Department of Human Services budgetary compliance report for the fiscal year ended June 30, 2010

=

Year I 2010

Department of Human

Services

Budgetary Compliance
Rrqort
For the Fiscal Year
Ended June 30,2010

Department of Audits and Accounts
Russell W. Hintan
State Auditor
State Government Division John A. Thornton, Director

BUDGETARCYOMPLIANCREEPORT FORTHE FISCALYEARENDEDJUNE30,2010
-TABLEOF CONTENT- S

Page

Independent Accountant's Report .......................................................................................................i.
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund ............................................................................................................1...

Current Year Findings and Questioned Costs Schedule of Findings and Questioned Costs ..........................................................................25

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DEPARTMEONFTAUDITASND ACCOUNTS

270 Washington St. S.W. Suite 1-156

Atlanta, Georgia 30334

RUSSELWL . HINTON

STATE AUDITOR (404) 656-2174

INDEPENDENT ACCOUNTANT'S REPORT

The Honorable B.J. Walker, Commissioner Georgia Department of Human Services
and Members of the Georgia Department of Human Services

The Honorable Kathryn Fowler, Executive Director Council on Aging
and Members of the Council on Aging

We were engaged to examine the Georgia Department of Human Services' compliance with the 2010 Appropriations Act, as amended, (Final Budget) and Article VII, Section IV Paragraph VIII of the Constitution of the State of Georgia for fiscal year ended June 30,2010. Also included in our examination was the following administratively attached organization, whose budget was included in Section 27: Human Services, Department oj of the 2010 Amended Appropriations Act: Council on Aging.

Management for each of these organizations is responsible for their compliance with the following requirements:

An appropriated budget unit cannot overspend their authorized budgeted amounts at the legal level of budgetary control (funding source within program). This means that amounts reflected in the "variancettcolumn under the heading of Expenditures Compared to Budget in the Statement of Funds Available and Expenditures Compared to Budget by Program and Funding Source Budget Fund are not negative variances.

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 or association." As applied here, this means that amounts reflected in the "variance" column under the heading of Excess (Deficiency) of Funds Available Over/(Under) Expenditures in the Statement of Funds Available and Expenditures Compared to Budget by Program and Funding Source Budget Fund are not negative variances.

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Our responsibility is to express an opinion on compliance with the aforementioned requirements for the Georgia Department of Human Services and the Council on Aging based on our examination.

Except as discussed in the following paragraph, our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, include examining, on a test basis, evidence about the Georgia Department of Human Services' and the Council on Aging's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the aforementioned organization's compliance with the specified requirements; however, o w report may be useful to legal counsel or others in making such determinations.

The Georgia Department of Human Services has excessive unsubstantiated manual journal entries, excessive cash management shortages and overages, fund sources set up using invalid or incorrect Catalog of Federal Domestic Assistance (CFDA) numbers, state fund sources set up as Federal, and makes entries to "PROGRAM NOT IDENTIFIED." The Department also uses a Cost Allocation method that leads to extreme inconsistencies in the allocation of standard operating expenditures over set programs. As a result, we do not express an opinion on whether the Georgia Department of Human Services complied, in all material respects, with the 20 10 Appropriations Act, as amended, (Final Budget) and Article VII, Section IV Paragraph VIII of the Constitution of the State of Georgia for the fiscal year ended June 30,2010.

In our opinion, the Council on Aging complied, in all material respects, with the aforementioned requirements for the fiscal year ended June 30,2010.

A summary of our opinions on compliance for the Georgia Department of Human Services and the Council on Aging is as follows:

Organization
Department of Human Services Council on Aging

Unqualified Qualified Adverse Disclaimer Opinion Opinion Opinion (No Opinion) x
x

In the Schedule of Findings and Questioned Cost section of this report, we have reported all findings and questioned costs related to the Georgia Department of Human Services' compliance with the 2010 Appropriations Act, as amended, (Final Budget) and Article VII, Section IV Paragraph VIII of the Constitution of the State of Georgia for fiscal year ended June 30,2010; including any identified deficiencies in internal control over compliance which were determined to be either material weaknesses or significant deficiencies.

