REPORT DIGEST

 

DEPARTMENT OF CORRECTIONS STATEVILLE CORRECTIONAL CENTER

 

LIMITED SCOPE

COMPLIANCE ATTESTATION EXAMINATION

For the Two Years Ended

June 30, 2006 †††

Summary of Findings:

 

Total this audit†††††††††††††             9

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

Repeated from last audit†††††††††† 2

 

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 are also available on

the worldwide web at http://www.auditor.illinois.gov

 

 

 

SYNOPSIS

 

 

 

®      The Center lacked adequate controls over its commodities inventory.††††††

®      The Center lacked adequate controls over its equipment and related records.

®      The Center did not maintain adequate segregation of duties in the areas of receipt processing and check signing authority for its local funds.

®      The Center employees lacked required training hours.†††††††††††††††

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

{Financial Information is summarized on the reverse page.}


 

 

 

 

ILLINOIS DEPARTMENT OF CORRECTIONS

STATEVILLE CORRECTIONAL CENTER

LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

For The Years Ended June 30, 2006

 

 

EXPENDITURE STATISTICS

FY 2006

FY 2005

FY 2004

 

   Total Expenditures (All Appropriated Funds)

†††††††††††

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

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

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

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

 

††††† Student, Member and Inmate Compensation...

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

†††††††††††

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

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

†††††††††††

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

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

††††† †††††

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

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

 

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

 

$93,344,874

 

$60,506,858

64.8%

1,100

$55,006

 

$243,834

0.3%

 

$10,040,556

10.8%

 

$16,512,032

17.7%

 

$6,041,594

6.4%

 

$188,241,888

 

$96,425,919

 

$62,623,648

65.0%

1,162

$53,893

 

$218,717

0.2%

 

$14,377,588

14.9%

 

$12,716,148

13.2%

 

$6,489,818

6.7%

 

$187,488,562

 

$92,219,770

 

$58,752,090

63.7%

1,215

$48,356

 

$248,294

0.3%

 

$12,675,698

13.7%

 

$13,263,042

14.4%

 

$7,280,646

7.9%

 

$186,610,894

SELECTED ACTIVITY MEASURES (Not Examined)

FY 2006

FY 2005

FY 2004

 

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

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

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

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

  • Approximate Square Feet Per Inmate.........

 

3,301

1 / 3.9

$28,269

3,187

††† 44

 

†††††††††† 3,081

1 / 3.3

$31,290

3,187

48

 

2,854

1 / 2.8

$32,305

2,000

††† 38

CENTER WARDEN(S)

 

††††† During Audit Period:Mr. Kenneth Briley (7/1/04-3/15/05) Ms. Deirdre Battaglia (3/16/05-6/30/06), Currently: Mr. Terry McCann

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity counts did not agree

 

 

 

Supporting documentation was not maintained

 

 

Excess inventory of $230,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Missing equipment totaling $7,047

 

 

 


Storage area contained damaged property

 


Incomplete property records

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Internal control weakness

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncompliance with annual training requirements††††††††††††††††

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

 

 

INADEQUATE CONTROL OVER COMMODITIES

 

The Center did not exercise adequate control over its commodities inventory. As a result of the Centerís inadequate recordkeeping and the weaknesses noted in the internal controls over commodities inventory, we were unable to report on the inventory balances at June 30, 2005 and June 30, 2006.

 

Some of the exceptions that we noted were as follows:

 

  • Forty-four of 86 (51%) commodity counts tested did not agree to the Centerís perpetual records.

  • Six of 20 (30%) tested record count documents did not agree to the Centerís final inventory.

  • Center personnel were unable to provide the supporting documentation for 12 of 20 (60%) commodity items in our sample and as a result, we could not recalculate the average unit costs.

  • The Center maintained commodity inventory in excess of a historically computed 12-month supply.Eleven of 25 (44%) items tested were in supply in excess of 12 months resulting in overstocked inventory of $230,957.

  • The Centerís officer clothing store was not arranged in an orderly manner.††

 

††††† We recommended that the Center apply proper year-end inventory procedures to reflect actual quantities on hand at the end of the fiscal year.Also, the Center should devote adequate resources to ensure that commodity records are maintained and updated timely and to ensure that commodities are stored in an organized manner.Further, the Center should maintain supporting documentation for expenditures.(Finding 1, Pages 10-12)

 

††††† Department officials accepted our recommendation and stated that the facility has developed a plan to address the commodity inventory issues.

 

 

INADEQUATE CONTROL OVER EQUIPMENT AND RELATED RECORDS

 

††††† The Center did not maintain adequate control over equipment and related records.

 

††††† Some of the exceptions noted follow:

 

  • Nine of 35 (26%) of the equipment items tested totaling $7,047 could not be located.Additionally, 16 of 35 equipment items were located in a different location than was recorded on the property records.

  • Four of 35 (11%) of the equipment items tested totaling $20,250 did not contain proper State identification tags.

  • The Centerís property storage area was not arranged in an orderly manner and contained damaged and out-dated property items.

  • The auditors were not provided with complete property records and as a result, testing of the Centerís disposals and transfers were limited to the reporting records that were provided. (Finding 2, Pages 13-14)

 

We recommended the Center adequately safeguard State equipment and adhere to procedures to ensure that property and equipment records are properly maintained.Further, the Center should properly dispose of and remove from its records any assets that are obsolete, damaged or no longer in use.

 

††††† Department officials accepted our recommendation and stated that the facility will make every effort to ensure the property and the related accounting system in maintained accurately and completely.

†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

INADEQUATE SEGREGATION OF DUTIES††††††††††

 

††††† The Center lacked adequate segregation of duties in the areas of receipt processing and check signing authority for its local funds.

 

††††† We noted that:

        Sixty-three of 106 cash receipts tested (59%) totaling $422,701 and $255,987 for FY2005 and FY2006, respectively, were entered into the system by the cashier who also received the physical checks.

        The Accountant Supervisor prepared the bank reconciliations and had check signing authority for local fund disbursements.

Adequate and effective internal controls and prudent business practices require segregation of duties.

(Finding 4, Pages 17-18)†††

 

We recommended the Center segregate the duties in order to maintain an effective internal control over the recordkeeping and accounting function.

 

Department officials state they have implemented our recommendation.

 

 

REQUIRED EMPLOYEE TRAINING NOT RECEIVED

 

††††† The Centerís employees lacked required training hours.

 

Twelve of 25 (48%) employees tested in FY2005 did not receive the required training hours.In addition, 11 of 25 (44%) employees tested did not receive the required hours in FY2006.Lack of employee training could result in work inefficiencies, safety and security problems, and failure to improve the quality of the workforce and the working environment. (Finding 5, Page 19)

 

We recommended Center management ensure employees receive the required training every fiscal year.

 

Department officials accepted our recommendation to ensure employees receive the required training every fiscal year.

 

 

OTHER FINDINGS

 

††††† The remaining findings are reportedly being given attention by the Center.We will review the Centerís progress toward the implementation of our recommendations in our next examination.

 

 

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:TLK:PP

 

 

AUDITORS ASSIGNED

 

††††† This limited scope compliance examination was conducted by the Auditor Generalís staff.