FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
NO VENDING MACHINE CONTRACT
In fiscal year 1999 the Center decided to discontinue its employee commissary
operation and convert to a debit card vending machine operation for the use of its
employees. A vending supplier already doing business with the Center was used as the
exclusive supplier without competitive bids being received from other suppliers. The
existing vending supplier had an agreement with the Center for the vending machines in the
visitor’s room. This agreement was not modified to encompass the vending machines
that replaced the employee commissary. The vending supplier verbally agreed to remit to
the Center’s Employee Benefit Fund 10% of the cash that is deposited on the debit
cards.
Based on the funds deposited in the Employee Benefit Fund being 10% of cash collected,
sales would approximate $68,340 for fiscal year 2000 and $4,680 for fiscal year 1999. The
Illinois Procurement Code notes all contracts shall be awarded by competitive sealed
bidding, unless it is for supplies or services other than professional artistic services
not exceeding $25,000. In addition, good business practice dictates that all contracts be
reduced to writing to ensure all parties are aware of their responsibilities and
obligations. (Finding 2, pages 11-12)
We recommended the Center follow the Procurement Code and obtain the vending
machine service through a competitive process, and upon selection of the successful vendor
reduce the agreement to writing.
The Center partially accepted our recommendation and indicated it is currently waiting
for direction from the General Office on prospective handling of vending machine
operations. The placement of the employee vending machines was viewed as an add-on of the
existing vending machine contract, which had been bid.
OTHER FINDINGS
The remaining findings were less significant and are being given attention by
Center management. We will review the Center’s progress toward implementation of our
recommendations in our next audit.
Mr. Mark Krell, Chief Internal Auditor for the Department of Corrections provided the
Center’s responses.
AUDITORS’ 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 in our financial audit of the entire
Department. Financial statements for the Department of Corrections will be presented in
the General Office audit report.
_____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:RPU:pp
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors for this audit were Hill Taylor LLC.
