This report can help identify areas of cost savings, develop risk analysis, and identify the best unit management practices already in place. Emphasis should be placed on the areas and units with the cost variances, rather than the actual dollar amounts of the variances. Our analysis of 13 cost categories at 57 prison units identified significant variances from expected costs. The most significant variances come from travel and miscellaneous fees and services. Significant variation from the expected cost is an indication of potential risk.
Management intends to perform further evaluation of the cost variances.
These cost variances indicate areas where cost savings potentially could be realized. These cost variances may indicate areas where adequate resources have not been dedicated. Not dedicating appropriate resources can lead to risks such as buildings not being properly maintained or inmates not being properly secured. Management needs to improve the accuracy of data maintained, expand the budgeting process to include unit budgets, and better identify industry operation cost. Contact the SAO about this report.