State of Georgia Selected Summary Financial Information Prepared by State Accounting Office September 1, 2011 Fiscal Year Ended June 30, 2011 Introduction This report presents information about taxes, fees, assessments, and other revenues collected under Constitutional and statutory authority and remitted to the Office of the State Treasurer (OST) during the fiscal year ended June 30, 2011, the legislative appropriation of such funds as set forth in the Amended Appropriations Act of 2010 2011, and balances remaining at fiscal year end. This report does not provide a comprehensive analysis of the State's general operating revenue, but discloses only those amounts remitted to OST. Federal funds and departmental collections retained for use by the various departments and agencies of the State are not presented in this report. Information in this report is presented on a basis of accounting (statutory basis), which is substantially the same as the cash receipts and disbursements basis of accounting, with the following exceptions, for which (net) funds available or appropriations have been reported even though cash has not been received/disbursed: (1) Amounts due from the Georgia Lottery Corporation, (2) Amounts due to the various State organizational units for (a) operational costs of the fiscal year and (b) undistributed sales tax collections (for local governments). This basis of accounting is a comprehensive basis of accounting other than generally accepted accounting principles. The information contained in this report should not be construed to present the financial position or results of operations of the State of Georgia as a whole. Such information is presented in the State of Georgia Comprehensive Annual Financial Report. (This page intentionally left blank) STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) - TABLE OF CONTENTS - Independent Accountant's Report on Applying Agreed-Upon Procedures Current Year Information Funds Available, Appropriation and Changes in Fund Balances Calculation of Fund Balances by Category of State Funds Net Revenue Collections By Collecting Unit Analysis of Revenue Shortfall Reserve (Preliminary) Analysis of Reserve for Appropriation to Department of Transportation Analysis of Reserve for Lottery For Education Analysis of Reserve for Tobacco Settlement Funds Analysis of Reserve for Guaranteed Revenue Debt Common Reserve Fund Detail of Net Revenue Collections by Collecting Unit Legislative Appropriation and Allotments to Spending Units Page Number 1 2 4 5 6 7 8 9 10 14 (This page intentionally left blank) DEPARTMENT OF AUDITS AND ACCOUNTS 270 Washington St. S.W. Suite 1-156 Atlanta, Georgia 30334 RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 September 1, 2011 Mr. Greg Griffin, State Accounting State Accounting Office 200 Piedmont Avenue 1604 West Tower Atlanta, Georgia 30334 Officer Independent Accountant's Report on Applying Agreed-Upon Procedures Dear Mr. Griffin: We have performed the procedures enumerated below, which were agreed to by the State Accounting Office on the behalf of management of the State of Georgia, solely to assist you in assessing the accuracy of the current year information as presented in the State of Georgia's 2011 Selected Summary Financial Information. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. 1. Examine the 2010 adjustments included in the amounts reported in the Office of State the Treasurer's (OST) financial statements and trace each amount to appropriate documentation to ensure they have been correctly applied. We did not note any exceptions as a result of our procedures. 2. Examine the Department of Revenue (DOR)/OST reconciliation of revenue collections transmitted by OaR/received by OST. Trace reconciling items to appropriate documentation to determine if there are misstatements greater than $1,000,000.00. We did not note any exceptions as a result of our procedures. 3. Verify that the "cut-off" for "in-transit" remittances for OaR is consistent with the prior period. We did not note any exceptions as a result of our procedures. 4. Select the top five remitting departments (other than the DOR) and confirm amounts with the remitting agency (either by PeopleSoft query or inquiry of agency personnel) to ensure amounts reported are not different by more than $1,000,000.00 for each Department tested. We did not note any exceptions as a result of our procedures. 5. Confirm remittances by the DOR to the OST for the following tax types with the Department of Audits and Accounts auditors at DOR. Determine if there are variances that are greater than $1,000,000.00 for any of the selected tax types: a. Corporate Income Tax b. Individual Income Tax c. General Sales and Use Tax d. Selective Sales Tax - Motor Fuel Excise and Carrier Mileage Tax e. Selective Sales Tax - Tobacco Products f. Motor Vehicle License Tax We did not note any exceptions as a result of our procedures. 6. Using the amounts recorded as receipts on the DOR accounting records and the Motor Fuel interest calculation prepared by the OST, recalculate the appropriation available for roads and bridges and compare it to the amount reported. We did not note any exceptions as a result of our procedures. 