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

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

 

75.7%

526

$47,647

76.9%

535

$45,341

73.4%

545

$43,061

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

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

$4,704,496

14.2%

$3,861,813

12.2%

$5,350,011

16.6%

††††††††††† Commodities....................................................................

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

$1,316,765

4.0%

$1,307,470

4.1%

$1,277,091

4.0%

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

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

$1,708,535

5.1%

$1,739,619

5.5%

$1,598,100

5.0%

††††††††† All Other Items

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

$307,664

1.0%

$382,966

1.2%

$262,066

1.0%

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

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

 

$2,900

.01%

$2,900

.01%

$2,900

.01%

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

$49,464,895

$48,970,047

$50,836,248

 

 

 

 

SELECTED ACTIVITY MEASURES†††† (Not Examined)

FY 2007

FY 2006

FY 2005

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

338

342

345

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

1.56/1

1.56/1

1.58/1

      Paid Overtime Hours & Earned Compensatory Hours........

171,321

169,172

127,691

      Value of Paid Overtime Hours & Earned Compensatory Hours........................................................................................

 

$3,983,167

 

$3,791,626

 

$2,770,077

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

*

$130,513

$134,474

* The Department had not calculated this statistic at the close of fieldwork.

 

 

 

 

FACILITY DIRECTOR

††††† During Engagement Period: Mr. James Veach

††††† Currently:Mr. James Veach


 

 


 

 

 

 

Center did not maintain adequate controls over commodities inventory

 

 

 

 

 

 

 

 

 


FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

 

INACCURATE INVENTORY RECORDS

 

†††† The reported value of the Centerís inventory at June 30, 2007 and 2006 was misstated due to inaccurate and untimely record maintenance.

 

†††† As a result of the Centerís inadequate controls over inventory reporting, we were unable to report on the commodities inventory at June 30, 2007 and 2006.

 

†††† During our review of the Centerís inventory records we noted:

        Year-end amounts in the inventory system required significant adjustments.Total count adjustments required at June 30, 2007 and 2006 were 1,125 and 1,020, respectively.

        All 1,020 count adjustments related to June 30, 2006 inventory were not posted by the required year end cutoff, resulting in an overstatement of $4,425 at June 30, 2006.

        443 of 1,125 (39%) count adjustments related to June 30, 2007 inventory were posted using incorrect amounts.The misstatement of the improper amounts could not be determined.

 

The Centerís total inventory as adjusted for known misstatements for the years ended June 30, 2007 and 2006 totaled $492,055 and $531,951, respectively.

 

†††† Center management cited unintentional oversights, lack of staff training and staff shortages as the primary cause of the posting errors and delays.(Finding 1, page 9 and 10.)

This finding was first reported in 1999.

 

††† The Center accepted our recommendation to allocate sufficient and adequately trained staff to ensure accurate and timely inventory maintenance.(For the previous Department response, see Digest footnote #1.)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

†††

AUDITORS' OPINION

 

††††† We conducted a special limited compliance attestation engagement of the Center as required by the Illinois State Auditing Act.The Center is not required to prepare financial statements.The financial statements are prepared on a Department wide basis.


_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:MKL:pp

 

SPECIAL ASSISTANT AUDITORS

 

†† Our Special Assistant Auditors were West & Company, LLC.

 

 

DIGEST FOOTNOTE

 

#1INACCURATE INVENTORY RECORDS-Previous Department Response

 

2005:The Center currently has one property and supply clerk that handles both commodity control and equipment inventory.The Center has implemented a new in-house database for inventory control as of December 6, 2005.