For the Two Years Ended:
June 30, 1998

Release Date:
April 21, 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

• The Center’s inventory records were not timely maintained on a perpetual system.
• The Center’s vouchers were not always approved on a timely basis. Further, some vouchers lacked evidence of approval.

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

FY 1998

FY 1997

FY 1996

• Total Expenditures (All Appropriated Funds)

Personal Services
% of Total Expenditures
Average No. of Employees
Average Salary Per Employee

Resident Compensation
% of Total Expenditures

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

Contractual Services
% of Total Expenditures

All Other Items
% of Total Expenditures

• Cost of Property and Equipment

$14,907,659

$134,958
0.9%

$21,060,658

$14,382,677

$20,813,020

$12,793,295

$20,228,872

FY 1998

FY 1997

FY 1996

623

577

429

1/3.20

1/2.97

1/2.94

$23,874

$24,785

$22,362

600

600

600

33

37

38

Untimely voucher approval and lack of evidence of approvals

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INVENTORY RECORDS

The Center’s inventory records were not timely maintained on a perpetual system.

Based on inquiry of personnel and other work performed in relation to the Automated Inventory Management System (AIMS), it was determined that the Center was over six weeks late in entering receiving and/or requisition reports into AIMS. The June 30, 1998 inventory report was not available until August 4, 1998.

We recommended Center management allocate sufficient and adequately trained staff to timely maintain a perpetual inventory. Further, an additional staff member should be cross-trained with the AIMS procedures to assist and serve as a back-up in times of temporary vacancies. (Finding 98-1, pages 11-12)

Center officials accepted our recommendation and stated that AIMS will be maintained timely and an effective backup resource will be established.

EXPENDITURE CONTROL WEAKNESSES

The Center’s vouchers were not always approved in a timely fashion and some lacked evidence of approval.

The following exceptions were noted during our testing of vouchers:

• Timely processing: Invoice vouchers were not approved within 30 days of receipt of bill and/or purchases in 21 of 127 vouchers tested, an error rate of 17%.
• Approval: Invoices lacked documentation of approval for payment in 2 of 127 vouchers tested, an error rate of 1%.
• Payroll Vouchers: Review and approval of payroll vouchers was not performed in 9 of 27 vouchers tested, an error rate of 33%. (Finding 98-2, pages 13-14)

Center officials accepted our recommendations for improvement and stated the business office has improved its voucher processing in spite of continued high turnover, caused in part by the opening of new institutions. Timely approval and documented review will be a priority.

Mr. Mark Krell, the Department’s Chief Internal Auditor, provided the responses to our recommendations.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:KMM:pp

Our special assistant auditors for this audit were West & Company, L.L.C.