REPORT DIGEST

JOHN A. GRAHAM

CORRECTIONAL CENTER

LIMITED SCOPE

COMPLIANCE ATTESTATION EXAMINATION

For the Two Years Ended:

June 30, 2006

Summary of Findings:

Total this report                      2

Total last report                      0

Repeated from last report       0

Release Date:

June 20, 2007

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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Office of the Auditor General

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740 E. Ash Street

Springfield, IL 62703

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

This Report Digest and Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

SYNOPSIS

·        The Center failed to comply with the Department’s Administrative Directive for benefit fund committee requirements and expenditure approvals.

·        The Center’s commodities inventory procedures were not in accordance with the Department’s Administrative Directives and were insufficient to ensure the proper accounting and reporting of inventory.

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

EXPENDITURE STATISTICS

FY 2006

FY 2005

FY 2004

Total Expenditures (All Appropriated Funds)

$34,691,675

$37,181,273

$35,286,783

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

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

                Average Number of Employees......

                Average Salary Per Employee......

  $21,931,261

          63.22%

                411

      $53,361

$22,954,542

             61.74%

                   428 $53,632

$21,477,526

             60.87%

                  418

            $51,382

          Student, Member and Inmate Compensation

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

$265,489

            0.77%

$272,654

               0.73%

$281,209

               0.79%

             Other Payroll Costs (FICA, Retirement)

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

$3,620,367

          10.44%

$5,236,057

             14.08%

$4,568,703

             12.95%

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

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

$6,487,558           18.70%

$6,165,405

             16.58%

$5,967,270

             16.91%

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

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

              All Other Items………………

                   % of Total Expenditures……

$2,181,848

            6.29%

       $205,152

            0.58%

$2,349,221

              6.32%

           $203,394

               0.55%

        $2,665,098

               7.55%

           $326,977

               0.93%

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

$39,543,997

$39,579,141

$39,493,970

SELECTED ACTIVITY MEASURES (NOT EXAMINED)

FY 2006

FY 2005

FY 2004

  Average Number of Inmates……………

  Ratio of Correctional Officers to Inmates

  Cost Per Year Per Inmate….……………..

  Rated Inmate Capacity....................................

  Approximate Square Feet Per Inmate…………

1,930

1 / 6.1

$17,957

1,174

27

1,905

1 / 5.8

$19,518

1,174

27

1,920

1 / 5.9

$18,319

1,174

26

CENTER WARDEN

During Examination Period:  Mr. Steven Bryant

Currently:  Mr. Steven Bryant

Committees failed to conduct meetings or prepare minutes

The Center relied upon verbal approval by the Chief Administrative Officer

Monthly test counts not performed

Reconciliations not performed

Inventory transactions not entered into system timely

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

FAILURE TO CONDUCT BENEFIT FUND

COMMITTEE MEETINGS

      The Center failed to comply with the Department’s Administrative Directive for benefit fund committee requirements and expenditure approvals.

      Based on our review of the Inmate Benefit and Employee Benefit funds, we noted the following weaknesses:

• Committees failed to conduct meetings or prepare minutes after March 2005 (Employee Benefit Fund) and June 2005 (Inmate Benefit Fund), and

• After March and June 2005, the Center relied upon verbal approval by the Chief Administrative Officer for benefit fund expenditures.

      Total expenditures from the Employee Benefit Fund for fiscal years 2005 and 2006 were $19,003 and $18,069, respectively. Total expenditures from the Inmate Benefit Fund for fiscal years 2005 and 2006 were $172,770 and $184,394, respectively.  (Finding 1, Pages 9-10)

      We recommended that the Center strengthen controls over benefit fund expenditures by ensuring that appointed committees conduct meetings to review and approve all proposed expenditures and document such approvals in the minutes of the meetings as prescribed by the Administrative Directive.

      Center officials stated our recommendation has been implemented.

NEED TO IMPROVE INVENTORY PROCEDURES

      The Center’s commodities inventory procedures were not in accordance with the Department’s Administrative Directives and were insufficient to ensure the proper accounting and reporting of inventory.

      We noted the following weaknesses during inquiries of inventory procedures over commodities for the two years ended June 30, 2006:

• The Center failed to perform monthly test counts as required by Administrative Directive,

• The Center failed to perform reconciliations of Automated Inventory Management System (AIMS) reports to the Center’s general ledger and invoice journal, and

• The Center did not timely enter inventory transactions into the inventory system.

      Total commodities on hand as of June 30, 2005 and 2006 as reported by the Center’s perpetual inventory records were $369,820 and $247,415, respectively.  (Finding 2, Pages 11-12)

      We recommended that the Center comply with the Department’s Administrative Directives and institute procedures to strengthen controls over inventory procedures and related data processing.  The Center should allocate sufficient and adequately trained staff to properly maintain a perpetual inventory to ensure that inventory records reconcile to the accounting records.

      Center officials accepted our recommendation.

AUDITORS’ OPINION

We conducted a compliance examination of the Department 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 examination of the entire Department.  Financial statements for the Department will be presented in that report.

___________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:CD:pp

ASSIGNED AUDITORS

      Our special assistant auditors were West & Company, LLC.