REPORT DIGEST

 

ANDREW MCFARLAND MENTAL HEALTH CENTER

 

LIMITED SCOPE

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2005

 

Summary of Findings:

 

Total this report                        2

Total last report                        1

Repeated from last report         0

 

 

Release Date:

June 13, 2006 

 

 

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

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

 

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

¨      The pharmacy hub at the Center did not maintain adequate pharmacy commodity inventory records.

 

¨      The Center did not approve vouchers for payment in a timely manner.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

ANDREW MCFARLAND MENTAL HEALTH CENTER

LIMITED SCOPE COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2005

 

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY 2003

·        Total Expenditures (All Appropriated Funds).................................................

 

$16,404,075

 

$15,638,368

 

$17,024,821

    

     OPERATIONS TOTAL........................

 

$16,392,675

 

$15,626,768

 

$17,013,021

          % of Total Expenditures....................

99.9%

99.9%

99.9%

        

         Personal Services..............................

 

$11,387,575

 

$11,080,811

 

$12,059,875

              % of Operations Expenditures.......

69.5%

70.9%

70.9%

              Average No. of Employees...........

216

221

236

              Average Salary Per Employee.......

$52,720

$50,139

$51,101

        

         Other Payroll Costs (FICA,

            Retirement).....................................

 

 

$2,595,973

 

 

$2,212,002

 

 

$2,619,941

              % of Operations Expenditures.......

15.8%

14.2%

15.4%

 

 

 

 

         Contractual Services.......................... ..

$1,701,106

$1,647,312

$1,730,063

              % of Operations Expenditures.......

10.4%

10.5%

10.2%

 

 

 

         All Other Items..................................

$708,021

$686,643

$603,142

              % of Operations Expenditures.......

4.3%

4.4%

3.5%

 

 

 

 

     GRANTS TOTAL.................................

$11,400

$11,600

$11,800

         % of Total Expenditures....................

0.1%

0.1%

0.1%

 

 

 

 

·        Cost of Property and Equipment.......

$22,158,443

$22,094,685

$21,961,473

·        Cost of Inventories.............................

$390,884

$173,755

$174,860

 

 

 

 

 

SELECTED ACTIVITY MEASURES

(Not examined)

 

FY 2005

 

FY 2004

 

FY 2003

·        Average Number of Residents...............

112

102

104

·        Ratio of Employees to Residents............

1.93/1

2.17/1

2.27/1

·        Cost Per Year Per Resident..................

*

$194,611

$195,140

*The information needed to perform this calculation was not available.

 

HOSPITAL ADMINISTRATOR(S)

      During Period:  Karen    Thurman (7/1/03 – 7/31/03),   Karen Schweighart (8/1/03 – 1/15/04), Scott Viniard (1/16/04 – 6/30/05)

      Currently:          Scott Viniard

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen of 25 (52%) pharmacy items had large discrepancies when the auditors recounted these items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Eleven of 62 (18%) vouchers tested were not approved timely

 

 

INTRODUCTION

 

 

      The Illinois Department of Human Services (DHS) – Andrew McFarland Mental Health Center (Center) is located at 901 Southwind Road, Springfield, Illinois. 

 

 

FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

 

 

INADEQUATE CONTROLS OVER PHARMACY INVENTORY RECORDS

 

      The pharmacy hub at the Center did not maintain adequate pharmacy commodity inventory records.  Responsibility for the pharmacy hub was transferred to the DHS – Central Office during FY05. 

 

During our test counts of the pharmacy inventory, we noted that the Pharmacy did not follow up on the discrepancies noted between the end of year counts and Pharmacy records.  Pharmacy staff stated that Central Office staff conducted pharmacy counts on June 10, 2005 and made adjustments without consulting with either pharmacy staff or management of the Center prior to making adjustments.  The June 30, 2005 adjusted balance per Central Office for the pharmacy inventory totaled $344,276.

 

Thirteen of 25 (52%) items that required large adjustments as a result of the June 10, 2005 inventory count continued to have large discrepancies when the auditors recounted these items on September 19, 2005  (Finding 1, pages 10-11).

 

      We recommended all proposed adjustments be followed up with the necessary pharmacy personnel to verify accuracy prior to adjustments being posted.

 

Center officials agreed with the finding and stated that the Bureau of Pharmacy and Clinical Services (Bureau) staff will conduct another physical inventory.   Bureau personnel will tabulate the counts, compare them to central office records (commodity control system), make the necessary adjustments and enter them into the commodity control system.  After the adjustments have been posted, a pharmacist will review the adjustments for accuracy.

 

 

VOUCHER PROCESSING WEAKNESS

 

The Center did not approve vouchers for payment in a timely manner.  During testing we noted the following:

 

Eleven of 62 (18%) vouchers tested, totaling $81,354, were approved between 5 and 153 days late. (Finding 2, page 12)

 

We recommended that the Center comply with the Illinois Administrative Code procedures and implement controls to ensure vouchers are approved within the required time frame.

 

Center officials agreed with the finding and stated that additional staff was added to the Business Office in March 2005 to ensure that vouchers are processed in a timely manner.  Management will review the Illinois Administrative Code requirements with all appropriate staff.

 

 

Responses to the recommendations were provided by Carol L. Adams, Secretary of the Department of Human Services in a letter dated January 19, 2006.

 

 

 

 

 

AUDITORS’ OPINION

 

      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

 

 

WGH:CML:pp

 

AUDITORS ASSIGNED

 

      The compliance examination was conducted by the Auditor General’s staff.