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

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State of GeorgiaSchedule of Prior Year Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Finding Control Number: FS-427-11-04ACCOUNTING CONTROLS (OVERALL)EXPENSES/EXPENDITURES AND LIABILITIESBUDGETInadequate Journal Entry DocumentationThe automated journal entry process is being implemented. Journal preparations have been standardized across DHSincluding requiring clear evidence leading to the decision to request the JE and standard PeopleSoft query results.Finding Control Number: FS-427-11-07GENERAL LEDGERREVENUES AND RECEIVABLESFailure to Record Federal Grant Awards in a Timely MannerDHS is working to improve the collection of grant award notices and the recording of grant awards.Finding Control Number: FS-427-11-08GENERAL LEDGERREVENUES AND RECEIVABLESFailure to Reconcile A/R to the General LedgerDHS is working to resolve AR variances.Finding Control Number: FS-427-11-09GENERAL LEDGEREXPENSES/EXPENDITURES AND LIABILITIESA/P Reconciliation Inaccurate/incompleteDHS Accounts Payable is reviewing the items that are over 60 days old. This procedure, along with other reconciling items,is now on the monthly close checklist. Significant progress has been made.Finding Control Number: FS-427-11-11CASH, INVESTMENTS AND INVESTMENT RELATED ACTIVITYInadequate Bank Reconciliation ProceduresDHS has worked to post all book adjustments and address old outstanding checks. For all accounts except the Operatingaccount, significant progress to reduce the number of outstanding items has been made.Finding Control Number: FS-427-11-12REVENUES AND RECEIVABLESInadequate Procedures Over Cash Draws of Federal GrantsAll cash draws are being reviewed and approved by the Revenue Manager timely. DHS is now using the Clearance Patternspecified in the Treasure-State agreement. DHS has cleaned up the Cash Management Database (CMD) and implementedprocedures to maintain it to improve the cash draw process.LABOR, DEPARTMENT OFFinding Control Number: FA-440-11-06REPORTINGReports not Reconciled to the Accounting RecordsThe Department formally met and has agreed with the State Auditors to establish a Formalized Reconciliation Procedure that284
State of GeorgiaSchedule of Prior Year Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012will clearly link the Accounting Records to the Federal Reports.Finding Control Number: FS-440-11-01ACCOUNTING CONTROLS (OVERALL)Inadequate Supporting Documentation for Adjusting Journal EntriesThe Department has implemented procedures to improve the level of documentation that is readily available to supportadjusting journal entries made by the Department. This documentation has been included as a part of the Department'sAccounting and Procedures Manual.Finding Control Number: FS-440-11-05GENERAL LEDGERREVENUES AND RECEIVABLESInadequate Procedures over Cash Draws of Federal GrantsThe Department has implemented additional procedures to improve the timing of cash drawn from the Federal Governmentwith payment of the actual expenditures. These additional procedures include the scheduling of draw downs on a morefrequent basis and creation of a new consolidated management report that groups Federal expenditures by funding source.However, the auditor’s testing continues to incorrectly include flawed procedures in doing their cash management testing asdiscussed below:1. The auditors continued to use accounting period dates as the date draw downs of Federal cash were made instead ofpost dates (calendar date the transaction actually occurred). The difference in timing between these dates can be asmuch as 30 days thereby giving an inaccurate conclusion.2. The auditors did not take into consideration the extent Obligation Authority was available based on the expenditurescharged to the grant. In all cases, the auditors mistakenly assumed all expenditures charged to a grant were availableto be immediately reimbursed by a Federal Grant even though, in some cases, expenditures exceeded ObligationAuthority. In such cases, temporary program deficits did exist until Obligation Authority was received at a later date(i.e. operating under federal continuous resolution) or expenditures were subsequently moved to another FederalGrant.AUDITOR CONCLUDING REMARKS:Accounting period dates provide the best measurement of cash drawdown activity. Post dates (calendar dates) could includeactivity in months not within the fiscal year.Finding Control Number: FS-440-11-08BUDGETProgram Budget DeficienciesThe Department of Labor maintains its accounting records on the FARS (Federal Accounting and Reporting) accountingsystem, which is used by many other State Labor Departments across the Nation. As noted by the auditor, this system doesnot facilitate maintaining accounting records on a program by program basis as the system is designed to provideinformation to the U.S. Department of Labor in a uniform reporting format from the various States.285
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Single Audit ReportFiscal Year Ende
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Report on Internal Control Over Fin
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Foundation, Incorporated, Georgia T
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Firefighters’ Pension Fund, Georg
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Greg S. GriffinSTATE AUDITOR(404) 6
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In our opinion, based on our audit
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Activities Allowed or UnallowedFA-4
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Findings and Questioned Costs
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State of GeorgiaSummary of Auditor
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Financial Statement Findings
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State of GeorgiaFinancial Statement
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State of GeorgiaFederal Awards Find
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Expenditures of Federal Awards
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State of GeorgiaSchedule of Expendi
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State of GeorgiaAuditee’s Correct
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State of GeorgiaListing of Organiza
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