Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Human Services
State Operated Services

 

Financial Audit Division Report 04-40 Released September 24, 2004

Key Findings:

  • State Operated Services has not resolved chemical dependency billing discrepancies resulting from incomplete or inaccurate service agreements.
  • State Operated Services did not adequately review and pursue its outstanding accounts receivable. As of April 30, 2004, it had $28.4 million of receivables over one year old.
  • State Operated Services did not obtain all required financial information from mental health clients and did not retain some records needed to support group home billings.
  • State Operated Services allowed certain employees to perform incompatible duties relating to payroll and human resources.

Other Conclusions:

  • State Operated Services properly recorded payroll and administrative expenditures in the accounting records.
  • State Operated Services complied with applicable laws and policies when selling land and buildings.
This report contained a total of 4 findings related to internal control and legal compliance.
   Audit Scope:

Audit Period: July 1, 2002,
through December 31, 2003

Programs Audited:

  • Cost of care billings for mental illness, chemical dependency, and developmentally disabled clients.
  • Payroll
  • Selected Administrative Expenditures:
    • Food
    • Prescription Drugs
    • Supplies
  • Disposition of Facilities

Agency Background:

State Operated Services is a section within the Department of Human Services responsible for providing services for campus and community-based programs serving people with mental illness, developmental disabilities, chemical dependency, and traumatic brain injury. This unit operates regional treatment centers, a nursing home, security facilities, clinics, and group homes throughout the state.

More Information

Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155