YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

September 18, 2003

Report No. 2003-92

The following problems were discovered as a result of an audit conducted by our office of the Department of Mental Health, Northwest Missouri Psychiatric Rehabilitation Center.

For the two years ended June 30, 2002, the Northwest Missouri Psychiatric Rehabilitation Center (NWMPRC) should have reimbursed the state's General Revenue Fund $104,800 for three state employees whose time was spent operating the canteen.� According to the facility personnel, the percentage of time spent by state employees operating the canteen was approximately 76 percent and 51 percent for the years ended June 30, 2002 and 2001, respectively.� Assuming an average of approximately 50 percent of the state employees' time is spent operating the canteen each year, an average retail price increase of approximately 25 percent would be necessary for the Canteen Fund to repay the state's General Revenue Fund for the operating costs related to the state employees.� If the Canteen Fund does not generate enough annual profit to reimburse the state's General Revenue Fund for operating costs associated with state employees, the unreimbursed costs should be considered when determining future canteen prices.

During the two years ended June 30, 2002, the facility transferred work therapy program funds totaling approximately $21,800 to the Mental Health Trust Fund instead of the state's General Revenue Fund.� In addition, the facility does not maintain work therapy monies in a separate account, as required by state law, and does not adequately monitor operations and related financial activity of the work therapy program.

The facility uses state General Revenue Fund appropriations to pay all salary and benefit costs for the state employees who oversee the operations of the work therapy program.� Although the facility had at least $461,000 of costs related to this program, the facility only transferred approximately $21,800 of work therapy program revenues to the Mental Health Trust Fund.� Increases in the prices charged for program products and services would help offset some of the costs of operating the program.� To adequately monitor work therapy program operations and to determine if they are efficient and being utilized, the facility should determine the net profit or loss of each work therapy program.

NWMPRC personnel are unable to identify the proper disposition of approximately $17,490 in the Non-Appropriated Funds System (NAFS) holding account.� Additionally, NWMPRC personnel did not always retain documentation to support expenditures of non-appropriated funds.

Some state-owned vehicles operated by the facility are underutilized.� We noted 23 of 37 vehicles were driven less than 5,000 miles during the year ended June 30, 2002.� Of these 23 underutilized vehicles, facility personnel indicated 17 of them are primarily used on the grounds.� During 2001, the facility purchased three new vehicles for the fleet.� One of these three was specially equipped, but the other two were not.� One of these vehicles was driven only 1,295 miles during the year ended����� June 30, 2002.

According to facility management, the number of vehicles necessary for use on the grounds by each department has not been analyzed.� During our audit, we noted the Carpenter Shop has three vehicles assigned to its department, but only has one full time employee.� In addition, vehicle logs are not maintained for all facility vehicles and some logs were not complete and accurate.

NWMPRC personnel do not perform a monthly reconciliation of purchases, usage, and inventories for fuel maintained in the facility's bulk storage tank.� We performed this reconciliation for the period November 15, 2001 through April 25, 2002, and found 118 gallons of unleaded gasoline were not accounted for properly.�

The audit report also notes some other concerns related to use and maintenance of the revolving fund, contracts, and employee meals.�

Complete Audit Report