State of Georgia financial administration: a staff study, Governor's Commission on Economy and Reorganization, 1959 December

,"
STATE OF GEORGIA .,-
a staff study
,
GOVERNOR'S COMMISSION ON ECONOMY AND REORGANIZATION
DECEMBER, 1959

TABLE OF CONTENTS

1. HOW THE STATE IS ORGANIZED FOR FINANCIAL ADMINISTRATION . . .. . . . . . . . . . . . .

A.

FINANCIAL ADMINISTRATION DEFINED.

B.

ORGANIZATION FOR FINANCIAL ADMINISTRA TION

IN GEORGIA. . . . . . . . . . . . . . . . . . . . .

The General Assembly The Finance Commi~6ion The Governor The Budget Bureau The State Auditor The Comptroller General The State Treasurer The State Depository Board Supervisor of Purchases State Personnel Board Department of Revenue The Tax Settlement Board Operating Departments Collecting Revenue

II. ACOUIRING THE FUNDS FOR FINANCING STATE GOVERNMENT .

A.

SOURCES.

Taxes Licenses Fee'S Departmental Earnings Local Government Contributions Federal Grants Borrowings

Page 1 1 3
. 10 11

TAB LEO F CON TEN T S (Con tinued)

Page

B. REVENUE COLLEC TIONS. . . .

16

The State Department of Revenue Processing of Deposits and Refunds by
the Department of Revenue

III. THE BUDGET SYSTEM . . . . 0 0
A. BUDGET PREPARATION AND ADOPTION

Development of Departmental Expenditure Estimates
Development of Revenue Estimates Submission of Budget Estimates to the
Legislature Preparation of the Proposed Appropriation Act Adoption of the Appropriation Act Administrative Discretion in Supplementing
Legislative Appropriations Crediting Agency Accounts with Available
Funds

B. MAKING APPROPRIATIONS AVAILABLE FOR

EXPENDITURE 0



0

0



"

The Quarterly Allotment Monthly Budget Allotments Exceptions to Allotment Procedure

C. CAPITAL IMPROVEMENTS BUDGETING"

Appropriations for Capital Improvements Authority Financing

21 22
36 , .. 44

ii

TAB LEO F C 0 fl TEN T S (C 0 n tl n u e d ) Page

IV. EXPENDITUR E CONTROLS . . . . . 53

A. AGENCY CONTROLS . .

53

B. PERSONNEL CONTROLS . .

55

. . . . . . . . . C. PURCHASING CONTROLS.

. . . . . . 58

Extent of Coverage

Standardization and Pooling of Purchase.

Checking on the Propriety of Purchases

. . . . . . . . D. POST AUDITING CONTROL .

63

E. CONTROLS ON AUTHORITY EXPENDITURFS. . .

65

V.

TREASUR Y MANAGEMENT. . . 66

A. FUNDS MANAGED BY THE STATE TREASURER . 66

B. FUNDS MANAGED BY OPERATING DEPARTMENTS . . 69

Hi

TAB LEO F CON TEN T S ( Continued)

EXHIBITS

Follows Page

Exhibit 1 Exhibit Z Exhibit 3 Exhibit 4 Exhibit 5 Exhibit 6

SOURCE AND APPLICATION OF STATE FUNDS 1951-58. . . . . . . . . . . . . . . . . . . . . . 11

TOTAL FUNDS COLLECTED BY STATE AGENCIES 1957-58. . . . . . . . . . . . . . . . . . . . . . 16

REVENUE COLLECTIONS BY THE STATE

DEPARTMENT OF REVENUE 1958.. 59. t

17

ORGANIZATION CHART .. STATE DEPARTMENT OF REVENUE . 17

FIELD INSTALLATIONS OF THE STATE

DEPARTMENT OF REVENUE . I

17

LEGAL BASIS FOR THE 1959 .. 60 GENERAL

FUND BUDGET ......

34

Exhibit 7
Exhibit 8 Exhibit 9

MEANS BY WHICH FUNDS ARE MADE AVAILABLE TO THE STATE AGENCIES .. 37

MAJOR STATE AUTHORITIES . . 46

FLOW OF STATE FUNDS THROUGH BANKS .

69

APPENDIX
SELECTED CONSTITUTIONAL AND STATUTORY PROVISIONS RELATING TO
FINANCIAL ADMINISTRATION

iv

-I-
I. HOW THE STATE IS ORGANIZED FOR FINANCIAL ADMINISTRATION
A. FINANCIAL ADMINISTRATION DEFINED Financial administration of the State government, in its broadest sense, encompasles many activities and functions and involves practically all State agencies. To provide a common basis for describing the financial operations of the State in their entirety, the activities considered in this study to be a part of the financial administration of the State government are identified below. 1. Revenue collection. The process whereby revenues established by the
legislature as a means of financing State government are collected, recorded and depos ited. Z. Budget formulation. The development of a fiscal plan by the executive branch of the government with the assistance of the legislative branch which relates anticipated revenues to estimated expenditures and which presents a proposed distribution of revenues to operating agencies. The plan, establishes, in financial terms, the policies and programs of the State and includes:
a. a current operating budget for a specified period, usually one or two years.
b. a long term operating budget which projects into the next several hscal periods the continuing cost of the programs included in the current operating budget and projects estimates of current revenue throughout the same periods.
c. a capital improvement budget which "hows the capUti1 outlays requ[rea by the program outlined in both the current operating budget and the long-term operating budget and presents financing plan. for .uch outlay.

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3. Legislative enactment of the budget. The review, amendment and passage by the General Assembly of the budget presented by the executive branch. The appropriation act or acts reflect the legislature's decisions on continuation of present programs, expansion of existing programs, dropping or curtailing certain activities, and adding new State services.
4. Budget control. The procedures established for authorizing operating agencies to proceed with the spending of specific sums for their programs in such a manner as to assure their accomplishment within the amount of funds made available by the General Assembly. Such procedures include the use of allotments, allocations and withholding of reserves as control devices.
5. Staffing. The establishment of personnel administration procedures which assure that personnel are retained or hired to provide the services and perform the functions authorized by the General Assembly in the budget.
6. Pu rchas ing. The procurement of all materials, supplies and equipment necessary for the accomplishment of the approved programs.
7. Pre-auditing. The review of all proposed expenditures to assure that they are in comformance with the budget, with administrative regulations, and with all legal requirements before the obligation is incurred.
8. Accounting. The recording of all finan,cial transactions of the State government, in order to establish financial responsibility, and to provide vital information required in the management of State affairs and for public understanding of State finances.
9. Disbursements. The actual payment of all properly authorized obligations of the State government.
10. Custody of funds. The procedures for safeguarding the revenues of the State from the time of their collection until the time of the disbursement and for deriving benefits from the investme~t of revenues.
11. Custody of property. Accounting for the State's property and equipment.
12. Post audit. The review of the processing of all revenues and expenditures after the transactions are completed to assure that all procedures are in accordance with the law and that all expenditures have been made legally.

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B. ORGANIZATION FOR FINANCIAL ADMINISTRATION IN GEORGIA
Characteristically, under the American political system, responsibility is assigned to the executive branch of government for the formulation of a proposed budget, to the legislature for the enactment of an appropriation bill, and to the Governor for supervising its execution. In fact, sound administration demands that if the Governor is to be held accountable as the chief executive officer of the State, he must be in a position to formulate a program of revenues and expenditures and, when it is adopted as amended by the legislature, to administer this program. This pattern presently exis ts in Georgia.
The General Assembly. The General Assembly occupies its key position by virtue of its constitutional
authority to make appropriations from the general fund and to enact revenue measures. This authority is limited by both the item-veto power of the Governor and by a recent Constitutional amendment which requires that the legislature include specific sums in its appropriation act, based on revenues realized from specified sources, for purposes of highway construction and maintenance.
While all members of the legislature may participate in deliberations on the a.ppropriation act, certain members participate more directly in the consideration of State finances by serving as members of either the House or Senate Appropriations Committees, the House Ways and Means Committee or the Senate

-4 -
Banking and Finance Committee. Preliminary deliberations on expenditure and revenue measures take place in these committees.
One of the legislature's most important functions relating to State finances is the enactment of legislation creating special authorities, since this procedure is usually followed exclusively in Georgia for purposes of financing capital improvements through borrowing. The specific purposes for which the authority is created, its membership and the limitations on its borrowing are all determined by the legislature and specified in the act. Even though the creation of the authority is a means of financing imt'Hovements outside of the general fund and avoiding the constitutional limitation on borrowing, the debt which is in<;:urred is nevertheless a part of the total picture of State finances.
The Finance Commission. The Commiss ion was established to provide an opportunity for agency heads
to appeal decisions of the Budget Bureau. It is also authorized by statute to actively assist the Governor in the preparation of the budget for submission to the General Assembly. The Governor is Chairman of the Commission. Representing the legislative branch on the Commission are the President of the Senate (The Lieutenant Governor), the Speaker of the House, the Chairman of the Senate Appropriations Committee, and the Chairman of the House Appropriations Comm ittee.

- 5-
The Governor. The Budget Bureau.
The basis for the Governor's role in financial administration is established by the Constitution which provides that he shall submit a budget message and a proposed app-ropriation act to the legislature shortly after it is organized. Statutory budget authority is given the Governor by virtue of his designation as Director of the Budget and head of the Budget Bureau under the Budget Act of 1931 and in subsequent legislation. In this capacity, he is delegated substantial authority in the distribution of funds from the income equalization account. Since it has not been the practice to adopt appropriation acts annually, it will be seen later in this study that the use of those funds to make annual adjustments to appropriations in lieu of a new appropriation act gives to the Governor control over a sizeable portion of the total expenditures.
The State Auditor. The State Aud\tor is elected by the General Assembly. His term continues
indefinitely until the General Assembly chooses a successor. The Auditor functions in two major areas. First, he serves the legislative branch by post auditing the financial operations of all State agencies, having the authority to prescribe forms and records for use by the agencies for collection, receipt and disbursement of funds and for insuring control of State property. Second, he serves the executive branch as Assistant Director of the Budget in the Budget Bureau. As Director of the Budget the Governor has delegated many budgetary duties to the Auditor as Assistant Director of the Budget.

- 6-
The Comptroller General. The Comptroller General is an elected Constitutional Officer. The duties
of this office in the field of overall financial administration have changed over the years as other duties have been assigned to the Comptroller General. The financial functions remaining with the Office are recording and countersigning warrants against general fund appropriations, acknowledging revenues deposited in the State Treasury, collecting certain general fund revenues (fees from insurance companies), and issuing annual reports on the financial operations of State government. The Comptroller General also administers the insurance laws of the State, conducts the fire safety and prevention program of the State and regulates the activities of small-loan companies operating in Georgia.
The State Treasurer. The State Depository Board.
The State Treasurer is an elected Constitutional officer. He is custodian of most of the funds on deposit with the State government. This official maintains records of all revenue received by him and pays monthly amounts to the various departments upon receipt of a warrant for such amounts from the Auditor, as Assistant Director of the Budget. He serves as disbursing agent fQr the legislative branch of the State government, for the judicial branch, (the Superior Courts, the Judicial Council, and salaries of Judges and Attaches of the Supreme Court and the Court of Appeals), and for a number of small commissions.

- 7-
The State Depository Board, consisting of the Governor, the Ccrmptroller General, and the Treasurer, may name the banks of the State in which State funds are to be depos ited. In doing so, the Board is required to make the mos t advantag~ous contracts for interest to be paid for use of the State's money. A conflict between the statutory provisions as to the form in which funds may be held by banks and the Federal Reserve System regulations, (under which most banks operate) governing the payment of interes t on depos its has prohibited the execution of interest contracts by the Board.
Supervisor of Purchases. Appointed by the Governor with the approval of the Senate, the Supervisor
of Purchases serves for a term of four years. As head of the Purchasing Department this official directs the purchases under competitive bidding of all supplies, materials, and equipment required by all agencies of the State government and contracts for all utility and printing needs of these agencies. He is required to establish and enforce standard specifications; rent or lease State property; exercise general supervision of all storage facilities; maintain inventories of all property and equipment; administer the laws relating to automobile and mileage allowances; and transfer or sell surplUS or obsolete property.
State Personnel Board. The three~man State Personnel Board, appointed by the Governor with the
advice of the Senate, is established by the Constitution for purposes of

-8-
administering the State's merit system. The central personnel functions which it performs, including the setting of salaries, relate only to those employees of the State who are designated by statute or executive order as being covered by the merit system. The Board appoints a Merit System Director for an indefinite term.
Department of Revenue. Tax Settlement Board.
Practically all departments of the State government collect some form of revenue. Most of the revenues are transferred to the State Treasury; others remain with the operating departm ents. Of the amoun ts which are turned over to the Treasury, the major portion is collected by the Department of Revenue. Thi.s Department, which is headed by a Commissioner appointed by the Governor with the approval of the Senate, collects most taxes levied by the State. Administration of the tax program, in the case of the alcohol tax, includes enforcement of the State's liquor laws.
For purposes of settling and compromising tax assessments of a questionable nature, the General Assembly in 1953 established a Tax Settlement Board. Its membership consists of the Attorney General, the Chairman of the Senate Banking and Finance Committee, the Chairman of the House of Representatives Wa.ys and Means Committee, the State Auditor, and the State Revenue Commissioner.

- 9-
Operating Departments Collecting Revenue. There are sixteen departments other than the Department of Revenue and the
Treasurer's office that collect revenues which are subsequently transferred to the State Treasury for depos it in the general fund. These agencies are the Departments of Agriculture, Banking, Labor, Public Health, and Public Safety; the Offices of the Comptroller General and Secretary of State; the Forestry, Game and Fish, Public Service, State Properties, and Western and Atlantic Railroad Commissions; the Supreme Court; the Court of Appeals; the State Library; and the Workmen's Compensation Board.

- 10 -
II. ACOUIRING THE FUNDS FOR FINANCING STATE GOVERNMENT
Nearly one-half billion dollars is required each year for financing the various activities of Georgia's state government. The receipts which go toward meeting this need are derived from over 200 separate sources, including the various taxes. departmental earnings. and grants from the Federal government. The State's Constitution. as adopted in 1945, requires that an money collected from taxes. fees. and assessments for State purposes. as authorized by revenue measures enacted by the General Assembly, be paid into the Genpral Fund of the State (Constitution. Art. VII. Sec. II, Par. III). The further Constitutional prohibi ~ion against appropriating the receipts from any particular tax or fund. with the exception of motor fuel and motor vehicle license taxes, for a particular purpose establishes the basis for a general fund operation with a minimum of earmarked revenues (Constitution, Art. VII, Sec. IX. Par. IV (a)).
While it is true that these Constitutional provisions have eliminated to a great extent the practice of designating the purpose for which certain revenues were to be expended. it does not follow that receipts in the State's general fund equal the total receipts of the State government. For the 1957-58 fiscal year, for example, a total of $468, 775. 066. 61 (exclusive of borrowed funds) was

- 11 -

received in monies from over 200 sources of revenue which were collected by 38 different agencies.

Thes e receipts were distributed in this manner:

Retained by collectors at source

$ 5,949, 171.51

Retained by operating agencies (includes Federal grants) 140,418,407.15

Transferred to- Treasury (General Fund)

3 2 I, 689, 227. 10

Cash on hand- -to be transferred to Treasury Total

718,254.85
$46A, 775,066. 61

To complete the picture of funds derived froJ'll various sources, it is

necessary to add to the above total the amounts borrowed during the course

of the year by the several special authorities.

A. SOURCES There is no clear-cut classification of State government receipts, nor is there a consistent pattern of processing them. Exhibit I, SOURCE AND APPLICATION OF STATE FUNDS, shows the movement of State funds from their source until the time of expenditure. From a detailed analysis of the various monies which come into the State's hands, it is possible to make some generalizations as to the manner in which they are channeled so as to be available for expenditure. Taxes. All taxes are collected by the Department of Revenue and are transferred to the Treasurer for deposit in the general fund. Procedures for collection,

SOG,{CE
APPLlCATlO~

EX:-li'Ji[- 1_
SOURCE AND APPLlCATlON OF STATE FU~mS 1957-58 III MiLions of Dollar ~

.-.....

.....E........:..J......'..........\A.............._:...G..................-$'R....._.......:..E$..................-N33N~...........:..._..................I--.~C1...........:.N.......................Y....G........:...............................................S....:..................................-..

I



FEDER",L (,RXNTS $ lG8
'e iO ':

- 12 -
described later in this study, allow a percentage to be retained by the agent collecting certain ta~es in behalf of the Department of Revenue. Refunds allowable for some of these taxes are made directly by the Department of Revenue out of funds on hand and are therefore not reflected in the net amounts submitted to the Treasury. Refunds for most of the taxes, however, are made by the Treasurer from the gross collections which have been deposited with him.
Licenses. Most licenses issued for the conduct of a business are processed by the
Department of Revenue and those for engaging in a profession are issued by various exam ining boards operating in conjunction with the Secretary of State. Revenue from the issuance of motor vehicle operators licenses is collected by the Department of Public Safety, from fishing and hunting licenses collected by the Game and Fish Commission and for miscellaneous licenses from the Departments of Agriculture and Health, and the Public Service Commission. License fees governing the business of insurance and loan companies are collected by the Comptroller General. All such funds are transferred to the Treasurer for deposit in the general fund.
Fees. The most common types of fees charged are for inspectional services
rendered by State agencies. Examples would include the inspection of feed and fertilizer by the Department of Agriculture and the inspection of mattresses

- 13 -
by the Departm ent of Health. All such fees are processed into the general fund by the inspecting department.
Departmental earnings. Practically all State agencies realize soine revenues from a variety
of services which they perform, ranging from the provision of hospital care, college education, and parking space to the sale of brooms, deputy ranger badges, and zero license plates. In general, revenues realized from these sources remain with the operating departments, although a small percentage of them are being transferred into the general fund.
Local government contributions. A number of State departments and agencies are engaged in programs
which are partially financed by the local governments, but which are administered fully or in part by the State government. Examples include several of the welfare programs and the forest protection program. Funds contributed for these purposes are retained by the departments administering the specific program.
Federal grants. Federal grants to the State for specific programs totaled over $107,000, 000
in the fiscal year 1957-58.

- 14 -

They were distributed to the various departments in this manner:

U. S. GOVERNMENT GRAN'T'S - 1957-58 Fiscal Year

Defense, Department of Education, Department of Forestry Commission Game and Fish Commission Highway Department Labor, Department of Public Health, Department of Public Welfare, Department of University System Veterans Home Commission Veterans Service, Departmentof

Total

$ 363,657 27
7,429, 156. 64 1,022,091.45
298,166.43 26, OJ 7, ] 36.71
3,948,433 84 3,995,998 21 61,126,855.60 3,472,254 77
25,779.60 70, 277 66
$10T"T69,ffO'8'". '8'

The amounts of these grants reflect the application of a variety of Federal formulae and depend upon both the availability of funds to the Federal agencies administering the particu1ar programs and the approval of the Federal agencies of the spending programs submitted by the requesting State agencies. A section m the 1943 Appropriation Act, which is continued in effect by the Constitution, provides that all Federal funds received by the State are continually appropriated in the exact amounts and for the purposes authorized and directed by the Federal government in making the grant. All such funds, with but several exceptions, are received directly by operating departments and are not transferred to the Treasury. The actual checks may be received by the Treasurer, who makes a memorandum entry of the amount and endorses them over to the operating departments. The several grants which are transferred to the Treasurer are held by him as custodian and are not entered into the general lund.

- 15 -
Borrowing. The Constitution enables the State to obtain funds by borrowing, but the
limitation of $4,000,000 and the requirement that the funds be repaid within the fiscal year in which they are borrowed makes it obvious that this borrowing authority is primarily for purposes of meeting temporary needs for cash stemming from the vagaries of the tax calendar. It does not appear that it was the intent of this provision to make available funds with which to finance major capital improvements.
Substantial funds for capital improvements have been authorized by the General Assembly, however, through the use of the authority device. The legislative body has created a number of public corporations which are allowed to borrow funds with which to construct and operate various facilities directly related to the State program of governmental activities. The authorities build such things as a hospital which is rented to the Department of Pu blic Health, roads which are rented to the State HIghway Department, and a market, which is rented to the Agriculture Department. Rentals are paid by the government agencies to the authorities. The rentals, 10 turn, are applled by the authorities to the payment of interest and to retirement of the bonds.
The fact that the bonds issued are not legal obligations of the State does not allow this source of financing to be omitted from an overall study of the State's system of financial administration. The authority is a device, and in some

- 16 -
instances a device only, for raising funds to carry out general objectives of the government. In those instances in which the authority is created both tor raising funds and as an operating entity, such as the Georgia Ports Authority, there is some difference in purpose and relationship to the State's general fiscal structure But in those instances in which authorities were established for purposes of financing road construction, hospitals, schools, and office buildings. they must be regarded as reflecting the considered judgment of the General Assembly as to the best method of long-term financing of government facilities. The facilities make possible programs which are just as much a part of State government as those activities which are financed on a pay-as-you-go basis from general fund revenues.
B. REVENUE COLLECTIONS The 38 departments that have some role in the receipt of funds for the State are listed in Exhibit 2, TOTAL FUNDS COLLECTED BY STATE AGENCIES. This tabulation also indicates the receipts in the 1957-58 fiscal year and the manner in which these receipts were channeled to spending authorities. Since the bulk of State revenues are collected by the Department of Revenue, the activities of the Department are summarized in the study.
The State Department of Revenue. The Department is composed of the Office of the Commissioner, the Office
of the Deputy Commissioner, seven major tax collection units and five

Exhibit 2 TOTAL FUNDS COLLECTED BY STATE AGENCIES 1957-58

AGENCY

TOTAL RECEIPTS

RETAINED BY COLLECTOR AT SOURCE

RECEIPTS TO DEPARTMENT

RETAINED BY DEPARTr'ENT

1957-58 RECEIPTS

TRANSFERS TO THE TREASURY

ADD CASH BALANCES 6/30/57

LESS CASH BALANCES 6/30/58

LESS REFUNDS PAID BY TREASURY

NET RECEIVED BY TREASURY

Agriculture, Department of

Alcoholism, Commission on

'",Hh

of

Banking, Department of Capitol Square Improvement Committee Comotroller Office of the

Correct 10ns, Board of
Courts Defense Department of

Education, Department of Employee Retirement System Fntomoloa'v Den::lrtment of

Forestry Commission Game and Fish Commission Governor

Highway Department Historica 1 Commission Labor Department of

Library, State Medical Education Board Milk Commission

Mines, Department of
Oil and GaS Commission Parks De~rtment

Pharmacy, Board of Property, (State) Commission Public He.:l: lth Den.<l.rtment of

Public safety, Department of Public Service Commission Revenue Department of

Secretary of State
Treasurer Trni vers i ty Sys tern

Veterans Home Commission Veterans Service, Department of
Warm Snrin~s Memoria 1

\\'e Ifare, Department of \>Jorkmen' s Compensati~n Board

$ 1,211,402.48
~~,~~n~
125,471.83
10 lEg'6~UE
1,516,651.12 25,337.31
389,442.80
8,710,410.83
l~r '~6~'~~
2,634,390.74 1,466'~gU6
28,328,358.44 1,968.75
4,091 196.94
3,765.85
217 ~~ :6;
15,990.09
1272E6g~
65.00
4 2~~'i~U~
1,175,962.33 216,411.00
312 539 797.49
566,040.29 338,544.85 23,843,596.40
2'j,779.60
~g'W:~~
65,892,097.59 283,02S.52

$ 160,709. 85

$ 1,211,402.48 23,863.39 10 000 00
125,471.83
10 lEg'6~~:~E
1,516,651.12 25,337.31
389,442.80
8,710,410.83
1~!. '~~t'i~
2,634,390.74 1,305'm'~6

c 788,467.66

28,328,358.44
4 oqi'i~Ut
3,765.85
217 ~~U~
15,990.09
1?7 2E6g~
65.00
I, o~~'i~~'~~
1,175,962.33
<06 m'i~~:g~
566,040.29
2< ~N~U6
23,779.60
~g'K~~
65,892,097.59 283,028.52

$ 42,513.91 $ 1,168,888.57 23,863.39 10 000.00

96.82 26,276.82
1.45

125,375.01 10,140,057.59

1,5 16,651.12 389,442.80

25,337.31

8,710,410.83
19r '66t'i~

2,633,059.49 312,974.32

1,331.25
992,381.15 194.50

28,328,358.44
4 04i:~~~' ~~

4' 640.28

507.31
15,990.09 127 240.26
65.00 4 207.<0<.8
424.08
551.75 31,311.04 23,803,245.80 23,779.60 70,277.66 68 364.19 65,892,09-' .59
85.00

3,765.85 217 8'-7.00
25.00
~~'~~n~
1,175,538.23 216,411.00
306,770,778.08 534 ,729.2:; 388,544.85 40,350.60
2P2,943.~2

$
18,654.05 2,125.48
222,461.85 22,823.68 33.75 8,431.28
30,930.74 176,178.94
31,863.94 12 bO,.QO

$

$

13,208.15 1,932.05

$ 1,168,888.57
125,375.01 10,145,503.49
25 ,5jO. 74

45.27 177 ,678.05

1,285.98
1,037,~~~:~6

2, 008.56
60,833. 12 385,297.14
54,877 .51 1,375.00

43,455.40 3,799.60
226 289.21
25.00

49,429.58

3,69'1,892.93

1,175,538.25 216,411.00
302,866,766.95
511,715.68 588,544.85
51,579.50

282,943.52

~OTALS

.~468,775,066.61 $S,9J~9,177.51 -t462,825,889.10 $,140,1112',LI07.15 ~',322,);07,"i;::] .'"

:52(;,107.61

$718,254 . 25

:t>3,6Jh,892 .Sn .t318,520,1l4L78

- 17 -
adminiatrative supporting units. The Tax Settlem-ent Bcerd, described in a previous section of the study, and the Af!lsistant Attorney-General, who provides the Department legal services, complete the organizational structure. Exhibit 3, REVENUE COLLECTIONS BY THE STATE DEPARTMENT OF REVENUE, shows the collection pattern, by month, of Department of Revenue receipts. Exhibit 4, STATE DEPARTMENT OF REVENUE, presents- the organizational arrangement, briefly describes the major functions, of each of the units, indicates approximate tax collections by each of the units during the pas-t fiscal year and gives the number of employees in each of the units. Exhibit 5, FIELD INSTALLATIONS OF THE STATE DEPARTMENT OF REVENUE, indicates the location and nature of the field installations of the Department.
Process ing of DepoR its and Refunds by the Department of Revenue. The method by which funds move through the Revenue Department, from
the collecting units to the Department's Office of the Comptroller, to the banks and on to the State Treasury, and the related procedures by which refunds to t.axpayers are processed, involve the Department directly with the other centre' fiscal agencies. These procedureS', therefore. merit more detailed consh'1e'tti tion in this study than has been provided in the citation of the duties of the Department unit by unit.
Deposits. The procedures for processing cash prior to its deposit in batlkS by the Comptroller varies from one collecting unit to another. The pr;lcedure utilized by the Income Tax, the Sales and Us e Tax, the Motor Vehicle License Tax, and the Property and License Tax Units is as follows:

":xhibit 3
R F. V E N U E CO L LEe T iON S B Y THE STATE DEPARTMENT OF REVENUE 1958-59

40

40

35

35

30

30

INCOME TAX

25

25

z

(j)
ct: <l: ....J
oo....J

20 15 10

p.v\.'X............................/V.............'.......V...........V............'............O...........................T...........H................E.............R~..............~.............~...........T...~......A....... ........X...............E..... ........S.................... ......................................................................................S...........A.................L..............E................-.S.................................................A................N..................D...............................................U ..............S.. -...........E...........................T.........A.... .........x... .......................... .............................--.............t.-"...'...........,..'............"..............~..............". .............."..............,~ ...............,..............~ ................~ ..............................~..................~ .............................~ .................................~ .

20 15 10

5

5

J

A

S

o

N

DJ

F

M

A

M

J

MONTH

SOURCE: DEPARTMENT OF REVENUE

I

'"SE':'1LE;.<ENT BOARD

I

I

OFFICE OF THE COMMISSIOllER

_

\lAJOR FUNCTIONSl 1, ADMiNIsrllAtiON OF TH:;: TAX LAWS 01" THE STATE.

2. 1'0 PROVIDE THE DOVER!'10R WITH SUCH R:;PORTS AND

ASSISTANCE AS HE MAY REQUIRE.

3. TO MAKE RECO'.rMElfDATIONS TO THE GElGRAL ASSE'.l8LY

ON 1..<:015LATION AFFECTING REVENUE.

