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FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
COMPUTER SYSTEM DEVELOPMENT AND TRAINING WEAKNESSES
The Department has not established a formal computer systems development
methodology, change control procedures, or training procedures.
The Department develops, acquires, implements, maintains, and modifies a variety of
information systems critical for completing its mission. However, there is no formal
methodology to assist in the planning of the information systems development process,
testing and changing computer programs, or training of individuals who use the systems for
critical Department functions.
The Department experienced significant problems with the implementation of their
Community Care Program Information System (CCPIS). The CCPIS system was developed and
implemented without following a formal systems development methodology. This system serves
as a control over approximately $188 million in payments. (Finding 1, pages 14-16)
We recommended the Department develop a formal system development methodology to assist
in planning, developing, testing and implementing new system developments or modifying
existing systems and to assist in developing training and user manuals.
Department officials stated that they would investigate our recommendation to develop a
formal system development life cycle and methodology for use in creating and modifying
information systems.
ESTIMATED PAYMENTS DISBURSED PRIOR TO VALIDATION
The Department disbursed approximately $35 million in estimated payments to
community care provider vendors prior to validation.
During fiscal year 2000 the Department implemented a new Community Care Program
Information System (CCPIS) to process billing and payment information submitted by 219
Community Care Providers (CCP). Unanticipated problems with the new CCPIS caused a
dramatic increase in the number of vendor billings rejected by the system. The rejection
rate increased from .98% in fiscal year 1999 to 6.6% in fiscal year 2000.
Department officials stated that implementing the upgraded CCPIS was a priority because
the old system was not year 2000 compliant. After the system was implemented, however,
Department officials realized that some transactions submitted by vendors did not meet all
of the criteria necessary for acceptance and payment. As a result, these transactions were
not processed.
Department officials then made a decision to make estimated payments to CCP vendors to
assist them in maintaining a stabilized cash flow and to prevent payment delays that might
adversely affect the delivery of services to CCP clients. As a result, estimated payments
totaling $34,987,000 were made to CCP vendors before full certification for services could
be performed in violation of the certification requirements of the State Finance Act (30
ILCS 105/9.05). (Finding 2, pages 17-18)
We recommended the Department comply with the provisions of the State Finance Act and
review and validate the billing data being submitted from the CCP vendors prior to
disbursing payment.
Department officials agreed with our recommendation and stated that it was never its
intent to violate the certification requirements of the State Finance Act. Of the nearly
$35 million in estimated payments made for FY 00 services, less than $5.0 million remains
to be validated as of January 2001 and all estimated payments will be reconciled by June
2001.
FAILURE TO TIMELY SUBMIT COST SUBMISSION REPORTS
The Department failed to timely submit service and administrative cost
submission reports to the Illinois Department of Public Aid for reimbursement for the
Medical Assistance Program (Title XIX).
The service cost reports are normally submitted on a monthly basis. During fiscal year
2000 these reports for reimbursements totaling $48.13 million were submitted ten months
late. Also, administrative cost reports which are normally submitted quarterly were
submitted three to twelve months late and totaled $12.95 million for fiscal year 2000.
Collectively, the service cost reports and administrative cost reports involved
reimbursement claims totaling over $61 million. (Finding 5, page 22)
We recommended that the Department prepare and submit the Title XIX reports in a timely
manner to receive reimbursement.
Department officials concurred with our recommendation and acknowledged that the claims
for reimbursements were not made on a routine schedule due to the problems with the
Community Care Program Information System.
NEED TO IMPROVE TIMELINESS IN FILING YEAR END ACCOUNTING
REPORTS WITH THE STATE COMPTROLLER
The Department failed to file certain generally accepted accounting principle
(GAAP) reports with the State Comptroller on a timely basis. The GAAP reports filed late
were the Grant/Contract Analysis form, the Inter-Agency Grants/Contracts form, and the
Compensated Absence form.
The Statewide Accounting Management System (SAMS) procedure 27.20.63,.67 and .80
requires these GAAP forms to be filed on August 23rd, July 26th and
July 31st respectively. (Finding 9, page 26)
We recommended that the Department develop controls to ensure timely reporting to the
Office of the Comptroller.
Department officials agreed with our recommendation and stated that they are making
changes to their accounting procedures to overcome the difficulties in completing the
Comptroller reports on a timely basis.
OTHER FINDINGS
The remaining findings are less significant and are being given attention by the
Department. We will review the Department’s progress towards the implementation of
our recommendations in our next audit.
Ms. Margo E. Schreiber, Director, provided responses to the findings for the Department
on Aging.
AUDITORS’ OPINION
Our auditors state the financial statements of the non-shared special revenue
funds of the Department on Aging as of June 30, 2000, and for the year then ended, are
fairly stated in all material respects.
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WILLIAM G. HOLLAND, Auditor General
WGH:JAF:pp
SPECIAL ASSISTANT AUDITORS
Our Special Assistant Auditors were De Raimo Hillger & Ripp.
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