REPORT DIGEST

SHAPIRO DEVELOPMENTAL CENTER

LIMITED SCOPE COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2007

Summary of Findings:

Total this report                   1

Total last report                   2

Repeated from last report    0

Release Date:

June 12, 2008

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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SYNOPSIS

·        The Center prepared and submitted inaccurate quarterly Locally Held Fund Reports (C-17’s) to the Department of Human Services Central office for all eight quarters for the Rehabilitation Trust Fund.

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

EXPENDITURE STATISTICS

FY 2007

FY 2006

FY 2005

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

$67,792,703

$65,532,587

$66,390,750

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

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

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

$67,792,703

100%

$50,920,581

$65,532,587

100%

$49,408,798

66,390,750

100%

$47,972,355

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

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

                Average Salary Per Employee.......

75%

1,164

$43,746

75%

1,193

$41,416

72%

1,203

$39,877

         Other Payroll Costs (FICA, Retirement)..

                % of Operations Expenditures.......

$9,369,046

14%

$7,813,990

12%

$10,748,275

16%

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

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

$2,952,960

4%

$3,001,316

5%

$2,997,445

5%

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

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

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

                % of All Other Items....................

$4,057,434

6%

$492,682

1%

$4,774,410

7%

$534,073

1%

$4,200,690

6%

$471,985

1%

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

$83,452,739

$82,108,430

$80,688,838

SELECTED ACTIVITY MEASURES               (Not Examined)

FY 2007

FY 2006

FY 2005

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

604

619

643

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

1.93/1

1.93/1

1.87/1

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

143,327

149,447

110,661

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

$3,390,154

$3,421,634

$2,388,435

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

*

$145,341

$140,098

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

FACILITY DIRECTOR

     During Engagement Period:  Mr. Ira Collins

     Currently:  Mr. Ira Collins

Receipts, disbursements and cash balance misstated

Center agrees with auditors

INTRODUCTION

      The Illinois Department of Human Services (DHS) - Shapiro Developmental Center (Center) is located at 100 East Jeffrey Street, Kankakee, Illinois.  The Center was established in the late 1800’s as a mental health center but has served individuals with developmental disabilities since May 10, 1974.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE LOCALLY HELD FUND REPORTING

            The Center prepared and submitted inaccurate quarterly Locally Held Fund reports (C-17’s) to the Department of Human Services Central Office for all eight (100%) quarters during the period for the Rehabilitation Trust Fund. 

            In fiscal year 2006, the Center overstated receipts by $149, understated disbursements by $4,469, and understated the cash balance by $49.  In fiscal year 2007, the Center understated receipts by $19,804, overstated disbursements by $16,910 and understated the cash balance by $17.  (Finding 1, pages 10 and 11)

            We recommended the Center strengthen its controls over the reporting of locally held funds maintained by the Center by ensuring all funds are properly reported as required by the Statewide Accounting Management System. 

            Center officials agreed with this finding and stated a newly revised checkbook registry was implemented in the second quarter of FY08 to address the issues noted.

AUDITORS’ OPINION

      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

WGH:JSC:pp

AUDITORS ASSIGNED

      This examination was performed by the Office of the Auditor General’s staff.