1. FY 2014 Financial Audit Results Presenter: Lynn Vellinga, Deputy Commissioner Presentation to: DHS Board of Human Services Date: April 15, 2015 Georgia Department of Human Services

2. The annual Single Audit for state FY2014 commenced in May 2014 and concluded with an Exit Conference in February 2015 The scope of the audit was: - State Budgetary Compliance Report - Federal Compliance Testing (TANF, SNAP, LIHEAP, Foster Care, ) - Financial Statements (Comprehensive Annual Financial Report) CAFR First year DHS achieved Budgetary Compliance with no audit findings or comments. A 50% decline in Audit Findings from 6 to 3 versus FY2013. Continued work required to resolve historical balances for bank reconciliations, balance sheets, and other General Ledger reconciliations. Audits have additional focus of helping DHS improve its financial performance and strengthen its internal controls. Timing and Scope Results Summary Department of Human Services FY2014 Financial Audit Results

3. Department of Human Services FY2014 Financial Audit Results Inadequate Bank Reconciliation Procedures Unresolved outstanding reconciling items Reconciliations now on a 30 day cycle and current items are cleared Non-Compliance FFATA Reporting Requirements FFATA reporting not complete or timely FFATA reporting centralized and FY2015 completed on time Inadequate Sub-Recipient Monitoring - LIHEAP Review of monthly expense and program reports not performed A control process has been established and monitored monthly 3 Audit Findings

4. Department of Human Services FY2014 Financial Audit Results DHS audit findings have consistently and dramatically decreased since 2011.

5. Department of Human Services Board of Directors Resources DHS audit findings have consistently and dramatically decreased since 2011. Budgetary Compliance Report (BCR) http://www.audits.ga.gov/SGD/bcr.html Comprehensive Annual Financial Report (CAFR) http://www.audits.ga.gov/SGD/cafr.html Annual Single Audit http://www.audits.ga.gov/SGD/single_audit.html The SAO and Department of Audits & Accounts provides key statewide financial reports on line