REPORT DIGEST

ILLINOIS DEPARTMENT OF CORRECTIONS

FINANCIAL AUDIT
For the Year Ended: June 30, 2012, and

COMPLIANCE EXAMINATION
For the Two Years Ended: June 30, 2012


Release Date:   August 6, 2013

Summary of Findings:
Total this audit: 39
Total last audit:  34
Repeated from last audit: 25

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
www.auditor.illinois.gov

SYNOPSIS

• Weaknesses were noted in the preparation of
generally accepted accounting principle (GAAP)
reporting forms submitted to the Illinois Office
of the Comptroller and preparation of year-end
Department financial statements.

• The Department did not maintain accurate and
adequate property/fixed asset records and did
not accurately record all capital asset
information in its financial records.

• The Department failed to maintain adequate
controls over its inventory.  Numerous
exceptions were noted regarding the inventories
at the Correctional Centers.

• The Department’s Correctional Centers
inadequately administered locally held funds
(bank accounts) during the engagement period.
Internal control weaknesses were noted at
multiple Correctional Centers.

• The Department’s Correctional Industries did
not maintain adequate internal controls over its
accounts receivable.

• The Department had not implemented or
documented the controls over its computing
environment to ensure the controls provide
sufficient protection.

• The Department is not complying with the
requirements of the Illinois Procurement Code
with regard to purchases of items for resale in
the Department’s commissaries at Correctional
Centers.

• The Department did not properly maintain
records at the Adult Transition Centers.

• The Department is not fully utilizing the
meals purchased under a food services contract.

• The Department failed to ensure proper
controls were established in the administration
of its contracts and grants during the audit
period.

• The Department was not able to locate 156
computers.

INTRODUCTION

This report presents our Department-wide
financial statement audit for the year ended
June 30, 2012 and compliance attestation
examination of the Department for the two years
ended June 30, 2012.  The scope of the
compliance examination excludes the Department’s
Correctional Industries function which had a
separate compliance examination for the two
years ending June 30, 2012.  At June 30, 2012
the Department operated 27 correctional centers,
7 adult transition centers and Correctional
Industries.  Subsequent to June 30, 2012 the
Department closed the Tamms and Dwight
Correctional Centers and the Decatur, Southern
Illinois and Westside Adult Transition Centers.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

WEAKNESSES IN PREPARATION OF GAAP REPORTING
FORMS AND FINANCIAL STATEMENTS

The Department’s year-end financial reporting in
accordance with generally accepted accounting
principles (GAAP) to the Illinois Office of the
Comptroller contained inaccuracies.  These
problems, if not detected and corrected, could
materially misstate the Department’s financial
statements and negatively impact the financial
statements prepared by the Illinois Office of
the Comptroller.

During the audit of the Department’s June 30,
2012 financial statements, the auditors noted
errors in the GAAP reporting forms and financial
statements.  Some of the conditions noted
follow:

• The Department filed a Quit Claim Deed with
the Carroll County, Illinois Clerk and Recorder
to transfer the Thomson Correctional Center to
the Department of Central Management Services
(DCMS) effective August 1, 2010.  As of the date
of the transfer the Department should have
stopped depreciating the building and
improvements and all related equipment and not
reported it in subsequent financial statements.
However, the Department included the Thomson
Correctional Center in the initial drafts of the
June 30, 2012 financial statements provided to
the auditors.

After being brought to the Department’s and DCMS
attention by the auditors, the Department
removed the activity of the Thomson Correctional
Center from its financial statements for the
year ended June 30, 2012. The revisions to the
financial statements and related GAAP reporting
forms totaled a decrease in $120,313,000 to
capital assets, and $24,209,000 of accumulated
depreciation.  Depreciation expense decreased
$2,243,000.

• The Department understated the cash and
liability balances by $603,000 in the GAAP
reporting packages submitted for the DOC
Resident’s Trust Fund because it omitted the
activity of the contractually administered Adult
Transitional Centers (ATCs).  The Department
attempted to revise the GAAP reporting packages
for this fund, but management stated it was
instructed not to do so by the Illinois Office
of the Comptroller due to the materiality of the
adjustment on a statewide basis.  The Department
included the $603,000 cash and liability
balances of these ATCs in its financial
statements.

