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REPORT DIGEST DEPARTMENT OF CORRECTIONS - TAMMS 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 Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
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SYNOPSIS
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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.}
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ILLINOIS DEPARTMENT OF CORRECTIONS
TAMMS CORRECTIONAL CENTER
LIMITED SCOPE
COMPLIANCE EXAMINATION
For The Two Years Ended June 30, 2008
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EXPENDITURE STATISTICS |
FY 2008 |
FY 2007 |
FY 2006 |
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Total
Expenditures (All Appropriated Funds)........ |
$27,697,956 |
$26,490,666 |
$25,716,606 |
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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% |
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Other Payroll
Costs (FICA, Retirement).......................
% of Total Expenditures..................................... |
$4,284,606
15.5% |
$3,331,303
12.6% |
$2,782,762
10.8% |
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Contractual
Services...................................................
% of Total Expenditures..................................... |
$4,332,381
15.6% |
$4,342,063
16.4% |
$4,784,126
18.6% |
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All Other
Items...........................................................
%
of Total Expenditures..................................... |
$1,077,630
3.9% |
$1,083,341
4% |
$1,076,077
4.2% |
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Cost of
Property and Equipment............................. |
$77,640,846 |
$76,776,342 |
$76,811,624 |
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SELECTED ACTIVITY
MEASURES (Not Examined) |
FY 2008 |
FY 2007 |
FY 2006 |
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Average Number of Inmates |
432 |
447 |
464 |
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Ratio of Correctional Officers to Inmates |
1 to 2.62 |
1 to 2.57 |
1 to 2.62 |
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Cost Per Year Per Inmate |
$64,107 |
$59,241 |
$55,367 |
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Rated Inmate Capacity |
700 |
700 |
700 |
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Approximate Square Feet Per Inmate |
110 |
101 |
98 |
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CENTER WARDEN(S) |
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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 |
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The Center’s 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 Auditor’s 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 Center’s 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 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 Department’s 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 Center’s 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 auditor’s 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. |