REPORT DIGEST DIXON CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION For the Two Years Ended: June 30, 2008 Summary of Findings: Total this audit 4 Total last audit 2 Repeated from last audit 0 Release Date: August 6, 2009 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 TTY (888) 261-2887 This Report Digest and the Full Report are also available on the worldwide web at http://www.auditor.illinois.gov

SYNOPSIS ¨ The Center did not have an adequate segregation of duties in the General Stores and Inmate Commissary operations. ¨ The Center did not have a Health Care Administrator to monitor the medical service contract. ¨ The Center did not record commissary goods received by the end of the year in inventory or accounts payable at June 30, 2008. ¨ The Center did not maintain documentation to support the value of inventory for Fiscal Year 2008. {Financial Information and Activity Measures are summarized on the reverse page.}

ILLINOIS DEPARTMENT OF CORRECTIONS

DIXON CORRECTIONAL CENTER

LIMITED SCOPE COMPLIANCE ATTESTATION ENGAGEMENT

For The Two Years Ended June 30, 2008

EXPENDITURE STATISTICS	FY 2008	FY 2007		FY 2006
Total Expenditures (All Appropriated Funds)	$ 53,253,365	$ 48,857,363		$ 48,054,634
Personal Services............................................ % of Total Expenditures.......................... Average No. of Employees..................... Average Salary Per Employee................. Student, Member and Inmate Compensation.......... % of Total Expenditures..................................	$ 31,504,167 59.2% 493 $ 63,903 $ 332,420 0.6%	$ 29,060,223 59.5% 519 $ 55,993 $ 359,923 0.7%		$ 28,181,721 58.6% 547 $ 1,521 $ 362,044 0.8%
Other Payroll Costs (FICA, Retirement)........... % of Total Expenditures..........................	$ 7,552,536 14.2%	$ 5,497,109 11.3%		$ 4,641,778 9.7%
Contractual Services........................................ % of Total Expenditures.......................... Commodities……………………………….... % of Total Expenditures…………….....	$ 10,770,687 20.2% $ 2,679,236 5.0%	$ 10,975,132 22.5% $ 2,556,321 5.2%		$ 12,042,195 25.1% $ 2,476,366 5.1%
All Other Items............................................... % of Total Expenditures..........................	$ 414,319 0.8%	$ 408,655 0.8%		$ 350,530 0.7%
Cost of Property and Equipment..................	$106,476,929	$104,531,333		$104,417,809
SELECTED ACTIVITY MEASURES (NOT EXAMINED)	FY 2008		FY 2007		FY 2006
.... Average Number of Inmates.............................	2,108		2,189		2,186
.... Ratio of Correctional Officers to Inmates..........	1/5.7		1/5.5		1 / 5.3
.... Cost Per Year Per Inmate...............................	$25,253		$22,318		$21,977
.... Rated Resident Capacity.....................................	1,430		1,430		1,430
.... Approximate Square Feet Per Inmate..................	24		23		23
CENTER WARDEN(S)
During Audit Period: Nedra Chandler Currently: Nedra Chandler

Inadequate segregation of duties in the General Stores and Inmate Commissary operations The Center did not have a Health Care Administrator to monitor the medical service contract $122,450 in goods received were not included in the final inventory Failure to maintain documentation to support the value of inventory for Fiscal Year 2008

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS NEED TO IMPROVE INTERNAL CONTROLS There is a lack of segregation of duties in the General Stores and Inmate Commissary. A supervisor who works at the General Stores and Inmate Commissary orders, receives and also sells the goods. Of the eight supply supervisor positions approved, four positions are vacant. The four staff members working are responsible for all the ordering, receiving, and maintaining the operations at the General Store, Clothing Store, the Inmate Commissary in the General population, the Inmate Commissary in the Special Treatment Center, and the Employee Commissary. The Central Office System Description states that the purchase function should be separate from the receiving function. (Finding 1, page 9) Department officials accepted our recommendation to ensure proper segregation of duties and stated the Center is making every effort to ensure separation of duties. INADEQUATE CONTRACT MONITORING The Center does not have a Health Care Administrator to monitor the medical service contract at the Center. The Center contract for medical services to the inmates includes certified nurses; physicians; lab technicians; medical director; optometry; pharmacy; physical therapy; psychiatrist; psychologists, and radiology. Fiscal year 2008 expenditures were $8,034,487 and fiscal year 2007 expenditures were $7,458,232. The Center has been operating without a Health Care Administrator and Nursing Supervisors since August 2007. The Health Care Administrator position is responsible for supervising the operation and activities of the Health Care Unit at the Center, which would include providing oversight of the contractual employees. (Finding 2, page 10) We recommended the Center follow the Administrative Directive over contract monitoring. Department officials stated the facility has implemented the recommendation and added compensating controls to ensure monitoring of the contract. NEED TO RECORD COMMISSARY INVENTORY The Center did not record commissary goods received by the end of the year in inventory or accounts payable as of June 30, 2008. A total of $122,450 in commissary goods received were not included in the final inventory and accounts payable as of June 30, 2008. Center management stated that due to operational needs, they are unable to receive and record inventory immediately upon receipt of the commissary goods. (Finding 3, page 11) Department officials accepted our recommendation to record inventory when received. LACK OF SUPPORTING DOCUMENTATION FOR CENTER INVENTORY The Center did not maintain documentation to support the value of inventory for Fiscal Year 2008. The Center was unable to provide the final inventory report, physical count adjustment report and explanation for inventory variances for Fiscal Year 2008. (Finding 4, page 12) We recommended the Center establish procedures to ensure that all inventory reports are properly maintained. Department officials stated the facility has controls in place to ensure documentation is retained and that the exceptions noted were directly due to staff retirements and vacancies. AUDITORS’ OPINION We conducted a compliance attestation examination of the Center as required by the Illinois State Auditing Act. Financial statements for the entire Department will be presented in the Central Office report. _____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:KMC:drh SPECIAL ASSISTANT AUDITORS Our special assistant auditors for this engagement were McGreal & Company, P.C.