Thomas A. Schweich Missouri State Auditor CORRECTIONS Department of Corrections February 2015 Report No. 2015-010 http://auditor.mo.gov February 2015 Thomas A. Schweich Missouri State Auditor CITIZENS SUMMARY Findings in the audit of the Department of Corrections Execution Team Cash Disbursements State law requires the Department of Corrections (DOC) to select an execution team and to keep the identity of team members confidential. To help protect their identities, the DOC pays members of the execution team in cash. However, the DOC did not record the amount of cash payments on signed receipt forms and did not always require a witness signature to acknowledge the exchange of the cash payments, as required by DOC policy. We reviewed 10 cash disbursements totaling $21,266 and found none showed the amount paid to the team member, and two lacked a witness signature. Working Capital Revolving Fund During the 3 years ended June 30, 2013, the DOC spent approximately $7.3 million from the Working Capital Revolving Fund (WCRF) instead of the General Revenue Fund for items purchased from Missouri Vocational Enterprises (MVE) for department usage. WCRF funds are statutorily restricted to funding operations of the vocational enterprise program. These purchases consisted of uniforms and clothing, clothing supplies, custodial supplies, laundry and linen supplies, and other repair and maintenance supplies sold by the MVE. Section 217.595, RSMo, authorizes the WCRF to be used for the establishment, maintenance, rehabilitation, expansion and operation of the vocational enterprises programs. Escapee Monies As noted in previous audits, the DOC continues to retain monies seized from offenders who escaped or absconded from supervision. It is unclear whether the DOC has statutory authority to retain these monies. At June 30, 2014, the DOC was holding approximately $654,000 in escapee monies in the Inmate Account Fund, and approximately $333,000 in the Inmate Canteen Fund that had been transferred to that account in 2007 and 2008. In the areas audited, the overall performance of this entity was Good. *The rating(s) cover only audited areas and do not reflect an opinion on the overall operation of the entity. Within that context, the rating scale indicates the following: Excellent: The audit results indicate this entity is very well managed. The report contains no findings. In addition, if applicable, prior recommendations have been implemented. Good: The audit results indicate this entity is well managed. The report contains few findings, and the entity has indicated most or all recommendations have already been, or will be, implemented. In addition, if applicable, many of the prior recommendations have been implemented. Fair: The audit results indicate this entity needs to improve operations in several areas. The report contains several findings, or one or more findings that require management's immediate attention, and/or the entity has indicated several recommendations will not be implemented. In addition, if applicable, several prior recommendations have not been implemented. Poor: The audit results indicate this entity needs to significantly improve operations. The report contains numerous findings that require management's immediate attention, and/or the entity has indicated most recommendations will not be implemented. In addition, if applicable, most prior recommendations have not been implemented. All reports are available on our Web site: auditor.mo.gov Department of Corrections Table of Contents 2 State Auditor's Report Management Advisory Report - State Auditor's Findings Organization and Statistical Information 1. Execution Team Cash Disbursements .................................................... 4 2. Working Capital Revolving Fund .......................................................... 5 3. Escapee Monies ...................................................................................... 6 8 Appendixes Combined Statements of Receipts, Disbursements, and Changes in Cash and Investments, Year Ended A-1 June 30, 2014 ....................................................................................... 9 A-2 June 30, 2013 ..................................................................................... 10 B Comparative Statement of Receipts, Years Ended June 30, 2014 and 2013 .................................................. 11 C Comparative Statement of Appropriations and Expenditures, Years Ended June 30, 2014 and 2013 .................................................. 12 D Comparative Statement of Expenditures (From Appropriations), 5 Years Ended June 30, 2014 ............................................................... 15 E Comparative Statement of Revenues, Expenses, and Net Income Inmate Canteen Fund, Years Ended June 30, 2014 and 2013 .................................................. 16 F Comparative Statement of Income, Expenses, and Net Income – Working Capital Revolving Fund, Years Ended June 30, 2014 and 2013 .................................................. 17 G Comparative Statement of General Capital Assets, Years Ended June 30, 2014 and 2013 .................................................. 