north carolina department of correction

NORTH CAROLINA DEPARTMENT OF CORRECTION
CORRECTION ENTERPRISES
2004 ANNUAL REPORT
CORRECTION ENTERPRISES
MISSION STATEMENT
•
To provide meaningful work experience and
rehabilitative opportunities for inmates and
provide quality goods and services to
tax-supported entities at a savings
to the taxpayers.
“Touching the Citizens
of North Carolina”
TABLE OF CONTENTS
Support from Governor Easley and Secretary Beck ........................................ 2
Greetings from the Director ................................................................................. 3
Laundry and Apparel .............................................................................................. 4
Manpower and Warehouse ................................................................................... 7
Metal and Janitorial .............................................................................................. 8
Paint, Signage and Tag .......................................................................................... 11
Print and Quick-Copy ............................................................................................12
Woodworking, Office Seating and Upholstery.................................................15
Farm, Cannery and Meat ..................................................................................... 16
Optical ..................................................................................................................... 19
Feature Articles .....................................................................................................20
Finance.................................................................................................................... 22
This annual report was created by the Correction Enterprises Print Plant using inmate labor.
“
Correction Enterprises plays a vital role in the successful
operation of the Department of Correction. Inmates are learning
valuable work skills and are becoming more productive while the
agency is producing a low-cost quality product.
”
- Governor Michael Easley
“
Through training and employment of inmates, Correction
Enterprises decreases inmate idleness creating a more
manageable inmate population in addition to helping the inmates
acquire transferable skills. Correction Enterprises also provides
valuable services and quality products to tax-supported entities
all across the state.
”
2
- Secretary Theodis Beck, Department of Correction
To the Valued Stakeholders of Correction Enterprises,
“Touching the Citizens of North Carolina” – The theme of this year’s annual report illustrates the impact
Correction Enterprises has on each citizen in our state, no matter what stage of life they are experiencing.
Correction Enterprises accomplishes this by providing quality products and services to tax supported entities,
while training inmates to achieve their full potential by giving them the tools needed to become successful,
tax-paying citizens upon release from incarceration.
This year, Correction Enterprises increased sales to a record level of $78,728,345. We achieved this
milestone by improving our operating efficiency and prudently managing resources. We began the process
of implementing standardized quality processes across all operational and support services to ensure that
all internal and external customers have a quality experience as Correction Enterprises continues to touch
their lives. We are committed to responsively satisfying the needs of our customers by providing consistent
and reliable products and services.
Correction Enterprises is dedicated to providing quality job training to inmates to aid in effectively
transitioning back to their communities. Inmates employed by Correction Enterprises have the opportunity
to learn positive work ethic, appropriate workplace behavior, and effective communication with co-workers
and supervisors. They also obtain time managements skills, responsibility for job performance, and the
satisfaction of producing high quality products. Correction Enterprises is focusing on skills based on inmate
training that, through partnerships with the NC Department of Labor and other industry organizations, will
provide inmates with the skills and certifications needed to gain employment upon release.
I would like to thank our long standing stakeholders for their continued confidence in our efforts to
accomplish the mission and goals of Correction Enterprises. This organization is successful due to the support
received from our valued customers, the leadership of the Department of Correction and the dedicated service
provided by the staff and inmates of Correction Enterprises. I look forward to another successful year touching
the lives of the citizens of North Carolina.
Sincerely,
Karen A. Brown
Director
3
Laundry Services
and Apparel Products
In North Carolina the impact of Correction
Enterprises begins very early. Often, the first
linen to touch our most precious citizens of the
future is processed in one of Correction
Enterprises’ seven laundries. This valuable
service helps public hospitals contain operating
costs and provide crucial patient care.
Correction Enterprises also provides linen and
scrub uniforms to public hospital facilities.
These products, and others, are made at three
sewing operations which provide valuable job
skills to over 250 inmate workers in North
Carolina. The impact of Correction Enterprises
reaches the lives of all North Carolina citizens
from infancy to adulthood.
4
Manpower and
Warehouse Services
The school day of children in North Carolina
is enriched by Correction Enterprises’
products and services. From the arrival of the
familiar yellow school bus that is serviced with
anti-freeze and other vehicle maintenance
products, to the bright safety vests and traffic
signs at the school crossing, Correction
Enterprises’ products promote a safe
environment for schools. Public school
systems also benefit from Correction
Enterprises’ service operations that install
sidewalk canopies, bleachers for athletic fields
and deliver textbooks to school systems
throughout North Carolina.
7
Metal and
Janitorial Products
North Carolina students are fed knowledge
from textbooks, but they are also served warm
meals from stainless steel kitchen equipment
manufactured by Correction Enterprises. From
serving counters to dirty dish tables, Correction
Enterprises is able to deliver functional
equipment. After the meal is served, Correction
Enterprises even cleans the dirty dishes.
