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

State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Cause:Effect:Recommendation:The deficiency noted was caused by the Department's failure to implement controls and proceduresnecessary to properly report the required FFATA information.The effect of this deficiency is noncompliance with Federal Funding Accountability and TransparencyAct requirements.The Department of Public Health should develop and implement appropriate controls and proceduresto ensure that all FFATA reporting requirements as identified in the OMB guidelines and instructionsprovided in the OMB "Open Government Directive - Federal Spending Transparency and Subawardand Compensation Data Reporting" guidance are being met.Finding Control Number: FA-405-12-04SPECIAL TESTS AND PROVISIONSFailure to Document Review and Approval of Compliance InvestigationsSpecial Supplemental Nutrition Program for Women, Infants, and Children (CFDA 10.557)U.S. Department of AgricultureGrant Awards: Year 2012 - 11115GA718W1003; 11115GA718W5003; 12125GA718W1006Condition:Criteria:Our examination included a review of documentation maintained by the Department of Public Health’s(Department) Office of Inspector General for compliance investigations performed for the SpecialSupplemental Nutrition Program for Women, Infants, and Children (CFDA No. 10.557). Our reviewdisclosed that the Department's Office of Inspector General did not maintain evidence of the reviewand approval procedures that were performed on compliance investigations prior to the issuance ofcloseout letters.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.”The Accounting Procedures Manual for the State of Georgia, Section 5, Pages 5-4-2 and 5-4-3, states,in part: 1) “Documentation – involves preserving evidence to substantiate a decision, event,transaction, or system. All documentation should be complete, accurate, and reported promptly.” 2)“…Verification is the determination of the completeness, accuracy, authenticity and/or validity oftransactions, events or information. This control activity enables management to ensure activities arebeing done in accordance with directives.”Cause:Effect:Recommendation:The Department's Office of Inspector General failed to document the review and approval of thecompliance investigations they performed.Failure to document the performance of internal control procedures impedes management’s ability toverify that controls are properly and consistently performed and increases the risk that noncompliancewith Federal regulations will not be prevented or detected.The Department of Public Health should establish and implement additional policies and procedures,as needed, to ensure that the review and approval of compliance investigations are properlydocumented.86