Single audit report, June 30, 1998

G.A
I\~'DO
" f.\\'1)
\qql ~L.'~

-----State of GeorBia.------
EIN 58-0973190
Sing[e Audit ~port
EJune 30, 1998
Prepared by GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
Oaude ~C{)ickers, StateAuditor
GeorfJia's State (f[ower
Cover q)rRwino6]!&ott(Fuss qn 1916, with the support of the Georgia Cfederation of G\Vomen's OU&S, the Oerokee rose was named the state fora emfJ(em.
Qfhe name ~Oerokee ~se~ is a oca desifl"'ltion deri'Vedfrom the Oerokee qndians who widd~ distrilntted the pant.

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 13,1999

To the Citizens of the State of Georgia, The Honorable Roy E. Barnes, Governor of Georgia
and Members of the General Assembly of Georgia
I am pleased to submit the eighth Single Audit Report of the State of Georgia. This report covers the fiscal year ended June 30, 1998. Our audit meets the requirements of the Single Audit Act Amendments of 1996 and the Office ofManagement and Budget Circular A-133.
The Single Audit Report of the State of Georgia discloses the results of the financial operations of the State of Georgia reporting entity, as well as its compliance with requirements applicable to Federal fmancial assistance programs administered by the State through the following three reports:
1. Independent Auditor's Report on General Purpose Financial Statements
2. Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
3. Report on Compliance with Requirements Applicable to each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133
In submitting this report, I would like to express my appreciation to all those who made the completion of this audit possible, particularly the members of each organizational unit of the State of Georgia and the staff of this office.
Respectfully,

Claude L. Vickers State Auditor

- - - - - - - - - State of GeorfJia---------
Table of Contents
June 30, 199B

SECTION A - GENERAL PURPOSE FINANCIAL STATEMENTS AND

Page

REQUIRED SUPPLEMENTARY INFORMATION

Independent Auditor's Report on General Purpose Financial Statements

A-3

General Purpose Financial Statements

Combined Balance Sheet - All Fund Types, Account Groups and Discretely Presented Component Units

A-8

Combined Statement ofRevenues, Expenditures and Changes in Fund Balances -

All Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units

A-I2

Statement ofFunds Available and Expenditures Compared to Budget - Budget Fund

A-I6

Combined Statement ofRevenues, Expenses and Changes in Fund Equity/Fund Balances -

All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units

A- I 8

Combined Statement ofCash Flows-

All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units

A-22

Statements ofPlan Net Assets - Pension Trust Funds and Discretely Presented Component Units

A-24

Statement ofChanges in Plan Net Assets - Pension Trust Funds and Discretely Presented Component Units A-26

Combined Statement ofChanges in Fund Balances - College and University Funds

A-28

Combined Statement ofCurrent Funds Revenues, Expenditures and Other Changes-

College and University Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. A-32

Notes to the Financial Statements

A-33

Required Supplementary Information

Retirement Systems - Required Supplementary Information

A-93

Year 2000 Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. A-97

AUDITOR'S SECTION

SECTION B - REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

, B-3

SECTION C - REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH

MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN

ACCORDANCE WITH OMB CIRCULAR A-133

C-3

SECTION D - FINDINGS AND QUESTIONED COSTS Summary ofAuditor's Results Financial Statement Findings Federal Awards Findings and Questioned Costs

D-5 D-9 D-29

- - - - - - - - - State of GeorfJia - - - - - - - - -
Table of Contents
JUlIe 30, 1996

AUDITEE'S SECTION
SECTION E - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ScheduleofExpenduuresofFederalAwards Schedule ofCluster Programs SECTION F - AUDITEE'S RESPONSES Summary Schedule ofPrior Year Findings and Questioned Costs Corrective Action Responses to Current Year Findings and Questioned Costs
APPENDIX "A" Listing ofOrganizational Units Comprising the State ofGeorgia Reporting Entity

E-5 E-45 F-5 F-51
AP-3

.8~cttonA .
Genera[9?urpose(inancia[ Statements
and
~equircdSupp[emen4tr1'- Clnformation

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400

INDEPENDENT AUDITOR'S REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS
The Honorable Roy E. Barnes Governor of Georgia
and Members of the General Assembly of the State of Georgia
We have audited the accompanying general purpose financial statements of the State of Georgia, as listed in the Table of Contents, as of and for the year ended June 30, 1998. These general purpose fmancial statements are the responsibility of the State's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We did not audit the financial statements of certain organizations which, combined, represent less than 1% of the assets and revenues of the general fund, 100% of the assets and revenues of the capital projects funds, 64% of the assets and 35% of the revenues of the internal service funds, 68% ofthe assets of the fiduciary funds and less than 1% of the expendable trust funds revenues and 100% of the pension trust funds revenues, and 6% of the assets and less than 1% of the liabilities of the general fixed assets and general long-term debt account groups, respectively. In addition, we did not audit certain discretely presented component units which represent less than 1% of the assets and revenues of the component unit governmental fund types, 84% ofthe assets and 95% of the revenues of the component unit proprietary fund types and 98% of the assets and 99% of the revenues of the component unit fiduciary fund types. The financial statements of these organizations and component units were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for those financial statements, is based solely upon the reports of the other auditors.
Except as discussed in the following paragraphs, we conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The fmancial statements of the Employees' Retirement System of Georgia, Georgia Lottery Corporation, Georgia Ports Authority, and Teachers' Retirement System of Georgia were not audited in accordance with Government Auditing Standards. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinion.

The State of Georgia's accounting system is decentralized in nature. The management of each organizational unit is responsible for maintaining accounting records pertinent to its operations and each retains complete responsibility and control over their operations, including revenue collections and disbursements. The State's principal accounting system, the Fiscal Accounting and Control System (FACS), is utilized by 66 state organizations. This accounting system allows for the accumulation of financial data, by state organization, on a basis of accounting prescribed or permitted by the budgetary statutes and regulations of the State of Georgia. Constitutional and statutory provisions of the State of Georgia do not provide for a position or organizational unit responsible for the preparation of statewide financial statements. It was necessary for staff of the Department of Audits and Accounts to consolidate financial information presented in individual organization financial statements and to prepare adjustingjoumal entries necessary for the production of the general purpose financial statements. We are therefore not independent with regard to the preparation of accounting entries required to convert the consolidated budgetary financial statements to general purpose financial statements prepared in accordance with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, the State of Georgia did not maintain adequate systems to account for or to depreciate (when required) fixed assets in conformity with generally accepted accounting principles. We were unable to determine the effect of these limitations on the general purpose financial statements.
As discussed in Note 1 to the general purpose financial statements, the accounting systems of the State of Georgia did not facilitate recording encumbrances in conformity with generally accepted accounting principles. Contractual obligations for services performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. The recognition of encumbrances as expenditures and liabilities is not consistent with generally accepted accounting principles. We were unable to determine the effect of these limitations on the general purpose financial statements.
As discussed in Note 1 to the general purpose fmancial statements, revenues for certain expenditure-driven programs were accrued based on the unexecuted portion of contracts for goods and services. These accruals primarily affected the Intergovernmental and Sales and Services revenue categories. We were unable to determine the effect of this departure from generally accepted accounting principles on the general purpose financial statements.
As discussed in Notes 9 and 10 to the general purpose fmancial statements, the State of Georgia did not maintain adequate systems to identify, classify, and report leases as operating or capital leases in conformity with generally accepted accounting principles. We were unable to determine the effect of these limitations on the general purpose fmancial statements.
As discussed in Note 1 to the general purpose fmancial statements, the State of Georgia maintained certain pension trust funds on essentially the cash basis of accounting. This basis of accounting is not in conformity with generally accepted accounting principles. We were unable to determine the effect of this departure from generally accepted accounting principles on the general purpose financial statements.
As discussed in Note 1 to the general purpose fmancial statements, the State's accounting system has limitations in identifying transactions between organizations whose financial activity is included within an individual fund. State accounting policies and procedures allow the recording of revenues, receivables, expenses and payables for such transactions. All such intrafund transactions have not been eliminated as required by generally accepted accounting principles. We were unable to determine the effect of these overstatements on the general purpose fmancial statements.
A-4

The State of Georgia made payments to providers of medical services in excess of amounts authorized to be paid in accordance with the State of Georgia approved State Plan under Title XIX ofthe Social Security Act. The State of Georgia currently maintains on-going efforts to identify and recover overpayments made to providers. The actual amount of these overpayments, however, cannot be presently determined, and no provision for the amount of understatement of receivables from providers that may result has been made in the general purpose financial statements.
The State of Georgia did not maintain adequate systems to effect the timely detection of either duplicate claim payments or claim overpayments of the Risk Management Trust Funds maintained at the Department of Administrative Services. The Department of Administrative Services also made claim payments without providing supporting documentation. We were unable to determine the accuracy and completeness of the transactions and balances that comprise these Risk Management Trust Funds, which are included in the Internal Service Fund.
Apparent misappropriations of Georgia Building Authority assets were discovered in the food service and parking operations. The possible outcome of these matters, which have been reported to appropriate State officials, is uncertain at this time. Accordingly, no provision has been made in the Internal Service Fund for the resolution of these matters.
In our opinion, based on our audit and the reports of other auditors, except for the effects of the matters discussed in the preceding paragraphs, the general purpose financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of the State of Georgia as of June 30, 1998, and the results of its operations, the cash flows of its proprietary fund types and its nonexpendable trust funds, and the changes in fund balances of the State's colleges and universities, for the year then ended in conformity with generally accepted accounting principles.
As discussed in Note 2 to the general purpose financial statements, the State of Georgia implemented Statement No. 31 ofthe Governmental Accounting Standards Board, Accounting and Financial Reportingfor Certain Investments andfor External Investment Pools, in fiscal year 1998.
In accordance with Government Auditing Standards, we have also issued a report dated May 13, 1999 on our consideration of the State of Georgia's internal control over financial reporting and on our tests of its compliance with certain laws, regulations, contracts and grants. Those reports are included in the State of Georgia Single Audit Report.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The section entitled "Retirement Systems - Required Supplementary Schedules" within Financial Section, Required Supplementary Information is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, except for the effects ofthe matters noted above, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole.
The section entitled "Year 2000 Issues" within Financial Section, Required Supplementary Information is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that the State of Georgia is or will become year 2000 compliant, that the State of Georgia's year 2000 remediation efforts will be successful in whole or in part, or that parties with which the State of Georgia does business are or will become year 2000 compliant.
A-5

The accompanying Schedule of Expenditures of Federal Awards, located in Section F, is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, and is not a required part ofthe general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general purpose fmancial statements taken as a whole.
The Introductory and Statistical Sections, identified in the Table of Contents, were not audited by us and, accordingly, we express no opinion on such information.

May 13,1999

Claude L. Vickers State Auditor

A- 6

- - Genera[ Wurpose g;inancia[ Statements---

State of GeorfJia - - - - - - - -
Combined Balance Sheet All Fund Tvpcs Account Groups and Discretelv Presented Component Units
June 30, 199B

Primary Govenunent

Assets and Other Debits
Assets: Cash and Cash Equivalents Cash and Cash Equivalents in Nonexpendable Trust Funds Investments Receivables (Net of Allowances for Uncollectibles) Intergovenunental - Federal Interest and Dividends Notes and Loans Taxes Other Due from Other Funds Due from Primary Govenunent Due from Component Units Interfund Receivables Inventories Prepaid Items Restricted Assets Cash and Cash Equivalents Investments Receivables Interest and Dividends Loans Advances to Other Funds Advances to Component Units Deferred Compensation Plan Assets Fixed Assets (Net, Where Applicable, of Accumulated Depreciation) Deferred Charges Other Assets Other Debits: Amount Available in Debt Service Fund Amount to be Provided for Retirement of General Long-Term Debt
Total Assets and Other Debits

General

Govenunental Fund Types

Special Revenue

Debt Service

Capital Projects

Proprietary Fund Types

Enterprise

Internal Service

2,712,193,919 S
623,223,375
2,022,180,113 26,712,975
1,035,860,281 192,899,052

2,872,348 1,779,103

135,316
45,462,627 82,174,758

1,599

233,215,021 S

S 963,777,869

4,149,166 S

7,283,687

222,841,604

1,014,906,672

11,903,012

2,338,835

1,189,172 3,300,425

16,230,434

10,837,247 18,191,794
419,830
12,262,992 682,774

6,925 107,500
50,862,768

15,209,275

313,620

411,401,860

S 6,791,819,609 S

4,653,050 S 233,215,021 S 995,379,753 . S 245,873,659 S 1,475,986,856

Liabilities, Equity and Other Credits
Liabilities: Cash Overdraft Accounts Payable and Other Accruals Compensated Absences Payable Claims and Judgments Payable Contracts Payable SalarieslWithholdings Payable Benefits Payable Due to Other Funds Due to Primary Govenunent Due to Component Units Accrued Interest Payable Undistributed Local Govenunent Sales Tax Deferred Revenue Capital Leasesl1nstaltment Purchases Payable Mortgage Loans under Repurchase Agreements Funds Held for Others Other Liabilities Deposits and Overpayments Advances from Other Funds Advances from Primaty Govenunent Long-Term Debt Payable (Net of Unamortized Discounts)
Total Liabilities

S

S

921,741,086

1,570,048,158 616,236,408 399,851,894 15,038,805
2,204,421
53,157,604 102,123,002

38,992,479 486,838

119,305 S 172,257
93,490
1,800

S 3,719,880,695 S

386,852 S

The notes to 'the financial statements are an integral part ofthis statement. A-8

S

22,611,627 S

S

26,573,264

1,000,427

20,535,769

236,200

7,964,738

357,293,702

15,363,494

255,655

18,910,273

40,481

159,758,318

143

86,456

14,513,809

73,701 10,579,816

18,588,773

1,764,138

1,092,857

0S

83,223,614 S 175,764,409 S 418,255,618

I- -
I- I- -
,- - -

I I

Totals -

Totals -

Fiduciary Fund Type

Account Groups

(Memorandum Only)

ComponentUnits

(Memorandum Only)

General

General

l

Trust and Agency

College and University

Fixed Assets

Long- Tenn Debt

Primary Government

Governmental Fund Types

Proprietary Fund Types

Fiduciary Fund Types

Reporting Eutity

s 1,797,015,993
185,698 14,644,907,465
1,014,811 93,409,000
4,104,717 71,787,161 40,504,983
24,544
394,622,648
37,733

s 429,544,828

s

209,917,340

38,607,643 57,940
48,693,306

155,835,048

26,848,073 10,094,414

4,636,846,469

2,914,888,301

233,215,021 4,492,541,351

s 5,183,402,614
185,698 17,682,446,673
2,061,802,567 134,421,762 52,798,023
1,107,647,442 419,275,039 18,191,794
555,146
3,300,425 84,573,692 92,978,089
0
6,925 15,316,775 394,622,648
7,963,450,250
50,900,501
233,215,021
4,492,541,351

s
801,970
100,989 1,325,853

81,660,480
340,726,843
108,188,065 16,148,160
936,455,396
63,895,216
2,204,564

95,126 228,367

5,001,303 2,782,433
158,947,976 412,589,856
6,121,452 598,113,658

91,630,744

818,669,441 19,649,989 83,810,966

11,879,924

s 3,357,636
35,806,181,708

5,268,420,730 185,698
53,830,157,194

250,880,885 180,376,720
42,175

2,169,990,632 401,450,807 989,354,408
1,107,647,442 664,872,828 18,191,794 2,204,564 555,146 3,300,425 89,670,121 96,031,064

158,947,976 412,589,856

6,121,452 598,113,658
6,925 15,316,775 394,622,648

741,634

8,874,492,069 19,649,989
134,711,467

233,215,021

4,504,421,275

s s s s s s s s s 17,047,614,753

5,556,445,061

2,914,888,301

4,725,756,372 39,991,632,435

106,062,973

3,654,965,798

36,241,580,758

79,994,241,964

s

s

s

6,364,952

281,150,747

104,384,204

23,629 658,673

5,616,060 21,800,000
2,400,826

714,632,873 6,925

78,662,613 20,232,718
19,591,279 149,585
1,960,342

7,000

s s 721,687,052

535,955,374 s

s

s

s 22,730,932

1,257,538,502

212,076,813

324,661,955

697,979

357,991,681

1,604,577,580

621,916,578

581,410,212

18,191,794

2,204,564

53,157,604

195,461,381

4,344,386

35,156,920

773,216,631

19,225,196

3,724,480

6,925



4,508,637,194

4,509,737,051

s s s 4,725,756,372 10,380,909,986

1,157,986 s
4,406,340 1,055,264
220,311

s
86,933,034 2,961,892
2,125,414 319,857

290,951

224,249

16,444,144

215,666 10,824,660

96,167,505 739,421
17,728,827 302,332,077
11,699,366 14,651,065

107,500

1,534,164,900

s s 18,171,178

2,086,599,251

A-9

s
2,254,730
68,434 39,946

23,888,918 1,351,132,606
328,679,111 357,991,681 1,606,702,994 622,525,180 581,410,212
18,191,794 555,146
2,204,564 16,444,144 53,157,604 291,844,552 46,721,001 17,728,827 1,075,548,708 30,924,562 18,375,545
6,925 107,500

6,043,901,951
2,363,110 s 12,488,043,525

(continued)

State of Georgia - - - - - - - -
Combined Balance Sheet All Fund Tvpcs, Account Groups and DiscretelY Presented Component Units (continued)
June 30, I99B

Primary Government

Governmental Fund Types

Proprietary Fund Types

General

Special Revenue

Debt Service

Capita! Projects

Enterprise

Internal Service

Equity and Other Credits: Other Credits: Investment in General FIxed Assets

s

-$

-s

-$

-$

-$

Equity: Net Investment in Plant Colleges andUniversities Contributed Capita! Retained Earnings Reserved Unreserved Fund Balances Reservedfor Encumbrances Reserved for Advances Reserved for Inventories Reserved for Debt Service Reserved for Disaster Assistance Reserved for Distance Learning andTelemedicine Reserved for Pension Benefits Reserved for Guanmteed Revenue Debt Common Reserve Fund Reserved for Hazardous Waste Trust Fund Reserved for Investment Trust Fund Reserved for Lottery for Education Reserved for Midyear Adjustment Reserved for Motor Fuel Tax Funds Reserved for Revenue Shortfall Reserved for Underground Storage Trust Fund Reserved for Year 2000 Project Reserved for Other Specific Purposes Unreserved, Designated Designated for Liability Trust Fund Designated for Future Capita! Outlay Designated for Other Specific Purposes Unreserved, Undesignated Total Equity
Total Equity and Other Credits

s

s

4,174,127 114,425
44,268,275
588,489 17,936,760
17,921,100 13,321,355
201,315,730 117,181,823 887,743,155 351,545,470
42,498,465 125,338,806 72,247,308
10,256,598
112,000 1,165,375,028
s s 3,071,938,914
s s 3,071,938,914

s

s

233,215,021

s

s

274,590,158

70,109,250

715,471,828 67,669,252

-
1,408,165

4,266,198
s 4,266,198
s 4,266,198

s 233,215,021 s 233,215,021

907,629,259
3,118,715
s 912,156,139 s 912,156,139

s 70,109,250

1,057,731,238

s 70,109,250

1,057,731,238

Total Liabilities, Equity and Other Credits

s s 6,791,819,609

s s s 4,653,050

233,215,021

995,379,753

s 245,873,659

1,475,986,856

The notes to the financial statements are an integral part ofthis statement.

A-1O

L L l
!
~

Fiduciary Fund Type
Trust and Agency

College and University

Account Groups

General

General

Fixed

Long-Term

Assets

Debt

Totals (Memorandum
Only)
Primary Govenunent

Govenunental Fund Types

Component Units
Proprietary Fund Types

Fiduciary Fund Types

Totals (Memorandum
Only)
Reporting Entity

s

-$

- $ 2,914,888,301 s

s - $ 2,914,888,301

91,630,744 $

321,635 $

- $ 3,006,840,680

s

$ 4,616,613,751 $

s

403,875,936

11,622,441,106 2,659,446,092

1,991,907,383

52,133,120 $ 16,325,927,701 $
s $ 16,325,927,701

5,020,489,687 $ 5,020,489,687 $

$
2,914,888,301 $

s $ 4,616,613,751
403,875,936 274,590,158
785,581,078 67,669,252
4,174,127 114,425
44,268,275 233,215,021
588,489 17,936,760 11,622,441,106 17,921,100 13,321,355 2,659,446,092 201,315,730 117,181,823 887,743,155 351,545,470 42,498,465 125,338,806 2,065,562,856
10,256,598 907,629,259
112,000 1,224,893,061
s 26,695,834,148
$ 29,610,722,449 $

$

$

1,001,936,816

s 4,616,613,751
403,875,936 1,276,526,974

95,622,405 455,169,458

881,203,483 522,838,710

375,041

12,898,278

36,239,217,648

4,174,127 114,425
44,268,275 233,215,021
588,489 17,936,760 47,861,658,754 17,921,100 13,321,355 2,659,446,092 201,315,730 117,181,823 887,743,155 351,545,470 42,498,465 125,338,806 2,078,836,175

(4,113,990) (3,738,949) $

2,417,955 1,568,044,912 $

36,239,217,648 $

10,256,598 907,629,259
112,000 1,223,197,026 64,499,357,759

s 87,891,795 $ 1,568,366,547

36,239,217,648 $ 67,506,198,439

s s s s s s $ 17,047,614,753

5,556,445,061

2,914,888,301

4,725,756,372 s 39,991,632,435

106,062,973

3,654,965,798

36,241,580,758 $ 79,994,241,964

A-ll

State of GeorfJia
Combined Statement of Revenues, Expenditures and chan~es in Fund Balances
All Governmental Fund vpes, ExpendOOIe Trust Funds and Discretelv Presented Component Units For the Year Ended June 30, 199B

Primary Government

General

Governmental Fund Types

Special

Debt

Revenue

Service

Revenues: Taxes Licenses and Permits Intergovernmental Federal Other Sales and Services Fines and Forfeits Interest and Other Investment Income Rents and Royalties Contributions and Donations Penalties and Interest on Taxes Unclaimed Property Other

$ 11,439,170,422 $ 346,081,148
5,582,612,574 34,417,237
518,179,693 49,204,317 194,805,638 13,873,680 192,209,388 9,485,653 20,690,958 3,828,832

$
18,648,271 446,092

Total Revenues

$ 18,404,559,540 $

19,094,363 $

0

Expenditures: Current General Government Education Health and Welfare Transportation Public Safety Economic Development and Assistance Culture and Recreation Conservation Capital Outlay Debt Service: Principal Interest Other Debt Service Charges

$

650,346,672 $

6,155,220,908

6,479,723,177

1,385,250,996

1,193,748,916

264,913,965

185,622,125

45,865,385

2,620,579 $
387,030,000 258,317 ,069

Total Expenditures

$ 16,360,692,144 $

2,620,579 $

645,347,069

Excess (Deficiency) of Revenues Over (Under) Expenditures

$ 2,043,867,396 $

16,473,784 $ (645,347,069)

The notes to the financial statements are an integral part ofthis statement.

A-12

(
L

~~.
L...--

Capital Projects

Fiduciary Fund Type Expendable
Trust

Totals (Memorandum
Only) Primary Government

Component Units Governmental Fund Type

Totals (Memorandum
Only) Reporting
Entity

$

$

372,536,413 $ 11,811,706,835 $

$ 11,811,706,835

346,081,148

346,081,148

80,747,570 46,812
1,581,025

20,717,427 127,596
126,070,142 33,888
80,738

5,603,330,001 34,417,237
536,955,560 49,204,317
402,069,442 13,920,492
192,243,276 9,485,653
20,690,958 5,490,595

2,681,917
135,849 163,972 10,162,233

5,603,330,001 34,417,237
539,637,477 49,204,317
402,205,291 14,084,464
202,405,509 9,485,653
20,690,958 5,490,595

$

82,375,407 $

519,566,204 $ 19,025,595,514 $

13,143,971 $ 19,038,739,485

$

335,441 $

$ 653,302,692 $

99,275

6,155,320,183

64,702,740

6,544,425,917

1,385,250,996

1,193,748,916

279,499,324

544,413,289

102,521

185,724,646

45,865,385

346,296,387

346,296,387

46,812 158,508 239,009

387,076,812 258,475,577
239,009

$

347,076,157 $

344,403,860 $ 17,700,139,809 $

$ 36,267,248

653,302,692 6,155,320,183 6,544,425,917 1,385,250,996 1,193,748,916
544,413,289 221,991,894
45,865,385 346,296,387

387,076,812 258,475,577
239,009

36,267,248 $ 17,736,407,057

$ (264,700,750) $

175,162,344 $ 1,325,455,705 $

(23,123,277) $ 1,302,332,428 (continued)

A-13

- - - - - - - - State of GeorfJia - - - - - - - -
Combined Statement of Revenues. Expenditures and Changes in Fund Balances
All Governmental Fund Tvpcs, Expendable Trust Funds and Discrddv Presented Component Units (continued) For the Ycar Ended June 30. 199B
Primary Government

General

Governmental Fund Types

Special

Debt

Revenue

Service

Other Financing Sources (Uses): Operating Transfers In Operating Transfers from Primary Government Operating Transfers from Component Units Operating Transfers Out Operating Transfers to Component Units Proceeds of General Fixed Asset Dispositions Capital Leases General Obligation Bond Proceeds

$

87,322,527 $

555,451,008 (2,173,952,811)
(65,663,706) 4,114,623 131,085

$

669,908,746

(16,500,000)

Total Other Financing Sources (Uses)

$ (1,592,597,274) $

(16,500,000) $

669,908,746

Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses

$

451,270,122 $

(26,216) $

24,561,677

Fund Balances, July 1 Adjustments (Net) Residual Equity Transfers In Residual Equity Transfers from Component Units Residual Equity Transfers Out Residual Equity Transfers to Component Units Transfer ofEquity to Component Units Increase in Inventories

2,603,974,320 1,504,009 82,000
14,894,947
(1,895,883)
2,109,399

4,292,414

208,653,344

Fund Balances, June 30

$ 3,071,938,914 $

=========== 4,266,198 $

233,215,021

The notes to the financial statements are an integral part ofthis statement.

A-14

L

L

L

Totals -

Totals -

L

Fiduciary

(Memorandum

(Memorandum

Fund Type

Only)

Component Units

Only)

Capital

Expendable

Primary

Governmental

Reporting

Projects

Trust

Government

Fund Type

Entity

$

$

4,414,614 (128,576,564)

257,123,411

$

132,961,461 $

3,281,250 $

760,512,523 $ 0
559,865,622 (2,319,029,375)
(65,663,706) 4,114,623 131,085
257,123,411

3,281,250 $ (802,945,817) $

$ 18,915,057

760,512,523 18,915,057
559,865,622 (2,319,029,375)
(65,663,706) 4,114,623 131,085
257,123,411

18,915,057 $ (784,030,760)

$ (131,739,289) $

178,443,594 $

522,509,888 $

1,041,854,815 21,658,031
18,509,700 (165,856)
(37,961,262)

1,865,582,103 (6,504)
(199,786)

5,724,356,996 23,155,536 82,000 33,404,647 (165,856) (39,857,145) (199,786) 2,109,399

(4,208,220) $

518,301,668

469,271

5,724,826,267 23,155,536 82,000 33,404,647 (165,856) (39,857,145) (199,786) 2,109,399

$

912,156,139 $ 2,043,819,407 $ 6,265,395,679 $

(3,738,949) $ 6,261,656,730

A-IS

- - - - - - - - - - State of Georgia - - - - - - - - - -
Statement of Funds Available and Expenditures Compared toBudget BUdget Fund
For the Rscal Year Ended June 30. 1993

Funds Available
Revenues: State Appropriation Lottery Proceeds Federal Revenues Other Revenues Retained
Total Revenues
Carry-Over from Prior Year: Transfer from Fund Balance
Total Funds Available

Original Appropriation

Final Budget

Actual

Variance Favorable (Unfavorable)

$ 11,262,036,635 $ 11,976,541,772 $ 11,971,597,333 $

506,500,000

601,923,390

601,923,390

4,600,936,445

5,775,791,064

5,190,228,443

3,027,666,502

4,535,210,525

3,976,927,885

(4,944,439) 0
(585,562,621 ) (558,282,640)

$ 19,397,139,582 $ 22,889,466,751 $ 21,740,677,051 $ (1,148,789,700)

1,938,643,415

1,463,059,924

(475,583,491 )

$ 19,397,139,582 $ 24,828,110,166 $ 23,203,736,975 $ (1,624,373,191)

Expenditures
Administrative Services, Department of Agricultural Exposition Authority Agriculture, Department of Agrirama Development Authority Audits and Accounts, Department of Banking and Finance, Department of Building Authority Community Affairs, Department of Corrections, Department of Defense, Department of Education, Department of Employees' Retirement System -
Administrative Expense Fund Forestry Commission General Assembly General Obligation Debt Sinking Fund Governor, Office ofthe Guaranteed Revenue Debt Common Reserve Fund Human Resources, Department of Industry, Trade and Tourism, Department of Insurance, Department of Investigation, Georgia Bureau of Judicial Branch Juvenile Justice, Department of Labor, Department of Law, Department of Medical Assistance, Department of Natural Resources, Department of

$

180,889,649 $

281,494,603 $

252,980,630 $

5,590,902

6,288,967

6,289,058

49,508,646

52,754,577

51,901,339

1,370,111

1,508,217

1,119,309

20,156,774

21,257,896

21,203,333

9,523,070

9,523,070

9,036,117

37,782,538

46,765,710

45,277,549

58,520,527

175,358,891

158,264,931

723,076,907

751,140,269

738,323,139

17,617,939

24,445,636

23,198,244

5,142,447,933

5,644,848,973

5,579,253,240

4,382,732 39,489,852 27,168,900 390,520,369 37,344,826
0 2,384,380,940
20,302,479 17,206,008 48,215,166 93,183,496 172,924,813 152,143,392 14,733,081 3,779,764,130 133,165,383

5,111,144 42,426,505 29,574,114 596,125,028 327,770,873
0 2,651,336,637
34,787,776 18,120,900 59,818,561 97,116,298 202,399,674 221,790,319 36,539,914 4,295,813,679 223,052,166

4,891,392 41,998,968 23,011,250 596,125,028 176,276,577
0 2,500,132,722
23,319,426 16,996,941 59,199,822 98,064,801 194,026,433 157,203,316 35,182,838 3,734,522,066 217,888,741

28,513,973 (91)
853,238 388,908
54,563 486,953 1,488,161 17,093,960 12,817,130 1,247,392 65,595,733
219,752 427,537 6,562,864
0 151,494,296
0 151,203,915
11,468,350 1,123,959 618,739 (948,503) 8,373,241
64,587,003 1,357,076
561,291,613 5,163,425

The notes to the financial statements are an integral part of this statement

A-16

L - - - - - - - - State of Georgia--------

Statement of Funds Available and Expenditures Compared toBudget

L

Budget Fund For the Fiscal veer Ended June 30. 199<5

L

L

Original

Final

Variance Favorable

Appropriation

Budget

Actual

(Unfavorable)

Pardons and Paroles, State Board of

$

Personnel Board, State - Merit System of

Personnel Administration

Public Safety, Department of

Public School Employees' Retirement System-Expense Fund

Public Service Commission

Public Telecommunications Commission

Regents of the University System of Georgia, Board of

Revenue, Department of

Secretary of State

Soil and Water Conservation Commission

Student Finance Commission

Teachers' Retirement System - Expense Fund

Technical and Adult Education, Department of

Transportation, Department of

Veterans Service, Department of

Workers' Compensation, State Board of

44,711,153 $
1,098,162,845 119,228,086 15,110,000 10,731,875 28,139,624
2,669,910,681 97,699,116 32,132,511 2,495,590
208,845,430 11,082,683
292,599,277 1,165,727,067
28,044,624 11,108,457

45,919,221 $
1,136,749,364 130,050,615 15,110,000 10,824,177 35,601,169
3,680,889,805 134,249,131 34,055,774 2,591,864 241,993,060 12,156,432 380,229,176
3,070,405,340 28,814,684 11,299,957

45,805,191 $
1,090,873,718 126,325,714 15,110,000 10,521,639 37,470,922
3,428,712,864 119,423,166 32,235,514 2,560,723 228,415,821 11,119,585 354,065,195
1,445,291,600 28,138,454 11,238,813

114,030
45,875,646 3,724,901 0 302,538 (1,869,753)
252,176,941 14,825,965 1,820,260 31,141 13,577,239 1,036,847 26,163,981
1,625,113,740 676,230 61,144

Total Expenditures

s 19,397,139,582 $ 24,828,110,166 $ 21,752,996,129 $ 3,075,114,037

Excess of Funds Available over Expenditures

$ 1,450,740,846 $ 1,450,740,846

The notes to the fmancial statements are an integral part ofthis statement

A-17

State of GeorfJia

Combined statement of Revenues, Expenses and
Changes in Fund Equity/Fund Balances
All Propricterv Fund Tvpcs. Nonexpendrole Trust Funds and Discretelv Presented Component Units
For the Fiscal Year Ended June 30. 1993

Primary Government

Proprietary Fund Types

Internal

Enterprise

Service

Fiduciary Fund Type
Nonexpendable Trust

Operating Revenues: Contributions Insurance Recoveries Interest and Other Investment Income Intergovernmental Rents and Royalties Sales and Services Taxes Other

$ 1,039,788,654 $ 13,614,428
29,396

116,076,367 $ 1,763,355
145,271,963
31,614,994 259,211,959
1,364,309

12,917

Total Operating Revenues

$ 1,053,432,478 $ 555,302,947 $

12,917

Operating Expenses: General and Administrative Goods and Services Interest Benefits Claims and Judgments Prizes Scholarships Depreciation Other

$ 224,492,609 $ 157,027,387 $

174,952,970

194,765

863,085,931

15,178,000

183,454,774

1,309,224

4,066
2,320 878

Total Operating Expenses

$ 1,087,578,540 $ 532,117,120 $

7,264

Operating Income (Loss)

$ (34,146,062) $

23,185,827 $

5,653

Nonoperating Revenues (Expenses): Contributions and Intergovernmental Revenue Interest and Other Investment Income Gain on Sale of Loans HotellMotel Tax (Net) Interest Expense Other Debt Service Charges Other

$

$

$

909,861

(6,870)

(57,945) (1,537,414)

Total Nonoperating Revenues (Expenses)

$

(6,870) $

(685,498) $

0

Net Income (Loss) Before Operating Transfers

$ (34,152,932) $

22,500,329 $

5,653

The notes to 1hefinancialstatementsare an integral partof this statement.
A-I8

Totals (Memorandum
Only) Primary Government

Component Units Proprietary Fund Types

Totals (Memorandum
Only) Reporting
Entity

$ 1,155,865,021 $ 1,763,355
158,899,308
31,614,994
259,241,355
1,364,309
$ 1,608,748,342 $

40,925 $
76,750,929 21,091,686 63,009,735 1,873,520,358
1,569,994 22,897,569

1,155,905,946 1,763,355
235,650,237 21,091,686 94,624,729
2,132,761,713 1,569,994
24,261,878

2,058,881,196 $ 3,667,629,538

$ 381,524,062 $ 174,952,970 194,765 878,263,931 183,454,774
2,320
1,309,224 878
$ 1,619,702,924 $
$ (10,954,582) $

148,129,964 $ 321,862,745
59,393,081
902,465,000
34,405,479 48,937,250

529,654,026 496,815,715
59,587,846 878,263,931 183,454,774 902,465,000
2,320 35,714,703 48,938,128

1,515,193,519 $ 3,134,896,443

543,687,677 $

532,733,095

$

$
909,861

0

(57,945)

(1,544,284)

$

(692,368) $

$ (11,646,950) $

571,059 $ 63,976,913
883,484 17,282,333 (35,695,827) (8,838,889) (12,288,879)
25,890,194 $
569,577,871 $

571,059 64,886,774
883,484 17,282,333 (35,753,772) (8,838,889) (13,833,163)
25,197,826
557,930,921
(continued)
A-19

- - - - - - - - - State of Georsia - - - - - - - - -

Combined statement of Revenues. Expenses and Changes in Fund Equitv/Fund Balances
All Propricterv Fund Tvpcs,Nonexpendable Trust Funds and Discretelv Presented Component Units (continued)
For the Rscal Year Ended June 30. 1995

Primary Government

Proprietary Food Types

Enterprise

Internal Service

Fiduciary Food Type Nonexpendab1e
Trust

Operating Transfers: Transfers In Transfers from Primary Government Transfers Out Transfers to Primary Government
Net Operating Transfers
Net Income (Loss)

$

$

54,197,836 $

(17,427,367)

$

0$

$ (34,152,932) $

36,770,469 $ 59,270,798 $

0 5,653

Deficiency of Revenues under Expenditures from Governmental Operations and Expendable Trust Foods
Food Equity/Fund Balances, July 1 Adjustments (Net) Contributed Capital Contributed Capital from Primary Government Contributed Capital from Federal Government Contributed Capital from Other Sources Transfer of Contributed Capital Transfer of Contributed Capital to Primary Government Transfer of Equity from Primary Government Increase in Inventories

104,262,182

1,007,729,825 (10,336,230) 165,856

(82,000) 982,989

215,826 (383)

Food Equity/Fund Balances, June 30

$

70,109,250 $ 1,057,731,238 $

221,096

The notes to the financial statements are an integral part ofthis statement. A-20

L
L

L

Totals -

Totals -

L

(Memorandum

(Memorandum

Only)

Component Units

Only)

Primary

Proprietary

Reporting

Government

Fund Types

Entity

$

54,197,836 $

0

(17,427,367)

0

$

36,770,469 $

$

25,123,519 $

$ 62,019,706 (559,686,614) (497,666,908) $ 71,910,963 $

54,197,836 62,019,706 (17,427,367) (559,686,614)
(460,896,439)
97,034,482

0
1,112,207,833 (10,336,613) . 165,856 0 0 0 (82,000) 0 0 982,989

(2,400,405)
1,453,154,306 (20,471,837)
39,857,145 35,688,800 4,957,024
(14,894,947) 199,786 44,077

(2,400,405)
2,565,362,139 (30,808,450) 165,856 39,857,145 35,688,800 4,957,024 (82,000) (14,894,947) 199,786 1,027,066

$ 1,128,061,584 $ 1,568,044,912 $ 2,696,106,496

A-21

State of Georgia
Combined statement of Cash Flows All Proprlclerv Fund Tvpcs. Nonexpendrole Trust Funds and
Discretdv Presented Component Units For the Fiscal Year Ended June 30, 199B

Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Required Contributions Cash Received from Insurance Proceeds Principal Payments Received on Program Loans Interest Received on Program Loans Cash Paid to Vendors Cash Paid to Employees Cash Paid for Benefits Cash Paid for Claims and Judgments Cash Paid for Lottery Prizes Cash Paid for Scholarships Origination of Program Loans Governmental and Fiduciary Fund Type Activity (Net) Other Operating Items (Net)
Net Cash Provided by (Used in) OperatingActivities
Cash Flows from Noncapital Financing Activities: Operating Transfers In Operating Transfers from Primary Government Proceeds from Assignment ofProgram Loans Under Repurchase Agreements Issuance ofBondslLoanslNotes Contributed Capital Hotel/Motel Tax (Net) Operating Transfers Out Operating Transfers to Primary Government Repayment ofAdvances Principal Paid on Bonds/Loans/Notes Interest Paid on BondslLoanslNotes Return of Contributed Capital Transfer ofEquity from Primary Government Other Debt Service Payments Other Noncapital Items (Net)
Net Cash Provided by (Used in) Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities: Issuance ofBondsILoanslNotes HotellMotel Tax Received Contributed Capital Sale of Capital Assets Acquisition and Construction ofCapital Assets Principal Paid on BondslLoanslNotes Interest Paid on BondslLoanslNotes Other Debt Service Payments Other Capital and Related Items (Net)
Net Cash Used in Capital and Related Financing Activities
Cash Flows from Investing Activities: Purchase ofInvestments (Net) Interest on Investments Other Investing Items (Net)
Net Cash Provided by Investing Activities
Net Increase in Cash and Cash Equivalents
Cash and CashEquivalents, July 1

Primary Government

Proprietary Fund Types

Internal

Enterprise

Service

Fiduciary Fund Type
Nonexpendable Trust

Totals (Memorandum
Only) Primary Government

Component Units Proprietary Fund Types

Totals (Memorandum
Only)
Reporting Entity

$

29,396 $

1,038,477,795

308,349,050 $ 115,640,381
1,763,355

(223,443,697) (2,498,622)
(851,524,392)

(248,934,439) (81,119,778) (15,178,000) (84,658,119)

s (38,959,520) $

s (4,137,550)

$ (4,944) (2,320)

308,378,446 $ 1,154,118,176
1,763,355 0 0
(472,383,080) (83,618,400)
(866,702,392) (84,658,119) 0 (2,320) 0 0 0

s 2,026,445,498
123,192,291 75,218,750
(431,389,348) (113,917,345)
(864,420,000)
(174,392,226) (17,303,499) 166,120

2,334,823,944 1,154,118,176
1,763,355 123,192,291
75,218,750 (903,772,428) (197,535,745) (866,702,392)
(84,658,119) (864,420,000)
(2,320) (174,392,226)
(17,303,499) 166,120

(7,264) $ (43,104,334) $ 623,600,241 $ 580,495,907

$

$ 54,197,836 $

(17,427,367)

(82,000)

866,532

$

o $ 37,555,001 $

$

s

$

165,856

(89,828)

(14,345,953) (242,857) (57,945)

$

(89,828) $ (14,480,899) $

$ 54,197,836 $ 0

$ 62,019,706

54,197,836 62,019,706

0 0 0 0 (17,427,367) 0 0 0 0 (82,000) 0 0 866,532

10,711,222 167,621,141
24,723,485 3,200,997
(555,617,071 ) (53,750)
(172,969,802) (51,560,281) (14,894,947) 199,786 (2,182,005) (1,989,564)

10,711,222 167,621,141
24,723,485 3,200,997
(17,427,367) (555,617,071 )
(53,750) (172,969,802)
(51,560,281) (14,976,947)
199,786 (2,182,005) (1,123,032)

o$

37,555,001 $ (530,791,083) $ (493,236,082)

s 0s

0$ 0 165,856 0 (14,435,781 ) (242,857) (57,945) 0 0
(14,570,727) $

76,654,509 $ 13,781,971 45,336,032
614,951 (60,165,419) (90,215,248) (32,338,417)
(7,809,710) (334,710)
(54,476,041) $

76,654,509 13,781,971 45,501,888
614,951 (74,601,200) (90,458,105) (32,396,362)
(7,809,710) (334,710)
(69,046,768)

$ (47,863,480) $ (320,961,015) $

14,078,045

37,008,604

$ (33,785,435) $ (283,952,411) $
s $ (72,834,783) $ (265,015,859)

76,983,949

272,299,546

161,724 $ 12,136

(368,662,771) $ 51,098,785 0

(211,337,264) $ 44,271,915 121,036

(580,000,035) 95,370,700 121,036

173,860 $ (317,563,986) $ (166,944,313) $ (484,508,299)

s 166,596 $ (337,684,046) $ (128,611,196)

(466,295,242)

19,102

349,302,597

369,219,652

718,522,249

Cash and Cash Equivalents, June 30

$

4,149,166 $

7,283,687 $

185,698 $ 11,618,551 $ 240,608,456 $ 252,227,007

The notes to the financial statements are an integral part of1his statement. A-22

L L
L L

State of Georgia
Combined Statement ofCash Flows All Proprlcrerv Fund Tvpcs NonexpmdIDIe Trust Funds and
DiscretelY Presented Component Units For the FISCal Year Ended June 30, 1996

Operating Income (Loss)
Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities:
Depreciation!Amortization Interest and Other Investment Income Other Changes in Assets and Liabilities:
Increase in Intergovernmental Receivables Increase in Interest and Dividends Receivable Increase in Notes and Loans Receivable Decrease (Increase) in Other Receivables Decrease in Due from Other Funds Increase in Due from Primary Government Increase in Due from Component Units Decrease .inInventories Decrease (Increase) in Prepaid Items Decrease in Other Assets Increase (Decrease) in Accounts Payable and Other Accruals Increase in Compensated Absences Payable Increase in Claims and Judgments Payable Increase (Decrease) in Contracts Payable Decrease in SalarieslWithboldings Payable Increase in Benefits Payable Increase in Due to Other Funds Increase in Due to Primary Government Increase in Due to Component Units Increasein.Deferred Revenue Decrease in Funds Held for Others Decrease in Other Liabilities Increase (Decrease) in Deposits and Overpayments Increase in Grand Prizes Payable
Total Adjustments

Primary Government

Proprietary Fund Types

Internal

Enterprise

Service

Fiduciary Fund Type Nonexpenclable
Trust

Totals (Memorandwn
Only)
Primary Government

Component Units Proprietary Fund Types

Totals (Memorandum
Only) Reporting
Entity

$ (34,146,062) $ 23,185,827 $

5,653 $ (10,954,582) $ 543,687,677 $ 532,733,095

$

-$

1,309,224 $

(13,614,428) (145,271,963)

(2,707,381)
(1,349,172) 84,269
(184,807) 11,561,539
1,396,522

55,534 13,832,580
50,589 (102,675)
(22,928)
(3,180,875) 332,098
98,796,655 5,449,562 (79,794)
319,350
143 6,384

1,182,739

$ (4,813,458) $ (27,323,377) $

-$
(12,917)

1,309,224 $ (158,899,308)
0

36,318,512 $ 57,242,065 (38,043,891)

37,627,736 (101,657,243)
(38,043,891)

0 0 0 (2,651,847) 13,832,580 0 50,589 (102,675) (22,928) 0 (4,530,047) 416,367 98,796,655 5,264,755 (79,794) 11,561,539 319,350 0 143 1,402,906 0 0 1,182,739 0

(2,518,671 ) (1,367,878) (51,180,079) 9,947,439
(71)
476,213 1,209,943 5,256,224
334,264 267,213
(347,551) (218,934)
45,454
736,463 (6,859)
(118,997) (550,295) 62,432,000

(2,518,671) (1,367,878) (51,180,079) 7,295,592 13,832,580
(71) 50,589 373,538 1,187,015 5,256,224 (4,195,783) 683,580 98,796,655 4,917,204 (298,728) 11,561,539 319,350 45,454
143 2,139,369
(6,859) (118,997) 632,444 62,432,000

(12,917) $ (32,149,752) $ 79,912,564 $ 47,762,812

Net Cash Provided by (Used in) Operating Activities

$ (38,959,520) $ (4,137,550) $

(7,264) $ (43,104,334) $ 623,600,241 $ 580,495,907

Noncash Investing, Capital, and Financing Activities: Acquisition ofFixed Assets through Capital Leases Disposal ofFixed Assets Donation ofFixed Assets Interest Earned on Grand PrizeInvestments and Grand Prizes Payable Purchase ofBuilding on Account Refunding Bond Proceeds Deposited Directly into Escrow ACCOW1t Write off ofFixed Assets

$

- $ 10,520,820 $

(6,870)

(2,395,749)

(10,336,230)

$

(6,870) $ (12,731,979) $

$ 10,520,820 $ (2,402,619) 0
0 0
0 (l0,336,230)

-$
(693,638) 1,777,741
20,839,000 46,403
90,526,229

10,520,820 (3,096,257) 1,777,741
20,839,000 46,403
90,526,229 (10,336,230)

0 $ (12,738,849) $ 112,495,735 $ 99,756,886

The notes to the financial statements are an integral part of this statement, A-23

State of GeorBla
Statements of Plan Net Assets
Pension Trust Funds, nvcsnnou Trust Fund and
Discretelv Presented (ompOf1mt Units June 30, 1995

Assets
Cash and Cash Equivalents Investments Receivables (Net of Allowances
for Uncollectibles) Interest and Dividends Other Prepaid Items Fixed Assets (Net, Where Applicable, of Accumulated Depreciation)
Total Assets
Liabilities
Cash Overdraft Accounts Payable and Other Accruals SalariesIWithholdings Payable Due to Other Funds Due to Primary Government
Total Liabilities

Defined Contribution
Plan
70,000 25,888,000
227,000 982,000

District Atlomeys Retirement
Fund
3,000

District Attorneys Retirement
System

Primary Government

Employees' Retirement
System

Legislative Retirement
System

17,000 31,001,000

11,275,768,772

82,854 26,386,820

Superior Court Judges Retirement
Fund

Superior Court Judges Retirement
System

Trial Judges and Solicitors Retirement
Fund

60,000 s
1,547,000

114,701,000

87,000 55,800,001

47,000

93,182,000 5,467,799 15,906

326

1,000

187,000

251,000

s 27,167,000

3,000

31,065,000

s 11,374,434,477

26,470,000

1,608,000

s 114,888,000

56,138,00r

s
2,000
2,000

s
3,000
3,000 s

6,000 6,000

2,152,641 6,232,428
23,629 632,673
9,041,371 s

13,000 26,000
39,000 s

36,000 36,000

153,000 45,000
198,000

7,001 7,00'

Fund Balances Reserved for Pension Benefits and Investment Trust Fund

27,165,000 s

(Schedulesoffunding progress are presented on pages 91 and 93)

0s

s 31,059,000

11,365,393,106 s

26,431,000 s

s 1,572,000

114,690,000 s

56,131,000

The notes to the financial statements are an intergral part of thisstatement.

A-24

L .-------
Investment Trust Fund

Total Primary Government

s
2,834,115,490

319,854 14,365,208,082

Firefighters' Pension Fund

Judges ofthe ProbateCourts
Retirement Fund

ComponentUnits - Fiduciary FundTypes

Public School

Peace Officers' Annuity and Benefit Fund

Employees Retirement
System

Sheriffs' Retirement
Fund

308,339,127

28,224 35,543,811

3,389,458 242,328,596

702,149,000

38,813,522

93,409,000 6,936,125 15,906

2,313,832

s 2,834,115,490

267,407
===",- 14,465,888,967 $ _ _ 310,920,366

325,490

2,017,814

606 35,898,131

433,794 248,169,662

6,000

291,749

20,620
....::::==:::.... 702,155,000 $ _ _...:3",9..."1",25"",,,89:.01_$ _ _

174,669,398

s 176,975,039

394

6,344,428

23,629

658,673

0

1,279

4,393

38,000 267,000

9,130

$_--=-1c7..4.,:6z6.:9o,3=9=8 -

s 184,001,769

394

1,279

4,393

305,000

9,130

s s 2,659,446,092

14,281,887,198

310,919,972 s

35,896,852 s

s 248,165,269

s 701,850,000

s 39,116,761

s 34,493,619

34,868,775,175 $=..;3;6;,2=3=9,2=17,,;6;4;8.,

A-25

State of Georgia - - - - - - - -
Statements of Changes in Plan Net Assets Pension Trust Funds, Investment Trust Fund and
Discretelv Presented Component Units For the Fiscal Year Ended June 30, 199B

Additions: Contributions Employer and Employee Finesand Forfeits Fines and Bond Forfeitures Interestand Other InvestmentIncome Dividends and Interest Net Appreciation in Fair Value of Investments Less: Investment Expense Net Gain on Disposal ofInvestment Securities Pool Participant Deposits Sales and Services CivilCases Marriage License Fees RealEstate Recording Fees Taxes Insurance Companies Other Miscellaneous
Total Additions
Deductions: General and Administrative Expenses Benefits Pool Participant WithdrswaIs Refunds
Total Deductions
Net Increase Before Operating Transfers
Operating Transfers: Transfers from Primary Govenunent Transfers to PrimaryGovernment
Net Operating Transfers
Net Increase

Defined Contribution
Plan

District Attorneys Retirement
Fund

District Attorneys Retirement
System

s 10,473,000

179,000

574,000

Employees' Retirement
System

Primary Government
Legislative Retirement
System

Superior Court Judges Retirement
Fund

Superior Court Judges Retirement
System

Trial Judges and Solicitors Retirement
Fund

341,623,000

406,000

s 1,893,000

2,223,000

1,670,000

1,153,904 2,159,680
(11,584)

978,750 4,668,750
(22,500)

366,261,980 1,747,350,100
(8,824,080)

743,676 3,547,420
(17,096)

50,112 239,040
(1,152)

3,732,300 17,803,500
(85,800)

1,835,178 8,754,010
(42,188)

s 13,775,000

s

s 245,000

7,939,000

s

s 8,184,000

5,591,000

179,000 179,000 179,000

s

5,591,000

6,199,000

2,446,411,000

4,680,000

380,000 23,000
403,000 5,796,000

3,760,108 357,434,000
10,221,000 371,415,108 2,074,995,892

977,000 18,000
995,000 3,685,000

s

s

s

s

5,796,000

2,074,995,892

3,685,000

s 2,181,000

23,673,000

12,217,000

1,877,000
1,877,000
s 304,000

2,437,000 253,000
2,690,000
s 20,983,000

591,000 11,000
602,000 11,615,000

304,000

20,983,000

11,615,000

Fund Balances Reserved for Pension Benefits, July I Adjustments Change in Accounting Principle

21,574,000

25,263,000

9,290,397,214

22,746,000

1,268,000

93,707,000

44,516,000

Fund Balances Reserved for Pension Benefits and Investment Trust Fund, June 30

s 27,165,000 s

s s o s 31,059,000

11,365,393,106

26,431,000 s

s 1,572,000

114,690,000 s

56,131,000

The notes to the financial statements are an integral part ofthis statement. A-26

Investment Trust Fund

Total Primary Govenunent

Firefighters' Pension Fund

Judges of the ProbateCourts
Retirement Fund

Component Units- Fiduciary FundTypes

Public School

Peace Officers'

Employees

Sheriffs'

Annuity and

Retirement

Retirement

Benefit Fund

System

Fund

Superior Court Clerks' Retirement
Fund

Teachers Retirement
System

Total Component
Units

359,041,000

136,169,868 (1,231,885)
3,805,624,218

510,925,768 1,784,522,500
(10,236,285) 0
3,805,624,218

3,940,562,201 S

6,449,877,201

1,446,610 13,302,641 32,756,216

191,961 442,596 1,839,103
3,363,763

11,476,882 139,729
59,122,078 S

128,195
8,232 5,973,850

1,118,559 12,591,469 11,658,921
14,511,655

16,274,000
23,099,022 110,184,990
(531,012)

125,736 40,006,340

149,027,000

99,897 2,074,867 1,527,419 5,439,715
9,141,898

82,682 608,956 2,104,104
290,579 1,244,726
4,331,047

1,012,696,008 1,104,247,000 5,483,218,000
(25,734,000)
7,574,427,008 S

1,031,909,717
15,717,888
1,157,778,210 5,593,402,990
(26,265,012) 56,071,349
0
290,579 128,195 1,244,726
11,476,882
273,697
7,842,029,221

3,391,131,132
3,391,131,132 549,431,069

4,005,108 363,875,000 3,391,131,132
18,465,000
3,777,476,240
2,672,400,961

1,562,456 10,869,240
167,688 12,599,384 46,522,694

128,864 S 1,068,532
1,197,396 4,776,454

1,134,560 9,820,201
96,481 11,051,242 28,955,098 S

575,000 24,537,000
364,000 25,476,000 123,551,000 S

387,048 2,106,295
2,493,343 6,648,555

79,547 S 2,055,696
24,750 2,159,993 2,171,054

6,634,475 S 780,582,000
42,098,000
829,314,475 6,745,112,533 S

10,501,950 831,038,964
0 42,750,919
884,291,833
6,957,737,388

S 549,431,069 S

0 2,672,400,961

46,522,694 S

S

4,776,454

S 28,955,098

S 123,551,000

6,648,555

2,171,054

3,644,000 S (179,008)
3,464,992 S
6,748,577,525 S

3,644,000 (179,008)
3,464,992
6,961,202,380

2,110,015,023

9,499,471,214 2,110,015,023

264,397,278

31,120,398

219,210,171

578,299,000

32,468,206

32,322,565

28,120,197,650

29,278,015,268

2,659,446,092 S 14,281,887,198 s

310,919,972 s

35,896,852 s 248,165,269 S 701,850,000 S

39,116,761 S

34,493,619 S 34,868,775,175 s 36,239,217,648

A-27

- - - - - - - - - State of GeoPBia - - - - - - - - -
Combined Statement ofChanges in Fund Balances College and University Funds
For the Rscal Year Ended June 30. 1995

Revenues and Other Additions: Unrestricted Revenues Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants and Contracts Investment Income Endowment Other Sales and Services Net Gain/(Loss) on Investments Interest on Loans Receivable Expended for Plant Facilities Current Funds Plant Funds Unexpended Renewals and Replacements Georgia State Financing and Investment Commission Other Additions (Net) Insurance Recoveries Other Recovery of Prior Year's Cancelled Loans and Collection Costs
Total Revenues and Other Additions
Expenditures and Other Deductions: Education and General Expenditures Auxiliary Enterprises Expenditures Hospital Expenditures Indirect Cost Recoveries Loans Assigned to Federal Government Loan Cancellations and Write-offs Administrative and Collection Costs Expended for Plant Facilities Capitalized N on-Capitalized Other Deductions (Net) Disposals/Deletions/Adjustments
Total Expenditures and Other Deductions

Current Funds

Unrestricted

Restricted

Loan Funds

$ 1,133,372,899 $

$ 648,291,341 247,659,991
6,097,377 153,543,228
9,006,016 77,125
5,109,504

136,277 3,387
180,823
828,883
942,634

2,762,120

146,784

$ 1,136,135,019 $ 1,069,931,366 $

143,194 2,235,198

$ 2,185,798,986 $ 173,763,185 190,986,076

917,433,912 $
76,720,453 58,432,729

93,992

61,417 621,571 172,754

176,139

$ 2,550,548,247 $ 1,052,681,086 $

1,031,881

The notesto the fmancialstatements are an integralpart of this statement. A-28

Endowment and Similar
Funds

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Total (Memorandum
Only)

s

$

$

7,599,657

10,457,258

1,044,029

9,727,268

21,836

15,241,544

13,398

14,838,207

4,399,556 2,082,959

$

s 15,917,470

49,508,242 s

-$

$ 17,164,125

1,133,372,899 656,027,275 258,117,249 6,100,764 181,659,473

606,894

9,027,852 16,754,446 5,109,504
13,398 942,634

182,464,434

182,464,434

156,404,105 9,956,482
120,647,308

156,404,105 9,956,482
120,647,308

56,009

4,399,556 19,886,079

662,903 $

143,194

s 486,636,454

2,761,026,652

$

s

$

-$

s 3,103,232,898

173,763,185

267,706,529

58,432,729

61,417

621,571

58,360

325,106

156,404,105 13,459,410

9,956,481 3,197,137

93,612,906

166,360,586 16,656,547 176,139 93,612,906

$

0 $ 169,921,875 $

13,153,618 $

93,612,906 s 3,880,949,613

(continued)

A-29

State of GeorfJia - - - - - - - -
Combined Statement of Changes in Fund Balances College and Univcrsilv Funds (continued) For the Rscal Year Ended June 30, 199B

Transfers Between Funds, Net In (Out) Mandatory Nonmandatory
Total Transfers Between Funds
Operating Transfers: Transfers In Transfers Out Transfers to Component Units
Total Operating Transfers
Net Increase (Decrease) in Fund Balances
Fund Balances, July 1 Adjustments
Change in Accounting Principle Transfer of Equity
Fund Balances, June 30

Current Funds

Unrestricted

Restricted

Loan Funds

$

(1,500,000) $

(36,373,817)

$ (37,873,817) $

(519,664) $ (1,255,670)
(1,775,334) $

(62,151) 48,520
(13,631)

$ 1,450,720,478 $ (3,340,352)
(18,915,057)
$ 1,428,465,069 $
$ (23,821,976) $
123,914,009
256,446 400,296

$
0$ 15,474,946 $ 55,262,001
1,738,172 (400,296)

0 1,189,686 59,452,142
289,846

$ 100,748,775 $

72,074,823 $

60,931,674

,- - -

The notesto the financialstatements are an integral part ofthis statement.

