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

More documents

Recommendations

Info

State of GeorgiaFinancial Statement Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012AGRICULTURE, DEPARTMENT OFFinding Control Number: FS-402-12-01ACCOUNTING CONTROLS (OVERALL)Failure to Obtain Verification Documentation for New Employees in a Timely MannerCondition:Criteria:The Department of Agriculture (Department) did not verify, in a timely manner, the employmenteligibility through the federal work authorization program, known as E-Verify, for four (4) newly hiredemployees. The Department verified the employment eligibility of the newly hired employeesbetween two (2) to twelve (12) months after the hire date. E-Verify is an electronic program,maintained by the U.S. Department of Homeland Security, through which employers verify theemployment eligibility of their employees after hire.An adequate system of internal controls dictates that the employment eligibility of each newly hiredemployee is verified in a timely manner.As prescribed by O.C.G.A. 13-10-91, "(a) Every public employer, including, but not limited to, everymunicipality and county, shall register and participate in the federal work authorization program toverify employment eligibility of all newly hired employees."Cause:Effect:Recommendation:The deficiency noted above was a result of the Department's failure to have proper controls in place toensure employment verifications were performed on all newly hired employees in a timely manner.Failure to verify employment eligibility for all newly hired employees in a timely manner is indicativeof a lack of adequate controls relating to the hiring process and noncompliance with O.C.G.A. 13-10-91 until the employment verifications were performed.The Department of Agriculture should enhance their policies and procedures related to their hiringprocess to ensure that employment eligibility is verified in a timely manner for all newly hiredemployees in accordance with O.C.G.A. 13-10-91.Finding Control Number: FS-402-12-06GENERAL LEDGEREXPENSES/EXPENDITURES AND LIABILITIESInternal Control Deficiencies Over Contractual ObligationsCondition:Our examination of the Department of Agriculture (Department) included a review of sourcedocumentation maintained in purchase order files for contractual obligations. Our review disclosed thefollowing deficiencies:(1) The Department did not record contracts payable in the amount of $50,472.86 on the generalledger at June 30, 2012.(2) The Department charged $32,745.00 of non-contract expenditures to contract expenditureaccounts.Criteria:Cause:The Accounting Procedures Manual for the State of Georgia, Section Three, states, in part: "Statebudgetary accounting practices require liabilities and expenditures to be recorded when a vendor hasbeen selected and a purchase order approved or a contract executed. In general, budgetary basisexpenditures are recorded based on encumbrances. This differs from GAAP in that goods and servicesneed not have been received for liabilities and expenditures to be recorded."The deficiencies noted above were a result of the Department's failure to implement adequate internalcontrol policies and procedures to ensure that contractual obligations are recorded on the generalledger in a timely manner and that expenditures are recorded correctly.26
State of GeorgiaFinancial Statement Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Effect:Recommendation:Failure to appropriately record contractual obligations and expenditures increases the risk of materialmisstatement in the financial statements including misstatements due to error or fraud.The Department of Agriculture should implement policies and procedures to ensure that contractpayables/expenditures are recorded on the general ledger when a contract has been executed. Inaddition, the Department should use the correct account for the recording of expenditures.Finding Control Number: FS-402-12-07REVENUES AND RECEIVABLESImproper Retention of FeesCondition:Pursuant to Act No. 360 of the 2009-2010 General Assembly, additional fees were collected by theDepartment of Agriculture (Department). The Department collected and retained a portion of thefollowing fees rather than remitting the fees to the State Treasury:1. Food Sale License Fees (O.C.G.A. 26-2-25) - Amount Retained $2,443,611.012. Gas Quality/Pump Inspection Fees (O.C.G.A. 10-1-159) - Amount Retained $2,574,690.00Based on our review of the constitutional provisions and the statutory authority to impose fees relatedto Food Sale Licenses and Gas Quality/Pump Inspections described below, there does not appear to bea legal basis by which the Department may retain and expend these funds.Criteria:Article VII, Section III, Paragraph II (a) of the Georgia Constitution provides as follows: “Except asotherwise provided in this Constitution, all revenue collected from taxes, fees, and assessments forstate purposes, as authorized by revenue measures enacted by the General Assembly, shall be paid intothe general fund of the state treasury.”Statutory authority to impose fees related to Food Sale Licenses is set forth in Chapter 2 of Title 26 ofthe Official Code of Georgia Annotated. However, no authority to retain such fees was identifiedwithin this code section.Statutory authority to impose fees related to Gas Quality/Pump Inspections is set forth in Chapter 1 ofTitle 10 of the Official Code of Georgia Annotated. However, no authority to retain such fees wasidentified within this code section.Information:Cause:Effect:Recommendation:The Appropriations Act for fiscal year 2013 provides the Department with State funds in the amount of$10,007,050.00 to replace fees required to be remitted to the Office of the State Treasurer, pursuant tothe State of Georgia 2011 Budgetary Compliance Report.Fees for Food Sale Licenses and Gas Quality/Pump Inspections was retained by the Department,however, we are unaware of either a constitutional provision or a statutory authority allowing theDepartment to retain such fees.Retention and use of the aforementioned fees by the Department results in noncompliance with theGeorgia Constitution.As noted in the Information paragraph above, State funds to replace the retention of fees required to beremitted to the Office of the State Treasurer have been added to the Department of Agriculture's budgetby the Appropriations Act for fiscal year 2013. The Department of Agriculture should consult with theAttorney General regarding any questions they may have involving the constitutionality of or statutoryauthority for the retention of fees they collect.27
Page 1: Single Audit ReportFiscal Year Ende
Page 11: Report on Internal Control Over Fin
Page 14 and 15: Foundation, Incorporated, Georgia T
Page 16 and 17: Firefighters’ Pension Fund, Georg
Page 19 and 20: Greg S. GriffinSTATE AUDITOR(404) 6
Page 21 and 22: In our opinion, based on our audit
Page 23 and 24: Activities Allowed or UnallowedFA-4
Page 25: Findings and Questioned Costs
Page 29 and 30: State of GeorgiaSummary of Auditor
Page 31: Financial Statement Findings
Page 36 and 37: State of GeorgiaFinancial Statement
Page 85 and 86:
State of GeorgiaFinancial Statement
Page 87:
State of GeorgiaFinancial Statement
Page 91 and 92:
State of GeorgiaFederal Awards Find
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 137:
Expenditures of Federal Awards
Page 141 and 142:
State of GeorgiaSchedule of Expendi
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249:
Page 253 and 254:
State of GeorgiaNotes to the Schedu
Page 255 and 256:
Page 257:
Page 261 and 262:
State of GeorgiaSchedule of Cluster
Page 263 and 264:
Page 265 and 266:
Page 267 and 268:
Page 269 and 270:
Page 271 and 272:
Page 273:
Page 277:
Summary Schedule of Prior YearFindi
Page 280 and 281:
State of GeorgiaSummary Schedule of
Page 282 and 283:
Page 284 and 285:
Page 287 and 288:
State of GeorgiaSchedule of Prior Y
Page 289 and 290:
Page 291 and 292:
Page 293 and 294:
Page 295 and 296:
Page 297 and 298:
Page 299 and 300:
Page 301:
Corrective Action Responses toCurre
Page 305 and 306:
State of GeorgiaAuditee’s Correct
Page 307 and 308:
Page 309 and 310:
Page 311 and 312:
Page 313 and 314:
Page 315 and 316:
Page 317 and 318:
Page 319 and 320:
Page 321 and 322:
Page 323 and 324:
Page 325 and 326:
Page 327 and 328:
Page 329 and 330:
Page 331 and 332:
Page 333 and 334:
Page 335 and 336:
Page 337 and 338:
Page 339 and 340:
Page 341 and 342:
Page 343 and 344:
Page 345 and 346:
Page 347 and 348:
Page 349 and 350:
Page 351 and 352:
Page 353:
Page 357 and 358:
State of GeorgiaListing of Organiza
Page 359 and 360:
Page 361:
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?