REPORT DIGEST

ILLINOIS SCHOOL
FOR THE DEAF

COMPLIANCE AUDIT

For the Two Years Ended:

June 30, 2001

Summary of Findings:

Total this audit 2
Total last audit 1
Repeated from last audit 0

 

Release Date:
April 30, 2002

Logo.gif (1870 bytes)

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

 
  • Commodities inventory records were not properly maintained.
  • The School did not properly record and reconcile cash receipts or monitor locally held funds.

 

 

 

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

 

DEPARTMENT OF HUMAN SERVICES
ILLINOIS SCHOOL FOR THE DEAF
COMPLIANCE AUDIT
For The Two Years Ended June 30, 2001

EXPENDITURE STATISTICS

FY 2001

FY 2000

FY 1999
Total Expenditures (All Appropriated Funds)

$14,436,003

$13,792,775

$13,647,629
OPERATIONS TOTAL
% of Total Expenditures

$14,436,003
100%

$13,792,775
100%

$13,647,629
100%
Personal Services
% of Operations Expenditures
Average No. of Employees

$10,494,972
72.70%
254

$10,187,900
73.86%
251

$9,880,803
72.40%
262
Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

$1,580,817
10.95%

$1,506,788
10.92%

$1,397,123
10.24%
Contractual Services
% of Operations Expenditures

$1,537,226
10.65%

$1,361,846
9.88%

$1,219,784
8.94%
All Other Operations Items
% of Operations Expenditures

$822,988
5.70%

$736,241
5.34%

$1,149,919
8.42%
GRANTS TOTAL
% of Total Expenditures

$0
0%

$0
0%

$0
0%

Cost of Property and Equipment

$43,943,880

$41,833,593

$38,476,127
SELECTED ACTIVITY MEASURES

FY 2001

FY 2000

FY 1999

Average Student Population

275

283

303

Employee to Student Ratio

0.92/1

0.89/1

.86/1

Cost per Year per Student

*

$55,111

$47,618

*The Department of Human Services had not calculated the average cost per student for FY 01 as of the close of audit fieldwork.

AGENCY DIRECTOR(S)

During Audit Period: Ms. Joan Forney, Superintendent
Currently: Ms. Joan Forney, Superintendent
 

 

 

 

40% of transactions tested were not recorded in the inventory system

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliations were inadequate

 

 

Locally held funds were not properly monitored

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

NEED TO IMPROVE CONTROLS OVER COMMODITIES INVENTORY

The School did not maintain adequate controls over the commodities inventory. We noted the following:
  • Many transactions tested were not recorded in the inventory system. A total of 70 inventory receipt and usage transactions were tested and 28 (40%) were not entered into the perpetual inventory system.
  • Personnel did not calculate or investigate differences between the annual physical inventory counts and perpetual inventory records.
  • Personnel did not prepare required monthly reports of inventory transactions and ending balances. (Finding 1, Pages 9-10)

We recommended the School properly train and supervise staff to ensure all transactions are timely recorded, discrepancies between physical and perpetual inventory quantities are investigated, and monthly reports are monitored.

School officials accepted our recommendation and stated corrective action has been implemented.

INTERNAL CONTROLS OVER CASH RECEIPTS AND LOCALLY HELD FUNDS NEED TO BE ENHANCED

The School did not maintain proper internal controls over cash receipts and locally held funds. We noted:
  • The School did not maintain a list of federal receipts to ensure all receipts due to the School were received and sent to the Department of Human Services – Central Office (DHS) for deposit.
  • Reconciliations of cash receipts to deposits into the State Treasury were not adequate. We noted School management could not account for $22,466 of receipts submitted to DHS for deposit. These receipts were deposited in another account within DHS; however, School management was not notified by the Central Office.
  • Locally held funds were not properly monitored. In January 2001, officials closed an account with a $2,226 balance. The auditors determined those funds had not been received as of the end of August 2001 and no monitoring or follow up had been conducted. (Finding 2, pages 11-12)

We recommended the School record receipts when received, monitor all investment activities, properly reconcile receipt records and locally held funds, and investigate differences in a timely manner.

School officials accepted our recommendations and stated they will maintain a log of all receipts forwarded to Central Office and attach acknowledgements returned for each receipt. The School also stated locally held fund investments are reconciled on a monthly basis.

AUDITORS’ OPINION

We conducted a compliance audit of the School as required by the Illinois State Auditing Act. We also performed certain agreed-upon procedures with respect to the accounting records of the School 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

J.W. Boyle & Co., LTD. were our special assistant auditors for this engagement.