A-3D

L L L
r,
~
,
r;' ~
L-
L-~

Endowment and Similar
Funds

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Total (Memorandum
Only)

$

2,081,815 $

$

$

(490,706)

24,840,455

13,231,218

$

0

0

$

1,591,109 $

s 24,840,455

13,231,218 $

0$

0

s

$

s 72,796,332

1,155,038

$

0$

s 73,951,370

s

17,508,579 $ (21,621,808) $

414,887 $
s 414,887

s 1,523,931,697
(2,185,314) ( 18,915,057)
0 $ 1,502,831,326

1,155,390 $ 393,023,548 $ 382,908,365

81,739,275

38,673,908

32,989,759

4,223,590,203

4,615,621,297

19,713,172

(35,588)

(2,023)

21,960,025 0

$ 118,961,026 $

17,016,512 $

s 34,143,126

4,616,613,751 $ 5,020,489,687

A-31

State of GeorfJia
Combined statement ofCurrent Funds Revenues,
Expenditures and Other Changes College and Universilv Funds
For the Fiscal Year Ended June 30. 1995

Revenues: Tuition and Fees Federal Grants and Contracts State Grants and Contracts Local Grants and Contracts Private Gifts, Grants and Contracts Investment Income Sales and Services of Educational Departments Sales and Services of Auxiliary Enterprises Sales and Services ofHospital Other Sources
Total Revenues
Expenditures and Mandatory Transfers: Education and General
Instruction Research Public Service Academic Support Student Services Institutional Support Plant Operations and Maintenance Scholarships and Fellowships Auxiliary Enterprises Student Housing Faculty and StaffHousing Food Services Stores and Shops Intercollegiate Athletics Other Service Units Hospital Expenditures Medical College of Georgia Hospital Georgia Correctional Health Care Georgia War Veterans Nursing Home Mandatory Transfers, Net (In) Out
Total Expenditures and Mandatory Transfers
Other Transfers and Additions (Deductions): Excess ofRestricted Receipts over Transfers
to Revenues Nonmandatory Transfers, Net In (Out) Other Additions (Deductions), Net Operating Transfers
Transfers In Transfers Out Transfers to Component Units
Total Other Transfers and Additions (Deductions)

Current Funds

Unrestricted

Restricted

Total (Memorandum
Only)

$ 535,016,387 $ 60,836,464 4,124,614 352,199 7,148,232 106,734 53,289,656 174,807,488
209,989,684 87,701,441
$ 1,133,372,899 $

$ 595,982,597 240,403,502
5,645,646 144,147,533
3,185,219 4,018,332

535,016,387 656,819,061 244,528,116
5,997,845 151,295,765
3,291,953 57,307,988 174,807,488 209,989,684 87,701,441

993,382,829 $ 2,126,755,728

$ 866,307,641 $

87,458,437 $ 953,766,078

222,730,421

239,017,794

461,748,215

137,128,657

65,036,126

202,164,783

220, 102,200

7,988,039

228,090,239

114,009,303

4,109,712

118,119,015

338,401,192

24,872,679

363,273,871

207,012,615

1,368,136

208,380,751

80,106,957

487,582,989

567,689,946

54,661,035 178,505
35,185,199 16,226,677 28,466,207 39,045,562

54,661,035 178,505
35,185,199 16,226,677 28,466,207 39,045,562

190,986,076 1,500,000

69,206,541 7,513,912 519,664

190,986,076 69,206,541
7,513,912 2,019,664

$ 2,552,048,247 $ 994,674,029 $ 3,546,722,276

$

-$

(36,373,817)

2,762,120

1,450,720,478 (3,340,352)
(18,915,057)

$ 1,394,853,372 $

17,969,024 $ (1,255,670)
52,792

17,969,024 (37,629,487)
2,814,912

1,450,720,478 (3,340,352)
(18,915,057)

16,766,146 $ 1,411,619,518

:- , - _ - - .
-~
:
-~--
I :
:- -
:

Net Increase in Fund Balances
The notes to the financial statements are an integral part ofthis statement. A-32

$ (23,821,976) $

15,474,946 $

(8,347,030)

L - - - - - - - - - - State of GeorBia - - - - - - - - - -

L

Notes to the Rnancial Statements
Index

l~

Page

Note 1 Summary of Significant Accounting Policies

A-34

Note 2 Other Accounting Disclosures

A-46

Note 3 Budgetary Accounting

A-47

Note 4 Deposits and Investments

:

A-50

Note 5 Receivables Note 6 Fixed Assets

A-57 A-59

Note 7 Risk Management Note 8 Construction and Other Significant Commitments

A-61 A-62

Note 9 Operating Leases Note 10 Capital Leases and Installment Purchases Note 11 Long-Term Debt Note 12 Interfund Balances

A-62 A-64 A-65 A-70

Note 13 Contributed Capital

A-72

Note 14 Contingencies

A-73

Note 15 Subsequent Events

A-75

Note 16 Deferred Compensation Plan Note 17 Retirement Systems

A-75 A-76

Note 18 Nonmonetary Transactions

A-83

Note 19 Postemployment Benefits

A-84 .

Note 20 Fund Deficits

A-84

Note 21 Major Discretely Presented Component Unit Condensed Financial Statements

A-85

A-33

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Finandal Statements
June 30, 199B

Note 1. Summary of Significant Accounting Policies
With the exception of the departures from generally accepted accounting principles (GAAP) disclosed in the following paragraphs, the fmancial statements of the State ofGeorgia have been prepared in conformity with GAAP as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and fmancialreporting principles. The fmancial statements of the College and University Funds have been prepared in conformity with GAAP as promulgated by the provisions of the American Institute of Certified Public Accountants' "Industry Audit Guide - Audits of Colleges and Universities."
The more significant of the State's accounting policies are described below:
A. Reporting Entity
In evaluating how to defme the government for fmancial reporting purposes, management has considered both the organizations which compose the primary government and potential component units. The primary government consists of all the organizations that compose the legal entity of the State of Georgia. All agencies, departments, authorities, commissions, courts, councils, boards, universities, colleges, retirement funds, associations and other funds that are not legally separate are, for fmancial reporting purposes, considered part of the primary government. In addition, included within the primary government are organizationswhich are legally separate but so intertwined with the primary government that they are, in substance, part of the primary government.
The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in Section 2100 of the GASB Codification of Governmental Accounting and Financial Reporting Standards. This Section defmes a component unit as a legally separate organization for which the primary government is fmancially accountable and other organizations for which the primary government is not accountable, but for which the nature and the significance of the relationship with the primary government are such that exclusion would cause the fmancial statements to be misleading or incomplete.

Financial accountability is the ability to appoint a voting majority of an organization's governing board and to impose will upon the organization or to have exist the potential for the organization to provide specific fmancial benefits or impose specific fmancial burdens on the primary government. In addition, organizations which are fiscally dependent upon the primary government were considered as potential component units.
As required by GAAP, these financial statements present the government and its component units, entities for which the government is considered to be fmancially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations and therefore data from these units are combined with that of the primary government. The blended component units are as follows:
GeorgiaNet Authority (Special Revenue Fund) is an instrumentality of the State of Georgia and a public corporation. The authority is responsible for the centralized marketing of certain information maintained in electronic format to the public. Three of the five members of the Board are appointed by the Governor. Any funds in excess of those needed for the corporate purposes of the authority are required to be transferred to the General Fund.
Georgia Building Authority (Hospital) (Capital Projects Fund) is a body corporate and politic. The authority is responsible for the construction and management of hospitals, health care facilities, dormitories and housing accommodations for the use of patients, officers and employees under the control of any State agency. The Board consists of four State officials designated by statute and one member appointed by the Governor.
Georgia Building Authority (Markets) (Capital Projects Fund) is a body corporate and politic. The authority is responsible for the construction and management of farmers'markets. The Board consists of four State officials designated by statute and one member appointed by the Governor.
Georgia Building Authority (Penal) (Capital Projects Fund) is a body corporate and politic. The authority was created for the purpose of constructing and managing penal institutions, penitentiaries, prisons and prison institutes, detention and corrections institutions, rehabilitation facilities and county correctional institutions. The Board consistsof four State officials designated by statute and one member appointed by the Governor.

A-34

L - - - - - - - - State of Georgia - - - - - - - -

L

Notes tothe Financial Statements June: 30, 1996

r
L.

Note 1. Summary of Significant

Accounting Policies (continued)

Georgia Education Authority (University) (Capital

Projects Fund) is a body corporate and politic. The

L-.

authority is charged with the overall responsibility of the

construction and management of housing accommodations,

classrooms, laboratories, libraries, dormitories and

instructional, administrative and recreational facilities for

students, faculty, officers and employees of any institution

under control of the Board of Regents. The Board consists

of five State officials designated by statute and one member

appointed by the Governor.

Georgia Building Authority (Internal Service Fund) is a body corporate and politic. The purpose of this authority is to construct and manage buildings and facilities intended for use as office space, public parks and public parking facilities, the executive mansion and laboratories. The Board consists of four State officials designated by statute and one member appointed by the Governor.

GeorgiaCorrectionalIndustries Administration (Internal ServiceFund) is a public corporation which utilizes inmates in the manufacturing of products for sale to State agencies and others. The Governor appoints one Board member from each congressional district in the State, as well as appointing five additional members from the State at large.

Employees' Retirement System ofGeorgia (Pension Trust Fund.) is a single-employer, public employee retirement system establishedto provide benefits for employees of the State. The system is governed by a seven member Board of Trustees, three of which are State officials designated by statute, and one of which is appointed by the Governor. The system administers seven blended defined benefit pension plans: the Employees' Retirement System Fund, the District Attorneys' Retirement Fund, the District Attorneys' Retirement System, the Legislative Retirement System, the Superior Court Judges Retirement Fund, the Superior Court Judges Retirement System, and the Trial Judges and Solicitors Retirement Fund. The State provides a substantial amount of funding for these retirement systems in the form of employer contributions and administrative expenses.

Georgia Military College (College and University Funds) is a body corporate and politic. This institution is dedicated to providing a high-quality military education to the youth ofthe State. The Board consists of the mayor ofthe City of Milledgeville, and one trustee elected from each of the six municipal voting districts of the City of Milledgeville, as required by statute.

Discrete presentation entails reporting component unit fmancial data in columns separate from the fmancial data of the primary government. The discretely presented component units are as follows:
Georgia Education Authority (Schools) (Governmental Fund Type) is a body corporate and politic. The authority is responsible for the construction of buildings and facilities intended for use as school buildings, classrooms, laboratories, libraries and instructional, administrative and recreational facilities for students, faculty, officers and employees of any institution under control of a county or city board of education or governing body of any independent district or system. The Board consists of six State officials designated by statute and one member appointed by the Governor.
Georgia Public Telecommunications Commission (Governmental Fund Type) is a body corporate and politic. This commission is a public charitable organization created for the purpose of providing educational, instructional and public broadcasting services to citizens of Georgia. The budget of the commission must be approved by the State. The Board consists of three State officials designated by statute and six members appointed by the Governor.
Georgia Agricultural Exposition Authority (Proprietary Fund Type) is a body corporate and politic. This authority is responsible for provision of a facility for the agricultural community, for public events, exhibits and other activities and for promotion and staging of a statewide fair. The nine Board members are appointed by the Governor.
Georgia Agrirama Development Authority (Proprietary Fund Type) is a body corporate and politic. The purpose of this authority is to utilize all funds for the purpose of beautifying, improving, developing, maintaining, administering, managing and promoting an agricultural museum in or around Tifton, Georgia; this museum is designated as the State Museum of Agriculture. Of the fourteen members of the Board, four are State officials designated by statute and seven members are appointed by the Governor.
Georgia Development Authority (Proprietary Fund Type) is a body corporate and politic. The authority was created to assist agricultural and industrial interests by providing credit and servicing functions to better enable farmers and businessmen to obtain needed capital funds. The Board consists of three State officials designated by statute and four members appointed by the Governor.
Georgia Environmental Facilities Authority (Proprietary Fund Type) is a body corporate and politic. The authority

A-35

- - - - - - - - State of Georsia--------
Notes to the Rnandal statements
June 30. 199B

Note 1. Summary of Significant Accounting Policies (continued)
provides assistance to local governments in constructing, extending, rehabilitating, repairing, replacing and renewing environmental facilities by providing financial and technical assistance. The Board consists of three State officials designated by statute and eight members appointed by the Governor.
Georgia Higher Education Assistance Corporation (Proprietary Fund Type) is a public authority, body corporate and politic. The corporation was created to improve the higher educational opportunities of eligible students by guaranteeing educational loan credit to students and to parents of students. The corporation is governed by the Board ofCommissioners ofthe Georgia Student Finance Commission. The Board consists of five State officials designated by statute and eleven members appointed by the Governor.
Georgia Highway Authority (Proprietary Fund Type) is a body corporate and politic. This authority was created to build, rebuild, relocate, construct, reconstruct, surface, resurface, layout, grade, repair, improve, widen, straighten, operate, own, maintain, lease and manage roads, bridges and approaches. The Board consists of three State officials designated by statute.
Georgia Housing and Finance Authority (Proprietary Fund Type) is a body corporate and politic. The authority is responsible for facilitating housing and housing fmance, and fmancing for health facilities and health care services throughout the State. The Board consists of two State officials designated by statute and ten members appointed by the Governor.
Georgia International and Maritime Trade Center Authority (ProprietaryFund Type) is a body corporate and politic. The authority was created to develop and promote the growth ofthe State's import and export markets through its ports and other transportation modes. The Board consists of twelve members, eight of whom are appointed by State officials.
Georgia Lottery Corporation (Proprietary Fund Type) is a public body, corporate and politic. The corporation operates lottery games to provide continuing entertainment to the public and maximize revenues, the net proceeds of which are utilized to support improvements and enhancements for educational purposes. The corporation is governed by a board of directors composed of seven members, all ofwhich are appointed by the Governor. The

State is legally entitled to residual resources of the corporation.
Georgia Music Hall ofFame Authority (Proprietary Fund Type) is a body corporate and politic whose purpose is to construct, operate and maintain the Music Hall of Fame, as well as promoting music events at the facility and throughout the State. All nine members of the Board are appointed by the Governor.
Georgia Ports Authority (Proprietary Fund Type) is a body corporate and politic. The purpose of the authority is to develop and improve the harbors or seaports of the State for the handling of waterborne commerce and to acquire, construct, equip, maintain, develop and improve said harbors, seaports and their facilities. The Board consists of nine members, all ofwhich are appointed by the Governor.
Georgia Rail Passenger Authority (Proprietary Fund Type) is a body corporate and politic. This authority is responsible for construction, fmancing, operation and development of rail passenger service and other public transportation projects. The Board includes one member appointed by the Governor from each congressional district, as well as two appointed members from the State at large.
GeorgiaSeed Development Commission (ProprietaryFund Type) is a body corporate and politic and an instrumentality and public corporation of the State whose purpose is to purchase, process, and resell breeders' and foundation seeds. The commission consists of ten members who are accountable as trustees. Ofthe ten members serving on the Board, six members are State officials or are appointed by State officials.
Georgia Student Finance Authority (Governmental Fund Type) is a body corporate and politic. This authority was created for the purpose of improving higher educational opportunities by providing educational scholarship, grant and loan assistance. A substantial amount of funding is provided to the authority by the State. The Board consists offifteen members, four of whom are State officials and the remaining eleven are appointed by the Governor.
Geo. L. Smith II Georgia World Congress Center Authority (ProprietaryFund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The authority is responsible for acquiring, constructing, equipping, maintaining and operating the World Congress Center to promote trade shows, conventions and political, musical, educational, entertainment, recreational, athletic or other events. The eleven members of the Board are appointed by the Governor.

A-36

L - - - - - - - - - State oJ Georgia - - - - - - - - -

L

Notes to the Rnandal Statements
June 30. 199B

Note 1. Summary of Significant Accounting Policies (continued)

Stone Mountain Memorial Association (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The authority is

responsible for the preservation and protection of Stone

GeorgiaSports Hall ofFame Authority (Proprietary Fund

Mountain as a Confederate memorial and public

Type) is a body corporate and politic. This authority was

recreational area. The Board consists of one State official

created to construct and maintain a facility to house the

designated by statute and eight members appointed by the

Georgia Sports Hall of Fame to honor those who have made

Governor.

,
L

outstanding and lasting contributions to sports and athletics, and to operate, advertise and promote the Sports Hall of

Superior Court Clerks' Cooperative Authority (Proprietary

Fame. The sixteen members of the Board are appointed by

Fund Type) is a body corporate and politic and an

State officials. The issuance of bonds must be approved by

instrumentality and public corporation of the State created

the Georgia State Financing and Investment Commission.

to provide a cooperative for the development, acquisition

and distribution of record management systems,

Jekyll Island State Park Authority (Proprietary Fund Type)

information, services, supplies and materials for superior

is a body corporate and politic and an instrumentality and

court clerks of the State. Of the seven members of the

public corporation of the State. The authority was created

Board, three are appointed by the Governor. The nature of

to operate and manage resort recreational facilities on Jekyll

this organization is such that it would be misleading to

Island. The Board consists of one State official designated

exclude it from the reporting entity.

by statute and eight members appointed by the Governor.

Georgia Firefighters' Pension Fund (Fiduciary Fund

Lake Lanier Islands Development Authority (Proprietary

Type) is a multiple-employer, defmed benefit pension plan

Fund Type) is a body corporate and politic and an

established for the purpose of paying retirement, death and

instrumentality and public corporation of the State. The

disability benefits to the firemen of the State of Georgia.

purpose of the authority is to manage, preserve and protect

The Board of Trustees consists of two State officials

projects on Lake Lanier Islands. The Board consists of one

designated by statute and three members appointed by the

State official designated by statute and eight members

Governor. Benefit provisions and vesting requirements are

appointed by the Governor.

established by State statute.

North Georgia Mountains Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State responsible for the construction and management ofrecreation, accommodation and tourist facilities and services. The nine members of the Board are appointed by the Governor.
Sapelo Island Heritage Authority (Proprietary Fund Type) is a body corporate and politic. The purpose of the authority is the preservation of the cultural and historic values of Hog Hammock Community located on Greater Sapelo Island. The three members serving on the Board are State officials. The State has assumed the obligation to provide fmancial support for real property acquisition.
State Tollway Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The authority was created to construct, operate and manage a system of roads, bridges and tunnels and facilities related thereto. The three Board members are State officials; therefore, the State can impose its will on the authority.

Judges ofthe Probate Courts Retirement Fund ofGeorgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the judges of the Probate Courts ofthe State of Georgia. The Board consists of one State official designated by statute and six members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Peace Officers' Annuity and Benefit Fund of Georgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the peace officers of the State of Georgia. The Board of Commissioners of the Annuity and Benefit Fund consists of two State officials designated by statute and four members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Public School Employees Retirement System (Fiduciary Fund Type) is a single-employer, defmed benefit pension plan established for the purpose of providing retirement

A-37

- - - - - - - - - State of Geot'fPa - - - - - - - - -
Notes to the FlI1ancial Statements
June 30. I99B

Note 1. Summary of Significant Accounting Policies (continued)
allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. This retirement fund is administered by the Employees' Retirement System Board of Trustees and two other Governor's appointees not on the Employees' Retirement System Board.
Sheriffs' Retirement Fund of Georgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the sheriffs of the State of Georgia. The Board consists of one State official designated by statute and five members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Superior Court Clerks' Retirement Fund of Georgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the Superior Court Clerks of the State of Georgia. The Board consists of one State official designated by statute and six members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Teachers Retirement System of Georgia (Fiduciary Fund Type) is a cost-sharing multiple-employer plan created by an act of the Georgia General Assembly to provide retirement, service, disability and survivors' benefits for qualifying teachers. The Board of Trustees is comprised of ten members, eight of which are State officials or are appointed by State officials. The State provides a substantial amount of funding to this retirement system in the form of employer contributions.
B. Fund Accounting
The State of Georgia uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a

fmancial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available fmancial resources.
Primary Government - The financial statements of the primary government are divided into four fund categories (further divided by fund type) and two account groups, all of which are described below. The four fund categories include governmental, proprietary, fiduciary and college and university funds. The two account groups presented are the general fixed assets account group and the general long-term debt account group.
Governmental Fund Types are used to account for all or most of a state's general activities. Governmental fund types include:
General Fund - The General Fund is used to account for all financial transactions not required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a state government.
Special Revenue Funds - Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for specified purposes.
The primary government special revenue fund is the GeorgiaNet Authority. The GeorgiaNet Authority is responsible for centralized marketing, sales, leasing and licensing of certain public information.
Debt Service Funds - Debt Service Funds are used to account for the payment of principal and interest on general long-term debt.
The primary government debt service fund is the General Obligation Debt Sinking Fund, which is administered by the Office of Treasury and Fiscal Services. The Debt Sinking Fund is responsible for the accumulation of resources for the payment of principal and interest on general obligation bonds.
Capital Projects Funds - Capital Projects Funds are used to account for the acquisition or construction of capital facilities.
Proprietary Fund Types are used to account for activities similar to those found in the private sector, where cost recovery and the determination of net income is necessary or useful for sound fmancial administration.

A-38

F
L

- - - - - - - - - State of Georsia - - - - - - - - -

Notes to the Flf\ancial Statements .knc 30, 1995

Note 1. Summary of Significant Accounting Policies (continued)
I~-
Enterprise Funds - Enterprise Funds are used to account for operations (a) that are fmanced and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be fmanced or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.
The primary government enterprise fund is the State Employees' Health Benefit Plan, which is administered by the State Personnel Board, Merit System of Personnel Administration. The State Employees' Health Benefit Plan is a self-insured program of health benefits for the employees of units of government of the State of Georgia, units of county government and local education agencies located within the State of Georgia.
Internal Service Funds - Internal Service Funds are used to account for the fmancing of goods or services provided by one department or agency to other State departments or agencies, or to other governmental entities, on a cost-reimbursement basis.
Fiduciary Fund Types are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the State. These fund types include:
Expendable Trust Funds - Expendable Trust Funds are used to account for the activities of trusts in which both principal and income may be used for the purposes of the trust.
Nonexpendable Trust Funds - Nonexpendable Trust Funds are used to account for the activities of trusts when the government is under an obligation to maintain the trust principal.
Pension Trust Funds - Pension Trust Funds are used to account for State-administered retirement systems.
Investment Trust Fund - Investment Trust Funds are used to account for the external portion of a governmentsponsored investment pool.

The primary government investment trust fund is Georgia Fund I, which is administered by the Office of Treasury and Fiscal Services. Georgia Fund I was established to enable local governments to voluntarily invest any idle local moneys.
Agency Funds - Agency Funds are used to account for assets that the State holds on behalf of others as their agent.
College and University Funds are used to account for the operations of State colleges and universities in accordance with existing authoritative accounting and reporting principles applicable to government-operated colleges and universities. Accordingly, college and university funds are an aggregation of the following funds.
Current Funds - Current Funds are used to account for current operating expenditures and related resources and include (1) unrestricted funds over which the college or university retains full control in achieving the institutions' purposes, and (2) restricted funds which may be utilized only in accordance with externally-restricted purposes.
Loan Funds - Loan Funds are used to account for transactions ofrelated resources obtained and used for loans to students.
Endowment and Similar Funds - Endowment and Similar Funds are used to account for resources held by the institutions that must be administered in accordance with trust agreements.
Plant Funds - Plant Funds are used to account for institutionalproperty acquisition, renewal and replacement, debt retirement and investment.
Agency Funds - Agency Funds are used to account for amounts held in custody for students, university-related organizations and others. Agency Funds are also used to account for the external portion of college and university fund-sponsored investment pools.
The General Fixed Assets Account Group is used to account for all fixed assets acquired or constructed for use by the State, other than those accounted for in the proprietary, fiduciary, and college and university funds.
The General Long-Term Debt Account Group is used to account for general obligation bonds outstanding, accrued annual and compensatory leave, capital lease obligations and other long-term liabilities not otherwise recorded in proprietary, fiduciary, and college and university funds.

A-39

- - - - - - - - - State of GeorfJia - - - - - - - - -
Notes tothe Rnandal Statements
JUlie 30. I99B

Note 1. Summary of Significant Accounting Policies (continued)
Discretely Presented Component Units - The fmancial statements of the component units, other than the component units which fmancial statements were blended with the fmancial statements of the primary government due to their relationship with the primary government, are presented in separate columns. The three columns presented reflect fmancial activity for the following fund types:
Governmental Fund Types are used to account for component unit general activities.
Proprietary Fund Types are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound fmancial management.
Fiduciary Fund Types are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the State.
The financial data presented in these columns are discretely presented with the balances and transactions for each component unit being aggregated within the component unit's predominant fund type.
c. Basis of Accounting
The accounting and fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds and expendable trust funds are accounted for using a current fmancial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other fmancing sources) and decreases (i.e., expenditures and other fmancing uses) in net current assets.
All proprietary funds, nonexpendable trust funds, pension trust funds and investment trust funds are accounted for on a flow ofeconomic resourcesmeasurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (i.e., net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.

The modified accrual basis of accounting is used by all governmental fund types, expendable trust funds and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Principal revenue sources which are susceptible to accrual include income taxes, sales and use taxes, federal grants and shared revenues. Revenues applicable to expendituredriven programs, however, may be accrued based on the unexecuted portion of contracts for goods and services. Expenditures are recorded when the related fund liability is incurred, as required by GAAP, with the exception of year-end encumbrances which are recorded as expenditures rather than as a reservation of fund balance. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the subsequent fiscal year.
The accrual basis of accounting, as required by GAAP, is utilized by proprietary fund types, nonexpendable trust funds, pension trust funds and investment trust funds with the exception ofthe following individual pension trust funds which are reported essentially on the cash basis:
Discretely Presented Component Units Fiduciary Fund Types Firefighters' Pension Fund Judges of the Probate Courts Retirement Fund Peace Officers' Annuity and Benefit Fund of Georgia Sheriffs' Retirement Fund of Georgia Superior Court Clerks' Retirement Fund of Georgia
Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Depreciation of fixed assets has not been reported for all funds included within the proprietary fund types as required by GAAP.
The College and University Funds are reported using the modified accrual basis of accounting (which is materially the same as the accrual basis of accounting applicable to colleges and universities), with the exception that contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying fmancial statements.
As permitted by generally accepted accounting principles for colleges and universities, no depreciation is provided for the physical properties.

A-40

- - - - - - - - State of Georgia - - - - - - - -

Notes to the Financial Statements

sr/i
~

June 30, 199B

Note 1. Summary of Significant Accounting Policies (continued)
D. Budgets
The annual budget ofthe State of Georgia is prepared on the modified accrual basis utilizing encumbrance accounting with the following exceptions: federal and certain other revenues are accrued based on the unexecuted portion of long-term contracts; and intrafund transactions are disclosed as revenue and expenditures. The budget represents departmental appropriations recommended by the Governor and adopted by the General Assembly prior to the beginning of the fiscal year. Annual appropriated budgets are adopted at the departmental level. The appropriated budget covers most governmental funds included in the State reporting entity but excludes the special revenue fund, capital projects funds and certain debt service funds which are not subject to appropriation. The budget includes certain proprietary funds, the college and university funds, and the ad~inistrative costs of operating certain public employee retirement systems. All unencumbered annual appropriations lapse at fiscal year end unless otherwise specified by constitutional or statutory provisions. Supplementary and amended appropriations may be enacted during the next legislative session by the same process used for original appropriations. Encumbrances are used to indicate the intent to purchase goods or services. Liabilities and expenditures are recorded upon issuance of completed purchase orders. Goods or services need not have been received for liabilities and expenditures to be recorded.
Because the budgetary basis differs from GAAP, budget and actual amounts in the accompanying Statement of Funds Available and Expenditures Compared to Budget - Budget Fund are presented on the budgetary basis. A reconciliation of the excess of funds available over expenditures on the budgetary basis at June 30, 1998, to the excess (deficiency) of revenues and other fmancing sources over (under) expenditures and other financing uses/net income (loss)/net increase in plan net assets/net increase (decrease) in fund balances - current funds presented in conformity with GAAP is set forth in Note 3.
E. Deposits and Investments
Cash and Cash Equivalents Cash and cash equivalents include currency on hand and demand deposits with banks and other financial institutions. Cash and cash equivalents also include short-term, highly liquid investments with maturity dates within three months

of the date acquired, with the exception of the college and university funds, which report all time deposits as cash.
Investments Investments are defmed as those fmancial instruments with terms in excess of three months from the date of purchase and certain other securities held for the production of revenue.
The investment policy of the State of Georgia is to maximize the protection of State funds on deposit while accruing an advantageous yield on those funds in excess of those required for current operating expenses (Official Code of Georgia Annotated [OCGA] 50-17-51). The State Depository Board may permit any department, board, bureau or other agency to invest funds collected directly by such. organization in short term time deposit agreements, provided that the interest income of those funds is remitted to the Director of the Office of Treasury and Fiscal Services as re~enues of the State of Georgia. As a matter of general practice, however, demand funds of any department, board, bureau or other agency in excess of current operating expenses are required to be deposited with the Director of the Office ~f Treasury and Fiscal Services for the purpose of pooled mvestment (OCGA 50-17-63). Such cash is managed in a pooled investment fund to maximize interest earnings. The pooled investment fund is also available on a voluntary basis to organizations outside of the State reporting entity.
Authorized pool investments are limited to the following (OCGA 36-83-4 and 36-83-8):
1) Obligations of the State of Georgia or of other states' 2) Obligations issued by the United States government; 3) Obligations fully insured or guaranteed by the United
States government or a United States government agency; 4) Obligations of any corporation of the United States government; 5) Prime banker's acceptances; 6) Repurchase agreements; and 7) Obligations of other political subdivisions ofthe State.
Pooled cash and cash equivalents and investments are grouped into portfolios for investment purposes according to the operating needs ofthe State of Georgia and other pool contributors.
The Primary Liquidity Portfolio is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission (SEC) as an investment company, but does operate in a

A-41

- - - - - - - - State of Georgia - - - - - - - -
Notes tothe Fil1andal Statemmts
JUIlC 30, I99B

Note 1. Summary of Significant Accounting Policies (continued)
manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal. Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participants' shares sold and redeemed at the pool's share price, $1.00 per share.
The Extended Term Portfolio consist of repurchase agreements and certain U.S. Government Securities which include mortgage-backed securities such as collateralized mortgage obligations and adjustable rate mortgages. These mortgage-backed securities are reported as U.S. Government Securities in the disclosure of custodial credit risk (see Note 4). Investments in this portfolio are transacted by an external investment management firm under direction of an investment advisory agreement executed between the Office of Treasury and Fiscal Services and the investment management firm. The agreement directs the investment finn to utilize the Merrill Lynch 1-3 year Treasury Index in managing the average duration of the overall portfolio, excluding cash, to within plus or minus six months of the duration of the Index. As ofJune 30, 1998, the State had $47,362,040 invested in U. S. agency mortgage- and asset-backed securities.
Other organizations ofthe State of Georgia reporting entity invest in a variety offmancial activities. These investments may include brokered certificates of deposit, commercial paper, convertible bonds, corporate bonds, notes and obligations, foreign bonds, investment agreements, mortgages, municipal bonds, mutual funds, real estate, real estate mortgages and notes, real estate investment trust limited partnerships, repurchase agreements, short-term investments, stocks, and U. S. Treasury bonds, notes, and bills. Investments of other organizations are stated at fair value at June 30, 1998.
The Commissioner of the Department of Agriculture is directed by statute to require dealers in certain agricultural products and livestock to make and deliver to the Department a surety or cash bond to secure the faithful accounting for and payment to producers of the proceeds of agricultural products or livestock handled or sold by the dealer. Cash bonds are required to designate the Department as trustee ofthe funds and may take the form of

certificates of deposit, letters of credit, money orders or cashiers' checks. At June 30, 1998, the Department held surety bonds in the amount of $32,920,366, and cash bonds in the amount of $11,416,189. These bonds are not recorded on the Combined Balance Sheet.
Securities are held pursuant to statutes which require licensed insurance companies to deposit securities with the Department of Insurance prior to issuance of a certificate of authority to transact insurance by the Commissioner of Insurance. These securities remain in the name of the licensed insurance company as long as the company has a pending claim in the State of Georgia or until a proper order of a court of competent jurisdiction has been issued to the receiver, conservator, rehabilitator, or liquidator of the insurer or to any other properly designated official or officials who succeed to the management and control of the insurer's assets. The purchase and redemption of such securities is allowed as long as the required levels of deposits are maintained. At June 30, 1998, securities in the amount of $194,651,483 were held by the Department of Insurance. These securities are not recorded on the Combined Balance Sheet.
Construction contracts awarded by the Department of Transportation (Primary Government) and the State Tollway Authority (Discretely Presented Component Units) usually include provisions to withhold a percentage of the payments until the project reaches a specified state of completion. Georgia law requires that these funds be deposited in a state or national bank chartered within this State. The State controls only the release of these funds; the assets in the accounts are considered to be the property of the contractor. Therefore, no assets and liabilities for these escrow accounts have been included in these fmancial statements. At June 30, 1998, $42,105,490 in escrow deposits were administered by the Department of Transportation and $75,788 by the State Tollway Authority.
F. Receivables
Receivables in the State's governmental funds pertain primarily to Federal revenues and revenues applicable to charges for services. Receivables in all other funds have arisen in the ordinary course of business. Receivables are recorded when either the asset or revenue recognition criteria (See Note l-C) have been met. Estimates of allowances for uncollectible receivables have not been made for the majority of receivables included within the fmancial statements.

A-42

r'
L

- - - - - - - - - State of Georgia - - - - - - - - -

Notes to the Flf1andal Statements June 30. I99B

Note 1. Summary of Significant Accounting Policies (continued)
G. Interfund Receivables
The short-term portion of balances arising in connection with interfund loans are recorded as interfund receivables.

assets. The fund balance reserve is based on values established by the U. S. Department of Agriculture.
K. Prepaid Items
Payments made to vendors and local government organizations for services that will benefit periods beyond June 30, 1998, are recorded as prepaid items.

H. Due To/From Other Funds
Equally offsetting asset and liability accounts are used to account for amounts owed to a particular fund by another fund for short term obligations on goods sold or services rendered.

L. Restricted Assets
Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants.

I. Advances to Other Funds
Noncurrent portions of long-term interfund loans receivable are reported as advances and are offset equally by a fund balance reserve account which indicates that they do not constitute expendable available financial resources and therefore are not available for appropriation.
J. Inventories
Inventories of supplies and materials are determined by physical count and/or perpetual inventory records and are valued at cost, current purchase price, fair market value, lower of cost or market using the first-in/first-out (FIFO) method, moving average cost, standard cost, or weighted average cost, depending on the individual organization's preference. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased for larger agencies and agencies with material inventories. Other agencies may use either the purchase or consumption method.
Under the purchase method, a portion ofthe fund balance is reserved for inventories to indicate that it is not available for appropriation. Organizations under the consumption method normally reserve a portion of fund balance equal to the average monthly inventories on hand for the fiscal year.
USDA Donated Food Inventories are shown at a value established by the U. S. Department of Agriculture. Donated food inventories are equally offset by an amount to indicate that they do not constitute "available expendable resources" even though they are a component of net current

M. Fixed Assets
General fixed assets of governmental fund types are reflected as expenditures in the funds used to acquire or construct them and the related assets are reported in the general fixed assets account group. Proprietary and trust fund fixed assets are capitalized in their respective funds, except for expendable trust fund fixed assets, which are reported in the general fixed assets account group. College and university funds report expenditures for fixed assets in the funds used to acquire or construct them and the related assets are reported within the plant funds.
Due to the lack of complete and accurate inventory records applicable to State-owned land and buildings and the lack of historical cost values for certain parcels of land and buildings, the general fixed assets account group does not represent a comprehensive valuation ofthe assets owned by the State of Georgia.
All purchased fixed assets are valued at cost or at estimated historical cost if historical cost is not practically determinable. Certain fixed assets acquired through capital leases in prior years have not been recorded on the fmancial statements at the net present value of the minimum lease payments as is required by GAAP. Donated fixed assets are valued at their estimated fair market value on the date received.
Costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Material improvements adding to the value of assets are capitalized. Interest costs during construction are not capitalized for construction or acquisition of assets

A-43

- - - - - - - - - State of Georgia - - - - - - - - -
Notes tothe FlI1andalStatements June 30, I99B

Note 1. Summary of Significant Accounting Policies (continued)

funded by governmental fund types and college and university funds. Interest costs during construction for proprietary fund types are not capitalized with the exception of construction projects funded through the Stone Mountain Memorial Association (discretely presented component unit).

With the exception of the college and university funds, public domain ("infrastructure") fixed assets consisting of such assets as roads, bridges, curbs, streets and sidewalks, drainage systems and lighting systems are not generally reported, as these assets are immovable and of value only to the State of Georgia.

Assets in the general fixed assets account group and the

college and university funds are not depreciated. The

majority of proprietary funds do not record depreciation on

fixed assets as required by GAAP.

.

N. Compensated Absences
The State's liability for accumulated unpaid annual leave is reported in the accompanying general long-term debt account group for governmental fund types. These amounts are not shown as a liability in the funds but are recorded as expenditures when paid. In the proprietary fund types and the college and university funds this obligation is reported as a liability in the respective funds.
Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employee's length of continuous State service with a maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. Funds are provided in the appropriation of funds each fiscal year to cover the cost of annual leave of terminated employees.
Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Sick leave does not vest with the employee. Unused accumulated sick leave is forfeited upon retirement or termination of employment. However, certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia. No liability is recorded for nonvesting accumulating rights to receive sick pay benefits.

O. Deferred Revenue
The State reports deferred revenue on the combined balance sheet. Deferred revenues arise when a potential revenue does not meet the "available" criterion for recognition in the current period. Deferred revenues also arise when resources are received by the State before it has a legal claim to them, as when grant monies are received prior to qualifying expenditures being incurred. In subsequent periods, when the revenue recognition criterion is met, or when the State has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized.
P. Mortgage Loans Under Repurchase Agreements
At June 30,1998, mortgage loans totaling $17,728,827 have been transferred and assigned to lenders under repurchase agreements by the Georgia Development Authority (Discretely Presented Component Units). The agreements give the lenders the option to have the Authority repurchase the mortgage loans for an amount equal to the then outstanding balance of principal and interest due during a specified period of time.
In addition, the Authority guarantees the principal and interest payment by the borrower to the lender within thirty (30) days ofthe due date. Any payment not received within thirty (30) days is considered advanced to the borrower and paid to the lender by the Authority. The Authority then charges the borrower interest on these advances for the period outstanding at a penalty rate agreed upon at the loan origination date. Fund balance in the amount of fifteen percent (15%) of the principal balances outstanding of mortgage loans under repurchase agreements is reserved.
Q. Long-Term Obligations
Long-term debt and other long-term obligations are recognized as a liability of a governmental fund when due, or when resources have been accumulated in the debt service fund for payment early in the subsequent fiscal year. Other long-term obligations, with the exception of the long-term portion of some capital leases, are reported in the general long-term debt account group.
Long-term debt expected to be fmanced from proprietary fund operations are accounted for in those funds.

A-44

p
L

- - - - - - - - - State of GeorfJia - - - - - - - - -

Notes to the rOlandal Statements

t;
L

June 30. I99B

Note 1. Summary of Significant Accounting Policies (continued)
R. Fund Equity
Contributed capital is recorded in proprietary funds that have received capital or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of fmanciaI resources.
s. Bond DiscountslPremiumslIssuance Costs
In governmental fund types, bond discounts, premiums and issuance costs are recognized in the current period. Bond discounts, premiums and issuance costs for proprietary fund types are deferred and amortized over the term of the bonds using a method which approximates the effective interest method or the straight-line method. Bond premiums (discounts) are presented as increases (reductions) in the face amount of bonds payable whereas issuance costs are recorded as deferred charges.
T. Interfund Transactions
The State has the following types of interfund transactions:
Quasi-external transactions for services rendered by one fund to another are accounted for as revenues by the recipient fund and expenditures or expenses by the disbursing fund.
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions ofexpenditures/expenses in the fund that is reimbursed.

Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all other interfund transactions.
u. Intrafund Transactions
State accounting policies and procedures allow for the recording of revenues, receivables, expenses and liabilities for transactions between State organizations whose fmancial activity is included within a single fund. State accounting systems do not facilitate the identification of all such transactions. Adjustments have been made for material transactions and balances which have been identified during the preparation of the State's general purpose fmancial statements; however, all such intrafund transactions and balances were not identifiable and, accordingly, revenues, receivables, expenses and liabilities are overstated, primarily in the general and college and university funds.
v. Memorandum Only - Total Columns
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present fmancial position, results of operations or cash flows in conformity with GAAP. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
w. Fiscal Reporting Periods
The fmancial statements include fmanciaI activity for the Stone Mountain Memorial Association whose fiscal reporting period differs from that of the State of Georgia (July 1, 1997 through June 30, 1998). The applicable fiscal reporting period for the Stone Mountain Memorial Association is based on afifty-two/fifty-three week period ending on the last Sunday of each calendar year. Financial activity is reported for the period December 30, 1996, through January 2, 1998.

A-45

- - - - - - - - State of Georgia--------
Notes to the Rnandal Statements
June 30.199B

Note 2. Other Accounting Disclosures
Change in Accounting Policy and Restatements
Atlanta and Savannah Technical Institutes have been added to the reporting entity as a part of the General Fund for the year ended June 30, 1998. The beginning fund balance for the general fund has been increased by $1,504,009 due to the inclusion of these organizations.
In fiscal year 1998, the State implemented GASB Statement 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools." The statement establishes fair value standards for reporting certain investments and establishes fmancial statement reporting standards for external investment pools. These changes are reflected as adjustments to fund equity in the applicable funds.
A reconciliation of the equipment inventory records of the Department of Administrative Services revealed an unidentified difference between the computed balance based on current year purchases/deletions and the actual fmancial statement balance. The beginning fund equity of the internal service funds has been decreased by $10,336,230 for this correction.
In prior years, the Ports Authority recorded contributions from the primary government to be used to construct certain facilities. The expenditure of these funds was charged to construction in progress. The Authority believes this investment is not recoverable and that the related cash receipts and expenditures should not have been recorded as contributions or as an asset of the Authority. The beginning fund equity of the discretely presented component units proprietary fund types has been decreased by $8,600,000, and construction in progress has been restated.
Fund balances/fund equity at July 1, 1997, have been adjusted as follows:

Primary Government

General Fund

Restatement of Beginning Fund Balance

for the Inclusion of Atlanta and

Savannah Technical Institutes

$

1.504.009

Capital Projects Funds Investments Reported at Fair Value Correction of Errors

$ 14,058,031 7.600.000
$ 21.658.03I

Internal Service Funds Fixed Assets Correction

$ (j0.336230)

Expendable Trust Funds Investments Reported at Fair Value

$

(6.504)

Nonexpendable Trust Funds

Investments Reported at Fair Value

$

(383)

Investment Trust Fund External Pool Reporting

$2.110m 5.023

College and University Funds Investments Reported at Fair Value

$ 21.960.025

Discretely Presented Component Units

Proprietary Fund Types

Investments Reported at Fair Value

$ (4,573,552)

Contributed Capital Restatement

(8,600,000)

Correction of Errors

(7.298.285)

$ (20.471.837)

A-46

- - - - - - - - - State of GeorfJia - - - - - - - - -
Notes to the FlI1ancial Statements June 30, 1995

Note 3. Budgetary Accounting
The Official Code of Georgia Annotated (OCGA), Title 45, Chapter 12, Article 4 sets forth the process for the development and monitoring of an appropriated budget for the State of Georgia. Not later than September 1 of each year, the head of each executive branch budget unit must submit estimates of the fmancial requirements for the subsequent fiscal year to the Office of Planning and Budget, which operates under the direction ofthe Governor. Budget estimates relative to the legislative and judicial branches of State government are provided to the Office of Planning and Budget for the purpose of estimating the total fmancial needs ofthe State, but are not subject to revision or review by the Office of Planning and Budget.
The Governor, through the Office of Planning and Budget, examines the estimates and may investigate and revise executive branch submissions as necessary. Upon the completion and revisions of the estimates, the Governor must prepare and submit a budget report to the General Assembly within five days ofthe date on which the General Assembly convenes. The Governor possesses the responsibility and authority to establish the revenue estimate for the corresponding fiscal year.
The General Assembly, after adopting such modifications to the Governor's budget report as it deems necessary, enacts the General Appropriations Act for the subsequent fiscal year. Each General Appropriations Act enacted, along with amendments as are adopted, continues in force and effect for the next fiscal year after adoption. In accordance with the Constitution of the State of Georgia, Article III, Section IX, Paragraph 4, the General Assembly is prohibited from appropriating funds for any given fiscal year which, in the aggregate, exceeds the amount of unappropriated surplus funds expected to have accrued at the beginning ofthe subsequent fiscal year together with the total estimated amount of receipts from existing revenue sources, less refunds, anticipated to be collected in the subsequent fiscal year. The Constitution further authorizes the passage ofadditional Supplementary Appropriation Acts for specific purposes, provided sufficient unappropriated funds are available or additional revenue measures have been enacted. Federal funds received by the State are continually appropriated in the exact amounts and for the purposes authorized and directed by the awarding federal

agency. Internal transfers within a budget unit and between objects of functional or activity budget units are subject to
the condition that no State funds shall be transferred for the
purpose of initiating a new program area not currently having a State funds appropriation.
The Governor, through the Office of Planning and Budget, requires each budget unit, other than those of the legislative and judicial branches, to submit an annual operating budget based on the activities and functions set forth in the Appropriations Act. Budget units submit quarterly allotment requests which must be approved in conjunction with quarterly work programs prior to release of appropriated funds. Further monitoring of budget unit activities is accomplished by review of expenditure reports which are submitted quarterly to the Office of Planning and Budget.
Budget units (i.e., agencies, commissions) of the State are responsible for budgetary control of their respective portion of the total State appropriated budget. The legal level of budgetary control is at the departmental level. Due to the complex nature of the State appropriated budget, a separate budgetary report entitled, "Report of the State Auditor of Georgia," is published each year. This report includes a listing of State organizations (appropriation units) which incurred expenditures in excess of amounts budgeted by object class.
The appropriated budget covers the majority of the governmental funds included within the State of Georgia reporting entity, but excludes the special revenue fund, debt service fund and capital projects funds, which are not subject to appropriation. The budget does include certain proprietary funds, the college and university funds, and the administrative costs of operating various public employee retirement systems. The accompanying Statement of Funds Available and Expenditures Compared to Budget - Budget Fund presents comparisons of the legally adopted budget with actual data prepared on the budgetary basis of accounting utilized by the State. Because the budgetary and GAAP presentations for actual data differ, a reconciliation of "Excess of Funds Available Over Expenditures - Budget Fund (Budgetary Method)" and "Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses/Net Income (Loss)/Net Increase in Plan Net Assets/Net Increase (Decrease) in Fund Balances - Current Funds - GAAP Fund Types" appears below.

A-47

State of Geof'ffla - - - - - - - I_~.~
Notes to the Rnandal statements
June 30. I99B
Note 3. Budgetary Accounting (continued)
A-48

Lf .

State of Georgia - - - - - - -

Notes to the Financial Statements
June 30, 1993

A-49

- - - - - - - - State of Georgia - - - - - - - -
Notes to the Finandal Statements June 30, 1993

Note 4. Deposits and Investments
Deposits - Funds belonging to the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more of the following securities as enumerated in OCGA 50-17-59:
I) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia.
2) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia.
3) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
5) Bonds, bills, certificates of indebtedness, notes or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association and the Federal National Mortgage Association.

6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance, Corporation.
As authorized in OCGA 50-17-53, the State Depository Board has adopted policies which allow agencies of the State of Georgia the option of exempting demand deposits from the collateral requirements.
Primary Government
At year end, the carrying amounts of the State's deposits were $551,093,963, and the bank balances were $1,119,194,950. The amounts of these bank balances are classified into three categories of credit risk: (I) cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the State or by its agent in the State's name, (2) cash collateralized with securities held by the pledging fmancial institution's trust department or agent in the State's name and (3) uncollateralized bank accounts. The State's deposits were classified as follows at June 30, 1998:

Risk Category
2 3

Bank Balance $ 328,827,903
298,713,481 491.653.566 $ 1,119,194950

A-50

State of Georgia - - - - - - - -
Notes to the Financial Statements
June 30. 199B
Note 4. Deposits and Investments (continued)
Significant Discretely Presented Component Units
At year end, the significant discretely presented component units' deposits were classified as follows:

Investments - Investments are stated at market value, and are summarized and classified as to risk in the following three categories: (l) insured or registered, or securities held by the State orits agent in the State's name, (2) uninsured or

unregistered, with securities held by the counterparty's trust department or agent in the State's name or (3) uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the State's name.

A-51

State of Georata - - - - - - - -
Notes to the Rnancial statements
June 30, 199B
Note 4. Deposits and Investments (continued)
Primary Government
The carrying amounts, risk categories and market value applicable to the State's investments are listed below:

Type of Investment Commercial Paper Municipal Bonds Repurchase Agreements Stocks
u.s.Government
Securitiesand Corporate Obligations
Unclassified Mortgages Mutual Funds Other Unemployment
Compensation Funds Pooled with the U.S. Treasury TotalInvesunents

Risk Categories

$

1,708,951

8,385,100

2,785,068,420

7,817,024,677

10216310485

$

20,828497 633

354,827,597

$

13,642,636 52,525,687

98760653 519756573

Carrying Amount 356,536,548 8,385,100
2,798,711,056 7,869,550,364
10 315 071,138 21,348,254,206
4,758,905 14,848,031
6,255
I 914400,343 23 282 267,740

A-52

State of Georgia - - - - - - - -
Notes to the Ftnandal Statements
June 30. 1996

if.
I

Note 4. Deposits and Investments

(continued)

Significant Discretely Presented Component Units
The carrying amounts, risk categories and market value of the investments of the State's significant discretely presented component units are listed below:

Governmental Fund Types
Georgia Public Telecommunications Commission
ProprieJory Fund Types
GeorgiaHousing and FinanceAuthority

Tyoe of Investment
Stocks
Commercial Paper Corporate Bonds U.S. Government
Securities and Corporate Obligations

Unclassified Mortgages

All Other Component Units

Commercial Paper Corporate Bonds
Repurchase Agreements U.S. Government
Securities and Corporate Obligations

Risk Categories

Carrying Amount

$

159334

$

159334

1,389,489 2,726,805

36502945

$

40619239

1,508,677 1,000,000

50,278,585

255951326

$

308738588

1,389,489 2,726,805

36502945

$

40,619,239

42656601

$

83 275 840

$

1,508,677

1,000,000

50,278,585

4068349 4068349

103053000 103053000

363072 675

$

415859937

A-53

- - - - - - - - State of Geot'fJla - - - - - - - -
Notes tothe FD1andal Statements June 30, 1993
Note 4. Deposits and Investments (continued)

Fiduciary Fund Types Teachers Retirement
System of Georgia
All Other Component Units

Type of Investment
RepurchaseAgreements Stocks U.S. Government
Securitiesand Corporate Obligations
Unclassified Real Estate
Corporate Bonds Investment Accounts Notes Repurchase Agreements Stocks U.S. Government
Securities and Corporate Obligations
Unclassified Mutual Funds Real Estate

Risk Categories

486,319,000

$

20,685,510,000

13 268 987 000 34440816000

14,723,618 163,450
42,369,973 525,000
267,349,346

279947855

605078242

$

3 $
$ $

Carrying Amount

486,319,000 20,685,510,000

13 268 987 000 $ 34,440,816,000

3,770000 34 444 586 000
14,723,618 163,450
42,369,973 525,000
267,349,346

279,947855 605,078,242

28,846,747

1217703

$

635142692

Investments Lending Program - The State is presently involved in a securities lending program with major brokerage firms. The State lends equity and fixed income securities for varying terms and receives a fee based on the loaned securities' value. During a loan, the State continues to receive dividends and interest as the owner of the loaned securities. The brokerage firms pledge collateral securities consisting of U. S. Government and agency securities, mortgage-backed securities issued by aU. S. Government agency, and U. S. Corporate bonds. The collateral value must be equal to at least 102% to 110% of the loaned securities value, depending on the type ofcollateral security.

Securities loaned totaled $18,542,163,000 at June 30,1998, and the collateral value was equal to 103.7%. The loaned securities are classified as category I investments in the component units - fiduciary fund types based on the custodial arrangements for the collateral securities. Loaned securities are included in the accompanying Combined Balance Sheet since the State maintains ownership. The related collateral securities are not recorded as assets on the Combined Balance Sheet, and a corresponding liability is not recorded, since the State does not pledge or trade the collateral securities.

A-54

[; - - - - - - - - - State of Georgia - - - - - - - - -

Notes tothe FlI1andal Statements

s!~ .;

June 30. 1993

Note 4. Deposits and Investments (continued)

Investment Pools - Separate reports on the State's external investment pools are not issued. Condensed financial statements, inclusive of external and internal participants for the fiscal year ended June 30, 1998, are as follows:

State Investment Pool Statement of Net Assets
June 30. 1998

Investments

$ 4,281,356,647

Liabilities Cash Overdraft

238942,916

Net Assets

$ 4,042.413,731

Distribution of Net Assets External Participant Account Balances Internal Participant Account Balances

$ 2,659,446,092 1.382,967,639
$ 4,042.413,731

State Investment Pool Statement of Changes in Net Assets For the Fiscal Year Ended June 30.1998

Additions Pool Participant Deposits Investment Income Less: Investment Expense Total Additions

$ 9,937,242,067 333,916,752 (1.735,049)
$10,269,423,770

Deductions Pool Participant Withdrawals Net Increase Net Assets July 1

9.557.355,504 $ 712,068,266
3.330.345.465

June 30

$ 4,042.413,731

A-55

State of Georgia - - - - - - - -
Notes tothe Financial statements
June 30, 1993
Note 4. Deposits and Investments (continued)

Regents Investment Pool Statement of Net Assets
June 30. 1998

Investments Interest Receivable Total Assets

$ 100,703,314 427,114
$ 101,130,428

Liabilities Cash Overdraft

1.523,174

Net Assets

$ 99,607.254

Distribution of Net Assets External Participant Account Balances Internal Participant Account Balances

$ 6,528,363 93,078,891
$ 99,607,254

Regents Investment Pool Statement of Changes in Net Assets For the Fiscal Year Ended June 30. 1998

Additions Investment Income
Interest Fair Value Increases Less: Investment Expense Total Additions Deductions Pool Participant Withdrawals Capital Transactions Total Deductions Net Decrease Net Assets July 1

$ 4,022,844 10,531,063 <369,270)
$ 14,184,637
$ 59,250,391 (26,951.815)
$ 32,298,576 $ (18,113,939)
117,721.193

June 30

$ 99,607,254

A-56

- - - - - - - - - State of Georgia - - - - - - - - -

Notes tothe Financial Statements

L_.

June 30, I99B

Note 5. Receivables
Primary Government
Receivables by fund type as of June 30, 1998, consist of the following:

Governmental Fund Types General Special Revenue Capital Projects
Proprietary Fund Types Enterprise Internal Service
Fiduciary Fund Types Expendable Trust Pension Trust Agency
College and University Funds

Gross Receivables

Allowance For
Uncollectibles

Net Total Receivables

$ 3,277,652,421

$

1,779,103

13,092,184

$ 3,277,652,421 1,779,103
13,092,184

20,749,365 10,837,247

(2,180,096)

18,569,269 10,837,247

99,540,799 100,345,125 26,373,232 302.345.438

(15,438,484) (59,151.501)

84,102,315 100,345,125 26,373,232 243,193,937

$ 3,852,714,914

$ (76,770,081)

$3,775,944,833

A-57

- - - - - - - - - State of Geot'fPa - - - - - - - - -
Notes tothe Flf1andal Statements
June 30. 199B
Note 5. Receivables (continued)
Significant Discretely Presented Component Units
Receivables of the significant discretely presented component units as of June 30, 1998, consist of the following:
A-58

If:
L

- - - - - - - - State of GeorfJia - - - - - - - -

Notes tothe Rnandal Statements June 30, 1993

Note 6. Fixed Assets
Primary Government
The following is a summary of changes in the general fixed assets account group during the fiscal year:

Land and Buildings Improvements Other Than Buildings Machinery and Equipment Construction in Progress
Total General Fixed Assets

Balance July I. 1997 $ 1,856,103,612
389,573 850,747,262
$ 2,707.240,447

Additions $ 133,562,109
59,059 129,035,657
350,787
$ 263,007,612

Retirements $ (1,698,794)
(53,660,964)
$ (55 359,758)

Balance June 30.1998 $ 1,987,966,927
448,632 926,121,955
350,787
$ 2,914,888,301

The following is a summary of the proprietary fund types and college and university funds fixed assets at June 30, 1998:

Land and Buildings Improvements Other Than Buildings Machinery and Equipment Less: Accumulated Depreciation Construction in Progress Net Fixed Assets

Proprietary Fund Types

Enterprise Funds

Internal Service Funds

$

$ 242,027,505

313,620

181,354,768 (11,980,413)

$

313,620

$ 411.401.860

College and University Funds $ 2,692,992,145
181,591,288 1,561,332,914
200,930,122 $ 4,636,846.469

A-59

- - - - - - - - - - State Of Geof'Sla - - - - - - - - - -
Notes tothe Financial Statements
June 30, I99B
Note 6. Fixed Assets (continued)
Significant Discretely Presented Component Units
The following is a summary of the significant discretely presented component units' fixed assets at June 30, 1998:

Land and Buildings Improvements Other Than Buildings Machinery and Equipment Less: Accumulated Depreciation Construction in Progress Net Fixed Assets

Governmental Fund Types
Georgia Pnblic Telecommunications
Commission 27,360,330
64,270,414

$

91630744

Georgia Ports
Authority
173,885,000 200,806,000 117,111,000 (204,906,000)
63 114000 350010 000

Proprietary Fund Tyoes

Stone Mountain Memorial Association

n Geo. L. Smith
Georgia World Congress Center
Anthority

All Other Component
Units

81,304,479 18,980,870 28,009,630 (32,656,784)
287578 95925773 $

209,402,736
11,729,405 (43,869,410)
70791475 248054,206 $

87,078,996 2,710,490 29,963,747 (20,100,103) 25026332 124679462

Land and Buildings Machinery and Equipment
Net Fixed Assets

Fiduciary Fund Types

Firefighters' Pension Fund

$

135,197

132.210

Peace Officers' Annuity and Benefit Fund

$

310,296

123,498

All Other Component
Units
$
40,433

$

267,407 $

433,794 $ 40,433

As noted in the Summary of Significant Accounting Policies (Note 1), the State does not maintain complete and accurate inventory records applicable to State-owned land and buildings, nor are there historical cost values for certain

parcels ofland and buildings; therefore, the tables above do not represent a comprehensive valuation ofthe assets owned by the State of Georgia.

A-60

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the FU1ancial Statements
June 30. 199B

Note 7. Risk Management
~'
A. Public Entity Risk Pool
The State Personnel Board, Merit System of Personnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government ofthe State of Georgia, units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations by the General Assembly of Georgia. The State Personnel Board, Merit System of Personnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.
A reconciliation of total claims liabilities for fiscal years ended June 30, 1998, and 1997, is shown below:

Unpaid Claims and Claim Adjustments July I

Fiscal Year Ended June 30. 1998

Fiscal Year Ended June 30. 1997

$148,196,779 $159,373,817

Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year

863,085,931

820,471,532

Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events of the Current Year and of Prior Years

(851.524,392)

(831.648.570)

Unpaid Claims and Claim Adjustments June 30

$159,758.318 $148,196.779

B. Board of Regents Employee Health Benefits Plan
The Board of Regents of the University System of Georgia maintains a program ofhealth and dental benefits for its employees and retirees. This plan is funded jointly through premiums paid by participants covered under the plan and employer contributions paid by the Board ofRegents and its organizational units. All units of the University System of Georgia share the risk of loss for claims of the plan.
The Board of Regents has contracted with Blue Cross Blue Shield to process all claims in accordance with medical coverage guidelines as established by the Board of Regents.
A reconciliation of total claims liabilities for fiscal years ended June 30, 1998, and 1997, is shown below:

Fiscal Year Ended June 30. 1998

Fiscal Year Ended June 30, 1997

Unpaid Claims and Claim Adjustments July 1

$ 20,900,000 $ 19,600,000

Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year

140,916,616

138,407,492

Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events of the Current Year and of Prior Years

(140,016.616)

(137 107.492)

Unpaid Claims and Claim Adjustments June 30

$ 21.800,000 $ 20,900.000

c. Other Risk Management
The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets.

A-61

- - - - - - - - State of Georf)ia--------
Notes to the FlI1andal Statements
June 30, 1993

Note 7. Risk Management (continued)

The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk ofloss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. Premiums for the risk management program are charged to the State agencies by DOAS to provide claims servicing and claims payment.
A reconciliation of total claims liabilities for fiscal year ended June 30, 1998, is shown below:

Fiscal Year Ended June 30 1998

Fiscal Year Ended June 30, 1997

Unpaid Claims and Claim Adjustments July I

$ 258,497,047 $ 239,893,133

Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year

183,454,774

123,841,662

Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events of the Current Year and of Prior Years

(84,658,II9l

(J05,237,748l

Unpaid Claims and Claim Adjustments June 30

$ 357,293,702 $ 258.497,047

Note 8. Construction and Other Significant Commitments
Primary Government
The Georgia State Financing and Investment Commission has entered into agreements with various State departments and agencies for the expenditure of bond sale proceeds and cash supplements (provided by the department or agency involved) to acquire and construct capital projects. At June 30, 1998, the undisbursed balance remaining on these agreements approximates $769,000,000.

Significant Discretely Presented Component Units
Proprietary Fund Types
At June 30, 1998, the Georgia Ports Authority had commitments for construction projects of approximately $34,000,000.
Note 9. Operating Leases
A. Lessee
The State leases land, office facilities, office and computer equipment, and other assets. These leases are considered for accounting purposes to be operating leases. Although lease terms vary, many leases are subject to appropriation from the General Assembly to continue the obligation. Other leases generally contain provisions that, at the expiration date of the original term of the lease, the State has the option of renewing the lease on a year-to-year basis. Certain organizations within the State's reporting entity do not maintain adequate systems for recording lease commitments in accordance with GAAP.
Future minimum commitments for operating leases as of June 30,1998, are listed below. Amounts are included for renewable leases for which the option to renew for the subsequent fiscal year has been exercised.
Primary Government

Fiscal Year Ended June 30 1999 2000 2001 2002 2003 2004 and Subsequent Total Minimum Commitments

$ 59,531,53I 10,632,192 8,855,963 8,367,523 7,984,919 39.155.571
$134.527.699

Expenditures for rental of real property and equipment for the year ended June 30, 1998, totaled $70,253,027.

A-62

I"
L

- - - - - - - - State of GeorfJia - - - - - - - -

Notes to the Rnal1cial Statements
June 30. 199B

Note 9. Operating Leases (continued)
Significant Discretely Presented Component Units
Proprietary Fund Types

Georgia Lottery Corporation

Fiscal Year Ended June 30

1999

$ 1,961,000

2000

1,963,000

2001

1,963,000

2002

1,963,000

2003

1,963,000

2004 and Subsequent

14000

$ 9,827,000

Less: Sublease Revenues

0.804.000)

Total

$ 8,023.000

B. Lessor
The State leases certain of its facilities for use by others for terms varying from 1 to 65 years, with the majority ofleases controlled by the State Properties Commission. These leases are accounted for as operating leases; revenues for services provided and for use of facilities are recorded when earned. Minimum future revenues and rentals to be received under operating leases as of June 30, 1998, are as follows:
Primary Government

Fiscal Year Ended June 30 1999 2000 2001 2002 2003 2004 and Subsequent
Total

$ 8,193,263 8,312,029 8,427,780 8,555,230 8,685,546
172 646184 $ 214 820 032

Expenditures for rental of real property and equipment for the year ended June 30, 1998, totaled $1,606,000.

