REPORT DIGEST

WARREN G. MURRAY DEVELOPMENTAL CENTER

COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 1999

Summary of Findings:

Total this audit 3
Total last audit 0
Repeated from last audit 0

Release Date:
April 6, 2000

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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 did not maintain effective accounting controls over commodity inventories.
  • Many equipment items were unable to be located during the physical inventory of the Center’s equipment at June 30, 1999.

 

 

 

 

 

 

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

 

 

WARREN G. MURRAY 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)

$24,894,379

$24,342,900

$22,778,830
OPERATIONS TOTAL

% of Total Expenditures
Personal Services
% of Operations Expenditures
Average No. of Employees
Average Salary Per Employee

$24,894,379

100%
$18,180,551
73.03%
560
$32,465

$24,342,900

100%
$18,138,658
74.51%
561
$32,332

$22,778,830

100%
$17,809,089
78.18%
571
$31,189
Other Payroll Costs (FICA, Retirement)

% of Operations Expenditures

$3,651,785

14.67%

$3,087,074

12.68%

$2,065,219

9.07%

Contractual Services

% of Operations Expenditures

$1,517,270

6.09%

$1,480,622

6.08%

$1,357,604

5.96%

All Other Items

% of Operations Expenditures

GRANTS TOTAL
% of Total Expenditures

$1,544,773

6.21%

$0.00
0%

$1,636,546

6.73%

$0.00
0%

$1,546,918

6.79%

$0.00
0%
  • Cost of Property and Equipment
  • Cost of Inventories on hand

$40,378,565
$376,541

$40,142,761
$392,942

$38,734,320
$375,639
SELECTED ACTIVITY MEASURES

FY 1999

FY 1998

FY 1997

Average Number of Residents

328

333

345

Ratio of Employees to Residents

1.71 to 1

1.68 to 1

1.66 to 1

Cost Per Year Per Resident

*

$92,604

$88,177
* The Department had not calculated this amount as of the end of audit fieldwork.
FACILITY DIRECTOR(S)/HOSPITAL ADMINISTRATOR(S)

During Audit Period: Donald E. Phelps, Ph.D., Facility Director (through December 31, 1999)
Currently: Vickie Niederhofer, Facility Director
 

 

 

 

 

 

 

 

 

The Center did not maintain effective accounting controls over commodity inventories

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerous equipment items were unable to be located during the physical inventory of property and equipment

 

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INEFFECTIVE ACCOUNTING CONTROLS OVER COMMODITY INVENTORIES

During our testing of commodity inventories, we noted the following deficiencies:
  • Established cutoff procedures have not been followed to ensure the accuracy of year-end inventory balances. As a result, the inventory balance at June 30, 1998 was overstated by $37,011, and the inventory balance at June 30, 1999 was understated by $31,027.
  • An excessive number of year-end inventory adjustments were required at June 30, 1998 and 1999. 160 items required adjustment in FY98, and 283 items out of 556, or 51%, required adjustment in FY99.
  • The Center maintained food inventories in excess of current needs at June 30, 1998. However, the apparent overstocks were eliminated by June 30, 1999.

Center officials stated the inventory clerk was absent near the end of FY98, and deficiencies were the result of replacement staff failing to give sufficient priority to these duties. Furthermore, excess food inventories were attributed to overstocking due to previous delays in getting food deliveries. (Finding 1, pages 8-9)

Center officials agreed with our recommendation to improve controls over commodity inventories and indicated that corrective action has been implemented.

INEFFECTIVE ACCOUNTING CONTROLS OVER STATE PROPERTY

During our testing, we were unable to locate 139 items valued at $63,067 at June 30, 1999. Per Center officials, many of these items were also unable to be located at June 30, 1998. Center officials sent memorandums to physical control locations requesting that they search for the unlocated equipment. As of the end of the audit, Center officials indicated that all but 40 items, with original costs totaling $14,160, had been located.

Center personnel indicated that many of the above items were believed to have been moved or destroyed without the necessary paperwork being completed. (Finding 2, page 10)

Center officials accepted our recommendation that the physical control officers be made aware of the need to report all property movement to the Property Control Clerk and that all equipment that is to be condemned should be reported to the Department of Central Management Services.

OTHER FINDING

The remaining finding is less significant and is being given attention by the Center. We will review progress toward implementation of our recommendation during the Center’s next audit.

Agency responses were provided by Mr. James Donkin, Chief Internal Auditor for the Department of Human Services, in a letter dated November 12, 1999.

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 accounting records of the Center to assist our single audit of the entire Department. Financial statements for the Department are presented in the single audit report.

 

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

Glass and Shuffett, LTD. were our special assistant auditors for this engagement.