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

State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012-Determining Subrecipient Eligibility“… for subawards made on or after October 1, 2010, determining whether an applicant for a non-ARRA subaward has provided a Dun and Bradstreet Data Universal Numbering System (DUNS)number as part of its subaward application or, if not, before award…”-Central Contractor Registration (CCR)“For ARRA subawards, identifying to first-tier subrecipients the requirement to register in the CentralContractor Registration, including obtaining a DUNS number, and maintaining the currency of thatinformation...”-Award Identification“At the time of the subaward, identifying to the subrecipient the Federal award information (i.e.,CFDA title and number; award name and number; if the award is research and development; and nameof Federal awarding agency) and applicable compliance requirements. For ARRA subawards,identifying to the subrecipient the amount of ARRA funds provided by the subaward and advising thesubrecipient of the requirement to identify ARRA funds in the Schedule of Expenditures of FederalAwards (SEFA) and the SF-SAC…”-During-the-Award Monitoring“Monitoring the subrecipient’s use of Federal awards through reporting, site visits, regular contact, orother means to provide reasonable assurance that the subrecipient administers Federal awards incompliance with laws, regulations, and the provisions of contracts or grant agreements and thatperformance goals are achieved.”-Subrecipient Audits“(1) Ensuring that subrecipients expending $500,000 or more in Federal awards during thesubrecipient’s fiscal year for fiscal years ending after December 31, 2003 as provided in OMB CircularA-133 have met the audit requirements of OMB Circular A-133…” “…and that the required audits arecompleted within 9 months of the end of the subrecipient’s audit period; (2) issuing a managementdecision on audit findings within 6 months after receipt of the subrecipient’s audit report; and (3)ensuring that the subrecipient takes timely and appropriate corrective action on all audit findings. Incases of continued inability or unwillingness of a subrecipient to have the required audits, the passthroughentity shall take appropriate action using sanctions.”-Pass-Through Entity Impact“Evaluating the impact of subrecipient activities on the pass-through entity’s ability to comply withapplicable Federal regulations.”In addition, the Highway Planning and Construction Cluster (HPCC) program compliancerequirements included in Part 4 of the OMB Circular A-133 Compliance Supplement state that “StateDOTs are responsible for determining that subrecipients of Federal-aid highway funds have adequateproject delivery systems for projects approved under 23 USC. They also are required to determinewhether subrecipients have sufficient accounting controls to properly manage such Federal-aidfunds…”Information:Cause:Effect:According to interviews with the Department's Internal Audit Division, the reported corrective actionplan for finding control number FA-484-11-03 is scheduled to be in effect on July 1, 2012 (fiscal year2013).The deficiencies noted were the result of the Department’s failure to have adequate internal controlpolicies and procedures in place to ensure compliance with the A-133 requirements for SubrecipientMonitoring.We were unable to determine if the Department complied with the Subrecipient Monitoringrequirements as a result of these deficiencies. In addition, inadequate internal controls over116