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, 2012Finding Control Number: FS-427-12-02ACCOUNTING CONTROLS (OVERALL)GENERAL LEDGEREQUITY AND FINANCIAL STATEMENT RECONCILIATIONSUnsubstantiated Other Reserves BalanceDHS concurs with the finding. DHS was able to provide documentation identifying the basis for reserving several of theOther Fund Sources but acknowledges the need to research the other outstanding items.On October 2, 2012, DHS sent a letter to DOAA acknowledging there were historical Other Fund Source balances to beresearched, reconciled, and corrected. As a consequence, it was recommended these balances be reserved in FY2012.The balance included in this letter for which there was no support provided to the Audit Department was $3,259,394.52.DHS is currently researching these historical balances. The goal is to clear them by year-end FY2013.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.usFinding Control Number: FS-427-12-03ACCOUNTING CONTROLS (OVERALL)EXPENSES/EXPENDITURES AND LIABILITIESFINANCIAL REPORTING AND DISCLOSUREFailure to Accurately Report Pass-Through Amounts on the Schedule of Expenditures of Federal AssistanceDHS partially concurs with the finding. The majority of the amounts were reported correctly but an error was made on theChild Support Enforcement Program. The error was corrected before the Schedule of Expenditures of Federal Awards waspublished.DHS has revised procedures to include an addition level of review for the SEFA reporting. The checklist for sub-recipientsreceiving pass-through amounts will also compared to the federal website for Federal Funding Accountability andTransparency Act (FFATA) reporting. Also, expenditures detail will now include vendor # as an identifier in the queries.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.usAUDITOR CONCLUDING REMARKS:The agency only became aware of this error after it was identified by the auditors during Fiscal Year 2012 testing.Finding Control Number: FS-427-12-05GENERAL LEDGERREVENUES AND RECEIVABLESFailure to Record Federal Grant Awards in a Timely MannerDHS concurs with the finding. DHS has implemented procedures for timely recording of Grant Awards, within 5 businessdays once they are received by the Office of Financial Services. Also, Federal Grant Awarding Agencies have been notifiedto forward Grant Award Notifications to a central address for the OFS Director. All divisions in DHS have been instructed tosubmit any awards received by them to OFS as soon as they receive then. This continues to be a work-in-process with theFed's since they automatically forward many Grant award notices to various different locations and contacts, resulting indelays in recording the awards. Additionally, the Grants Management Section established a Federal Award Notice logtracking sheet to include a calculation indicator to update me when award post after 30-days. This log will also be used tohelp identify if anticipated awards have not been received.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.us312
State of GeorgiaAuditee’s Corrective Action PlansFor the Fiscal Year Ended June 30, 2012Finding Control Number: FS-427-12-06GENERAL LEDGERREVENUES AND RECEIVABLESFailure to Reconcile Accounts Receivable to the General LedgerDHS concurs with the finding. The difference was created by the use of Post-Closing Adjustments (PCA's) and JournalVouchers to record Deferred Revenue and Other Accounts Receivable items which were the result of a change in revenuemethodology in 2011 and 2012. PCA's for 2012 were submitted to reverse these entries to accurately reflect the receivablesand eliminate the deferred revenue recorded. In addition, efforts are underway to record ALL accounts receivable in the subledger rather than through Journal Vouchers. We anticipate having a substantial portion of this process completed byFebruary 28, 2013 and will continue to monitor and reconcile the accounts receivable accounts on a monthly basis withappropriate corrections made the subsequent month. The process will also focus on improved documentation when recordingthese receivables.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.usFinding Control Number: FS-427-12-07GENERAL LEDGEREXPENSES/EXPENDITURES AND LIABILITIESAccount Payable Reconciliation DeficienciesDHS concurs with the finding. Going forward, all AP reconciliations will include a field to explain debit balances. This fieldwill be completed whenever there is a debit balance in the account. In addition, all AP accounts (including Payroll liabilities)will be reconciled a minimum of once per quarter. This will include separate quarterly reconciliations being completed by theAP and/or Payroll Managers for any accounts that have variances and/or debit balances. These additional quarterlyreconciliations will detail the balances and the actions to correct the variances or debit balances.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.usFinding Control Number: FS-427-12-08CASHINVESTMENTS AND INVESTMENT RELATED ACTIVITYInadequate Bank Reconciliation ProceduresDHS concurs with the finding. Due to untimely staff turnover, the DHS bank reconciliations fell behind schedule. There isalso a significant historical back log of outstanding reconciling items. DHS has instituted new procedures for recording bankdeposits and applying cash which should minimize book errors and unidentified cash receipts moving forward. The processincludes:1. Timely recording of deposits.2. Researching unidentified items when received and tie to book entries within 15 days.3. Improved processes and information on DFCS regional deposits to improve identification and timeliness for postingentries.New personnel have been trained and performance is being monitored to improve the timeliness of completing bankreconciliations. The department is also, reviewing the reconciliation process looking for ways improve and streamlinereconciliations.DHS is working through its backlog of reconciling items. Significant progress has been made in cleaning up outstandingchecks.313
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Report on Internal Control Over Fin
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Firefighters’ Pension Fund, Georg
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