REPORT DIGEST

VANDALIA CORRECTIONAL CENTER

LIMITED SCOPE

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2006

Summary of Findings:

Total this audit                          1

Total last audit                          1

Repeated from last audit           0

Release Date:

June 20, 2007

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 TTY (888) 261-2887

This Report Digest and Full Report is also available on

the worldwide web at

http://www.auditor.illinois.gov

SYNOPSIS

¨      The Center’s procedures for handling cash removed from debit card machines did not provide for an effective segregation of duties.

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

EXPENDITURE STATISTICS

FY 2006

FY 2005

FY 2004

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

$31,096,790

$31,972,922

$32,410,293

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

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

$21,052,233

67.7%

$21,202,389

66.3%

$20,556,030

63.4%

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

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

407

$51,725

417

$50,845

437

$47,039

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

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

$3,465,261

11.1%

$4,843,756

15.2%

$4,388,960

13.5%

     Student, Member and Inmate Compensation....................

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

$340,065

1.1%

$263,284

0.8%

$359,381

1.1%

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

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

$4,004,627

12.9%

$3,659,801

11.4%

$4,278,202

13.2%

$1,990,324

6.4%

$1,763,791

5.5%

$2,564,814

7.9%

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

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

$244,280

0.8%

$239,901

0.8%

$262,906

.9%

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

$37,018,282

$37,122,215

$37,108,140

SELECTED ACTIVITY MEASURES (Not examined)

FY 2006

FY 2005

FY 2004

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

1,488

1,106

1,436

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

1 / 4.9

1 / 3.5

1 / 4.3

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

$20,890

$28,909

$22,562

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

1,100

1,100

1,100

     Approximate Square Feet Per Inmate:

28

30

38

CENTER WARDEN(S)

     During Examination Period: Mr. Steve Mensing

     Currently: Mr. Steve Mensing

The responsibilities of collecting, verifying, and depositing cash were performed by one individual.

FINDING, CONCLUSION, AND

RECOMMENDATION

LACK OF ADEQUATE SEGREGATION OF DUTIES

      The Center’s procedures for handling cash removed from debit card machines did not provide for an effective segregation of duties. 

     The responsibility of collecting cash from the machines, counting and verifying the cash received to reports generated from the machines, preparing of receipt forms and deposit slips, and depositing the funds collected were all performed by one individual.

     Center personnel had assigned responsibility to another individual to agree the deposit amount to the receipt copy but failed to realize that the machine totals were not being independently verified. (Finding 1, page 9)

      We recommended the Center provide an adequate segregation of duties of debit card cash receipts.  An employee independent of cash collection and depositing functions should be assigned responsibility to reconcile debit card system sales reports to actual cash received, deposited and postings to the general ledger.

      Management indicated the recommendation had been implemented and the duty of reconciling cash collected was reassigned to an employee not responsible to collect the cash.

AUDITORS’ OPINION

      We conducted a limited scope compliance examination 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 with our financial audit of the entire Department of Corrections.  Financial statements for the Department will be presented in a separate report.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:AKS:pp

SPECIAL ASSISTANT AUDITORS

      Our special assistant auditors for this examination were Glass and Shuffett, LTD.