1i:~\PLOYEES: 7

O?:ICE OF TIlE DEPUTY CO~~HSSIO~R

I

EMPLOYEES: 2

I

I

I

O:FICE OF THE COMP'1'RtlLLER
'l!A.T0~ FUNCTIONS:
i. :~~~~g~L~'J;g~:S~IO!ITRIN. RESPECT TO
2. DI=iB'I"RSTNG D!:p;,RT~;rrAL Fmms. 3. SAL.~ OF STA'dPS. h. DE:P(1S~T OF COLLECT] ONS. 5. PR:':PARATIOII OF R:;:PORTS.
~:8

,,..
r;"'PLOYE;,;S: 6

I
TAX ~OLLEC1'IO!'i:; 1955-59: '2,500. ~:14
I
'l~J0H Ftn.;CTI ONS:
1. Vc'JD"cflO& OF ALCCHOL TAX'%.
2. D,'TEC'I10N OF ILLr:GAL MANUFACTUR3 AND SALE OF ALCOHOLIC B;,~V2FlAGES.
]. MAINTENANCE OF STATE WAR];}lOUSES FOR LIQIJOR STORAGE PRIOR TO DISTRIBUTION.
TAX COLLECTIONS 19$8-59: 16,154,000. ~:125

I
MA,TOR fU'{CTIOII: i. Km!'tHsT!'UTION 0:' 1',,<: p,:<'u:ro PPO\';
00' ""[IE MOTOR F1JO:L TAX LAWs. ~:22
I
MTSCELLANI::OUS TAX urnT
MAJOR FUNC1l0NS:
i. sALI': of CnAH AND CIGARETTF: STM"PS.
2. COLLECTION OF' BSER TAXES. 3. COLL'-:CTIO~ OF '/fINE TAX':S. Il. COLL~,c,:,ro~ OF ROLLTNG STORE TAXEs. ~ ~ : S 27.110.000. E"fl'LOYEE:S: 28

I

,

SllPLOYE':S: S

::,,' I;{

I
MOTOR FUEL TAX UNIT \IAJOR FUNC'J'!ON:
i. coLLf.c'!'ION OF MOTOR FtIEL 1'AXES. TAX COLLECTIONS 1955-59: 80.500,000. E~PLOITES: 44

I
SALES AND USE TAX lTNlT M.\SOR FUNCTION:
1. C6LLeeIi6N OF THE SALES AND USE TAX. TAX COLLECTIONS 1958-59: f: 133.000,000.
EMPLOYEES: 320

PROPERTY AND LICENSE TAX tmIT
MAJOR F\!NCTIONS:
i. cOLLEcTiON OF PROPERTY TAX.
2. COLLECTION OF I~TANGrBLES TAX. ). COLLECTION Or OCClJ1'ATIONAL TAX.
s.4. cOLLseTTON OF C~PORATJON FRANCHTSS TAX. COLLECTIN1 OF COOP:':RATIVE riARICETJNG TAX. 6. COLLECTION OF UTTLTTY TAX. 7. COLLECTION OF ESTATE TAX.
NX COLLECTIONS 1958_59: t 4,658,000.
EIfPLOYEES: )6

I
'~"JOP:F1JNCTION:
1. SALt AND DISTRI B:}';'ION OF A1J'l'0'101OILI:: AND
TRUCK LIC~NSE TAGS. TAX COLLECTIONS 1959_59: t: 15,073,000.
': 91

I
l'f,JOR i'UNCTION:
i. coLLECI!ON OF INCO~~ TA)(. 'tAX COLi.ECTIONS 19$,~_?9: t 50,000.000. EMPLOYEES: 216

Exhibit 5
FIELD INSTALLATIONS OF THE STATE DEPARTMENT OF REVENUE

o Dalton
~ Rome
~o Atlanta

oD~ Colur.;bus

o Macon
oA

o Douglas

Valdosta A

WayrossA

[] Liquor Warehouses
A Income Tax Offices
o Sales Tax Offices

- 18 -
1. Funds received by the units are recorded in the Units, duplicate deposit slips are prepared and the monies are placed in sealed bags.
2. The sealed bags are delivered to the Office of the Comptroller, accompanied by the duplicate deposit slips.
3. The sealed bags and the deposit slips are picked up by bonded money carriers from the Office of the Comptroller and taken to the banks used by the various units as depositories.
4. The validated deposit slips are returned to the Department by the banks, one copy to the Comptroller, and one copy to the collecting Unit.
The Alcohol Tax and Control Unit's receipts are transferred to the Office of the Comptroller. The Comptroller gives the Unit a receipt for the monies and places the funds in sealed bags which are picked up by bonded money carriers. A single deposit slip accompanies the transfer to each depository. The validated deposit slip is returned by the bank to the Comptroller. Receipts collected on behalf of the Unit by the Office of the Comptroller are deposited in the same manner, with a record of these receipts and deposits being provided the Unit.
In the Miscellaneous Tax Unit, the same procedural pattern is followed in regard to the receipts from beer, wine, cigar and cigarette taxes as is followed for alcohol tax receipts. Other revenues collected by the Miscellaneous Tax Unit are processed as indicated in the four steps enumerated above.
The collections of the Fuel Oil Unit resulting from the brake fluid registration law (approximately $2,500 per year) are simply forwarded to the Office of the Comptroller for deposit. No receipts or duplicate deposit slips are provided the Fuel Oil Unit.
The Comptroller makes daily transfers of funds to various depositories. In most instances the collecting units make daily deposits with the Office of the Comptroller. In some cases, however, daily deposits with the Comptroller are not made due to work load or amounts regarded as insufficient to warrant daily depos it.
On the fifteenth and las t days of each month, the Comptroller transfers the collections for the period to the State Treasury. This is accomplished

- 19 -
by drawing checks on the various banks in which collections have been deposited, payable to the State Treasurer.
Refunds. Refunds are made by all of the tax collecting units of the Department. The refunds arise from taxes illegally or erroneously collected. In each instance the refund payments are treated as reductions in revenue. The method of paying refunds, however, varies from tax to tax.
The Income Tax and Motor Fuel Tax Units use the same method of processing refund payments. This procedure is as follows:
1. The request for a refund is received.
2. The Unit reviews the claim for refund.
3. The claim is approved by the reviewing agent and/or the Director of the Unit.
4. Claims are grouped by the unit and a requis ition for payment of the refunds is prepared and forwarded to the Commissioner of Revenue
5. The Commissioner approves the requisition.
6. The requisition is forwarded to the State Auditor
by the Commissioner.
7. The State Auditor draws a warrant for payment of the refunds and forwards the warrant to the Comptroller General for countersignature.
8. The warrant is forwarded by the Comptroller General to the Treasury for payment.
9. A check covering the total amount of the requisition is prepared by the State Treasurer and forwarded to the Comptroller of the Revenue Department.
10. Based on this check and the requisition, individual checks are drawn by the Units and mailed to the taxpayer

- 20 -
The Sales and Use Tax Unit ( Ga. Code Ann. 92-8445) folLows the procedure outlined above through step 3. Step 4 is omitted and the claims are processed by the Commissioner on an individual basis. After having received the approval of the Commissioner, the claims are sent from the Commissioner directly to the Office of the Comptroller for payment. Checks payable to the taxpayers are drawn by the Comptroller against receipts in the depositories. The warrant procedure is not used. The Sales and Use Tax Unit frequently issues credit memoranda in lieu of cash refunds-
The Gasoline Tax Refund Unit (Ga. Code Ann. 92-1403 1) follows the
refund procedure outlined for the Income and Motor Fuel Tax Units through step 8. Checks for the payment of gasoline tax refunds are drawn to the individual payee by the State Treasurer.
Since the Alcohol Tax and Control Unit and the Miscellaneous Tax Unit deal primarily in tax stamps, a modified procedure is required in regard to refunds. The unused tax stamps are surrendered by the original buyer at the Office of the Comptroller. The taxpayers receive checks directly from the Comptroller in payment for the stamps surrendered. There is no transaction involving a warrant.
IV1otor Vehicle License Tax refunds are processed by use of an escrow fund. The fund is established by withholding from the State Treasury an amount which, based on previous refunding experience, is large enough to cover the anticipated refunds for a specified period. Checks are drawn on this account by the Office of the Comptroller and paid directly to the taxpayers. At the end of the fiscal year, the escrow account is clos ed.
Refunds by the Property and License Tax Unit follow a still different pattern. After a claim for refund has been received and approved by the Unit for payment, the Director of the Unit forwards a certification letter to the State Treasurer requesting payment of the individual refund. The letter must be approved by the Commissioner of Revenue. The State Treasurer prepares the refund check which is sent to the Unit to be mailed to the taxpayer.

- 21 -
III. THE BUDGET SYSTEM
The system presently in use in the State of Georgia for relating revenues to expenditures and for distributing the revenues to the various operating departments does not lend itself to simple explanation. The complexities of the system result primarily from the fact that it has its foundation in scattered and somewhat unrelated statutes and Cons titutional provis ions.
Changes which have taken place in the budget process, either as a result of legislation or by administrative decision, reflect the General Assembly's attitude toward, and its interest in, the control of the spending of State funds. In the period since 1931, when the first budget procedures were adopted, there have been times when legislative control over State expenditures has been rather tightly exercised. In recent years, the General Assembly has in effect surrendered much of its control over expenditures to the Budget Bureau.
The various legal provisions relating to the development and administration of the budget establish the framework for the budget process. These legal provisions and the fiscal procedures utilized to carry them out are described in Part A of this section of the study. This description is followed by Part B which is devoted to an account of the adm inistration of the budget after its

- 22 -
adoption. Capital Improvements Budgeting is discussed in Part C.
A. BUDGET PREPARATION AND ADOPTION The Budget Act of 1931 establishes the basic provisions for the State's budgetary process and for the creation of the Budget Bureau, (Ga. Code Ann. 40-4). Under the provisions of this act, the Director of the Budget is the Governor; the State Auditor is Assistant Director. The statute also provides that legal assistance to the Bureau be provided by the AttorneyGeneral, and that "all necessary clerical assistance shall be performed by employees of the Executive Department and of the State Auditor's office". This has been interpreted as prohibiting employment of technical budget staff by the Budget Bureau.
Development of Departmental Expenditure Estimates. The Director of the Budget is authorized to require all agencies expending
or supervising the expenditure of State funds to submit detailed estimates of their expenditure to him (Ga. Code Ann. 40-402). Requirements as to the form and calendar for submission of such estimates are left to the discretion of the Director. Public hearings on estimated expenditures may be held and State officials may be compelled to attend. All expenditure estimates, except those submitted in behalf of the legislative and judicial branches of the State government, are subject to revision by the Director of the Budget (Governor).

- 23 -
After four years of operation under the 19-31 Act, the practice of annually collecting detailed and forlllal estimates of expenditures from the various agencies was discontinued. A Governor occasionally requests departments to submit detailed estimates of expenditures, but this has not been done annually or systematically. It should be noted that agency heads, at the request of the Governor, presented formal budget estimates to the Budget Bureau for 1959-60 and that the estimates served as the basis for some budgetary decisions QY the Bureau. In the absence of such procedures, the practice has been for the Governor to depend upon the Assistant Director of the Budget (the State Auditor) for the preparation of annual expenditure estimates. This official prepares such estimates by making use of the records of previous years' expenditures by the various agencies which are maintained in the files of his office. He also conducts informal conferences with departmental officials. This method is currently in use and served as the primary basis for the preparation of budget estimates for the current fiscal year.
Development of Revenue Estimates. The estimate of general fund revenues for the financing of the expenditure
estimates is a responsibility of the Budget Bureau (Ga. Code Ann. 4-403). It has not been the p-ractice of the Budget Bureau to present a formal revenue estimate based on an analysis of each source of revenue and reflecting both a projection of identifiable trends and consideration of economic factors.

- 24 -
To fulfill the need for some form of revenue estimate, the practice of the Budget Bureau has been to base such es timates on the experience of the previous fiscal year. Thus, the estimate for the current fiscal year appears to be based upon an assumption of a continuation of tax collections at the 1958-59 level. Total funds budgeted by the Budget Bureau for the cUJ;rent year total approximately the amount of last year's collections, plus the surplus brought forward at the beginning of the year.
Submission of Budget Estimates to the Legislature. The 1931 Budget Act requires that the Governor submit his budget to the
Ceneral Assembly in printed form within seven days after it convenes (Ga. Code Ann. 40-403). The document is to cover expenditures for the nex I. two ensuing year a'i~l i.s to contain "a complete plan of proposed expenditures :Ind aetu<11 revenue and expenditures for each particular fiscal year to which il. relates". The budget is to be accom?anied by a budget message and an apprl;l nation bill. If estimated expenditures exceedestimated revenues, new revenue measures are to be proposed. This legislation remains in effect, :l1l.hOll~h it would appear somewhat altered by the provisions of the 1945 Constitution. The Constitution makes no reference to the preparation of a budget, but it does require that the Governor submit a budget message accompanied by a draft of a general approprl;Jtion bill to the General Assembly
within fifteen days after its organization (Constitution, Art. VII, Section IX, Par. 1)

- 25 -
Since the General Assembly is organized once every two years, it appears that the Constitution contemplates the continued use of a biennial budget.
The practice of preparing a printed budget docul'!1ent for submission to the legislature was abandoned after the first such document was prepared in 1931, the only submission now being a proposed appropriation act. The Auditor does appear before the General Assembly and its several committees to respond to inquiries relating to the amounts contained in the appropriation act. Use is made of the files of the previous financial experiences of the various agencies which are maintained in the Auditor's office to support expenditure estimates.
Preparation of the Proposed Appropriation Act. It was obviously the intent of the Budget Act of 1931 that the budgeting process
would result in the submission of a proposed appropriation act for the adoption by the General Assembly every two years. This, of course, related to the biennial sessions then in effect. After 1933, appropriation acts were not adapted with any degree of regularity, the ex isting appropriation act remaining in effect for a period in excess of the two years for which it was initially intended. This practice was recognized in the 1945 Constitution, which provided that "each General Appropriation Act, with such amendments as are adopted from time to time, shall continue in force and effect for each fiscal year thereafter until repealed or another General Appropriation Act is adopted... " (Constitution, Art. VII, Sec. IX, Par. II). At the time of adoption of the Constitution, the

- 26 -
Appropriation Act of 1943 was in effect. This act remained in effect until 1949, when a new act was adopted. Subsequently, new appropriation acts have been adopted in 1951, 1953, and 1956.
The constitutional amendment adopted in 1952 which earmarked funds for highway purposes contains a provision which has had the effect of prolonging the life of appropriation acts (Consti tution, Art. VII, Sec. IX, Par. IV (b)). The General Assembly is required in each appropriation act to make the aggregate of the fixed appropriation for highway purposes an amount not less than the total motor fuel and motor vehicle license taxes received by the State Treasury for the immediately preceding fiscal year. In determining this amount, refunds, rebates, and collection costs are to b~ deducted. Because there have been sizeablE: incre2.ses in the amount of revenue realized from these two sources in the past several years, a new appropriation act adopted at this' time would require that a substantially greater sum be appropriated to the Highway Department.
The 1956 General Approprictions Act provides $67, H2, 014 for highway purposes. These appropriations are currently in effect. Tentative Budget Bureau allocations for the 1)5S'-60 fiscal year increase the general fund amounts available for highway purposes by $8,000,000, or to a total of $75, HZ, 014. Passa~1 of a General Appropriation Act by the 1959 session of the General Assembly would have required appropriation of about $89,000,000, based on 1957-58 motor fuel and motor vehicle license tax collections, for highway purposes.

- 27 -
The added revenues are presently being utilized to meet the increased cost of other activities financed out of the general fund. If the total revenues from motor fuel and motor vehicle license taxes were to be appropriated for highway purposes, new revenue measures would have to be enacted to meet the cost of continuing the other activities of State government at their present level of operations.
When a decision is made to submit a new appropriation bill to the General Assembly, the State Auditor, as Assistant Director of the Budget, is requested to draw up its provisions. The amounts inserted in the draft of the act are determined in the same manner as are annual budget estimates. They reflect an approximation of the needs of the various operating departments arrived lilt by the State Auditor, in his capacity as Assistant Director of the Budget, for the next fiscal year. The proposed act is then subml tted by th_ Auditor to the Governor and amended by him to reflect his thinking on various State programs.
In 1943, the Budget Act of 1931 was amended to estabUsh a Finance Commission, composed of the Governor, Lieutenant Governor, Speaker of the House, the Chairman of the Senate Appropriations Committee, and the Chairman of the House Appropriations Committee (Ga. Code Ann. 40-411). This Commission was established to provide an opportunity for operating departments to appeal the actions of the Budget Bureau (consisting of the Governor and the State Auditor) prior to submission of the proposed appropriation act to the General Assembly. The Commission is given the further responsibility of actively assisting the Governor

- 28 -
in the preparation of the budget and of hearing appeals in regard to quarterly allotments. The Commission has met but twice since its establishment -once as an appeal board on a quarterly allotment and on a second occasion, in June of 1959, to advise the Governor in regard to the purchase of certain property.
Adoption of the Appropriation Act. The General Assembly is authorized to amend the appropriation bill so
long as the amendment does not create a deficit (Ga. Code Ann. 40-404). This provision has not, however, prevented the legislature from adopting appropriation acts calling for the expenditure of funds in excess of revenues. For this reason, several provisions were contained in appropriation acts to prohioit this practice and the provision contained in the 1943 Appropriation Act continued in effect by the 1945 Constitution until specifically and separately repealed. The status of this provision at the present time is discussed later in this study.
After the appropriation act is adopted and approved by the Governor, the General Assembly may pass supplementary appropriations in the form of separate bills, but funds cannot be made available under such bills unless sufficient revenue is available to cover the appropriations or a special tax is levied for the purpose.

- 29 -
Administrative Discretion in Supplementing Legislative Appropriations.
F
The 1931 Budget Act provided for the establishment of a "contingent or emergency appropriation" within the regular appropriation act (G". Code Ann. 40-408). Allocation of the funds from this appropriation may be made at the discretion of the Director of the Budget. It was obviously the intent of this provision to care for those contingencies that might arise in the two-year intervals between adoption of appropration acts.
Continued use of the same appropriation act for a period considerably in excess of two years created the need for methods of dealing effectively with contingencies, with increased costs of operations and with the distribution of revenue in excess of the specific appropriations. Provisions were incorporated in the several appropriation acts to provide a means for budget officials to adju$t expenditures to rev"enues. In the early 1930's, these provisions also served to reduce appropriated expenditures in the event of reduced revenues. The method in use for meeting this problem of adjusting appropriations in 1943 which is described below, is of impurtance in that it was continued in effect by reference in the 1945 Constitution unless specifically and separately repe aledo
Section 60 of the 1943 Appropriation Act provides that the State Auditor shall monthly pro rate the income of the State to the credit of each appropriation account in the same proportion that each appropriation bears to the total appropriations in the regular apnropriation act (Acts of 1943, p. 95). If the amounts pro rated are in excess of the approved budget allotments established by

- 30 -
the Budget Bureau, the Auditor, as Assistant Director of the Budget, is required to credit the surplus to an "income equalization account". Similarly, if there are insufficient funds, the Budget Bureau is authorized to utilize the income equalization account to cover the deficiency.
The income equalization acco\lnt is established by Section 33 of the same act (Acts of 1943, p. 91). The budget authorities of the State are authorized to establish an appropriation to this account in the amount of the surplus. Funds from this account may then be appropriated llfor allotment for highway construction or for other purposes, in accordance with provisions of Section 8 of the budget act". The section of the budget act referred to is that previously cited governing the expenditures of funds from the contingency account (Ga. Code Ann 40-408).
In practice, the State Auditor (Assistant Director of the Budget) determines annually, rather than monthly, the amount of the surplus to be transferred to the income equalization account; and certifies this amount to the state Treasurer and Comptroller General, both of whom establish the amount as an appropriation in the income equalization account. Transfers are made from the account on executive order of the Governor to the various operating departments.
This procedure for adj\lstment of revenues and expenditures was to remain in effect under the provisions of the 1945 Constitution unless specifically and

- 31 -

separately repealed (Constitution Art. VII, Sec. IX, Par. II). In the 1949

Appropriation Act, the General Assembly did specifically and separately repeal

Section 33 of the 1943 Appropriation Act" in its entirety as contemplated in"

the Constitution (Acts of 1949, p. 1518). In lieu of this section, the General

Assembly created a new income equalization account from which disbursements were

to be made in the same manner as from the cot\tingency account established in

1931, but the total amount of such disbursements in anyone fiscal year was

limited to $750, 000 (Acts of 1949, p. 1519). When a new appropriation act was

adopted in 1951, replacing the 1949 act, the limitation on expenditures from the

surplus in the income equalization account was not included. Instead, the act

stated that all appropriations and expenditures shall be subject to " provisions

of Article VII, Section IX, Paragraph II, of the Constitution of Georgia, which

continues in force and effect sections 33, 55, 57, 58, 59, 60,. 62. and 63 of the

Appropriation Act, approved January 29, 1943

II (Acts of 1951, p. 437).

The intent of this proviswn was, no doubt, to reemploy the procedures established by Section 33 of the Appropriation Act of 1943. The intent of the General Assembly would have been established more clearly by reenacting the language of Section 33 in its entirety. The provision would then have applicability to the particular appropriation act, but would not have the constitutional status it once carried nor would it apply to future appropriation acts. Not having used this method, the legal basis for the existence of the income equalization account, which subsequent appropriation acts have continued to cite, is unclear.

- 3. 2 -
The remaining p.rocedures described in this report. however. are predicated on the assulXlption on the part of State officials that Section 33 cf the 1943 Act, which provides a method for the distribution of income equalization account surpluses. is operative.
In 1949 when the General Assembb limited transfers from the income equalization account surplus to $750. 000 the appropriation act appeared in two sections. The limitation was included in the first section of the act which es tablished the regular appropriations to the various departments. The second section provided for contingency appropriations. It appropriated $45,985,000 to a number of different departments and for a number of purposes for each fiscal year during which the act was in effect. The preface to this section provided that the funds be made available as appropriated only if the total amount of such appropriations could be met (Acts of 1949, p. 1520). In the absence of funds needtod to meet the total amount. the budget authorities were authorized and directed to make available " such part of the contingent appropriations as can be paid from the excess income of the State for any of the period for which appropriations are made in this Act".
In light of the $750. 000 limitation placed on the amount to be expended from the surplus in the income equalization account. it is apparent that this means was used by the General Assembly to provide for the use of funds realized in excess of both the total regular appropriations and the surplus of $750.000. The elimination of the $750.000 limitation in 1951 and the return to the employment of

- 33 -
the repealed Section 33, which provides no limitation, leaves the contingency appropriation contained in subsequent acts in somewhat of a suspended state. If it is presumed that the reenacted Section 33 has effect, it requires that all surplus funds be transferred to the income equalization account. Without a monetary limitation, the situation would never arise in which funds would be available to be appropriated in accordance with the contingency appropriation provisions.
Among the provisions contained in the contingency section of the 1956 act are requirements that funds be appropriated on a percentage basis (Acts of 1956, p. 1'81). This section is regarded by the Budget Bureau to be in
violation of the Constitution which requires that all appropriations be for
specific sums (Constitution, Art. VII, Sec. IX, Par. IV (a)).
Under the 1956 Appropri~tion Act, which is now in effect, specific legislative direction (Regular Appropriations) exists for the spending of only $284,964,433.60 in the current fiscal year (Acts of 1956, p. 780). Since the total budget for the State for the current fiscal year, exclusive of funds which are not routed through the Treasury, is $348,987,679.07, the determination as to the expenditure of the difference of $64,023,245.47 rests with the budgetary authorities by virtue of the constitutional and statutory provisions which have been described.

- 34 -
Crediting Agency Accounts with Available Funds. At the beginning of the fiscal year, it is necessary for the Auditor, as
Assistant Director of the Budget, to inform both the Treasurer and Comptroller Gener~l of the amounts of funds being made available to operating departments. This is necessary for accounting purposes in setting up the books of these two officials. Crediting the accounts with these amounts does not, in itself, make the cash available for expenditure.
The amounts which are certified to these fiscal officers by the Auditor are in agreement with the final budget approved by the Governor. Such a budget is prepared each year in the manner previously described. The budget, as certified, contains the administrative adjustments - even in the same year for which an appropriation act has beep adopted.
It is necessary for the budget authorities, in certifying the amounts of expenditures for tqe forthcoming fiscal year, to determine which of the several available means shall be used in maldng funds available to operating departmerts. A compilation showing tpe method by which funds were made available to operating departments for the current fiscal year is shown as Exhibit 6, LEGAL BASIS FOR THE 1959-60 GENERAL FUND BUDGET OF THE STATE OF GEORGIA.
The Governor's budget called for an increase in the current fiscal year of $64,237, 745.47 over the amounts made available by the appropriation act. It would appear that in accordance with the provisions described earlier,

EXHIBIT 6 LEGAL BASIS OR TH.'!: 1959-60 GENERAL FUND BUDGET FOR THE STATE OF GEORGIA

AGENCY AS LISTED IN 1959-60 BUDGET

1959-60 BUDGET Budget for 1959-60
Established by the Budget Bureau
(l)

CITED LEGAL AUTHORITY

REGULAR APPROPRIA TIQNS
Regular Appropriations in
the 1956 Appropriations Act
(2)

TRANSFERS
Transfers wi thin the 1956 Appropriations Act

DECREASES
Decreases from the 1956 Appropriations Act

(3)

(4)

Canst! tution Article 7 Section 9 Par. II
Acts of 1956 Act No. 454 Appropriations Act
Sections 1-45

Cansti tution Article 7 Section 9 Par. II
Acts of 1943 Act No. 8
Appropriations Act Section 57

Acts of 1956
Act No. 454 Appropriations Act
Section 47

INCREASES
Increases over the 1956 Appropriations Act
(5)

SOURCES FROM WHICH INCREASES ARE MET

Appropriations by Budget Authorities
under the
Contingency Section of the 1956
Appropriations Act (6)

Transfers from Income Equalization
Account by Executive Order
(7)

Acts of 1956
Act No. 454 Appropriations Act
Section 48

Acts of 1956
Act No. 454
Appropriations Act
- Section 46
-
Cansti tution Article 7
Section 9
- -Par. II -
Acts of 1943 Act No.8
Appropriations Act
- - Section 33
Acts of 1931 Extra Session
Budget Act Section 8

Agricul ture, Department of Regular Operations Market Expansion and Imnro. <:apital Outlay-Autn.rentu.
~;~o~~;~:~i~:' Comm. on
Audi ts, Department of Banking, Department of
I'U""C Capitol Square Improv. Comm. ~.lag. runa Commerce. Department of Comntroller General Confederate Pensions
Co~~::~~~o~;vi!=:inn
Forestry Research Council ~~nes an~. Ge~~~~y Division
Parks Division Parks Expa~;~~oa~o~~p~~
Department Prisons
llPnartment of Regular Operations Capi tal Outlay-Authority Rental
... !.:.ti""mv fnr Blind School for Deaf
Ed~~a :~~~ ReTirement Svstem
Education Uni verSi ty System RIPD'ular Capita.< uuuay-Au cnon y "enta.< Medical Board 1i,;~~no 'I'~ lmodve Mem. Hoso
Entomology, Department of
Ry~e~~~~~
Game and Fish Commission Highway Department HiJ:!"hwavs
Grant to L:ounties for Malntenance :seconaary
Ri ~~~~~c, 1 Comm Ga

$

$

2,8~g:ggg:gg

650,000.00 275.000.00
100.00
~uu.OOO.OO
180,000.00 150,000.00
'~80:o~~:30
550 000 00 264,000.00

~ M< non no
200,000.00 250,000.00
00 682,000.00 768,000.00

145.000.00 1,925.000.00

$ 2,200,000.00
50 000.00
~gg:ggg:gg
f~5:000:00
150,000.00
~g~:~~~:go
475 000.00
~"V,vvv.vv
1 900 000.00
i;g:ggg:gg
6 000.00 375,000.00
15V,UUU.uv 1,750,000.00

1~6,54~, 7~v.vv
14,500,000.00 320 290 00 545,980.00
9 225,000.00

122,100,000.00
r
" 6 750 000.00

20 430 000.00 y
~,"40,vvv.vv A
1 5gg,ggggg
435,000.00 170 000.00 1,295,000.uu 65,795,001.07

17 100000.00
7 ~~~,~~~.~~
185,000.00 '''4 500 00 850,000.00 57,795,001.07

9,317,013.03 90.000.00

9,317.013.03 100000.00

$

$

$

675,000.00

150.000.00 75.000.00 100.00
~O.vvv.vv
5,000.00

26.VUU.00

6~~:~~~:~~
75,000.00

175 000.00

6 000.00

199: 000: 00
~07, 000.00 768.000.00

O,VVV.VV

175,000.00

$ 675,000.00
150,000.00
75,~gg:gg
25,000.00 5.000.00
694,~3~.37
80,000.00 75 000.00
175 000 00 80,000.00
100,000.00
307,000.00 768,000.00
175.000.00

I 29,810,000.00
A ~ A7. non no

29,810,000.00 7<n non on

1,725,000.00

7 27' 000 00

7 275 000 00

10 000 00

250.~gg.gg
44D,UUU.UU 8.000,000.00

250,000.00 5 500.00
8.~~g:000:00

Continued on following page.

EXHIBIT 6 LEGAL BASIS FOR THE 1959-60 GENERAL FUND BUDGET FOR THE STATE OF GEORGIA
( Continued)

AGENCY

1959-60 BUDGET
Budget for 1959-60 Established by
the Budget Bureau

Juoiciu viVlslOn Supreme Court "oi,.t of Anneals Superior Court
~~~;~i~:n~~~~cil
Labor. Department of Employment Security Operations
r.~w. Denartment of Regular Operations
Legislative Department
'Librarv, State.
Military Department and Defense
Milk Commission, Georgia
ParQODS an~ "a, v~~o, . ~~' v v. Pharmacy, State Board of

v, ProDaClOn, ~'ate ~a,v
Pu~~~~i~~ildings and Grounds

Public Health Statewide Health Program
:rnBenefits D?SPI u
~~~;wrd~ :~:~r~~iaProlrram
General State Hospital - Auth. ren al Mi11e~geville St~te Hosp~tal Imnrov, Fund

Mental Health Prof(ram

Public Safety Department ~~h' .c Service Commission Pub1i.c wellare
State Department Adminis. r.cl1Intv n;"n::.rtment Adminis
Benefits
$~~f~1~~a~h~0~d~~~S~~:e

Training School for Boys (Col.)