North Georgia Mountains Authority

Fiscal Year Ended June 30

1999

$ 1,429,219

2000

1,432,064

2001

1,434,982

2002

1,438,486

2003

1,448,954

2004 and Subsequent

16,858,914

Total Minimum Commitments

$ 24,042,619

Expenditures for rental of real property and equipment for the year ended June 30, 1998, totaled $1,426,635,

Revenues from rental of facilities for the year ended June 30, 1998, totaled $8,071,765.

Significant Discretely Presented Component Units
Proprietary Fund Types

Lake Lanier Islands Development Authority

Fiscal Year Ended June 30

1999

$ 3,100,000

2000

3,100,000

2001

3,100,000

2002

3,200,000

2003

3,200,000

2004 and Subsequent

141.066,667

Total

$ 156,766,667

A-63

- - - - - - - - - State of GeorfJia - - - - - - - - -
Notes tothe FlI1andal statements
June 30, 199B

Note 9. Operating Leases (continued)
Revenues from rental of facilities for the year ended June 30, 1998, totaled $2,850,000.
Note 10. Capital Leases and Installment Purchases
The State acquires certain property and equipment through multi-year installment purchases or capital leases with varying terms and options. The majority of these agreements contain fiscal funding clauses in accordance with OCGA 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly are considered noncancellable for fmancial reporting purposes.
Capital leases for the proprietary funds and the college and university funds are reported as a long-term obligation in those funds along with the related assets. Capital leases for the governmental funds are reported in the general long-term debt account group and the related assets are reported in the general fixed assets account group.
As noted in the Summary of Significant Accounting Policies (Note 1), capital lease transactions have not been consistently recorded in conformity with GAAP. Fixed assets in prior years have not been recorded in the general fixed assets account group at the net present value of the minimum payments nor has the long-term liability applicable to capital leases been consistently recorded in the general long-term debt account group. Also, the State does not record expenditures and other fmancing sources in the governmental fund types when capitalized leases are entered into as required by GAAP. At June 30, 1998, future commitments under installmentpurchases and capital leases were as follows:

Primary Government

Fiscal Year Ended June 30 1999 2000 2001 2002 2003 2004 and Subsequent
TotalCapital LeaseandInstallment Purchase Payments Less: Interest Present Value of Capital Lease and Installment Purcbase
Payments
Installment Purcbases Capital Leases

$ 14,153,483 12,978,185 9,012,456 2,418,097 140,830 34835
$ 38,737,886 (3 580966)
$ 35156920
$ 2,485,830 32671090
$ 35156920

Significant Discretely Presented Component Units
Governmental Fund Types

Georgia Public Telecommunications Commission

Fiscal Year Ended June 30

1999

$ 2,087,411

2000

2,083,804

2001

2,083,804

2002

2,083,804

2003

2,083,804

2004 and Subsequent

2309919

Total Installment Purcbase Payments

$ 12,732,546

Less: Interest

(I 907886)

Present Valueof Installment Purchase Payments

$ 10824660

A-64

- - - - - - - - State of GeorfJia - - - - - - - -
Notes tothe Rnandal Statements June 30. I99B

Note 10. Capital Leases and Installment Purchases (continued)
Proprietary Fund Types

Geo. L. Smith n
Georgia World Congress Center Authority
Fiscal Year Ended June 30 1999 2000 2001 2002 2003 2004 and Subsequent
Total Capital Lease and Installment Purchase Payments Less: Interest Present Value of Capital Leases and Installment Purchases

s 312,464
309,657 154,827
$ 776,948

Installment Purchases Capital Leases

s 670,098

Note 11. Long-Term Debt
Primary Government
General Obligation Bonds. The State issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. General obligation bonds have been issued for both general State and proprietary activities, to provide loans to local governments for water and sewer systems, to construct educational facilities for local school systems, and to refund general obligation bonds.
General obligation bonds are direct obligations and pledge the full faith and credit of the State. General obligation bonds currently outstanding are as follows:

General Government
General Government Refunding

2.00% 9.00%
2.40%6.75%

$ 3,836,880,000 668,895,000
$ 4.505,775,000

A-65

- - - - - - - - - State of Geot'91a - - - - - - - - -
Notes tothe Flf\ancial Statements June 30, I99B
Note 11. Long-Term Debt (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:

Fiscal Year Ended June 30 1999 2000 2001 2002 2003
Thereafter

Principal $ 303,500,000
305,920,000 248,290,000 256,455,000 257,215,000 3,134,395 000 $ 4.505,775,000

Interest $ 263,587,830
244,851,877 227,637,800 212,068,870 196,730,950 994.420,584 $ 2,139,297911

Total $ 567,087,830
550,771,877 475,927,800 468,523,870 453,945,950 4,128,815.584 $ 6,645,072,911

General State Bonds. All General State Bonds of the State of Georgia are past due, but have not been presented for redemption. This obligation will be liquidated if and when the past due outstanding bonds and coupons are presented. Unredeemed General State Bonds at June 30, 1998, were $15,505 with accumulated interest of$11,475.

Revenue Bonds. Revenue bonds have been issued by the organizational units listed below. Income derived from acquired or constructed assets is pledged to fund the debt service requirements of these issues. The College and University fund is responsible for repayment of Georgia Military College bonds. Revenue bonds outstanding at June 30, 1998, are as follows:

Purpose
Georgia Military College Library Building

Interest Rates 3.00%

Amount

$

7,000

A-66

- - - - - - - - - State of Georgia---------
Notes to the Rl1al1dal Statements June 3D, I99B
Note 11. Long-Term Debt (continued)
Revenue bond debt service requirements to maturity are as follows:

Fiscal Year Ended June 30 1999 2000 2001 2002 2003 Thereafter

Georgia Military College

Principal

Interest

$

7,000

$

210

$

7,000

$

210

Total

$

7,210

0

0

0

0

0

$ 7,210

At June 30, 1998, $110,675,000 of outstanding general obligation bonds (including prior years' refundings), and $2,378,000 of outstanding Georgia Education Authority (University) revenue bonds (including prior years' defeasances) are considered defeased.

Changes in Long-Term Liabilities, During the year ended June 30, 1998, the following changes occurred in liabilities reported in the general long-term debt account group:

Compensated Absences Claims and Judgements Capital Leases and Installment Purchases General Obligation Debt General State Bond Debt Long-Term Notes

Balance July 1 203,717,363 697,979 5,319,332
4,635,930,000 15,505
2893501 4848573680

Additions
1,128,801 256,875,000
258003801

Reductions
(2,103,747) (387,030,000)
(46812) (389 180 559)

Eamedand Utilized lNet)
8,359,450
8359450

Balance June 30 212,076,813 697,979 4,344,386
4,505,775,000 15,505
2846,689 4725756372

A-67

- - - - - - - - - State of GeorfJia - - - - - - - - -
Notes to the FlI1ancial statements Jinc 30. 1993

Note 11. Long-Term Debt (continued)
Significant Discretely Presented Component Units
Governmental Fund Types
Defeased Debt. At June 30, 1998, $735,000 of outstanding Georgia Education Authority (Schools) revenue bonds (including prior year's defeasances) are considered defeased.
Proprietary Fund Types
Long-Term Operating Debt. Long-term operating debt has been issued by the Georgia Student Finance Authority. This debt consists of a fmancing agreement with SunTrust Bank with an outstanding balance at June 30, 1998, of $30,284,767.

Purpose
Georgia Student Finance Authority

Interest Rates
Varies Based on Market Rates

Amount $ 30.284.767

Long-term operating debt requirements to maturity are as follows:

Fiscal Year Ended June 30

Georgia Student Finance Authority

Principal

Interest

Total

1999

$ 30.284,767 $ .

$ 30,284,767

Interest varies based on market rates and therefore is not available for this schedule.

Revenue Bonds. Revenue bonds have been issued by the significant discretely presented component units listed below. Income derived from acquired or constructed assets is pledged to fund the debt service requirements of these issues. Significant discretely presented component unit revenue bonds outstanding, net ofunamortized discounts, of $779,660,753 and $194,779,336 at the Georgia Housing and Finance Authority and the Geo. L. Smith II Georgia World Congress Center Authority, respectively, at June 30, 1998, are as follows:

A-68

- - - - - - - - - State of GeorSla - - - - - - - - -
Notes to the Rnandal Statements
June 30, 1996
Note 11. Long-Term Debt (continued)

Purpose Georgia Housing and Finance Authority
- Financing the Purchase of Single Family Mortgage Loans for Eligible Persons and Families of Low and Moderate Income within the State of Georgia - Financing the Purchase of Hospital Equipment and Facilities by Eligible Hospitals
Geo. L. Smith II Georgia World Congress Center Authority - Construction of the Georgia Dome Stadium
Revenue bond debt service requirements to maturity are as follows:

Interest Rates 2.95% - 9.50% 6.850% -7.875%

Amount

$ 775,802,753

$

3,858,000

$ 194,779,336

Georgia Housing and Finance Authority

Fiscal Year Ended June 30

Principal

Interest

Total

1999

$

7,880,000.

$ 46,009,000

$

53,889,000

2000

9,950,000

45,389,000

55,339,000

2001

12,900,000

44,832,000

57,732,000

2002

15,515,000

44,106,000

59,621,000

2003

17,015,000

43,245,000

60,260,000

Thereafter

790,038,000

560,235,000

1,350,273,000

Unamortized Discount

(552,650)

552,650

Future Accretion of Capital Appreciation Bonds

<76,942,597)

76,942,597

$ 775,802753

$ 861311.247

$ 1.637,114,000

Various series of bonds issued under Resolution 1 and 3 include capital appreciation bonds which require no payments of principal or interest until maturity. Capital appreciation bonds accrete to their maturity values at effective yields ranging from 7,10% to 11.25%.

A-69

- - - - - - - - - State of GeorfJia---------
Notes to the Flf\ancial Statements
June 30, 199B

Note 11. Long-Term Debt (continued)
In addition to the above listed revenue bonds, the Georgia Housing and Finance Authority maintains revenue bonds originally issued by the Hospital Financing Authority. The balance at June 30, 1998, was $3,858,000. The bonds bear interest at an adjustable daily rate with interest payable on

a monthly basis. The interest rate basis is subject to change, at the election of the Authority, to a weekly, monthly, semiannual, or fixed rate. The bond indenture limits the interest rate on the bonds to 20% per annum. The bonds are limited obligations of the Authority, repayable solely from revenues provided from loans and other specific property pledged under the bond debenture, and are not an obligation ofthe State of Georgia or any political subdivision thereof.

Geo. L. Smith II Georgia World Congress Center Authority

Fiscal Year Ended June 30 1999 2000 2001 2002 2003 Thereafter Unamortized Discount

Principal

$

3,150,000

3,485,000

3,745,000

4,025,000

4,330,000

176,515,000

(470,664)

$

194,779,336

Interest

$

15,042,440

14,813,449

14,559,398

14,281,550

13,977,522

153,387,804

470.664

$

226.532.827

Total

$

18,192,440

18,298,449

18,304,398

18,306,550

18,307,522

329,902,804

$ 421.312,163

Defeased Debt. At June 30, 1998, $1,380,000 of outstanding Georgia Highway Authority revenue bonds (including prior years' defeasances) are considered defeased.
Note 12. Interfund Balances
Interfund assets and liabilities at June 30, 1998, consist of the following:
Interfund Receivables:

Receivable Fund Capital Projects Funds

Payable Fund
Proprietary Fund Types - Discretely Presented Component Units

Interfund Receivable
$ 3.300.425

Interfund Payable
$

Georgia State Financing and Investment Commission (Capital Projects Funds) interfund receivables from Stone Mountain Memorial Association (proprietary Fund Types - Discretely Presented Component Units) do not reconcile due to the difference in fiscal reporting periods (See Note I).

A-70

if:
~

State of GeoPBia- - - - - - - - -

Notes to the Finandal Statements June 30, 1990

Note 12. Interfund Balances (continued)
Due From/To Other Funds:

Receivable Fund General Fund
Internal Service Funds Internal Service Funds Internal Service Funds Internal Service Funds Internal Service Funds
Internal Service Funds
Internal Service Funds
Proprietary Fund Types - Discretely Presented Component Units
Proprietary Fund Types - Discretely Presented Component Units
Total

Payable Fund Proprietary Fund Types - Discretely
Presented Component Units General Fund Special Revenue Fund College and University Funds Pension Trust Funds Governmental Fund Types - Discretely
Presented Component Units Proprietary Fund Types - Discretely
Presented Component Units Fiduciary Fund Types - Discretely
Presented Component Units
Internal Service Funds
General Fund

Due From
$ 135,316 15,038,805 93,490 2,400,826 658,673
290,951
88,933
39,946
143
2,204.421 $ 20,951.504

Due To
$ 135,316 15,038,805 93,490 2,400,826 658,673
290,951
88,933
39,946
143
2,204421 $ 20,951.504

Advances From/To Other Funds:

Receivable Fund General Fund General Fund
Capital Projects Funds

Payable Fund
Agency Funds
Proprietary Fund Types - Discretely Presented Component Units
Proprietary Fund Types - Discretely Presented Component Units

Advance To $ 6,925

Advance From

$

6,925

107,500

107,500

15,209,275

Total

$ 15,323,700

$ 114,425

Advances made from Georgia State Financing and Investment Commission (Capital Projects Funds) to Stone Mountain Memorial Association (proprietary Fund Types - Discretely Presented Component Units) do not reconcile due to the difference in fiscal reporting periods (See Note I),

A-71

State of GeorBia - - - - - - - - -
Notes to the Financial Statements June 30, 1996
Note 13. Contributed Capital
During the year, contributed capital increased (decreased) by the following amounts:
Primary Government

Source
General Obligation Bond Proceeds/ Fixed Assets Contributed by Primary Government
General Obligation Bond Proceeds/ Capital Outlay Returned to
Primary Government
Net Additions
Contributed Capital July 1, 1997
Contributed Capital June 30, 1998

Internal Service Funds

Department of Administrative
Services

Georgia Building Authority (Regular)

Georgia Correctional Industries Administration

Total

$

$

165,856 $

$ 165,856

$

$

165,856 $

53.384,666

219,893,688

$ 53.384,666 $ 220,059,544 $

(82,000)

(82,000)

(82,000) $

83,856

1.227,948 274.506.302

1.145,948 $ 274.590,158

Significant Discretely Presented Component Units
Proprietary Fund Types

Source General Obligation Bond Proceeds/Capital Outlay Contributed by Primary Government Contributions from Federal Government Contributionsfrom Other Sources Capital Contributions Written Off General Obligation Bond Proceeds/Capital Outlay Returned to Primary Government Net Additions Contributed Capital July I, 1997 Contributed Capital June 30, 1998

Georgia Environmental
Facilities Authority
676,875
35,688,800

Georgia Ports
Authority
36,260,000

36,365,675 490479608 526845283

(8,600,000) 111 0800001 $ 16,580,000 233116794 $ 249696794

Gee. L, Smith Georgia World Congress Center
Authority

AIl Other Component
Units
2,920,270

4,953,860

3,164

(38149471

4,953,860

(891,513)

58750000

162582392

$

63 703 860 $ 161690879

A-72

~;
L

State of GeorfJia - - - - - - - -

Notes to the Financial Statements
JlH1C 30. 199B

Note 13. Contributed Capital (continued)
Contributed Capital/Residual Equity Transfers for the fiscal year ended June 30, 1998, are as follows:

General Fund General Fund

Receiving Fund

Capital Projects Funds

Internal Service Funds
Proprietary Fund Types - Discretely Presented Component Units
Proprietary Fund Types - Discretely Presented Component Units

Proprietary Fund Types - Discretely Presented Component Units

Contributing Fund Internal Service Fund Proprietary Fund Types - Discretely
Presented Component Units Proprietary Fund Types - Discretely
Presented Component Units Capital Projects Funds
General Fund
Capital Projects Funds
Other Sources

Received

$

82,000

Contributed

$

82,000

14,894,947

14,894,947

18,509,700 165,856

165,856

1,895,883

1,895,883

37,961,262 $ 73,509,648 $

37,961,262 54,999,948

40,645,824 $ II4.I55.472 $

54999,948

Residual equity transfers received by Georgia State Financing and Investment commission (Capital Projects Funds) from Stone Mountain Memorial Association (Proprietary Fund Types - Discretely Presented Component Units) do not reconcile due to the difference in fiscal reporting periods (See Note I).

Note 14. Contingencies

Primary Government

Amounts received or receivable from grantor agencies are subject to audit and review by grantor agencies, principally the Federal government. This could result in a request for reimbursement by the grantor agency for any expenditures which are disallowed under grant terms. The State believes that such disallowances, if any, will be immaterial to its overall fmancial position.

The State is a defendant in various legal proceedings

pertaining to matters incidental to the performance of

routine governmental operations. The ultimate disposition

of these proceedings is not presently determinable.

However, the ultimate disposition of these proceedings

-- '

would not have a material adverse effect on the fmancial

condition of the State, with the following exceptions:

Two suits for refund have been filed against the State of Georgia by out-of-state producers of alcoholic beverages. The first suit seeks $96,000,000 in refunds of alcohol import taxes, plus interest, imposed under OCGA Section 34-60. These claims constitute 99% of all such taxes paid during the three years preceding these claims. In addition, the claimants have filed a second suit for refund of an additional $23,000,000, plus interest, for later time periods. The trial court has granted the State's motion for summary judgment, and 12 of the 23 claimants have appealed to the Georgia Supreme Court. The total principal amount of the claims for refund by the 12 plaintiffs who did appeal now appears to be approximately $42,000,000. The total principal dollar amount of the claims for refund by the 11 plaintiffs who did not appeal, which claims appear to be

A-73

- - - - - - - - - State of GeorfJia - - - - - - - - -
Notes to the Finandal Statements
June 30. 199B

Note 14. Contingencies (continued)
conclusively resolved in favor of the State by virtue of the trial court's judgement, now appears to be approximately $54,000,000.
A suit was filed March 13, 1998, by DeKalb County against the State of Georgia, the Department of Revenue, Zell Miller (in his official capacity as Governor), and T. Jerry Jackson (in his official capacity as Revenue Commissioner) (collectively, "the State") in connection with the State's collection and distribution of a special local option sales tax in effect in DeKalb County since July 1997. DeKalb's complaint, as amended, seeks an accounting, mandamus, injunctive relief, declaratory judgment, unjust enrichment, bailment, inverse condemnation, and a determination that OCGA Section 48-8-67 is unconstitutional. The complaint, as amended, seeks damages of$27,700,000. Subsequently, DeKalb County has re-estimated its alleged damages as $12,000,000. DeKalb County's action was dismissed by the trial court, and this dismissal was affirmed in part and reversed in part by the Georgia Supreme Court in an order dated February 22, 1999. The Supreme Court's decision remands to the trial court the accounting claim on the question of whether the Department of Revenue made reasonable efforts to identify county tax proceeds that have been determined by the Department to be unidentifiable to any county. The defendants may seek reconsideration of this issue before the case is remitted to the trial court.
A suit was filed against the Department of Administrative Services and the Department of Human Resources seeking damages of approximately $8,500,000 under breach of contract and promissory estoppel theories. The case arises out of a notice of award in connection with the federallyfunded WIC Infant Formula Rebate Program. The award was subsequently cancelled and rebidding ordered because of conflicting information that had created a contradiction in the initial bidding specifications. Discovery is ongoing in this matter. At present, the State intends to file a motion for summary judgment at the close of discovery.
A fmancial institution has filed suit for refund of sales taxes based upon alleged bad debts on installment sales contracts purchased from motor vehicle dealers. The suit seeks a refund of approximately $300,000. The total amount of all similar pending administrative claims for refund (for the years 1991 - 1998) is approximately $24,000,000. This case is in the discovery phase.
A contract claim has been made in the amount of $6,600,000 against the Board of Regents of the University System of Georgia in connection with construction at the

University of Georgia Biocontainment Research Center. The claimant bases its claim !1pon the encountering of extensive subsurface rock, delays allegedly caused by the Board of Regents (as owner) and redesign overhead costs and time extensions. The total contract cost is approximately $18,270,000. The Board of Regents believes the claim to be grossly overstated and anticipates resolving any legitimate portions ofthe claim for a substantially lesser sum than that claimed.
A contract claim has been made in the amount of $9,850,000 against the Board of Regents of the University System of Georgia in connection with construction at the Children's Medical Center, Augusta, Georgia. The claimant bases the claim upon delays allegedly caused by the Board of Regents (as owner) and redesign overhead costs and time extensions. A subcontractor has filed suit for $5,000,000 on its claim against the Construction Manager, which amount is a part of the Construction Manager's contract claim against the Board of Regents. The total contract cost is approximately $44,000,000. The Board ofRegents believes that the claim is grossly overstated and anticipates resolving any legitimate portions ofthe claim for a substantially lesser sum than that claimed.
Significant Discretely Presented Component Units
Proprietary Fund Types
The Federal Government, through the Guaranteed Student Loan Programs ofthe U.S. Department of Education, fully reinsured loans guaranteed through September 30, 1993, until the State's rate of annual losses (defaults) exceeded five percent (5%). In the event of future adverse loss experience, the State could be liable for up to (I) twenty percent (20%) of the outstanding balance of loans in repayment status at the beginning of each year which were disbursed prior to October I, 1993, and (2) twenty-two percent (22%) of the outstanding balance of loans in repayment status at the beginning of each year which were disbursed on or after October I, 1993.
In a civil action case filed August 26, 1996, the plaintiffs seek a court order declaring that two games sponsored by the Georgia Lottery Corporation, "Quick Cash" and "Cash Three," are unconstitutional and enjoining the lottery from further offering of these games. Plaintiffs seek the return of all monies played on these games during a specified period, approximately $1,703,462,781. On an interlocutory appeal, the Georgia Court of Appeals ruled that the Lottery Corporation does not have sovereign immunity but ruled for the Corporation on the merits. The plaintiffs petitioned for

'-
1__ -
'--
,~-

A-74

- - - - - - - - State of GeorfJia - - - - - - - -

Notes to the FlI1ancial Statements

~,

June 30. 1993

ll_~

Note 14. Contingencies (continued)
a writ of certiorari to the Supreme Court of Georgia, and the Supreme Court denied the petition. The remittitur of the Court of Appeals has been returned to the trial court.
Note 15. Subsequent Events
Primary Government
General Obligation Bonds Issued
The State issued General Obligation Bonds in the amount of $326,350,000 on July I, 1998 (Series 1998A and 1998B); in the amount of $220,645,000 on September I, 1998 (Series 1998C); and in the amount of $172,610,000 on October I, 1998 (Series 1998D).
Proceeds from these bonds will be used for the purpose of financing various capital outlay projects.
Note 16. Deferred Compensation Plan
The State of Georgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion of their salary until future years. This plan is administered by a third party. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency.

Georgia subject only to the claims of the State's general creditors. Participants' rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. In the equity funds, the market value may be either greater or less than the participants' contributions. It is the opinion of the Attorney General that the State has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. It is unlikely that the State will use the assets of the plan to satisfy the claims of general creditors in the future.
Market values, which approximate cost, of investments at June 30, 1998, by plan type are as follows:

Guaranteed Investment Contracts Index Trust 500 Portfolio
The Vanguard Group of Investment Companies Magellan Fund
Fidelity InstitutionalRetirementServicesCompany Over-The-Counter Portfolio Fidelity Institutional Retirement Services Company Prime Portfolio The Vanguard Group oflnvestment Companies United International Growth Fund
Waddell and Reed Asset Management Company Wellesley Income Fund
The Vanguard Group of Investment Companies WindsnrJI
The Vanguard Group of Investment Companies
ParticipantsAccounts Reservefor Administrationof Plan

$ 135,028,960 67,760,617 72,827,465 27,162,014 3,444,203 9,320,620 29,525,508 49553,261
$ 394 622 648 $ 388,104,810
6517 838 $ 394 622 648

All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of

A-75

State of GeorfJ1a - - - - - - - -
Notes to the RnBncial Statemmts
JUlIe 30. 1993

Note 17. Retirement Systems
Primary Government
Georgia Defined Contribution Plan
Plan Description
Organization and Purpose The Georgia Defined Contribution Plan ("GDCP") is a single-employer, defined contribution plan established by the Georgia General Assembly in July 1993 for the purpose ofproviding retirement allowances for State employees who are not members of a public retirement or pension system. GDCP is administered by the Employees' Retirement System (ERS) Board of Trustees.
Membership As of June 30, 1998, participation in GDCP is as follows:

Active Plan Members
Terminated Employees Entitled to Benefits but not yet Receiving Benefits

61,103

Benefits A member may retire and elect to receive periodic payments after attainment of age sixty-five (65). The payments will be based upon mortality tables and interest assumptions to be adopted by the Board. If a member has less than $3,500 credit to his/her account, the Board has the option of requiring a lump sum distributionto the member. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary.
Contributions Members are required to contribute seven and one-half percent (7.5%) of their gross salary. There are no employer contributions. Earnings will be credited to each member's account as adopted by the Board. Upon termination of employment, the amount of the member's account is refundable upon request by the member.

District Attorneys' Retirement Fund
Plan Description
Organization and Purpose The District Attorneys' Retirement Fund ("DARF") is a single-employer, defmed benefit pension plan established by the Georgia General Assembly in 1949 for the purpose of providing retirement benefits to the district attorneys of the State of Georgia. DARF is directed by its own Board of Trustees. The Boards of Trustees for ERS and DARF entered into a contract for ERS to administer the plan effective July I, 1995.
Membership As of June 30, 1998, DARF had twelve (12) retirees and beneficiaries currently receiving benefits.
Benefits Persons appointed as district attorney emeritus shall receive an annual benefit of$15,000 or one-half of the State salary received by such person as a district attorney for the calendar year immediately prior to the person's retirement, whichever is greater.
Contributions and Vesting Member contributions were five percent (5.0%) of their salary plus an additional two and one-half percent (2.5%) for the spousal coverage benefit if elected. The State paid member contributions of five percent (5.0%) of the member's annual salary. Additional employer contributions are not actuarially determined but are provided on an asneeded basis to fund current benefits.
District Attorneys' Retirement System
Plan Description
Organization and Purpose The District Attorneys' Retirement System (DARS) is a single-employer, defmed benefit pension plan established by the Georgia General Assembly in 1978 for the purpose of providing retirement benefits to the district attorneys of the State of Georgia. OARS is directed by its own Board of Trustees. The Boards of Trustees for ERS and OARS entered into a contract for ERS to administer the plan effective July 1, 1995. Any person who on June 30, 1998, was an active, inactive or retired member or beneficiary of OARS shall be transferred to the newly created Georgia Judicial Retirement System in the same status effective July 1, 1998.

A-76

- - - - - - - - State of Georaw-------
Notes to the Financial Statements
June 30, 199~

Note 17. Retirement Systems (continued)
Membership As of June 30, 1998, participation in DARS is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

9

Active Plan Members

54

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Benefits The normal retirement for DARS is age sixty (60) with ten (10) years of creditable service with a benefit of fOUT percent (4.0%) of the member's average annual compensation for each year of creditable service. If service exceeds sixteen (16) years, the benefit is four percent (4.0%) for each year of creditable service plus one percent (1.0%) for each year served after sixteen (16), notto exceed twenty fOUT (24) years (72%). "Average annual compensation" is the highest average of two (2) consecutive years of creditable service, except no increase during such period in excess of five percent (5.0%) may be used. Death, disability, and spousal benefits are also available. Early retirement benefits are not available.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of their salary plus an additional two and one-half percent (2.5%) for the spousal coverage benefit if elected. The State pays member contributions of four and threefourths percent (4.75%) of the member's annual salary. Employer contributions are actuarially determined and approved and certified by the Board.
Members become vested after ten (10) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if a member later holds office as a district attorney, the member shall be reinstated as if never before a member and may re-establish prior service by repaying the amount withdrawn, plus interest.

Employees' Retirement System of Georgia
Plan Description
Organization and Purpose Employees' Retirement System of Georgia ("ERS") is a single-employer, defmed benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees and has the powers and privileges of a corporation.
On November 20, 1997,the Board created the Supplemental Retirement Benefit Plan ("SRBP") of ERS. SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code ("IRC") as a portion of ERS. The purpose of the SRBP is to provide retirement benefits to employees covered by ERS whose benefits are otherwise limited by IRC Section 415. Beginning January 1, 1998, all members and retired former members in ERS are eligible to participate in the SRBP whenever their benefits under ERS exceed the IRC Section 415 imposed limitation on benefits.
Membership As of June 30, 1998, participation in ERS is as follows:

Retirees and Beneficiaries Currently Receiving Benefits
Active Plan Members
Terminated Employees Entitled to Benefits but not yet Receiving Benefits

22,011 71,161

As of June 30, 1998, one hundred sixty-four (164) members were eligible to participate in the SRBP of ERS.
Benefits The benefit structure ofERS was significantly modified on July 1, 1982. Unless the employee elects otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provision in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.

A-77

- - - - - - - - State of Georgia - - - - - - - -
Notes to the FD1ancial Statements
June 30. 199B

Note 17. Retirement Systems (continued)

Legislative Retirement System
Plan Description

Under both the old and new plans, a member may retire and receive normal retirement benefits after completion of ten (10) years creditable service and attainment of age sixty (60). Additionally, there are certain provisions allowing for retirement after twenty-five (25) years of service regardless of age.
Retirement benefits paid to members are based upon the monthly average of the member's highest twenty-four (24) consecutive calendar quarters multiplied by the number of years of creditable service. Post - retirement cost of -living adjustments are also made to members' benefits.
The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.

Organization and Purpose Legislative Retirement System ("LRS") is a singleemployer, defmed benefit plan established by the Georgia General Assembly in 1979 for the purpose of providing retirement allowances for all members of the Georgia General Assembly. LRS is administered by the ERS Board of Trustees.
Membership As of June 30, .1998, participation in LRS is as follows:

Retirees and Beneficiaries

Currently Receiving Benefits

178

Active Plan Members

206

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Contributions and Vesting Member contributions under the old plan are four percent (4.0%) of annual compensation up to $4,200 plus six percent (6.0%) of annual compensation in excess of $4,200. Under the old plan, the State pays member contributions in excess of one and one-fourth percent (1.25%) of annual compensation. Under the old plan, these State contributions are included in the members' accounts for refund purposes. Member contributions under the new plan are one and onefourth percent (1.25%) of annual compensation. The State is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation.
Under the SRBP, employer contributions of $626,000 and retirement payments of $480,000 are included in the Statement of Changes in Plan Net Assets for the year ended June 30, 1998. Cash of $30,000 and employer receivable of $116,000 are included in the Statement of Plan Net Assets for the year ended June 30, 1998.
Members become vested after ten (10) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.
The employer contributions are projected to liquidate the unfunded actuarial accrued liability within eight (8) years based upon the actuarial valuation at June 30, 1997.

Benefits A member's normal retirement is after eight (8) years of creditable service and attainment of age sixty-five (65) or eight (8) years of membership service (4 legislative terms) and attainment of age sixty-two (62). A member may retire early and elect to receive a monthly retirement benefit after completion of eight (8) years of membership service and attainment of age sixty (60); however, the retirement benefit is reduced by five percent (5.0%) for each year the member is under age sixty-two (62).
Upon retirement, the member will receive a monthly service retirement allowance of $28 multiplied by the number of years of creditable service reduced by age reduction factors, if applicable. Death, disability, and spousal benefits are also available through the plan.
Contributions and Vesting Member contributions are eight and one-half percent (8.5%) of annual salary. The State pays member contributions in excess of four percent (4.0%) of annual compensation. Employer contributions are actuarially determined and approved and certified by the Board.
Members become vested after eight (8) years of creditable service. Upon termination of" employment, member

A-78

- - - - - - - - - State of GeorfJia - - - - - - - - -
Notes to the Rnandal Statements
June 30, 1996

Note 17. Retirement Systems (continued)
contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws hislher member contributions, the member forfeits all rights to retirement benefits.
Based on the June 30, 1997, actuarial valuation ofLRS (the latest actuarial valuation; present Board policy requires a biennial valuation), LRS does not have an unfunded accrued liability.
Superior Court Judges Retirement Fund
Plan Description
Organization and Purpose The Superior Court Judges Retirement Fund ("SCJRF") is a single-employer, defmed benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges ofthe State of Georgia. SCJRF is directed by its own Board of Trustees. The Boards of Trustees for ERS and SCJRF entered into a contract for ERS to administer the Plan effective July 1, 1995.
Membership As ofJune 30, 1998, participation in SCJRF is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

33

Active Plan Members

3

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Contributions and Vesting Member contributions are five percent (5.0%) oftheir salary plus an additional two and one half percent (2.5%) for the spousal coverage benefit if elected. The State pays member contributions offive percent (5.0%) ofthe member's annual salary. Additional employer contributions are not actuarially determined but are provided on an as-needed basis to fund current benefits.
Superior Court Judges Retirement System
Plan Description
Organization and Purpose The Superior Court Judges Retirement System ("SCJRS") is a single-employer, defmed benefit pension plan established by the Georgia General Assembly in 1976 for the purpose of providing retirement benefits to the superior court judges of the State of Georgia. SCJRS is directed by its own Board of Trustees. The Boards of Trustees for ERS and SCJRS entered into a contract for ERS to administer the plan effective July 1, 1995. Any person who on June 30, 1998, was an active, inactive or retired member or beneficiary of SCJRS shall be transferred to the newly created Georgia Judicial Retirement System in the same status effective July 1, 1998.
Membership As of June 30, 1998, participation in SCJRS is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

57

Active Plan Members

154

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Benefits The normal retirement for SCJRF is age sixty-eight (68) with nineteen (19) years of creditable service with a benefit of two-thirds the salary paid to superior court judges. A member may also retire at age sixty-five (65) with a minimum of ten (10) years of creditable service with a benefit of one-half the salary paid to superior court judges. Death, disability, and spousal benefits are also available.

Benefits The normal retirement for SCJRS is age sixty (60) with sixteen (16) years of creditable service with a benefit of two-thirds of the State salary paid to superior court judges at the time of the member's retirement, plus one percent (1.0%) for each year of creditable service over sixteen (16) up to a maximum of twenty-four (24) years. Additionally, a member may retire with reduced benefits at age sixty (60) with a minimum of ten (10) years of creditable service. A member must retire at age seventy-five (75), or at the end of

A-79

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the Rnandal Statements June 30, 199B

Note 17. Retirement Systems (continued)
the term in which the member becomes seventy-five (75), or forfeit all retirement and disability benefits. Death, disability, and spousal benefits are also available.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of their salary plus an additional two and one-half percent (2.5%) for the spousal coverage benefit or two and three-fourths percent (2.75%) for the spouse plus benefit if elected. The State pays member contributions offour and three-fourths percent (4.75%) of the member's annual salary. Employer contributions are actuarially determined and approved and certified by the Board.
Members become vested after ten (10) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if a member later holds office as a superior court judge, the member shall be reinstated as if never before a member and may re-establish prior service by repaying the amount withdrawn, plus interest, within sixty (60) days of certification of such amount.
Trial Judges and Solicitors Retirement Fund
Plan Description
Organization and Purpose Trial Judges and Solicitors Retirement Fund ("TJSRF") is a multiple-employer cost-sharing defmed benefit plan established by the Georgia General Assembly in 1968 for the purpose of providing retirement allowances for trial judges and solicitors of certain courts of Georgia, and their survivors and other beneficiaries. TJSRF is administered by the ERS Board of Trustees and three other trustees not on the ERS Board. Any person who on June 30, 1998, was an active, inactive or retired member or beneficiary of TJSRF shall be transferred to the newly created Georgia Judicial Retirement System in the same status effective July 1, 1998.
Membership As of June 30, 1998, participation in TJSRF is as follows:

Retirees and Beneficiaries

Currently Receiving Benefits

36

Active Plan Members

174

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Benefits The normal retirement for TJSRF is age sixty (60) with sixteen (16) years of creditable service; however, a member may retire at age sixty (60) with a minimum of ten (10) years of creditable service. Additionally, a member must retire at age seventy (70) or forfeit all retirement and disability benefits. Members holding office on July 1, 1980, are exempt from this provision.
Retirement benefits paid to members are computed as four percent (4.0%) of the average annual compensation multiplied by the total years of creditable service not to exceed sixteen (16) years. The average annual compensation is the average salary of a member during the two (2) consecutive years of creditable service producing the highest such average but excluding any salary increases exceeding five percent (5.0%) over the previous year during the two-year period. Death, disability and spousal benefits are also available.
Contributions and Vesting Members are required to contribute seven and one-half percent (7.5%) of their salary plus an additional two and one-half percent (2.5%) if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the Board.
Members become vested after ten (10) years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws hislher member contributions, the member forfeits all rights to retirement benefits.
Based on the June 30, 1997, actuarial valuation (the latest actuarial valuation; present Board policy requires a biennial valuation), TJSRF does not have an unfunded accrued liability.

A-80

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the Rnandal Statements June 30. I99B

Note 17. Retirement Systems (continued)
Regents Retirement Plan
Plan Description
Organization and Purpose The Regents Retirement Plan, a single-employer defmed contribution plan, is an optional retirement plan established and administered by the Board of Regents of the University System of Georgia (College and University Funds), under which it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators.
Benefits Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts.
Contributions and Vesting Member contribution requirements are established by the Board of Trustees of the Teachers Retirement System. Employer contributions are established by statute and may be amended only by the General Assembly of the State of Georgia.
A) Members' Contributions:
Members' contributions are calculated as five percent (5.0%) of the earnable compensation.
B) State ofGeorgia Contributions:
Employer contributions are calculated as seven and three-fourths percent (7.75%) of the participating 'employee's earnable compensation.
Amounts attributable to all plan contributions are fully vested and non-forfeitable.

Significant Discretely Presented Component Units
Georgia Ports Authority Retirement Plan
Plan Description
Organization and Purpose The Georgia Ports Authority Retirement Plan ("Plan") is a single-employer defmed benefit plan covering all full-time employees of the Georgia Ports Authority.
Benefits The Plan provides pension benefits that are based on years of service and compensation earned during years of employment.
Contributions and Vesting Members contribute one percent (1.0%) of their earnings each month for the first $9,000 earned during the plan year and one and one-half percent (1.5%) after earnings reach $9,000. The employer's contributions are two and onefourth percent (2.25%) of the employee's first $9,000 of annual earnings for the plan year plus three and one-fourth percent (3.25%) of the employee's annual earnings for the plan year in excess of $9,000.
Members become vested after reaching age 55 or after completing five (5) or more years of service.
Teachers Retirement System of Georgia
Plan Description
Organization and.Purpose The Teachers Retirement System of Georgia ("TRS") is a cost-sharing multiple-employer plan created in 1943 by an act ofthe Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration ofTRS.

A-81

- - - - - - - - State of GeorfJia - - - - - - - -
Notes to the Finandal Statements June 30. 1996

Note 17. Retirement Systems (continued)
On October 25, 1996, the Board created the Supplemental Retirement Benefit Plan of the Georgia Teachers ("SRBP"). SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal Revenue Code ("IRC") as a portion of TRS. The purpose ofthe SRBP is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits.
Membership All teachers in the State public schools, the University System of Georgia (except those professors and principal administrators electing to participate in an optional retirement plan), and certain other designated employees in educational-related work are eligible for membership.
As of June 30, 1998, participation in TRS is as follows:

by the number of years of creditable service up to forty (40) years. Early retirement benefits are reduced by the lesser ofone-twelfth (1/12) ofseven percent (7.0%) for each month the member is below age sixty (60), or by seven percent (7.0%) for each year or fraction thereof by which the member has less than thirty (30) years of service. It is also assumed that certain cost-of-living adjustments, based on the CPI, will be made in future years. Retirement benefits are payable monthly for life. Death, disability and spousal benefits are also available.
Contributions and Vesting TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees.
Under the SRBP, employer contributions of $83,000 and retirement payments of $82,000 were reflected in the Statement of Changes in Plan Net Assets for the year ended June 30, 1998.
Contributions required by the annual actuarial valuation are as follows:
Member

Retirees and Beneficiaries Currently Receiving Benefits
Active Plan Members
Terminated Employees Entitled to Benefits but not yet Receiving Benefits

41,420 180,417

Employer: Normal Unfunded Accrued Liability Expenses

7.75% 3.91%

As of June 30, 1998, seven (7) members were eligible to participate in the SRBP of TRS.
Benefits A member is eligible for normal service retirement after thirty (30) years of creditable service, regardless of age, or after ten (10) years of service and attainment of age sixty (60). A member is eligible for early retirement after twentyfive (25) years of creditable service.
Normal retirement (pension) benefits paid to members are equal to two percent (2.0%) ofthe average of the member's two (2) highest paid consecutive years of service multiplied

Members become fully vested after ten (10) years of service. If a member terminates with less than ten (10) years of service, no vesting of employer .contributions occurs, but the member's contributions may be refunded with interest.
The employer contributions to the unfunded accrued liability will liquidate the unfunded accrued liability over approximately eighteen (18) years on the assumption that the aggregate amount of unfunded accrued liability contribution will increase by three and one-half percent (3.5%) each year.

A-82

- - - - - - - - - State of GeorfJia - - - - - - - - -
Notes tothe Rnandal Statements
June 30, 199<5

Note 18. Nonmonetary Transactions
Primary Government
The State of Georgia received donated goods for its use and for distribution to other qualifying organizations outside

the State reporting entity under the following programs:

Program Agriculture, U. S. Department of
Food Distribution Program Temporary Emergency Food Assistance Program
Health and Human Services, U.S. Department of Childhood Immunization Grant
mv Prevention Activities - Health Department Based
Preventive Health and Health Services Block Grant
Preventive Health Services - Sexually Transmitted Disease Control Grants
Project Grants and Cooperative Agreements for Tuberculosis Control Programs

Value of Inventory Received

Value of Inventory Reported at June 30, 1998

$

27,544,161 $

$

4,323,951 $

154,808 2,093,495

$

149,853 $

$

34,000 $

$

408,986 $

$'

1,085,100 $

$

145,112 $

The value of donated commodities received and distributed is not reported as revenues and expenses on the combined statement of revenues, expenditures and changes in fund balances. Information is not available to determine the items used within the State and the items distributed to (or held for) other qualifying organizations outside the State reporting entity.
In addition, the Georgia Department of Administrative Services operates the Donation of Federal Surplus Personal Property program for the purpose of distributing surplus properties made available by the General Services Administration to eligible institutions, organizations and agencies. The value of surplus property received and distributed is not reported as revenues and expenses on the combined statement of revenues, expenditures and changes in fund balances, and the inventory on hand at June 30, 1998, is not reported on the combined balance

sheet. The changes in Federal surplus personal property inventory during the fiscal year ended June 30, 1998, were as follows:

Balance July 1, 1997 Additions
Property Received
Deductions Property Donated and Other Distributions
Balance June 30, 1998

$ 9,923,202 12,878908
$ 22,802,110
13,043.580 $ 9.758.530

A-83

----------..;...-- State of GeorSla - - - - - - - - - -
Notes to the Rnancial Statements June 30. 1990

Note 18. Nonmonetary Transactions (continued)
The Federal government provides food stamps to low-income households. The amount of food stamps a household receives depends on the household's size and financial circumstances. The Georgia Department of Human Resources is responsible for determining eligibility for participationin the food stamp program within the State. During the year under review, the total value offood stamps distributed as approved by the Department was $454,601,632.
Significant Discretely Presented Component Units
Governmental Fund Types
Donated support of volunteer services and other sources totaling $566,543 was provided to the Georgia Public Telecommunications Commission during the year ended June 30, 1998. The value of these services and other sources are not reported as revenue on the Combining Statementof Revenues, Expenditures and Changes in Fund Balances.
Note 19..Postemployment Benefits
In addition to the pension benefits described in Note 17, the State of Georgia provides postretirement health care benefits through the State Health Benefit Plan to retirees pursuant to Title 45, Chapter 18 of the OCGA. An individual eligible for these benefits must have been a full time employee at the time of retirement of either the State of Georgia or a county social service agency and must be receiving monthly retirement benefits from either the Employees' Retirement System of Georgia or a county employees' retirement system. The State Health Benefit Plan is a public entity risk pool funded by employee and employer contributions. Employees and retirees subject to the Plan contribute amounts determined by the State Personnel Board for various health insurance plans. The various agencies of the State contribute to the health insurance fund based upon amounts recommended by the State Personnel Board and set forth in the Appropriations Act. The State Health Benefit Plan is funded on a "pay-as-you-go" basis. Expenses of the Plan include provisions for incurred but not reported claims. As of June

30, 1998, there were 53,055 employees who had retired and were receiving postretirement health care benefits through the State Health Benefit Plan. For the fiscal year ended June 30, 1998, the State recognized expenditures of $185,695,559, which was net of retiree contributions of $46,382,185.
Pursuant to the general powers conferred by OCGA Section 20-3-31, the Board of Regents of the University System of Georgia (college and university funds) has established group health and life insurance programs for regular employees of the University System. It is the policy of the Board of Regents to permit employees of the University System eligible for retirement or that become permanently and totally disabled to continue as members of the group health and life insurance programs. Employees who are eligible for retirement or disability under the criteria established by the Teachers Retirement System and who have at least ten years of service with the University System are eligible for these postemployment health and life insurance benefits. The University System pays the employer portion for group insurance for affected individuals. For the fiscal year ended June 30, 1998, the University System recognized expenditures of $18,526,266, which was net of participant contributions of $4,960,723.
Note 20. Fund Deficits
The following organizations had deficit balances at June 30, 1998.
Primary Government
Internal Service Funds
Hazard and Insurance Reserve Fund - At June 30, 1998,the Fund had an unreserved retained earnings deficit of $601,888.
Liability Self-Insurance Reserve Fund - At June 30, 1998, the Fund had an unreserved retained earnings deficit of $5,894,056.
Unemployment Compensation Fund - At June 30, 1998, the Fund had an unreserved retained earnings deficit of $1,509,313.
Workers' Compensation Fund - At June 30, 1998, the Fund had an unreserved retained earnings deficit of $68,774,678.

A-84

- - - - - - - - - State of GeorBla - - - - - - - - -
Notes tothe Financial Statements
June 30, I99B

Note 20. Fund Deficits (continued)
Significant Discretely Presented Component Units
Governmental Fund Types
Georgia Public Telecommunications Commission - At June 30, 1998, the Commission had an unreserved, undesignated fund balance deficit of $4,340, 130.
Proprietary Fund Types
Lake Lanier Islands Development Authority - At June 30, 1998, the Authority had an unreserved retained earnings deficit of$19,196,141.

North Georgia Mountains Authority - At June 30, 1998, the Authority had an unreserved retained earnings deficit of $1,570,931.
Note 21. Major Discretely Presented Component Unit Condensed Financial Statements
The condensed financial statements of the major discretely presented component units of the State of Georgia reporting entity are presented below. "Major" component units, for purposes of this presentation, have been determined by giving consideration to each component units' significance relative to the other component units and the nature and . significance of its relationship to the primary government. Condensed financial statements for all nonmajor discretely presented component units are presented in the aggregate.

A-85

(This page intmtionallv left blanR)

r:
L

State of GeorfJia - - - - - - - -

Notes to the RI1ar\cial Statements June 30, 199B

L~ Note 21. Major Discretely Presented Component Unit Condensed Financial Statements (continued)

ASSETS AND OTHER DEBITS Other Assets Property, Plant and Equipment (Net) Amount to be Provided for Retirement of General Long-Term Debt
Total Assets and Other Debits
LIABILITIES Due to Primary Government Other Liabilities Bonds and Other Long-Term Liabilities Total Liabilities
EQUITY AND OTHER CREDITS Investment in Fixed Assets Fund Balances
Unreserved Total Equity and Other Credits
Total Liabilities, Equity and Other Credits

Governmental Fund Types

Georgia

Education

Georgia Public

Authority

Telecommunica-

(Schools)

tions Commission

Total

s

568,842 $

s 5,219,408

73,906,597

6,069,631
s ==~5;.;6.;;,8';,;;,84,;;;2;", s ==~~=:8=5;,1.9;5;,.6.36.. s

5,788,250 73,906,597
6,069,631
85,764,478

s

s

328,877 s

328,877

4,990,102

4,990,102

6,069,631

6,069,631

s

s o $ _ _..1.:.1..:,.!3:..8:..8::.,:.6::.1.:.0.:::...

11,388,610

$

$

568,842
$ -_---.::..:5..6:8:=,84=2-- s
s 568,842

s 73,906,597
(99,571)
73,807,026 s
s 85,195,636

73,906,597
469,271 74,375,868
85,764,478

REVENUES
EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES Operating Transfers from Primary Government EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES FUND BALANCES, JULY 1 Adjustments
Inclusion of Foundation for Public Broadcasting in Georgia, Inc. FUND BALANCES, JUNE 30

s $--_....::.::2.9~,:6:5.5.. $-----~0 s

s 15,481,330
33,033,963 $

15,510,985 33,033,963

$

29,655 s

(17,552,633) s

(17,522,978)

16,326,489

16,326,489

$

29,655 $

(1,226,144) $

(1,196,489)

539,187

147,144

686,331

979,429

979,429

$

568,842 $ ===~,;;;;,(9,9;,,5,7;1s). s====46=9,=271=

A-87

State of GeorBla
Notes to the Flnandal statements
June 30, 199B

Note 21. Major Discretely Presented Component Unit Condensed Financial Statements (continued)

Proprietary Fund Types

ASSETS Due from Primary Government Other Assets Restricted Assets Property, Plant and Equipment (Net)
Total Assets
LIABILITIES Due to Primary Government Other Liabilities Bonds and Other Long-Term Liabilities Total Liabilities

Environmental Facilities Authority

Housing and Finance Authority

Lottery Corporation

s

s 2,204,493

s

s

776,993,205

134,284,294

41,505,930

801,473,270

309,380,000

321,635

5,840,980

2,994,000

s

s 779,519,333

s s 941,598,544

353,879,930

Ports Authority
51,531,298 1,240,269
350,010,000
402,781,567

s

s

s 1,852

16,143 s

21,600,352

79,788,010

44,034,787

88,665,393

782,092,228

297,298,000

s

s 110,265,745

861,882,090 s

341,348,930 s

50,659 11,334,802 33,109,539 44,495,000

EQUITY AND OTHER CREDITS Investment in Fixed Assets Contributed Capital Retained Earuings Reserved Unreserved Fund Balances Reserved Unreserved Total Equity and Other Credits
Total Liabilities, Equity and Other Credits

s

s 321,635

526,845,283

2,925,051 126,065,307

12,265,010 831,302
s 669,253,588 s
s s 779,519,333

s
28,726,437 48,770,096
633,268 1,586,653
s 79;716,454 s 941,598,544

s
12,531,000
12,531,000 s s 353,879,930

249,696,794 108,589,773
358,286,567 402,781,567

OPERATING REVENUES Sales and Services Operating Grants Taxes Other Total Operating Revenues

s

s

s s 6,487,484

1,676,898,000

94,075,000

19,364,313

47,972,705

s

s 19,364,313

s s 54,460,189

1,676,898,000

94,075,000

OPERATING EXPENSES Depreciation Other Total Operating Expenses
OPERATING INCOME (LOSS)

s

s

s 534,847

1,393,000 s

16,494,000

5,425,862

64,605,115

1,125,253,000

65,552,000

s

5,425,862 s

s s 65,139,962

1,126,646,000

82,046,000

s

s 13,938,451

s (10,679,773)

s 550,252,000

12,029,000

Nonoperating RevenueslExpenses (Net) Operating Transfers to/from Primary Government NET INCOME (LOSS)

8,308,325

20,580,929

20,220,000

(18,227,080)

4,624,073

s

26,870,849 s

s 9,901,156

(555,272,000)
s 15,200,000

(6,198,080)

EXCESS (DEFICIENCy) OF REVENUES OVER (UNDER) EXPENDITURES FROM GOVERNMENTAL OPERATIONS AND EXPENDABLE TRUST FUNDS

(2,317,783)

(110,501)

FUND EQUITY, JULY 1 Adjustments (Net) Current Capital Contributions (Net) Transfer of Equity from Primary Government Increase (Decrease) in Inventories
FUND EQUITY, JUNE30

615,311,497 (7,298,285) 36,365,675

71,582,858 ( 1,657,059)

287,000 (2,956,000)

347,904,647 (8,600,000) 25,180,000

s s 668,931,953

s 79,716,454

s 12,531,000

358,286,567

A-88

I~
~

- - - - - - - - State of Geol~gia - - - - - - - -

Notes to the Rnandal Statements
June 30, 199B

Student Finance Authority

Geo L. Smith II Georgia World Congress Center
Authority

All Other Discretely Presented
Proprietary Fund Types

Total

$

s

s

382,398,598

36,014,434

46,333,730

2,649,874

248,054,206

s 385,048,472 s s 330,402,370

71 $ 245,296,933
17,345,673 208,798,746

2,204,564 1,668,024,692 1,175,772,942
818,669,441

471,441,423 s 3,664,671,639

$

135,316 s

19,782 $

2,184,570

31,992,478

335,450,022

211,341,977

$

337,769,908 $

243,354,237 s

497 $
20,760,796
136,427,889
s 157,189,182

224,249 211,695,795 1,884,385,048 2,096,305,092

$

s

$

63,703,860

27,604,818 19,673,746

124,634 23,219,639

s

47,278,564 s

87,048,133 $

s

385,048,472 $

330,402,370 $

s

321,635

161,690,879

1,001,936,816

23,710,465 128,850,897

95,622,405 455,169,458

314,252,241 $

12,898,278 2,417,955 1,568,366,547

s 471,441,423

3,664,671,639

s

2,240,224 $

18,395,317 s

s 75,424,333

1,873,520,358

21,091,686

21,091,686

1,569,994

1,569,994

5,852,868

34,122,987

55,386,285

162,699,158

$

8,093,092 $

52,518,304 $

s 153,472,298

2,058,881,196

s

321,456 $

45,669,148

s

45,990,604 $

s s (37,897,512)

865,001

47,956,323

s

s 10,923,812

8,758,583 s
45,593,493 54,352,076 $
s (1,833,772)
1,372,978 (238,985)
(699,779) s

6,903,593 $ 128,689,422 135,593,015 $

34,405,479 1,480,788,040 1,515,193,519

s 17,879,283

543,687,677

(7,229,959)
5,263,681
s 15,913,005

25,890,194 (497,666,908)
71,910,963

27,879

(2,400,405)

36,354,752

82,786,492 4,953,860
7,560

298,927,060 39,507
(891,513) 199,786 36,517

1,453,154,306 (20,471,837) 65,608,022 199,786 44,077

s

47,278,564 s

87,048,133 s

s 314,252,241

1,568,044,912

A-89

(This page intrnHonal1v left blanR)

r
L
i~
L
- - ~uiredSupp[ementary qnformation - - -

(This page intmtionallv left blank)

- - - - - - - - State of Georgia--------
Required Supplemmtalv InformaNon June 30. I99B

Retirement Systems - Required Supplementary Schedules
Primary Government
Schedule ofFunding Progress
(Thousands of Dollars)
~-"

Actuarial Valuation
Date

Actuarial Value of Plan Assets
(a)

Actuarial Accrued Liability ("AAL") Entry Age
(b)

Unfunded AAL/(Funding
Excess) (b - a)

Funded Ratio
(alb)

Annual Covered Payroll
(c)

Unfunded AAL/(Funding
Excess) as a Percentage of
Covered Payroll [Ib - aj/cl

DARS ERS LRS (1) SCJRS TJSRF (1)

6/30/96 6/30/97
6/30/96 6/30/97
6/30/95 6/30/97
6/30/96 6/30/97
6/30/95 6/30/97

$

19,277 $

12,669 $

(6,608)

21,816

14,068

(7,748)

$ 6,140,080 $ 7,243,105 $ 1,103,025

7,432,306

8,159,345

727,039

$

13,137 $

13,860 $

18,197

18,086

723 (111)

$

72,642 $

50,753 $ (21,889)

81,921

56,132

(25,159)

$

25,925 $

21,953 $

(3,972)

35,613

26,308

(9,305)

152.2% $ 155.1%
84.8% $ 91.1%
94.8% $ 100.6%
143.1% $ 144.8%
118.1% $ 135.4%

3,737 4,113
1,968,714 1,977,928
2,186 2,340
13,294 13,678
5,991 7,305

(176.8)% (188.4)%
56.0% 36.8%
33.1 % (4.7)%
(164.7)% (183.9)%
(66.3)% (127.4)%

Information is shown only for the plans and years available in accordance with the parameters ofGASB 25. Additional information wiJI be added as data become available.
(1) Actuarial valuations are performed biennially

Schedule ofEmployer Contributions
(Thousands of Dollars)

DARS ERS LRS SCJRS TJSRF

Year Ended June 30
1996 1997
1996 1997
1996 1997
1996 1997
1996 1997

State Annual Required Contribution

$

271,342

282,249

$

164

159

$

472

809

Percentage Contributed
100.0% 100.0%
100.0% 100.0%
100.0% 100.0%
100.0% 100.0%
100.0% 100.0%

Information is shown only for the plans and years available in accordance with the parameters of GASB 25. Additional information wiJI be added as data become available.

A-93

State of GeorBia - - - - - - - - -
Required Supplementarv InformaHon June 30. 199B
Retirement Systems - Required Supplementary Schedules (continued)
Notes to Required Supplementary Schedules
Schedule ofFunding Progress The actuarial value of assets recognizes a portion of the difference between the market value of assets and the expected actuarial value of assets, based on the assumed valuation rate ofreturn. The amount recognized each year is 20% of the difference between market value and expected actuarial value. The actuarial value of assets is limited to a range between 80% and 120% of market value.
Schedule ofEmployee Contributions The required employer contributions and percent of those contributions actually made are presented in the schedule.
Actuarial Assumptions The information presented in the required supplementary schedules was determined as part ofthe actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation is presented in the following table:

DARS

ERS

LRS

SCJRS

TJSRF

Actuarial Valuation Date

June30, 1997

Actuarial Cost Method

Entry Age Normal

Amortization Method

Level payment, closed

Remaining Amortization Period

26 years

Asset Valuation Method

Market-related value

Actuarial Assumptions: Investment Rate ofRetum 7.5% (2)

Projected Salary Increases 5.5% (2)

Post-Retirement Cost-ofLiving Adjustment

None

June 30, 1997 Entry Age
Level percentage of pay, open
8 years 5-year smoothed market
7.0% (1) 5.20 - 9.0% (1)
None

June 30, 1997 Unit Credit
Level dollar, open
40 years 5-year smoothed market
7.0% (I) n/a
3% annually

June 30, 1997 Entry Age Normal

June 30, 1997 Entry Age

Level payment, closed

Level percentage of pay, open

26 years Market-related value

26 years
5-year smoothed market

7.5%(2) 5.5% (2)

7.0% (1) 5.5% (1)

None (3)

None

(1) Includes inflation rate of3.50% (2) Includes inflation rate of3.00% (3) Certain members retired from other systems who are due death benefits from this system are assumed to receive 5.50% cost-of-living adjustments.

A-94

- - - - - - - - - State of GeorfJia - - - - - - - - -
Required SupplemmtalV ntorrnenon June 30. 199B

Retirement Systems - Required Supplementary Schedules (continued)

Significant Discretely Presented Component Units
Schedule ofFunding Progress
(Thousands of Dollars)

Actuarial Valuation
Date

Actuarial Value of Plan Assets
(a)

Actuarial Accrued Liability ("AAL") Entry Age
(bl

Unfunded AAL/(Funding
Excess) (b - a)

Funded Ratio (alb)

Annual Covered Payroll
(c)

Unfunded AAL/(Funding
Excess) as a Percentage of
Covered Payroll r(b - a)/c)

TRS

6/30/95

$ 16,335,944 $ 19,771,740 $ 3,435,796

82.6% $ 4,712,292

72.9%

6/30/96

$ 18,750,568 $ 22,163,755 $ 3,413,187

84.6% $ 5,086,924

67.1%

6/30/97

$ 22,496,125 $ 24,895,047 $ 2,398,922

90.4% $ 5,467,905

43.9%

Information is shown only for the plans and years available in accordance with the parameters ofGASB 25. Additional information will be added as data become available.

Schedule ofEmployer Contributions
(Thousands of Dollars)

Year Ended June 30

State Annual Required Contribution

Percentage Contributed

TRS

1991

$

452,522

100.0%

1992

$

454,138

100.0%

1993

$

485,121

100.0%

1994

$

512,429

100.0%

1995

$

556,522

100.0%

1996

$

600,766

100.0%

1997

$

652,928

100.0%

Information is shown only for the plans and years available in accordance with the parameters of GASB 25. Additional information will be added as data become available.

A-95

- - - - - - - - - State of Georgia - - - - - - - - -
Required Supplementarv Information June 30, 199B

Retirement Systems - Required Supplementary Schedules (continued)

Notes to Required Supplementary Schedules

Schedule ofFunding Progress The actuarial value of assets recognizes a portion of the difference between the market value of assets and the expected actuarial value of assets, based on the assumed valuation rate ofreturn. The amount recognized each year is 20% ofthe difference between market value and expected actuarial value. The actuarial value of assets is limited to a range between 80% and 120% of market value.
Schedule ofEmployee Contributions The required employer contributions and percent of those contributions actually made are presented in the schedule.
Actuarial Assumptions The information presented in the required supplementary schedules was determined as part ofthe actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation is presented in the following table:

Actuarial Valuation Date Actuarial Cost Method Amortization Method Remaining Amortization Period Asset Valuation Method Actuarial Assumptions:
Investment Rate of Return Projected Salary Increases Inflation Rate Post-Retirement Cost-of-Living Adjustment

June 30, 1997 Entry Age Level percentage of pay, open 18 years 5-year smoothed market
7.25% 3.50% - 6.25% 3.50%
3% annually

A-96

- - - - - - - - State of GeorfJia - - - - - - - -

Required Supplementarv ntorrnenon

r;
L

.hnc 30, 199B

Year 2000 Issues

existing systems, or switching to compliant systems. During this stage, decisions are made on how to address

f

On March 29, 1999, the Governmental Accounting

L

Standards Board (GASB) issued Technical Bulletin 99-1

"Disclosures about Year 2000 Issues-An Amendment of

Technical Bulletin 98-1." The amendment provides that

required year 2000 disclosures may be reported as required

supplementary information. The State of Georgia has

elected to present year 2000 disclosures as required

supplementary information.

year 2000 system or equipment issues, and the required changes are made.
Validation/Testing Stage - When the organization validates and tests changes made during the conversion process. The development of test data and test scripts, the running of test scripts, and the review of test results are crucial for this stage of the conversion process to be successful. If the testing results show anomalies, the

The year 2000 issue refers to the fact that many computer

tested area needs to be corrected and retested.

programs use only the last two digits to refer to a year. Therefore, both 1900 and 2000 would be referred to as "00." Computer programs have to be adjusted to recognize the difference between those two years or programs will fail or create errors. In addition, some programs may not be able to reco.gnizethe year 2000 as a leap year. Further, the year 2000 Issue could affect electronic equipment - such as environmental systems, elevators, and vehicles - containing computer chips that have date recognition features.

