REPORT DIGEST

 

GEORGE A. ZELLER MENTAL HEALTH CENTER

 

LIMITED SCOPE COMPLIANCE AUDIT

For the One Year Ended:

June 30, 2002

AND

CLOSE OUT AUDIT

For the One Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                       4

Total last audit                       0

Repeated from last audit        0

 

Release Date:

May 20, 2004

 

 

 

 

 

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 TDD (217) 524-4646

 

 

This Report Digest is also available on

the worldwide web at

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

 

 

SYNOPSIS

  • The Centerís appropriation was used to pay expenditures of other Department organizational units.
  • The Center failed to timely cancel phone service subsequent to facility closure.
  • The Center did not maintain adequate controls over or records of commodity inventories during the close-out period.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

DEPARTMENT OF HUMAN SERVICES

GEORGE A. ZELLER MENTAL HEALTH CENTER

LIMITED SCOPE COMPLIANCE AUDIT

For The One Year Ended June 30, 2002

AND

CLOSE OUT AUDIT

For the One Year Ended June 30, 2003

EXPENDITURE STATISTICS

FY 2003

FY 2002

FY 2001

! Total Expenditures (Center Appropriation Only)

$530,622

$15,764,936

$16,394,903

OPERATIONS TOTAL

% of Total Expenditures

$0

0%

$15,234,302

96.6%

$15,868,976

96.8%

Personal Services

% of Operations Expenditures

Average No. of Employees

Average Employee Salary

$0

0%

194*

$11,113,750

73.0%

236

$47,092

$11,582,695

73.0%

256.5

$45,157

Other Payroll Costs (FICA,

Retirement)

% of Operations Expenditures

$0

0%

$2,311,213

15.1%

$2,379,502

15.0%

Contractual Services

% of Operations Expenditures

$0

0%

$1,368,143

9.0%

$1,477,837

9.3%

All Other Operations Items

% of Operations Expenditures

$0

0%

$441,196

2.9%

$428,942

2.7%

BEHAVIORAL HEALTH SERVICES TOTAL

% of Total Expenditures

$530,622

100%

$530,634

3.4%

$525,927

3.2%

! Cost of Property and Equipment

$18,313,829

$19,361,673

$19,022,733

! Cost of Inventories on Hand

$0

$218,443

$190,142

SELECTED ACTIVITY MEASURES

FY 2003

FY 2002

FY 2001

! Average Number of Residents

21*

67

73

! Ratio of Employees to Residents

9.24/1*

3.55/1

3.52/1

! Cost per Year per Resident

**

$296,200

$278,552

* Information is for the period of normal operations, which ended August 31, 2002.

** The Department of Human Services had not calculated this statistic as of the close of fieldwork.

Note: All FY03 operational and closure costs, other than behavioral health services for the Comprehensive Community Health Service Network of North-Central Illinois, were paid from an appropriation to the Department. Those expenditures will be included in the Departmentís report.

AGENCY HEAD

During Audit Period: Linda Hughes, Hospital Administrator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$56,383 was used to pay expenditures of other Department organizational units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Phone service was not timely cancelled for almost 200 phones

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$53,592 of general stores inventory was adjusted to a zero balance

 

INTRODUCTION

The George A. Zeller Mental Health Center was closed to normal operations on August 30, 2002. However, some administrative operations continued through June 30, 2003, at which time the Center finalized its closure. This was our final audit of the Center.

The Center consisted of ten buildings totaling over 250,000 square feet and was located on 60 acres in Peoria, Illinois. Former Center management stated that CMS and the Governorís Office negotiated a 20 year lease of the Centerís buildings and grounds with Illinois Central College (ICC) for $1 a year. In exchange, ICC agreed to maintain the building and grounds and provide office space and utilities to the Departmentís Comprehensive Community Health Service Network of North-Central Illinois at no charge. The lease became effective December 16, 2002.

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

IMPROPER USE OF APPROPRIATIONS

The George A. Zeller Mental Health Center (Center) appropriation was used to pay expenditures of other Department of Human Services (Department) organizational units in FY02.

We noted that in July 2002, $56,383 was paid from the Centerís appropriation to purchase pharmaceuticals for Department Agency Support Services. Payment of the voucher was approved by Department Agency Support Services personnel. (Finding 1, Page 9)

We recommended that when approving the expenditure of future State appropriated funds, the Department should comply with the language of the appropriation act and limit expenditures to the purpose for which they were appropriated.

The Department agreed with the recommendation and stated that they will strengthen internal controls to ensure that all expenditures comply with the appropriations act.

 

INADEQUATE CONTROLS OVER CANCELLATION OF PHONE SERVICES

Center personnel failed to timely cancel phone service for almost 200 phones subsequent to facility closure.

The Center closed on August 30, 2002; however a review of the December 2002 phone bill included charges totaling $4,689 for 208 telephones, 9 pagers, and 11 mobile phones. Similar charges were incurred during September through November 2002. The fiscal year 2003 telecommunications expenditures totaled $52,764. Subsequent to August 2002, only fourteen employees remained at the former facility. (Finding 2, Page 10)

We recommended that internal controls be developed and implemented to ensure telecommunications services are routinely monitored and timely cancelled during closure of Department facilities.

The Department agreed with the recommendation and stated that they will establish and implement controls to ensure telecommunication services are routinely monitored and cancelled during closure of Department facilities.

FAILURE TO MAINTAIN ADEQUATE INVENTORY RECORDS

The Center did not maintain adequate controls over, or records of, the commodity inventories during the close-out period of Fiscal Year 2002.

The Center failed to record transactions related to commodity inventory transfers and decreasing inventory adjustments during its closure. The Center did not follow standard transfer procedures during the closure, and did not prepare standard documentation that lists items, quantities, and dollar amounts of commodities transferred to other Department centers or written off the Centerís records. The $53,592 balance of items in the general stores inventory was adjusted to a zero balance subsequent to closure.

Former Center personnel stated that most commodities were transferred to other DHS centers, and $5,000 to $10,000 of food, office supplies, and household goods unwanted by other centers were abandoned. (Finding 3, Page 11)

We recommended that normal commodities inventory procedures be complied with during the closure of Department facilities to ensure accountability for State assets.

The Department agreed with the recommendation and stated that they will establish and implement commodities inventory procedures to ensure accountability for State assets during closure of facilities.

OTHER FINDING

The remaining finding is less significant and is reportedly being given attention by the Department.

Ms. Carol Kraus, Chief Fiscal Officer of the Department, provided the responses to our recommendations.

OTHER MATTERS

The Center consisted of ten buildings totaling over 250,000 square feet and was located on 60 acres in Peoria, Illinois. Former Center management stated that CMS and the Governorís Office negotiated a 20 year lease of the Centerís buildings and grounds with Illinois Central College (ICC) for $1 a year. In exchange, ICC agreed to maintain the building and grounds and provide office space and utilities to the Departmentís Comprehensive Community Health Service Network of North-Central Illinois at no charge. The lease became effective December 16, 2002.

AUDITORSí OPINION

We conducted a limited scope compliance audit of the Center as required by the Illinois State Auditing Act. Our audit of the close out period, July 1, 2002 through June 30, 2003, included more limited audit procedures. Financial statements for the Department will be presented in that report.

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:LKW:pp

AUDITORS ASSIGNED

This audit was performed by the staff of the Office of the Auditor General.