REPORT DIGEST

 

CHICAGO READ
MENTAL HEALTH CENTER

COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 1999

Summary of Findings:

Total this audit 1
Total last audit 3
Repeated from last audit 0

Release Date:
April 6, 2000

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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

 
  • The Center had inadequate controls over its pharmacy inventory.

 

 

 

 

 

 

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

 

 

CHICAGO READ MENTAL HEALTH CENTER

COMPLIANCE AUDIT

For The Two Years Ended June 30, 1999
EXPENDITURE STATISTICS

FY 1999

FY 1998

FY 1997

Total Expenditures (All Appropriated Funds)

$34,319,846

$33,264,203

$31,651,319

OPERATIONS TOTAL

% of Total Expenditures
Personal Services

$34,111,946

99.39%
$25,684,544

$33,264,203

100%
$25,735,514

$31,651,319

100%
$25,653,411

% of Operations Expenditures
Average No. of Employees
Average Salary Per Employee

75.3%
521
$49,299

77.4%
553
$46,538

81.0%
578
$44,383

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

$5,203,967
15.2%

$4,432,498
13.3%

$2,992,736
9.5%

Contractual Services
% of Operations Expenditures

$2,113,815
6.2%

$1,987,193
6.0%

$1,867,665
5.9%

Commodities
% of Operations Expenditures

$709,871
2.1%

$698,698
2.1%

$749,859
2.4%

All Other Items
% of Operations Expenditures

$399,749
1.2%

$410,300
1.2%

$387,648
1.2%

GRANTS TOTAL

% of Total Expenditures

$207,900

.61%

$0

0%

$0

0%
Cost of Property and Equipment

$19,035,538

$19,061,608

$17,941,295
SELECTED ACTIVITY MEASURES

FY 1999

FY 1998

FY 1997

Average Number of Residents

180

180

222

Ratio of Employees to Residents

2.89/1

3.07/1

2.60/1

Cost Per Year Per Resident

$233,801

$216,372

$173,689
FACILITY DIRECTOR/HOSPITAL ADMINISTRATOR

During Audit Period: Thomas Simpatico, M.D./James Brunner, M.D.
Currently: Thomas Simpatico, M.D./James Brunner, M.D.
 

 

 

 

 

 

 

 

 

 

Center records did not agree with actual counts for 12 of 20 pharmacy items tested.

 

 

 

 

 

 

 

 

 

INTRODUCTION

We conducted a compliance audit of the Center as required by the Illinois State Auditing Act. We also performed certain agreed upon procedures with respect to the accounting records of the Center to assist our single audit of the entire Department. Financial statements for the Department will be presented in that report.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER PHARMACY INVENTORY

The Center had inadequate controls over pharmacy inventory.

For 12 of 20 pharmacy items sampled, the actual number of inventory units on hand did not agree with pharmacy records. In one instance the difference between the actual count and pharmacy records was 2,832 units with a cost difference of $10,294. Pharmacy staff could not reconcile the differences among the 12 items in the sample.

Center management stated the differences were due to a lack of staffing and lack of attention to established procedures. Department policies require staff to maintain Center records for all commodities on a weekly basis. (Finding 1, page 10)

Center officials agreed with our recommendation to establish adequate controls over pharmacy inventory.

 

 

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WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Berg, DeMarco, Lewis, Sawatski & Co.