The Year 2000 Project Office has completed an extensive impact assessment of major systems including identification of risk, program impact, and cost and conversion alternatives. Corresponding hardware upgrades and/or purchases have also been identified. The Year 2000 Project Office is currently tracking 366 projects which various State agencies have identified as critical to their operations. Of these projects, the State has currently identified 133 ~ission-critical systems. Reported items for these systems

The State has established a State of Georgia Year 2000 Project Office (Year 2000 Project Office) to coordinate remediation efforts. The mission of the Year 2000 Project Office is to provide policies, standards, state-level management, compliance reporting and project oversight for all year 2000 activities within and among state agencies and the University System of Georgia. The Year 2000 Project Office communicates agency readiness status and risks to the Governor on a monthly basis. The statewide effort began in 1996 with the development of a condition

mclude software remediation, re-writing or replacement and

corresponding hardware upgrades or purchases. The State

of G~~rgia Year 2000 Project Office is currently not

compiling Year 2000 readiness information for the State

Judicial Georgia

System, Lottery

thCeorUponriavteirosnityorSytshteemGoeforGgieaorGgeia~erthael

Assembly. Process control devices, and general purpose

~gency ~frastructure, if they are not a part of these reported

information technology systems, are not included in the 133

mission-critical systems being tracked.

assessment, followed by a statewide assessment of mission critical projects and the establishment of the State of Georgia Year 2000 Project Office. This effort is receiving a high priority from the Governor and Georgia General Assembly.

The Year 2000 Project Office defmes technical testing as the point where a particular system has been fixed, replaced or remediated, systems and user acceptance testing has been satisfactorily completed, and the system is ready for deployment in the operating environment. As of March 26

The following stages have been identified as necessary to address the year 2000 issue:

1999, the State of Georgia had completed technical testing (as defined in the preceding sentence) for 56% ofits mission critical-systems.

Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue.
Assessment Stage - When the organization begins the actual process of identifying all of its systems and individual components ofthe systems. An organization may decide to review all system components or, through a risk analysis, identify only mission-critical systems - systems and equipment critical to conducting operations.
Remediation Stage - When the organization actually makes changes to systems and equipment. This stage deals primarily with the technical issues of converting

Units of the University System of Georgia are responsible for assessment and remediation of systems unique to their operations. The majority of these institution-specific systems are in the remediation and validation/testing stages. The Board of Regents of the University System of Georgia supports the College and University Fund Accounting System, the Regents Budget Reporting System, the Property Inventory System, the Regents PayrollJPersonnel System and the Banner Student Information System on behalf a majority of its member institutions. The Regents Budget Reporting System and the Property Inventory System are beyond the validation/testing stage and management considers them year 2000 ready. The remainder of these

A-97

- - - - - - - - - State of Georgia - - - - - - - - -
Required SupplemcntOlv Information June 30, I99B
Year 2000 Issues (contintued)
common systems are in the remediation and validation/testing stages. The General Assembly appropriated $152 million in Fiscal Year 1998 and an additional $170 million in Fiscal Year 1999 for remediation efforts .. Anticipated Federal funding for year 2000 remediation efforts will boost total funding for year 2000 related activities to approximately $369 million. Because of the unprecedented nature of the year 2000 issue, its effects and the success of related remediation efforts will not be fully determinable until the year 2000 and thereafter. Management cannot assure that the State of Georgia is or will be year 2000 ready, that the State's remediation efforts will be successful in whole or in part, or that parties with whom the State does business will be year 2000 ready.
A-98

SectionCJ3
~ort onComp(ianceana on gnternafControf o"ef'a:-inancia((~portinBcnasedon
an.A.udit of~inanciafStatements9?erformed in
Accordance with Go"ernment.A.uditinB Stanaards

r
~
CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Honorable Roy E. Barnes Governor of Georgia
and Members of the General Assembly of the State of Georgia
We have audited the financial statements of the State of Georgia as of and for the year ended June 30, 1998, and have issued our report thereon dated May 13, 1999. This report was qualified for various departures from generally accepted accounting principles.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to fmancial audits contained Government Auditing Standards, issued by the Comptroller General of the United States. The financial statements of the Employees' Retirement System of Georgia, Georgia Lottery Corporation, Georgia Ports Authority, and Teachers' Retirement System of Georgia were not audited in accordance with Government Auditing Standards, and accordingly, this report does not extend to those organizations. We did not audit the financial statements of certain organizations which, combined, represent less than 1% of the assets and revenues of the general fund, 100% of the assets and revenues of the capital projects funds, 64% of the assets and 35% ofthe revenues of the internal service funds, 68% of the assets ofthe fiduciary funds and less than 1% of the expendable trust funds revenues and 100% of the pension trust funds revenues, and 6% ofthe assets and less than 1% ofthe liabilities ofthe general fixed assets and general long-term debt account groups, respectively. In addition, we did not audit certain discretely presented component units which represent less than 1% of the assets and revenues of the component unit governmental fund types, 84% of the assets and 95% of the revenues of the component unit proprietary fund types and 98% of the assets and 99% of the revenues of the component unit fiduciary fund types. The financial statements of these organizations and component units were audited by other auditors whose reports have been furnished to us, and our report, insofar as it relates to the amounts included for those financial statements, is based solely upon the reports of the other auditors.

Compliance As part of obtaining reasonable assurance about whether the State of Georgia's financial statements are free of material inisstatement, we and other auditors performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly we do not express such an opinion. The results of our and other auditors' tests disclosed the following instances of noncompliance that is required to be reported under Government Auditing Standards and which is described in the Financial Statement sections ofthe accompanying schedule of Findings and Questioned Costs.
(1) General Fixed Assets/Property Management Inadequacies in Operation of Property Management System Various Organizations

FS-401-98-01 FS-414-98-04 FS-415-98-03 FS-427-98-02 FS-462-98-01 FS-467-98-01 FS-472-98-02 FS-4 74-98-05 FS-484-98-01

FS-509-98-03 FS-527-98-02 FS-528-98-03 FS-539-98-02 FS-573-98-01 FS-590-98-01 FS-820-98-0 1 FS-828-98-01 FS-830-98-02

FS-840-98-03 FS-977-98-04 FS-8504-98-0 1 FS-8524-98-0 1 FS-8544-98-0 1 FS-8564-98-0 1 FS-85 84-98-0 1 FS-8604-98-0 1 FS-8664-98-01

FS-8724-98-01 FS-87 64-98-01 FS-8804-98-01

(2) Expenditures/LiabilitieslDisbursements Deficiencies in Operation of Medicaid Claims Processing System FS-419-98-01 - Department of Medical Assistance
Internal Control Over Financial Reporting In planning and performing our audit, we and other auditors considered the State of Georgia's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over fmancial reporting that, in our judgment, could adversely affect the State of Georgia's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. The following reportable conditions are described in the Financial Statement sections of the accompanying schedule of Findings and Questioned Costs.
(1) Revenue/Receivables/Receipts Deficiencies in the State Revenue Collections Fund (Overall) FS-474-98-02 - Department of Revenue Deficiencies in the Income Tax Division Subsidiary Records FS-474-98-03 - Department of Revenue

B-4

F
L

(2) Expenditures/LiabilitieslDisbursements

;;;.'

Inadequacies in Internal Accounting Controls for the Risk Management Trust Funds

FS-401-98-02 - Department of Administrative Services

Deficiencies in Operation of Medicaid Claims Processing System

FS-419-98-01 - Department of Medical Assistance

(3) General Fixed AssetslProperty Management Inadequacies in Operation of Property Management System Various Organizations

FS-401-98-01 FS-414-98-04 FS-415-98-03 FS-427-98-02 FS-462-98-01 FS-467-98-01 FS-472-98-02 FS-4 74-98-05 FS-484-98-01

FS-509-98-03 FS-527-98-02 FS-528-98-03 FS-539-98-02 FS-573-98-01 FS-590-98-01 FS-820-98-01 FS-828-98-01 FS-830-98-02

FS-840-98-03 FS-977-98-04 FS-8504-98-01 FS-8524-98-01 FS-8544-98-0 1 FS-8564-98-0 1 FS-8584-98-01 FS-8604-98-01 FS-8664-98-01

FS-8724-98-0 1 FS-8764-98-01 FS-8804-98-01

A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the fmancial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over fmancial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, of the reportable conditions described above, we consider the following items to be material weaknesses.
(l) Revenue/Receivables/Receipts Deficiencies in the State Revenue Collections Fund (Overall) FS-474-98-02 - Department of Revenue Deficiencies in the Income Tax Division Subsidiary Records FS-474-98-03 - Department of Revenue
(2) Expenditures/LiabilitieslDisbursements Inadequacies in Internal Accounting Controls for the Risk Management Trust Funds FS-401-98-02 - Department ofAdministrative Services Deficiencies in Operation of Medicaid Claims Processing System FS-419-98-01 - Department of Medical Assistance
(3) General Fixed AssetslProperty Management Inadequacies in Operation of Property Management System Various Organizations

B-5

FS-401-98-01 FS-414-98-04 FS-415-98-03 FS-427-98-02 FS-462-98-01 FS-467-98-01 FS-472-98-02 FS-474-98-05 FS-484-98-01

FS-509-98-03 FS-527-98-02 FS-528-98-03 FS-539-98-02 FS-573-98-01 FS- 590-98-01 FS-820-98-01 FS-828-98-01 FS-830-98-02

FS-840-98-03 FS-977-98-04 FS-8504-98-01 FS-8524-98-01 FS-8544-98-0 1 FS-8564-98-0 1 FS-8584-98-01 FS-8604-98-0 1 FS-8664-98-0 1

FS-8724-98-01 FS-87 64-98-01 FS-8804-98-0 1

This report is intended for the information of management, federal awarding agencies and passthrough entities. However, this report is a matter ofpublic record and its distribution is not limited.

May 13,1999

B-6

..-,...-------;-::
SectionC
~ortQnCompfiancewith~'1uirements
AppHca&reto eachSr'\ajor9?rosram.atufonClnternaf Control. o'\1erCompfiance in Accordance with ()}\S13Circufar.r\:-133

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400

REPORT ON COMPLIANCE WITH REQIDREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133

The Honorable Roy E. Barnes Governor of Georgia
and Members of the General Assembly of the State of Georgia
Compliance We have audited the compliance of the State of Georgia with the types of compliance requirements
u.s. described in the Office a/Management and Budget (OMB) Circular A-133 Compliance Supplement that
are applicable to each of its major federal programs for the year ended June 30, 1998. The State of Georgia's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the State of Georgia's management. Our responsibility is to express an opinion on the State of Georgia's compliance based on our audit. We did not audit the following major federal programs or percentages of federal programs:

CFDA NO.

PROGRAM NAME

% AUDITED BY
OTHER AUDITORS

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

66.458

Capitalization Grants for State Revolving Funds Section 8 Cluster Student Financial Aid Cluster Research and Development Cluster

98% 100% 83% 87%

$21,093,674 $47,610,207 $114,369,351 $232,153,852

$189,019,146 $0
$1,592,449,927 $0

The programs listed above were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to compliance requirements for these programs, is based solely upon the reports of the other auditors.
Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material affect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the State of Georgia's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the State of Georgia's compliance with those requirements.
Other auditors were unable to obtain sufficient documentation supporting compliance for the Research and Development Cluster at the Georgia Institute ofTechnology with requirements governing cash management; Davis-Bacon Act; matching, level of effort, earmarking; period of availability of federal funds; program income, reporting and subrecipient monitoring that are applicable to contract nos. XXXXXX-98-C-8094, XXXXXX-97-C-8089 and XXXXXX-93-C-OOOI ofthe U.S. Department of Defense as these contracts and all matters pertaining to them are classified by the U. S. Department of Defense, and other auditors did not have security clearance to perform any procedures with respect to these contracts; nor were other auditors able to satisfy themselves as to the Georgia Institute of Technology's compliance with the aforementioned requirements with respect to contract nos. XXXXXX-98-C-8094, XXXXXX-97-C-8089 and XXXXXX-93C-OOO 1 by other auditing procedures.
As described in finding numbers FA-521-98-01, FA-533-98-02, FA-533-98-03, FA-533-98-04 in the accompanying schedule of Findings and Questioned Costs, the State of Georgia did not comply with requirements regarding Eligibility that is applicable to the Student Financial Aid Cluster. Compliance with such requirements is necessary, in our opinion, for the State of Georgia to comply with requirements applicable to this program.
As described in finding number FA-419-98-01 in the accompanying schedule of Findings and Questioned Costs, the State of Georgia did not comply with requirements regarding Allowable Costs/Cost Principles that is applicable to the Medicaid Cluster. Compliance with such requirements is necessary, in our opinion, for the State of Georgia to comply with requirements applicable to this program.
As described in finding numbers FA-548-98-02, FA-548-98-05 in the accompanying schedule of Findings and Questioned Costs, the State of Georgia did not comply with requirements regarding Allowable Costs/Cost Principles and Period ofAvailability ofFederal Funds that is applicable to the Higher Education - Institutional Aid program. Compliance with such requirements is necessary, in our opinion, for the State of Georgia to comply with requirements applicable to this program.
C-4

f~
~

In our opinion, based on our audit and the reports of other auditors, except for the effects of the matters discussed in the preceding paragraphs, the State of Georgia complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 1998. However, the results of our and other auditors' auditing procedures disclosed the following instances ofnoncompliance with those requirements, which are required to be reported in accordance with OMB Circular A-133 and which are described in the Federal Awards sections ofthe accompanying schedule of Findings and Questioned Costs.

Activities Allowed or Unallowed
FA-824-98-01 FA-830-98-01 FA-841-98-01
Allowable Costs/Cost Principles
FA-401-98-01 FA-419-98-0 1 FA-548-98-01 FA-548-98-02 FA-830-98-02 FA-841-98-02
Cash Management
FA-841-98-03
Davis-Bacon Act
FA-533-98-01 FA-548-98-03
Eligibility
FA-427-98-01 FA-427-98-02 FA-440-98-01 FA-440-98-02 FA-521-98-01 FA-533-98-03 FA-533-98-04

Equipment and Real Property Management
FA-414-98-01 FA-415-98-01 FA-427-98-03 FA-440-98-03 FA-548-98-04 FA-841-98-04
Period of Availability of Federal Funds
FA-533-98~05
FA-548-98-05
Procurement and Suspension and Debarment
FA-419-98-02 FA-548-98-06
Reporting
FA-503-98-01 FA-503-98-02 FA-503-98-03 FA-503-98-04 FA-503-98-05 FA-509-98-01 FA-51 8-98-01 FA-5 18-98-02 FA-51 8-98-03 FA-533-98-06

Reporting continued
FA-533-98-07 FA-533-98-08 FA-548-98-07 FA-550-98-01 FA-918-98-01
Subrecipients Monitoring
FA-414-98-02
Special Tests and Provisions
FA-521-98-02 FA-533-98-09 FA-539-98-01 FA-550-98-01

Internal Control Over Compliance The management of the State of Georgia is responsible for establishing and maintaining effective internal control over compliance with the requirements oflaws, regulations, contracts and grants applicable to federal programs. We did not consider the internal control structures applicable to the federal programs listed in the table in paragraph one. Those internal control structures were considered by other auditors whose reports have been furnished to us. Our report, insofar as it relates to the internal control structures used in administering federal programs ofthe organizations mentioned previously is based solely upon the reports of the other auditors.

C-5

In planning and performing our audit, we and other auditors considered the State of Georgia's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A133.
We and other auditors noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over compliance that, in our judgment, could adversely affect the State of Georgia's ability to administer a major federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the Federal Awards section of the accompanying schedule of Findings and Questioned Costs.

Activities Allowed or Unallowed
FA-824-98-01 FA-830-98-01 FA-841-98-01
Allowable Costs/Cost Principles
FA-401-98-01 FA-419-98-01 FA-548-98-01 FA-548-98-02 FA-830-98-02 FA-841-98-02
Cash Management
FA-841-98-03
Davis-Bacon Act
FA-533-98-01 FA-548-98-03
Eligibility
FA-427-98-01 FA-427-98-02 FA-440-98-01 FA-440-98-02 FA-521-98-01 FA-533-98-02 FA-533-98-03 FA-533-98-04

Equipment and Real Property Management
FA-414-98-01 FA-415-98-01 FA-427-98-03 FA -440-98-03 FA-548-87-04 FA-841-98-04
Period of Availability of Federal Funds
FA-533-98-05 FA-548-98-05
Procurement and Suspension and Debarment
FA-419-98-02 FA-548-98-06
Reporting
FA-503-98-01 FA-503-98-02 FA-503-98-03 FA-503-98-04 FA-503-98-05 FA-509-98-01 FA-518-98-01 FA-518-98-02 FA-518-98-03 FA-533-98-06

Reporting continued
FA-533-98-07 FA-533-98-08 FA-548-98-07 FA-550-98-01 FA-918-98-01
Sub recipients Monitoring
FA-414-98-02
Special Tests and Provisions
FA-521-98-02 FA-533-98-09 FA-539-98-01 FA-550-98-01

A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal
C-6

course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, as described in the Federal Awards section of the accompanying schedule of Findings and Questioned Costs, of the reportable conditions described above, we consider the following items to be material weaknesses.

Allowable Costs/Cost Principles FA-419-98-01

Eligibility
FA-521-98-01 FA-533-98-02 FA-533-98-03 FA-533-98-04

This report is intended for the information of management, federal awarding agencies and pass-through entities. However, this report is a matter ofpublic record and its distribution is not limited.
a ~ Respectfully submitted,
Claude L. Vickers State Auditor

May 13,1999

C-7

DectioftCJ) g;imfinasamfQuestionedCosts

Lfif."
tH L....J
- - - S ummar1 of Auditor's ~uCts - - -

- - - - - - - State ~~:L--;'

of G e o r g i a - - - - - - -

Summarv of Auditor's Results For the Rscal Year Ended June 30, 199B

Financial Statements

Type of auditor's report issued:

Qualified

Internal control over fmancial reporting:

Reportable Condition identified?

Yes

Reportable Conditions identified considered to

be material weaknesses?

Yes

Noncompliance material to fmancial statements noted?

Yes

Federal Awards

Internal control over major programs:

Reportable Condition identified?

Yes

Reportable Conditions identified considered to

be material weaknesses?

Yes

Type of auditor's report issued on compliance for major programs: Qualified

Any audit findings disclosed that are required to be reported in

accordance with Circular A-l33, Section .510(a)?

Yes

Identification of major programs:

CFDA Numbers
16.579 16.586 17.225
39.003 66.458 83.544 84.002 84.010
84.048 84.031 84.126 84.276 84.298
93.558 93.568 93.569 93.575 93.585 93.596 93.645

Name of Federal Program or Cluster Food Stamp Cluster Section 8 Cluster Byrne Formula Grant Program Violent Offender Incarceration and Truth in Sentencing Incentive Grants Unemployment Insurance JTPA Cluster Donation of Federal Surplus Personal Property Capitalization Grants for State Revolving Funds Public Assistance Grants Adult Education - State Grant Program Title I Grants to Local Educational Agencies Special Education Cluster Student Financial Aid Cluster Vocational Education - Basic Grants to States Higher Education - Institutional Aid Rehabilitation Services - Vocational Rehabilitation Grants to States Goals 2000 - State and Local Education Systemic Improvement Grants Innovative Education Program Strategies Aging Cluster Temporary Assistance for Needy Families Low-Income Home Energy Assistance Community Services Block Grant Child Care and Development Block Grant Empowerment Zones Program Child Care Mandatory and Matching Funds of the Child Care and Development Fund Child Welfare Services - State Grants
D-5

- - - - - - - - - State of GeorfJia - - - - - - - - -
Summarv of Auditor's Results For the FIScal Year Ended June 30, 1995

CFDA Numbers 93.658 93.659
93.958 93.959

Name of Federal Program or Cluster Foster Care - Title IV-E Adoption Assistance Medicaid Cluster Block Grants for Community Mental Health Services Block Grants for Prevention and Treatment of Substance Abuse Research and Development Cluster

Dollar threshold used to distinguish between Type A and Type B programs - $ 20,467,150.00

Auditee Qualified as low-risk auditee

No

D-6

~inancia[ Statement
~indlnBs

- - - - - - - - - - State of Georgia - - - - - - - - - -

r;

Rndings and Questioned Costs

L

For the Fiscal Year Elided JUlIe 30. 1990

FINANCIAL STATEMENT RELATED FINDINGS REQUIRED TO BE REPORTED IN ACCORDANCE WITH GOVERNMENTA UDITING STANDARDS

FINDING CONTROL NO.

ORGANIZATIONAL UNIT

GENERAL FIXED ASSETS/PROPERTY MANAGEMENT

FS-40 1-98-0 1

Administrative Services, Department of .,

FS-414-98-04

Education, Department of

FS-415-98-03

Technical and Adult Education, Department of...

FS-427-98-02

Human Resources, Department of

FS-462-98-0 I

Natural Resources, Department of

FS-467-98-01

Corrections, Department of

FS-472-98-02

Regents of the University System of Georgia, Board of..

FS-474-98-05

Revenue, Department of

FS-484-98-0 1

Transportation, Department of

Colleges and Universities

FS-509-98-03

Georgia State University

FS-527-98-02

Augusta State University

FS-528-98-03

Clayton College and State University

FS-539-98-02

Georgia Southern University

FS-573-98-01

Floyd College

FS-590-98-09

Military College, Georgia

Technical Institutes

FS-820-98-0 1

Albany Technical Institute

FS-828-98-0 1

Columbus Technical Institute

FS-830-98-02

DeKalb Technical Institute

FS-840-98-03

Pickens Technical Institute

FS-977-98-04

Public Telecommunications Commission, Georgia

FS-8504-98-0 1

Northwest Georgia Regional Educational Service Agency

FS-8524-98-0 1

North Georgia Regional Educational Service Agency

FS-8544-98-0 1

Pioneer Regional Educational Service Agency

FS-8564-98-0 1

Metropolitan Regional Educational Service Agency

FS-8584-98-0 1

Northeast Georgia Regional Educational Service Agency

FS-8604-98-0 1

West Georgia Regional Educational Service Agency

FS-8664-98-0 1

Oconee Regional Educational Service Agency

FS-8724-98-0 1

Chattahoochee-Flint Regional Educational Service Agency

FS-8764-98-0 1

Heart of Georgia School Systems Regional Educational Service Agency

FS-8804-98-0 1

First District Regional Educational Service Agency

REVENUES/RECEIVABLES/RECEIPTS

FS-474-98-02

Revenue, Department of

FS-474-98-03

Revenue, Department of

EXPENDITURES/LIABILITIES/DISBURSEMENTS

FS-40 1-98-02

Administrative Services, Department of

FS-419-98-0 1

Medical Assistance, Department of

PAGE NO.
D-l 0 D-ll D-11 D-12 D-12 D-13 D-13 D-17 D-18
D-18 D-19 D-19 D-20 D-20 D-21
D-2l D-22 D-22 D-22 D-23 D-23 D-24 D-24 D-24 D-25 D-25 D-25 D-25 D-26 D-26
D-14 D-16
D-l 0 0-11

0-9

- - - - - - - - - - State of Georgia - - - - - - - - - -
Rndings and Questioned Costs
For the Rscal Year Ended JUlIe 30. 199B
FINANCIAL STATEMENT FINDINGS
DEPARTMENT OF ADMINISTRATIVE SERVICES
Finding Control Number: FS-401-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination included a review of the internal accounting controls utilized by the Department of Administrative Services in maintaining their State Property System and also included testing the system for compliance with State laws and regulations. The Department of Administrative Services did not maintain adequate records linking additions and disposals of computer services equipment items to the property management records.
As a result, we were unable to reconcile the beginning and ending balance of computer services equipment inventory through an analysis of current year equipment additions and deletions. An unreconciled difference of $2,518,474.72 remained at June 30, 1998.
In addition, one-hundred-twenty-three (123) equipment items were selected to test the accuracy of the Department's property management records. These items contained a value of $1,583,251.35 out of a population of $154,727,903.05 and were selected for the purpose of locating the equipment as recorded in the inventory records. The following deficiencies were noted:
(1) Twenty-two (22) items totaling $79,687.51 could not be located.
(2) Ten (10) items were found in locations other than the location indicated in the equipment inventory records.
(3) Seventeen (17) items totaling $439,145.59 were surplused, but were not removed from the equipment inventory records.
Also, during the physical inspection testing, one-hundred-fifty-two (152) items of equipment were located which were not included in the equipment inventory records.
The Department is required to maintain equipment inventories in accordance with provisions of the State Propertv Management System Manual. The discrepancies identified above were caused by the Department's failure to follow guidelines for maintaining equipment inventories.
The Department should establish the necessary internal controls and implement procedures to ensure the equipment inventory records are maintained in accordance with the State Property Management System Manual.
Finding Control Number: FS-401-98-02 EXPENDITURESILIABILITIESIDISBURSEMENTS Inadequacies in Internal Accounting Controls for the Risk Management Trust Funds
Our examination included a review of the internal accounting controls used by the Department of Administrative Services in the Risk Management Trust Funds claim processing procedures. The Risk Management Trust Funds are used to account for the assets, revenues and expenditures associated with the operations of the State of Georgia's various self-insurance programs established by statute or administrative action. During this review, it was noted that refunds totaling $2,388,422.73 were received by the Trust Funds due to overpayment or duplication of claim settlements. These refunds were voluntary on the part of recipients, and were not discovered through normal edit procedures. During claim processing, edits should be in place to "flag" duplicate or overpayments before settlement checks are issued. Because these refunds may represent only a portion of the total duplicates and overpayments occurring, the loss due to the same cannot be estimated.
D-I0

- - - - - - - - - - - State of Geot'gia - - - - - - - - - - -
Rndings and Questioned Costs
For the Fiscal Year Ended June 30. 1996
FINANCIAL STATEMENT FINDINGS
In addition, two-hundred-seventy (270) claim payments were selected to test the accuracy of the Department's claim processing system. These payments contained a value of $44,594,581.16 out of a population of $118,425,126.89. This sample revealed the following:
(1) Fourteen (14) claim payments totaling $4,347,613.90 with no available documentation to support the expenditures.
(2) One (1) claim payment for $2,500,000.00 which should have been paid for $250,000.00. The claimant refunded $2,250,000.00 and this amount is included in the refunds noted in the above paragraph.
The Department of Administrative Services should continue to review the claim process procedures to reduce duplicates and overpayments. In addition, the Department should establish the necessary internal controls to ensure that adequate documentation is included in all claim payment packages.
DEPARTMENT OF EDUCATION
Finding Control Number: FS-414-98-04 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination included a review of the internal accounting controls utilized by the Department of Education in maintaining their State Property System. This review also included testing the system for compliance with State laws and regulations. A number of conditions relating to inappropriate accounting practices were found to exist and have been identified in detail within the Federal Awards Findings and Questioned Costs, fmding control number FA-414-98-01.
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual. The discrepancies identified were caused by the Department's failure to follow guidelines for maintaining equipment inventories.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with the State Property Management System Manual.
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
Finding Control Number: FS-415-98-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
A review of internal accounting controls utilized by the Department of Technical and Adult Education in maintaining their State Property System disclosed that a number of conditions relating to inappropriate accounting practices existed and have been identified in detail within the Federal Awards Findings and Questioned Costs, fmding number FA-415-98-01.
DEPARTMENT OF MEDICAL ASSISTANCE
Finding Control Number: FS-419-98-01 EXPENDITURESILIABILITIESIDISBURSEMENTS Deficiencies in Operation of Medicaid Claims Processing System
An examination of the control system in place at the Department of Medical Assistance's (DMA) contracted claims processor, Electronic Data Systems (EDS), disclosed that controls are in place to detect and prevent payment of most claims that do not meet the requirements forallowability under the regulations governing the Community Mental Health Service Program and Mental Retardation Waiver Program. However, our testing of the controls (edit checks) did reveal a
D-ll

- - - - - - - - - - - State of GeorBia - - - - - - - - - - -
FlI1dings and Questioned Costs
For the FISCal Year Ended June 30. 199B
FINANCIAL STATEMENT FINDINGS
number of deficiencies and have been identified in detail within the Federal Awards Findings and Questioned Costs Section, fmding number FA-419-98-01.
The Department of Medical Assistance should recover from providers all amounts that were paid for claims that were not allowable under the programs. The Department of Medical Assistance should also, in coordination with Electronic Data Systems, implement the appropriate controls to ensure that all claims are processed in accordance with the applicable policies and procedures governing the programs.
DEPARTMENT OF HUMAN RESOURCES
Finding Control Number: FS-427-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination included a review of the internal accounting controls utilized by the Department of Human Resources in maintaining their State Property System and also testing the system for compliance with State laws and regulations. A number of conditions relating to inappropriate accounting practices were found to exist and have been identified in detail within the Federal Awards Findings and Questioned Costs, finding number FA-427-98-03.
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual. The discrepancies identified were caused by the Department's failure to follow guidelines for maintaining equipment inventories.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with the State Property Management System Manual. The discrepancies identified were caused by the Department's failure to follow guidelines for maintaining equipment inventories.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with the State Property Management System Manual.
DEPARTMENT OF NATURAL RESOURCES
Finding Control Number: FS-462-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
For the year under review, our examination included a review of the accounting system utilized by the Department of Natural Resources in maintaining their property management system. This review also included testing the system for compliance with State laws and regulations.
One-hundred-twenty-three (123) equipment items were selected to test the accuracy of the Department's property management records. These items contained a value of $837,982.10 out of a population of $68,090,548.39 and were selected for the purpose of locating the equipment as recorded in the inventory records. The following deficiencies were noted:
(1) Two (2) items totaling $2,272.00 could not be located. (2) Seven (7) items totaling $23,550.40 were surplused, but were not removed from the equipment inventory
records. (3) Two (2) items did not have decal numbers attached. However, items were located utilizing serial
numbers or descriptions. (4) Three (3) items were found in locations other than the location indicated in the equipment inventory
records. D-12

F
L

- - - - - - - - - - State of Georgia - - - - - - - - - -

Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1990

FINANCIAL STATEMENT FINDINGS
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual. The discrepancies identified above were caused by the Department's failure to follow established guidelines for maintaining equipment inventories.
The Department should establish the necessary internal controls and implement procedures to ensure the equipment inventory records are maintained in accordance with the State Property Management System Manual.
DEPARTMENT OF CORRECTIONS
Finding Control Number: FS-467-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination included a review of the accounting system utilized by the Department of Corrections in maintaining their State Property System and tests of the system for compliance with State laws and regulations. The following conditions related to inappropriate accounting practices were noted:
(1) Equipment inventory records were not updated for all additions. Testing of current year additions revealed thirteen (13) current year equipment purchases totaling $67,165.70 that had not been entered onto the equipment inventory records at June 30, 1998.
(2) Three (3) equipment items acquired through installment purchases were included on the equipment inventory records at an incorrect amount. The difference in the acquisition cost and the amount recorded on the inventory records amounted to $7,685.78 (net).
(3) Three (3) equipment items totaling $8,704.08 acquired through installment purchases were not included on the equipment inventory records at June 30, 1998.
In addition, two-hundred-eighty (280) equipment items were selected to test the accuracy of the Department's property management records. These items contained a value of $3,334,569.73 out of a population of $81,183,220.79 and were selected for the purpose of locating the equipment as recorded in the inventory records. Twenty-two (22) items totaling $147,537.40 could not be located.
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual. The discrepancies identified above were caused by the Department's failure to follow established guidelines for maintaining equipment inventories.
The Department should establish the necessary internal controls and implement procedures to ensure the equipment inventory records are maintained in accordance with the State Property Management System Manual.
BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA
Finding Control Number: FS-472-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
An equipment inventory sample of one hundred ninety eight (198) randomly selected items was utilized to test the accuracy and validity of the Administrative Central Office's equipment inventory records. One hundred (100) items located at the Administrative Central Office were selected for testing along with ninety eight (98) items from various satellite locations throughout the state. No exceptions were noted on equipment items tested at the Administrative Central Office; however, the following deficiencies were noted on items tested at satellite locations:
D-13

- - - - - - - - - - State of Georgia - - - - - - - - - -
Flf\dings and Questioned Costs
For the Fiscal Year Ended June 30, 199B
FINANCIAL STATEMENT FINDINGS
(1) At one location, five (5) items could not be located and one (1) item which was identified as being transferred to another entity could not be properly documented.
(2) At a second location, one (1) item could not be located and six (6) items were located which had no identifying decal numbers.
These deficiencies occurred because of management's failure to ensure that equipment inventory records were properly maintained at satellite locations. The Administrative Central Office should establish appropriate procedures to strengthen internal accounting controls and to ensure that assets are safeguarded against loss from unauthorized use or disposition.
DEPARTMENT OF REVENUE
Finding Control Number: FS-474-98-02 REVENUES/RECEIV ABLES/RECEIPTS Deficiencies in the State Revenue Collections Fund (Overall)
Our examination included a review of the internal accounting controls and accounting procedures utilized by the Department of Revenue (Department) in maintaining their State Revenue Collections Fund. This examination included procedures to provide reasonable assurance that revenue collections received by the Department through either the Mail Cash System (manual deposits by the Department) or the Electronic Funds Transfer Maintenance Unit (electronic fund transfers from taxpayers) were adequately accounted for by the Department's general ledger system maintained by the Central Accounting Unit and were properly recorded in the subsidiary ledgers and associated records maintained by the Divisions and individual tax units. Our procedures also included ~ reconciliation of the revenue collections received and subsequently transferred by the Department to the Office of Treasury and Fiscal Services (OTFS), which acts as the State treasury. The following deficiencies and inappropriate practices were found to exist:
1) The general ledger system consists of the "Revenue Ledger" and the "Refund Ledger". These ledgers do not provide for dual-entry accounting for the purpose of recognizing receipts and disbursements. Dualentry bookkeeping is the cornerstone of any accounting system and provides a mechanism to ensure the proper balancing of a general ledger accounting system. Failure to provide for dual-entry accounting inhibits the Department from producing a "balanced" general ledger for audit.
The general ledger system should be redesigned to provide dual-entry accounting for the purpose of recognizing receipts and disbursements.
2) The general ledger system did not include separate accounts to identify each type of revenue reported to and recorded by OTFS; nor did the system contain unique identifying numbers (transmittal numbers/deposit numbers) for all revenue amounts recorded within the general ledger. These deficiencies result in extensive time and effort being required to reconcile the financial activity between the Department and OTFS.
The general ledger system should be updated to contain the transmittal number and deposit number for each receipt transmitted to and refund requisitioned from OTFS. In addition, the chart of accounts should be expanded to contain a separate account for each revenue type reported by OTFS.
3) The Central Accounting Unit does not have adequate procedures in place to ensure that necessary corrections to the general ledger resulting from electronic fund transfers, NSF checks and returned refund checks are reported in a timely manner to the Divisions and individual tax units. The failure to fully communicate known adjustments in a timely manner to responsible persons within the Department can result in inaccurate fmancial records and possible financial loss to the State.
D-14

f'~
L~

- - - - - - - - - - State of Georfjia - - - - - - - - - -

Rndings and Questioned Costs

;fF,

For the Fiscal Year Ended June 30, 199B

~

FINANCIAL STATEMENT FINDINGS
The Central Accounting Unit should develop and implement procedures to ensure that all adjustments are communicated to the Divisions and individual tax units responsible for maintaining applicable
L_
subsidiary ledgers and associated records.
4) During the year under review, the Department established a Loose Check section to investigate unprocessed documents (including checks) discovered in the Mail Cash System that had certain missing or incorrect information. However, the checks returned to Tradeport from the Loose Check section were not adequately batch controlled. It is important to batch checks in order to ensure that all checks were received and properly controlled.
The Loose Check section should establish procedures to ensure that, after each payment has been resolved, a log of checks returned is maintained to ensure that the documentation is returned and received at Tradeport.
5) The Department has not established an internal control system whereby the subsidiary ledgers and associated records properly "roll-up" into the general ledger. As a result, the general ledger system and the subsidiary ledger system operate independently of each other and are not reconciled periodically. In addition, there are no consistent cut-off dates established between the two sets of records. A well designed accounting system provides for general ledger control over subsidiary ledgers and records and provides for a linkage between the general and subsidiary records. The lack of controls, which ensure a prompt reconciliation of the general ledger and subsidiary records, has resulted in the Department's accounting records in the Divisions and individual tax units being inconsistent, and in certain instances unreconcilable with the general ledger.
The Department should establish policies and procedures that will establish managerial control for the Central Accounting Unit over the subsidiary ledgers and associated records through use of an integrated general and subsidiary ledgers system. In addition, consistent cut-off dates should be established between the two systems and all subsidiary ledgers and associated records should be reconciled to the general ledger on a monthly basis.
6) The Department has not established an internal control system that requires cash receipts and disbursements to be posted to the "Revenue Ledger" and the "Refund Ledger" in the accounting period in which they occur, allowing discretionary shifting of cash receipts and disbursements between accounting periods. This "shifting of funds" is inconsistent with the Cash Receipts and Disbursements basis of accounting and compounds the problems associated with reconciling the general ledger system and the subsidiary ledgers and associated records maintained by the Divisions.
State Revenue Collections Funds are maintained on the Cash Receipts and Disbursements basis of accounting as prescribed or permitted by statutes and regulations of the State of Georgia. The Department should develop and implement procedures to ensure that cash receipts and disbursements are recorded in the "Revenue Ledger" and the "Refund Ledger" at the time of occurrence, as required by the Cash Receipts and Disbursements basis of accounting. In addition, the Department should develop and implement procedures to ensure that posting dates in the "Revenue Ledger" and the "Refund Ledger" are consistent with the posting dates in the subsidiary ledgers and associated records.
The deficiencies noted above are a result of the Department's failure to provide for a comprehensive, modem accounting system coupled with strong, clear lines of authority and internal controls. The Department should carefully evaluate each of these deficiencies and take appropriate action to resolve these matters.

D-15

--------~ State of GeorfJia - - - - - - - - -
Findings and Questioned Costs
For the Fiscal Year Ended JUlIe 30. 199B
FINANCIAL STATEMENT FINDINGS
Finding Control Number: FS-474-98-03 REVENUESIRECEIVABLES/RECEIPTS Deficiencies in the Income Tax Division Subsidiary Records
Our examination included a review of the internal accounting controls and accounting procedures utilized by the Income Tax Division (Division) of the Department of Revenue (Department) for maintaining subsidiary ledgers and associated records. This review revealed the following deficiencies in the maintenance of subsidiary records by the Division as follows:
1) The Division does not adequately track data received from both companies and individuals concerning taxpayer wages, income tax withholdings or estimated payments of Georgia income tax. Only limited work regarding individual confrrmation of Form W-2 information is performed by the Department.
As a result of this deficiency, the Division cannot ensure, in all cases, that the withholding amount claimed by the taxpayer on the annual tax return is accurate or that known taxable income is reported as income. This condition resulted due to the Department's failure to design and implement needed procedures, programs or systems.
The Department should design and implement a system that will provide for the systematic reconciliation of income and withholding data received from employers and individuals with Form W-2 and other documents filed with year-end individual tax returns.
2) Tax examiners of the Individual Income Tax Unit and Withholding Unit of the Division are responsible for amending tax returns when errors and processing problems are identified as returns are being processed by the Division. Amendment of the returns involves the tax examiner submitting adjustments for such items as taxes due and assessment or abatement of interest and penalty amounts. The Division does not have the necessary systematic controls in place to ensure that all adjustments are processed in a timely manner.
The failure to process adjustments in a timely manner could lead to inaccurate fmancial records. The lack of timely processing is the result ofthe Department not having automated system controls to age the amended returns in process.
The Department should implement enhancements to the computer system to produce an automated aging report of all returns and provide for regular management review of the report to assure that adjustments are made timely.
3) The Department uses a batch system to identify and categorize taxes received as the various tax documents flow through the Division. The Withholding Unit of the Division relies on a manual log book to ensure that all batches are accounted for within the processing cycle. The accuracy of controlling this voluminous activity relies only on a manual review of this log book by the Division's management. Also, when the Withholding Unit computer system's capacity reaches more than 90%, a "purge" program is run. The report that is generated by the purge program is used by the Withholding Unit to manually identify batches that have not completed the processing cycle and to initiate a purge of all completed batches. Within 180 days, if a batch is not acknowledged as either complete or incomplete, the batch may be purged whether it is complete or not. An adequate system of accounting controls would utilize automated procedures to ensure that all batches are processed by the system prior to purging.
Due to the voluminous activity of the Withholding Unit, the manual process of identifying incomplete batches is tedious and subject to possible error. Without automated controls of the batches, there is a risk that batches will not be processed by the system or batches may be inadvertently purged before being
D-16

F
L

- - - - - - - - - - State of Georgia - - - - - - - - - -

Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 199B

FINANCIAL STATEMENT FINDINGS
processed resulting in erroneous financial records and a misstatement of income. This condition resulted due to the Department's failure to design and implement needed automated procedures.
The Department should modify the Withholding Unit's computer system to ensure that all batches are accounted for and processed. The system controls should be improved to automatically identify any unprocessed batches. In addition, periodic reports should be produced and reviewed to identify any outstanding or missing batches and ensure they are properly processed.
Finding Control Number: FS-474-98-05 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
For the year under review, our examination included a review of the internal accounting controls utilized by the Department of Revenue (Department) in maintaining their State Property System and also included testing the system for compliance with State laws and regulations. The following conditions relating to inappropriate accounting practices were for equipment found to exist:
1) Equipment purchases totaling $1,508,807.77 were not promptly added to the property inventory system and were not included in the property inventory records at June 30, 1998. Many of these purchases were in excess of six months old.
2) The Procurement and Services Division does not ensure that year end reports, additions, deletions, and the year end inventory balance reconcile. At fiscal year end, an unidentified variance of $34,560.81 existed.
3) Fourteen (14) additions to the property management records were selected to test for validity of additions to the property inventory records. These additions totaled $1,619,977.51 out of a population of $3,503,374.72. Appropriate documentation for two (2) additions to the property inventory records totaling $212,800.00 could not be located.
In addition, fifty (50) equipment items were selected to test the accuracy of the Department's property management records. These items contained a value of $2,034,514.36 out of a population of $13,224,752.85 and were selected for the purpose of locating the equipment as recorded in the inventory records. Four (4) items totaling $7,892.05 could not be located.
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual. The discrepancies identified above were caused by the Department's failure to follow guidelines for maintaining equipment inventories.
As a result of the discrepancies identified above, we were unable to determine the validity of the total equipment inventory valuation contained in the inventory records, which comprises the General Fixed Assets Account Group.
The Department should establish the necessary internal controls and implement procedures to ensure the equipment inventory records are maintained in accordance with the State Property Management System Manual.

D-17

- - - - - - - - - State of Georgia - - - - - - - - -
Findings and Questioned Costs
For the Fiscal Year Ended June 30, 199B
FINANCIAL STATEMENT FINDINGS
DEPARTMENT OF TRANSPORTATION
Finding Control Number: FS-484-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination included a review of the internal accounting controls utilized by the Department of Transportation in maintaining their State Property Management System and also included testing the system for compliance with State laws and regulations. The following conditions relating to inappropriate accounting practices were found to exist:
(I) Testing of current year additions revealed seven (7) items totaling $1,101,406.00 which were not included on the inventory listing.
(2) Testing of current year deletions revealed: one (1) item totaling $31,943.00 which was disposed of but not removed from the inventory listing; and one (I) item totaling $108,815.00 which was disposed of but could not be supported by documentation for authorization of disposal.
(3) One (I) item totaling $989,500.00 was traded-in on another equipment item in the prior year but has still not been deleted from the inventory records.
In addition nine hundred thirty one (931) equipment items were selected to test the accuracy of the Department's property management records. These items contained a value of $3,820,342.15 out of a population of $35,381,020.43 and were selected for the purpose of locating equipment as recorded in the inventory records. This testing revealed thirty one (31) items totaling $96,187.78 which could not be located.
Also, during the physical inspection testing, nine (9) items of equipment were located which were not included in the equipment inventory records.
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual. The discrepancies identified were caused by the Department's failure to follow guidelines for maintaining equipment inventories.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with the State Property Management System Manual.
GEORGIA STATE UNIVERSITY
Finding Control Number: FS-509-98-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
A statistically valid equipment inventory sample of one hundred and ninety nine (199) items was utilized to test the accuracy and validity of the University's equipment inventory records. The results of our testing procedures disclosed the following exceptions:
(I) Two items on the equipment inventory sample could not be located.
(2) One item had been transferred to another Institution in the University System of Georgia, but not removed from the equipment inventory records.
(3) Two items were located based on the description and model numbers, however the decal numbers on the equipment did not agree with the decal numbers on the equipment inventory records.
(4) One item had been reported stolen, but had not been removed from the equipment inventory records. D-18

- - - - - - - - - State of GeorfPa - - - - - - - - -
Findings and Questioned Costs
For the Fiscal Year Ended .knc30. 199B
FINANCIAL STATEMENT FINDINGS
(5) One item selected did not have a decal number affixed. However, the item was identified based on the description and serial number on the equipment inventory records.
(6) Five items selected for testing had been traded-in prior to June 30th, but had not been removed from the equipment inventory records.
In addition, we selected twenty-five items at various locations and attempted to trace these items back to the equipment inventory records provided. Of these items, seven could not be found on the equipment inventory records.
These discrepancies occurred because of management's failure to adequately monitor the subsidiary equipment inventory records. The University is implementing procedures to correct these deficiencies in the internal control system over equipment inventory. However, the University should continue to evaluate procedures to strengthen internal accounting controls over the equipment inventory process.
AUGUSTA STATE UNIVERSITY
Finding Control Number: FS-527-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
For the year under review, deficiencies were noted in Augusta State University's equipment inventory records as follows:
(1) Equipment deletions/disposal in the amount of $644,695. 16 have not been adjusted in the general ledger.
(2) A variance of $277,020.30 remained unidentified between the University's general ledger and the subsidiary equipment inventory records.
These discrepancies occurred because of management's failure to adequately reconcile the subsidiary equipment records with the accounting records. As a result of these deficiencies, we were unable to determine the validity of the total equipment inventory valuation contained in the equipment inventory records, which is a component of the University's Investment in Plant.
The University should take a complete physical inventory of equipment, if necessary, and establish appropriate procedures to strengthen the internal accounting controls over the property management system to ensure that subsidiary equipment records are accurately reflected in the accounting records.
CLAYTON COLLEGE AND STATE UNIVERSITY
Finding Control Number: FS-528-98-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
For the year under review, an equipment inventory sample of all individually significant items and four hundred (400) randomly selected items was utilized to test the accuracy and validity of the University's equipment inventory records. The results of our testing procedures disclosed the following deficiencies:
(1) Eighteen (18) items could not be located.
(2) Thirty-nine (39) items were located in areas other than those indicated on the equipment inventory records. (Additional procedures revealed three (3) other equipment items not at the location as shown on the inventory records.)
D-19

- - - - - - - - - - State of Georgia - - - - - - - - - -
Findings and Questioned Costs
For the Rscal Year Ended June 30. 199B
FINANCIAL STATEMENT FINDINGS
(3) Twenty-five (25) computers included in deletions per the University's "Changes in Investment in Plant" schedule were not removed from the equipment inventory records.
(4) Four (4) items physically located, no longer had the decal number affixed.
(5) Two (2) items had been surplused but were not removed from the equipment inventory records.
(6) Two (2) instances were noted where only one decal number was assigned to a group of equipment, rather than assigning an individual decal number to each piece of equipment.
(7) One (1) computer had been stolen and had not been removed from the equipment inventory records.
(8) One (1) item had been dismantled for use as parts and had not been removed from the equipment inventory records.
It was also noted that a complete physical inventory of equipment had not been taken by the University since 1991.
These deficiencies occurred because of management's failure to adequately monitor the subsidiary equipment inventory records. The University should take a complete physical inventory of equipment. In addition, the University should establish appropriate procedures to strengthen internal accounting controls and to ensure that assets are safeguarded against loss from unauthorized use or disposition.
GEORGIA SOUTHERN UNIVERSITY
Finding Control Number: FS-539-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
For the year under review, an examination of all individually significant items and 38 randomly selected items was utilized to test the accuracy and validity of the equipment inventory records. The result of our testing procedures disclosed that two items, with a total cost of $294,279.00, were surplused and had not been deleted in the general ledger or subsidiary equipment inventory records.
These discrepancies occurred because the University's internal control procedures regarding deletions and physical equipment inventory counts were not operating properly. The University should establish appropriate procedures to strengthen these internal accounting controls to ensure that assets are safeguarded against loss from unauthorized use or disposition.
FLOYD COLLEGE
Finding Control Number: FS-573-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
An equipment inventory sample of two hundred thirty eight (238) randomly selected items was utilized to test the accuracy and validity of the College's equipment inventory records. The results of our testing disclosed the following exceptions:
(1) Three (3) laptop computers could not be located.
(2) Nine (9) computers identified by the College as being obsolete and surplused were not removed from the inventory records. The College could not provide adequate documentation verifying these items had been surplused. D-20

---------- State of Georgia - - - - - - - - -
Findings and Questioned Costs
For the Fiscal Year Ended June 30, 199B
FINANCIAL STATEMENT FINDINGS
These deficiencies occurred because of management's failure to adequately monitor the subsidiary equipment inventory records. The College should establish appropriate procedures and strengthen internal controls to ensure that assets are safeguarded against loss from unauthorized use or disposition. In addition, management should ensure that adequate documentation is maintained for all surplused items.
GEORGIA MILITARY COLLEGE
Finding Control Number: FS-590-98-09 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
The College was unable to provide subsidiary fixed assets records or other historical cost evidence supporting the balance for general fixed assets. Proper internal controls necessitate the maintenance of subsidiary records for general fixed assets along with periodic comparisons of physical counts with those subsidiary listings.
This condition resulted from management's failure to adequately monitor and implement procedures to ensure that all general fixed assets are properly recorded and accounted for.
The College should take appropriate action to provide for an adequate property management system for general fixed assets which would include subsidiary records that reflect an inventory of land, buildings, and equipment owned by the College. Such records should include but not be limited to (1) date acquired, (2) acquisition cost, (3) estimated replacement cost, (4) location and description. Detailed records should be maintained for all deletions and additions to the Plant Fund. The College should also implement procedures to periodically perform a physical inventory of all general fixed assets and reconcile these counts to the subsidiary records.
ALBANY TECHNICAL INSTITUTE
Finding Control Number: FS-820-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management
For the year under review, an examination of the equipment inventory records for the Institute's general fixed assets revealed the following deficiencies:
(1) Forty-six (46) equipment items were selected to test the accuracy of the Institute's general fixed asset records. These items contained a value of $867,405.99 and were selected for the purpose of locating the equipment as recorded in the inventory records. Five (5) items totaling $75,381.30 were not located.
(2) Two (2) items physically on hand could not be traced back to the inventory records.
(3) Equipment inventory records were not updated for deletions in a timely manner.
The discrepancies identified above were caused by the Institute's failure to follow guidelines for maintaining equipment inventories. The Institute should establish the necessary procedures to ensure that equipment inventories are maintained in accordance with provisions of the State Property Management System Manual.
D-21

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Rndings and Questioned Costs
For the Rscal Year Ended June 30. 1990
FINANCIAL STATEMENT FINDINGS
COLUMBUS TECHNICAL INSTITUTE
Finding Control Number: FS-828-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures
For the year under review, the Institute's property management procedures were found to be inadequate in regard to maintaining equipment inventory. The following deficiencies were noted:
(1) The July 1, 1997, PROPS 8034AG report (Property Records System Inventory Report in Decal Sequence) and activity reflected in the PROPS 8113RA report (Property Records System Transaction History File Report) did not reconcile to the June 30, 1998, PROPS 8034RA report (Property Records System Inventory Report in Decal Sequence).
(2) The physical inventory was not reconciled to the PROPS (Property Records System).
Columbus Technical Institute should establish controls to ensure that equipment inventories are maintained in accordance with the State Property Management System Manual.
DEKALB TECHNICAL INSTITUTE
Finding Control Number: FS-830-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Improper Recording of Capital Leases
For the year under review, an examination of the General Fixed Assets Account Group disclosed that the Institute failed to record assets acquired through capital leases on the equipment inventory records as prescribed by The Accounting Procedures and Instruction Manual issued by the State Auditor. State agencies (which includes technical institutes) are required to record assets acquired through capital lease agreements at the time of purchase.
This condition occurred because management disregarded the provisions of the State regulations regarding capital leases. The Institute should establish controls to ensure that assets acquired through capital leases are recorded in accordance with the aforementioned manual.
PICKENS TECHNICAL INSTITUTE
Finding Control Number: FS-840-98-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures
For the year under review, our examination included a review of the controls utilized by Pickens Technical Institute in maintaining their property management system. The following conditions relating to inappropriate accounting practices were found to exist:
(1) Equipment purchases were not updated to the PROPS (Property Records System) for items purchased in 1996, 1997 and 1998.
(2) A physical inventory of equipment had not been conducted within the last two years.
The Institute is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual. The discrepancies above were caused by the Institute's failure to follow guidelines for maintaining equipment inventories.
D-22

F;
L

- - - - - - - - - - State of GeorfJia - - - - - - - - - -

Rndings and Questioned Costs For the Fiscal Year Ended June 30. 199B

FINANCIAL STATEMENT FINDINGS

The Institute should follow established procedures to ensure that equipment inventory records are maintained in accordance with the State Property Management System Manual.

GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION

Finding Control Number: FS-977- 98-04

GENERAL FIXED ASSETSIPROPERTY MANAGEMENT

,__

Inadequacies in the Operation of Property Management System

Our examination included a review of the internal accounting controls utilized by the Georgia Public Telecommunications Commission in maintaining their State Property System and also included testing the system for compliance with State Laws and Regulations. The following conditions relating to inappropriate accounting practices associated with inventory records were found to exist:

(I) Certain equipment additions were not supported by adequate documentation.

(2) Certain equipment items that were surplused during the year were not taken off the inventory reports at fiscal year end.

(3) Certain equipment deletions were not supported by adequate documentation.

In addition, 194 equipment items were selected to test the accuracy of the Commission's property management records. These items contained a value of $34,579,496.68 out of a population of $64,270,413.63 and were selected for the purpose of locating the equipment as recorded in the inventory records. The following deficiencies were noted:

(1) 108 items totaling $1,493,130.87 could not be located.

(2) 5 items did not have decal numbers attached. However, items were identified by serial numbers or descriptions.

(3) 2 items were located at locations other than the one listed on the inventory report.

The Commission is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual. The discrepancies identified above were caused by the Commission's failure to follow guidelines for maintaining equipment inventories.

As a result of the discrepancies identified above, we were unable to determine the validity of the total equipment inventory valuation contained in the inventory records which comprise the General Fixed Assets Account Group.

The Commission should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with provisions of the State Property Management System Manual.

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY

Finding Control Number: FS-8504-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group

The Northwest Georgia Regional Educational Service Agency does not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets
D-23

- - - - - - - - - State of Georgia - - - - - - - - -
Rndings and Questioned Costs
For the Fiscal Year Ended JUI1e 30. 199B
FINANCIAL STATEMENT FINDINGS
Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8524-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The North Georgia Regional Educational Service Agency does not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose fmancial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8544-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The Pioneer Regional Educational Service Agency does not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose fmancial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8564-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The Metropolitan Regional Educational Service Agency does not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
D-24

~"'-
I, ~

- - - - - - - - - State of G e o r g i a - - - - - - - - -

Rndings and Questioned Costs
For the Rscal Year Ended June 30. 199B

FINANCIAL STATEMENT FINDINGS
NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8584-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The Northeast Georgia Regional Educational Service Agency does not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of the General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8604-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The West Georgia Regional Educational Service Agency does not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
OCONEE REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8664-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The Oconee Regional Educational Service Agency does not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose fmancial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8724-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
In the year under review, the Agency did not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the fmancial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish
D-25

- - - - - - - - State of Georgia - - - - - - - -
Rl1dir\gs end QuesNol1cd Costs
For the Rscal Year Ended June 30, 1993
FINANCIAL STATEMENT FINDINGS
accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
HEART OF GEORGIA SCHOOL SYSTEMS REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8764-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group The Heart of Georgia School Systems Regional Educational Service Agency does not maintain a system-wide General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting control and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8804-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group The First District Regional Educational Service Agency does not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
D-26

Lf ,
T-
L
re
L
(3Federa[~~ards
(3FilldlnBs and Questioned Costs

L ---------- State of Georsia ----------

Federal Awards FlJ1dings and Questioned Costs

l~
LJ

Table of Contents

For the Rscal Year Ended June 30, 1990

ENTITY CODE

ORGANIZATIONAL UNIT

PAGE NO.

401 414 415 419 427 440

503

509

518

521

533

- - ~,

539 548

550

824 830 841 918

Administrative Services, Department of Education, Department of Technical and Adult Education, Department of Medical Assistance, Department of Human Resources, Department of. Labor, Department of Colleges and Universities
Georgia Institute of Technology Georgia State University University of Georgia Albany State University Fort Valley State University Georgia Southern University Savannah State University Southern Polytechnic State University State Technical Institutes Augusta Technical Institute DeKalb Technical Institute Savannah Technical Institute Higher Education Assistance Corporation, Georgia

D-30 D-30 D-33 D-33 D-35 D-37
D-39 D-43 D-44 D-46 D-48 D-54 D-54 D-58
D-59 D-60 D-61 D-63

D-29

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Rndings and QuesNoned Costs
For the Fiscal Vcar Elided JUlIe 30, 199B
FEDERAL AWARDS FINDINGS
DEPARTMENT OF ADMINISTRATIVE SERVICES
Finding Control Number: FA-401-98-01 ALLOWABLE COSTS/COST PRINCIPLES Disallowance of Indirect Cost Recoveries Questioned Cost: $785,600.00
Our examination included a review of Federal awards received by the State of Georgia through indirect cost rates for fiscal years 1997 and 1998. To determine the allowability of the Federal awards received it was necessary to examine the underlying costs charged to cost pools. Based on this review, we have determined that the failure of the Department of Administrative Services to comply with property management standards of OMB Circular A-102 meant that the depreciation and/or use allowance costs that the State of Georgia has recovered through indirect cost, via the Statewide Cost Allocation Plan, have not been adequately supported, and thus may not be recoverable costs.
The Georgia Department of Audits has calculated a dollar amount which represents the costs the State of Georgia has recovered from the Federal Government through indirect costs based on unsupported equipment inventories at the Department of Administrative Services for fiscal years 1997 and 1998. Based on our calculation, the State of Georgia improperly collected $785,600.00 from the Federal government through indirect costs based on the Department's unsupported equipment inventories.
DEPARTMENT OF EDUCATION
Finding Control Number: FA-414-98-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination included a review of the internal accounting controls utilized by the Department of Education in maintaining their property management system. This review also included testing the system for compliance with Federal laws and regulations. The following conditions relating to inappropriate accounting practices were found to exist:
1. The Department is required by State property management policies to reconcile current year additions as reflected in the equipment inventory records to the general ledger equipment expenditure accounts. This reconciliation was performed, however, the reconciliation reflected an unexplained difference of $314,980.00 at June 30, 1998.
2. Three (3) additions for current year equipment purchases were updated incorrectly onto the equipment inventory records by an amount of $1,508.00 (net).
3. Equipment inventory items were deleted from the inventory system without adequate supporting documentation or proper authorization. After two years of appearing on an agency's equipment inventory records as missing, the State's property management policies allow missing items to be deleted from agency equipment inventory records given that proper documentation and authorization for deleting the missing item is on hand at the agency. As part of this deletion process at the Department of Education, Departmental policy requires DE form 0082 Report ofLost, Damaged, Destroyed or Stolen Property to be completed by personnel reporting the equipment as missing. Based on the State's two year deletion rule, twenty-eight (28) items totaling $73,721.74 were deleted from the inventory records without completing DE form 0082 or providing other documentation. (See point number 3 below.)
4. Five (5) equipment items acquired through installment purchases were included on the equipment inventory records at an incorrect amount. The difference in the acquisition cost and the amount recorded on the inventory records amounted to $3,294.72 (net). These same equipment items were reported in the prior year Management Report as being recorded incorrectly. D-30

i!'i
L

- - - - - - - - - - State of Georgia - - - - - - - - - -

Federal Awards Hidings and Questioned Costs
For the Fiscal Year Ended June 30, 199B

FEDERAL AWARDS FINDINGS

In addition, five-hundred-thirty-eight (538) equipment items were selected from certain locations to test the accuracy of the Department's property management records. These items contained a value of $1,881,435.35 out of a population of $17,052,823.63 at the tested locations and were selected for the purpose of locating the equipment as recorded in the inventory records. Total general fixed assets of the Department amounted to $44,563,725.09. The following deficiencies were noted:
1. Sixty-three (63) items totaling $250,274.22 could not be located. Four (4) inventory units/locations out of the seventeen (17) inventory units/locations included in the sample accounted for fifty-one (51) of the missing items. These inventory units/locations were Location E14-100 Policy and Communications (4 missing items out of 6 items sampled for this location), Location E22-200 Curriculum (17 missing items out of 39 items sampled for this location), Location E65-700 Instructional Technology (21 missing items out of 54 items sampled for this location), and Location E65-800 Research, Development, and Accountability (9 missing items out of24 items sampled for this location).
When attempting to locate missing items, interviews with employees responsible for the equipment items revealed that items are often moved between inventory units/locations and employees without any transfer forms or other means of documentation (for example; a log for employee checkout of laptop computers within the inventory unit/location) being completed and filed with appropriate property management personnel. The Technology Division is responsible for documenting the movement of equipment items between inventory units/locations and also into surplus.
2. Two (2) items remained on inventory although proper documentation was on hand indicating that the items should have been deleted. One item in the amount of $10,872.00 was surplused. The other item in the amount of$2,843.00 was reported as stolen.
3. Eight (8) items totaling $24,216.50 were located, however, these items were recorded as missing on the equipment inventory records. These items were located in the same inventory unit/location which reported the items missing for purposes of removal from inventory records in accordance with the State's two year deletion rule. The inventory units/locations were Location E31-500 Federal Projects (3 items) and Location E65-700 Instructional Technology (5 items).
4. Four (4) items were found in locations other than the location indicated in the equipment inventory records.
Also, during the physical inspection testing, three (3) items of equipment were located which were not included in the equipment inventory records.
The Department is required to maintain equipment inventories in accordance with provisions of paragraph 32 of OMB's Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (Common Rule). The discrepancies identified above were caused by the Department's failure to follow guidelines for maintaining equipment inventories.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with provisions of OMB's Common Rule.