7. Review the following distributions applicable to fiscal year ended June 30, 2011 made during July 2011 by the DOR (and any adjustments made by the State Accounting Office) to ensure they have been accurately adjusted: a. Education Local Option Sales Tax b. Local Option Sales Tax c. MARTA Sales Tax d. Special Purpose Local Option Sales Tax We did not note any exceptions as a result of our procedures. 8. Review the documentation supporting the Undistributed Sales Tax Liability to determine whether revenue collections have been accurately adjusted. We did not note any exceptions as a result of our procedures. 9. Confirm that the last remittance of fiscal year 2011 Lottery proceeds has been included in collections reported. We did not note any exceptions as a result of our procedures. 10. Verify the propriety of the Motor Fuel interest calculation prepared by the OST. We did not note any exceptions as a result of our procedures. 11. Ensure that the interest earned on local government accounts in the Georgia Extended Asset Pool have not been included in the Motor Fuel interest calculation. Determine if the calculation is misstated by an amount greater than $1,000,000.00. We did not note any exceptions as a result of our procedures. 12. Verify that amounts reported as appropriation to the Department of Community Health for Hospital Provider Payment and Nursing Home Provider Fees equal the final budgeted amounts. We did not note any exceptions as a result of our procedures. 13. Recalculate each of the following reserved fund balances that exist according to applicable statutes and constitutional provisions and determine if the amounts reported are correct: a. Lottery Reserves b. Revenue Shortfall Reserve c. Tobacco Settlement Reserve d. Guaranteed Revenue Debt Common Reserve We did not note any exceptions as a result of our procedures. We were not engaged to, and did not conduct an examination, the object of which would be the expression of an opinion on the current year information as presented in the State of Georgia's 2011 Selected Summary Financial Infarmatian. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the State Accounting Office and the management of the State of Georgia and is not intended to be and should not be used by anyone other than these specified parties. Respectfully, ~I-.Q;{~ ~U~II W. Hinton, CPA, CGFM State Auditor (This page intentionally left blank) CURRENT YEAR INFORMATION (This page intentionally left blank) STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) FUNDS AVAILABLE, APPROPRIATION AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 2011 FUNDS AVAILABLE Cash Receipts Net Revenue Collections Income Tax - Corporate Income Tax - Individual General Sales Tax Motor Fuel - Excise and Motor Carrier Mileage Tax Motor Fuel - Sales Tax Alcoholic Beverages Tax Tobacco Products Tax Insurance Premium Tax Motor Vehicle License Tax Property Tax Interest and Other Investment Income - State General Funds (Net of Bank Charges) Interest and Other Investment Income - Motor Fuel Tax Funds (Net of Bank Charges) Departmental Regulatory Fees and Sales Total Net Revenue Collections Other Funds Collected by OST Federal Revenue Treasury, U. S. Department of - Reimbursement for Cash Management and Improvement Act Other Revenues Retained Brain and Spinal Injury Trust Fund Georgia Lottery Corporation - Lottery Proceeds Georgia Lottery Corporation - Interest Earned Tobacco Settlements Received Tobacco Settlement Funds - Interest Earned Guaranteed Revenue Debt Common Reserve Fund - Interest Earned Total Other Funds Collected by OST Total Cash Receipts Agency Surplus Returned Funds Available from Beginning Fund Balance (see below) Revenue Shortfall Reserve Mid-Year Adjustment for Education (K-12) Lottery for Education Tobacco Settlement Funds Total Funds Available from Beginning Fund Balance TOTAL FUNDS AVAILABLE APPROPRIATION Legislative Appropriation to Spending Units for Fiscal Year Ended June 30 Less: Current Year Funds Lapsed NET APPROPRIATION EXCESS OF FUNDS AVAILABLE OVER NET APPROPRIATION Beginning Fund Balance - July 1, 2010 Reserved for: Revenue Shortfall Reserve (Preliminary) Lottery for Education Tobacco Settlement Funds Guaranteed Revenue Debt Common Reserve Fund Total Beginning Fund Balance - July 1, 2010 Less: Amounts Appropriated as Funds Available Beginning Fund Balance - July 1, 2010, Not Appropriated ENDING FUND BALANCE - JUNE 30, 2011 ANALYSIS OF ENDING FUND BALANCE Reserved for: Revenue Shortfall Reserve (Preliminary) Appropriation to Department of Transportation Lottery for Education (Preliminary) Tobacco Settlement Funds (Preliminary) Guaranteed Revenue Debt Common Reserve Fund Total Reserved Fund Balance Unreserved, Undesignated (Surplus) TOTAL ENDING FUND BALANCE - JUNE 30, 2011 1 $ 670,409,796.21 7,658,782,326.06 5,080,776,729.52 452,197,062.99 480,505,927.66 161,803,417.81 228,858,070.04 360,669,593.33 298,868,209.38 76,704,325.31 (368,303.47) 297,881.32 1,089,142,491.19 16,558,647,527.35 1,803.00 1,960,848.00 846,106,000.00 943,832.12 138,372,373.90 78,329.48 265,380.00 987,728,566.50 17,546,376,093.85 497,873,761.54 152,157,908.00 482,213,421.91 30,745,628.83 665,116,958.74 18,709,366,814.13 18,060,682,584.00 (9,020,000.00) 18,051,662,584.00 657,704,230.13 192,754,018.62 