Numerous school systems across North Carolina
benefit from Correction Enterprises’ full line of
dishwashing chemicals and technical support
services. This expertise is not just limited to the
kitchen; Correction Enterprises’ janitorial
products are used throughout public facilities
to provide a clean and healthy working
environment.
8
Paint, Sign
and Tag Products
North Carolina has a history of innovation
in transportation which we commemorate with
the First in Flight license tags manufactured by
Correction Enterprises. The Tarheel State also
has an excellent network of roads that enable
people to travel from the pristine shorelines to
the glorious summits of the Appalachian
Mountains and in between are the thriving
metropolitan areas and rich farmlands.
Fortunately, Correction Enterprises is there to
guide travelers along their way. With the large
green signs along interstates or traffic paints
that define North Carolina’s scenic byways,
Correction Enterprises is there to guide you to
your destination.
11
Print and
Quick-Copy Products
Public documents are generated by every taxsupported agency in North Carolina. Correction
Enterprises often sees this literature before its
recipients at its print and quick-copy facilities.
These facilities process thousands of
documents each year for distribution to citizens
throughout North Carolina. For example,
Correction Enterprises prints numerous
documents for the Department of Environment
and Natural Resources that inform citizens
about vacation opportunities at North
Carolina’s state parks and recreational areas.
Correction Enterprises’ printing and quick-copy
operations provide prompt service and savings
to the state, while providing inmates with
marketable skills.
12
Woodworking,
Office Seating and
Upholstery Products
North Carolina is a national leader in
furniture manufacturing and Correction
Enterprises’ furniture operations produce
exceptional products. From the hallowed halls
of the North Carolina state legislature to the
study halls of public schools and universities,
Correction Enterprises manufactures wooden
office furniture, cabinetry, upholstered and
reupholstered furnishings suitable for virtually
every setting. Moreover, cooperative
agreements with community colleges, the
Department of Labor, and Correction
Enterprises empower inmates to valuable
training necessary to transition successfully
back into society.
15
Farm, Cannery
and Meat Products
This large field of cabbage is one of several
crops raised on the 7,300 acre Caledonia Farm
in Halifax County. Farming enables inmates to
develop vocational skills and character in a
work environment that is often unfamiliar in an
urban society. The daylilies fields that adorn
North Carolina highways are raised here. Other
agribusinesses help reduce the cost of feeding
nearly 34,000 inmates. Caledonia Farm is also
the location of the Cannery Operation that in
years past has donated food to North Carolinians during natural disasters. A broiler operation is located on a 2,200 acre farm across the
Roanoke River in Northampton County. Correction Enterprises even brings home the bacon
from its Meat Processing facility in Harnett
County which processes over 12 million pounds
of meat products annually.
16
Optical Products
North Carolina is known as a four season
destination. In recent years, it has become an
attractive retirement community because of
the mild climate and quality of life. Correction
Enterprises’ operations make important
contributions to North Carolina’s senior adult
population. Correction Enterprises’ Optical
Plant in Nash County manufactures eyewear
through a contract with the Department of
Health and Human Services for all Medicaid
recipients. The plant also manufactures
glasses for students at the North Carolina
School for the Blind, patients in state hospitals,
inmates, and safety eyewear for government
employees. Correction Enterprises’ operations
do, indeed, touch the lives of every North
Carolinian.
19
North Carolina Correction Enterprises
Transition / Re-entry Initiative
From the “ White House
House”” to the “Big House
House”” the successful transition/re-entry of the inmate population is the long-term
programmatic goal of Correction Enterprises. Correction Enterprises has taken on the challenge from the President, the Governor
and Secretary Beck to play an active role in this initiative. Our goal is to provide work skills and certifications to enhance inmate
opportunities to readily secure employment upon release. Correction Enterprises has partnered with the North Carolina
Department of Labor and its Apprenticeship Program to provide certification of training skills received while working in our
manufacturing plants. This program provides a structured outline of training and documentation of skills and is highly recognized
by private industries across the nation.
Correction Enterprises presently has apprenticeship programs operating in the Print Plant, Metal Plant and Reupholstery
Plant. We are working to include several other Enterprise industries. Additionally, the Enterprise plan is to include industryaccredited programs from national organizations that will provide inmate proficiency certifications. Correction Enterprises plans
to work toward the development of internal certifications of proficiency in industries where outside accreditations are not
available.
This type of training and documentation of inmate work skills is critical to enhance the marketable jobs skills of the inmates
as they return to society. Correction Enterprises is striving for success in these initiatives while researching new initiatives, with
new partners that will provide additional opportunities for successful transition of inmates.