• Auditors of the Department’s Correctional
Industries noted the Department did not maintain
adequate and accurate records related to the
customer accounts receivable of the Working
Capital Revolving Fund.  The Department’s
Correctional Industries reported $10,043,000 in
customer accounts receivable for the Working
Capital Revolving Fund at June 30, 2012.  It was
determined the Working Capital Revolving Fund
customer accounts receivable system contained
payment posting errors.  According to the
Department’s Correctional Industries’
management, between 2006 and 2012, payments had
been posted at the customer level rather than
the invoice level, resulting in open invoices.
In addition, management indicated there were
payments which had been posted twice.
Management also stated they did not have all of
the supporting detail to ensure the posting of
payments to the proper invoice.

Because of the significance of the exceptions
noted, auditors considered this to be a material
weakness in the Department’s internal control
over financial and fiscal operations.  Due to
the noted differences in the Working Capital
Revolving Fund customer account balances and the
payment posting errors within the accounts
receivable system, the information related to
the accounts receivable and revenues for this
fund included in the financial statements could
not be verified.  Auditors of the Department’s
Correctional Industries issued a qualified
opinion on those financial statements, which led
to a qualification in the opinions on the
Department’s financial statements.  (Finding 1,
pages 17-20)  This finding was first reported in
2008.

We recommended the Department outline and
implement procedures to ensure GAAP reporting
packages and financial statements are prepared
in an accurate manner.  Concerning the
inaccurate records related to customer accounts
receivable, we recommended the Department’s
Correctional Industries work with its customers
to determine the accurate receivable balance.

Department officials accepted the recommendation
and noted they will continue devoting the
resources necessary to complete the GAAP
reporting as required by implementing procedures
and take all possible steps to ensure the GAAP
reporting packages and financial statements are
prepared in an accurate manner.  Adequate
resources have been added which may enhance
making improvements to ensure the GAAP reporting
packages and financial statements are accurately
prepared.  (For the previous Department
response, see Digest Footnote #1.)

NEED TO IMPROVE FINANCIAL ACCOUNTING AND
RECORDKEEPING

The Department did not maintain accurate and
adequate property/fixed asset records and did
not accurately record all capital asset
information in its financial records. The
auditors identified a number of inadequacies in
the Department’s property / fixed asset
recordkeeping process.  Some of the inadequacies
identified follow:

• The Department’s Automated Property Control
System (APCS) does not provide information for
the auditors to test depreciation by asset.
APCS reports provide a total cost of all
buildings combined, along with total
depreciation combined at the end of the quarter.
A report by asset cannot be generated.  As a
result of this inherent limitation of APCS the
auditors were unable to perform detailed testing
by asset of the additions to accumulated
depreciation and associated depreciation
expense.

• During testing at the Department’s General
Office of equipment additions, deletions,
transfers, location testing and voucher testing
auditors noted a number of exceptions including
purchases without supporting documentation and
purchases not recorded in the APCS.

• Auditors tested a sample of equipment items
from all 7 Adult Transition Centers and 10
Correctional Centers for fiscal years 2011 and
2012.  As a result of the testing, numerous
exceptions were noted, some of the exceptions
included: 1) Items which could not be located at
the listed location or at all; 2) Employees
separated from the Department which still had
access to APCS, and; 3) Computer items
identified as obsolete in 2008 were still being
stored at a Correctional Center.

Because of the significance of the exceptions
noted, auditors considered this to be a material
weakness in the Department’s internal control
over financial and fiscal operations.  Failure
to maintain adequate fixed asset records is
noncompliance with the State Property Control
Act, and increases the risk of equipment theft
or loss occurring without detection, and has
resulted in inaccurate property / fixed asset
reporting.    (Finding 2, pages 21-25)  This
finding was first reported in 2008.

We made a number of specific recommendations to
the Department to strengthen its procedures over
property and equipment to ensure accurate
recordkeeping and accountability for all State
assets.

The Department officials accepted the
recommendation and stated it will continue
devoting the resources necessary, within the
limitations of the current technology and budget
constraints of the existing Automated Property
Control System, to ensure that capital asset
information is properly recorded and maintained.
(For the previous Department response, see
Digest Footnote #2.)

INADEQUATE CONTROLS OVER INVENTORY

Auditors identified numerous exceptions and
weaknesses related to the controls over
commodity and commissary inventory operations.
Some of the exceptions noted follow:

• Auditors noted the inventory counts completed
by Correctional Center personnel did not agree
to accounting records in The Inventory
Management System (TIMS) or the Fund Accounting
and Commissary Trading System (FACTS) at 5
Correctional Centers.

