," 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. - 2- 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. - 3- 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.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: 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." 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.) 56 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.) 57 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. 58 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.) . 59 100-9901. (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~ \ ,;