REPORT DIGEST

REPORT DIGEST

DEPARTMENT OF JUVENILE JUSTICE

ILLINOIS YOUTH CENTER - CHICAGO

LIMITED SCOPE COMPLIANCE

ATTESTATION

EXAMINATION

For the Two Years Ended:

June 30, 2008

Summary of Findings:

Total this audit 2

Total last audit 0

Repeated from last audit 0

Release Date:

September 8, 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

Iles Park Plaza

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

www.auditor.illinois.gov

SYNOPSIS

· Center payroll records did not contain evidence that vouchers were reviewed and approved by management.

· The Center did not maintain a perpetual inventory system as required which is a material internal control weakness.

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

ILLINOIS DEPARTMENT OF JUVENILE JUSTICE

ILLINOIS YOUTH CENTER-CHICAGO

LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

For The Two Years Ended June 30, 2008

EXPENDITURE STATISTICS

FY 2008

FY 2007

FY 2006

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

$8,117,774

$7,788,726

$7,555,194

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

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

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

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

Student, Member and Inmate Compensation....

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

$4,226,419

52.1%

$57,114

$9,802

0.1%

$4,229,419

54.3%

$54,928

$10,266

0.1%

$4,134,323

54.7%

$48,074

$10,037

0.1%

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

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

$1,015,087

12.5%

$802,700

10.3%

$682,756

9.0%

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

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

$2,506,477

30.9%

$2,446,470

31.4%

$2,449,913

32.5%

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

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

$359,989

4.4%

$299,871

3.9%

$278,165

3.7%

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

$911,908

$819,280

$818,579

SELECTED ACTIVITY MEASURES (Not Examined)	FY 2008	FY 2007	FY 2006
.... Average Number of Youths............................	81	87	92
.... Ratio of Correctional Officers to Youths.........	1 / 1.3	1 / 1.4	1 /1.4
.... Cost Per Year Per Youth..............................	$100,219	$89,385	$81,924
.... Rated Resident Capacity................................	130	130	130
.... Approximate Square Feet Per Youth................	98	93	96

CENTER SUPERINTENDENT(S)

During Audit Period: James Kelly Jr. (7/1/06 to 11/30/06); James Jackson (Acting 12/1/06 to 12/31/07); Ralph W. Harris (1/1/08 to Current)

Current: Ralph W. Harris

Six of 12 vouchers tested
(50%) showed no evidence
of approval by the Center’s management prior to
payment

Illinois Youth Center –
Chicago did not maintain
a perpetual inventory
system as required by the Department, which is a material internal control weakness

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NO DOCUMENTATION OF APPROVAL OF PAYROLL VOUCHERS

The Illinois Youth Center – Chicago (Center) payroll records did not contain evidence that the payroll vouchers were reviewed and approved by Center management.

Six of 12 (50%) vouchers tested showed no evidence of approval by the Center’s management prior to payment. These vouchers totaled $1,036,377. (Finding 1, page 10)

Department officials agreed with our recommendation that payroll vouchers be properly reviewed and approved in a timely manner by a Center official who is independent of payroll preparation. Department officials stated the recommendation was implemented.

PERPETUAL INVENTORY SYSTEM NOT MAINTAINED

The Illinois Youth Center – Chicago (Center) did not maintain a perpetual inventory system as required by Department Administrative Directives, which is a material internal control weakness over compliance.

For 22 months during the examination period, the Center did not use an automated inventory management system to track commodity items received and issued at the Center. As of August, 2006, the Center stopped using the Automated Inventory Management System (AIMS). The Center anticipated they would begin using a replacement system, the Inventory Management System (TIMS). However, as of June 30, 2008, Center staff had not yet been trained to use TIMS. (Finding 2, page 11)

We recommended the Center begin using an inventory management system to ensure that inventory is properly tracked, priced and reported. Department officials accepted our recommendation stating that the Agency will work to implement the system at the facility.

AUDITORS’ OPINION

We conducted a compliance attestation examination of the Center as required by the Illinois State Auditing Act. This was a limited scope compliance examination. Financial information for the Center will be presented in the Department of Juvenile Justice – General Office audit report, which includes financial statements for the entire Department.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KMC:drh

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were De Raimo Hillger & Associates.