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REPORT DIGEST
DEPARTMENT OF VETERANS’
AFFAIRS
COMPLIANCE ATTESTATION EXAMINATION For the Two Years Ended: June 30, 2008 Summary of Findings: Total this examination 3 Total last examination 1 Repeated from last Release Date: June 30, 2009
State of Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the
Report contact: Office of the Auditor
General
(217) 782-6046 or TTY (888)
261-2887 This Report Digest and Full
Report are also available on the worldwide web at http://www.auditor.illinois.gov
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SYNOPSIS¨ The Home failed to perform monthly reconciliations of receipts and expenditures as required. ¨ The Home did not maintain adequate controls over equipment and related records. {Expenditures and Activity Measures are summarized on the next page.}
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DEPARTMENT OF VETERANS’ AFFAIRS
COMPLIANCE ATTESTATION EXAMINATION
For
The Two Years Ended June 30, 2008
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EXPENDITURE STATISTICS |
FY 2008 |
FY 2007 |
FY 2006 |
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Total Expenditures (All Funds)(1).......
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$9,359,221 |
$8,670,965 |
$8,277,676 |
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OPERATIONS TOTAL............................... % of Total Expenditures.......................... |
$9,344,571
99.84% |
$8,658,136
99.85% |
$8,266,676
99.87% |
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Personal Services...................................... % of Operations Expenditures.................. |
$5,842,424
62.52% |
$5,690,795
65.73% |
$5,454,285
65.98% |
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Other Payroll Costs (FICA, Retirement...... % of Operations Expenditures... |
$1,399,122
14.97% |
$1,077,500
12.44% |
$875,004
10.59% |
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Contractual Services................................ % of Operations Expenditures.................. |
$1,247,594
13.35% |
$1,223,627
14.13% |
$1,249,448
15.11% |
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Locally Held Fund..................................... % of Operations Expenditures............. |
$124,137
1.33% |
$95,160
1.10% |
$86,729
1.05% |
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All Other Operations Items........................
% of
Operations Expenditures…………… |
$731,294
$7.83% |
$571,054
6.6% |
$601,210
7.27% |
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NON-APPROPRIATED
FUNDS
Veterans'
Affairs Library Grant Fund (775)..... % of Total Expenditures........................
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$14,650
.16%
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$12,829
.15% |
$11,000
.13% |
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Cost of Property and Equipment.............. |
$25,257,444 |
$11,471,383 |
$11,395,600 |
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SELECTED ACTIVITY
MEASURES (Not Examined) |
FY 2008 |
FY 2007 |
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Average Number of Residents – Skilled Care......................
Average Number of Employees..........................................
Ratio-Average Number of Employees to Residents .............
Annual Cost of Nursing Care Per Resident.......................... |
93
121
1.30 to 1
$88,531 |
97
120
1.24 to 1
$80,077 |
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HOME ADMINISTRATOR(S) |
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During
Period: Norman Gross (effective
6/2/08), Bruce Vaca, Acting (3/4/08-6/1/08), Michael Dechy, Acting
(2/4/08-3/3/08), Cathy Page, Acting (1/7/08-2/3/08), James Arrington (through
12/31/07)
Currently: Norman
Gross |
(1)Includes all funds except the Residents’ Trust Fund.
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Need to perform receipt reconciliations Need to perform
appropriation and expenditure reconciliations Home officials comment on staffing
Inadequate segregation of duties
Home officials comment on staffing |
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS FAILURE TO PERFORM MONTHLY RECONCILIATIONS The Illinois Veterans’ Home at LaSalle (Home) did not perform monthly reconciliations of its receipt and expenditure records to the Comptroller’s records. During our examination, we noted the following: · The Home failed to perform monthly receipt reconciliations to the Comptroller’s Monthly Revenue Status Report during FY08. The Home reported $3,819,246 in receipts in FY08. · The Home failed to perform monthly reconciliations of its appropriations and expenditure records to the Comptroller’s Monthly Appropriation Status Report for 8 of 12 (67%) months during FY08. (Finding 1, page 9) We recommended the Home ensure monthly reconciliations are performed in accordance with SAMS procedures to ensure accurate financial reporting. Home officials agreed they need to
comply with the SAMS manual and perform monthly reconciliations of receipts
and expenditures to ensure accurate financial reporting and stated this is
all made possible with adequate staffing. INADEQUATE CONTROLS OVER EQUIPMENT The Illinois Veterans’ Home at LaSalle
(Home) did not maintain an adequate control over equipment and related
records. We noted the
following:
·
Two of 25 (12%) equipment items tested,
totaling $6,454, could not be located. Documentation later located by the Home
showed one item, totaling $4,999 was transferred to surplus in December 2007
but was not removed from the property records.
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The Home did not maintain an adequate
segregation of duties with respect to property control. The same employee was responsible for the
periodic receiving of items, input of equipment into the inventory records,
entering equipment deletions and transfers, compiling inventory counts, and
equipment reconciliations. In
addition, during FY08 the employee also performed the annual physical
inventory count. (Finding 2, pages
10-11) We
recommended the Home strengthen controls over property and related records
and establish a proper segregation of duties for property control functions. Home officials agreed they need to improve segregation of duties, controls over property, equipment and its reporting. They further stated they will work with Central Office in improving adequate controls over equipment and that this is all made possible with adequate staffing. OTHER FINDING The remaining finding is reportedly being given attention by the Home. We will review the Home's progress toward implementation of our recommendation in our next compliance examination.
AUDITORS' OPINION We conducted a compliance attestation examination of the Home as required by the Illinois State Auditing Act. We have not examined any financial statements of the agency for the purpose of expressing an opinion because the agency does not, nor is it required to, prepare financial statements. _____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:PH:pp ASSIGNED AUDITORS The Auditor General’s staff conducted this examination. |