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

State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Finding Control Number: FA-405-12-02MATCHING, LEVEL OF EFFORT, EARMARKINGLack of Internal Controls over Matching, Level of Effort, EarmarkingHIV Care Formula Grants (CFDA 93.917)U.S. Department of Health and Human ServicesGrant Awards: Year 2012 - 2X07HA22709-02-00; Year 2011 - 6X07HA22709-01-02Condition:Criteria:Information:Cause:Effect:Recommendation:The Department of Public Health (Department) did not have policies and procedures in place forverifying and monitoring compliance with the Matching, Level of Effort, Earmarking requirements forthe HIV Care Formula Grant program (CFDA No. 93.917).OMB Circular A-133 Compliance Supplement, Part 1, Page 1-6, states, in part: “As a condition ofreceiving Federal awards, non-Federal entities agree to comply with applicable laws, regulations, andthe provisions of contract and grant agreements, and to maintain internal control to provide reasonableassurance of compliance with these requirements.”Our review included inquiries of the Department's program and budget personnel to identify whatcontrols were in place relating to Matching, Level of Effort, Earmarking.The Department could not identify any internal control procedures in place to provide reasonableassurance of compliance with the Matching, Level of Effort, Earmarking requirements.Lack of internal controls over Matching, Level of Effort, Earmarking could result in Federal programsbeing overcharged or undercharged in error, which causes misstatements in the financial statementsand noncompliance with Federal regulations.The Department of Public Health should establish, implement and formally document policies andprocedures over Matching, Level of Effort, Earmarking. The policies and procedures should enablemanagement to verify and monitor compliance with the requirements of OMB Circular A-133.Finding Control Number: FA-405-12-03REPORTINGRequired Transparency Act Reports Not FiledSpecial Supplemental Nutrition Program for Women, Infants, and Children (CFDA 10.557)U.S. Department of AgricultureHIV Care Formula Grants (CFDA 93.917)U.S. Department of Health and Human ServicesGrant Awards: Year 2012 - 11115GA718W1003; 11115GA718W5003; 12125GA718W1006; X07HA22709 HIVCondition:Criteria:Our examination included a review of the Federal Funding Accountability and Transparency Act(FFATA) requirements for the Special Supplemental Nutrition Program For Women, Infants andChildren (CFDA No. 10.557) and HIV Care Formula Grant (CFDA No. 93.917) program. TheDepartment of Public Health (Department) did not have controls in place to ensure the FFATAreporting requirements were met.The Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act),effective October 1, 2010, in the section that relates to subaward reporting under grants andcooperative agreements states that:"Information on first-tier subawards related to Federal contracts and grants and the executivecompensation of awardees must be made publicly available."In response to the Federal Funding Accountability and Transparency Act, the Office of Managementand Budget (OMB) requires a prime grant awardee to submit a FFATA report for each applicableFederal grant by the end of the month following the month a subaward or obligation is made.85