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

More documents

Recommendations

Info

State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Recommendation:The Department of Behavioral Health and Developmental Disabilities should implement appropriatepolicies and procedures to ensure that all non-ARRA subrecipients have registered for a Dun andBradstreet Data Universal Numbering System (DUNS) number prior to the issuance of subawards.TRANSPORTATION, DEPARTMENT OFFinding Control Number: FA-484-12-01DAVIS-BACONInternal Control Deficiencies/Noncompliance with Federal Program RegulationsHighway Planning and Construction (CFDA 20.205)U.S. Department of TransportationGrant Awards: Year 2012 - N4510.746; N4510.749; N4510.750; N4520.211; N4520.214; N4520.216Condition:Criteria:During our examination of twelve (12) project files maintained by three (3) Department ofTransportation (Department) District Offices, we identified ten (10) project files that containedinconsistent or incomplete payroll information or were missing the required labor interview forms. Inaddition, the Department failed to maintain evidence of the Equal Opportunity Officer's (EOO) reviewof certified payrolls and to document the follow up procedures performed for three (3) instances wherethe employee wage rate from the labor interview was not consistent with the certified payrolls andbelow the Federal wage rate determination.The Department's Construction Manual, 8.2 Project Payroll Review states, in part: "The Departmentconducts labor interviews of the contractor's and subcontractor's employees, including trainees; aminimum goal of 3 labor interviews per month on prime contractors and 3 per month on subcontractorsactive on the project shall be conducted on all Federal projects to verify payroll information." AreaEngineers will compile a report stating the total number of labor interviews conducted each quarter intheir Area and submit the report to the District EEO Officer for review.According to the Davis Bacon Act, 29 CFR 5.5 (a)(3) "...the contracting agency in a financiallyassistedconstruction contract has the primary, day-to-day responsibility for administering andenforcing the prevailing wage rate requirements in covered contracts." The contracting agency isresponsible for ensuring that the contractor maintains appropriate records by performing activities,such as reviewing certified payrolls in a timely manner, conducting employee interviews andconducting investigations.Cause:Effect:Recommendation:The Department of Transportation did not have adequate policies and procedures in place to ensurelabor interviews and reviews of certified payrolls were properly and consistently performed anddocumented in accordance with the Department’s Construction Manual.Inadequate policies and procedures could result in non-compliance with requirements of the DavisBacon Act.The Department of Transportation should develop and implement additional policies and procedures,as needed, to ensure labor interviews are properly and consistently conducted and evidence of certifiedpayroll reviews and investigations of reported wage rate inconsistencies is properly maintained.Finding Control Number: FA-484-12-02MATCHING, LEVEL OF EFFORT, EARMARKINGInaccurate Application of Matching PercentagesHighway Planning and Construction (CFDA 20.205)U.S. Department of TransportationGrant Awards: Year 2012 - N4510.746; N4510.749; N4510.750; N4520.211; N4520.214; N4520.216Condition:The Department of Transportation (Department) did not apply the correct matching percentages to four(4) out of 52 Highway Planning and Construction Cluster program expenditures tested.112
State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Criteria:The Office of Management and Budget (OMB) Circular A-133 Compliance Supplement, Part 1, Page1-6 states, in part: “As a condition of receiving Federal awards, non-Federal entities agree to complywith applicable laws, regulations, and the provisions of contract and grant agreements, and to maintaininternal control to provide reasonable assurance of compliance with these requirements.”According to Parts 3 and 4, Section G - Matching, Level of Effort, Earmarking of the OMB CircularA-133 Compliance Supplement: “Matching or cost sharing includes requirements to providecontributions (usually non-Federal) of a specified amount or percentage to match Federal awards.Matching may be in the form of allowable costs incurred or in-kind contributions (including third-partyin-kind contributions)...” “The State is generally required to pay a portion of the project costs.Portions vary according to the type of funds authorized and the type of project and are stated in projectagreements."Information:Cause:Effect:Recommendation:The matching percentages for the 52 Highway Planning and Construction Cluster programexpenditures, totaling $36,654,075.71, were verified by comparing invoice amounts to the FederalAllotment Notices. The errors identified above resulted in overcharges to the HPCC program totaling$216,529.60. The