RD235 - Special Review of the Virginia Department of Corrections Agribusiness Program - September 2015


Executive Summary:
Under § 1-25. Office of the State Inspector General, Item 63 G. of the 2014 Special Session I Acts of the General Assembly (hereafter referred to as the 2014 Appropriations Act), Chapter 2, the Office of the State Inspector General shall review the agribusiness program within the Department of Corrections. This report contains the results of our evaluation. Based on the language in Item 63 G., we focused our review on the following objectives:

• To determine the costs and benefits to the Commonwealth of utilizing offender labor to operate the correctional farm system.

• To determine the value of cooperative agreements with Virginia’s institutions of higher education to improve productivity of the system.

• To determine the actual cost of food per offender per day within Virginia’s correctional institutions.

• To determine, to the extent feasible, the experience of other states’ agribusiness programs.

• To determine potential efficiencies, cost savings, and productivity improvements within the agribusiness program.

The review, due to the areas identified in the Appropriations Act, included some elements of the Food Services program, the Statistical Analysis and Forecast Unit, and Information Systems.

For fiscal year 2014 (FY 2014), the cost of using offender labor for the Agribusiness program was approximately $6.3 million lower than the cost of using civilian labor (at FY 2014’s minimum wage). The cost of food per offender per day was $2.03, while the total cost to feed each offender per day was $4.65. The total cost to feed each offender includes food, security, fixed asset depreciation, food service staff compensation, and operating expenses.

The cost of food in other states varied from $1.57 in Georgia to $3.75 in Oklahoma. The total cost of feeding the offenders per day varied from $2.92 in South Carolina to $5.58 in Arkansas.

Cooperative agreements with universities have proven to be beneficial to both the Agribusiness program and the universities based on our discussions and review of relevant documentation provided by the Virginia Department of Corrections (VADOC) and the applicable universities. Examples of benefits include, cost savings for veterinary services rendered, processed milk provided to Virginia Tech, and student access to live animals to support their educational experience.

Overall, the Office of the State Inspector General (OSIG) staff found that the VADOC Agribusiness program is operating efficiently and effectively. The program is beneficial to VADOC, the Commonwealth, its citizens, and the offenders through lower food costs. Offenders learn job skills and obtain certifications which have been shown to decrease misbehavior and recidivism, and increase post-release employment.

OSIG staff reached these conclusions after:

• Gaining an understanding of the Agribusiness program,

• Calculating costs of offender labor and food using financial data obtained from the VADOC and the Department of Accounts, and

• Gaining an understanding of potential benefits for all parties involved.

During the review OSIG made a number of recommendations, the most significant of which are listed below, where current processes could be improved:

Program Recommendations

1. Increase employment of Level 2 and Level 3 offenders
2. Improve alignment of training and certifications to job market and offender needs
3. Enhance Agribusiness program relationship with the VADOC Division of Education
4. Enhance tracking and analysis of recidivism
5. Provide opportunities for further collaboration with universities and others