843,354,013.81 30,745,628.83 71,299,453.75 1,138,153,115.01 (665,116,958.74) 473,036,156.27 $ 1,130,740,386.40 $ 445,295,051.37 27,156,289.58 580,679,003.19 23,606,792.26 54,003,250.00 1,130,740,386.40 - $ 1,130,740,386.40 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) CALCULATION OF FUND BALANCES BY CATEGORY OF STATE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 FUNDS AVAILABLE Cash Receipts Net Revenue Collections Other Funds Collected by OST Federal Revenue Other Revenues Retained Brain and Spinal Injury Trust Fund Lottery for Education Receipts and Interest Tobacco Settlement Fund Receipts and Interest Guaranteed Revenue Debt Common Reserve Fund - Interest Earned Total Other Funds Collected by OST Total Cash Receipts Agency Surplus Returned Surplus Collected from FY 2011 State General and Motor Fuel Funds Lottery for Education Tobacco Settlement Funds Early Remittance of FY 2011 Surplus Guaranteed Revenue Debt Common Reserve Fund Georgia Building Authority Georgia Environmental Finance Authority Georgia Ports Authority Georgia Technology Authority State Personnel Administration State Board of Workers' Compensation Other Total Agency Surplus Returned Funds Available from Beginning Fund Balance (see below) Revenue Shortfall Reserve Mid-Year Adjustment for Education (K-12) Lottery for Education Tobacco Settlement Funds Total Funds Available from Beginning Fund Balance TOTAL FUNDS AVAILABLE APPROPRIATION FY 2011 Legislative Appropriation to Spending Units House Bill 948 (Original Appropriation) State General and Motor Fuel Funds Lottery for Education Tobacco Funds House Bill 77 (Amended Appropriation) State General and Motor Fuel Funds Mid-Year Adjustment for Education (K-12) Lottery for Education Tobacco Settlement Funds Budget Adjustments Care Management Organization Quality Assessment Fees Hospital Provider Payment Nursing Home Provider Fees Net Appropriation Prior to Lapse Less: Current Year Funds Lapsed NET APPROPRIATION EXCESS (DEFICIENCY) OF FUNDS AVAILABLE OVER (UNDER) NET APPROPRIATION Beginning Fund Balance - July 1, 2010 Reserved for: Revenue Shortfall Reserve (Preliminary) Lottery for Education (Preliminary) Tobacco Settlement Funds (Preliminary) Guaranteed Revenue Debt Common Reserve Fund Total Beginning Fund Balance - July 1, 2010 Less: Amounts Appropriated as Funds Available Beginning Fund Balance - July 1, 2010, Not Appropriated ENDING FUND BALANCE - JUNE 30, 2011 TOTAL STATE GENERAL AND MOTOR FUEL FUNDS $ 16,558,647,527.35 $ 16,558,647,527.35 1,803.00 1,960,848.00 847,049,832.12 138,450,703.38 265,380.00 987,728,566.50 17,546,376,093.85 1,803.00 1,960,848.00 - 1,962,651.00 16,560,610,178.35 75,425,850.18 39,979,072.26 1,194,884.47 2,629,856.00 288,000,000.00 30,576,376.00 49,097,515.00 2,481,222.00 4,728,320.00 3,760,665.63 497,873,761.54 152,157,908.00 482,213,421.91 30,745,628.83 665,116,958.74 18,709,366,814.13 75,425,850.18 - 17,561,583.75 2,629,856.00 288,000,000.00 30,576,376.00 49,097,515.00 2,481,222.00 4,728,320.00 3,746,261.05 474,246,983.98 152,157,908.00 - 152,157,908.00 17,187,015,070.33 16,621,645,566.00 1,127,652,261.00 140,062,434.00 (15,684,034.00) 152,157,908.00 31,051,654.00 6,736,395.00 297,276.00 (686,232.00) (2,550,644.00) 18,060,682,584.00 (9,020,000.00) 18,051,662,584.00 657,704,230.13 16,621,645,566.00 - (15,684,034.00) 152,157,908.00 - 297,276.00 (686,232.00) (2,550,644.00) 16,755,179,840.00 (20,000.00) 16,755,159,840.00 431,855,230.33 192,754,018.62 843,354,013.81 30,745,628.83 71,299,453.75 1,138,153,115.01 (665,116,958.74) 473,036,156.27 $ 1,130,740,386.40 $ 192,754,018.62 - 192,754,018.62 (152,157,908.00) 40,596,110.62 472,451,340.95 ANALYSIS OF ENDING FUND BALANCE Reserved for: Revenue Shortfall Reserve (Preliminary) Appropriation to Department of Transportation Total Reserved Fund Balance Unreserved, Undesignated (Surplus) TOTAL ENDING FUND BALANCE - JUNE 30, 2011 $ 445,295,051.37 27,156,289.58 472,451,340.95 0.00 $ 472,451,340.95 2 LOTTERY FUNDS TOBACCO SETTLEMENT FUNDS GUARANTEED REVENUE DEBT COMMON RESERVE FUND $ -$ -$ - - 847,049,832.12 - 847,049,832.12 847,049,832.12 - 138,450,703.38 138,450,703.38 138,450,703.38 - 265,380.00 265,380.00 265,380.00 39,979,072.26 - - - 39,979,072.26 482,213,421.91 - 482,213,421.91 1,369,242,326.29 1,194,884.47 - 14,404.58 1,209,289.05 30,745,628.83 30,745,628.83 170,405,621.26 - (17,561,583.75) - - (17,561,583.75) - - (17,296,203.75) 1,127,652,261.00 - 31,051,654.00 - - 1,158,703,915.00 (9,000,000.00) 1,149,703,915.00 219,538,411.29 140,062,434.00 6,736,395.00 - 146,798,829.00 - 146,798,829.00 23,606,792.26 - - - - - (17,296,203.75) 843,354,013.81 843,354,013.81 (482,213,421.91) 361,140,591.90 $ 580,679,003.19 $ 30,745,628.83 30,745,628.83 (30,745,628.83) - 23,606,792.26 $ 71,299,453.75 71,299,453.75 - 71,299,453.75 54,003,250.00 3 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) NET REVENUE COLLECTIONS BY COLLECTING UNIT FOR THE YEAR ENDED JUNE 30, 2011 COLLECTING UNIT (See also "Detail of Net Revenue Collections by Collecting Unit") Agriculture, Department of Audits and Accounts, Department of Banking and Finance, Department of Behavioral Health and Developmental Disabilities, Department of Community Affairs, Department of Community Health, Department of Corrections, Department