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FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS
INADEQUATE SEGREGATION OF DUTIES
The Center did not have an adequate segregation of duties in several areas of
operations.
A proper segregation of duties did not exist between the receipt and payment functions
at the motor pool garage. Receiving reports were prepared by the accounting section rather
than by staff receiving goods at the motor pool.
In addition, staff had access to Department information systems although such access
was either incompatible with their assignments or was unnecessary. For example, seven
staff persons had access to the Budgetary and Accounting Report System although their
responsibilities did not require access.
Further, one employee was responsible for data entry of voucher information and the
review and approval of the data entry. In this activity, different staff should enter the
data and review or approve the data input before transmittal of voucher information to the
Department's Central Office. (Finding 98-2, pages 12-14)
We recommended the Center implement procedures to create an adequate segregation of
duties and to provide sufficient internal controls. Further, the Center should review
employee access to all information systems periodically to ensure that access is not
granted to employees whose current duties are incompatible with the access granted to
them.
Center officials accepted the recommendation and stated they are in the process of
implementing corrective action.
IMPROPER RECONCILIATIONS
The Center did not properly perform reconciliations for locally held funds. As a
result, a June 30, 1998 report to the Comptroller's Office did not reconcile with the
Center's General Ledger, outstanding loans between the locally held funds did not
reconcile, and the bank reconciliations did not accurately list outstanding checks and
deposits.
Because Center staff did not properly use the General Ledger to create Comptroller
reports, the Center's June 30, 1998 Inmate Commissary Fund Report to the Comptroller's
Office overstated the cash balance of the Commissary Fund by $104,870. Also, Center
records showed a difference of $66,191 for the receivables and payables between the
locally held funds. Further, an Employee Benefit Fund bank statement reconciliation did
not agree with the Center's General Ledger because two voided checks were improperly
included. (Finding 98-1, pages 11-12)
We recommended the Center take action to ensure staff properly perform all
reconciliations.
Center officials stated that this recommendation has been implemented.
INADEQUATE AND INACCURATE PAYROLL AND PERSONNEL RECORDS
Audit tests showed the following deficiencies among personnel and payroll records.
- Six employees were either underpaid or overpaid (resulting in a net underpayment of
$1,142) due to errors in manual postings of hours worked.
- Roll call or sign in sheets (for the 7 to 3 shift) could not be located for the two week
period of September 16, 1997 through September 30, 1997. Therefore the auditors could not
perform audit tests for this period. Department Administrative Directive 2.65.101 requires
the Center to maintain this documentation for two years.
- Annual evaluations were missing from two personnel files and a union dues deduction form
was missing from another personnel file. Both are required under the Department's
administrative directives. (Finding 98-4, pages 15-16)
We recommended the Center ensure accurate calculation of hours worked and retention of
required documentation.
Center officials accepted our recommendation and stated staff will strive to perform
manual calculations accurately. Further, appropriate measures have been taken to ensure
proper retention of records.
OTHER FINDING
The remaining finding is less significant and is being given appropriate attention
by the Center. We will review the Center's progress in implementing our recommendations in
our next audit.
Mr. Mark Krell, the Department's Chief Internal Auditor, provided the responses to our
recommendations.
AUDITOR'S OPINION
We conducted a compliance audit 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 single audit of the entire Department.
Financial statements for the Department are presented in the single audit report.
_____________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:JW:pp
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors were BDO Seidman, LLP. |
