LACK OF CONTROLS OVER VENDING MACHINE OPERATIONS
The Center did not comply with the Procurement Code when it purchased goods that
were resold to employees. The Center used its Employees’ Benefit Fund to record
purchases and sales of goods to employees although Department directives require it to
record this activity within an Employee Commissary Fund. Further, the Center did not have
adequate controls over its debit card and vending machine operations.
In November 1998, the Center started to record receipts, from vending machine sales to
employees, in the Employees’ Benefit Fund. However, Department Administrative
Directive 02.44.110A-J requires a correctional center to report sales from vending
machines within an income statement for a commissary fund.
When the Center purchased goods for resale to employees, it did not comply with the
Illinois Procurement Code. The Procurement Code 30 ILCS 500/20-5 required the Center to
use competitive bids because the purchase of goods amounted to $94,992 in Fiscal Year 1999
and $151,615 in Fiscal Year 2000.
The Center’s controls over vending machine operations were inadequate. The Center
used a debit card system in which employees first bought a debit card to purchase items
from the vending machines. We found the debit card machine did not record the cash put
into the machine although it had this capability. As a result, the Center had no data to
determine the outstanding debit cards in circulation. In addition, the Center did not
record the inventory purchased from vendors and thus it could not accurately account for
the vending machine inventory. (Finding 1, pages 9-10)
Center officials accepted our recommendation to implement adequate controls to
safeguard State monies, ensure accurate accounting records, and comply with State laws.
Center officials accepted the recommendation.
