REPORT
DIGEST

COMPLIANCE AUDIT
For the Two Years Ended:
June 30, 1998

Summary of Findings:

SYNOPSIS

• The Center paid the Business Administrator's secretary from its appropriation over $24,500 in salary and benefits and $3,887 in mileage reimbursements for work performed at the Department of Correction's Central Office.

• The Center had $17,824 of overstocked inventory at June 30, 1998.

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

FY 1998

FY 1997

FY 1996

• Total Expenditures (All Appropriated Funds)

Personal Services
% of Total Expenditures
Average No. of Employees
Average Salary Per Employee

Inmate Compensation
% of Total Expenditures

Other Payroll Costs (FICA, Retirement)
% of Total Expenditures

Contractual Services
% of Total Expenditures

All Other Items
% of Total Expenditures

• Cost of Property and Equipment

$17,894,909

$11,048,088
61.73%
299
$36,950

$274,714
1.54%

$1,381,007
7.72%

$3,185,506
17.80%

$2,005,594
11.21%

$25,310,698

$17,070,605

$10,548,213
61.78%
295
$35,757

$250,357
1.47%

$1,301,675
7.63%

$2,927,760
17.15%

$2,042,600
11.97%

$25,462,700

$16,277,574

$9,941,640
61.07%
291
$34,164

$231,015
1.42%

$1,204,480
7.40 %

$3,017,445
18.54%

$1,882,994
11.57%

$25,302,699

FY 1998

FY 1997

FY 1996

1,197

1,187

1,197

1/ 5.47

1/ 5.44

1/ 5.57

$14,893

$14,291

$13,559

600

600

600

29

29

29

The Center incorrectly paid salary and mileage reimbursements for a secretary's time spent working at the Department's Central Office

The Center had fifty different inventory items totaling $17,824 overstocked at June 30, 1998

FINDINGS, CONCLUSIONS, AND
RECOMMENDATIONS

THE CENTER PAID FOR WORK NOT DIRECTLY RELATED TO THE CENTER'S OPERATION

The Business Administrator's secretary spent approximately 50% of her time working at the Department of Correction's Central Office during the two years ended June 30, 1998. This represented over $24,500 of the Center's appropriated salaries and benefits expenditures spent for work performed at the Department's Central Office. In addition the State incurred $3,887.40 of mileage reimbursement expenditures for the employee.

The Center stated that it believed it was proper to temporarily "detail" an employee under the provisions of the personnel code (80 IL ADC 302.430) in response to request for additional staffing by the Central Office during a transition of the adult division.

We recommended the Department either allocate the employee's salary and benefits between the Center and the Central Office or seek appropriation authority to permit the current practice. (Finding 98-1, page 8)

Center management accepted our recommendation and will seek guidance from the Central Office if a similar situation arises in the future.

OVERSTOCKED INVENTORY OF $17,824 AT JUNE 30, 1998

Over fifty different items were identified as overstocked inventory at June 30, 1998 based on the highest annual usage over the past two years. The Business Administrator stated that he believed the excess items would be used by the Center.

We recommeded the Center review the overstocked inventory report provided by the Central Office on a quarterly basis to determine the inventory to be transferred to the surplus inventory list. Reasons for not transferring overstocked inventory to surplus should be clearly documented. (Finding 98-3, page 10)

Center management has implemented our recommendation and will clearly document reasons overstocked items are not transferred to the surplus list.

OTHER FINDING

The remaining finding is less significant and is being given appropriate attention by Center management. We will review progress toward implementation of our recommendation during our next audit.

Mr. Mark Krell, Chief Internal Auditor, provided the Center's responses to our findings and recommendations.

AUDITORS' 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 audit of the entire Department. Financial statements for the Department will be presented in that audit report.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:JF:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were Scheffel & Company, P.C.