Guardianship and Advocacy Commission

REPORT DIGEST

GUARDIANSHIP AND ADVOCACY COMMISSION

FINANCIAL AND COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 1999

Summary of Findings:

Total this audit 2
Total last audit 8
Repeated from last audit 1

Release Date:
February 24, 2000

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
Attn: Records Manager
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 Commission’s guardianship service fees were not all deposited timely or calculated correctly.

The Commission was without an internal auditor during Fiscal Year 1998.

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

GUARDIANSHIP AND ADVOCACY COMMISSION

INFORMATION FROM FINANCIAL AND COMPLIANCE AUDIT

For The Period Ended June 30, 1999

EXPENDITURE STATISTICS	FY 1999	FY 1998	FY 1997
Total Expenditures (All Appropriated Funds)	$7,234,039	$6,506,074	$5,999,939
OPERATIONS TOTAL % of Total Expenditures	$7,234,039 100%	$6,506,074 100%	$5,999,939 100%
Personal Services % of Operations Expenditures Average No. of Employees	$5,104,763 70% 125	$4,802,916 74% 119	$4,620,852 77% 127
Other Payroll Costs (FICA, Retirement) % of Operations Expenditures	$1,069,299 15%	$856,523 13%	$756,499 13%
Contractual Services % of Operations Expenditures	$356,244 5%	$199,729 3%	$128,025 2%
Travel % of Operations Expenditures	$173,565 2%	$168,556 3%	$154,289 2%
Telecommunications % of Operations Expenditures	$260,482 4%	$263,795 4%	$220,496 4%
All Other Operations Items % of Operations Expenditures	$269,686 4%	$214,555 3%	$119,778 2%
Ward Trust Fund Activity Additions on Behalf of Wards Less Expenditures and Other Deductions on Behalf of Wards Net Increase (Decrease) in Ward Funds	$4,084,911 3,896,661 $188,250	$4,169,384 4,043,591 $125,793	$3,942,365 4,118,611 $(176,246)
Cost of Property and Equipment (at June 30)	$691,437	$618,307	$783,945
Total Receipts Deposited into State Treasury	$80,907	$120,836	$146,482

SELECTED ACTIVITY MEASURES	FY 1999	FY 1998	FY 1997
Office of State Guardian - No. of Wards at June 30 - Ave. No. of Assigned Cases per Worker - No. of Estates at June 30 - Ave. No. of Estates per Worker	5,666 127 398 36	5,731 128 409 40	5,706 118 425 45
Legal Advocacy Service - No. of Client Cases Handled	7,497	3,320	2,582
Human Rights Authority - No. of Cases Closed	208	160	188

AGENCY DIRECTOR(S)

During Audit Period: Gary E. Miller, Director
Currently: Gary E. Miller, Director

Commission is responsible for 5,666 adult wards

Deposits were late

Fees were miscalculated

Ward not assessed a fee

Fees not assessed timely

No internal audits performed in FY 1998

INTRODUCTION

The Guardianship and Advocacy Commission was established to protect the legal rights of adults (including senior citizens) with mental illness, developmental disabilities, or physical handicaps. The Commission serves as guardian of last resort for adults who are unable to make decisions concerning their own welfare, care or estate. At June 30, 1999, the Commission was responsible for 5,666 adult wards.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

BILLING AND DEPOSIT OF GUARDIANSHIP FEES

The Commission’s procedures for billing and deposit of guardianship service fees were inadequate. Our audit revealed the following deficiencies:

Twenty-six of sixty receipts tested were not timely deposited in the State Treasury. The deposits ranging from $635 to $9,510 were from one to seven working days late.

Six of twenty case files tested in which a fee was assessed were not properly calculated.

One instance was noted where a ward had sufficient liquid assets to be assessed a fee, but the Commission had not petitioned the court for fee approval.

The Commission did not timely assess its fees at the time they were earned and prior to this audit period had not recognized any receivables related to its fees.

The failure to timely deposit, assess and record proper fees results in lost interest income for the State and inaccurate financial reporting. (Finding 1, pages 12-13)

We recommended the Commission centralize the process of assessing fees and alleviate the confusion created by having numerous caseworkers responsible for assessing fees. The ward’s liquid assets could also be monitored centrally to determine if a petition for fees is warranted. We also recommended the Commission timely deposit its receipts and properly record receivables on its financial statements.

Commission officials concurred with this finding and stated they have taken steps to address all points made in it.

INTERNAL AUDIT POSITION VACANT

The Commission did not have an internal auditor during Fiscal Year 1998 and as a result internal audits were not performed of all major internal accounting and administrative control systems within our two-year audit period. In addition, the Commission did not have a two-year internal audit plan covering Fiscal Year 1998 and submitted its 1998 internal control certification late with the Auditor General. The Fiscal Control and Internal Auditing Act contains the requirements for State internal auditing programs. (Finding 2, pages 14-15)

We recommended the Commission maintain a full-time position of internal auditing as required by State law.

Commission officials concurred with our recommendation. They stated the incumbent internal auditor is aware of all of the provisions of the Fiscal Control and Internal Auditing Act and will perform his duties in accordance with it.

OTHER FINDINGS

There were no other findings presented in the report. We will review progress toward the implementation of our recommendations in our next audit.

Mr. Gary E. Miller, Director, provided the Commission’s responses.

AUDITORS’ OPINION

Our auditors stated the financial statements of the Wards’ Trust Fund at June 30, 1999 and 1998 are fairly presented on the cash basis of accounting.

Also, our auditors stated the financial statements of the Guardianship and Advocacy Fund are fairly presented as of June 30, 1999 and 1998.

____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Nykiel, Carlin, Lemna & Co. were our special assistant auditors for this audit.