Single Audit Report for 2017
The Legislative Auditor has released the Single Audit Report for 2017. The Single Audit recaps in one report many findings related to federal programs, most of which have been previously reported by the auditor. Federal law requires the state to compile the Single Audit every year. Officials use the information to monitor whether the state has complied – or not – with the requirements of federal assistance programs.
The 2017 Single Audit identifies 43 findings involving 14 state entities. Most of these findings already have been detailed in individual agency reports, and 17 were repeat findings from a prior audit. Certain findings resulted in modified opinions on five of the state’s 18 major federal programs because they did not comply with certain requirements.
The programs given modified opinions were:
· Research and Development Cluster – For the second and third consecutive years, respectively, Louisiana State University and A&M College (LSU) and the LSU Agricultural Center (AgCenter) did not comply with federal equipment management regulations. In addition, for the second consecutive year, the AgCenter did not have adequate controls in place to monitor expenses charged to federal appropriations to ensure they complied with the allowable costs/cost principles requirements before requesting reimbursement. LSU, the AgCenter, and the Pennington Biomedical Research Center (PBRC) also did not have controls in place to ensure compliance with federal allowable costs/cost principles requirements. LSU and the AgCenter, as well, did not have controls in place to ensure compliance with federal period of performance requirements. Auditors found, too, that LSU and the AgCenter did not ensure that special tests and provisions requirements were met during fiscal year 2017 and that PBRC did not comply with federal equipment management regulations.
· Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii – The Office of Community Development (OCD), Disaster Recovery Unit identified $281 million in noncompliant awards for 7,477 homeowners participating in the Homeowner Assistance Program. In addition, OCD assigned 272 property owners with Small Rental Property Program loans totaling more than $28.1 million to loan recovery status for noncompliance with loan requirements.
· Unemployment Insurance – For the second consecutive year, the Louisiana Workforce Commission (LWC) did not establish adequate policies and procedures for changes made to the computer systems it uses to administer the Unemployment Insurance program. LWC’s contract with Geographic Solutions Inc., which maintains the system, also lacked key essential terms. Auditors found as well that, for the second consecutive year, LWC did not have adequate controls in place to ensure required federal reports were accurate, complete, and properly prepared and did not ensure compliance with Unemployment Insurance regulations related to program integrity and reducing overpayments. For the second consecutive year, LWC also did not properly secure Helping Individuals Reach Employment and its systems.
· Rehabilitation Services – Vocational Rehabilitation Grants to States – LWC improperly determined eligibility for students participating in the Pre-Employment Transition Services program and did not develop Individualized Plans for Employment in a timely manner, as required by federal regulations.
· Children’s Health Insurance Program – For the third consecutive year, the Louisiana Department of Health failed to accurately complete required quarterly reports of federal expenditures, including an error that resulted in a $23.3 million overstatement of the Children’s Health Insurance Program and a $14.8 million understatement of the Medical Assistance Program.
As a result of the findings included in the Single Audit, $310,216,769 in costs were questioned by auditors, for which the state could be liable. “The resolution of these questioned costs will be determined by the respective (federal) grantors,” the report said.
For the fiscal year ending June 30, 2017, the state received approximately $16.3 billion in federal funds, including loan programs, which is an increase over the nearly $15.3 billion Louisiana received in fiscal 2016.
Forty-three findings were reported in the 2017 Single Audit, which is an increase over the 38 findings reported in the Single Audit for 2016.
For more information contact:
Legislative Auditor
225.339.3800