18 1 THOMAS A. SCHWEICH Missouri State Auditor Honorable Jeremiah W. (Jay) Nixon, Governor and George Lombardi, Director Jefferson City, Missouri We have audited certain operations of the Department of Corrections, in fulfillment of our duties under Chapter, 29 RSMo. The scope of our audit included, but was not necessarily limited to, the years ended June 30, 2014 and June 30, 2013. The objectives of our audit were to: 1. Evaluate the Department of Correction's internal controls over significant management and financial functions. 2. Evaluate the Department of Correction's compliance with certain legal provisions. 3. Evaluate the economy and efficiency of certain management practices and operations including certain financial transactions. Our methodology included reviewing written policies and procedures, financial records, and other pertinent documents; interviewing various personnel of the department, and testing selected transactions. We obtained an understanding of internal controls that are significant within the context of the audit objectives and assessed whether such controls have been properly designed and placed in operation. We tested certain of those controls to obtain evidence regarding the effectiveness of their design and operation. We also obtained an understanding of legal provisions that are significant within the context of the audit objectives, and we assessed the risk that illegal acts, including fraud, and violations of contract, grant agreement, or other legal provisions could occur. Based on that risk assessment, we designed and performed procedures to provide reasonable assurance of detecting instances of noncompliance significant to those provisions. We conducted our audit in accordance with the standards applicable to performance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform our audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides such a basis. The accompanying Organization and Statistical Information is presented for informational purposes. This information was obtained from the department's management and was not subjected to the procedures applied in our audit of the department. 2 For the areas audited, we identified deficiencies in internal control, noncompliance with legal provisions, and the need for improvements in management practices and procedures. The accompanying Management Advisory Report presents our findings arising from our audit of the Department of Corrections. Thomas A. Schweich State Auditor The following auditors participated in the preparation of this report: Deputy State Auditor: Director of Audits: Audit Manager: In-Charge Auditor: Audit Staff: Harry J. Otto, CPA John Luetkemeyer, CPA Dennis Lockwood, CPA James M. Applegate, MBA Terese Summers, MSAS, CPA Sara L. Lewis, CPA Angela M. McFadden Alexander Druzenko, MBA, CPA 3 Department of Corrections of Corrections Management AdvisoryDepartment Report Management Advisory Report - State Auditor's Findings State Auditor's Findings 1. Execution Team Cash Disbursements Incomplete documentation The Department of Corrections (DOC) has not consistently complied with established procedures to ensure payments to execution team members are properly authorized, controlled, and documented. Between March 11, 2013 and February 26, 2014, the DOC paid a total of $75,273 to execution team members related to training, participation and execution services. In total, the DOC made 32 individual payments ranging from $75 to $11,091 for these services. Section 546.720, RSMo, requires the DOC Director to select an execution team consisting of persons to administer lethal gas or chemicals and other persons that provide direct support for the administration of the execution. State law also requires that the identities of the execution team be kept confidential. Members of the execution team are paid in cash to protect their identities. The DOC did not record the amount of the cash payments on receipt forms signed by execution team members and did not always require the exchange of the cash payments to be acknowledged by a witness signature, as required by DOC procedures. We reviewed 10 of the 32 cash disbursements, totaling $21,266, and found (1) none of the tested disbursements showed the amount paid to the execution team member, and (2) two disbursements, totaling $11,291, lacked a witness signature on receipt form. The Division of Adult Institutions Director indicated the DOC failure to record the amount of the payment was an oversight and the department would immediately begin recording the amount of the cash payment on the receipt form, and at times DOC employees are not available to witness payment deliveries. To comply with established procedures and ensure cash payments are properly authorized and documented, the amount of the cash payment should be documented on the receipt form and supported by the signature of a witness who verified the delivery of the cash payment. Recommendation The DOC ensure the payment amounts and the witness signatures are recorded on the execution team member receipts. Auditee's Response While internally the DOC has appropriate measures in place to account for cash payments, the DOC acknowledges the audit findings regarding the current policy and offers the following to resolve those findings. To ensure the DOC is in compliance with Section 546.720, RSMo, and to ensure proper accounting for cash payments, the department has established procedures to ensure that cash payments are properly authorized and documented, the amount of each cash payment will be documented either on a receipt form supported by the signature of a witness or recorded on other forms of approved documentation to verify the delivery 4 Department of Corrections Management Advisory Report - State Auditor's Findings of the cash payment. The DOC's revised procedures meet the standards required in the finding. 