of Driver Services, Department of Early Care and Learning, Department of General Assembly of Georgia Governor, Office of the Human Services, Department of Insurance, Office of the Commissioner of Investigation, Georgia Bureau of Judicial Branch Appeals, Court of Supreme Court Labor, Department of Natural Resources, Department of Pardons and Paroles, State Board of Properties Commission, State Public Safety, Department of Public Service Commission Revenue, Department of Secretary of State Student Finance Commission, Georgia Superior Court Clerks' Cooperative Authority Treasurer, Office of the State Workers' Compensation, State Board of Total Net Revenue Collections $ 6,467,073.06 5,323,535.39 20,158,138.44 5,634,936.84 10,670,637.28 363,283,608.20 15,013,036.41 71,649,123.58 781,237.06 95,993.30 878,862.93 7,942,374.42 404,965,131.65 840,243.44 429,869.05 202,763.48 29,077,606.61 44,969,509.09 2,803,325.67 9,237,296.56 7,135,392.91 1,123,037.75 15,332,988,884.83 81,479,048.82 1,592,830.39 112,847,210.47 (21,918.49) 21,078,738.21 $ 16,558,647,527.35 4 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) ANALYSIS OF REVENUE SHORTFALL RESERVE (PRELIMINARY) JUNE 30, 2011 Beginning Revenue Shortfall Reserve (Preliminary) - July 1, 2010 Reserved for Revenue Shortfall Reserve (Preliminary) FY 2010 Agency Surplus Returned Total Beginning Revenue Shortfall Reserve - July 1, 2010 FY 2011 Appropriation of Mid-Year Adjustment for Education Adjusted FY 2010 Revenue Shortfall Reserve Excess of Total Funds Available Over Current Year Appropriation/Other Deductions (see below) Ending Revenue Shortfall Reserve (Preliminary) - June 30, 2011 Net Change in Revenue Shortfall Reserve from Current Year Activity Current Year Receipts Net Revenue Collections Other Funds Collected by OST FY 2011 Agency Surplus Returned (Early Remittance) Total Current Year Receipts Current Year Appropriation/Other Deductions FY 2011 Appropriations (does not include appropriation for Mid-Year Adjustment itemized above) Budget Adjustments (net) Funds Lapsed Reserved for Appropriation to Department of Transportation Total Current Year Appropriation/Other Deductions Excess of Total Funds Available Over Current Year Appropriation/Other Deductions $ 16,558,647,527.35 1,962,651.00 398,821,133.80 16,959,431,312.15 16,605,961,532.00 (2,939,600.00) (20,000.00) 27,156,289.58 16,630,158,221.58 $ 329,273,090.57 $ 192,754,018.62 75,425,850.18 268,179,868.80 (152,157,908.00) 116,021,960.80 329,273,090.57 $ 445,295,051.37 Statutory Limits/Availability Maximum Reserve - 15% of Net Revenue Collections 1% of Net Revenue Collections (Maximum amount of reserve available for appropriation to fund increased K-12 needs) 4% of Net Revenue Collections (Governor may release reserve funds in excess of this amount for appropriation) Current Year Reserve as a Percentage of Net Revenue Collections $ 2,483,797,129.00 $ 165,586,475.00 $ 662,345,901.00 2.69% This reserve is calculated as provided for in OCGA 45-12-93(a), which states, in part, that "the amount of all surplus in state funds existing as of the end of each fiscal year shall be reserved and added to the Revenue Shortfall Reserve. Funds in the Revenue Shortfall Reserve shall carry forward from fiscal year to fiscal year, without reverting to the general fund at the end of a fiscal year." Up to one percent (1%) of the preceding fiscal year's net revenue collections may be appropriated from the reserve for funding increased K-12 needs and the Governor may release reserve funds in excess of four percent (4%) of net revenue collections for appropriation. The reserve cannot exceed fifteen percent (15%) of the previous fiscal year's net revenue for any given fiscal year. The reserve included in this report is labeled "Preliminary," as it does not include the lapsing of current year surplus from appropriated agencies. Final close-out and audit of agency surplus will be completed subsequent to the release of this report. 5 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) ANALYSIS OF RESERVE FOR APPROPRIATION TO DEPARTMENT OF TRANSPORTATION JUNE 30, 2011 Amount Derived from Motor Fuel Taxes FY 2011 Motor Fuel Tax Collections Per Accounting Records of the Department of Revenue Motor Fuel Collections Motor Carrier Mileage Tax Total Motor Fuel and Motor Carrier Mileage Tax Receipts Refunds Collection Costs Net Motor Fuel and Motor Carrier Mileage Tax Receipts 3% Sales Tax on Motor Fuel Total FY 2011 Motor Fuel Tax Collections per Department of Revenue Interest Earned on Motor Fuel Tax Funds (Per Accounting Records of OST) Total FY 2011 Motor Fuel Collections Motor Fuel Tax Funds on Deposit in the Guaranteed Revenue Debt Common Reserve Fund in Excess of Amount Required Total Amount Derived from Motor Fuel Taxes $ 462,180,137.15 8,613,380.24 470,793,517.39 (19,231,028.34) (6,464,584.67) 445,097,904.38 479,880,699.38 924,978,603.76 297,881.32 925,276,485.08 9,117,099.50 934,393,584.58 FY 2012 Original Appropriation (House Bill 78) - Motor Fuel Funds to Georgia Department of Transportation to State of Georgia General Obligation Debt Sinking Fund Total FY 2012 Original Appropriation (House Bill 78) - Motor Fuel Funds 713,602,699.00 193,634,596.00 907,237,295.00 Total Reserve for FY 2012 Appropriation to Department of Transportation (See Below) $ 27,156,289.58 The Constitution of the State of Georgia and the Official Code of Georgia provide that the amount of motor fuel-related collections in one fiscal year defines the amount to be appropriated in the subsequent fiscal year. The difference in the actual fiscal year 2011 motor fuel collections (including motor fuel funds on deposit in the Guaranteed Revenue Debt Common Reserve Fund at June 30, 2011), and the motor fuel appropriations in the 2012 Original Appropriations Act must be appropriated as motor fuel funds during fiscal year 2012, and is presented as a reservation of fund balance at June 30, 2011. (see Article III, Section IX, Paragraph VI of the Constitution of the State of Georgia and OCGA 50-17-23(b)(3)). 