REPORT DIGEST

 

BIG MUDDY RIVER CORRECTIONAL CENTER

 

LIMITED SCOPE

COMPLIANCE ATTESTATION ENGAGEMENT

For the Two Years Ended:

June 30, 2006

 

Summary of Findings:

Total this audit†††††††††††††             3

Total last audit†††††††††††††             2

Repeated from last audit†††††††††† 1

 

 

Release Date:

June 20, 2007

 

 

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 and Full Report is also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

 

 

 

 

 

 

 

 

 

 

SYNOPSIS

 

 

 

®      The Center had inadequate controls over inventory.

 

®      The Centerís inventory procedures concerning surplus commodities were not in accordance with the Departmentís Administrative Directive and the Procurement Code.

 

®      The Center did not maintain accurate property control records.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{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, 2006

 

EXPENDITURE STATISTICS

FY 2006

FY 2005

FY 2004

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

$27,782,643

$35,254,557

$33,665,947

†††† Personal Services......................................................

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

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

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

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

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

$16,458,332

59.2%

312

$52,751

$326,217

1.2%

$20,147,892

57.1%

391

$51,529

$340,769

1.0%

$19,150,974

56.8%

397

$48,239

$368,933

1.0%

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

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

$2,725,676

9.8%

$4,618,950

13.1%

$4,111,057

12.2%

†††† Contractual Services..................................................

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

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

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

$6,286,338

22.6%

$1,771,743

6.4%

$7,687,979

21.8%

$2,183,025

6.2%

$6,885,425

20.4%

$2,754,650

8.1%

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

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

$214,337

0.8%

$275,942

0.8%

$394,908

1.5%

†††† Cost of Property and Equipment...........................

$47,415,526

$52,892,008

$52,942,882

 

 

SELECTED ACTIVITY MEASURES (Not examined)

FY 2006

FY 2005

FY 2004

†††† Average Number of Inmates.....................................

1,865

2,035

2,042

†††† Ratio of Correctional Officers to Inmates...................

1/7.5

1 /6.3

1/6.3

†††† Cost Per Year Per Inmate.........................................

$14,883

$17,324

$16,452

†††† Rated Inmate Capacity..................................................

952

1,152

1,152

†††† Approximate Square Feet Per Inmate.............................

32

32

32

 

 

CENTER WARDEN

†††† During Examination Period: Mr. Gregory Lambert (7/1/04-5/31/06), Mr. Roy Bradford (6/1/06-6/30/06)

†††† Currently:Mr. Roy Bradford


 

 


 

 

 

 

 

The Centerís inventory at June 30, 2006 and 2005 was overstated by $44,913 and $36,751, respectively

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Center had $37,854 of surplus inventory at June 30, 2006.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Centerís property balance had an undeterminable understatement at June 30, 2006.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

INADEQUATE CONTROLS OVER INVENTORY

 

†††† The Centerís inventory at June 30, 2006 and 2005 was overstated by $44,913 and $36,751, respectively, and review of inventory procedures disclosed numerous control weaknesses.We noted the following:

 

        10 of 27 (37%) inventory items tested were valued incorrectly.

        Delays occurred in posting purchase requisitions and receiving reports.All 20 receiving reports and requisitions tested were entered from 4 to 95 days after issuance.

        Center personnel did not print out the Monthly Transaction Register for any month within the examination period.

        Center personnel did not perform reconciliations of the Automated Inventory Management System (AIMS) Posting Report for any month within the examination period.

 

†††† Center management stated the above exceptions were the result of unintentional errors attributed to the lack of adequately trained staff.The pricing errors were caused by entering the incorrect units from receiving reports and then adjusting quantities later without adjusting per unit costs. (Finding 1, pages 10-11)

 

††† Center management accepted our recommendation to comply with the Department's Administrative Directives and institute procedures to strengthen controls over inventory, data processing, report maintenance and proper pricing.Additionally, the Department is currently in the process of implementing a real time inventory system which will address many of the issues noted in the finding.

 

 

SURPLUS INVENTORY

 

†††† The Centerís inventory procedures concerning surplus commodities were not in accordance with the Departmentís Administrative Directive and the Procurement Code and were insufficient to ensure adequate monitoring of excess quantities.

 

Per review of the Automated Inventory Management System (AIMS) Report ďListing of On-Hand Inventories over Recommended Guidelines,Ē we noted the following:

 

        At June 30, 2006, the report reflected $37,854 of overstocked inventory.

        32 of the total 65 (49%) clothing store items had quantities on hand in excess of the previous 12 monthsí usage.

 

†††† Center management stated the excess clothing items were the result of an apparent failure by the clothing store clerk to assess previous usage when placing new orders.†† (Finding 2, pages 12-13)

 

††† The Center accepted our recommendation to comply with the Departmentís Administrative Directive and the Illinois Procurement Code and institute procedures to strengthen controls over inventory ordering.

 

 

INACCURATE PROPERTY REPORTING

 

The Center did not maintain accurate property control records or submit accurate quarterly property reports to the Department of Corrections-Central Office resulting in an undeterminable understatement in the Centerís property balance at June 30, 2006 as reported to the Comptrollerís Office.

 

The following exceptions were noted during our testing of the Centerís property control records and the Agency Report of State Property (C-15):

 

        1 of 15 (7%) deletions tested, totaling $7,652, was removed from the Centerís Property Control System in error,

        1 of 16 (6%) additions tested omitted shipping charges of $329,

        2 of 16 (13%) additions tested lacked supporting documentation to verify their value, and

 

        Numerous equipment items purchased through the Inmate Benefit Fund in FY06 were omitted from the Centerís Property Control System.The value was undeterminable due to the lack of supporting documentation maintained at the Center.

 

Center management stated the discrepancies were the result of clerical errors or oversights, in addition to communication issues relating to the Inmate Benefit Fund expenditures for equipment being assumed by the Departmentís Central Office in FY06. (Finding 3, pages 14-15)

 

The Center accepted our recommendation to strengthen controls over State property reporting and to comply with the State Property Control Act and applicable SAMS procedures to ensure accurate reporting of State property information.

 

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:AKS:pp

 

SPECIAL ASSISTANT AUDITORS

 

††††† Our Special Assistant Auditors were West & Company, LLC.