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REPORT DIGEST DEPARTMENT OF CORRECTIONS
PINCKNEYVILLE
CORRECTIONAL CENTER
LIMITED SCOPE COMPLIANCE EXAMINATION For the Two Years Ended: June 30, 2008 Summary of Findings: Total this report 5 Total last report 2 Repeated findings 1 Release Date: August 6, 2009
State of Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the
Report contact: Office of the Auditor
General (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
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SYNOPSIS· The Center did not take appropriate action to ensure dormant account balances were properly transferred to the General Revenue Fund. · The Center did not comply with the Unified Code of Corrections regarding the mark up on goods sold in the employee commissary. · The Center did not obtain all necessary signatures on the Monies Received List Report documenting incoming receipts for inmate trust funds. · The Center did not maintain an adequate segregation of duties over certain functions within their locally held funds.
{Expenditures and Activity Measures are summarized on the reverse page.} |
ILLINOIS DEPARTMENT OF CORRECTIONS
PINCKNEYVILLE
CORRECTIONAL CENTER
LIMITED SCOPE COMPLIANCE EXAMINATION
For
The Two Years Ended June 30, 2008
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EXPENDITURE STATISTICS |
FY 2008 |
FY 2007 |
FY 2006 |
|
Total Expenditures (All Appropriated Funds)............. |
$40,565,582 |
$39,049,327 |
$37,615,179 |
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Personal
Services.......................................................
% of Total Expenditures.....................................
Average No. of Employees................................
Average Salary Per Employee............................
Inmate Compensation...................................................
% of
Total Expenditures........................................... |
$25,169,207
62.0%
507
$49,643
$245,771
0.6% |
$24,618,920
63.1%
520
$47,344
$245,767
0.6% |
$23,503,141
62.5%
520
$45,198
$280,622
0.8% |
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Other Payroll Costs (FICA, Retirement).....................
% of Total Expenditures..................................... |
$6,034,232
14.9% |
$4,661,618
11.9% |
$3,878,113
10.3% |
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Contractual Services...................................................
% of Total Expenditures..................................... |
$6,230,949
15.4% |
$7,004,934
17.9% |
$7,573,536
20.1% |
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Commodities..............................................................
% of Total Expenditures......................................... |
$2,612,637
6.4% |
$2,255,457
5.8% |
$2,177,879
5.8% |
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All Other Items.......................................................
% of Total Expenditures..................................... |
$272,786
.7% |
$262,631
.7% |
$201,888
0.5% |
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Cost of Property and Equipment.................................. |
$81,452,816 |
$81,166,104 |
$81,244,678 |
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SELECTED ACTIVITY
MEASURES (Not Examined) |
FY 2008 |
FY 2007 |
FY 2006 |
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Average Number of Inmates………………………………. |
2,208 |
2,207 |
2,159 |
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Ratio of Correctional Officers to Inmates........................ |
1 / 6.6 |
1 / 6.4 |
1 / 6.3 |
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Cost Per Year Per Inmate............................................. |
$18,361 |
$17,689 |
$17,414 |
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Rated Inmate Capacity....................................................... |
2,434 |
2,434 |
2,434 |
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Approximate Square Feet Per Inmate................................. |
38 |
39 |
39 |
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CENTER WARDEN(S) |
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During Audit Period: Kenneth Bartley (7/1/06-3/31/07);
Yolanda Johnson (4/1/07-9/15/07); Daniel Austin (9/16/07-3/9/08); Allan
Martin, Acting (3/10/08-4/27/08); Jay Merchant, Acting (4/28/08-8/11/08);
Donald Gaetz, Acting (8/12/08-11/25/08)
Currently: Gregory
Schwartz |
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Dormant Inmate Trust Fund account balances
were not properly transferred to the General Revenue Fund
Department officials disagreed with
auditors Auditors’ comment
Employee Commissary items were sold at prices above statutorily allowed mark-up Inadequate control over Inmate Trust Fund receipts Internal
control weakness Failure
to comply with an administrative directive |
FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS
FAILURE TO PROPERLY TRANSFER UNCLAIMED INMATE CASH ACCOUNT BALANCES The We noted the Center improperly offset
Inmate Trust Fund accounts with positive cash balances against accounts with
negative balances prior to transfer of unclaimed cash balances to the
GRF. Testing revealed that the Center did
not transfer dormant accounts totaling $3,663 and $7,614, respectively, for
June 2007 and 2008. (Finding 1, Pages 10-11) We recommended the Center take
appropriate action to ensure dormant cash balances are timely transferred to
the GRF. Department officials did not accept our
finding and recommendation and stated that the Department of Corrections
(Department) has implemented policies and procedures that it feels are
appropriate to the Statute and Administrative Directives.
