REPORT DIGEST

ILLINOIS YOUTH CENTER - JOLIET

LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

For the Two Years Ended:

June 30, 2004

Summary of Findings:

Total this audit                        5

Total last audit                        2

Repeated from last audit         1

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 had inadequate internal controls over locally held funds.

¨      The Center did not maintain proper internal controls over property.

¨      The Center did not properly account for the commissions they received from inmate  commissary orders.

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

EXPENDITURE STATISTICS

FY  2004

FY 2003

FY 2002

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

$15,471,348

$16,454,429

$16,090,770

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

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

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

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

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

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

$10,747,835

69.5%

227

$47,347

$49,091

0.3%

$11,405,485

69.3%

241

$47,326

$48,781

0.3%

$11,175,085

69.5%

259

$43,147

$53,967

0.3%

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

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

$2,298,056

14.8%

$2,630,009

16.0%

$2,534,281

15.8%

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

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

$1,710,311

11.1%

$1,715,973

10.4%

$1,638,192

10.1%

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

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

$666,055

4.3%

$654,181

4.0%

$689,245

4.3%

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

$29,638,613

$30,075,759

$29,436,037

SELECTED ACTIVITY MEASURES

FY 2004

FY 2003

FY 2002

!. Average Number of Inmates...........................

304

292

304

!. Ratio of Correctional Officers to Inmates........

1 / 1.78

1 / 1.59

1 / 1.63

!. Cost Per Year Per Inmate..............................

$50,704

$56,351

$52,930

!. Rated Resident Capacity.....................................

344

344

294

!. Approximate Square Feet Per Inmate..................

37

41

44

CENTER WARDEN(S)

     During Audit Period:  Gerald Buscher

     Current:  John Rita, Jr.

The Center had inadequate internal controls over locally held funds

125 items valued at $86,001 that had  been missing for more than six months had not been removed from the property records

Commissions were not  transferred

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

NEED TO IMPROVE INTERNAL CONTROLS OVER LOCALLY HELD FUNDS                                            

     The Center had inadequate internal controls over locally held funds.                                      

      The Center maintains four locally held funds.  During our examination we noted:

·        Inadequate segregation of duties.  The individual designated to write checks was also responsible for mailing checks.                                                                     

·        The Center did not perform monthly reconciliations of cashier receipts issued during the month to deposits received by the bank.                                                                              

·        Six receipts accounting for $11,366 (12%) did not have proper supporting documentation.                                   

·        Eight receipts accounting for $8,948 (9%) were not deposited timely.

·        Three receipts for $850 (1%) were coded to the wrong account.

·        Eight disbursements accounting for $13,122 (18%) did not have proper supporting documentation.

·        Four disbursements accounting for $1,319 (2%) did not have proper approval. (Finding 2, pages 12-13)

     Center officials accepted our recommendations to implement procedures to ensure that there is adequate segregation of duties, monthly reconciliations of cashier receipts, and that receipts and disbursements are processed properly.

INADEQUATE INTERNAL CONTROLS OVER FIXED ASSETS AND EQUIPMENT

      The Center did not maintain proper internal controls over property. 

            During our examination we noted the following:

·        Three of 25 property items (12%) were not tagged.  These untagged items accounted for $5,736 (6%) of the total sample tested of $97,248.

·        Ten (50%) of twenty property deletions tested did not have proper approval signatures.  These ten deletions accounted for $4,297 (1%) of the total sample tested of $443,706.

·        125 items valued at $86,001 that had been missing for more than six months had not been removed from the Center’s property records. (Finding 3, pages 14-15)  This finding was first reported in 2000.

Center officials accepted our recommendation to enhance controls over property and equipment to ensure proper accountability.  The Center’s response stated that requests to delete were submitted prior to the end of the audit for the missing items.  During the annual certification in January 2005, all tagged items will be verified and missing tags replaced. (For previous agency response, see Digest Footnote #1.)

IMPROPER ACCOUNTING OF INMATE COMMISSARY PROFITS

      The Center did not properly account for the commissions they received from Inmate commissary orders.

      The Center receives a 25% commission on the orders placed with the outside vendor.  For the period from January 1, 2004 through June 30,2004, the Center placed commissary orders of $47,423 which resulted in commissions of $11,856.  No portion of the commissions was transferred to the Illinois Department of Corrections 523 Fund, which is generally used to compensate commissary employees.  In addition, only $2,481 of the required $7,114 in commissions due to the 523 Fund was accrued as a liability.  The Center is required to transfer sixty percent of the commissary profits to the 523 Fund to pay for wages and benefits of commissary employees. (Finding 5, page 17)

      The Center response stated that our recommendation to make the required transfers to the Illinois Department of Corrections 523 Fund to ensure compliance with State statutes was implemented prior to the end of audit field work.

OTHER FINDINGS

       The remaining two findings dealt with inadequate trust fund procedures and payroll vouchers not properly reviewed and approved.  We will review the Center’s progress toward implementation of all recommendations in our next compliance examination.

AUDITOR’S 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 that also included performing certain agreed-upon procedures with respect to the accounting records of the Center to assist our audit of the entire Department of Corrections.  Financial statements for the entire Department will be presented in that report.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KMC:drh

SPECIAL ASSISTANT AUDITORS

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