“
Correction Enterprises has partnered with the North Carolina Department of Labor and its Apprenticeship Program to provide certification of
training skills received while working in our manufacturing plants.
North Carolina Correction Enterprises
Does Make a Difference
20
”
Ralph Herbin was a young man in his early twenties when he committed a crime that sent him to prison in 1971. Ralph could
have given up on himself; whiled away his time in prison waiting out his sentence, but he knew he needed to do something to
improve himself or he would never have a future outside of the prison confines. Ralph began working at the Correction Enterprises
Metal Plant where he learned drafting, kitchen design and how to read shop drawings. He also took classes in mechanical
drafting that were offered at the plant through Rockingham Community College.
Ralph Herbin believes that his work at the Correction Enterprises metal plant was extremely valuable in providing him with
“hands on” experience in designing and fabricating metal products; skills that he used to develop a successful business after
completing his sentence. According to Herbin, Enterprises gave him a sense of pride and confidence through work on real
projects, like the kitchen renovations at Central Prison.
Herbin relates that a drafting instructor at the Enterprises Metal Plant provided a positive role model for him. Herbin was
impressed with the instructor’s professionalism. He was also impressed with the Enterprises supervisory staff and the pride
that they took in completing a job professionally.
Ralph was released from prison and started a business as a food service consultant, designing commercial kitchens. He is
thankful for the help he received in adjusting to life on the “outside” from the DOC parole staff. He is also thankful for the
training and confidence he gained while working at the Correction Enterprises’ Metal Plant. Correction Enterprises likes to
think of Ralph Herbin as an outstanding example of one of its most important product lines.
“
With the experience he received working at the Nash Optical Plant,
and with the support from the plant manager and optician, Preece was
able to obtain a job with a private optical firm.
A Successful Transition
”
At age 59, Richard Preece may well be the oldest student in the Leadership/Management Curriculum at Johnson Bible College
in Knoxville, Tennessee. While attending college, Preece also works as a quality control inspector for a wholesale food
distributor. His ultimate ambition is to eventually obtain a master’s degree and then teach at the college or junior college level.
That goal may seem like a large obstacle to climb for a man approaching an age when most are considering retirement, but
Preece has overcome more daunting obstacles. In 1988, he was an inmate at the Nash Correctional Institution in Nashville,
North Carolina and his future career opportunities appeared bleak. How could an inmate obtain job skills and prove to others
that he is capable and trustworthy of an important job? For Richard Preece, part of the answer was found at the Correction
Enterprises Nash Optical Plant where he learned to operate the various machines used for making eyeglass lenses. Enterprises
trains inmates like Preece to manufacture eyeglasses for state Medicaid patients, and for inmates of the North Carolina prison
system. In a short time Preece became so proficient at his job at the Nash Optical Plant that he was entrusted with the training
of other inmates to produce lenses with the sophisticated lens manufacturing equipment used at the plant.
In 2002, Preece was released from prison. With the experience he received working at the Nash Optical Plant, and with the
support from the plant manager and optician, Preece was able to obtain a job with a private optical firm. Preece believes that
he was lucky to get the technical training and experience he received at Nash Optical because the standards for perfection are
as detailed as those found at any private plant. He enjoyed working in optics and the job provided him with the means to
obtain more education and eventually earn a scholarship to pursue his studies.
The Correction Enterprises staff is proud to have helped Preece on his climb toward his goals. We are also mindful that our
customers who, through their support and purchase of Enterprises’ products, contribute toward helping inmates like Richard
Preece redirect their lives and climb their own mountain to respectability.