• Auditors noted one Correctional Center
understated its end of year commissary inventory
balances to the General Office by $70,942.  The
Center did not record invoices in FACTS for
inmate commissary goods totaling $70,942 until
fiscal year 2013, although the items were
received prior to June 30, 2012.

• Auditors noted stockpiling of inventory
totaling $120,650 at one Correctional Center.
Stockpiling is defined as maintaining a supply
greater than the level needed for a twelve month
period.

Failure to implement strong controls over
inventory can lead to theft and loss of assets
and noncompliance with Department and statutory
guidelines as well as not accurately reporting
the fiscal year-end inventory balances which
would, in turn, reduce the reliability of
Statewide financial reporting.  (Finding 3,
pages 26-28)  This finding was first reported in
2008.

We recommended the Department improve its
centralized oversight function related to
inventory to allow for improved controls.

Department officials accepted the recommendation
and noted they have made some revisions in
maintaining and accounting for inventory with
the implementation of TIMS and FACTS.  In
addition, the Department indicated adequate
resources have been added, striving to continue
making improvements in the Department’s
centralized oversight function and to the
inventory accounting and maintenance within the
facilities.  (For the previous Department
response, see Digest Footnote #3.)

INADEQUATE ADMINISTRATION OF LOCALLY HELD FUNDS
AT THE CORRECTIONAL CENTERS

During testing of the Department’s locally held
funds auditors noted numerous exceptions.  Some
of the exceptions noted follow:

• Seven Correctional Centers did not exercise
adequate controls over the Resident Benefit Fund
or the Employee Benefit Fund.

• Four Correctional Centers did not properly
report accounts payable at June 30, 2011 and
2012.  Auditors noted the Correctional Centers
were unable to provide supporting documentation
to determine whether or not the Correctional
Center properly excluded the item or included
the item in its accounts payable listing at June
30 of each respective fiscal year.

• Five Correctional Centers did not deposit
locally held fund receipts timely.

• Three Correctional Centers did not maintain
adequate segregation of duties over functions
within their locally held funds.

It is important to properly administer locally
held funds as they are not subject to
appropriation and are held outside the State
Treasury.  In addition, failure to adequately
administer locally held funds could lead to
fraud, theft, or the use of unavailable monies
in the funds causing overdraft charges.
Inadequate administration also represents
noncompliance with statute.   (Finding 4, pages
29-32)  This finding was first reported in 2008.

We recommended the Department remind
Correctional Center staff of the requirements
set forth within the Administrative Directives
and statutes related to the operation and
maintenance of the locally held funds.  In
addition, we recommended the Department’s
Internal Audit Division implement a plan to
periodically perform internal audits of the
locally held funds at the Correctional Centers.

Department officials accepted the recommendation
and noted they will remind facility staff of the
requirements related to the operation and
maintenance of locally held funds.  The
Assistant Deputy Director position responsible
for Fiscal Accounting Compliance was filled
effective February 1, 2012.  Adequate resources
have been added, striving to continue making
improvements in the Department’s centralized
oversight function and by the training of
facility staff.  (For the previous Department
response, see Digest Footnote #4.)

NEED TO ENHANCE CONTROLS OVER ACCOUNTS
RECEIVABLE

The Department’s Correctional Industries did not
maintain adequate internal controls over its
accounts receivable.  Some of the exceptions
noted by the auditors during testing of accounts
receivable follow:

• The Department’s Correctional Industries did
not send out monthly statements to its
customers.

• The Department’s Correctional Industries did
not take actions to bill and collect receivables
within the fiscal year in which the debt was
incurred.  According to the records of the
Department’s Correctional Industries, accounts
receivable due over one year totaled $1,135,000
at June 30, 2012.

• The Department did not issue catch up billings
in the subsequent fiscal year for accounts with
balances from the prior fiscal year.

Because of the significance of the exceptions
noted, this was considered a material weakness
in the Department’s internal control over
financial and fiscal operations.  Failure to
have adequate documentation for accounts
receivable increases the chances of errors
occurring in reporting the accounts receivable
and the likelihood of accounts receivable not
being accurately tracked for collection.
(Finding 6, pages 36-37)

We made a number of specific recommendations to
the Department’s Correctional Industries to
maintain adequate controls over accounts
receivable.

Department officials accepted the
recommendations and indicated they will ensure
that the Illinois Correctional Industries fiscal
staff takes all possible steps to: 1) Work
towards accurate and timely reconciliations; 2)
Record all customers accounts receivable at the
invoice level.  In addition, the Department of
Corrections will ensure the Illinois
Correctional Industries fiscal staff sends out
customer statements.

