Jacksonville Developmental Center

REPORT DIGEST

JACKSONVILLE DEVELOPMENTAL CENTER

COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 1999

Summary of Findings:

Total this audit 1

Total last audit 0

Repeated from last audit 0

Release Date:
April 6, 2000

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 Center had inadequate control over its commodities inventory.

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

JACKSONVILLE DEVELOPMENTAL CENTER

COMPLIANCE AUDIT

For The Two Years Ended June 30, 1999

EXPENDITURE STATISTICS	FY 1999	FY 1998	FY 1997
Total Expenditures (All Appropriated Funds) 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 All Other Items % of Operations Expenditures GRANTS TOTAL % of Total Expenditures Cost of Property and Equipment Cost of Inventories on hand	$23,697,213 $23,697,213 100% $17,446,339 73.6% 505 $34,547 $3,541,000 15.0% $956,526 4.0% $1,753,348 7.4% $0 0% $36,391,486 $378,661	$22,575,810 $22,575,810 100% $16,873,998 74.7% 500 $33,748 $2,918,175 12.9% $990,089 4.4% $1,793,548 8.0% $0 0% $34,204,326 $356,670	$20,944,177 $20,944,177 100% $16,251,823 77.6% 524 $31,015 $1,920,073 9.2% $904,737 4.3% $1,867,544 8.9% $0 0% $33,117,469 $370,668

SELECTED ACTIVITY MEASURES	FY 1999	FY 1998	FY 1997
Average Number of Residents Ratio of Employees to Residents Cost Per Year Per Resident	265 1.91/1 *	269 1.86/1 $102,369	297 1.76/1 $90,005
* The Department of Human Services had not calculated at the close of fieldwork.

FACILITY DIRECTOR(S)/HOSPITAL ADMINISTRATOR(S)

During Audit Period: Michael A. Hurt
Currently: Michael A. Hurt

Improvement needed in the administration of the commodities inventory

INTRODUCTION

The Illinois Department of Human Services (DHS) - Jacksonville Developmental Center (Center) is located at 1201 South Main Street, Jacksonville, Illinois. The Center was established in 1847 as the first mental health facility in the State of Illinois.

FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

INADEQUATE CONTROLS OVER THE COMMODITIES INVENTORY

The Center did not maintain adequate commodities inventory records. We noted the following deficiencies:

The Center did not perform proper year-end inventory procedures. Inventory transactions occurring between the date of the physical inventory and the end of the fiscal year were not recorded within the period they occurred. The transactions were not entered into the Center’s perpetual inventory system until the beginning of the next fiscal year. The result of not entering all store requisitions and receiving reports into the perpetual inventory system resulted in an inventory overstatement of $2,138 during FY98 and an inventory overstatement of $11,045 during FY99.

The Center did not adjust its records for the differences noted during the annual physical inventory in a timely manner. FY98 inventory adjustments were entered into the perpetual inventory system 43 days after the physical inventory of the general store and 49 days after the physical inventory of the mechanical store. FY99 adjustments were entered into the perpetual inventory system 80 days after the physical inventory of the general store and 78 days after the physical inventory of the mechanical store.

During our review of physical inventory adjusting entries, we noted that some adjusting entries were not entered into the perpetual inventory system and some were entered incorrectly. In FY98, 6 adjustments were not entered into the perpetual inventory system and 2 adjusting entries were entered incorrectly. In FY99, 13 adjustments were not entered into the perpetual inventory system and 9 adjusting entries were entered incorrectly. These adjustments not being recorded correctly resulted in inventory overstatements of $335 and $1,389, respectively. (Finding 1, Page 8)

We recommended the Center devote adequate resources to ensure that commodity records are maintained and updated timely. In addition, we recommended the Center apply proper year-end inventory procedures to reflect actual quantities on hand at the end of the fiscal year.

The Center responded that it will increase efforts to ensure the timely and accurate recording of all commodity inventory transactions and will establish procedures to ensure that physical inventories of commodities are conducted properly.

AUDITORS’ OPINION

We conducted a compliance audit of the Center as required by the Illinois State Auditing Act. We also performed certain agreed-upon procedures with respect to the records of the Center to assist our single audit of the entire Department of Human Services. Financial statements for the Department and federal reporting are included in the audit report of the Department of Human Services – Central Office.

______________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:TLD:pp

SPECIAL ASSISTANT AUDITORS

The audit was conducted by the Auditor General’s staff.