FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
GENERAL LEDGER RECONCILIATIONS WERE NOT PERFORMED
The Center did not maintain a general ledger for the fiscal year ended June 30,
2001. A general ledger was prepared in fiscal year 2002 however, reconciliations to
subsidiary records were not performed.
According to Center management, the Business Administrator was transferred in March
2001 and the position was not permanently filled until October 2001. Reconciliations were
attempted but due to the time lag in initiating the process and the number of errors
identified, the reconciliation was deemed too time consuming considering other projects
within the Business Office. (Finding 1, page 10)
The Center accepted our recommendation to maintain and reconcile the general ledger on
a timely basis and to cross-train a second employee in general ledger preparation.
IMPROPER PURCHASES AND LACK OF APPROVAL OF PURCHASES FROM THE RESIDENT BENEFIT FUND
The Center purchased equipment items from the Resident Benefit Fund that were not
for the special benefit of residents and appeared to be for normal operating expenditures
of the Center. The Center also failed to document committee approval for expenditures from
the Resident Benefit Fund.
We noted the following exceptions during our current audit testing:
The Illinois Compiled Statutes (730 ILCS 5/3-4-3c) states profits on sales from
commissary stores shall be expended for the special benefit of committed persons.
Commissary profits are the main source of revenue for the Resident Benefit Fund. The
Department Administrative Directive 02.43.102 (E.6) further states specific allowable uses
of the fund, such as recreational and entertainment items and equipment, certain advances
to residents, postage, and expenditures for which each inmate will have an equal
opportunity to benefit. The Directive further states approved expenditures shall be made
after the review of the committee and approval of the warden.
Center management stated that they believed the equipment purchases met the criteria of
the Department’s Administrative Directive 02.43.102. Center management further stated
the expenditures that lacked approval resulted from an employee failing to maintain
supporting documentation of committee approval. (Finding 2, pages 11-12)
The Center responded that it had implemented our recommendation to limit Resident
Benefit Fund expenditures to items for the special benefit of residents as defined by
State statute and Department Administrative Directive and to strengthen controls over
expenditures to ensure the appointed committee document approval of all expenditures.
OTHER FINDINGS
The remaining findings were less significant and are reportedly being given
attention by the Center. We will review progress toward implementing our recommendations
in our next audit.
Mr. Mark Krell, Chief Internal Auditor, provided the Center’s responses to our
findings and recommendations.
AUDITORS' OPINION
We conducted a limited scope compliance audit 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:JAF:pp
SPECIAL ASSISTANT AUDITORS
Our Special Assistant Auditors were West & Company, LLC.
