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: 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