Department corrected the errors, which were identified during interim periodtesting, prior to the end of the fiscal year and included the appropriate credit expense amounts onsubsequent Federal Bills. Year-end testing did not disclose any additional errors.The Department did not have adequate internal control procedures in place to ensure that the matchingrequirements for the Highway Planning and Construction Cluster program were consistently met inaccordance with Federal regulations.Inadequate internal controls over matching requirements may result in Federal programs beingovercharged or undercharged in error. Overcharges to Federal programs may result in an interestliability being incurred.The Department of Transportation should consistently monitor Federal program expenditures andimplement additional policies and procedures, as needed, to ensure that the correct State matchingcontribution rates are properly applied to expenditures in accordance with Federal regulations.Finding Control Number: FA-484-12-03PROCUREMENT AND SUSPENSION AND DEBARMENTSPECIAL TESTS AND PROVISIONSInternal Control Deficiencies/Noncompliance with Federal Program RegulationsHighway Planning and Construction (CFDA 20.205)U.S. Department of TransportationGrant Awards: Year 2012 - N4510.746; N4510.749; N4510.750; N4520.211; N4520.214; N4520.216Condition:Criteria:The Department of Transportation’s (Department) Office of Materials and Research did notconsistently complete and/or maintain quarterly Materials Certificate (MC) Checklists in accordancewith the Department’s Quality Assurance program. During our examination of the Office of Materialsand Research project files, we noted that quarterly Materials Certificate Checklists were not completedfor 17 of the 23 projects tested even though the construction reports for these projects indicated thatmaterials were used. In addition, the Materials Certificate Checklists were not completed for four (4)projects that were funded with American Recovery and Reinvestment Act (ARRA) funds.According to the Department’s policies and procedures, Sections 20.2 and 20.3, "Projects let January2002 and after require a Materials Certificate Checklist to be completed and sent to the Office ofMaterials and Research, Materials Audit Unit for every project that has a construction report turned induring the preceding three months... The MC checklist shall be completed every January, April, Julyand October by the Project Engineer for every project that had work going on for the previous threemonths... The deadline to turn in the checklist is 30 days after the last day of the report month.”113
Page 1:
Single Audit ReportFiscal Year Ende
Page 11:
Report on Internal Control Over Fin
Page 14 and 15:
Foundation, Incorporated, Georgia T
Page 16 and 17:
Firefighters’ Pension Fund, Georg
Page 19 and 20:
Greg S. GriffinSTATE AUDITOR(404) 6
Page 21 and 22:
In our opinion, based on our audit
Page 23 and 24:
Activities Allowed or UnallowedFA-4
Page 25:
Findings and Questioned Costs
Page 29 and 30:
State of GeorgiaSummary of Auditor
Page 31:
Financial Statement Findings
Page 34 and 35:
State of GeorgiaFinancial Statement
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Page 42 and 43:
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
Page 50 and 51:
Page 52 and 53:
Page 54 and 55:
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
Page 64 and 65:
Page 69 and 70: State of GeorgiaFinancial Statement
Page 87: State of GeorgiaFinancial Statement
Page 91 and 92: State of GeorgiaFederal Awards Find
Page 137: Expenditures of Federal Awards
Page 141 and 142: State of GeorgiaSchedule of Expendi
Page 171 and 172:
State of GeorgiaSchedule of Expendi
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249:
Page 253 and 254:
State of GeorgiaNotes to the Schedu
Page 255 and 256:
Page 257:
Page 261 and 262:
State of GeorgiaSchedule of Cluster
Page 263 and 264:
Page 265 and 266:
Page 267 and 268:
Page 269 and 270:
Page 271 and 272:
Page 273:
Page 277:
Summary Schedule of Prior YearFindi
Page 280 and 281:
State of GeorgiaSummary Schedule of
Page 282 and 283:
Page 284 and 285:
Page 287 and 288:
State of GeorgiaSchedule of Prior Y
Page 289 and 290:
Page 291 and 292:
Page 293 and 294:
Page 295 and 296:
Page 297 and 298:
Page 299 and 300:
Page 301:
Corrective Action Responses toCurre
Page 305 and 306:
State of GeorgiaAuditee’s Correct
Page 307 and 308:
Page 309 and 310:
Page 311 and 312:
Page 313 and 314:
Page 315 and 316:
Page 317 and 318:
Page 319 and 320:
Page 321 and 322:
Page 323 and 324:
Page 325 and 326:
Page 327 and 328:
Page 329 and 330:
Page 331 and 332:
Page 333 and 334:
Page 335 and 336:
Page 337 and 338:
Page 339 and 340:
Page 341 and 342:
Page 343 and 344:
Page 345 and 346:
Page 347 and 348:
Page 349 and 350:
Page 351 and 352:
Page 353:
Page 357 and 358:
State of GeorgiaListing of Organiza
Page 359 and 360:
Page 361:
show all

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

Create successful ePaper yourself

Delete template?

Save as template?