REPORT DIGEST JOHN A. GRAHAM CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION For the Two Years Ended: June 30, 2008 Summary of Findings: Total this report 4 Total last report 2 Release Date: August 6, 2009
State of Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
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SYNOPSIS · The Center’s commodities inventory procedures were not in accordance with the Department’s Administrative Directives and were insufficient to ensure the proper accounting and reporting of inventory. · The Center failed to comply with contract filing provisions for contractual services. In addition, contract files were not adequately maintained. · The Center did not take appropriate action to ensure dormant account balances were properly transferred to the General Revenue Fund.
{Expenditures and Activity Measures are summarized on the reverse page.} |
LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION
For The Two Years Ended June 30, 2008
EXPENDITURE STATISTICS |
FY
2008 |
FY
2007 |
FY
2006 |
Total Expenditures (All Appropriated
Funds) |
$37,715,560 |
$35,115,676 |
$34,691,675 |
Personal
Services.......................................... % of Total Expenditures........................... Average Number of Employees................ Average Salary Per Employee.............
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$23,493,508 62.29% 392 $59,932 |
$21,996,002
62.64% 407 $54,044 |
$21,931,261
63.22%
411
$53,361 |
Student, Member and
Inmate Compensation.... % of Total Expenditures................... |
$265,145 0.70% |
$267,037
0.76% |
$265,489
0.77% |
Other Payroll Costs (FICA,
Retirement)... % of Total Expenditures................... |
$5,630,087 14.93% |
$4,165,029 11.86% |
$3,620,367
10.44% |
Contractual Services................................ % of Total Expenditures................... |
$5,943,768 15.76% |
$6,128,142
17.45% |
$6,487,558
18.70% |
Commodities................................................ % of Total Expenditures........................ All
Other Items…………………………….
% of Total Expenditures………………… |
$2,208,477
5.86%
$174,575 0.46% |
$2,281,187
6.50%
$278,279 0.79% |
$2,181,848
6.29%
$205,152
0.59% |
Cost
of Property and Equipment................... |
$40,017,484 |
$39,764,694 |
$39,543,997 |
SELECTED ACTIVITY MEASURES (NOT EXAMINED) |
FY
2008 |
FY
2007 |
FY
2006 |
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Average Number of
Inmates……………….. Ratio of Correctional Officers
to Inmates……….. Cost Per
Year Per Inmate….………………… Rated
Inmate Capacity...................
Approximate Square Feet Per Inmate……… |
1,811 1 / 6.0 $20,815 1,174 28 |
1,825 1 / 5.8 $19,223 1,174 28 |
1,930 1 / 6.1 $17,957 1,174 27 |
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CENTER WARDEN |
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During Examination Period: Steven Bryant (7/01/06 – 4/30/07), Andrew Ott (4/30/07 – present) |
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Currently: Andrew Ott |
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Inadequate Inventory Controls Inventory overstated
Physical inventory
counts not performed
Lack of supporting
documentation Failure
to establish contract Contract and related documents missing Dormant Inmate Trust Fund account balances
were not properly transferred to the General Revenue Fund. Department officials disagreed with
auditors Auditors’ comment |
FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS NEED TO IMPROVE CONTROLS OVER INVENTORY The The reported value of the Center’s inventory at June 30, 2008 was misstated due to inaccurate and untimely record maintenance. As a result of the Center’s inadequate controls over inventory reporting, we were unable to report on the commodities balances at June 30, 2008 and 2007 in the Center’s Limited Scope Compliance Examination for the two years ended June 30, 2008 and 2007. The following conditions were noted during testing of the Center’s inventory records:
We recommended that the Center comply with the Department’s Administrative Directives and institute procedures to strengthen controls over inventory procedures and related data processing. The Center should allocate sufficient and adequately trained staff to ensure perpetual inventory records are accurately maintained. Department officials accepted our
finding and recommendation and stated the facility will make every effort to
ensure compliance with Departmental policies on inventory. FAILURE TO COMPLY WITH CONTRACT
REQUIREMENTS The Center failed to comply with
contract filing provisions for contractual services as required by the
Illinois Procurement Code and Statewide Accounting Management System (SAMS) procedures. Additionally, contract files were not
adequately maintained. We noted
the following weaknesses in compliance with contract requirements for the two
years ended June 30, 2008:
·
A vendor
was paid $6,124 for professional and artistic services in fiscal year 2007,
but the terms were not reduced to writing, filed with the State Comptroller,
or individually obligated on SAMS.
