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, 2012The Vital Records and WIC accounts were closed and the balances transferred to the new departments. The entries to closethe accounts on the books have been completed as of January 2013.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.usFinding Control Number: FS-427-12-09REVENUES AND RECEIVABLESInadequate Procedures Over Cash Draws of Federal GrantsDHS partially concurs with the finding. DHS acknowledges transactions need to be posted to the general ledger in a timelybasis. DHS also concurs with the need to review its cash management process to identify improvements.However, we do not concur with the methodology used in the audit to draw the conclusions presented in this finding. Theauditors used the balance sheet to determine cash balances and over and under draws of federal funds. Due to timingdifference in postings to the general ledger, balances reported in this finding are likely to be inflated for over and underdraws. This would have been more exaggerated in fiscal year 2011 and fiscal year 2012 when due to turnover of staff,significant delays occurred in posting federal draws to the general ledger.DHS uses an analysis of actual payments processed, required check clearing patterns, allocation of expenditures to qualifiedfederal participation and restrictions due to availability of federal funds to manage federal draws. Draws of federal funds arebased on the analysis of daily disbursement transactions. Expenditures versus draws are reviewed for variances after costallocation processes are completed on a quarterly basis and any journal vouchers that are processed to correct posting errors.Federal fund draws are trued up based on this analysis.Due to the difference in the method used to by the auditors to analyze over or under draws and the method used by DHS toactually draw cash for federal funding it may cause the amounts presented as over or under drawn to be overstated and arenot an actual reflection of the status of the grants cash draws.We have taken steps to replace staff, to improve the process and are making progress in improving our cash managementprocedures and analysis to ensure draws are done accurately, are supported by disbursements and recorded timely.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.usAUDITOR CONCLUDING REMARKS:The auditors believe that it is appropriate to use the agency’s accounting records for testing federal cash draws.Finding Control Number: FS-427-12-10CAPITAL ASSETSFailure to Accurately Report Capital AssetsDHS concurs with the finding. The errors were identified and subsequently corrected in adjusting entries prior to issuance ofreports by SAO.The process has been modified to avoid these errors in the future. Upon completion of the Capital Asset Form, DHS willcompare it to the GFAAG trial balance and ensure that the balances are equal before submission. DHS will also run theAUDS_AM_LKNOWLES_ASSET_END_BAL query to test the reported amounts.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.us314
State of GeorgiaAuditee’s Corrective Action PlansFor the Fiscal Year Ended June 30, 2012Finding Control Number: FS-427-12-100ACCOUNTING CONTROLS (OVERALL)FINANCIAL REPORTING AND DISCLOSUREBUDGETFailure to Certify the Accuracy of the Budgetary Compliance ReportDHS concurs with the finding. As explained in our management representation we believe that for the FY2012 Budget Year,DHS managed to Budgetary Compliance. The Letter of Representation was not signed due to the inclusion of historicalbalances which required additional research and corrective actions. DHS is currently addressing the historical balances andclearing inappropriate balances.The amounts presented as noncompliant in this finding are the results of carryover balance from FY 2011. Due to the processused to present carryover balances in the Budgetary Compliance Report these balance remained outstanding when reported inthe current year. The balances presented as noncompliant, related to prior year activity, were eliminated on the secondschedule of the Budgetary Compliance Report.Finally, in FY2011 reserves were established for historical balances. These positive and negative carryover balances wereresearched and cleared in FY2012.We will continue to research and correct prior year balance in FY 2013 to reduce or eliminate the impact to budgetarycompliance.Contact Person: Lynn VellingaTelephone: 404-463-4304 Fax: 770-342-7504 E-mail: lhvellinga@dhr.state.ga.usCOMMUNITY AFFAIRS, DEPARTMENT OFFinding Control Number: FS-428-12-03ACCOUNTING CONTROLS (OVERALL)GENERAL LEDGERCASH, INVESTMENTS AND INVESTMENT RELATED ACTIVITYFailure to Maintain an Effective Bank Reconciliation ProcessThe Department acknowledges that it did not consistently perform bank reconciliations in a timely manner. The Departmenthas updated its policies and procedures to require that:1. Bank reconciliations be completed within 20 days of month end.2. The preparer of the reconciliation sign and note the date of completion.3. Completed reconciliations will be reviewed and approved within 10 days of completion.4. Reconciling items will be cleared within 15 days of the reconciliation approval date.5. Any items that cannot be reconciled within the timelines prescribed above will be reported to a manager so they maybe quickly resolved.Contact Person: Stephanie GreenTelephone: 404-679-0645 Fax: 404-679-3143 E-mail: stephanie.green@dca.ga.gov315
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Single Audit ReportFiscal Year Ende
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Report on Internal Control Over Fin
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Foundation, Incorporated, Georgia T
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Firefighters’ Pension Fund, Georg
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Greg S. GriffinSTATE AUDITOR(404) 6
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State of GeorgiaSummary of Auditor
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