Fac tory for Bl ind

Tr9ininv School for Girls

Training SchOOl lor COlor~a_"IriS

Training School for Mental Defectives

. 11.

lh~ State Hosnital

Annual Institution Improv.

Revenue, Department of

Rural Housiim' Administration

~ecre~ary 0'; ~~ a e ::~~:t~~t~fc~~1~t;eExamining Bds

Stone Mountain Memorial C9mm1 ttee Authori ty Rents
~unervisor of Purchases Treasury, uepar me~~ Veterans Service Office and Education Council ir~;:o~.n. Romo
Waterways Commission. . Workmen's Compensation, State Bd Water Law Revision Committee

TOTALS

(1)
325,000.00 265 000.00 O{O,uuu.vv
~~'g~g.~
150,000.00 85,000.00
~~~,~~~.~~
1,3i~' ggg. gg
500,000.00 185,OOC.00 'UU,UUU.UU
40,000.00 .00
~~~,~~~.~
2~~:ggg.gg
5,795,000.00 1,000,000.00
~'~5g:ggg:gg
2 500 000 00 840,Q~~.~~
10, ~gg'ggg.gg
500,000.00
4,315,000.00 308 500.00
~~~,~~~.~~
19,200,000.00
"1~,~~~~g
209,000.00 150,000.00 242,000.00
2,lgtggg:gg
650,000.00 5,288,000.00
.00
~~g:ggg:gg
.00
~~~:~gg:gg
225,000.00
~~,~~u.uu
m:ggggg
29~:ggg:gg .00
$ 348,987,679.07

REGULAR APPROPRIATIONS
Regular Appropriations in
the 1956 Appropriations Act
(2)

TRANSFERS
Transfers within the 1956 Appropriations Act
(3)

261,000.00 240 000.00 712,000.00
?~,ggg.gg
135,000.00 85,000.00
25U,UOU.~~
1,000,000.00 38 500.00
545,000.00 150,000.00
2~g:ggg:gg
250,000.OU
~~,ggg.gg
4,750,000.00 500,000.00
~'~5g;ggg:gg
1 000 000.00 84U,UUU.UU
3,100,000.00 300,000.00
1.~gg:ggggg
18,237,000.00

8,~gg:ggg:gg

11,000,000.00

(8,900,000.00)

1.000,OOO.~~
4,800,000.00 10,000.00
m:ggg:gg

(350,000.00)

140,000.00 74g:ggg:gg
21g;ggg:gg
20,000.00

$ 284,964,433.60

$

.00

DECREASES Decreases
from the 1956 Appropriations Act
(4)

INCREASES
Increases over the 1956 Appropriations Act
(5)

SOURCIlS FR(XoI WHICH INCRllASES ARE MET

Appropriations by Budget Authorities
under the Contingency Section
of the 1956
Appropriations Act (6)

Transfers from Income Equalization
Account by Executi ve Order
(7)

45,000.00 50 000.00

64,000.00 25 000.00 163,000.00
28 012 10 15,000.00
75,000.00 398,000.00
35 000.00 ,u,uuu.uu
180,000.00 62,000.00
1,045,000.00 500,000.00
~uu,uuu.uu
1 500 000.00 1,800,000.00
500.000.00 1,215,000.00
8 500 00
A:;~'~~~'~
963,000.00

200,000.00
~uu,uuu.uu
1 500 000 00
.0u,UUO.00

~~,~gg.gg
163,000.00
'0 ?" f\l?
15,000.00
75,000.00 398,000.00
35 000 00 sU,uuu.OO
180,000.00 62,000.00
~6~,ggg:gg
1,800,000.00 200,000.00
1,21~,~gg.g~
,,:;~,g~g.gg
963,000.00

1,352,000.00

1,352,000.00

10 000.00
42,500.00 20,000.00

488,000.00
l~~;ggg:gg
'78,100.00 350,000.00
85 000 00
112 000.00 86,200.00

$

214,500.00 $ 64,237,745.47

488,000.00 12U,OOO.00
85,000.00 378,100.00 350,000.00
.~ nnn nn
112 000.00 86,200.00

$ 40,235,000.00

$ 24,002,745.47

_ 35 _
the amount of the increases would be made available to operating departments through the provisions of the income equalization account and would be transferred by means of the provisions set forth in Section 8 of the Budget Act of 1931 (Ga. Code Ann. 40-408). In practice, however, only $24,002, 745. 47 was transferred by executive order from the income equalization account. The balance of $40,235,000 was made available by budgetary authorities under what is cited as the legal provisions establishing the contingency section of the 1956 appropriation act (Acts of 1956, p. 780). The specific amounts are within the limitations established for each department. It will be recalled that the contingency provisions stated that if the funds are not available to meet the total amount of the contingency appropriation, the budget authorities are directed to make available such part of the contingency appropriations as can be paid from excess income.
This practice is explained in this manner. Cash must be available to cover appropriations from the income equalization account. If the funds are made available to the department through the provisions of the contingency appropriation, however, they must be paid over to the department only if they are realized. Should the revenue not be forthcoming, the State is not bound to fulfill the appropriation. For this reason, the larger sums in excess of regular appropriations are made available under the provisions of the contingency appropriation rather than from the income equalization account.

- 36-
The procedures described above are summarized in Exhibit bA, THE BUDGFT MAKING PROCESS IN GEORGIA. The summary does not, of course, indicate modifications in the process which might be made under particular circumstances for a given fiscal year.
The several methods by which funds are to be made available to operating departments are certified to the State Treasurer and the Comptroller General. The Auditor certifies all appropriations, including those made under the provisions of the contingency appropriation section. Transfers from the income equalization account are certified by the Governor in the form of an executive order. During the course of the fiscal year, additional sums may be transferred from the income equalization account within the total amount available in this account in order to meet various emergencies. The funds made available to operating departments in this manner are augmented by (1) those revenue collections which the department retains for its own use and (2) receipts from Federal grants. Exhibit 7, MEANS BY WHICH FUNDS ARE MADE AVAILABLE TO THE STATE AGENCIES, shows the various methods by which the agencies receive funds.
B. MAKING APPROPRIATIONS AVAILABLE FOR EXPENDITURE
The Quarterly Allotment. Following notification by the Budget Bureau of the amount of its annual
appropriation from the general fund, each agency prepares a request for its

- 37-

THE BUDGET MAKING PROCESS IN GEORGIA

MAJOR STEPS IN THE BUDGET MAKING PROCESS

DEVELOPMENT OF THE 195960 BUDGET

I. BUDGET BUREAU DETERMINES TOTAL DOLLAR AMOUNT AVAILABLE FOR GENERAL FUND BUDGET FOR NEXT FISCAL YEAR. THIS AMOUNT EQUALS:
a. GENERAL FUND SURPLUS AT BEGINNING OF FISCAL YEAR BEING BUDGETED;
b. REVENUE ESTIMATES FOR THE YEAR (EQUALS REVENUE COLLECTIONS FOR PRECEDING YEAR).

Add the surplus as of July I. 1959 of $ 30
\IIlon ..
.. to t e e8tlmate revenue. lor .959.60 of $ lZ5 mUllan (the total of 1951-59 lene ...1 fund coUections ..

Z. BUDGET BUREAU THEN DECIDES HOW THIS TOTAL AMOUNT SHALL BE DISTRIBUTED TO MEET NEEDS OF VARIOUS AGENCIES. AS REPRESENTED r.y AGENCIES.

II----~~

J. BUDGET BUREAU THEN DETERMINES LEGAL BASIS ON WHICH TO MAKE BUDGETED FUNDS AVAILABLE TO AGENCIES.

a. ANTICIPATED REyENUES ARE FIRST ALLOCATED BY,

(I) MAKING AVAILABLE AMOUNTS APPROPRIATED
TO INDIVIDUAL AGENCIES BY REGULAR SECTION OF LAST GENERAL APPROPRIATION ACT.
(Z) ALLOCATING CONTINGENCY APPROPRIATIONS AMONG VARIOUS AGENCIES. THESE ARE AMOUNTS REQUIRED IN EXCESS OF REGULAR APPROPRIATIONS AND ARE DETERMINED AT DISCRETION OF BUDGET BUREAU WITHIN AMOUNTS ESTABLISHED BY THE CONTINGENCY ~OF THE LAST GENERAL APPROPRIATION ACT.

.. $ Z8S million ba.ed on the regUlar leetion of the 1956 Gene .... ApproprlaUon
Actj

b. GENERAL. FUND SURPLUS IS THEN ALLOCATED TO

VARIOUS AGENCIES AT DISCRETION OF BUDGET

DUREAU BY EXECUTIVE ORDER. BUL.K OF SURPLUS

IS ALLOCATED AT BEGINNING OF FISCAL YEAR.

REMAINDER IS TRANSFERRED BY EXECUTIVE ORDERS

DURING COURSE OF THE YEAR. BRINGING.IQ!A.!..
ALLOCATIONS UP TO THE TOTAL AMOUNT AVAILABLE FOR GENERAL FUND BUDGET.


I

. . and allocaUon of $ Z4 million of the lurplul .. of Jul I. 1959 ...
.. maklnll lo~a1 allocation:'! for 195960 of $ 349 million leaving $ 6 minion to be allocated during the cour.e of the year.

Any revenues collected in

exce of S 3ZS mUllon

durlnl the 195960 !I.cal

II I--------i 4. IF REVENUES COLLECTED DURING THE YEAR EXCEED THOSE OF THE PAST YEAR. EXCESS IS ACCUMULATED AS SURPLUS TO

year will become the July I, 1960 lurplus and will be added to 1959-60

BE AL.LOCATED BY BUDGET BUREAU THE FOLLOWING YEAR

revenue Uaun:1 to

determine lola. amount

available for 1960-61

bud.ot.

Exhibit 7 MEANS BY WHICH FUNDS ARE MADE AVAILABLE TO THE STATE AGENCIES
580/. Direct Appropriation by the General Assembly

13% Administrative Action of the Budget Bureau

a.................................................................................................................................................................................................................................................................................

7% Retention of Receipts by the Agencies

22%

Administrative A ction of the Federal Agencies Making Grants to the State

Based on the 1959-60 general fund budget and estimates or agency receipts and federal grants for the 1959-60 fis cal year.

- 38 -
allotment for the coming quarter. As provided by law, "Before an appropriation to any spending agency shall become available, such agency shall submit to the Governor, not less than 20 days before the beginning of each quarter of the calendar year, a requisition for an allotment of the amount estimated to be required to carryon the work of the agency during the ensuing quarter ... " (Ga. Code Ann. 40-407). The procedure followed by the agencies involves the submission of a Requisition for Ouarterly Allotment, (Ga. Form BB -1). As a matter of practice these forms may be submitted to the Budget Bureau as late as the first week after the beginning of the quarter.
The Requisition for Quarterly Allotment, is in effect, a quarterly budget for the agency, in that the Requisition and the supporting documents cover all anticipated expenditures regardless of the manner in which the funds are made available. Each source of financing--whether it be from appropriations, by transfer from the income equalization account, from the department's retained receipts, or from Federal grants--is subject to review by the Budget Bureau.
The form on which the requisition is presented provides for the listing of this information in summary form. First the proposed expenditures for the quarter are listed, broken down into three categories: ordinary maintenance, extraordinary maintenance, and outlay expenditures. The Bureau's instructions define ordinary maintenance as "the actual rock bottom cost of your agency, eliminating the frills and the experimental matters that you, as an administrator,

- 39 -
know do not contribute their worth to the efficient operations of your agency",
(Budg,etary and Accounting Instructions for State Departments and Institutions,
1950). Extraordinary maintenance is defined as "those items of e~pense of ypur agency which are highly desirable but could be eliminated without affecting the actual rock bottom operations of the agency". Few of the Requisition(s) contain items in this classification. Finally, outlay expenditures are defined to include expenditures for construction, the purchase of land, and equipment. The totals for these major classifications are subsequently broken down by major object of expenditure on a Detail Sheet, (Ga. Form BB-Z) and must be supported by any additional information requested by the Budget Bureau, Detail Sheet(s). (Ga. Forms BB-IA and BB-ZA). To the sum of these proposed expenditures for the quarter is added the accounts payable at the end of the previous quarter in order to arrive at the total amount which the agency plans to spend, and from this amount is subtracted the agency's cash on hand and any funds (such as Federal grants, fees, rents. sales) which the agency expects to receive from sources other than the State during the quarter. This flnal figure is the "Allotment Requested from Funds in the Treasury. "
The remaining information contained in the series of forms for Requisition for Quarterly Allotment pertains to expenditures for previous quarters. One Detail Sheet, (Ga. Form BB-Z), for example, calls for a breakdown by major object for the quarter last year which relates to the quarter just ended. The

- 40 -
breakdown of the expenditure for the quarter Just ended is obtained by adjusting
total payments to show the expenditures which are actually applicable to the
quarter, Detail Sheet, (Ga. Form BB-3). Finally, Detail Sheet, (Ga. Form
BB-4), compares these expenditures with the amounts approved in the budget
for the quarter, using the same object breakdown.
The object of expenditu re class ifications us ed in preparation of the forms
described above are:
Personal Services Travel Expense Supplies and Materials Communication Services Heat, Light, Power, and Water Services Printing and Publicity Repairs and Alterations by Contract Rents Insurance and Bonding Interest Pens ions and Benefits Grants to Counties or Cities Equipment Purchas es Lands, Buildings, Highways by Contract Debt Payments Transfers to Other State Agencies for
Services Rendered Miscellaneous
In addition to this series of forms, a Statement of Cash Position as of the
end of the previous quarter is required. This form calls for a lis hng of the
agency's cash assets and offsetting liabilities, thereby indicating the agency's
"current surplus" or uncommitted cash at the beginning of the quarter.

- 41 -
The Requisition for Quarterly Allotment and supporting Detail Sheet(s), and the Statement of Cash Position constitute the complete set of forms which must be submitted to the Budget Bureau at the beginning of each quarter. The Budget Bureau reviews the requisition, requests any further information which it may desire, and may make such changes as it deems necessary. Final approval rests with the Governor, as Director of the Budget. Should the Budget Bureau make any changes in the proposed expenditures which do not meet with agency wishes, the agency head may appeal to the Finance Commission. Such action has taken place only once since the Commission was established in 1943.
The Requisition for Ouarterly Allotment, once approved, commits agency spending to the limits set forth in the requisition. The agency's records must classify the allotment by objects of expenditure, and the agency must confine its spending within these limits. Should it appear in the course of the quarter that a reapportionment of the approved allotment among the object breakdowns is necessary, such reapportionment must be approved by the Budget Bureau in the same manner as approval of regular quarterly allotments (Ga. Code Ann. 40-407). This procedure also extends to cases in which an overall increase in the quarterly allotment is involved.
Monthly Budget Allotments. Approval of the requisition for quarterly allotment is a prerequisite to the

- 42 -
allocation of Treasury funds to the agency. Moreover, as indicated above, the approved quarterly requisition sets a binding limit ort agency spending. After the approval of a quarterly requisition by the Budget Bureau, the agency is notified and is thereby authorized to submit monthly requests for payment against its quarterly allotment.
At the beginning of each month the agencies are required to submit to the Budget Bureau their requests for monthly payments on their approved allotments, Request for Payment on Budget Allotment, (Ga. Form BB-5). Ordinarily, this request involves an amount equal to one-third of their quarterly allotment. This form calls for a summ2 ry accounting of cash. The agency's cash at the beginning of the year p Ius all receipts during the year to date (both from State appropriations and any other receipts as well) are listed. From this total are deducted all expenditures during the year to date, the difference being the agency's cash on hand as of the first of the month. A Detail Sheet (Ga. Form BB-b), used in conjunction with the Request, calls for an enumeration by object of expenditure of all payments during the previous month, all payments for the quarter to date, obligations payable at the close of the previous month, the total allotment approved for the quarter, including accounts payable at the beginning of the quarter, and the balance of the allotment unexpended for the quarter.
The amount of the requisition, entered on the Request for Fa yment on Budget Allotment is not specifically supported by any figures ccmtained on these two

- 43 -
forms. The information submitted by the agencies in support of their requests serve two purposes: first, it supplements the expenditure figures contained on the quarterly requisition forms, thereby providing the Bureau with more current information as to agency spending patterns; and second, it provides the basi~ for a line-item type of control by object of expenditure.
After the monthly Request(s) for Payment on Budget Allotment are prepared they are forwarded to the Budget Bureau (State Auditor) where the amount requisitioned is checked against the amount of the agency appropriation before approval is granted. A warrant is drawn on the State Treasury by the Auditor for the amount of money approved. The warrant is then forwarded to the Comptroller General who also checks to see that the agency appropriation is sufficient to cover the amount. If such is the case, the Comptroller General countersigns the warrant, retains a copy, and transmits the original warrant to the State Treasurer for payment. The State Treasurer performs a similar investigation and then draws a check payable to the department head for the amount of the warrant. This check, when received by the department, is deposited in its bank account.
Exceptions to Allotment Procedure.
Appropriations available to the General Assembly and the Courts are not subject to the quarterly allotment system administered by the Budget Bureau.

- 44 -
Appropriations certified by the Budget Bureau for the legislative and judicial accounts are set up on the books of the Comptroller General and the State Treasurer at the beginning of the fiscal year. Warrants are drawn against the accounts for individual expenditures as incurred. The warrants are signed by the State Auditor, countersigned by the Comptroller General and forwarded to the state Treasurer. The Treasurer honors these warrants by issuing checks to payees cited in the warrant and supporting vouchers.
C. CAPITAL IMPROVEMENTS BUDGETING Majo r improvements in the State government's physical facilities require sizeable expenditures which often cannot be absorbed in their entirety in the operating budget of anyone fiscal year. The borrowing of funds with which to make such improvements is the most common method of meeting this need, Because of the Constitutional limitation on borrowing in Georgia, extensive use has been made of the authority device, whereby a public corporation, independffit of the State government, is created and authorized to borrow funds wi thin certain limits in order to accomplish its lim ited purposes.
Appropriations for Capital Improvements" Not all of the financing of capital improvements, however, is by means
of the authority device. Some expenditures for capital improvements are reflected in the appropriation act, although they may not be readily identifiable. These expenditures are of several typcs.

~ 45 -
The 1931 Budget Act requires that amounts contained in the appropriation act ::or capital improvements and/or fixed charges be indicated separately from those :or maintenance and operations of State agencies. Among such appropriations in ';he 1956 act were those to both the Departments of Public Health and Public Welfare !:or improvements in institutions. Another appropriation was made to the 1~egislative branch for repair and refurnishing its accommodations in the State CapitoL By virtue of the current practice of continuing the appropriation act in effect, the amount of these appropriations is made available each year. Substantial capital improvements have been accomplished by operating departments by accumulating funds in this manner. In some instances, the purposes of the appropriation are stated in somewhat ambiguous terms so that maximum discretion is allowed the operating department in deciding upon the nature of the capital improvement. In other instances, however, the purpose of the appropriation is ~;tated in detail and would appear to rule out expenditures in subsequent years after lbe improvement has been accomplished.
It is not uncommon for operating departments to pay for a fixed charge or capital improvement from their operating accounts. Appropriations to a departrnent remain approximately the same each year, or increase, so long as an appropriation act remains in effect. This may be so despite the fact that operating expenditures for the year are less than the amount appropriated. The existing budgeting procedure is designed to identify such a situation, but in practice the

~ 46 -
full appropriation is usually made available to the operating departments. Once funds have been transferred to operating departments. they may be expended at the discretion of the department, within the object of expenditure estimates approved by the Budget Bureau.
The appropriation act also reflects another aspect of the State's financing of capital improvements. A number of appropriations are made for capital outlay and are des ignated as rents to be paid by the agencies to various authorities. For example, $500.000 is appropriated for the annual cost of acquiring farmers' market land. buildings and equipment from the State Farmers' Market Authority. Taken together. these payments reflect the extent to which the ,state is in effect financing out of general fund revenues the capital improvement programs of the various authorities.
Author~Financing.
Th~re are ten major authorities which have been created by the legislature and which are currently active. A list of those authorities and pertinent informcltion about each is presented in Exhibit 8. MAJOR STATE AUTHORITIES. Thp. authorities can be characterized as being of three types: (1) public corporations established exclusively for purposes of creating a borrowing capacity and for which practically all payments are made in the form of contractual arrangements with agencies which receive their operating costs from the general fund; (2) public corporations established primarily for purposes

Exhibit 8

AUTHORITY
BRIDGE BUILDING AUTHORITY
FARMERS MARKET AUTHORITY

I STATUTORY
AUTHORIZATION
I Ga. Code 95-23
Acts of 1953, p. 626; amended 1959, p. 12.
I Ga. Code 65-3 Acts of 1955; p. 224; amended 1957. p.3.

I AUTHORITY MEMBERSHIP

I AGENCY WITH WHICH AUTHORITY CONTRACTS

MAJOR STATE AUTHORITIES

IPURPOSE FOR WHICH CREATED

LIMITATIONS ON
BOND ISSUES

LIMIT ATIONS ON STATE AGENCY
CONTRACTING WITH
AUTHORITY

TOTAL BONDED INDEBTEDNESS
AS OF 6/30/58

I I 'B0Y 'S"TAT"E'AMG'EN~C'Y IN'C'O'M"E0O'T"H'ER

TO AUTHORITY

THAN STATE

FISCAL 1957-58

AGENCY

PAYMENTS

FISCAL 1957-58

I NUMBER OF EMPLOYEES 6/30/58

IState Highway Board

State Highway Board

C&nstruct br"idges and approaches thereto on the public highways of the State.

Principal outstanding
at anyone time may not exceed $30,000.000, term of bonds limited

,.,." I I,-. _.rn_"I'"''' .,.-.., to 20 years.

0.". Lt. Governor

Agricmulture

~ farmers' markets.

at anyone tlme may not

Auditor

exceed $12, ODD, 000;

Attorney

I

General

term of bonds limited to 25 years.

Comm. of

Agriculture

$2,500,000 limit on lease per annum.

I $ 21,931,000

Rentals in anyone year limited to $1,200,000.

I $ 9,775,000

I $ 2,425,965

I$

95,581

I

$ 650,000

I $ 297,987

HOSPITAL AUTHORITY
JEKYLL ISLAND STATE PARK AUTHORITY
PORTS AUTHORITY
RURAL ROADS AUTHORITY

I Ga. Code 99-14 Acts of 1939 p. 144; amended 1941. 1945 and 1953.
I Ga. Code 43-6A Acts of 1950; amended 1957 p. 608.
I Ga. Code 98_2 Acts of 1945, p. 464; amended 1949, p. 778; and 1955, p. 120.
I Ga. Code 95-26 Acts of 1955, p. 124; amended 1959, p. 13.

I Governor Auditor Attorney General

Any State Agency
(Department of Health)

I Secretary of State
Attorney
General

I Jekyll Island Committee

Chairman:

Public

Service

Commission

Auditor

r~-" . . 1 Director: Dept. of State Parks

of Governor for 4-year terms;

Ports Authority Committee

one from lst

Cong. Dist; one

from 8th Congo

Dist; and 3 at

large.
I State Highway Board

State Highway Board

Construct, acquire,

Principal outstanding at

and operate hospitals, at anyone time may not

sanatoria, and other

exceed $20,000,000;

accommodations for

interest rate limit of

patients and employees 4.25%; term of bonds

of any institutions

limited to 30 years.

Wlder the control

of a State agency.
I I Improve, administer

---

I --

and operate Jekyll

Island and facilities

located on it.

I.

1...._.. I M....~.

mainmt.a.in..an' -d 'o'p'e-ra't'e

at anyone time may not

seaport terminal

exceed $20,000,000;

facilities.

interest rate limit of

5'ro.

--

Construct additional roads and for improvment and extension of rural roads not in present highway system.

Principal outstanding

I $8,500,000

at anyone time may not

limit on

exceed $100,000,000

lease per

(Governor's approval

annum.

beyond $30,000,000);

term of bonds limited to

25 years.

I

$ 7,727,000
I ---
I $ 5,200,000 I $ 78,960,000 I

$

849,525

I $ 862,941

I -I $ 6,575,834 I

$ 68,243

I $ 97,152

I

62

I $ 2,279,198

I

219

I $1,442,206

I

I

Continued on following page.

AUTHORITY
SCHOOL BUILDING AUTHORITY
STATE OFFICE BUILDING
AUTHORITY
TOLL BRIDGE BUILDING AUTHORITY
UNIVERSITY SYSTEM BUILDING AUTHORITY

Exhibit 8
MAJOR STATE AUTHORITIES (Continued)

STATUTORY AUTHORIZATION

AUTHORITY MEMBERSHIP

AGENCY WITH WHICH AUTHORITY
CONTRACTS

PURPOSE FOR WHICICREATED

LIMITATIONS ON
BOND ISSUES

LIMITATIONS ON STATE AGENCY
CONTRACTING WITH
AUTHORITY

TOTAL BONDED INDEBTEDNESS
AS OF 6/30/58

TOTAL PAYMENTS BY STATE AGENCY
TO AUTHORITY FISCAL 1957-58

AUTHORITY INCOME OTHER THAN STATE
AGENCY PAYMENTS FISCAL 1957-58

NUMBER OF
EMPLOYEES 6/30/5/L__

Ga. Code 32-l4A Acts of 1951, p. 241; amended 1959 p. 28 and p. 363.

Governor Attorney
General Auditor Chairman:
Bd. of Regents Chairman: Bd. of
Education State Supt.
of Schools
Chancellor Univ. System

County and City Boards of Education, All political subdivisions of the state and state agencies.

Construct school buildings and related facilities.

No limit on amount of bonds which are issued. interest rate limit of 4.50/0, term of bonds limited to 30 years.

$ 122,845,000

$ 14,461,695

22

Ga. Code 9l-5A Acts of 1951 p. 699; amended 1953, p. 355 and 1955, p. 585.

Governor Lt. Governor Auditor Chief Justice Attorney
General

Occupying Agencies
and Capital Sq. Improvements
Committee

Construct and operate buildings and facilities for use by agencies of State government adjacent to State Capitol and
for Dept. of Public Safety elsewhere.

Principal outstanding at anyone time may not exceed $14,000,000.

$ 10,356,000

$ 7,101,859

391,416

156

Ga. Code 95-24 Act of 1953, p. 302

Three Members Appointed by the Governor for terms of 6 years

Construct and manage toll bridges and approaches.

Term of bonds limited to 40 years.

Ga. Code 32-1A Acts of 1949, p. 1009; amended 1959, p. 31 and 362.

Governor Attorney General Auditor Chairman:
Bd. of Regents Chairman:
Bd. of Education
State Supt. of Schools
Chancel1o~: Univ. System

Board of Regents of U. of Ga., all political subdivisions of State and State agencies

Construct facilitie s for units of the University of Ga.

Principal outstanding at anyone time may not exceed $40,000, ODD; interest rate limit of 4.5%; term of bonds limited to 30 years.

$ 5,682,000

$ 575,429

29

$ 31,190,000

$1,991,087

$ 346,073

~ 47 -
of creating borrowing capacity, but which construct facilitiiBs which are revenue producing in sufficient amount to cover a portion of the initial cost; and (3) public corporations having borrowing authority, but created primarily for the purpose of engaging in a program or in the provision of services which require legal administrative ~tructure somewhat different from that of the more traditional state agencies.
Five of Georgia's major authorities fall into the first category: the Bridge Building Authority, the Farmers' Market Authority, the Hospital Authority, the Rural Roads Authority, and the state Office Building Authority. Three authorities are classed in the second category: the School Building Authority, the Toll Bridge Building Authority, and the University System Building Authority. In the final category are the Jekyll Island State Park Authority and the Ports Authority.
The purposes for which these ten authorities were created are stated in sufficiently broad terms to make possible the financing of most of the State's capital improvement needs. The only major capital improvements for which the authority device is not used is for the construction and improvement of the State's penal institutions.
In an but two of the authorities, membership consists of individuals holding State offices. The Governor is presently serving on five of the authorities and

- 48 -
the State Auditor on six, The 1959 General Assembly enacted legislation which streamlined authority membership by designating the State Highway Board as constituting the membership of both the Bridge Building and Rural Roads Authorities and by establishing identical memoership for both the School and University System Building Authorities,
Most of the authorities enter into formal contracts with operating departments whereby the departments agree to rent or lease the facilities constructed for them. In such cases, general fund money is appropriated to operating departments to pay for rentals and leases to authorities. Because of their nature, both the Jekyll Island ,c::tate Park Authority and the Ports Authority are exceptions to this practice. Neither of these authorities establish facilities for rental to a State agency. The statutes establishing these two authorities provide that funds may be made available to them from the general fund, Since rentals are not charged, there is no basis for making a payment for services rendered. It is for this reason that intermediary committees have been established to receive the funds which have been appropriated. Both the Jekyll Island Committee and the Ports Committee have memberships identical to the corresponding authorities. Appropriated funds are made available to the two committees which then turn them over to the respective authorities,
Indebtedness of the ten major authorities listed in Exhibit 8 on June 30, 1958,

- 49 -
totaled $293,000,000. Total payments to the authorities-in the form of rents
and lease6- by state agencies and in the fonnof tranfierredappropriations
totaled $20, 557, 211 in the 19-57 ~58 fiscal year. Income from other sources
totaled $20, 054, 981 in the same period.
There are a number of other State authorities- or semi-indep-endent
agencies involved in the financial admi:nis-tration of State affairs, but which
do not playas major a role as those enumerated in Exhibit 8.
Capitol Square Improvem-en-te-Cem,mittee.
The Capitol Square Improvements Committee had it~ origin in an executive order of June 20, 1938. Without referring to the committee by its present title. the Governor appointed the individuals then serving as hea-dsof the Departments of Education, Healtl\ and Welfare to plan and provide for the erection and maintenance of office facilities for their respective departments. They were authorized to n&ecure means of carrying out said p-roject". The committee was enlarged to include eight members in May of 1949 and wail reconstituted in 1955 and 1959. Its present membership, by executive order of March 18. 1959, consists of the incumbent agency heads of the Departments of Labor. Revenue, Public Health, Public Welfare. Education, the Auditor and the Attorney~ General.
In its first years, the Committee plannedands-upervis-ed the con~ struction of the New State Office Building. It maintained and operated this facility for a number of y-ears thereafter. In the 195-8- 59 fiscal year, the building was deeded to the State Office Building AuthQrity to make possible the use of Authority funds with which to install air conditioning.
Although the function of maintaining and operating the building has been transferred. the Capitol Square ImprOementfJ Committee continues as the contracting agency with the State Office Building Authority. In this manner, appropriations to the Committee for office -space which are made from the general fund are paid over to the Authority in the form of rentals for purpoSES of liquidating the State Office Building Authority's bond issues.

