Commonwealth of Virginia Single Audit Report for the Year Ended ...

More documents

Recommendations

Info

REVENUES 11-15: Resolve Employer Wage Discrepancies Timely Applicable to: Virginia Employment Commission The Tax Reconciliation Unit is not consistently reviewing and resolving wage discrepancies in a timely manner. Employers report wages paid to employees to the Employment Commission, which verifies the amounts reported against other sources of information such as tax returns. Differences between the amounts reported to the Employment Commission appear on various wage discrepancy reports and the Tax Reconciliation Unit reviews and resolves discrepancies that meet certain thresholds. During our review, we found the Tax Reconciliation Unit did not adequately resolve three out of 16 (19 percent) wage discrepancies tested in a timely manner. These wage discrepancies date from January 2008, March 2010, and January 2011. While the Tax Reconciliation Unit staff did identify these discrepancies and contact the employer, they did not perform additional follow up and these discrepancies remain unresolved. In addition, the Tax Reconciliation Unit does not have consistent polices for what constitutes timely resolution of identified discrepancies. During our review, we also requested a complete listing of wage discrepancies that the Tax Reconciliation Unit was currently working on and the Unit told us multiple times they could not provide us with a complete listing. Tax Reconciliation staff subsequently provided us with several listings, but the listings were incomplete and did not include information on the discrepancy amount or age of the discrepancy. As a result, we were unable to determine the total number of discrepancies or total dollar amount of discrepancies the Unit is currently researching. We recommend the Tax Reconciliation Unit improve their review and resolution process for wage discrepancies to ensure timely resolution of discrepancies over the established thresholds. The Unit should also ensure they have consistent policies on timely resolution of the discrepancies as well as information necessary to track and monitor the status of discrepancies under review. Management Plan for Corrective Action for Unemployment Insurance – Tax Reconciliation Unit Formal policies and procedures are being developed that will result in a consistent review and resolution of wage discrepancies. These policies and procedure will also establish specific expectations as to when action is to be taken on this issue. There will also be a tracking mechanism employed to monitor the work. The Tax Reconciliation Unit will be primarily responsible for the execution of this policy. However, Regional Tax Managers and Local Tax Representatives will also be utilized to ensure each instance of a wage discrepancy is resolved. All employees who will be affected by this policy will receive training. The overall process will be under the purview of the Chief of Tax office in the coordination with the Unemployment Insurance Director. Responsible Party: William Walton, Unemployment Insurance Director Estimated Completion Date: March 31, 2012 27
11-16: Refine Estimates and Report Annual Cost Settlements to the State Comptroller Applicable to: Department of Behavioral Health and Developmental Services BHDS provides services which it can bill to Medicaid and Medicare. After each fiscal year, BHDS and Medicaid and Medicare agree on a settlement amount, the difference between allowable costs and the amount Medicaid and Medicare paid during the fiscal year. BHDS has received an average of $18 million each year over the past four years from settlements. BHDS factors these settlements into their budget. Fiscal staff estimated that BHDS will receive $15.8 million in revenue in fiscal 2012 based on its billable costs from fiscal 2011. Going forward, management should have the fiscal staff refine their methodology for estimating BHDS’ annual cost settlements using the best information available, and report to the State Comptroller the resulting receivable or payable. Management Plan for Corrective Action for the Department of Behavioral Health and Developmental Services DBHDS has researched this issue with the Department of Medical Assistance Services (DMAS) and found that DMAS computes an estimated settlement amount for all of its providers including DBHDS. This amount is reported to the Department of Accounts as part of DMAS’ attachment process. The estimate by DMAS now forces a requirement by DBHDS to report the exact estimate as DMAS in order to produce the proper netting out effect of the receivable/payable on the Comprehensive Annual Financial Report (CAFR) of the Commonwealth of Virginia. We have discussed this issue with DMAS staff and will use their estimate of the settlement amount as part of our attachment financial reporting to the Department of Accounts. This will commence with the fiscal year 2012 year end closing and GAAP basis financial reporting process. Responsible Party: Ken Gunn (DBHDS Director of Budget and Financial Reporting), Karen Stephenson (DMAS Controller) Estimated Completion Date: August 31, 2012 EXPENSES 11-17: Improve Controls over Small Purchase Charge Card Program Applicable to: Department of Motor Vehicles Motor Vehicles need to address the following issues in its Small Purchase Charge Card (SPCC) program. • The Accounting Department paid credit card bills without knowing if the billing amounts were correct, since some cardholder supervisors did not confirm whether to pay the bill. 28
Page 1 and 2: COMMONWEALTH OF VIRGINIA SINGLE AUD
Page 3 and 4: - T A B L E O F C O N T E N T S - P
Page 5 and 6: INDEPENDENT AUDITOR’S REPORT ON I
Page 7 and 8: REPORT ON COMPLIANCE WITH REQUIREME
Page 9 and 10: prepare the financial statements. T
Page 11 and 12: 84.318, 84.386 Educational Technolo
Page 13 and 14: We further recommend that Motor Veh
Page 15 and 16: Not including the specific access o
Page 17 and 18: ABC is required by the Commonwealth
Page 19 and 20: We recommend that Motor Vehicles de
Page 21 and 22: Management Plan for Corrective Acti
Page 25 and 26: 11-10: Improve Information Security
Page 27 and 28: We recommend that DMV dedicate the
Page 29: 11-14: Improve Microsoft SQL Server
Page 35 and 36: ecord of the individuals receiving
Page 37 and 38: We recommend that Social Services d
Page 39 and 40: alternative solutions with the Depa
Page 41 and 42: U.S. DEPARTMENT OF EDUCATION 11-23:
Page 49 and 50: COMMONWEALTH OF VIRGINIA Resolution
Page 55 and 56: COMMONWEALTH OF VIRGINIA Schedule o
Page 81 and 82:
COMMONWEALTH OF VIRGINIA Schedule o
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
is classified as direct expenditure
Page 125 and 126:
Federal Department Detail Amount Ex
Page 127 and 128:
$205,061 are not included in the ac
Page 129 and 130:
financial assistance will be reflec
Page 131 and 132:
CFDA # Federal Program Name Amount
Page 133 and 134:
Page 135 and 136:
Page 137:
COMMONWEALTH OF VIRGINIA CONTACT LI
show all

Commonwealth of Virginia Single Audit Report for the Year Ended ...

Create successful ePaper yourself

Delete template?

Save as template?