FINDINGS AND CONCLUSIONS, AND
RECOMMENDATIONS
UNAUTHORIZED PURCHASES AND THEFT OF STATE PROPERTY
As a result of a Department of Corrections investigation, four employees at St.
Charles were either suspended or terminated due to unauthorized purchases with State
funds, theft of equipment, work performed on private business activities on State time, or
concealment of unauthorized purchases.
In December 1996, the Superintendent of the Youth Center - St. Charles became aware of
allegations that an employee operated a lawn maintenance service while on State time and
used State funds to purchase and repair lawn maintenance equipment. In response to the
Superintendent's request, the Department assigned an investigator and an internal auditor
to review the allegations.
According to Department records, as a result of the investigation, the Department
found:
- unauthorized purchases with State funds and theft of lawn maintenance equipment with a
value of at least $3,325;
- three facility employees worked for the private lawn business on State time;
- an office/clerical worker assisted in preparation of paper work to conceal unauthorized
expenditures;
- another employee picked up the equipment and signed vendor documents indicating State
receipt of repaired equipment.
According to Department documents, the investigation determined that the purchases were
disguised as repairs; when employees purchased the equipment the vendor invoice indicated
repairs of equipment. Based on review of vendor documents and State documents, the
investigators determined that at least 10 items, such as power saws and hedge trimmers,
were actually purchases although invoices indicated repairs.
Based on the results of the investigation, the Superintendent at St. Charles took the
following disciplinary actions:
- two employees were discharged;
- two employees were suspended for 29 days without pay;
- one employee was counseled.
Further, the Department referred the matter to the Kane County State's Attorney's
Office. As of the end of our fieldwork, one employee had pled guilty to theft of State
property, but efforts to obtain restitution had not yet been resolved.
The causes for these occurrences included a lack of proper supervision of employees and
inadequate controls over expenditures for equipment repairs. In addition, the
collaboration of several maintenance employees made the unauthorized activities more
difficult to detect.
Subsequently, the Superintendent made several changes in procedures to tighten controls
over purchases and repairs of equipment. These included procedures for local purchases and
those used at the gates when equipment is brought into or taken out of the facility.
(Finding 98-1, pages 9-10)
We recommended the Center ensure that employees are adequately supervised and controls
are effective to safeguard State assets.
The Department officials state that the recommendation has been implemented by
improving controls over equipment and establishing a supervisory position to oversee and
coordinate purchases of parts and repairs.
AUDITORS' OPINION
We conducted a compliance audit of the Center as required by the Illinois State
Auditing Act. We also performed certain agreed-upon procedures with respect to the
accounting records of the Center to assist our single audit of the entire Department.
Financial statements for the Department will be presented in the single audit report.
___________________________________
WILLIAM G. HOLLAND, Auditor General
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SPECIAL ASSISTANT AUDITORS
Our special assistant auditors for this audit were Parker & Meltzer. |