2. Working Capital Revolving Fund During the 3 years ended June 30, 2013, the DOC spent approximately $7.3 million from the Working Capital Revolving Fund (WCRF) instead of the General Revenue Fund for items purchased from Missouri Vocational Enterprises (MVE) for department usage. WCRF funds are statutorily restricted to funding operations of the vocational enterprise program. The purchases consisted of uniforms and clothing, clothing supplies, custodial supplies, laundry and linen supplies, and other repair and maintenance supplies sold by the MVE. As a result of these transactions, the MVE recorded both the expenditure and the related sales within the WCRF. The expenditures were made from DOC appropriations authorized by the General Assembly. These appropriations totaled $1.5 million in state fiscal year 2013, and $3 million in both state fiscal years 2012 and 2011 from the WCRF. The General Assembly did not renew this appropriation for state fiscal year 2014. DOC officials indicated the General Assembly intended the WCRF appropriations to be used in place of General Revenue funds and that they had expressed concerns about the propriety of using the WCRF for the acquisition of departmental goods and services to legislative officials prior to the passage of the 2011 appropriation bill. In response to an inquiry from department officials, the State Auditor issued a letter in January 2011 to the department advising department officials to discontinue use of the appropriation for purposes not authorized by state law. The WCRF is authorized under Section 217.595, RSMo, to be used for the establishment, maintenance, rehabilitation, expansion and operation of the vocational enterprises programs. The statute also requires that none of the earnings of the vocational enterprises program shall be transferred to the General Revenue Fund and that earnings of the WCRF shall be retained to obtain new equipment, material and real property for expansion and maintenance of the enterprises' programs with a goal that all general population offenders shall learn a skill or service and are employed. Recommendation The DOC continue to work with the legislature to ensure WCRF expenditures comply with the statutory restrictions of the fund. Auditee's Response Budget shortfalls during fiscal years 2011, 2012, and 2013 resulted in General Revenue funds being reduced and replaced with Working Capital Revolving Fund monies during the appropriation process for the purchase of items such as offender clothing, linen supplies, uniforms, etc. This budgetary practice ceased following the 2013 legislative session when 5 Department of Corrections Management Advisory Report - State Auditor's Findings General Revenue funding was restored and no additional action is necessary. 3. Escapee Monies As noted in previous audits, the DOC continues to retain monies seized from offenders who escaped or absconded from supervision. However, it is unclear whether the DOC has statutory authority to retain these monies. At June 30, 2014, the DOC held approximately $654,000 in escapee monies in the Inmate Account Fund, and approximately $333,000 in the Inmate Canteen Fund that had been transferred to that account in 2007 and 2008. The DOC did not spend any of the escapee monies since our prior audit. DOC officials indicated they have no current plans to spend these monies, therefore the holding of the escapee monies provides no benefit to the department or to the state. Escapee monies consist of funds held by the DOC in inmates' accounts at the time of their escape, less withholdings for certain inmate obligations such as court-ordered payments and child support. Chapter 447, RSMo, provides that abandoned property once belonging to persons known or unknown should be turned over to the State Treasurer's office (STO) Unclaimed Property Section. DOC officials disagreed with the prior audit recommendations, responding that Chapter 447, RSMo, does not apply to these monies and they believe the handling of these funds is in compliance with various statutory provisions, court rulings, and department policy. However, these officials have not consulted with the STO to confirm the accuracy of their understanding. Due to the absence of clear statutory authority for the DOC to retain and spend confiscated escapee monies, the DOC should resolve the issue with the STO and/or seek legislative authority allowing these monies to be retained and spent by the department. If spending authorization is obtained, the DOC should ensure transfers and expenditures of these monies are in accordance with departmental policies and state law. Recommendation The DOC resolve the issue with the STO and/or seek legislative authority allowing these monies to be retained and spent by the department. If spending authorization is obtained, the DOC should ensure