EXPENDITURE STATISTICS

FY 2004

FY 2003

FY 2002

!  Total Expenditures (All Appropriated Funds)..

$30,138,239

$31,437,589

$33,572,986

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

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

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

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

     Inmate Compensation.....................................

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

$17,634,291

58.5%

373

$47,277

$395,437

1.3%

$18,844,269

59.9%

400

$47,111

$420,086

1.3%

$20,293,365

60.4%

464

$43,736

$512,132

1.5%

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

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

$3,818,378

12.7%

$4,343,899

13.8%

$4,632,954

13.8%

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

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

$5,813,285

19.3%

$5,488,836

17.5%

$5,026,418

15.0%

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

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

$2,476,848

8.2%

$2,340,499

7.5%

$3,108,117

9.3%

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

$54,081,089

$53,746,262

$53,217,483

SELECTED ACTIVITY MEASURES (Not Examined)

FY 2004

FY 2003

FY 2002

!  Average Number of Inmates....................................

1,954

2,003

2,122

!  Ratio of Correctional Officers to Inmates..................

1 / 6.6

1 / 6.8

1 / 6.0

!  Cost Per Year Per Inmate........................................

$15,371

$15,695

$15,801

!  Rated Inmate Capacity.................................................

1,011

1,011

1,211

!  Approximate Square Feet Per Inmate............................

33

33

36

CENTER WARDEN(S)

     During Audit Period:  John Battles (7/1/02 to 12/31/02);  Vacant (1/1/03 to 11/30/03)

                                         Jerry Bohler, Acting (12/1/03 – 6/30/04);

     Currently:  Richard Birkey, Acting

The Center did not maintain adequate segregation of duties over local funds and payroll

Employee commissary revenue of $54,491 and employee commissary expenses of $47,122 were included in the activities of

the Employee Benefit Fund

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INADEQUATE SEGREGATION OF DUTIES

     The Illinois River Correctional Center did not maintain adequate segregation of duties over local funds and payroll.

     For all locally held funds, except the Travel & Allowance Fund, the person responsible for writing checks against these funds also mailed these checks.  Our review of existing polices and procedures for payroll processing disclosed that the person responsible for entering payroll data into the system also reviewed and approved the accuracy of the payroll vouchers.

       Sound internal control procedures require duties be segregated in order to safeguard assets and provide appropriate checks and balances. (Finding 1, page 10)

        We recommended the Center strengthen internal controls by ensuring conflicting duties are adequately segregated.  Department officials stated the recommendation was implemented.

IMPROPER MAINTENANCE OF EMPLOYEE COMMISSARY FUND

        The Illinois River Correctional Center improperly accounted for the activities of the employee commissary in the Employee Benefit Fund.

        During Fiscal Years 2003 and 2004, the Center commingled the Employee Commissary Fund and the Employee Benefit Fund.  Employee commissary revenue of $54,491 and employee commissary expenses of $47,122 were included in the activities of the Employee Benefit Fund. This resulted in the following additional exceptions:

-         Receiving reports were not completed for $47,122 of employee commissary commodity items purchased by the Employee Benefit Fund.

-         Sixty percent of the profits from the operations of the employee commissary were not accrued for transfer to the Department to assist in paying the wages and benefits of commissary employees as required by State statute.

The profit from operating the employee commissary from January 1, 2004 through June 30, 2004 was $4,187.  Therefore, $2,512 should have been accrued as a liability due to the Department.

-     The Fiscal Year 2004 General Office Reporting Packages submitted to the Department of Corrections Central Office were inaccurate.  The Employee Benefit Fund Balance Sheet Summary did not include inventory on hand of approximately $2,500 at June 30, 2004.  In addition, on the Employee Commissary Fund Balance Sheet Summary, $2,486 of promotional clothing items were categorized as food rather than wearing apparel. (Finding 2, pages 11-12)

We recommended the Center comply with Department Administrative Directives and report activities of the employee commissary in the Employee Commissary Fund.  The Center should also transfer the required percentage of profits from employee commissary operation to the Department of Corrections.

Department officials accepted the recommendation.

AUDITORS’ OPINION

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

                ____________________________________

                WILLIAM G. HOLLAND, Auditor General 

WGH:KMC:drh

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Martin & Shadid, P.C.