State of Missouri Single Audit Year Ended June 30, 2007

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Informations

• Publié par: Thoim
• Nombre de lectures: 27
• Langue: English

Extrait

Susan Montee, CPA
Missouri State Auditor


State of Missouri

Single Audit

Year Ended
June 30, 2007

March 2008 auditor.mo.gov
Report No. 2008-17
Office of March 2008
Missouri State Auditor
Susan Montee, CPA


The United States Congress passed the Single Audit Act of 1996 to establish uniform
requirements for audits of federal awards administered by states, local governments,
and non-profit organizations. The Single Audit includes the federal awards
expended by all state agencies, except for the public universities and various
financing authorities that provide their financial information directly to the federal
government. State agencies expended $8.8 billion of federal grant funds during the
year ended June 30, 2007. Expenditures of federal awards have increased steadily
over the past five years. Although nineteen state departments and other state offices
expended federal awards, six state departments expended the bulk of the federal
awards (95 percent). These six departments are: Social Services, Transportation,
Labor and Industrial Relations, Elementary and Secondary Education, Health and
Senior Services, and Public Safety. Overall, the state expended federal awards in
308 different programs.
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There are concerns regarding subrecipient monitoring in multiple departments, including
Natural Resources, Public Safety, Social Services, and Transportation. Problems with
subrecipient monitoring include not adequately ensuring audit reports are received timely
and that adequate corrective action is taken on findings, not following up on audit report
information that differs from grant records, not ensuring that expenditures of
subrecipients were allowable, not adequately documenting monitoring visits, and not
ensuring equipment purchased is properly used. In addition, the Department of Social
Services does not consider certain entities to be subrecipients and, as a result, does not
require the subrecipients to obtain audits in accordance with OMB Circular A-133.

The departments of Elementary and Secondary Education, Public Safety, and Social
Services do not ensure that all entities paid more than $25,000 are not suspended or
debarred from receiving federal funds, as required by federal guidelines.

Several findings summarize prior reports issued by the State Auditor’s Office that related
to various federal programs including Department of Health and Senior Services -
Bioterrorism Program, Department of Health and Senior Services - Protecting
Children at Child Care Providers, Early Childhood Development, Education, and Care
Fund, and Social Service Child Support Delinquencies.

Also included in the single audit report are recommendations related to the Department of
Agriculture - State Mediation Grants, Department of Mental Health - Block Grants for
Prevention and Treatment of Substance Abuse, and Department of Social Services -
Adoption Assistance, Child Care Development Block Grant, Child Care Mandatory and
Matching Funds of the Child Care Development Fund, Temporary Assistance for Needy
Families, and Rehabilitation Services - Vocational Rehabilitation Grants to States.

All reports are available on our Web site: www.auditor.mo.gov STATE OF MISSOURI
SINGLE AUDIT

TABLE OF CONTENTS

Page

INTRODUCTION AND SUMMARY ........................................................................................ 1-8

Summary information, charts, and graphs of Expenditures of Federal Awards........................ 2-8

STATE AUDITOR'S REPORTS............................................................................................... 9-17

Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards........................................ 10-12

Independent Auditor's Report on Compliance with Requirements
Applicable to Each Major Program and Internal Control Over Compliance
in Accordance With OMB Circular A-133........................................................................... 13-15

Independent Auditor's Report on the Schedule of Expenditures
of Federal Awards in Accordance With OMB Circular A-133 ............................................ 16-17

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS............................................. 18-25

Notes to the Schedule of Expenditures of Federal Awards .................................................. 26-27

SCHEDULE OF FINDINGS AND QUESTIONED COSTS,
YEAR ENDED JUNE 30, 2007 ........................................................................................... 28-61

Section I - Summary of Auditor's Results .........................................................................29

Section II- Financial Statement Findings...........................................................................31

Section III - Federal Award Findings and Questioned Costs ............................................31

Number Description

Department of Agriculture
2007-1. State Mediation Grant..............................................................................31

Department of Elementary and Secondary Education
2007-2. Procurement and Suspension and Debarment..........................................32

Department of Health and Senior Services
2007-3. Bioterrorism Program ..............................................................................33
2007-4. Protecting Children at Child Care Providers ...........................................35

-i- STATE OF MISSOURI
SINGLE AUDIT

TABLE OF CONTENTS

Page

SCHEDULE OF FINDINGS AND QUESTIONED COSTS.................................................. 28-61

Department of Mental Health
2007-5. Personal Service Costs.............................................................................37

Department of Natural Resources
2007-6. Subrecipient Monitoring..........................................................................38

Department of Public Safety
2007-7. ..........................................................................43
2007-8. Procurement and Suspension and Debarment..........................................44

Department of Social Services
2007-9. Adoption Assistance Compliance............................................................45
2007-10. Child Care Payments................................................................................47
2007-11. Earmarking - Child Care Development Fund ..........................................49
2007-12. Subrecipients............................................................................................50
2007-13. Procurement and Suspension and Debarment..........................................52
2007-14. Early Childhood Development, Education, and Care Fund.....................53
2007-15. Child Support Delinquencies ...................................................................56
2007-16 Temporary Assistance for Needy Families Compliance .........................57
2007-17. Annual Review Documentation...............................................................59

Department of Transportation
2007-18. Subrecipient Monitoring..........................................................................60

FOLLOW-UP ON PRIOR AUDIT FINDINGS FOR AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS ................................................................62-63

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
IN ACCORDANCE WITH OMB CIRCULAR A-133........................................................... 64-95

-ii- INTRODUCTION AND SUMMARY


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INTRODUCTION AND SUMMARY

The United States Congress passed the Single Audit Act of 1996 to establish uniform
requirements for audits of federal awards administered by states, local governments, and non-
profit organizations. The Office of Management and Budget (OMB) issued Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations to set forth standards for
obtaining consistency and uniformity among federal agencies for the audit of non-federal entities
expending federal awards. A single audit requires an audit of the state's financial statements and
expenditures of federal awards. The audit is required to determine whether:

The state's basic financial statements are presented fairly in all material respects in
conformity with generally accepted accounting principles.

The schedule of expenditures of federal awards is presented fairly in all material respects
in relation to the financial statements taken as a whole.

The state has adequate internal controls to ensure compliance with federal award <