·
One of 5
(20%) contracts selected for testing along with other related contract
documents could not be located when requested. Total expenditures under the contract
totaled $79,124 for fiscal year 2007. (Finding
2, Pages 13-14) We recommended the Center implement
procedures to ensure contracts are properly established and filed when
anticipated expenditures reach statutorily defined contract thresholds, and
the Center should exercise diligence in identifying vendors and anticipating
expenditures that meet such criteria.
Contract files should be properly maintained with all contract related
documents in an orderly manner and in accordance with prescribed record
retention policies. Department officials accepted our
finding and recommendation and stated that the facility will make every
effort to ensure compliance with procurement rules. FAILURE TO PROPERLY TRANSFER UNCLAIMED INMATE CASH ACCOUNT BALANCES The Center did not take appropriate
action to ensure that dormant account balances were properly transferred to
the General Revenue Fund (GRF). We noted the Center improperly offset
Inmate Trust Fund accounts with positive cash balances against accounts with
negative balances prior to transfer of unclaimed cash balances to the
GRF. Testing revealed that the Center
transferred $313 in June 2007; however, the transfer should have totaled
$829. Furthermore, testing of the June
2008 dormant accounts indicated accounts totaling $636 were not transferred
to GRF. Negative inmate account
balances for the June 2008 test period totaled $1,854. (Finding 3, Pages 15-17) We recommend the Center take appropriate
action to ensure dormant cash balances are timely transferred to the GRF. Department officials did not accept our
finding and recommendation and stated that the Department of Corrections
(Department) has implemented policies and procedures that it feels are
appropriate to the Statute and Administrative Directives.
·
The inmate
trust fund maintains individual accounts by inmate.
·
The
accounts are reviewed when designated dormant.
·
The
appropriate account balances are transferred to the general revenue fund as
required.
·
The
statute is silent on the Department’s ability to offset negative account
balances with positive account balances. The end result of the policy is not a
loss of revenue to the
State as all funds are deposited into a legislatively appropriated
fund on deposit at the Treasurer. In an auditors’ comment, we noted the
Unified Code of Corrections requires the transfer of dormant accounts to the
GRF. The Center did not transfer
dormant accounts totaling $1,152 to the GRF.
The negative balances are caused by the improper off-setting of one
inmate's positive cash balance against another inmate's negative balance in
the Inmate Trust Fund.
Further, the Department’s administrative
rules (20 Ill. Adm. Code 535.140(a)) state unclaimed money held for a period
of one year may be transferred to the Inmate Benefit Fund and be expended for
the special benefit of committed persons, which is inconsistent with the
Unified Code of Corrections. The Center has a fiduciary
responsibility for the inmate accounts and should be evaluating each account
within the Inmate Trust Fund individually for potential transfer to the GRF. OTHER FINDING
The other report finding pertains to inadequate
controls over voucher processing. We
will review the Center’s progress towards the implementation of our
recommendations in our next audit. AUDITORS’ OPINION We conducted a compliance examination of the Center as required by the Illinois State Auditing Act. Financial statements for the entire Department will be presented in the Central Office report. ___________________________________ WILLIAM
G. HOLLAND, Auditor General WGH:PDS:pp ASSIGNED AUDITORS Our special assistant auditors were West & Company, LLC. |