Department of Human Services budgetary compliance report for the fiscal year ended June 30, 2011 [June 30, 2011]

Fiscal Year

Dr--rt--nt

201 1

I

of U r n - - -
7

Services

Budgetary Compliance
Report
For the Fiscal Year
Ended June 30,2011

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

BUDGETARYCOMPLIANCREPORT FORTHE FISCALYEAR ENDEDJUNE 30,2011
m
COMPLIANCE SECTION
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 ..........................................................................26

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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 Clyde L. Reese, TIT, 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 201 1 Appropriations Act, as amended, (Final Budget) and Article VTT, Section TV Paragraph VTII of the Constitution of the State of Georgia for fiscal year ended June 30,20 11 . Also included in our examination was the following administratively attached organization, whose budget was included in Section 27: Human Services, Department qf of the 201 1 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 (#budgetary control (funding source within program). This means that amounts reflected in the "variance" column 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 VTTI 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 organizations' compliance with the specified requirements; however, our report may be useful to legal counsel or others in making such determinations.

The responsible parties of the Georgia Department of Human Services were unable to provide written, conclusive representation as to the fair presentation of the Statement ofFunds Available and Expenditures Compared to Budget and Fund Balance by Program and Funding Source. Such representations are required under attestation standards. As a result, the scope of our work was not sufficient to enable us to express, and we do not express, an opinion on whether the Department complied, in all material respects, with the 201 1 Appropriations Act, as amended, (Final Budget) and Article VII, Section IV Paragraph Vm of the Constitution of the State of Georgia for the fiscal year ended June 30,201 1.

In our opinion, the Concil on Aging complied, in all material respects, with the aforementioned requirements for the fiscal year ended June 30,201 1.

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 2011 Appropriations Act, a s amended, (Final Budget) and Article VII, Section IV Paragraph VIII of the Constitution of the State of Georgia for fiscal year ended June 30,201 1; 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, as applicable, disclosing other information pertinent to the financial and compliance activities of the organization.

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
. .
11

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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,

November 1 1,201 1

~ u d e lWl . Hinton, CPA, CGFM State Auditor

Department of Human Services
Shtement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2011

Deparbnenhl Adminbtmtlon State Appmpristim State General Funds Tobacco Senlement Funds Statc Gcncral Funds - Prior Ycar Fedeml Funds CCDF Mandatory & Matching Funds Child Care and Development Block Cnant Comnunity Mental Health Services Block Grant C~lTIlIUllitySMCBlo~ckSCklIlt Foster Care Title IV-E Low-lncom Home Energy Assistance Maternal and Child Health Sclvices Block Grant Medical Assistance Program Prevention and Treatment of Substance Abuse Block Grant Preventive Health and Health Services Block Gmnl Social Services Block Grant T A W Unobligated Balance Temporary Assistance for Needy Families Fedcml Funds Not SpsificaUy Identified Other Funds

01igid Approprlntbn

Amended Approphhbn

Addrscent and Adult He* P d o n Statc Appropriation State Gened Funds Tobacco SettlementFunds Federal Funds Medical Assistance Program Temptnary Assistance for Needy Fanilies Block Grant
Federal Funds Not Specifically Identified
Other Funds
Tdpl Adolesant and Adult Health Promotloo
Adoptbn Scrvices State Appropriation State General Funds W r a l Fund9 Foster Care Title IV-E Temporary Assistance for Needy Families Block Grant Federal Funds Not Specifically Identified American Recovery and Reinvesbnent Act of 2039 Foster Can: Title IV-E Federal Funds Not Specifically Identified Other Funds