D-31

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs For the Fiscal Year Ended June 30. 1990
FEDERAL AWARDS FINDINGS
Major Federal Programs/Awards Atrected:
U. S. Department of Education Title I Grants to Local Educational Agencies - CFDA No. 84.010 Special Education Cluster Special Education - Grants to States - CFDA No. 84.027 Special Education - Preschool Grants - CFDA No. 84.173 Vocational Education - Basic Grants to States - CFDA No. 84.048
Federal Agencies With Other Atrected Programs:
U. S. Department of Agriculture U. S. Department of Education
Finding Control Number: FA-414-98-02 SUBRECIPIENT MONITORING Subrecipient Audit Reports Not Received Within the Required Time Period
As part of our examination, we reviewed tracking documents used by the Department of Education and Office of School Readiness to determine the status of subrecipient audit reports for the year ended June 30, 1997. Of the 474 subrecipients identified on the tracking documents, 66 had not submitted their audits within the thirteen month period as required by OMB Circular A-133. This noncompliance is due to subrecipient audits not being performed in a timely manner.
A subsequent review of the status of the 66 audits not submitted by the due date, indicated that all had been submitted by January II, 1999. It was noted during our examination that the Department of Education utilized a program review staff for interim compliance reviews of all subrecipients in accordance with the provisions of OMB Circular A-133.
Major Federal Programs/Awards Atrected:
U. S. Department of Education Title I Grants to Local Educational Agencies - CFDA No. 84.010
Special Education Cluster Special Education - Grants to States - CFDA No. 84.027 Special Education - Preschool Grants - CFDA No. 84.173
Vocational Education - Basic Grants to States - CFDA No. 84.048 Goals 2000 - State and Local Education Systemic Improvement - CFDA No. 84.276 Innovative Education Program Strategies - CFDA No. 84.298
Federal Agencies With Other Atrected Programs:
U. S. Department of Agriculture Corporation for National and Community Service U. S. Department of Defense U. S. Department of Education U. S. Department of Health and Human Services
D-32

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Federal Awards Rndings and QuesNoned Costs
For the Rscal Year Ended June 30, 1996
FEDERAL AWARDS FINDINGS
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
Finding Control Number: FA-415-98-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination included a review of the internal accounting controls utilized by the Department of Technical and Adult Education in maintaining their property management system. This review included testing the system for compliance with State and Federal laws and regulations. The following condition relating to inappropriate accounting practices was found to exist:
(1) Two (2) equipment items totaling $34,121.10 acquired through capital leases were not included on the equipment inventory records.
In addition, thirty (30) equipment items were selected to test the accuracy of the Department's property management records. These items contained an aggregate value of $203,366.42 out of a population of $8,007,022.75 and were selected for the purpose of locating the equipment as recorded in the inventory records. The following deficiencies were noted:
(1) Eight (8) items totaling $50,470.21 could not be located.
(2) One (1) item with a cost of$3,318.00 was disposed of but was not removed from the inventory records.
(3) Two (2) items were reportedly checked out to be used in remote locations. However, no evidence could be provided that these two items were checked out for that purpose.
(4) One (1) item with a cost of $19,794.00 was traded-in during fiscal year 1996, but has not been removed from the inventory records.
Also, during the physical inspection testing, four (4) items of equipment were located which were not included in the equipment inventory records.
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual and paragraph 32 of OMB's Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (Common Rule). The discrepancies identified above were caused by the Department's failure to follow guidelines for maintaining equipment inventories.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with State and Federal regulations.
Federal Program/Awards Affected: U. S. Department of Education
Vocational Education - Basic Grants to States (CFDA 84.048)
DEPARTMENT OF MEDICAL ASSISTANCE
Finding Control Number: FA-419-98-01 ALLOWABLE COSTS/COST PRINCIPLES Deficiencies in Operation of Medicaid Claims Processing System Questioned Costs: $1,108,829.50
An examination of the control system in place at the Department of Medical Assistance's (DMA) contracted claims processor, Electronic Data Systems (EDS), disclosed that controls are in place to detect and prevent payment of most
D-33

- - - - - - - - - State of Georgia - - - - - - - - -
Federal AWards Rndings and Questioned Costs
For the Fiscal Year Ended June: 30. 199B
FEDERAL AWARDS FINDINGS
claims that do not meet the requirements for allowability under the regulations governing the Community Mental Health Service Program and Mental Retardation Waiver Program. However, our testing of the controls (edit checks) did reveal the following deficiencies:
(1) DMA Policies and Procedures prohibit reimbursement for Child and Adolescent Day Treatment services rendered to persons over the age of 17. However, the edit check in place during fiscal year 1998 only prevents payment to a provider for this service rendered to persons older than 21 years. As a result, the DMA paid two unallowable claims during fiscal year 1998 totaling $2,911.17.
(2) DMA Policies and Procedures limit payment for Adult Day Treatment services to 100 units per month. However, there was no edit check in place to detect such excess billings. As a result, the DMA paid 112 unallowable claims during fiscal year 1998 totaling $22,011.72.
(3) DMA Policies and Procedures for the Mental Retardation Waiver Program state that the maximum number of allowable hours per year for Respite Care is 312. However, the edit check designed to monitor this limit only restricts payment to 416 hours per year. As a result, the DMA paid unallowable claims during fiscal year 1998 totaling $4,677 .46.
A review of 18,276 Medicaid claims representing $1,764,457.43 paid to nine Community Service Boards during the first six months of fiscal year 1998 showed that some of these claims were unallowable. The unallowable claims represented $1,079,229.15 in Medicaid payments to the nine providers. The claims were unallowable for one or more of the following reasons:
(I) The recipients' medical records did not contain sufficient documentation to indicate that the service was provided.
(2) Recipients' Individual Service Plans (ISPs) were not signed by a physician.
(3) Recipients' ISPs were not valid on the date of service billed.
(4) The service billed was not authorized on ISPs or did not state the number of authorized units.
(5) The recipients' medical records did not document all the necessary clinical treatment information required by Department of Human Resources (DHR) or DMA standards.
(6) Documentation included in the recipients' medical records did not show the treatment was related to the goals stated on the ISPs as the DHR standards require.
The Department of Medical Assistance should recover from providers all amounts that were paid for claims that were not allowable under the programs. The Department of Medical Assistance should also, in coordination with Electronic Data Systems, implement the appropriate controls to ensure that all claims are processed in accordance with the applicable policies and procedures governing the programs.
Federal Programs/Awards Affected Medicaid Cluster
State Medicaid Fraud Control Units - CFDA No. 93.775 State Survey and Certification of Health Care Providers and Suppliers - CFDA 93.777 Medical Assistance Program - CFDA No. 93.778
D-34

F
L

- - - - - - - - - - - State of Geot'gia - - - - - - - - - - -

Federal Awards Rf\dif\gs end Questiof\ed Costs

f
~

For the Fiscal Year Ended June 30, 1995

FEDERAL AWARDS FINDINGS
Finding Control Number: FA-419-98-02 PROCUREMENT AND SUSPENSION AND DEBARMENT Inadequate Internal Controls and Compliance Deficiencies Medical Assistance Program (CFDA No. 93.778)
Internal control and compliance testing procedures performed on the Medical Assistance Program revealed deficiencies relating to Procurement, Suspension and Debarment procedures. There was no control in place to determine if any contractor paid from Federal funds had been debarred, suspended or otherwise excluded from participation in Federal Award programs. In addition, compliance testing performed on contracts revealed that no suspension or debarment certifications were required from contractors.
Management should familiarize themselves with Federal regulations dealing with the Medical Assistance program in order to develop adequate internal control procedures designed to ensure compliance with applicable Procurement, Suspension and Debarment regulations.
DEPARTMENT OF HUMAN RESOURCES
Finding Control Number: FA-427-98-01 ELIGIBILITY Improper Benefit Payments Temporary Assistance to Needy Families (CFDA 93.558) Questioned Cost: $1,688.00
A sample of two-hundred-forty-five (245) client case files was selected from the Temporary Assistance to Needy Families and Family Support Payments to States Programs at certain county Department of Family and Children Services (DFACS) offices to determine if benefit payments were made within program guidelines. These items contained a value of $65,465.00 out ofa sample population of$141,744,986.00. Our examination revealed that four client folders could not be located and two client files were incomplete which resulted in $1,688.00 of known questioned costs. A projection ofthese errors to the total population resulted in likely questioned costs in excess of $10,000.00. These errors were caused by DFACS management's failure to ensure that client files were properly maintained at the county DFACS offices.
Failure to properly maintain client files results in undocumented expenditures which can result in direct material effects on the financial statements.
The Department of Human Resources should ensure that procedures are in place to provide for proper maintenance of client files.
Finding Control Number: FA-427-98-02 ELIGIBILITY Improper Benefit Payments Child Care and Development Block Grant (CFDA 93.575) Child Care Mandatory and Matching Funds of the Child Care and Development Fund (CFDA 93.596) Questioned Cost: $2,345.00
A sample of two-hundred-twelve (212) benefit transactions was selected from the Child Care and Development Block Grant Program and Child Care Development Fund at certain county Department of Family and Children Services (DFACS) offices to determine if benefit payments were made within program guidelines. These items contained a value of $49,403.00 out of a sample population of $70,320, 124.07. Our examination revealed that twelve payments did not meet program requirements which resulted in $2,345.00 of known questioned costs. A projection of these errors to the total population resulted in likely questioned costs in excess of $10,000.00. These errors were caused by DFACS management's failure to ensure that required documents were included and maintained in client files at the county DFACS offices.

D-35

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs For the Fiscal Year Ended June 30, 199B
FEDERAL AWARDS FINDINGS
Failure to properly maintain client files in accordance with program requirements can result in direct material effects on the financial statements.
The Department of Human Resources should ensure that procedures are in place to provide for proper maintenance of client files and that all required data for eligibility determination is included in the file.
Finding Control Number: FA-427-98-03 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination included a review of the internal accounting controls utilized by the Department of Human Resources in maintaining their property management system and also included testing the system for compliance with Federal laws and regulations. This examination included a sample of three- hundred-twenty-eight (328) items at certain locations for testing the accuracy of the Department's general fixed asset records. The sample items contained a value of $1,242,046.72 out of a population of $19,718,770.44 at the tested locations and were selected for the purpose of locating the equipment. Total general fixed assets of the Department amounted to $148,910,478.56. The following deficiencies were noted:
1. Forty-three (43) items totaling $98,960.62 could not be located.
2. Thirty-one (31) items totaling $63,711.81 were surplused, but were not removed from the equipment inventory records.
3. Twenty-two (22) items did not have decal numbers attached. However, items were identified by serial numbers or descriptions.
4. One (1) item was located with the wrong decal attached.
5. Four (4) items totaling $20,138.13 were documented as missing or stolen, but were not correctly classified as missing or stolen on the equipment inventory records.
The Department is required to maintain equipment inventories in accordance with provisions of paragraph 32 of OMB's Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (Common Rule). The discrepancies identified above were caused by the Department's failure to follow guidelines for maintaining equipment inventories.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with provisions of OMB's Common Rule.
Major Federal Programs/Awards Affected:
U. S. Department of Agriculture Food Stamps - CFDA 10.551/561
U. S. Department of Education Rehabilitation Services - Vocational Rehabilitation Grants to States - CFDA 84.126
U. S. Department of Health and Human Services Temporary Assistance for Needy Families - CFDA 93.558 Child Care and Development Block Grant - CFDA 93.575 Child Care Mandatory and Matching Funds of the Child Care and Development Fund - CFDA 93.596 Child Welfare Services - State Grants - CFDA 93.645 Foster Care - Title IV-E - CFDA 93.658 Adoption Assistance - CFDA 93.659
D-36

- - - - - - - - - - State of GeorfJia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs
For the Fiscal Year Ended June 30. 1996

FEDERAL AWARDS FINDINGS

DEP ARTMENT OF LABOR

Finding Control Number: FA-440-98-01 ELIGIBILITY Inadequate Documentation to Support Eligibility Determinations Employment and Training Assistance - Dislocated Workers (CFDA 17.246) Job Training Partnership Act (CFDA 17.250) Questioned Costs: $2,091.98

The responsibility for eligibility determination for the Employment and Training Assistance - Dislocated Workers and Job Training Partnership Act programs rest with the administrative agents of each of the sixteen (16) Service Delivery Areas within the State of Georgia and the Department of Labor's Field Service Offices. The eligibility determination process is administered in accordance with guidelines established by the Job Training Division of the Department of Labor ..

Our examination included a review of the internal accounting controls utilized by the Service Delivery Areas and the Department of Labor in administering the above programs. As part of this examination, certain files of those participants enrolled during the period of May 1, 1997 through April 30, 1998 were reviewed to determine whether established criteria for eligibility determination had been met. From a total of 31,624 newly enrolled participants, a review of 403 files disclosed the following:

Job Training Partnership Act

Questioned Cost

(I) One (I) file could not be located to verify compliance with eligibility determination
(2) One (I) file did not contain adequate documentation to verify compliance with selective service registration

$ 2,000.00 $ 91.98

A projection of these errors to the total population resulted in likely questioned costs in excess of $10,000.00. These errors were caused by the administrative agent's failure to ensure that all client files were properly maintained at their office and failure to properly determine eligibility for one participant within the prescribed guidelines.

Failure to properly maintain client files and determine eligibility results in undocumented expenditures which can result in direct material effects on the fmancial statements.

The Department of Labor and the respective administrative agents should review established procedures to ensure that all client files are on hand and that eligibility determinations are made in accordance with program guidelines.

Finding Control Number: FA-440-98-02 ELIGIBILITY Improper Benefit Payments Unemployment Insurance (CFDA 17.225) Questioned Costs: $153.00

Our examination included a review of the internal accounting controls utilized by the Department of Labor in administering the Unemployment Insurance program. As part of this examination, a sample of one-hundred-fifty-three (153) checks containing a value of $34,743.00 was selected to determine whether benefit payments were made within program guidelines. Total unemployment benefit checks written during the fiscal year amounted to 1,525,686 and represented a dollar value of $275,21 0,386.00 which results in an average benefit check of approximately $180.00.

Our examination revealed that one (I) check for $153.00 was written to a claimant receiving worker's compensation which made the claimant ineligible for unemployment insurance benefits. A projection of this error to the total population
D-37

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Rscal Year Ended June 30. 199B
FEDERAL AWARDS FINDINGS
resulted in likely questioned costs in excess of $10,000.00. This error was caused by a claim examiner's oversight in determining eligibility for Unemployment Insurance benefit payments. Failure to properly determine eligibility payments results in improper expenditures which can result in direct material effects on the financial statements. The Department of Labor should ensure that established procedures are followed in determining whether claimant eligibility is within program guidelines. Finding Control Number: FA-440-98-03 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Unemployment Insurance (CFDA 17.225) Questioned Costs: $1,326.00 Our examination included a review of the internal accounting controls utilized by the Department of Labor in maintaining their property management system for the Unemployment Insurance program. This review consisted of testing the system for compliance with Federal laws and regulations, and included the selection of one-hundred-six (106) equipment items to test the accuracy of the program's property management records. These items contained a value of $793,644.18 out of a population of $19,625,083.05. One (1) item, a computer terminal purchased on June 1, 1987 with a value listed at $1,326.00, could not be located. A projection of this error to the total population resulted in likely questioned costs in excess of $10,000.00. The Department is required to maintain equipment inventories in' accordance with provisions of paragraph 32 of OMB's Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (Common Rule). The Department of Labor should follow established procedures to ensure that equipment inventories are maintained in accordance with provisions of OMB's Common Rule.
D-38

v
L

- - - - - - - - State of Georgia - - - - - - - -

Federal Awards Rndings and Questioned Costs

iTt
L

For the Rscal Year Ended June 30, I99B

0-.
FEDERAL AWARDS FINDINGS

GEORGIA INSTITUTE OF TECHNOLOGY (*)

Finding Control Number: FA-503-98-01 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Reports Not Issued in a Timely Manner

Statement of Condition

Agency
u.s. Army
Dept. of Health and Human Services NASA NSF
U.S. Air Force
U.S. Air Force U.S. Navy U.S. Navy U.S. Army
U.S. Navy

CFDA No.
12.0FA
93.859
43.0FA 47.0FA
12.0FA
12.0FA 12.300 12.300 12.0FA
12.300

Contract No. DAAJ09-96-D-0012 lROlGM54401-01Al
NCC2-945 DGE9616055
F33615-96-C-1327 F08635-97-D-OO 16 NOOOI4-95-1-1016 NOOOI4-95-1-1016 DAAJ09-96-D-00 12 NOOOI4-95-1-1016

GTRC/GIT Ref. No.
A-5431
G-33-X50

Report Monthly Performance and
Cost Report/A005 Annual Progress Report

E-16-N29 T-87-102
A-9576
A-5476 G-41-X49 G-41-X49 A-5327
G-41-X49

Performance Report Annual Progress Report
covering 9/16/968/31/97 Project Planning ChartlA002 Monthly StatusReport ASSERT Report for Al-1 Final TechnicalReport Performance and Cost Report/A005 Final Financial Status Report (SF 269)

Report No. 8
2 N/A
178 10 3 4 14 N/A

Due Date 9/20/97

Date Mailed 9/22/97

10/31/97 11/12/97

10/31/97 11/12/97 11/30/97 2/25/98

5/25/98 5/29/98

4/20/98 5/31/98 5/31/98 9/15/97

4/21/98 9/14/98 9/14/98 9/22/97

5/31/98 3/26/99

Numerous reports required by grant and contractual agreements entered into by GTRC and various Federal agencies were not filed in a timely fashion, as specified in the grant and contractual agreements. A listing of reports not filed in a timely fashion for the grants and contracts tested by us is included above.

Criteria

The reporting compliance requirement requires the submission of certain reports in accordance with the grants and contracts entered into by GTRC which contain specific dates and deadlines for submission. Frequently, these reports are the only required output of a given contract and, consequently, need to be filed in a timely fashion.

As all of the reports listed above were ultimately submitted, the only effect of untimely filing is the possible delay of other projects which were related to GTRC and GIT GRANTS AND CONTRACTS. No other effect is noted with respect to GTRC and GIT.

The typical cause of untimely filing, as stated to us by GTRC and GIT personnel, was the unavailability of data necessary for the completion of the required reports.
(*) FEDERAL COMPLIANCE REQUIREMENTS FOR THE RESEARCH AND DEVELOPMENT CLUSTER OF THIS ORGANIZATIONAL UNIT WERE AUDITED BY OTHER AUDITORS. D-39

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs
For the Rscal Year Ended June 30, 1995

FEDERAL AWARDS FINDINGS

Recommendation

All efforts should be made by GTRC and GIT to ensure that all required contractual deliverables are submitted to the contracting agencies in a timely fashion.

Questioned Cost

As all of these reports were ultimately submitted, no costs are questioned.

Finding Control Number: FA-503-98-02 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Log and Track Required Reports

Agency U.S. Air Force
U.S. Air Force U.S. Air Force
U.S. Air Force
U.S. Air Force
U.S. Army U.S. Army U.S. Army U.S. Army U.S. Army U.S. Army
U.S. Air Force

CFDANo.

Contract No.

12.0FA

F33615-93-C-1327

12.0FA 12.0FA

F33615-93-C-1327 F33615-93-C-1327

12.0FA

F33615-93-C-1327

12.0FA

F33615-93-C-1327

12.0FA 12.0FA 12.0FA 12.0FA 12.0FA 12.0FA
97.0FA

DAAA21-94-D-0005-0002 DAAA21-94-D-0005-0002 DAAA21-94-D-0005-0002 DAAA21-94-D-0005-0002 DAAA21-94-D-0005-0002 DAAA21-94-D-0005-0002
F09603-89-G-0077 -0037

GTRC/GIT Ref. No.
A-9576
A-9576 A-9576
A-9576
A-9576
A-5421 A-5421 A-542 1 A-5421 A-5421 A-5421
A-9093

Report Contract Funds
Status Report!A005 Presentation Material/A006 Still Photo
Coverage/A007 Interim Report!
System Design Report!A008 ACIA/CIPSS Software/Report! BOOI Vendor Manuals Theory of Operations Procedures Schematics Block Diagrams Training Materials for Operation and Maintainers System/Segment Specification/AOOD

Statement of Condition

Required reports are logged and tracted by GTRC and GIT on a schedule of deliverables. GTRC and GIT did not include the above reports on this schedule. Therefore, submission of these reports is not being monitored.

Criteria

The reporting compliance requirement requires the submission of certain reports in accordance with the grants and contracts entered into by GTRC.

GTRC and GIT's system for ensuring timely and proper filing was not operating adequately with respect to these reports. Required reports may not be submitted timely, if at all.
D-40

L - - - - - - - - - - State of GeorBia - - - - - - - - - -

Federal Awards Findings and Questioned Costs

L

For the Rscal Year Ended June 30. 199B

L FEDERAL AWARDS FINDINGS

L Human error caused these reports to be omitted from the schedule of deliverables.

Recommendation

GTRC and GIT should develop a control to ensure all required reports are input into the schedule of deliverables.

Questioned Costs

No costs are questioned with respect to this finding.

Finding Control Number: FA-503-98-03 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Log and Track Required Reports

Agency U.S. Army

CFDANo. 98.0FA

Contract No. DAAHOI-95-A-031

GTRC/GIT Ref. No. A-9993

Report Program Progress
Report!AO19

Statement of Condition

Required reports are logged and tracked by GTRC and GIT on a schedule of deliverables. The above report is required to be submitted at least two times but is listed only once on the schedule of deliverables. Therefore, the submission of this report is not being adequately monitored.

The reporting compliance requirement requires the submission of certain reports in accordance with the grants and contracts entered into by GTRC.

GTRC and GIT's system for monitoring the filing of required reports was not operating adequately with respect to these reports.

Reports required to be submitted more than once based on the occurrence of certain events are only input into the schedule of deliverables once based on common GTRC and GIT practice. Recommendation GTRC and GIT should input a separate deliverable into the schedule of deliverables for each event which triggers a required submission. Questioned Costs No costs are questioned with respect to this finding.
D-41

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs
For the Fiscal Year Ended June 30. 199B

FEDERAL AWARDS FINDINGS

Finding Control Number: J!A-503-98-04 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Log and Track Required Reports

Agency U.S. Army

CFDANo.

Contract No.

98.0FA

DASG60-95-C-000 I

GTRC/GIT Ref. No.
A-9894

Statement of Condition

The due date of the Scientific and Technical Report Summary/A002 was not specifically noted in the contract. GTRC and GIT could not locate any documentation to support the due date included on the schedule of deliverables. In addition, this due date is not consistent with those of other required reports or with GTRC and GIT's practices. Therefore, this report may not have been filed on a timely basis.

Criteria

The reporting compliance requirement requires the submission of certain reports in accordance with the grants and contracts entered into by GTRC.

This report may not have been filed timely.

Human error caused this erroneous due date to be input into the schedule of deliverables.

Recommendation

GTRC and GIT should develop a control to ensure that all due dates are properly documented and input into the schedule of deliverables.

Questioned Costs

No costs are questioned with respect to this finding.

Finding Control Number: FA-503-98-05 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Report Not Submitted

Agency U.S. Air Force

CFDANo.

Contract No.

12.0FA

F09603-95-G-0008-00 14

GTRC/GIT

Ref. No.

Report

A-5305

Test Inspection Report/AOOH

Statement of Condition

Some required reports are due based on the occurrence of certain events. Events occurred which would require the submission of the above report during the year ended June 30, 1998. This report was not submitted during that year.

D-42

L - - - - - - - - - State of Geot'gia - - - - - - - - -

Federal Awards FlI1dings and Questioned Costs

L

For the FISCal Year Ended June 30, 199B

L..." L
L

FEDERAL AWARDS FINDINGS
Criteria The reporting compliance requirements require the submission of certain reports in accordance with the grants and contracts entered into by GTRC. Effect GTRC and GIT's system for ensuring timely and proper filing was not operating adequately with respect to this report.

The typical cause of untimely filing, as.stated by GTRC and GIT personnel, was the unavailability of data necessary for the completion of the required report.
Recommendation
All efforts should be made by GTRC and GIT to ensure that all required contractual deliverables are submitted to the contracting agencies in a timely fashion.
Questioned Costs
No costs are questioned with respect to this finding.
GEORGIA STATE UNIVERSITY
Finding Control Number: FA-509-98-01. REPORTING Incorrect Student Payment Summary Report Student Financial Aid Cluster Program
Our examination of the Federal Pell Grant Program for the 1996-97 award year disclosed that the University's authorized Pell Grant award amount was $6,099,655.00. This amount represents the total Pell Grant Program expenditures as indicated on the U. S. Department of Education Student Payment Summary (SPS) report for the 1996-97 award year. However, the University actually incurred expenditures of $6,189,861.00. The University did not complete its reconciliation of the SPS report to institutional records until February 1998, well after the U. S. Department of Education's September 30, 1997 deadline. In order to be reimbursed for the excess Pell Grant expenditures, the University, in conformity with Federal Statutes, must certify the validity of these payments to the U. S. Department of Education. The Federal Agency can then institute an upward adjustment to the 1996-97 authorized amount in order to make the funds available to the University.
Federal Programs/Awards Affected:
Student Financial Aid Cluster Program U. S. Department of Education Pell Grant Program (CFDA 84.063)

D-43

- - - - - - - - - State of GeorfJia - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Rscal Year Ended June 30. 1996

FEDERAL AWARDS FINDINGS

UNIVERSITY OF GEORGIA (*)

Finding Control Number: FA-518-98-01 REPORTING Technical Reports Not Properly Filed

Condition: Approximately 10% of the grants included technical reports which were not filed timely. This percentage represents 5 to 50 grants selected for testing.

The following table lists the technical reports not filed timely:

Budget Number

CFDA#

Date Due

Date Submitted

25-26-GC283-00 1 25-26-GC300-00 1 25-26-GD322-002 1O-31-RE581-025 10-31-RE581-271

10.203 10.203 10.203 84.R&D 1O.R&D

01-17-98 01-17-98 12-31-97 07-10-98 07-10-98

02-11-98 02-11-98 01-20-98 NONE NONE

Criteria: Attachment H of OMB Circular A-ll0 establishes requirements for monitoring and reporting program performance.

Effect: Certain principal investigators failed to comply with the applicable program performance reporting requirements, which could result in loss of federal funds.

Cause: The cause of this fmding appears to be noncompliance with existing internal control features as opposed to the absence of such controls.

Recommendation: The University should continue its efforts to ensure that the improved internal controls for the monitoring of technical reports, which were established during fiscal 1992, are being adhered to. This should be accomplished by contacting the faculty members whose reports were delinquent and reminding them of proper procedures. The University should consider developing a monthly report which lists all delinquent technical reports. This list should be submitted to the Vice President of Research so that he can monitor the timeliness of technical reporting.

Finding Control Number: FA-518-98-02 REPORTING Technical Reports Not Properly Filed

Condition: Approximately 20% of the grants selected for testing included technical reports which were not filed timely. This percentage represents 10 of the 50 grants selected for testing.

The following table lists the technical reports not filed timely:

(*) FEDERAL COMPLIANCE REQUIREMENTS OF THIS ORGANIZATIONAL UNIT WERE AUDITED BY OTHER AUDITORS
D-44

L - - - - - - - - - - State of Georgia - - - - - - - - - -

Federal Awards Rndings and Questioned Costs

L

For the Fiscal Year Ended June 30, 199B

FEDERAL AWARDS FINDINGS

r

ro,
~

Date

Date

Budget Number

CFDA#

Due

Submitted

F,
L--

1O-21-RRlOO-219

47.R&D

3/31/98

5/1/98

10-21-RR100-237

47.R&D

5/31/98

7/22/98

10-21-RR176-223

47.R&D

11/1/97

8/27/98

1O-21-RR182-196

47.R&D

12/30/97

6/15/98

1O-21-RR185-166

66.500

10/30/97

8/25/98

1O-21-RR548-014

12.800

12/31/98

4/8/98

1O-21-RR549-111

93.371

8/14/98

8/31/98

10-21-RR551-080

47.R&D

6/30/98

7/29/98

25-21-RD309-015

10.200

8/31/98

NONE

25-21-RC284-316

10.200

11/15/97

7/20/98

Criteria: Attachment H of OMB Circular A-110 establishes requirements for monitoring and reporting program performance.

Effect: Certain principal investigators failed to comply with the applicable program performance reporting requirements, which could result in loss of federal funds.

Cause: The cause of this finding appears to be noncompliance with existing internal control features as opposed to the absence of such controls.

Recommendation: The University should continue its efforts to ensure that the improve internal controls for the monitoring of technical reports, which were established during fiscal 1992, are being adhered to. This should be accomplished by contacting the faculty members whose reports were delinquent and reminding them of proper procedures. The University should consider developing a monthly report which lists all delinquent technical reports. This list should be submitted to the Vice President of Research so that he can monitor the timeliness of technical reporting.

Finding Control Number: FA-518-98-03 REPORTING Financial Reports Not Properly Filed

Condition: Approximately 2% of the grants selected for testing included technical reports which were not filed timely. This percentage represents 1 of the 50 grants selected for review.

The following table lists the technical reports not filed timely:

Budget Number

CFDA#

Date Due

Date Submitted

1O-21-RRI87-147

93.242

11/30/97

3/27/98

Criteria: Attachment H of OMB Circular A-110 establishes requirements for monitoring and reporting program performance.

Effect: The University's business office failed to comply with the applicable program performance reporting requirements, which could result in loss offederal funds.

Cause: The grant agreements for these awards have a unique reporting requirement which stipulates that quarterly or monthly financial reports are to be submitted by the business office. Financial reports of this kind traditionally are not
D-45

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and QuesNoned Costs
For the FISCal Year Ended June 30, 1993
FEDERAL AWARDS FINDINGS
prepared quarterly or monthly. Therefore, the cause of this finding appears to be due to a lack of knowledge to the required reports for these particular grants.
Recommendation: The University should strive to ensure that the required reports are submitted on a timely basis.
ALBANY STATE UNIVERSITY
Finding Control Number: FA-521-98-01 ELIGIBILITY Overpayment of Student Financial Aid Student Financial Aid Cluster Program Questioned Cost: $19,795.25
For the year under review, a sample of forty student fmancial aid files was selected to determine if fmancial aid was properly calculated and awarded to eligible students. The items sampled contained financial aid disbursements of $229,736.72 out of a population of $15,461,354.43. Our examination revealed that six students received overpayments totaling $19,795.25 as shown below.
(l) One student's award was not adjusted based on a change in the cost of attendance. The needs analysis was originally computed for an off-campus student for four quarters; however, the student moved on campus for the summer quarter which lowered the amount of financial aid need. The questioned cost of $1,592.30 resulted from management's failure to adjust the award and subsequent disbursement to the student.
(2) One student was awarded $218.35 offmancial aid in excess of the student's predetermined financial need based on estimated cost of attendance. Title IV of the Higher Education Act of 1986 states that an institution must coordinate Title IV programs with other Federal and non-Federal student financial aid programs it administers and must establish controls to preclude the awarding of assistance in excess of a student's fmancial need. This error was caused by management's failure to review the student's grant award before disbursement was made.
(3) One student was disbursed $66.00 of Federal Pell Grant Program funds in excess of the approved grant award. This error was caused by management's failure to use the correct expected family contribution amount when calculating the award for the student.
(4) One graduate student was disbursed $966.00 in Federal Pell Grant Program (FPEL) and Federal Supplemental Educational Opportunity Grant Program (FSEOG) funds. According to Federal regulations 34 CFR 690.6 and 34 CFR 676.9, a student is eligible to receive FPEL and FSEOG respectively, only if that student is enrolled as an undergraduate student. This error was caused by management's failure to adequately verify a student's academic status prior to disbursing of grant funds.
(5) Two students were disbursed a total of $16,952.60 in excess of aggregate loan limits for the Federal Direct Student Loan Program. Chapter eleven of The Federal Student Financial Aid Handbook states that students who borrow more than aggregate loan limits for which they are eligible under student fmancial aid loan programs will lose eligibility for further aid from any student financial aid program until the excess amount is repaid in full or unless other arrangements are made. This questioned cost occurred because management failed to adequately monitor aggregate loan amounts made to students.
Procedures should be implemented to ensure that student financial aid awards are properly reviewed and approved prior to disbursement. The University should contact the U.S. Department of Education regarding resolution of these questioned costs.
D-46

L - - - - - - - - - - State of Georgia - - - - - - - - - -

Federal Awards Findings and QuesNoned Costs

L

For the FISCal Year Elided JUlIe 30, 1993

L. FEDERAL AWARDS FINDINGS

Federal Programs/Awards Affected
L Student Financial Aid Cluster Program

U. S. Department of Education

I

I
L-.

Federal Supplemental Education Opportunity Grant (CFDA 84.007)

Federal Work-Study Program (CFDA 84.033)

Federal Pell Grant Program (CFDA 84.063)

Federal Direct Student Loan Program (CFDA 84.268)

Finding Control Number: FA-521-98-02 SPECIAL TESTS AND PROVISIONS Deficiencies In Student Financial Aid Refund Process Student Financial Aid Cluster Program Questioned Cost: $2,960.80

For the year under review, an examination of the University's student fmancial aid refund process revealed the following deficiencies:

(1) Refund amounts were incorrectly charged against student financial aid programs for two out of five students selected for refund testing. One incorrect refund charge of $39.90 occurred because the University failed to take into consideration all institutional costs incurred by the student. The other refund was calculated correctly; however, management failed to ensure that $108.00 ofthe refund was charged back to the Federal Direct Student Loan Program.

(2) Attendance records as well as statements from instructors were reviewed for eight students out of fortyfive who received all failing and/or incomplete grades, for Winter Quarter 1998, to ascertain if the students had dropped out and were due a refund. Four out of the eight students examined did not appear to have attended class at all or had ceased attendance prior to the end of the refund period. Failure by management to implement procedures to determine the last day of attendance in order to identify unofficial withdrawal resulted in a questioned cost of$2,812.90.

A projection of these errors to the total population resulted in a likely questioned cost in excess of $10,000.00.

The University should implement procedures to ensure that refunds are correctly calculated and applied to appropriate accounts in a timely manner and that refunds are calculated for all "unofficial" withdrawals. The University should contact the U. S. Department of Education regarding resolution of this fmding.

Federal Programs/Awards Affected

Student Financial Aid Cluster Program U. S. Department of Education Federal Pell Grant Program (CFDA 84.063) Federal Direct Student Loan Program (CFDA 84.268)

D-47

- - - - - - - - - State of Geot'fJia - - - - - - - - -
Federal Awards Rndings and Questioned Costs
For the Fiscal Year Ended June 30. 199B
FEDERAL AWARDS FINDINGS
FORT VALLEY STATE UNIVERSITY
Finding Control Number: FA-533-98-01 DAVIS-BACON ACT Failure to Monitor Labor Standards Higher Education - Institutional Aid (CFDA 84.031)
Contracts for Federally funded construction projects must contain specific provisions regarding labor standards in order to comply with regulations of the Davis-Bacon Act. The provisions of the Act require contractors and subcontractors to submit to the University, weekly, a statement of compliance with Federal wage provisions and a copy of all payrolls. Our audit of the University's Federally financed construction projects funded by the Higher Education - Institutional Aid Program, disclosed that the required labor standard provisions were not included in the contracts. In addition, the University did not require the contractors to submit weekly, either the required statement of compliance or a copy of related payrolls.
This noncompliance resulted from management's failure to properly monitor the labor standards used by the contractors and subcontractors involved with Federally funded construction projects, Procedures should be established by the University to ensure compliance with provisions of the Davis-Bacon Act. Weekly statements of compliance and copies of payrolls should be reviewed and maintained by the University as required by the Act.
Finding Control Number: FA-533-98-02 ELIGIBILITY Control Procedures Inadequate Student Financial Aid Cluster Program
For the year under review, the internal control procedures of Fort Valley State University were found to be inadequate over the Federal Student Financial Aid Cluster Program. The following weaknesses were noted in the program overall:
The student files maintained by the Financial Aid Department were not always complete due to missing award letters and lack of documentation to support cost of attendance calculations. Also, the files were not systematically organized as required. .
Some of the student files reviewed had additional award letters with dates that were not consistent with the request for that aid. In some cases, the additional awards were dated before the letter from the student requesting that aid.
In some files no request for additional aid was noted, however, the student's award was increased by the Financial Aid Department.
In some cases, the expected family contribution was reduced with inadequate documentation to justify the reduction.
Procedures were not in place to ensure awards and disbursements were made based on the student's proper enrollment status.
Procedures were not being followed or were not in place to ensure all resources are considered when awards are made to students.
Student financial aid was awarded to Financial Aid Department employees by the Financial Aid Director with no other review.
D-48

- - - - - - - - - - State of Geof'gia - - - - - - - - - -

Federal Awards Findings and Questioned Costs

L

For the Fiscal Year Ended June 30. 1996

L. . FEDERAL AWARDS FINDINGS ."

A review of the controls specific to Federal Work-Study Program revealed the following weaknesses:

Students were allowed to work and submit time sheets prior to receiving a Federal Work-Study award and/or signing a work agreement.

Numerous time sheets either were submitted with no approval or were approved prior to the last date worked as indicated on the time sheet.

During various times of the year, time sheets were requested to be forwarded to the accounting office for payment before the last day of work was to be performed.

Upon examination of the time sheets, it was noted that in some cases the supervisor's name was signed on the time sheet by someone other than the supervisor.

Of the five pay-periods requested for review, the time sheets could not be located for two of the payperiods.

The weaknesses identified in the Federal Student Financial Aid Cluster Program were a result of management's failure to perform a risk assessment of the critical areas of the program and to implement appropriate controls in the Financial Aid Department. The University should develop and implement policies and procedures to ensure adequate controls over the eligibility process. Also, the University should develop and implement a monitoring process to ensure that the controls are being followed.

Federal Programs/Awards Affected: Student Financial Aid Cluster Program
U. S. Department of Education Federal Supplemental Educational Opportunity Grant (CFDA 84.007) Federal Work-Study Program (CFDA 84.033) Federal Perkins Loan Program (CFDA 84.038) Federal Pell Grant Program (CFDA 84.063) Federal Direct Student Loan Program (CFDA 84.268)

Finding Control Number: FA-533-98-03 ELIGIBILITY Failure to Disburse FSEOG Funds to All Pell Recipients Student Financial Aid Cluster Program Questioned Cost: $27,716.00

For the year under review, it was noted that of 1,959 Federal Pell Grant recipients, 356 received Federal Supplemental Educational Opportunity Grant (FSEOG) funds. It was also noted that 46 students received FSEOG funds of $27,716.00 that did not receive Federal Pell Grants. Federal regulations (34 CFR 676.10) state that an institution shall award FSEOG funds to those students with the lowest expected family contributions who will also receive Federal Pell Grants. If the institution has FSEOG funds remaining after giving FSEOG awards to all the Federal Pell Grant recipients at the institution, the institution shall award the remaining FSEOG funds to those eligible students with the lowest expected family contributions who will not receive Federal Pell Grants.

This questioned cost of$27,716.00 was a result of management's failure to properly award FSEOG funds to those students with the lowest expected contribution who also received Federal Pell Grants. The University should contact the U. S. Department of Education regarding resolution of these questioned costs.

D-49

- - - - - - - - - State of Georgia - - - - - - - - -
Federal Awards Rndings and Questioned Costs For the Fiscal Year Ended June 30, 199B
FEDERAL AWARDS FINDINGS
Federal Programs/Awards Affected: Student Financial Aid Cluster Program
U. S. Department of Education Federal Supplemental Educational Opportunity Grant (CFDA 84.007) Federal Pell Grant Program (CFDA 84.063)
Finding Control Number: FA-533-98-04 ELIGIBILITY Overpayment of Student Financial Aid Student Financial Aid Cluster Program Questioned Cost: $242,589.06
A sample of sixty financial aid files was selected to determine if financial aid was properly calculated and disbursed to eligible students. The items sampled contained fmancial aid disbursements of $932,654.21 out of a population of $16,529,871.68. Our examination revealed forty-two instances totaling $242,589.06 where students received funds in excess oftheir eligible need as shown below:
(1) Seventeen students' awards were not adjusted for a change in enrollment status. The students either never registered for full-time enrollment or originally registered for classes then formally dropped the classes before the beginning of the quarter. The questioned cost of $110,351.49 resulted from management's failure to adjust awards prior to disbursement of funds.
(2) Three students received aid in excess of the maximum time frame allowable as defined by Federal regulation (34 CFR 668.16). The questioned cost of $42~977.30 resulted from management's failure to monitor the maximum time frame of recipients before disbursing funds to students.
(3) Thirteen students' cost of attendance was adjusted without the necessary documentation or a reasonable explanation for the adjustment. Federal regulations require that all adjustments based on professional judgement be fully documented and reasonable. The questioned cost of $40,582.07 resulted from management's failure to properly apply the standards of the program for extraordinary costs of the students.
(4) Three students were not in compliance with the University's published satisfactory academic progress policies. Federal regulations (34 CFR 668.32 and 668.34) state that a student must maintain satisfactory academic progress to be eligible to receive fmancial assistance under the Title IV programs. The noncompliance with established published standards of satisfactory progress is as follows:
(a) The University's policy states that an undergraduate student's probationary period of aid cannot exceed two quarters and that a specified grade point average must be achieved unless the student has successfully appealed his fmancial aid suspension. Two undergraduate students were found to have been on probationary status for longer than two quarters without documentation of a successful appeal.
(b) The University's policy states that a graduate student must maintain a grade point average of 3.0 or higher and that no probationary period is allowable. One student was found with a grade point average below the required grade point average.
Questioned cost of $38,531.66 resulted from management's failure to properly monitor satisfactory academic progress before disbursements were made.
D-50

- - - - - - - - - - State of GeorfJia - - - - - - - - - -

Federal Awards Rndings and Questioned Costs

L

For the Rscal Year Elided JUlie 30. 199B

L FEDERAL AWARDS FINDINGS

r-

(5) Two students' expected family contributions were either adjusted without proper documentation or not

L

considered when disbursements were made. Questioned cost of $6,389.00 resulted from management's

failure to properly apply the standards of the program for changes to the expected family contribution.

(6) Two students received work study wages in excess of their award which resulted in payments to the students over their actual need. This questioned cost of $2,632.54 resulted from management's failure to properly monitor the work study program wages.

(7) Two students were disbursed the maximum aid allowable for a full-time student. However, the students were only eligible for less than full-time grants when the remedial hours in excess of allowable limits were excluded. Federal regulation (34 CFR 668.20) states that an institution may not take into account more than one academic year's worth of noncredit or reduced credit remedial course work in determining a student's enrollment status and cost of attendance. For Fort Valley State University, one academic year equals forty-five quarter hours. Questioned cost of $1,125.00 resulted from management's failure to properly monitor the number of remedial hours taken by financial aid recipients.

The University should implement procedures to ensure that students are not disbursed financial assistance in excess of their eligible need. Also, the University should contact the U. S. Department of Education regarding the resolution of these questioned costs.

Federal Programs/Awards Aftected: Student Financial Aid Cluster Program
U. S. Department of Education Federal Supplemental Educational Opportunity Grant (CFDA 84.007) Federal Work-Study Program (CFDA 84.033) Federal Perkins Loan Program (CFDA 84.038) Federal Pell Grant Program (CFDA 84.063) Federal Direct Student Loan Program (CFDA 84.268)

Finding Control Number: FA-533-98-05 PERIOD OF AVAILABILITY Funds Awarded in Excess of Annual Limits Student Financial Aid Cluster Program Questioned Costs: $1,350.00

An examination of the financial aid records of sixty students receiving federal financial aid revealed that two students were awarded Federal Pell Grants in excess of the maximum annual amount allowed for Pell recipients as established by the U. S. Department of Education.

These deficiencies resulted from management's failure to properly award Pell Grants within the annual limits. The University should implement procedures to ensure that all awards are in compliance with the published regulations. The University should contact the U. S. Department of Education regarding the resolution of these questioned costs.

Federal Programs/Awards Aftected: Student Financial Aid Cluster Program
U. S. Department of Education Federal Pell Grant Program (CFDA 84.063)

D-51

- - - - - - - - - - State of GeorfJia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 199B
FEDERAL AWARDS FINDINGS
Finding Control Number: FA-533-98-06 REPORTING Expenditures in Excess of Authorization Student Financial Aid Cluster Program
For the year under review, the Statement of Account report from the U. S. Department of Education indicated that the University was authorized to expend $4,027,193.00 in Federal Pell Grant Program funds at June 30, 1998. The University's accounting records reflected $3,982,920.00 for fiscal year 1998 Pell Grant expenditures. However, the University's authorization was reduced to $3,961,857.00 on September 15, 1998. This adjusted amount represents the level that the University was authorized to expend for fiscal year 1998. This resulted in expenditures of $21,063.00 in excess of the authorized amount. In order to be reimbursed for the excess Pell Grant program expenditures, the University, in conformity with Federal Statutes, must certify the validity of these payments to the U. S. Department of Education. The Federal agency can then provide appropriate adjustments of the fiscal year 1998 authorized amount in order to make the funds available to the University.
Federal Programs/Awards Affected: Student Financial Aid Cluster Program
U. S. Department of Education Federal Pell Grant Program (CFDA 84.063)
Finding Control Number: FA-533-98-07 REPORTING Inadequate Documentation for Report Student Financial Aid Cluster Program
The University failed to provide documentation to support Part VI, Section A of the Fiscal Operations and Application to Participate (FISAP) report for award period July 1, 1997 - June 30, 1998 submitted by the University to the U. S. Department of Education on October 1, 1998. Federal regulations (34 CFR 674.3,675.3, and 676.3) require the University to ensure that the information is compiled and available for review upon request. This noncompliance was a result of management's failure to retain information after the report was submitted. The University should retain all information used to complete the FISAP report and make it available for review upon request.
Federal Programs/Awards Affected: Student Financial Aid Cluster Program
U. S. Department of Education Federal Supplemental Educational Opportunity Grant (CFDA 84.007) Federal Work-Study Program (CFDA 84.033) Federal Perkins Loan Program (CFDA 84.038)
Finding Control Number: FA-533-98-08 REPORTING Reports Not Reconciled Student Financial Aid Cluster Program
For the year under review, expenditures reported on several of the required reports for Federal Financial Assistance programs submitted by the University to the U. S. Department of Education were not reconciled as follows:
The Student Payment Summary (SPS) report and the Statement of Account, which report Federal Pell Grant Program expenditures for the year, were not reconciled to the accounting records.
D-52

L - - - - - - - - - - State of Georgia - - - - - - - - - -

Federal Awards Findings and Questioned Costs

L

For the Fiscal veerEnded June 30. 199B

L FEDERAL AWARDS FINDINGS

The Fiscal Operations and Application to Participate (FISAP) report had amounts reported for the

L

Federal Work-Study Program and the Federal Pell Grant expenditures that did not reconcile to the

accounting records.

I
L

The Federal Direct Loan Program reports have not been reconciled to the general ledger by the

University since the beginning of their participation in the program, September 1995. The University

was required to have all of the Federal Direct Loans that had been disbursed by the University through

June 30, 1997, reconciled to the Federal Direct Loan servicer by July 31, 1998; however, the

reconciliation has not been completed.

Federal regulations (34 CFR 675.19, 685.309, 690.81 and 690.83) require the University ensure that all required reports are accurate and reconciled as necessary. The deficiencies identified were a result of management's failure to adequately reconcile reports submitted to the accounting records.

The University should implement adequate controls to ensure that these reports are accurately completed and supported by the accounting records. Detailed reconciliations should also be prepared for any variances and maintained as part of the supporting documentation.

Federal Programs/Awards Aftected: Student Financial Aid Cluster Program
U. S. Department of Education Federal Work-Study Program (CFDA 84.033) Federal Pell Grant Program (CFDA 84.063) Federal Direct Student Loan Program (CFDA 84.268)

Finding Control Number: FA-533-98-09 SPECIAL TESTS AND PROVISIONS Entrance and Exit Counseling not Conducted Student Financial Aid Cluster Program

An examination of the fmancial aid records of sixty students receiving federal fmancial aid revealed that two Federal Direct Student Loan recipients' files did not contain the required entrance interview documentation and three Federal Direct Student Loan recipients' files did not contain the required exit interview documentation. Federal regulation (34 CFR 682.604) requires the institutions to conduct in-person entrance counseling prior to the release of the first disbursement of the proceeds of the first Direct loan made to the borrower for attendance at the school. The Federal regulations also require the University to conduct exit counseling with each Direct Loan borrower shortly before the student graduates or ceases at least half-time study at the institution. In addition, documentation of the required counseling should be maintained in the student's fmancial aid file.

The deficiency resulted from management's failure to adequately review student files. The University should implement the necessary controls to ensure that each recipient receives the required counseling and that this counseling is documented in the student's file.

Federal Programs/Awards Aftected: Student Financial Aid Cluster Program
U. S. Department of Education Federal Direct Student Loan Program (CFDA 84.268)

D-53

- - - - - - - - - State of Georsta - - - - - - - - -
Federal Awards Rndings and Questioned Costs For the Fiscal Year Ended June 30, 199B
FEDERAL AWARDS FINDINGS
GEORGIA SOUTHERN UNIVERSITY
Finding Control Number: FA-539-98-01 SPECIAL TESTS AND PROVISIONS Refunds not Calculated Correctly Student Financial Assistance Cluster Program
For the year under review, an examination of the University's Student Financial Assistance refund procedures revealed that refunds are not being calculated as required by Federal Regulation 34 CFR 668.22. The following deficiencies were noted:
(I) The University utilized incorrect percentages when calculating the refunds for students who officially withdrew.
(2) The University did not calculate a refund for students who unofficially withdrew.
The University should implement procedures to ensure that Student Financial Assistance refunds are accurately calculated on all students who withdraw.
Federal Programs/Awards Affected: Student Financial Aid Cluster Program
U. S. Department of Education Federal Supplemental Educational Opportunity Grant (CFDA 84.007) Federal Work-Study Program (CFDA 84.033) Federal Perkins Loan Program (CFDA 84.038) Federal Pell Grant Program (CFDA 84.063) Federal Direct Student Loan Program (CFDA 84.268)
SAVANNAH STATE UNIVERSITY
Finding Control Number: FA-548-98-01 ALLOWABLE COSTS/COST PRINCIPLES Budget Amendments Not Posted to the Accounting Records Higher Education - Institutional Aid (CFDA 84.031)
The accounting records presented for audit of the Title III Federal program did not reflect the final approved budget for Title III projects. The University recorded original budget information at the beginning of the fiscal year, but failed to record budget amendments as they were approved. This deficiency resulted in a lack of control over expenditures due to the absence of correct budget information. Federal regulations contained in 34 CFR 74.21 require that the Institution maintain a fmancial management system which, in part, provides for effective control over the accountability of Federal funds including a comparison of outlays to budget amounts for Federal awards. This condition is a result of management's failure to require budget amendments be posted to the accounting records. Management should require that all budget amendments be posted to the accounting records to ensure control over expenditures.
Contact Person: S. Paul Sood, Director of Contracts and Grants Telephone: (912) 353-3043; E-mail: soods@savstate.edu
D-54

L..~ ;.... - - - - - - - - - - State of Geot'B1a - - - - - - - - - -

Federal Awards Frndings and Questioned Costs

L

For the Fiscal Year Ended June 30, 199B

L

FEDERAL AWARDS FINDINGS

~
L

Finding Control Number: FA-548-98-02 ALLOWABLE COSTS/COST PRINCIPLES

Employee Compensation Deficiencies

Higher Education - Institutional Aid (CFDA 84.031)

Questioned Cost: $16,500.00

For the year under review, our examination of salaries charged to the Title III program revealed the following deficiencies:

1) It was determined that salaries were charged to the Title III program based on budgeted amounts rather than actual time and effort reports. An examination of time and effort reports noted the following problems:
'-
a. Time and effort reports for the Title III Coordinator and six hourly employees who worked on Title III activities were not available for examination.
b. Time and effort reports for other personnel who worked on Title III activities failed to contain all the required elements such as the employee's signature, the Title III Coordinator's signature, and the percentage of time spent on all activities during the period.
c. Although reasonable, one employee's time and effort reports were not consistent with the employee's class schedules.
d. A summer salary of $2,000.00 for one individual was charged to Title III program but was not documented by time and effort reports. Determination could not be made as to whether the employee actually worked on the Title III program.

According to OMB Circular A-21, activity reports or other payroll documents used as original documentation for payroll and payroll charges should be prepared and signed by the employee and the responsible official when salaries are charged to Title III. Time and effort reports should reflect 100% of an individual's time spent on all activities performed during the period. The reports should also be supported by other documentation such as class schedules.

2) Stipends for four individuals in the total amount of $2,750.00 were incorrectly charged to the Title III program. The stipends were in addition to regular salaries; however, the work performed for Title III was not in addition to their regular departmental workloads. Also, $1,750.00 in stipends for another individual charged to the Title III program were not documented by appropriate time and effort reports.

According to OMB Circular A-21, additional compensation above the base salary is only allowed in cases where the Title III duties are in addition to the regular departmental load.

3) Salaries of $10,000.00 were charged to the Title III program for two employees ($5,000.00 each) who were to receive release time from their normal duties to work on Title III activities. However, the individuals did not actually receive release time to work for the Title III program.

Salaries should not be charged to the Title III program for release time unless the individual is actually released from normal duties and carries out the Title III duties.

These conditions occurred because of management's failure to ensure that all time and effort reports were properly prepared by Title III employees and that Title III salaries were correctly paid to individuals who performed Title III services. Management should ensure that complete time and effort reports are prepared by all employees whose salaries are charged to the Title III program. Time and effort reports should contain all required elements so that management can rely on the reports to support accounting and payroll records. Management should also ensure that Title III activities are in addition to employees' regular departmental workloads before Title III stipends are paid to employees. Lastly, management should ensure that Title III employees are actually receiving release time from their departments before charging salaries to the Title III program.
D-55

- - - - - - - - State of GeortJia - - - - - - - -
Federal Awards Findings and Questioned Costs For the Fiscal Year Elided JUlIe 30. 199B
FEDERAL AWARDS FINDINGS
Contact Person: S. Paul Sood, Director of Contracts and Grants Telephone: (912) 353-3043; E-mail: soods@savstate.edu
Contact Person: Thomas Hines, Director of Title III Activities Telephone: (912) 353-3210; E-mail: hinest@savstate.edu
Finding Control Number: FA-548-98-03 DAVIS-BACON ACT Payment of Prevailing Wage Rates Not Monitored Higher Education - Institutional Aid (CFDA 84.031)
For the year under review, wages paid by a contractor associated with a Title III construction project of $25,013.00 were not monitored by the University. Federal regulations as reflected in Appendix A to 34 CFR 74 require that all laborers employed by the contractor who work on construction contracts in excess of $2,000.00 fmanced by Federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates). This condition resulted because of management's failure to ensure that all individuals at the University were aware of their responsibilities regarding the Davis-Bacon Act. The University should take steps to ensure that wages paid for construction projects financed with Federal funds are monitored and are in compliance with the provisions of the DavisBacon Act.
Contact Person: S. Paul Sood, Director of Contracts and Grants Telephone: (912) 353-3043; E-mail: soods@savstate.edu
Finding Control Number: FA-548-98-04 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Higher Education - Institutional Aid (CFDA 84.031)
Our examination included a review of the internal accounting controls utilized by the University in maintaining their property management system and testing the system for compliance with Federal laws and regulations. The following conditions existed:
1) The University failed to maintain a property management system that identified Federal equipment purchases by award number. The University only identified the source of the equipment as federal. This deficiency is system-wide and affects all Federal awards.
2) A physical inventory was not conducted within the last two years.
3) The University was unable to ensure appropriate Federal Agencies were notified when disposing of equipment due to inadequacies in identifying equipment by fund source and grant award number in the property management records.
4) A sample of 39 equipment items identified from current year purchases were examined. This examination revealed three computers and monitors purchased in March 1998 at a cost $6,933.00 were not in use as of the last day of fieldwork. The three computers were not in the location as identified by the Title III Director; however, they were located in the central warehouse in their original shipping container. In addition, two other computers and monitors purchased during the period under review with a total cost of $4,732.00 were not being used in the Title III project or program for which they were acquired.
The University failed to have internal controls in place and operational to ensure compliance with Federal requirements for equipment as set forth in 34 CFR 74 and OMB Circular A-I1O, Subpart C.34. The University should establish policies and
D-56

L - - - - - - - - State ofGeorsia--------

Federal Awards FlI1dings and Questioned Costs

L

For the Fiscal Year Ended June 30, 199B

L FEDERAL AWARDS FINDINGS

procedures to ensure that equipment purchases are identified by fund sources and grant award numbers, property records

L

are maintained in accordance with Federal requirements and physical inventories are conducted at least once every two

years. Also, the University should establish policies and procedures to ensure Title III equipment purchases are utilized for

the Title III program. The U. S. Department of Education should review these matters and determine appropriate action by

the University to resolve this finding.

Contact Person: Thelma Harris, Director of Business Services Telephone: (912) 353-2414; E-mail: harrist@savstate.edu

Contact Person: Thomas Hines, Director of Title III Activities Telephone: (912) 353-3210; E-mail: hinest@savstate.edu

Finding Control Number: FA-548-98-05 PERIOD OF AVAILABILITY Unallowable Expenditures Higher Education - Institutional Aid (CFDA 84.031) Questioned Cost: $41,121.19

A test of transactions was made to determine if underlying obligations occurred during the period of availability and if obligations were liquidated not later than 90 calendar days after the budget period. Our testing revealed the following deficiencies:

1) Expenditures in the amount of $12,139.65 were incurred and were charged to the program for up to nine months after the budget period ended September 30, 1997.

2) Obligations in the amount of $26,501.54 were not liquidated within the required 90 calendar days after the end of the budget period.

3) One voucher package in the amount of $2,480.00 was missing and a determination could not be made if the expenditures occurred in the budget period.

These deficiencies occurred because management failed to have written policies and procedures in place and operational to ensure that the University was in compliance with requirements for the period of availability of Federal funds as set forth in 34 CFR 74.28 and 34 CFR74.71 as well as in OMB Circular A-110, Subpart C.28 and Subpart D.71.

Management should implement policies and procedures to ensure that the University is in compliance with Federal regulations, expenditures are incurred within the budget period and obligations are liquidated within 90 calendar days after the budget period. The University should contact the U. S. Department of Education for resolution of the $41,121.19 in questioned cost.

Contact Person: S. Paul Sood, Director of Contracts and Grants Telephone: (912) 353-3043; E-mail: soods@savstate.edu

Finding Control Number: FA-548-98-06 PROCUREMENT AND SUSPENSIONIDEBARMENT Failure to Obtain SuspensionlDebarment Certification Higher Education - Institutional Aid (CFDA 84.031)

Our testing of contracts revealed that controls were not in place and operational to determine if any contractors paid from Federal funds had been debarred, suspended or otherwise excluded from participation in Federal assistance programs, other than those appearing on the State suspension list. This noncompliance occurred because procurement personnel were not aware of the Federal requirement and failed to obtain copies of Federal listings of debarred and suspended parties. The
D-57

- - - - - - - - State of GeorfJia - - - - - - - -
Federal Awards Findings and Questioned Costs For the Rscal Year Ended June 30. 1993

FEDERAL AWARDS FINDINGS

University should implement policies and procedures to ensure Federal compliance requirements are met as contained in 34 CFR 85 and Appendix A to 34 CFR 74.

Contact Person: Thelma Harris, Director of Business Services Telephone: (912) 353-2414; E-mail: harrist@savstate.edu

Finding Control Number: FA-548-98-07 REPORTING Final Performance Report Prepared with Budget Figures Higher Education - Institutional Aid (CFDA 84.031)

The Final Performance Report submitted to the U. S. Department of Education for Federal fiscal year ended September 30, 1997 reported that the University incurred $1,386,465.00 in Title III expenditures. However, the University's accounting records reflected $1,267,857.30 in expenditures for the same budget period. This condition occurred because management prepared the financial portion of the Final Performance Report from the approved budget instead of preparing the report from the accounting records. According to Federal regulation 34 CFR 74.21, the University's financial management system should provide for accurate and complete disclosure of financial results of the Title III program consistent with the reporting requirements established in 34 CFR 74.52. Management should ensure that the financial portion of the Final Performance Report is prepared from accounting records which reflect actual expenditures rather than budgeted amounts.

