REPORT DIGEST

REPORT DIGEST

ALTON MENTAL
HEALTH CENTER

LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

For the Two Years Ended:

June 30, 2007

Summary of Findings:

Total this audit 2

Total last audit 4

Repeated from last audit 0

Release Date:

June 12, 2008

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 and Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

SYNOPSIS

¨ The Center’s inventory was misstated due to inaccurate and untimely record maintenance.

¨ The Center failed to maintain adequate internal controls.

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

ALTON MENTAL HEALTH CENTER

LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

For The Two Years Ended June 30, 2007

EXPENDITURE STATISTICS

FY 2007

FY 2006

FY 2005

Total Expenditures (All Appropriated Funds)......

$25,346,607

$25,002,488

$26,195,839

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

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

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

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

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

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

$25,343,307

99.99%

$15,174,804

59.88%

261

$58,141

$24,999,188

99.99%

$15,376,469

61.51%

264

$58,244

$26,192,539

99.99%

$15,607,689

59.59%

256

$60,968

Other Payroll Costs (FICA, Retirement)..........

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

$2,847,078

11.23%

$2,473,682

9.90%

$3,527,973

13.47%

Commodities..................................................

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

$385,934

1.52%

$388,666

1.55%

$386,480

1.48%

Contractual Services………………………............
% of Operations Expenditures….....................

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

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

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

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

$1,634,625 6.45%

$5,300,866

20.92%

$3,300

0.01%

$1,614,936 6.46%

$5,145,435

20.58%

$3,300

0.01%

$1,556,029 5.94%

$5,114,368

19.52%

$3,300

0.01%

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

$55,721,802

$54,695,325

$54,577,526

SELECTED ACTIVITY MEASURES (not examined)	FY 2007	FY 2006	FY 2005
Average Number of Residents....................................	124	125	119
Ratio of Employees to Residents................................. Paid Overtime Hours & Earned Compensatory Hours....... Value of Paid Overtime Hours & Earned Compensatory Hours………………………………………………..	2.10/1 46,243 $1,425,491	2.11/1 68,458 $2,075,785	2.15/1 70,848 $2,045,449
Cost Per Year Per Resident........................................	*	$214,700	$236,060

* The Department had not calculated at the close of fieldwork.

FACILITY DIRECTOR

During the Audit Period: Ms. Susan Shobe

Currently: Ms. Susan Shobe

Inventory was misstated

Internal control weaknesses

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INVENTORY MISSTATED DUE TO INACCURATE AND UNTIMELY RECORD MAINTENANCE

The Center’s inventory at June 30, 2007 and June 30, 2006 was misstated due to inaccurate and untimely record maintenance.

We noted inventory count adjustments related to the June 30, 2006 inventory were not posted timely. We also noted inventory understatements and overstatements due to errors in recording inventory transactions.

The Center’s total inventory, after adjustments, for the years ended June 30, 2007 and 2006 totaled $307,270, and $253,689, respectively.

According to Center management, the inventory misstatements were caused by oversights and staff shortages. (Finding 1, page 9.)

We recommended the Center management allocate sufficient staff to ensure accurate and timely perpetual inventory maintenance.

Department officials agreed with our recommendation and stated the Central Stores are now fully staffed.

INTERNAL CONTROL WEAKNESSES

The Center failed to maintain adequate internal controls.

Center policies do not provide for independent reconciliations. Duties in the cash disbursement cycle within the locally held funds are inadequately segregated. Also, 12% of locally held fund transactions tested, totaling $5,932, were not recorded in the general ledger timely. Delays ranged from 1 to 46 days.

Center management stated the failure to maintain adequate controls was due to an oversight. (Finding 2, page 11)

We recommended the Center comply with the Department’s Administrative Directive to ensure timeliness of reporting and safeguarding of cash.

Department officials agreed with our recommendation and stated they will segregate duties within the cash disbursement cycle. The Department also stated staff has been reminded of the need to post source documents in a timely manner.

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:CMD:pp

SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors were West & Company, LLC.