PPnal Budget

Funds Curmni Year
Revenues

Available Compared to Budget

Prior Year Reserve PtoerunTnmfem

Carry-Over

~~~djushnonts

Totd Funds Avaihbk

Variance Positive (Negative)

Expendlturea Compared to Budget Vnrimnce
Actual

d F& ~vailpble OverWnder) 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 30,2011

Aduk Addktive Diwpse SeviFe State Appropriation State General Funds Federal Funds Prevention and Treatment of Substance Abuse Block G~ant Federal Punds Not Specifically Identified Ockr Funds
TdPl A d a Addletive DiseaseService
Adult Developmenth b i l i t y State Appmptiatim State General Funds Tobacco Senlement Funds Other Funds
Tdrl Adult DevelopmentDbbility
Adult Essenoial HealthTreatment State Appropriation State General Funds Tobacco Settlement Funds Federal Funds Medical Assistance Pmgnun Preventive Health and Health Services Block Chml Federal Funds Nor Specifically Identified Other Funds
ToW Adult E s e d a l H d t h Treatment
Adult Farmak Services State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified
T a l Adult Fomllsk Servicca
Adult Mmtd H d t h S e h s Statc Appmpriatim State General Funds Federal Funds Connvlnity Mental Health Services Block Granl Federal Funds Nat Specifically Identified Other Funds
TOMAdult Menu Hal* Servlcs
Adult NurslngHome S e h e State Appmpriaticm State General Funds Other Funds
ToW Adult Nursing Hane Service

Amended Appropriathn

Find Budget

Funds Cumnt Year
Revenues

Available Compared to Budget

Priw Yenr Reserve Progrpm T m f e t a

Carry-Over

or Adjusbnenlo

T0t.l Funds Available

Variance Positive (Neeptlve)

Expenditures Cornpad to Budget

Varburce

Actual

Positive (Neeptive)

d Funds ~ v d l a b l e 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 30,2011

After Sehod Care
Federal Funds Temporary Assistance for Needy Families Block Grant
Other Fund5
TotalAfter !%C~arIeooI
Child and Adok%xol Addicthe State Appropriation State General Funds
Chlld and Addurecnt Development State Appropriation State General Funds Other Funds
T d a l Cbild and Addercent Development
Child and Adolescent F o d c State Appropriation State General Funds Other Funds
Total Child d Adolcswnt Forensic
Chlld d Adolescent Mental Health State Appropriaticm State General Funds Federal Funds Comnunity Mental Health Sewices Block Grant Federal Funds Not Specifically Identified Other Funds
Total Child d Adolescent M e n u Health
Child Care S e d w State Appropriation State General Funds Federal Funds CCDF Mandatoly & Matching Funds Child Care and Development Block Gram Said Services Block Grant Tempomy Assistance for Needy Families Blwk Grant Federal Funds Not SpeciftcaUy Identified American Recovery and Reinvcshllent Act of 2009 Child Care and Development Block Grant Other Funds
T o b l Child Care Scrvias

Vriginrl Appropriation

Amnded Appropriation

Dnal Budget

Funds Current Year
Revenues

Available Compared to Bud@

- Prior Y a r Reserve r ramT d e r s

Carry-Over

or AcUustments

TaW
Fuads Avaihbk

Varhnee Positive (Negative)

Expenditur~sCanpared to Budget

Varimnce

Actual

Pasithe (NeppOlve)

.- --- - - - - - - - ~ -,*
of F d s 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 30,2011

Child Support Sewices State Appmpriation State General Funds Federal Funds Social Services Block Grmt Fcderal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Funds Not SpecificallyIdentified Other Funds
Total Chlld Support Servioer
Child Welfam Services State Appmpriation State General Funds
- State General Fwds Prior Year
Federal Funds CCDF Mandatory & Matching Funds Comnunity Services Blwk Grant Foster Care Tile IV-E Medical Assistance Pmgram Social Services Block Grant T A W - Block Grant Transfersto Social Services Black Crant Temporary Assistance for Needy Families Block Grant Federal Funds Na SpecificallyIdentified
h r i c a n Recovery and Wivesbnent Act of UX)9 Foster Care Title IV-E
Other Funds
Total Child Wclhre Services
D i d Cam Support S e d State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified OlherFunds
TOMMrect Care Support Servlas
