Other title: Dayton Correctional Institution

"Date of Report: June 11, 2014."; Includes bibliographical references.Report -- Exhibits.On December 4, 2012, the Ohio Department of Rehabilitation and Correction (ODRC) submitted a memo to the Ohio State Highway Patrol (OSHP) and the Office of the Ohio Inspector General alleging a Dayton Correctional Institution (DCI) business administrator had paid, during the period of July 1, 2011, through November 9, 2012, $77,030 from the Industry and Entertainment fund to individuals without entering into personal service contracts. On February 5, 2013, a joint investigation was opened to determine whether Industry and Entertainment funds had been properly spent. State law requires these funds only be spent for the entertainment and welfare of the inmates at each institution and requires the institution director to establish rules and regulations for properly expending the money. This investigation identified a lack of oversight by DCI wardens and the ODRC Division of Business Administration. As part of its oversight of local institutional funds including the Industry and Entertainment fund, ODRC Division of Business Administration relied on internal management audits and other information submitted by DCI to verify that the institution was in compliance with rules and regulations. However, this investigation and ODRC's December 2012 audit of DCI identified instances of noncompliance which raises an issue of whether the Ohio Fiscal Standards used by ODRC actually provide assurance that DCI local funds were managed and accounted for in accordance with applicable rules and regulations. Dayton Correctional Institution Business Administrator David Ragland was responsible for overseeing the institution's financial activities and controlled the entire purchasing process for the music and art programs paid from the fund, including making decisions on purchases, establishing instructor rates for the art class and music workshop instructors, and preparing the supporting paperwork and issuing checks to many of the vendors providing the goods or services. Additionally, this investigation determined that Ragland failed to adequately supervise Account Clerk Supervisor David Gedeon and identified instances in which Gedeon failed to comply with applicable rules and regulations. DCI spent 56 percent of the Industry and Entertainment fund on music and art programs, of which approximately 46 inmates, or 5 percent of DCI's inmate population (as of September 2013 ) participated. This level of participation was contrary to OAC Sec. 5120-5-04 which states that "... no disbursements will be approved for items to be used for the benefit of an individual inmate, inmate group, or employees." Ragland was placed on administrative leave on January 22, 2013, and retired from ODRC on October 31, 2013