REPORT DIGEST

DEPARTMENT OF REHABILITATION SERVICES
ILLINOIS SCHOOL FOR THE DEAF

FINANCIAL AND COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1996

Summary of Findings:

Release Date:
May 8, 1997

State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046

SYNOPSIS

• Hazardous chemicals were being stored in the School's laundry building.

• Appropriations for the School were used to pay for work performed at another facility.

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

FY 1996

FY 1995

FY 1994

• Total Expenditures (All Appropriated
  Funds)

OPERATIONS TOTAL
% of Total Expenditures

 

Personal Services
% of Operations Expenditures
Average No. of Employees

 

Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

 

Contractual Services
% of Operations Expenditures

 

All Other Operations Items
% of Operations Expenditures

 

GRANTS TOTAL
% of Total Expenditures

• Cost of Property and Equipment

$11,708,825


$11,367,944
97.09%

$8,680,396
76.36%
254

$996,194
8.76%

$1,069,492
9.41%

$621,862
5.47%

$340,881
2.91%

$30,909,806

$11,164,917


$10,874,107
97.40%

$8,178,683
75.21%
246

$951,748
8.75%

$1,182,575
10.88%

$561,101
5.16%

$290,810
2.60%

$28,603,592

$10,233,761


$10,002,319
97.74%

$7,700,056
76.98%
272

$872,884
8.73%

$920,847
9.21%

$508,532
5.08%

$231,442
2.26%

$26,068,527

FY 1996

FY 1995

FY 1994

• Assets - As of June 30
• Liabilities - As of June 30
• Revenues
• Expenditures

$200,377
$82,519
$241,995
$242,230

$160,180
$42,087
$169,154
$157,450

$146,905
$12,938
$185,118
$158,011

FY 1996

FY 1995

FY 1994

• Average Student Population
• Employee/Student Ratio
• Cost Per Student

285
1/1.12
$39,020

295
1/1.20
$36,400

302
1/1.16
$32,654

Currently: Ms. Joan Forney, Superintendent

Hazardous chemicals were being stored in the School's laundry building

The hazardous chemicals were found to be leaking from 55 gallon drums

The School paid for work performed at another facility

Detailed, itemized invoices were not required prior to payment

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

HAZARDOUS CHEMICALS WERE STORED ON THE SCHOOL CAMPUS

During a physical tour of the School, it was noted that a variety of hazardous chemicals were being stored in a locked room in the laundry building. Upon closer inspection, it was determined that a chemical was leaking from several of the 55 gallon drums. Discussion with the School's physical engineer indicated this chemical had been banned from use by the Environmental Protection Agency. (Finding 1, page 9)

We recommended School officials continue to seek bids to clean-up this area and monitor the situation to insure that these chemicals are safely removed.

The Department responded that when the School was made aware of the situation, action to correct the problem was instituted. Department officials stated a contract was in place and the clean-up work was scheduled to begin December 16, 1996 and to be completed within two days.

IMPROPER USE OF SCHOOL APPROPRIATION

The Department of Rehabilitation Services (DORS) entered into a contract on behalf of the Illinois School for the Visually Impaired (ISVI) to identify the location of lead paint at both the Illinois School for the Deaf (School) and ISVI during fiscal year 1995. The entire $80,000 was paid with ISVI appropriations.

A supplemental contract was entered into in fiscal year 1996 by DORS on behalf of the School to perform work necessary to complete the lead paint study. The entire $31,500 was paid with School appropriations. However, it was noted the vendor performed approximately 32% of the services for ISVI and approximately 68% for the School.

In addition, the contract did not require the submission of detailed invoices of the work performed as required by the State Comptroller Act (15 ILCS 405/9) and CUSAS Procedure 17.10.50. Detailed invoices to support the payments would have enabled the School and ISVI to monitor the work performed as the payments were made and allocate the payments between entities as the work progressed. (Finding 3, page 11)

We recommended that funds be obligated only for authorized School expenditures. We also recommended that detailed support be required prior to approving contractual services payments.

The Department responded that neither the contractor nor the administration could estimate the appropriate split of funding between the School and ISVI when the fiscal year 1995 contract was executed. The Department states since the contract was originally presented to the Legislature as an overall plan for both facilities and approved, they do not believe the School appropriation was improperly used. The same situation existed for the fiscal year 1996 contract. However, Department officials stated they now have experience and will attempt to allocate the expenditures appropriately between facilities if they ever enter into another contract of this type.

OTHER FINDINGS

The remaining findings are less significant and are being given appropriate attention by the School. We will review progress toward implementing these recommendations in our next audit. Responses to the recommendations were provided by Mr. Tom Norris, Business Administrator for the School.

AUDITORS' OPINION

Our auditors state the financial statements for the locally held funds of the Illinois Department of Rehabilitation Services - Illinois School for the Deaf are fairly presented.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:BAR:pp

SPECIAL ASSISTANT AUDITORS

Cameron, Wright & Hurst, LLP were our special assistant auditors for this audit.