Elder Abuse Investiptiomand Prevention State Appmpriation State General Funds Federal Funds Social SewicesBlwk Grant FederalFunds NIASpecifically Identified h r i c a n Recovery and Reinvesbllent Act of 2009 Medical AssistanceProgram Other Funds
TOMElder A b m Investigatiarsand Prevention

Origiml Appmprhthn

Amended Appmpriation

FlNll Budget

Funds
Curtent Year Reveaues

A v d l l e Comparedto Budge4

Prior Year Resewc ProfmmT d e r s

Carry-Over

&~djustments

TOW
FWAvsihbk

Vahce Positive (Negative)

Erpenditurea Comparedto Budget

Va-

Actual

PosiaVc (Negative)

Ex- (Ddidemy) d Fund$ Available
Over/(Undcr) Expeadibm

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 30,2011

Elder Community Living Services State Appropriation Stab General Funds T o k c o SettlementFunds Federal Funds Medical Assistance Program Social Services Block Grant Federal Funds Not Specificallyldentified Amrican Recovery and Rcinvesbnent Ad of 2009 Federal Funds Not Specifically ldentified Other Funds
ToW Elder Coamunity Living Servkes
Elder Support Servlms State Appmpriation State General Funds Tobacco Settlement Funds Federal Funds Federal Funds Not Specifically Identified A~lpricanRecovcly and Reinvestment Act of UX)9 Federal Funds Not Specifically Identified Other Funds
Total Elder Supper( Servim
Elgibilhy Determinullon State Appmpriaticm State General Funds Federal Funds Medical Assistance Pmgram Tempomy Assistance for Needy Families Block Grant Fedcral Funds Not Specifically Identified Other Funds

Appropriatbn

Amended Approprintbn

Emergacy PrepnRdnesdFrama State Appropriation State Creneral Funds Federal Funds Preventive Health and Health Senices Block Grant Federal Funds Not Specifically Identified Other Funds
ToW Emergency Prepredness/TrPum
Entrgy Assistance Federal Funds Low-Incom: Home Energy Assistance Other Funds
Tdal Energy Assislance

Final Budget

Funds Current Year
Revenues

Available Compared to Budget

Prior Year Reaewe P~.agr~Tmm f e r s

Clry-Over

or Adjustments

TdPl Funds Available

Varhnee Pmitive (Negaave)

Expmdltures Campad to Budget

of Funds ~ v a i l a i e

Variance

OveriIUnder)

Achd

Positive (Negative) 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 30,2011

Epldc-w State Appmpriatim State General Funds Tobacco Setllement Funds Federal Funds Medical Assistance P m p m Preventive Health and Health Services Block Grant Federal Funds Not Specifically Identified Other Funds

Odgilnl Appropriatbn

Amended Appropriation

Child Care kensing Stak Apprcpriatim State General Fun& T o b ~ c oSeitlementFunds Federal Funds Foster Care Title I V E Medical Assistance P m p m Temporary Assistancefor Needy Fanily FederalFunds Not Specifically Identified O t h r Funds
TOW CWd Care Wecrrsiog
Fpnily Videme Services State Appropriation State General Funds Federal Funds Preventive Health and Health Serviccs Block Grant Temporary Assistance for Needy Families Block Grant Federal Funds Not Specifically Identified Other Funds
Totnl F d g Violence Services
Federal UnoMig~tedBalancw Federal Funds
- TANF Block Grant Unobligated Balance
F o d Stamp Eligibility and BenefitP State Appmpriatim State General Funds Federal Funds FederalFunds Not Specifically Identified Orher Funds
TOMFood StampEllgiblllty and BcncfitP
Imnunlmlition State Appmpriatim State General Funds Federal Funds Medical Assistance Pmgram Pederal Fmds Not Specifically Identified
TOW ImmPlizPtbn

Final Budget

Funds Current Year
Rev-

Available Compared to Budget

Prior Ycnr Reserve P r w ~ mT d e r s

Carry-Over

~'~djustmenb

Totrl huds Available

Varhnce Poslthre Wegative)

Expenditurn C r m p a d to Budget

of ~und.s~ v n i l n b i

Variance

OverMlnderj

Achul

Positive (Negative)

Expemtitures

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 30,2011

Idant and CNld Essential Health Statc Appropriation State General Funds Federal Funds Maternal and Child Health Senices Block Grant Medical Assistance Program Federal Funds Not Specifically Identified
Total Infant and Child EssentiPlHealth
Infant and CHld Health Plwnotbn State Appmpriation Stare General Funds Tobacco Settlement Funds Federal Funds Maternal and Child Hcalth Services Block Grant Medical Assistance Pmgram F'reventive Health and Health Senices Block Grant Ternpomy Assistance for Needy Familics Block Orant Federal Funds Not Specifically Identified Other Funds
