REPORT DIGEST

ALTON

MENTAL HEALTH CENTER

LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

For the Two Years Ended:

June 30, 2005

Summary of Findings:

Total this audit                          4

Total last audit                          0

Repeated from last audit           0

Release Date:

June 13, 2006 

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

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

SYNOPSIS

¨      The Center’s payroll vouchers did not contain evidence the vouchers were reviewed and approved by an independent person.

¨      The Center lacked adequate monitoring and collection of accounts receivable.

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

EXPENDITURE STATISTICS

FY 2005

FY 2004

FY 2003

    Total Expenditures (All Appropriated Funds)..

$26,195,839

$24,582,256

$22,823,854

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

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

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

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

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

                Average Salary Per Employee..........

$26,192,539

99.99%

$15,607,689

59.59%

256

$60,968

$24,578,956

99.99%

$14,574,059

59.29%

262

$55,626

$22,820,454

99.99%

$13,964,958

61.2%

239

$58,430

                Other Payroll Costs (FICA, Retirement)..

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

$3,527,973

13.47%

$2,950,352

12%

$3,128,646

13.7%

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

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

$1,556,029

5.94%

$1,456,048

5.93%

$1,709,533

7.5%

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

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

          GRANTS TOTAL......................................

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

$5,500,848

21%

$3,300

0.01%

$5,598,497

22.78%

$3,300

0.01%

$4,017,317

17.6%

$3,400

0.01%

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

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

$54,577,526

$247,169

$54,181,648

$240,037

$54,104,124

$258,685

SELECTED ACTIVITY MEASURES (not examined)

FY 2005

FY 2004

FY 2003

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

119

111

102

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

2.15/1

2.36/1

2.51/1

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

*

$238,728

$244,165

HOSPITAL ADMINISTRATOR

During the Audit Period:    Ms. Kay Greenwood (7/1/03-12/31/04),

                                            Ms. Susan Shobe  (Effective 1/1/05)

Currently:                           Ms. Susan Shobe

Independent review of payroll vouchers was not conducted

Department disagrees

Auditor Comment

Accounts receivable were not collected timely

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF INDEPENDENT REVIEW OF PAYROLL VOUCHERS

     The Center’s review of payroll vouchers did not contain evidence the vouchers were reviewed and approved by an independent person.

     The Center’s total personal services expenditures were $15,607,689 and $14,574,059 for fiscal years 2005 and 2004, respectively.  Our review of payroll vouchers disclosed 63 of 63 (100%) tested contained no evidence of an independent review.

     According to Center management, the lack of an independent reviewed was due to staffing changes.  (Finding 1, page 9.)

    We recommended the Center establish procedures to ensure an independent person review the payroll vouchers.

    The Department disagreed with our recommendation.  The Department stated payroll vouchers are not approved for payment at the local level.  Payroll is run centrally and approved centrally.

    In our auditor’s comment, we noted an independent person at the Center level should review the payroll vouchers to ensure the accuracy of pertinent payroll information.  The Center has knowledge of the hours worked by each employee; thus, ensuring the expenditures are proper.

INADEQUATE CONTROLS OVER ACCOUNTS RECEIVABLE

    The Center lacked adequate monitoring and collection of accounts receivable.

    The Center’s accounts receivable were $467,102 and $403,150 for fiscal years 2004 and 2005, respectfully.  Accounts receivable for fiscal year 2004 which were outstanding more than one year amounted to $380,717, or 82% of the total.  For fiscal year 2005, the accounts receivable which were outstanding more than one year was $370,372, or 92% of the total.

    Center management stated the lack of collection efforts was due to the lack of personnel.  (Finding 3, page 12)

    We recommended the Center allocate sufficient resources to process, bill and collect amounts owned.

    The Department agreed with our recommendation and stated the Business Office workload will be evaluated to allocate sufficient resources.

OTHER FINDINGS

    The remaining findings are less significant and are reportedly being given appropriate attention by the Center.  We will review progress toward implementing the recommendations during the Center’s next examination.

    Ms. Carol L. Adams, Ph.D., Secretary, Illinois Department of Human Services provided responses.

AUDITORS' OPINION

      We conducted a special limited compliance attestation engagement of the Center as required by the Illinois State Auditing Act.  The Center is not required to prepare financial statements.  The financial statements are prepared on a Department wide basis.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:MKL:pp

SPECIAL ASSISTANT AUDITORS

   Our Special Assistant Auditors were West & Company, LLC.