REPORT DIGEST

SHAWNEE CORRECTIONAL CENTER

LIMITED SCOPE COMPLIANCE ATTESTATION

EXAMINATION

For the Two Years Ended:

June 30, 2004

Summary of Findings:

Total this audit                          5

Total last audit                          1

Repeated from last audit           0

Release Date:

April 21, 2005  

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 TDD (888) 261-2887

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

SYNOPSIS

¨      The Center did not conduct independent inventory test counts on the Employee Commissary inventory.

¨      The Center did not approve a contract timely.

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

EXPENDITURE STATISTICS

FY 2004

FY 2003

FY 2002

!  Total Expenditures (All Appropriated Funds)......

$30,773,194

$29,648,802

$31,546,223

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

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

         Average No. of Employees...............................

         Average Salary Per Employee..........................

     Student, member and inmate compensation......................

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

$17,940,431

58.3%

360

$49,834

$402,422

1.3%

$17,946,740

60.5%

387

$46,374

$418,999

1.4%

$18,600,249

58.96%

426

$43,663

$415,795

1.32%

     Other Payroll Costs (FICA, Retirement).....................

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

$3,828,825

12.4%

$4,116,560

13.9%

$4,241,108

13.44%

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

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

$5,238,617

17.0%

$4,822,244

16.3%

$4,605,464

14.6%

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

        % of Total Expenditures

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

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

$2,943,269

9.9%

$419,630

1.1%

$1,991,068

6.7%

$353,191

1.2%

$3,305,499

10.48%

$378,108

1.2%

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

$47,219,827

$46,175,563

$46,097,542

SELECTED ACTIVITY MEASURES

FY 2004

FY 2003

FY 2002

!  Average Number of Inmates.....................................

2,016

1,998

1,955

!  Ratio of Correctional Officers to Inmates...................

1/7.2

1/6.8

1/6.1

!  Cost Per Year Per Inmate.........................................

$15,219

$14,832

$16,127

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

1,046

1,046

1,046

!  Approximate Square Feet Per Inmate.............................

32

32

34

CENTER WARDEN(S)

     During Audit Period:  Donald Young (7/1/02 to 8/31/02), Joe Parker (10/1/02 to 12/31/02), Kimberly Bigley (1/1/03 to 10/15/03), Terry McCann (10/16/03 to 6/30/04)

     Currently:  Terry McCann

Employee Commissary inventory was not independently counted

The Center did not approve a contract before execution

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

NEED TO PERFORM PHYSICAL COUNTS ON INVENTORY

The Center did not conduct an independent inventory test count on the Employee Commissary physical inventory.

The Employee Commissary supervisor orders, receives and physically counts merchandise in the Employee Commissary.  Inventory at June 30, 2004 was $4,625.

Good business practices dictate the person conducting the test counts should be independent of the physical inventory count.

Center personnel indicated the internal control weakness had been mitigated in the past by an independent person periodically performing a 10% test count of the month end inventory.  Due to the decrease in staffing, however, the Center elected to cease performing this test count.

We recommended the Center perform independent test counts on the Employee Commissary after the physical inventory is conducted.  (Finding 1, page 11)

Center officials responded that they had implemented our recommendation. 

CONTRACT WAS NOT TIMELY APPROVED

     The Center did not approve a contractual agreement prior to the start date of the contract.

     The Center signed a contract on October 23, 2002.  However the contract period was July 1, 2002 through June 30, 2007.  The contract was for $218,117.

      Good business practices require all contracts entered into be approved by all involved parties prior to the execution of the contract.  SAMS procedures 15.20.30 states, the “Comptroller shall reject vouchers for payment of professional or artistic skills if the contract for such services involves expenditures for more than $5,000 unless (1) the contract has been reduced to writing before the services are performed, or (2) the agency has filed an affidavit.”

     We recommended the Center strengthen controls to ensure contractual agreements are approved prior to the execution of the contract.  (Finding 5, page 16)

Center officials responded by stating they will make every effort to comply with the contracting requirements and obtain affidavits as needed.

AUDITORS’ OPINION

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

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:MKL:pp

SPECIAL ASSISTANT AUDITORS

      Our special assistant auditors were Dycus, Bradley & Draves, P.C.