Contact Person: S. Paul Sood, Director of Contracts and Grants Telephone: (912) 353-3043; E-mail: soods@savstate.edu

SOUTHERN POLYTECHNIC STATE UNIVERSITY

Finding Control Number: FA-550-98-01 REPORTING SPECIAL TESTS AND PROVISIONS Inadequate Internal Controls and Compliance Deficiencies for FISAP Reporting and Exit Counseling Student Financial Aid Cluster Program

For the year under review, internal control and compliance testing procedures performed on the Student Financial Aid Cluster Program revealed deficiencies in the following control categories:

I) Reporting

Amounts reported on the Fiscal Operations and Application to Participate (FISAP) Report submitted by Southern Polytechnic State University to the U. S. Department of Education for the fiscal 19971998 award year, did not agree with the accounting records as indicated below:

FISAP Report Item

Report

Records

Accounting Difference

PELL Expenditures for F.Y. 98'

$ 975,074.00 $ 981,635.35 $ 6,561.35

State Grants and Scholarships to Undergraduates

$ 963,331.00 $1,168,921.35 $205,590.35

Federal regulation (34 CFR 675.19) requires the University to ensure that financial information reported is accurate and reconciled to the accounting records.

D-58

L - - - - - - - - - State of GeoPgta---------

L

Federal Awards Rndings and QuesNoned Costs
For the Rscal Year Ended June 30, 1993

L

FEDERAL AWARDS FINDINGS

L

The differences between the accounting records and the FISAP report were not reconciled. The University should implement procedures to

ensure that the FISAP Report is accurately completed and supported by

r

the accounting records. Detailed reconciliations should be prepared for

L

any adjusted amounts and maintained as a part of the supporting

documentation.

2) Special Tests and Provisions

There were no controls in place to ensure that in-person exit counseling was conducted with Federal loan recipients who were graduating or would otherwise be enrolled less than half-time as required by Federal regulations.

Our examination of twenty-five Student Financial Aid recipients identified four students who were required to have exit counseling. However, the University did not provide in-person exit counseling for these students, nor could the University document the mailing of any exit counseling information to these students.

The University should ensure that all students requiring exit counseling are properly identified and that exit counseling is conducted as required by Federal regulations.

Federal Programs/Awards Affected: Student Financial Aid Cluster Program
U.S. Department of Education Federal Pell Grant Program (CFDA 84.063) Federal Family Education Loan Program (CFDA 84.032) Federal Perkins Loan Program (CFDA 84.038)

AUGUSTA TECHNICAL INSTITUTE

Finding Control Number: FA-824-98-01 ACTIVITIES ALLOWED AND UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $48,930.95

During the year under review, the Institute utilized Vocational Education funds of $48,930.95 in support of personal service costs for the director, secretary and clerk of the Student Financial Aid (SFA) office. The use of Vocational Education funds for these personal service costs was included in the Institute's Georgia Department of Technical and Adult Education approved application. However, Section 235 of the Carl D. Perkins Vocational and Applied Technology Education Act of 1990 (Act) and provisions of34 CFR 403.111 (c) and (d) stipulate that Vocational Education funds are to be used for activities that pertain to (1) providing vocational education in programs that are effective and integrate academic and vocational courses and (2) providing for the equitable participation of members of special populations in vocational education so these populations have an opportunity to enter vocational education that is equal to that afforded to the general student population. We did not fmd where the payment of personal service costs for the operation of the SFA office was in conformity with the scope and intent of Section 235 of the Act and 34 CFR 403.111 (c) and (d).

Additionally, in accordance with 34 CFR 668.15; 34 CFR 668.16; and provisions of its SFA program participation agreement, the Institute is responsible for providing resources necessary to manage Pell grant and other SFA programs. The Institute's ability to administer SFA programs is thus based on its own available resources and is not contingent on the availability and use of Vocational Education funds. The use of Vocational Education funds for the payment of personal
D-59

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs For the Fiscal Year Ended June 30, I99B
FEDERAL AWARDS FINDINGS
service costs for its SFA office, rather than using the Institute's funds to pay personal service costs for the SFA office, constitutes noncompliance with the "supplement versus supplant" rule included in 34 CFR 403.196.
This noncompliance occurred because of management's failure to consider those Federal regulations governing the use of Vocational Education funds for allowable activities and the Federal provisions dealing with the "supplement versus supplant" rule.
The Institute should implement procedures to ensure that Vocational Education funds are used only for allowable activities and to supplement (rather than to supplant) State and local funds. The Institute, through Georgia Department of Technical and Adult Education, should consult with the U. S. Department of Education to resolve the questioned cost of$48,930.95.
DEKALB TECHNICAL INSTITUTE
Finding Control Number: FA-830-98-01 ACTIVITIES ALLOWED OR UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $31,480.04
During the year under review, the Institute utilized Vocational Education funds of $31,480.04 in support of personal service costs for the Director, Assistant Director, two Secretaries, two Bookkeepers, and the receptionist of the Student Financial Aid (SFA) office. The use of Vocational Education funds for these personal service costs was included in the Institute's Georgia Department of Technical and Adult Education approved application. However, Section 235 of the Carl D. Perkins Vocational and Applied Technology Education Act of 1990 (Act) and provisions of34 CFR 403.111 (c) and (d) stipulate that Vocational Education funds are to be used for activities that pertain to (1) providing vocational education in programs that are effective and integrate academic and vocational courses and (2) providing for the equitable participation of members of special populations in vocational education so these populations have an opportunity to enter vocational education that is equal to that afforded to the general student population. We did not find where the payment of personal service costs for the operation of the SFA office was in conformity with the scope and intent of Section 235 of the Act and 34 CFR 403.111 (c) and (d).
Additionally, in accordance with 34 CFR 668.15; 34 CFR 668.16; and provisions of its SFA program participation agreement, the Institute is responsible for providing resources necessary to manage Pell grant and other SFA programs. The Institute's ability to administer SFA programs is thus based on its own available resources and is not contingent on the availability and use of Vocational Education funds. The use of Vocational Education funds for the payment of personal service costs for its SFA office, rather than using the Institute's funds to pay personal service costs for the SFA office, constitutes noncompliance with the "supplement versus supplant" rule included in 34 CFR 403.196.
This noncompliance occurred because of management's failure to consider those Federal regulations governing the use of Vocational Education funds for allowable activities and the Federal provisions dealing with the "supplement versus supplant" rule.
The Institute should implement procedures to ensure that Vocational Education funds are used only for allowable activities and to supplement (rather than to supplant) State and local funds. The Institute, through Georgia Department of Technical and Adult Education, should consult with the U.S. Department of Education to resolve the questioned cost of $31,480.04.
D-60

L - - - - - - - - - State of GeorfJia - - - - - - - - -

Federal Awards Findings and Questloned Costs

L

For the Rscal Year Ended June 30. 199B

L

FEDERAL AWARDS FINDINGS

L

Finding Control Number: FA-830-98-02 ALLOWABLE COSTS/ COST PRINCIPLES

Improper Expenditures for Workplace Literacy

r:

Adult Education - State Grant Program (CFDA 84.002)

L

Questioned Costs: $19,416.37

For the year under review, the salary costs charged to the Adult Education Program were examined for 16 employees. For two employees, $19,416.37 in salary charges was overcharged to the Adult Education Program based on documented time and effort records. In conformity with requirements included in l lh, Attachment B ofOMB Circular A-87, and provisions of the Adult Education application approved by the Georgia Department of Technical and Adult Education, the Institute was responsible for making adjustments to the Adult Education Program fund account based on time and effort records confmning the services provided by the personnel on the Adult Education Program and other Institute activities. Due to oversight, Institute personnel had not made the required adjustments to the Adult Education program fund account based on the two employees' time and effort records as required.

The Institute should implement measures to assure that procedures are followed in charging personnel service costs to the

Adult Education program consistent with documented records which reflect actual time expended by personnel on the

- '-

Adult Education Program. The Institute, through Georgia Department of Technical and Adult Education should consult

with the U.S. Department of Education to resolve the questioned cost of$19,416.37.

SAVANNAH TECHNICAL INSTITUTE

Finding Control Number: FA-841-98-01 ACTIVITIES ALLOWED AND UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $21,277.55

During the year under review, the Institute utilized Vocational Education funds to purchase $21,277.55 of computer equipment and office furnishings for the Student Financial Aid (SFA) office. The use of Vocational Education funds to acquire this equipment was included in the Institute's Georgia Department of Technical and Adult Education approved application. However, Section 235 of the Carl D. Perkins Vocational and Applied Technology Education Act of 1990 (Act) and provisions of 34 CFR 403.111 (c) and (d) stipulate that Vocational Education funds are to be used for activities that pertain to (1) providing vocational education in programs that are effective and integrate academic and vocational courses and (2) providing for the equitable participation of members of special populations in vocational education so these populations have an opportunity to enter vocational education that is equal to that afforded to the general student population. We did not fmd where the purchase and use of the equipment in the operation of the SFA office was in conformity with the scope and intent of Section 235 of the Act and 34 CFR 403.111 (c) and (d).

Additionally, in accordance with 34 CFR 668.15; 34 CFR 668.16; and provisions of its SFA program participation agreement, the Institute is responsible for providing resources necessary to manage Pell grant and other SFA programs. The Institute's ability to administer SFA programs is thus based on available resources and is not contingent on the availability and use of Vocational Education funds. The use of Vocational Education funds for the acquisition of computer equipment and office furnishings for its SFA office, rather than using the Institute's funds to purchase the equipment for the SFA office constitutes noncompliance with the "supplement versus supplant" rule included in 34 CFR 403.196.

This noncompliance occurred because of management's failure to consider those Federal regulations governing the use of Vocational Education funds for allowable activities and the Federal provisions dealing with the "supplement versus supplant" rule.

D-61

- - - - - - - - - - State of GeorfJia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 199B
FEDERAL AWARDS FINDINGS
The Institute should implement procedures to ensure that Vocational Education funds are used only for allowable activities and to supplement (rather than to supplant) State and local funds. The Institute, through Georgia Department of Technical and Adult Education, should consult with the U. S. Department of Education to resolve the questioned cost of$21,277.55.
Finding Control Number: FA-841-98-02 ALLOWABLE COSTS/COSTS PRINCIPLES Improper Overtime Payments Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $5,872.00
During the course of our examination, we noted one case where compensation paid to an instructor appeared to be unreasonable. Our examination of this situation revealed the following:
(1) Time sheets were not maintained by the instructor. However, the department's secretary prepared monthly time records for the instructor which did not always reconcile to daily attendance records maintained by the instructor.
(2) Salary for five holidays not authorized by the employment contract was paid in the amount of $640.00.
(3) Overtime payments of $5,232.00 were paid that were unallowable.
The deficiencies identified above were caused by the Institute's failure to follow State and Federal guidelines for personal services and overtime payments. The Institute should implement necessary policies and procedures to ensure compliance with State guidelines and provisions of Federal regulation, OMB Circular A-87. The Institute should contact the U. S. Department of Education to resolve the questioned cost of $5,872.00.
Finding Control Number: FA-841-98-03 CASH MANAGEMENT Excessive Cash Balances Vocational Education - Basic Grants to States (CFDA 84.048)
A review of cash management procedures for the Vocational Education Program disclosed that cash draws were made in advance of cash needs. During the year under review, the Institute had excessive cash balances for five months averaging $45,520.80.
Federal cash draws should not exceed the immediate need. The excessive cash balances were the results of management's failure to adequately forecast the cash needs of this program and to have controls in place and operational to prevent excessive cash balances. Procedures should be implemented by the Institute to ensure that requests for cash draws do not exceed the immediate need.
Finding Control Number: FA-841-98-o4 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Vocational Education - Basic Grants to States (CFDA 84.048)
For the year under review, our examination included a review of the controls utilized by Savannah Technical Institute in maintaining their property management system. This review also included testing for compliance with Federal laws and regulations. A sample of23 items selected from the property records revealed the following deficiencies:
(1) Six (6) items did not indicate a location assignment but were subsequently located. (2) Seven (7) items were located but displayed no decal. (3) Eight (8) items had no serial number displayed as a part of the inventory record.
D-62

L - - - - - - - - - State of Georgia - - - - - - - - -

Federal Awards FlI1dings and Questioned Costs

L

For the Fiscal Year Ended June 30. 199B

L FEDERAL AWARDS FINDINGS

(4) All twenty-three (23) items had no model number displayed as a part of the inventory record.
L The Institute is required to maintain equipment inventories. in accordance with paragraph 21 of OMB's Uniform

Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (Common Rule).

L

The deficiencies identified above were caused by the Institute's failure to follow guidelines for maintaining property

management records and the failure to establish appropriate procedures to ensure property management records were

properly maintained. The Institute should implement necessary controls to ensure that equipment inventories are

maintained in accordance with provisions of OMB's Common Rule.

GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION

Finding Control Number: FA-918-98-01 REPORTING Report Data Submitted to the NSLDS was Incorrect

Criteria:

Guaranty agencies are required to submit detail loan information to the National Student Loan Data System (NSDLS).

Condition:

The ED issued a report noting many instances where data submitted to the NSDLS was incorrect.

Questioned Costs: None noted.

Context:

Instances identified in connection with procedures performed by ED.

Effect:

NSLDS data did not match the GHEAC's records.

Recommendation: We recommend that GHEAC continue to monitor the accuracy of the information submitted to ED through NSLDS.

D-63

SectionCE
ScfteijUfe OJ CExpcmHtuves oJ~rne1"AfAwavijs

L L
L L
,
~.
ScheduCe of CExpenditures of
C3Federa[~~ards

L
L
L
L

State of GeorfJla
SChedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30. 199<5

Agriculture, U. S. Department of
Agricultural Research - Basic andAppliedResearch Through: Universityof GeorgiaResearch Foundation
PlantandAnimalDisease,Pest Control, andAnimalCare Direct
Wildlife Services Through: University of GeorgiaResearch Foundation
WaterBank Program Direct
ForestryIncentivesProgram Direct
Market News Direct
Federal-State Marketing Improvement Program Through: University of Georgia Research Foundation
Inspection Grading andStandardization Direct
Market Protection andPromotion Direct
WholesaleMarket Development Direct
Grants for Agricultural Research, Special Research Grants Direct Through: University of Florida Through: University of Georgia Research Foundation
Cooperative Forestry Research Direct
Payments to Agricultural Experiment Stations Underthe Hatch Act
Direct
Paymeots to 1890 Land-Grant Colleges andTuskegeeUniversity Direct
Grants for Agricultural Research Competitive Research Grants Through: Georgia TechResearch Corporation Through: University of GeorgiaResearch Foundation
Food and Agricultural Scieoces National Needs Graduate Fellowship Grants Direct
J890 Institution Capacity Building Grants Direct
Higher Education Challeoge Grants Direct Through: TexasTechUniversity

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

10.001 10.025 10.028 10.062 10.064 10.153 10.156 10.162 10.163 10.164 10.200
10.202 10.203 10.205 10.206
10.210 10.216 10.217

58-6602-7-018 98-74-05.0334(CA)
12-25-G-0222
S94017 Various

44,540 (R) 694,726 (R)
14,587 (R) 5,000 64,000 25,544 30,789 (R) 2.566,834
598 57,000 283.867 (R)
33 (R) 6,141.320 (R) 6,425,220
591,346 (R)

4.572,839 (R)

437.056 (R)

Various

45,244 (R) 1.210.069 (R)
1,255.313

1300/4973-01

38,744 (R)

s

1,774,562

58.470 (R) 26,250 (R)
84,720

E-5

State of GeorfJia - - - - - - -
SChedule of Expenditures of Federal Awards For the FISCal Year Ended June 30. 199B

Agriculture, U. S. Departmeut of
Buildings andFacilities Program Direct Through: University of Georgia Research Foundation
FundsforRural America~ Research, Education, andExtension Direct Through: North Carolina StateUniversity Through: University of Georgia Research Foundation
Agricultural andRural Economic Research Direct
Rural Self-HelpHousingTechnical Assistance Direct
Cooperative Agreements withStatesfor Intrastate Meat andPoultry Inspection Direct
Cooperative ExtensionService Direct
Agricultural Telecommunications Program Direct
FoodDistribution Direct
Food Stamps (FSC) Direct
School Breakfast Program (CNC) Direct
National School Lunch Program (CNC) Direct
Special Milk Program for Children (CNC) Direct
Special Supplemental Food Program for Women, Infants, and Children Direct
Child and Adult Care Food Program Direct
Summer Food Service Program for Children (CNC) Direct
StateAdministrative ExpensesforChildNutrition Direct
StateAdministrative Matching Grants for Food Stamp Program (FSC)
Direct
Nutrition Education andTraining Program Direct
Commodity Supplemental Food Program Through: University of Georgia Research Foundation
Emergency FoodAssistance Program (Administrative Costs) (EFAC)
Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

10.218
10.224
10.250 10.420 10.475 10.500 10.501 10.550 10.551 10.553 10.555 10.556 10.557 10.558 10.559 10.560 10.561 10.564 10.565 10.568

91-33636-5978 Various
A4169011301
Various

69,302 1,035,360 (R)
1,104,662

1,128 (R) 6,966 (R) 3,910 (R) 12,004
55,507 (R)
204,853

2,757,551

12,351,256 (R)

s

28,300

20,179

722,403

59,040,105

194,024,611

28,774

155,821,767 (2) 47,186,730
407,337 2,927,831

51,776,542 129,330 (R) 2,362 (R)

1,082,010

27,452,496 (4) 548,575,858 (4)

E-6

L
L
L

State of GeorfJia - - - - - - -
SChedule of Expenditures of Federal Awards For the Rscal Year Ended June 30, 1990

Agriculture, U. S. Department of
EmergencyFood Assistance Program (Food Commodities) (EFAC) Direct
Nutrition Program for the Elderly (Commodities) Direct
Forestry Research Direct Through: Universityof GeorgiaResearch Foundation
Cooperative Forestry Assistance Direct Through: Universityof GeorgiaResearch Foundation
TechnicalAssistance andTrainingGrants Direct
Rural DevelopmentGrants Direct
Rural CooperativeDevelopmentGrants Direct
ResourceConservationand Development Direct
Agricultural Statistics Reports Direct
International Agricultural Research Program Through: University ofGeorgia Research Foundation
International Training. ForeignParticipant Direct
ScientificandTechnical Cooperation Through: Universityof GeorgiaResearch Foundation
Other Federal Assistance Direct Through: ClemsonUniversity Through: Langston University Through: North Carolina StateUniversity Through: University of Alaska Through: University of Georgia Research Foundation
Through: University of Maryland Through: VariousOtherStates
AGENCY TOTAL
Commerce, U. S. Department of
ExportPromotion~ MarketDevelopmentCooperator Direct
Research and Evaluation Program Through: Georgia Tech Research Corporation
TradeAdjustmentAssistance Through: Georgia Tech Research Corporation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

10.569 10.570 10.652
10.664
10.761 10.769 10.771 10.901 10.950 10.961 10.962 10.963 10.XXX

Various
$ Various
s

58-3148-6-009

59-3 I9R-029

$

197-6120-13-5904
Various UAF95-0056-MOD4 RD284-277/4522923
Various Various Various
s
$

2,657,041
364,194 (R) 593,085 (R) 957,279
1,979,060 (R) 46,068 (R)
2,025,128
1,778
101,588
174,857
26,161
49,938
5,284 (R)
9,480 (R)
4,104 (R)
299,950 (R) 652 (R)
9,151 29,886 (R) 98,613 (R)
261 (R) 2,250,209 (R)
18,199 (R) 68,565 (R) 2,775,486
557,155,656

3,642,956 579,671,310

11.112 11.312 11.313

33,248

s

138,706 (R)

s

180 (R)

E-7

State of Georsta
SChedule of Expenditures of Federal Awards
For the FISCal Year Ended June 30, 1990

Commerce, U, S. Department or
GeodeticSurveysandServices(GeodesyandApplications of the National Geodetic Reference System)
Through: University of Georgia Research Foundation
InterjurisdictionalFisheriesAct of ]986 Direct
Sea Grant Support Direct Through: University of Georgia Research Foundation
CoastalZone Management Administration Awards Direct
CoastalZone Management Estuarine Research Reserves Direct
Fisheries Development andUtilization Research and DevelopmentGrants andCooperative Agreements Program Direct Through: University of Georgia Research Foundation
Undersea Research Through: Universityof Georgia Research Foundation
Climate andAtmospheric Research Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
MarineFisheriesInitiative Direct Through: Universityof Georgia ResearchFoundation
Cooperative Fishery Statistics Direct
Marine Research - Regional Programs Direct Through: University of North Carolina atWilmington
Unallied Science Program Direct
Atlantic Coastal Fisheries Cooperative Management Act Direct
Telecommunications andInfonnation Infrastructure Assistance Program Direct
Measurement andEngineering Research andStandards Through: Georgia Tech Research Corporation
Advanced Technology Program Direct Through: University of Georgia Research Foundation

CFDA NUMBER
11.400 11.407 11.417
11.419 11.420 11.427
11.430 11.431
11.433
11.434 11.464
11.472 11.474 11.552 11.609 11.612

PASS-THROUGH ENTI1Y IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

GMRC-97-311O Various
NA77FD0074 UNCWlNURC9707/9809
NA56GP0323 NA57FF0298
s
95-1043

29,742 (R)
55,772
21,912 (R) 1,220,047 (R) 1,241,959
209,293
213,031
48,724 (R) 55,952 (R) 104,676
7,046 (R)
13,970 (R) 16,120 (R) 30,090
106,352 55,335 (R) 161,687
135,300
42,617 (R) 10,425 (R) 53,042
72,431
116,632
-60
-78,298 (R)
40,086 179,201 (R) 219,287

E- 8

L L L L,

State of GeOf'Bia
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30. 199B

Commerce, U. S. Department of OtherFederal Assistance Direct Through: GeorgiaTechResearch Corporation Through: University of Georgia Research Foundation
AGENCY TOTAL
Defense, U. S. Department of Procurement Technical AssistanceforBusinessFirms Through: Defense Logistics Agency Through: Georgia Tech Research Corporation
NavigationProjects Direct
BasicandApplied Scientific Research Direct Through: GeorgiaTechResearch Corporation Through: Universityof GeorgiaResearch Foundation
Military Construction, National Guard Direct
National Guard Military Operations andMaintenance (O&M) Projects Direct
Military Medical Research and Development Through: Universityof GeorgiaResearchFoundation
Basic ScientificResearch Through: Academy of Applied Science
Community EcoJ.1omic Adjustment Direct
Community EconomicAdjustment PlanningAssistance Direct
Basic, Applied, and Advanced Researchin Science andEngineering Through: Georgia Tech Research Corporation Through: University of GeorgiaResearch Foundation
AirForceDefenseResearch SciencesProgram Direct Through: Georgia Tech Research Corporation Through: Universityof GeorgiaResearch Foundation
Mathematical SciencesGrants Program Through: Georgia Tech Research Corporation Through: Universityof GeorgiaResearchFoundation
Research and TechnologyDevelopment Through: Georgia Tech Research Corporation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

II.XXX

Various

2,305,812 (R) 5,279,204 (R)
110,921 (R) 7,695,937
10,439,701

12.002
12.107 12.300
12.400 12.401 12.420 12.431 12.600 12.607 12.630
12.800
12.901
12.910

Various
MCG9602029 Various
Various Various Various

s

-173

1l1,061 (R)

110,888

304,559

14,742 (R) 7,710,624 (R)
157,453 (R)
7,882,819

30,111

14,022,937

s

2,766 (R)

7,287 (R)

s

64,634 (R)

18,101

1,057,119 (R) 118.074 (R)
1,175,193
9,745 (R) 1,734,806 (R)
253,501 (R) 1,998,052
10,352 (R) 28,028 (R) 38,380
1,438,628 (R)

E-9

State of GeorBla
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended .knc30, I99B

Defense, U. S. Department of
OtherFederal Assistance Direct Through: Academyof AppliedScience Through: Geo Marine,Incorporated Through: Georgia TechResearch Corporation Through: Medical Collegeof Georgia ResearchInstitute Through: Universityof GeorgiaResearchFoundation
AGENCY TOTAL
Housing and Urban Development, U. S. Department of
Manufactured HomeConstruction andSafetyStandards Direct Through: National Conference of States on Building Codes Through: Various MobileHomeManufacturers
Community DevelopmentBlock Grants/Small Cities Program (ESCC) Through: CityofWamerRobins
Community Development BlockGrants/State's Program Direct
Emergency Shelter Grants Program Direct
Supportive HousingProgram Direct
Historically Black CollegesandUniversities Program Direct
HOMEInvestment Partnerships Program Direct
HousingOpportunities forPersons withAIDS Direct
FairHousingAssistance Program.StateandLocal Direct
Community DevelopmentWork-StudyProgram Direct
LowerIncomeHousingAssistance Program Section 8 ModerateRehabilitation (SBC) Direct
Lead-Based Paint Hazard Control in Privately-Owned Housing Direct
OtherFederal Assistance Direct Through: City of Albany Through: GeorgiaTech ResearehCorporation
AGENCY TOTAL

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

12.XXX

Various 95SCOO31-A,1102-004
Various

4,792,319 (R) 18,707 (R) -I (R)
90,276,216 (R) 156,009 (R) 293,548 (R)
95,536,798
122,631,153

14.171
14.219 14.228 14.231 14.235 14.237 14.239 14.241 14.401 14.512 14.856 14.900 14.XXX

s
B-96-MC-13-0001

504,400 8,705
1,025,005 1,538,110
40,000 46,180,691
1,848,827 405,789 479,535
12,787,265 917,233 303,397 7,697
47,610,207
1,312,150 343,441 13,742 38,797 (R) 395,980
113,826,881

E - 10

L
L
L
L
L

State of GeorfJia
SChedule of Expenditures of Federal Awards For the Fiscal Year Ended June 3D, 19915

Interior, U. S. Department of the
Sport Fish Restoration (FWC) Direct
Environmental Contaminants Direct
Wildlife Restoration (FWC) Direct
Endangered Species Conservation Direct
Cooperative Endangered Species Conservation Fund Through: State of Tennessee Through: University of Georgia Research Foundation
Clean Vessel Act Direct
WIldlife Conservation and Appreciation Direct
Administrative Grants for Federal Aid in Sport Fish and Wildlife Restoration
Through: University of Georgia Research Foundation
Assistance to State Water Resources Research Institutes Through: University of Georgia Research Foundation
Geological Survey. Research and Data Acquisition Direct Through: University of GeorgiaResearchFoundation
National Cooperative Geologic Mapping Program Through: Universityof Georgia Research Foundation
Historic PreservationFund Grants-In-Aid Direct Through: National Park Service Through: University of Georgia Research Foundation
National Historic Landmark Direct
Outdoor Recreation- Acquisition, Development and Planning Direct Through: University of Georgia Research Foundation
State Partnerships Direct
Other Federal Assistance Direct Through: Georgia Tech Research Corporation Through: Universityof Georgia Research Foundation
AGENCY TOTAL

eFDA
NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

15.605 15.607 15.611 15.612 15.615
15.616 15.617 15.618 15.805 15.808
15.810 15.904
15.912 15.916
15.977 15.XXX

GU-96-0231 0-00 Various
1434-HQ97RU-01551-39 97-UGOI Various
B-02620G1 CA-5890-5-9020
Various
Various

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

5,672,189
8,427 (R)
3,986,628
222,049
5,269 (R) 36,621 (R) 41,890
41,817
30,000
13,557 (R)
5,049 (R)
106,083 (R) 171,524 (R) 277,607
3,632 (R)
822,814 (R) 3,334 79,163 (R)
905,311
44,604
46,327 26,537 (R) 72,864
5,728 (R)
544,620 (R) 352,555 (R) 557,967 (R) 1,455,142
12,786,494

E - 11

State of Georgia
SChedule of Expenditures of Federal Awards
For the Rscal Year Ended .knc30, 199B

Justice, u.S. Department of
JuvenileJusticeandDelinquencyPrevention> Allocationto States Direct
Victimsof Child Abuse Direct
Part E State ChallengeActivities Direct
State Justice Statistics Program for Statistical AnalysisCenters Direct
JusticeResearch. DevelopmentandEvaluation ProjectGrants
Direct
StateCriminal AlienAssistance Program Direct
CrimeVictim Assistance Direct
CrimeVictim Compensation Direct
ByrneFonnulaGrant Program Direct
Edward ByrneMemorial StateandLocal LawEnforcement AssistanceDiscretionary Grants Program
Direct Through: CommunityResearchAssociates,Incorporated

CFDA NUMBER
16.540
16.547 16.549 16.550
16.560
16.572 16.575 16.576 16.579 16.580

ViolentOffenderIncarceration andTruth in Sentencing IncentiveGrants
Direct
ViolenceAgainstWomen FonnulaGrants Direct
LocalLawEnforcementBlock GrantsProgram Direct
Correcaone- Training andStaff Development Through: Federal Correctionalinstitution
PublicSafetyPartnershipand CommunityPolicing Grants Direct
Troops to COPS Direct
Other Federal Assistance Direct Through: Community Research Associates, Incorporated Through: Metro AtlantaCrimeCommission

16.586
16.588 16.592 16.601 16.710 16.711 16.XXX

AGENCY TOTAL

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

97LFCXKOOI 1250H104

2,131,316 426,754 257,000

4,570

75,965 924,232 9,881,407
40,310 19,066,226

50,000 4,437
54,437

s

22,225,780

4,411,852 (R)

875,108

64,343

184,542

20,872

1,257,296 (R) 10,713 24,530
1,292,539

61,937,253

E - 12

L
L
-'--

State of GeorfJia - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 199B

Labor, U. S. Department of
Labor Force Statistics Direct
Compensation and Working Conditions Data Direct
Employment Service (ESC) Direct
Unemployment Insurance Direct
Senior Community Service Employment Program Direct
Trade Adjustment Assistance - Workers Direct
Employment and Training Assistance Dislocated Workers (JC)
Direct
Employment Services and Job Training - Pilot and Demonstration Programs Direct
Job Training Partnership Act (JC) Direct Through: Appalachian Regional Commission Through: AtlantaRegional Commission
Through: C.S.RA. Employment and Training Consortium
Through: City of Atlanta Through: City of Columbus Consolidated Government Through: Coosa Valley Regional Development Center
Through: DeKalb Private Industty Council Through: East Central Georgia Employment
and Training Consortium Through: Heart of Georgia Regional Development Center Through: Lower Chattahoochee Private Industry Council Through: Middle Flint Regional Development Center Through: Middle Georgia Consortium, Incorporated Through: Northeast Georgia
Regional Development Center Through: RichmondIBurke Job Training Authority Through: South Georgia Regional Development Center Through: Southeast Georgia
Regional Development Center Through: Southwest Georgia
Regional Development Center Through: West Central Georgia Private Industry Council

CFDA NUMBER
17.002 17.005 17.207 17.225 17.235 17.245 17.246
17.249
17.250

PASS-THROUGH ENTITY IDENTIFYING
NUMBER
JT9813 01-97.14-993 01-97-14-714
97-Ven-01

Welfare-to-Work Grants to States and Localities Direct
Consultation Agreements Direct
Mine Health and Safety Grants Direct
Women's Special Employment Assistance Direct

17.253 17.504 17.600 17.700

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

1,701,700
99,262
20,221,455
318,978,556 (1)
1,851,721
1,815,495
19,205,593
550,168
35,968,690 25,549
257,222 72,045 70,940 40,822 157,593
747,291 246,733 131,014 121,886 136,031
1,062 75,785 1,259,039 287,424 125,240 129,626 182,861 728,713 357,361 12,028
9,262 41,144,217
3,281
20,196
90,113
92,534

E -13

State of Georsia - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30. 1990

Labor, D. S. Department of
Disabled Veterans' Outreach Program (DVOP) (ESC) Direct
Veterans' Employment Program Direct
Local Veterans' Employment Representative Program (ESC) Direct
OtherFederal Assistance Direct Through: EastCentral Georgia Consortium Through: GeorgiaTechResearch Corporation
AGENCY TOTAL
State, D, S. Department of
Special DomesticAssignments Through: GeorgiaTechResearch Corporation
Other Federal Assistance Direct Through: GeorgiaTech Research Corporation
AGENCY TOTAL
Transportation, U. S. Department of
BoatingSafetyFinancial Assistance Direct
Airport Improvement Program Direct
AviationResearch Grants Through: GeorgiaTechResearch Corporation
Highway Planning and Construedon Direct
HighwayTraining andEducation Direct
MotorCarrier Safety AssistanceProgram Direct
National Recreational Trails Funding Program Direct
Federal Transit Capital Improvement Grants (FTC) Direct
Federal Transit Technical Studies Grants Direct
Federal Transit Capital andOperating Assistance Formula Grants (FTC)
Direct
PublicTransportation forNonurbanized Areas Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

17.801 17.802 17.804 17.XXX

19.202 19.XXX
20.005 20.106 20.108 20.205 20.215 20.218 20.219 20.500 20.505 20.507 20.509

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

2,530,969
-1,811
1,544,701
137,518 42,423 994,653 (R) 1,174,594
411,022,744

2,236 (R)
2,518,788 (R) 26,693 (R)
2,545,481
2,547,717

917,990 314,406 154.764 (R) 648,892,546
47,001 (R) 2,245,966
86,741 305,222 759,186
3,499,128 3.931,359

E - 14

L
L L
r
L

State of Georgia - - - - - - - -
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30. 199B

Transportation, U. S. Department of Capital AssistanceProgram forElderly Personsand PersonsWithDisabilities Direct
State and Community Highway Safety (HSC) Direct
Pipeline Safety Direct
Interagency Hazardous Materials PublicSectorTrainingand PlanningGrants Direct OtherFederalAssistance Direct Through: GeorgiaTech Research Corporation Through: Office of Small andDisadvantaged Business Utilization Through: SouthCarolinaStateUniversity
AGENCY TOTAL
Treasury, U, S. Department of the OtherFederal Assistance Direct Through: Georgi. Tech Research Corporation Through: University of Georgia Research Foundation
AGENCY TOTAL
Postal Service, U. S. OtherFederal Assistance Direct
AGENCY TOTAL
Appalachian Regional Commission Appalachian Regional Development Direct Appalachian Supplements to Federal Grant-in-Aid (Are. Development) Direct Appalachian State Research, Technical Assistance, and Demonstration Projects Direct
AGENCY TOTAL

CFDA NUMBER

PASS-TIlROUGH ENTITY IDENTIFYING
NUMBER

20.513 20.600 20.700 20.703 20.XXX

E1TAP9596ALB

21.XXX

fT-PO-97-0572

22.XXX
23.001 23.002 23.011

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

1,137,880 5,464,438 (R)
335,709
162,003 7,960 (R)
878,912 (R) 23,434 26,346 936,652 669,190,991
66,271 2,015 (R) 18,664 (R) 86,950 86,950
10,700 10,700
111,747
433,191
201,900 (3) 746,838

1,560,604 (3) 1,560,604

E - 15

State or Georgia - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1993

Equal Employmeut Opportunity Commission EmploymentDiscrimination ~ Title VII of the Civil Rights Act of 1964 Direct
AGENCY TOTAL
General Services Administration Donationof Federal SurplusPersonal Property Direct
AGENCY TOTAL
National Aeronautics and Space Administration Aerospace Education Services Program Direct Through: Space Telescope Science Institute Through: University of Alabama
TechnologyTransfer Direct Through: Georgia Tech Research Corporation
OtherFederal Assistance Direct Through: Georgia Tech Research Corporation Through: Howard University Through: Lewis Research Center Through: Universities Space Research Association Through: University of Georgia Research Foundation
AGENCY TOTAL
National Foundation on the Arts and the Humanities Promotionof the Arts ~ Grantsto Organizations and Individuals Direct Promotionof the Arts - PartnershipAgreements Direct Promotionof the Humanities~ Federal/StatePartnership Direct Through: GeorgiaHumanitiesCouncil Through: University of Georgia Research Foundation
Promotionof the Humanities>Education Developmentand Demonstration
Direct Through: Universityof California

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

30.001

39.003

43.001 43.002 43.XXX

98VSUOOI Various

45.024 45.025 45.129
45.162

GHC-98-008 95-167-G

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

72,483
72,483
12,878,908
12,878,908
78,635 (R) 27,620 (R)
3,647 (R) 109,902
2,541 (R) 2,052,058 (R) 2,054,599
582,908 (R) 6,583,015 (R)
180,940 197,778 22,476 (R) 827,912 (R) 8,395,029
10,559,530

20,000
475,936
20,370 49,946 (R) 3,400 (R)
5,000 (R) 78,716
296,574 (R) 6,135
302,709

E - 16

L L
L L

State of GeorfJia - - - - - - -
SChedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 1996

National Foundation on the Arts and the Humanities
Instituteof Museum and Library Services Direct
OtherFederal Assistance Direct Through: Georgia Councilfor the Arts Through: GeorgiaTech Research Corporation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

45.301 45.XXX

AGENCY TOTAL
National Science Foundation EngineeringGrants Direct Through: Georgia Tech ResearchCorporation Through: Universityof GeorgiaResearch Foundation
Mathematicaland Physical Sciences Direct Through: GeorgiaTech ResearchCorporation Through: University of Georgia ResearchFoundation
Geosciences Direct Through: GeorgiaTech ResearchCorporation Through: Universityof GeorgiaResearch Foundation
Computerand InformationScienceand Engineering Direct Through: GeorgiaTech ResearchCorporation Through: Universityof GeorgiaResearch Foundation
BiologicalSciences Direct Through: GeorgiaTech ResearchCorporation Through: Medical Collegeof Georgia Research Institute Through: Universityof GeorgiaResearch Foundation
Social,Behavioral,and EconomicSciences Direct Through: GeorgiaTech ResearchCorporation Through: Universityof GeorgiaResearch Foundation
Educationand Human Resources Direct Through: GeorgiaTech ResearchCorporation Through: Universityof GeorgiaResearch Foundation
AcademicResearch Infrastructure Direct

47.041 47.049 47.050 47.070 47.074 47.075 47.076 47.077

Various Various Various 5-37319 Various 97-98 TWINNING NSF-8954793

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

18,610
98,658 (R) -1,845 (R) 8,484 (R) 105,297
1,001,268

219,587 (R) 7,707,152 (R)
80,250 (R)
8,006,989
640,617 (R) 2,733,994 (R)
8,581 (R)
3,383,192
33,608 (R)
763,328 (R)
13,695 (R)
810,631
232,909 (R) 2,246,065 (R)
67,875 (R)
2,546,849
501,442 (R) 220,986 (R) 154,548 (R) 264,421 (R)
1,141,397
95,851 (R)
218,931 (R) 4,963 (R)
319,745
947,670 (R)
1,032,716 (R) 9,048 (R)
1,989,434
860,234

E - 17

State of Georaia - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the FISCal Year Ended .hnc 30. 1995

National Science Foundation Other Federal Assistance Direct Through: Boston College Through: Florida Agricultural and Mechanical University Through: GeorgiaTechResearch Corporation Through: Michigan StateUniversity Through: Swarthmore College Through: University of Georgia Research Foundation
AGENCY TOTAL
Small Business Administration BusinessDevelopment Assistance to Small Business Direct SmallBusinessDevelopment Center Direct Other FederalAssistance Through: Georgia Tech Research Corporation
AGENCY TOTAL
Smithsonian Institute Other Federal Assistance Through: University of Georgia Research Foundation
AGENCY TOTAL
Tennessee Valley Authority Other Federal Assistance Direct Through: Georgia Tech Research Corporation Through: University of Kentucky Research Foundation
AGENCY TOTAL
Veterans Affain, U. S. Department of Blind Rehabilitation Centers and Clinics Direct Veterans NursingHomeCare Direct Veterans StateDomiciliary Care Direct Veterans StateNursing HomeCare Direct

CFDA NUMBER
47.XXX
59.005 59.037 59.XXX
60.XXX
62.XXX
64.007 64.010 64.014 64.015

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

865-6 C-9549
61-2345 REC-9618223
Various

1,989,530 (R) 22,202 49,792
2,550,039 (R) 219
23,565 (R) 60,063 8,930,208 (R)
13,625,618
32,684,089

774 (R) 1,855,602 (R)
113,093 (R) 1,969,469

F9536PC02510

_ _ _ _ _3::;,5::.;4..:..4 (R) 3,544

4-334419719

17,868 (R) 27,524 (R) _ _ _ _....;;.:1,.:..:16.;;..5 (R)
46,557
46,557

721 (R) 16,135 (R) 602,889 7,416,952

E - 18

L L L
L
I I
~

State of GeortJia - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1995

Veterans Affairs, U. S. Department of
Veterans StateHospitalCare Through: GeorgiaTechResearch Corporation Through: University of Georgia Research Foundation
Veterans Educational Assistance Direct
Vocational Rehabilitation forDisabled Veterans Direct
OtherFederal Assistance Direct Through: GeorgiaTech Research Corporation

CFDA NUMBER
64.016
64.111 64.116 64.XXX

AGENCY TOTAL
Environmental Protection Agency
StateIndoorRadonGrants Direct
StateUnderground Water Source Protection Direct
Water Pollution Control - LakeRestoration Cooperative Agreements
Direct
Construction Management Assistance Direct
Water Quality Management Planning Through: FloridaDepartment of Environmental Protection
Capitalization Grants for Stale Revolving Funds Direct
NonpointSourceImplementation Grants Direct Through: University of Georgia Research Foundation

66.032 66.433 66.435
66.438 66.454 66.458 66.460

Wetlands Protection - DevelopmentGrants Direct Through: Universityof GeorgiaResearch Foundation

66.461

NationalPollutant DischargeElimination SystemRelated State Program Grants Direct
ChesapealceBay Program Through: Universityof GeorgiaResearch Foundation
Wastewater Operator Training Grant Program (Technical Assistance)
Direct

66.463 66.466 66.467

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

RSCHAGREE

12,012 (R) 19 (R)
12,031
338,919
77
1,193,457 (R) 25,726 (R)
1,219,183
9,606,907

120,991

$

99,689

Various C9994458-97-0
X994304-92

11,844
290,851
101,467 (R)
24,946,154 (3)
1,750,960 5,685 (R)
1,756,645
416,732 31,464 (R) 448,196

825014-01

70,309 691 (R)

32,500

189,019,146 (3)

E - 19

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 199(5

Environmental Protection Agency
Capitalization Grants for Drinking Water State Revolving Fund
Direct
Hardship Grants Program for Rural Communities Direct
Environmental Protection~ Consolidated Research Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation

CFDA NUMBER
66.468
66.470 66.500

Performance Partnership Grant Direct

66.605

Surveys, Studies,lnvestigations and Special Purpose Grants

66.606

Direct

Through: Southeast Rural Community Assistance Project, Incorporated

One Stop Reporting Direct

66.608

Consolidated Pesticide Enforcement Cooperative Agreements Direct

66.700

TSCA Title IV State Lead Grants Certification of LeadBased Paint Professionals Direct

66.707

Pollution Prevention Grants Program Direct

66.708

Superfund State Site ~ Specific Cooperative Agreements Direct

66.802

Leaking Underground Storage Tank Trust Fund Program Direct

66.805

Solid Waste Management Assistance Direct

66.808

Superfund State Core Program Cooperative Agreements Direct

66.809

Other Federal Assistance

66.XXX

Direct

Through: Georgia Tech Research Corporation

Through: Southeast Rural Community Assistance Project, Incorporated

Through: University of Georgia Research Foundation

Through: WWETCO, LLC.

AGENCY TOTAL
Nuclear Regulatory Commission Enhance Technology Transfer and Dissemination of Nuclear Energy Process and Safety Information Direct
AGENCY TOTAL

77.003

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

Various X825622-01-0

723,417 (3)
23,302
79,103 (R) 610,879 (R) 934,742 (R) 1,624,724
9,312,863
94,145 (R) 4,492
98,637
5,582
602,324

326,831

63,535

808,600

635,146

217,619

$

451,973

T 902858-01-2 Various
CX825769-01-0

86,756 (R) 2,265,171 (R)
21,408 82,724 (R)
8,254 (R)
2,464,313

45,238,203

189,019,146

35,585 35,585

E-20

L.1. . ' : ...
If
L
~'_._.

State of GeorfJia - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 199<5

Energy, U. S. Department of
StateEnergyProgram Direct
Weatherization Assistance forLow-Income Persons Direct
Office of EnergyResearchFinancial AssistanceProgram Direct Through: Georgia TechResearch Corporation Through: University of Georgia Research Foundation
UniversityCoal Research Through: GeorgiaTech Research Corporation
Environmental Restoration Through: Georgia TechResearch Corporation
NuclearEnergy,ReactorSystems,Development, and Technology
Direct
National Industrial Competitiveness through Energy, Environment, andEconomics
Direct
OtherFederal Assistance Direct Through: GeorgiaTechResearch Corporation Through: Medical College of Georgia Research Institute Through: National Institute forPetroleum and Energy Research Through: University of Georgia Research Foundation Through: XavierUniversity
AGENCY TOTAL
United States Information Agency
Educational Exchange - University Lecturers (professors) and Research Scholars
Direct
Other Federal Assistance Direct
AGENCY TOTAL
Federal Emergency Management Agency
Community-Based Anti-Arson Program Direct
Hazardous Materials Training Program forImplementation of theSuperfund Amendment andReauthorization Act
(SARA) of 1986 Direct
StateDisasterPreparedness Grants Direct
Hazard Mitigation Assistance Direct

CFDA NUMBER
81.041 81.042 81.049
81.057 81.092 81.095 81.105 81.XXX
82.002 82.XXX
83.008 83.011 83.505 83.519

PASS11IROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

Various
G4P51609 Various

803,579
1,620,383
49,723 (R) 1,671,028 (R) 1,921,047 (R) 3,641,798
24,542 (R)
24,324 (R)

537,377

S

2,319

1,218,183 (R) 2,881,701 (R)
102,110 (R)
4,900 12,345,913 (R)
35,557
16,588,364

23,242,686

-657 359,703 (R) 359,046
2,022
90,811 48,831 71,150

E - 21

State of GeorBia- - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30. 1996

Federal Emergency Management Agency
Emergency Management State and Local Assistance Direct
Mitigation Assistance Direct
Disaster UnemploymentAssistance Direct
Public AssistanceGrants Direct Through: City of Atlanta

CFDA NUMBER

PASSTHROUGH ENTITY IDENTIFYING
NUMBER

83.534 83.535 83.541 83.544

National Arson PreventionInitiative Direct
First Responder Anti-TerrorismTraining Assistance Direct
Other Federal Assistance Through: GeorgiaTech ResearchCorporation
AGENCY TOTAL
Education, U. S. Department of
Adult Education- State Grant Program Direct
Federal SupplementalEducationalOpportunity Grants (SFA) Direct
Title I Grants to LocalEducationalAgencies Direct
Migrant Education- Basic State Grant Program Direct Through: Southern Pine MigrantEducational Agency

83.546 83.547 83.XXX
84.002 84.007 84.010 84.011

Title I Program for Neglectedand Delinquent Children Direct
Undergraduate InternationalStudies and Foreign LanguagePrograms Direct
International: Overseas- Group Projects Abroad Direct
Special Education ~ Innovation and Development Direct
Early Education for Childrenwith Disabilities Direct Through: Universityof Kansas

84.013 84.016
84.021 84.023 84.024

H024D70028

Services for Childrenwith Deaf-Blindness Direct

84.025

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

2,509,153 352,432 47,915
72,308,421 (I) 8,226
72,316,647 17,975 50,000 131,683 (R)
75,638,619

9,934,793 5,822,364 190,865,637 4,623,153
30,865 4,654,018 1,373,235
72,198 125,540 23,269 (R) 39,388 41,320 (R)
80,708 428,141

E-22

L L L L L

State of GeorSla - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Rscal Year Ended June 3D, 1996

Education, U. S. Department of
Special Education - Grants to States (SEC) Direct Through: University of Georgia Research Foundation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

84.027

Various

Special Education - Personnel Development and Parent Training
Direct
Higher Education- InstitutionalAid Direct
Federal Family Education Loans (SFA) Direct
Federal Work-Study Program (SFA) Direct
Public Library Services Direct
Interlibrary Cooperation and Resource Sharing Direct
Federal Perkins Loan ProgramFederal Capital Contributions (SFA) Direct
TRIO - Student Support Services Direct
TRIO - Talent Search Direct
TRIO - Upward Bound Direct
Vocational Education - Basic Grants to States Direct
VocationalEducation- Consumer and HomemakerEducation Direct
Federal Pell Grant Program (SFA) Direct
TRIO - Educational Opportunity Centers Direct
State Student Incentives Grants Direct
Special Education- PostsecondaryEducation Programs for Personswith Disabilities
Through: Universityof Tennessee
Special Education - Program for Severely Disabled Children Direct
Fund for the Improvementof PostsecondaryEducation Direct
EducationalResearchand Development Direct
Minority ScienceImprovement Direct

84.029
84.031 84.032 84.033 84.034 84.035 84.038
84.042 84.044 84.047 84.048 84.049
84.063 84.066 84.069 84.078
84.086 84.116 84.117 84.120

8666-02-03

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

73,751,836 69,107
73,820,943
484,266 (R) 4,438,396 36,042,258 (3) 7,428,001 2,709,803
67,581
519,299 (3) 1,339,781 (R)
803,152 2,476,603 (R) 28,146,046 (1)
-3,749 107,674,642
1,205,143 (R) 99,050 (R)
54,866 236,743 (R) 102,084 (R)
1,629 21,033

1,591,000,000 (3) 38,704,806 (3)

E- 23

State of GeoPSla - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, I99B

Education, U. S. Department of
Rehabilitation Services- Vocational Rehabilitation Grants to States
Direct
Rehabilitation Long-Term Training Direct
National Institute on DisabilityandRehabilitation Research Direct
BusinessandInternational Education Direct
PublicLibrary Construction andTechnologyEnhancement Direct
Training Interpreters-for Individuals who areDeaf and Individuals who are Deaf-Blind
Through: Universityof Tennessee
Rehabilitation Services- ClientAssistanceProgram Direct
Immigrant Education Direct
Eisenhower Mathematics andScienceEducation State Grants Direct Through: Mississippi StateUniversity Through: MuscogeeCounty Boardof Education

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

84.126
84.129 84.133 84.153 84.154 84.160
84.161 84.162 84.164

7835-03-03

Independent Living - State Grants Direct
Special Education - Preschool Grants (SEq Direct Through: VariousBoardsof Edueation

84.169 84.173

Vocational Education - Community BasedOrganizations Direct
Rehabilitation Services- Independent LivingServicesfor Older Individuals Who are Blind
Direct
SpecialEducation - Grants forInfants andFamilies with Disabilities
Direct
Drug & Violence PreventionlHigher Education! Instituticn-Wide Direct
Safe and Drug-Free Schools and CommunitiesNational Programs Direct
ByrdHonorsScholarships Direct
Safe andDrug-Free SchoolsandCommunities - StateGrants Direct
Supported Employment Services for Individuals with SevereDisabilities
Direct

84.174 84.177 84.181 84.183 84.184 84.185 84.186 84.187

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

62,114,044 (R) 250,192 (R) 18,259 (R) 73,629 (R) 724,970
11,004 253,928 1,227,431
60,197 6,079 10,000 (I) 76,276
660,998 9,589,878
75,520 9,665,398
-1,260
171,463
5,254,395 (R)
14,787
20,696 (R) 767,010 12,442,840 (R)
670,662

E-24

L L L
If
L
r;: f
L-,
L-
L - . - ___
L~
L._
----
- - ~.

State of Georsia
SChedule of Expenditures of Federal Awards For the FISCal Year Ended .knc 30. 199B

Education, U. S. Department of
Bilingual EducationSupport Services Direct
Education for Homeless Children and Youth Direct
Graduate Assistance in Areas of National Need Direct
Even Stan - StateEducational Agencies Direct
Fund for the Improvement of Education Direct
Capital Expenses Direct
McNair Post-BaccalaureateAchievement Direct
State School Improvement Grants Direct
Centers for International Business Education Through: Georgia Tech Research Corporation
State Grants for Assistive Technology Direct
Income ContingentLoan Program Direct
Tech-Prep Educa.tion Direct Through: Muscogee County Board of Education
Literacy Programsfor Prisoners Direct
RehabilitationTraining. ContinuingEducation Direct
RehabilitationTraining - State VocationalRehabilitation Unit In-ServiceTraining Direct
Federal Direct Loan (SFA) Direct
Goals 2000 - State and Local Education Systemic ImprovementGrants Direct
Eisenhower ProfessionalDevelopmentState Grants Direct
Charter Schools Direct
Innovative EducationProgram Strategies Direct
National Institute on the Education of At-Risk Students Through: Universityof Georgia Research Foundation
Technnlogy Literacy Challenge Fund Grants Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

84.194 84.196 84.200 84.213 84.215 84.216 84.217 84.218 84.220 84.224 84.226 84.243
84.255 84.264 84.265
84.268 84.276
84.281 84.282 84.298 84.306 84.318

Various

18,147 668,685
64,736 (R) 2,427,684
29,498 33,212 202,294 (R) -5,377 281,854 (R) 704,173
1,880,246 5,000
1,885,246 49,796 661,017 (R)
149,669 260,354,431
20,710,572 8,138,492 (R) 937,595 7,917,117 213,009 (R) 4,816,053

147,205 (3)

E- 25

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards For the Rscal Year Ended June 30, 1993

Education, U. S. Department of
OtherFederal Assistance Direct Through: GeorgiaTechResearch Corporation Through: National Writing Project Corporation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

84.XXX

96GA06

AGENCY TOTAL
Consumer Product Safety Commission, U. S.
OtherFederal Assistance Direct
AGENCY TOTAL
National Archives and Records Administration
National Historical Publications andRecords Grants Direct
AGENCY TOTAL
Health and Human Services, U. S. Department of
Public Health and Social Services Emergency Fund Direct
Special Programs for the Aging. Title vn, Chapter 3
Programs forPrevention of Elder Abuse,Neglect, and Exploitation
Direct
Special Programs for the Aging - Title VU, Chapter 2 Long-Term CareOmbudsman ServicesforOlderIndividuals
Direct
Special Programs for the Aging - Title ill, Part F - Disease Prevention andHealth Promotion Services
Direct
Special Programs for the Aging - Title ill, Part B Grantsfor Supportive Services and Senior Centers (AC) Direct
Special Programs for the Aging - Title ill, Part C Nutrition Services (AC) Direct
Special Programs for the Aging - Title Ill, Part D - In-Home Services for Frail Older Individuals Direct
Special Programs for the Aging - Title IV - Training, Research andDiscretionary Projects andPrograms Direct
Demonstration Grants forResidential Treatment for Women and Their Children Through: Thomas County MHMRSA Area Services
FoodandDrugAdministration - Research Direct

87.XXX
89.003
93.003 93.041 93.042 93.043 93.044 93.045 93.046 93.048 93.102 93.103

IHD8TI00594-03

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

171,696 (R) 128,136 (R)
23,402 200
323,434
886,045,532

1,629,852,011

3,493 3,493

62,765 62,765

648,977
92,735 86,716 304,875 6,069,417 9,063,450 193,291 149,822 97,700 (R) 35,140

E-26

L L L L
L

State of GeorfJia - - - - - - -
SChedule of Expenditures of Federal Awards
For the Rscal Year Ended June 30, 1993

Health and Human Sen-ices, U. S. Department of
Minority International Research Training Grant in the Biomedical andBehavioral Sciences Direct
Maternal and Child Health Federal ConsolidatedPrograms Direct
BiologicalResponseto Environmental Health Hazards Direct Through: Medical Collegeof GeorgiaResearch Institute
BiometryandRiskEstimation - Health Risks fromEnvironmental Exposures
Through: University of Georgia Research Corporation
ProjectGrants andCooperative Agreements for Tuberculosis Control Programs
Direct
Grants for Technical AssistanceActivities Related to the Block Grant forCommunity Mental HealthServices - Technical Assistance Centers forEvaluation Direct
OralDiseasesandDisorders Research Through: GeorgiaTech ResearchCorporation Through: MedicalCollegeof GeorgiaResearch Institute Through: University of Georgia Research Foundation
NurseAnesthetist Traineeships Through: Medical Collegeof GeorgiaResearch Institute
MentalHealth Planning andDemonstration Projects Direct
Emergency Medical Servicesfor Children Direct
Primary CareServices- Resource Coordination and Development Primary CareOffices
Direct
Injury Preventionand Control Researchand State and Community Based Programs Direct
Financial Assistance forDisadvantaged Health ProfessionsStudents
Direct
Projectsfor Assistance inTransition from Homelessness (PATH) Direct
mv Demonstration Program forChildren, Adolescents,
and Women Direct
HealthProgram forToxic Substances andDisease Registry Through: GeorgiaTech ResearchCorporation
Grants for StateLoan Repayment Direct

CFDA NUMBER
93.106 93.110 93.113
93.115 93.116 93.119
93.121
93.124 93.125 93.127 93.130 93.136 93.139 93.150 93.153 93.161 93.165

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

1R013ES08346

70,876 192,980 40,329 (R) 87,409 (R) 127,738
27,170 (R)
2,314,559

DE0976I

3,751
1,508 (R) 738,514 (R) 216,216 (R) 956,238
14,605
37,917
75,269

144,178

33,500

s

53,818 (R)

300,000

459,102 288,267 (R)
86,525

145,112

E-27

State of Georgia
SChedule of Expenditures of Federal Awards For the Rscal Year Ended .knc 30. 1993

Health and Human Sen-ices, U. S. Department of
HumanGenomeResearch Through: GeorgiaTechResearch Corporation Through: MedicalCollegeof GeorgiaResearchInstitute Through: Universityof Georgia Research Foundation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

93.172

HGOI362A

ResearchRelatedto Deafness andCommunication Disorders Direct Through: GeorgiaTechResearch Corporation Through: Medical College of Georgia Research Institute

93.173

DisabilitiesPrevention Direct
National Research Services Awards Direct
Allied Health Project Grants Direct
Interdisciplinary Training for HealthCarefor Rural Areas Direct
ChildhoodLeadPoisoningPrevention Projects- Stateand Community-Based Childhood LeadPoisoning Prevention andSurveillance of Blood Lead Levelsin Children Direct
Human Health Studies> Applied Research and Development Direct
Family Planning- Services Direct
HealthServicesResearch andDevelopmentGrants Direct Through: MedicalCollegeof GeorgiaResearchInstitute

93.184 93.186 93.191 93.192 93.197
93.206 93.217 93.226

Indian Health Service - Health Management Development Program Through: Medical College of Georgia Research Institute
Traumatic BrainInjury Direct
AbstinenceEducation Direct
Mental Health Research Grants Direct Through: Medical College of Georgia Research Institute Through: Universityof GeorgiaResearch Foundation

93.228 93.234 93.235 93.242

Various

HealthCentersGrants forMigratory and Seasonal Farmworkers Direct
Immunization Grants Direct
Alcohol NationalResearch ServiceAwardsfor ResearchTraining
Through: Universityof GeorgiaResearch Foundation

93.246 93.268 93.272

AA07473B

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

157,000 (R) 9,680 32,233 (R)
198,913 227,669 (R)
15,985 (R) 7,402 (R) 251,056 -20,748
78,752 (R)
139,505
177,752
209,640
77,545 (R) 5,710,949
676,579 55,549 (R)
732,128
1,291 (R)
18,139
1,150,045 823,510 (R) 332,100 (R) 710,706 (R)
1,866,316
558,850 7,876,027
145,377 (R)

18,941,352 (4)

E-28

L
t,
L L
~

State of Georgia
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 199B

Health and Human Services, U. S. Department of
Alcohol Research Programs Through: Medical College of Georgia Research Institute Through: University of Georgia Research Foundation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

93.273

Various

DrugAbuse NationalResearchServiceAwards for Research Training
Direct Through: GeorgiaTech Research Corporation

93.278

Drug Abuse ResearchPrograms Direct Through: GeorgiaTech Research Corporation Through: Medical College of Georgia Research Institute Through: University of Georgia Research Foundation

93.279

Various

MentalHealthResearch Career/Scientist DevelopmentAwards
Through: Universityof Georgia Research Foundation
Mental HealthNational Research ServiceAwards for Research Training Through: Centersfor Disease Control Through: University of Georgia Research Foundation

93.281 93.282

Various
R13/CCR413828-01 MH11755

Centers forDiseaseControl andPrevention- Investigations andTechnical Assistance
Direct
NursePractitioner andNurse-Midwifery Education Programs Direct
Comparative Medicine Direct Through: University of Georgia Research Foundation

93.283 93.298 93.306

RRII733

Health Professions Student Loans, Including Primary Care LoanslLoans for Disadvantaged Students (SFA) Direct
Professional NurseTraineeships Direct
NurseTraining Improvement - Special Projects Direct
Nursing Research Direct
Nursing Student Loans (SFA) Direct
Biomedical Technology Direct Through: MedicalCollegeof Georgia Research Institute
of Through: University Georgia Research Foundation

93.342
93.358 93.359 93.361 93.364 93.371

Various

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

185,302 (R) 1,191,197 (R) 1,376,499
4,763 (R) 5,241 (R) 10,004
226,211 (R) 396,426 (R) 518,866 (R) 127,944 (R) 1,269,447
174,769 (R)
7,500 (R) 13,721 (R) 21,221
2,461,965
203,458
341,614 (R) 75,743 (R)
417,357
-228,171 (3)
304,093
303,817 (R)
109,987 (R)
-32,512 (3)
1,713 (R) 13,856 708,762 (R) 724,331

3,692,753 (3) 1,084,270 (3)

