Illinois Department of Corrections Lincoln Correctional Center 2002 Audit

REPORT DIGEST

LINCOLN CORRECTIONAL CENTER

LIMITED SCOPE
COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 2002

Summary of Findings:

Total this audit 4
Total last audit 4
Repeated from last audit 2

Release Date:
April 23, 2003

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
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

SYNOPSIS

The Center’s general ledger for its commodities and for its property and equipment was not accurate or properly reconciled to its detail records. There were extensive delays in making the reconciliations, or they were not made at all, and there were unexplained and unsupported adjustments made to the Center’s general ledger.

Funds appropriated to Lincoln Correctional Center were used to pay $2,631,540 in food costs of other organizational units in the Department of Corrections.

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

ILLINOIS DEPARTMENT OF CORRECTIONS
LINCOLN CORRECTIONAL CENTER
LIMITED SCOPE COMPLIANCE AUDIT
For The Two Years Ended June 30, 2002

EXPENDITURE STATISTICS	FY 2002		FY 2001		FY 2000
Total Expenditures (All Appropriated Funds)	$20,954,065		$24,124,682		$23,321,819
Personal Services % of Total Expenditures Average No. of Employees Average Salary Per Employee Inmate Compensation % of Total Expenditures	$12,030,831 57.42% **283 $42,512 $236,440 1.13%		$13,305,936 55.15% 321 $41,452 $227,508 .94%		$12,647,449 54.23% 315 $40,151 $328,225 1.41%
Other Payroll Costs (FICA, Retirement) % of Total Expenditures	$2,747,657 13.11%		$3,013,729 12.49%		$2,847,680 12.21%
Contractual Services % of Total Expenditures	$3,953,397 18.87%		$3,251,270 13.48%		$3,185,341 13.66%
Commodities % of Total Expenditures All Other Items % of Total Expenditures	$1,775,777 8.47% $209,963 1.00%		$3,981,881 16.51% $344,358 1.43%		$4,001,241 17.15% $311,883 1.34%
Cost of Property and Equipment	$17,389,038		$17,512,609		$17,253,022
SELECTED ACTIVITY MEASURES		FY 2002		FY 2001		FY 2000
Average Number of Inmates		941		794		1,052
Ratio of Correctional Officers to Inmates		1/ 4.4		1/4.0		1/4.5
Cost Per Year Per Inmate*		$21,951		$27,060		$19,707
Rated Inmate Capacity		500		500		558
Approximate Square Feet Per Inmate Lincoln Facility Springfield Facility *As adjusted for food and services shared with Logan Correctional Center.		34 N/A		32 63		29 72
CENTER WARDEN(S)
During Audit Period and Currently: Augustus Scott, Jr.

** Decrease reflects transfer of Springfield Work Camp employees to Logan Correctional Center.

The Center did not complete certain reconciliations and a large number were delayed

There were also unexplained and unsupported adjustments made to the Center's general ledger

Misuse of appropriations

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

GENERAL LEDGER NOT PROPERLY RECONCILED

The Center’s general ledger for its commodities and for its property and equipment was not accurate or properly reconciled. We noted:

For the Center’s commodities automated inventory management system (AIMS), 15 out of 24 reconciliations had not been completed more than 30 days after month-end and another 5 had not been completed at all. There were also unexplained and unsupported adjustments totaling $17,907 in fiscal year 2001 and $121,785 in fiscal year 2002. According to business office staff, the AIMS records were not reconciled at all between March 2001 and December 2001.

For the Center’s Property Control System, 19 out of 24 reconciliations had not been completed over 30 days after month-end. Further, we were unable to locate a written summary to support the reconciliation changes made between the Center’s general ledger and its Property Control System. (Finding 1, pages 10-11)

Department officials responded that our recommendation was implemented. They stated the accounting supervisor received additional training and her immediate supervisor reviews and approves general ledger entries in a timely manner.

PAYMENT OF EXPENDITURES FOR Other CORRECTIONAL FACILITIES

Appropriations for the Lincoln Correctional Center were used to pay $2,631,540 in food costs of other Correctional facilities. The Center paid $2,361,440 in food costs for the Logan Correctional Center and $270,100 for the Concordia Training Academy.

The practice of paying expenditures of other Correctional facilities distorts operating statistics and circumvents the appropriation control of the Legislature. Further, this practice

does not comply with the payroll and voucher certification clauses contained in the State Finance Act. (Finding 3, page 13)

Department officials said our recommendation to either comply with the language of the existing appropriation act or work with the General Assembly to modify future wording to permit the Department’s current practice, had been implemented. According to the response, the Department’s fiscal year 2003 appropriations, for the "other" facilities, reflect an increase and a corresponding decrease for the Lincoln Correctional Center.

OTHER FINDINGS

The remaining findings and recommendations were less significant and are reportedly being given attention by Department management. We will review progress toward implementation of our recommendations during our next audit.

Mr. Mark B. Krell, CIA provided responses, on December 18, 2002.

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

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SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Kula, Cowan & Barnes, P.C.