WISCONSIN LEGISLATIVE AUDIT BUREAU
AUDIT SUMMARY
Report 01-14
September 2001
Wisconsin Mental Health Institutes
We have completed a financial audit of the Mendota and Winnebago Mental Health Institutes for the period July 1, 1999 through June 30, 2000 at the request of the Department of Health and Family Services. We express an unqualified opinion on the Institutes’ financial statements, which show that, on an accrual basis, Mendota Mental Health Institute had net income of $2.8 million and Winnebago Mental Health Institute had net income of $3.0 million.
For several years, the Department did not have an adequate system to accumulate and summarize information on patient revenues and accounts receivable. In January 1999, the Department began implementing a new $525,000 billing and accounting system; however, its automated billing functions are not yet working properly, which has resulted in delays in billing and collection activities. The Department is taking reasonable steps to solve the problems with the system and to reduce the delays, which we will continue to monitor in our future audits of the Institutes. In addition, we recommend improvements for the Department’s process for developing and documenting estimates of patient revenues and receivables.
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