Office of the Auditor General
Including the Provisions of the Single Audit Act
Department of Human Services
October 1, 2002 through September 30, 2004
A Single Audit is designed to meet the needs of all financial report users, including anentity's federal grantor agencies. The audit determines if the financial schedulesand/or financial statements are fairly presented; considers internal control over financial reporting and internal control over federal program compliance; determinescompliance with State compliance requirements material to the financial schedulesand/or financial statements; and assesses compliance with direct and material requirements of the major federal programs.
Financial Schedules and Financial Statements:
Auditor's Reports Issued
We issued unqualified opinions on theDepartment of Human Services' (DHS's)financial schedules and on the financialstatements of the Children's Trust Fund.
Internal Control Over Financial Reporting
We identified reportable conditions related tointernal control over financial reporting(Findings 1 through 4). We considerFindings 1 and 4 to be material weaknesses.
Noncompliance or Other MattersMaterial to the Financial Schedulesand/or Financial Statements
We did not identify any instances ofnoncompliance or other matters applicable tothe financial schedules and/or financialstatements that are required to be reportedunder
Government Auditing Standards
.However, we did identify reportableconditions (Findings 1, 3, 4, and 17).
Auditor's Reports Issued on Compliance
We audited 16 programs as major programsand identified known questioned costs ofapproximately $34 million and known andlikely questioned costs totaling $651 million.DHS expended a total of $5.5 billion infederal awards during the two-year periodended September 30, 2004. We issued 8unqualified opinions, 1 qualified opinion, and7 adverse opinions. The opinions issued bymajor program are identified on the back ofthis summary.
Internal Control Over Major Programs
We identified reportable conditions related tointernal control over major programs(Findings 4 through 6, 8 through 18, and 20through 23). Also, we identified otherreportable conditions related to internalcontrol (Finding 7). We consider Findings 4,8, 9, 11 through 16, and 22 to be materialweaknesses. In addition, we identified 19recommendations repeated from our priorreport for the two-year period endedSeptember 30, 2002, many of which were