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, 2012Effect:Recommendation:Failure to maintain an effective bank account reconciliation process increases the risk of misstatementdue to fraud and the possible misappropriation of the Department's assets.The Department of Human Services should review their current internal control procedures in relationto bank reconciliations and implement additional policies and procedures to ensure an effective bankreconciliation process is in place to manage and monitor their bank accounts.Finding Control Number: FS-427-12-09REVENUES AND RECEIVABLESInadequate Procedures Over Cash Draws of Federal GrantsCondition:The following deficiencies were noted based on our combined examination of the cash managementprocess over the seven (7) major Federal Financial Assistance Programs selected for the year underreview at the Department of Human Services' (Department):1. For all programs combined, a total of 31 months were identified where the requests forreimbursements were not sufficient to cover the respective Federal program expenditures. Theaverage monthly insufficient balances ranged from a low of $9.6 million to a high of $109 million.2. For all programs combined, a total of 52 months were identified where the requests forreimbursements were in excess of the respective Federal program expenditures. The averagemonthly excess balances ranged from a low of $15.8 million to a high of $59.9 million.3. Timing variances were identified between the reimbursement amounts recorded in the generalledger and amounts reported in the Department's Cash Management Database reports. A generalexplanation was provided for the variances, however, those explanations were not sufficient toaddress the reasons for each variance individually.Criteria:The Cash Management and Letter of Credit Procedures of the Department of Human Services statethat the objective of the Department’s cash management plan is to draw appropriate amounts of eachtype of fund available on an as-needed basis to assure that the Department does not have in excess ofthree days of Federal funds on hand, does not use state funds to subsidize Federal funds, and hassufficient funds to cover checks when they are presented.Code of Federal Regulations Title 31, Chapter II, Part 205.33 indicates that “a State must minimize thetime between the drawdown of Federal funds from the Federal government and their disbursement forFederal program purposes. A Federal Program Agency must limit a funds transfer to a State to theminimum amounts needed by the State and must time the disbursement to be in accord with the actual,immediate cash requirements of the State in carrying out a Federal assistance program or project.”Cause:Effect:The Department's policies and procedures for requesting, recording, and distributing Federal funds toreimburse program costs were inadequate.Failure to request, record, and distribute Federal funds in an accurate and timely manner could result inthe use of other sources of funds to subsidize Federal program expenditures.In addition, the drawdown of excess Federal funds over what is needed to cover Federal expenditurescould result in penalties and interest to the Department.Recommendation:The Department of Human Services should review their policies and procedures for requesting,recording, and distributing Federal funds to ensure that they are adequate to meet cash managementobjectives.44
State of GeorgiaFinancial Statement Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Finding Control Number: FS-427-12-10CAPITAL ASSETSFailure to Accurately Report Capital AssetsCondition:Five (5) amounts reported by the Department of Human Services (Department) to the State AccountingOffice on the Capital Assets form for the fiscal year under review were found to be misstated. Thefollowing exceptions were noted:1. Capital Assets tab - The Department overstated Intangibles - Software by $2,351,425.25.2. Capital Assets tab - The Department understated Construction-in-progress by $2,364,716.70.3. Capital Assets tab - The Department understated Personal Property - machinery & equipment by$168,211.06.4. Depreciation tab - The Department overstated accumulated depreciation on Personal Property -machinery, equipment and furniture by $612,872.32.5. Depreciation tab - The Department overstated accumulated depreciation on Intangibles - Softwareby $744,617.99.Criteria:Cause:Effect:Recommendation:As prescribed by O.C.G.A. 50-5B-4, "All organizations of state government... shall conform to andcomply with the rules, regulations, policies, procedures, and forms devised, promulgated, and installedby the state accounting officer. All organizations of state government shall submit statements, reports,information, and data necessary to enable the state accounting officer to complete the reports requiredunder this Code section... All organizations of state government shall provide information to the stateaccounting officer necessary to properly account for and report real property and personal property."The deficiencies noted above are the result of management's failure to implement adequate internalcontrols to ensure that all capital assets are properly reported to the State Accounting Office.The failure to report accurate capital asset information can result in misstatements in the financialstatements and notes to the financial statements as reported in the State's Comprehensive AnnualFinancial Report. The misstatements noted above were corrected by an audit adjustment.The Department of Human Services should implement adequate internal controls to ensure that thecapital asset information reported to the State Accounting Office is accurate.Finding Control Number: FS-427-12-100ACCOUNTING CONTROLS (OVERALL)FINANCIAL REPORTING AND DISCLOSUREBUDGETFailure to Certify the Accuracy of the Budgetary Compliance ReportCondition:The Statement of Funds Available and Expenditures Compared to Budget by Program and FundingSource Budget Fund in the Budgetary Compliance Report (BCR) as presented for review by theDepartment of Human Services (Department) reported the following instances of noncompliance:1) Adolescent and Adult Health Promotion/Federal Funds/Medical Assistance ProgramExpenditures exceeded Funds Available by $0.012) Adult Addictive Disease Service/Federal Funds/Prevention & Treatment of Substance AbuseBlock GrantExpenditures exceeded Funds Available by $3.013) Adult Essential Health Treatment/Federal Funds/Medical Assistance ProgramExpenditures exceeded Funds Available by $0.0145
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 103 and 104:
State of GeorgiaFederal Awards Find
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 ...

Create successful ePaper yourself

Delete template?

Save as template?