TdPl Infant and Child Health Promotion
Inleetbus DLsuse Contrd State Appropriation State General Funds Federal Funds Medical Assistance Pmgram Federal Funds Not Speci6eallyIdentified Other Funds
Total Infectrou. D B e w Contrd
laJuly Prevention State Appropriation State General Funds Federal Funds Medical Assistance Pmgram F'reventive Health and Health Services Block Grant Federal Funds Not Specifically Identilied
Total IMry F'revenlinn
Inspectlorn snd Envlmnmeotal State Appropriation State General Funds Federal Funds Fedcral Funds Not Specifically Identified Other Funds

01igjnal Appropriabbn

Amended Appropriation

Final Budget

Funds C u m n t Year
Revenws

Available Compred to Budget

Prior Year Reserve Program Tralrsfers

Carry-Over

wAdjhnts

TOW Fuods Available

Varbrnce Positive (Negative)

Expenditures C o m p n d to Budget

Vatinme

Actual

Positive (Negative)

Excess (Defldencv) of F& ~vailabi;
OverWnder) 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 30,2011

0ut.d-Home Care State Appmpriaticm State General Funds Federal Funds Foster Can Xrlc IV-E State Childmn's Insurance Program TANF Unobligated Balance Temporary Assistance for Needy Farrilis Federal Funds Not Specifically Identified American Recovery and Reimveshlrnt Act of 24W Foster Care Title IV-E Othcr Funds

Odginml Appropriation

Amended Appropriation

Re* Assistance State Appropriation State General Funds Federal Funds Medical Assistance Program Federal Funds Not Specifically Identified Other Funds

SubstanceA b m Prevenlim Service Federal Funds Preventim and Treatment of Substance Abusc Block Grant Federal Funds Not Specifically Identified
Tdal Substame Abuse Pmvedon Seda
- Supportfor Needy Familks Bndr A6sistnofe
State Appropriation State General Funds
Federal Funds T A W - Block Grant Unobligated Balance Temporary Assistance for Needy F a d i e s Block Grant Federal Funds Not Specifically Identified
Other Funds
- Tdnl Suppoltfor Needy Funilies Basic Assislanee

Final Bud~et

Funds Current Year
Reveows

Avdabk Compared lo Budget

Prior Year Reserve Pmgmm Trnmfers

Caq-Over

or-~djustmenb

TOW Funds Avdbble

Variance Positive (Neptlve)

Expendtures Campnrcd to Budget

Variance

Acid

Poaltive (Negative)

of F ~ I &AVPIIPM; Over/(Umler)

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 30,2011

- Support for Needy FomilSos Fnmlly Assistance
State Appropriation State General Funds
Federal Funds CCDF Mandatory & Matching Funds Cornunity Services Block Grant
- TANF Block Grant UnobligatedBalance
Temporary Assistance for Needy Families Block Gram Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal h d s Not Specifically Identified Other Rnds
Total Support for Needy Families -Family AssisEPna
- Support for Needy F a d l i e s Work Assistance
State Appmpriaticm State General Funds
Federal Funds CCDF Mandatory & Matching Funds Medical Assistance Pmgram T A W Unobligated Balance Temporary Assistance for Needy F d l i e s Fedcral Funds Not Specifically Identified
American Recovery and Reinvesnnent Act of 2009 Temporary Assistance for Needy Families Block Grant Federal Funds Not SpecificallyIdentified
Other Funds
- T d d Support for Needy Familis Work Assistance
vital Records State Appropriation Stau: Gcneral funds Federal Funds Fedeta1 Funds Not Specifically Identified
T d a l VIW R m r d s
Federal EllgibiliIy -at Senicls State Appropriation
State General Funds Pederal h d s
CCDF Mandatory & Matching Funds Child Care and Development Block Grant Cornunity Mental Health Services Block Grant Cornunity Services Block Grant Foster Can: Title IV-E Low-Incorn Home Energy Assistance Medical Assistance Pmgnun Temporary Assistance for Needy Families Block Grant Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2Ml9 Child C m and DevelopmentBlock Grant Federal Funds Noc Spe~ificallyIdentified Other Funds
T d d F e d e d Eligibility Benefit Services

Origilral Appropriation

Amended Appropriation

Fllul Bud@

mda Current Yenr
Revenues

Avaihble am pared to B-

Wor Year R M N ~ Program Transfen

(Lrry-Over

or-~d~ustrnents

Tdrl Fuods Available

