Vienna Prison Il Fy 2006 Audit
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STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION For the Two Years Ended June 30, 2006 Performed as Special Assistant Auditors For the Auditor General, State of Illinois STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION For the Two Years Ended June 30, 2006 TABLE OF CONTENTS Center Officials Management Assertion Letter Compliance Report Summary Accountants’ Report Independent Accountants’ Report on State Compliance, on Internal Control Over Compliance, and on Supplementary Information for State Compliance Purposes Schedule of Findings Current Findings Prior Findings Not Repeated Supplementary Information for State Compliance Purposes Summary Fiscal Schedules and Analysis Schedule of Appropriations, Expenditures and Lapsed Balances Comparative Schedule of Net Appropriations, Expenditures and Lapsed Balances Description of Locally Held Funds Schedule(s) of Locally Held Funds Schedule of Changes in State Property (not examined) Comparative Schedule of Cash Receipts and Deposits (not examined) Analysis of Significant Variations in Expenditures Analysis of Significant Lapse Period Spending Schedule of Changes in Inventories (not examined) Analysis of Operations Center Functions and Planning Program Average Number of Employees Employee Overtime (not examined) Inmate Commissary Operation Shared Resources (not examined) Annual Cost Statistics Costs Per Year Per Inmate (not examined) Ratio of Employees to Inmates (not examined) Cell Square Feet Per Inmate (not examined) Food Services (not examined) Medical and Clergy Service Contracts (not examined) Service Efforts and Accomplishments (not examined) 1 Page 2 3 5 7 11 29 30 31 33 34 36 39 40 41 45 47 48 49 49 50 51 52 52 53 53 54 55 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION For the Two Years Ended June 30, 2006 CENTER OFFICIALS Warden (Current) Mr. Jody Hathaway Warden (07/01/04 to 03/31/06) Mr. Jay Merchant Assistant Warden - Programs Ms. Yolanda Johnson Assistant Warden - Operations Mr. Dan Austin Business Office Administrator Ms. Jeannie McCall The Center is located at: 6695 State Route 146 East Vienna, Illinois 62995 2 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION For the Two Years Ended June 30, 2006 COMPLIANCE REPORT SUMMARY The limited scope compliance testing performed during this examination was conducted in accordance with Government Auditing Standards and in accordance with the Illinois State Auditing Act. ACCOUNTANTS’ REPORT The Independent Accountants’ Report on State Compliance, on Internal Control Over Compliance and on Supplementary Information for State Compliance Purposes relates only to those chapters of the “Audit Guide for Performing Financial Audits and Compliance Attestation Engagements of Illinois State Agencies” (Audit Guide) which are identified in the report as having compliance testing performed. SUMMARY OF FINDINGS Number of Findings Repeated findings Prior recommendations implemented or not repeated This Report 13 0 0 Prior Report 0 0 0 Details of findings are presented in a separately tabbed report section. SCHEDULE OF FINDINGS CURRENT FINDINGS Item No. 06-1 06-2 06-3 06-4 06-5 06-6 06-7 Page 11 13 15 17 18 20 21 Description Inadequate Segregation of Duties over Locally Held Funds Inadequate Controls over Locally Held Fund Cash Disbursements Lack of Reconciliations on General Ledger Accounts Lack of Independent Review of Payroll Voucher Inaccurate Reporting on the General Office Reporting Package Lack of Independent Verification of Cash Locally Held Fund Bank Reconciliations not Prepared or Approved 5 SCHEDULE OF FINDINGS CURRENT FINDINGS (CONTINUED) Item No. 06-8 06-9 06-10 06-11 06-12 06-13 Page 22 23 25 26 27 28 Description Inaccurate Receiving Reports Lack of Inventory Recording and Physical Inventory Counts Vouchers not Timely Submitted Employee Evaluations not Performed HIV Pamphlets not Available in English Inadequate Access Rights EXIT CONFERENCE Responses to the recommendations were provided by the Illinois Department of Corrections in a letter dated February 27, 2007. Center management waived having an exit conference per an email dated April 25, 2007. 6 INDEPENDENT ACCOUNTANTS' REPORT ON STATE COMPLIANCE, ON INTERNAL CONTROL OVER COMPLIANCE, AND ON SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES Honorable William G. Holland Auditor General State of Illinois Compliance As Special Assistant Auditors for the Auditor General, we performed a limited scope compliance examination of the State of Illinois Department of Corrections - Vienna Correctional Center’s compliance with the requirements listed below, as more fully described in the Audit Guide for Performing Financial Audits and Compliance Attestation Engagements of Illinois State Agencies (Audit Guide) as adopted by the Auditor General, during the two years ended June 30, 2006. The management of the State of Illinois Department of Corrections - Vienna Correctional Center is responsible for compliance with these requirements. Our responsibility is to express an opinion on the State of Illinois Department of Corrections - Vienna Correctional Center’s compliance based on our examination. A. The State of Illinois Department of Corrections - Vienna Correctional Center has obligated, expended, received, and used public funds of the State in accordance with the purpose for which such funds have been appropriated or otherwise authorized by law. B. The State of Illinois Department of Corrections - Vienna Correctional Center has obligated, expended, received, and used public funds of the State in accordance with any limitations, restrictions, conditions or mandatory directions imposed by law upon such obligation, expenditure, receipt or use. C. The State of Illinois Department of Corrections - Vienna Correctional Center has complied, in all material respects, with applicable laws and regulations, including the State uniform accounting system, in its financial and fiscal operations. D. The State revenues and receipts collected by the State of Illinois Department of Corrections Vienna Correctional Center are in accordance with applicable laws and regulations and the accounting and recordkeeping of such revenues and receipts is fair, accurate and in accordance with law. E. Money or negotiable securities or similar assets handled by the State of Illinois Department of Corrections - Vienna Correctional Center on behalf of the State or held in trust by the State of Illinois Department of Corrections - Vienna Correctional Center have been properly and legally administered and the accounting and recordkeeping relating thereto is proper, accurate, and in accordance with law. 7 Our limited scope compliance examination of the Center was limited to the following areas of the Audit Guide: Chapter 8 – Personal Services Expenditures Chapter 9 – Contractual Services Expenditures Chapter 11 – Commodities Expenditures Chapter 18 – Appropriations, Transfers and Expenditures Chapter 22 – Review of Agency Functions and Planning Program Chapter 30 – Auditing Compliance With Agency Specific Statutory Mandates The areas of the Audit Guide not examined at the Center have had procedures performed on a Department-wide basis through the compliance examination of the Department’s General Office, and accordingly, any findings from the results of those procedures have been included in the Department of Corrections – General Office compliance report. We have also performed certain procedures with respect to the accounting records of the Center to assist in the performance of the Auditor General’s financial statement audit of the entire Department of Corrections for the year ended June 30, 2006. The results of these additional procedures have been communicated to the Department of Corrections – General Office auditors. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants; the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States; the Illinois State Auditing Act (Act); and the Audit Guide as adopted by the Auditor General pursuant to the Act; and, accordingly, included examining, on a test basis, evidence about the State of Illinois Department of Corrections - Vienna Correctional Center’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the State of Illinois Department of Corrections - Vienna Correctional Center’s compliance with specified requirements. In our opinion, the State of Illinois Department of Corrections - Vienna Correctional Center complied, in all material respects, with the aforementioned requirements during the two years ended June 30, 2006. However, the results of our procedures disclosed instances of noncompliance with those requirements, which are required to be reported in accordance with criteria established by the Audit Guide, issued by the Illinois Office of the Auditor General and which are described in the accompanying Schedule of Findings as finding(s) (06-5, 06-9, 06-10, 06-11, 06-12). As required by the Audit Guide, immaterial findings relating to instances of noncompliance excluded from this report have been reported in a separate letter to your office. 