MICHIGA N OFFICE OF THE AUDITOR GENERAL AUDIT REPORT FINANCIAL AUDIT INCLUDING THE PROVISIONS OF THE SINGLE AUDIT ACT OF THE DEPARTMENT OF HUMAN SERVICES October 1, 2006 through September 30, 2008 soe J ant eas) y ‘Tuonas H. McTavist, C.P.A. ‘= Be Aupror GeneraL “ecto009‘The auditor general shail conduct post auaits of financial transactions ard accounts of the state and ofall branches, ‘dspartmants, offices, boards, commissions, agencies, authorties and insituions of the state estabished by this ‘constitution or by law, and performance post audits thareof ‘Audit report information can be accessed at: hrtp:/audgen.michigangovto Fas Michigan Office of the Auditor General ea Financial Audit Including the Provisions of the Single Audit Act Department of Human Services October 1, 2008 through September 30, 2008 REPORT SUMMARY Report Number s31-0100.08 Fetonee September 2008 A Single Audit is designed to meet the needs ofall nancial repert users, including an enuity’s Federal grantar agenctes. The aualt determines if the financial schedules ‘and/or financial statements are ‘ally presented, consigers internal contrat over Jinancial reporting and internal control over federal program compliance; determines ‘compliance with requirements materia! to the financial schedules and/or financial Statements; and assesses compliance with dvect and material requirements of the ‘major federal programs. Financia! Schedules and Financial ‘Statements: ‘uator's Reports issue ‘We iezued unqualified opinions Department of Human Services! (OHS's] finanisl venules and onthe fineneal onthe Intermal Contra! Over Financial Reporting \we identifies signifeant deficiencies in internal contol over Fnaneal reporting Findings. 1 tvough 4). We donot consider these signiicant deficencas to be material wwecknessee Noncompllanee and Other Matters ‘Material fo the Finaneial Schedules ‘dir Fnanclal Statements We cid not. ontity any instances of ancanplenes or oer matters epaleabie to the financiel schedules andlor financial statements that ate requited to be reported Howovt, we aid identify other instances of noneonpianes [Findings 1, 3,4, sn) Federal Awards: ‘Auditors Reports Issued on Compliance we euaita Is programs 25 mejor programs ‘and identifad tnown questioned costs of $169.8 millon and Krown. and Tiehy ‘questioned costs toting £271 Omilion OHS expensed ® ste! of 965 billon in federal fwarde using tho sve-yeer poviod ended September 20.2008, We suse © unqualified ‘opinons, 9 qualifiod opinions. and 2 adverse pinons The opinions issued by major program are idantifed on the back of this Internal Contol Over Major Programs We dentiied significant defetensestinntanel tonto! over federal program —complance IFindings. 6 vwough 21). We eonaider Findings 8, 8, 12, 14, 18, 17, and 18 2 contain material weatnesces. In adciton, we ‘dentited 27 tecommendations iepeated from ‘ur ptiorraport for the two-year peviod ended September 20, 2000, many of whch were feo reporad in early DHS. Single Audits IFindinge 8.8, and 8 trough 1)