6 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) ANALYSIS OF RESERVE FOR LOTTERY FOR EDUCATION JUNE 30, 2011 Beginning Reserve for Lottery for Education - July 1, 2010 Less: Amounts Appropriated as Funds Available Beginning Reserve for Lottery for Education - July 1, 2010, Not Appropriated Additions Lottery Proceeds Collected Interest Earned FY 2010 Agency Lottery Surplus Returned Funds Available from Beginning Fund Balance Total Additions Deductions FY 2011 Appropriations Funds Lapsed Ending Reserve For Lottery for Education - June 30, 2011 $ 843,354,013.81 (482,213,421.91) 361,140,591.90 846,106,000.00 943,832.12 39,979,072.26 482,213,421.91 1,369,242,326.29 1,158,703,915.00 (9,000,000.00) 1,149,703,915 $ 580,679,003.19 Analysis of Reserve Restricted Scholarship Shortfall Reserve (50% of prior year disbursements) Shortfall Reserve (10% of prior year proceeds) Total Restricted Unrestricted $ 332,256,982.50 88,388,234.70 420,645,217.20 160,033,785.99 Ending Reserve For Lottery for Education - June 30, 2011 $ 580,679,003.19 This reserve is calculated as provided for in OCGA 50-27-13. OCGA 50-27-13(b)(3) requires that within the funds held for credit to the Lottery for Education account, a Scholarship Shortfall Reserve subaccount shall be established and calculated as follows: "An amount equal to 10 percent of the total amount of lottery proceeds disbursed during the preceding fiscal year in the form of scholarships and grants for higher education shall be deposited from lottery proceeds each year until such an amount equals 50 percent of such sum. Thereafter, only an amount necessary to maintain the scholarship shortfall reserve subaccount in an amount equal to 50 percent of the amount of lottery proceeds disbursed during the preceding fiscal year shall be deposited into the subaccount." In addition to this subaccount, the OCGA Section 50-27-13(b)(4) requires that within the funds held for credit to the Lottery for Education account, a Shortfall Reserve subaccount shall be maintained and shall be calculated as follows: "The amount of the shortfall reserve subaccount shall be equal to 10 percent of the total amount of lottery proceeds deposited into the Lottery for Education Account for the preceding fiscal year." Disposition of Unrestricted Lottery proceeds are subject to OCGA 50-27-13(b)(5). 7 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) ANALYSIS OF RESERVE FOR TOBACCO SETTLEMENT FUNDS JUNE 30, 2011 Beginning Reserve for Tobacco Settlement Funds - July 1, 2010 Additions Tobacco Settlements Received Interest Earned Early Remittance of FY 2011 Surplus FY 2010 Agency Tobacco Surplus Returned Total Additions Deductions FY 2011 Appropriations Ending Reserve For Tobacco Settlement Funds - June 30, 2011 $ 30,745,628.83 138,372,373.90 78,329.48 14,404.58 1,194,884.47 139,659,992.43 146,798,829.00 $ 23,606,792.26 This reserve represents funds available as provided by the State of Georgia's share of the National Association of Attorneys General's Master Tobacco Settlement Agreement. Although no specific legal requirement for this reserve exists, the State's budget writers have chosen to establish a separate appropriations fund for the disbursement of these funds. Accounting for these funds within a reserve facilitates identification of the unexpended funds available for future appropriation. 8 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) ANALYSIS OF RESERVE FOR GUARANTEED REVENUE DEBT COMMON RESERVE FUND JUNE 30, 2011 GUARANTEED REVENUE DEBT BOND ISSUE State Road and Tollway Authority Series 1998 Series 2001/Series 2011A Refunding Series 2003/Series 2011B Refunding Total State Road and Tollway Authority Georgia Environmental Finance Authority Series 1997 Total Guaranteed Revenue Debt Bond Issues AVAILABLE BALANCE JULY 1, 2010 BEGINNING RESERVE JULY 1, 2010 INTEREST EARNED AVAILABLE BALANCE JUNE 30, 2011 HIGHEST ANNUAL DEBT SERVICE REQUIREMENT ENDING RESERVE JUNE 30, 2011 EXCESS BALANCE JUNE 30, 2011 $ 8,880,412.50 $ 33,053.35 $ 8,913,465.85 $ - $ 8,913,465.85 29,599,121.25 110,169.22 29,709,290.47 29,596,500.00 112,790.47 24,406,750.00 90,843.18 24,497,593.18 24,406,750.00 90,843.18 62,886,283.75 234,065.75 63,120,349.50 54,003,250.00 9,117,099.50 8,413,170.00 31,314.25 8,444,484.25 - 8,444,484.25 $ 71,299,453.75 $ 265,380.00 $ 71,564,833.75 $ 54,003,250.00 $ 17,561,583.75 This reserve is calculated as provided for in OCGA 50-17-23(b)(3) which states, in part, "The amount to the credit of the common reserve fund shall at all times be at least equal to the aggregate highest annual debt service requirements on all outstanding guaranteed revenue obligations entitled to the benefit of such fund". 