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

State of GeorgiaFederal Awards Findings and Questioned CostsFor the Fiscal Year Ended June 30, 2012Effect:Recommendation:Failure to submit FFATA subaward reports results in noncompliance with Federal regulations. Inaddition, the failure to determine whether or not a subawardee was required to report the names andtotal compensation of its five (5) most highly compensated officers could result in noncompliance withFFATA reporting requirements by the Department.The Department of Education should develop additional policies and procedures to ensure that FFATAsubaward reports are submitted in a timely manner and to provide appropriate guidance or direction tosubawardees regarding the reporting of the names and total compensation of their five (5) most highlycompensated officers.COMMUNITY HEALTH, DEPARTMENT OF (*)Finding Control Number: FA-419-12-01PROCUREMENT AND SUSPENSION AND DEBARMENTControls Over and Compliance With ProcurementARRA - Survey and Certification Ambulatory Surgical Center Healthcare-Associated Infection (ASC-HAI) PreventionInitiative (CFDA 93.720)Children's Health Insurance Program (CFDA 93.767)State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare (CFDA 93.777)Medical Assistance Program (CFDA 93.778)Money Follows the Person Rebalancing Demonstration (CFDA 93.791)U.S. Department of Health and Human ServicesGrant Awards: Year 2012 - 05-1105GA5021; 05-1105GA5ADM; 05-1105GA5MAP; 05-1105GAARRA; 05-1105GACPBP;05-1105GAEXTN; 05-1205GA5021; 05-1205GA5ADM; 05-1205GA5MAP; 05-1205GAIMPL; 05-1205GAINCT;1LICMS030163-01-06Condition:Criteria:Information:Cause:Effect:Recommendation:When procuring goods and services that are federally funded, the Department of Community Health isrequired to use the same State policies and procedures used for procurements from non-federal funds.In addition, the Department must also ensure that federally funded contracts include any clausesrequired by federal statutes or regulations. We noted two (2) contract files in a sample of eleven (11)did not contain required certifications for covered contracts. Those two (2) contract files did notinclude a signed Drug Free Workplace certification which is required documentation.The Department of Community Health is responsible for administering the following programs: theMedicaid program, the Children's Health Insurance Program and the Money Follows the PersonRebalancing Demonstration. These programs are overseen by the U.S. Department of Health andHuman Services through the Centers for Medicare and Medicaid Services (CMS). The Department ofCommunity Health is responsible for complying with the Procurement, Suspension, and Debarmentrequirements applicable to these federally subsidized programs and is also responsible for establishingand maintaining effective internal controls over compliance with the aforementioned requirements.The Department did not obtain appropriate documentation from two contractors in accordance with thedepartmental policies and procedures in place to ensure compliance with federal guidelines and theGeorgia Procurement Manual.The Department of Community Health has policies and procedures in place to ensure that goods andservices are procured and contracts are enacted in compliance with applicable federal and stateregulations. The Department did not appropriately obtain required certifications for two contracts andthe policies and procedures in place did not prevent or detect this oversight in a timely manner.Federal funds may be used to fund contracts with entities that are not in compliance with federalprovisions and the Georgia Procurement Manual.The Department of Community Health should improve internal controls as they relate to theprocurement and contracting processes to ensure that all required documents are obtained and theDepartment complies with all applicable federal and state regulations.91