LACK OF CONTROL OVER COMPUTER SYSTEMS

The Department utilizes a myriad of computer
systems to track offender’s location,
information, and maintain accounting of
offender’s finances.  As part of the auditors
standard audit procedures: 1) policies, 2)
procedures, 3) recovery plans, and 4) various
logs are requested from the Department in order
to determine the controls over the computing
environment.  However, the Department was either
unable to provide or did not maintain such
information.

In addition, as the auditors performed other
testing procedures it was noted Department
employees and former employees had inappropriate
access to the various systems.  The Department’s
inability to provide detailed information
prevented the auditors from performing required
tests to determine the adequacy of the control
environment.

Without adequate controls over the computing
environment, there is a great risk of
unauthorized access, unauthorized or improper
changes and the inability to recovery in the
event of a disaster.  The lack of control
increases the risk that the confidentiality,
integrity and availability of systems and data
will be compromised. (Finding 8, pages 40-41)

We recommended the Department implement and
document the controls over its computing
environment and ensure the controls provide
sufficient protection.

Department officials accepted the recommendation
and noted they will ensure that IT internal
controls are implemented and documented over its
computing environment to provide for sufficient
protection.

NONCOMPLIANCE WITH THE ILLINOIS PROCUREMENT CODE

The Department maintains numerous commissary
operations at Correctional Centers for inmates
and employees.  Purchases are made from vendors
for commodities to be resold in the
commissaries.  Total purchases made from vendors
for resale in the commissaries were
approximately $39 million in fiscal year 2011
and $41 million in fiscal year 2012.   The
commissaries commodity purchases are made
through non-appropriated locally held funds.  As
a result of testing performed the auditors
noted:

• Purchases were not made by competitive sealed
bidding or competitive sealed proposals as
required by the Illinois Procurement Code
(Code).  The Correctional Centers use catalogs
from various vendors or contact multiple vendors
via telephone to request bids to select products
for resale in the commissaries.

• Terms and conditions for the purchases of
goods from vendors for the commissaries were not
documented in the form of a contract as required
by the Code.  Upon selection of a vendor an
Order For Delivery (OFD) is prepared to document
the purchase.

• None of the required procurement notices were
published in the Illinois Procurement Bulletin
as required by the Code.

• The Department’s Administrative Directive
which provides guidance to employees on
commissary purchase does not include all the
requirements as set forth in the Code.

By not following the requirements of the Code,
the Department has limited the pool of available
vendors to only a few selected vendors. In
addition, the Department may be paying more for
commodities at their commissaries than they
should. (Finding 13, pages 53-54)  This finding
was first reported in 2004.

We recommended the Department continue its
efforts to work with the Department of Central
Management Services for direction on the
commissary purchasing to ensure it complies with
the requirements of the Illinois Procurement
Code.

Department officials accepted the recommendation
and noted they are working with the Department
of Central Management Services to comply with
the requirements of the Illinois Procurement
Code in making commissary purchases.  (For the
previous Department response, see Digest
Footnote #5.)

ADULT TRANSITION CENTER RECORDS NOT PROPERLY
MAINTAINED

Testing at the 7 Adult Transition Centers (ATC)
for the two years ended June 30, 2012, produced
numerous exceptions where records were not
properly maintained.  Some of the exceptions
noted were in the following areas:

• Cash balances were misstated at 2 of the 7
ATC’s.

• Auditors noted deficiencies at 3 ATCs related
to disbursements from the Employee Benefit Fund
portion of the DOC Resident’s and Employee’s
Benefit Fund.

• Deficiencies related to disbursements from the
Inmate Benefit Fund portion of the DOC
Resident’s and Employee’s Benefit Fund were
noted at 4 of the ATC’s.

• Deficiencies were noted in testing the
personal property listings at 3 of the ATCs.

Similar weaknesses were noted at the ATCs in the
previous ten audits.  Department management
indicated on-going issues are the result of
human errors, lack of resources, inadequate
communication and central level oversight within
the Department.  (Finding 14, pages 55-57)  This
finding was first reported in 1994.

We made a number of specific recommendations to
the Department to improve accounting procedures
and controls at the ATCs.

Department officials accepted the recommendation
and noted they will continue to make every
effort to improve accounting procedures and
controls to ensure accurate and appropriate
records are maintained at the remaining ATCs.
(For the previous Department response, see
Digest Footnote #6.)

