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

State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012detailed in the Federal regulations of the WIA cluster program to ensure compliance with programrequirements.BEHAVIORAL HEALTH AND DEVELOPMENTAL DISABILITIES, DEPARTMENT OFFinding Control Number: FA-441-12-01PERIOD OF AVAILABILITY OF FEDERAL FUNDSExpenditures Charged Outside the Period of AvailabilitySocial Services Block Grant (CFDA 93.667)U.S. Department of Health and Human ServicesGrant Award: Year 2010 - 2010G992342Condition:Criteria:Our review of the Department of Behavioral Health and Developmental Disabilities (Department)Social Services Block Grant (SSBG) program revealed expenditures for fund source 30495, totaling$513,220.59, that were charged outside the period of availability.According to Section H of the OMB A-133 Compliance Supplement for 2012, "Any amounts awardedto the State for a fiscal year shall be available for obligation and expenditure until the end of the fiscalyear following the fiscal year for which the amounts were awarded."Questioned Cost: $513,220.59Cause:Effect:Recommendation:The deficiency noted above occurred as a result of the Department's failure to establish adequateinternal controls for recording SSBG program expenditures to the proper grant periods and payingprogram expenditures within the correct liquidation period.Failure to record and pay SSBG program expenditures to the proper grant periods results innoncompliance with Federal regulations and results in a questioned cost amount as identified.The Department of Behavioral Health and Developmental Disabilities should establish adequateinternal controls to ensure that SSBG program expenditures are recorded in accordance with period ofavailability requirements and paid out within the liquidation period.Finding Control Number: FA-441-12-02REPORTINGInternal Control DeficienciesBlock Grants for Prevention and Treatment of Substance Abuse (CFDA 93.959)U.S. Department of Health and Human ServicesGrant Awards: Year 2011 - 3B08TI010061-11S2; Year 2010 - 2B08TI010061-10Condition:Our examination included a review of the annual financial reports (SF-425) for the Block Grants forPrevention and Treatment of Substance Abuse program (CFDA No. 93.959) at the Department ofBehavioral Health and Developmental Disabilities (Department) that were submitted to the Federalawarding agency. For the year under review, reports submitted for the Federal fiscal year ending9/30/2011 were selected for testing. There were two (2) SF-425 financial reports submitted for theFederal fiscal year ending 9/30/2011, one (1) for Federal Grant Year 2010 and one (1) for FederalGrant Year 2011. The following deficiencies were noted:- There was no accurate reconciliation between the general ledger (TeamWorks FSCM) and the SF-425 reports.- The reconciliations between the Grants Accounting Reporting System (GARS) and the SF-425reports were incorrect.- The Department used journal entries to change the budget year on encumbrances payable andaccounts payable rather than making the change in the appropriate accounting system modules.109