Single Audit Report Fiscal Year Ended June 30, 2012 - State ...

State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012program. The Department could not provide proof of how the expenditure related to the operating ofthe Rapid Response program, and therefore, we determined the cost to be unallowable.Cause:Effect:Recommendation:Management failed to monitor compliance with Federal guidelines to ensure that expenditures chargedto the Federal program were allowable.Total questioned costs in the amount of $11,072.12. In addition, failure to ensure that programexpenditures are allowable can result in noncompliance with the OMB Circular A-87.The Department of Labor should implement controls to ensure that all expenditures charged to theFederal program are allowable under OMB Circular A-87.Finding Control Number: FA-440-12-04PERIOD OF AVAILABILITY OF FEDERAL FUNDSExpenses Recorded Outside of Grant PeriodUnemployment Insurance (CFDA 17.225)U.S. Department of LaborGrant Awards: Year 2011 – UI-21094-11-55-A-13Condition:Criteria:Our examination included a review of expenses charged by the Department of Labor (Department) forthe Unemployment Insurance (UI) Administration program. We noted three (3) expenses totaling$1,849.98 were recorded outside of the grant period.The Unemployment Insurance Administration grant is made up of non-automation and automationfunds. ET Handbook No. 336 defines automation funds as: "the costs of goods and services directlyrelated to the automation of UI operations. Automation goods consist of computers and theirperipheral and auxiliary equipment and associated software." The handbook also defines the fundingperiod as follows: "Non-automation funds must be obligated by December 31 of the following fiscalyear, and liquidated within 90 days thereafter. ETA may extend the liquidation date upon writtenrequest. Automation funds must be obligated by the end of the 3rd fiscal year, and liquidated within90 days thereafter. ETA may extend the liquidation date on written request."Questioned Costs: $1,849.98Federal regulations at 29 CFR 97.23(b) states: "A grantee must liquidate all obligations incurred underthe award not later than 90 days after the end of the funding period...The Federal agency may extendthis deadline at the request of the grantee."Information:A review of expenses recorded on the general ledger for the Unemployment Insurance Administrationnon-automation grants noted that there were expenditures recorded outside of the 2011 grant period ofavailability. Based on our review of grant awards provided by the Department, expenses for the fiscalyear 2011 Unemployment Insurance Administration non-automation grants (Fund Ledger 0210) shouldnot have been recorded after December 31, 2011. The following expenses were allowable expenses forthe program and should have been charged to the 2012 grant year:$910.00 charged on March 22, 2012$64.98 charged on May 29, 2012$875.00 charged on June 13, 2012Cause:Effect:The Department's policies and procedures for recording Unemployment Insurance Administrationexpenses to the proper grant period were inadequate.Failure to develop adequate policies and procedures can result in noncompliance with applicableFederal laws, regulations, and other compliance requirements. In this instance, three (3) paymentswere made that were outside the period of availability for the grant to which they were charged.105