WEAKNESSES IN ADULT TRANSITION CENTER FOOD
SERVICES CONTRACT

During testing auditors noted the food service
contract at 5 of the ATCs allowed the vendor to
bill the Department for 3 meals per day, per
resident head count for the day, regardless of
how many meals are actually prepared and served.
This resulted in the ATCs being billed for
531,579 more meals than were actually prepared
and served at a cost of $854,905.

Good fiscal internal controls dictate the ATCs
establish a system to determine in advance how
many residents will be present for a meal and
work with the vendor to ensure there is
sufficient, but not excessive food.  In
addition, the Department should establish
controls to ensure the State only pays for the
meals consumed.  Paying for meals that are never
utilized is a poor use of State resources.
(Finding 15, pages 58-59)

We recommended the Department perform an
analysis of its food service at all ATCs.

Department officials accepted the recommendation
and indicated they will make every effort to
perform an analysis of the food service contract
at the remaining Adult Transition Centers.

WEAKNESSES IN CONTRACT, LEASE AND GRANT
ADMINISTRATION

During testing of contractual agreements, grants
and emergency purchases auditors noted numerous
weaknesses in their administration.  Some of the
weaknesses noted follow:

• The Department could not demonstrate adequate
contract monitoring for 8 contracts tested,
totaling $1,697,359.  Specifically, the auditors
noted the Department failed to sufficiently
explain what type of monitoring occurred for 7
contracts and insufficiently monitored another
contract.

• Twelve emergency purchase affidavits totaling
$3,113,910 were not published at all in the
Illinois Procurement Bulletin as required by the
Illinois Procurement Code.  In addition, 3 other
emergency purchase affidavits totaling $148,255
were published 1 to 219 days late in the
Illinois Procurement Bulletin.

• During testing of 2 grants totaling
$7,172,018, both grants to the same grantee,
auditors identified the grantee did not return
the unexpended funds to the Department at the
end of the grant terms.  The grantee owed the
Department $159,454 of unexpended funds at the
end of the fiscal year 2011 grant and $371,885
of unexpended funds at the conclusion of the
fiscal year 2012 grant.  Auditors noted the
Department had not taken action to collect the
$531,339 of unexpended funds as of the
completion of their testing.

Failure to properly administer contractual,
lease, and grant agreements to ensure compliance
with all applicable statutes and procedures
could potentially compromise public
accountability and oversight and results in
noncompliance with statutes and Department
administrative directives.  (Finding 16, pages
60-63)  This finding was first reported in 2006.

We recommended the Department implement the
necessary controls to adequately administer its
contractual, lease, and grant agreements and
ensure compliance with applicable statutes and
Department Administrative Directives.  In
addition, we recommended the Department seek
reimbursement for the unexpended grant funds not
yet returned to the Department.

Department officials accepted the recommendation
and noted they will implement the necessary
controls to ensure contracts, leases, and grant
administration is properly administered and in
compliance with applicable laws and regulations.
The Department has initiated the process to
recover unexpended grant funds.  (For the
previous Department response, see Digest
Footnote #7.)

INADEQUATE CONTROLS OVER COMPUTER INVENTORY

The Department conducts an annual physical
inventory of all equipment with an acquisition
cost of $500 or more and annually reports its
results to the Department of Central Management
Services (DCMS).  In its fiscal year 2011
Physical Inventory Report submitted to DCMS, the
Department reported it was unable to locate
$37,785 of computer inventory.  In its fiscal
year 2012 Physical Inventory Report, the
Department reported $150,127 of missing computer
inventory.

Upon further inquiry with Department personnel
auditors noted the missing computer equipment
consisted of 51 desktop computers and 105 laptop
computers.  The Department considers these
computers to be lost.  Department personnel were
not able to provide property transfer forms or
any other documentation showing what happened to
the computers and had not performed an
assessment, and was unsure how much, if any,
confidential information was on the missing
computers.

Failure to follow up on missing computer
equipment resulted in a lack of control over
State property and the risks associated with the
potential exposure of confidential information.
(Finding 25, pages 77-78)

We made a number of specific recommendations to
the Department to improve controls over computer
inventory. In addition, recommendations were
also made related to following up on the missing
computer inventory and determining if the
missing computers contained confidential
information.

Department officials accepted the recommendation
and indicated they will work with Department of
Central Management Services in an effort to
reconcile any missing items and make an
assessment of those reconciled to determine if
computers contained confidential information.

OTHER FINDINGS

The remaining findings are reportedly being
given attention by the Department.  Auditors
will review the Department’s progress towards
the implementation of the recommendations in the
next engagement.

