REPORT DIGEST

 

DEPARTMENT OF VETERANS’ AFFAIRS ILLINOIS VETERANS’ HOME AT QUINCY

 

COMPLIANCE ATTESTATION

EXAMINATION

For the Two Years Ended:

June 30, 2008

 

Summary of Findings:

Total this report                     2

Total last report                     1

Repeated from last report      1

 

Release Date:

June 25, 2009

 

 

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.state.il.us/auditor

 

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

¨      The Home had inadequate internal controls over cash receipts.

 

¨      The Home was not in compliance with the State Officials and Employees Ethics Act.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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


STATE OF ILLINOIS

DEPARTMENT OF VETERANS' AFFAIRS

ILLINOIS VETERANS' HOME AT QUINCY

COMPLIANCE ATTESTATION EXAMINATION

For the Two Years Ended June 30, 2008

 

EXPENDITURE STATISTICS

FY 2008

FY 2007

FY 2006

Total Expenditures (All Funds) (1)..................

 

$38,193,570

$34,830,893

$32,123,970

 

OPERATIONS TOTAL......................................

% of Total Expenditures....................................

$37,419,223

97.97%

$34,173,539

98.11%

$31,605,873

98.38%

Personal Services............................................

% of Operations Expenditures.......................

Average No. of Employees...........................

$24,086,110

64.37%

509

$23,223,032

67.96%

518

$21,581,635

68.28%

546

Other Payroll Costs (FICA, Retirement)...........

% of Operations Expenditures.......................

$5,788,724

15.47%

$4,400,190

12.88%

$3,477,009

11.00%

Contractual Services.......................................

% of Operations Expenditures.......................

$2,589,307

6.92%

$2,465,157

7.21%

$2,345,240

7.42%

All Other Operations Items..............................

% of Operations Expenditures.......................

$4,955,082

13.24%

$4,085,160

11.95%

$4,201,989

13.29%

NON-APPROPRIATED FUNDS

Veterans' Affairs Library Grant Fund (775)......

% of Total Expenditures...............................

 

$14,250

.04%

 

$12,694

.04%

 

$15,000

.05%

LOCALLY HELD FUNDS TOTAL (1)..............

% of Total Expenditures...............................

$760,097

1.99%

$644,660

1.85%

$503,097

1.57%

     Cost of Property and Equipment...................

$46,794,139

$46,004,108

$46,669,456

 

SELECTED ACTIVITY MEASURES (not examined)

FY 2008

FY 2007

Average Number of Employees....................................

509

518

Average Number of Residents

Skilled Care.............................................................

Domiciliary Care......................................................

 

414

38

 

433

42

Ratio of Employees to Residents:

Skilled Care.............................................................

Domiciliary Care......................................................

 

1.23/1

13.39/1

 

1.20/1

12.33/1

Average Annual Cost of Care Per Resident

Skilled Care.............................................................

Domiciliary Care......................................................

 

$80,081

$45,859

 

$68,233

$38,785

 

HOME ADMINISTRATOR

    During Engagement Period:    John Wingerter (7/1/06 to 4/15/07),

Bruce Vaca (4/16/07 to present)

     Currently:  Bruce Vaca

(1)   Includes all funds except the Residents' Trust Fund.

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 


Inadequate Internal Controls

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Hours spent each day on official State business not documented

 

 

 

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

NEED TO IMPROVE INTERNAL CONTROLS OVER CASH RECEIPTS

 

The Illinois Veterans’ Home at Quincy (Home) did not maintain adequate internal controls over cash receipts in the Commissary.

During the engagement period, we noted 4 cash receipts from Commissary sales totaling $1,945 for October 15 - October 18, 2006 were stolen. Home officials discovered the theft on October 19, 2006 when an employee went to retrieve the money from the safe and found it missing. Several employees had access to the drawer and safe. It is uncertain how access to the safe was made or who removed the money. An investigation of the missing funds was conducted by the police, but no one was ever charged with a crime regarding this matter. Our review of internal controls revealed inadequate controls over deposits by Home Commissary Fund staff. (Finding 1, page 8)

 

The Fiscal Control and Internal Auditing Act (30 ILCS 10/3001) requires State agencies to establish and maintain a system, or systems, of internal fiscal and administrative controls to provide assurance that funds, property, and other assets and resources are safeguarded against waste, loss, unauthorized use, and misappropriation.

 

We recommend that the Home evaluate their internal control procedures over cash receipts and monitor the changes made to these internal controls.

 

Home officials accepted our finding and recommendation and stated procedures were implemented shortly after the theft occurred to significantly control cash deposits in order to deter theft. As of December 1, 2008, the Business Enterprise Program for the Blind has taken over operations over the Commissary and the Home is no longer involved with Commissary operations.

 

 

NONCOMPLIANCE WITH THE STATE OFFICIALS AND EMPLOYEES ETHICS ACT

 

The Home did not have a timekeeping system that documented hours spent each day on official State business by employee. 

 

      The State Officials and Employees Ethics Act (Act) (5 ILCS 430/5-5(c)) requires each State agency to develop a written policy that includes work time requirements and documentation of time worked.  Additionally, the Act requires State employees to periodically submit timesheets documenting the time spent each day on official State business to the nearest quarter hour. (Finding 2, page 9)

 

We recommended the Home comply with the State Officials and Employees Ethics Act by amending its policies regarding timekeeping requirements and document the time spent on official State business to the nearest quarter hour.

 

Home officials accepted our finding and recommendation and stated that once the State Wide Timekeeping System is implemented by Shared Services, the Home would be able to comply with the State Officials and Employees Ethics Act.

 

 

AUDITORS' OPINION

 

      We conducted a compliance examination of the Illinois Veterans’ Home at Quincy as required by the Illinois State Auditing Act.  We have not audited any financial statements of the Home for the purpose of expressing an opinion because the Home does not, nor is it required to, prepare financial statements.

 

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:JAM:pp

 

 

 

SPECIAL ASSISTANT AUDITORS

     

Our special assistant auditors were Doehring, Winders & Co. LLP.