8 Internal Control The management of the State of Illinois Department of Corrections - Vienna Correctional Center is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws and regulations. In planning and performing our limited scope compliance examination, we considered the State of Illinois Department of Corrections - Vienna Correctional Center’s internal control over compliance with the aforementioned requirements in order to determine our examination procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the Audit Guide, issued by the Illinois Office of the Auditor General. We have also performed certain procedures with respect to the accounting records of the Center to assist in the performance of the Auditor General’s financial statement audit of the entire Department of Corrections for the year ended June 30, 2006. The results of these additional procedures have been communicated to the Department of Corrections – General Office auditors. Our consideration of internal control over compliance with the aforementioned requirements would not necessarily disclose all matters in internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws and regulations that would be material in relation to one or more of the aforementioned requirements being examined may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving internal control over compliance that we consider to be material weaknesses. However, the results of our procedures disclosed other matters involving internal control which are required to be reported in accordance with criteria established by the Audit Guide, issued by the Illinois Office of the Auditor General and which are described in the accompanying Schedule of Findings as finding(s) (06-1, 06-2, 06-3, 06-4, 06-5, 06-6, 06-7, 06-8, 06-9, 06-13). As required by the Audit Guide, immaterial findings relating to internal control deficiencies excluded from this report have been reported in a separate letter to your office. Supplementary Information for State Compliance Purposes Our examination was conducted for the purpose of forming an opinion on compliance with the requirements listed in the first paragraph of this report. The accompanying supplementary information as listed in the table of contents as Supplementary Information for State Compliance Purposes is presented for purposes of additional analysis. We have applied certain limited procedures as prescribed by the Audit Guide, as adopted by the Auditor General to the 2006 and 2005 Supplementary Information for State Compliance Purposes, except for information on the Annual Cost Statistics and Service Efforts and Accomplishments, Schedule of Locally Held Funds - Cash Basis, Schedule of Changes in State Property, Comparative Schedule of Cash Receipts and Deposits, Schedule of Changes in Inventories, Employee Overtime and Shared Resources on which we did not perform any procedures. However, we do not express an opinion on the supplementary information. We have not applied procedures to the 2004 Supplementary Information for State Compliance Purposes, and accordingly, we do not express an opinion thereon. 9 This report is intended solely for the information and use of the Auditor General, the General Assembly, the Legislative Audit Commission, the Governor, Center and Department management, and is not intended to be and should not be used by anyone other than these specified parties. Dycus, Bradley & Draves, p.c. Certified Public Accountants September 22, 2006 10 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-1. FINDING: (Inadequate Segregation of Duties Over Locally Held Funds) The Vienna Correctional Center (Center) did not maintain an adequate segregation of duties over locally held funds. During our testing, we noted the following segregation of duties issues: • The Accountant recorded, wrote and mailed checks, and reconciled transactions for the Resident Commissary Fund, Resident Benefit Fund, Employee Commissary Fund and Employee Benefit Fund during the period April 1, 2005 to June 30, 2006. • An Account Technician I was permitted to receive cash, write checks, sign checks and mail checks for the period July 1, 2004 to June 30, 2006 for all locally held funds. • The Office Assistant was permitted to write and mail checks for all locally held funds during the period July 1, 2004 to May 1, 2006. • An Account Technician I recorded and reconciled transactions for the Resident Trust Fund during the period July 1, 2004 to June 30, 2006. Additionally, the Account Technician I recorded and reconciled transactions on all locally held funds during the period December 1, 2004 to March 31, 2005. Center personnel indicated the Center did not have sufficient staff to ensure locally held fund duties were segregated. The locally held funds received and disbursed the following during the period July1, 2004 to June 30, 2006: Locally Held Fund Total Received Resident Trust Fund Total Disbursed $2,328,874 $2,757,884 Employee Commissary Fund $333,508 $273,010 Employee Benefit Fund $21,194 $27,435 $2,107,016 $2,121,245 $121,965 $224,388 Resident Commissary Fund Resident Benefit Fund 11 Administrative Directive 02.40.101 states the Business Administrator shall designate an individual to write checks and ensure the individual does not 1.) receive or deposit cash, 2.) mail prepared checks or 3.) reconcile bank accounts for any locally held fund unless there is an exception in writing from the Chief Administrative Officer which is approved by the Deputy Director of the Division of Finance. Effective internal controls also dictate the person recording transactions be independent of the person reconciling and approving transactions. The person approving transactions should also be independent of the person recording and reconciling transactions. Failure to segregate these duties could allow cash to be misappropriated or a fictitious invoice to be paid and the check retained by the individual who prepared the check. (Finding Code No. 06-1) RECOMMENDATION We recommend the duties of receiving cash, writing checks, mailing checks, recording transactions, reconciling transactions and approving transactions be appropriately segregated. CENTER RESPONSE Recommendation implemented. The facility has separated duties among staff in accordance with the Department's policies. The exceptions noted were due to staff turnover and leave vacancies. 12 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-2. FINDING: (Inadequate Controls over Locally Held Fund Cash Disbursements) The Vienna Correctional Center (Center) did not maintain adequate controls over locally held fund cash disbursements. During our testing, we noted the following inadequate controls: • A former warden was listed as an authorized signer on the signature card at the bank for the Employee Commissary Fund, Employee Benefit Fund and Resident Commissary Fund. Good business practices require only persons employed by the Center be listed as authorized signers on the bank's signature card. • The bank signature card indicated only one signature was required on the check for the Resident Commissary Fund and Resident Benefit Fund. Administrative Directive 02.40.102 states "the bank shall be notified in writing that two signatures are required on all checks." • Additionally, we noted 68 out of 91 (75%) cash disbursements had been signed by an individual not authorized in accordance with Institutional Directive 02.40.901. Administrative Directive 02.40.102 states "signature authority shall be given to the Chief Administrative Officer and to the Business Administrator. These individuals may authorize other persons to sign in their absence. Each person so authorized shall sign his or her own name." Institutional Directive 02.40.901 states who can sign for the Chief Administrative Officer and Business Administrator. • Two telephone transfers were made between the Employee Commissary Fund and the Employee Benefit Fund; however only one individual authorized the transfers. • One signature was noted on 2 out of 91 (2%) cash disbursements tested. Institutional Directive 02.40.901 states "two authorized signatures are required on all checks drawn on locally held funds." • An employee signed another person's name on 1 out of 91 (1%) cash disbursements tested. 13 Center personnel stated the signature cards at the bank were to be updated but there was some confusion as to who was to update these cards. Additionally, Center personnel were unaware the two individuals authorized on the bank's signature card to sign checks were not authorized by Institutional Directive 02.40.901. Center personnel stated the employee making the telephone transfers did not realize this compromised the requirement of two signatures on checks and only one signature on a check and an employee signing another person's name were inadvertent oversights. Failure to update the signature card at the bank when an employee leaves the Center's employment could lead to misappropriation of cash. Failure to require two signatures on the signature card or disallow telephone transfers at the bank circumvents the internal control established by Administrative Directive 02.40.102. Failure to comply with Institutional Directive 02.40.901 circumvents the designation of authorized signers by the Chief Administrative Officer and Business Administrator. (Finding No. 06-2) RECOMMENDATION We recommend the signature cards be updated immediately when a person leaves the Center's employ. Additionally, the Center should comply with Administrative Directive 02.40.102 and Institutional Directive 02.40.901. CENTER RESPONSE Recommendation implemented. The facility has revised the institutional directive to more closely align with the Agency Administrative Directive. The facility will require signatures in compliance with the Administrative Directive. 