REPORT DIGEST


DEPARTMENT OF VETERANS' AFFAIRS
ILLINOIS VETERANS' HOME AT QUINCY


FINANCIAL AND COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1996


Summary of Findings:

Total this audit 1
Total last audit 5
Repeated from last audit 0



Release Date:
May 8, 1997





State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046

SYNOPSIS

  • The Home's computer backup and storage procedures could result in permanent loss of critical computer data. The critical data subject to loss includes medical information of Home members, member census information, and member Trust Fund information.
{Expenditures and Activity Measures are summarized on the next page.}

 

STATE OF ILLINOIS
DEPARTMENT OF VETERANS' AFFAIRS
ILLINOIS VETERANS' HOME AT QUINCY
FINANCIAL AND COMPLIANCE AUDIT
For The Two Years Ended June 30, 1996

EXPENDITURE STATISTICS

FY 1996

FY 1995

FY 1994

  • Total Expenditures (All Funds) (1)
OPERATIONS TOTAL
% of Total Expenditures
 
Personal Services
% of Operations Expenditures
Average No. of Employees
 
Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures
 
Contractual Services
% of Operations Expenditures
 
Locally Held Funds
% of Operations Expenditures
 
All Other Operations Items
% of Operations Expenditures
  • Cost of Property and Equipment

$23,286,442

$23,286,442
100%

$15,505,251
66.58%
555

$2,464,227
10.58%

$1,356,477
5.83%

$606,900
2.61%

$3,353,587
14.40%

$33,649,761

$21,896,922

$21,896,922
100%

$14,702,129
67.14%
546

$2,273,168
10.38%

$1,227,704
5.61%

$532,921
2.43%

$3,161,000
14.44%

$32,517,643

$19,351,528

$19,351,528
100%

$13,535,069
69.94%
525

$2,055,919
10.62%

$1,194,462
6.17%

$535,328
2.77%

$2,030,750
10.50%

$28,740,332

SELECTED ACTIVITY MEASURES

FY 1996

FY 1995

Average Number of Members

590

594

Average Number of Employees

555

546

Ratio - Average Number of Employees to Members

1/1.06

1/1.09

Estimated Cost Per Year Per Member(2)

$15,248

$13,974

HOME ADMINISTRATOR
During Audit Period: Richard E. Northern (July 1, 1994 to December 31, 1994)
  Donald Lynn (effective January, 1995)

Currently: Donald Lynn

(1) Includes all funds except the Members' Trust Fund and the Clearing Account.
(2) Refer to pages 22 and 23 of Report for basis of calculation and comments.

 









Critical member data is subject to permanent loss in the event of equipment malfunctions or a computer facility disaster

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

INADEQUATE COMPUTER BACKUP PROCEDURES

The Home's backup and storage procedures could result in the permanent loss of critical data. We noted the following weaknesses:

  • The Home was not storing current copies of computer files off-site.
  • Handwritten logs of database backups were not consistently maintained. We reviewed 4 months of daily backup logs and noted 14 instances when a backup was performed but not documented.
  • The Home did not maintain an organized system for storing permanent data files. The permanent data files are the Home's only record of information purged from the Home's computer.
The above weaknesses could cause loss of critical data if the Home encountered equipment malfunctions or a computer facility disaster. The critical data which was electronically maintained included member medical information, member census information, and member Trust Fund information. (Finding 1, page 6)

The Home agreed with our detailed recommendation to correct the noted weaknesses and responded that new procedures had been implemented. We will review the Home's progress toward implementing our recommendation in our next audit. The response to the recommendation was provided by Wilfred Kaltenbach, Chief Internal Auditor, Department of Veterans' Affairs.

AUDITORS' OPINION

We conducted a compliance audit of the Home as required by the Illinois State Auditing Act. We also performed certain agreed-upon procedures with respect to the records of the Home to assist our single audit of the entire Department of Veterans' Affairs. Financial statements for the Department and federal reporting are included in the audit report of the Department of Veterans' Affairs - Central Office.



____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:GSS:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Gray Hunter Stenn, Certified Public Accountants.