E-29

State of Georgia - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30. 199B

Health and Human Sen-ices, U. S. Department of
Grants for GraduateTraining in Family Medicine Direct
Research Infrastructure Through: University of Georgia Research Foundation
AcademicResearch Enhancement Award Through: University of Georgia Research Foundation
Cancer Cause and Prevention Research Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation

crDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

93.379 93.389 93.390 93.393

RR11473A Various
CA71023

Cancer Treatment Research Through: Medical College of Georgia Research Institute
CancerBiologyResearch Through: University of Georgia Research Foundation
Cancer Research Manpower Through: University of Georgia Research Foundation
Cancer Control Through: Medical College of Georgia Research Institute
FamilyPreservation and Support Services Direct
TemporaryAssistancefor NeedyFamilies Direct
Job Opportunities and Basic Skills Training Direct
Child Support Enforcement Direct
State LegalizationImpact Assistance Grants Direct
Refugee and Entrant Assistance> State AdministeredPrograms Direct
Low-IncomeHome Energy Assistance Direct
Community Services Block Grant Direct
Community Services Block Grant - Discretionary Awards Through: National Collegiate Athletic Association Through: Virginia Water Project, Incorporated

93.395 93.396 93.398 93.399 93.556 93.558 93.561 93.563 93.565 93.566
93.568 93.569 93.570

CA64462A CA68072-03

Community Services Block GrantDiscretionary Awards CommunityFood and Nutrition Direct
Child Care for Families At-Risk of Welfare Dependency Direct

93.571 93.574

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

162,000 57,529 (R) 68,317 (R) 1,151,914 (R) 69,268 (R) 64,788 (R) 1,285,970 38,397 (R) 152,549 (R) 51,222 (R) 375,710 (R) 7,373,183 (R) 265,439,439 -424,815 (I) 63,622,624 368,538
5,444,373 10,987,682 12,934,454
160,311 -172
160,139
67,811 631

E - 30

L L
L
L

State of Georgia - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, I99B

Health and Human Services, U. S. Department of
Child Care and Development Block Grant Direct Through: Georgia Child Care Council
RefugeeandEntrant Assistance- Discretionary Grants Direct
RefugeeandEntrant Assistance- Targeted Assistance Direct
EmpowennentZones Program Direct
StateCourtImprovement Program Direct
Child Care Mandatory and Matching Funds of the Child CareandDevelopmentFund
Direct
Grants to Statesfor Access andVisitationPrograms Direct
Head Start Direct Through: Ninth District Opportunity, Incorporated Through: University of Georgia Research Foundation
Developmental Disabilities BasicSupport and Advocacy Grants
Direct Through: GeorgiaCouncilon Development Disabilities
Developmental Disabilities Projects of National Significance Direct
Developmental Disabilities University Affiliated Programs Direct
Children's JusticeGrants to States Direct
Child Welfare Services - State Grants Direct
Adoption Opportunities Direct
Temporary ChildCare andCrisisNurseries Direct
Foster Care - Title IV-E Direct
AdoptionAssistance Direct
SocialServices BJockGrant Direct Through: City of Albany

eFDA
NUMBER
93.575
93.576 93.584 93.585 93.586 93.596 93.597 93.600
93.630
93.631 93.632 93.643 93.645 93.652 93.656 93.658 93.659 93.667

PASS-THROUGH ENTITY IDENTIFYING
NUMBER 427-93-71553&71554
427-93-17429
Various
1200-006-20-00-012-3000

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

52,521,239 84,968 (R) 27,852 7,408
52,641,467
331,875
585,590
50,000,000
262,357
47,556,067
219,034
2,169,626 (R) 21,000 157,928 (R)
2,348,554
1,633,639 (R) 10,939 (R)
1,644,578
86,323 (R)
114,140 (R)
204,932
8,774,562
158,596
139,976
36,176,418
10,659,979
70,509,611 98,490
70,608,101

E - 31

State of Georgia
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 199B

Health and Human Services, U. S. Department of
Child Abuse and Neglect State Grants Direct
ChildAbuseandNeglectDiscretionary Activities Direct
FamilyViolencePrevention andServices/Grants forBattered Women's Shelters- Grants to StatesandIndian Tribes Direct
Community-Based Prevention Program Direct
Grants to StatesforPlanning andDevelopmentof DependentCarePrograms
Direct
Independent Living Direct
Medicare - Hospital Insurance Direct
State Medicaid Fraud Control Units (MC) Direct
StateSurveyandCertification of Health CareProviders and Suppliers (MC) Direct
Medical Assistance Program (MC) Direct
HealthCareFinancing Research, Demonstrations andEvaluations Direct Through: Medical College of Georgi. Research Institute

CFDA NUMBER
93.669 93.670 93.671
93.672 93.673
93.674 93.773 93.775 93.777
93.778 93.779

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

Scholarships for Students of Exceptional Financial Need (SFA) Direct
Cell Biology and Biophysics Research Direct Through: GeorgiaTechResearch Corporation Through: University of Georgia Research Foundation

93.820 93.821

Various

Area Health Education Centers Direct
Heart andVascular DiseasesResearch Through: Georgi. Tech Research Corporation Through: Medical College of Georgi. Research Institute Through: University of Georgi. Research Foundation

93.824 93.837

Various

LungDiseasesResearch Through: Medical College of Georgi. Research Institute Through: University of Georgia Research Foundation

93.838

Various

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

761,556
126,345
1,213,567 238,320
-10,924
1,025,935 3,026,008
2,078,033
2,062,563 2,280,635,408
232,878 50,464 (R)
283,342 74,464
252,194 (R) 48,654 (R) 895,658 (R)
1,196,506
1,088,058
3,094,429 (R) 2,108,200 (R)
36,165 (R) 5,238,794
206,762 (R) 333,957 (R) 540,719

E- 32

L
L
L

State of GeoPfJia
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, I99B

Health and Human Services, U. S. Department of
Blood Diseases and ResourcesResearch Direct Through: GeorgiaTechResearch Corporation Through: Medical College of Georgi. Research Institute

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

93.839

Arthritis, Musculoskeletal andSkinDiseasesResearch Through: Medical College of Georgi. Research Institute Through: University of Georgia Research Foundation

93.846

AR42069A

Diabetes,EndocrinologyandMetabolism Research Through: GeorgiaTechResearch Corporation Through: Medical College of Georgi. Research Institute Through: University of Georgia Research Foundation

93.847

Various

DigestiveDiseases andNutrition Research Direct Through: Medical College of Georgi. Research Institute Through: Universityof GeorgiaResearch Foundation

93.848

DK47246

KidneyDiseases. UrologyandHematology Research Through: Medical College of Georgi. Research Institute Through: University of Georgia Research Foundation

93.849

Various

Clinical Research Related to Neurological Disorders Through: Medical College of Georgi. Research Institute
BiologicalBasis Research in theNeurosciences Direct Through: Medical College of Georgi. Research Institute

93.853 93.854

Allergy,ImmunologyandTransplantation Research Direct Through: Georgi. Tech Research Corporation Through: Medical College of Georgi. Research Institute Through: University of Georgi. Research Fouodation

93.855

AI38262A

Microbiology andInfectious DiseasesResearch Direct Through: Medical College of Georgi. Research Institute Through: National Institute of Health Through: University of Georgia Research Foundation

93.856

AI07373B Various

Pharmacology, Physiology, aod Bjorelated Chemistry Research Through: GeorgiaTechResearch Corporation Through: Medical College of Georgi. Research Institute Through: University of Georgia Research Foundation

93.859

Various

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

63,871 37,447 (R) 3,696,456 (R) 3,797,774
201,757 (R) 28,371 (R)
230,128
30,322 (R) 207,027 (R) 384,678 (R) 622,027
309,919 (R) 781,229 (R) 352,909 (R) 1,444,057
50,781 (R) 414,554 (R) 465,335
27,852 (R)
538,165 (R) 305,858 (R) 844,023
42,071 (R) 64,978 (R) 33,425 (R) 148,417 (R) 288,891
960,635 (R) 55,201 (R) 63,807 (R)
2,435,165 (R) 3,514,808
453,712 (R) 118,276 (R) 879,375 (R) 1,451,363

E - 33

State of GeorfJia - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30. I99B

Health and Human Services, U. S. Department of
Genetics andDevelopment BiologyResearch Through: Georgia TechResearch Corporation Through: Medical Collegeof GeorgiaResearch Institute Through: University of GeorgiaResearchFoundation

CFDA NUMBER
93.862

PASS-THROUGH ENTITY IDENTIFYING
NUMBER
Various

Population Research Direct Through: MedicalCollegeof GeorgiaResearch Institute

93.864

Research for Mothers and Children Direct Through: MedicalCollegeof GeorgiaResearchInstitute Through: University ofGeorgia Research Foundation

93.865

Various

Aging Research Direct Through: GeorgiaTechResearch Corporation Through: University of Georgia Research Foundation

93.866

Various

VisionResearch Through: Georgia TechResearch Corporation Through: MedicalCollegeof GeorgiaResearch Institute

93.867

Medical LibraryAssistance Through: GeorgiaTech ResearchCorporation
Minority Accessto Research Careers Direct
Grants forPhysicianAssistantTraining Program Direct
Grants forFaculty Development in FamilyMedicine Direct
Rural Health Medical Education Demonstration Projects Direct
Rural Outreach- Rural NetworkDevelopmentProgram Through: Ninth District Opportunity,Incorporated
Grants to Slates for Operationof Offices of Rural Health Direct
NurseAnesthetist Education Programs Direct
mv CareFonnulaGrants
Direct
Grants to ProvideOutpatient EarlyIntervention Services
with Respectto mvDisease
Direct
Cooperative Agreements forState-Based Comprehensive Breast and CervicalCancerEarly DetectionPrograms Direct
Scholarshipsfor HealthProfessionsStudentsfrom DisadvantagedBackgrounds
Direct

93.879 93.880 93.886 93.895 93.906 93.912 93.913 93.916 93.917 93.918
93.919
93.925

MOA

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

119,473 (R) 205,661 (R) 1,351,412 (R) 1,676,546
77,950 492,999 (R) 570,949
1,323,720 (R) 665,704 (R) 686,180 (R)
2,675,604
134,358 (R) 677,707 (R) 259,489 (R) 1,071,554
50,863 (R) 1,576,435 (R) 1,627,298
50 (R)
133,108
320,051
191,472
386,900 (R)
5,231 (R)
60,784
225,892
7,739,949
415,825
2,913,373
126,731 (R)

E -34

L
L
L
L

State of Georala - - - - - - - -
SChedule of Expenditures of Federal AWards For the Fiscal Year Ended June 30, 199B

Health and Human Services, U. S. Department of
Center for Medical Rehabilitation Research Through: University of GeorgiaResearchFoundation
Demonstration Grants to Statesfor Community Scholarships Direct
Fogarty International Research Collaboration Award Direct Through: Medical College of Georgia Research Institute Through: University of GeorgiaResearch Foundation
ProjectGrants for Renovation or Construction at Tertiary Perinatal Facilities Direct
Comprehensive Residential DrugPrevention andTreattnent Projects for Substance-Using WomenandTheirChildren
Direct
Cooperative Agreements to Support Comprehensive School Health Programs to Prevent the Spread ofIDY
and Other Important Health Problems Direct
HIV Prevention Activities> Health Department Based Direct
Research, Treatment andEducation Programs on Lyme Disease in theUnitedStates Direct
Epidemiologic Research Studies of Acquired Immunodeficiency Syndrome (AIDS) and Human Immunodeficiency Virus(HIV) Infection in SelectedPopulation Groups Direct Through: University of GeorgiaResearch Foundation
Human Immunodeficiency Virus (lllV)/Acquired Immunodeficiency Virus Syndrome (AIDS) Surveillance Direct
AssistanceProgram forChronic Disease Prevention and Control
Direct
Community - Based Comprehensive IDY/STDfIB Outreach Services for High Risk Substance Abusers Demonstration Program Direct
Demonstration Grants to Stateswith Respectto Alzheimer's Disease Direct
Agricultural Health and Safety Programs Direct Through: University of GeorgiaResearch Foundation
Block Grantsfor Community Mental Health Services Direct

CFDA NUMBER
93.929 93.931 93.934
93.935 93.937 93.938 93.940 93.942 93.943
93.944 93.945 93.949 93.951 93.956
93.958

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

Various Various

26,482 (R)
15,077
529 -2,508 (R) 34,541 (R) 32,562

.S

4,880

563,721

90,486 5,968,286
107,152

34,000

U64/CCU409687-05 427-93-42057

96,780 (R) 223,355 (R) 320,135
742,770
159,549
246,806 (R)
204,376 90,742 49,851 (R) 140,593
5,846,927

E- 35

State of GeoPfJia - - - - - - - -
SChedule of Expenditures of Federal Awards For the Fiscal Year Ended June 3D, 199B

Health and Human Services, U. S. Department of
BlockGrants forPrevention andTreatment of SubstanceAbuse
Direct Through: Universityof GeorgiaResearchFoundation

CFDA NUMBER

PASS-THROUGH ENI:ITY IDENTIFYING
NUMBER

93.959

427-93-61980

HealthAdministration Traineeships andSpecialProjects Program Direct
Preventive Health Services- SexuallyTransmitted DiseasesControl Grants
Direct
Mental HealthDisaster Assistance and EmergencyMentalHealth
Direct
Grants for Establishment of Departments of FamilyMedicine
Direct
Cooperative Agreements for State-Based DiabetesControl Programs andEvaluation of Surveillance Systems
Direct
SeniorInternational Fellowships Through: MedicalCollegeof GeorgiaResearchInstitute
National Health Promotion Direct
Preventive Health and Health Services Block Grant Direct
Maternal and Child Health Services Block Grant to the States Direct
AdolescentFamily Life ~ Demonstration Projects Direct
OtherFederalAssistance Direct Through: Centersfor Disease Control Through: Dougherty County Board of Health Through: Georgia Child Care Council Through: GeorgiaCouncilon DevelopmentDisabilities Through: Georgia Tech Research Corporation Through: NationalAssociationfor Equal Opportunity in Higher Education Through: NationalCoHegiate AthleticAssociation Through: NorthCarolinaStateUniversity Through: Southwest Georgia Community Health Institute Through: Universityof Connecticut Through: Universityof GeorgiaResearchFoundation

93.962 93.977 93.982 93.984 93.988 93.989 93.990 93.991 93.994 93.995 93.XXX

IPANOWAK
92-1382-05 Various

AGENCY TOTAL
Corporation for National and Community Service Learn andServe America~ School and Community Based Programs Direct

94.004

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

32,607,926 1,092
32,609,018
22,264 (R)
3,375,300
199,405
63,640
191,053 (R)
8,088
-100
5,446,351
17,803,817 (R)
66,378 (R)
451,623 (R),(3) 27,864 (R) 1,360 35,410 (R) 20 (R)
1,438,655 (R) 81
58,012 44,071 (R)
8,980 2,699 (R) 4,219,508 (R) 6,288,243
3,111,844,248

1,085,100
408,986 1,045,508 (3) 1,045,508 26,437,081

693,408

E - 36

L
L L L

State of GeorBia - - - - - - - - - -
SChedule of Expel1ditures of Federal Awards
For the Fiscal Year Ended June 30, 199B

Corporation for National and Community Service
Learnand Serve America - Higher Education Direct Through: Atlanta University Center Through: Campus Compact

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

94.005

SEAMS

Ameriflorps

94.006

Direct

Through: The Georgia Commission for National/Community Service

Training and Technical Assistance Direct

94.009

Senior Companion Program (FGCC) Direct

94.016

Other Federal Assistance

94.XXX

Through: The Georgia Commission for National/Community Service

AGENCY TOTAL

Social Security Administration
Social Security ~ Disability Insurance Direct

96.001

AGENCY TOTAL

Japan-U. S. Friendship Commission
Other Federal Assistance Through: University of Georgia Research Foundation

99.XXX

AGENCY TOTAL

GRAND TOTAL EXPENDITURES OF FEDERALAWARDS

97-54

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

121,426 1,844 (R) 333 (R)
123,603
3,761,553 92,304 (R)
3,853,857
446,349
173,285
58,387 (R)
5,348,889

43,045,749 43,045,749

26,901 (R) 26,901 6,209,218,641

2,439,419,060

E- 37

(This page intentionallY left blank)

L - - - - - - - - - State of Georgia - - - - - - - - -

Notes to the SChedule of Expenditures of Federal Awards

L

For the Fiscal Year Ended June 30.1996

L

PURPOSE OF THE SCHEDULE

Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations,

L

requires a Schedule ofExpenditures of Federal Awards reflecting total expenditures for each Federal fmancial assistance program as identified in the Catalog of Federal Domestic Assistance (CFDA).

SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity - The accompanying schedule includes all Federal fmancial assistance programs administered by the State of Georgia for the fiscal year ended June 30, 1998. Refer to Appendix "A" for a comprehensive listing of organizational units comprising the reporting entity.

Basis of Presentation - The accompanying Schedule ofExpenditures ofFederal Awards is presented in accordance with OMB Circular A-133.

A.

Federal Financial Assistance - Pursuant to the Single Audit Act Amendments of 1996 and OMB Circular A-133,

Federal fmancial assistance is defmed as assistance that a non-Federal entities receive or administer in the form of

grants, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest

subsidies, insurance, food commodities, direct appropriations, and other assistance, but does not include amounts

received as reimbursements for services rendered to individuals for Medicare and Medicaid.

B.

Major Programs - The Single Audit Act Amendments of 1996 and OMB Circular A-133 established a risk-based

approach for defining Major Federal fmancial assistance programs. This approach resulted in 21 of 32 Type A

programs and 11 Type B programs being selected as major programs for the State of Georgia. For the fiscal year

ended June 30, 1998, a Type A program is defined as any Federal program which exceeded $20,467,150 in

expenditures/disbursements/issuances.

Basis of Accounting - The Schedule ofExpenditures ofFederal Awards is prepared using the basis of accounting as described in Note 1 of the Notes to the Financial Statements of the General Purpose Financial Statements (See Section A of this Report).

Expenditures and Expenses - When a state organization receives Federal monies and redistributes such monies to another state organization, (i.e., pass-through funds from the primary recipient to a subrecipient), the Federal assistance is reported in both the primary recipient's and the subrecipient's accounts. This method of reporting expenditures/expenses results in an overstatement of the aggregate level of Federal expenditures/expenses. Therefore, net Federal expenditures/expenses is reported.

OTHER

Thefollowing Notes provide additional pertinent information regarding Federalfinancial assistance.

(1) Expenditures for these programs includes federal, state and/or other funds. In addition, the Unemployment Insurance program (CFDA NO. 17.225) includes Federal expenditures of $63,545,420 and State expenditures of $255,433, 136.

(2) During the fiscal year ended June 30, 1998, the Georgia Department of Human Resources received $41,603,691 in cash rebates from infant formula manufacturers on sales of formula to participants in the Special Supplemental Food Program for Women, Infants, and Children (WIC) (CFDA NO. 10.557). Rebate contracts with infant formula manufacturers are authorized by 7 CFR 246. 16(m) as a cost containment measure. Rebates represent a reduction of expenditures previously incurred for WIC benefit costs. The rebate contract allowed the Department to serve approximately 78,234 additional persons per month during fiscal year 1998.

E- 39

State of Georala - - - - - - - -
Notes to the SChedule of Expenditures of Federal Awards
For the FIScal Year Indcd .knc30,I99B

(3) Federally funded loan programs incurred the following current fiscal year monetary and nonmonetary expenditures:

CFDA NUMBER

GRANT PROGRAM

NEW FEDERAL CAPITAL

MONETARY

FEDERAL REIMBURSEMENT

ADMINISTRATIVE COSTS

NONMONETARY

LOANS OUTSTANDING
AT 07/01/97

LOANS MADE DURING YEAR

23.011 66.458 66.468 84.032 84.038 84.226 93.342
93.364 93.xXX 93.XXX

Appalachian State Research, Technical Assistance. and Demonstration Projects

Capitalization Grants for State Revolving Funds

Capitalization Grants for Drinking

Water State Revolving Funds

$

Federal Family Education Loans

Federal Perkins Loan ProgramFederal Capital Contributions

Income Contingent Loan Program

$

Health Professions Student Loans,

Including Primary Care LoanslLoans

for Disadvantaged Students

$

Nursing Student Loans

$

Pharmacy Loans (00)

$

Veterinary Medicine Loans (00)

$

24,073,108 636,617
317,550 $ 0$
-228,171 -14,088 $
-124,679 -145,412 $

0$ 0$ 0$ 34,405,416 $ 62,367 $ 0$
0 -20,025
0$ 0$

201,900 $

1,325,754 $

234,850

873,046

141,908,374

47,110,772

86,800 1,636,842

1,365,534,941

225,465,059

139,382 0$

32,637,313 147,205

6,067,493

0$ 1,601
220 15

3,520,737 916,674 504,773 540,735

172,016 167,596
0 0

(**) The monetary amount for this program does not equal the monetary amount shown in the schedule. Numerous grants and contracts have been combined for reporting purposes.

(4) Certain programs administered by the Federal government provide goods and services to organizational units of the State in lieu ofmonetary assistance. An analysis, for major programs, of nonmonetary assistance and the values assigned by the Federal government during the year under review is reflected below:

CFDA NO. 10.550 10.551
93.268

The reported amounts, incurred by four organizational units of the State, represent the U. S. Department of Agriculture assigned value of the donated commodities for the Food Distribution Program.
The Federal government provides food stamps to low-income households. The amount of food stamp benefits a household receives depends on the household's size and fmancial circumstances. The Georgia Department of Human Resources is responsible for determining eligibility for participation in the Food Stamp Program. For the year under review, the total value of food stamp benefits distributed as approved by the Department was $548,575,858.
The amount reported represents the U. S. Department of Health and Human Services assigned value of immunizations for vaccine-preventable diseases to eligible individuals.

E-40

L - - - - - - - - - State of Georgia - - - - - - - - -

Notes to the SChedule of Expenditures of Federal Awards

L

For the Rscal Vcar Ended June 30, 199<5

L

(5) Cluster programs are detailed on the Schedule ofCluster Programs and identified as follows on the Schedule ofExpenditures

ofFederal Awards:

L

(AC) Aging (CNC) Child Nutrition

(EFAC) Emergency Food Assistance

L

(ESC) Employment Service (ESCC) CDBG - Entitlement and (HUD-Administered) Small Cities

(FTC) Federal Transit

(FWC) Fish and Wildlife

(FSC) Food Stamp

(FGCC) Foster Grandparent/Senior Companion

(HSC) Highway Safety

(JC) Job Training Partnership Act

(MC) Medicaid

(R) Research and Development

(S8C) Section 8

(SEC) Special Education

(SFA) Student Financial Aid

(6) Circular A-133 requires the Schedule ofExpenditures ofFederal Awards to include, to the extent practical, an identification of the total amount provided to subrecipients from each Federal program. Major programs expenditures presented in the schedule account for approximately 80% oftotal Federal expenditures for the State of Georgia. Provided below is the amount of major programs awards provided to subrecipients:

CFDA NUMBER
16.579
83.544 84.002 84.010
84.048 84.276 84.298 93.585

GRANT PROGRAM
Byrne Formula Grant Program Job Training Partnership Act Cluster Public Assistance Grants Adult Education - State Grant Program Title I Grants to Local Educational Agencies Special Education Cluster Vocational Education - Basic Grants to States Goals 2000 - State and Local Education Systemic Improvement Grants Innovative Education Program Strategies Empowerment Zones Program Research and Development Cluster

AMOUNT PROVIDED TO SUBRECIPIENTS

$

9,628,681

178,088

66,561,563

2,448,085

188,873,701

80,367,512

12,689,922

19,541,054

7,249,325

50,000,000

20,598,062

Total

$

458,135,993

E - 41

(This page intmtionallv left blanR)

L L
L
L
r
,
"-'----'
Schedufe of Ouster 9?roBrams

(This page intentionalIv left blanR)

E-45

- - - - - - - - - State of Georfjia - - - - - - - - -
SChedule of Cluster Programs
For the Fiscal Year Ended June 30, 199B

Food Stamp Cluster (FSC)
Food Stamps State Administrative Matching Grants
for Food Stamp Program
Foster Grandparent/Senior Companion Cluster (FGCC)
Senior Companion Program
Highway Safety Cluster (HSC)
State and Community Highway Safety
Job Training Partnership Act Cluster (JC)
Employment and Training Assistance Dislocated Workers
Job Training Partnership Act
Medicaid Cluster (MC)
State Medicaid Fraud Control Units State Survey and Certification of Health Care Providers
and Suppliers Medical Assistance Program
Research and Development Cluster (R)
Agricultural Research - Basic and Applied Research Plant and Animal Disease, Pest Control, and Animal Care Wildlife Services Federal-State Marketing Improvement Program Grants for Agricultural Research, Special Research Grants Cooperative Forestry Research Payments to Agricultural Experiment Stations Under the
Hatch Act Payments to 1890 Land-Grant Colleges
and Tuskegee University Grants for Agricultural Research -
Competitive Research Grants Food and Agricultural Sciences National Needs Graduate
Fellowship Grants Higher Education Challenge Grants Buildings and Facilities Program Funds for Rural America - Research, Education,
and Extension Agricultural and Rural Economic Research Cooperative Extension Service Commodity Supplemental Food Program Forestry Research

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

10.551 $ 10.561
$
94.016 $

722,403 $

548,575,858

51,776,542

52,498,945 $ ----....;5.4,8.,5-7.5.,8:5.8-

173,285

20.600 $

5,464,438

17.246 $
17.250
$

19,205,593 41,144,217
60,349,810

93.775 $ 93.777
93.778
$

2,078,033 2,062,563
2,280,635,408
2,284,776,004

10.001 $ 10.025 10.028 10.156 10.200 10.202 10.203
10.205
10.206
10.210
10.217 10.218 10.224
10.250 10.500 10.565 10.652

44,540 268,045
14,587 30,789 6,425,220 591,346
4,572,839
437,056
1,255,313
38,744 84,720 1,035,360
12,004 54,957 10,624,133
2,362 682,420

E- 46

L

State of Georgia - - - - - - - -

SChedule of Cluster Programs
For the Fiscal Year Ended June 30. 199B

L

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

L

Research and Development Cluster (R)
Cooperative Forestry Assistance

International Agricultural Research Program

International Training- Foreign Participant

Scientific and Technical Cooperation

Other Federal Assistance

Research and Evaluation Program

Trade Adjustment Assistance

Geodetic Surveys and Services (Geodesy and Applications of

the National Geodetic Reference System)

Sea Grant Support

Fisheries Development and Utilization Research and

Development Grants and Cooperative Agreements Program

Undersea Research

Climate and Atmospheric Research

Marine Fisheries Initiative

Marine Research - Regional Programs

Measurement and Engineering Research and Standards

Advanced Technology Program

Other Federal Assistance

Procurement Technical Assistance for Business Firms

Basic and Applied Scientific Research

Military Medical Research and Development

Basic Scientific Research

Community Economic Adjustment

Basic, Applied, and Advanced Research in Science

and Engineering

Air Force Defense Research Sciences Program

Mathematical Sciences Grants Program

Research and Technology Development

Other Federal Assistance

Other Federal Assistance

Environmental Contaminants

Cooperative Endangered Species Conservation Fund

Administrative Grants for Federal Aid in Sport Fish and

Wildlife Restoration

Assistance to State Water Resources Research Institutes

Geological Survey - Research and Data Acquisition

National Cooperative Geologic Mapping Program

Historic Preservation Fund Grants-In-Aid

Outdoor Recreation - Acquisition, Development

and Planning

State Partnerships

Other Federal Assistance

Other Federal Assistance

Other Federal Assistance

Special Domestic Assignments

Other Federal Assistance

Aviation Research Grants

Highway Training and Education

Other Federal Assistance

Other Federal Assistance

10.664 $ 10.961 10.962 10.963 10.XXX 11.312 11.313 11.400
11.417 11.427
11.430 11.431 11.433 11.464 11.609 11.612 I1.XXX 12.002 12.300 12.420 12.431 12.600 12.630
12.800 12.901 12.910 12.XXX 14.XXX 15.607 15.615 15.618
15.805 15.808 15.810 15.904 15.916
15.977 15.XXX 16.XXX 17.XXX 19.202 19.XXX 20.108 20.215 20.XXX 21.XXX

154,374 5,284 9,480 4,104
2,682,858 138,706 180
29,742 1,238,065
104,676 7,046
30,090 55,335 10,425 -78,298 179,201 5,872,025 111,061 7,882,819
2,766 7,287 64,634
1,175,193 1,998,052
38,380 1,438,628 91,166,438
38,797 8,427
41,890
13,557 5,049
173,324 3,632 79,163
26,537 5,728
1,283,973 68,122
994,653 2,236
2,512,054 154,764 22,595 880,544 20,679

E-47

State of Georgia - - - - - - - -
SChedule of Cluster Programs For the Fiscal Year Ended June 30, 199B

Research and Development Cluster (R)
Aerospace Education Services Program Technology Transfer Other Federal Assistance Promotion of the Humanities - Federal/State Partnership Promotion of the Humanities - Education Development and
Demonstration Other Federal Assistance Engineering Grants Mathematical and Physical Sciences Geosciences Computer and Information Science and Engineering Biological Sciences Social, Behavioral, and Economic Sciences Education and Human Resources Other Federal Assistance Business Development Assistance to Small Business Small Business Development Center Other Federal Assistance Other Federal Assistance Other Federal Assistance Blind Rehabilitation Centers and Clinics Veterans Nursing Home Care Veterans State Hospital Care Other Federal Assistance Water Quality Management Planning Nonpoint Source Implementation Grants Wetlands Protection - Development Grants Chesapeake Bay Program Environmental Protection - Consolidated Research Surveys, Studies, Investigations and Special Purpose Grants Other Federal Assistance Office of Energy Research Financial Assistance Program University Coal Research Environmental Restoration Other Federal Assistance Other Federal Assistance Other Federal Assistance Special Education - Innovation and Development Early Education for Children with Disabilities Special Education - Personnel Development
and Parent Training TRIO - Student Support Services TRIO - Upward Bound TRIO - Educational Opportunity Centers State Student Incentives Grants Special Education - Program for Severely Disabled Children Fund for the Improvement of Postsecondary Education Rehabilitation Long-Term Training National Institute on Disability and Rehabilitation Research Business and International Education

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

43.001 $ 43.002 43.XXX 45.129 45.162
45.XXX 47.041 47.049 47.050 47.070 47.074 47.075 47.076 47.XXX 59.005 59.037 59.XXX 6O.XXX 62.XXX 64.007 64.010 64.016 64.XXX 66.454 66.460 66.461 66.466 66.500 66.606 66.XXX 81.049 81.057 81.092 81.XXX 82.XXX 83.XXX 84.023 84.024 84.029
84.042 84.047 84.066 84.069 84.086 84.116 84.129 84.133 84.153

107,622 2,054,599 7,975,560
24,714
186 72,493 8,006,989 3,383,191 810,631 2,546,850 1,141,397 302,476 1,835,234 13,183,239
455 1,820,146
113,093 3,544 28,690 721 16,135 12,031
1,217,972 101,467 5,685 31,464 691
1,624,724 3,140
2,382,572 3,612,887
24,542 24,324 15,836,209 359,703 131,683 23,269 41,320
290,415 174,649 687,918 910,275 99,050 236,743 33,672 250,192
5,283 32,701

E-48

L
L
L
L
,.~.

State of Georsta - - - - - - - -
SChedule of Cluster Programs
For the Fiscal Year Ended June 30, 1993

Research and Development Cluster (R)
Safe and Drug-Free Schools and Communities National Programs Graduate Assistance in Areas of National Need McNair Post-Baccalaureate Achievement Centers for International Business Education Rehabilitation Training - Continuing Education Eisenhower Professional Development State Grants National Institute on the Education of At-Risk Students Other Federal Assistance Demonstration Grants for Residential Treatment for Women and Their Children Biological Response to Environmental Health Hazards Biometry and Risk Estimation - Health Risks from Environmental Exposures Oral Diseases and Disorders Research Financial Assistance for Disadvantaged Health Professions Students Health Program for Toxic Substances and Disease Registry Human Genome Research Research Related to Deafness and Communication Disorders National Research Services Awards Human Health Studies - Applied Research and Development Health Services Research and Development Grants Indian Health Service - Health Management Development Program Mental Health Research Grants Alcohol National Research Service Awards for Research Training Alcohol Research Programs Drug Abuse National Research Service Awards for Research Training Drug Abuse Research Programs Mental Health Research Career/Scientist Development Awards Mental Health National Research Service Awards for Research Training Comparative Medicine Nurse Training Improvement - Special Projects Nursing Research Biomedical Technology Research Infrastructure Academic Research Enhancement Award Cancer Cause and Prevention Research Cancer Treatment Research Cancer Biology Research Cancer Research Manpower Cancer Control Child Care and Development Block Grant Head Start

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

84.184 $
84.200 84.217 84.220 84.264 84.281 84.306 84.XXX 93.102
93.113 93.115
93.121 93.139
93.161 93.172 93.173 93.186 93.206 93.226 93.228
93.242 93.272
93.273 93.278
93.279 93.281
93.282
93.306 93.359 93.361 93.371 93.389 93.390 93.393 93.395 93.396 93.398 93.399 93.575 93.600

20,696 64,736 202,294 281,854 661,017 1,191,649 213,009 299,832
97,700 127,738
27,170 956,238
53,818 288,267 189,233 251,056
78,752 77,545 55,549
1,291 1,866,316
145,377 1,376,499
10,003 1,269,447
174,769
21,221 417,357 163,863 109,987 710,475
57,529 68,317 1,285,969 38,397 152,549 51,222 375,710 28,326 731,355

-49

Stateof GeorfJia - - - - - - - -
Schedule of Cluster Programs
For the Fiscal veer Ended June 30, 199B

Research and Development Cluster (R) Developmental Disabilities Basic Support and Advocacy Grants Developmental Disabilities Projects ofNational Significance Developmental Disabilities University Affiliated Programs Health Care Financing Research, Demonstrations and Evaluations CelI Biology and Biophysics Research Heart and Vascular Diseases Research Lung Diseases Research Blood Diseases and Resources Research Arthritis, Musculoskeletal and Skin Diseases Research Diabetes, Endocrinology and Metabolism Research Digestive Diseases and Nutrition Research Kidney Diseases, Urology and Hematology Research Clinical Research Related to Neurological Disorders Biological Basis Research in the Neurosciences AlIergy, Immunology and Transplantation Research Microbiology and Infectious Diseases Research Pharmacology, Physiology, and Biorelated Chemistry Research Genetics and Development Biology Research Population Research Research for Mothers and Children Aging Research Vision Research Medical Library Assistance Rural Health Medical Education Demonstration Projects Rural Outreach - Rural Network Development Program Scholarships for Health Professions Students from Disadvantaged Backgrounds Center for Medical Rehabilitation Research Fogarty International Research ColIaboration Award Epidemiologic Research Studies of Acquired Immunodeficiency Syndrome (AIDS) and Human Immunodeficiency Virus (HIV) Infection in Selected Population Groups Community - Based Comprehensive HIV/STDfTB Outreach Services for High Risk Substance Abusers Demonstration Program Agricultural Health and Safety Programs Health Administration Traineeships and Special Projects Program Adolescent Family Life - Demonstration Projects Other Federal Assistance Leam and Serve America - Higher Education AmeriCorps Other Federal Assistance Other Federal Assistance

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

93.630 $
93.631 93.632 93.779
93.821 93.837 93.838 93.839 93.846 93.847 93.848 93.849 93.853 93.854 93.855 93.856 93.859
93.862 93.864 93.865 93.866 93.867 93.879 93.906 93.912 93.925
93.929 93.934 93.943

141,479 86,323 114,140
50,464 1,196,506 5,238,794
540,719 3,733,903
230,129 622,027 1,444,057 465,336
27,852 844,D22 288,891 3,330,744
1,451,363 1,676,546
492,999 2,675,604 1,071,554 1,627,298
50 183,702
5,231
75,382 26,482 32,033

93.949
93.956 93.962
93.995 93.XXX 94.005 94.006 94.XXX 99.XXX
$

320,136
246,806 49,851
22,264 66,378 5,667,782
2,177 92,304 58,387 26,901
266,842,004

E- 50

L L
L L
f
L~
I
L
r
I.
I.
L-.
I
L-..
I !
'l-.-
~-

State of Georsta
SChedule of Cluster Programs
For the FISCal Year Ended June 30, 1993

Section 8 Cluster (S8C) Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation
Special Education Cluster (SEC) Special Education - Grants to States Special Education - Preschool Grants
Student Financial Aid Cluster (SFA) Federal Supplemental Educational Opportunity Grants Federal Family Education Loans Federal Work-Study Program Federal Perkins Loan Program Federal Capital Contributions Federal PeB Grant Program Federal Direct Student Loan Health Professions Student Loans, Including Primary Care LoanslLoans for Disadvantaged Students Nursing Student Loans Scholarships for Students of Exceptional Financial Need

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

14.856 $

47,610,207

84.027 $ 84.173
$

73,820,943 9,665,398
83,486,341

84.007 $ 84.032 84;033 84.038
84.063 84.268 93.342
93.364 93.820
$

5,822,364 36,042,258 $
7,428,001
519,299 107,674,642 260,354,431
-228,171 -32,512 74,464
417,654,776 $

1,591,000,000 38,704,806
3,692,753 1,084,270 1,634,481,829

E - 51

L
L
L

i,

a: Section

7'\udite~'$~POl1S~S

L
L
L
L L
I'
L
Summar! ScheduCe of
9?rior Y'ear g;indings and
Questioned Costs
,-'

L - - - - - - - - - - - State of Geot'gia - - - - - - - - - - -

L

Auditee's Response Summarv Schedule of Prior Year Rndings and Questioned Costs

For the Fiscal Year Ended June 30. 1995

L

L

FINDING CONTROL

NUMBER

AUDITEE RESPONSE/STATUS

COMMENTS

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

Department ofAdministrative Services

401-96-01 Further Action Not Warranted

401-96-02 Further Action Not Warranted

40Ia-95-01 Further Action Not Warranted

40Ia-95-02 Further Action Not Warranted

401a-95-03 Further Action Not Warranted

401a-95-04 Further Action Not Warranted

401a-95-05 Further Action Not Warranted

401a-95-06 Further Action Not Warranted

401a-95-07 Further Action Not Warranted

401a-95-08 Further Action Not Warranted

401a-95-09 Further Action Not Warranted

401a-95-10 Further Action Not Warranted

401a-95-11 Further Action Not Warranted

40Ia-95-12 Further Action Not Warranted

401a-97-01 Further Action Not Warranted

401a-97-02 Further Action Not Warranted

401a-97-03 Further Action Not Warranted

401a-97-04 Further Action Not Warranted

FS-401-97-01 Previously Reported Corrective Action Implemented

FS-401-97-02 Unresolved

See Comments - Page F-17

FS-40 1-97-03 Partially Resolved

See Comments - Page F-17

Department ofDefense

FS-411-97-01 Previously Reported Corrective Action Implemented

Department ofEducation

414-96-02 Further Action Not Warranted

414-96-03 Further Action Not Warranted

414a-96-0 1 Previously Reported Corrective Action Implemented

414a-96-02 Further Action Not Warranted

414a-96-03 Further Action Not Warranted

414a-96-04 Previously Reported Corrective Action Implemented

414a-96-05 Further Action Not Warranted

414a-96-06 Further Action Not Warranted

414a-96-07 Previously Reported Corrective Action Implemented

414a-96-08 Further Action Not Warranted

414a-96-09 Further Action Not Warranted

414a-96-10 Further Action Not Warranted

414a-96-11 Further Action Not Warranted

414a-96-12 Previously Reported Corrective Action Implemented

414a-96-13 Previously Reported Corrective Action Implemented

414a-96-14 Previously Reported Corrective Action Implemented

414a-96-15 Previously Reported Corrective Action Implemented

414a-96- I6 Previously Reported Corrective Action Implemented

414a-96-17 Previously Reported Corrective Action Implemented

414a-96-18 Previously Reported Corrective Action Implemented

F-5

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Auditee's Response Summarv Schedule ofPrior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1990

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

414a-96-19 Previously Reported Corrective Action Implemented 414a-96-20 Previously Reported Corrective Action Implemented 414a-96-21 Previously Reported Corrective Action Implemented 414a-96-22 Previously Reported Corrective Action Implemented 414a-96-23 Previously Reported Corrective Action Implemented 414a-96-24 Previously Reported Corrective Action Implemented 414a-96-25 Previously Reported Corrective Action Implemented 414a-96-26 Previously Reported Corrective Action Implemented 414a-96-27 Previously Reported Corrective Action Implemented 414a-96-28 Previously Reported Corrective Action Implemented 414a-96-29 Previously Reported Corrective Action Implemented 414a-96-30 Previously Reported Corrective Action Implemented 414a-96- 31 Previously Reported Corrective Action Implemented 414a-96-32 Previously Reported Corrective Action Implemented 414a-96- 33 Previously Reported Corrective Action Implemented FS-414-97-01 Further Action Not Warranted FS-414-97-02 Partially Resolved FS-414-97-03 Partially Resolved Department ofTechnical and Adult Education 415-96-01 Further Action Not Warranted FS-415-97 -01 Partially Resolved FS-415-97-02 Previously Reported Corrective Action Implemented FS-415-97-03 Unresolved Department ofMedical Assistance 419-96-08 Previously Reported Corrective Action Implemented FS-419-97-01 Previously Reported Corrective Action Implemented Office ofthe Governor 422-96-01 Previously Reported Corrective Action Implemented 422-96-02 Previously Reported Corrective Action Implemented FS-422-97-01 Previously Reported Corrective Action Implemented FS-422-97-02 Previously Reported Corrective Action Implemented Department ofHuman Resources 427-96-01 Further Action Not Warranted FS-427-97-01 Partially Resolved Department ofLabor 440-96-03 Previously Reported Corrective Action Implemented FS-440-97-01 Further Action Not Warranted FS-440-97-02 Previously Reported Corrective Action Implemented FS-440-97-03 Previously Reported Corrective Action Implemented FS-440-97-04 Previously Reported Corrective Action Implemented Department ofCorrections 467-96-01 Further Action Not Warranted FS-467-97-01 Previously Reported Corrective Action Implemented FS-467-97-02 Partially Resolved Public Service Commission FS-470-97-01 Partially Resolved
F-6

COMMENTS
See Comments - Page F-18 See Comments - Page F-18 See Comments - Page F-19 See Comments - Page F-22 See Comments - Page F-22
See Comments - Page F-22
See Comments - Page F-23 See Comments - Page F-24

L - - - - - - - - - - State of GeorBia - - - - - - - - - -

Auditee's Response

L

Smrnerv SChedule of Prior Year Findings and Questioned Costs

For the Fiscal Year Ended June 30, I99B

L

FINDING

L

CONTROL

NUMBER

AUDITEE RESPONSE/STATUS

COMMENTS

r

i L-.,

Board 0/Regents a/the University System ofGeorgia

472-96-03 Further Action Not Warranted

472a-95-02 Partially Resolved

FS-472-97-01 Previously Reported Corrective Action Implemented

FS-472-97-02 Further Action Not Warranted

FS-472-97-03 Further Action Not Warranted

Department 0/Revenue

474-96-02 Further Action Not Warranted

474-96-03 Further Action Not Warranted

474-96-04 Previously Reported Corrective Action Implemented

474-96-05 Previously Reported Corrective Action Implemented

474a-96-05 Further Action Not Warranted

474a-96-06 Further Action Not Warranted

474a-96-07 Further Action Not Warranted

474a-96-13 Further Action Not Warranted

474a-96-l4 Further Action Not Warranted

474a-96-15 Previously Reported Corrective Action Implemented

474a-96-l8 Further Action Not Warranted

474a-96-19 Further Action Not Warranted

474a-96-20 Further Action Not Warranted

474s-96-21 Further Action Not Warranted

474s-96-22 Further Action Not Warranted

474a-96-24 Further Action Not Warranted

474a-96-28 Further Action Not Warranted

474a-96-29 Further Action Not Warranted

474a-96-30 Further Action Not Warranted

474a-96-3l Further Action Not Warranted

474a-96-32 Further Action Not Warranted

474a-96-35 Previously Reported Corrective Action Implemented

FS-474-97-01 Partially Resolved

FS-474-97-02 Partially Resolved

FS-474-97-03 Unresolved

FS-474-97-04 Previously Reported Corrective Action Implemented

FS-474-97-05 Partially Resolved

FS-474-97-06 Previously Reported Corrective Action Implemented

Georgia Student Finance Commission

FS-476-97-0l Further Action Not Warranted

Department a/Transportation

484-96-01 Further Action Not Warranted

484-96-02 Further Action Not Warranted

484a-97-01 Further Action Not Warranted

484a-97-02 Further Action Not Warranted

484a-97-03 Further Action Not Warranted

484a-97-04 Further Action Not Warranted

484a-97-05 Further Action Not Warranted

484a-97-06 Further Action Not Warranted

See Comments - Page F-24
See Comments - Page F-25 See Comments - Page F-25 See Comments - Page F-26 See Comments - Page F-26 See Comments - Page F-26

F-7

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Auditee's Response Summary Schedule of Prior Year Rndings and Questioned Costs
For the Rscal Year Ended June 30, 1995

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

484a-97-07 Further Action Not Warranted 484a-97-08 Further Action Not Warranted 484a-97-09 Further Action Not Warranted 484a-97-10 Further Action Not Warranted 484a-97-11 Further Action Not Warranted 484a-97-12 Further Action Not Warranted 484a-97-13 Further Action Not Warranted 484a-97-14 Further Action Not Warranted FS-484-97 -01 Previously Reported Corrective Action Implemented FS-484-97-02 Partially Resolved Subsequent Injury Trust Fund 489-96-01 Further Action Not Warranted FS-489-97-01 Unresolved Georgia Institute ojTechnology 503a-95-08 Further Action Not Warranted 503a-95-09 Further Action Not Warranted Georgia State University 509a-95-02 Previously Reported Corrective Action Implemented 509a-95-03 Further Action Not Warranted 509a-95-04 Previously Reported Corrective Action Implemented 509a-95-05 Further Action Not Warranted 509a-95-07 Further Action Not Warranted 509a-95-08 Previously Reported Corrective Action Implemented 509a-95-09 Further Action Not Warranted 509a-97-01 Further Action Not Warranted 509a-97-02 Further Action Not Warranted 509a-97-03 Further Action Not Warranted 509a-97-04 Further Action Not Warranted 509a-97-05 Further Action Not Warranted FS-509-97-0 1 Partially Resolved Medical College ojGeorgia 512a-95-01 Further Action Not Warranted 512a-95-03 Further Action Not Warranted 512a-95-06 Further Action Not Warranted University ojGeorgia 518a-95-03 Further Action Not Warranted FS-518-97-01 Previously Reported Corrective Action Implemented Albany State University 521-96-01 Further Action Not Warranted 521-96-02 Further Action Not Warranted FS-521-97-01 Unresolved FS-521-97-02 Partially Resolved Armstrong Atlantic State University 524-96-03 Previously Reported Corrective Action Implemented 524-96-04 Previously Reported Corrective Action Implemented 524-96-05 Previously Reported Corrective Action Implemented

F-8

COMMENTS
See Comments - Page F-27 See Comments - Page F-27
See Comments - Page F-29
See Comments - Page F-30 See Comments - Page F-30

L''''. - - - - - - - - - - - State of Georgia - - - - - - - - - - -

L

Auditee's Response Summarv Schedule of Prior Year Findings and Questioned Costs

For the Fiscal Year Ended June 30, 199B

L

L

FINDING CONTROL

NUMBER

AUDITEE RESPONSE/STATUS

COMMENTS

FS-524-97-01 Previously Reported Corrective Action Implemented FS-524-97-02 Previously Reported Corrective Action Implemented FS-524-97-03 Previously Reported Corrective Action Implemented Augusta State University 527-96-01 Further Action Not Warranted FS-527-97-01 Unresolved FS-527-97-02 PartialIy Resolved Clayton College and State University FS-528-97-01 Previously Reported Corrective Action Implemented FS-528-97-02 Unresolved FS-528-97-03 Unresolved Fort Valley State University 533-96-01 Previously Reported Corrective Action Implemented 533-96-02 Previously Reported Corrective Action Implemented 533-96-03 Further Action Not Warranted 533-96-05 Previously Reported Corrective Action Implemented FS-533-97-01 Previously Reported Corrective Action Implemented FS-533-97-02 Previously Reported Corrective Action Implemented FS-533-97-03 Partially Resolved FS-533-97-04 Partially Resolved FS-533-97-05 Previously Reported Corrective Action Implemented FS-533-97-06 Unresolved Georgia Southern University 539-96-01 PartialIy Resolved 539a-95-01 Previously Reported Corrective Action Implemented 539a-95-04 Significantly Differing Corrective Action Implemented Kennesaw State University 543-96-01 Partially Resolved Savannah State University 548-96-01 Partially Resolved 548-96-02 Unresolved 548-96-03 Unresolved 548-96-05 Previously Reported Corrective Action Implemented FS-548-97-01 Previously Reported Corrective Action Implemented Southern Polytechnic State University 550-96-01 Unresolved 550-96-02 Partially Resolved FS-550-97-01 Partially Resolved Valdosta State University 551-96-03 Previously Reported Corrective Action Implemented FS-551-97-01 Previously Reported Corrective Action Implemented FS-551-97-02 Partially Resolved FS-551-97-03 Previously Reported Corrective Action Implemented State University of West Georgia FS-554-97-01 Previously Reported Corrective Action Implemented

See Comments - Page F-30 See.Comments - Page F-3I
See Comments - Page F-31 See Comments - Page F-31
See Comments - Page F-32 See Comments - Page F-32 See Comments - Page F-32 See Comments - Page F-33 See Comments - Page F-34 See Comments - Page F-34 See Comments - Page F-34 See Comments - Page F-35 See Comments - Page F-35
See Comments - Page F-35 See Comments - Page F-35 See Comments - Page F-35
See Comments - Page F-36

F-9

- - - - - - - - - - - State of GeOf'Bia - - - - - - - - - - -
Auditee's Response Summarv Schedule ofPrior Year Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 1995

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

Atlanta Metropolitan College 561-96-01 Unresolved Floyd College FS-573-97-01 Previously Reported Corrective Action Implemented FS-573-97-02 Partially Resolved FS-573-97-03 Partially Resolved FS-573-97-04 Partially Resolved FS-573-97-05 Previously Reported Corrective Action Implemented Macon State College 581-96-0 I Previously Reported Corrective Action Implemented 581-96-02 Previously Reported Corrective Action Implemented FS-581-97-01 Previously Reported Corrective Action Implemented FS-581-97-02 Previously Reported Corrective Action Implemented Middle Georgia College 584-96-01 Further Action Not Warranted FS-584-97-01 Unresolved South Georgia College 587-96-01 Further Action Not Warranted FS-587-97-01 Unresolved Georgia Military College 590-96-02 Further Action Not Warranted FS-590-97-01 Unresolved FS-590-97-02 Partially Resolved Skidaway Institute ofOceanography 593-96-01 Further Action Not Warranted FS-593-97-01 Unresolved Sandersville Technical Institute FS-817-97-01 Previously Reported Corrective Action Implemented West Georgia Technical Institute 819-96-01 Unresolved 819-96-03 Further Action Not Warranted FS-819-97-01 Unresolved Albany Technical Institute 820-96-01 Previously Reported Corrective Action Implemented 820-96-02 Further Action Not Warranted FS-820-97-01 Previously Reported Corrective Action Implemented FS-820-97-02 Previously Reported Corrective Action Implemented FS-820-97-03 Previously Reported Corrective Action Implemented FS-820-97-05 Partially Resolved Augusta Technical Institute 824-96-01 Further Action Not Warranted 824-96-02 Further Action Not Warranted FS-824-97-01 Previously Reported Corrective Action Implemented FS-824-97-02 Partially Resolved FS-824-97-03 Previously Reported Corrective Action Implemented

F-IO

COMMENTS See Comments - Page F-38 See Comments - Page F-39 See Comments - Page F-39 See Comments - Page F-39
See Comments - Page F-39 See Comments - Page F-40 See Comments - Page F-40 See Comments - Page F-40 See Comments - Page F-40 See Comments - Page F-41 See Comments - Page F-41
See Comments - Page F-41
See Comments - Page F-42

L - - - - - - - - - - State of Georgia - - - - - - - - - -

L. ';'.'.

Auditee's Response Summarv SChedule ofPrior Year Findings and Questioned Costs

For the Fiscal Year Ended JUlIe 30. 199B

L

L

FINDING CONTROL

NUMBER

AUDITEE RESPONSE/STATUS

L

Carroll Technical Institute

FS-826-97-01 Previously Reported Corrective Action Implemented

FS-826-97-02 Previously Reported Corrective Action Implemented

FS-826-97-03 Previously Reported Corrective Action Implemented

Chattahoochee Technical Institute

827-95-01 Previously Reported Corrective Action Implemented

FS-827-97-01 Previously Reported Corrective Action Implemented

FS-827-97-02 Previously Reported Corrective Action Implemented

FS-827-97-03 Partially Resolved

Columbus Technical Institute

FS-828-97-01 Partially Resolved

DeKalb Technical Institute

830-96-01 Previously Reported Corrective Action Implemented

830-96-03 Previously Reported Corrective Action Implemented

FS-830-97-01 Partially Resolved

FS-830-97-02 Previously Reported Corrective Action Implemented

FS-830-97-03 Partially Resolved

Middle Georgia Technical Institute

FS-836-97-01 Partially Resolved

Moultrie Area Technical Institute

837-96-01 Previously Reported Corrective Action Implemented

FS-837-97-01 Previously Reported Corrective Action Implemented

North Georgia Technical Institute

FS-838-97-01 Previously Reported Corrective Action Implemented

FS-838-97-02 Previously Reported Corrective Action Implemented

North Metro Technical Institute

839-96-01 Previously Reported Corrective Action Implemented

Pickens Technical Institute

840-96-01 Further Action Not Warranted

FS-840-97-01 Partially Resolved

FS-840-97-02 Partially Resolved

Thomas Technical Institute

FS-846-97-01 Previously Reported Corrective Action Implemented

FS-846-97-02 Previously Reported Corrective Action Implemented

Valdosta Technical Institute

848-96-01 Previously Reported Corrective Action Implemented

FS-848-97-01 Previously Reported Corrective Action Implemented

Jekyll Island State Park Authority

910-96-01 Previously Reported Corrective Action Implemented

910-96-02 Partially Resolved

910-96-03 Previously Reported Corrective Action Implemented

910-96-04 Previously Reported Corrective Action Implemented

910-96-05 Previously Reported Corrective Action Implemented

910-96-06 Previously Reported Corrective Action Implemented

910-96-08 Previously Reported Corrective Action Implemented

910-96-09 Previously Reported Corrective Action Implemented

F-ll

COMMENTS
See Comments - Page F-42 See Comments - Page F-43 See Comments - Page F-43 See Comments - Page F-43 See Comments - Page F-44
See Comments - Page F-44 See Comments - Page F-45
SeeFinding Control Number FS-910-97-02

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Audike's Response Summarv Schedule ofPrior Year Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 1990

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

FS-91O-97-01 Previously Reported Corrective Action Implemented FS-910-97-02 Partially Resolved FS-910-97-03 Previously Reported Corrective Action Implemented FS-910-97-04 Previously Reported Corrective Action Implemented FS-910-97-05 Previously Reported Corrective Action Implemented FS-910-97-06 Previously Reported Corrective Action Implemented FS-910-97-07 Previously Reported Corrective Action Implemented FS-910-97-08 Previously Reported Corrective Action Implemented Lake Lanier Islands Development Authority FS-913-97-01 Previously Reported Corrective Action Implemented Georgia Student Finance Authority FS-917-97-01 Previously Reported Corrective Action Implemented Georgia Higher Education Assistance Corporation FS-918-97-01 Previously Reported Corrective Action Implemented Georgia Housing and Finance Authority 923a-95-01 Further Action Not Warranted 923a-95-02 Further Action Not Warranted 923a-95-03 Further Action Not Warranted 923a-95-07 Further Action Not Warranted 923a-95-08 Further Action Not Warranted 923a-95-10 Further Action Not Warranted 923a-95-11 Further Action Not Warranted 923a-95-12 Further Action Not Warranted 923a-95-13 Further Action Not Warranted 923a-95-14 Further Action Not Warranted Georgia Agricultural Exposition Authority 926-96-01 Further Action Not Warranted FS-926-97-01 Unresolved Georgia Agrirama Development Authority FS-940-97-01 Previously Reported Corrective Action Implemented Peace Officers' Annuity and Benefit Fund ofGeorgia 947-96-01 Partially Resolved Georgia GolfHall ofFame FS-958-97-01 Previously Reported Corrective Action Implemented FS-958-97-02 Previously Reported Corrective Action Implemented Georgia Public Telecommunications Commission 977-96-04 Further Action Not Warranted FS-977-97-01 Previously Reported Corrective Action Implemented FS-977-97-02 Previously Reported Corrective Action Implemented Northwest Georgia Regional Educational Service Agency 8504-93-01 Further Action Not Warranted FS-8504-97-01 Unresolved North Georgia Regional Educational Service Agency 8524-93-01 Further Action Not Warranted 8524-96-01 Further Action Not Warranted FS-8524-97-01 Previously Reported Corrective Action Implemented
F-12

COMMENTS See Comments - Page F-45
See Comments - Page F-45 See Comments - Page F-46 See Comments - Page F-46

L
L L
L
f L
I
i
l--.

