REPORT DIGEST

REPORT DIGEST

PERE MARQUETTE

YOUTH CENTER

LIMITED SCOPE

COMPLIANCE

ATTESTATION

EXAMINATION

For the Two Years Ended:

June 30, 2006

Summary of Findings:

Total this audit 5

Total last audit 1

Repeated from last audit 1

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 are also available on

the worldwide web at

http://www.auditor.illinois.gov

SYNOPSIS

¨ Bidding and procurement requirements were circumvented.

¨ Taxable fringe benefits related to personal use of a State vehicle was not calculated and reported.

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

ILLINOIS DEPARTMENT OF CORRECTIONS

ILLINOIS YOUTH CENTER - PERE MARQUETTE

LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

For The Two Years Ended June 30, 2006

EXPENDITURE STATISTICS

FY 2006

FY 2005

FY 2004

Total Expenditures (All Appropriated Funds)...

$3,395,281

$3,506,550

$3,452,337

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

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

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

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

Resident Compensation ..............................

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

$2,392,197

70.5%

$55,632

$12,237

0.4%

$2,360,532

67.3%

$53,648

$11,382

0.3%

$2,243,890

65.0%

$50,998

$14,830

0.4%

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

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

$394,506

11.6%

$538,694

15.4%

$472,027

13.7%

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

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

$404,836

11.9%

$388,162

11.1%

$385,026

11.2%

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

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

$191,505

5.6%

$207,780

5.9%

$336,564

9.7%

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

$2,461,812

$2,458,728

$2,514,663

SELECTED ACTIVITY MEASURES (not examined)	FY 2006	FY 2005	FY 2004
Average Number of Residents......................................	27	23	51
Ratio of Correctional Officers to Residents....................	1 to 1.1	1 to .9	1 to 2.0
Cost Per Year Per Resident..........................	$125,208	$152,459	$66,903
Rated Resident Population.................................................	68	68	68
Approximate Square Feet Per Resident..............................	106	140	59

CENTER WARDEN

During Audit Period: Karen McKinney

Currently: Karen McKinney

IGPS was not used to purchase food items

Contracts were not filed with the IOC.

No documentation of commuting cost for 2005 or 2006 was provided.

FINDINGS, CONCLUSIONS, AND

RECOMMENDATIONS

INADEQUATE PURCHASING PRACTICES

The Center circumvented the bidding and procurement requirements for commodities purchases. Total commodities expenditures for fiscal years 2005 and 2006 were $180,554 and $148,453, respectively. We noted the following:

· Center staff did not use the Illinois Governmental Purchasing System (IGPS) to purchase food items. Employees neither determined whether food items were already on contract with the State, nor prepared IGPS quarterly survey worksheets to report expected scheduled buying.

· Vendors were allowed to increases prices from the amounts informally bid.

· The Center purchased non-food commodities without obtaining proper bids for expenditures between $71 and $2,713 in 5 of 40 (13%) vouchers tested.

· Contracts with the seven vendors providing food items were not filed with the Illinois Office of the Comptroller (IOC) as required. (Finding 1, Pages 9-10)

We recommended that the Center institute procedures to verify competitive bidding and contracts are used when required. We also recommended the Center should submit quarterly survey worksheets for expected commodity purchases, obtain three bids for all non-contract purchases under $25,000, ensure the lowest vendor is used for all purchases and file all contracts above the set thresholds with the IOC.

Department staff responded that our recommendation has been implemented.

REPORTING PERSONAL USE OF STATE VEHICLE

The Center failed to calculate and report taxable fringe benefits related to personal use of a State vehicle.

For the two years ended June 30, 2006, only one Center employee was assigned a State vehicle and allowed personal use for commuting purposes. Based on results of testing, we observed documentation filed in December 2004 reporting $675 of annual commuting cost, but there was no evidence that the benefit was recorded in the payroll system as a taxable fringe benefit. No documentation of commuting cost for 2005 or 2006 was provided. (Finding 4, Pages 13-14)

We recommended the Center require employees assigned State vehicles to complete and file the required annual certification to ensure that amounts are properly reported to the Comptroller to allow for inclusion of the taxable income on the employee’s W-2.

Department staff responded that our recommendation has been implemented.

OTHER FINDINGS

The remaining findings were less significant and are reportedly being given attention by the Center. We will review the Center's progress towards implementing our recommendations during the next examination period.

AUDITORS' OPINION

We conducted a limited scope compliance examination of the Center as required by the Illinois State Auditing Act. Financial statements for the Department will be presented in a separate audit report.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JMO:pp

SPECIAL ASSISTANT AUDITORS

West & Company, LLC were our special assistant auditors for this engagement.