REPORT DIGEST JACKSONVILLE CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION For the Two Years Ended: June 30, 2008 Summary of Findings: Total this examination 4 Total last examination 2 Repeated from last audit 0 Release Date: August 6, 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 the Full Report are also available on the worldwide web at http://www.auditor.illinois.gov

SYNOPSIS ¨ The Center did not have adequate controls over their commodities inventory. ¨ The Center’s employee timekeeping controls were inadequate. ¨ The Center’s State property was not accurate. (Expenditures and Activity Measures are summarized on the reverse page)

ILLINOIS DEPARTMENT OF CORRECTIONS

JACKSONVILLE CORRECTIONAL CENTER

LIMITED SCOPE COMPLIANCE EXAMINATION

For the Two Years Ended June 30, 2008

EXPENDITURE STATISTICS	FY 2008	FY 2007	FY 2006
Total Expenditures (All Appropriated Funds)............. Personal Services....................................................... % of Total Expenditures...........................................	$38,854,966 $26,493,994 68.2%	$34,173,318 $23,716,407 69.4%	$34,639,989 $24,702,840 71.3%
Average No. of Employees......................................	459	472	488
Average Salary Per Employee..................................	$57,721	$50,247	$50,621
Student, Member and Inmate Compensation...............	$418,647	$442,275	$457,061
% of Total Expenditures...........................................	1.2%	1.3%	1.3%
Other Payroll Costs (FICA, Retirement).....................	$6,349,803	$4,488,586	$4,072,884
% of Total Expenditures...........................................	16.3%	13.1%	11.8%
Contractual Services...................................................	$3,050,271	$3,114,295	$3,148,947
% of Total Expenditures...........................................	7.8%	9.1%	9.1%
Commodities..............................................................	$2,272,450	$2,099,272	$1,988,045
% of Total Expenditures...........................................	5.8%	6.2%	5.7%
All Other Items..........................................................	$269,801	$312,483	$270,212
% of Total Expenditures...........................................	.7%	.9%	.8%
Cost of Property and Equipment.................................	$33,766,121	$33,476,402	$33,497,982

SELECTED ACTIVITY MEASURES (Not Examined)	FY 2008	FY 2007	FY 2006
Average Number of Inmates..............................................	1,490	1,521	1,470
Ratio of Correctional Officers to Inmates...........................	1 to 4.1	1 to 4.1	1 to 3.8
Net Inmate Cost Per Year.................................................	$26,075	$22,468	$23,540
Rated Inmate Population...................................................	1,100	1,100	1,100
Approximate Square Feet Per Inmate................................	29	27	30

CENTER SUPERINTENDENT

During Examination Period: Terry Polk (7/1/06 to 1/25/08), Jennifer Ward (1/26/08 to present)

Currently: Jennifer Ward

2008 inventory misstated due to inaccurate and untimely record maintenance Requisitions not prepared 2008 inventory overstated $9,194 Errors in the calculation of accrued leave time No documentation for 18 instances of time used or overtime accrued 408 radios not inventoried

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS INADEQUATE CONTROLS OVER INVENTORY The Jacksonville Correctional Center (Center) commodities inventory procedures were not in accordance with the Department of Corrections’ (Department) Administrative Directives and were insufficient to ensure the proper accounting and reporting of inventory transactions and balances. The reported value of the Center’s inventory at June 30, 2008 was misstated due to inaccurate and untimely record maintenance. As a result of the Center’s inadequate controls over inventory reporting, we were unable to report on the commodities inventory balances at June 30, 2008 and 2007 in the Center’s Limited Scope Compliance Examination for the two years ended June 30, 2008 and 2007. The following conditions were noted during testing of the Center’s inventory records: · Requisitions were not prepared at the Pittsfield Work Camp when issuing goods from inventory. · 22 requisitions and 1 receipt of 59 (39%) inventory transactions tested that were completed during fiscal year 2008 were posted to the Inventory System as fiscal year 2009 transactions, resulting in a net overstatement of $9,194 at June 30, 2008. Of the 23 inventory transactions, 21 requisitions were entered into the Inventory System 5 to 8 days after issuance. · 5 of 62 (8%) requisitions and receiving reports selected for testing totaling $3,467 could not be located. · During the Center’s annual physical inventory count, the Center adjusted 191 inventory items with a net adjustment of $5,088. · 2 of 59 (3%) requisitions and receiving reports selected for testing totaling $831 did not contain the Storekeeper’s signature and date. (Finding 1, pages 9 and 10) We recommended the Center comply with the Department’s Administrative Directives and institute procedures to strengthen controls over inventory procedures and related data processing. Center management accepted our finding and recommendation and stated the facility will make every effort to ensure absolute compliance with the Department’s policies on inventory handling. INADEQUATE CONTROLS OVER EMPLOYEE TIMEKEEPING The Center did not exercise adequate controls over employee attendance and the calculation of accrued leave time balances. Six of 50 (12%) employee leave time accrual records contained errors in the calculations of accrued leave time. The errors resulted in a total overstatement of 16.75 hours. In addition, we noted 18 instances where the official documentation of 84 total hours of time used or overtime accrued could not be located. Furthermore, we noted 2 instances where an employee’s timesheet reflected time off that was never taken for a total of 7.5 hours. (Finding 3, page 13) We recommended the Center implement the necessary controls in order to maintain accurate time records in compliance with the Illinois Administrative Code. Specifically, the Center should ensure the employee attendance records are correct, complete, and reconcile with leave requests. Center management accepted our finding and recommendation and stated the facility will make every effort to ensure accurate records are in compliance with the Illinois Administrative Code. INADEQUATE CONTROLS OVER STATE PROPERTY The Center did not maintain sufficient control over the accuracy and reporting of its property. During detail testing of State property, we noted the following: Three of 8 (37.5%) Agency Reports of State Property (C-15) tested did not agree to the Center’s Change of Status of Equipment form. The Center misclassified additions, deletions and net transfers; however, the ending property balances reported on the C-15s were correct. A transfer of 408 radios totaling $246,044 from the Department of Corrections General Office was not inventoried subsequent to the transfer. (Finding 4, pages 14 and 15) We recommended the Center properly complete the Agency Report of State Property in accordance with the Statewide Accounting Management System procedures. Further, the Center should comply with the Department’s Administrative Directives and ensure all transferred property is inventoried. Center management accepted our finding and recommendation and stated the facility will make every effort to ensure compliance with the Department’s policies on State property. OTHER FINDINGS The other report finding pertains to inadequate controls over contractual services expenditures. We will review the Center’s progress towards the implementation of our recommendations in our next audit. AUDITORS’ OPINION We conducted a limited scope compliance attestation examination of the Center as required by the Illinois State Auditing Act. Financial statements for the entire Department of Corrections will be presented in that report. ___________________________________ WILLIAM G. HOLLAND, Auditor General WGH:TLD:pp ASSIGNED AUDITORS This examination was performed by the Office of the Auditor General’s staff.