REPORT DIGEST

SHAPIRO DEVELOPMENTAL CENTER

LIMITED SCOPE COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2005

Summary of Findings:

Total this report                        2

Total last report                        0

Repeated from last report         0

Release Date:

June 13, 2006 

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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SYNOPSIS

·        The Center did not comply with purchasing requirements.

·        The Center did not maintain adequate controls over pharmacy inventory

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

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY 2003

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

$66,390,750

$64,790,123

$64,896,345

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

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

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

           % of Operations Expenditures

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

$66,390,750

100%

$47,972,355

72.3%

1,203

$64,790,123

100%

$47,837,421

73.8%

1,205

$64,896,345

100%

$47,605,266

73.4%

1,234

          Other Payroll Costs (FICA, Retirement)..............

           % of Operations Expenditures.......................

$10,748,275

16.2%

$9,307,351

14.4%

$9,933,380

15.3%

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

           % of Operations Expenditures.......................

         Commodities............................................................

           % of Operations Expenditures.................................

$4,200,690

6.3%

$2,997,445

4.5%

$4,128,791

6.4%

$2,959,473

4.6%

$3,920,438

6.0%

$3,077,471

            4.7%

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

           % of Operations Expenditures.......................

$471,985

.7%

$557,087

.8%

$359,790

.6%

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

$80,688,838

$79,300,472

$75,547,777

·         Cost of Inventories on hand.................................

$1,108,138

$1,112,722

$1,036,735

SELECTED ACTIVITY MEASURES (not examined)

FY 2005

FY 2004

FY 2003

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

643

659

672

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

1.87 to 1

1.83 to 1

1.84 to 1

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

*

$136,822

$126,093

*  The Department of Human Services had not calculated this statistic by the close of fieldwork.

FACILITY DIRECTOR

     During Examination Period:  Ira Collins

     Currently:  Ira Collins

Center did not follow purchasing requirements for the purchase of a $35,812 van

INTRODUCTION

      The Illinois Department of Human Services (DHS) - Shapiro Developmental Center (Center) is located at 100 East Jeffrey Street, Kankakee, Illinois.  The Center was established in the late 1800’s as a mental health center but has served individuals with developmental disabilities since May 10, 1974.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NONCOMPLIANCE WITH PURCHASING REQUIREMENTS

            The Center did not follow applicable purchasing requirements when it purchased a vehicle with its Other Special Trust Fund, a locally held fund.

            The Center purchased a 2004 Ford/Braun Para-transit shuttle van totaling $35,812 directly from an outside vendor using funds from its Other Special Trust Fund.   The Center did not file purchase requests with the Department of Central Management Services (DCMS) and the Department of Human Services – Central Office (DHS) as required prior to the purchase nor did the Center follow the Illinois Procurement Code when purchasing the vehicle.  (Finding 1, pages 9 and 10)

            We recommended that the Center follow DHS administrative procedures and the Illinois Administrative Code when purchasing vehicles.

            Center officials agreed with this finding and stated the Center is now following DHS requirements and the Illinois Administrative Code for the purchase of vehicles.

INADEQUATE CONTROLS OVER PHARMACY INVENTORY

      The Center did not maintain adequate controls over its pharmacy inventory.   

Test counts for 16 of 25 (64%) pharmacy items did not agree to agency records

      During a physical inventory of the pharmacy inventory, we noted sixteen of 25 (64%) tested pharmacy drug counts did not agree with the Center’s Commodity Control System Commodity Status Report.  (Finding 2, page 11)

      We recommended the Center establish controls over its pharmacy inventories to ensure that all inventory is properly counted.  Further, we recommended the Center comply with Department of Human Services policies and procedures by comparing physical inventory counts to quantities recorded in the commodities system periodically, and that differences be investigated.

      Center officials agreed with this finding and stated that in FY05, pharmacy operations were transferred to Central Office.  The Bureau of Pharmacy and Clinical Services has reviewed and corrected the input error in the Central Office commodity control system that resulted in this finding.  Pharmacy bureau staff will be responsible for reviewing future inventory adjustments for accuracy

            Responses to the recommendations were provided by Carol L. Adams, Secretary of the Department of Human Services in a letter dated January 27, 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:MEC:pp

AUDITORS ASSIGNED

      This examination was performed by the Office of the Auditor General’s staff.