REPORT DIGEST

ILLINOIS CENTER FOR REHABILITATION AND EDUCATION

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2001

Summary of Findings:

Total this audit 4
Total last audit 3
Repeated from last audit 1

Release Date:
April 30, 2002

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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 Illinois Center for Rehabilitation and Education – Roosevelt did not maintain adequate controls over telecommunications.
  • The Illinois Center for Rehabilitation and Education – Roosevelt did not maintain adequate commodities inventory records.
  • Physical control and record keeping for property needs improvement.

 

 

 

 

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

 

ILLINOIS DEPARTMENT OF HUMAN SERVICES
ILLINOIS CENTER FOR REHABILITATION AND EDUCATION
COMPLIANCE AUDIT
For the Two Years Ended June 30, 2001

EXPENDITURE STATISTICS

FY 2001

FY 2000

FY 1999
Total Expenditures (All Appropriated Funds)

$7,675,293

$7,431,496

$7,046,146
OPERATIONS TOTAL
% of Total Expenditures

$7,357,953
95.87%

$6,864,282
92.37%

$6,596,584
93.62%
Personal Services
% of Operations Expenditures
Average No. of Employees
Average Salary per Employee

$4,831,114
65.66%
122
$39,599

$4,410,427
64.25%
122
$36,151

$4,466,579
67.71%
117
$38,176
Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

$1,124,720
15.29%

$999,294
14.56%

$812,880
12.32%
Contractual Services
% of Operations Expenditures

$1,190,438
16.18%

$1,159,348
16.89%

$1,067,263
16.18%
All Other Operations Items
% of Operations Expenditures

$211,681
2.87%

$295,213
4.30%

$249,862
3.79%
GRANTS TOTAL
% of Total Expenditures

$317,340
4.13%

$567,214
7.63%

$449,562
6.38%
Cost of Property and Equipment

$9,647,087

$9,690,977

$9,531,742
SELECTED ACTIVITY MEASURES

FY 2001

FY 2000

FY 1999
Average Student Population
Roosevelt
Wood


49
58


59
59


57
65
Employee to Student Ratio
Roosevelt
Wood


1.94/1
.47/1


1.61/1
.46/1


1.67/1
.34/1
  • Cost per Year per Student

*

$113,560

$102,136
*The average cost per student for FY 01 had not been calculated at the end of audit fieldwork.
AGENCY DIRECTOR(S)

During Audit Period:
Roosevelt: Ms. Marion May, Superintendent (7/1/99 to 12/17/00)
Wood: Ms. Bettye Odem-Davis, Superintendent (7/1/99 to 7/16/00)

Currently:
Roosevelt: Ms. Marva Campbell-Pruitt, Superintendent
Wood: Mr. Michael Nooner, Superintendent
 

 

 

 

 

Management did not ensure out-of-state calls were timely explained or reimbursed

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodities inventory records were inaccurate

 

 

 

 

 

 

 

 

 

 

 

 

 

Property was not properly recorded and maintained

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

CONTROLS OVER TELECOMMUNICATIONS NOT PROPERLY MAINTAINED

ICRE-Roosevelt did not maintain adequate controls over telecommunications. We noted:
  • Sixty-seven international calls totaling $1,915 were placed from two unassigned and unmonitored phones. Center management requested telephone logs for charges of $96 and $16, which appeared on the October and November bills. However, additional follow-up and corrective action was not taken until January 2001 when charges totaling $578 were identified.
  • Telephone logs for 64 of 110 (58%) out-of-state calls tested were not available for review during audit fieldwork. During the audit period, management did not identify telephone logs which had not been submitted, nor did they follow-up on missing logs.
  • No corrective action was taken for 21 calls totaling $26 identified by supervisors as unauthorized. (Finding 1, pages 10-11)

We recommended that ICRE-Roosevelt comply with policies for monitoring telecommunication charges and seeking reimbursement for personal calls.

Agency management responded that our recommendation has been implemented.

INADEQUATE MAINTENANCE OF COMMODITIES INVENTORY SYSTEM

ICRE-Roosevelt did not maintain adequate commodities inventory records.

We tested 25 vouchers and noted the commodity cost was incorrectly recorded for 24 (96%) vouchers and the quantity of commodities purchased was incorrect for 2 (8%) vouchers. For 1 of 15 requisitions tested (7%), the quantity of commodities used was recorded erroneously.

In addition, staff did not compare physical inventory counts to quantities already recorded in the commodities system. The actual quantity on hand for 16 of 38 inventory items tested (42%) did not agree with the perpetual inventory records.

As a result of these errors, the commodities system was overstated by a net amount of $13,457. (Finding 2, pages 12-13)

We recommended that ICRE-Roosevelt strengthen controls to ensure purchases and requisitions are properly recorded. We also recommended physical inventory counts and commodities system quantities be compared, differences investigated, and staff be properly trained and supervised.

Center management stated that our recommendations have been implemented.

PROPERTY CONTROL WEAKNESSES

ICRE did not have adequate physical control or record keeping for property.

We noted numerous discrepancies during our property testing, including the following:

At ICRE-Roosevelt, 18 of 50 (36%) property items tested totaling $39,576 were listed at the wrong location in the property records. We also noted that 2 of 25 (8%) items observed were not recorded on the property list.

At ICRE-Wood, 29 of 73 (40%) items tested totaling $36,146 were not listed at the correct location on property records. We also noted 10 of 48 (21%) items observed were not listed in the facility’s property records. In addition, 11 of 23 (48%) items found in storage had not been used for two years and were not reported as surplus property. (Finding 3, pages 14-16)

Center management accepted our recommendation that ICRE ensure compliance with the State Property Control Act and DHS policies and procedures for property control.

OTHER FINDING

The remaining finding is less significant and is reportedly being given attention by ICRE. We will review progress toward implementing that recommendation in our next audit. Responses to the recommendations were provided by Mr. Jim Donkin, Chief Internal Auditor for the Department of Human Services.

AUDITORS' OPINION

We conducted a compliance audit of ICRE as required by the Illinois State Auditing Act. We also performed certain agreed-upon procedures with respect to the accounting records of ICRE to assist with the financial audit of the entire Department. Financial statements for the Department will be presented in that report.

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:LKW:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were The Bronner Group.