·
The inmate
trust fund maintains individual accounts by inmate.
·
The
accounts are reviewed when designated dormant.
·
The
appropriate account balances are transferred to the general revenue fund as
required.
·
The
statute is silent on the Department’s ability to offset negative account
balances with positive account balances. The end result of the policy is not a
loss of revenue to the
State as all funds are deposited into a legislatively appropriated
fund on deposit at the Treasurer. In an auditors’ comment, we noted the
Unified Code of Corrections requires the transfer of dormant accounts for
June 2007 or June 2008, totaling $3,663 and $7,614, respectively, to the
GRF. The net negative balances are
caused by the improper off-setting of one inmate's positive cash balance
against another inmate's negative balance in the Inmate Trust Fund.
Also, the Department’s administrative
rules (20 Ill. Adm. Code 535.140(a)) state unclaimed money held for a period
of one year may be transferred to the Inmate Benefit Fund and be expended for
the special benefit of committed persons, which is inconsistent with the
Unified Code of Corrections. Further, the Center has a fiduciary
responsibility for the inmate accounts and should be evaluating each account
within the Inmate Trust Fund individually for potential transfer to the GRF. EMPLOYEE COMMISSARY GOODS MARKED UP MORE THAN ALLOWED by STATUTE The Center did not comply with the Unified Code of Corrections regarding the mark up on goods sold in the employee commissary. Thirteen of 17 (76%) items tested in the Employee Commissary were sold at prices exceeding actual cost plus the statutorily allowed 10% mark-up. One item was marked up 13%, while the remaining items were marked up approximately 24%. Furthermore, the Center had no procedures in place to monitor the retail prices of employee commissary goods to ensure they were updated in accordance with changes in the costs of goods. (Finding 2, Page 12) We recommended the Center comply with the Unified Code of Corrections and ensure goods sold in the Employee Commissary are marked up no more than 10%. Department officials accepted our finding and recommendation and stated that the recommendation has been implemented. NEED TO IMPROVE CONTROLS OVER INMATE TRUST FUND RECEIPTS The Center did not obtain all necessary signatures on the Monies Received List Report (report) documenting incoming receipts for inmate trust funds as required by the Illinois Department of Corrections Administrative Directives. The Center’s Inmate Trust Fund receipts totaled $1,572,831 and $1,702,788 in fiscal years 2007 and 2008, respectively. The Monies Received List Report (report) is a list prepared by the Center to document incoming receipts for the Inmate Trust Fund. Both the mailroom employee and the cashier must sign this report. Sixteen of 25 (64%) inmate trust fund receipts tested, totaling $29,229, were not supported by a dual-signed report. Furthermore, four of the 16 reports, totaling $26,811, had no signatures. (Finding 3, Page 13) We recommended the Center comply with Administrative Directives and obtain dual signatures for all Inmate Trust Fund Receipts. Department officials accepted our finding and recommendation and stated that the recommendation has been implemented and the facility has controls in place to ensure compliance. INADEQUATE SEGREGATION OF DUTIES The prior compliance examination finding revealed inadequate segregation of duties over locally held funds. The same individual was responsible for reconciling the bank accounts, mailing checks, delivering deposits to the bank, reconciling receipts to deposits and entering transactions. The Center reassigned the duties of mailing checks and delivering bank deposits, however, some improvement is still needed. The Department of Corrections’ Administrative Directive requires the Business Administrator to reconcile locally held funds or delegate this responsibility to an individual who has no related record keeping functions and does not have check signing authority. (Finding 4, Page 14) We recommended the Center strengthen their internal controls by ensuring conflicting duties are adequately segregated. Department officials accepted our finding and recommendation and stated that the recommendation has been implemented and the facility has established compensating controls over the locally held funds that are in line with the Departmental policies and procedures. OTHER FINDING
The other report finding pertains to inadequate
controls over Personal Usage of State Vehicle Certifications. 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 will be presented in the Central Office report.
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WILLIAM G. HOLLAND, Auditor General WGH:PDS:pp SPECIAL
ASSISTANT AUDITORS
Our Special
Assistant Auditors were Martin & Shadid CPAs, P.C. |
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