14 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-3. FINDING: (Lack of Reconciliations on General Ledger Accounts) General ledger accounts in the locally held funds were not reconciled. During our testing, we noted the following: • Outstanding employee gift certificates were not reconciled to Due from the Employee Benefit Fund - employee of the month general ledger account in the Employee Commissary Fund. This account had a balance of $80 at June 30, 2006. • The change fund general ledger account in the Employee Commissary Fund was not reconciled to actual cash on hand. This account was overstated by $247 at June 30, 2006. • The travel and allowance general ledger account for the Resident Benefit Fund was not reconciled to outstanding travel and allowance invoice vouchers from the General Revenue Fund. This account was overstated by $2,378 at June 30, 2005. • Imprest travel and allowance cash general ledger account for the Resident Benefit Fund was not reconciled to actual cash on hand. This account was overstated by $714 at June 30, 2005. • Due from Resident Trust Fund for bus tickets for the Resident Benefit Fund was not reconciled to the amount of outstanding bus tickets. This account was understated by $714 at June 30, 2005. • Net worth transferred general ledger account for the Employee Commissary Fund and Resident Commissary Fund was not being reconciled to net income on the Employee Commissary Fund or the Resident Commissary Fund. This account on the Employee Commissary Fund was understated by $443 at June 30, 2005. This account on the Resident Commissary Fund was understated by $851 at June 30, 2006. Administrative Directive 02.40.104 states "reconciliation of the locally held fund, general ledger, and subsidiary accounts shall occur monthly after the fund checking account has been reconciled and after General Ledger posting is completed." Effective internal controls require all balance sheet accounts to be reconciled to cash, subsidiary ledgers, etc. Additionally, these reconciliations should be documented. General ledger accounts also act as controls over negotiable assets such as cash. 15 Center personnel stated the reconciliations were not performed due to time constraints, confusion on who was responsible for completing the reconciliation and the fact they were unaware reconciliations should have been completed on all accounts. Failure to reconcile accounts could result in improper decisions being made due to inaccurate financial information. (Finding Code No. 06-3) RECOMMENDATION We recommend the Center perform reconciliations over all general ledger accounts. CENTER RESPONSE Recommendation accepted. The facility will make every effort to ensure required reconciliations are completed. The errors noted were due to oversights during employee leave vacancies. 16 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-4. FINDING: (Lack of Independent Review of Payroll Voucher) The Vienna Correctional Center (Center) payroll vouchers (payroll register) were not independently approved. The payroll clerk enters the approved time report into the payroll system which generates the payroll voucher and employee paychecks. The payroll clerk also enters any withholding changes and pay rate increases into the payroll system. Employee time per the time report, changes in withholding and pay rate increases were then verified to the payroll voucher by the payroll clerk. Good internal control procedures require the review process to be performed by an individual independent of the preparation process in order to prevent improper expenditures. Center personnel stated they were unaware this was a poor segregation of duties. Failure to review payroll vouchers by an independent person increases the likelihood a loss from errors or irregularities could occur and would not be detected in a timely manner. (Finding Code No. 06-4) RECOMMENDATION We recommend a person independent of the payroll voucher preparation verify its accuracy. CENTER RESPONSE Recommendation implemented. The Business Administrator will perform a review of the voucher/report prior to signing as valid. 17 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-5. FINDING: (Inaccurate Reporting on the General Office Reporting Package) The General Office Reporting Package for the Employee Commissary Fund was inaccurate. We noted the following exceptions during our examination: • Outstanding employee gift certificates of $30 were reported as an asset and in sales on the fiscal year 2005 General Office Reporting Package. These certificates should have been reported as a liability on the General Office Reporting Package. • Car wash sales of $180 were not reflected in transfers or Due to the Employee Benefit Fund on the fiscal year 2005 General Office Reporting Package. • Net worth transferred did not equal net income by $443 at June 30, 2005, resulting in an understatement. • Outstanding employee gift certificates of $80 at June 30, 2006 were recorded in the amount owed to the Employee Benefit Fund for profit transfers. This should have been reported as Due to Employee Benefit Fund - Outstanding Gift Certificates. • The fiscal year 2005 profit transfer, $443, was recorded in Due to Employee Benefit Fund on the fiscal year 2006 General Office Reporting Package. Sixty percent of this profit transfer, $266, should have been recorded in Due to 523 Fund. • Due to 523 Fund was overstated and Due to Employee Benefit Fund was understated by $3,013 on the fiscal year 2006 General Office Reporting Package due to transfers not being posted correctly. SAMS procedure 27.10.10 states "Department personnel will be required to submit a letter to the Comptrollers Office representing that, to the best of their knowledge and belief, the GAAP financial reporting information is complete and accurate." Center personnel stated these errors were a result of the Accountant not being properly trained in the preparation of the General Office Reporting Package. The General Office Reporting Package is utilized by the Central Office in Springfield for financial reporting. Failure to properly complete this report could result in errors of the Department’s financial information. (Finding Code No. 06-5) 18 RECOMMENDATION We recommend the Accountant be trained in the preparation of the General Office Reporting Package. CENTER RESPONSE Recommendation accepted. The facility will make every effort to ensure that financial reports are presented timely and accurately. 19 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-6. FINDING: (Lack of Independent Verification of Cash) Employee Commissary Fund cash is not counted by an independent employee. The cashier in the Business Office prepares the Employee Commissary Shift Report (daily sales summary), counts the cash and prepares the cash receipt and deposit ticket. Total cash received was $138,270 and $114,512 for fiscal year 2006 and 2005, respectively. Administrative Directive 02.85.115 states at the close of each commissary shift and prior to sales for the next commissary shift, cash shall be counted and the Commissary Shift Report shall be completed. The Commissary Shift Report shall be submitted to the commissary accountant in the Business Office. Cash shall be submitted to the cashier in the Business Office. Center personnel indicated cash is not counted by an independent employee due to time constraints. Failure to independently count cash puts the Center at risk that cash will be misappropriated. (Finding Code No. 06-6) RECOMMENDATION We recommend an independent employee prepare the Commissary Shift Report and count the cash prior to forwarding the cash to the Business Office or Control Room. CENTER RESPONSE Recommendation implemented. The facility has assigned two employees to count the cash collected. Additionally, the facility is in the process of changing the commissary to debit card technology, eliminating cash from the process. 