ALTON MENTAL HEALTH CENTER
LIMITED SCOPE COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2009
Summary of Findings:
Total this audit: 2
Total last audit: 2
Repeated from last audit: 0
Release Date: June 29, 2010
State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL
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• The Center failed to comply with contract requirements.
• The Center did not follow up on accounts receivable over a year old or report them as a collection problem to the Department of Human Services – Central Office.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
NONCOMPLIANCE WITH CONTRACT REQUIREMENTS
The Alton Mental Health Center (Center) failed to comply with contract requirements.
We noted Professional medical services from three different vendors, totaling $22,922, were performed prior to the execution of the required contract documents.
According to Center management the services were not anticipated to exceed $5,000 and were necessary to be performed before a contract could be finalized. (Finding 1, page 9)
We recommended the Center strengthen controls to ensure contract agreements are approved and reduced to writing prior to the beginning of services.
Center officials agreed with our recommendation and stated the Center will monitor medical expenditures by vendor and file written contracts with the State Comptroller’s Office in a timely manner.
INADEQUATE MONITORING OF ACCOUNTS RECEIVABLE
The Alton Mental Health Center (Center) did not follow up on accounts receivable over a year old or report them as a collection problem to the Department of Human Services – Central Office.
We noted accounts receivable, totaling $21,031, were past due more than one year and were not referred to the Central Office for assistance in collection.
According to Center management, they were not reviewing all reports applicable for the entire accounts receivable balance. (Finding 2, page 10)
We recommended the Center comply with existing policies and procedures and review all accounts receivable reports to better notify the Central Office of collection problems.
Center officials agreed with our recommendation and stated that the Center will review account receivable reports monthly to identify accounts with collection problems.
We conducted a limited scope compliance examination of the Center as required by the Illinois State Auditing Act. Financial statements for the entire Department of Human Services will be presented in the Department’s audit report.
WILLIAM G. HOLLAND, Auditor General
SPECIAL ASSISTANT AUDITORS
Our Special Assistant Auditors were J.W. Boyle & Co., LTD.