transfers and expenditures of these monies are in accordance with departmental policies and state law. Auditee's Response With respect to escapee balances held by the DOC, the DOC maintains its position that Chapter 447, RSMo, does not apply to the DOC. Inmate money is inmate personal property and the existing case law with respect to escapee's property is applicable to money held for inmates by the DOC. See, Herron v. Whiteside, 782 S.W.2d 414 and Charron v. Thompson, 939 6 Department of Corrections Management Advisory Report - State Auditor's Findings S.W.2d 885. Inmate personal property is governed by DOC policy pursuant to Section 217.197, RSMo. The DOC plans to spend those moneys in accordance with the requirements set forth in Section 217.195, RSMo. 7 Department of Corrections Department of Corrections Organization and Statistical Information Organization and Statistical Information The Missouri Division of Corrections and the Board of Probation and Parole were transferred to the Department of Social Services on July 1, 1974, following passage of the Omnibus State Reorganization Act of 1974. Effective September 28, 1981, the Missouri Department of Corrections and Human Resources was established as a cabinet-level department of state government as a result of legislation approved by the Eighty-First General Assembly and signed by the Governor. With the revision made to Chapter 217, which became effective August 28, 1989, the Department of Corrections and Human Resources was renamed to the Department of Corrections. The department has the responsibility of supervising and managing the 20 correctional institutions located throughout the state and probation and parole services. The department is composed of the Office of the Director and four divisions: Human Services, Adult Institutions, Offender Rehabilitative Services and Probation and Parole. As of June 30, 2014, the department employed 11,070 employees and the prison population was 32,660 inmates. The Governor appointed George Lombardi as Director of the Department of Corrections on January 29, 2009. Board of Probation and Parole The Board of Probation and Parole consists of seven full-time members appointed by the Governor, subject to the advice and consent of the Senate. Terms of members are for 6 years on a staggered basis. The chairman is appointed by the Governor and is the chief administrative officer of the board in charge of the board's operations, funds and expenditures. Members of the board at June 30, 2014, were: Board Members Ellis McSwain, Chairman Kenneth C. Jones Jimmie Lee Wells Chuck R. Pryor Martin Rucker Don Ruzicka Vacant (1) Term Expires August 28, 2012 (1) December 10, 2017 February 16, 2015 April 7, 2014 (1) April 3, 2016 December 20, 2018 Members continue to serve until a replacement is named The Probation and Parole Division includes 63 district and satellite offices and 2 Community Release Centers. Seven of those locations also serve as Community Supervision Centers. Community Release and Supervision Centers house offenders during transition from institutional to community placement. At June 30, 2014, 64,571 offenders were under the supervision of the division. 8 Appendix A-1 Department of Corrections Combined Statement of Receipts, Disbursements, and Changes in Cash and Investments Year Ended June 30, 2014 Department of Corrections Federal Fund RECEIPTS Federal Product sales Leases and rentals Offender intervention fees Substance abuse traffic offense fee Offender reimbursement of incarceration costs ** Interest Refunds/rebates Inmate canteen deposits Inmate account deposits Transfers Total Receipts DISBURSEMENTS *** Personal service Employee fringe benefits Expense and equipment Leasing operations Building maintenance and repair Program distributions Inmate canteen disbursements Inmate account withdrawals Other Total Disbursements RECEIPTS OVER (UNDER) DISBURSEMENTS CASH AND INVESTMENTS, JULY 1, 2013 CASH AND INVESTMENTS, JUNE 30, 2014 $ $ Working Capital Revolving Fund Inmate Fund Inmate Incarceration Reimbursement Act Fund Correctional Substance Abuse Earnings Fund Inmate Canteen Fund * Inmate Account Fund * Total (Memorandum Only) 3,360,429 0 0 0 0 0 0 0 0 0 0 3,360,429 0 26,594,328 196,950 0 0 0 0 6,726 0 0 0 26,798,004 0 0 0 9,173,590 0 0 0 1,575 0 0 1,100,000 10,275,165 0 0 0 0 0 665,839 0 0 0 0 0 665,839 0 0 0 0 57,977 0 2,038 0 0 0 0 60,015 0 0 0 0 0 0 0 0 42,794,595 0 0 42,794,595 0 0 0 0 0 0 0 0 0 43,952,534 0 43,952,534 3,360,429 26,594,328 196,950 9,173,590 57,977 665,839 2,038 8,301 42,794,595 43,952,534 1,100,000 127,906,581 1,600,659 754,680 946,827 0 15,328 75,394 0 0 522 3,393,410 (32,981) 817,145 784,164 5,962,468 3,171,022 15,578,063 1,597,940 580,632 3,203 0 0 2,690 26,896,018 (98,014) 8,227,569 8,129,555 618,472 340,047 6,536,718 0 10,888 2,984,521 0 0 152,424 10,643,070 (367,905) 925,909 558,004 102,119 50,084 449,238 9,453 14,445 0 0 0 2,277 627,616 38,223 488,420 526,643 0 0 217,745 0 0 0 0 0 530 218,275 (158,260) 386,808 228,548 0 0 0 0 0 0 46,144,362 0 0 46,144,362 (3,349,767) 12,900,185 9,550,418 0 0 0 0 0 0 0 43,612,502 0 43,612,502 340,032 4,004,027 4,344,059 8,283,718 4,315,833 23,728,591 1,607,393 621,293 3,063,118 46,144,362 43,612,502 158,443 131,535,253 (3,628,672) 27,750,063 24,121,391 * Funds held in bank accounts outside the state treasury. Receipts, disbursements, and balances reflect bank account activity. Detailed Inmate Canteen Fund income and expenses are included at Appendix E. ** Receipts for offender reimbursement of incarceration costs are deposited by the Attorney General's office. *** Disbursements on this statement will not agree to expenditures on Appendix C primarily due to (1) appropriated transfers out for personal service benefits costs and (2) disbursements made by other state agencies. 