20 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-7. FINDING: (Locally Held Bank Reconciliations Not Prepared or Approved) Bank reconciliations were not prepared or approved. During our review of bank reconciliations for the locally held funds for the period July 1, 2004 to June 30, 2006, we noted the March 2005 bank reconciliations for the Employee Commissary Fund and the Employee Benefit fund were not prepared. The December 2004 bank reconciliations for the Employee Commissary Fund, Resident Commissary Fund and Resident Benefit Fund were not approved by the Business Administrator. Administrative Directive 02.40.104 states "bank reconciliations shall be prepared upon receipt of the bank statement for each checking account. The person completing the reconciliation and the Business Administrator shall sign the completed reconciliation." Center personnel stated the March 2005 bank reconciliations were not prepared since the Business Office was lacking an Accountant. Additionally, Center personnel stated approval of the December 2004 bank reconciliations was an inadvertent oversight by the Business Administrator. Failure to complete and approve bank reconciliations could lead to inaccurate financial reporting. (Finding Code No. 06-7) RECOMMENDATION We recommend the Center comply with the Administrative Directive and prepare bank reconciliations for each checking account upon receipt of a bank statement. This bank reconciliation should then be signed by both the preparer and the Business Administrator. CENTER RESPONSE Recommendation accepted. The facility will make every effort to ensure reconciliations are performed and approved. The errors noted were due to oversights. 21 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-8. FINDING: (Inaccurate Receiving Reports) Vendor invoices did not agree to receiving reports for the Employee Commissary Fund. We noted the following errors during our testing: • A receiving report indicated 2,130 bags of ice had been received when only 230 bags of ice were received. • A vendor invoice stated 1,680 bottles of water had been received; however, the receiving report indicated no bottles of water had been received. • A receiving report indicated 1,000 16 ounce lids had been received when 2,000 16 ounce lids had been received. • A receiving report indicated 120 candy bars had been received when 240 candy bars had been received. The Center paid the amount on the vendor invoice. Prudent business practices dictate vendor invoices be matched to receiving reports and any discrepancies investigated. Center personnel stated these errors went undetected due to employees not having enough time to properly match vendor invoices to receiving reports due to a lack of staffing. Failure to properly match receiving reports to vendor invoices could result in the Center paying for goods they did not receive. (Finding Code No. 06-8) RECOMMENDATION We recommend vendor invoices be properly matched to receiving reports and any discrepancies investigated. CENTER RESPONSE Recommendation accepted. The facility will make every effort to ensure store receiving reports are completed accurately. The errors noted were due to oversights. 22 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-9. FINDING: (Lack of Inventory Recording and Physical Inventory Counts) The Vienna Correctional Center (Center) ceased recording inventory, conducting a monthly physical inventory and an independent test count of inventory. The Center ceased recording receiving reports and store requisitions on the AIMS inventory system from February 1, 2005 to May 15, 2005. During this same period, the Center ceased monthly inventory counts in the general stores. Additionally, the Center did not conduct an independent inventory test count on the Employee Commissary, Resident Commissary and general stores physical inventory. Additionally, the Employee Commissary supervisor orders, receives and physically counts merchandise in the Employee Commissary. This is an inadequate segregation of duties since one person can originate and verify an inventory transaction. Administrative Directive 02.82.103 states "upon completion of the receiving report, the perpetual inventory clerk shall post receipts to the perpetual inventory records." Administrative Directive 02.82.106A-J states "the perpetual inventory clerk shall post the store requisition to the Automated Inventory Management System per the AIMS User's Manual." Administrative Directive 02.82.112A-J states "each item in a storeroom shall be counted at least twice annually, once by a complete inventory on June 30, and by one of 11 monthly test counts. The inventory results shall be verified against the perpetual inventory records maintained in the facility Business Office. "Administrative Directive 02.85.110 states the inventory supervisor in the commissary shall verify count accuracy by conducting test counts of a representative number of items. Administrative Directive 02.82.112A-J states a Business Office employee shall perform sample test counts in the stores for comparison with counts performed by the inventory team. Good business practices dictate the person conducting these test counts be independent of the physical inventory count. Center personnel stated general stores inventory procedures had ceased due to problems with store requisitions not matching inventory items. Additionally, Center personnel indicated there was insufficient time to research these problems. Center personnel indicated the Central Office in Springfield stated the Center would be converting to a new inventory computer system in the near future and all inventory problems would be resolved during conversion. Center personnel also indicated the internal control weakness in the Employee Commissary had been mitigated in the past by an independent person periodically performing a 10% test count of the month end inventory. Due to a lack of staffing, however, the Center elected to cease performing this 10% test count. Center personnel indicated the performance of a 10% test count in the Resident Commissary and general stores had ceased due to insufficient staff being assigned to the Business Office and the general stores. 23 Recording inventory transactions, reconciling physical inventory counts to perpetual inventory records and performing independent inventory test counts reduces the Center's risk the Employee Commissary, Resident Commissary and general stores personnel would record inappropriate inventory transactions. Inventory at June 30, 2006 in the Employee Commissary, Resident Commissary and stores was $6,346, $74,232 and $246,193, respectively. (Finding Code No. 06-9) RECOMMENDATION We recommend the Center comply with their Administrative Directives by recording requisitions into AIMS, conducting physical inventory counts and performing an independent inventory test count. CENTER RESPONSE Recommendation accepted. The Center implemented the real time inventory system during the later part of FY05. The system was operational during FY06. Test counts have resumed during FY07. 24 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-10. FINDING: (Vouchers Not Timely Submitted) The Vienna Correctional Center (Center) did not exercise adequate control over voucher processing. During our testing, we noted 10 of 52 (19%) vouchers tested, totaling $258,948, were approved for payment from 10 to 56 days late. The Center paid $3,161 in interest charges during the two year period ended June 30, 2006. The Illinois Administrative Code (74 Ill. Adm. Code 900.70) requires an Agency to review a bill and either deny the bill in whole or in part, ask for more information necessary to review the bill or approve the bill in whole or in part, within 30 days of physical receipt of the bill. Center personnel indicated the delays in approving invoice vouchers are attributable to a lack of staff in the Business Office. Failure to promptly approve vouchers could result in late payment of bills to vendors and result in interest being levied against the Center. (Finding Code No. 06-10) RECOMMENDATION We recommend the Center comply with 74 Ill. Adm. Code 900.70 by having the proper review completed prior to the expiration of the thirty-day time period. CENTER RESPONSE Recommendation accepted. The Center will make every effort to comply with the requirements as established by the Prompt Pay Act. 25 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-11. FINDING: (Employee Evaluations Not Performed) The Vienna Correctional Center (Center) did not perform employee evaluations or performed them late. During our testing of personnel files we noted 27 of 105 (26%) required evaluations were not prepared. Additionally, 44 of 78 (57%) evaluations reviewed were prepared after their due date. These evaluations were performed 2 days to 8 months late. Center personnel indicated employees are performing many tasks due to a lack of staffing and employee evaluations were assigned a low priority. The Department of Central Management Services (DCMS) Personnel Rules (Section 302.270) require the Center to prepare employee evaluations not less often than annually. Failure to prepare employee evaluations timely could impact employee development. (Finding Code No. 06-11) RECOMMENDATION We recommend the Center comply with the DCMS Personnel Rules regarding employee evaluations. CENTER RESPONSE Recommendation accepted. The Center will make every effort to comply with the requirements as established by the Department for employee evaluations. 