REPORT DIGEST

DEPARTMENT OF CORRECTIONS

ILLINOIS YOUTH CENTER - JOLIET

LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

For the Two Years Ended:

June 30, 2006

Summary of Findings:

Total this audit 4

Total last audit 5

Repeated from last audit 2

Release Date:

June 20, 2007

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 is also available on the worldwide web at http://www.auditor.illinois.gov

SYNOPSIS

¨ The Center had inadequate internal controls over locally held funds.

¨ The Center did not maintain a perpetual inventory system as required by the Illinois Department of Corrections.

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

ILLINOIS DEPARTMENT OF CORRECTIONS

ILLINOIS YOUTH CENTER - JOLIET

LIMITED SCOPE COMPLIANCE ATTESTATION ENGAGEMENT

For The Two Years Ended June 30, 2006

EXPENDITURE STATISTICS

FY 2006

FY 2005

FY 2004

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

$14,754,949

$15,589,187

$15,471,348

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

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

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

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

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

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

$10,682,016

72.4%

201

$53,144

$14,580

0.1%

$10,830,763

69.5%

212

$51,089

$39,441

0.2%

$10,747,835

69.5%

227

$47,347

$49,091

0.3%

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

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

$1,760,350

11.9%

$2,480,050

16.0%

$2,298,056

14.8%

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

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

$1,850,582

12.6%

$1,735,073

11.1%

$1,710,311

11.1%

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

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

$447,421

3.0%

$503,860

3.2%

$666,055

4.3%

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

$29,568,610

$29,571,327

$29,638,613

SELECTED ACTIVITY MEASURES (Not Examined)	FY 2006	FY 2005	FY 2004
· Average Number of Inmates...........................	250	260	304
· Ratio of Correctional Officers to Inmates........	1 / 1.66	1 / 1.64	1 / 1.78
· Cost Per Year Per Inmate.............................	$58,921	$59,958	$50,704
· Rated Resident Capacity...................................	344	344	344
· Approximate Square Feet Per Inmate................	54	62	37

CENTER WARDEN(S)

During Audit Period: John Rita, Acting (7/1/04 – 6/30/05)

Larry Peterson (7/1/05 – 6/30/06)

Current: Larry Peterson

Problems with reconciliations

Untimely deposits

Documentation issues

The Center did not use an automated inventory management system

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

INADEQUATE 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:

· Of 78 reconciliations tested, 14 (18%) did not contain evidence that the reconciliation was reviewed and approved by Center Management. Thirty nine reconciliations (50%) did not contain monthly reconciliations of cashier receipts issued during the month to deposits received by the bank.

· Of 52 receipts tested totaling $46,976, twelve (23%) receipts accounting for $18,211 (38%) were not deposited timely. These receipts were deposited between 1 and 28 days late.

· Of 69 disbursements tested totaling $41,543, two (3%) disbursements accounting for $350 did not have proper supporting documentation such as vendor invoices. One disbursement (1%) accounting for $4,814 did not agree to the supporting documentation. (Finding 2, pages 11- 12)

We recommended that the Center implement appropriate procedures to ensure that: 1)reconciliations were reviewed and approved; 2)cash receipts were reconciled to bank deposits; 3) receipts were deposited timely, and 4) supporting documentation was maintained and reconciled to disbursements.

Department officials accepted our recommendations and stated the facility will make every effort to comply with the Administrative Directive and statutory requirements.

PERPETUAL INVENTORY SYSTEM NOT MAINTAINED

The Center did not maintain a perpetual inventory system as required by the Illinois Department of Corrections Administrative Directives.

For 18 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 December 2004, 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, 2006, they had not yet started using TIMS. The Center maintained a manual inventory system where quantities received, quantities issued and a balance were recorded for each item on individual inventory cards. These cards did not indicate unit prices, total costs or calculate a weighted-average cost. (Finding 3, page 13)

We recommended the Center start using an inventory management system to ensure that the inventory is properly tracked, priced and reported.

Department officials accepted our recommendation and stated the Department is currently in the process of implementing a real time inventory system. The new system will address the issues noted in the audit.

OTHER FINDINGS

The remaining two findings dealt with inadequate trust fund procedures and inaccurate fixed asset reporting. 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 audit 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 examination were De Raimo Hillger & Ripp.