9 Appendix A-2 Department of Corrections Combined Statement of Receipts, Disbursements, and Changes in Cash and Investments Year Ended June 30, 2013 Department of Corrections Federal Fund RECEIPTS Federal Product sales Leases and rentals Offender intervention fees Substance abuse traffic offense fee Offender reimbursement of incarceration costs ** Interest Refunds/rebates Inmate canteen deposits Inmate account deposits Transfers Total Receipts DISBURSEMENTS *** Personal service Employee fringe benefits Expense and equipment Leasing operations Building maintenance and repair Program distributions Inmate canteen disbursements Inmate account withdrawals Other Total Disbursements RECEIPTS OVER (UNDER) DISBURSEMENTS CASH AND INVESTMENTS, JULY 1, 2012 CASH AND INVESTMENTS, JUNE 30, 2013 $ $ Working Capital Revolving Fund Inmate Fund Inmate Incarceration Reimbursement Act Fund Correctional Substance Abuse Earnings Fund Inmate Canteen Fund * Inmate Account Fund * Total (Memorandum Only) 5,722,895 0 0 0 0 0 0 0 0 0 0 5,722,895 0 26,599,834 193,640 0 0 0 0 3,750 0 0 417 26,797,641 0 0 0 10,016,096 0 0 0 29,465 0 0 750,000 10,795,561 0 0 0 0 0 456,692 0 0 0 0 0 456,692 0 0 0 0 52,000 0 3,330 0 0 0 0 55,330 0 0 0 0 0 0 0 0 41,746,158 0 0 41,746,158 0 0 0 0 0 0 0 0 0 41,690,008 0 41,690,008 5,722,895 26,599,834 193,640 10,016,096 52,000 456,692 3,330 33,215 41,746,158 41,690,008 750,417 127,264,285 1,689,802 757,743 2,728,594 125 0 79,412 0 0 20,727 5,276,403 446,492 370,653 817,145 6,039,577 2,944,562 18,005,200 1,600,216 656,613 5,801 0 0 960 29,252,929 (2,455,288) 10,682,857 8,227,569 625,459 323,914 6,367,776 0 1,457 3,536,288 0 0 127,127 10,982,021 (186,460) 1,112,369 925,909 80,148 37,722 244,059 9,905 9,727 162 0 0 3,118 384,841 71,851 416,569 488,420 0 0 215,265 0 0 0 0 0 1,205 216,470 (161,140) 547,948 386,808 0 0 0 0 0 0 44,667,940 0 0 44,667,940 (2,921,782) 15,821,967 12,900,185 0 0 0 0 0 0 0 41,744,874 0 41,744,874 (54,866) 4,058,893 4,004,027 8,434,986 4,063,941 27,560,894 1,610,246 667,797 3,621,663 44,667,940 41,744,874 153,137 132,525,478 (5,261,193) 33,011,255 27,750,062 * Funds held in bank accounts outside the state treasury. Receipts, disbursements, and balances reflect bank account activity. Detailed Inmate Canteen Fund income and expenses are included at Appendix E. ** Receipts for offender reimbursement of incarceration costs are deposited by the Attorney General's office. *** Disbursements on this statement will not agree to expenditures on Appendix C primarily due to (1) appropriated transfers out for personal service benefits costs and (2) disbursements made by other state agencies. 10 Appendix B Department of Corrections Comparative Statement of Receipts Year Ended June 30, 2014 2013 General Revenue Fund Filing fees $ Donated assets Inmate social security benefits Refunds of criminal case reimbursements Recoveries Cost reimbursements-State* Rebates Fees for copying public records Miscellaneous Total General Revenue Fund Institution Gift Trust Fund Private donations Total Institution Gift Trust Fund $ 17,543 368,923 365,600 1,055,769 65,594 1,369,575 124,416 2,479 55,917 3,425,816 20,741 64,110 381,600 958,828 61,945 540,283 95,659 1,725 16,600 2,141,491 21,160 21,160 28,384 28,384 * Cost reimbursements-State are primarily reimbursements from the Inmate Canteen Fund for canteen employee salaries. 11 Appendix C Department of Corrections Comparative Statement of Appropriations and Expenditures Year Ended June 30, 2014 Appropriation Authority General Revenue Fund Eastern Reception and Diagnostic Correctional Center - Personal Service $ Population Growth Pool - Personal Service Corrections Leasing Officers Clothing Vehicle Replacement Inmate Clothing Institutional Community Purchases Department of Corrections Command Center Expense and Equipment Division of Human Services Staff - Personal Service Division of Human Services Staff - Expense and Equipment Employee Health and Safety Probation and Parole Staff - Personal Service Probation and Parole Staff - Expense and Equipment South Central Correctional Center - Personal Service Costs In Criminal Cases Western Reception and Diagnostic Correctional Center - Personal Service Maryville Treatment Center General Services - Expense and Equipmen Medical Services - Expense and Equipmen Medical Equipment - Expense and Equipmen South East Correctional Center - Personal Service Restitution Payments Crossroads Correctional Center Missouri Eastern Correctional Cente Northeast Correctional Center Ozark Correctional Center Sewer System Chillicothe Correctional Center Food Purchases Jefferson City Correctional Center Central Missouri Correctional Center Womens Eastern Reception and Diagnostic Correctional Center Ozark Correctional Center Tipton Correctional Center Moberly Correctional Center Algoa