26 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-12. FINDING: (HIV Pamphlets Not Available in English) English language HIV pamphlets were not available to visitors. During our testing, we noted English language HIV pamphlets were not available in the visiting room. The health care unit had the English version of the HIV pamphlet, but not all visitors are allowed in the health care unit. Unified Code of Corrections (730 ILCS 5/3-7-2(f)) states the Department shall offer every visitor appropriate written information concerning HIV and AIDS, including information to contact Illinois Department of Public Health for counseling. Center personnel stated they had depleted their supply of the English version of the HIV pamphlet in the visiting room and had failed to reorder the pamphlet. If the English version of the pamphlet is not available, the State is at risk a visitor may have HIV or AIDS who needs counseling, but unable to obtain the required information. (Finding Code No. 06-12) RECOMMENDATION We recommend the English version of the HIV pamphlet be reordered when supplies in the visiting room are low. CENTER RESPONSE Recommendation implemented. The exception noted was due to timing of the depletion of a current stock supply and receipt of the order of a refill supply. 27 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Current Findings 06-13. FINDING: (Inadequate Access Rights) The Business Manager's computer access rights allow her to enter and approve invoice vouchers. Center personnel indicated they were unaware this was a poor segregation of duties. Effective internal controls dictate the same person not be allowed to record and approve a transaction. Failure to segregate approval and recording of transactions could result in inaccurate or fictitious invoices being paid. (Finding Code No. 06-13) RECOMMENDATION We recommend the recording and approval of invoice vouchers be segregated. CENTER RESPONSE Recommendation implemented. The exception noted was resolved. The employee access rights have been corrected. 28 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER SCHEDULE OF FINDINGS For the Two Years Ended June 30, 2006 Prior Findings Not Repeated There were no findings noted during the Limited Scope Compliance Examination for the two years ended June 30, 2004. 29 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES For the Two Years Ended June 30, 2006 SUMMARY Supplementary Information for State Compliance Purposes presented in this section of the report includes the following: Fiscal Schedules and Analysis: Schedule of Appropriations, Expenditures and Lapsed Balances Comparative Schedule of Net Appropriations, Expenditures and Lapsed Balances Description of Locally Held Funds Schedule(s) of Locally Held Funds Schedule of Changes in State Property (not examined) Comparative Schedule of Cash Receipts and Deposits (not examined) Analysis of Significant Variations in Expenditures Analysis of Significant Lapse Period Spending Schedule of Changes in Inventories (not examined) Analysis of Operations Center Functions and Planning Program Average Number of Employees Employee Overtime (not examined) Inmate Commissary Operation Shared Resources (not examined) Annual Cost Statistics Costs Per Year Per Inmate (not examined) Ratio of Employees to Inmates (not examined) Cell Square Feet Per Inmate (not examined) Food Services (not examined) Medical and Clergy Service Contracts (not examined) Service Efforts and Accomplishments (not examined) The accountants’ report on the Supplementary Information for State Compliance Purposes presented in the Compliance Report Section states the auditors have applied certain limited procedures as prescribed by the Audit Guide, as adopted by the Auditor General to the 2006 and 2005 Supplementary Information for State Compliance Purposes, except for information on the Annual Cost Statistics, Service Efforts and Accomplishments, Schedule of Locally Held Funds Cash Basis, Schedule of Changes in State Property, Comparative Schedule of Cash Receipts and Deposits, Schedule of Changes in Inventories, Employee Overtime and Shared Resources on which they did not perform any procedures. However, the auditors do not express an opinion on the supplementary information. The auditors have not applied procedures to the 2004 Supplementary Information for State Compliance Purposes, and accordingly, do not express an opinion thereon. 30 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION SCHEDULE OF APPROPRIATIONS, EXPENDITURES AND LAPSED BALANCES For The Year Ended June 30, 2006 LAPSE PERIOD EXPENDITURES JULY 1 TO AUGUST 31, 2006 EXPENDITURES THROUGH JUNE 30, 2006 APPROPRIATIONS NET OF TRANSFERS TOTAL EXPENDITURES 14 MONTHS ENDED AUGUST 31, 2006 BALANCES LAPSED AUGUST 31, 2006 PUBLIC ACT 94-0015 31 GENERAL REVENUE FUND - 001 Personal services Employee retirement contributions paid by employer Student, member and inmate compensation State contributions to State Employees' Retirement System State contributions to Social Security Contractual services Travel Travel and allowances for committed, paroled and discharged prisoners Commodities Printing Equipment Telecommunications services Operation of automotive equipment Total - Fiscal Year 2006 $ $ 18,886,500 $ 17,898,581 $ 982,950 $ 18,881,531 $ 4,969 239,800 239,675 - 239,675 125 249,300 228,084 21,139 249,223 77 1,471,700 1,397,400 3,232,300 4,900 1,394,627 1,324,090 2,891,489 2,892 76,594 73,243 340,655 1,937 1,471,221 1,397,333 3,232,144 4,829 479 67 156 71 67,600 2,206,500 17,000 30,100 33,100 126,800 58,444 2,060,653 5,859 14,871 33,057 86,399 9,073 145,779 11,139 15,170 40,360 67,517 2,206,432 16,998 30,041 33,057 126,759 83 68 2 59 43 41 27,963,000 $ 26,238,721 $ 1,718,039 Note: The information reflected in this schedule was taken from the Center's records and reconciled to records of the State Comptroller. $ 27,956,760 $ 6,240 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION SCHEDULE OF APPROPRIATIONS, EXPENDITURES AND LAPSED BALANCES For The Year Ended June 30, 2005 LAPSE PERIOD EXPENDITURES JULY 1 TO AUGUST 31, 2005 EXPENDITURES THROUGH JUNE 30, 2005 APPROPRIATIONS NET OF TRANSFERS TOTAL EXPENDITURES 14 MONTHS ENDED AUGUST 31, 2005 BALANCES LAPSED AUGUST 31, 2005 PUBLIC ACT 93-0842 & 93-0681 32 GENERAL REVENUE FUND - 001 Personal services Employee retirement contributions paid by employer Student, member and inmate compensation State contributions to State Employees' Retirement System State contributions to Social Security Contractual services Travel Travel and allowances for committed, paroled and discharged prisoners Commodities Printing Equipment Telecommunications services Operation of automotive equipment Total - Fiscal Year 2005 $ $ 18,375,600 $ 17,384,720 $ 965,295 $ 18,350,015 $ 25,585 36,521 36,521 - 36,521 - 255,300 222,300 21,376 243,676 11,624 2,855,600 1,311,400 3,385,400 5,400 2,699,187 1,236,437 2,909,776 2,860 151,499 69,973 211,209 736 2,850,686 1,306,410 3,120,985 3,596 4,914 4,990 264,415 1,804 44,600 2,599,900 16,400 18,400 72,900 82,800 35,985 2,279,052 16,400 51,841 71,374 2,697 293,192 1,568 11,986 11,058 38,682 2,572,244 16,400 1,568 63,827 82,432 5,918 27,656 16,832 9,073 368 29,060,221 $ 26,946,453 $ 1,740,589 Note: The information reflected in this schedule was taken from the Center's records and reconciled to records of the State Comptroller. $ 28,687,042 $ 373,179 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION COMPARATIVE SCHEDULE OF NET APPROPRIATIONS, EXPENDITURES AND LAPSED BALANCES For The Years Ended June 30, 2006 GENERAL REVENUE FUND - 001 Appropriations (net of transfers) P.A. 93-0842 & 93-0681 P.A. 93-0091 $ 27,963,000 $ 29,060,221 $ 28,696,500 18,881,531 239,675 249,223 1,471,221 1,397,333 3,232,144 4,829 18,350,015 36,521 243,676 2,850,686 1,306,410 3,120,985 3,596 17,065,183 864,004 257,052 1,487,255 1,257,845 3,117,671 8,289 67,517 2,206,432 16,998 30,041 33,057 126,759 27,956,760 38,682 2,572,244 16,400 1,568 63,827 82,432 28,687,042 52,995 3,024,109 16,998 36,291 76,583 89,733 27,354,008 373,179 $ 1,342,492 $ 33 2004 P.A. 94-0015 EXPENDITURES Personal services Employee retirement contributions paid by employer Student, member and inmate compensation State contributions to State Employees' Retirement System State contributions to Social Security Contractual services Travel Travel and allowances for committed, paroled and discharged prisoners Commodites Printing Equipment Telecommunications services Operation of automotive equipment Total Expenditures LAPSED BALANCES FISCAL YEAR 2005 6,240 $ STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION DESCRIPTION OF LOCALLY HELD FUNDS For the Two Years Ended June 30, 2006 The locally held funds of the Center are grouped into two fund categories, Governmental and Fiduciary funds. These are non-appropriated funds with the exception of the Travel and Allowance Revolving Fund, which is an appropriated fund. The funds are not held in the State Treasury and are described as follows: 1. Governmental Funds General Revenue Fund The Travel and Allowance Revolving Fund is a cash imprest fund located at the Center and is used to provide travel and allowances for discharged residents/inmates. The Travel and Allowance Revolving Fund is replenished from the Center’s General Revenue Fund appropriation on a monthly basis upon submission of a duly authorized voucher. Special Revenue Funds Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Most Centers maintain four special revenue funds. The Employees’ Commissary Fund and Residents’ Commissary Fund are used to maintain stores for selling food, candy, tobacco, health and beauty aids and other personal items. The residents’ commissary sells solely to residents and the employees’ commissary sells to employees. Profits derived from Commissary Funds’ sales are allocated 60% to pay the wages and benefits of employees who work at the commissaries and 40% to either the Residents’ Benefit Fund for sales from the Residents’ Commissary or the Employees’ Benefit Fund for sales from the Employees’ Commissary. Residents’ Benefit Fund and Employees’ Benefit Fund are used to provide entertainment and recreational activities for residents and employees. The Employees’ Benefit Fund is also used to provide travel expense reimbursement for correctional officers while travel vouchers are being processed. During fiscal year 2006 the accounting and expenditure processing of the Residents’ Benefit Fund were transferred to the Department of Corrections General Office. 