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, 20123. Follow-up compliance monitoring is performed as needed by the PTC and Planners based on the initial riskassessment.Contact Person: Carol L. ComerTelephone: 404-347-0573 Fax: 404-631-1937 E-mail: ccomer@dot.ga.govFinding Control Number: FS-484-12-01EXPENSES/ EXPENDITURES AND LIABILITIESDeficiencies in Project Closeout ProceduresThe GDOT concurs that additional policies and procedures should be developed and implemented that require projectmanagers to monitor projects and initiate closeout procedures to ensure they are closed timely. The GDOT conductedvarious meetings with project management, procurement and finance staff to discuss this issue during FY 2012 and iscurrently reviewing a draft policy and procedure to provide direction to project managers on closeout responsibilities.The Division of Finance follows the policies and procedures listed below to assist with monitoring projects nearingcompletion and identify inactive purchase orders to be closed.1. The GDOT implemented the Closing State Projects procedure (10-7) in September 2010 which provides direction tothe Federal Integrity Review and Evaluation (FIRE) Unit on closing out all state projects.2. The GDOT implemented the Federal Project Close-Out Procedures (10-6) in October 2010 which provides directionto the FIRE Unit on closing out federal projects in accordance with the Federal Highway Administration guidelinesas final statements are received.3. The GDOT implemented the Monitoring Inactive Purchase Orders policy (7110-15) and procedure (1-36) in May2011 which provides direction to the Project Accounting Unit on generating queries from PeopleSoft to identifypotential obsolete purchase orders. Since the development of these queries, significant progress has been made inidentifying obsolete purchase orders. The GDOT paid out, cancelled or closed 1,782 purchase orders in FY 2012.In addition, the Project Accounting Unit initiated a new practice in October 2012 requiring the contract expiration date berecorded in the purchase order reference field when setting up new purchase orders. The field will be used to identify expiredcontracts so the purchase order can be closed timely. The GDOT’s Creating Contract Purchase Orders procedure (25-2) willbe revised to include this process.The Project Accounting Unit also researches open purchase orders to see if the purchase order file contains an invoicemarked “final” in accordance with contract requirements or a standard release letter. If the file contains a final paymentinvoice or a standard release letter, documentation is sent to the Contracts Payable Unit to close the purchase order. If nopayment has been made within the last year and the file does not contain a final payment invoice or a standard release letter,the Project Accounting Unit contacts the project manager to determine the status of the purchase order and if it can be closed.If the project manager indicates the purchase order may be closed, documentation is sent to the Contracts Payable Unit toclose the purchase order.Contact Person: Connie SteeleTelephone: 404-347-0471 Fax: 404-347-0590 E-mail: csteele@dot.ga.govFinding Control Number: FS-484-12-02EXPENSES/ EXPENDITURES AND LIABILITIESInternal Control Deficiencies Over Contractual ObligationsThe GDOT concurs that there may be instances where contracts are not recorded within 60 days or instances when a contractis inadvertently not recorded by year end due to the volume of purchase orders processed by the GDOT annually. TheGDOT recorded or modified over 8,000 purchase orders during FY 2012. The GDOT realizes the importance of recordingobligations on the general ledger in a timely manner to ensure that liabilities are recognized as soon as they are incurred andmakes every effort to do so. The GDOT implemented the following policies and procedures prior to FY 2012 year end closeand has continued these practices to ensure all obligations are recorded by the close of the fiscal year:332
State of GeorgiaAuditee’s Corrective Action PlansFor the Fiscal Year Ended June 30, 20121. The GDOT implemented a new routing procedure in FY 2010 requiring most contracts, supplemental agreementsand modifications be returned to the Office of Legal Affairs upon execution to be picked up by the ContractsPayable Unit daily.2. The GDOT implemented the Contract Execution policy (3A-18) in April 2011 which permits the temporarysuspension of the execution of all non-emergency contracts, supplemental agreements or modifications betweenJune 16 and June 30 to ensure all obligations are recorded prior to the close of period 12.3. The GDOTs Contracts Processing - General Policy (7110-9) was implemented in 2009 and was revised in April2011 to include the Contracts Payable Unit's process to review monthly letting sheets to ensure all awarded letconstruction contracts are received and recorded by the Office of General Accounting. It was again revised in June2012 requiring the Contracts Payable Unit to record the purchase order number on the letting sheets once thepurchase order has been encumbered.The GDOT also implemented the following procedures after FY 2012 year end close:1. The GDOT implemented a new monitoring procedure in July 2012 requiring the Construction Office to submit a listof all executed supplemental agreements to the Contracts Payable Unit weekly to ensure all awarded supplementalagreements are received and recorded by the Office of General Accounting. The Contracts Payable Unit records thedate the supplemental agreement is encumbered in PeopleSoft on the weekly report. The Contracts Processing -General Policy (7110-9) will be revised to include this process.2. Based on discussions with the Georgia Department of Audits and Accounts (DOAA) pertaining to their fieldwork,the GDOT also implemented a new monitoring procedure in November 2012 which requires the TransportationServices Procurement Office (TSP) to submit monthly reports to the Contracts Payable Unit listing all contracts andtask orders executed by TSP. Once the contracts have been encumbered, the Contracts Payable Unit will add thepurchase order number to TSP’s reports to ensure all contracts executed by TSP are recorded by the Office ofGeneral Accounting. The Contracts Payable Unit is also retroactively applying this procedure to all contractsexecuted by TSP from July 1, 2012 through October 2012 to ensure all contracts executed in FY 2013 are recordedby fiscal year end close. The GDOT's Contracts Processing General Policy (7110-9) will be revised to include thisprocess.3. The GDOT's Creating Contract Purchase Orders procedure (25-2) is being revised to provide directions onencumbering purchase orders at year end using the correct budget and accounting date.Contact Person: Chris PittmanTelephone: 404-347-0473 Fax: 404-347-0590 E-mail: cpittman@dot.ga.govFinding Control Number: FS-484-12-03CAPITAL ASSETSInadequate Capital Asset Records – LandWe concur with the finding. GDOT currently maintains detailed actual cost for land, in an Access database. The source ofthis cost data is the accounts payable lines recorded in TeamWorks, the state's financial accounting system. At the time thisfinding was issued, TeamWorks did not provide the fields necessary to capture and record the description, location, parceland acreage, for the purchase of land at the time of payment. This information is available in paper form and is tracked inseparate databases.The Department is actively engaged in resolving this finding. The State Accounting Office adapted the TeamWorks fixedasset module, to allow GDOT to utilize the statewide system for its capital asset inventory records. In order to utilize thisfunctionality, it was necessary for the State Accounting Office to make significant programming changes to TeamWorks andprovide a data field to record the parcel number. This field was necessary to link the Department's systems with TeamWorksfinancial data; our IT staff worked closely with the State Accounting Office to make this and other necessary changes. Inaddition, interfaces to data maintained in the Department's systems, will need to be designed and implemented to migrate thedata from the Department's existing capital asset system to TeamWorks. We anticipate that the migration of the capital asset333
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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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In our opinion, based on our audit
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Activities Allowed or UnallowedFA-4
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Findings and Questioned Costs
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State of GeorgiaSummary of Auditor
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Financial Statement Findings
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State of GeorgiaFinancial Statement
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State of GeorgiaSchedule of Expendi
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State of GeorgiaNotes to the Schedu
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State of GeorgiaSchedule of Cluster
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Summary Schedule of Prior YearFindi
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State of GeorgiaSchedule of Prior Y
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Single Audit Report Fiscal Year Ended June 30, 2012 - State ...

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