9 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) DETAIL OF NET REVENUE COLLECTIONS BY COLLECTING UNIT FOR THE YEAR ENDED JUNE 30, 2011 COLLECTING UNIT Agriculture, Department of Animal Industry Fees Consumer Protection Fees Entomology and Pesticides Permits Miscellaneous Receipts Plant Industry Fees Regional Farmers Market Fees Small Farmers Market Fees Weights and Measures Warehouse Fees $ 8,524.00 9,390.00 33,010.89 172,401.89 65,554.00 5,898,947.51 205,330.77 73,914.00 Audits and Accounts, Department of For Federal Audit Fees Investigation, Georgia Bureau of (Fraud Task Force) North Georgia College Undistributed For Nursing Home Audit Fees Community Health, Department of $ 900,834.81 (54,960.00) 2,091,997.90 2,937,872.71 2,385,662.68 Banking and Finance, Department of Fees Behavioral Health and Developmental Disabilities, Department of Patient Accounts Community Affairs, Department of 911 Fees Community Health, Department of Care Management Organizations Quality Assessment Fees Central Laboratory Fees Civil Penalties-Health Care End-Stage Renal Dialysis Fees Home Health Care License Hospital Provider Payment Laboratory License Long Term Care Penalties Medical License Fees Miscellaneous Fees Nursing Home Provider Fees Paramedic Certification Fees Private Home Care Providers Vital Record Fees 297,276.00 6,845,132.44 12,615.45 45,000.00 3,235,672.13 215,079,822.00 25,150.00 22,351.00 4,822,366.26 572,505.86 128,771,295.00 617,909.20 149,551.00 2,786,961.86 Corrections, Department of Confiscated Contraband Receipts Probation Supervision Fees Room and Board Assessments Supervision Transfer Fees 16,565.91 10,461,410.51 4,508,980.72 26,079.27 Driver Services, Department of A.D.A.D. Permits Driver's License Fees House Bill 160 - Excessive Speeder Fees 11,505.00 57,475,809.58 14,161,809.00 Early Care and Learning, Department of Child Care Learning Center Fees Civil Penalties 752,220.00 29,017.06 General Assembly of Georgia Legislative Earned Fees Legislative Service Fees Miscellaneous 71,730.16 23,283.55 979.59 Governor, Office of the Office of Consumer Affairs Buying Service Fees Fines Motor Vehicle Arbitration Fees Professional Standards Commission Teachers Certification Fees 400.00 127,255.50 539,458.40 211,749.03 $ 6,467,073.06 5,323,535.39 20,158,138.44 5,634,936.84 10,670,637.28 363,283,608.20 15,013,036.41 71,649,123.58 781,237.06 95,993.30 878,862.93 10 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) DETAIL OF NET REVENUE COLLECTIONS BY COLLECTING UNIT FOR THE YEAR ENDED JUNE 30, 2011 Human Services, Department of Administrative Penalties - DUI Child Support Recovery Program Civil Penalties - Child Care $ 7,896,669.92 45,704.50 Insurance, Office of the Commissioner of Business Licenses and Permits Fraud Account Non Business Licenses and Permits Penalty and Interest State Premium Tax Insurance Company Regulation Refund of Local Premium Tax $ 360,669,593.33 411,243,518.30 (411,243,518.30) 34,800,081.82 3,307,397.96 4,549,143.45 1,638,915.09 360,669,593.33 Investigation, Georgia Bureau of Bingo License Fees Fingerprint License Applications GCIC Records Check Fees State Forfeiture Property Miscellaneous Receipts 16,100.00 494,013.00 271,493.75 2,220.23 56,416.46 Judicial System: Appeals, Court of Admission to Practice Certified Records Furnished Court Cost and Fees 20,366.50 261.00 409,241.55 Supreme Court Admission to Practice Certified Copies Furnished Cost in Cases Docketed Excess Convenience Fees 25,080.32 7,989.56 168,708.93 984.67 Labor, Department of Administrative Assessments Penalty and Interest Collections Safety Engineering Fees 19,893,756.44 4,138,164.77 5,045,685.40 Natural Resources, Department of Alligator Farm Permit Alligator Hunting License Asbestos License Fees Boat Registration Car Wash Certification Fees Cast Net Licenses - Resident Catch Out Pond Charter Boat Fishing Licenses Coastal Marshland Shore Protection Commercial Boat Licenses Commercial Fox Preserve Commercial Fox Breeder Commercial Quail Breeders License Crabbing License - Resident Crabbing License - Non Resident Dog Hunting License Fines - Environmental Protection Division Fines - Game and Fish Division Fur Dealers License - Resident Fur Trappers License - Resident Fur Trappers License - Non Resident Game Holding Permit Hazardous Site R & R Hazardous Waste Superfund Historic Preservation Application Fees Hunting and Fishing Licenses Land Disturbance Fees Lifetime License- Non Resident Lifetime License- Senior Discount Lifetime License- Veterans Lifetime Sportsman License Type A - Adult Lifetime Sportsman License Type I - Infant Lifetime Sportsman License Type Y - Youth Marina Pier Licenses Residential Operating Commercial Shooting Preserve 250.00 59,300.00 334,010.17 3,026,304.21 1,050.00 12,750.00 1,416.00 400.00 7,300.00 43,976.50 2,880.00 200.00 2,520.00 34,004.00 354.00 37,822.50 2,017,732.28 13,500.00 640.00 24,245.00 5,672.00 265.00 32,220.96 813,843.86 4,550.00 19,438,144.18 1,024,977.33 4,000.00 79,420.00 26,000.00 190,500.00 132,200.00 156,350.00 800.00 71,950.00 $ 7,942,374.42 