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, 2012Finding Control Number: FS-427-12-07GENERAL LEDGEREXPENSES/EXPENDITURES AND LIABILITIESAccount Payable Reconciliation DeficienciesCondition:The Department of Human Services’ (Department) reconciliation of the accounts payable module(subsidiary ledger) to the general ledger for June 30, 2012 was not accurately completed. On the Junereconciliation, there were five (5) accounts payable accounts, totaling $37,713.77, that had debitbalances.In addition, 17 accounts were not fully reconciled as of June 30, 2012. The variance in these accountstotaled $28,001,543.35.A review of accounts payable balances over one year old revealed that the Department failed to applyrepayment of funds for debit balances in the accounts payable module for four (4) out of seven (7)outstanding balances. In addition, one (1) accounts payable balance over a year old in the amount of$33,617.61, and one (1) other accounts payable debit balance in the amount of $856.68 had been paidin full; however, the amounts still remain in the accounts payable module.Criteria:Cause:Effect:Recommendation:The Department should improve their policies and procedures to ensure that monthly and year-endreconciliations of the accounts payable module to the general ledger for all accounts payable accountsand outstanding balances are completed accurately and in a timely manner.The deficiencies noted above were caused by the Department’s failure to adequately apply theirexisting internal control of completing an accounts payable reconciliation, and the failure to verify theaccuracy of outstanding accounts payable balances.Failure to perform accurate reconciliations could result in the accounts payable module containinginvalid information that is not detected in a timely manner. This could result in errors in financialreporting and increase the risk of material misstatement in the financial statements includingmisstatements due to fraud.The Department of Human Services should improve their existing policies and procedures to ensuremonthly and year-end reconciliations of the accounts payable module to the general ledger areaccurately completed and verify the validity of the outstanding accounts payable balances on a regularbasis.Finding Control Number: FS-427-12-08CASH, INVESTMENTS AND INVESTMENT RELATED ACTIVITYInadequate Bank Reconciliation ProceduresCondition:Our examination included a review of the Department of Human Services’ (Department) bankreconciliation procedures performed on the Operating, Payroll, Child Support, Public Assistance,Revenue Collections, Vital Records Refund, DHS WIC Program, and the Decentralized Trust Fundsaccounts. The following deficiencies were noted:1. For the Operating account (101102), the Department had not posted a significant number of bookadjustments in the amount of $30,928,536.79, dating back to September 2009. The outstandingchecklist has 4,098 checks totaling $2,233,840.15 that date back to January 2008, which have yetto be canceled or corrected.2. For the new Child Support Recovery account (101154), the Department had not posted asignificant number of book adjustments in the amount of $82,262,364.45. The following months'reconciliations were not performed in a timely manner, ranging from one (1) to three (3) monthslate: January, February, March, April, and June. In addition, the reconciliations performed for themonths of September 2011 through January 2012 indicate that the bank account is being used but42
State of GeorgiaFinancial Statement Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012the deposits and disbursements were not being recorded on the general ledger. Finally, the Mayreconciliation did not show evidence of proper review and approval.3. For the Payroll account (101415), the Department had not posted a significant number of bookadjustments in the amount of $1,631,968.76, dating back to November 2009. The outstandingchecklist has 763 checks totaling $257,879.26 that date back to July 2005, which have yet to becanceled or corrected. In addition, the per book amount on the June 2012 reconciliation did notagree with the amount shown on the general ledger in the amount of $590.37. Finally, the Junereconciliation was performed three (3) months late.4. For the Public Assistance (101761) account, the Department had not posted a significant numberof book adjustments in the amount of $87,233,378.76, dating back to April 2011. In addition, theJune reconciliation was performed three (3) months late.5. For the old Child Support Recovery account (101762), the Department had not posted a significantnumber of book adjustments in the amount of $100,896,311.23, dating back to July 2009. Thereare book reconciling items in the amount of $505,142.37 dating back to November 2010. Inaddition, the outstanding checklist has 279 checks in the amount of $501,622.81 that date back toNovember 2007, which have yet to be canceled or corrected. Finally, the June reconciliation wasperformed three (3) months late.6. For the Vital Records Refund (101601) account, the Department had not performed anyreconciliations throughout the year. The account held a balance of $(1,576.92) on the generalledger at fiscal year end.7. For the WIC program (103582) account, the Department had not performed any reconciliationsthroughout the year. The account held a balance of $198,317.78 on the general ledger at fiscalyear end.8. For the Revenue Collections (102017) account, the June reconciliation was performed three (3)months late.9. For the Decentralized Trust Funds (103580) account, Debt Set Off sub-account (117.145), theDepartment had not posted several book adjustments in the amount of $689.56 dating back toFebruary 2011. The outstanding checklist has 505 checks totaling $235,319.77 that date back toJune 2006, which have yet to be canceled or corrected. In addition, the June reconciliation wasperformed three (3) months late.Criteria:Policy Number CM-100008 of the State Accounting Manual issued by the State Accounting Office(SAO) provides bank reconciliation guidelines for all organizations to follow. An adequate system ofinternal controls dictate that bank reconciliations be performed at a minimum on a monthly basis, andas appropriate, include the following: 1) adequate supporting documentation, 2) reconciling itemscorrectly identified by description and amount, 3) adjustments which are needed are identified andmade in a timely manner, 4) accurate general ledger balances, and 5) evidence of an effectivesupervisory review and approval function.In addition, the Disposition of Unclaimed Property Act as identified in OCGA 44-12-190 through 44-12-236, provides for procedures to be followed for those holding property for someone else andcontact has been lost with that person. This act applies to outstanding checks written to bothindividuals and vendors. Policy Number CM-100006 of the State Accounting Manual providesguidance on the proper accounting procedures regarding old outstanding checks.Cause:The Department's bank account reconciliation process failed to ensure that reconciling items wereproperly supported and that outstanding checks were canceled in a timely manner, and that bankactivity was recorded on the trial balance. In addition, high turnover in staff may also have been acontributing factor.43
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 34 and 35: State of GeorgiaFinancial Statement
Page 87: State of GeorgiaFinancial Statement
Page 91 and 92: State of GeorgiaFederal Awards Find
Page 101 and 102:
State of GeorgiaFederal Awards Find
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?