- 50 -
The 1956 Appropriation Act provides for an annual appropriation to the Capitol Square Improvements Committee of $150,000 for the cost of operating the Old State Office Building and of $983,419.50 for the annual cost of acquiring the Judicial Building, the Agricultural Building and the New State Office Building from the State Office Building Authority. The latter amount has been augmented in the 195960 fiscal year by the transfer by executive order of $694, 333. 37 from the income equalization account. The Committee also realizes some revenues which it retains frorn parking facilities and rental of other miscellaneous properties.
The bulk of the Committee's funds is expended in the form of rental payments on behalf of various State agencies to the State Office Building Authority for space in buirdings which the Authority has constructed.
Of the amount which has been made available for operating expenses, a substantial portion is spent to cover the cost of the contract for the cleaning of the Old State Office Building.
Stone Mountain Memorial Association.
The Stone Mounta.i.n Memorial Association with status similar to that of an authority, was established by act of the General Assembly in 1958 for purposes of acquiring, improving and operating Stone Mountain and adjacent property as a Confederate Memorial. The Association is composed of the Secretary of State, the Attorney General, the Chairman of the Public Service Commission, the Commissioner of Agriculture and three members appointed by the Governor. Its borrowing capacity is limited to $4,000,000 of which $1,500,000 may be utilized to meet the maximum price which the Association is authorized to expend for the acquisition of the Mountain and surrounding area.
The Association has not yet exercised its borrowing authority. Activity of the Association to date has been financed from State funds, made available through an intermediary committee, in 1957-58 ($100,000), in 1958-59 ($1,576,689) and funds are tentatively allocated in the 1959-60 budget for operations ($378,100) and for authority rent ($350,000).
Brunswick Port Authority.
Created for purposes of developing and operating port facilities in Glynn Comty, the Brunswick Port Authority was established in 1945. Its powers were substantially increased by the General Assembly in 1958. The Authority

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consists of two members appointed by the governing authority of the City of Brunswick, two by the governing authority of the County of Glynn and the fifth member who is chosen by the four appointed members. The Authority is authorized to issue revenue bonds, the interest rate not to exceed six per cent and the term of the bonds not to exceed forty years. Authority revenue is realized from the rentals, fees and other charges for the use of its services and facilities.
Agricultural Commodities Authority.
In its 1951 session, the General Assembly created the Agricultural Commodities Authority for purposes of publicizing and promoting the sale of agricultural crops produced in the State. The Authority is to consist of five producers of agricultural products appointed by the Governor. The determination of the nature of the promotional program is to be made by referendum of the producers of the particular commodity to be publicized and the costs of operating the program are to be levied in the form of an assessment on thos e producers of the commodity promoted. The method provided by statute for financing the operations of the Authority was held to be unconstitutional by the Georgia Supreme Court in 1959, (Agricultural Commodities Authority V. Balkcom, 215 Ga. 107. ). It continues in existence, although the State Auditor repo'rts that it has not func tioned.
Georgia Agricultural Development Authority.
The Georgia Agricultural Development Authority is the name given in 1957 to the merger of the Georgia Rehabilitation Corporation and the Livestock Development Authority which was effected in 1954. The general purposes of the Authority are to promote agriculture in the State and to administer a program of loans for rural rehabilitation made possible under the provisions of a Federal Act. Membership on the Authority consists of the Commissioner of Agriculture, the President of the Georgia Bankers' Association, the Director of the Agricultural Extension Service at the University of Georgia and four members appointed by the Governor. Operating costs are met by the levying of service charges on some of the loans processed by the Authority.
Regents of the University System.
In 1946, the Board of Regents of the University System,. in its capacity as a public corporation, authorized a $4,000,000 bond issue for the construction of dormitory apartments at Georgia Tech. The Attorney General, in opinions dated October 18 and 24, 1946, ruled that the borrowing did not create a debt

- 52 -
obligation against the State, but only a lien on the net income of the specific properties. Expenditures from these funds were not under State budget control, State laws relating to purchasing, nor restrictions imposed on the expenditure of public funds. Establishment of the University System Building Authority accounts for the fact that no further funds have been procured directly by the Regents in this manner. Payment on the bonds has been made more rapidly than was initially intended. Outstanding debt now totals $1,560,000 in 2% and 2 1/4% coupon bonds, the last maturity date being May, 1978.
GeorgiaCoas tal Scenic Highway Authority.
Established In 1947, the GeorgiaCoatalScenic Highway Authority is empowered to promote, construct and mamtain a toll highway in the counties within the Coastal Highway Distnct. In addition to the highway, the Authority is empowered to foster the use of the coast of Georgia for travel, recreation and commerce. As a public corporation, it is given status on a regional basis similar to that of the major State Authorities. The Authority consists of nine members - .. three each being appointed by the Commissioners of Roads and Revenues of the counties of Camden, Glynn and McIntosh (the Coastal Highway District). There is no limit on its borrowing capacity, but interest rates on the revenue bonds which it is authorized to issue are limited to six per cent per annum. Ac; far as can be determined, the Authority has not functioned since its e s ta b1i s hm e n t.

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IV. EXPENDITUR.E CONTROLS A number of devices and mechanisms within the fiscal structure of the State are designed to control the expenditure of funds after they have been made available to operating departments The major form of control is in the accounting and budgeting systems maintained within various state agencies. The State's central personnel and purchasing procedures are used to effect controls over the assumption and payment of State obligations incurred for personnel, materials, supplies and equipment. Finally, the post audit"~-or the anticipation of the post audit -provides a type of expenditure controL
A" AGENCY CONTROLS The primary means of agency control over expenditures and obligations is prescribed by the Budget Bureau in the Budgetary and Accounting Instructions. In addition to thos e procedu res which are ou tlined in the instructions, anum ber of agencies have established additional budgetary and accounting procedures to meet the particular needs of the agency" These more elaborate accounting procedures have been reviewed by the State Auditor and have his approval. Each agency is required to establish a ledger (budget register) in which the approved allotments to the department are to be entered for each object by
'------

~ 54 .,
class. The individual designated as budget officer in each agency is required to post all proposed obligations to the proper ledger account prior to obligation of fundso Within this general framework, considerable latitude exists for accommo ~ dating a variety of practices on the part of the operating departments 0 The sys tem s range from thos e which provide for the pas ting of encumbrances to the formal accounts of the agency to those which merely accumulate outstanding requisitions in orderly "suspense" or "pending" files. Validation of the requisition by the agency budget officer certifies to the Purchasing Department that a specific sum has been set aSide for paymenL
In those departments making use of the more elaborate systems of budget controls, the initial expenditure estimates for the fiscal year are prepared not only on the basis of object of expenditure, as is required" but are further classified by activity, function, organizational units and other breakdowns which the agency may deem desirable. The maintenance of budgetary controls, under such procedure, parallels the budget classifications. Obligations and expenditures are controlled according to the classifications utilized in arriving at the budget estimate. Employment of this method of control provides a further means of assuring adherence to the initial plan of expenditure.
In addition to the budget register, the Budget Bureau and the State Auditor require that all agencies maintain cash book controls. The type of record which

~ 55 ~
is to be maintained depends upon the nature and type of agency receipts and disburse-ments.
Taken together, the budget register and the cash book controls provide the information necessary for operating departments in the compilation of quarterly allotment requests and in the compilation of the monthly requests for transfer of funds from the State Treasury.
In the Departments, the budget regis tel' and the cash books are augmented by a voucher file of supporting doc\,1ments, including purchase orders, acknowledgment of a receipt of goods and vouchers. These files are so much a part of the procedure that they have come to be referred to as the "Auditor's files."
All employees of operating agencies acting in a fiduciary capacity are bonded in amounts established either by statute or by the agency head. Bonds are examined annually and reported in the post audit of the State Auditor.
B. PERSONNEL CONTROLS As i~ true in most jurisdictions, a major portion of the total operating budget of the State is expended for the salaries of i.ts employees. The central personnel 3gency exercises some degree of contrOl over these expenditures either in establishing positions, or determining compensation, or both. To the extent that any of these controls are exercised, the function of the personnel agency relates closely to other phases of the financial administration of the State.

- 56 -
Many of the functions common to a centralized personnel agency are performed oy the State Personnel Board, but this Board does not have jurisdiction over all State employees. The activities of the agency relate only to tho~e employees who .1 re appointed and serve under the Merit Sys tern. About 4.000 of the total of itpproximate1y 17,000 State employees, exclusive of the University System, are exempt from Merit System coverage. The basis for exemption is not consistent [rom depar~ment to department, some departments having all of their positions :tnder the Merit System while others have but one or two positions covered. J~xempted positions may include the top echelon of the department, but in other instances may include the lowest paid classifications. Some of the jobs exempted involve but one employee. while some departments have a large number of employees classed in exempted positions.
The actual preparation of payrolls and payroll checks for all employees is function of operating departments. The rules and regulations of the Merit System, which have the force and effect of law (Ga. Code Ann. 40-2207), provide that a copy of the payroll. of each agency covering its employees under ,the Merit System be submitted to the Director of the Merit System by the nrerating department within thirty \Calendar days follOWing each payroll period. rhe Director is requi red to review the payroll for conformity' with the provis ions d the Merit Sys tern and certify it wi thin fifteen calendar days to the operating departments.

- 57 -
An analysis of an the payrolls submitted to the Merit System CiHce for the last half of the month of April was made. The payrolls used by the various departments are not uniform in their appearance or in the manner in which they are compiled. Of the payrolls submitted for this period. aU but three were received within the established period. Two were- received in June and one was received the second week in July. The analysis revealed that for this period of time, the staff of the Merit System took exception to the submitted payrolls in the following instances:
(1) 46 cases in which a name appeared on the payroll and for which no report of appointment had been received by the State Personnel Board.
(2) 27 cases in which the payroll indicated an employee on leave of absence or resigned. but such information had not been filed with the personnel office.
(3) 47 instances in which a person was paid at a higher rate than had been approved by the State Personnel Board.
(4) 16 instances in which the pay was lower than that approved by the State Personnel Board or the pay was for fewer days than the records of the personnel office indicated the person had worked.
(5) 23 cases in which a person whose emergency appointment had expired was still being carried on the payroll.

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The analysis indicated that ther~ were many departments which were conforming to all personnel regulations in their entirety. The violations occur rather consistently in seven of the operating departments. Present procedure is for the Merit System Director to inform operating officials that he has approved the payroll with the exceptions noted.
C. PURCHASING CONTRCLS The basic framework exists in Georgia for the control of all expenditures for supplies, materials and equipment to be purchased by the State Government. Purchasing control may have three objectives: to subject all State ourchases to an es tablished procedu re which has price as a major determ inant in the award and rules out favoritism; to effect economies by standardizing items to be purchased and by pooling the needs of various departments; and to provide a method by which the propriety of purchases may be subject to administrative check.
Extent of Coverage. There is rather complete central control over the purchase of many of the
goods and services required by the State. The General Assembly has authorized the Supervisor of Purchases to contract for the purchase of all supplies, materials, and eqllipment required by "the State go\'ernment or any of its departments, institutions or agencies" (Ga. Code Ann. 40-1902). Excepted are school textbooks, technical instruments, supplies and publications and perishable foods. He is

- 59 -
obsolete property. If the amount of money involved to COver the cost of a purchase exceeds $1, 000, the Department is required by law to solicit sealed bids by advertisement and direct solicitation from reputable vendors. If the amount is less than $1,000, the Department solicits quotations from suppliers whose names they have compiled and many of whom they have prequalified. Departments are allowed to purchase various small items of supply directly if the cost of such items does not exceed $15. Under emergency conditions. these requirements may be waived. The Supervisor of Purchases has sole authority to declare that an emergency exists. Steps have recently been taken to reduce the number of II emergency" orders.
To comply with these requirements, the ordering department is required to complete two copies of a purchase requisition. One copy is forwarded to the Purchasing Department and the second copy is retained. The Purchasing Department then solicits bids for the goods desired. One of four purchasing agents processes the requisitions, each agent specializing in the purchase of certain types of supplies. After the procedures previously described are completed, depending on the cost of the purchase, an award is made to the lowest bidder, with preference being given to Georgia firms- .. all other considerations being equal (Ga. Code Ann. 40-1903). A seven copy purchase order is then prepared. One copy is sent to the vendor, a copy is retained as a permanent record in the Purchasing Department as a tracer, and the remaining four copies

- 60 -
are sent to the department ordering the goods.
The ordering department attaches one of its copies to the purchase requisition. Delivery of the purchase is made dire ctly to the ordering department, which makes payment to the vendor. A complete record of the transact ion is retained in the files of the ordering department for inspection by the State Auditor. It provides the documentation necessary to establish adherence to the State statutes governing purchasing procedures.
In addition to purchasing supplies, equipment and materials, the Purchasing Department is responsible for administering the laws governing payment of State funds to employees for the use of their private vehicles (Ga. Code Ann. 40-20). The provision of forms, the auditing of mileage tickets submitted in support of requests for payment, and the actual setting of the rate of compensation per mile within the statutory maximum, are all duties of the Supervisor of Purchases. In practice, however, the Purchasing Department does not audit mileage tickets.
The placement of insurance, the purchase of fidelity bonds, and solicitation of bids for contracts for the construction of State roads and buildings are functions performed directly by the operating departments.
By statute, the Purchasing Department has the responsibility of maintaining inventories of all fixed properties and of all movable equipment, supplies and materials belonging to the State government (Ga. Code Ann. 40-1907). Compliance

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with this provision has been achieved, in accordance with a recent opinion of the Attorney General's office, by requiring operating departments to maintain such inventories in accordance with methods outlined by the Purchasing Department and by making such inventories subject tc spot-check by the Department.
Standardization and Pooling of Purchases. Initial economies through centralized purchasing are usually realized
through resort to competitive bidding, but this may be achieved in a decentralized system as well. Standardization and pooling of purchases provide the basis for economies which can be realized only if purchasing is centralized.
The Supervisor of Purchases is authorized to establish and enforce standard specifications to apply to all supplies, materials and equipment for use by the State (Ga. Code Ann. 40-19). For this purpose, the Department now employs a specifications analyst who is in the process of drafting standard specifications for items most commonly used by State agencies. In this manner, the Department is now finding it possible to increase the number of suppliers eligible to bid, to eliminate the costly designation of brand names, and to provide a basis for testing goods when received. Laboratories and research facilities at educational institutions and in the operating departments are used in this continuing work.
Statutes establishing the office of Supervisor of Purchases require that this

- 62 -
official compile and consolidate all such estimates of supplies, materials and equipment needed and required by all State departments, institutions and agencies to determine the total requirements for any given commodity (Ga. Code Ann. 40-1908). The most prevalent means of conforming with this requirement has been through the award of contracts incorporating price agreements for the supply as needed, of various items commonly us ed by State agenc ies. Agreemen ts presently in force cover the supply of such items as tires, light bulbs, oil and gasoline. For less common items of supply, orders are consolidated only if they are received within a short period of time of each other. If this is done, it is necessary to arrange separate billings and separate deliveries for the departments involved. Since such an arrangement is generally impracticable under the State's system of independent departmental fiscal operations, orders are seldom C' on sol idate d.
This same factor accounts in part for the fact that the Purchasing Department :las not made use of the statutory provisions which enable it to operate storage and warehouse facilities (Ga. Code Ann. 49 -1939). The Department presently does not store supplies or materials for distribution to operating departments as needed.
Checking on the Proprie.ty of Purchases. In serving operating departments, it is not the function of the Office of the
Supervisor of Purchases to question the propriety of the purchases which it is requested to make. Its efforts are directed toward purchase of requested supplies

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and equipment at the lowest price possible. To a limited degree, as previously noted, the ,C;upervisor of Purchases is in a position to enforce standard specifications, and efforts are presently being made through conferences and consultations, to have operating departments cooperate in drawing-up standard specifications, and in making use of them. In the majority of purchases which are processed, however, the Pu rchas ing Department accepts the description of the operating agency of the item which is reql;lired and proceeds to procure it.

D. POST AUDITING CONTROL

The post audit provides a further control of the expenditures of the State

government agencies. A complete audit of the financial transactions of each

State agency is conducted by the State Auditor annually. The Auditor is required

by statute (Ga. Code Ann. 40-1805), "to thoroughly audit at least once a

year .... all of the books, accounts, records, vouchers, warrants, bills

and all other papers and records of each and every department, institution,

agency, commission, bureau and officer of the State which or who receives

funds from the State.

11

In the annual audits, the State Auditor calls attention to illegal or improper expenditures, failure to maintain records or vouchers required by law, and makes recommendations for correction or avoidance of such improprieties in future agency transactions.

- 64 _
The annual audit is filed with the head of the agency audited, a copy of the 3.udit is transmitted to the Governor, and a copy is maintained in the office of the State Auditor as a permanent record and for use of the press of the State (Ga. Code Ann. 40-1805).
The State Auditor is responsible for the establishment of agency accounting systems and for the development and installation of such forms and records as will assure propriety in the collection, custody, and expenditure of public funds (Ga. Code Ann. 40-1805, 40-1813).
The State Auditor issues the only comprehensive financial reports on the activities of State government. The statutory requirement that annual reports be made to the Governor and the General Assembly in regard to general financial operation and management is met by the condensation of the agency audits into a consolidated report which includes various summaries of receipts and expenditures as well as the specific reports (audits) on each agency of government (Ga. Code Ann. 40-1805). Also included in the Report of the state Auditor is the report of the "place and manner in which the funds of the State are kept" by the agencies after they have been withdrawn from the State Treasury or are otherwise in the possession of the agencies (Ga. Code Ann. 40-1805). A supplement to the Report shows in detail the personal services and related costs of each agency of the State government (Ga. Code Ann. 40-1805).

_ 65 _
Because of the role which the State Auditor plays in the administration of the State's expenditure program as Assistant Director of the Budget Bureau and the function of his office as the legislative post audit agency, he is frequently consulted informally for advice on the manner in which a particular financial problem can be solved. This advice constitutes a form of central pre-audit m those instances in which it is sought prior to the incurring of obligations by the agenc ies.
E. CONTROLS ON AUTHORITY EXPENDITURES The public corporations established by the General Assembly to carry out specific governmental functions are not subject to the expenditure controls described above. The same legal reasoning which establishes the authorities as "non-State" agencies to enable them to borrow funds for governmental purposes places them outside the expenditure controls imposed on the agencies which recetve appropriated funds directly.
A degree of conformity to State government practice in regard to personnel administration, purchasing procedures, and accounting and budgetary systems results from the direction of the State officials who serve as members of the authorities.
The financial transactions of the authorities are audited annually. The State Auditor conducts examinations of the authorities of which he is not a member, whereas those authorities on which he serves are audited by an independent firm of certifi cd public accountants.

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V. TREASUR Y MANAGEMENT "Treasury Management," as used in this study, describes the procedures for safeguarding and making use of monies which come into custody of the State until such time as they must be used for payment of State obligations. The function is shared by the State Treasurer and the financial officers of the various operating departments.
A. FUNDS MANAGED BY THE STATE TREASURER The bulk of the funds which are received and disbursed by the Treasurer's office are general fund revenues. Most such revenues are received bi-monthly from the agencies which collect them. Departments having smaller accumulations of receipts pay them over to the Treasurer less frequently, some transfers being made once a year. On the other hand, the Department of Revenue may make transfers more frequently than the bi-monthly rate on request of the Treasurer at times when the cash balance in the Treasury is low. The second type of receipt which is processed by the State Treasury consists of several forms of Federal aid. A number of these grants are paid directly to operating departments. The several types of Federal aid funds received by the

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Treasurer and the manne-r in which they are processed is as follows:
1. Treasurer endorses grant check and turns it over to the operating department.
Highway aid Public health grants for disease control for special programs Public welfare funds for social security program University System grants for mechanical and agricultural
arts Vocational rehabilitation education grants
(under the Social Security Act) Rural extension of library facilities grant
2. Grant checks deposited in the General Treasury and funds paid out by warrant in entirety to agencies or counties.
Employment Security Agency (unemployment aid) National Flood Control funds National Forest Reserve funds
3. Grant checks deposited in special fund and funds paid to department on issuance of warrant at discretion of the agency.
Education - Vocational funds Education - Rehabilitation funds Federal Civil Defense grants
By one of the provisions of the 1943 Appropriation Act, continued in effect by
the 1945 Constitution, all Federal aid is permanently appropriated for the purpose
for which it is made available, (Acts of 1943, p. 95).
A number of miscellaneous payments, most of them related to payroll deduc-
tions, comprise the third category of funds paid into the Treasury. These consist
of deductions for Federal income tax and deductions for contributions to several
of the retirement systems, including teachers' retirement. They are paid by

- 68 -
the State Treasurer in a lump sum to the Internal Revenue Service and the several retirement funds. Another special fund is maintained for receipt of security deposits under the provisions of the Motor Vehicle Safety Responsibility Act. Disbursements from this account are made on warrants drawn by the Department of Public Safety.
Most deposits made with the Treasurer are by check drawn on the banks in which operating departments have deposited their funds. Transfers into the general fund of the Treasury are not acknowledged directly by the Treasurer, but are instead reported to the Comptroller General as having been received. This report is in the form of a receipt indicating the departm ent from which the revenue was received, the type of revenue and the amount. It is signed by the Treasurer. After posting the receipt to the books maintained in his office, the Treasurer's receipt is filed, and the Comptroller General prepares a second receipt containing the same information which is then transmitted to the department which deposited the revenue with the Treasurer.
Statutes require that the State Depository l3oardld.etermine the method by which funds in the custody of the State shall be maintained and the extent to which they shall be deposited at interest, (Ga. Code Ann. 100-1). In practice, this Board has not functioned and general revenue funds in the custody of the Treasurer have not been deposited at interest. Instead, they have been placed in regular checking accounts in approximately 350 banks located about the State.

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B. FUNDS MANAGED BY OPERATING DEPARTMENTS Each operating department of the State government maintains one or more bank accounts in which departmental funds are deposited. The number of such accounts varies, with one department maintaining as many as 200. A portion of the funds in these accounts consists of departmental collections which are deposited by operating departments as they are received and remain in these accounts until transferred to the Treasurer. As was indicated in the revenue section of the study, there are a number of revenues which do not go into the general fund, but instead remain with operating departments. These retained funds account for another portion of the monies on deposit with State agencies. Exhibit 9, FLOW OF STATE FUNDS THROUGH BANKS shows the various rnovements of cash.
Appropriations from the general fund are usually paid by the Treasurer to operating departments by check on a monthly (or more:..:ften) basis. This procedure is described in detail in section III. B. of this study. The warrants upon which these payments are made are sometimes drawn so as to allow separate payments for different functions or units of a department. In other instances the payment is made in a single lump sum.
The several sources of receipts which are deposited in departmental accounts are augmented by Federal aid which is received directly by many departments

Exhibit 9 FLOW OF STATE FUNDS THROUGH BANKS
I. 38 STATE AGENCIES COUEtT F'..iNDS WHICH ARE
2. ... DEPOSITED TEMPORARILY IN MORE THAN 90 BANKS. THE FUND.S ARE THEN
3. ... TRANSFRRE[) TO THE STATE TREASURY. WHERE THEY ARE PLACED
4 IN MORE THAN 350 BANKS PENDING WITHDRAWAl.. ON THE BASIS OF APPROVED WARRANTS AND
5.. PLACED IN MORE THAN 520 BANKS USED BY THE STATE
.~. ~. ":r--.':r--.""y'- "-'--".'--~ .~,~~ArG-EN,CiEJ!SS8IUNRSMEAMKIENNGT5

_ 70 _
and income from special trust funds administered by several departments.
While the balances in the Department of Revenue accounts are depleted regularly on transfer to the Treasury, the balances of accounts maintained by some of the operating departments have become quite sizeable. This is due, primarily, to the subs tantial amount of Federal aid on hand and the practice of making the total amount of funds available to operating departments for major construction work prior to the initiation of such work.

APPENDIX
SELECTED CONSTITUTIONAL AND STATUTORY PROVISIONS RELATING TO
FINANCIAL ADMINISTRA TION

1
Code of Georgia Annotated Title 2-19
CONSTITUTION OF THE STATE OF GEORGIA
Article III - Legislative Department Section VII
Paragraph IX. General appropriation bill. The General appropriation bill shall embrace nothing except appropriations fixed by previous laws, the ordinary expenses of the Executive, Legislative and Judicial Departments of the Government~ payment of the public debt and interest thereon, and for support of the public institutions and educational interests of the State. All other appropriations shall be rrade by separate bills, each embracing but one subject.
Paragraph X. Bills for revenue. All bills for raising revenue 9 or appropriating money, shall ori~inate in the House of Representatives, but the Senate may propose, or concur in amendments, as in other bills.
Paragraph XI. Public money, how drawn. No money shall be drawn from the Treasury except by appropriation made at law.
Paragraph XII. Bills appropriating money. No bill or resolution appropriating money shall become a law unless, upon its passage, the yeas and nays, in each house, are recorded.

CorJ(~ of G(:orgia Annot2 ted '.I'Ll ]1; ::: -:.55
CONSTITUTION OF ~HE STATE OF GEORGIA
Article VII - Finance, Taxation and Public Debt Section II
Purposes and Method of Taxation
Paragraph 1. Taxation, how and for what purposes exercised. - The powers of taxation over the whole State shall be exercised by the General Assembly for the following purpoaes only:
1. For the support of the State Government and the public institutions.
2. For educational purposes.
3. To pay the principal and the interest on the public
debt, and to provide a sinking fund therefor.
4. To suppress insurrection, to repel invasion, and defend
the State in time of war.
5. To make provision for the payment of pensions to ex-
Confederate soldiers and to the widows of Confederate soldiers who are unmarried.
6. To construct and maintain State buildings and a system
of State highways, airports, and docks.
7. To make provisions for the payment .of old-age assistance to aged persons in need, and for the payment of assistance to the needy blind, and to dependent children and other welfare benefits; provided that no person shall be entitled to the assistance herein authorized, who does not qualify for such provisions in every respect, in accordance with enactments of the General Assembly, which may be in force and effect, prescribing the qualifications for beneficiaries hereunder: Provided no indebtedness against the State shall ever be created for the purpose herein stated, in excess of the taxes lawfully levied each fiscal year under Acts of the General Assembly authorized hereunder for such purposes,
(7-A.) In order to extend to the employees of the State, any department of the State, any State institution or political subdivisions of the State, and to the dependents and survivors of such employees, the basic protection accorded others by the Old Age and Survivors Insurance Program embodied under the Social
Security Act (Act of Congress approved August 14, 1935, 49
Stat. 620, officially cited as the "Social Security Act," as such Act has been and may from time to time be amended), and the Federal Insurance Contributions Act (as set forth in Sub-
chapter A of Chapter 9 of the Federal Internal Revenue Code,
as such Code has been and may from time to time be amended), the General Assembly is authorized to enact such legislation as may be necessary to insure the coverage to employees of the

3
State, any department of the State, any State institution or political subdivisions of the State, and the dependents and survivors of such employees under said Social Security Act as the ~~~p. haa been or may be amended and the Federal Insurance
Contributions Act as the same has been or may be amenoed J and any provisions of this Constitution notWithstanding the state for and on behalf of itself, its departmenta, institutions or political subdivisions is hereby authorized to enter into agreements with the Federal Security Administrator or other appropriate official of the United states Government under the provisions of said Social Security Act as the same has been or may hereafter be amended in the manner as provided therein and as provided by the General Assembly. The Teacher Retirement System of Georgia and the Employees Retirement System of Georgia shall have the powers and duties as provided by law existing at the time of the adoption of this provision of the State Constitution together with such further powers and duties as may be hereafter provided by law.
8. To advertise and promote the agricultural, industrial,
historic, recreational and natural resources of the state of Georgia.
9. For public health purposes.
Paragraph II. Teaoher retirement system, taxation for The powers of taxation may be exercised by the state through the General Assembly and by counties and municipalities, for the purpose of paying pensions and other benefits and costs under a teacher retirement system or systems; prOVided no indebtedness against the State shall ever be created for the purpose herein stated in excess of the taxes lawfully levied each fisca l, year under Acts of the Genera 1 Assembly authorized hereunder.
Paragraph III. Revenue to be paid into general fund. - All money collected from taxes, fees and assessments for State purposes, as authorized by revenue measures enacted by the General Assembly, shall be paid into the General Fund of the State Treasury and sha 11 be appropriated therefrom, as required" by this Constitution, for the purposes set out in this Section and for these purposes only.
Paragraph IV. Tax returns of public utilities. - The General Assembly may provide for a different method and time of returns, assessments, payment and collection of ad valorem taxes, of public utilities, but not at a greater basis of value or at a higher rate of taxation than other properties.