A separate management report will be issued to the Board and management of the Georgia Department of Human Services and the Council on Aging disclosing other information pertinent to the financial and compliance activities of the organization.

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This report is intended solely for the information and use of the Board and management of the Georgia Department of Human Services and the Council on Aging and management of the State of Georgia, including the Governor and the Georgia General Assembly. This report is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.
Respectfully submitted,

December 15,2010

Russell W. Hinton, CPA, CGFM State Auditor

Department of Human Services
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Deparlmenial Administration State Appropr~ation State General Funds Tobacco Settlement Funds Brain and Spinal Injury Trust Funds Federal Funds CCDF Mandatory & Matching Funds Child C a n and Development Block Grant Community Mental Hcalrh Services Block Grant Community Services Block Grant Foster Care Title I V - E Low-Income Home Energy Ashistance Maternal and C h ~ l dHcalrh Serv~ceaBlock Grant Medical Ahhistance Program neventive Health and Health Services Block Grant Prevention and Treatment of Substance Abuse Block Grant Social Srrv~ce*Block Grant Temporary Assistance for Needy R m i l ~ e sBlock Grant
'I'ANI' - Block Grant Unoblignted Balance
Federal Funds Not Spec~ticallyIdentilied Other Pundb
Tolal Depsrtmenlal Administration
Adoption Services State Appropriation State General Funds Federal Fund.\ Foster Care Title IV-E Tempnrary Assistance for Needy Families Block Grant Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 h)stcr Carr Tirlc IV-E Federal Funds Not Specifically Identified Other Funds
Total Adoption Services
Total Adult Development Disability
Adult Essential Health Treatment Sure Appropriation State General Funds Tobacco Settlement 1:unds Federal Funds Med~caAl ssistance Program Prevenrivr Health and tlcalth Services B l ~ Gkrant l.edrral Fund, Not Spectfically Idenrtlicd Other Fund5
Total Adult Essential Health Treatment

Original Appropriation

Amended Aropriation

Final Budget

Funds Current Year
Revenues

Department of Human Services
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

After School Care State Approprvarlon Smte General Funds Rdcral Funds 'fenipornry Ass15tancefor Necdy 17arnilicsBl<rkGrant Other Funda
Total Afler Schml Care
Child and Adolescent Mental Health State Appropriation State General Funda Stale General Funds - Prtor Year Fcderal Funds Co111munityMental Healrh Services Block Grant Med~calAssisrance Progdm Federal Funds Not Specitically Identitied Other Funds
Total Child and Adolesrent Mental Health
Child Care Services Srsre Appropriation Stare General Funds Federal Funds CCDF Mandatory & Matching Funds Child Care and Development Block Grant Social Services Block Granr ltmporary Assistance for Needy Families Rlock Grant Fcderal Funds Nor Specifically Identified Amer~canRecovery and Remvestment Act of 2009 Child Care and Vevelopnlent Block Granr Olher Funds
Total Child Care Services
Child Support Services Sratc Appropnat~on State General Funds Federal Funds Social Serv~cesBlock Grant Federal Funds Not Specitically ldent~fied Anvrican Recovery and Reinvestme111Act of 2009 Federal Funds Not Specifically Identified Other Funda
Total Child Support Services

Original Appropriation

Amended Approprialion

Final Budget

Funds Current Year
Revenues

Available Compared to Budget

Prior Year

Total

Carry-Over

Funds Available

Variance Positive (Negative)

Expenditures Uompsrcd lo Budget

Variance

Actual

Positive (Negative)

