08 FINANCIAL AUDIT REPORT

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• Publié par: Sior
• Nombre de lectures: 50
• Langue: English

Extrait

STATE OF ILLINOIS
DEPARTMENT OF HUMAN SERVICES

FINANCIAL AUDIT

For the Year Ended June 30, 2008

Performed as Special Assistant Auditors for the
Auditor General, State of Illinois

STATE OF ILLINOIS
DEPARTMENT OF HUMAN SERVICES

FINANCIAL AUDIT

For the Year Ended June 30, 2008


TABLE OF CONTENTS

Page

AGENCY OFFICIALS ................................................................................................. 1

FINANCIAL STATEMENT REPORT

Summary ................................................................................................................. 3

Independent Auditors’ Report ................................................................................. 5

Basic Financial Statements

Statement of Net Assets and Governmental Funds Balance Sheet ...................... 7

Reconciliation of Governmental Funds Balance Sheet to
Statement of Net Assets .................................................................................... 8

Statement of Activities and Governmental Revenues, Expenditures, and
Changes in Fund Balances ................................................................................ 9

Reconciliation of Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds to Statement
of Activities ....................................................................................................... 10

Statement of Fiduciary Net Assets ....................................................................... 11

Statement of Changes in Fiduciary Net Assets .................................................... 12

Notes to Financial Statements .............................................................................. 13

STATE OF ILLINOIS
DEPARTMENT OF HUMAN SERVICES

FINANCIAL AUDIT

For the Year Ended June 30, 2008


TABLE OF CONTENTS - Continued

Supplementary Information

Combining Schedule of Accounts – General Fund .............................................. 33

Combining Schedule of Revenues, Expenditures and Changes
in Fund Balance – General Fund ...................................................................... 34

Combining Balance Sheet – Non-major Governmental Funds ............................ 35

Combining Statement of Revenues, Expenditures and Changes
in Fund Balance – Non-major Governmental Funds ........................................ 41

Combining Statement of Fiduciary Net Assets – Agency Funds ........................ 47

Combent of Changes in Assets and Liabilities – Agency Funds ..... 48

Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards ............................................ 49

Schedule of Findings..................................................................................................... 51

Prior Finding not Repeated ........................................................................................... 64




STATE OF ILLINOIS
DEPARTMENT OF HUMAN SERVICES

AGENCY OFFICIALS


Secretary Carol L. Adams, Ph.D.

Assistant Secretary (Operations) Catalina Soto (Effective 3/16/07 through 7/9/08)
Jerome Butler (Effective 11/12/08)

Assistant Secretary (Programs) Grace Hou

Budget Director Robert Brock

Business Services Director Steven Richie (Through 8/8/07)
Hero Tameling (Acting, Effective 8/8/07 to
8/19/08)
Ron Brian (Acting, Effective 8/20/08)

Chief of Staff Teyonda Wertz

Chief Financial Officer Robert Stanek

Chief Operational Officer Jerome Butler (Through 10/5/08)
Andrew Fox (Effective 10/14/08)

Contract Administration Manager Sally Hardwick Adams

State Purchasing Officer Curtis Thompson

Fiscal Services Director Solomon Oriaikhi

Human Resources Director Elizabeth Sarmiento

Management Information Services Chief Robert Daniel (Through 11/20/08)
Jeremy Margaron (Acting, Effective 11/20/08)

Office of Community Relations Director Tracey Scruggs Yearwood (Through
10/26/07)
Aurelio Huertas Fabrizio (Acting, Effective
10/29/07)

Chief Legislative Liaison Randy Wells

Compliance Workforce Safety Audrey McCrimon (Through 12/31/07)
Martha Younger-White (Effective 7/16/08)

1
STATE OF ILLINOIS
DEPARTMENT OF HUMAN SERVICES

AGENCY OFFICIALS - Continued


Hispanic/Latino Affairs Director Mireya Hurtado (Through 7/16/07)
Agueda Corona (Effective 7/16/07)

General Counsel Mary-Lisa Sullivan (Acting)

Inspector General Bill Davis

Office of Strategic Planning and Performance Ronald Carter (Through 1/30/07)
Management Director Gregory Diephouse (Effective 9/1/07)

Office of Alcoholism and Substance Theodora Binion-Taylor
Abuse Director

Office of Rehabilitation Services Rob Kilbury
Associate Director

Office of Community Health and Steven Guerra (Through 5/31/06)
Prevention Director Ivonne Sambolin-Jones (Effective 7/30/07)

Office of Developmental Disabilities Lilia Teninty
Director

Office of Mental Health Director Lorrie Rickman-Jones, Ph.D.

Office of Clinical, Administrative and Jim Hobbs
Program Support Manager

Office of Human Capital Development Marva Arnold
Director

Grant Administration Director Sharon Zahorodnyj

Office of Security and Emergency Hero Tameling (Effective 8/20/08)
Preparedness Director

Agency main offices are located at:

100 South Grand Avenue, East 501 South Clinton Street
Springfield, Illinois 62762 Chicago, Illinois 60607
2
STATE OF ILLINOIS
DEPARTMENT OF HUMAN SERVICES

FINANCIAL STATEMENT REPORT

SUMMARY


The audit of the accompanying basic financial statements of the State of Illinois, Department of
Human Services (Department) was performed by Sikich LLP as special assistants for the Auditor
General.

Based on their audit, the auditors expressed an unqualified opinion on the Department’s basic
financial statements.

SUMMARY OF FINDINGS

The auditors identified matters involving the Department’s internal control over financial
reporting that they considered to be significant deficiencies. The significant deficiencies are
described in the accompanying Schedule of Findings on pages 51-63 of this report, as findings
08-1 through 08-6, summarized as follows:

08-1 Consolidated services payments made without sufficient supporting documentation

08-2 Liabilities payable from future appropriations are misstated

08-3 Inadequate controls over commodities

08-4 Commodity inventory system outdated and insufficient for user needs

08-5 Inadequate controls over capital asset financial reporting

08-6 Failure to comply with Medicare and Medicaid certification requirements

PRIOR FINDING NOT REPEATED

A. Unrecorded and unreported locally held bank accounts

3
EXIT CONFERENCE

The findings and recommendations appearing in this report were discussed with Department
personnel at an exit conference on March 12, 2009. Attending were:

Department of Human Services

Robert Stanek Chief Financial Officer
Albert Okwuegbunam Chief, Bureau of Audit Liaison
Jame Nardulli DHS Audit Liaison
Brian Crofton Acting Bureau Chief, Bureau of General
Accounting
Solomon Oriaikhi Fiscal Services, Director
Dan Blair Bureau Chief, Fiscal Support Services
Tim Milbrandt Manager, Budget and Contracts Section,
Division of Management Information Services
Greg Primm Bureau Chief, Bureau of Federal Reporting
Ivonne Sambolin-Jones Office of Community Health and
Prevention, Director (via Chicago – TV)
Derrick Crane Business Administrator, Office of Clinical,
Administrative and Program Support

Office of the Auditor General

Paul Usherwood Audit Manager
Joe Gudgel IS Audit Manager

Sikich LLP – Special Assistant Auditors

Nick Appelbaum Partner
Andy Lascody


The responses to the recommendations were provided by Solomon Oriaikhi in a letter dated
March 12, 2009.

4





INDEPENDENT AUDITORS’ REPORT


Honorable William G. Holland
Auditor General
State of Illinois

As Special Assistant Auditors for the Auditor General, we have audited the accompanying
financial statements of the governmental activities, the major fund, and the aggregate remaining
fund information of the State of Illinois, Department of Human Services (the Department), as of
and for the year ended June 30, 200