REPORT DIGEST

 

DEPARTMENT OF CORRECTIONS -

TAMMS
CORRECTIONAL CENTER

 

LIMITED SCOPE

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2008

 

Summary of Findings:

Total this audit††††††       ††††††† 4

Total last audit††††††††       ††††† 0

Repeated from last audit††††† 0

 

 

Release Date:

August 6, 2009

 

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 did not exercise adequate control over employee Commissary Fund General Ledger.

 

®      The Center failed to transfer Employee Commissary Fund profits.

 

®      The Center failed to properly transfer unclaimed inmate cash account balances as required by State law.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

††††††† {Expenditures and Activity Measures are summarized on the reverse page.}

 


 

 

ILLINOIS DEPARTMENT OF CORRECTIONS

TAMMS CORRECTIONAL CENTER

LIMITED SCOPE COMPLIANCE EXAMINATION

For The Two Years Ended June 30, 2008

 

EXPENDITURE STATISTICS

FY 2008

FY 2007

FY 2006

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

$27,697,956

$26,490,666

$25,716,606

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

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

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

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

 

†††† Inmate Compensation .....................................................

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

$17,901,422

64.6%

301

$59,473

 

$101,917

0.4%

$17,630,667

66.6%

322

$54,754

 

$103,292

0.4%

$16,951,388

65.9%

326

$51,998

 

$122,253

0.5%

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

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

$4,284,606

15.5%

$3,331,303

12.6%

$2,782,762

10.8%

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

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

$4,332,381

15.6%

$4,342,063

16.4%

$4,784,126

18.6%

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

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

$1,077,630

3.9%

$1,083,341

4%

$1,076,077

4.2%

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

$77,640,846

$76,776,342

$76,811,624

 

SELECTED ACTIVITY MEASURES (Not Examined)

FY 2008

FY 2007

FY 2006

†††† Average Number of Inmates

432

447

464

†††† Ratio of Correctional Officers to Inmates

1 to 2.62

1 to 2.57

1 to 2.62

†††† Cost Per Year Per Inmate

$64,107

$59,241

$55,367

†††† Rated Inmate Capacity

700

700

700

†††† Approximate Square Feet Per Inmate

110

101

98

 

CENTER WARDEN(S)

During Examination Period:Ms. Yolande Johnson (11/1/08-current), Mr. Ken Bartley (4/1/07-10/31/08), Mr. Jay Merchant (8/16/06-3/31/07), Mr. Terry McCann (7/1/06-8/15/06)

Currently:Ms. Yolande Johnson

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Centerís inventory balance as of June 30, 2007 and 2008 was understated

 

 

 

 


Inaccurate Loans Payable

 

 

 


Inaccurate Accounts Payable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Non compliance with State Law

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Dormant account balances were not properly transferred

 

 

 

 

 

 

 

 


Improper offset

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Department does not accept finding and recommendation

 

 


Auditorís Comment

 

 

 

 

 

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

 

INADEQUATE CONTROLS OVER EMPLOYEE COMMISSARY FUND GENERAL LEDGER

 

††††† The Center did not exercise adequate control over its locally held Employee Commissary Fund general ledger.† ††

 

††††† During testing, we noted the following:

 

        Ending inventory balances reported as of June 30, 2007 and 2008 were $(565) and $(20,160), respectively.† †However, based on the Centerís year-end physical inventories, the balances on hand were actually $7,504 and $2,393, respectively.The errors that caused an understatement in inventory also resulted in an overstatement of miscellaneous expenses and an understatement of profit.

 

        Ending loans payable as of June 30, 3007 and 2008 were also inaccurate.The outstanding loan balances should have been $12,460 and $11,760 for June 30, 2007 and 2008, respectively.

 

        Improper recording in the Fund Accounting & Commissary Trading System (FACTS) resulted in an understatement of accounts payable by $589.

 

††††† The Central Office in Springfield utilizes the Centerís General Ledger for financial reporting and decision-making.Failure by the Center to accurately report account balances will result in errors in the Departmentís financial information. (Finding Code No. 08-1, pages 10-11)

 

We recommended the Center strengthen internal controls over the general ledger to ensure accurate financial information is reported to the Central Office.

 

The Department officials stated the recommendation has been implemented.

 

 

 

FAILURE TO TRANSFER EMPLOYEE COMMISSARY FUND PROFITS

 

The Center did not transfer Employee Commissary Fund profits as required by State statute.We noted the following:

 

        The ending Due to Employee Benefit Fund-Profit balances per the Balance Sheet as of June 30, 2007 and 2008 were $(18,592) and $(35,888).This account should represent the 40% of net commissary profits accrued to the Employee Benefit Fund.However, accounting errors resulted in negative amounts.

 

        Improper recording of transactions resulted in erroneous net losses of $1,658 and $1,101 as of June 30, 2007 and 2008, respectively.The commissary may have generated a profit; however, due to numerous bookkeeping errors, statutorily required transfers were not made.

 

Failure by the Center to accurately report account balances will result in errors in the Departmentís financial information.(Finding Code No. 08-2, pages 12-13)

 

We recommend the Center properly record commissary transaction and transfer the required percentage of profits from employee commissary operations to the Department of Corrections.

 

The Department officials responded it had implemented our recommendation.

 

 

FAILURE TO PROPERLY TRANSFER UNCLAIMED INMATE CASH ACCOUNT BALANCES

 

†††† ††††††††††† The Center did not take appropriate action to ensure that individual dormant account balances were properly transferred to the General Revenue Fund (GRF).

 

††††† The Unified Code of Corrections (Code) requires the Department to establish accounting records with individual accounts for each inmate (730 ILCS 5/3-4-3(a)).In addition, the Code (730 ILCS 5/3-4-3(b)) requires any money held in accounts of an inmate which are unclaimed one year after release to be transferred to the 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.Our testing of June 2008 dormant accounts noted dormant accounts totaling $158 were not transferred to the GRF.

 

††††† Center management stated their internal policy for dormant accounts is to only transfer positive balances which exceed negative balances in total for all inmate accounts.

 

††††† There are instances where cash payments are made to inmates in excess of their balance, which creates a negative balance.In these instances, offsetting negative account balances against other accounts in the Inmate Trust Fund effectively requires other inmate accounts to bear the costs of those deficits in violation of the Centerís fiduciary responsibility and the Code. (Finding Code No. 08-3, pages 14-15)

 

We recommended the Center take appropriate action to ensure dormant cash balances are timely transferred to the GRF.

 

Department officials did not accept our finding and stated they implemented policies and procedures that it feels are appropriate.

 

In an auditorís comment, we stated 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.

 

 

  

AUDITORS' REPORT

 

††††† We conducted a limited scope compliance attestation engagement 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:KML:pp

 

SPECIAL ASSISTANT AUDITORS

 

††††† Our special assistant auditors for this examination were Martin & Shadid, CPAs, P.C.