Illinois Department of Corrections Stateville Correctional Center 2002 Audit

REPORT DIGEST
DEPARTMENT OF CORRECTIONS STATEVILLE CORRECTIONAL CENTER

LIMITED SCOPE
COMPLIANCE AUDIT

For the Two Years Ended June 30, 2002

Summary of Findings:

Total this audit 4
Total last audit 6
Repeated from last audit 1

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

Stateville Correctional Center’s physical inventory procedures were not properly performed.
The Center had significant commissary profit fluctuations in the Inmate Commissary Fund.
The Center did not exercise adequate control over locally held fund bank accounts.

{Financial Information is summarized on the reverse page.}

ILLINOIS DEPARTMENT OF CORRECTIONS
STATEVILLE CORRECTIONAL CENTER
COMPLIANCE AUDIT
For The Years Ended June 30, 2002

EXPENDITURE STATISTICS	FY 2002	FY 2001	FY 2000
Total Expenditures (All Appropriated Funds) Personal Services % of Total Expenditures Average No. of Employees Average Salary Per Employee Inmate Compensation (If Applicable) % 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	$65,582,981 $41,882,629 63.9% 899 $46,588 $282,821 0.4% $9,478,663 14.4% $8,241,129 12.6% $5,697,739 8.7% $68,381,603	$65,755,936 $42,123,121 64.1% 945 $44,575 $353,522 0.5% $9,516,045 14.5% $7,652,371 11.6% $6,110,877 9.3% $67,988,663	$61,140,407 $39,512,158 64.6% 938 $42,124 $354,527 0.6% $8,894,951 14.6% $5,964,999 9.7% $6,413,772 10.5% $66,342,050
SELECTED ACTIVITY MEASURES	FY 2002	FY 2001	FY 2000
Average Number of Inmates Ratio of Correctional Officers to Inmates Average Costs Per Inmate Rated Inmate Capacity Approximate Square Feet Per Inmate	2,551 1/ 3.9 $25,702 2,000 42	2,596 1 / 3.8 $25,257 2,000 45	2,632 1 / 4.0 $23,158 2,000 42
WARDEN
During Audit Period: Kenneth Briley Currently: Kenneth Briley

The inventory list showed 829 cases of hot chocolate mix ($23,203) when the item never existed

Gross profit fluctuations ranged from negative 6.62% to a positive 15.28% while they should range within 3% to 10%

The Inmate Commissary Fund bank balance exceeded FDIC insured limits by $121,761 as of June 30, 2002 and $51,087 as of June 30, 2001

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

INVENTORY PROCEDURES NOT PROPERLY PERFORMED

Stateville Correctional Center’s physical inventory procedures were not properly performed. In testing, we noted that:

One of 40 items tested (2.5%) was not actually in inventory. The June 30, 2002 inventory master list showed 829 cases of hot chocolate mix ($23,203) when the item never existed.
21 of 40 tested inventory items (52.5%) did not agree with the quantities recorded on the master inventory list (net differences of $14,755).

Inventory work sheets did not show evidence of required recounts when first counts did not agree with the master list.

Postage inventory was overstated by $14,778. (Finding 1, pages 9-11)

The Center accepted our recommendations to supervise its inventory count staff to ensure inventory counts are complete and accurate and to review inventory adjustments for reasonableness.

COMMISSARY PROFIT FLUCTUATIONS

Stateville Correctional Center had significant commissary profit fluctuations in the Inmate Commissary Fund. In Fiscal Years 2001 and 2002, seven out of 24 months tested (29%) had significant gross profit fluctuations, ranging from negative 6.62% to a positive 15.28%. The Unified Code of Corrections (730 ILCS 5/3-7-2a) requires a commissary to establish selling prices based on cost with an additional charge of 3% to 10%. It is reasonable to expect the commissary profits to fall within this range. (Finding 2, pages12-13)

We recommended the Center implement procedures to ensure proper counts of physical inventory and monthly input into the computer system, and that significant fluctuations be investigated by Center management. The Center response stated that the recommendations were implemented and that no significant fluctuations have occurred for the last fifteen months.

INADEQUATE CONTROLS OVER LOCALLY HELD FUNDS BANK ACCOUNTS

Stateville Correctional Center did not exercise adequate control over locally held fund bank accounts. The Inmate Commissary Fund bank balance exceeded the FDIC insured amount of $100,000 by $121,761 as of June 30, 2002 and $51,087 as of June 30, 2001. The Inmate Benefit Fund balances exceeded FDIC insured limits by $29,984 as of June 30, 2002 and $12,946 as of June 30, 2001. In addition, two checks totaling $1,086 were written from the Travel and Allowance Fund during Fiscal 2002 resulting in non-sufficient funds (NSF) charges of $53. (Finding 3, pages 14-15)

The Center accepted our recommendations to ensure that locally held fund bank accounts are sufficiently collateralized and are adequate to cover checks written on the accounts.

OTHER FINDING

The other finding dealt with inadequate controls over locally held fund general ledgers. We will review progress toward implementation of all our recommendations during the next audit.

AUDITORS' OPINION

We conducted a compliance audit of the Center as required by the Illinois State Auditing Act. This was a limited scope compliance audit 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. Financial statements for the entire Department will be presented in that report.

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WILLIAM G. HOLLAND, Auditor General

WGH:KMC:drh

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Blackman Kallick Bartelstein LLP.