4
Paragraph v. Taxation for firemen's pension system. -
The powers of taxation may be exercised by the state through the General Assembly, and the counties and municipalities, for the purpose of paying pensions and other benefits and costs under a firemen's pension system or systems. The taxes so levied may be collected by such firemen's pension system or systems and disbursed therefrom by authority of the General Assembly for the purposes herein authorized.

5
Code of Georgia Annotated
Tttle 2-56
CONSTITUTION OF THE STATE OF GEORGIA
Article VII - Finance, Taxation and Public Debt
Section III - State Debt
Paragraph I. Purposes for which contracted.- No debt shall be contracted by, or on behalf of, the State, except to supply such temporary deficit as may exist in the treasury in any year for necessary delay in collecting the taxes of that yearp to repel invasion, suppress insurrection and defend the State in time of war, or to pay the existing public debt; but the debt created to supply deficiencies in revenue shall not eX8eed p in the aggregate, five hundred thousand dollars 1 and any loan made lor ttll.o purpose shall be repa id cut of the taxes levied for the year in which the loan is made. However~ said debt may be increased in the sum of three million, five hundred thousand dollars for the payment of the public school teachers of the State only. The principal amount borrowed for payment of teachers shall be repa id each year out of the common school appropriation, and the interest paid thereon shall be paid each year out of the general funds of the Sta te.
Paragraph II. Bonded gebt increased, when.- The bonded debt of the State shall never be increased, except to repel invasion, suppress insurrection or defend the State in time of war.
Paragraph III. Form of laws to borrow money.- All laws authorizing the borrowing of money by or on behalf of the State shall specify the purpose for which the money 1s to be used and the money so obtained shall be used for the purpose specified and for no other.
Paragraph IVo State aid forbidden. -The credit of the State shall not be pledged or loaned to any individual, company, corporati.on or association and the State shall not become a joint owner or stockholder in or With, any individual, company, associatlcn or corporation.
Paragraph V. Assumption of debts forbidden. - The State shall not assume the debt, nor any part thereof, of any county, municipal corporation or political subdivision of the State, unless such debt be contracted to enable the State to repel invasion~ suppress insurrection or defend itself in time of war: Provideds however, that the amendment to the Constitution propose.d by the '}eneral Assembly and set forth in the Published Acts of the 2eneral Assembly of the year 1931 at page-97, which
amendment was ratified on November 8, 1932, and which amendment

6
provided for the assumption by the State, of indebtedness of the several counties of the state, as well as that of the Coastal Highway District, and the assessments made against the counties of said district for the construction and paving of the public I-oads or highways, including: bridges, of the State, under certain conditions and for the issuance of certificates of indebtedness f~r such indebtedness so assumed, is cont.inued of full force and effect until such indebtedness assumed by the State is paid and such_certificates of indebtedness retired.
Paragraph VI. Profit on pUblic money.- The receiving, directly or indirectly, by any officer of State or county, or member or officer of the General Assembly of any interest, profits or perquisites, arising from the use or loan of public funds in his hands or moneys to be raised through his agency for State or county purposes o' shall be deemed a felony, and pun ishab1.e as may be prescribed by law~ a part of which punishment shall be a disqualification from holding office.
Paragraph VII. Certain bonds not to be patd.- The General Assembly shall have no authority to appropriate money either directly or indirectly, to pay the whole, or any part, of the principal or interest of the bonds, or other obligations which have been pronounced illegal, null and void by the General Assembly and the Constitutional amendments ratified by a vote
of the people on the first day of May, 1877; nor shall the
General Assembly have authority to pay any of the obligations created by the State under laws passed during the late war between the States, nor any of the bonds, notes or obligations made and entered into during the existence of said war, the time for the payment of which was fixed after the ratification of a treaty of peace between the United States and the Confederate States; nor shall the General Assembly pass any law, or the Governor or any other State official, enter into any contract or agreement whereby the State shall be made a party to any suit l.n any court of tr.:a State, or of the United States instituted to test the validity of any such bonds, or obligations~
Paragraph VIII. Sale of State's property to pay bonded debt.- The proceeds of the sale of the Western and Atlantic Railroad, and any other property owned by the State, ~henever the General Assembly may authorize the sale of the whole or any part thereof, shall be applied to the payment of the bonded debt of the State~ and shall not be used for any other purpose whatsoever, so long as the State has any existing-bonded debt; prOVided that the proceeds nf the sale of the Western and Atlantic Railroad shall be applied to the payment of the bonds for which said railroad has been mortgaged, in preference to all other bonds.

7
Paragraph IX. State sinking fund.- The General Assembly shall ralse by taxation each year~ in addition to the sum required to pay the pUblic expenses~ such amounts as are necessary to pay the interest on the pUblic debt and the principal of the pUblic debt maturing in such year and to prOVide a sinking fund to payoff and retire the bonds of the State which have not thpn matured. The amount of such annual levy shall be determined after consideration of the amount then held in the sinking fund. The taxes levied for such purposes and the said sinking fund, shall be applied to no other purpose whatever. The funds in the said sinking fund may be invested in the bonds of the State, and also in bonds and securities issued by the Federal Government and subsidiaries of the Federal Government, fully guaranteed by that government. If the said bonds are not available for purchase, the funds in the sinking fund may be loaned by the Treasurer of the State, With the approval of the Governor, upon terms to be fixed by Buch officials and when amply secured by bonds of the State or Federal Government.

8
Code of Georgia Annntated ITt Ie 2-62
CONSTrTUTION OF THE STATE OF GEORGIA
Article VII - Finance, Taxation and Public Debt
Section IX - Appropriation Control
Paragraph I. Preparation and submission of General Appropriation Bill. - The Governor shall submit to the General Assembly within fifteen days after its organization, a budget message accompanied by a draft of a General Appropriation Bill, which shall provide for the appropriation of the funds necessary to operate all the various departments and agencies, and to meet the current expenses of the State for the ensuing fiscal year.
Paragraph II. Continuation of General Appropriation Act. Each General Appropriation Act, with such amendments as are adopted from time to time, shall continue in force and effect for each fiscal year thereafter until repealed or another General Appropriation Act is adopted; provided, however, that each section of the General Appropriation Act in force and effect on the date of the adoption of this Constitution, of general application and pertaining to the administration, limitation and restriction on the payment of appropriations and each section providing for appropriation of Federal Grants and other continuing appropriations and adjustments on appropriations shall remain in force and effect until specifically and separately repealed by the General Assembly.
Paragraph III. Other or supplementary appropriations. - In addition to the appropriations made by the General Appropriation Act and amendments thereto, the General Assembly may make additional appropriations by Acts, which shall be known as supplementary appropriation Acts, provided no such supplementary appropriation shall be available unless there is an unappropriated surplus in the State Treasury or the revenue necessary to pay such appropriations shall have been provided by a tax laid for such purpose and collected into the General Fund of the State Treasuryo Neither House shall pass a Supplementary Appropriation Bill until the General Appropriation Act shall have been finally adopted by both Houses and approved by the Governor.
Paragraph IV o Appropriation to be for specific sums. (a) The appropriation for each department, officer, bureau, board, commission, agency, or institution for which appropriation is made shall be for a specific sum of money, and no appropriation shall allocate to any object, the proceeds of any particular tax or fund or a part or percentage thereof.
(b) To defray the cost of all activities incident to providing and maintaining an adequate system of public roads and bridges in this State as authorized by laws enacted by the General Assembly of Georgia, and for grants to countries for aid in

9
county road construction and maintenance as provided by law authorizing the state treasury to make such grants, the General Assembly 8f Georgia shall in each General Appropriation Act make the aggregate of the fixed appropriations for highway purposes an amount not less than the t8tal Motor Fuel and Motor Vehicle License taxes received by the State Treasury for the immediately preceding fiscal year, less the amount of refunds, rebates, and collection costs authorized by law. The expenditure of the appropriations made in conformity with this provision shall be subject to all the rules, regulations and restrictions imposed on the expenditure of appropriations by provisions of this State Constitution and other laws enacted by the General Assembly. Said funds are hereby allocated -to the Highway Department and shall be utilized for highway improvement including construction and maintenance. In the event of a general war in which the United States of America is involved said funds shall be held to the credit of the State Highway Department until such time as the road buildtng program can be continued and materials obtained for said purpose. During any such period of time all the funds, which cannot be used for highway purposes, shall be invested in bonds of the United States of America or securities, the payment of the principal and interest of said securities being guaranteed by the United States of America. In the event of invasion of this state by land, sea, or air, said funds may be utilized on the executive order of the Governor for defense purposes.
Paragraph V. Appropriations votd, when.- Any appropriation made in conflict with either of the foregoing provisions shall be void.

10
Provisions of the 1943
Appropriation Act blanketed into the ConEtitution by the provisions of Article 7~ Section 99 Par.II.
Section 33. Income Equalization Account--The State Treasurer and
other fiscal officers are authorized and directed to set up as an appropriation in this account an amount equal to the amount or amounts that is determined by the State Auditor to be a surplus in available funds after the prorating of monthly income has been made to the monthly allotments authorized under this Act. In the event the income for ~he month is insufficient tc make a 100% prorating to meet the allotments authorized under this Act the State Auditor is authorized to utilize the necessary amount from this fund to cover the deficiency, In the event there is at any time a surplus in this account the amount of same shall be available and is appropriated for allotment for highway construction or for other purposes, in accordance with provisions of Section 8 of the Budget Act,
Section 55. The fixed sums appropriated in this Act for the cost
of operating the Agencies and for other purposes shall be in lieu and/or inclusive of, and not in addition to all amounts realized from taxes, fees and collections specially allocated for the support of the respective agency, under any law now or hereafter to become operative, making specific allocation for the support of the respective Agency and the operation of parts of Acts so allocating revenues for specific purposes is hereby suspended for the periods for which fixed sums are appropriated under the within Act. The State Agencies charged With the duty of collecting the revenue affected by the provisions of this nection are hereby directed to pay all of said revenues into the General Fund of the State Treasury.
Section 57. In the event any duties purposes and objects for
which appropriations are made in this Acts shall be transferred under authority of law to a State Agency other than that to which appropriated the appropriations for such duties purposes and objects shall follow to such State Agency to which the duties are transferred; and in case the appropriation to be so transferred is not a separate item, the Governor, the State AUditor, and the head of th~ State Agency to which the appropriation is made in this Act~ are authorized to determine the amount to be transferred and set up to the transferee State Agency, Nothing 1n this Section shall be construed to increase any appropriation for the duties~ purposes and objects named 1n this Ac.t.
Se~tion 58. All Federal Ft..n'Js received by the Sta te of Georgia are hereby continually app~opriated in the exact amounts and for the purposes authorized and directed by the Federal Gov~rnment in making the grant.

11
Section 59. efore an al~otment from the appropriations made in
this Act, shall be available for expenditure by any Agency of the State, a quarterly budget shall have been submitted and approved in accordance with provisions of the Budget Act and all rules and regulations issued in accordance with the Budget Act shall have been complied With.
Section 60. The State Auditor shall monthly pro rate the income of the State to the credit of each appropriation account in the same proportiorr that each appropriation bears to the total appropriations and if the amount of funds pro rated to the credit of each account is in excess of the approved budget allotments, the amount of said surplus shall be credited to the Income Equalization Account by the State Treasurer. In the event the income is insufficient to make a 100% pro rating to meet the allotments authorized under this Act, the State Auditor is authorized to utilize the necessary amount from the Income Equalization Account to cover the deficiency and same shall be charged to the Account by the State Treasurer. The pro rating of funds under this Section by the State Auditor shall not increase the amount of appropriations set out in this Act.
Section 62. No payment shall be made and no obligation shall be incurred against any fund, allotment, or appropriation made 1n this Act unless same has been included in the Budget of the respective agency and approved ae provided by law. Every expenditure or obligation authorized or incurred in violation of the provisions of this Section shall be void. Every payment made in violation of the provisions of this Section shall be deemed U.legal, and every official authorizing or making such payment, or taking part there~n, and every person receiving such payment or any part thereof, shall be jointly and sev'erally liable to the State for the full amount so paid or received.
Section 63. At the end of each fiscal year the amount of each appropriation prOVided for in this Act which has not been allotted by Budget Bureau authorities in writing shall lapse and cease to be available and the State Treasurer, upon recetving notice of same, shall not pay any unallotted approprIation and shall make the necessary adjustments in his appropriation accounts to charge off the amount of the lapsed appropriations.

12
Georgia laws 1949 General Appropriation Act (No. 342)
Section 53. All appropriations and expenditures authorized by this Act shall be subject to provisions of Article VII, Section IX, Paragraph II of the Constitution of Georgia, which continues in force and effect Sections 55,57,58,59,60,62, and 63 of Appropriation Act, approved January 29, 1943, same being laws of general application to all appropriations made by the General Assembly.
Section 53 (a). Section 33 of the General Appropriation Act approved January 29,1943, relating to "Income Equalization Account", and which is found in Acts of 1943, page 91 and which provides as follows: "Income Equalization Account--The State Treasurer and other fiscal officers are authorized and directed to set up as an appropriation in this account an amount equal to the amount or amounts that is determined by the State Auditor to be a surplus in available funds after the prorating of monthly income has been made to the monthly allotments authorized under this Act ., In the event the income for the month is insufficient to make a 100% ': prorating to meet the allotments authorized under this Act, the State Auditor is authorized to utilize the necessary amount from this fund to cover the deficiency. In the event there is at any time a surplus in this account, the amount of same shall be available and is appropriated for allotment for highway construction or for other purposes, in accordance with provisions of Section 8 of the Budget Act," is hereby specifically and separately repealed in its entirety as contemplated in Paragraph 2 of Section 9 of Article 7, of the Constitution of Georgia of 1945.
Section 53 (b). Income Equalization Account--The State Treasurer, and other fiscal officers, are authorized and directed to set up in this account an amount equal to the amount, or amounts, that are determined by .the State Auditor to be a surplus in available funds after the prorating of monthly income has been made to the monthly allotments authorized under this Act. In the event the income for the month is insufficient to make a 100% prorating to meet the allotments authorized under this Act, the State Auditor is authorized to utilize the necessary amount from this fund to cover the deficiency.
In the event there is at any time a surplus in this account, an amount in the specific sum of $750,000.00 and not more than this sum, is hereby appropriated as a contingent or emergency appropriation to be expended pursuant to the provisions of Section 8 of the BUdget Bill (Laws ~of 1931, Extra Session, p.98); and said contingent or emergency appropriation shall not exceed said specific sum of $750,000.00 for each fiscal year oovered by this General Appropriation Act; but, provided, however, that there shall not at any time be expended out of any surplus in'said income equalization acoount any funds for any purpose save and except to ddjus'\; appropriations, and to pay allotments, out of said contingency or emergency appropriation in the total amount, during any fiscal year, of the specific sum of $750,000.00 as aforesaid, and not more than said sum


13 G80rgia Laws 1951 General Appropriation Act (No. 278)
Section 52.--All appropriations and expenditures authorized by this Act shall be subject to provisions of Article VII, Section IX, Paragraph II of the Constitution of Georgia, which ccntinues in force and effect Sections 33, 55, 57, 58, 59, 60, 62 and 63 of Appropriation Act, approved January 29, 1943, same being laws of general application to all appropriations made by the General Assembly.
NOTE: An identical section appeared in the General Appropriation Acts of 1953 and 1956.

14 Q~de cf Georgia Annotated
Titlp. 26 - Crimes and Punishment
Part VII - Crimes Relative to Property Chapter 26-29 State's Property or Money
26-2901. (195 P. C.) Withholding state's money or property.-Any person who shall fradulently, wrongfully, or illegally receive any mo~ey or personal property belonging to the State, and shall refuse to pay ov~r said money or deliver up said personal property to the Treasurer of the State or his authorized agent, upon a demand of the same by such Treasurer or his agent; or any person who shall lawfully receive money or personal property belonging to the state, as an officer of satd State or otherwise, and shall~ after demand upon him by said Treasurer or authorized agent, fail to pay said money or deliver said p~rsGnal property to said Treasurer or his authorized agent, the same be ing still the property of the Sta ~ wi thin 10 days after such demand, shall be punished by confinement and labor in the penitentiary not less than one nor more than two years. (Acts 1871-2, P. 72.)
26-2902., (196 P. C.) Penalty for using State1s money.--If the State Treasurer, or any other officer of this State, shall use, directly or indirectly.l' the money of this State, he shall be punished by l.mprisonment in the penitentiary for not less than five nor more than 20 years. (Acts 1878-9, p. 32.)
Cross-reference.--State officials prohibited from receiving p~"ofit from State funds, see Const q 1945 Jl Art. V, Sec. II Par. III (8 2-3103)
,g6-222;l. (197 P. C.) Receiving interest on money of State.--If the State Treasurer, or any other officer of the State or county or any other person shall receive, or agree to receive, from any person, bank~ or corporation~ any fee) interest, or reward for the deposit or use of money of the state, such officer or other person shall be punl.sh8d by imprisonment tn the penitentiary for not less than five nor more than 20 years. Nothing in this or the preceding section shall be cons trued to mod ify or change any law rela ti.ve to the conduct or liability of the Treasurer or any officer of the State. (Acts l878-9Jl p. 32.)
Ci ted. 67 F. (2nd) 421.
26->2904. (198 P. c. ) Receiving inte:-st on pUblic funds.--The
receiving, directly or indircotly, by any officerof the State or county, or member or officer of the General Assembly, of any interest, profits, or perquisites arising from the use or loan of public funds in hi.s hands.!' or moneys to be raised through his agency for State or county purposes shall be pun i:3hed by imprisonment in the pen i ten tiary for not J.ess than two years no~ more than seven years, and such offender shall be disqualified from holding office. (Acts 1878-9" p. 33.)
Cros8-reference.-- Penalties for makingsprofit on public money" see Ccnst o , 1945.r Art.VII,!' Sec. III, Par.VI (s 2-5606).
Ci ted. 67 F 0 (2nd) 421.

15
Code of Georgia Annotated
TitlE) 40 - Executive Department Part I - Governor Chapter 40-4 - Budget Bureau
110-401. Establishment. Legal services and clerical assistance.--There shalr-be established in the office of the Governor a Budget Bureau, for th~:. purpose of promot ing economy and effie iency in the management of the St!1t l'; 's finances 0 The Governor shall be ex-officio Director of the Eudget, and the State Auditor shall be assistant Director of the Budget. The necessary legal advice and services shall be rendered by the Attorney1~neral, and the necessary clerical assistance shall be performed by 0~ployees of the Executive Department and of the State Auditor's office I.<rtthout extra compensation. (Acts193l, Extra. Sess., p. 94)
9ross-reference - State Auditor, see 40-1801.
~Q-402. Preparation of the budget. For the purpose of making up the budget, the Director of the Budget shall have the power, and it shall be his duty, to requlre from the proper State officials, including herein all executive and administrative officers,? bureaus, boards, commissions, and agencies expending or supervising the expenditure of, and all institutions applying for, State moneys and appropriations, such itemized t'~,timates and other information, in such form and manner and at such times as sald Director shall direct. The estimates for the Legislative D8partment, certified by the presiding officer of each House, and of the JudLciary, as certified by the State Auditor, shall be transmitted to U1'? Director in such form and manner and at such time as he shall direct, and shall be included 1n the budget. The Director may provide for public h~~rings on all estimates, and may require the attendance at such hearing: u[ I'fO'presentatives of all departments, agenci.es, boards,9 commissions or lD~titution3 applying for State moneys and appropriations. After such public hearings s and after examination of the estimates submitted, the DIrector may in his discretion revise all estimates, except those for the ['[s13latilTe and Judicial Departments. rrhe Governor-elect may advtse and ccnf'~;r wI th the DirE-ctor in the preparation and revision of the estimates ano for this purpose he shall have access to all estimates and requests ~'1Jbf11Lttcd by the departments, agencies, commissions and instttutions.9 in ccmpliance with the instructions of the Director. (Acts of 1931, Extra. S <, 2 S ... p. 94)
~.Q.-}~03. Submis e ion of the bud get. Within seven days after the conven ing of the General j\ssembly,9 the Governor shall submit to the General Assembl in prInted form a budget covering the ensuing two fiscal years. The budget shall contain a complete plan of proposed expenditures and actual revenUES and expenditures for each of the particular fiscal years to which it relates. If the proposed expenditures for either fiscal year eha11 exceed the s2timateo revenues therefor, the Governor shall recommen tts Eources from which the additional revenues shall be provided. The GC'i,cernor Sh811 submit to each House of the General Assembly, at the same tlm~ he submits his budget,9 (1) printed copLes of a budget message containir:g any explanations or comments he may desire to make as to the tmportant features of the budget,? and (2) printed copies of a tentative

16
40-403 (continued) I [bill for all appropriations under the budget, clearly and properly classified, for each fiscal year in the ensuing biennial period The presiding officer of the House of Representatives shall cause sald bill to be promptly introduced therein, and such bill shall be known as the budget bill. Eefore final action thereon by the General Astiembly, the Governor may amend or supplement the budget to correct an oversight or in case of an emergency, with the consent of the General Assembly, by delivering 2ush an amendment or supplement to the presiding officer of each House. The appropriation for each department, officer, bureau, board, commission, agencY3 or institution receiving and expending State moneys may be by lump SUffi3 in whlch shall be distinguished, for each fiscal year, the amount appropriated to be expended for maintenance and operatton9 and the amount appropriated to be expended for capital improvements and/or fixed charges. (Acts 1931, Extra. Sess., pp. 94, 95.)
40-404. Amendment of budget bill by General Assemblz.The 'Jeneral Assembly may amend the budget bill in any way it may deem dee trable, provided such amendments do not crea te a defic it. (Acts 1931, Extra. Sess., pp. 94, 96.)
~O-4Q2. Re2resentatives of departments, etc., heard concerning budget.-rhe Go~ernor and such representatives of the departments, officers, :ommissions, agencies and institutions expending or applying for State noneys as have been designated by the Governor for this purpose shall have :he right, and when requested by the General Assembly it shall be their Juty, to appear and be heard with respect to any budget bill during the ~onsideration thereof and to answer inquiries relative thereto. (Acts 1931, Extra. Sess., pp. 94, 95.)
~o-406. Supplementary appropriation bills.--Neither House shall consider lther appropriation bills until the budget bill shall have been finally ldopted by both Houses and approved by the Governor, and no such other \ppropriation bills shall be valid except in accordance with the following )rovis ions: 1, Every such appropriation bill shall be embodied in a separate bill .tmtted to some single work, object, or purpose therein stated, and called lerein a supplementary appropriation btll. 2. No supplementary appropriation shall be available unless and until ,he revenue necessary to pay such appropriation shall have been provided ly a tax laid and collected for such purpose, unless it shall appear from ,uch budget that there is sufficient revenue available; and any unused 1ortion of any such supplemental appropriation shall be ~aid into the :eneral treasury. (Acts 1931, Extra. Sess., pp. 94, 95.)
0-407. Execution of the budget.--Before an appropriation to any spending gency shall become available, such agency shall submit to the Governor, ,at less than 20 days before the beginning of each quarter of the calendar 'ear, a requisition for an allotment of the amount estimated to be required o carry on the work of the agency during the ensuing quarter, and such equisition shall contain such details of the proposed expenditures as may e required by the Governor. Such requisition shall be approved by the overnor as to all its requests,' except such as in the judgment of the overnor may not conform to the provisi.ons of the Act of the General

17
40-407 (continued)
ABsembly making appropriations, and as to such exceptions the responsible h~ad of the spending agency shall be notified and shall have the right to be heard by the Governor before final action in the matter. After such final action shall have been taken by the Governor, he shall submit the same to the State Auditor, who shall be governed in his control of expenditures by said allotments. No allotment shall be changed nor shall transfers be made, except upon the written request of the responsible head of the spending agency and by approval of the Governor in writing. Before such changes or transfers shall become effective, a copy of the request
and approval shall be transmitted to the State Auditor. (Acts 1931, Extra.Sess., pp. 94, S7.)
40-408 Contingency appropriation.--To the end that all expenses of the
State may be brought within the budget, the budget appropriation bill shall also contain a specific sum as a contingent or emergency appropriation. The manner of the allocation of such contingent or emergency appropriation shall be as follows: Any department, commission, board, institution, or other agency of the State, desiring an allotment out of such emergency appropriation, shall, upon form prescribed by him, present such request in writing to the Director of the Budget, with such information as he may require, and the Director may allow or disallow the request
tn his discretion. (Acts 1931, Extra. Sess. pp. 94, 98.)
40-4090 Ins~ction of public offices.--The Director of the Budget shall
have such supervision of every public department, agency and institution as shall be necessary to secure uniformity and accuracy of accounts and efficient conduct of its fiscal affairs. He may inquire into the methods of 80nducting the affairs of any public body; he may prescribe and direct the use of such forms of accounts, records, and reports as may be necessary to further efficiency, and an adequate system of records for budget-making purposes; and he may prescribe and direct the use of stan-
dards of effi.c iency for public employees. (Acts 1931, Extra. Sess. 9 pp, 94, 98 0)
~0-4IQ. Powers of the assistant Director of the Budget Bureau.-The assistant Director of the Budget Bureau shall actively assist the Director in the compilation and analysis of estimates, in the preparation of the budget and the accompanying message and appropriation bill, and the inspection of pUblic offices. He shall, when directed by the Governor and SUbject to his supervision, perform any other duty heretn provided to
be e.x-erc ieed by the Director of the Budget. (Acts 1931, Extra. Sess., pp. 94, 98.)
40-411. Finance Commission; creation, members, compensation of members.--
To the end that all agencies of the State shall have a just hearing and an unbiased determination of appropriation needs of the respective agency before the preparation and submission of a budget bill to the General .
Assembly as required by the budget Act (40-401 to 40-410) which is now
tn force and effect, and to the end that all agencies of the State may have an appeal from the action of the budget officials in the disapproval of a budget, there is hereby established a Finance Commission consisting of the Govrnor~ President of the Senate, Speaker of the House of Representativ'es, chairman of the appropriation committee of the Senate.9 chairman of the appropriation committee of the House of Representatives. The

18
}-lO_L~ll (continued)
memb9rs of the General Assembly herein designated shall be compensated each at the same per diem rate while attending a meeting of the Finance Commission as he receives for his services in the General Assembly and h9 shall also be paid his actual travel expense, both to be paid from the legislative fund; all other members of the Commission shall serve \f.rlthout extra compensation. (Acts 1943, p. 298.)
Editorial Note. -~nder the Constitution of 1945$ 2-2101, per diem of members of the General Assembly is fixed at $10.00 per day plus the additional sum of $5.00 per day for maintenance expenses.
40-412. Same; duties, meetings.--The Finance Commission herein established shall actively assist the Governor in the preparation of the budget for submission to the General Assembly as reqUired by law and shall meet in the state Capitol at such time as a Governor or Governor-elect may direct$ fer this purpose. The Finance Commission shall meet also on call to act on any budget appeals that may be filed by the various State agencies, , advise with the Governor in his performance of the official duties as I required in section 40-413 and to make recommendations to the Governor to aid him in promoting economy and efficiency in the operations of the Stat" Government. (Acts 1943, pp. 298, 299.)
Itn-4l3 .-- ~ppeals to Finance Commiss ion: hearings and subsequent procedure. 1\.1 t;er final action by the budget officials on a quarterly budget request oubmU.ted by any department, board, bureau or agency of the State in accordance with provisions of section 40-407, if the head of a State agency desires to appeal from the action of the budget officials in approving or disapproving the quarterly budget submitted for the operations of their respective agency, the responsible head of the spending agency shall file in writing with the Governor, a request for a hearing before the Finance Commission, and the Governor shall within five days after the notice of appeal is filed, set a date for a hearing and notify the respective members of the Finance Commission, who shall meet on the day 8pe8ified$ in the State Capito~ for the purpose of hearing the appeal. After hearing the evidence on the action taken by the officials of the Eudget Bureau and the evidence presented by the agency head, if the Finance Commission by a majority of vote of its membership holds in favor of the agency presenting the appeal, then the Board shall request the agenc~ to amend its budget request to conform with the findings of the Commission. The amended budget which conforms to findings of the Finance Commission in the event of an appeal shall be transmitted with the 'written approval of the majority of the members of the Finance Commission tc the State Auditor who shall be governed thereby in his control of 8xpenditures as now provided by law. No person shall have the authority to change within the quarter the allotment of funds authorized by approval of the Finance Commission. In the event the Finance Commission does not CO!1cur in the appeal of the head of a State agency, they shall transmit notice in writing of this action to the State Auditor who shall be governed thereby in his control of expenditures as now prOVided by law. (Acts 1943, pp. 298, 299.)