21
Total Inmate Compensation
FINANCIAL INFORMATION
4.00
STATEMENT OF FINANCIAL POSITION
June 30, 2004
3.50
3.00
ASSETS
Cash
Accounts Receivable
Less Allowable for Doubtful Accounts
Raw Material Inventories
Finished Goods Inventories
Investment
Total Current Assets
$ 20,734,684
9,908,214
(342,728)
7,728,545
4,233,309
153,791
$42,415,815
(millions)
2.50
Current Assets
2.00
1.50
1.00
0.05
0.00
Fixed Assets
Plant and Equipment
Less Accumulated Depreciation
Net Plant and Equipment
99/00
$ 73,364,781
(33,535,832)
$ 39,828,949
00/01
01/02
02/03
03/04
CE Labor
Inmate Labor
Other Assets
Construction in Progress
TOTAL ASSETS
$3,896,395
Cash Transfer to State Funds
In Millions of $’s
$86,141,159
12.00
LIABILITIES AND FUND EQUITY
10.00
$3,226,665
31,611
132,367
20,441
$3,411,084
$ 1,600,403
TOTAL LIABILITIES
$5,011,487
TOTAL LIABILITIES & FUND EQUITY
22
6.00
4.00
Long Term Liabilities
Compensated Absences
FUND EQUITY
Contributed Capital
Retained Earnings
8.00
(millions)
Current Liabilities
Accounts Payable
Accrued Payroll
Sales Tax Payable
Deferred Revenue
Total Current Liabilities
2.00
0.00
$ 20,313,000
60,816,672
$86,141,159
99/00
00/01
01/02
General Fund
Victims’ Compensation
02/03
03/04
Inmate Labor
Legislative Mandate
Sales by Major Customer
INCOME STATEMENT
For the Fiscal Year July 1, 2003 to June 30, 2004
Department of
Transportation
Other State
Agencies
All Other
OPERATING REVENUES
Sales*
Miscellaneous Sales
Total Operating Revenues
COST OF GOODS SOLD
GROSS MARGIN
OPERATING EXPENSES
Selling and Administrative Expenses
Depreciation Expenses
Bad Debt Expenses - Direct Write-Offs
Bad Debt Expenses - Allowance for Future Write-Offs
Total Operating Expenses
Department of
Correction
Department of Correction - 46%
INCOME FROM OPERATIONS
$ 78,093,541
634,804
78,728,345
59,189,475
$ 19,538,870
5,026,401
3,413,628
654,909
342,728
9,437,666
10,101,204
NON-OPERATING REVENUE
Gain (Loss) on disposition of assets
(29,474)
Income Before Operating Transfers
10,071,730
Department of Transportation - 25%
Cities & Counties 3%
OPERATING TRANSFERS
Transfers Out
Inmate Labor
Total Transfer to Other Funds
Hospitals - 5%
NET INCOME
Other State Agencies 15%
Public Schools - 4%
3,184,511
2,360,527
5,545,038
$4,526,692
Non-Profit Agencies - 1%
Colleges & Universities - 1%
*Includes $2,491.475 of Internal Sales
23
21
7
19
22
5
12
3
9
20
13
1
2
8
4
6
14
16
17
10
15
18
24
11
LOCATION OF CORRECTION ENTERPRISES PLANTS
1 - Administration - Headquarters - Raleigh
Forestry - Headquarters - Raleigh
Laundry Plant- Central Prison - Raleigh
Manpower Service - Headquarters - Raleigh
Metal Tag Plant - NCCIW - Raleigh
Package and Distributing - Garner
Quick-Copy Plant - NCCIW - Raleigh
Warehouse - Apex
13 - Print Plant - Nash Correctional Institution- Nashville
Optical Plant - Nash Correctional Institution - Nashville
2 - Broughton Laundry Plant - Morganton
14- Paint Plant - Johnston Correctional Institution - Smithfield
3 - Caledonia Farm - Caledonia Correctional Institution- Tillery
Caledonia Cannery - Caledonia Correctional Institution - Tillery
15-
4 - Chase Laundry Plant - Wayne Correctional Center - Goldsboro
5 - Craggy Laundry Plant - Craggy Correctional Center - Asheville
6 - Janitorial Products Plant - Harnett Correctional Institution-Lillington
Meat Processing Plant - Harnett Correctional Institution - Lillington
7 - Manpower Services - Caldwell Correctional Center - Hudson
8 - Manpower Services - Greene Correctional Center - Maury
9 - Manpower Services - Wilkes Correctional Center - Wilkesboro
10 - Metal Products Plant - Brown Creek Correctional Institution - Polkton
11-
New Hanover Laundry Plant - New Hanover Correctional Center - Wilmington
12 - Odom Farm - Odom Correctional Institution - Jackson
Pender Sewing Plant - Pender Correctional Institution - Burgaw
16- Sign Reclaiming Plant - Piedmont Correctional Institution - Salisbury
Reupholstery Plant - Piedmont Correctional Institution - Salisbury
17 - Sampson Laundry Plant - Sampson Correctional Institution - Clinton
18- Sewing Plant - Columbus Correctional Center - Whiteville
19 - Sewing Plant - Marion Correctional Institution - Marion
20- Sign Plant - Franklin Correctional Center - Bunn
21 - Umstead Laundry Plant- Umstead Correctional Center - Butner
22 - Upholstery Plant - Statesville
Woodworking Plant - Statesville
919-716-3600 • 1-800-241-0124 • www.doc.state.nc.us/eprise
Metal Products • Print & Quick-Copy Services • Office Furnishings • Paint • Janitorial Products
• Manpower Services • Food Products • Laundry Services • Oil and Lubricants • Safety Products
• Signage • License Tags • Roadway Markings • Linens and Apparel • Optical Manufacturing