Executive Reorganization Order 1991-7 transferred administration of the facility from the Department of Public Health to the Department of Military Affairs in September 1991. A Board of Managers establishes operating policies for the facility under the direction of the department.

As of September 30, 1994, the facility had 39 residents in domiciliary care, 179 residents in nursing care, and 157 employees. Facility operations (expenditures of $9,560,514 in fiscal year 1993-94) are financed primarily from legislative appropriations of State general purpose revenue, cost of care paid by residents, and federal funding from the Department of Veterans Affairs and Medicare Program.

Conclusion: We concluded that the facility's management of its medical and nursing care programs was effective.

Noteworthy Accomplishments: The Department of Public Health determined that the facility had met the nursing home licensure standards effective November 1, 1993.

Audit Objective: To assess the effectiveness of the facility's management of selected operating practices.

Conclusion: We concluded that the facility's management of selected operating practices was generally effective. However, the facility's management could enhance its effectiveness in the following areas: payroll and personnel transactions, the daily transaction control log, employee evaluations, cash control, member pension trust fund savings, administrative rules, nursing home licensure, and inventory reconciliations (Findings 1 through 8).

Our audit methodology consisted of reviewing reports and procedures and interviewing various personnel to gain an understanding of the facility's management of its medical and nursing care programs and selected operating practices. We used this information to form a basis for evaluating the effectiveness of the facility's management of those programs and operating practices. In addition, we conducted tests of records related to medical care and nursing care. We also conducted tests of records related to personnel and payroll, purchasing, member funds, cost of care assessments, supplies and materials inventory, food service, and facility maintenance.

The agency had complied with 24 of the 25 prior audit recommendations included in our scope of audit. We repeated one prior audit recommendation in this report.