19
40-414. Warrants on treasury; drawing, duties of Governor, State Auditorjl
Comptroller General, and State Treasurer.--After the approval of a quarterly budget by the budget officials, the Governor is authorized to to execute his warrant on the treasury or he is hereby authorized to delegate this duty to the State Auditor. In the event of an appeal on the budget and same being approved by a majority of vote of the Finance Commission, the State Auditor is authorized to draw his warrant on the State treasury in conformity with the approved budget and the Comptroller General is authorized, after receiving the warrant signed by the State Auditor and after checking same as now required by law and found to be 80rrectp to countersign same and transmit the warrant to the State Treasurer for payment, who is hereby authorized to pay the warrant if same conforms to the provisions of the appropriation made for such
purpose. (Acts 1943, PP. 298, 300.)
40-415. Arbitrary discharge of State employees by Governor or Finance
Commission prohibited. Charges, hearing, and appeal.--Neither the Governor in his official capacity nor the Finance Commission shall have the power to arbitrarily strike the name of any individual employed by the State from a requisition for allotment of funds or from the budget of any department or agency of the State Government; PrOVided, however, that upon information being received that any individual employed by the State or any department or agency thereof is guilty or is alleged to be guilty of irregularities, misconduct, malpractice", malfeasance, misfeasance, incompetence, incapability or ineffic iency in the cond uc t of his or her official duties, the department head employing said person shall be notified of such charges and if the department or agency head takes the position that the charges are unfounded and fails or refuses to discharge the individual against whom the complaint is lodged, it shall be the duty of the Governor to hear the compla int and if, in his opInion; the facts sustain the truth of the accusation, the said individual shall stand discharged from State service. Should the department head employing the said person and the individual so discharged be aggrieved by the act ton of the Governor, he shall have a right of appeal by filIng With the Governor a written notice of dissatisfaction and requesting that an appeal be entered in the matter. The Governor shall at the next meeting of the Finan::::e Commission as herein prOVided.., submit the matter to the Finance Commission which shall hear the appeal under such rules, regulations and procedures as it may be prescrt.bed. The find ings of a majority of the membership of the Finance Commission upon the question of whether or not the aggrieved person shall be employed shall be final and said findings shall be filed in writing with the department head, the person discharged and with the State Auditor. Nothing in this section shall effect the tenure of office of the elected officials of this State nor shall it effect the tenure of office of appointed official of this State who have been confirmed by the Senate as required by law.
(Acts 1943, PP. 298. 301.)
Editorial Note. In the last sentence of the above section, which follows both the published Act and the enrolled Act, "effect" should be "affect."

20
Code of Georgia Annotated
Title 40 - Executive Department Part III - State Treasurer Chapter 40-11 - Duties in General
40-1101. (228, 252) Duties enumerated. -~t shall be the duty of the State Treasurer --
1. Money and warrants.--To receive and keep safely all the money which shall be paid to him in behalf of the State (giving certificates therefor, which shall specially set forth the amount, on what account, and by whom paid, and shall be lodged as vouchers in the Comptroller's office), and to payout the same only upon the warrants of the Governor, when countersigned by the Comptroller General, or in his absence the Deputy Comptroller General as provided by law, excepting the drafts of the President of the Senate and Speaker of the House of Representatives for sums due to the members and officers of their respective bodies. (Acts 1876, p. 129; 1956, pp. 802, 803.)
Cross-references. -- Payments from treasury on Governor's warrant, see
46-264. Warrants countersigned by Comptroller General, see 40-1505, par.
2. State Treasurer Emeritus, see 78-1201. Editorial Note. -- The Act of 1956 inserted the reference to the Deputy Comptroller General in subsection (1), the remainder of the section being unchanged.
Clted. 69/329; 163/539 (136 s. E. 425).
Mandamus: Petition seeking writ of mandamus directing State Treasurer to honor and pay, when and if presented, warrant which petition fails to show to have been executed as required by law, and which shows that there has been no failure of Treasurer to perform his official duty in paying warrant properly executed and presented to him, alleges no cause of action, and is properly dismissed on demurrer. 188/655 (1) (4 S. E. 2d 664).
State bonds: Not ministerial duty of Treasurer to pay, until appropriation made, executive warrant issued, a.nd countersigned by Comptroller General. 68/711; see 56/676.
Warrants revocable. 56/674.
2. Book of accounts and warrants.--He shall keep a durable book, wherein he shall enter each day, in charge against himself, all and every sum of money received by him, stating from whom and on what account received, and per contra, crediting himself with any and all sums disbursed by him in any manner, stating to whom paid, when paid, and on what account or purpose paid; and for all disbursements whatsoever, he shall take receipts or other vouchers therefor. He shall also keep a true and faithful record in a book of all warrants drawn by the Governor on the treasury, stating the number of the warrant, the amount, the date and the payee of the same, and to what fund the same is chargeable, and he shall carefully keep on file said warrants. (Acts 1876, p. l29.)

21
3. Ledger and entries therein.--He shall keep a general ledger of
a~counts~ into which he shall post all the receipts and disbursements of hIS office, arranging the receipts and disbursements under the heads to which they properly belong. He shall open in said ledger an account with each appropriation made by the General Assembly, and with each salaried officer of the State, in which he shall credit the object for which the a ppropria tion was made with the amount appropria ted to the objectjl and ~hnl1 charge such appropriation with the payments made by him upon the ~ame. He shall open in said ledger a general account of receipts and disbursements; which last-mentioned account he shall compare with the books kept by the Comptroller in his office, on the last day of each qua rter _of the fis cal year; and, after having compared them, shall strike the balance on said account, showing the amount atfuat time in the treasury to the credit of the State, and he shall carry said balance forward on the book to the general account for the next quarter. (Acts 1876.9 p. 129.)
Cross-references.--Comptroller General to keep account of appropriations see 40-1505, para. 1, 40-1506. Fiscal year, see 89-901.
4. Bank accounts.--He shall keep accounts in the books of his office
with the different State depositori~8 in which t~ pUblic revenue or money is deposited, on which balances shall be struck at the aforesaid periods, showing the amount in bank to the credit or debit of the State. The depository or depositories where public deposits are made by the Treasurer, or by any other person by the direction of the Treasurer, shall transmit to the Comptroller General and Treasurer monthly statements of the deposits, checks, and drafts received and paid by them on account of the treasury. (Acts 1876, pp. 129, 130; 1878-9, p. 88.)
Cross-references.--State depositories in various cities, see 100-101. Tr'03surer to advise Governor as to financial condition of State depositorie3~ see 100-106.
5. Cash accounts; quarterly balancing.--He shall keep a general cash account, which shall be balanced at the expiration of each quarter of the fiscal yearjl showing the balance in the treasury at the end of p(1ch quarter. (Acts 1876, pp. l29~ 130.)
6. Check book and stubs. --He shall keep check books, within which there shall be suitable margins. The checks shall be numbered by numbers in thr" mare;ins correspond ing with the numbers upon the checks; and he shall note in the margin the date and amount of the check, the appropriation to which it shall be charged, and the person to whom it shall be iGsued; and he shall balance his accounts with all banks or other depositcries holding State deposits as often as once in each month. (Acts 1816, pp. l29j 130.)
Editorial Note.--Subdivision 7 of 228 of the Code of 1910, relating to e~timates and reports to the Governor was omitted as superseded by Chapter 40-4, relating to the Budget Bureau.

22
7. Payment only to purpose for which fund appropriated. -- He shall pay all funds pledged to the payment of the public debt, or interest thereon, or to any object of education, and to these objects only, and tn nowise to any other purpose. All payments from the treasury shall be p'aid from the fund appro~riated for such purpose, and not from any other. (Acts 1876, 88. 129-130.)
8. Quarterly report to Governor.--At the end of every quarter of the year, he shall make a written report; under oath, to the Governor, of the several amounts received by him during the three months preceding such report; and he shall also submit to the Governor itemized monthly reports of the condition and transactions of the treasury, and the information contained in such monthly reports may be given to the public from time to time at the discretion of the Governor. (Acts 1876, pp. 129, 130.)
9. Deposit in bank; supervision thereof by Governor.--He shall keep safely certificates of stock, State bonds, and other evidences of the educational fund, and manage and control the same for the purposes to which they are pledged. He may deposit all funds set apart for the purpose of education, or any other purpose not required for immediate use, in the State depositories, subject to his draft as Treasurer. The Governor may make such contract with the depositories for the use of such funds as may be beneficial to the State. If, at any time when the legislature is not in session, the Governor shall be of the opinion that the safety of the public funds requires it, he shall, by his order in writing, direct the Treasurer to transfer the money held by any depository or depositories, on account of the treasury, to any other safe and proper State depository or depositories, as the 'freasurer may select, with the approval of the Governor, which approval shall be in writing, and shall designate the depository or depositories thus selected, and the Treasurer shall thereupon transf,~r the same as directed; but all such orders shall be duly recorded in the Executive office, and, as soon as possible thereafter, shall be submitted to the General Assembly, with the reasons therefor. (Acts 1876, pp. 129, 130; 1878-9, p.88.)
10. Use of public funds for private purposes forbidden.--He shall not, under any circumstances, use or allow others to use the funds of the State in his hands; and for every violation of this section he shall be liable to the State for the sum of $500, as a penalty, or a forfeiture of his salary, if said forfeiture will pay the penalty incurred. (Acts 1876, pp. 129, 131.)
Cross-references.--Fees and perquisites prohibited, see Const., Art V, Sec. II, Par. V (2-3105). Execution instanter if Treasurer m1.sapplies public funds, see 40-1005. Fee or reward for deposit or usa of public fund, see Const., Art. V, Sec. II, Par. II (2-3103). Punishment for using or receiving interest on public funds, see 26-2902, 26-2903. See Title 100, State Depositories.
Interest on funds deposited without executive approval received and used by'rreasurer, there could be no recovery therfor on official bond; taking such 1.nterest, violative of this section and penalty collectible; sureties not liable for penalty. 74/618.

23
11. Payment of salaries in advance; how far allowed. --He is authorized to pay all officers of the State, whose salaries are fixed by law, 75 per cent of the amount for which service shall have been actually rendered at the date of said payment, taking receipts for the same, which shall be his vouchers and exhibits to executive warrants for said salary; and may also pay members of the General Assembly in the same way, where their accounts are duly audited, unless prevented by the resolution of e 1ther or both branches of the General Assembly. (Acts 1876, pp. 129, 131. )
12. Report of State debt.--He shall annually report to the Governor the amount of the State debt bearing interest for each year; the rate per ~ent paid on each kind of bonds; the amount of each rate paid; the exchange, if any; premiums on gold, if any; and the aggregate amount of interest paid in each year, and the probable amount due and unpaid at each semiannual payment, and the reasons for such nonJ2ayment, as far as can be ascertained by him. (Acts 1876, pp. 129, 131.)
Cross-references.--Bond book, see 40-1103.
13. Cancellation of bonds and coupons.--When he shall pay the interest or principal of the State debt, upon a warrant issued in his favor, he shall stamp or mark, in a plain and indelible manner, the coupons or bonds on which the payments are made, "paid" and deposit the same in the vault of the treasury, to be preserved in the Treasurer's office with the same care as the funds of the State, subject to the order of the General Assembly. (Acts 1876, pp. 129, 131.)
Cross-reference.--Canceled bonds disposed of, hoW, see 40-1104.
14. lapsed appropriations.--He shall not pay any appropriation due and not called for within six months after the expiration of the fiscal y~ar for which it is appropriated, but it shall revert to the general fund in the treasury. (Acts 1876, pp. 129, 131.)
Cross-references.--Fiscal year, see 99-901. Effect of failure to present county order~for payment, see 23-1607.
15. Reports filed, when.--All annual reports required to be made to the Governor by the Treasurer shall be made on or before the 31st day of December, anj shall be filed in his office, and by him laid before the GenE~ral Assembly, in connection with his first regular message thereafter. (Acts 1876, pp. 129, 132.)
Cross-references.--Reports furnished to State Librarian, see 101-204, 101-217. Meetin~s of General Assembly, see Const., Art.III, Sec. IV, Far. III (2-1603).
16. Contents of reports.--The annual reports shall contain only the available funds or cash in the treasury as the balance therein. He shall report, separa tely from the ComRtroller General, and under the head of IIAssets Belonging to the State, I all bank or railroad stocks or bonds, or other assets; the State Road to be reported without any stipUlated value. H"? shall make such trans fers or a 1tera t ions on his books as are necessary to comply with this section. All uncurrent funds shall remain in the treasury, and be omitted from the annual reports. (Acts 1859, p. 67.)

24
Cross-references.--Duties as Bond Commissioner, see Chapter 40-12. Certificate as to deposit by building and loan associations, see 16-203. Treasurer as custodian of vocational education funds, see 32-2203; of rehabilitation funds, see 32-2302.
40-1102. Expenses of departments of State Government, how paid~-The
costs and expenses of the maintenance and support of every department, commission, bureau, and other branch or agency of the State Government shall be paid out of funds in the State treasury by warrant of the Gover-
nor drawp on appropriations duly made by the General Assembly. ~cts 1927, p. 311.)
Cross-reference.--Branches, etc., of State Government created by special law and supported by appropriations made by special law, required to pay
fees, etc. into State treasury, see 92-3601.
Comptroller General is not authorized to draw warrant upon State Treasurer, nor is he authorized to countersign warrant drawn by Governor
when appropriation on which it is drawn has been exhausted. 185/244 (5)
(194 s. E. 749 ) .
1
: Mandamus: Where fund in treasury appropriated for deputy insurance , commissioner's salary was paid to Comptroller General as head of depart-
ffilent, fund so appropriated was exhausted from treasury, and Comptroller General could not be compelled by mandamus to request issuance of warrant and to countersign same; but he could be compelled to issue check on his account in bank to pay such salary, and it would be no defense that fund appropriated for the salary had been disbursed for other purposes or that
funds then on hand could not be legally used for such purpose. 185/244 (5 ) (194 S. E. 749 ).
40-1103. (229) Form of bond book.--The dates and maturity of all bonds
and coupons, the authority under which they were issued, by whom negotiated, or to whom sold, when negotiated and sold, shall be, as far as practicable, incorporated in a bond book to be prOVided by the Treasurer; and the paid and canceled bonds and coupons of this State, when paid, shall be pasted in such bond book in such manner they they can, at all times, be referred
to and verified. (Acts 1889, p. 644.)
Cross-reference.--Book of registration for State bonds, see 87-117.
,40-1104 0 (230) Canceled bonds and coupons; report to General Assembly.. --
All bonds and coupons of bonds, which shall be paid by the Treasure~ after having been canceled, shall be pasted in the spaces prOVided in said book, jaccording to their respective numbers; and it shall be the duty of the !committees of the legislature appointed to make examinations of the Treasurer's office, to make a memorandum by numbers and da tes of al.l pas t due bonds and coupons that are outstanding and unpaid and report the same to the General Assembly, and furnish to the Treasurer a copy of such memorandum. The Treasurer shall exhibit the same to each successive committee of each legislature, and such committee shall check the same, so as to verify such bonds or coupons as have been paid since the date of said
memorandum. (Acts 1889, p. 44; 1873, p. 15.)
Cross-references.--Report of State debt, see 40-1101, par. 12. Cancellation of bonds and coupons, see 40-1101, par. 13. Examination of Treasurer's accounts and vouchers, see 47-601.

25
Code of Georgia Annotated
T1tle 40 - Executive Department
Part IV - Comptroller General
Chapter 40--15 - Authority and Duties in General
40-1501. (242) Authority in General. The Comptroller General shall have
authority
1. Settling up business of prior years.--To settle up the business of the office for previous years.
Cross-reference. When Comptroller General may require services of
Attorney-General, see 40-1604.
2. Allowance of commissions.--To allow receivers and collectors of taxes their commissions, and to balance the tax books and other books of the office, upon satisfactory proof of payment or settlement. (Acts
1855-6, p. 276.)
3. Collection of unpaid taxes.--To collect all unpaid ad valorem
taxes of previous years, returnable to the tax receivers.
Editorial Note.--As to the power, duties, and functions of the Comptroller
General in relation to matters of taxation, see Chapter 92-45 and editoria notes following 92-4504, 92-4506.
~Bndamus: Comptroller General has no authority to bring mandamus against tax receiver and tax collector of county to make them collect back taxes.
182/623 (186 s. E. 670).
Unconstitutional license tax: Payment of license tax by foreign corporation upon demand by Comptroller General will not prevent actions for dam~ges against him in individual capacity for exaction, though the tax
was exacted under an unconstitutional statute. 156/789 (120 s. E. 120).
4. Administration of oaths. To administer oaths to all persons in like manner as judges of the superior courts and justices of the peace (Acts 1878-9, p. 180.)
Cross-references. Judges of superior courts may administer oaths, see
24-2616, par. 6. Justices of the peace may administer oaths, see 24-601,
par. 5.
40-15 02. (243, 1236) Making rules and regulations for collectors and
receivers.-The Comptroller General has authority to make all needful rules and regulations for the government of tax collectors and receivers, and any other rules that may be necessary to insure the prompt and faithful execution of the tax laws, if not in violation thereof or inconsistent therewith.
8ross-reference.--Suggesting improvements in revenue laws, see 40-1511. Cited. 85/603, 604 (11 S. E. 866).

26
40-1503. (1237) Furnishing collectors and receivers with rules and regu-
latlons.--These rules, when made, shall be entered in a book in his office, kept for that purpose, and be binding upon all successors until amended or repealed, copies of which shall be printed and furnished to receivers and collectors at the time of sending them the forms required.
40-1504. (1238) Publication of rules.--The rules shall also be printed
during the month of March every year in a public newspaper published at the seat of government, if in the discretion of the Comptroller General he shall deem it beneficial.
40-1505. (238, 246) Account of appropriations and other duties.--It shall
b8 the duty of the Comptroller General--
I. Account of appropriations.--To keep an account showing the several appropriations author~zed by law, the time when the same are drawn from the treasury, in whose favor and to what fund charged.
Cross-references.--Book of appropriation bills, see 47-501. Joint standtng
finance committee to examine accounts of Comptroller and Treasurer, see
47-601. Treasurer to keep account for each appropriation, see 40-1101, par. 3.
2. Countersigning warrants.--To examine, check and countersign all warrants upon the treasury drawn by the GO'vernor, President of the Senate, and Speaker of the House of Representatives, and charge the amount thereof to the funds on which they may be respectively drawn, previous to their being presented to the Treasurer for payment. In the event the Comptroller General is sick or for other reason 1s absent from his office for three or more days, the Deputy Comptroller General provided for hereinafter shall examine, check, and countersign said warrants during the absence of the Comptroller General. For such purposes the Comptroller is hereby authorized and directed to designate one of his employees as Deputy Comptroller General.
Cross-references.--Payment of salaries, see 40-1101, par. 11. Record of appropriations and warrants, see 40-1560. Treasurer to pay warrants only when countersigned by Comptroller, etc., see 40-1101, par. 1. Warrants of Governor, see 40-204.
Editorial Note.--Acts 1956, pp. 802, added the last sentence to paragraph
12). The remainder of the section was unchanged.
3. Audit accounts.--To audit all accounts against the State, and
allow or reject the same before they are submitted to the Governor.
Cross-reference.--Duty to examine accounts of Atlantic States Marine
Fisheries Comm'ss\on and report thereon to the Governor, see 45-128.

27
4. Examination of tax digests.--To examine all the digests of tax
returns forwarded to his office by the several tax receivers, and note and correct all mistakes therein, and notify the tax collectors of such corrections.
Cross-references.--Digest filed with Comptroller, see 92-4611. par. 7. Duties of tax collector, see 92-4901.
5. Settlement with tax collectors.--To settle with the several
tax collectors and all other persons indebted to the State, and in all cases where payments may be made at the treasury, to give receipts for the same, founded on the Treasurer's certificates.
r.ross references.--Execution against tax collector for failure to settle fits accounts, see 92-5504. Settlement with tax collectors, see 92-5002.
6. Executions against defaulting tax collectors.--To collect all
amounts due from defaulting collectors of taxes, and issue execution therefor against them and their securities.
Cross-reference.--Execution issued how and when, see 92-5501, 92-5504.
Appl ied. 27/69

Illegality to execution. 138/342 (75 S. E. 106.)
Injunction: Courts cannot enjoin execution issued by Comptroller General. 46/350.
Tax collector: Execution not issued against one who is not legal tax collector but who is assuming to exercise duties of office without lawful warrant or authority. 3/233.
7. Warrants only on fund appropriated.--To see that no draft or warrant shall be countersigned by him to be paid out of any appropriated fund after the same shall have been eXhausted; and in such case, or any Ga5~ of illegal payments from the treasury upon warrants countersigned by the Comptroller, he, as well as the Treasurer, with all their securit~ stlall be jointly and severally liable upon their several bonds for the repayment of such amounts, with all expenses of prosecution, to the State
Cross references.--Order of payment of county debts, see 23-1604. Treasurer to pay only for purpose for which fund appropriated, see 40110l~ par. 7.
Mandamus: Where fund in treasury appropriated for deputy insurance cOlnmtssioner's salary was paid to Comptroller General as head of departmsnt! fund so appropriated was exhausted from treasury, and the Comptroller General could not be compelled by mandamus to request issuance oj warrant and to countersign same; but he could be compelled to issue checl on his account in bank to pay such salary, and it would be no defense that fund appropriated for the salary had been disbursed for other purposes or that funds then on hand could not be legally used for such purpose. 185/244 (5) (194 S. E. 749).

28

8. Debts due State.--To receive and keep safely and collect all evidences of debt due to the State from any other source than taxes, and pay over the same to the Treasurer as soon as collected.

Crosa-reference.--Revenue from sources other than taxation, see 92-3501 to 92-3503.
9. Report from Attorney General.--To notify the Attorney General of all executions against defaulting tax collectors, and require of him annually a report of the state or condition of such executions prior to the session of each General Assembly.

Cross-reference.--Solicitor general to collect State claims when ordered by Comptroller, see 24-2908, par. 10.

10. Book of bonds taken.--To keep a book in which to enter all bonds taken and to file the originals in his office.

Cross-reference.--Time for filing official bonds, see 89-408.

11. Index of records.--To have made suitable indexes to the record bookS in his office.

12. Copies of papers, certification.--To certify under his official seal, at all times when necessary for public use, and, on application
and payment of his legal fees therefor, for private use, copies of any papers kept in his office. (Act 1799, Cobb, 1022. Act 1821, Cobb, 1023. Act 1823, Cobb, 1025. Ac~ 1838, Cobb 1029. Act 1839, Cobb 1031. Acts 1861, p. 81; 1923, Extra Sess., pp. 7, 9; 1931, pp. 7, 38; 1956, pp, 802,803,)

sCereo

ss-reference.--Fees 92-3503, par. 4.

for

copies

of

papers

to

be

paid

to

Treasurer,

Tax returns made to Comptroller General used as basis for assessment of local school tax on railroad property; certified copy of such returns obtainable on demand. 125/762 (2) (54 S. E. 725).

40-1506. (244) Must record appropriations and warrants.--He must keep in his office a well-bound book in which shall be entered, in alphabetical order, the full amount of all annual appropriations, setting forth the amounts under their several heads; all warrants that he may check and pass, together with the fund on which they are drawn, the
time, amount, and in whose favor drawn; and make all entries necessary to a true exhibit of the finances of the State. (Act 1839, Cobb, 1031.)

40-1507. (245) Record of tax collector's and receiver's bonds, keeping.-The Comptroller General shall keep a book in which to enter all bonds of tax collectors and receivers, and keep the same on file in his office (Acts 1855-6, p. 276; 1873, p. 21.)

Cross-references.-- Time for filing official bonds, see 89-408. Comptroller's authority to collect unpaid taxes, see 40-1501, par. 3. Fees and perquisites denied, see Const., Art V. Sec. II, Par. V (2-3105). Bonds of tax collectors, see Title 92, Public Revenue, Chapter 92-48.

29
40-1508. (239) Furnishitig list of wild lands.--The Comptroller General 8Gall furnish to each clerk of the superior court of the several counties a list, such as he has in his office, of all the lots of wild land lying in the county of such clerk, and it shall be the duty of the clerk of each county to fully prepare and keep a book of record of such wild lands in his county, properly indexed so that the same may be readily referred to. (t\cts 1880-1, p. 45.)
Cross reference.--Sale of wild lands by administrators, see 113-1704.
40-1509. (240) Speculation in wild lands forbidden.--The Comptroller Jeneral shall not, directly or indirectly, be interested or engaged in the purchase and sale of wild lands on speculation, on pain of removal by the Governor or the General Assembly.
Cross-reference.--Secretary of State not to speculate in wild lands, see 40-602.
40-1510. (241) Annual .report to Governor.--The Comptroller General shall make a report annually to the- Governor showing
1. Account current.--An account current, from his books, between the Treasurer and the State, of all receipts and payments, including amounts paid on the drafts of the President of the Senate and Speaker of the House of Representatives, as reported to him by the Treasurer.
2. Taxes paid, in defaUlt, etc.--A statement of the taxes paid to the State by each of the counties, as appears by the digest thereof, and the counties whose collectors shall be in default, and the amount of such default.
3. Claims due Sta~e.--A statement of all uncollected evidences of
debt due the State which remain in his office, the condition of the same, and the report of the Attorney General thereon.
4. Educational Fund.--A statement of the educational fund of the
State, its annual income, the amounts paid out, when and to whom.
5. Public debt.--A statement of the condition of the public debt
of the State, the amount of interest paid, and the fund from which paid.
6. Disbursing agents.--A statement of the accounts of all officers
and agents disbursing public money, and the names of such as shall have failed to comply with the laws relating to their offices and appointments and the several sums for which they shall be in default.
7. Salaries of public officer~.--The salaries and pay of all
officers of the State.
8. Incidental expenses.--Th~ incidental expenses of the General Ar:::sembly, Executive and Judicial Departments.
9. All other layments.--All sums paid or due to individuals by special contract. Act 1821, Cobb, 1024. Act 1828, Cobb, 1027. Act 1839. Cobb, 1032. Act 1843, Cobb, 1033. Acts 1931, pp. 7, 38.)

30
Cro9s-references.--Suggestion of improvements in revenue laws, see 401511. Quarterly report to Governor, see 40-1101, par. 8. Report filed at same time of Treasurer's report and communicated to General Assembly, Bee 40-1511. Report filed with state Librarian, see 101-204, 101-217. Report to General Assembly, see 40-1512.
40-1511. (243) Report of Comptroller General.--In his annual report the Comptroller General shall suggest such improvements in the revenue laws as his experience and observation may approve. His report shall be made at the time the State Treasurer's report is made and likeWise be communioa ted to the General Assembly. (Act 1821, Cobb, 1024.)
Cross-references.--Annual report to Governor, see 40-1510. Duties of State Revenue Commissioner to recommend improvements in tax laws, see 92-4505. Transfer of duties to state Revenue Commissioner, see 92-8405. Powers and duties of State Revenue Comn1ission transferred to State Revenue Commt&Rioner, Bee 92-8405. Comptroller General as Insurance Commissioner, see 56-101 at seq. Reports to State Librarian, see 101-204.
40-1512. (252) Report to General Assembly.--The Comptroller General shall make out for the use of the General Assembly--
1. Taxable property.--A table containing the taxable property and other items on the tax digest of each county for the year in which he makes his annual report.
2. Other items.--A table annually of the polls in each county for the year immediately preceding his report; the number of voters in each county at the general election next preceding his report; the amount drawn by each county from the educational fund; the amount drawn by each county for pay of members of the General Assembly; the total amount drawn by each county from the treasury, and the total amount of net tax paid into the treasury for the year preceding by each county. He shall also furnish such other statistical information connected with his office as may be useful to the General Assembly. The annual report of the Comptroller General shall contain only the available funds or cash in the treasury as the balance therein. He shall report, separately from the State Treasurer, and under the head of "Assets Belonging to the State," all bank or railroad stocks or bonds, or other assets; the State Road to be reported without any stipulated value. He shall make such transfers or alterations on his books as are necessary to comply With this section. All uncurrent funds shall remain in the treasury and be ommttted from the annual reports. (Acts 1859, p. 67; 1919, p. 313.)
Cross-references.--Copies of Comptroller General's reports to General Assembly to be furnished State Librarian, see 101-204. Annual report of State Superintendent of Schools to General Assembly, see 32-508.

31
Co~e of Georgia Annotated
Title 40 - Executive Department
Part VII - Department of Audits and Accounts. Supervisor of Purchases.
Chapter 40-18 - Department of Audits and Accounts
40-1801. Creation of Department. State Auditorj qualifications, election, term, vacancies .--'I'he Department 01 Audits and Accounts-
rs hereby created and es~ablishedj the head of said Department
sh~ll be an experienced auditor and accountant With not less tha.n five years experience as an ace ountant in the State Department of Audits and Accounts, or in a governmental agency of a similar nature or shall be a duly certified public accountant with a.t least five years practical experience in the duties for whioh he :1.s certified, and who, when named or elected as hereafter preseribed, and qualified, shall be known and designated as State AUditor.
The State Auditor shall be elected by the General Assembly in ,\;he following manner: A joint resolution which shall fix a definite time for the nomination and election of the State Auditor may be introduced in either branch of the General Assembly. Upon passage of said resolution by a majority vote of the membership of the Senate and House of Representatives it shall be the duty of the Speaker of the House of Representatives to call for the nomination and election of the State Auditor at the time specified in the resolution, at which time the name of the qua.lified person receiving a majority vote of the membership of the House of Representatives Shall be transmitted to the State Senate for confirmation. Upon the qualified person receiving a majority vote of the membership of the Senate, he shall be declared the duly elected State Auditor and the Governor of the State of Ge orgia sha 11 be notified of his election by the Secretary of the Senate. The Governor is directed to administer the oath of office to the State Auditor and to furnish the State Auditor with a properly executed commission of office certifying his election.
The term of office of the State Auditor shall continue until a su()cess or is elected as provided herein. In the event of a vacancy in the position of State Auditor at a time when the General Assembly is not 1n session it shall be the duty of the Governor of the State of Georgia and he is hereby empowered and directed to appoint a State Auditor possessing the qualifications as provided herein who shall serve as such State Auditor until the next regular session of the General Assembly at which time the nomination and election of a State Auditor shall be held by the General Assembly as provided herein. (Acts 1923, Extra. Sess., PP. 7, 8j 1943, p.361j 1945, P. 115.)
Cross-reference.--Budget Bureau, see Chapter 40-4.
Editorial Note.--The Reorganization Act of 1931, PP. 7, 8, con-
tinuea the Department of Audits and Accounts in force and effeot.

