REPORT
DIGEST

COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1998

Summary of Findings:

Release Date:
April 21, 1999

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

• Accounting reports submitted by the Center to the Department of Corrections Central Office contained numerous errors. These reports were not reviewed for accuracy by the Center's Business Administrator.
• Reconciliations of the medical service provider's invoices were not performed on a timely basis. As a result interim overpayments to the medical service provider totaling $61,960 were made.

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

FY 1998

FY 1997

FY 1996

• Total Expenditures (All Appropriated Funds)

Personal Services
% of Total Expenditures
Average No. of Employees
Average Salary Per Employee

Inmate Compensation
% 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

$26,832,337

$16,288,180
60.71%
454
$35,877

$362,504
1.35%

$2,056,301
7.66%

$4,502,713
16.78%

$3,622,639
13.50%

$52,100,805

$25,098,527

$15,608,043
62.19%
452
$34,531

$373,748
1.49%

$1,935,707
7.71%

$4,020,695
16.02%

$3,160,334
12.59%

$51,836,308

$24,439,475

$14,839,936
60.73%
451
$32,905

$362,916
1.48%

$1,800,812
7.37%

$3,900,729
15.96%

$3,535,082
14.46%

$51,007,552

FY 1998

FY 1997

FY 1996

1,908

1,949

1,932

1/5.53

1/5.96

1/5.75

$14,002

$12,848

$12,602

1,152

1,152

1,152

34

33

31

The Center did not reconcile the medical service provider payments to timesheets on a quarterly basis resulting in interim overpayments of $61,960

INTRODUCTION

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 report.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

ACCOUNTING REPORTS SUBMITTED TO THE CENTRAL OFFICE CONTAINED NUMEROUS ERRORS

The Center is required to submit certain accounting reports to the Department of Corrections Central Office by September 1 of each year. These reports provide summary information for each locally held fund administered by the Center.

Ten errors were noted in the reports submitted for the fiscal years ended June 30, 1998 and 1997. The errors ranged in value from $443 to $4,732. The accounting reports had not been reviewed by the Business Administrator.

We recommended the Center management adequately review accounting reports before they are submitted to the Department of Correction's Central Office. (Finding 1, page 10)

Center management accepted the recommendation.

RECONCILIATIONS OF MEDICAL SERVICE PROVIDER'S INVOICES WERE NOT PERFORMED ON A TIMELY BASIS

The Center did not reconcile its Medical Service Provider contract payments to the contractor timesheets on a quarterly basis during fiscal year 1998 as specified in the contract. As a result the Center overpaid the medical service provider $61,960 for the second and third quarters of 1998. The amount was ultimately recovered by adjusting the final payment made under the contract on August 11, 1998.

The Center did not perform the reconciliation because the contractor did not submit the timesheets on a timely basis. Rather than hold the payment until the timesheets were submitted, Center personnel paid the standard contract amount.

We recommended agency management perform the quarterly reconciliation specified in the contract and withhold payment until the timesheets are received from the medical service provider. (Finding 2, pages 11-12)

Center management accepted the recommendation and stated the Business Administrator will meet with the contractor to emphasize the importance of completing their quarterly reconciliation procedures timely.

Mr. Mark Krell, Chief Internal Auditor, provided the Center's responses to our findings and recommendations.

_____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:JAF:pp

SPECIAL ASSISTANT AUDITORS

Our Special Assistant Auditors were Kemper CPA Group LLC.