Correctional Center Amachi - Family Support Services Office of the Director Staff - Personal Service Office of the Director Staff - Expense and Equipment Division of Adult Institutions Staff - Personal Service Division of Adult Institutions Staff - Expense and Equipment St. Louis Community Release Center Kansas City Community Release Center Population Growth Pool - Expense and Equipment Boonville Correctional Center Wage and Discharge Costs Telecommunications Staff Training Division of Offender Rehabilitative Services Staff Personal Service $ Expenditures 2013 Lapsed Balances ** Appropriation Authority Expenditures Lapsed Balances ** 18,904,327 824,210 5,859,393 1,052,218 999,855 3,218,223 2,646,548 18,212,009 336,138 5,607,077 1,052,199 999,855 3,218,223 2,646,548 692,318 488,072 252,316 19 0 0 0 18,914,251 441,203 5,779,051 666,304 1 0 2,688,566 18,113,381 56,508 5,539,729 666,303 0 0 2,687,886 800,870 384,695 239,322 1 1 0 680 4,981 8,415,858 4,487 8,065,491 494 350,367 5,094 8,244,531 4,941 8,073,425 153 171,106 119,173 580,135 63,644,526 3,107,099 12,772,580 38,060,616 118,963 562,687 62,763,546 3,106,895 11,938,904 36,918,797 210 17,448 880,980 204 833,676 1,141,819 108,259 581,933 63,336,831 3,107,099 12,618,370 38,060,616 101,133 564,473 62,689,606 3,106,903 11,974,990 38,060,595 7,126 17,460 647,225 196 643,380 21 15,358,541 5,727,937 318,680 156,416,977 219,087 12,563,284 75,278 12,050,249 10,553,791 16,471,913 0 12,352,799 30,505,700 16,755,035 0 14,743,228 5,333,674 309,100 155,634,832 217,336 11,951,463 73,000 11,436,863 9,652,642 15,610,084 0 12,332,025 29,717,297 16,165,472 0 615,313 394,263 9,580 782,145 1,751 611,821 2,278 613,386 901,149 861,829 0 20,774 788,403 589,563 0 15,270,694 5,688,137 318,052 146,644,098 219,087 12,495,657 75,278 12,057,762 10,264,989 16,368,553 417,996 12,297,744 30,631,539 16,800,354 546,310 14,467,493 5,338,731 307,798 146,644,098 209,954 11,557,543 73,000 11,270,543 9,594,607 15,332,466 360,898 12,199,393 30,628,996 15,824,300 376,336 803,201 349,406 10,254 0 9,133 938,114 2,278 787,219 670,382 1,036,087 57,098 98,351 2,543 976,054 169,974 13,371,954 5,305,144 9,952,033 12,462,707 10,357,164 284,093 4,308,317 136,043 1,535,427 12,716,279 5,044,178 9,348,691 11,543,633 9,772,543 273,439 3,911,696 131,612 1,377,572 655,675 260,966 603,342 919,074 584,621 10,654 396,621 4,431 157,855 13,301,987 5,268,285 9,748,362 12,131,072 10,007,635 284,093 4,056,152 124,043 1,504,071 12,626,829 4,995,760 9,158,833 11,483,988 9,387,320 273,439 4,004,687 117,050 1,371,725 675,158 272,525 589,529 647,084 620,315 10,654 51,465 6,993 132,346 126,358 4,187,137 2,445,866 489,721 9,675,560 3,259,031 2,035,539 914,702 122,549 3,861,768 2,293,347 489,720 9,036,773 3,161,259 2,008,463 914,590 3,809 325,369 152,519 1 638,787 97,772 27,076 112 126,358 4,088,864 2,425,089 834,429 9,181,736 3,103,897 1,853,320 878,702 122,152 3,820,809 2,299,828 806,240 8,648,357 3,055,280 1,853,304 850,210 4,206 268,055 125,261 28,189 533,379 48,617 16 28,492 1,343,641 1,283,388 60,253 1,275,052 1,129,822 145,230 12 Appendix C Department of Corrections Comparative Statement of Appropriations and Expenditures Year Ended June 30, 2014 Appropriation Authority Division of Offender Rehabilitative Services Staff Expense and Equipment $ Farmington Correctional Center Fulton Reception and Diagnostic Correctional Center Overtime Substance Abuse Service - Personal Service Substance Abuse Service - Expense and Equipment Toxicology Academic Education - Personal Service Academic Education - Expense and Equipment Community Supervision Center - Personal Service Community Supervision Center - Expense and Equipment Kansas City Reentry Program Corrections State Owned Corrections Institutional - Expense and Equipment Local Sentencing Initiative Western Missouri Correctional Center Potosi Correctional Center Justice Reinvestment St. Louis Reentry Program Institutional - Expense and Equipment Pool Total General Revenue Fund Facilities Maintenance Reserve Fund Boonville Correctional Center Phase II Electrical, Various Fulton Correctional Center Water System Improvement Fulton Correctional Center Fire Alarm System Western Missouri Correctional Center Security Improvement Various Statewide Facilities Maintenance Reserve Fund Expenditure Statewide Facilities Maintenance Reserve Fund Expenditure Unprogrammed Maintenance and Repair Roofing Management System Heating, Ventilation, and Air Conditioning Improvement Security Improvements Hazardous Materials Remediation Northeast Correctional Center Bar Screen Total Facilities Maintenance Reserve Fund Department Of Corrections - Federal Fund Food Purchases Amachi - Family Support Services Federal Programs - Personal Service Federal Programs - Expense and Equipment Total Department Of Corrections - Federal Fund Working Capital Revolving Fund Vocational Enterprises - Expense and Equipment Vocational Enterprises - Personal Service Prison Industry Enhancement Corrections Leasing Institutional - Expense and Equipment Pool Corrections Institution Total Working Capital Revolving Fund $ 2013 Lapsed Balances ** Expenditures 45,476 17,871,124 13,113,064 5,994,997 3,790,185 5,146,536 517,601 8,594,913 71,924 4,332,552 40,529 16,936,627 12,422,526 5,837,320 3,658,592 5,026,238 504,869 7,777,757 7,153 4,275,996 4,947 934,497 690,538 