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

State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Federal Funding Accountability and Transparency Act1 (“Transparency Act” or “FFATA”) andsubsequent OMB guidance, information on the first-tier subawards related to Federal contracts andgrants and the executive compensation of awardees must be made publicly available."Cause:Effect:Recommendation:The deficiency noted above was due to the Department's failure to implement adequate internalcontrols and procedures necessary to properly report the required FFATA information.Failure to properly report the required FFATA information results in noncompliance with Federalregulations.The Department of Behavioral Health and Developmental Disabilities should implement adequateinternal controls and procedures to ensure that all reporting requirements as identified in the OMBguidelines and instructions provided in the OMB "Open Government Directive - Federal SpendingTransparency and Subaward and Compensation Data Reporting" guidance are being met.Finding Control Number: FA-441-12-04SUBRECIPIENT MONITORINGFailure To Confirm DUNS Number Prior To Issuance Of SubawardBlock Grants for Prevention and Treatment of Substance Abuse (CFDA 93.959)U.S. Department of Health and Human ServicesGrant Awards: Year 2012 - 3B08TI010061-12S1; Year 2011 - 3B08T1010061-11S2; Year 2010 - 2B08T1010061-10Condition:Criteria:Based on our examination of subaward and approval documents for first-tier subawards granted tonon-ARRA Subrecipients of the Block Grants for Prevention and Treatment of Substance Abuseprogram (CFDA No. 93.959), the Department of Behavioral Health and Developmental Disabilities(Department) failed to confirm that applicants for non-ARRA subawards had registered for a Dun andBradstreet Data Universal Numbering System (DUNS) number prior to the issuance of the subaward.In accordance with OMB Circular A-133 Part 3, Section M: "A pass-through entity is responsible for:- Determining Subrecipient Eligibility - In addition to any programmatic eligibility criteria under E,"Eligibility for Subrecipients," for subawards made on or after October 1, 2010, determining whetheran applicant for a non-ARRA subaward has provided a Dun and Bradstreet Data Universal NumberingSystem (DUNS) number as part of its subaward application or, if not, before award (2 CFR section25.110 and Appendix A to 2 CFR part 25)."In accordance with Appendix A to 2 CFR Part 25:"B. Requirement for Data Universal Numbering System (DUNS) NumbersIf you are authorized to make subawards under this award, you:1. Must notify potential subrecipients that no entity...may receive a subaward from you unless theentity has provided its DUNS number to you.2. May not make a subaward to an entity unless the entity has provided its DUNS number to you."Cause:Effect:The deficiency noted above was the result of the Department's failure to implement appropriatepolicies and procedures to ensure compliance with verifying the DUNS number registrationrequirement for non-ARRA subrecipients.Failure to ensure non-ARRA subrecipients have registered for a DUNS number prior to the issuance ofa subaward results in noncompliance with Federal regulations.111