404,965,131.65 840,243.44 429,869.05 202,763.48 29,077,606.61 11 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) DETAIL OF NET REVENUE COLLECTIONS BY COLLECTING UNIT FOR THE YEAR ENDED JUNE 30, 2011 Natural Resources, Department of (continued) Residential Operating Private Shooting Preserve Salt Water Bait Dealers License - Resident Salt Water Fishing Guide - Resident Salt Water Fishing Guide - Nonresident Salt Water Fishing Guide - Customer Resident Salt Water Fishing Guide - Customer Nonresident Salt Water Fishing Guide - Unlimited Customer Resident Scientific Collectors Permit Scrap Tire Shrimp Seizure Soft Shell Crab Dealer Solid Waste Fees State Federal Falconry Permit Surface Water Permit Fees Taxidermist License - Resident Taxidermist License - Non-Resident Title III Hazardous Substance Fee Water Well License Renewal Wild Animal Exhibit Permit Wild Animal Dealer License $ 6,225.00 725.00 3,525.00 550.00 17,100.00 4,000.00 2,400.00 10,221.98 6,437,646.77 502.50 439.00 10,110,482.40 630.00 28,500.00 22,250.00 590.00 609,813.25 76,200.00 5,481.30 30,678.90 $ 44,969,509.09 Pardons and Paroles, State Board of Parole Fees 2,803,325.67 Properties Commission, State Rental and Sale of Property 9,237,296.56 Public Safety, Department of Other Fees Overweight Citations State Forfeiture of Property 195,989.18 6,939,402.89 0.84 7,135,392.91 Public Service Commission Civil Penalties - Transportation Civil Penalties - Utilities License Fees 12,055.00 1,095,502.75 15,480.00 1,123,037.75 Revenue, Department of Taxes: Alcoholic Beverage and Liquor Refunds $ 51,450,255.04 (5,780.00) $ 51,444,475.04 Income - Corporation Refunds 915,602,961.34 (245,193,165.13) 670,409,796.21 Income - Individuals Refunds 9,931,097,812.42 (2,272,315,486.36) 7,658,782,326.06 Malt Beverage Refunds 77,698,629.51 (5,162.50) 77,693,467.01 Motor Fuel Excise and Motor Carrier Mileage Tax Refunds 471,428,200.54 (19,231,137.55) 452,197,062.99 Prepaid State Tax (Second Motor Fuel Tax) 480,505,927.66 Motor Vehicle Refunds 347,701,510.94 (48,833,301.56) 298,868,209.38 Property Refunds 77,316,810.11 (612,484.80) 76,704,325.31 Sales and Use - Regular Refunds 5,194,202,696.41 (113,425,966.89) 5,080,776,729.52 Tobacco Products Refunds 228,860,710.14 (2,640.10) 228,858,070.04 Wine Refunds 32,674,108.99 (8,633.23) 32,665,475.76 15,108,905,864.98 12 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) DETAIL OF NET REVENUE COLLECTIONS BY COLLECTING UNIT FOR THE YEAR ENDED JUNE 30, 2011 Revenue, Department of (Continued) Administrative Costs of Collections Real Estate Transfer Tax Sales Tax Education Local Option Homestead Option Local Option MARTA Special Purpose Interest Penalties Identification of Prior Period Receipts Coin-Operated Amusement Machines Public Service Corporation Assessments Unclaimed Property $ 199,958.28 15,638,578.38 1,091,640.70 13,163,621.80 3,225,578.09 11,435,885.54 $ 44,755,262.79 62,126,172.62 67,013,011.10 (47,757,659.88) 12,856,555.93 1,056,517.89 84,033,159.40 $ 224,083,019.85 $ 15,332,988,884.83 Secretary of State Boxing Commission Corporations Elections GA Laws Professional Examinations Qualifying Fees Real Estate Securities State Ethics 79,015.30 43,127,178.87 113,477.00 5,967.38 23,776,425.71 172,280.00 3,493,891.71 10,284,947.60 425,865.25 81,479,048.82 Student Finance Commission, Georgia Georgia Non-Public Post-Secondary Education Commission Application and Renewal Fees Sale of Publications 1,554,107.74 38,722.65 1,592,830.39 Superior Court Clerks' Cooperative Authority Drivers' Education and Training Indigent Defense Fund Interest Income Judicial Operations Fee Peace Officers and Prosecutors Training Fund Senate Bill 218 Collections Sexual Offender Annual Registration State Children's Trust Fund 10,710,621.01 42,426,463.20 36,539.62 31,024,485.35 25,547,135.54 1,790,387.24 1,250.07 1,310,328.44 112,847,210.47 Treasurer, Office of the State Anonymous Campaign Contributions Dividends on Stock Interest Earned (Net of Bank Charges) State General Funds Motor Fuel Tax Funds Legal Settlement Miscellaneous 1,525.00 1,090.04 (368,303.47) 297,881.32 45,836.28 52.34 (21,918.49) Workers' Compensation, State Board of Assessments No Dependent Death Cases Penalty Fines 20,343,127.26 180,000.00 555,610.95 21,078,738.21 Total Net Revenue Collections $ 16,558,647,527.35 13 STATE OF GEORGIA SELECTED SUMMARY FINANCIAL INFORMATION GENERAL FUND (STATUTORY BASIS) LEGISLATIVE APPROPRIATION AND ALLOTMENTS TO SPENDING UNITS FOR THE YEAR ENDED JUNE 30, 2011 Legislative Branch General Assembly of Georgia Georgia Senate Georgia House of Representatives Georgia General Assembly Joint Offices Audits and Accounts, Department of Judicial Branch Appeals, Court of Judicial Council Juvenile Courts Prosecuting Attorneys Superior Courts Supreme Court Executive Branch Accounting Office, State Administrative Services, Department of Agriculture, Department of Banking and Finance, Department of Behavioral Health and Developmental Disabilities, Department of Community Affairs, Department of Community Health, Department of Corrections, Department of Defense, Department of Driver Services, Department of Early Care and Learning, Department of Economic Development, Department of Education, Department of Employees' Retirement