34 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION DESCRIPTION OF LOCALLY HELD FUNDS For the Two Years Ended June 30, 2006 2. Fiduciary Fund Agency Fund An agency fund is used to account for assets held as the agent for others. The Center maintains one such fund, the Residents’ Trust Fund which is a depository for the residents’ money. The Residents’ Trust Fund is used to account for the receipts and disbursements of the resident’s individual accounts. 35 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION SCHEDULE OF LOCALLY HELD FUNDS - SPECIAL REVENUE FUNDS For the the Year ended June 30, 2006 REVENUES Income from Sales Interest / Investment Income Miscellaneous Other Donations Total Revenues EXPENDITURES Purchases General and Administrative Contractual Equipment Donations Other Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES Transfers In Transfers (Out) Total Other Financing Sources Employees' Commissary Fund Residents' Commissary Fund Employees' Benefit Fund $ $ 1,106,027 720 $ 145,146 193 165 145,504 1,106,747 135,757 662 894,683 20 136,439 546 895,229 9,065 211,518 (1,862) (9,065) (9,065) - Fund Balance July 1, 2005 $ - (211,518) (211,518) - $ Note: Schedule is presented on the accrual basis of accounting. 36 - $ 5,192 120 5,335 403 50 6,744 7,197 Net Change in Fund Balance Fund Balance June 30, 2006 23 Residents' Benefit Fund $ 1,645 13,967 15,612 6,872 33,317 199 40,388 (24,776) 613 85,116 613 85,116 (1,249) 60,340 18,175 249,451 16,926 $ 309,791 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION SCHEDULE OF LOCALLY HELD FUNDS - SPECIAL REVENUE FUNDS For the the Year ended June 30, 2005 Employees' Commissary Fund REVENUES Income from Sales Interest / Investment Income Miscellaneous Postage Other Donations Total Revenues EXPENDITURES Purchases Contractual Equipment Postage Donations Other Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures OTHER FINANCING SOURCES Transfers In Transfers (Out) Total Other Financing Sources ** Residents' Commissary Fund Employees' Benefit Fund $ $ - 963,013 380 22 Residents' Benefit Fund $ 26,195 10,192 1,082 90 1,194 963,393 351 36,738 766,982 1,798 1,692 33,396 100 - 6,733 773,715 854 13,429 14,383 53,151 90,037 - 189,678 (13,189) (53,299) 6,650 83,796 6,650 83,796 (189,678) (189,678) - Net Change in Fund Balance - - (6,539) 30,497 Fund Balance July 1, 2004 - - 24,714 218,954 Fund Balance June 30, 2005 $ - $ - $ 18,175 $ Note: Schedule is presented on the accrual basis of accounting. ** Due to insufficient information, the Employees' Commissary Fund Schedule could not be completed. See Finding 06-5. 37 249,451 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION SCHEDULE OF LOCALLY HELD FUNDS - CASH BASIS (NOT EXAMINED) For The Years Ended June 30 2005 Travel and Allowance Rev. Fund Balance - July 1 $9,860 Receipts Investment Income Inmate Account Receipts Appropriations from General Revenue Fund TOTAL RECEIPTS $80,742 17,140 17,140 Disbursements Inmate Account Disbursements Disbursements for released inmates TOTAL DISBURSEMENTS Fund Transfers Fund Transfers In Fund Transfers (Out) TOTAL TRANSFERS Balance - June 30 Residents' Trust Fund 27,000 27,000 $ - Note: Schedule is presented on the cash basis of accounting 38 2006 Residents' Trust Fund $ 67,259 254 1,046,207 565 1,170,565 1,046,461 1,171,130 1,033,033 1,080,059 88,494 1,121,527 106,876 1,186,935 247,523 (185,940) 61,583 $ 67,259 250,812 (227,537) 23,275 $ 74,729 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION SCHEDULE OF CHANGES IN STATE PROPERTY (NOT EXAMINED) For The Years Ended June 30, 2006 Balance, beginning Additions: Purchases Transfers-in: Intra-agency Capital Development Board Residents' Benefit Fund Total Additions 39 Deductions: Transfers-out: Intra-agency Scrap property Total Deductions Balance, ending Land $ 1,299,127 Buildings $ 51,102,554 Equipment $ 2,678,257 2005 Land Improvements $ 1,281,805 15,811 15,811 54,959 54,959 284,766 284,766 - Total $ 56,361,743 284,766 70,770 - - 14,364 14,364 $ 1,299,127 $ 51,387,320 $ 2,734,663 $ - 355,536 - 14,364 14,364 1,281,805 $ 56,702,915 Land $ 1,299,127 Buildings $ 50,624,792 Equipment $ 2,742,691 Land Improvements $ 1,281,805 35,850 35,850 5,466 - 5,466 477,762 11,403 530,481 - 16,816 100,337 117,153 1,281,805 $ 56,361,743 477,762 477,762 11,403 52,719 - - 16,816 100,337 117,153 $ 1,299,127 $ 51,102,554 $ 2,678,257 - Note: Center managment indicated the property balances at June 30, 2006 and 2005 have been reconciled to the property reports submitted to the Office of the Comptroller Total $ 55,948,415 $ STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION COMPARATIVE SCHEDULE OF CASH RECEIPTS AND DEPOSITS (NOT EXAMINED) For The Years Ended June 30, FISCAL YEAR 2005 2006 RECEIPTS Jury Duty $ Inmate Restitution Dormant Inmate Accounts Contraband Cash Miscellaneous TOTAL RECEIPTS REMITTANCES General Revenue Fund - 001 434 $ 248 24,945 31,634 3,122 1,953 101 243 21 52 2004 $ 235 39,623 2,319 $ 28,623 $ 34,130 $ 42,177 $ 3,678 $ 2,496 $ 2,554 Department of Corrections Reimbursement Fund - 523 24,945 31,634 39,623 TOTAL RECEIPTS REMITTED DIRECTLY TO STATE TREASURER $ 28,623 $ 34,130 $ 42,177 DEPOSITS Receipts recorded by Center $ 3,678 $ 2,496 $ 2,554 Add: Deposits in transit - Beginning of year 30 Deduct: Deposits in transit - End of year 18 (12) DEPOSITS RECORDED BY THE STATE COMPTROLLER $ 3,696 (30) $ 2,466 $ Note: The Deposits reconciliation section of this schedule is a reconciliation of the Center's General Revenue Fund receipts to the Comptroller's General Revenue Fund deposits only. The Comptroller's records do not provide a detail breakdown of deposits into the Department of Corrections Reimbursement Fund #523 by Center. 40 2,572 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES For the Two Years Ended June 30, 2006 Fiscal Year 2006 A comparative schedule of significant variations in expenditures (20% or more) for the fiscal years ended June 30, 2006 and June 30, 2005 are shown below: FISCAL YEAR ENDED JUNE 30 2006 2005 EXPENDITURE ITEM Employee retirement contributions paid by employer State contributions to state employees retirement system Travel Travel and allowance for committed, paroled and discharged prisoners Equipment Telecommunications services Operation of automotive equipment INCREASE (DECREASE) AMOUNT % $239,676 $36,521 $203,1 556 $1,471,221 $4,829 $2,850,686 $3,596 $(1,379,4 $1,2 (4 34 $67,517 $30,040 $33,057 $126,759 $38,682 $1,568 $63,827 $82,432 $28,8 $28,4 $(30,7 $44,3 74 1,815 (4 53 Center management provided the following explanation(s) for the significant variation(s) identified above. Employee retirement contributions paid by employer Employee retirement contributions paid by employer increased $203,155 or 556.3% from fiscal year 2005 due to all of the employee retirement contributions paid by employer being paid from this line item instead of personal services line item. In fiscal year 2005, 96% of employee retirement contributions paid by employer were paid from the personal services line item. State contributions to state retirement system State contributions to state retirement system decreased $1,379,465 or 48.4% from fiscal year 2005 due to the State of Illinois decreasing their contribution rate to the State Employees' Retirement System from 16.107% to 7.792%. Travel Travel increased $1,233 or 34.3% from fiscal year 2005 due to travel restraints being relaxed, employees being paid for breakfast when they reported for early morning transfers and the hostage situation at the Dixon Springs IIP Boot Camp. 41 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES (CONTINUED) For the Two Years Ended June 30, 2006 Travel and allowance for committed, paroled and discharged prisoners Travel and allowance for committed, paroled and discharged prisoners increased $28,835 or 74.5% from fiscal year 2005 due to the fare for bus tickets increasing and more residents being released. Equipment Equipment increased $28,472 or 1,815.8% from fiscal year 2005 due to the Department of Corrections approving more equipment purchases for fiscal year 2006 than fiscal year 2005. Telecommunications services Telecommunications services decreased $30,770 or 48.2% from fiscal year 2005 due to the Center ceasing to pay their telecommunications revolving fund telephone bills in February 2006. Operation of Automotive Equipment Operation of automotive equipment increased $44,327 or 53.8% from fiscal year 2005 due to an increase in gasoline prices and repairs on a bus the Center received in fiscal year 2006. 