AUDITORS’ OPINION

The auditors expressed a qualified opinion on
the Department’s financial statements as of June
30, 2012 and for the year then ended.  The
qualified opinion was based on the auditors’
report on the financial statements of the
Working Capital Revolving Fund (Correctional
Industries). The Correctional Industries’
auditors qualified the opinion on the Working
Capital Revolving Fund because they were unable
to obtain sufficient appropriate audit evidence
supporting the accounts receivable at June 30,
2012.  In addition, the Correctional Industries’
auditors were unable to obtain sufficient
appropriate audit evidence associated with
revenues from the accounts receivable.

A compliance examination of the Department was
also conducted for the two years ended June 30,
2012 as required by the Illinois State Auditing
Act.  The Independent Accountants’ Report on
State Compliance and on Internal Control Over
Compliance was qualified for findings 1, 2, 6
and 7.  Except for the noncompliance described
in these findings, the auditors stated the
Department complied, in all material respects,
with the requirements described in the report.

WILLIAM G. HOLLAND
Auditor General

WGH:RPU:rt

SPECIAL ASSISTANT AUDITORS

Sikich LLP were our Special Assistant Auditors
for this engagement.

DIGEST FOOTNOTES

#1 WEAKNESSES IN PREPARATION OF GAAP REPORTING
FORMS AND FINANCIAL STATEMENTS – Previous
Department Response

2010:   Recommendation accepted: IL Department
of Corrections (IDOC) will continue devoting the
resources necessary within the limitations of
the current technology and budget constraints to
complete the GAAP reporting as required.  In
addition, IDOC has established a follow-up
control mechanism to ensure adequate and
appropriate implementation occurs.

#2 NEED TO IMPROVE FINANCIAL ACCOUNTING AND
RECORDKEEPING– Previous Department Response

2010:   Recommendation accepted: IL Department
of Corrections (IDOC) will continue devoting
resources necessary within the limitations of
the existing Automated Property Control System
(APCS) to ensure that property and equipment
information is properly recorded and maintained.
IDOC will also re-evaluate the capabilities of
the existing APCS to determine whether it can
produce the type of data necessary for IDOC to
ensure accurate recordkeeping and accountability
for all State assets.  If necessary, IDOC will
then research other property control systems and
their availability.  In addition, IDOC has
established a follow-up control mechanism to
ensure adequate and appropriate implantation
occurs.

 #3 INADEQUATE CONTROLS OVER INVENTORY– Previous
 Department Response

2010:   Recommendation accepted: IL Department
of Corrections (IDOC) has made some revisions in
maintaining and accounting for inventory with
the implementation of The Inventory Management
System (TIMS) and will strive to continue making
improvements in the Department’s centralized
oversight function and the inventory accounting
and maintenance within the facilities.  In
addition, IDOC has established a follow-up
control mechanism to ensure adequate and
appropriate implementation occurs.

#4 INADEQUATE ADMINISTRATION OF LOCALLY HELD
FUNDS AT THE CORRECTIONAL CENTERS – Previous
Department Response

2010:    Recommendation accepted: IL Department
of Corrections (IDOC) will remind facility staff
of the requirements related to the operation and
maintenance of locally held funds.  In addition,
the Department’s office of Internal Audit is
mandated by the Fiscal Control and Internal
Auditing Act to include an audit of the
obligation, expenditure, receipt, and use of
public funds of the State and of the funds held
in trust to determine whether those activities
are in accordance with applicable laws and
regulations at least once every two years.

#5 NONCOMPLIANCE WITH THE ILLINOIS PROCUREMENT
CODE – Previous Department Response

2010:   Recommendation accepted: IL Department
of Corrections (IDOC) will, in cooperation with
the Department of Central Management Services’
guidance and direction, comply with these
requirements of the Illinois Procurement Code in
making commissary purchases.

#6 ADULT TRANSITION CENTERS RECORDS NOT PROPERLY
MAINTAINED - Previous Department Response

2010:   Recommendation accepted: IL Department
of Corrections (IDOC) will continue to make
every effort to improve accounting procedures
and controls to ensure accurate and appropriate
records are maintained at the Adult Transition
Centers.

#7  – WEAKNESSES IN CONTRACT, LEASE AND GRANT
ADMINISTRATION - Previous Department Response

2010:   Recommendation accepted:  IL Department
of Corrections (IDOC) will implement the
necessary controls to ensure contracts are
properly administered and in compliance with
applicable laws and regulations.