Office of the Legislative Auditor - Financial Audit Division

Financial controls for the functions in our audit scope were generally adequate, and the department’s State Operated Services section complied with most of the legal requirements we tested.  However, our report contains five findings related to inadequate controls or noncompliance.

• State Operated Services did not adequately pursue its outstanding accounts receivable. As of June 30, 2007, it had $28.9 million of receivables over one year old.
• State Operated Services allowed certain employees to perform incompatible duties relating to payroll and human resources.

Period Audited: July 1, 2004, through June 30, 2007

• Cost of care billings and collections for adult mental health, child and adolescent behavioral health, and traumatic brain injury clients.
• Payroll

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, group homes, and community behavioral health hospitals throughout the state.