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

State of GeorgiaAuditee’s Corrective Action PlansFor the Fiscal Year Ended June 30, 2012Finding Control Number: FA-427-12-11SUBRECIPIENT MONITORINGFailure to Monitor SubrecipientDHS partially concurs with the finding. The subrecipient was a separate state agency, the Department of Early Care andLearning (DECAL) with statutory direction and authority to provide the services funded from CCDF grants. The CCDFgrants were transferred to the Department of Early Care and Learning as the lead agency effective July 1, 2012. This willeliminate the question of subrecipient monitoring for future years.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.usAUDITOR CONCLUDING REMARKS:Per inquiry of federal personnel responsible for this program, the Department of Early Care and Learning (DECAL) shouldbe considered a subrecipient, regardless of the fact that they are a separate state agency.Finding Control Number: FA-427-12-12SPECIAL TEST AND PROVISIONSFailure to Monitor Health and Safety Requirements for Exempt ProvidersDHS partially concurs with the finding. DHS followed the program policies that exempt providers must meet the DECALexemptions requirements. The lead agency responsibility for CCDF was transferred to DECAL effective July 1, 2012 soDHS will no longer have responsibility for monitoring health and safety requirements for exempt providers.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.usAUDITOR CONCLUDING REMARKS:Per inquiries of the CCDF Program Manager, DHS was only reviewing exemption status and was not performing anymonitoring of the required Health and Safety requirements.Finding Control Number: FS-427-12-01ACCOUNTING CONTROLS (OVERALL)GENERAL LEDGERREVENUES AND RECEIVABLESEXPENSES/EXPENDITURES AND LIABILITIESInadequate Journal Entry DocumentationDHS concurs with the finding. Many of these entries were the result of turnover and changes by new staff in revenueaccounting. The majority of the entries identified in the audit finding were to allocate revenues to state programs by fundingsource. In December 2011 we made staffing changes and started to correct the revenue management process. Managers inthe various areas of the Office of Financial Services (OFS) are training and coaching staff on improving journal entrypreparation and documentation. Our journal entry processing has also been improved and the following processes have beenput in place to improve journal entry processes and documentation.DHS journal entry preparation processes were standardized across the division. This standardization ensured that all manualJE's were reviewed and approved at the division level with the OFS review and approval at the final stage prior to posting tothe general ledger. The review process will check for adequate documentation. This process also required journals besubmitted via the JE email box, a mechanism established to track JE request, approval and timely posting to the generalledger. This process continues to be improved upon to address and mitigate audit findings.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.us311