REPORT DIGEST

DEPARTMENT OF CORRECTIONS - CORRECTIONAL INDUSTRIES

FINANCIAL AUDIT

For the One Year Ended:

June 30, 2001

 

Release Date:
February 13, 2002

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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

 

INTRODUCTION

This is the financial audit of the Correctional Industries, a component of the adult division of the Illinois Department of Corrections. Correctional Industries operates manufacturing, service and agricultural industries within the adult correctional centers. Its purpose is to replicate a free world work environment to the greatest extent possible, while operating within a budget that does not exceed income, maximizing the number of inmate assignments, and providing customers quality goods and services at a competitive price.

Our audit was performed for the purpose of expressing an opinion on the financial statements of the Correctional Industries. In the forthcoming year, a compliance audit will be performed for the two years ending June 30, 2002.

AUDITORS' OPINION

Our auditors state that the financial statements for the Correctional Industries as of June 30, 2001 and for the year then ended are fairly presented in all material respects.

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JHL:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this engagement were Guthoff and Company, LTD.

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

ILLINOIS DEPARTMENT OF CORRECTIONS
CORRECTIONAL INDUSTRIES
FINANCIAL AUDIT
FOR THE PERIOD ENDED JUNE 30, 2001

OPERATING STATISTICS

FY 2001

FY 2000

FY 1999

    Net Sales

$49,752,177 $50,845,731 $50,220,253

Cost of Sales

41,541,553 41,182,481 39,912,042

Gross Profit

$8,210,624 $9,663,250 $10,308,211

Selling, General and Administrative Expenditures

7,101,401 5,592,951 5,028,501

Operating Income

$1,109,223 $4,070,299 $5,279,710

Other, Net

32,268 72,282 (16,744)

Net Income

$1,141,491 $4,142,581 $5,262,966

Beginning Retained Earnings

29,266,888 25,124,307 19,861,341
Ending Retained Earnings $30,408,379 $29,266,888 $25,124,307
SELECTED BALANCE SHEET ACCOUNTS, AS OF JUNE 30,

2001

2000

1999

Cash

$15,920,437

$15,120,860

$8,480,686

Accounts Receivable

$6,687,129

$6,891,720

$8,480,686

Inventories

$12,685,486

$12,824,518

$10,868,700

Property, Equipment and Livestock,
Net of Depreciation

$8,575,525

$8,229,490

$8,303,071

SELECTED ACTIVITY MEASURES

2001

2000

1999

  • Average Number of Inmate Workers
  • Number of Industries at June 30,

1,388
44

1,427
44

1,582
48

CORRECTIONAL INDUSTRIES' CHIEF ADMINISTRATIVE OFFICER
During Audit Period: Kenneth P. Dobucki
Currently: Kenneth P. Dobucki


State of Illinois
Department of Corrections - Correctional Industries
SCHEDULE OF AGENCY OPERATIONS BY INDUSTRY (UNAUDITED)
June 30, 2001

Industry Income (Loss) After
Overhead
Average # of  Inmate
Workers
Illinois River Bakery $ 190,322 181
Lincoln Asbestos Abatement       576,583 28
Logan Warehouse     (43,067) -
Logan Central Distribution     (555,629) -
Decatur Furniture     (126,413) 6
Decatur Sewing     (103,592) 16
Pana Warehouse     (489,595) 8
Jacksonville Modular Furniture Installation (546,100) 3
Jacksonville Telemarketing     (200,446) 3
Lincoln Ind. Garment       (53,441) 12
Vienna Garment       (16,714) 32
Centralia Dry Cleaning       (20,911) -
Centralia State Garage     (34,460) 6
Centralia Belts     12,398 1
Centralia Metal Furniture       (71,544) 7
Centralia Sewing       (113,224) 12
Graham Furniture       (88,137) 24
Graham State Garage     (4,917) 6
Graham Warehouse     (74,776) -
Dwight Garment     16,504 75
Dwight Helping Paws     (210,536) 10
Warrenville Helping Paws     (18,058) 7
Joliet Mattress 316,584 36
Joliet Dry Cleaning     (43,302) 4
Joliet Warehouse     (93,720) 15
Menard Broom & Wax     84,949 15
Menard Knit     344,974 50
Menard Farm Meat Processing     338,394 14
Menard Farm Waste Removal     384 7
Logan Refinishing  (210,490) 17
Logan Recycling (149,414) -
Pontiac Sign     (139,947) -
Sheridan Refinishing     (224,564) 44
Sheridan Garment Cutting     (148,064) 20
Stateville Furniture     208,006 21
Stateville Soap     247,012 12
Stateville Garment     (9,336) 100
Vandalia Farm Milk Processing      451,688 75
Vandalia Farm Meat Processing  86,312 30
E. Moline Laundry     (98,528) 55
E. Moline Recycling (129,060) 30
E. Moline Sewing     43,853 24
Danville Boxes     23,752 8
Danville Sportswear     (29,903) 30
Dixon Optical     874,912 94
Dixon Sewing     (120,059) 43
Hill Meat Processing         71,018 40
Hill Milk Processing       558,464 23
Western Illinois Food Processing      820,640 117
Shawnee Metal Furniture     (290,049) 27
TOTAL     808,753 1,388
Non Operating Revenue     332,738
GRAND TOTAL     $ 1,141,491


Note: Column totals on this schedule do not agree to amounts shown in the "Statement of Revenues, Expenses, and Changes in Retained Earnings" due to eliminations for intercompany transactions and other minor reclassifications that are not shown in this Schedule.