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

Foundation, Incorporated, Georgia Tech Athletic Association, Georgia Tech Foundation,Incorporated, Kennesaw State University Foundation, Incorporated, MCG Health System,Incorporated, Medical College of Georgia Foundation, Incorporated, Medical College of GeorgiaPhysicians Practice Group Foundation, North Georgia College & State University Real EstateFoundation, Incorporated, University of Georgia Athletic Association, Incorporated, Universityof Georgia Foundation, University System of Georgia Foundation, Incorporated, and VSUAuxiliary Services Real Estate Foundation, Incorporated, audited by other auditors, were notaudited in accordance with Government Auditing Standards.Internal Control Over Financial ReportingManagement of the State of Georgia is responsible for establishing and maintaining effectiveinternal control over financial reporting. In planning and performing our audit, we and otherauditors considered the State of Georgia’s internal control over financial reporting as a basis fordesigning our auditing procedures for the purpose of expressing our opinion on the financialstatements, but not for the purpose of expressing an opinion on the effectiveness of the State ofGeorgia’s internal control over financial reporting. Accordingly, we do not express an opinionon the effectiveness of the State of Georgia’s internal control over financial reporting.Our consideration of internal control over financial reporting was for the limited purposedescribed in the preceding paragraph and was not designed to identify all deficiencies in internalcontrol over financial reporting that might be significant deficiencies or material weaknesses andtherefore, there can be no assurance that all deficiencies, significant deficiencies, or materialweaknesses have been identified. However, as described in the accompanying schedule ofFindings and Questioned Costs, we and other auditors identified certain deficiencies in internalcontrol over financial reporting that we and other auditors consider to be material weaknessesand other deficiencies that we and other auditors consider to be significant deficiencies.A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, toprevent, or detect and correct, misstatements on a timely basis. A material weakness is adeficiency, or a combination of deficiencies, in internal control such that there is a reasonablepossibility that a material misstatement of the State of Georgia’s financial statements will not beprevented, or detected and corrected, on a timely basis. We and other auditors consider thedeficiencies described in the accompanying schedule of Findings and Questioned Costs to bematerial weaknesses.Community Health, Department of:FS-419-12-100FS-419-12-101FS-419-12-103Human Services, Department of:FS-427-12-01FS-427-12-08FS-427-12-09FS-427-12-100Community Affairs, Department of:FS-428-12-100Labor, Department of:FS-440-12-05FS-440-12-100Revenue, Department of:FS-474-12-01Transportation, Department of:FS-484-12-03FS-484-12-100FS-484-12-101Georgia Perimeter College:FS-571-12-036