42 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES For the Two Years Ended June 30, 2006 Fiscal Year 2005 A comparative schedule of significant variations in expenditures (20% or more) for the fiscal years ended June 30, 2005 and June 30, 2004 are shown below: FISCAL YEAR ENDED JUNE 30 2005 2004 EXPENDITURE ITEM Employee retirement contributions paid by employer State contributions to state employees retirement system Travel Travel and allowance for committed, paroled and discharged prisoners Equipment INCREASE (DECREASE) AMOUNT % $36,521 $864,004 $(827,48 (9 $2,850,686 $3,596 $1,487,255 $8,289 $1,363,43 $(4,69 9 (5 $38,682 $1,568 $52,995 $36,291 $(14,31 $(34,72 (2 (9 Center management provided the following explanation(s) for the significant variation(s) identified above. Employee retirement contributions paid by employer Employee retirement contributions paid by employer decreased $827,483 or 95.8% from fiscal year 2004 due to twenty-three out of twenty-four pay periods being in personal services line item instead of employee retirement contributions paid by employer line item. State contributions to state employee's retirement system State contributions to state employees' retirement system increased $1,363,431 or 91.7% due to the State of Illinois increasing their contribution rate to the State Employees' Retirement System from 13.439% to 16.107%. Travel Travel decreased $4,693 or 56.6% due to the number of court writs decreasing. Travel and allowance for committed, paroled and discharged prisoners Travel and allowance for committed, paroled and discharged prisoners decreased $14,313 or 27.0% due to more inmates paying for their bus tickets when they are paroled from the institution. 43 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF SIGNIFICANT VARIATIONS IN EXPENDITURES (CONTINUED) For the Two Years Ended June 30, 2006 Equipment Equipment decreased $34,723 or 95.7% due to the Department of Corrections approving less equipment purchases for fiscal year 2005 than fiscal year 2004. 44 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF SIGNIFICANT LAPSE PERIOD SPENDING For the Two Years Ended June 30, 2006 Our testing of lapse period expenditures for fiscal year ended June 30, 2006 disclosed (4) appropriation line items with significant (20% or more) lapse period expenditures, as scheduled below: EXPENDITURE ITEM Travel Printing Equipment Operation of automotive equipment Fiscal Year Ended June 30, 2006 TOTAL LAPSE PERIOD EXPENDITURES EXPENDITURES PERCENTAGE $4,829 $1,937 40.1% $16,998 $11,139 65.6% $30,041 $15,170 50.5% $126,759 $40,360 31.8% Center management provided the following explanations for the significant lapse period expenditures identified above. Travel Travel vouchers for the period February 2006 to June 2006 were turned in by employees during the lapse period. Printing The Center paid 65.5% of their printing expenditures during the lapse period due to the Center having insufficient funds in their printing appropriation until the lapse period to pay an invoice voucher. Equipment Desired equipment purchases were sent to the Department of Corrections for approval early in fiscal year 2006. Approval to purchase equipment was obtained from the Department of Corrections in Springfield late in the fiscal year. Approval from Springfield was late in the year due to the Department ensuring there was sufficient money in the budget to purchase this equipment. Operation of automotive equipment The Center paid 31.8% of their operation of automotive equipment expenditures during the lapse period due to the Center having insufficient funds in their operation of automotive equipment appropriation until the lapse period to pay their invoice vouchers. 45 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF SIGNIFICANT LAPSE PERIOD SPENDING For the Two Years Ended June 30, 2006 Our testing of lapse period expenditures for fiscal year ended June 30, 2005 disclosed (2) appropriation line items with significant (20% or more) lapse period expenditures, as scheduled below: EXPENDITURE ITEM Travel Equipment Fiscal Year Ended June 30, 2005 TOTAL LAPSE PERIOD EXPENDITURES EXPENDITURES PERCENTAGE $3,596 $736 20.5% $1,568 $1,568 100.0% Center management provided the following explanations for the significant lapse period expenditures identified above. Travel The Center paid 20.5% of their travel expenditures during the lapse period due to the Center having insufficient funds in their travel appropriation until the lapse period to pay their invoice vouchers. Equipment Desired equipment purchases were sent to the Department of Corrections for approval early in fiscal year 2005. Approval to purchase equipment was obtained from the Department of Corrections in Springfield late in the fiscal year. Approval from Springfield was late in the year due to the Department ensuring there were sufficient funds in the budget to purchase this equipment. 46 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION SCHEDULE OF CHANGES IN INVENTORIES (NOT EXAMINED) Two Years Ended June 30, 2006 Balance July 1, 2005 GENERAL REVENUE FUND General Stores Mechanical Stores Resident Clothing Office Supplies $ $ LOCAL FUNDS Employees' Commissary Fund Residents' Commissary Fund $ $ 251,507 24,485 86,893 13,872 376,757 9,869 87,011 96,880 Additions Deletions $ 1,315,684 10,129 97,781 21,076 $ 1,444,670 $ 1,395,931 17,292 138,587 23,424 $ 1,575,234 $ $ $ $ 192,003 862,908 $ 1,054,911 Balance July 1, 2004 GENERAL REVENUE FUND General Stores Mechanical Stores Resident Clothing Officers' Clothing Office Supplies Postage Surplus Inventory $ $ LOCAL FUNDS Employees' Commissary Fund Residents' Commissary Fund $ $ 252,693 37,096 126,357 2,944 8,421 2,281 1,738 431,530 3,401 43,635 47,036 Balance June 30, 2006 195,526 875,687 $ 1,071,213 Additions Deletions ** $ $ $ 147,189 814,802 961,991 $ $ $ $ 140,721 771,426 912,147 6,346 74,232 80,578 Balance June 30, 2005 $ $ 171,260 17,322 46,087 11,524 246,193 $ $ $ 251,507 24,485 86,893 13,872 376,757 9,869 87,011 96,880 Note: The General Revenue Fund inventory balances at June 30 were obtained from the Center's records. The Employees' Commissary Fund and Residents' Commissary Fund inventory balances at June 30 were reconciled to the records of the Center. ** Due to insufficient information, FY05 inventory information can not be presented. See Finding 06-9. 47 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF OPERATIONS For the Two Years Ended June 30, 2006 CENTER FUNCTIONS AND PLANNING PROGRAM The Vienna Correctional Center (Center) receives General Revenue Fund (001) appropriations for the ordinary and necessary expenditures of both the Center and the Illinois Impact Incarceration program (Dixon Springs Boot Camp). Center Function Vienna Correctional Center (Center) is a minimum security institution located in Johnson County, seven miles east of Vienna, Illinois and is adjacent to the Shawnee Correctional Center. The Center has an official capacity of 925 residents at May 31, 2006 and 2005, respectively. The mission of the Center is to provide for the protection of society through the humane and secure incarceration of adult male offenders based upon the foundation of legislative and judicial decisions. The Center's administration is committed toward the instilling of responsibility and mature decision making in its inmates through increasing levels of reasonable freedom. By providing extensive and high quality educational programs, work assignment opportunities, public service, leisure time activities and religious avenues, the Center is expected to go far beyond the provision of the minimum necessities of food, sanitation, clothing, housing and medical services to the residents of the facility. The mission of Dixon Springs Impact Incarceration Program is to promote lawful behavior in youthful offenders who are incarcerated for the first time. The Center's administration is committed toward providing a structured, self-esteem, and positive self-concept while addressing the underlying issues which led to the incarceration. The Center is accredited by the American Correctional Association. The Warden of the Center is Jody Hathaway. The Center's address is: Vienna Correctional Center, 6695 State Route 146 East, Vienna, Illinois 62995. Center Planning Program The Center has developed goals and objectives with respect to its functions and programs. An annual statement of functions and planning is prepared which presents goals and objectives by the following functional areas: administration, fiscal, operations and programs. The Center's planning program is adequate to meet the Center's needs. 