Audit Report on the Department of Probation’s Administration of the Restitution Program

AUDIT REPORT IN BRIEF

This audit determined whether the Department of Probation’s (DOP) Central Restitution Unit (CRU) effectively administers the receipt and disbursement processes of restitutions that are imposed as a special condition of probation. DOP supervises probationers by monitoring and enforcing their compliance with the conditions of their probations.

CRU has adequate internal controls over its receipt and disbursement practices. In addition, its collection rate of restitution payments has increased significantly since 1997. The CRU Director attributed this increase to its automated Restitution Accounting System and more stringent enforcement measures taken by DOP probation officers.

However, there were some weaknesses in its procedures. CRU could have saved $5,140 (62%) of the $8,260 it spent for stop payments in June 2001 had it established a minimum amount of $25 for checks to be issued stop payments, as required by Comptroller’s Directive #11. In addition, CRU did not adequately document its efforts to locate missing beneficiaries who are owed restitution funds.

We made four recommendations, all of which are listed below. DOP should:

• Establish a dollar limit, not below $25, for checks for which the agency issues stop payments, in accordance with Comptroller’s Directive #11.
• Use the online method for issuing stop payments to lower the cost of banking fees.
• Set parameters regarding its search efforts to ensure that its resources are being used efficiently.
• Ensure that CRU staff more fully documents their efforts to locate missing beneficiaries.

In its response, DOP agreed to implement all of the report’s recommendations.