Excess (Deficiency)
(11' Funds Availuhlr Overl(Undcr) Expenditures

Department of Human Services
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Child Welfare Services State Appropriation State General Funds Stale General Funds - Pnor Year Federal I'undx CCDF Mandatory & Matching Fundh Community Services B l ~ Gkrant R~sterCare T~tleIV-E Medlcal Assistance Program Suclal Services Block Grant lemporaly Asslstence for Needy Families Block Grant T A N F Blrrk Grant Transfers to Soc~aSl erv~cesBlock Grant Federal Funds Not Specifically Idenrlfied Anvrican Recovery and Reinvestment Act of 2009 Foster Care Title IV-E Medical Assistance Program Other Funds
Total Child Welfare Services
Elder Abuse Investigations and Prevention State App~opriation Srale General Funda Federal Funds Soclal Servlces B l r ~ kGrant Federal Funds Not Specifically Identified American Kccovcry and Reinvestment Act of 2009 Medical Ahsihlance Program Other Fund5
Total Elder Abuse Investigations and Prevention
Elder Community Living Services Stare Appropriation State General Funds Tobacco Settlement Funds Federal Fund5 Medical Assistance Program Social Servlces Block Grant Federal Funds No1 Specifically ldenr~tied Anrrlcan Recovery and Relnvestlnent Act ot 2009 Medical Ahslhtance Pn~gram Federal t.und.r Not Specifically Identified Other Funds
Total Elder Community Living Services

Original Appropriation

Amended Appropriation

Final Budge1

Funds Current Year
Revenues

Available Compared to Budget

Prior Year

Total

Carry-Over

Funds Available

Variance Pmitive (Negative)

Expenditures Compared to Budget

Variance

Actual

Pcr~itive(Negative)

Excess (Deficiency)
or Funds Available Over/(Under) Expenditures

Department of Human Services
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Elder Support Services State Appropriation State General Funds Tohacco Settlement Funds Federal Funds Federal Funds Not Specifically Identified American Recovery and Re~nvestmentAct of 2009 Federal Funds Not Specifically ldentified Other Funds
Total Elder Support Services
Eligibility Delerminatiun State Appropriation State General Funds Fedcral Fund5 Child Carc and Development Block Grant thsrer Care Title IV-E hw-Income H o r n Encrgy Assistance Medical Assistance Progam Temporary Asststance tor Needy Families Blilck Grant Federal Funds Nut Specifically ldentified Anlcrican Rccovery and Reinvestment Act of 2009 Child Care and Development Block Grant Federal Funds No1Specifically Identified EmergencyContingency Fund h r T A N F State Progmm Other Funds
Total Eligibility Determination
Energy Assistance Srarc Appropriation State General Funds Federal Funds Low-Income Home Energy Assihtance Other Funds
Total Energy Assisiance
Epidemiology Slstc Appropriation State General Funds Tobacco Sertle~nentFunds Federal Rnds Medlcal Assistance Prc~grsrn Preventive Health and Health Services Block Grant Federal Funds Kot Specifically ldentified Other Funds
Total Epidemiology

Original Apprupriation

Amended Apprupriation

Final Budgel

Funds Currrnl Year
Revenues

Available Compared la Budget

I'rior Year

Tobtnl

Curry-Over

Funds Available

Variance Pusilive (Negative)

Expenditures Compared lo Budget

Variance

Actual

Pusilive (Negative)

Excess (Deficiency) of Funds Available
Ovcr/(Under) Expenditures

Department of Human Services
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Child Care Licewing Stele Approprlatwll State General Fund\ Tobacco Scttlcment Fund\ Federal Funds I:rr\ter Carc Title IV-E Medical Assisrancc Program Federal lunds Not Specifically ldenr~tied Tcmpor~ryAss~stancefor Needy Rmily Other Funds
Total Child Care Licensing
Family Violence Servi~xs Srate Appropriation State General Funds Federal Funds Preventive Health and Health Services Block Grant Temporary Ass~stancefor Needy Rrnilies Block Grant Federal Funds Not Specitically Identified Other Funds
Total Family Violence Services
Federal Unobligated Balances Federal Funds
TANF - Block Grant Unubligated Balance
Fuod Stamp Eligibility and Benefits State Apprnpnatlon Srste General Funds Federal Funds Federdl Funds Not Specifically Identified Anlerican Kecuvery and Reinvest~nentAct of 2009 Federal Funds Not Sprcitically ldenttfied Other Funds
Tutal Food Stamp Lligibility and Benefits
Immuni~ation State Apprcrpriati<m State General Funds Federal Fund\ Maternal and Ch~ldHealth Serv~cesI3lock Grant Medical Awsrance Pmgrdni Preventive Health and Health Servlces Block Grant Federal Funds Not Sprcitically Identified Other Funds
Total Immunization

