REPORT
DIGEST

DEPARTMENT OF VETERANS' AFFAIRS
ILLINOIS VETERANS' HOME AT LASALLE

COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1998

Summary of Findings:

Total this audit 1

Total last audit 5

Repeated from last audit 1

Release Date:
April 15, 1999

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

The Home did not properly record and report all property transactions.

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

LASALLE VETERANS' HOME
COMPLIANCE AUDIT
For The Two Years Ended June 30, 1998

EXPENDITURE STATISTICS

FY 1998

FY 1997

FY 1996

Total Expenditures (All Funds)*

OPERATIONS TOTAL
% of Total Expenditures

Personal Services
% of Operations Expenditures
Average No. of Employees

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

Contractual Services
% of Operations Expenditures

Locally Held Funds
% of Operations Expenditures

All Other Operations Items
% of Operations Expenditures

Cost of Property and Equipment

$5,992,458

$5,992,458
100%

$3,828,334
63.88%
114

$683,630
11.41%

$792,120
13.22%

$27,513
0.46%

$660,861
11.03%

$8,698,151

$5,607,018

$5,607,018
100%

$3,673,835
65.52%
118

$597,631
10.66%

$720,376
12.85%

$30,791
0.55%

$584,385
10.42%

$8,397,023

$5,151,585

$5,151,585
100%

$3,325,704
64.55%
111

$533,276
10.35%

$709,259
13.77%

$10,598
0.21%

$572,748
11.12%

$8,040,977

SELECTED ACTIVITY MEASURES	FY 1998	FY 1997
Average Number of Employees Average Number of Members Ratio-Average Number of Employees to Members Estimated Cost Per Year Per Member**	114 118 1/1.035 $23,253	118 112 1/.949 $23,177

HOME ADMINISTRATOR(S)

During Audit Period: Richard A. Cranford
Currently: Richard A. Cranford

* Includes all funds except the Members' Trust Fund and the Clearing Account.

** Refer to pages 26 and 27 of Report for basis of calculation and comments.

Land and building improvements were not recorded on property records

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INACCURATE PROPERTY RECORDS AND REPORTS

The Home did not properly record all property transactions. We noted the following exceptions:

Land and Building Improvements transferred to the Home from Capital Development Board totaling $98,851 were not recorded on the Home's property records.
Numerous purchases were recorded as adjustments or donations.

The Home's reports of fixed asset information were inaccurate due to the above errors.

The Home responded it has implemented procedures to ensure that additions, deletions, and other changes to the property records are being recorded in an accurate and timely manner.

Responses to the recommendations were provided by Donald A. 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 single audit of the entire Department of Veterans' Affairs. Financial statements for the Department and federal reporting are included in the audit report of the Department of Veterans' Affairs - Central Office.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:GSS:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Nykiel, Carlin, Lemna & Co.