Department of Human Services. Compliance Examination - Central Office and Department-Wide Financial Audit for the two years eneded June 30, 2009

              REPORT DIGEST
DEPARTMENT OF
HUMAN SERVICES
CENTRAL OFFICE
FINANCIAL AUDIT
For the Year Ended
June 30, 2009
COMPLIANCE
EXAMINATION
For the Two Years Ended
June 30, 2009
Summary of Findings:
Total this report: 39
Total last report: 31
Repeated findings: 20
Release Date:
June 29, 2010
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 the Full Report
are also available on
the worldwide web at
www.auditor.illinois.gov
SYNOPSIS
 The Department’s year-end financial reporting to the Illinois
Office of the Comptroller was not timely and contained
numerous inaccuracies and errors.
 The Department had various internal control weaknesses over
commodities inventories at several locations.
 Two of the Department’s Centers remained decertified as
eligible Medicare or Medicaid service providers.
 The Department failed to update their allowance for
uncollectible accounts receivable in a consistent manner.
 Auditors matched the addresses of child care providers with
the addresses of sex offenders contained in the Illinois Sex
Offender Registry and noted several instances where the
addresses were the same.
 Auditors noted numerous weaknesses in the Department’s
conversion process from grant based payments to fee-for-service
payments to providers of mental health services.
 The Department entered into agreements with the University
of Illinois. The purpose appeared to be to avoid the
requirements to competitively procure those types of services
and hire former Department employees.
 The Department did not follow procedures for safeguarding
and disposal of documents containing confidential and
sensitive information.
 The Department had numerous internal control weaknesses in
the Home Services Program.
 The Department did not follow the Grant Funds Recovery Act
by returning recovered grant funds.
 The Department’s fiscal year 2009 annual financial reporting
forms for its Federal Projects Fund included programs with
unspent grant funds of which the Department had not
determined the final disposition.
 Department transferred monies to the fiscal FY09 Budget
Relief Fund which violated the restricted purpose for which
the funds were designated.
 The Department failed to make annual redeterminations of
eligibility for KidCare (now known as ALL KIDS) in
compliance with statutory requirements.
{Expenditures and Selected Activity Measures are summarized on the next page.}