REPORT DIGEST PERE MARQUETTE YOUTH CENTER LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION For the Two Years Ended: June 30, 2008 Summary of Findings: Total this audit 3 Total last audit 5 Repeated from last audit 1 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 http://www.auditor.illinois.gov

SYNOPSIS ¨ The Center failed to comply with contract filing provisions for contractual services. ¨ The Center failed to exercise adequate controls over voucher processing. ¨ The Center failed to comply with the Department of Juvenile Justice’s Administrative Directive concerning Resident Benefit Fund review and approval of expenditures. {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, 2008

EXPENDITURE STATISTICS	FY 2008	FY 2007	FY 2006
Total Expenditures (All Appropriated Funds)......	$3,932,935	$3,710,258	$3,395,281
Personal Services............................................... % of Total Expenditures............................... No. of Employees....................................... Average Salary Per Employee..................... Resident Compensation ....................................... % of Total Expenditures....................................	$2,516,586 64% 38 $66,226 $9,612 0.3%	$2,519,411 67.9% 39 $64,600 $13,551 0.4%	$2,392,197 70.5% 43 $55,632 $12,237 0.4%
Other Payroll Costs (FICA, Retirement).............. % of Total Expenditures...............................	$603,165 15.3%	$479,665 12.9%	$394,506 11.6%
Contractual Services.......................................... % of Total Expenditures..............................	$634,772 16.1%	494,325 13.3%	$404,836 11.9%
All Other Items.................................................. % of Total Expenditures..............................	$168,800 4.3%	$203,306 5.5%	$191,505 5.6%
Cost of Property and Equipment........................	$2,516,506	$2,443,728	$2,461,812

SELECTED ACTIVITY MEASURES (not examined)	FY 2008	FY 2007	FY 2006
Average Number of Youth........................................	20	20	27
Ratio of Correctional Officers to Youth......................	1 to 1.0	1 to 1.0	1 to 1.1
Cost Per Year Per Youth..........................................	$196,496	$185,016	$125,208
Rated Youth Population...............................................	68	68	68
Approximate Square Feet Per Youth.........................	154	162	106

CENTER WARDEN

During Examination Period: Karen McKinney

Currently: Karen McKinney

Contracts were not filed with the State Comptroller Failure to exercise adequate controls over voucher processing Failed to comply with Administrative Directive

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS NONCOMPLIANCE WITH PROFESSIONAL SERVICE CONTRACT REQUIREMENTS The Center failed to comply with contract filing provisions for contractual services as required by the Illinois Procurement Code and Statewide Accounting Management System (SAMS) procedures. Testing of contractual expenditures disclosed a vendor was paid $7,305 for professional services in fiscal year 2008 and $9,295 in fiscal year 2007, but the terms were not reduced to writing, filed with the Comptroller, or individually obligated on SAMS. (Finding 1, Page 10) We recommended that the Center implement procedures to ensure contracts were properly established and filed when anticipated expenditures reach statutorily defined contract thresholds, and the Center should exercise diligence in identifying vendors and anticipating expenditures that meet such criteria. Department staff responded that our recommendation has been implemented. VOUCHER PROCESSING WEAKNESSES The Center failed to exercise adequate controls over voucher processing. We noted the following: · 20 of 50 (40%) vouchers tested totaling $89,641 were not approved or denied for payment within 30 days following receipt of a proper invoice. · Interest of $785 payable on 4 of 50 (8%) vouchers tested totaling $38,348 was not paid. · Errors contained in invoices related to 2 of 50 (4%) vouchers tested totaling $9,402 were not detected by Center personnel. (Finding 2, Pages 11-12). We recommended the Center exercise greater diligence in the review and processing of vouchers to facilitate timely vendor payments as well as compliance with Illinois Administrative Code, Illinois statutes, and SAMS requirements. Department staff accepted our recommendation. NONCOMPLIANCE WITH ADMINISTRATIVE DIRECTIVE – RESIDENT BENEFIT FUND The Center failed to comply with the Department of Juvenile Justice’s Administrative Directive concerning Resident Benefit Fund review and approval of expenditures. We noted the following: · We identified evidence of two expenditures in fiscal year 2008 totaling $5,000 for the purchase of gift cards with a retailer. The Center provided a summary of purchases made with the gift cards from December 2, 2007 to March 31, 2008 which identified $1,931 of purchases, but receipts were available for only $621 of purchases. The purchases totaling $621 were accompanied by expenditure request forms, but each was prepared after the underlying purchases were made, and only 3 of 4 contained signatures of all Resident Benefit Fund committee members. · For fiscal year 2008, 8 of 9 (89%) requests totaling $7,245 lacked either some or all of the required committee members’ signatures. · For fiscal year 2007, the Center was unable to locate any records documenting expenditures and related approvals. (Finding 3, Pages 13-14) We recommended the Center strengthen controls over benefit fund expenditures by ensuring the committee follows protocol established in the Administrative Directive concerning expenditure approvals. Additionally, the Center should reevaluate the appropriateness of utilizing retailer gift cards for routine, recurring purchases due to the increased possibility for misuse or circumvention of the proper approval process for underlying purchases. Complete records of all transactions should be maintained in an orderly manner and in accordance with established records retention policies. Department staff accepted our recommendation. 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:ACN:pp SPECIAL ASSISTANT AUDITORS West & Company, LLC were our special assistant auditors for this engagement.