REPORT DIGEST

LINCOLN

CORRECTIONAL

CENTER

LIMITED SCOPE

COMPLIANCE ATTESTATION EXAMINATION

For the Two Years Ended:

June 30, 2006

Summary of Findings:

Total this report                      3

Total last report                      1

Repeated from last report       0

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

·        The Center did not have adequate control over transactions of its locally held funds.

·        The Center had not displayed notices of State employee protection under the Whistle Blower Protection Article of the State Officials and Employees Ethics Act.

• The Center had inadequate monitoring procedures for its medical services contracts.

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

EXPENDITURE STATISTICS

FY 2006

FY 2005

FY 2004

Total Expenditures (All Appropriated Funds)

$20,032,819

$20,308,079

$19,797,289

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

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

                Average Number of Employees......

                Average Salary Per Employee...

  $12,097,258

          60.39%

              230     $52,597    

$12,272,378

60.43%

241

          $50,923  

$11,476,121

             57.97%

                    234

              $49,043

                Inmate Compensation....................

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

$219,271

            1.09%

$210,072

1.04%

$221,764

               1.12%

                Other Payroll Costs (FICA, Retirement)

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

$1,992,749

            9.95%

$2,805,459

13.82%

$2,449,416

             12.37%

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

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

$4,734,486

          23.63%

$3,889,963

19.15%

$4,160,768

             21.02%

                Commodities...................................

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

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

                   % of Total Expenditures………

$806,384

            4.03%

       $182,671

            0.91%

$950,987

4.68%

$179,220

0.88%

        $1,196,500

               6.04%

           $292,720

               1.48%

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

$18,033,566

$18,028,679

$18,052,954

SELECTED ACTIVITY MEASURES (NOT EXAMINED)

FY 2006

FY 2005

FY 2004

  Average Number of Inmates…………………

  Ratio of Correctional Officers to Inmates………

  Cost Per Year Per Inmate….……………..…

  Rated Inmate Capacity.................................

  Approximate Square Feet Per Inmate…………

961

1 to 5.43

$20,825

500

27

956

1 to 5.09

$21,239

500

27

952

1 to 5.06

$20,728

500

28

CENTER WARDEN(S)

During Examination Period:  Carolyn Robertson

Currently:  Carolyn Robertson

Internal control weakness

Whistle Blower Protection Article notices not posted

6 of 23 vouchers had discrepancies between hours billed vs. total hours worked

Complete contract monitoring reports were not prepared

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF PROPER SEGREGATION OF DUTIES OVER LOCALLY HELD FUNDS

      The Center did not have adequate control over transactions of its locally held funds.

      Our review of the existing policies and procedures on locally held funds disclosed that the employee responsible for recording transactions for these funds is also responsible for performing reconciliations as well as performing the disbursement functions of invoice processing, check preparation and custodian of blank checks. The same employee also receives or opens mail receipts and records cash receipts.  (Finding 1, page 9)

      We recommended the Center review Business Office staff workload and assign the more critical functions to different individuals to achieve an adequate segregation of duties.

      Center officials accepted our recommendation.

NONCOMPLIANCE WITH STATUTORY MANDATE

      The Center had not displayed notices of State employee protection under the Whistle Blower Protection Article of the State Officials and Employees Ethics Act. 

The Act requires all officers, members, and State agencies to conspicuously display notices of State employee protection under the Act.  (Finding 2, page 10)

      We recommended the Center ensure that notices of State employee protection under the State Officials and Employees Ethics Act be conspicuously displayed in the Facility.

      Center officials stated our recommendation has been implemented.

INADEQUATE CONTRACT MONITORING OF MEDICAL SERVICE PROVIDERS

      The Center has inadequate monitoring procedures for its medical services contracts. The Center had two major medical service providers in FY 2006 and one in FY 2005. The amounts paid to major medical service providers in FY 2006 and FY 2005 totaled $3,447,933 and $2,761,346, respectively.

      Actual hours of service for one of its contractors did not reconcile with the monthly billing. Six of 23 (26%) vouchers tested for this contractor showed discrepancies in the total hours billed vs. total hours worked. Total hours billed for the six vouchers was 1,935 hours while total hours worked was 1,814 hours. The Center paid the contractor for the hours billed and did not resolve differences between the billing and actual hours worked before processing payment. 

      In addition, three of four (75%) quarterly monitoring reports for FY 2005 were not prepared for one of the Center’s major contractors, while three of four (75%) quarterly contract monitoring reports for FY 2006 were not prepared for two of its major medical contractors. The Center’s Monitoring Coordinator did prepare monthly flash reports that contained some of the information required for the quarterly report; however, these reports did not comply with the full reporting requirements for contractual services.  (Finding 3, pages 11-12)

      We recommended the Center reconcile contractor’s service hours and adequately monitor its contracts for services by preparing and submitting quarterly reports in accordance with the requirements of the Administrative Directive.

      Center officials accepted our recommendation.

AUDITORS’ OPINION

      We conducted a limited scope compliance examination 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 examination of the entire Department.  Financial statements for the Department will be presented in that report.

___________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:CD:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were E.C. Ortiz & Co., LLP.