Auditor General Reports Department of Public Aid A recent audit of the Department of Public Aid (DPA) reports that the current staff resources, supervisory capabilities, salary levels and organization approaches are inadequate to manage the DPA's huge workload. The DPA spends more than $2 billion annually and employs over 9,000 people. Plaguing the DPA are numerous cases of large-scale fraud and abuse, ineligibility of recipients and fraudulent medical bills. The auditor general's office made specific recommendations for hiring and training supervisors, evaluating and improving existing systems, implementing new systems, upgrading the quality of the internal audit and investigatory sections, controlling fraud, processing data and reorganizing staff to handle the necessary volume of work. Community College During an audit of the State Community College of East St. Louis, the Department of Health, Education and Welfare (HEW) came to terms with the college on the repayment of $1,022,152 which was questioned in previous audits. Of this total, $670,000 was embezzled by a former employee of the college. The repayment will be made by reducing future HEW Student Financial Aid Grants to the college. In fiscal year 1978, $100,000 will be withheld, and $160,000 will be held back in each of the next eight years. An interest rate of 7 1/4 per cent was included in the agreement. The current audit showed that the college still has serious problems in property control and lesser ones in accounting records and controls for federal grants. Many of the college's fiscal difficulties seem to result from poor accounting techniques and incompetent accounting personnel. Illinois State Lottery An audit of the Illinois State Lottery for the year ending June 30, 1977, notes that lottery agents paid prizes directly to the winners totaling $23,815,038 and banks and agents deducted $6,767,151 in commissions. These amounts are not subject to the normal appropriations process but are deducted from receipts in accordance with lottery regulations. Northern Illinois University The Legislative Audit Commission's Guidelines and Definitions necessitated the transferal of $288,224 in excess revenue funds from Northern Illinois University to the treasurer's office, to be deposited in the Board of Regents Income Fund. Originally, the auditor general's office found that $3,479,349 fell under the heading of "excess funds for auxiliary enterprises" as stated in the commission's guidelines. However, university officials were able to use less exacting Board of Regents' guidelines to calculate the amount that was finally transferred. Chicago-Read Mental Health Center The auditor general's report on the Chicago-Read Mental Health Center recommended that the center place any excess Amusement Fund cash into an interest-bearing bank account. Decreased reliance on this fund to finance patient activities has led to an accumulation of $15,000. The auditors estimated that the center loses about $700 each year by putting the excess cash on demand deposit with a bank. The same audit found that the center's inventories are 36 per cent overstocked, representing a $144,000 excess based on the center's $400,000 inventory investment. Registration and Education An audit of the Department of Registration and Education uncovered several instances in which appropriations were misused. Expenditures were charged to improper appropriations when deficiencies occurred in divisions or line items. Misuse of appropriations violates legislative intent and circumvents budget controls. The same audit revealed that two former committee members reported excess mileage on their travel vouchers, one of which claimed at least 6,080 extra miles. July 1978/Illinois Issues/29
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