Original Appropriation

Amended Appropriation

Final Budget

Funds Current Year
Hevenues

Available Compared to Budget

I'rior Year

Total

Carry-Over

Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Variance

Actual

Positive (Negative)

Excess (Deficiency)
of Funds Available Overl(Under) Expenditures

Department of Human Services
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Infanl and Child Essenlial Health Srate Appmpr~at~on Srare General Funds Federal Funds Maternal and Child Health Services Block Grant Medical Assislance Pn~gram Preventwe Health and Health Services Block Grant Fcdcral Funds Not Spcctlically ldentttied Other Funds
Total Infant and Child Essential Health
Infant and Child Health Promotion Stste Appropristio~l State Cenerel Fund Tobacco Funds Federal Funds Maternal and Child Health Services Block Grant Medical Assistance Program Preventive Health and Health Services Block Grant Temporary Assistance for Needy Rmilies Block Grant Federal Funds Not Specifically Identified Anler~canRecovery and Re~nvestmcnAt ct of 2009 Fcderal Funds Not Specifically Identified Orhcr Funds
Total Iufanl and Child Health Promotion
lnlectious Disease Control Statc App~,~priat~on State Gcncral Funds Federal Funds Maternal ilnd Ch~ldHealth Serv~crsBlock Grunt Med~calAssistance Program Federal Funds Not Specifically Identified Other Funds
Tolal Infectiuus Disease Control
Injury Prevention State Approprtation State General Funds Tobacco Settlement Funds Rdcral Funds Medical Absistance Program I'rcvcntivc Hcillth and Health Services Block Grant Federal Funds Not Specifically ldent~fied Other Funds
Total Injury Prevention

Original Appropriation

Amended Approprialion

Final Budget

Funds Current Year
Revenues

Availnhlt! Compared to Budget

Prior Year

Total

Carry-Over

Funds Availahle

Variance Positive (Negative)

Expenditures Compared to Budget

Variance

Actual

Positive (Negative)

Excess (Deficiency)
01 Funds Available Overl(Under) Expenditures

Department of Human Services
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Inspectiom and Environmental State Appropr~at~on State General Funds Federal Funds Maternal and C h ~ l dHealth Services Block Grant Medical hasislance Program Preventive Health and Health Services Block Grant Rdcral Funds Not Spec~ticallyldenrified Other Funds
Total Inspections and Envirnnmental
Out illHome Care Sure Appropr~at~crn State General Funds Federal Funds Foster Care Title I V - E 'retnporary Assistance for Needy Rmiliea Block Grant
TANF - Block Grant Unobligared Balance
Federal Funds Not Specifically Idcnlificd Children's Healrh Insurance Ptvgratn Anlencah Recovery and Re~nvest~nenAtct of 2009 lirster Carc Tille IV-E Other F u ~ r l s
Total Out of llome Care
Refugee Assistance State Appropriation State Generul Funds Federal Funds Not Specitically Identified Other Funds
Total Total Out of Home Care
Substance Ahuse Prevention Service State Appropriation Statc General Funds Federal Funds P r e v e ~ r l ~anod~T~reatment ot Substance Ahuse Hlirck Grant Federal Funds Not Specifically ldcntilied Other Funds
Tcrtal Substance Ahuse Prevention Service
- Support l o r Needy Fanlilies Basic Asvistance
Srare Appropr~at~on State Gcne~aFl unds
Federal Funds h,srer Care Title IV-E Temporary Ass~starlcefor Needy l'amilies Block Grant 'I'ANF - Block Grant Unobl~gatedBalance Federal Fundb Not Specltically ldent~tied
Other Funds
- Total Support for Needy Families Basic Assistance

Original Appropriatiun

Amended Appropriation

Final Budget

Funds Current Year
Revenues

Available Compared lo Budget

Priur Year

Total

Carry-Over

Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Variance

Actual

Positive (Negative)

Excess (Deficiency)
of Funds Available Overl(Under) Expenditures

Department of Human Services
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