System Forestry Commission, Georgia Governor, Office of the Human Services, Department of Insurance, Office of the Commissioner of Investigation, Georgia Bureau of Juvenile Justice, Department of Labor, Department of Law, Department of Natural Resources, Department of Pardons and Paroles, State Board of Personnel Administration, State Properties Commission, State Public Defender Standards Council, Georgia Public Safety, Department of Public Service Commission Regents, University System of Georgia Revenue, Department of Secretary of State Soil and Water Conservation Commission Student Finance Commission, Georgia Teachers' Retirement System Technical College System of Georgia Transportation, Department of Veterans Service, Department of Workers' Compensation, State Board of General Obligation Debt Sinking Fund Other Georgia Building Authority Georgia Environmental Finance Authority Georgia Ports Authority Georgia Technology Authority Total Legislative Appropriation Appropriation for Fiscal Year 2011 Budget Funds Adjustments Lapsed $ 9,773,562.00 17,093,475.00 8,478,193.00 29,311,286.00 12,691,729.00 12,969,365.00 6,762,764.00 56,487,434.00 57,821,988.00 7,871,096.00 3,759,308.00 7,957,930.00 29,324,663.00 11,091,754.00 799,795,642.00 37,876,972.00 2,236,167,296.00 975,400,433.00 8,670,792.00 57,062,902.00 356,190,910.00 27,516,830.00 7,067,414,444.00 9,030,245.00 27,936,105.00 37,164,639.00 473,162,406.00 15,646,014.00 57,479,965.00 258,258,072.00 37,218,806.00 16,809,161.00 86,522,365.00 51,867,654.00 550,000.00 37,821,734.00 99,417,197.00 7,877,125.00 1,811,374,050.00 121,793,842.00 29,780,602.00 2,658,245.00 833,775,375.00 850,000.00 311,525,586.00 673,809,954.00 20,320,198.00 21,199,060.00 1,182,283,016.00 - $ - - - - - (2,939,600.00) - - $ - - - - - (20,000.00) (9,000,000.00) - - $ 18,063,622,184.00 $ (2,939,600.00) $ (9,020,000.00) 14 Net Appropriation Balance Due Spending Unit July 1, 2010 Cash Allotments Drawn Allotments Funds Returned by Spending Unit Surplus Lapsed Balance June 30, 2011 $ 9,773,562.00 17,093,475.00 8,478,193.00 29,311,286.00 12,691,729.00 12,969,365.00 6,762,764.00 56,487,434.00 57,821,988.00 7,871,096.00 3,759,308.00 7,957,930.00 29,324,663.00 11,091,754.00 799,795,642.00 37,876,972.00 2,233,227,696.00 975,400,433.00 8,670,792.00 57,062,902.00 356,190,910.00 27,516,830.00 7,067,414,444.00 9,030,245.00 27,936,105.00 37,164,639.00 473,162,406.00 15,646,014.00 57,479,965.00 258,258,072.00 37,218,806.00 16,809,161.00 86,522,365.00 51,867,654.00 530,000.00 37,821,734.00 99,417,197.00 7,877,125.00 1,811,374,050.00 121,793,842.00 29,780,602.00 2,658,245.00 824,775,375.00 850,000.00 311,525,586.00 673,809,954.00 20,320,198.00 21,199,060.00 1,182,283,016.00 - $ 3,852,810.06 - 161,953.05 1,146,429.19 205,545.56 - 1,147,332.68 6,553,946.77 714,548.55 58,082,456.39 60,767,464.39 2,407,388.29 3,855,824.48 1,535,723.62 3,856,906.28 58,858,017.85 1,199,419.40 32,932,595.29 10,094,570.05 10,787.41 4,575,411.00 24,066,008.64 2,024,646.00 5,140,585.16 3,107,174.69 1,073,670.97 3,639,481.62 1,434,898.55 875,486.62 38,623,740.89 592,878.50 268,902,301.35 848,097.00 42,825.41 135,824,111.14 - $ 12,009,643.87 15,002,316.56 6,494,854.64 29,311,286.00 12,670,760.92 12,782,591.22 6,762,146.00 55,070,070.63 57,139,200.93 7,643,202.87 3,653,183.56 7,957,930.00 30,042,882.80 11,091,754.00 788,936,900.91 36,883,110.05 2,227,575,119.34 985,276,493.37 10,304,098.01 57,952,655.89 357,116,368.00 28,806,606.36 7,081,354,496.67 9,030,245.00 28,454,507.34 37,272,518.03 482,057,774.80 15,390,485.12 57,579,429.71 247,591,120.67 39,016,116.94 16,584,906.53 87,080,792.25 51,837,136.82 425,975.00 37,821,734.00 100,243,847.81 8,635,461.97 1,808,091,649.34 119,528,793.11 27,350,378.63 1,402,535.02 797,767,035.94 776,954.00 311,798,537.60 697,998,907.29 19,594,505.13 16,127,659.63 1,088,511,815.30 - $ - - - 275,099.09 - 137,896.65 257,337.04 108,944.28 - 60,522.29 2,481,222.00 183,987.40 853,816.93 9,349.27 - 2,629,856.00 288,000,000.00 30,576,376.00 49,097,515.00 $ (502,199.54) (222,698.32) (618,726.58) (275,099.09) (500.93) (32,098.46) (618.00) (849,833.46) (168,979.04) (647.76) (244,021.09) (257,337.04) (130,874.73) (108,944.28) (2,739,923.64) (527,562.13) (43,300,065.20) (691,558.80) (55,901.76) (6,455.19) (610,265.62) (15,494.14) (9,529,709.94) - (37,053.33) (891,094.13) (941,993.12) (10,000.00) (360,546.20) (8,317,729.27) (227,335.06) (224,254.47) (707,491.53) (91,039.47) (2,481,222.00) (183,987.40) (204,383.42) (1,595.14) (4,136,217.59) (23,600.97) (1,222,910.97) (89,981.92) (39,531,263.62) (73,046.00) (232,524.63) (1,017,650.57) (573,789.87) (4,774,811.12) (324,978.00) (2,629,856.00) (288,000,000.00) (30,576,376.00) (49,097,515.00) $ 1,114,528.65 1,868,460.12 1,364,611.78 - 182,420.20 1,301,104.51 773,075.47 513,808.03 227,245.37 298,238.15 14,672,764.22 1,180,848.37 20,434,967.85 50,199,845.22 718,180.52 2,959,615.40 2,551,635.78 35,388,255.24 643,963.73 31,933,622.13 257,208.13 256,316.29 4,115,400.09 26,415,230.70 3,874,666.38 104,025.00 2,076,140.46 313,738.86 5,880,929.54 2,642,210.95 2,041,214.68 26,110,165.60 87,402.27 243,695,697.49 1,000,000.00 339,414.66 229,270,333.84 - $ 18,051,662,584.00 $ 738,155,036.85 $ 17,949,808,495.58 $ 374,671,921.95 $ (497,873,761.54) $ 716,807,285.68 15