Taylorville Correctional Center 2000 Audit

REPORT DIGEST

TAYLORVILLE CORRECTIONAL CENTER

COMPLIANCE AUDIT

For the Two Years Ended:
June 30, 2000

Summary of Findings:

Total this audit 4
Total last audit 3
Repeated from last audit 1

Release Date:
April 10, 2001

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

Controls over commodity inventories were not adequate.

Year-end financial reports were inaccurate.

Cash receipts were not recorded and deposited in a timely manner.

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

ILLINOIS DEPARTMENT OF CORRECTIONS
TAYLORVILLE CORRECTIONAL CENTER
COMPLIANCE AUDIT
For The Two Years Ended June 30, 2000

EXPENDITURE STATISTICS	FY 2000	FY 1999	FY 1998
Total Expenditures (All Appropriated Funds)	$20,104,226	$18,868,635	$17,894,909
Personal Services % of Total Expenditures Average No. of Employees Average Salary Per Employee Inmate Compensation % of Total Expenditures	$12,064,365 60% 300 $40,215 $246,607 1.23%	$11,537,665 61.15% 286 $40,341 $270,563 1.43%	$11,048,088 61.73% 292 $37,836 $274,714 1.54%
Other Payroll Costs (FICA, Retirement) % of Total Expenditures	$2,715,573 13.51%	$1,955,572 10.37%	$1,381,007 7.72%
Contractual Services % of Total Expenditures	$3,156,968 15.70%	$3,111,760 16.49%	$3,185,506 17.80%
All Other Items % of Total Expenditures	$1,920,713 9.56%	$1,993,075 10.56%	$2,005,594 11.21%
Cost of Property and Equipment	$25,315,468	$25,541,326	$25,310,698

SELECTED ACTIVITY MEASURES	FY 2000	FY 1999	FY 1998
Average Number of Inmates...........................	1,190	1,185	1,185
Ratio of Correctional Officers to Inmates	1/5.5	1/6.0	1/5.6
Cost Per Year Per Inmate..............................	$16,801	$15,862	$14,984
Rated Inmate Capacity	600	600	600
Approximate Square Feet Per Inmate................	29	30	29

CENTER WARDEN(S)

During Audit Period: Anthony Scillia (through 5/15/99), Walter A. Groesch, Ph.D. (6/1/99 - 6/30/00)
Currently: Walter A. Groesch, Ph.D.

Inventory records were inaccurate

Employees did not understand how to prepare financial reports

Receipts were deposited 7 to 36 days late

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

INVENTORY WEAKNESSES

The Center did not maintain proper internal controls over commodity inventories. We noted the following control weaknesses over inventories:

Year-end perpetual inventory records and actual inventory quantities differed by $11,572 in FY00 and $7,883 in FY99.

Inventory adjustments were not made in a timely manner due to a misunderstanding of timelines for posting year-end adjustments.

Center personnel did not adjust differences between inventory records and physical counts for eight of 25 (32%) items tested totaling $918.

Inventory reconciliations had not been performed since February 2000 and the June 2000 general ledger had not yet been prepared as of the end of our fieldwork. In addition, the Center had no documentation of supervisory reviews for those reconciliations which were conducted.

We recommended management ensure staff are properly trained and supervised. We further recommended the Center devote adequate resources and personnel to ensure inventory records are accurately maintained, adjusted, and reconciled in a timely manner. (Finding 00-1, pages 9-10)

Center officials accepted our recommendations and stated the Center will fill staff vacancies and provide ongoing training.

INACCURATE FINANCIAL REPORTING

The Center submitted inaccurate year-end financial reports to the Department of Correction’s Central Office. We noted the following:

The Center overstated total receipts and disbursements of the Inmates’ Trust Fund by $25,935 in FY99 and $146,507 in FY00.

The Center overstated total revenues and expenditures of the Employees’ Commissary Fund by $13,724 in FY99 and $13,855 in FY00.

The Center did not report Inmates’ Benefit Fund accounts payable of $3,308 in FY99.

The Center stated Business Office employees misunderstood how to convert the Center’s accrual basis accounting records to the cash basis reports which the Department of Corrections required. The other misstatements noted were due to clerical oversight.

We recommended the Center emphasize the need for accurate reporting to its staff, seek additional training, and conduct detailed reviews of year-end financial reports. (Finding 00-2, page 11)

Center officials agreed to implement each of our recommendations.

INADEQUATE CONTROLS OVER CASH RECEIPTS

The Center did not maintain adequate controls over the deposit and accounting of cash receipts.

We noted 6 of 25 (24%) receipts tested totaling $2,092 were deposited 7 to 36 days late in the State Treasury. In addition, receipts were not timely recorded. The Center reported receipts totaling $21,555 in FY99 and $24,576 in FY00.

We recommended the Center strengthen its controls over receipts to ensure cash receipts are timely recorded and deposited into the State Treasury. (Finding 00-3, page 12)

Center officials stated they have implemented our recommendation and modified procedures to ensure the timely documentation and remittance of cash receipts.

OTHER FINDING

The remaining finding is less significant and is being given attention by the Center. We will review progress towards implementation of our recommendations during our next audit.

Responses to the recommendations were provided by Mr. Mark Krell, Chief Internal Auditor for the Department of Corrections.

AUDITORS' OPINION

We conducted a 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 audit report.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:LW:pp

AUDITORS ASSIGNED

This audit was performed by the Office of the Auditor General’s staff.