48 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF OPERATIONS For the Two Years Ended June 30, 2006 AVERAGE NUMBER OF EMPLOYEES The following table, prepared from Center records, presents the average number of employees, by function, for the past three years. Administrative Business office and stores Clinical services Work Camp Recreation Maintenance Laundry Correctional Officers Dietary Medical/Psychiatric Total 2006 7 13 19 62 2 19 1 215 12 8 ___ 358 Fiscal Year 2005 7 14 18 60 3 19 1 219 13 9 ___ 363 2004 7 13 17 53 4 17 1 221 10 10 ___ 353 EMPLOYEE OVERTIME (not examined) Certain employees are eligible for overtime if the hours worked during a day exceed the employees standard work hours. Correctional Officers receive a ¼-hour of overtime for each day they stand for roll call. The roll call overtime is paid at straight time for all but Correctional Lieutenants who receive 1 ½ times normal pay. Overtime is to be distributed as equally as possible among employees who normally perform the work in the position in which the overtime is needed. An employees’ supervisor must approve any overtime. In most cases, except for roll call, employees are compensated at 1 ½ times their normal hourly rate for overtime hours worked. Employees have the opportunity to be compensated either in pay for the overtime or receive compensatory time off. 49 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF OPERATIONS For the Two Years Ended June 30, 2006 EMPLOYEE OVERTIME (cont.) The following table, prepared from Department records presents the paid overtime and earned compensatory time incurred during fiscal year 2006 and 2005. Paid overtime hours worked during fiscal year Value of overtime hours worked during fiscal year Compensatory hours earned during fiscal year Value of compensatory hours earned during fiscal year Total paid overtime hours and earned compensatory hours during fiscal year Total value of paid overtime hours and earned compensatory hours during fiscal year 2006 2005 4,392 4,425 $173,548 $161,923 13,449 13,812 $357,021 $341,087 17,841 18,237 $530,569 $503,010 INMATE COMMISSARY OPERATIONS The Center operates a commissary for the benefit of the inmates. The commissary purchases goods from outside vendors and then retails the items to the inmates. The commissary purchases goods at wholesale prices where possible. Effective January 1, 2004 the Unified Code of Corrections, 730 ILCS 5/3-7-2a, was amended to change the mark-up of cost on the goods purchased for resale in the commissary. Effective January 1, 2004 the selling price for all goods shall be sufficient to cover the cost of the goods and an additional charge of up to 35% for tobacco products and up to 25% for non-tobacco products. The financial transactions of the Inmate commissary are recorded in the Residents’ Commissary Fund. A summary of the financial activity of the Residents’ Commissary Fund for the years ended June 30 , 2006 and 2005 are presented on pages 35 and 36 of this report. 50 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF OPERATIONS For the Two Years Ended June 30, 2006 INMATE COMMISSARY OPERATIONS (cont.) As part of our testing, 26 inmate commissary products were selected and their sale price recomputed to determine compliance with the Unified Code of Corrections regarding the statutorily required mark-up. As a result of our testing we noted no noncompliance with the Unified Code of Corrections regarding the statutorily required mark-up. SHARED RESOURCES (not examined) The Center shared utility costs with Shawnee Correctional Center for fiscal year 2006 and 2005. The Center and Shawnee Correctional Center each pay one half of the utility bill from Ameren CIPS. The Center's shared utility costs for fiscal year 2006 and 2005 were $362,876 and $362,801, respectively. The Center has a health care contract with Wexford Health Sources. This contract covers several institutions. The Center's shared health care costs for fiscal year 2006 and 2005 were $915,723 and $1,810,048, respectively. The Center had a health care contract with Health Professionals, Ltd. This contract covers several institutions. The Center's shared health care costs for fiscal year 2006 was $1,033,795. The Center shared the cost of a portable toilet with Shawnee Correctional Center for fiscal year 2006 and 2005. The Center paid six months of the contract and Shawnee Correctional Center paid the other six months. The Center's portion of this contract for fiscal year 2006 and 2005 was $358, respectively. The Center loaned a Supply Supervisor II to Tamms Correctional Center for 6 days during fiscal year 2005. While on loan, the employee spent all of their time working there but was paid $1,071 from Vienna Correctional Center's appropriation. Tamms Correctional Center loaned the Center an office assistant during fiscal year 2005 for 16 days. While on loan, the employee spent all of their time working at the Center but was paid $1,071 from Tamms Correctional Center's appropriation. Shawnee Correctional Center loaned the Center an Account Technician I for 10 days during fiscal year 2006. While on loan, the employee spent all of their time working at the Center but was paid $1,612 from Shawnee Correctional Center's appropriation. 51 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF OPERATIONS For the Two Years Ended June 30, 2006 COSTS PER YEAR PER INMATE (not examined) Comparative costs of inmate care, prepared from Center records for the fiscal year ended June 30, are shown below: 2006 Fiscal Year 2005 2004 925 925 925 Inmate population (as of May 31) 1,630 1,570 1,587 Average number of inmates 1,602 1,564 1,590 Rated population Expenditures from appropriations Less-equipment and capital improvements Net expenditures $27,956,760 $28,687,042 $27,354,008 30,041 1,568 36,291 $27,926,719 $28,685,474 $27,317,717 Net inmate cost per year $17,432 $18,341 $17,181 Net expenditures for computing net inmate cost per year represent total expenditures from appropriations less equipment expenditures divided by average number of inmates. The rated population and inmate population noted above was taken from the Illinois Department of Corrections’ quarterly reports to the State legislature. RATIO OF EMPLOYEES TO INMATES (not examined) The following comparisons are prepared from Center records for the fiscal year ended June 30: Average number of employees Average number of correctional officers Average number of inmates Ratio of employees to inmates Ratio of correctional officers to inmates 52 2006 2005 2004 358 260 1,602 1 to 4.5 1 to 6.2 363 263 1,564 1 to 4.3 1 to 5.9 353 268 1,590 1 to 4.5 1 to 5.9 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF OPERATIONS For the Two Years Ended June 30, 2006 CELL SQUARE FEET PER INMATE (not examined) The following comparisons are from a report issued by the Department of Corrections to the State legislature: Approximate Square Foot Per Inmate 2006 2005 2004 37 38 38 FOOD SERVICES (not examined) The following table, prepared from the Center records, summarizes the number of meals served and the average cost per meal. Breakfast Lunch Dinner 1:00 a.m. meal Staff meals Vocational School Meals Total Meals Served Food Cost 2006 311,345 511,000 511,000 17,520 64,240 ________ 1,415,105 Fiscal Year 2005 303,315 497,878 497,878 17,520 57,305 ________ 1,373,896 2004 435,340 574,650 574,650 34,825 104,495 17,410 1,741,370 $1,345,799 $1,681,542 $1,959,508 $1.22 $1.13 $.95 Cost Per Meal 53 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF OPERATIONS For the Two Years Ended June 30, 2006 MEDICAL AND CLERGY SERVICE CONTRACTS (not examined) The following table, prepared from Center records, summarizes what was paid to vendors for medical and clergy contractual services for fiscal years 2006, 2005 and 2004. 2006 Medical Services: Health Professionals Wexford Health Sources, Inc. Family Physicians Center Massac County Hospital Bohlen & Associates Rosemary Shiben V.M. R. Chandra, M.D. Fiscal Year 2005 2004 $ $1,033,796 $ 1,678,265 915,723 1,810,048 65 158 1,000 55 300 $1,950,819 $1,810,326 $1,678,265 Clergy Services: Chabad Lubavitch DeWayne Golightly $536 9,379 $9,915 54 $1,155 14,510 $15,665 $704 8,494 $9,198 STATE OF ILLINOIS DEPARTMENT OF CORRECTIONS VIENNA CORRECTIONAL CENTER LIMITED SCOPE COMPLIANCE EXAMINATION ANALYSIS OF OPERATIONS For the Two Years Ended June 30, 2006 SERVICE EFFORTS AND ACCOMPLISHMENTS (not examined) Noteworthy accomplishments occurring during fiscal year 2005 at Vienna Correctional Center and Dixon Springs Impact Incarceration Program are detailed as follows: ● ● ● ● ● ● The Center implemented a video project which provides additional recreational privileges to offenders. Renovation of the kitchen was completed. A pavilion was constructed at the firing range to shield staff from inclement weather. Installed new wiring and plumbing in housing Units 5 & 6. Satellite service was installed for inmates. Water tower renovation project was completed. Noteworthy accomplishments occurring during fiscal year 2006 at Vienna Correctional Center and Dixon Springs Impact Incarceration Program are detailed as follows: ● ● The Vocational Program awarded the most vocational certificates for the 5th straight year. Staff are being trained to audit Administrative Directives and Institutional Directives during their annual cycle training. 55