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 Centerís 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 Centerís 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 Departmentís 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 Centerís 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.