ELGIN MENTAL HEALTH CENTER
LIMITED SCOPE COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2009
Summary of Findings:
Total this audit: 1
Total last audit: 4
Repeated from last audit: 1
Release Date: June 29, 2010
State of Illinois, Office of the Auditor General
WILLIAM G. HOLLAND, AUDITOR GENERAL
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Office of the Auditor General, Iles Park Plaza, 740 E. Ash Street, Springfield, IL 62703
(217) 782-6046 or TTY (888) 261-2887
This Report Digest and Full Report are also available on the worldwide web at www.auditor.illinois.gov
• The Center had inadequate controls over identifying a patient’s ability to pay and following up on accounts receivable.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
INADEQUATE CONTROLS OVER ACCOUNTS RECEIVABLE
The Center had inadequate controls over identifying a patient’s ability to pay and following up on accounts receivable.
The Center did not complete the “Notice of Determination” within 60 days of admittance or did not complete it timely.
• Three of 25 (12%) accounts receivable tested totaling $1,350 did not have a “Notice of Determination” on file and 8 of 25 (32%) totaling $199,998 were not completed timely, ranging from 28 to 125 days after the 60-day period from date of admittance.
The Center did not maintain complete patient financial case records to support the initial setup of the patient’s receivable in the billing system.
• Three of 25 (12%) accounts receivable tested did not have financial case record on file. These accounts receivable totaled $65,249. Five of 25 (20%) accounts receivable tested did not have a completed financial case record on file. These totaled $72,214.
The Center did not follow-up on accounts receivable up to 180 days old or report them as a collection problem to Central Office.
• Nine of 25 (36%) accounts receivable tested were outstanding over 180 days old and not reported as problem accounts to DHS Central Office. These accounts receivable totaled $240,244. (Finding 1, pages 9-11) This finding was first reported in 2003.
Department officials agreed with our recommendation that the Center comply with existing policies and procedures to process, bill, and collect amounts owed. Department officials stated that the Center’s Recipient Resource Unit will implement a process to provide documentation on patient files to indicate that the Notice of Determination is completed and mailed within 60 days of admission date. (For the previous agency response, see Digest footnote #1)
We conducted a compliance attestation examination of the Center as required by the Illinois State Auditing Act. We also performed certain auditing procedures with respect to the accounting records of the Center to assist with the financial audit of the entire Department of Human Services. Financial statements for the Department will be presented in that report.
WILLIAM G. HOLLAND, Auditor General
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors were Martin & Shadid, P.C.
#1 INADEQUATE CONTROLS OVER ACCOUNTS RECEIVABLE – PREVIOUS AGENCY RESPONSE
2007: Agreed: The Center will continue to allocate needed resources to the Recipient Resource Unit to process, closeout, bill, and collect all amounts owed. The Center hired a Business Manager and he is now fully trained in the areas of Medicare, Medicaid billing, and collections.