32
40-1802. Salarz, expenses, duties, and bond of state Auditor.-The sta.te AUditor shall be paid a salary of $6,000 per annum, payable monthly, and shall also be paid his actual traveling expenses while 8ctua.lly engaged in the performanoe of his official dultes, to be proved by his sworn itemized statement and approved by the Governor. Provided thRt the salary of the state Auditor shall be inoreased by the amount of $1,000 for each five years of oontinuous service as an employee or ~fflcia] in the state Department of AUdits up to and inoluding 20 years. The state Auditor shall devote his entire time to the performance of ~he duties of hie offioe, and shall give bond to be filed With and approved by the Comptroller General, in the sum of $10,000, payable to the Governor and his success ors in offioe, 0 ondi tioned that he sha 11 truly and faithfully perform the duties of his offioe and shall aooount for all public funds coming into his hands or under hie oontrol, the premium on which bond shall be paid by the state. The AUditor shall n~t receive pay for any other service rendered the state. (Aots 1923, Extra. Sess., P. 8j 1943, pp. 361, 363J 1947, P. 670.)
Editorial Note.--The last sentence of the seotion as it appears above Is from the Act of 1943. That Aot does not purport to amend this sectIon. It purports only to amend 40-1801. The sentence is section 2 of the Act. It has no reference to anything in the Act and is not referred to in the title. If it has any validity at all, which is doubtfUl, it is properly a part of this seotion. The proviso was added by the Act of 1947~
Acts 1953, p. 613 et seq., codified as 89-707 through 89-712, modified this section by setting up a new schedule of oompensation and allowanoes for certain Statehouse offioers. It should be noted, that aotJording to 89-712, the provisions of prior laws, suoh as this section, were not repealed by the Aot of 1953, but merely remain suspended pending the repeal of such Act.
LIO-1802.1. Dally allowance to Auditor for maintenanoe ex ense.-The state Auditor 1s au or ze an direc e 0 reoeive a a1 y . allowance for maintenanoe expense at the same per day rate aB is authorized by the state Consltution for the members of the General Assembly, provided, however, this allowance shall be inclusive of and not in addItion to hotel and subsistenoe expenses inourred while on offioial business requiring travel. (Aots 1946, P. 697.)
~O-1803. ~J~hQr~yy of appointment in State AUditor; examiners, (:t~...~E~~~_.~_a.nd ~J~~2~ra_ehe!'s e_.. -1rhe sta tie Aud 1tor is hereby authorized and em1101'lprea to appoint ana employ the folloWing officers and assistants, eaoh of whom shall hold offioe during the pleasure of the state AUditor, t 0 wit:
(a) One assistant State Auditor at a salary not to exoeed $4,000 per a.nnum.
(b) Two examiners at a salary not to exceed $3,000 per annum.
( 0 ont inued )

33
(c) Two assistant examiners at a salary not to exceed $2,400 per annum.
(d) A stenographer-bookkeeper at a salary not to exceed $1,800 per annum.
(e) All the employees of the Department shall be patd their actual traveling expense while actually engaged in the performance of their official duties, to be proved by their sworn itemized statements approved by the State Auditor: Provided, no expense shall be paid to any employeef of the Department while they are engaged in the performance of duties in Fulton County. (Acts 1925, pp. 256, 257.)
Editorial Note.--While this section has never been formally repealed, the salaries referred to are now fixed by the Department head. As to power of State Auditor to make payments from funds appropriated to the Department, see 40-2520.
40-1804. Quarters of the Department: equipment, furniture, etc.-The Department of Audits and Accounts shall be provided with suitable apartments at the State capitol, furnished at the State's expense, as may appear proper and necessary by the Governor, and said Department shall be furnished from time to time, upon approval of the Governor, necessary equipment, furniture, fuel, light and other proper conveniences for the transaction of the business of said Department, the expense of which shall be paid by the State in the same manner as the expenses of other offices at the capitol are paid. (Acts 1923, Extra. Sess., p. 12.)
40-1805. Duties and powers of State Auditor.--The duties and powers of the State Auditor shall be as follows:
(a) To deVise, an~ with the approval of the Governor, to promulgate, install, and establish forms and records for the collecting and paying out of all moneys, funds and revenues of the State and to insure the protection and proper use of all stores, equipment and property of the State.
(b) To thoroughly examine all financial transactions of all the State departments, institutions, agencies, commissions, bureaus, and officers and to keep such accounting records as are necessary to provide and maintain a current check upon the fiscal affairs and transactions of all State departments, institutions, agencies, etc.
(c) To examine and thoroughly audit, at least once a year, and more frequently if possible, each and all of the books, records, accounts, vouchers, warrants, bills and all other papers and records of each and every department, institution, agency, commission, bureau and officer of the State which or who receives funds from the State or which is maintained in whole or in part by pUblic funds or fees or commissions; and upon the completion of each such audit the State Auditor shall prepare a complete report of the same in triplicate, one copy of which he shall file with the official tn charge of the department, institution, etc., so examined, one copy of which he shall transmit to the Governor, and the third copy of which shall be filed in the office of the State Auditor as a permanent record and for the use of the press of the State; and in which report the State Auditor ~hall call special attention
(continued)

40-1805 (continued)
to any illegal, improper or- unnecessary expenditures, all failures to keep records and vouchers required by the law, and all inaccuracies, irregularities and shortages, and shall make specific recommendations for the future avoidance of the same.
(d) To prepare annual and, whenever required, speoial reports to the Governor and the General Assembly, showing the general finanoial operation and management of each state department, institution, agency, commission and bureau, and whether or not the same is being handled in an efficient and eoonomical manner, and oalling speoial attention to any excessive cost of operation or maintenanoe, any exoes.sive expense, and any excessive prioe paid for goods, supplies or labor by any suoh department, institution, agenoy, etc.
(e) To make special examination into an report of the plaoe and manner in which the funds of the State are kept by the several departments, institutions, agenoies, commissions, bureaus, arid officers after the same have been drawn from the State to treasury or after the same have been collected and report who has possession of the same or where the same are deposited, and whether the same draw interest, the rate of interest, and whether the same are properly proteoted by bond: Provided, this Chapter shall hot be oonstrued to authorize the State Auditor to remove or in any way interfere with any funds so deposited.
(Acts 1923, Extra. Sess., p. 9.)
Cross-references.--State Auditor as assistant direotor of the budget, see 40-401. state Auditor's power to summon Witnesses and CG~
pel production of documentary eVidence, see 40-1815. Duty to investi-
gate every department of State Government on information of misoonduct
or mismanagement, see 40-1817. Hearing by AUditor, see 40-1818. Expenses of investigation, see 40-1819.
40-1806. S ecial examinations and
Either e Governor, e appropria ons commi ee 0 e House of Representatives, or the app~opriations committee of the Senate shall have the right and authority to airect and require the State Auditor to make a special examination into and audit of all the books, records, accounts, vouchers, warrants, bills and other papers and reoords, and the finanoial transaotion and management of any department, institution, agency, oom-
mission, bureau or offioe of the State at any time. (Aots 1923, Extra. Sess., p. 11; Extra Sess., p. 94.)
40-1807. Audit of accounts of motor fuel distributors and of
cigar and cigarette dea1ers.--The State Auditor shall, upon the request of either the Governor or the Comptroller General, make an examination into and report upon the neoessary books, records and aooounts of those persons, firms and corporations required by law to pay an oooupation tax as distributors of motor fuels, and also, at the request of the State Revenue Commission, of those persons, firms and oorporations required by law to pay a tax upon the retail sales prioe of oigarettes
and cigars, as prescribed in seotion 92-2202; said examination to be
made at such time as shall be fixed by the Comptroller General or State Revenue Commissioner, as the case may be, and for the purpose and to the extent of ascertaining whether or not said tax shall have

35
40-1807 (continued)
been paid and collected as provided by law. (Acts 1923, Extra. Sess., p. IIi 1931, Extra. Sess.; pp. 11, 12.)
Cross-reference.--Taxation of motor fuel distributors j see Title
92, Public Revenue, Chapter 92-14.
40-1808. Duty of State departments to produce books and records
for examination, etc.--All officers, agents, employees, departments, institutions, commissions and bureaus of the State are hereby directed and required to conform to and comply with all rules, regulations and forms devised, promulgated and installed by the State Auditor in conformity with this Chapter, and shall produce and turn over to the State Auditor or his assistants for examination and audit, whenever demanded by said State Auditor, all of their books, records, accounts, vouchers, warrants, bills and other papers dealing with or reflecting upon the financial transactions and management of such department, institution, agency, commission, bureau, or officer, including any and all cash on hand, but not including cash in bank, the amount of cash in bank to be ascertained by certificate furnished the State Auditor by the bank.
(Acts 1923, Extra. Sess., p. 11.)
40-1809. Cooperation required of State Auditor.--The State Auditor
shall cooperate with and shall furnish all information requested by the
appropriations committees of the General Assembly. (Acts 1923, Extra. Sess., p. 12; 1931, Extra. Sess., p. 94.)
40-1810. Effect of Chapter on State Banking Department.--The pro-
visions of this Chapter shall in no way affect the rights, powers, and
duties of the State Banking Department. (Acts 1923, Extra. Sess., p. 12; 1931, pp. 7, 40.)
40-1811. Authority of State officials to employ other agencies.--
The State Auditing Department shall audit all State institutions. No official of the State shll have authority to employ or hire any other
auditing agency. (Acts 1925, pp. 256, 257; 1931, pp. 7, 40.)
40-1812. Audit of books and accounts of State University and
branches, county superintendents of schools, schools receiving State aid, etc.--It shall be the duty of the Department of Audits and Accounts to thoroughly audit and check the books and accounts of the county superintendents of schools and treasurers of local school systems, of municipal systems, of the several units of the University System and all other schools receiving State aid and making regular and annual reports to the State Superintendent of Schools, showing the amount received, for what purpose received, and for what purposes expended. All such funds held by officials must be kept in banks separate from their individual bank
accounts. (Acts 1919, p. 315; 1931, pp. 7, 40.)
(continued)

36
40-1812. (continued)
Cross-references.--Accounts of treasurer of local school district to be audited, see 32-1123. Branches of University of Georgia, see 32-103. Athletic associations not audited, see 32-154.
Editorial Note.--The Reorganization Act (Acts 1931, PP. 7, 40.)
repealed so much of the above section as provided for the appointment of a bookkeeper and accountant by the state Superintendent of Schools~ and transferred the powers, duties, and functions of such bookkeeper or accountant to the Department of Audits and Accounts. See 40-1905.
Cited. 52 Ape. 257 (183 S. E. 140~) Bank deposits: This section means that if the official deposit funds
are in banks, the account must be kept separate from individual accounts; it does not require officials to deposit funds in banks.
92 F. (2d) 673.
Where surety of county school superintendent sued its principal for indemnity, after payment of judgment against surety for loss of deposit in failed banl{, it was no defense that surety when sued had failed to urge as defense that deposit was not kept in bank separate from Buperintendent's individual account; especially when principal knew of, and participatpo in suit against surety and made no suggestion or request that surety r~1y on provision of this section, Id.
40-1813. Forms for departments, etc., preparation of.--The State Auditor shall prepare and publish, by and with the approval of the Governor, complete forms applicable to the business transacted in each of the several boards, offices, institutions, departments, and commission of the Executive Department of the State Government, the same to be as uniform as the business respectively transacted therein shall permit, and it shall be the duty of each of said boards, offices, institutions, departments, and commissions, as directed by the Governor, to employ such forms and none other in recording their several financial
transactions of every nature whatsoever. (Acts 1931, PP. 7, 9.)
40-1814. Reports of State Auditor showing personnel of departments, salaries, etc.--The State Auditor shall publisn by JUly 1 of each year a report showing the entire personnel of every office, institution, board, department, and commission in the Executive Department of the State Government, listing name, address, duty, salary, and expense incurred by such individual, which information shall be allocated to the respective office, b~rd, commission, institution, or department affected, the total cost of the maintenance of which for the period audited shall be stated with the appropriation allowed for the support of same. Copies of said report shall be furnished
to each member of the General Assembly. (Acts 1931, PP. 7, 9.)
Cross-reference.--Purchase of automobiles and mileage allowances
see 40-2001 et seq.

37
40-181. Power to rocure evidence.--For the purpose of marc
complete y discharging the duties resting upon him and to discover the truth and to make his reports speak the truth in all matters handled by him, the State Auditor is hereby empowered to summon witnesse3, to administer oaths, and to take the testimony of such witnesses and to compel the production of documentary evidence at such time and place as he may designate for the purpose of investigating and determining the conduct and record of the employees and officials of any department of the State Government. (Acts
1937, p. 421.)
Cross-reference.--Duties of State Auditor, see 40-1805.
Ed ltorial Note. --rr'he Act of 1937 purports to amend 40-1805 by adding a new section lito be known as section 40-1805 (a)" This
new section is divided into five subsections designated as (a), (b), (c), (d), and (e). In order to preserve the numerical arrangement of the Code, these subsections have been renumbered and appear
as 40-1815 to 40-1819, inclusive.
}~0-1816. Contempt of court. --In the event any witness summoned to appear in person or to produce documents fails or refuses to respond to such summons it shall be the duty of the State Auditor to certify said fact of refusal to a judge or the superior court of the coUt!vY wherein such witness was required and directed to appear for the purpose of giving testimony or producing documentary evidence, who shall immediately lssue an order to such party commanding him or them to appear lrrunediatcly before said auditor for the purpose of giving testimony or producing documentary evidence as directed in the notice or summons given by said State Auditor. In the event of failure to respond to such summons of said court such party shall be guilty of contempt of that court and shall be dealt with by the
court accordingly. (Acts 1937, pp. 421, 422.)
40-1817. Duty to invcstigate.--It is hereby Imde the duty of
the State Audltor to make the investlgatlon herein provlded for as a part of his audit of each and every department of the State Government. When there are facts, records, circumstances or information that indlcate mismanagement or misconduct on the part of any official or employee of any department of the State Government either during a past or present administration, it shall be the duty of the Auditor to make the full investigation herein provided
of such department, official, or employee. (Acts 1937, pp. 421, 422.)
40-1818. Hearing.--The hearing herein provided for shall be
held in the county where the department or institution being investtgatcd is located and shall be presided over by the State Auditor. The Auditor shall at any time when he deems necessary request of the Governor legal assistance in the conducting of such investigation. Whereupon the Governor shall designate the Attorney General, his ussistants, or any special Assistant Attorney General for the purpose of assisting the Auditor in the prosecution of
such investi~ation. (Acts 1937, pp. 421, 422.)

38
40-1819. Expenses, The state Auditor is hereby authorized to spend any available money to cover the expenses of suoh investigations, and to charge the same to the expenses of his department. (Aots 1937, PP. 421, 423.)

39

Code of Georgia Annotated

Title 40 - Executive Department Part VII - Department of Audits and Accounts.
Purchases Chapter 40-19 - Supervisor of Purchases

Supervisor of

40-1901. Establishment of office; appointment; term of office; salary and bond; restriction upon right to run for other office. There is hereby established as a separate and distinct agency of the State of Georgia the office of Supervisor of Purohases. The Supervisor of Purchases shall be appointed by the Governor and confirmed by the Senate to serve a term of four years, at a salary of $7,500 per annum, payable monthly. Before entering upon the duties of his office, the Supervisor of Purchases shall give a good and sufficient surety bond in the amount of $15,000, to be approved by the Governor and payable to the Governor and his successors in office.
No person who serves as Supervisor of Purchases shall be eligible, except as hereinafter provided, to offer as a candidate in any primary, special or general election for any State or Federal elective office, nor to hold any such office, except as hereinafter provided, during the time he serves as Supervisor and for a period of 12 months after the date he ceases to serve as Supervisor: Provided, however, nothing contained herein shall prevent the Supervisor from being appointed to any such office, nor disqualify such Supervisor to run in any such election to succeed himself in any office to which he might have been appointed, nor to hold such office in the event he is elected thereto and qualifies under the requirements of law. (Acts 1931, PP. 7, 8; 1937, pp. 503, 505; 1939, PP. 160, 164; 1950, p. 280; 1955, PP. 643, 644.)
110-1902. Duties, power, and authority.--The Supervisor of Purchases shall have power and authority and it shall be his duty sUbject to the provisions of this Chapter:
A. To canvass all sources of supply, and to contract for the purchase of all supplies, materials and equipment required by the State Government, or any of its departments, institutions or agencies under competitive bidding in the manner and subject to the conditions hereinafter provdied for.
B. To establish and enforce standard specifications which shall apply to all supplies, materials, and equipment, purchased or to be purchased for the use of the State Government for any of its departments, institutions or agencies.
C. To contract for all telephones, telegraph, electric light power, postal and any and all other contractual purchase and need of the State Government, or any of its departments, institutions or agencies; or in lieu of such contract to authorize any department,institution, ~r agency to purchase or contract for any of all such services.

40
40-1902 (continued)
D. To rent or lease all grounds, bUildings, offices or other space required by any department, institution or agency of the state Government: Provided, this shall not include temporary quarters for state highway field forces or convict camps, or temporary places for storage for road materials.
E. To have general supervision of all storerooms and stores operated by the state Government, or any of its departments, institutions, or agencies; to provede for transfer and/or exchange to or between all state departments, instItutions and agencies, or to sell all supplies, materials and equipment which are surplus, obsolete or unused; and to maintain inventories of all fixed property and of all movable equipment, supplies and materials belonging to the state Government, or any of its departments r institutions, or agencies.
F. To make provision for and to contract for all state printing, including all printing, binding, paper stock and supplies or materials in connection with the same except as hereinafter provided. And for the purpose of obtaining bids on printing he shall have the power to divide the printing into various classes, and to provide stipUlations and specifications therefor and advertise, receive bids and contract separately for the various classes, and for the purpose of making effective this Chapter, Chapter 90-1 of the Code of 1933 is hereby repealed: Provided, that nothing contained in this Chapter shall be construed to interfere With or change the law with regard to the printing of the reports of the Supreme Court and the Court of Appeals of Georgia as is set forth in Chapter 90-2.
G. It shall be the duty of the Secretary of State to employ a competent person or persons to compile the Acts and Resolutions of the General Assembly of Georgia, and such person or persons compiling such Acts and Resolutions shall be paid, out of the funds appropriated for expenses of the General Assembly, such amount as may be agreed upon between such persons and the Secretary of State: Provided, however, that such amount shall not in any event exceed the sum of $1,000. (Acts 1937, Pp. 503, 505; 1943, p. 406.)
Cross-reference. Duty of Secretary of State to send certified copies of Acts to clerks of superior courts within 30 days after approval. see 40-605. Editorial Note. This is a new section. Original section 40-1902 was expressly repealed by the Act of 1937, Which substituted for it paragraphs A to F, inclusive, Paragraph G was added by the Act of 1943.
40-1903. Preference to Georgia products, etc. It shall be the duty of the Supervisor of Purchases in the purchase of and in contracting for any supplies, materials, and equipment and/ or printing to give preference as far as may be reasonable and practicable to such materials, supplies, equipment and/or printing as may be manufactured or produced in the State of Geor~ia. It being the intention of this section to use in so far

1! 1
as is practicable Georgia pr2ducts and/or Georgia labor: Pl'21vided, h:wever, that in giving such preference no sacrifice or loss in price :r quality should be permitted, and pr8vided further that preference in all cases shall be given to surplus products or articles produced and/or manufactured by other State
departments, institutions, or agencies which are available for distribution. (Acts 1937, PP. 503, 511.)
Editorial Note. This section supersedes original section 110-1')03 ::m the same sUbject.
40-1904. Stationery, rep2rts, and pamphlets to be product of cotton or cotton fabrics. All stationery, reports, and pamphlets usea, other tllan those going into the permanent records, shall be of material produced from cott~)!1 or cotton fabrics. (Acts 1931, p. 1055.)
40-1905. Power to examine records, etc.; reports of purchases.-The Supervls~r of Purchases shall have power to examine SoakS, records, and papers of any board, department,. commission, institution, and office of the State Government, relative to purchases, and to require those in control thereof to furnish him With copies of any and all records pertaining thereto, and at the direction of the Governor he shall report in such detail as he may be required any purchase or purchases made by any such branch ;)f the state Government. (Acts 1931, pp. 7, 8.)
Editorial Note. Section 5 of the Reorganization Act (Acts 1931, p. 7) a60lished the Commissioners of Public Printing and vested in the Supervisor of Purchases their powers, duties, and functions. Section 6 of that Act abolished the office of Superintendent of Public Printing and vested his powers, duties and functions in the Supervisor of Purchases. Neither of these sections is codified, but changes effected by them have been made in Title 90, PUblic Printing.
Section 96 of the Reorganization Act abolished the office of
b ooklceeper and ac c ~:JUntant appoint by the State super intendent of Schools and the office of assistant to the State school auditor, and transferred the powers, duties, and functions of such offioers to the Department of Audits and Accounts. See lW-1812 and note follOWinG 32-~)011.
110-1906. Rules and reGulations; transfer Purchasinr.: Board. The SupervL30r of Purchases 1s authorize and empo\\ered by this Chapter 00 make all rules, regUlations and stipUlations and to provide specifications to carry out the terms and provisions of this Chapter as may be necessary for the purpose of this Chapter and such rules and regUlations as prescribed by said Supervisor of Purchases shall be published in pamphlet form and all the departments of the State Government shall be furnished With copies of the same. All rights, powers, and duties heretofore dev81ving upon the State Purchasing Board are hereby transferred to and vested in the Supervisor of
Purchases. (Acts 1939, PP. 160, 164.)
Editorial Note. The Act of 1939 abolished the State Purchasing Board and transferred its duties to the SuperVisor of Purchases.

L~0-1906.l. Duty to purchase all supplies, materials, etc.; requIsitions; auth8rity of 8ther agencies, institutions, etc., to purcnase. The Supervisor of Purchases shall have the power and auth or lty and it sha 11 be his duty subjec t to the provisions of this Chapter to contract for -the purchase of all supplies, materials and equipment required by the State Government. After sources of supply have been established by contract under competitive bidding and certified by the Supervisor of Purchases to the different departments, instltations, and agencies of the State as provided for in this Chapter, such institutions, agencies~ or departments of State shall make requisitions on blanks to be approved by the Supervisor of Purchases for such supplies, materials, and equipment required by them from the supply so certified and except as heTein otherwise provided for, or unless such departments, institutions and a~encies of State obtain written authority from the Supervisor of Purchases to do so, it shall be unlawful for them or any of them to purchase any supplies, materials or equipment from other sources than as certified to them by the Supervisor of Purchases. (Acts 1950~ pp~ 181, 182.)
IW-1907. De artments and institutions to farnish estimates and inventories. I saIl e e ~. y a a1 epaTtmen 5, ins t Itut;1ons, or agenc ies of the State GoveTnment t 8 furnish to the Supervisor of Purchases when requested and on blanks to be approved by him, tabUlated estimates of all supplies, materials and equipment needed and reqUired by such department, institution, or agency for such periods in advance as may be directed by the Supervisor of Purchases, and it shall further be the duty of all departments of State, institutions, or agencies to furnish said Supervisor of Purchases inventory from time to time of supplies, materials, or equipment on hand when requested by the SuperVisor of Purchases. (Acts 1937, PP. 503,
50rr. )
40-1908. Estimates to be compiled. The Supervisor of Purchases shall compile and consolidate all such estimates of supplies, materials and equipment needed and required by all State departments, institutions, and agencies to determine the total reqUirements for any given commodity. (Acts 1937, Pp. 503, 508; 1939, pp. 160, 165.)
40-1909. Advertisement for bids. If the total requirement of any given c:mmodity will involve an expenditure in excess of $1,000, sealed bids shall be solicited by advertisement in a newspaper of State-wide circulation at least once and at least 10 days prior to the date fixed for opening of the bids and awarding 0f the contract: Provided, other methods of advertisement may be adopted by the Supervisor of Purchases, When such other method is deemed more advantageous for the partiCUlar item to be purchased. Regardless of the amount of expenditure,

43
it shall be the duty of the Supervisor of Purchases to solicit bids direct by mail from reputable o~ners of supplies. (Acts
1937, pp. 503, 50<'3; 1939, pp. 160, 165.)
Editorial Note. The Act of 1939 changed $2,000 in the second line of this section to $1,000 and eliminated the requirement
of the State Purchasing Board's consent to adoption of methods 8f advertisement.
40-1910. Competitive bids; lowest bid to be accepted.
Except as otherwise provided for in this Chapter, all contracts for the purchase of supplies, materials or equipment made under the provisions of this Chapter shall, wherever possible, be based on competitive bids and shall be awarded to the lowest responsible bidder, taking into consideration the quality of the articles to be supplied and conformity with the standard specifications which have been established and prescribed, the purposes for which said articles are required, the discount allowed for prompt payment, the transportation charges and
the date or dates of delivery specified in the bid. (Acts 1937, pp. 503, 508; 1939, PP. 160, 165.)
40-1911. Rules for competitive bidding. Competitive bids on
such c8ntracts shalf be received in accordance with rules and regUlations to be adopted by the Supervisor of Purchases, which rules and regualtlons shall prescribe among other things, the manner, times and places for proper advertisement for such bids, indicatjng the time and place when such blds will be received, the article for which said bid shall be SUbmitted, and the standard specification prescribed for such article, the amount or number of the articles desired, and for which the bids are to be made, and the amount, if any, of bonds Dr certified checks to accompany the bids. Any and all bids so
received may be rejected. (Acts 1937, PP. 503, 509; 1939, pp. 160, 165.)
Cross-reference. Form of letter, proposal, and affidavit to be
used on bids, see 40-1933.
Editorial Note. The Act of 1939 eliminated the requirement
of approval of the rules and regulations by the State Purchasing Board.
40-1912. Bids to be recorded and open to inspection; publication
of names of bidders, etc. Every bid conforming to the terms of the advertisement herein provided for, together With the name of the bidder, shall be recorded, and all such records with the name of the successfUl bidder indicated thereon, shall after award or letting of the contract, be subject to public inspection upon request. The Supervisor of Purchases shall also, within five days after the award or letting of the contract, publish the name of the successful bidder on a bulletin board in a conspecuous place in his office, so that it may be easily seen by the pUblic. Said public notice on the bUlletin board shall also show the orice or the amount for which the contract was let, and

44
the commodities covered by said contract. The Supervisor of Purchases shall also, within five days after the award or letting of the contract, publish on said bulletin board the names of all persons whose bids were rejected by him, together with a statement giving the reasons for such rejection. All said information herein required to be placed on the bulletin board in a conspicuous place at the office of the Supervisor of Purchases shall also be recorded in a permanent book to be kept by the Supervisor of Purchases, which said record shall always be subject to public inspection upon request. (Acts 1937, PP. 503, 509; 1939, pp. 160, 165.) Editorial Note. The Act of 1939 added everything after the first sentence of this section.
40-1913. Bids to be opened in public; bond of successful bidder. Bids shall be opened in public by the Supervisor of Purchases who shall canvass the said bids and award contract according to the terms of this Chapter. A proper bond for the faithful performance of any contract shall be requried of the successful bidder in the discretion of the Supervisor of Purchases. (Acts 1937, pp. 503, 509; 1939, pp. 160, 167.)
40-191l~. Departments and institutions to be notified. After the contracts have been awarded, the Supervisor of PurchaBes shall certify to the several departments, institutions, and agencies of the State Government the sources of the supplies and the contract price of the various supplies, mater.ials, and equipment so contracted for. (Acts 1937, PP. 503,509; 1939, PP. 160, 167.)
40-1915. Requisitions for supplies; unlawful purchases. After sources of supply have been established by contract under competitive bidding and certified by the Supervisor of Purchases to the different departments, institutions and agencies of State as provided for, such institutions, agencies or departments of State shall make requisition on blanks to be approved by the Supervisor of Purchases for such supplies, materials, and equipment required by them from the supply so certified, and, except as herein otherwise provided for, it shall be unlawful for them or any of them, to purchase any supplies, materials or equipment from other sources than as certified to them by the Supervisor of Purchases. One copy of the requisition shall be sent to the Supervisor of Purchases when the same is issued. (Acts 1937, PP. 503, 509.)
40-1916. Purchases through Supervisor not mandatory in specified cases. Unless otherwise ordered by the Supervisor of Purchases, the purchase of supplies, materials and equipment through the Supervisor of Purchases shall not be mandatory in the following cases:
(a) Technical instruments and supplies and technical books and other printed matter on technical subjects; also manuscripts, maps, books, pamphlets and periodicals for the use of the State library or any other library in the State supported in whole or in part by State funds.