157,677 131,593 120,298 12,732 817,156 64,771 56,556 111,178 178,000 865,858 43,502,601 2,000,000 15,268,217 10,548,807 100,000 750,000 9,457,503 674,029,9860 107,842 172,619 865,857 43,502,601 1,939,628 14,428,398 9,990,419 0 750,000 9,456,705 653,722,011 3,336 5,381 1 0 60,372 839,819 558,388 100,000 0 798 20,307,975 Appropriation Authority Expenditures Lapsed Balances ** 47,071 17,762,383 12,983,495 5,990,099 3,659,031 5,146,536 519,438 7,697,222 871,174 4,392,937 32,618 16,672,634 12,199,290 5,810,332 3,554,325 4,979,475 503,316 7,696,882 146,971 4,380,205 14,453 1,089,749 784,205 179,767 104,706 167,061 16,122 340 724,203 12,732 201,178 178,000 860,805 43,666,749 2,000,000 15,142,963 10,657,423 100,000 0 10,093,720 656,811,7300 194,901 166,000 834,981 42,916,747 1,923,922 14,362,906 9,888,454 0 0 10,092,659 638,188,280 6,277 12,000 25,824 750,002 76,078 780,057 768,969 100,000 0 1,061 18,623,450 0 0 0 214,967 0 214,967 0 0 0 0 0 0 100 433,064 0 13,200 100 419,864 0 0 0 839,016 0 839,016 12,530,250 6,304,810 6,225,440* 33,618 33,617 1 12 83,425 3,202,791 0 7,220 0 12 * 76,205 * 3,202,791* 3,211,296 337,819 0 3,211,295 337,818 0 1 1 0 3,492,911 561,668 38,532 750,000 20,659,589 63,136 47,599 38,531 29,087 6,490,383 3,429,775* 514,069* 1* 720,913* 14,169,206 0 0 0 0 5,069,880 0 0 0 0 3,595,930 0 0 0 0 1,473,950 250,000 71,024 2,586,553 2,988,076 5,895,653 89,408 71,024 1,601,321 873,271 2,635,024 160,592 0 985,232 2,114,805 3,260,629 250,000 71,024 2,645,234 7,287,279 10,253,537 184,817 71,024 1,689,138 2,568,573 4,513,552 65,183 0 956,096 4,718,706 5,739,985 25,345,002 8,340,691 866,486 179,453 0 1,425,607 36,157,239 16,058,576 5,909,509 0 161,718 0 1,425,607 23,555,410 9,286,426 2,431,182 866,486 17,735 0 0 12,601,829 25,613,226 8,278,853 866,486 179,400 1,500,000 1,425,607 37,863,572 17,068,743 5,989,711 0 161,382 1,497,501 1,425,607 26,142,944 8,544,483 2,289,142 866,486 18,018 2,499 0 11,720,628 13 Appendix C Department of Corrections Comparative Statement of Appropriations and Expenditures Year Ended June 30, 2014 Appropriation Authority Inmate Fund Boonville Correctional Center $ Residential Treatment Facility Ozark Correctional Center - Personal Service Electronic Monitoring Local Sentencing Initiative Department of Corrections Command Center Personal Service Reentry - Expense and Equipment Division of Human Services Staff - Personal Service Division of Human Services Staff - Expense and Equipment Tipton Correctional Center Probation and Parole Staff - Expense and Equipment Kansas City Community Release Center Chillicothe Correctional Center - Personal Service Community Supervision Center - Expense and Equipment Total Inmate Fund Inmate Incareration Reimbursement Act Revolving Fund Inmate Incareration Reimbursement Act Total Inmate Incareration Reimbursement Act Revolving Fund Correctional Substance Abuse Earnings Fund Required Educational Assessment and Community Treatment (REACT) Total Correctional Substance Abuse Earnings Fund Institution Gift Trust Fund Institutional Gift Trust Total Institution Gift Trust Fund Total All Funds $ Expenditures 2013 Lapsed Balances ** Appropriation Authority Expenditures Lapsed Balances ** 34,953 3,989,458 268,926 1,780,289 40,000 0 3,086,265 0 1,128,501 39,990 34,953 903,193 268,926 651,788 10 34,525 3,989,458 266,508 1,780,289 815,337 0 3,087,251 0 1,212,646 39,990 34,525 902,207 266,508 567,643 775,347 557,390 199,500 138,225 460,693 28,421 116,532 96,697 171,079 21,693 553,338 316,232 136,863 446,513 165,464 133,627 106,825 150,768 3,236 34,068 90,471 4,703,605 48,622 28,635 7,846 0 1,830,009 41,247 0 26,222 90,471 2,873,596 7,375 28,635 37,764 89,897 7,703,605 48,332 28,362 33,372 0 1,625,055 45,319 0 4,392 89,897 6,078,550 3,013 28,362 740,000 12,654,142 600,219 7,339,723 139,781 5,314,419 750,000 16,550,510 354,077 7,143,314 395,923 9,407,196 750,000 426,858 323,142 750,000 224,508 525,492 750,000 426,858 323,142 750,000 224,508 525,492 264,600 217,745 46,855 264,600 215,265 49,335 264,600 217,745 46,855 264,600 215,265 49,335 30,000 30,000 750,441,209 9,839 9,839 694,396,993.00 20,161 20,161 56,044,216 10,000 10,000 727,573,829 9,865 9,865 680,033,658 135 135 47,540,171 * Biennial appropriations set up in the current fiscal year are re-appropriations to the next fiscal year. After the fiscal year-end processing has been completed, the unexpended appropriation balance for a biennial appropriation is established in the new fiscal year. Therefore, there is no lapsed balance for a biennial appropriation at the end of the first year. ** The lapsed balances include the following withholdings made at the Governor's request: General Revenue Fund Personal Service Expense and Equipment Costs in Criminal Cases Total General Revenue Fund $ $ Year Ended June 30, 2014 2013 10,104,696 11,837,084 1,019,563 1,269,972 1,141,818 0 12,266,077 13,107,056 14 Appendix D Department of Corrections Comparative Statement of Expenditures (From Appropriations) Salaries and wages Travel, in-state Travel, out-of-state Fuel and utilities Supplies Professional development Communication services and supplies Services: Professional Housekeeping and janitorial Maintenance and repair Equipment: Computer Motorized Office Other Property and improvements Debt service Real property rentals and leases Equipment rental