REPORT
DIGEST LINCOLN COMPLIANCE AUDIT Summary of Findings:
WILLIAM G. HOLLAND Iles Park Plaza |
|
LINCOLN DEVELOPMENTAL CENTER
COMPLIANCE AUDIT
For The Two Years Ended June 30, 1997
EXPENDITURE STATISTICS | FY 1997 |
FY 1996 |
FY 1995 |
|
$27,566,764 |
$26,637,485 |
$24,811,221 |
SELECTED ACTIVITY MEASURES | FY 1997 |
FY 1996 |
FY 1995 |
|
434 |
446 |
444 |
FACILITY DIRECTOR(S)/HOSPITAL ADMINISTRATOR(S) | |
|
The Department was unable to determine a resident's
ability to pay The State cannot obtain Medicaid reimbursement
retroactively The Center temporarily advanced $2,900 in
restricted purpose bequest funds The Center has fully repaid the account |
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS DETERMINING A RESIDENT'S ABILITY TO PAY Despite Departmental efforts, the collection of one resident account, valued over $700,000, seems doubtful. The Department billed one resident at the maximum daily rate since 1980. According to staff, the Department was unable to determine this resident's ability to pay the accumulating debt. Based on the limited financial information gathered, the Department believes the resident's assets may not be large enough to cover this debt. If so, then the resident may have qualified for federal Medicaid reimbursement of the account balance, had the necessary financial papers been filed. Because federal Medicaid coverage was not sought, the State of Illinois cannot obtain Medicaid reimbursement for any portion of the charges retroactively. The State's interests would be best served if the assessment of a resident's financial condition were completed promptly and, if appropriate, Medicaid reimbursement for future charges were sought. (Finding Code 97-1, page 9.) The Department accepted our recommendation. According to the response, correspondence from the Office of the Attorney General indicates it will seek a financial accounting for this resident. The Department further states that the filing for Medicaid coverage is the prerogative of the resident or of the resident's guardian. RESTRICTIONS ON LOCAL FUND USAGE During the audit period, the Center temporarily advanced $2,900 in restricted-purpose bequest funds to cover the cost of employee seminars, accreditation fees, and employee recognition functions. According to the terms of the donor's will, the bequest could be used only for the benefit of the residents. Center management stated they were not aware of the restricted nature of this account. (Finding Code 97-2, page 11.) According to the response, the Center management has obtained a copy of the Last Will and Testament and will spend these funds only as authorized. The Center has fully repaid this account for the expenditures noted in this finding. AUDITOR'S 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 accounting records of the Center to assist our single audit of the entire Department. Financial statements for the Department will be presented in that report. _____________________________________ WGH:JHL:pp SPECIAL ASSISTANT AUDITORS Our special assistant auditors were Cameron, Wright
and Hurst, LLP. |