45
(b) Live stock for slaughter, and perishable articles such as fresh vegetables, fresh meat, fish and oysters, butter, eggs, poultry and milk: Provided, no other article shall be considered perishable within the meaning of this clause, unless so classified by the Supervisor of Purchases.
(c) Emergency supplies of drugs, chemicals and sundries, dental supplies and equipment. In the purchasing of emergency supplies under this paragraph it shall be the duty of the department making said purchases to report same to the Supervisor of Purchases, giving the circumstances necessitating such purchases.
(d) Nothing in this Chapter shall be construed to give to the Supervisor of Purchases any supervision over the selection or purchase of school textbooks which is, by law, vested in the Department of Education. (Acts 1937, pp. 503, 510; 1939, pp. 160, 171.) Editorial Note. The Act of 1939 struck the words "with the approval of the State Purchasing Board!! from the second and third lines and from the end of subsection (b).
40-1917. Emergency purchases; report. In case of any emergency arising from any unforeseen causes, including de~y by contractors, delay in transportation, breakdown in machinery, or unanticipated volume of work, the Supervisor of Purchases shall have power to purchase in the open market any necessary supplies, materials or equipment for immediate delivery to any department, institution or agency of the state Government. A report on the circumstances of such emergency and his transactions thereunder shall be duly recorded in a book or file to be kept by the Supervisor of Purchases. (Acts 1937, PP. 503, 511; 1939, Pp. 160, 172.)
Editorial Note. Requirement that report on circumstances of any emergency be transmitted to the State Board of Purchases was eliminated by the Acts of 1939.
40-1918. Contracts not through Supervisor. Whenever any department, institution, or agency of the State Government, required by this Chapter and the rules and regulations adopted pursuant thereto applying to the purchase of supplies, materials or equipment through the Supervisor of Purchases shall contract for the purchase of such supplies 6 materials, or equipment contrary t~ the provisions of this Chapter or the rules and regulations made hereunder, such contract shall be void and of no effect. (Acts 1937, pp. 503, 511.)
40-1919. Officer purchasing personally liable. If any such department, institution, or agency purchases any supplies, materials or equipment contrary to the provisions of this Chapter or the rules and regulations made hereunder, the executive officer of such department, institution, or agency shall be personally liable for the cost thereof, and if such supplies, materials, or equipment are so unlawfUlly purchased and paid for out of the State funds, the amount thereof may be recovered in the name of the State in an appropriate action instituted therefor. (Acts 1937, Pp. 503,511.)

46
40-1920. Preference to local sellers. The Supervisor of Purchases in awarding of contracts, all things being equal, shall give preference to local sellers of Georgia products when it is possible to do so and the interest of the State is not sacrificed, and the quality and prices permit it. (Acts 1937, pp. 503, 5 12 .)
40-1921. Supervisor may adopt and change rules and regulations. The Supervisor of Purchases may adopt, modify, or abrogate, rules and regulations covering the following purposes, in addition to those authorized elsewhere in this Chapter:
(a) Requiring monthly reports by State departments, institutions, or agencies of stocks of supplies and materials and equipment on hand and prescribing the form of such reports.
(b) Prescribing the manner in which supplies, materials and equipment shall be delivered, stored, and distributed.
(c) Prescribing the manner of inspecting deliveries of supplies, materlals, and equipment and making chemical anc~/or physical tests of samples submitted with bids and samples of deliveries to determine whether deliveries have been made to the depa~tments, institutions, or agencies in compliance with specifications.
(d) Prescribing the manner in which purchases shall be made by the Supervisor of Purchases in all emergencies as defined in section 40-1917.
(e) Providing for such other matters as may be necessary to give effect to the foregoing rules and provisions of this Chapter. (Acts 1937, PP .. 503, 512; 1939, pp. 160, 173.)
Editorial Note. The reference in subsection (d) is to section
8 of the Act U~0-1906). As section 8 does not relate to emergency purchases by the Supervisor of Purchases, it seems that section 9
(l-W- 1917) was intended. 'The requirement of approval of adoption, etc., of rules and regulations by the state Purchasing Board was eliminated by the Act of 1939.
40-1922. Standardization committee; transfer of duties) etc., to Supervisor of Purchases. All rights, powers and duties heretofore devolving upon the standardization committee are hereby transferred to and vested in the Superviosor of Purchases. (Acts 1939, Pp. 160, 171~.)
Editorial Note. The Act of 1939 abolished the standardization c ommi ttee.
40-1923. Same. (Repealed by Acts 1939.)
40-1924. Same; adoption of standard specifications. It shall be the duty-or the Supervisor of Purchases to formUlate, adopt, establish, and/or modify standard specifications applying to st~te contracts. In the formUlation, adoption and/or modification of any standard specifications, the Supervisor of Purchases shall seek the advice, assistance, and cooperation of any state department, institution, or agency to ascertain its precise

LI7

requirements in any given c~mm~dity. Each specification adopted for any commodity shall in so far as possible satisfy the requirements ~f a maj~rity of the state departments, institutions, or agencies whion use the same in c~mm~n. After its adoption each standard specification shall until revised or rescinded apply alike in terms and effect to every state purchase of the commodity described in such specifications. In the preparation of any standard specifications, the Supervis~r of Purchases shall have p~wer to make use ~f any state laboratory for chemical and physical tests in the determination of quality. (Acts 1937,
pp. 503, 513; 1939, pp. 160, 174.)

Ed1t~rial N~te. The Act of 1939 substituted "Supervisor of purchase::>" for "standardization committee" in the second, fifth, and fourteenth lines of this section.

40-1925. Financial intere~t in purchases forbidden. Neither

the Supervisor of Purchases, nor any assistant ~f his, shall be

financially interested, or have any personal beneficial interest

either directly or indirectly, in the purchase of, or contract

for any materials, equipment, ~r supplies, nor in any such firm,

corporation, partnership or association furnishing any suoh

supplies, materials, or equipment t~ the State Government, or any

of its departments, institutions or agencies. (Acts 1937, PP. 503,

51 LI )

,

40-1926. Acceptance of rebates, gifts, etc., unlawful.It shall be unlawful for said Supervis~r or Purchases, ~r of any of his assistants or employees, to accept or receive, directly or indirectly, from any person, firm, or corporation to whom any contract may be awarded by rebate, gift, or otherwise, any money or anything of value whatever, or any promise, obligation, or contract for future reward or compen-
sation. (Acts 1937, PP. 503, 514.)

Cross-reference.--Penalty for violating this section, see section 40-9903.

40-1927. Chapter not to apply t~ products of State institutions.-Nothing in sections 40-1908 to 40-1914, inclusive, or any other section of this Chapter shall apply to ~r affect the distribution and purchase of goods, wares, or merchandise manufactured, produced, ~r mined wholly or in part by inmates of the pena.l,
correctional, and eleemosynary institutions of this State. All g~ods, wares, or merchandise needed by the departments, institutions, and agencies of the state and its political Bubdivisions supported wholly or in part by public funds, shall
be obtained from the Director of Corrections unless the Director of Corrections shall certify in writing that such needed gOOds,
wares, or merchandise are not available. (Acts 1937, pp. 503, 514.)

Editorial Note.--"Director of Corrections" has been substituted f~r tlState Prison Commission", because the Director now exercises the powers formerly belonging to the Commission. See Chapter 77-3.

48
40-1?28. Assistants and employees.--The Supervisor of Purchases may appoint as many assistants and employees, and fix their salaries, as ib essential to the State's interest in the executive of the terms and provisions of this Chapter. Assignment of an assistant or assistants to any of the departments, institutions, or a~encies of the State may be done by the Supervisor of Purchases. It shall be unlawful for any other agency of the State to employ any person for the purposes set out in this Chapter. (Acts 1937, pp~ 503, 515; 1939, Pp. 160, 174.)
Editorial Note.--The requirement of approval by the State Purchasing Board was stricken by the Act of 1939, which also added the last sentence to the section~
40-1929. Effect of partial invalidity of Chapter. If any section of this Chapter be declared unconstitutional the same shall not vitlate the remaining provisions of said Chapter, but all such provisions not held illegal or unconstitutional shall remain of full force and effect. (Acts 1937, Pp. 503, 515.)
40-1930. All tax stamps and tags to be purchased by department.-All cigarette tax stamps, fertilizer tax tags, and other stamps, tags and paraphernalia evidencing the payment of tax collected by the State or any department thereof shall be purchased by the State Purchasing Department subject to the requisitfon of any department of State requiring the use of the said tax stamps or tags, (Acts 1937-38, Extra. Sess., p. 184.)
40-1931. 'Requisition for stamps, tags, etc. -~ny department requiring tax stamps or stamps, tags or paraphernalia aforesaid from the State Purchasing Department shall make a requisition therefor to the said Purchasing Department upon forms prescribed by it, which said requisition shall be delivered to the State Auditor for compilation and check. (Acts 1937-38, Extra. Sess., p. 184.)
40-1932. Stamps, ta s, etc., paid for b stamps, fer izer ax ags, or 0 her s amps, ags or paraphernalia described in this Chapter and purchased by the state Purchasing Department shall be paid for by the department for whose use they are purchased. (Acts 1937-38, Extra. Sess., p. 184.)
t 40-1934. Purchases for count boards of education.-Boards of
education of the various coun ies of this State may petition the said State Department of Purchases to purchase their supplies, such as, school busses, bus bodies, tires, parts and other equipment under the rules set out in this Chapter. (Acts 1939, PP. 160, 171.)

49
40-1935. Delivery receipts and purchase orders to be attached
to invoices; duty of state AUditor.--To each and every invoice
pa id by any sta te agency or department, there sha 11 be attached
the delivery receipt and also a copy of the purchase order issued by the Supervisor of Purchases. And it shall be the duty of the state Auditor to disallow, as an illegal payment, any payments that do not have the receipts and purchase orders attached to the invoice paid. It shall also be the duty of the State Auditor to point out these items in the annual audit of
each a/Sency or department of the State. (Acts 1939, Pp. 160, 175.)
40-1936. Purchases through Supervisor by State officers or
employees for individual ownership prohibited.--It shall be unlawful for any employee or official of the State of Georgia to purchase, directly or indirectly, through the Supervisor of Purchases, or through any agency, department, board or bureau of the state, any article, material, merchandise, ware, commodity or other thing of value for the personal or individual ownership of himself or other person or persons. All articles, materials, merchandise, wares, commodities or other things of value purchased, directly or indirectly, by or through the Supervisor of Purchases or by or through any agency, department, board or bureau of the State shall be and remain the property
of the State of Georgia until sold or disposed of by the State in accordance With the laws governing the disposition or sale
of other State property. (Acts 1939, PP. 160, 175.) Cross-reference.--Penalty for violation of section, see 40-9904.
t 40-1937. Sale or deliver of merchandise, etc., by or through
Supervisor or State depar ment for indiVidual ownership.-It shall be unlawful for any person to knowingly sell or deliver any article, material, merchandise, ware, commodity or other thing of value to any person, directly or indirectly, by or through the Supervisor of Purchases or by or through any department, agency, board or bureau of the state for the individual and personal ownership of such person or other person or persons, excp.pt that property of the State may be sold or otherwise disposed of in accordance with the laws governing the sale or
other disposition of state property. (Acts 1939, pp. 160, 175.)
Cross -reference. --Pena Ity for violation of section, see 40-9904.
40-1938. Definition of "person" within meaning of Chapter.--
Within the meaning of this Chapter the word "person" shall include natural persons, firms, partnerships, corporations or associations.
(Acts 1939, PP. 160, 176.)
40-1939. Lease or construction of warehouse.-The Supervisor
of Purchases may rent or lease any warehouse space necessary, for a period not to exceed five years: PrOVided, the Supervisor of Purchases may contruct any warehouse on State property only.
(Acts 1939, PP. 160, 176.)

50
Code of Georgia Annotated
Title 40 - Executive Department Part VIII - Automobile and Mileage Allowances Chapter 40-20 - In General
Editorial Note.--Section 9~ of Acts 1933, PP. 106, 110, limited the "subs istence and hote 1 or board allowance" of officers and employees of' the state to $2.50 per day. There is no reference in the title of the Act to any such provision. It does not seem to be germane to any purpose expressed in the title. The Section therefore appears to be unconstitutional and the Attorney General in an official opinion has so declared. It has been omitted from this Code for this reason.
40-2001. Purchase of passen er automobiles from State funds prohibited; exception or Governor.-- 0 un s appropr a e 0 any epar men, institution, hoard, bureau, or agency of this State shall be used for the purchase of any passenger-carrying automobile whatsoever, and it shall be unlawful to expend any funds appropriated to any such department, instituion, board, bureau, or agency or any state funds otherwise coming into the possession of any such department, institution, board, bureau, or agency for the purohase of any passenger-carrying automobile, except one passenger automobile and motocycles for the use of the Governor. Nothing in this law contained shall affect or relate to trucks, tractors, or trailers. (Acts 1933, pp. 106, 110.)
Editorial Note.--The Act of 1937 creating the Department of Public Safety (Acts 193'7, P. 322 ) codified at Title 92A, in section 92A-124, provides that this section shall not be applied to the Department created by said Title and that in so far as the Title is in conflict With this section, it is expressly repealed.
The State Department of Veterans Service is authorized by Acts 1953, PP. 131, 132, to purchase through the State Purchasing Depar.tment an ambulance for the transportation of Georgia veterans to and from hospitals, such purchase not to fall within the restrictions as to purchase, use, etc. of automobiles as prOVided in Chapter 40-20.
40-2002. Milea e for State officers and employees; rate.--It shall be the duty 0 e S a e Supervisor of Purc ases With he heads of the several departments, by proper executive or instructive order, to fix the amount or rate per mile, not to exceed 7~ cents per mile, to be paid to officers, officials, or employees of the various departments, institutions, boards, bureaus, and agencies, as traveling expense when traveling in the service ~f the State or any agency thereof by automobile. The said rate per mile :Jhall be uniform and of general application to all departments, agencies, ~nd institutions of the State. Said rate shall be SUbject to change by the State Supervisor of Purchases, who shall consult With the heads of the several departments, agencies, boards, bureaus, and institutions interested therein, and such mileage allowance shall be fixed in such manner as will reasonably cover the cost of operating such automObile, but the same shall not exceed 7~ cents per mile. (Acts 1950, PP. 224, 225.)
CrOSs-reference.--Provisions not applicable to Title 92A. See 92A-124: - -

51
40-2003. Officials to furnish own automobiles; mi1eage.--A11 officerS, officials, or employees of the state and of the various departments, institutions, boards, bureaus, and agencies of the state, required to travel by automobile in the performance of their official duties, shall themselves furnish out of their own personal funds such automobiles as may be necessary for their official use, and shall receive, for the use of such automobile and as expense of operating the same, such mileage allowance as is fixed by the state Supervisor of Purchases in conjunction with the
head or heads of the various department~ .and bureaus. (Acts. 1933,
pp. 10';, 108.)
Editorial Note.--The Act of 1937 creating the Department of Public Safety (Acts 193 i(, p: 322) codified as Title 92A, in section 92A<124; provides that this section shall not be applied to the Department created by said Title and that in so far as the Title is in conflict with this section, it is expressly repealed.
1~0-20oh. Sta te Supervis or of Purchases to adminis tel' law. Mi leage tickets The state Supervisor of Purchases, assisted by the heads of the departments, agencies, bureaus, or institutions, shall be charged with the duty of the enforcement of this law; and he shall supply such department, agenc~ bureau, or institution with suitable blanks for the purpose of carrying into effect the purpose and intent of this law, inclUding tickets to be known as mileage tickets, which shall be in triplicate consecutively numbered, to show the date any trip was made, orgin and destination of trip, miles traveled on trip, and purpose for which the trip was made. No ticket shall cover more than one day's travel, and shall be signed by the officer or employee making such trip, who shall keep one copy thereof and forward the other two copies to the head of such department, board, bureau, agency, or institution in which he is employed, at the end of the week filing a weekly report to the head of the said department, agency~ or bureau. The head of such agency, board, bureau, or institution, or his authorized agent, shall, within five days after receipt of such weekly report, audit the same and place thereon his approval or disapproval of the same, and promptly forward copy of each ticket to the State Supervisor of Purchases for his records. The State Supervisor of Purchases shall have authority to inquire into the correctness and legality of such mileagE tickets, and it shall be his duty to do so. When any mileage ticket shall have been approved by the head of such department, agency, or bureau, the amount represented by said ticket shall be paid to the officer or employee making the said ticket from the general funds appropriated for such depart. ment or institution. (Acts 1933, pp. 106, 108.) LW-2005. Listing of officials and employee~ entitled to mileage.--The head of each department, board, agency, or institution of this State shall file With the State Supervisor of Purchases a list of all officials and employees entitled to receive compensation under the provision of this law said list to be approved by the State Supervisor of Purchases, and nn employee or official of any department or institution whose name has not been so enrolled shall receive any compensation under the provisions of this law. (Acts 1933, PP. 106, 109.)

52
~-l~:-2006_. Transportation of political literature or solicitation of votes wnl~ravellng at state's expenae.--It shall be unlawful for any office~ or-this state or any employee of any department, bureau, agency, board, or Inst,ltution, while traveling in vechicles upon which the state is paying transportation mileage, to transport any political campaign literature or n~tter, or to engage in soliciting votes, or to transport an person or persons soliciting votes in any election or primary. (Acts 1933, pp.lo6,
109. )
Croso-reference.--Penalty for violation of this section, see 40-9902.

53
Code of Georgia Annotated
Title 40 - Executive Department Part X - Merit System of Personnel Administration Chapter 40-22 - Establishment of System in Certain Departments
40-2201. Authorit of Governor to create merit system for employees in certain depar ments.-- a There is authorized to be crea ed and established a merit system of personnel administration oovering the employees of the State and county departments of Health; the State and county departments of Public Welfare, including all officers and employees under the control and direction of the State Department of Public Welfare, but excepting county welfare board members, and/or the Employment Seourity Agency of the State Department-of labor.
Editorial Note.--This subsection originally excluded from the merit system "employees of eleemosynary institutions and county welfare board members." The Act of 1949 eliminated the exception of institutional employees. For other provisions of the Act of 1949 relating to the appointing authority of the State Department of Public Welfare, see 40-2213
(b) The Governor shall be authorized in his discretion to order the creation of such merit system by executive order. Such order shall specify the department or departments above enumerated which shall be covered by said system and the effective date of said system in each department so covered.
(c) Pending the issuance of such executive nrder by the Governor and pending the effective date of the system as specified in said order by the Governor, the departmental merit system heretofore established in each of said State departments shall be of full force and effect.
(d) The executive order of the Governor may provide that the departments affected thereby shall transfer to the Merit System Council hereinafter created all books, records, registers, equipment, and other property heretofore made available for the operation of its departmental merit system. (Acts 1943, PP. 17l~ 172; 1945, pp. 331, 332; 1949, PP. 504, 547, 1140, 1159, 1195, 1237.)
Cross-reference.--Penalties for violations of this Chapter, see 40-9907. State Department of Health, see Chapter 88-1. County Departments of Health, see Chapter 88-2. State Department of Public Welfare, see Chapter 99-1 0 County Departments of Public Welfare, see Chapter 99-5. Emp.loyment Security Agency, see 54-628. Personnel of Bureau, see 54-634. Constitutional provisions, see 2-8201, 8202. As to inclusion of state Highway Department in system, see 40-2210 et seq.; Department of Public Safety, 40-2214 et seq. State Library Department, 40-2217; Public Service Commission, 40-2218 et seq. As to employees of Department of AUdits and Aocounts who are subject to this system being also eligible for employees retirement, see 40-2520.

54
+0-2202. rlJeri t Sys tern Coune il, au thori ty to esta b 113h; _._0 ow compos ed .-rhe Governor is hereby authorized to establish a Merit :'";~;,,n1 Council. )uch Council as established by the Governor shall be c~l1lp()3ed of three ~itizens of this state of known interest in the improvement of public ldmlnistration and in the impartial selection of efficient personnel by :;he governmental departments of this state. (Acts 1943, PP. 171, 172.)
40-2203. Same; terms of members; chairman.--Members of the Merit System Council shall be selected for terms of five years each, except that the initial appointments shall be for terms of one, three and five years, respectively. The Governor shall designate one member of the Council as its chairman. (Acts 1943, PP. 171, 173.)
40-2204. Same; qualifications and removal of members.--No member of the Merit System Council may be removed from office prior to the expiration of his term except for cause and after being served with a written copy of charges and being given an opportunity for a pUblic hearing before the Governor. No member of the Merit System Council shall have held political office which has annexed thereto salary of emoluments, or have been an officer of a political party during the 12 months preceding his appointment, nor shall any member of the Council hold political or party office which has annexed thereto salary or emoluments during his tenure of office. No member of the Council shall have been a salaried employee of any of the departments covered by this Chapter during the 12 months preceding his appointment. (Acts 1943, pp. 171, 173; 19L~9, p. 1167.)
40-2205. Same; compensation and expenses of members.--Members of the Merit System Council shall receive no salary but shall be paid seven dollars per diem for time actually devoted to the business of the Council, not exceeding 60 days in any calendar year, and reimbursement for necessary travel expense. (Acts 191+3, pp. 171, 173.)
40-2206. Same; meetings.--The Merit Syst~m Council shall hold regular meetings at least once each month and may hold such additional meetings as may be required for the proper discharge of its duties. (Acts 1943, pp. 171, 173.)
40-2207. Same; duties and functions.--It shall be the duty and the functions of the Merit System Council:
(a) To represent the public interest in the improvement of personnel administration in the aforementioned State Departments.
(b) After public hearings to adopt and amend rules and regulations effectuating the merit system of personnel administration which may be established under thi~ Chapter. Such rules and regulations shall include provision for the establishment and maintenance of classification and compensation plans, the conduct of examinations and the establishment of registers of persons eligible for appointment under the merit system, the certification of eligible persons, appointments,>. promotions, transfers, demotions, separation, tenure, reinstatement, appeals, service ratings, payroll certification and other phases of merit system administration. Such rules and regulations shall prohibit political activity by any departmental employee of the Merit System Councilor any employee covered under the terms of the merit system and shall provide that there shall be

55
no discrimination against any person or employee because of political or religious affiliations. Such rules and regulations when approved by the Governor shall have the force and effect of law and shall be binding upon the State departments enumerated in the Governor's executive order creatinl the Merit System Council.
The rules and regulations issued by the Merit System Council hereunder shall conform to the minimum standards for systems of personnel administratton issued by the Social Security Board under the Federal Social Security Act and such other personnel standards as have been specified by the other Federal departments from wh ich Federal grants are obta ined for use by the several State departments covered by this Chapter and the Governor's executive order hereunder.
(c) To select, fix the compensation of, appoint as a result of competitive examination, and prescribe the duties of a Merit System Director: Provided, however, that pending the establishment of a list of persons eligible for appointment to the position of Merit System !J1.rector the council may temporarily appoint some qualified person to act in this position.
(d) To authorize the selection, fix the duties and compensation of all other employees of the Merit System Council. Such employees shall be employed under and be covered by the merit system established under this Chapter.
(e) To establish after consultation with the heads of the several State departments specified in the Governor's executive order as provided in section 40-2201 and annual budget covering all the costs of operating the Merit System Council and determine after consultation with said several department heads an equitable basis of prorating sa id annual costs among the several departments included in the Governor" s ~xecutive order issued under section 40-2201: Provided that upon the approval of such budget by the Governor he shall be empowered to direct that the necessary pro rata share of the several departments concerned be made available for expenditure by the Merit System Council in the same manner as appropriated funds are expended by other departments of the State and without the necessity of further approval by the respective departments from whom said funds are to be derived: Provided that nothing contained herein shall be construed to impair the requirements of sections 54-645 and 54-646 of the unemployment compensation law of this State.
(f) To conduct hearings and render decisions on charges preferred against persons employed in the several departments which are included in said merit system.
(g) To promote public understanding of the purposes, policies and practices of the merit system ar-.d to advise and assist the Merit System Director and any other State department in fostering merit selection and securing the interest of institutions of learning and of civic, professional and other organizations in the improvement of personnel standards under the merit system. (Acts 1943, pp. 171, 173.)

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Code of Georgia Annotated 'l'1.tle 92 - Publ ic Revenue Division III - Returns, Assessments, and Collections Part VII - Tax Executions and Sales Chapter 92-84 - Administration of Tax Laws
92-8411.1 . Board of compromises and settlements.--There is established a boar~ composed of the Attorney General, the State Revenue Commissioner, the Chair~n of the House of Representatives Ways and Means Committee, the Chairman of the Senate Finance Committee, and the State Auditor, which is hereby authorized to settle and compromise any proposed tax assessment, any final tax assessment or any tax fi.fa. which because of the insolvency of the taxpayer or the questionable legal position of the State the collection of said taxes is doubtful and said settlement or compromise is in the best interest of the State: Provided, however, that a majority of the board shall be empowered to settle and compromise: and, Provided further, that the State Revenue Commissioner shall keep a record of all such settlements and compromises made and the reasons therefor. (Acts 1953, pp. 185, 186.)

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Code of Georgia Annoted
Title 100 - State Depositories Part I - In General Chapter 100 - 1 In General
100-101. State DepositorY Board; creation, membership, ~orum; namin and appointment of depositories.--A State Depository Boa (hereinafter called the Board) is hereby created, consisting of the Governor, the Comptroller General, and the Treasurer; a majority of whom shall constitute a quorum, and the acts of a majority of whom shall be the acts of the Board. The Board may name and appoint as depositories of State funds, solvent banks and trust companies (whether organized under State or Federal laws) of good standing and credit in any city, town, or community in this State. (Acts 1949, p. 13.)
Cross-reference.--County treasurer may deposit county funds in State depositories, see 23-1017.
Editorial Note.--Acts 1929, pp. 223, 224, authorizes the county commissioners, or the ordinary, to designate one or more banks as county depositories in counties "having therein a city with a population of not less than 52,995, and not more than 80,000 according to the United States census of 1920.
100-102. Term of service and compensation of depositories.--Depositories appointed by the Board shall serve only during the pleasure of the Board and without definite term, and shall receive no salary or fees from the State. (Acts 1878-9, p. 88; 1895, P. 22; 1949, pp. 13, 14.)
Editorial Note.--Former 100-102, providing for term of appointment of depositories, was specifically repealed by Acts 1949, pp. 13, 14, and the above has been substituted.
100-103. (1251) Contracts as to interest to be paid.--The State Depository Board shall make with depositories the most advantageous contracts for interest to be paid by them to the State for the use of the State's money which may be deposited therein, as hereinafter provided by this Chapter. In the event any depository so named shall refuse to make a satisfactory contract with the State Depository Board as to interest to be paid, they shall have authority to remove such depository and appoint another. In the event only one bank is situated in any city designated for a legal depository, the State Depository Board may place deposits in the nearest depository with which a satisfactory contract has been made. No officer of this State shall be allowed to receive any commission interest, compensation, or reward for himself from any source for the depositing of such money in such depositories, or for continuing such deposits. (Acts 1878, p. 88; 1895, p. 22; 1949, pp. 13, 14.)
Cross-references.--Punishment for officer receiving reward, see 1009901. Treasurer or other officer, not to receive fee or profit see
Const., Art. V, Sec. II, Par. III (2-3103); Art. VII, Sec. III, Par. VI
(2-5606). Private use of pUblic funds, see 40-1101, par. 10.

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Recetver of insolvent State depository liable to the State for principal Bum due her and interest at the contract rate to the date of the appointment of the receiver, and also seven per cent per annum as legal interest from the date of the receivership to the date of payment. 139/54, 55 (2) (76 S. E. 587).
100-105. Board to determine amounts to be de osited.--The Board shall determine and may from time to time change a the maximum amount of State's moneys which the State Treasurer may deposit in a particular depository; and (b) the maximum and minimum proportion of the State funds which the Treasurer may maintain in a particular depository; provided depositories shall give security for State de~osits as now required by law. (Acts 1882-3. p. 138; 1949, pp. 13. 14.)
100-106. (1254) Treasurer to advise State Depository Board of financial condition of State deposttories.--It shall be the duty of the Treasurer to keep advIsed, and to keep the State Depository Board advised from time to time, of the financial condition of the various State depositories, as well as of the financial condition and standing of the securities on the bonds of such depositories, and if at any time they should become satisfied of the insolvency of any of the depositories, or that the affairs of any of said depositories are in an embarrassed condition, it shall be the duty of the Board to direct the Treasurer to withdraw 'the money of the State from such depository. and the Board may declare a vacancy and may proceed to designate another bank in the same locality to act as such depository for the unexpired term under the rules and regulations prescribed by law. In case the Board should be advised of the insolvency of the securities on the bortd of any of said depositories. it shall be his duty to notify such depository to strengthen said bond. and if at the end of 10 days said bond is not strengthened. the Board shall declare 8 vacancy, and proceed to fill the same by a new des igna tion. (Acts 1882-3, p. 138; 1949, pp. 13. 14.)
100-109. (12~7, 1259) Monthly statements by depositories.--State depositories shall render to the Governor and the state Treasurer. on the first day of every month. a statement of the money on hand belonging to the State, showing the time When, and from Whom. received. together with a statement and balance sheet showing the exact condition of its account w13i6th. ) the State Treasurer on that day. (Acts 1878-9.p. 89; 1893. pp . 135,

100-111. (1259) Funds subject to check, etc.--Depositories shail hold all

funds received by them for and on account of the State. subject to the

check or order of the State Treasurer. Whenever any tax collector shall

make a deposit in a State depository, the depository shall give to said

tax collector a receipt, Which shall be a good and sufficient voucher to

said collector, and shall mail to the State Treasurer a duplicate of the

receipt so given to said tax collector, and as soon as the Treasurer ~hall

receive said duplicate receipt he shall issue his certificate in favor of

the depositing tax collector and transmit the same to the Comptroller

General, who shall place the amount therein mentioned to the credit of

said tax collector, and at once mail to him a receipt for said amount

(Acts 1878-9, p. 88.)

.

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100-9901. (199 P. C.) Officer receiving reward for depositing State's money in State depositories.--Any officer of this State who shall receive any commission, interest, compensation, or reward for himself from any source for the depositing of the State's money in State depositories, or for continuing such deposits, shall be punishable by imprisonment in the penitentiary for not less than seven nor more than 20 years, and disqualification to hold office. (Acts 1878-9, PP. 88, 89; 1895, p. 22.) Cross-reference.--For prohibitory provisions, See 100-103. Editorial Note.--Any annotations to this Chapter will be found 1n Book lOA or the Supplement thereto~
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