REPORT DIGEST

SHAWNEE

CORRECTIONAL CENTER

LIMITED SCOPE COMPLIANCE ATTESTATION

EXAMINATION

For the Two Years Ended:

June 30, 2006

Summary of Findings:

Total this audit 6

Total last audit 5

Repeated from last audit 1

Release Date:

June 20, 2007

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

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740 E. Ash Street

Springfield, IL 62703

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the worldwide web at

http://www.auditor.Illinois.gov

SYNOPSIS

§ The Center did not conduct an independent review of payroll vouchers.

§ The Center did not maintain adequate segregation of duties over property control.

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

ILLINOIS DEPARTMENT OF CORRECTIONS

SHAWNEE CORRECTIONAL CENTER

LIMITED SCOPE COMPLIANCE ATTESTATION EXAMINATION

For The Two Years Ended June 30, 2006

EXPENDITURE STATISTICS	FY 2006	FY 2005	FY 2004
Total Expenditures (All Appropriated Funds)........	$30,255,110	$31,928,935	$30,773,194

Personal Services................................................... % of Total Expenditures................................... Average No. of Employees............................... Average Salary Per Employee.......................... Student, member and inmate compensation............... % of Total Expenditures.......................................	$18,750,334 62.% 357 $52,522 $361,592 1.2%	$18,880,973 59.1% 352 $53,639 $380,031 1.2%	$17,940,431 58.3% 360 $49,834 $402,422 1.3%
Other Payroll Costs (FICA, Retirement)..................... % of Total Expenditures...................................	$3,087,466 10.2%	$4,317,042 13.5%	$3,828,825 12.4%
Contractual Services.................................................. % of Total Expenditures...................................	$5,420,371 17.9%	$5,544,883 17.4%	$5,238,617 17.0%
Commodities............................................................. % of Total Expenditures All Other Items......................................................... % of Total Expenditures....................................	$2,355,026 7.8% $280,321 .90%	$2,488,369 7.8% $317,637 1.0%	$2,943,269 9.9% $419,630 1.1%
Cost of Property and Equipment.............................	$46,671,156	$46,995,748	$47,219,827

SELECTED ACTIVITY MEASURES (not examined)	FY 2006	FY 2005	FY 2004
Average Number of Inmates.................................	1,998	1,996	2,016
Ratio of Correctional Officers to Inmates...............	1/7.0	1/6.9	1/7.2
Cost Per Year Per Inmate...................................	$15,136	$15,991	$15,219
Rated Inmate Capacity.......................................	1,046	1,046	1,046
Approximate Square Feet Per Inmate..................	32	33	32

CENTER WARDEN(S)

Warden (4/1/06 to 8/14/06) Mr. Jay Merchant

Warden (10/1/03 to 3/31/06) Mr. Terry McCann

Payroll vouchers not independently reviewed

Employee performed physical inventory and had access to the Property Control System

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

LACK OF INDEPENDENT REVIEW OF PAYROLL DOCUMENTATION

The Center payroll vouchers were not independently verified to agree to the approved timesheets.

The payroll clerk inputs approved timesheets data into the payroll system, which generates the payroll voucher and paycheck. After processing, warrants are returned to the payroll clerk. The Business Administrator does not review the payroll information. (Finding 2, page 10)

We recommended a person independent of the payroll voucher input verify it accuracy.

Center officials responded that they had implemented our recommendation.

INADEQUATE SEGREGATION OF DUTIES OVER PROPERTY CONTROL

The Center did not maintain adequate segregation of duties over property control.

An employee responsible for performing physical inventory counts of equipment also had the ability to add, change, and delete transactions in the Property Control System. (Finding 3, page 11)

We recommended an employee who performs physical inventory counts of equipment not have access to the Property Control System.

Center officials responded that they had implemented our recommendation.

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 Doehring, Winders & Co. LLP.