REPORT DIGEST

 

ILLINOIS CENTER FOR REHABILITATION AND EDUCATION

 

LIMITED SCOPE

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                       4

Total last audit                       4

Repeated from last audit        4

 

Release Date:

May 20, 2004

 

 

 

 

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 TDD (217) 524-4646

 

This Report Digest is also available on

the worldwide web at

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

 

 

 

 

 

 

SYNOPSIS
  • The Center had inadequate controls over unauthorized telephone calls.
  • The Center did not maintain adequate commodities inventory records.

 

 

 

 

                             ILLINOIS DEPARTMENT OF HUMAN SERVICES

                  ILLINOIS CENTER FOR REHABILITATION AND EDUCATION

                                                  COMPLIANCE AUDIT

                                      For The Two Years Ended June 30, 2003

EXPENDITURE STATISTICS

FY 2003

FY 2002

FY 2001

• Total Expenditures (All Appropriate Funds) 9;

 

OPERATIONS TOTAL

          % of Total Expenditures

     Personal Services

          % of Operations Expenditures

Average No. of Employees

Average Salary Per Employee

     Other Payroll Costs (FICA, Retirement)

          % of Operations Expenditures

     Contractual Services

          % of Operations Expenditures

     Commodities

          % of Operations Expenditures

     All Other Items

          % of Operations Expenditures

• Cost of Property and Equipment 9;

$4,826,148

 

$4,826,148

100%

$3,222,189

66.8%

66

$48,821

$660,765

13.7%

$818,703

16.9%

$47,704

1.0%

$76,787

1.6%

$9,487,083

$5,384,103

 

$5,384,103

100%

$3,625,282

67.3%

74

$48,990

$724,108

13.5%

$831,007

15.4%

$82,065

1.5%

$121,641

2.3%

$8,804,487

$5,409,380

 

$5,409,380

100%

$3,653,035

67.5%

95

$38,453

$719,042

13.3%

$846,890

15.7%

$54,801

1.0%

$135,612

2.5%

$5,255,160

SELECTED ACTIVITY MEASURES

FY 2003

FY 2002

FY 2001

Average Number of Students

36

36

49

Ratio of Employees to Students

1.83/1

2.06/1

1.94/1

Cost Per Year Per Student

*

$216,637

$199,617

*(Department had not calculated at the close of

fieldwork)

 

 

 

SUPERINTENDENT

During Audit Period: Marva Campbell-Pruitt (7/1/01-12/17/02)

Majorie Olson (Acting) (12/18/02 –8/31/03)

Currently: Therese Manderino

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There were 293 out-of-state calls of which 130 were confirmed by management to be personal calls

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity cost and quantities were incorrectly recorded

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

INADEQUATE CONTROLS OVER TELECOMMUNICATIONS

The Center had inadequate controls over unauthorized telephone calls:
  • There were 53 instances of directory assistance calls totaling $358;
  • 130 of 293 out of state calls were confirmed by management to be personal calls, totaling $124. Forty eight calls were personal calls to Puerto Rico totaling $140; and
  • 11 unassigned and unmonitored telephone units incurred charges totaling $216. (Finding 1, pages 9-10).

Center officials agreed with our recommendations to comply with applicable policies and procedures for monitoring telecommunication charges, seek reimbursement for personal calls, and strengthen controls over out-of-state and international calls.

The Center’s response stated that they were in the process of recovering some of the costs associated with these calls and that they had disconnected unassigned and unmonitored telephone extensions.

 

INADEQUATE MAINTENANCE OF COMMODITIES INVENTORY SYSTEM

The Center did not maintain adequate commodities inventory records. The following errors were noted during testing of the commodities inventory system:
  • For eight of 15 vouchers tested (53%) the commodity cost was incorrectly recorded in the commodities system. Items on five vouchers were understated by $887 and items on three vouchers were overstated by $1,022.

 

 

 

 

 

 

 

 

 
  • For six of 15 vouchers tested (40%) the quantity of commodities purchased was incorrectly recorded in the commodities system causing errors. Five vouchers were understated by $1,212 and one voucher was overstated by $348.
  • The purchase details in the Inventory Valuation Reports did not agree with the additions reported in the Schedule of Changes in Inventories.

Inadequate controls over commodities may result in waste, loss or unauthorized use of State assets and inaccurate re-order points. (Finding 4, pages 14-5) This finding has been repeated since 1999.

The Center agreed with our recommendations to strengthen controls over the commodities inventory system to ensure that all purchases and requisitions are properly recorded, that periodic physical inventory counts be compared to quantities recorded in the system, and that differences be investigated.

The Center’s response stated that they were in the process of switching the current (Peachtree) inventory system to DHS CIS in order to ensure accurate recording. (See Digest Footnotes for prior Center responses.)

OTHER FINDINGS

The other findings dealt with lack of physical control over property and inadequate personnel development training. We will review progress toward implementing all recommendations in our next audit.

 

 

 

 

 

 

AUDITORS’ OPINION

We conducted a compliance audit of the Center as

Required by the Illinois State Auditing Act. This was a limited scope compliance audit that also included performing certain agreed-upon procedures with respect to the accounting records of the Center to assist our audit of the entire Department. Financial statements for the entire Department of Human Services will be presented in that report.

 

 

___________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KMC:drh

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were The Bronner Group.

 

DIGEST FOOTNOTES

 

INADEQUATE MAINTENANCE OF COMMODITIES INVENTORY Previous Center Responses

2001: "Implemented. Currently, ICRE-Roosevelt maintains a manual record of commodities. The Administrator is working with the Storeroom Clerk and the Information Specialist to identify alternatives, including updating the software for the current automated system. A commodities inventory was completed in December of 2001, and quarterly reconciliations will be completed by the Administrator and staff."

 

1999: "Accepted. Updated software has been installed to facilitate the commodities inventory, including the cost of purchases. Staff are currently being trained to maintain the inventory on a timely basis, and periodic reviews will be instituted to avoid maintaining obsolete items. The Business Administrator will review and analyze all reports to ensure that the inventory is properly maintained and reconciled."