REPORT DIGEST

DEPARTMENT OF
CORRECTIONS -
CORRECTIONAL
INDUSTRIES

FINANCIAL AUDIT
For the One Year Ended:
June 30, 1999







Release Date:
March 15, 2000


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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. A compliance audit will be performed for the two years ending June 30, 2000.

 

AUDITOR’S OPINION

Our auditors state that the June 30, 1999 financial statements for the Correctional Industries 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 & Company, LTD.

 

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










ILLINOIS DEPARTMENT OF CORRECTIONS
CORRECTIONAL INDUSTRIES
FINANCIAL AND COMPLIANCE AUDIT
FOR THE PERIOD ENDED JUNE 30, 1999

OPERATING STATISTICS

FY 1999

FY 1998

FY 1997

Net Sales

$50,220,253 $45,513,651 $42,648,751

Cost of Sales

39,912,042 36,623,758 35,822,557

Gross Profit

$10,308,211 $8,889,893 $6,826,194

Selling, General and
   Administrative Expenditures


5,028,501

5,092,224

4,955,137

Operating Profit (Loss)

$5,279,710 $3,797,669 $1,871,057

Other, Net

(16,744) 28,264 37,923

Net Income (Loss)

$5,262,966 $3,825,933 $1,908,980

Beginning Retained Earnings

19,861,341 16,035,408 14,126,428
          Ending Retained Earnings

* As restated

$25,124,307 $19,861,341 $16,035,408
SELECTED BALANCE SHEET ACCOUNTS,
   AS OF JUNE 30

1999

1998

1997
Accounts Receivable

$8,480,686

$7,721,951

$5,416,123

Inventories

$10,868,700

$11,523,738

$10,065,511

Property, Equipment and Livestock,
   Net of Depreciation


$8,303,071


$8,489,476


$8,439,205

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