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

State of GeorgiaAuditee’s Corrective Action PlansFor the Fiscal Year Ended June 30, 2012Procedures to ensure consistent basis of accounting for federal reporting have been implemented along with revisedprocedures for reconciling financial status report to PeopleSoft.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.usFinding Control Number: FA-427-12-04MATCHING, LEVEL OF EFFORT, EARMARKINGREPORTINGFinancial Reporting Internal Control DeficienciesDHS concurs with the finding. One of the contributing factors to this finding was turnover in our staffing. The new staff isnow trained and is using the new procedures as defined in our corrective action plans.Procedures to ensure consistent basis of accounting for federal reporting have been implemented along with revisedprocedures for reconciling financial status report to PeopleSoft.The standard procedure for posting correcting entries has been established at 30 days. Posting correcting entries is beingmonitored as part of the performance of each individual and the team in the grants accounting section.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.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 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-427-12-05PROGRAM INCOMEInternal Control Deficiencies Over Program IncomeDHS partially concurs with the finding. We agree that during the first part of FY 2012 the revenue was not recorded in atimely basis. During FY 2011 and in the first half of 2012 we had complete turnover of our revenue staff which was a308