REPORT DIGEST

DEPARTMENT OF VETERANS’ AFFAIRS ILLINOIS VETERANS’ HOME AT QUINCY

COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 2000

Summary of Findings:

Total this audit 1
Total last audit 1
Repeated from last audit 0

Release Date:
April 26, 2001

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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 Home did not have adequate controls over commodities inventories.

 

 

 

 

 

 

 

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

 

 

 

 


STATE OF ILLINOIS
DEPARTMENT OF VETERANS' AFFAIRS
ILLINOIS VETERANS' HOME AT QUINCY COMPLIANCE AUDIT
For The Two Years Ended June 30, 2000

EXPENDITURE STATISTICS

FY 2000

FY 1999

FY 1998

Total Expenditures (All Funds) (1)

$27,854,136

$26,915,210

$26,310,108

OPERATIONS TOTAL

% of Total Expenditures

$27,854,136

100%

$26,915,210

100%

$26,310,108

100%

Personal Services
% of Operations Expenditures
Average No. of Employees

$17,615,928
63.24%
581

$17,045,086
63.33%
570

$16,770,619
63.74%
566

Other Payroll Costs (FICA, Retirement)
% of Operations Expenditures

$3,692,412
13.26%

$3,550,903
13.19%

$2,979,058
11.32%

Contractual Services
% of Operations Expenditures

$1,958,465
7.03%

$1,971,851
7.33%

$1,951,946
7.42%

Locally Held Funds
% of Operations Expenditures

$632,064
2.27%

$558,588
2.07%

$745,803
2.84%

All Other Operations Items
% of Operations Expenditures

$3,955,267
14.20%

$3,788,782
14.08%

$3,862,682
14.68%

Cost of Property and Equipment

$38,625,983

$37,672,667

$36,152,321

SELECTED ACTIVITY MEASURES

FY 2000

FY 1999

Average Number of Employees

581

570

Average Number of Members

582

580

Ratio - Average Number of Employees to Members

1/1

1/1.02

Estimated Cost Per Year Per Member

$18,523

$18,975
HOME ADMINISTRATOR
During Audit Period: Ronald Frillman

Currently: Ronald Frillman

  1. Includes all funds except the Residents' Trust Fund and the Clearing Account.
 

 

 

 

 

 

Controls over commodities inventory needs improvement

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE CONTROLS OVER COMMODITIES INVENTORY

The Home did not have adequate control over inventory transactions processing. We noted the following weaknesses:
  • Thirteen of 74 (28%) commodities tested reported very minimal usage during the two year audit period in relation to the quantity on hand. Many of the items were not used during the fiscal year. The recorded value of these 13 inventory items at June 30, 2000 and 1999 was $31,870 and $26,323, respectively.
  • Three of the 50 (6%) inventory transactions tested had unit costs based on contracted price rather than the actual vendors’ invoice amount. The actual total cost of these three items was $19,646 compared to $25,795 entered into the inventory system.
  • Three of the 8 (38%) inventory transactions for items received at the end of June 30, 1999 were recorded in July 2000. Total inventory value of these three transactions was $1,694. (Finding 1, pages 12-14)

We recommended the Home implement controls and procedures that will assist in the identification and monitoring of the proper level of inventory. Coordination between the General Stores and end user department personnel should be improved to communicate inventory requirements. In addition, the Home should implement procedures that will provide accounting personnel access to the correct invoice amount of the covered drug items to facilitate correction of the invoice cost.

Officials at the Home concurred with the recommendation and stated they will implement controls and procedures to correct the weaknesses noted.

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 in our financial and compliance audit of the entire Department of Veterans’ Affairs. Financial statements for the Department are included in the audit report of the Department of Veterans’ Affairs - Central Office.

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WILLIAM G. HOLLAND, Auditor General

WGH:GSR:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were The Bronner Group, Inc.