REPORT DIGEST

 

WARREN G. MURRAY DEVELOPMENTAL CENTER

 

LIMITED SCOPE

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                       3

Total last audit                       2

Repeated from last audit        1

 

Release Date:

May 20, 2004

 

 

 

 

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 TDD (217) 524-4646

 

 

This Report Digest is also available on

the worldwide web at

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

 

 

SYNOPSIS

  • The Center’s commodities inventory records were not accurately and timely maintained.
  • The Center did not perform annual reviews of real property inventory records to ensure accuracy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

                          WARREN G. MURRAY DEVELOPMENTAL CENTER

 

                                    LIMITED SCOPE COMPLIANCE AUDIT

                                      For The Two Years Ended June 30, 2003

 

EXPENDITURE STATISTICS

FY 2003

FY 2002

FY 2001

! Total Expenditures (All Appropriated Funds) 9;

$29,164,170

$28,247,396

$27,274,757

OPERATIONS TOTAL

% of Total Expenditures

Personal Services

% of Operations Expenditures

Average No. of Employees

Average Salary Per Employee

$29,161,170

99.99%

$21,482,487

73.67%

565

$38,022

$28,244,396

99.99%

$20,783,446

73.59%

554

$37,515

$27,271,757

99.99%

$20,124,205

73.79%

563

$35,745

Other Payroll Costs (FICA, Retirement)

% of Operations Expenditures

$4,534,852

15.55%

$4,339,424

15.36%

$4,164,585

15.27%

Contractual Services

% of Operations Expenditures

$1,613,695

5.53%

$1,608,220

5.69%

$1,498,997

5.49%

All Other Items

% of Operations Expenditures

GRANTS TOTAL

% of Total Expenditures

$1,530,136

5.25%

$3,000.00

0.01%

$1,513,306

5.36%

$3,000.00

0%

$1,486,970

5.45%

$3,000.00

0.01%

  • Cost of Property and Equipment

  • Cost of Inventories on hand

$47,573,327

$504,794

$46,734,807

$449,055

$44,528,892

$401,751

SELECTED ACTIVITY MEASURES

FY 2003

FY 2002

FY 2001

! Average Number of Residents

347

327

319

! Ratio of Employees to Residents

1.63 to 1

1.69 to 1

1.76 to 1

! Cost Per Year Per Resident

*

$123,880

$116,174

* The Department had not calculated this amount as of the end of audit fieldwork.

FACILITY DIRECTOR

During Audit Period: Vickie Niederhofer

Currently: Vickie Niederhofer

 

 

 

 

 

 

 

The Center did not maintain effective accounting controls over commodity inventories

 

 

 

 

 

 

 

 

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INVENTORY

The Center’s commodities inventory records were not accurately maintained.

The Center’s inventory at June 30, 2003 and 2002 was overstated by $114,284 and $20,964, respectively.

During our testing of commodity inventories, we noted the following deficiencies:
  • Adjustments for the actual year end inventory count differences were not posted into the inventory system prior to the closing and printing of the June 30 final reports for both fiscal years. As a result, a report with the adjusted June 30 inventory values was not available.
  • A review of the general and mechanical store requisitions posted subsequent to the June 2002 year end showed 29 of 29 were posted to FY03 and should have gone to FY02.
  • Physical inventory counts could not be verified on 13 of 46 items (28%) selected for testing in the mechanical store where inventory was not maintained in an orderly manner.
  • The June 30, 2003 and 2002 GAAP Reporting Questionnaires reported increases of $33,011 and $19,396 were needed; however, inventory should have been decreased by $114,284 and $20,964.

Center officials stated that early retirement and a lack of training, supervision, and an understanding of the inventory system by new personnel contributed to these problems. (Finding 1, pages 10-11)

Center officials agreed with our recommendation to improve controls over commodity inventories and indicated that corrective action is being implemented.

 

 

 

The Center was not reviewing its real property reports for accuracy

REAL PROPERTY INVENTORY

The Center did not perform annual reviews of real property inventory records to ensure accuracy.

During our testing of real property, we noted that the quarterly real property inventory lists were not being reviewed for accuracy.

Total real property values at June 30, 2003 and 2002 were $44,346,164 and $43,722,573, respectively.

Center officials stated that annual evaluations are being performed only on work-in progress rather than existing items. (Finding 3, page 14)

Center officials agreed with our recommendation to strengthen controls over real property inventory to ensure accurate reporting and indicated procedures to correct the oversight are being implemented.

OTHER FINDING

The remaining finding is less significant and is being given appropriate attention by the Center. We will review progress toward implementing the recommendation during the Center's next audit.

AUDITOR’S OPINION

We conducted a limited scope 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 with the financial audit of the entire Department. Financial statements for the Department will be presented in that report.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:MEC

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were West & Company, LLC.