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

State of GeorgiaAuditee’s Corrective Action PlansFor the Fiscal Year Ended June 30, 2012HUMAN SERVICES, DEPARTMENT OFFinding Control Number: FA-427-12-01MATCHNG, LEVEL OF EFFORT, EARMARKINGPROGRAM INCOMEREPORTINGFinancial Reporting Internal Control DeficienciesWe concur with this finding. The department continues to improve the reconciliation process to address the audit findings. Anew reconciliation process was implemented for the December 2011 reports and has been refined based on the audit findings.The Unidentified reconciliation item of $2,408,029.04 reported in the finding was the result of using the new process toreview and revise the 9/30/2011 reconciliation. The item was identified prior to completing the revised reconciliation andhad no impact to the federal report for quarter end 9/30/2011.The reconciliation process, procedures and forms have been further revised and are effective for the 12/31/2012 reportingcycle. The revision includes the following:1. Improved documentation of variances between the Grants Accounting and Reporting System (GARS) and thegeneral ledger.2. Improved documentation of reconciliation of amounts other than federal funds for expenditures, payables andencumbrances.3. Inclusion of a section for explanation of adjustments.4. Documentation of the basis of accounting5. The form has added formulas to reduce potential for calculation errors.6. A schedule to validate compliance with match, level of effort, earmarking and the reconciled between the generalledger and the financial status report. The schedule also provides for checks and balance related to specific reportingcategories of federal and other funds; non-general ledger funds, non-other reporting funds, and documentation ofreviews. It also includes a note section for explanations.We do expect the auditors to understand we use GARS as tool for federal reporting. We are in the process of evaluatingreplacing GARS but will still need a reporting tool to summarize general ledger information for reporting purposes.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.usFinding Control Number: FA-427-12-02MATCHING, LEVEL OF EFFORT, EARMARKINGREPORTINGFinancial Reporting Internal Control DeficienciesDHS concurs with the finding. Procedures to ensure consistent basis of accounting for federal reporting were implementedalong with revised procedures for reconciling financial status report to PeopleSoft.The department continues to improve the reconciliation process to address the audit findings. The reconciliation process thatwas implemented for the December 2011 reports has been refined based on the audit findings.The reconciliation process, procedures and forms have been further revised and are effective for the 12/31/2012 reportingcycle. The revision includes the following:1. Improved documentation of variances between the Grants Accounting and Reporting System (GARS) and thegeneral ledger.306