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

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State of GeorgiaAuditee’s Corrective Action PlansFor the Fiscal Year Ended June 30, 2012contact with the transition coordination agency, either the DAS or the DBHDD. Trends related to missing documentationwill be tracked and analyzed with the potential for impact on the contractor's performance/Report Card.Contact Person: Ahmad AbdullahTelephone: 404-657-7117 Fax: 770-344-3875 E-mail: aabdullah@dch.ga.govFinding Control Number: FA-419-12-06MATCHING, LEVEL OF EFFORT, EARMARKINGMatching of Allowable Medicaid Benefit ExpendituresThe Department of Community Health concurs with the finding. The three (3) expenditures noted in the audit sample werenot processed in accordance with policy and procedures due to misinterpretation of the policy and a delay in receiving theinvoices for processing. CMS requires that the match for payments for this program be based on date of payment to ensurethat it receives the correct federal match. The Department of Community Health will improve its communication withGeorgia Board of Physician Workforces to ensure that future payments are paid on time and based on the date of payment toensure that the correct federal match is used.Contact Person: Ahmad AbdullahTelephone: 404-657-7117 Fax: 770-344-3875 E-mail: aabdullah@dch.ga.govFinding Control Number: FS-419-12-100BUDGETDeficit Fund Balances/Statutory (Budgetary) Basis Financial Statement NoncomplianceDepartment of Community Health concurs with this finding. Items 1, 2, 3, and 4: The Department of Community Healthunderstands that it did not take all appropriate corrective actions to prevent the over expenditure of state appropriated funds.The Department of Community Health agrees with and will implement the auditor's recommendations. If at any time theDepartment of Community Health projects the funds appropriated will be insufficient to cover the projected amount ofprogram expenditures, the Department of Community Health will formally notify the Office of the Governor and the Officeof Planning and Budget. This notification will include:1. The amount of the projected shortfall by program area.2. A plan of action to prevent the accrual of expenditures.In addition, the Department of Community Health has recommended that the following structural changes to the budget willenhance the Department of Community Health's ability to achieve budgetary compliance.1. Create a Claims Reserve Program in Medicaid and SHBP: Funds appropriated to the Medicaid and SHBP ReservesFund programs can be used to cover unexpected fluctuations in expenditures in current fiscal year and be carriedover (as we are able) to build reserves for future years.2. Combine the ABD and LIM Programs in the Appropriations Act: Combining these two (2) programs into a singleprogram, in the Appropriations Act will give the Department of Community Health flexibility to cover shortfalls inone Medicaid program with additional funds in the other program. The Department of Community Health proposedto keep ABD and LIM as sub-programs to continue budgetary tracking and projections.Items 5, 6, 7, resulted from the transition of Department of Public Health as their own entity. The expenditures incurred wereafter the transition but for the prior year, however, the accounts payable section for Public Heath did not accrue the expenses.For attached agencies, going forward, management will set-up scheduled meetings with each agency to identify outstandingencumbered payments to determine if a rerate of expenses needs to be completed.Contact Person: Vince Harris, Chief Financial OfficerTelephone: 404-657-4859 Fax: 770-344-3875 E-mail: vharris@dch.ga.gov304
State of GeorgiaAuditee’s Corrective Action PlansFor the Fiscal Year Ended June 30, 2012Finding Control Number: FS-419-12-101ACCOUNTING CONTROLS (OVERALL)GENERAL LEDGERCASH, INVESTMENTS AND INVESTMENT RELATED ACTIVITYREVENUES AND RECEIVABLESBUDGETInadequate Year-End Close-Out and Accounting ProceduresDepartment of Community Health does not concur with this finding. Considering the size of the agency and that the financialstatements require several post closing entries for reserves, inter-agency transfers, rounding corrections, and additional entriesrequested by the external auditors as part of the financial statement preparation process. For FY 2012, 25 of the entries wererequired of the financial statement preparation process; 9 were reserve entries that cannot be prepared until the financialstatements are complete; 12 were transfer of balances related to Department of Public Health (at the request of SAO).In addition, FY 2012 was the first year DCH completed the financial statements utilizing the State Accounting Hyperionsystem. Several adjustments were made to adjust the account structure to be in sync with SAO' system, which requiredadditional steps and journal vouchers.Contact Person: Vince Harris, Chief Financial OfficerTelephone: 404-657-4859 Fax: 770-344-3875 E-mail: vharris@dch.ga.govAUDITOR’S CONCLUDING REMARKS:The Department of Community Health needs to seek ways to make their year-end close-out process more effective andtimely. Failure to do so could lead to delays in the release of statewide reports such as the Comprehensive Annual FinancialReport, the Single Audit Report and the Budgetary Compliance Report.Finding Control Number: FS-419-12-102ACCOUNTING CONTROLS (OVERALL)GENERAL LEDGERBUDGETEncumbrance ExceptionsThe Department of Community Health concurs with this finding. Management will request procurement to review all openpurchase orders prior to close of the module. A procedure will also be implemented requesting procurement to validate byapproval signature that all open purchase orders are valid.Contact Person: Vince Harris, Chief Financial OfficerTelephone: 404-657-4859 Fax: 770-344-3875 E-mail: vharris@dch.ga.govFinding Control Number: FS-419-12-103ACCOUNTING CONTROLS (OVERALL)BUDGETBudgetary Noncompliance on Statutory (Budgetary) Basis Financial StatementsThe Department of Community Health concurs with this finding. See auditee's response to FS-419-12-100.Contact Person: Vince Harris, Chief Financial OfficerTelephone: 404-657-4859 Fax: 770-344-3875 E-mail: vharris@dch.ga.gov305
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Single Audit ReportFiscal Year Ende
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Firefighters’ Pension Fund, Georg
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