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Inventories were not orderly stored, timely recorded, or properly reconciled
Equipment transactions were not recorded timely and accurately
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INTRODUCTION
The Decatur Correctional Center (Center) is a medium security facility
established to address the growing population of incarcerated females in the State of
Illinois. The Center received its first appropriations in Fiscal Year 1999 and received
its first inmates in January 2000. This is our first audit of the Center.
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
INADEQUATE CONTROLS OVER COMMODITIES INVENTORY
The Center did not maintain adequate controls over commodity inventories. We noted
the following:
- Center personnel did not conduct inventory test counts or reconciliations until late
FY00.
- The Center’s final perpetual inventory records for FY00 did not agree to physical
inventory counts at June 30 for 39 (28%) of 139 items tested.
- Commodities totaling $9,589 were received June 30, 2000 but were not recorded on
inventory records until the subsequent fiscal year.
- The Center’s inventories were not arranged in an orderly manner to facilitate an
accurate count.
We recommended the Center perform an annual inventory, apply proper year-end inventory
procedures, and ensure that commodities are stored in an organized manner to facilitate
accurate inventories. (Finding 00-1, pages 9-10)
Center officials stated our recommendations have been implemented.
PROPERTY CONTROL WEAKNESSES
The Center did not maintain sufficient controls over the purchase, recording,
reporting, and disposition of fixed assets. We noted the following exceptions:
- The Center did not file surplus furniture affidavits with the State surplus
administrator prior to significant purchases of new furniture.
- Ten equipment additions totaling $43,369 were recorded on property records up to six
months after physical receipt.
- Equipment transfers totaling $2,370 in FY99 and $352,994 in FY00 were erroneously
reported as additions on Quarterly Fixed Asset Reports.
- One of four (25%) equipment transfers were approved and removed from the Center’s
property records five months late.
We recommended that Center personnel determine the availability of surplus furniture
and file necessary affidavits prior to the purchase of new furniture. We also recommended
staff ensure all property additions and transfers are timely approved and recorded, and
accurately reported. (Finding 00-2, pages 11-12)
Center officials accepted our recommendations and stated adequately trained accounting
staff are now on board so that all property transactions are handled accurately and
timely.
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.
AUDITOR’S 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.
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