REPORT DIGEST

DEPARTMENT OF VETERANS’ AFFAIRS

ILLINOIS VETERANS’ HOME AT ANNA

COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 2000

Summary of Findings:

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

Release Date:
April 26, 2001

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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

 

 

 
  • Cash receipt-processing duties were not adequately segregated.

 

 

 

 

 

 

 

 

 

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

 

 

 

DEPARTMENT OF VETERANS' AFFAIRS - ILLINOIS VETERANS' HOME AT ANNA COMPLIANCE AUDIT
For The Two Years Ended June 30, 2000
EXPENDITURE STATISTICS

FY 2000

FY 1999

FY 1998

Total Expenditures (All Funds) (1)

$2,704,853

$2,393,608

$2,308,765

OPERATIONS TOTAL

% of Total Expenditures

$2,704,853

100%

$2,393,608

100%

$2,308,765

100%

Personal Services
% of Operations Expenditures
Average No. of State Employees

$159,425
5.9%
3

$150.078
6.3%
3

$140,780
6.1%
3

Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

$33,840

1.3%

$31,510

1.3%

$25,088

1.1%

Contractual Services
% of Operations Expenditures

$2,474,180
91.5%

$2,182,996
91.2%

$2,113,033
91.5%

Locally Held Funds - Benefit Fund
% of Operations Expenditures

$18,124
.6%

$15,921
.7%

$6,917
0.3%

All Other Operations Items
% of Operations Expenditures

$19,284
.7%

$13,103
.5%

$22,947
1%

Cost of Property and Equipment

$5,428,078

$5,009,218

$4,886,704
SELECTED ACTIVITY MEASURES

FY 2000

FY 1999

FY 1998
Average Number of Members (unaudited)

56

55

56
Average Number of Full-time Employees (unaudited)

67

66

58
Ratio - Average Number of Employees to Members (unaudited)

1 to .84

1 to .83

1 to .97
Estimated Cost Per Year Per Member

$19,863

$16,428

$14,856
HOME ADMINISTRATOR(S)
During Audit Period: John Lippert, Illinois Veterans' Home at Anna, LP
Currently: John Lippert, Illinois Veterans' Home at Anna, LP
  1. Includes all funds except the Residents’ Trust Fund.
 

 

 

 

 

 

 

Duties over receipts processing need to be segregated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

The Department of Veterans’ Affairs has contracted with a private organization to manage and operate the Anna Home since it opened in 1994.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE SEGREGATION OF DUTIES OVER RECEIPT PROCESSING

The Home did not have an adequate segregation of duties over receipt processing for its locally held clearing account. One individual was responsible for most aspects of receipt processing including the physical receipt of funds, record keeping, and making bank deposits. (Finding 1, page 10)

A person independent of the record keeping and deposit functions should be designated to open the mail, prepare a list of receipts, and reconcile amounts received to amounts deposited.

Anna Home officials concurred with our recommendation to adequately segregate receipt processing duties, and stated additional controls will be implemented.

Responses to the recommendations were provided by Mr. Don Bullerman, Chief Internal Auditor, Department of Veterans’ Affairs.

AUDITORS’ OPINION

We conducted a compliance audit of the Home as required by the Illinois State Auditing Act. We also performed certain agreed-upon procedures with respect to the records of the Home to assist our audit of the Department of Veterans’ Affairs' financial statements. Financial statements for the Department are included in the audit report of the Department of Veterans’ Affairs - Central Office.

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WILLIAM G. HOLLAND, Auditor General

WGH:KAL:pp

AUDITORS ASSIGNED

The audit was conducted by the Auditor General’s staff.