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

State of GeorgiaSchedule of Prior Year Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012BEHAVIORAL HEALTH AND DEVELOPMENTAL DISABILITIES, DEPARTMENT OFFinding Control Number: FA-441-11-02REPORTINGInternal Control DeficienciesCorrective Action Plan implemented and formalized in agency policy 17-205. Also, DBHDD Grants Management section isnow preparing and submitting annual Federal Financial Status Reports for each grant issued to agency, including interim andfinal reports.Finding Control Number: FS-441-11-05CASH, INVESTMENTS AND INVESTMENT RELATED ACTIVITYInadequate Bank Reconciliation ProceduresAll corrective actions completed, resulting in a new reconciliation form and GL Activity Ledger to prevent repeat findings. Areview of 3rd Quarter's reconciliation indicates positive results and compliance.NATURAL RESOURCES, DEPARTMENT OFFinding Control Number: FS-462-11-02ACCOUNTING CONTROLS (OVERALL)EXPENSES/EXPENDITURES AND LIABILITIESFINANCIAL REPORTING AND DISCLOSUREBUDGETInvalid EncumbrancesThe Department has implemented procedures to review and cancel purchase orders that are determined to be invalid.Finding Control Number: FS-462-11-101ACCOUNTING CONTROLS (OVERALL)GENERAL LEDGERBUDGETInadequate Journal Entry Documentation and Questionable Journal Entry ProcessThe department developed internal control procedures requiring journal entries be reviewed and approved, and that adequatedocumentation is attached to support transactions. Many of the journal entries made during period 998 are required to reducethe number of post closing entries that have to be made. During the fiscal year most corrections are made directly in themodules, but the modules are not open during period 998.CORRECTIONS, DEPARTMENT OFFinding Control Number: FS-467-11-01CASH, INVESTMENTS AND INVESTMENT RELATED ACTIVITYInadequate Bank Reconciliation ProceduresFollowing the replacement of the employee responsible for bank reconciliations and the determination of their inaccuracy,it was decided that we should redo the prior period bank reconciliations. Those reconciliations are now complete. TheDepartment has begun the process of rectifying the remaining reconciliation items including the checks over one year old.286