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

State of GeorgiaAuditee’s Corrective Action PlansFor the Fiscal Year Ended June 30, 20122. 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 protected 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-427-12-03MATCHING, LEVEL OF EFFORT, EARMARKINGREPORTINGFinancial Reporting Internal Control DeficienciesDHS concurs with the finding. See response to FA-427-12-1.The Department continues to improve the reconciliation process to address the audit findings. The reconciliation processimplemented for the December 2011 reports has been refined based on the audit findings. The unidentified reconciliationitem of $2,408,029.04 reported in the finding was the result of using the process to review and revise the 9/30/2011reconciliation. The item was identified prior to completing the revise reconciliation and had no impact to the federal reportfor 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 accounting.5. The form has added protected 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.307