and leases Miscellaneous expenses Rebillable expenses Refunds Program distributions Total Expenditures $ $ 2014 352,188,343 1,782,789 184,236 1,116,241 56,886,948 145,350 1,792,247 Year Ended June 30, 2013 2012 2011 348,666,611 341,900,328 347,585,453 1,766,914 1,743,718 1,613,206 193,039 211,337 209,014 651,172 626,289 650,054 58,326,111 56,737,906 56,032,373 178,273 212,300 181,463 1,964,947 2,327,392 1,509,483 2010 351,174,133 1,861,731 173,884 643,835 55,239,002 189,047 1,666,569 171,555,912 1,517,878 2,121,960 162,434,329 1,507,232 1,802,457 158,914,221 1,539,123 2,218,241 156,299,070 1,593,869 1,942,117 150,544,292 1,699,045 2,010,006 1,282 1,246,067 413,556 3,269,466 6,454,887 28,999 50,747,545 87,228 4,412,703 6,321 157,040 38,279,995 694,396,993 318,644 583,961 476,479 3,273,252 4,463,923 0 50,118,955 82,554 4,279,842 124,591 149,700 38,670,672 680,033,658 456,101 732,189 378,770 4,650,419 2,204,084 0 49,511,857 84,163 4,554,259 0 0 38,590,600 667,593,297 1,006,338 251,492 462,697 4,006,471 1,525,158 418,503 47,173,101 107,269 4,493,641 0 0 37,334,510 664,395,282 13,378 1,098,578 466,954 3,193,227 6,466,115 1,024,915 49,519,047 110,396 4,649,073 0 1,588 43,456,775 675,201,590 15 Appendix E Department of Corrections Comparative Statement of Revenues, Expenses, and Net Income Inmate Canteen Fund Year Ended June 30, 2014 2013 Revenues Institutional sales Total Income Cost of Sales Merchandise purchases Total Cost of Sales Gross Margin $ Expenses Institutional Expense Offender wages Inmate benefit Education Vocational education Library Law library Recreation Religion Cable television Therapeutic organization Canteen operations Total Institutional expense Other Income & Expense Other income and expense $ Total Other Income & Expense Total Expenses Net Income (Loss) 41,443,159 41,443,159 40,594,824 40,594,824 33,015,975 33,015,975 8,427,184 32,433,660 32,433,660 8,161,164 706,698 759,010 1,352,195 254,285 376,178 551,815 1,393,486 232,594 1,142,634 360,346 2,145,640 9,274,881 696,877 722,899 1,223,320 168,314 337,114 551,300 1,161,509 260,179 1,120,251 211,648 1,234,730 7,688,141 (1,674,228) (1,674,228) 10,949,109 (2,521,925) (1,352,048) (1,352,048) 9,040,189 (879,025) Note: Income and expenses on this statement will not agree to receipts and disbursements on Appendix A because this statement was prepared using the accrual basis of accounting and Appendix A was prepared using the cash basis of accounting. 16 Appendix F Department of Corrections Comparative Statement of Income, Expenses, and Net Income Working Capital Revolving Fund Year Ended June 30, 2014 2013 Income Sales - regular Sales - interdepartmental Other Total Income 25,892,229 1,236,315 893,938 28,022,482 25,666,803 1,386,188 1,025,852 28,078,843 Cost of Goods Sold Material Inmate labor Freight Physical inventory adjustment Total Cost of Goods Sold 12,382,748 1,356,997 50,088 71,900 13,861,733 12,171,857 1,281,023 47,256 395,996 13,896,132 Gross Profit Margin 14,160,749 14,182,711 Expenses Salaries and wages Benefits Other Total Expenses 5,949,977 2,911,609 5,950,872 14,812,458 6,043,121 2,808,600 7,662,539 16,514,260 Net Income (Loss) $ $ (651,709) (2,331,549) Note: Income, cost of goods sold, and expenses on this statement will not agree to receipts and disbursements on Appendix A because this statement was prepared using the accrual basis of accounting and Appendix A was prepared using the cash basis of accounting. 17 Appendix G Department of Corrections Comparative Statement of General Capital Assets Asset Type: Buildings Equipment Land Improvements Land Software and Miscellaneous Intangible Assets Tools Vehicles Total Fund of Acquisition: General Revenue Fund Elementary and Secondary Education - Federal and Other Facilities Maintenance Reserve Fund Department of Corrections - Federal Department of Natural Resources - Federal and Other Revenue Sharing Trust Fund Federal and Other Fund Gaming Proceeds for Education Fund Bingo Proceeds for Education Fund Board of Public Buildings - Series A 2003 Bond Proceeds-Projects Fund Third State Building - Pre Tax Act 1986 Fund Third State Building Trust - Pre Tax Act 1986 Fund Fourth State Building - Series A 1995 Fund Fourth State Building - Series A 1996 Fund Fourth State Building - Series A 1998 Fund Working Capital Revolving Fund Inmate Fund State School Money Fund ADA Compliance Fund Inmate Incarceration Reimbursement Act Revolving Fund Board of Public Buildings - Series A2006 - Chillicothe Prison Board of Public Buildings - Capital Assets Inmate Canteen Fund Total All Funds $ $ $ $ Department of Corrections June 30, 2014 2013 1,205,841,010 1,201,137,842 63,851,007 61,420,763 21,295,905 20,635,784 6,777,825 6,777,825 930,801 930,801 44,217 44,217 10,345,308 9,084,518 1,309,086,073 1,300,031,750 June 30, 2014 703,588,281 89,568 77,461,316 74,280,771 3,204 7,302,678 513,000 15,671 1,998 4,219,491 4,006,235 72,475,917 22,521,167 67,564,933 33,852,562 0 193,197 42,265 1,624,624 86,248 3,133,131 236,044,905 64,911 1,309,086,073 Missouri Vocational Enterprises June 30, 2014 2013 6,245,850 6,245,850 963,311 952,427 62,453 62,453 40,500 40,500 332,106 332,106 15,071,292 14,940,670 3,667,246 3,588,717 26,382,758 26,162,723 June 30, 2014 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 26,382,758 0 0 0 0 0 0 0 26,382,758 18