REPORT DIGEST

REPORT DIGEST

BIG MUDDY RIVER CORRECTIONAL CENTER

LIMITED SCOPE

COMPLIANCE ATTESTATION ENGAGEMENT

For the Two Years Ended:

June 30, 2004

Summary of Findings:

Total this audit 2

Total last audit 4

Repeated from last audit 0

Release Date:

April 21, 2005

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

To obtain a copy of the Report contact:

Office of the Auditor General

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

SYNOPSIS

¨ The Center did not comply with bidding requirements.

¨ The Center’s inventory at June 30, 2004 was overstated by $69,246.

{Expenditures and Activity Measures are summarized on the reverse page.}

ILLINOIS DEPARTMENT OF CORRECTIONS

BIG MUDDY RIVER CORRECTIONAL CENTER

LIMITED SCOPE COMPLIANCE ATTESTATION ENGAGEMENT

For The Two Years Ended June 30, 2004

EXPENDITURE STATISTICS

FY 2004

FY 2003

FY 2002

! Total Expenditures (All Appropriated Funds)......

$33,665,947

$33,383,750

$33,443,622

Personal Services......................................................

% of Total Expenditures...................................

Average No. of Employees...............................

Average Salary Per Employee..........................

Student, member and inmate Compensation.....................

% of Total Expenditures............................................

$19,150,974

56.8%

397

$48,239

$368,933

1.0%

$19,269,713

57.7%

408

$47,230

$373,359

1.1%

$19,216,613

57.46%

454

$42,327

$397,714

1.19%

Other Payroll Costs (FICA, Retirement).....................

% of Total Expenditures...................................

$4,111,057

12.2%

$4,459,238

13.3%

$4,411,591

13.19%

Contractual Services..................................................

% of Total Expenditures...................................

Commodities........................................................

% of Total Expenditures...................................

$6,885,425

20.4%

$2,754,650

8.1%

$6,416,242

19.2%

$2,509,424

7.5%

$6,172,606

18.46%

$2,801,390

8.3%

All Other Items.........................................................

% of Total Expenditures...................................

$394,908

1.5%

$355,774

1.2%

$443,708

1.4%

! Cost of Property and Equipment...........................

$52,942,882

$53,200,477

$53,274,470

SELECTED ACTIVITY MEASURES	FY 2004	FY 2003	FY 2002
! Average Number of Inmates.....................................	2,042	2,047	1,998
! Ratio of Correctional Officers to Inmates...................	1/6.3	1/6.3	1/5.6
! Cost Per Year Per Inmate.........................................	$16,452	$16,306	$16,712
! Rated Inmate Capacity..................................................	1,152	1,152	1,152
! Approximate Square Feet Per Inmate.............................	32	32	33

CENTER WARDEN

During Audit Period: Mr. Michael Holmes (7/1/02 to 3/31/03), Mr. Eddie Jones (4/1/03 to 12/15/03), Mr. Gregory Lambert (12/16/03 to 6/30/04)

Currently: Mr. Gregory Lambert

The Center allowed the stringing of purchases

The Center’s inventory at June 30, 2004 was overstated by $69,246

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

IMPROPER BIDDING PROCEDURES

The Center did not follow the Illinois Procurement Code and the Department’s Administrative Directives Bidding Requirements.

The Center did not prepare a Contract Obligation Document (COD) on 2 of 25 (8%) vouchers tested, totaling $12,379. To allow the vendor to be paid without preparing a COD, the Center requested the vendor to prepare a separate invoice for each of the items purchased. Although the Center bid the purchases, the stringing of invoices allowed payment for the single order in three separate installments.

Additionally, fewer than three bids were obtained on purchases of commodities exceeding $300 but less than $10,000 on 2 of 25 (8%) vouchers tested, totaling $9,806.

According to Center management, the stringing of purchases was done only to allow the vendor to be paid and the failure to prepare a Contract Obligation Document was not identified until the order was fulfilled. (Finding 1, pages 9-10)

Center officials accepted our recommendation to comply with competitive bidding requirements and stated three bids will be obtained for all purchases requiring bids.

INADEQUATE CONTROLS OVER INVENTORY

The Center incorrectly priced 12 of 49 (25%) inventory items tested, thus overstating inventory at June 30, 2004 by $69,246. The total correct inventory at June 30, 2004 was $458,655.

According to Center management, the incorrect pricing was the result of employee turnover coupled with lack of available staff and proper training. (Finding 2, pages 11-12)

The Center accepted our recommendation.

Ms. Mary Ann Bohlen, Accounting Manager provided the Center’s responses to our findings and recommendations.

AUDITORS' OPINION

We conducted a limited scope compliance attestation engagement of the Center as required by the Illinois State Auditing Act. We also performed certain agreed-upon procedures with respect to the accounting records of the Center to assist our audit of the entire Department. Financial statements for the Department will be presented in that report.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:MKL:pp

SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors were West & Company, LLC.