- Support for Needy Families Family Assistance
Srate Appnrpriatlon Slate General Funds Stete General Funds - Prior Year
Federal 12unds Cornrnun~lySewices Block Grant CCDF Mat1dau)ry& Marching Funds Low-lnco~neHome Energy Assistance Medical Assislance P n ~ ~ a m Temporary Asslalance thr Needy Fa~nil~eBslock Grant T A N F - Block Grant Unobl~&dtedBalance Fcdcral Funds Not Specifically Ident~tied
Anlerican Rccovrry and Reiove\trnent AcL of 2000 Corn~nun~Styervices H l w k Grant Federal Funds Not Specifically ldent~tied
Other Funds
- Total Support for Needy Families Family Assistance
- Support for Needy Families W o r k Assistance
Slate Appropriation State General Funds
Federal Funda CCDF Mandatory & Matching Funda Foster Care Title I V - E Medlcal Aaslswnce Progrilrn Temporary Asslsrance for Needy Rmilies Block Grant Fcderal Funds Not Specifically Identified
A m r ~ c a nRecovery and Rc~nvermenAt ct of 2009 Child Care and Development Block Grant Temporary Assiatance fur Ncrdy Rmilicb Block Grant
Sralc Fiscol Srab~l~zatioFnunds Svahilization Fund - Temporary Asslstnnce for Need Fa~nil~eh
Other Funds
- Total Support for Needy Families Wurk Assistance

Original Appropriation

Amended Appropriation

Final Budget

Funds Currenl Year
Revenues

Available Compared to Budget

Prior Year

Total

Carry-Over

Funds Availahlc

Variance Positive (Negative)

Expenditures Compared to Budget

Variance

Actual

I'ositive (Neealive)

Excess (Deficiency j
of Funds Available Over/(Underj Expenditures

Department of Human Services
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Vital Records State Approprietiun State General Funds Federal Funds Federal Funds Nut Specifically Identified Other Funda
Total Vital Records
Brain and Spinal Injury TruslFund Srate Appropriation Stale Gcneral Funds
Rra~n& Sp~naIlnjury Trust Fund - Prlor Year
Braln & Splnal lnjury Trust Fund Federal Funds
kderal Funds Not Spec~ticallyIdentified Other Funda
Total Brain and Spinal INury Trust Fund
Children's Trust Fund Commission Srate Appropriat~on State General Funds Federal Funds Temporaly Aabistance for Needy Families B l w k Grant Wderal Funds Not Specifically Identified Other Funds
Total Children's Trust Fund Commission
Developmental Disabilities, Governor's Council on Slate Appropriation State General Funds Federal Funds Federal Funds No1 Specifically Identified Other Funds
Total Developmental Disabilities, Governor's Council on

Original Appropriation

Amended Appropriation

Final Budget

Funds Current Year
Revenues

Available Compared to Budget

Prior Year

Total

Carry-Over

Funds Available

Variance Positive (Negative)

Expenditures Compared to Budgel

Variance

Actual

Positive (Negative)

Excess (Deficiency) or Funds Available
Over/(Under) Expenditures

Department of Human Services
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Family Con~~eclinn Stale Approprlat~on State General Funds Federal Funds Medical Asbistance Program Temporary Assistance for Needy Families Block Grant Federal Funds Not Specifically Identitied Other Funds
Total Family Connection
Federal Fund Transfers to Other Agencies Federal Funds CCIIF Mandatory snd Marching Fund5 Child Care and Dcvclupmnt Blwk Grant Social Services Blwk Grant Temporary Assistance for Needy Farml~erBlock Grant
Total Federal Fund Transfers lo Other Agencies
Sexual Offender Review Board Srate Appropriation State General Fund5
Child Fatality lnvesligalions Slate Appropriation State General Funds Federal Fundh Federal Funds Not Spec~ficallyldent~fied Orher Funds
Total Child Falality Invesligationr;
Georgia Child Fatality Review Stare Appropr~atio~l State General Funds Other Funds
Total Georgia Child Falalily Keview
- Special Project Child Welfare Services
Federal Funds Temporary Assisrance for Nmdy Familics Bllrk Grant
Total Special Projecl- Child Welfare Services

Original Appropriation

Amended Appropriation

Final Budget

Funds Currenl Year
Revenucs

Available Compared to Budget

Prior Year

Total

Carry-Over

Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Variance

Actual

Positive (Negative)

Excess (Deficiency)
of Funds Available Over/(Under) Expenditures