Variance Positive (Negative)

~xpendituresComparedto Budget

Variance

Actual

Positive (Neptive)

d Funds ~ v . i l a b j i Over/(Under) Expeadllures

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 30,2011

Brain and Spinal Injury TRst Fund Ocher Funds
Georgia C o m i l M Developmental Disabilities Federal Funds Federal Funds Not Specifically Identified Other Funds

Origirnl Appropriation

Amended Appropriation

F n d l y Coanedion State Appropriation Stau:General Funds Federal Funds Medical Assistance Program Temporary Assistance for Needy Families Block Grant

Federal Fund T d e r s to Otber Agencies
Federal Funds CCDF Mandatory and Matching Funds Child C m and Development Block Grant Social Services Block Grant Temporary Assistance for Needy Families Block Grant
Talnl Federd Fund Transiersto Other Agenda
S e d Offeader Review Board State Appropriation State General Funds
Child Fntnlity 1nvestig.tions State Appropriation State General Funds
- Child Welfare Senices Spaial Project
Federal Funds Temporary Assistance for Needy Fanilies Block Grant
- Total Chlld Welfare Services SpecialPraject
Commtmity Seniees Federal Funds Community Service Block Grant Amrican Recovery and Reinvesmnt Act of 2009 Federal Fun& Not Specifically Identified
TOMComrnuniQ Services

Fsd Budget

Fwlds Current Year
Revenues

Avdnble Caapred to Budget

Prim Year Reserve P r o g m T d e r s

Carry-Over

or Adjustments

Tdll Funds AvliLbk

VsrlsKe P0Sith.e (Negntive)

ExpenditurnCaapared to Budget

Vske

Actual

Posithre (Negative)

Excess (Deficiency) d Funds ~vnilsble
Over/(Under) Expenditurn

799.890.31

(799,890.31)

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 30,2011

ProgramN d Identilied State Appmpriatim State General Funds Brain and Spinal Injury T n s t Fund Tobacco Settlement Funds Federal Funds CCDF Mandatory & Matching Funds Child Care and Development Block Grant Comnunity Mental Health Services Block Grant Maternal and Child Health Services Block grant Medical Assistance Program Prevention and Treatment of Substance Abuse Block Grant Preventive Health and Health Services Block Grant TANF - Block Grant Unobligated Balance Ternpmary Assistaxe for Needy Families Fcdcral Funds Not Specifically Identified Other Rnds
Apndes Attached for Adminbtrative Purposes
Council On Aging State Appropriation State General Funds
Bdget Unit This

OrigiaPl Appropriation

Amended Appropriation

Fiud Budwt

Funds Current Y e a r
Revenues

Available Comparul to Budget Prior Year Regerve -ram Tmwfem
Carry-Over

TOW

Varinnce P d t h e (Negative)

Expenditures Campand to Budget Variance

of Funds~vnilabie Over/(Uder) Expenditures

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DEPARTMENOFTHUMANSERVICES Schedule of Findings and Questioned Costs For the Fiscal Year Ended June 30,201 1
Finding Control Number: FS-427-11- 100 THE BUDGET Failure to Certify the Accuracy of the Budgetary Compliance Report

Condition:

Our cursory review of the Statement of Funds Available and Expenditures Compared to Budget by Program and Funding Source presented in the Budgetary Compliance Report (BCR) revealed the following instances of noncompliance for the Department of Human Services (Department):

1)Adoption Servicesl Federal Funds Not Specifically Identified Expenditures exceeded Funds Available by $1,000

2) Child Support Servicesl Federal Funds Not Specifically Identified Expenditures exceeded Funds Available by $23.18

3) Child Support Services1American Recovery and Reinvestment Act of 2009- Federal Funds Not Specifically Identified Expenditures exceeded Funds Available by $45.01

4) Child Welfare Servicesl Other Funds Expenditures exceeded Funds Available by $104,086.75

5) Energy Assistance1Other Funds Expenditures exceeded Funds Available by $568,858.00

6) Support for Needy Families-Basic AssistancemANF-Block Grant Unobligated Balance Expenditures exceeded Funds Available by $4,361,567.00

7) Support for Needy Families-Work AssistanceIFederal Funds Not Specifically Identified Expenditures exceeded Authorized Budget by $8,084,767.94

8) Federal Eligibility Benefit ServicesIFederal Funds Not Specifically Identified Expenditures exceeded Authorized Budget by $122,168.46

