FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS
PAYROLL PAYMENT ERRORS
The Center incorrectly calculated gross pay to three employees out of 90 we tested
resulting in a total net over payment of $1,227. One employee was paid for 22.5 hours of
compensatory time the employee was not entitled to, resulting in an overpayment of $379.
Another employee was paid for 8.75 days of compensatory time instead of 8.75 hours,
resulting in an overpayment of about $861. A third employee was not paid $13 in longevity
pay earned. (Finding 98-1, page 8)
We recommended the Center review the timekeeping and payroll process, having
supervisory personnel review unusual items, such as compensatory time. Further, the Center
should consider automating calculations for compensatory time, vacation, and sick leave.
The Center responded that the local timekeeping process will be reviewed and it will
implement supervisory approval for unusual items but that the decision to automate
functions cannot be made at the Center level.
OVERSTOCKED INVENTORY
The Center had $21,253 of overstocked inventory on hand at June 30, 1998. This
represented 6.4% of total inventory. At June 30, 1998, 52 different items were identified
that exceeded a one year supply on hand. Department directives state that current needs be
based on the previous 12 months usage. Prudent business practices require close monitoring
of inventory for surplus items. (Finding 98-3, page 10)
We recommended the Center review inventory on a quarterly basis and document reasons
why excess items should not be transferred to the surplus inventory list. The Agency
response stated the recommendation had been implemented.
VENDING CONTRACT NOT COMPETITIVELY BID
The Center awarded a vending contract for the employee benefit fund to a supplier
without obtaining other bids. The Center eliminated the employee commissary and replaced
it with a debit card vending system to eliminate the need for money inside the Center. A
vending supplier who was already doing business at the Center was the only supplier
contacted. The vendor agreed to provide the system and to give the employee benefit fund
10 percent of all monies received. We estimated annual sales to approach $58,500. We noted
that several vending companies were listed in the area phone book and that the last time
vending contracts were bid, the Center received three bids. (Finding 98-4, page 11)
We recommended the Center obtain competitive bids when awarding contracts for vending
at the Center. The Agency accepted the recommendation and stated the vending contract will
be bid when the current contract ends.
OTHER FINDING
The other finding was less significant. It dealt with improper allocation of lapse
period expenditures. We will review progress toward implementing all recommendations in
our next audit.
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 our single audit of the entire Department.
Financial statements for the Department of Corrections will be presented in the single
audit report.
____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:KMC:pp
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors for this audit were Scheffel & Company, P.C.
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