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REPORT DIGEST WARREN G. MURRAY DEVELOPMENTAL CENTER LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION For the Two Years Ended: June 30, 2007 Summary of Findings: Total this examination 2 Total last examination 5 Repeated from last examination 1 Release Date: June 12, 2008
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 TTY (888) 261-2887 This Report Digest and full
Report is also available on the worldwide web at http://www.auditor.Illinois.gov |
SYNOPSIS ¨ The Center failed to exercise adequate controls over commodities inventory.
{Expenditures and Activity Measures
are summarized on the reverse page.} |
WARREN
G. MURRAY DEVELOPMENTAL
CENTER
LIMITED SCOPE COMPLIANCE EXAMINATION
For
The Two Years Ended June 30, 2007
|
EXPENDITURE STATISTICS |
FY 2007 |
FY 2006
|
FY 2005 |
|
·
Total Expenditures (All Appropriated Funds)............... |
$33,102,511 |
$31,552,341 |
$31,958,537 |
|
OPERATIONS TOTAL..................................................... %
of Total Expenditures....................................... Personal Services................................................... |
$33,099,611 99.99% $25,062,151 |
$31,549,441 99.99% $24,257,573 |
$31,955,637 99.99% $23,468,369 |
|
% of Operations Expenditures..................... Average No. of Employees...................... Average
Salary Per Employee................. |
75.7% 526 $47,647 |
76.9% 535 $45,341 |
73.4% 545 $43,061 |
|
Other
Payroll Costs (FICA, Retirement)............. % of Operations Expenditures................ |
$4,704,496 14.2% |
$3,861,813 12.2% |
$5,350,011 16.6% |
|
Commodities.................................................................... % of Operations Expenditures............................. |
$1,316,765 4.0% |
$1,307,470 4.1% |
$1,277,091 4.0% |
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Contractual
Services.............................................. % of Operations Expenditures................ |
$1,708,535 5.1% |
$1,739,619 5.5% |
$1,598,100 5.0% |
|
All Other Items % of Operations Expenditures |
$307,664 1.0% |
$382,966 1.2% |
$262,066 1.0% |
|
GRANTS TOTAL............................................................... %
of Total Expenditures........................................ |
$2,900 .01% |
$2,900 .01% |
$2,900 .01% |
|
·
Cost of Property and Equipment...................................... |
$49,464,895 |
$48,970,047 |
$50,836,248 |
|
|
|
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|
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SELECTED ACTIVITY MEASURES (Not Examined) |
FY 2007 |
FY 2006
|
FY 2005 |
|
·
Average Number of Residents................................................ |
338 |
342 |
345 |
|
·
Ratio of Employees to Residents............................................ |
1.56/1 |
1.56/1 |
1.58/1 |
|
·
Paid Overtime Hours &
Earned Compensatory Hours........ |
171,321 |
169,172 |
127,691 |
|
·
Value of Paid Overtime Hours
& Earned Compensatory Hours........................................................................................ |
$3,983,167 |
$3,791,626 |
$2,770,077 |
|
·
Cost Per Year Per Resident...................................................... |
* |
$130,513 |
$134,474 |
|
* The Department had not calculated this statistic at
the close of fieldwork. |
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FACILITY DIRECTOR |
|
During Engagement Period: Mr. James Veach Currently: Mr. James Veach |
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Center did not maintain adequate controls over commodities inventory
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FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS INACCURATE INVENTORY RECORDS The reported value of the Center’s inventory at June 30,
2007 and 2006 was misstated due to inaccurate and untimely record
maintenance. As a result of the Center’s inadequate controls over
inventory reporting, we were unable to report on the commodities inventory at
June 30, 2007 and 2006. During our review of the Center’s inventory records we
noted: ·
Year-end amounts
in the inventory system required significant adjustments. Total count adjustments required at June
30, 2007 and 2006 were 1,125 and 1,020, respectively. ·
All 1,020 count
adjustments related to June 30, 2006 inventory were not posted by the
required year end cutoff, resulting in an overstatement of $4,425 at June 30,
2006. ·
443 of 1,125
(39%) count adjustments related to June 30, 2007 inventory were posted using
incorrect amounts. The misstatement
of the improper amounts could not be determined. The Center’s total
inventory as adjusted for known misstatements for the years ended June 30,
2007 and 2006 totaled $492,055 and $531,951, respectively. Center management cited unintentional oversights, lack of
staff training and staff shortages as the primary cause of the posting errors
and delays. (Finding 1, page 9 and
10.) This finding was first reported in 1999. The Center accepted our recommendation to allocate sufficient and adequately trained staff to ensure accurate and timely inventory maintenance. (For the previous Department response, see Digest footnote #1.) |
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AUDITORS' OPINION
We conducted a special limited compliance attestation engagement of the Center as required by the Illinois State Auditing Act. The Center is not required to prepare financial statements. The financial statements are prepared on a Department wide basis.
_____________________________________
WILLIAM G. HOLLAND, Auditor General WGH:MKL:pp SPECIAL ASSISTANT AUDITORS
Our Special Assistant Auditors were West & Company, LLC. DIGEST FOOTNOTE #1 INACCURATE INVENTORY RECORDS-Previous Department
Response 2005: The Center currently has one property and
supply clerk that handles both commodity control and equipment
inventory. The Center has implemented
a new in-house database for inventory control as of December 6, 2005. |