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

State of GeorgiaAuditee’s Corrective Action PlansFor the Fiscal Year Ended June 30, 2012data will be completed during the 2013 Fiscal Year, which will allow the Department to utilize TeamWorks to account for itsCapital Assets and resolve these reporting issues.Contact Person: Tobias SallachTelephone: 404-347-0327 Fax: 404-631-1944 E-mail: tsallach@dot.ga.govFinding Control Number: FS-484-12-100ACCOUNTING CONTROLS (OVERALL)GENERAL LEDGERFINANCIAL REPORTING AND DISCLOSUREBUDGETBudgetary Compliance DeficienciesThe GDOT concurs that the budget year 2012 revenue and expenditure transactions were recorded to the proper programsand funding sources and appreciates DOAA's recognition of the GDOT's efforts to comply with Program-Based Budgetingrequirements. The GDOT also concurs that the deficiencies identified during the examination primarily relate to prior yearreserve carry-over balances and adjustments for transactions with prior budget years. The GDOT proposed new legislativelanguage in the 2012 legislative session that would allow the GDOT to collapse all motor fuel and other fund balances into aspecial undesignated Program at each fiscal year-end close that could be redistributed to the proper program through anapproved process involving the Governor’s staff and the Office of Planning and Budget. However, the proposed legislationwas not passed in the 2012 legislative session. The GDOT will continue to work with the Governor's staff, the House BudgetOffice and the Senate Budget Office on the passage of the proposed legislation in the 2013 legislative session. The GDOTwill also continue to work with the SAO, the DOAA, the Office of Planning and Budget and the State Attorney General'sOffice on alternative solutions to address these issues should the proposed legislation not be passed during the 2013legislative session.The GDOT concurs that state motor fuel total funds available exceeded appropriated amounts as reported on the Statement ofFunds Available and Expenditures Compared to Budget by Program and Funding Source. The excess state motor fuel fundsresulted from several post-closing adjustments that were prepared after FY 2012 closed that moved fund balances on otherfund sources to state motor fuel funds per the direction of the (DOAA). Since the GDOT is required to record allexpenditures in the Project Costing Module of PeopleSoft, the GDOT is working to identify eligible expenses on specificprojects to be funded with the available other fund balances. The GDOT will apply the funds to the appropriate project(s)using the correct program(s), fund source(s) and budget date(s) using its standard business processes which are required toproperly update the project in the Project Costing Module. If eligible expenses are moved from state motor fuel fund sourcesto other fund sources during this process, the funds will also be amended into the proper program and fund source through theamended budget process appropriately.Contact Person: Connie SteeleTelephone: 404-347-0471 Fax: 404-347-0590 E-mail: csteele@dot.ga.govFinding Control Number: FS-484-12-101ACCOUNTING CONTROLS (OVERALL)GENERAL LEDGERFINANCIAL REPORTING AND DISCLOSUREBUDGETBudgetary Noncompliance on Statutory (Budgetary) Basis Financial StatementsThe GDOT concurs that instances of prior year ending fund balance deficits may occur since the GDOT implemented thePrior Year Carry-Over policy issued by the SAO. This situation may be attributable to error corrections to carry-overamounts from prior budget years as indicated in the cause. However, this situation may also be attributable to adjustments tofunding source types or programs on prior year revenue and expenses through GDOT's standard business practices to ensureall available funding source types are used in the most efficient manner and for the correct program. For example, the GDOTmay receive miscellaneous revenue in one year that is meant to fund expenses recorded in subsequent fiscal years. Thecorrect program may not be easily identified at the time the funds are received because future expenditures may crossmultiple programs; however, the SAO’s accounting system requires the GDOT to record the receipt of cash and revenue on aprogram at the time it is received. It may be necessary for the GDOT to record an entry to adjust the program and budget334