The Department of Human Services, however, declined to sign the "Letter of Representation" certifying the accuracy of the amounts reported by fund source within budgetary program. As a result, we did not perform detailed testing of the underlying documentation supporting the amounts reported in the BCR. Accordingly, we were unable to determine the Department's compliance with the requirements of the current Appropriations Act, as amended, (Final Budget) and the Constitution of the State of Georgia.

DEPARTMEONFTHUMANSERVICES Schedule of Findings and Questioned Costs For the Fiscal Year Ended June 30,2011

We did, however, perform a cursory review of the Preliminary BCR and Post-Closing Adjustments done by the Department and discovered the following:

1) On the Preliminary BCR, expenditures for thirty (30) line items in various programs exceeded authorized budget for a total of $82,349,869.93. In addition twelve (12) line items in various programs had expenditures that exceeded funds available for a total of $675,359.3 1.

2) Thirty-two (32) Post-Closing Adjustments were submitted by the Department and the State Accounting Office posted an additional seventeen (17) entries to the BCR.

Based on our cursory review of these entries and inquiries of management, we determined that most of the journal entries lacked appropriate supporting documentation, and were being made by the agency without the necessary research to determine what the appropriate entry should be to correct the underlying issues.

Criteria:

The Appropriations Act, as amended, (Final Budget) prohibits an agency from overspending their authorized budgeted amounts at the legal level of budgetary control (funding source within program). As applied here, this means that amounts reflected in the "variance" columns of the appropriated budget unit's budgetary comparison schedule at the legal level of budgetary control are not negative variances and do not result in a deficiency of funds available under expenditures.

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.

Cause:

Due to the uncertainty regarding the accuracy of the Statement of Funds Available and Expenditures Compared to Budget by Program and Funding Source, the Department declined to prepare and sign a letter of representation for the examination engagement of the organization's compliance with the 201 1 Appropriations Act, as amended.

Effect:

The amounts reported in the Department's BCR for the programs identified should not be used for decision-making purposes at the legal level of budgetary control because of the lack of assurances by management and the likelihood that the BCR contains material errors.

DEPARTMENOTF HUMASNERVICES
Schedule of Findings and Questioned Costs For the Fiscal Year Ended June 30,2011
Recommendation: The Department should manage its budgetary activity at the legal level of control, which is fund source within program. In order to produce
accurate and useful BCR reports in the future, actions to be taken by the
Department should include, but not be limited to, the following:
1 . Improve controls over Manual Journal Entries to ensure that adequate documentation is provided for each journal entry, including listing the actual invoices being moved when expenditures are rerated to other fund sources. Details and totals on supporting documentation must tie to the amounts on the journal entry.
2. Revise the review process to ensure that the personnel who are approving journal entries understand the effect that each journal entry will have on the accounts, fund sources, and programs.
3. Monitor transactions posted during the fiscal year on a regular basis rather than relying on journal entries to correct problems identified at year-end.
4. Revise the Cash Management policies and procedures for requesting, recording, and distributing Federal funds to ensure that they are adequate to meet cash management objectives.
5. Review all funds sources and programs for compliance with the State Chart of Accounts and the Appropriations Act. Provide SAO with information for correcting any errors noted in the set up of fund sources and programs.