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YELLOW SHEET Office of the State Auditor of Missouri |
February 13, 2002
Report No. 2002-13
Financial
stability of prisoner job program may be at risk if current trends continue
This audit reviewed the Department of
Correction�s vocational enterprises program (the program), which employs
inmates in jobs that teach skills they can use after release from prison.� The inmates produce goods (such as office
furniture) and offer services (such as dry cleaning) purchased by state
agencies or political subdivisions.� The
following highlights the audit�s findings:
Program lost $5 million in 2001 due to state budgetary
changes
In fiscal year 2001, state
budget and department officials for the first time charged the program $2.5
million in building usage rent.� Officials
imposed the rent by moving a like amount of fuel and utility costs from the
department's General Revenue Fund budget to the program�s budget.� In addition, the program paid $2.3 million
in salary costs for department teachers, correctional officers and clerks with
duties unrelated to the program. Continued responsibility for these unnecessary
costs could put the program's future at risk.�
(See page 2)
$1.4 million lost in waste
tire recycling operation
The waste tire operation has lost
$1.4 million since 1995 after accepting many jobs at below operation costs and
underestimating some job costs.�
Auditors found the average site clean-up costs the program $217 per ton,
but the program only charged $100 to $150 per ton for its work.
In addition, the program pays
a private trucking firm up to $5,000 annually to haul away the shredded tire
byproduct resulting from the clean-up projects.� The program discards most byproduct material because state law restricts
the program from selling its products on the open market and government operations
rarely need this material.� The ability
to sell all byproduct material to private companies could produce up to $75,000
a year in extra revenue and save the disposal expenses.� (See page 5)
Program ineffective in
mission to improve prisoner work opportunities
More than half the inmates
have long-term sentences and may never use their new job skills in an outside
workplace, which is inconsistent with the program�s mandated mission to
increase prisoner work opportunities upon release.� Auditors found 55 percent of participating inmates are serving
life-sentences or have more than 10 years left in prison.� This situation occurs partly because the
factories are primarily located at prisons with higher populations of long-term
prisoners.� (See page 15)
$1 million in lost sales
when some state agencies had program bid for business
Three state agencies requested or required the program to submit bids with private sector vendors for some agency purchases.� As a result, the program lost more than $1 million in sales.� Agency officials justified the bidding practice because they received better prices from private sector businesses; however, state law requires state agencies to purchase program products without requiring bidding. �(See page 8)
