REPORT DIGEST

EAST MOLINE CORRECTIONAL CENTER

LIMITED SCOPE

COMPLIANCE ATTESTATION

EXAMINATION

For the Two Years Ended:

June 30, 2004

Summary of Findings:

Total this audit 1

Total last audit 0

Repeated from last audit 0

Release Date:

April 21, 2005

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

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

SYNOPSIS

¨ The Center failed to maintain proper administrative and accounting control relating to transactions in its locally held funds and employee compensation regarding overtime.

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

ILLINOIS DEPARTMENT OF CORRECTIONS

EAST MOLINE CORRECTIONAL CENTER

LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

For The Two Years Ended June 30, 2004

EXPENDITURE STATISTICS

FY 2004

FY 2003

FY 2002

! Total Expenditures (All Appropriated Funds)......

$21,465,518

$21,525,459

$21,998,590

Personal Services......................................................

% of Total Expenditures.........................................

$13,211,278

61.5%

$13,490,015

62.7%

$13,774,651

62.6%

Other Payroll Costs (FICA, Retirement).....................

% of Total Expenditures...................................

$2,815,084

13.1%

$3,095,357

14.4%

$3,136,535

14.2%

Average No. of Employees.................................

Average Salary Per Employee..................................

269

$49,113

261

$51,686

300

$45,915

Student, Member and Inmate Compensation.................

% of Total Expenditures..........................................

$299,622

1.4%

$302,600

1.4%

$286,114

1.3%

Contractual Services..................................................

% of Total Expenditures...................................

Commodities.....................................................

% of Total Expenditures

$3,353,036

15.6%

$1,451,366

6.8%

$2,908,257

13.5%

$1,475,483

6.8%

$2,789,947

12.7%

$1,673,569

7.6%

All Other Items..........................................................

% of Total Expenditures...................................

$335,132

1.6%

$253,747

1.2%

$367,774

1.6%

! Cost of Property and Equipment...........................

$43,183,835

$42,870,022

$42,679,694

SELECTED ACTIVITY MEASURES	FY 2004	FY 2003	FY 2002
! Average Number of Inmates.....................................	1,134	1,102	1,079
! Ratio of Correctional Officers to Inmates...................	1 / 5.8	1 / 5.7	1 / 5.1
! Cost Per Year Per Inmate.........................................	$18,832	$19,506	$20,322
! Rated Inmate Capacity..................................................	688	688	688
! Approximate Square Feet Per Inmate:	58	58	64

CENTER WARDEN(S)

During Audit Period: Gary Wyant (7-1-2002 to12-31-2002), Ian Oliver (1-1-2003 to 04-15-2003), Gene Jungwirth starting 04-16-2003

Currently: Gene Jungwirth

An employee received pay for unearned overtime and obtained money from the locally held funds

FINDING, CONCLUSION, AND

RECOMMENDATION

WEAKNESS IN INTERNAL CONTROL RELATING TO LOCALLY HELD FUNDS AND PAYROLL

During our testing we noted that an internal review conducted by the Department of Correction’s staff indicated an employee had apparently received compensation for unearned overtime and obtained money from the Center’s locally held funds. The Department and Center are pursuing legal action in regard to the issues noted with the employee.

As a result of the Department’s internal review of the issues at the Center the following procedures have been established:

· The person responsible for timekeeping has no access or authority to impact the payroll system.

· Overtime reports are reviewed twice monthly by the business administrator to identify potentially unreasonable amounts worked or paid.

· All disbursements from locally held funds require adequate supporting documentation that must be presented to the check signers.

· Reimbursements from the travel and allowance fund must have the proper forms signed by the inmate attached.

Internal controls should be sufficient to prevent unauthorized access to Center assets and systems and to identify when such controls have been breached. (Finding 1, pages 10 & 11)

We recommended the Center continue to establish and enforce administrative and accounting controls sufficient to deter and timely identify issues related to unauthorized access to systems or locally held funds.

Management officials indicated the recommendation has been implemented and that procedures have been put in place to address the issues identified. Further, all of the discrepancies were documented and submitted to the Illinois State Police for investigation and that the former employee was subsequently indicted.

Mary Ann Bohlen, Accounting Division Manager for the Department of Corrections, provided the response to our finding and recommendation.

AUDITORS’ OPINION

We conducted a limited scope compliance attestation examination 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 with our financial audit of the entire Department of Corrections. Financial statements for the Department will be presented in a separate report.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:RPU:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Duffner and Company, P.C.