REPORT
DIGEST

DEPARTMENT OF VETERANS' AFFAIRS
ILLINOIS VETERANS' HOME - MANTENO

FINANCIAL AND COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1998

Summary of Findings:

Total this audit 1

Total last audit 3

Repeated from last audit 1

Release Date:
April 15, 1999

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 Home did not have adequate controls over fixed assets to insure quarterly reports on fixed assets required to be filed with the Comptroller were accurate and timely.

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

DEPARTMENT OF VETERANS' AFFAIRS - MANTENO VETERANS' HOME
FINANCIAL AND COMPLIANCE AUDIT

For The Two Years Ended June 30, 1998

EXPENDITURE STATISTICS

FY 1998

FY 1997

FY 1996

Total Expenditures (All Funds) (1)

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

Locally Held Funds - Benefit Fund
% of Operations Expenditures

All Other Operations Items
% of Operations Expenditures

Cost of Property and Equipment

$14,945,333

$14,945,333
100%

$9,079,472
60.75%
282

$1,607,322
10.76%

$2,592,096
17.34%

$86,020
0.58%

$1,580,423
10.57%

$33,657,129

$14,129,010

$14,129,010
100%

$8,815,136
62.39%
284

$1,423,970
10.08%

$2,561,098
18.13%

$159,827
1.13%

$1,168,979
8.27%

$32,916,405

$13,386,967

$13,386,967
100%

$8,283,509
61.88%
282

$1,308,393
9.77%

$2,436,413
18.20%

$90,728
0.68%

$1,267,924
9.47%

$31,891,703

SELECTED ACTIVITY MEASURES	FY 1998	FY 1997
Average Number of Members	297	289
Average Number of Employees	282	284
Ratio - Average Number of Employees to Members	1/1.05	1/1.02
Estimated Cost Per Year Per Member	$22,385	$21,293

HOME ADMINISTRATOR(S)

During Audit Period: Lee Godin

Currently: Lee Godin

(1) Includes all funds except the Members' Trust Fund and the Clearing Account.

Six of eight quarterly fixed asset reports were inaccurate

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF CONTROLS OVER FIXED ASSET REPORTING

The Home did not reconcile its property records with accounting records which resulted in six of eight quarterly reports on fixed assets to be inaccurate. Accurate reports are necessary to enable the Department's Central Office to file a proper agency-wide report with the State Comptroller. (Finding 98-1, pages 12 and 13)

The Home agreed with our recommendation and responded it is implementing increased supervision over the property control function.

AUDITORS' OPINION

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

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:GSS:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Duffner & Company, P.C.