INTRODUCTION
The George A. Zeller Mental Health Center was closed to normal operations on August 30, 2002. However, some administrative operations continued through June 30, 2003, at which time the Center finalized its closure. This was our final audit of the Center.
The Center consisted of ten buildings totaling over 250,000 square feet and was located on 60 acres in Peoria, Illinois. Former Center management stated that CMS and the Governor’s Office negotiated a 20 year lease of the Center’s buildings and grounds with Illinois Central College (ICC) for $1 a year. In exchange, ICC agreed to maintain the building and grounds and provide office space and utilities to the Department’s Comprehensive Community Health Service Network of North-Central Illinois at no charge. The lease became effective December 16, 2002.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
IMPROPER USE OF APPROPRIATIONS
The George A. Zeller Mental Health Center (Center) appropriation was used to pay expenditures of other Department of Human Services (Department) organizational units in FY02.
We noted that in July 2002, $56,383 was paid from the Center’s appropriation to purchase pharmaceuticals for Department Agency Support Services. Payment of the voucher was approved by Department Agency Support Services personnel. (Finding 1, Page 9)
We recommended that when approving the expenditure of future State appropriated funds, the Department should comply with the language of the appropriation act and limit expenditures to the purpose for which they were appropriated.
The Department agreed with the recommendation and stated that they will strengthen internal controls to ensure that all expenditures comply with the appropriations act.
INADEQUATE CONTROLS OVER CANCELLATION OF PHONE SERVICES
Center personnel failed to timely cancel phone service for almost 200 phones subsequent to facility closure.
The Center closed on August 30, 2002; however a review of the December 2002 phone bill included charges totaling $4,689 for 208 telephones, 9 pagers, and 11 mobile phones. Similar charges were incurred during September through November 2002. The fiscal year 2003 telecommunications expenditures totaled $52,764. Subsequent to August 2002, only fourteen employees remained at the former facility. (Finding 2, Page 10)
We recommended that internal controls be developed and implemented to ensure telecommunications services are routinely monitored and timely cancelled during closure of Department facilities.
The Department agreed with the recommendation and stated that they will establish and implement controls to ensure telecommunication services are routinely monitored and cancelled during closure of Department facilities.
FAILURE TO MAINTAIN ADEQUATE INVENTORY RECORDS
The Center did not maintain adequate controls over, or records of, the commodity inventories during the close-out period of Fiscal Year 2002.
The Center failed to record transactions related to commodity inventory transfers and decreasing inventory adjustments during its closure. The Center did not follow standard transfer procedures during the closure, and did not prepare standard documentation that lists items, quantities, and dollar amounts of commodities transferred to other Department centers or written off the Center’s records. The $53,592 balance of items in the general stores inventory was adjusted to a zero balance subsequent to closure.
Former Center personnel stated that most commodities were transferred to other DHS centers, and $5,000 to $10,000 of food, office supplies, and household goods unwanted by other centers were abandoned. (Finding 3, Page 11)
We recommended that normal commodities inventory procedures be complied with during the closure of Department facilities to ensure accountability for State assets.
The Department agreed with the recommendation and stated that they will establish and implement commodities inventory procedures to ensure accountability for State assets during closure of facilities.
OTHER FINDING
The remaining finding is less significant and is reportedly being given attention by the Department.
Ms. Carol Kraus, Chief Fiscal Officer of the Department, provided the responses to our recommendations.
OTHER MATTERS
The Center consisted of ten buildings totaling over 250,000 square feet and was located on 60 acres in Peoria, Illinois. Former Center management stated that CMS and the Governor’s Office negotiated a 20 year lease of the Center’s buildings and grounds with Illinois Central College (ICC) for $1 a year. In exchange, ICC agreed to maintain the building and grounds and provide office space and utilities to the Department’s Comprehensive Community Health Service Network of North-Central Illinois at no charge. The lease became effective December 16, 2002.
AUDITORS’ OPINION
We conducted a limited scope compliance audit of the Center as required by the Illinois State Auditing Act. Our audit of the close out period, July 1, 2002 through June 30, 2003, included more limited audit procedures. Financial statements for the Department will be presented in that report.
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WILLIAM G. HOLLAND, Auditor General
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AUDITORS ASSIGNED
This audit was performed by the staff of the Office of the Auditor General.
