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, 2012Although deficiencies were identified during our examination, it was noted that the Department madesignificant efforts during the fiscal year to record budget year 2012 revenue and expendituretransactions to the proper programs and funding sources. The deficiencies identified during ourexamination primarily relate to prior year reserve carry-over balances and adjustments (i.e., manualjournal entries and post-closing adjusting entries) for transactions with prior budget years.Based on discussions with the Department, most of the aforementioned adjustments were made tocorrect prior year deficit fund balances and other apparent misstatements reported on the Statement ofFunds Available and Expenditures Compared to Budget by Program and Funding Source when theprior year balances were carried over and recognized as funds available in the current year. The deficitfund balances were the result of the Department’s inability in prior years to maintain their accountingrecords at the legal level of budgetary control, which is funding source within program.Criteria:Each appropriated budget unit of the State is subject to compliance requirements relating to PrioritizedProgram-Based Budgeting. These compliance requirements are identified in Article VII, Section IVParagraph VIII of the Constitution of the State of Georgia which states in part, “…the credit of theState shall not be pledged or loaned to any individual, company, corporation or association.” and in the2012 Appropriations Act, as amended which prohibits an appropriated budget unit from overspendingtheir authorized budgeted amounts at the legal level of budgetary control (funding source withinprogram).The Management Responsibilities section in the State Accounting Office’s (SAO) Accounting PolicyManual states, in part: “The management of each organization of state government is ultimatelyresponsible for the accuracy and completeness of its accounting and financial records and reports,including ensuring compliance with applicable laws and regulations.”Cause:The deficiencies noted were the result of the Department’s failure to properly record prior yeartransactions at the legal level of budgetary control and documentation was insufficient to supportamounts reported in the financial statements.Effect: We were unable to determine whether the Department complied with the requirements of the 2012Amended Appropriations Act and Article VII, Section IV Paragraph VIII of the Constitution of theState of Georgia with regard to the amounts for Other Funds and adjustments to State Motor FuelFunds that were reported under the column heading of Program Transfers or Adjustments on theStatement of Funds Available and Expenditures Compared to Budget by Program and Funding Source.Recommendation:The Department of Transportation should develop an overall action plan, including timeline, to correctall prior year fund balances by program and fund source. Unless new legislation is adopted to addressthe situation, the Department should continue to seek reallocation through the General Assembly forall prior year reserve carry-over balances for State Motor Fuel Funds that were not allocated to budgetprograms by the 2012 Amended Appropriations Act.Finding Control Number: FS-484-12-101ACCOUNTING CONTROLS (OVERALL)GENERAL LEDGERFINANCIAL REPORTING AND DISCLOSUREBUDGETBudgetary Noncompliance on Statutory (Budgetary) Basis Financial StatementsCondition:In conjunction with our review of the Budgetary Compliance Report (BCR) for the Department ofTransportation (Department), an analysis of fund balance between current year and prior years wasperformed. Based on this analysis, the following instances of prior year ending fund balance deficitswere identified:66
State of GeorgiaFinancial Statement Findings and Questioned CostsFor the Fiscal Year Ended June 30, 20121. Program: Departmental AdministrationFund Source: State Motor Fuel Funds - Prior YearDeficit Ending Fund Balance: $582.832. Program: TransitFund Source: Other FundsDeficit Ending Fund Balance: $93,835.683. Program: Program Not IdentifiedFund Source: State Motor Fuel FundsDeficit Ending Fund Balance: $57,166,365.31In addition, the Department was unable to provide adequate supporting documentation for the overallOther Funds reserve balance of $4,145,410.06 that was reported on the Statement of Changes to FundBalance by Program and Funding Source as presented in the State of Georgia Budgetary ComplianceReport.Criteria:Article VII, Section IV, Paragraph VIII of the Constitution of the State of Georgia provides, in part,"...the credit of the State shall not be pledged or loaned to any individual, company, corporation orassociation." As applied here, this means that Fund Balance by budget year, budget program, andfunding source (i.e., the legal level of budgetary control) should not be debit balances in the accountingrecords.The accounting records for each appropriated budget unit of the State should be maintained in such amanner to allow for budgetary reporting to be accurately prepared and supported.In addition, adequate documentation supporting reserves of Other Funds should include a detail of thetransactions that support the reserve amount, intended usage, and legal authorization.Cause:Effect:Recommendation:The deficiencies noted were due to the net effect of the Department’s adjustments, primarilyattributable to error corrections to carryover amounts from prior budget periods, and inability toprovide sufficient supporting documentation for Other Reserves reported on the Statement of Changesin Fund Balance by Program and Funding Source.Noncompliance with the Constitution of the State of Georgia and increased risk of materialmisstatement in the financial statements and budget comparison report. In addition, failure to properlyidentify and provide adequate supporting documentation for the overall Other Funds reserve balancedoes not allow for the proper classification of fund balance in accordance with GovernmentalAccounting Standards Board Statement No. 54 as reported in other statewide reports.The Department of Transportation should implement additional policies and procedures, as needed, toadequately monitor program fund balances between current year and prior years and to makeadjustments, as needed, to ensure compliance with Constitution of the State of Georgia. In addition, theDepartment should ensure that all Other Reserves reported on the Statement of Changes to FundBalance by Program and Funding Source are properly identified and supported by adequatedocumentation.FORT VALLEY STATE UNIVERSITYFinding Control Number: FS-533-12-01ACCOUNTING CONTROLS (OVERALL)Logical Access - Inadequate Separation of DutiesCondition:The University did not maintain adequate separation of duties involving key accounting functions.The University does not have a formal process to periodically review application access to financialsystems. This is a repeat finding (FS-533-11-01) from the year ended June 30, 2011.67
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 73: State of GeorgiaFinancial Statement
Page 87: State of GeorgiaFinancial Statement
Page 91 and 92: State of GeorgiaFederal Awards Find
Page 124 and 125:
State of GeorgiaFederal Awards Find
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?