- - - - - - - - - - State of GeorBia - - - - - - - - - -
Auditee's Response Summarv SChedule ofPrior Year Flf1dings and Questioned Costs
For the FIScal Year Ended June 30, 199B

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

FS-8524-97-02 Unresolved Pioneer Regional Educational Service Agency 8544-93-01 Further Action Not Warranted 8544-93-02 Further Action Not Warranted FS-8544-97-01 Further Action Not Warranted FS-8544-97-02 Unresolved Metropolitan Regional Educational Service Agency 8564-93-02 Previously Reported Corrective Action Implemented 8564-93-03 Further Action Not Warranted FS-8564-97-01 Unresolved Northeast Georgia Regional Educational Service Agency 8584-93-02 Further Action Not Warranted FS-8584-97-01 Previously Reported Corrective Action Implemented FS-8584-97-02 Unresolved West Georgia Regional Educational Service Agency 8604-93-01 Further Action Not Warranted FS-8604-97-01 Unresolved Middle Georgia Regional Educational Service Agency 8644-93-01 Further Action Not Warranted Oconee Regional Educational Service Agency 8664-93-01 Further Action Not Warranted 8664-93-02 Further Action Not Warranted 8664-96-01 Previously Reported Corrective Action Implemented FS-8664-97-01 Unresolved Chattahoochee-Flint Regional Educational Service Agency 8724-93-01 Further Action Not Warranted 8724-93-02 Unresolved FS-8724-97-01 Unresolved Heart ofGeorgia School Systems Regional Educational Service Agency 8764-93-01 Further Action Not Warranted 8764-95-01 Further Action Not Warranted 8764-96-01 Previously Reported Corrective Action Implemented FS-8764-97-01 Unresolved First District Regional Educational Service Agency 8804-93-03 Further Action Not Warranted FS-8804-97-01 Unresolved Southwest Georgia Regional Educational Service Agency 8844-95-01 Previously Reported Corrective Action Implemented 8844-96-01 Unresolved FS-8844-97-01 Previously Reported Corrective Action Implemented Okefenokee Regional Educational Service Agency 8884-93-01 Previously Reported Corrective Action Implemented FS-8884-97-01 Previously Reported Corrective Action Implemented

COMMENTS See Comments - Page F-46
See Comments - Page F-46 See Comments - Page F-46
See Comments - Page F-47 See Comments - Page F-47
See Comments - Page F-47 See Comments - Page F-47
See Finding Control Number FS-8724-97-01
See Comments - Page F-47
See Comments - Page F-48 See Comments - Page F-48 See Comments - Page F-48
See Finding Control Number FS-8884-97-01

F-B

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Auditee's Response SummarY Schedule of Prior Year Rndings and Questioned Costs
For the Rscal Year Ended June 30, 1995

FINDING coNTROL NUMBER

AUDITEE RESPONSE/STATUS

PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Department ofAdministrative Services FA-40I-97-0I Unresolved FA-401-97-02 Unresolved Department ofEducation 414-96-03 Further Action Not Warranted 414-96-04 Further Action Not Warranted FA-414-97-01 Partially Resolved FA-414-97 -02 Partially Resolved Department of Technical and Adult Education 415-96-01 Further Action Not Warranted FA-415-97-01 Previously Reported Corrective Action Implemented FA-415-97-02 Unresolved Department ofMedical Assistance 419-96-08 Previously Reported Corrective Action Implemented FA-4I 9-97-0 1 Previously Reported Corrective Action Implemented Department ofHuman Resources 427-96-01 Further Action Not Warranted FA-427-97-01 Partially Resolved FA-427-97-02 Unresolved FA-427-97-03 Partially Resolved FA-427-97-04 Unresolved Board ofRegents ofthe University System ofGeorgia FA-472-97-01 Previously Reported Corrective Action Implemented Georgia Institute ofTechnology FA-503-97-01 Previously Reported Corrective Action Implemented FA-503-97-02 Previously Reported Corrective Action Implemented FA-503-97-03 Previously Reported Corrective Action Implemented FA-503-97-04 Previously Reported Corrective Action Implemented FA-503-97-05 Previously Reported Corrective Action Implemented FA-503-97-06 Previously Reported Corrective Action Implemented FA-503-97-07 Partially Resolved FA-503-97-08 Partially Resolved FA-503-97-09 Partially Resolved FA-503-97-10 Previously Reported Corrective Action Implemented FA-503-97-11 Previously Reported Corrective Action Implemented FA-503-97-12 Unresolved FA-503-97-13 Unresolved FA-503-97- I4 Previously Reported Corrective Action Implemented University ofGeorgia FA-518-97-01 Previously Reported Corrective Action Implemented FA-518-97-02 Previously Reported Corrective Action Implemented FA-518-97-03 Previously Reported Corrective Action Implemented Albany State University 521-96-04 Previously Reported Corrective Action Implemented FA-521-97-01 Previously Reported Corrective Action Implemented
F-14

COMMENTS
See Comments - Page F-17 See Comments - Page F-17
See Comments - Page F-19 See Comments - Page F-21
See Comments - Page F-22
See Comments - Page F-22 See Comments - Page F-23 See Comments - Page F-23 See Comments - Page F-23
See Comments - Page F-27 See Comments - Page F-28 See Comments - Page F-28 See Comments - Page F-29 See Comments - Page F-29

L - - - - - - - - - - - State of Georgia - - - - - - - - - - -

L

Auditee's Respol1Se Summarv SChedule ofPrior Year Findings and Questioned Costs

For the Fiscal Year Ended June 30, 1990

L

L

FINDING CONTROL

NUMBER

AUDITEE RESPONSE/STATUS

,

'~

Clayton College and State University

FA-528-97-01 Previously Reported Corrective Action Implemented

FA-528-97-02 Previously Reported Corrective Action Implemented

FA-528-97-03 Previously Reported Corrective Action Implemented

FA-528-97-04 Previously Reported Corrective Action Implemented

Fort Valley State University

533-96-05

Previously Reported Corrective Action Implemented

533-96-10

Previously Reported Corrective Action Implemented

533-96-13

Previously Reported Corrective Action Implemented

533-96-14

Unresolved

533-96-17 Previously Reported Corrective Action Implemented

533-96-18 Unresolved

533-96-19 Unresolved

FA-533-97-01 Unresolved

FA-533-97-02 Partially Resolved

FA-533-97-03 Unresolved

FA-533-97-04 Unresolved

Georgia Southern University

FA-539-97-01 Previously Reported Corrective Action Implemented

Southern Polytechnic State University

FA-550-97-0 1 Unresolved

FA-550-97-02 Unresolved

Valdosta State University

551-96-02 Previously Reported Corrective Action Implemented

551-96-04

Partially Resolved

FA-551-97-0 1 Previously Reported Corrective Action Implemented

State University of West Georgia

FA-554-97-01 Partially Resolved

FA-554-97-02 Partially Resolved

FA-554-97-03 Partially Resolved

Atlanta Metropolitan College

561-96-02

Unresolved

561-96-04

Partially Resolved

561-96-05 Partially Resolved

Dalton College

FA-569-97-0 I Previously Reported Corrective Action Implemented

Floyd College

573-96-01

Previously Reported Corrective Action Implemented

Macon State College

581-96-03

Previously Reported Corrective Action Implemented

581-96-05

Previously Reported Corrective Action Implemented

581-96-06 Previously Reported Corrective Action Implemented

Georgia Military College

590-96-06 Previously Reported Corrective Action Implemented

West Georgia Technical Institute

819-96-02

Unresolved

F-15

COMMENTS
See Comments - Page F-31 See Comments - Page F-31 See Comments - Page F-32 See Comments - Page F-32 See Comments - Page F-33 See Comments - Page F-33 See Comments - Page F-33
See Comments - Page F-36 See Comments - Page F-36 See Comments - Page F-36 See Comments - Page F-36 See Comments - Page F-37 See Comments - Page F-37 See Comments - Page F-38 See Comments - Page F-38 See Comments - Page F-38
See Comments - Page F-41

- - - - - - - - - - - State of GeorBia - - - - - - - - - - -
Auditee's Response SummarY Schedule of Prior Year Rf1dif1gs end Questiof1ed Costs
For the Rscal Year lndcd .knc 30, 1990

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

819-96-05 Unresolved Albany Technical Institute 820-96-02 Further Action Not Warranted 820-96-03 Previously Reported Corrective Action Implemented FA-820-97-01 Previously Reported Corrective Action Implemented Carroll Technical Institute FA-826-97 -01 Previously Reported Corrective Action Implemented Chattahoochee Technical Institute 827-95-03 Partially Resolved 827-96-02 Previously Reported Corrective Action Implemented 827-96-03 Partially Resolved 827-96-04 Partially Resolved 827-96-05 Previously Reported Corrective Action Implemented FA-827-97-01 Previously Reported Corrective Action Implemented FA-827-97-02 Previously Reported Corrective Action Implemented FA-827-97-03 Partially Resolved FA-827-97-04 Previously Reported Corrective Action Implemented Columbus Technical Institute FA-828-97-01 Partially Resolved Middle Georgia Technical Institute 836-95-04 Further Action Not Warranted Moultrie Area Technical Institute 837-96-03 Partially Resolved 837-96-05 Previously Reported Corrective Action Implemented 837-96-06 Previously Reported Corrective Action Implemented FA-837-97 -01 Previously Reported Corrective Action Implemented Georgia Higher Education Assistance Corporation FA-918-97-01 Previously Reported Corrective Action Implemented North Georgia Regional Educational Service Agency 8524-96-02 Previously Reported Corrective Action Implemented Griffin Regional Educational Service Agency 8624-96-01 Previously Reported Corrective Action Implemented Heart ojGeorgia Regional Educational Service Agency 8764-96-01 Previously Reported Corrective Action Implemented

COMMENTS See Comments - Page F-41
See Comments - Page F-42 See Comments - Page F-42 See Comments - Page F-42
See Comments - Page F-43 See Comments - Page F-43 See Comments - Page F-44 See Comments - Page F-44

F-16

L - - - - - - - - - - - State of Georgia - - - - - - - - - - -

L

Auditee's Response Summarv SChedule ofPrior Year Rndings and Questioned Costs

For the: Fiscal veer Ef1ded JUf1e: 30, 199B

L

L AUDITEE'S COMMENTS
DEPARTMENT OF ADMINISTRATIVE SERVICES
Finding Control Number: FS-401-97-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
DOAS concurs with this recommendation. As previously noted in our prior responses, during FY 1997 an internal design team working with Price Waterhouse Coopers was created to review the asset management process and to make recommendations. To date, recommendations have resulted in creation of a Material Management Division with responsibilities over Procurement, Distribution and Operations which include purchasing, contracting, surplus and supply, physical assets and inventory, and distribution. This centralization under the Materials Management Division will allow much greater control over maintaining the DOAS asset property from purchases through placement into operations. Implementation of Materials Management started in the 2nd quarter of FY 99 to continue through and in conjunction with the Statewide Financial System conversion in the 1st quarter ofFY 2000.
Finding Control Number: FS-401-97-03 EXPENDITURES/LIABILITIESIDISBURSEMENTS Inadequacies in Operation of the Workers' Compensation Fund
In addition to the action steps reported last year, we have contracted with a new medical cost management company to provide on-site adjudication of medical bills within 48 hours of approval. Before making the provider bill payment, the cost management company compares multiple data elements, including employee's name, social security number, provider name, and federal employer identification (FEI) number for the purpose of detecting and preventing duplicate and overpayments. The increased efficiency of this service has greatly increased our timeliness in paying providers and should significantly reduce the number of second and third notices and the likelihood of a duplicate payment. These new procedures took effect in May of 1998 and should improve the provider payment process during the course of fiscal year 1999. In addition, Risk Management changed its check writing schedule for medical payments from weekly to daily beginning in April, 1998. This change was implemented to decrease the time medical payments are in the Risk Management system waiting to be processed. Turnaround time is now approximately four days, down from ten days. The decrease turnaround time should further reduce the number of second and third notices for medical payments and further reduce the likelihood of duplicate payments. Risk Management is continuing to work with the cost management company to make improvements.
Finding Control Number: FA-401-97-01 ALLOWABLE COSTS/COST PRINCIPLES Overbillings of Communication Services
In anticipation of additional Federal disallowances, a reserved fund balance of $1,000,000.00 was established as of June 30, 1997 for overbillings in communication services which occurred during fiscal year 1996. At this time, notification by the U. S. Department of Health and Human Services has not been received.
Finding Control Number: FA-401-97-02 ALLOWABLE COSTS/COST PRINCIPLES Federal Disallowance of Indirect Cost Recoveries
Final settlement is pending notification by the U. S. Department of Health and Human Services.

F-17

- - - - - - - - - - - State of Geot'gia - - - - - - - - - - -
Auditee's Response Summarv SChedule ofPrior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1990
AUDITEE'S COMMENTS
DEPARTMENT OF EDUCATION
Finding Control Number: FS-414-97-01 BUDGET PREPARATIONIEXECUTION Overexpenditure of Budget Unit Object Classes
We concur with this recommendation. Corrective action has been taken by the department to prevent future budget overexpenditures. An explanation of each of the overexpenditures follows:
The equipment overexpenditure of $45,717.21 resulted from the state auditors transferring equipment charges for lease-purchase agreements from an inventory clearing account (185.200) to equipment purchases (643.1). We were not aware that the auditors were making the transfers, so funds were not budgeted to cover the transfer.
The overexpenditure in the other Categorical Grants: Sparsity Grants of $30,000.00 resulted from funds ,being transferred from this object class to other object classes in error. The transfer should have been from K-3 grant funds. When the error was caught, it was too late in the year to correct the transfer.
The overexpenditure of$139,345.00 in Non-QBE Grants: School lunch funds resulted from incorrect meal count information being used to determine the amount to include in the FY 97 budget request. The error was caught, but it was too late to amend the amount requested.
The overexpenditure of $6,600.00 in Lottery Funds - Computers in the Classroom resulted from personnel in the Instructional Technology unit making an error in allocating funds to schools. The unit failed to request an additional amount to cover the error.
Procedures have been put into place to detect these type problems earlier so that corrections can be made to prevent overexpenditure of funds. Procedures have also been revised to ensure that correct information is used in requesting and allotting grant funds.
Finding Control Number: FS-414-97-02 CASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Agency Funds - Deficiencies in Accounting Procedures
We concur with parts of this recommendation. The deficiencies in the management of trust fund accounts involved the Vocational Education Club Accounts and the three state schools. Information was requested from vocational education and state school staff, so that Accounting Services personnel could determine the appropriate corrective action. A followup letter was sent to management level personnel outlining the corrective action needed. Conversations were also held with these individuals to go over the deficiencies.
Some of the deficiencies involving the Vocational Education Club Accounts are questionable. A number of accounts were cited for expenditures that were not within the intent of the funds. All of the expenditures were reviewed and determined to be appropriate. The club accounts have a very broad range of activities that require many different types of expenditures. Some expenditures from trust accounts at the Georgia School for the Deaf did not appear to be within the intent of the funds. The school has been instructed to review the justifications that were used in establishing the accounts. They were also, instructed to be sure that expenditures from the accounts are for the purposes the accounts were established.
F-18

L - - - - - - - - - - - State of Georgia - - - - - - - - - - -

L

Auditee's Response Summarv SChedule of Prior Year Rndings and Questioned Costs

For the Fiscal Year Ended June 30. 1990

L

L AUDITEE'S COMMENTS

rL

Some of the accounts were also cited for inadequate supporting documentation for payment of services. The supporting documentation for services provided by speakers, photographers, and other individuals often consisted of a single page invoice. Most of the individuals are one person companies and have simple billing and accounting procedures. They do

not use multi-page preprinted invoices. Other times, cash register receipts are the only documentation received by

custodians or others purchasing items for the clubs. There were however, instances where proper supporting

documentation was not maintained and in these instances the custodians were requested to keep proper supporting

documentation on expenditure of funds from trust accounts.

The finding involving checks signed by individuals other than the custodians of the accounts has been discussed with the Director of the Vocational Education section to reemphasize the requirement that only state employees may be custodians and sign checks. There were procedures in place that would have prevented the finding, but Vocational Education personnel did not follow them.

The finding concerning sales tax is also questionable. Many of the purchases made for the club account involve stores that are not used to exempting purchases from sales tax, such as restaurants, discount stores, grocery stores, etc. The fact that purchases are also made by individuals paying with a check or cash, instead of by a field purchase order (FPO), causes difficulty getting the sales tax exemption. Since the custodians and other individuals purchasing items for the clubs encounter difficulty in getting the sales tax exemption, the procedures established to provide guidance in managing the trust fund accounts are being changed to no longer require sales tax be deducted from purchases. The procedures will only recommend that individuals making purchases for the clubs try to obtain exemption from sales tax when it is possible and practical to do so, such as hotel charges, large purchases, etc.

There were several instances of checks being written to custodians. There are procedures in place that state that checks should not be written to custodians. There are cases, however, when it is impractical for a custodian to have another individual purchase an item(s) so that a custodian is not writing himself or herself a check. While this practice should be discouraged and held to a minimum, we should allow custodians, with proper supporting documentation and justification, to write checks to themselves for expenditures they incurred for the trust account.

There were instances of checks being made payable to cash. There are also procedures in place that state that checks should never be made payable to cash. There is no reason a check should ever be made payable to cash. The letter going to trust fund custodians discussing the audit finding will re-emphasize that checks are not to be made payable to cash.

Finding Control Number: FS-414-97-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

See our corrective action/response to finding number FA-414-97-01.

Finding Control Number: FA-414-97-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

We concur with this recommendation. The following is the FY 1997 audit findings in Equipment and Real Property Management for this department.

On September 1, 1996, receiving reports began being processed through the property control officer. The adopting of this procedure by Property Control and Accounting Services should have eliminated the noted deficiencies above, but some FPO Receiving Reports were not routed through Property Control and thus not captured into the DOE Property System. The process of reconciling PROP to FACS (GIFS) is a problem within DOE as there is $1,070,318.40 of outstanding inventory, and $494,473.41 of inventory that has been received and paid but not in the DOE Property System because of
F-19

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Auditee's Response SummarY Schedule of Prior Year Rndings and Questioned Costs
For the Fiscal Year [rlded .nnc 30. 1995
AUDITEE'S COMMENTS
DE form 0513, Receipt of Equipment form not being received from the unit ordering the equipment. This, along with FPOs bypassing Property Control either initially or by the Receiving Report, can cause problems in balancing. Property Control for FY 1998 is using PROP Report 8140, Reference Numbers Paid in FACS(GIFS), to reconcile the amounts in the report to the actual reference number (FPO) in the DOE Property System. All discrepancies are corrected through Accounting Services to ensure that FACS(GIFS) and PROP show the same amount for each reference number (FPO). Any errors found will be sent by memorandum to Accounting Services, the unit who issued the field purchase order, and to Budget Services for proper accountability of monies.
All FPOs are examined for correct SCOAs when processed through Property Control. Those that are found with incorrect SCOAs are changed prior to being received by Accounting Services. If the Receiving Report indicates that the item has been reduced to be classified into another SCOA then a memorandum is issued to Accounting Services, the initiating unit, and Budget Services for proper accountability of monies. This was the case in $130,937.50 (net), where Accounting Services failed to change the SCOA in FACS. There were some FPOs that had changes after issuance which resulted in the issuing ofFPO corrections, but not changed in FACS by Accounting Services to the amount of $47,328.00 (net). The Auditor indicated an error on two FPOs that had not been added to PROP. The equipment was added prior to the end of FY 1997. This was the case in $20,192.00 (net). There were three FPOs where equipment was not received until FY 1998, resulting in the amount of $34, 115.00 (net). Professional Practices Commission had reported three computers where only two were ordered, resulting in an overage of$I,549.00. Two Receiving Reports bypassed Property Control resulting in a difference of$498.00 between PROP and FACS. All these total to $230,525.50 (net).
All entries to Lease/Purchase or Installment Purchases were computed by the actual amount being multiplied by the number of months in the purchase. The Receiving Reports were not seen in Property Control to correct these differences on PROP.
The annual physical inventory that is conducted by this agency each year is adequate supporting documentation. This report is signed by the unit head for each unit stating that they certify this inventory listing correct as of the date indicated. When an item is identified on this listing as missing, it is the unit's responsibility to do an internal investigation as to when the missing equipment was last seen, and to do random inspections as necessary. A DE form 0082, Report of Lost, Damaged, Destroyed or Stolen Property must be completed by the unit reporting the equipment as missing. This procedure is identified in the agency's Personal Property Procedures, dated July, 1996 (page 5, section X), and every unit has been sent a copy every year from FY 1994 onward. Per DOAS PROP Procedures, June, 1992, Detail of Responsibilities: The audit trail needed in the authorization for the deletions field would be: Missing: Supporting documentation and listed as missing for two years in the system (page I-D-7, I-D-9). The supporting documentation is the agency's annual physical inventory and the historical transaction register in the DOE Property System. All procedures were followed per the agency's Personal Property Procedures and the DOAS-PROP Procedures for the equipment to be deleted from this agency's property system.
My instructions from DOAS-Surplus and Supply on surplusing Federal funded equipment with a fair market value of $5,000.00 or greater, was to indicate "DOE" in the Funding Information column of the DOAS Transfer Form and Invoice. The equipment was removed officially from the DOE Property System with the use of the appropriate AR numbers as assigned by DOAS-Surplus and Supply. This office does not engage in checking to see if DOAS processes the Transfer Form and Invoice correctly. This office assumes that DOAS processed funds from the sale of Federal equipment as regulated by the Georgia Legislature and the Governor. I called DOAS when the DOA Auditor questioned me on these funds. A memorandum from DOAS-Internal Administration, Accounts Payable, referred to property sold on auction and indicated the agency was never reimbursed for their property. An E-Mail was also sent to Accounting Services referencing the reimbursement of the Federal property from DOAS to this department.
Six (6) of the forty-four (44) items missing were in the Office of School Readiness, which is not maintained by DOE Property Control. The remaining thirty-eight (38) items totaling $91,828.22 could not be located.
F-20

L - - - - - - - - - - - State of Georgia - - - - - - - - - - -

L

Auditee's Response Smrnerv SChedule of Prior Year Rndings and Questioned Costs

For the Fiscal Year Ended June 30, 199B

L

L., AUDITEE'S COMMENTS

The following is a breakdown of the thirty-eight items that were reported missing by the Auditor:

Eight (8) were reported missing initially by units in FY 1997. Six (6) had been reported missing in a prior year by units and in FY 1997. Twenty-one (21) had not been reported missing by units in FY 1997. One (1) HP LaserJet II Printer was located in Warehouse #4. Two (2) were stored in a holding area at GSD for destruction.

The items that were not located within the units at the Twin Towers were most likely moved by Technology Service and not communicated to Property Control. Technology Services has been instructed to identify all equipment movements to Property Control, but as of this date, none are being communicated.

Finding Control Number: FA-414-97-02 SUBRECIPIENT MONITORING Subrecipient Audit Reports Not Received Within the Required Time Period

Department of Education's Response

We concur with this recommendation. Although the Department of Education is responsible for tracking and reviewing the audits on local units of administration (LUAs), the Department of Audits is required by state law to audit the LUAs, because LUAs receive the majority of their funding from the state. In addition to the LUA audits, the Department of Audits has the responsibility to audit all state agencies, commissions, etc, The LUAs are audited after the state agencies, commissions, etc. Because the LUAs are audited last and the large number of LUAs to be audited, the Department of Audits cannot complete the audits in the time period required by OMB Circular A-133. The U. S. Department of Education is aware of the problem, and realizes there is not currently a viable solution to the finding. The LUA audits are normally completed within a 15-18 month time period. The department has a six-month resolution period to resolve findings in the LUA audits after being received from the Department of Audits.

The Department of Audits has proposed an alternative approach for providing federal audit coverage of local school systems that should eliminate receiving state audits after the required time period.

The one remaining school system is an FY 96 audit being performed by a private CPA firm. Numerous requests have been made to the local school system to have the CPA firm fmalize the FY 96 audit and provide a copy to the department. The 59 audits of USDA child care food program sponsors are the responsibility of the Office of School Readiness. A copy of this finding was sent to them to propose a response and initiate any necessary corrective action.

Office of School Readiness' Response

The previously reported action included obtaining an audit firm to perform all CACFP subrecipient audits. The 59 outstanding audits have been completed. All follow up work such as corrective action plans and follow up visits have been completed at this time. Any refunds or repayments associated with the 59 audits have been disbursed or collected.

F-21

- - - - - - - - - - - State of GeorBia - - - - - - - - - - -
Auditee's Response Summarv SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1990
AUDITEE'S COMMENTS
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
Finding Control Number: FS-415-97-01 EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Comply with the "Fair and Open Grants Act of 1993"
The Department continued efforts to resolve this finding in Fiscal Year 1998, but was not able to meet all the deadlines for this fiscal year. The corrective action plan for Fiscal Year 1997 is still viable, and will be implemented in its entirety for Fiscal Year 1999.
Finding Control Number: FS-415-97-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
See our corrective action/response to finding number FA-415-97-02.
Finding Control Number: FA-415-97-02 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
The Department continued efforts to resolve this finding in Fiscal Year 1998, but to date has not completed all of the tasks as outlined in the Corrective Action Plan for Fiscal Year 1997. The Corrective Action Plan as previously presented for this finding is still a viable plan. The Department is committed to completing these tasks in Fiscal Year 1999.
DEPARTMENT OF HUMAN RESOURCES
Finding Control Number: FS-427-97-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
See our corrective action/response to finding number FA-427-97-01.
Finding Control Number: FA-427-97-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Actions have been taken by this office to address the audit finding from last year regarding inventory. On June 1, 1998 the Property and Fleet Management Unit hired a Property and Supply Supervisor with extensive experience in inventory management and control. This individual is training DHR property coordinators one-on-one to improve our inventory control methods. In May of 1998, an Inventory Management Team was established to assist the Property and Fleet Management Unit in developing policies and procedural guidelines for DHR to identify corrective actions in the area of inventory. The FY 99 Property Inventory process is 88% complete at the end of December.
F-22

L - - - - - - - - - - - State of Georgia - - - - - - - - - - -

L. ';......

Auditee's Response Summarv SChedule of Prior Year Hidings and Questioned Costs

For the Fiscal Year Ended June 30, 1990

L

AUDITEE'S COMMENTS

Finding Control Number: FA-427-97-02

r

L

ELIGIBILITY

Improper Benefit Payments

Temporary Assistance to Needy Families (CFDA 93.558)

Family Support Payments to States (CFDA 93.560)

Questioned Cost: $4,143.00

DeKalb's filing system was delayed because of a move to a new facility. The filing system is now in place (as of 1/99) and they have established a new file management system. State case record readers are on site to review cases to ensure compliance.

Case record reviewers have also worked with Gwinnett to ensure compliance. The acceleration of the SUCCESS implementation delayed some planned activity as state office consultants were reassigned as trainers.

Finding Control Number: FA-427-97-03 ELIGIBILITY Improper Benefit Payments Foster Care Title IV-E (CFDA 93.658) Questioned Cost: $620.00

In order to address the issues several steps have been taken. First, training emphasizing documentation and communication between service and eligibility staff has been conducted. Additionally, a workgroup at the state office has worked on and is piloting a new process which will reduce documentation/communication problems. Another activity that will assist in the documentation issue in the implementation of a new system which allows for direct input and documentation on screens as the worker makes changes to the case. It also allows for alerts to remind staff of potential future changes such as expiration of orders or potential custody changes that will assist with the correct case benefit being paid.

Finding Control Number: FA-427-97-04 ELIGIBILITY Improper Benefit Payments Child Care and Development Block Grant (CFDA 93.575) Questioned Cost: $659~00

State office staff conducted a series of trainings on child care policy and procedure throughout the date training was completed. The Quality Assurance unit added child care to their reviews and read cases for correctness. In FY 98 site visits were made to review child care cases in a number of counties including the ones cited in the report. At these reviews cases were read for correctness and reports completed to the county director for corrective action. If corrective action was necessary, the state consultant worked with the county on a plan and monitored the implementation of that plan.

DEPARTMENT OF CORRECTIONS

Finding Control Number: FS-467-97-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

A plan was adopted in FY 1998 to reduce the number of "Additions" to PROP that were being made. The plan was for the field units to add inventory to PROP at the time the item was received. This would eliminate the process whereby the central office Property Control Section would receive hard copy purchasing information and then enter the item into PROP. This plan was also intended to reduce the time required for items to be entered into PROP, therefore improving the
F-23

- - - - - - - - - - - State of Geof'fJia - - - - - - - - - - -
Auditee's Response SummarY Schedule of Prior Year Rndings and Questioned Costs
For the Fiscal Year Elided JUlie 30. 1990
AUDITEE'S COMMENTS
GIFS to PROP reconciliation process. This reconciliation process was to occur monthly in the Property Control Section. An automated bar code scanning system was also to be implemented. This system would streamline the process of taking physical audits each year.
The plan for field units to enter PROP data at the time of receipt was implemented. However, due to staff turnover and management changes in the Property Control Section during FY 1998 the remaining planned corrective action was not implemented until FY 1999. At that time all units were re-trained in the use of PROP and the related policies. They were also taught the use of the automated scanning system which was used to initiate a 100% physical audit of all GDC property sites. The GIFS to PROP reconciliation process was also initiated in an effective manner. They are on-going at this time.
PUBLIC SERVICE COMMISSION
Finding Control Number: FS-470-97-01 GENERAL LEDGER Inadequate Accounting Procedures and Records - Agency Fund
The GPSC Staff has developed formal written procedures to administer the Universal Access Fund for the telecommunications industry in Georgia. This set of formal written procedures is entitled "Interim Universal Access Fund Procedures Manual".
This UAF Procedures Manual includes a section designed to guide the establishment and maintenance of a General Ledger.
Subsequently, we are developing a manual General Ledger to transition the spreadsheet entries now being kept by the Staff to Journal Entries and subsequently to Income Statement and Balance Sheet.
The bank and investment statements will be reconciled with the General Ledger, as well.
BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA
Finding Control Number: 472a-95-02 Information Security Policy
The following information was prepared to address the status of the Board's response to EDP General Controls, Information Security, Audit Control Number 472a-95-02. The format for this response will take each paragraph of the Management Response items previously submitted by the Board of Regents as separate issues.
Paragraph I Given the changes in the structure of the organization, the type of software in use, classifications of personnel and their subsequent access requirements, new guidelines are being developed as a part of the reorganization and Georgia First (PeopleSoft) project.
Paragraph 2 Removal of accounts of terminated/transferred employees is handled in a timely manner through a notification system between the Regents Central Business Office and the appropriate system administrator in OITT. A ticket is generated in the on-line Action Request System, Remedy, which in tum generates email to the system administrator requesting termination of account privileges. The system administrator emails a note back to the RCO Business office contact indicating that the request has been completed.
F-24

- - - - - - - - - - State of GeorBia - - - - - - - - - -

L

Audike's Response
Summarv Schedule of Prior veer Rndings and Questioned Costs

For the Fiscal Year Ended June 30. I99B

L

L

AUDITEE'S COMMENTS

Paragraph 3

I

The UNIX utility, lastb has been activated of the Regents Central Office HP 9000 UNIX system. Log files of all system

I
L....,

activity are kept for reference.

Paragraph 4 While other institutions were instructed to use the lastb utility, varying types of equipment prohibit its use universally.

Paragraph 5 The Board of Regents adopted a Computer Security Policy (section 712 of the BOR Policy Manual) that requires the Vice Chancellor's office to review campus' plan/report about its efforts to protect local computing assets. A cover letter and associated security form mailed to each USG president. A peer review group will be selected from the Administrative Committee on Information Technology, to assist with the review process. Submission of completed forms and per review will be due annually.

Paragraph 6 OIIT continues to furnish leadership in the area of security. Information about security has been disseminated to the University System through a number of activities: documentation on security issues sent to all campuses (1997); Birds of a Feather (BOF) session on security an authentication at the Spring ACT Meeting (1998); a session on UNIX security at the annual system conference on Information and Instructional Technology held at Rock Eagle (1998): attendance of a representative of OIIT at the annual Gartner Group Symposium which included information and discussions on security (1998). With rapid changes in technology continuing, OIIT is committed to provide other events and training opportunities that update information on various aspects of security to USG personnel on an ongoing basis.

DEPARTMENT OF REVENUE

Finding Control Number: FS-474-97-01 CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures

The Department has made additional resources available to the Central Accounting Section to implement the recommended corrective actions. All discrepancies, with the exception of deficiency five (5), have been resolved during fiscal year 1999. Bank accounts are monitored to assure they are reconciled with the accounting records on a timely basis; cash journals are maintained on all bank accounts; and reconciling items are being identified and corrected. We are working with the appropriate banks to resolve deficiency five (5) of the finding. The projected completion date is by the end of fiscal year 1999.

Finding Control Number: FS-474-97-02 REVENUEIRECEIVABLESIRECEIPTS GENERAL LEDGER Deficiencies in the State Revenue Collections Fund (Overall)

The Department contracted with an outside CPA firm to evaluate current deficiencies and to recommend the appropriate actions to resolve these deficiencies. Work has been started on developing software and hardware specifications for replacing the existing Revenue Collections system. The Department has established a task force and plans to issue an RFP within the next six (6) months.

F-25

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Auditee's Response Summarv SChedule of Prior Year Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 199B
AUDITEE'S COMMENTS
Finding Control Number: FS-474-97-03 REVENUEIRECEIVABLESIRECEIPTS GENERAL LEDGER Deficiencies in the Income Tax Division Subsidiary Records
1) The second phase of the withholding processing system is designed to have the functionality to interact with the planned rewrite of the individual processing system. The documented employer withholding will be systematically compared to the amounts claimed by taxpayers on the individual returns to assist in identifying inconsistencies.
The redesigned individual income tax system will include a program to compare the federal income tax master file tape to the Georgia returns file, to reconcile the federal adjusted income claimed on the Georgia return to the federal return. The Department is currently developing a plan that will include the time frames for the development of the new individual system.
2) The Department is redesigning Phase I of the individual income tax system to include an automated amended return process which will ensure that adjustments are processed in a timely manner.
3) Implementation of Phase I of the withholding system relieved the Department from maintaining a handprepared log book. Printouts of the batch listings from the system are now maintained in lieu of the log. Phase II will provide an adequate system of accounting controls to utilize automated procedures to ensure that all batches are processed by the system prior to purging. The Department will begin implementing Phase II during 1999.
Finding Control Number: FS-474-97-0S GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
1) Purchases made through the Department's installment agreement have been added to the equipment inventory listing during fiscal year 1998.
2) The Department will implement procedures to ensure that a reconciliation is performed and discrepancies are resolved monthly.
GEORGIA STUDENT FINANCE COMMISSION
Finding Control Number: FS-476-97-01 BUDGET PREPARATIONIEXECUTION Overexpenditure of Budget Unit Object Classes
We have introduced stricter controls which include reviewing of expenditures with the division directors on a monthly basis.
Additionally, we are implementing stricter control procedures over budget operations and its design procedures which would result in prohibiting the expenditure of funds in excess of budget approval.
F-26

L - - - - - - - - - - - State of Georgia - - - - - - - - - - -

L

Auditee's Response Summarv SChedule of Prior Year Findings and Questioned Costs

For the Fiscal Year Ended June 30, 199B

L

AUDITEE'S COMMENTS

DEPARTMENT OF TRANSPORTATION

Finding Control Number: FS-484-97-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

The items identified in the finding have been corrected and are properly inventoried.

The Department examined its procedures for maintaining property inventory and the inventory coordinators were
instructed in the proper and necessary procedures for correctly maintaining property in the inventory system. During fiscal
year 1998 two inventories were sent to all units for verification of property. These inventories were conducted in February
L_
and June 1998.

The Department is currently re-engineering the Property Management System to comply with the Asset Management System in PeopleSoft. Procedures under PeopleSoft will allow the Department to easily terminate the authority to purchase inventory equipment for office units who do not comply with Asset Management Policy and Procedures.

SUBSEQUENT INJURY TRUST FUND

Finding Control Number: FS-489-97-01 ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties

This agency employs a totalof27, one of which is the Fiscal Officer's position who also serves as accountant for all of the Fund's assets and expenditures. To separate the duties of accounting functions into six separate functions would necessitate the acquisition of five additional accountants or accountant assistants. Under the current procedure, all of the accounting jobs can be performed by one (1) full time position. Therefore, the additional cost involved to separate the accounting functions for an agency as small as this would not be cost effective and cannot be justified.

GEORGIA INSTITUTE OF TECHNOLOGY

Finding Control Number: FA-503-97-07 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Reports Not Submitted in a Timely Manner

We concur with this finding and a review of the existing procedures has been performed in an effort to eliminate or reduce the number of reports not filed in a timely manner. This review covered:

1. The Office of Contract Administration (OCA) reviews all RFP's and solicitations prior to submission to identify all contractual deliverable requirements, which are reviewed with the proposed Project Director/Principle Investigator (PD/PI) prior to proposal submission. If needed, this review is completed again, prior to acceptance of a sponsored agreement.

2. As soon as a new sponsored project is received, OCA reviews the agreement and prepares (for the PDIPI) a listing,

including the dates that items are due, of all contractually required deliverables. This deliverable schedule is presented

to the PDIPI for review, and they are asked to sign-off on a copy of the schedule to indicate concurrence. This record

L-

is then retained in the permanent contract file.

F-27

- - - - - - - - - - State of Georgia - - - - - - - - - -
AuditLe's Response Summarv SChedule ofPrior Year Rndings and QuesHoned Costs
For the Fiscal Year Ended June 30. 1993
AUDITEE'S COMMENTS
3. OCA prepares and distributes for all campus units a monthly report of deliverables due the following month to contracting agencies under all sponsored research projects.
4. During the last year features were implemented to provide a list of all project deliverable information to each PDIPI and all levels of management within a unit via a web-based query tool.
5. OCA also prepares and distributes to all campus units a quarterly report of overdue deliverables for all sponsored research projects. This is a list of all required deliverable items not known by OCA to be satisfied with or submitted to the sponsoring agency. The report is copied to members of upper administration, including Deans, School Chairs and Lab/Center Directors.
6. OCA initiates special follow-up action by way of memos directly to PDIPI's for any deliverable item(s) that are approximately 60 or more days overdue, with special attention given to oldest items.
7. Campus newsletter articles have been issued to emphasize the importance of timely deliverable submission or the need to seek timely relief (extension of due date) from sponsors for required deliverables.
This review indicated that the systems in place were operating as planned and it is anticipated that the number of exceptions will be significantly reduced or eliminated. An additional review of these procedures will be performed before December 31, 1999 to determine if other procedures can be developed to assist with deliverable monitoring.
Contact Person: G. Duane Hutchinson, Director, Office of Sponsored Programs Telephone: 404-894-4819; Fax: 404-894-7002; E-Mail: duane.hutchison@oca.gatech.edu
Finding Control Number: FA-503-97-08 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Log and Track Required Reports
We concur with this finding and our review indicated that the required reports mentioned in this fmding were inadvertently omitted from the deliverable schedules prepared by the Contracting Officers. The deliverable schedules for the specific projects cited have been corrected/revised. The Division Manager responsible for the preparation of deliverable schedules is working with the Contracting Officers and the Project DirectoriPrincipal Investigator to re-emphasize the importance of preparing a complete and accurate listing of all contractually required deliverables. An additional review of these procedures will be performed before December 31, 1999 to determine if additional procedures can be implemented to assist with deliverable monitoring.
Contact Person: G. Duane Hutchinson, Director, Office of Sponsored Programs Telephone: 404-894-4819; Fax: 404-894-7002; E-Mail: duane.hutchison@oca.gatech.edu
Finding Control Number: FA-503-97-09 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Log and Track Required Reports
We concur with this fmding and our review and indicated that the required reports mentioned in this fmding were inadvertently omitted for the deliverable schedules prepared by the Contracting Officers. The deliverable schedules for the specific projects cited have been corrected/revised. The Division Manager responsible for the preparation of deliverable schedules is working with the Contracting Officers and the Project DirectorlPrinciple Investigator to re-emphasize the importance of preparing a complete and accurate listing of all contractually required deliverables. An additional review of these procedures will be performed before December 31, 1999 to determine if additional procedures can be implemented to assist with deliverable monitoring.
F-28

L - - - - - - - - - State of GeorfJiQ - - - - - - - - -

AuditLe's Response

L

SummarY SChedule of Prior Year Rndings and Questioned Costs

For the Fiscal Year Ended June 30. 199B

L

L AUDITEE'S COMMENTS

Contact Person: G. Duane Hutchinson, Director, Office of Sponsored Programs

I
~

Telephone: 404-894-4819; Fax: 404-894-7002; E-Mail: duane.hutchison@oca.gatech.edu

Finding Control Number: FA-503-97-12 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Submit Required Reports

We do not concur with this fmding and recommendation. Our review indicated that all of the required reports mentioned in this fmding were not entered on the schedule of deliverables because no certain date could be identified for multiple reports to be submitted based on occurrence of certain project activities. When deliverable due dates are connected to scope of work events, where the number of occurrences and the exact dates for delivery are unknown at the time that the entries are made to the schedule of deliverables, it has been OCA's procedure to list the first report due date and to not attempt to list subsequent items on the deliverable schedules. Action will be taken no later than December 31, 1999 to clarify any open issues concerning this audit fmding.

Contact Person: G. Duane Hutchinson, Director, Office of Sponsored Programs Telephone: 404-894-4819; Fax: 404-894-7002; E-Mail: duane.hutchison@oca.gatech.edu

Finding Control Number: FA-503-97-13 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Submit Required Reports

We do not concur with this finding and recommendation. Our review indicated that the report was included one time on the deliverables schedule and has been delivered at least once during the term of this contract. Since this deliverable is connected to scope of work events where the number of occurrences and the exact dates for delivery are not known, it has been OCA's procedure to not attempt to list subsequent items of this nature on deliverable schedules. Action will be taken no later than December 31, 1999 to clarify any open issues concerning this audit finding.

Contact Person: G. Duane Hutchinson, Director, Office of Sponsored Programs Telephone: 404-894-4819; Fax: 404-894-7002; E-Mail: duane.hutchison@oca.gatech.edu

GEORGIA STATE UNIVERSITY

Finding Control Number: FS-509-97-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

In order to resolve the inadequacies in the Operation of the Property Management System, Georgia State University instituted the following actions:

* terminated the employment of the Property Control Manager * hired an outside firm to complete a physical inventory * assigned staff to reconcile old record information versus outside firm information * established inventory value as of June 30, 1998 * moved Property Control function from Business Services to Accounting Services and renamed to
Property Accounting
* hired Property Accounting Manager * prepared memorandum to campus staff reminding them of the procedures * identified CollegelDepartment Property Coordinators
F-29

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Auditee's Response Summarv SChedule ofPrior Year Findings and Questioned Costs
For the Rscal Year Ended June 30. 199B
AUDITEE'S COMMENTS
* met with College/Department Property Coordinators to obtain their input in the sharing of responsibility
for the accountability of assets and the proper recording of inventory
* developed memorandum detailing the paperwork flow and the departmental responsibility and developed
and revised forms for the accountability of assets
* assigned ongoing data input responsibility to Property Accounting * updated the building number listing to agree with the one maintained by Planning and Facilities and that
which is on file with the Board of Regents
* updating department number information in the inventory system * developing monthly reports for College/Department * developing procedures for reconciling general ledger account to inventory account
Note: Not all of the above procedures were implemented as of June 30, 1998. Some of these procedures were implemented during the subsequent fiscal year.
ALBANY STATE UNIVERSITY
Finding Control Number: FS-521-97-01 REVENUEIRECEIV ABLE/RECEIPTS Student Accounts Receivable Not Supported by Financial Aid
The institution contracted with KPMG Peat Marwick to provide training for the Financial Aid staff, to ensure that proper procedures are used for the making of financial aid awards, including the need to obtain approved documentation to support financial aid before disbursement of funds. This training has occurred and the Institution will continue to monitor student accounts receivable closely. In addition, the institution has outsourced the collection of current receivables to private companies and feels confident that those balances will be reduced. Also, the institution will continue its effort to locate the three (3) student loan files.
Finding Control Number: FS-521-97-02 FUND EQUITIES Deficits to be Funded from Subsequent Years' Operation
The Athletic Director, the Business Office and the Vice President for Fiscal Affairs developed a plan of action to control operations of the Athletic Program for the current year such that revenues exceeded expenditures by $24,710.30. This action plan will be continued until the remaining deficit of$108,508.74 is eliminated.
AUGUSTA STATE UNIVERSITY
Finding Control Number: FS-527-97-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Changes in equipment inventory have not been adequately monitored, recorded and reconciled. The following corrective action will be taken:
(l) Accounting and inventory records will be reconciled by January 31, 1999.
(2) Accounting and inventory records will be reconciled annually as part of the year-end closing process with reconciliation report submitted to the Vice President of Business Affairs by August 31.
F-30

L - - - - - - - - - - - State of GeorBia - - - - - - - - - - -

L

Auditee's Response SummarY SChedule of Prior Year Findings and Questioned Costs

For the Fiscal Year Ended JUlIe 30. 199B

L

L AUDITEE'S COMMENTS

Finding Control Number: FS-527-97-02

CASH AND CASH EQUIVALENTS

~>> - '

Inaccurate Accounting Procedures

The corrective action plan was to develop a written investment policy, utilize the pooled investment funds more, and better monitor and record investment income. We have developed the written policy and begun using the Regent's pooled investment funds, however, CD investments have not been adequately monitored. Efforts will be made to improve that monitoring by requiring quarterly reports to the Vice President for Business and Student Services.

CLAYTON COLLEGE AND STATE UNIVERSITY

Finding Control Number: FS-528-97-02 GENERAL LEDGER Clearing Account Balance Not Supported by Detail Listing

During fiscal year 1998, a new report format was implemented in an attempt to document the clearing account balance. However, this report proved to be insufficient in providing a total detail of student receivables. As of June 30, 1998, a balance of $26,964.45 remains in this account which cannot be documented. During fiscal year 1999, a more extensive report will be developed which will enable the University to provide a detailed subsidiary ledger.

Finding Control Number: FS-528-97-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

During fiscal year 1998, sufficient resources were not assigned to resolve this finding. A complete physical inventory will be taken during fiscal year 1999 and equipment records will be adjusted based on the results of this inventory.

FORT VALLEY STATE UNIVERSITY

Finding Control Number: 533-96-14 TYPES OF SERVICES/ALLOWED OR UNALLOWED Disbursement in Excess of Cost of Attendance

The institution has mandated a policy that all payments to students, regardless of the source, must be approved by the financial aid office before disbursement. This policy was already in effect, but apparently not adhered to sufficiently. Therefore, the emphasis that the institution now places on the procedure should provide the appropriate enforcement of the policy.

Finding Control Number: 533-96-18 ELIGIBILITY Student Financial Aid in Excess of Maximum Time Frame

We submitted information to the Federal government concerning this student's specific situation. Documentation supporting this was available in the student's folder, but was not appropriately listed for the audit year. We have appealed this fmding with the understanding that documentation will always be appropriately listed in the future.

F-31

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Auditee's Respol1Se Summarv Schedule of Prior Year Rndings and Questioned Costs
For the Fiscal Year Ended JUlIe 30. 1996
AUDITEE'S COMMENTS
Finding Control Number: 533-96-19 ELIGIBILITY Satisfactory Academic Progress Not Maintained
We do not concur with this finding. Satisfactory Academic Progress (SAP) reviews are made at the end of the Spring quarter, with allowances for Summer enrollment before suspension takes place. The auditors were informed of this policy. Beginning the 95-96 school year appeals were approved for the same period. The auditors were given this information and requested not to use the old catalogs since the latest one had not been received from the printing company. Further, an analysis of the cases cited by the auditors revealed the following:
The two students cited for incremental measurement violation had complied with requirements at the end of the Summer '95 period, preceding Fall '95. Therefore, no financial suspension was warranted. Two students had been suspended from financial aid at the end of Spring '95, had appealed their suspension and been approved for 95-96, and documentation was available in the respective student's records attesting to action taken. Two students began the 1995-1996 school year in compliance of satisfactory academic progress. During the course of the school year academic problems prevailed. However, as long as the institution allowed the students to re-enroll during this period, no action was warranted until the end of the 95-96 school year.
A result of all the aforestated information, we do not concur with audit findings in this area.
Finding Control Number: FS-533-97-03 REVENUES/RECEIVABLES/RECEIPTS Improper Student Accounts Receivables
All students are billed on a monthly basis. Students whose deferments fail to clear within a reasonable time are placed on hold, which makes them ineligible to register or transact any other business with the institution. Old accounts are placed with a collection agency, in addition, collection effort by the student accounts manager has strengthened collections.
Finding Control Number: FS-533-97-04 FUND EQUITIES Deficits to be Funded from Subsequent Years' Operations
Athletics ended the year with a small surplus. Plans are in place to fund the deficit and to ensure that overexpenditures do not occur in the future.
Finding Control Number: FS-533-97-06 GENERAL LEDGER RO.P.E. Program Reconciliation Report Not Reconciled to Accounting Records
The accounting office forwards the balances for the H.D.P.E. program to the financial aid department on a periodic basis. The financial aid office has retained the responsibility for reconciliation and they are the ones who correspond directly with the H.D.P.E. fiscal office. At this time, the reports are not being reconciled to the accounting records.
Finding Control Number: FA-533-97-01 ELIGIBILITY Failure to Maintain Complete Records
At the time the auditors requested the documents in question, the department was in the process of updating student files on the Banner Student Financial Aid System. The decision was made to supply them with a computer generated award letter. This resulted in the date on the award letter being equal to the date that they were generated. The Institution has
F-32

----------- State of Georgia -----------

Auditee's Response
Summarv SChedule ofPrior Year Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 199B
e'
r/
L

,;

r

AUDITEE'S COMMENTS

L

since completed the updating of all student files and the Director of Financial Aid is working with the counselors to ensure

I

that all files remain current.

"'--------'

Finding Control Number: FA-533-97-02 REPORTING Expenditures in Excess of Authorization

Payment to about six students for Pell Grants is still being resolved. These payments involve transfers, either to or from Fort Valley State University, that have to be corrected by other institutions. This situation is not unusual and it normally takes well into the next school year for final resolution to happen. Specifically, we have situations where a student's payment is sent in by two institutions for the same period. The record has to be corrected by the other institutions involved for those periods of non-attendance. We cannot do it on our end, and until it is done, our payment to these students is in question. We have been in contact with the U. S. Department of Education. Past experience indicates that this matter will be solved by the current mid-school year.

Finding Control Number: FA-533-97-03 REPORTING Inadequate Documentation for Report

For this year, the gathering of data for student clusters on the Fiscal Operations Report had to be processed manually due to a technical problem with the computer program. During the examination the tally sheets used to compile the data could not be located.

Finding Control Number: FA-533-97-04 REPORTING Reports Not Reconciled

At this time, no verification has been performed to ensure the reports are reconciled.

GEORGIA SOUTHERN UNIVERSITY

Finding Control Number: 539-96-01 REVENUES/RECEIVABLES/RECEIPTS Student Accounts Receivable Not Supported by Financial Aid

Georgia Southern University is following the Board of Regents Policy, Section 704, on collecting fees at student registration and ensuring that allowable exceptions to the Board of Regents' Policy have supporting documentation. Student fee deferments are only granted to students whose fees are guaranteed by an agreement with an outside agency and whose student fees will be paid from approved financial aid.

Procedures to collect outstanding accounts receivable balances have been implemented. This is evident by the fact that the accounts receivable balances have declined during fiscal year 1998 and prior fiscal years. Georgia Southern University will continue its collection efforts on the outstanding student accounts receivable balances. In addition, to assist in the collection of the accounts, Georgia Southern University has placed a financial record hold on the academic records of students who have outstanding accounts receivable balances.

F-33

----------- State of Georfjia -----------
Auditee's Response Summarv SChedule ofPrior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1990
AUDITEE'S COMMENTS
Finding Control Number: 539a-95-04 Disaster Recovery
Georgia Southern University has performed a risk assessment of our application systems and business processes and has identified those that are mission critical. These processes are our Banner and People Soft systems.
Georgia Southern University's disaster recovery plan for Banner is to install a computer in the Technology Building capable of running daily Banner tasks. Should a disaster occur in the Administration Building computer center, applications software and copies of database files (from the nightly backup of all databases) will be installed on the reserve computer. Fiber cable in the Business Administration building will be connected for fiber cable running to the Technology Building (patch panels to be installed as part of this plan). This will create a small network for the two buildings. The Technology Building has 168 recent generation (1995 or newer) computers, 54 of them in open labs. Business Administration has 411 recent general computers, 163 of them in open labs. Thus the newly established network will a total of 579 computers, 217 in open labs. To conduct daily Banner business, 40 computers in open labs in the two buildings would be reserved for the duration of the disaster.
In conjunction with Board of Regents, Georgia Southern University has established a disaster recovery plan for the financial systems. Our disaster recovery system for People Soft is to load the People Soft applications software on existing GSU computers equipped with modems. Existing Campus MCI accounts will be used to dial into the People Soft system.
In the long term, this solution builds on the Banner disaster recovery solution. A TI line and required Peachnet equipment will be installed in the communications room of the Technology building. An existing Novell server will be relocated to the communications room and the People Soft applications software will be installed on the server. At this point the 579 computers in the Technology-Business Administrations cluster will have access to People Soft.
Once the recovery plan is implemented, it will be periodically tested and maintained. Appropriate personnel responsible for the implementation of the plan will be informed and trained for their responsibilities.
KENNESAW STATE UNIVERSITY
Finding Control Number: 543-96-01 REVENUESIRECEIVABLESIRECEIPTS Student Accounts Receivable not Supported by Financial Aid
The process for collecting Masters of Experienced Professional student fees has been restructured. The policies developed are designed to ensure that the University is in compliance with Regents policy. The number of students who owe fees has been reduced, the current balance is $73,571.27. These students' accounts have been placed under collection with financial collection agencies.
SAVANNAH STATE UNIVERSITY
Finding Control Number: 548-96-01 REVENUEIRECEIVABLESIRECEIPTS Student Accounts Receivable Not Supported by Financial Aid
The University has increased its collection efforts to reduce accounts receivable. Uncollectible debts under $100 will be gradually written off under House Bill 1536, O.C.G.A. Section 50-16-17. Surplus funds will be used to increase the reserve for uncollectible debts in excess of $100. The institution will examine internal operations and put controls in place to ensure that deferments awarded are supported by Financial Aid.
F-34

Lw - - - - - - - - - - - State of Georgia - - - - - - - - - - -

L

Auditee's Response Summarv SChedule of Prior Year Findings and Questioned Costs

For the Fiscal Year Ended June 30. 1990

AUDITEE'S COMMENTS

Finding Control Number: 548-96-02

f

EXPENDITURESILIABILITIES/DISBURSEMENTS

Deficit Cash Balance

To eliminate this deficit, the University will continue to monitor the awarding of the Naval Science Scholarship and increase fund raising efforts. The $20,000 donation from ARAMARK will be applied to the deficit. In addition, at the end of the fiscal year, a portion of the General Scholarship Funds will be redirected to Naval Science Scholarships to further reduce the deficit.
L.. _ _
Finding Control Number: 548-96-03 FUND EQUITIES Deficit to be Funded from Subsequent Years' Operation

The University will continue to apply future annual surplus of the Athletic Program to the deficit until full satisfaction. Though probably small in amount, we are projecting a surplus from this year's operation which will serve to reduce the deficit. Prior year purchase orders canceled totaling $10,059.53 has been applied to the deficit.

SOUTHERN POLYTECHNIC STATE UNIVERSITY

Finding Control Number: 550-96-01 FUND EQUITIES Deficit Fund Balances Amount: $17,132.58

After a careful review of the specific disbursements involved in this finding, it 'was determined that the best course of action is to transfer these disbursements to private sources. The University will contact the Foundation to request funds to cover the deficit.

Finding Control Number: 550-96-02 REVENUES/RECEIVABLES/RECEIPTS Student Accounts Receivable Not Supported by Financial Aid Amount: $25,577.32

The University has performed due diligence in collecting student accounts receivable. The University has hired a new comptroller who will join the management team on February I, 1999. The University may consider placing uncollected student accounts receivable balances with a third party collection agency.

Finding Control Number: FS-550-97-01 REVENUES/RECEIVABLES/RECEIPTS Deficit Cash Balances/Inadequate Accounts Receivable Documentation Amount: $67,622.05

After a careful review of the specific disbursements involved in this finding, it was determined that the best course of action is to transfer these disbursements to private sources. The University will contact the Foundation to request funds to cover the deficit.

F-35

----------- State of Georgia -----------
Auditee's Response Summarv SChedule ofPrior Year Findings and Questioned Costs
For the Fiscal Year Ended JUlIe 30, 1993
AUDITEE'S COMMENTS
Finding Control Number: FA-550-97-01 REPORTING FISAP Report Not Reconciled to Accounting Records Student Financial Aid Cluster Program
The University's internal auditor will review all reconciliations at the close of fiscal year 1999 and advise the chief business officer if any accounts are not in a reconciled position.
Finding Control Number: FA-550-97-02 SPECIAL TESTS AND PROVISIONS Exit Counseling Not Conducted Student Financial Aid Cluster Program
The Title IV administrator will review the graduation list and determine if any of the graduates have financial aid in the form of federal loans. The University will mail the candidate for graduation an exit package which contains a USDOE exit booklet which contains the information sheet. The candidate for graduation will be asked to fill out certain forms and return them to the University. The University will freeze the student records until this sheet has been returned to the University. This document, once returned, will be placed in the student's financial aid file.
VALDOSTA STATE UNIVERSITY
Finding Control Number: 551-96-04 ELIGIBILITY Deficiencies in Awarding/Disbursing Student Financial Aid
The overpaid student has been notified and charged. The overpaid monies have been returned.
The two underpaid students have yet to be disbursed. Per the Department of Education, the University must submit a "Federal Pell Grant Program - Increase Award Report" to the Department since the award year under question is now closed. A certification statement is needed from the independent auditor to accompany this report. The awards will be disbursed upon approval from the Department of Education.
Finding Control Number: FS-551-97-02 REVENUEIRECEIVABLESIRECEIPTS Student Accounts Receivable Not Supported by Financial Aid
Student accounts receivable (incurred prior to Summer Quarter 1997) had decreased to $163,631.21 as of June 30, 1998. Valdosta State University implemented procedures wherein all student accounts over one year old are notified in writing of the balance due and reported to a credit bureau (Equifax) when account is over one year old.
STATE UNIVERSITY OF WEST GEORGIA
Finding Control Number: FA-554-97-01 ELIGIBILITY Overpayment of Student Financial Aid Student Financial Aid Cluster Program Questioned Cost: $712.50
Procedures have been put into place within the Federal Work-Study Program (FWSP) by the Financial Aid Director to ensure that hours worked and dollars paid are authorized and do not exceed the Federal Work-Study Awards. A Web
F-36

- - - - - - - - - - - State of GeOf'Bia - - - - - - - - - - -

L

Auditee's Response SummarY SChedule of Prior Year Findings and Questioned Costs

For the Rscal Year Ended June 30. 199B

L

L AUDITEE'S COMMENTS

application has been designed for monitoring each participant's FWSP earnings against his or her award per quarter and

L

now per semester basis. This tool is designed to improve the time required by Financial Aid personnel to adequately

monitor these earnings. In addition, the availability of the FWSP earnings information will enhance the warning system

for Financial Aid personnel of any awards that exceed the period because of students dropping out of school. i'
L
The University has not been contacted by the U. S. Department of Education regarding the resolution of questioned costs.

Finding Control Number: FA-554-97-02 ELIGIBILITY Overpayment of Student Financial Aid Student Financial Aid Cluster Program Questioned Cost: $1,628.11

The University has not been contacted by the U. S. Department of Education regarding the resolution of questioned costs.

Finding Control Number: FA-554-97-03 ELIGIBILITY Inadequate Control Procedures Student Financial Aid Cluster Program Questioned Costs: $14,061.47
L_
Third Party Reviews The University has engaged the services of the Financial Aid Audit Team of KPMG (Peat Marwick) to perform a
focused audit on the Federal Work-Study Program (FWSP). KPMG reviewed the findings by the State Audit Agency for the year 1997 and the time cards submitted for the athletic programs for the fiscal years ending 1995 and 1996 to determine if we have had a problem in the prior years. In addition, KPMG sampled and reviewed as necessary the FWSP charges for non-athletic departments to ascertain the program has not been overcharged and proper controls are in place.

The University is in agreement with KPMG Peat Marwick's conclusion of $10,468.75 total dollars used to pay the baseball players' their FWSP earnings reported as "questioned costs" resulting from the A-l33 compliance audit of FWSP for FY 97. The Federal dollar amount represented in this total is $7,851.56. The University is ready to reimburse the FWSP upon request from the U. S. Department of Education.

Internal Action We have reviewed our procedures for auditing time cards both in the Financial Aid Department and the Payroll
Department prior to payment of any hours in the future. Those controls have been tightened to verify that all signatures are in place and are legitimate authorized signatures. Human Resources requires each department to submit an signature authorization form. This authorization form contains the name and signature of each individual authorized to sign time cards on behalf of the department. The name and signature information is shared with the Financial Aid Office. Financial Aid is also verifying each card against the award. In addition, a Web based tracking system has been developed for use by Financial Aid personnel to maintain control of each FWSP participant's earnings per quarter. The system is nearing its final stages of testing.

Career Services' requirement for job descriptions and signed contracts for student employees is being enforced more rigorously. The department held an informational workshop for department personnel responsible for supervising student workers. The workshop was offered on June 26 and June 30, 1998.

The University's Departrilent of Internal Auditing has been monitoring FWSP time cards for each bi-weekly pay period during FY 98.
F-37

- - - - - - - - - - - State of GeorBia - - - - - - - - - - -
Auditee's Response Smrnerv SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1993
AUDITEE'S COMMENTS
The Baseball program forfeited its FY 98 FWSP allocation. The Athletic program will absorb the original costs to the FWSP. Also, the Baseball program has not received any FWSP allocation for FY 99. Students' eligibility has not been affected by any corrective actions implemented by the University as a result of these audit findings.
ATLANTA METROPOLITAN COLLEGE
Finding Control Number: 561-96-01 FUND EQUITIES Deficit Fund Balance
The College contacted the United States Department of Education in an effort to fund the fiscal year 1994 Pell Grant Program deficit by having the authorization amount for the fiscal year 1994 Pell Grant Program increased by $34,363.31. We explored the options available to us in this regard without success. The College has also contacted the Board of Regents regarding the funding of this deficit and will continue to explore all reasonable options available to the College to fund this deficit.
Finding Control Number: 561-96-02 REPORTING Incorrect Student Payment Summary Report Federal Financial Assistance Student Financial Aid Cluster Program (84.063)
The College contacted the United States Department of Education in an effort to fund the fiscal year 1995 Pell Grant Program deficit by having the authorization amount for the fiscal year 1995 Pell Grant Program increased by $64,595.20. In March 1998, the United States Department of Education notified the College that an authorization increase was appropriate for the fiscal year 1995 award year. The College has been given the opportunity to submit an official request for an authorization increase. The College has contracted with an accounting firm to provide assistance in preparation of the documentation required to support an authorization increase. The College has also contacted the Board of Regents regarding the funding of the deficit and will continue to explore all reasonable options available to the College to fund this deficit.
Finding Control Number: 561-96-04 REPORTING Incorrect Student Payment Summary Report
The College has certified the validity of the excess fiscal year 1996 Pell Grant Expenditures and is awaiting an upward adjustment of the fiscal year 1996 Pell Grant authorization from the United States Department of Education.
Finding Control Number: 561-96-05 SPECIAL TESTS AND PROVISIONS Overpayments to Federal Financial Aid Recipients
As indicated in this College's April 23, 1997 response to 1996 reported findings, letters were sent to student's (1) and (3) informing them of their obligation to repay funds received in error totaling $432.00 (student number (1) $282.00, student number (3) $150.00). The academic records of these two students have been held and are unavailable to the students until payment is received. On November 21, 1997, the College corresponded a second time by certified mail informing them of their financial obligation to the College. Thus far the College has been unsuccessful in collecting these repayments.
F-38

L - - - - - - - - - - - State of Georgia - - - - - - - - - - -

L

Auditee's Response Summarv SChedule of Prior Year Rndings and Questioned Costs

For the Fiscal Year Ended June 30, 199B
L

L AUDITEE'S COMMENTS
FLOYD COLLEGE
i ~
Finding Control Number: FS-573-97-02 FUND EQUITIES Deficit Restricted Funds
The College has cleared $98,296.57 which satisfied one of the two Restricted Funds in question. The organization funding the other restricted account has been invoiced, and repeatedly contacted regarding the status of the account. Controls have been established to ensure that Restricted Funds are reviewed monthly to determine which accounts should have been invoiced and to verify that receipts are posted to the correct accounts. Except where contractual agreements exist to the contrary, invoices requesting reimbursement for expenditures will be generated monthly to ensure a more timely collection of funds due the Restricted accounts.
Finding Control Number: FS-573-97-03 GENERAL LEDGER H.O.P.E. Program Reconciliation Report Not Reconciled to the Accounting Records
The business office and the financial aid office are currently working together to reconcile the HOPE program reports to the accounting records. The College believes that the problem stems from the initial years of the HOPE award when there were no formal reconciliations performed between the Financial Aid records and the accounting records. Financial aid reconciliations will be performed no less than quarterly, except for PELL, which will be reconciled monthly.
Finding Control Number: FS-573-97-04 GENERAL LEDGER Agency Fund Deficits and Lack of Purpose Statements
Deficiencies in thirteen of the fifteen accounts have been corrected. The deficit balances of the two remaining accounts have been reduced to $535.75. Procedures are now in place to ensure that all billings are monitored on a monthly basis. Additionally, we are reviewing all agency fund accounts to verify that each account has a current purpose statement.
MIDDLE GEORGIA COLLEGE
Finding Control Number: FS-584-97-01 REVENUES/RECEIVABLES/RECEIPTS Student Accounts Receivable Not Supported by Financial Aid
We concur with this finding. These receivables are due to changes in a student's financial aid after registration or due to the student's withdrawal. Part of the identified finding consists of accounts that are several years old. The likelihood of collection becomes more and more remote each year. An integrated system for financial aid, registration, and student fees has been implemented and will assist in improving this problem. Also, collection efforts have.been increased.

F-39

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
AuditLe's Response Smrnerv SChedule of Prior Year Fifldiflgs arid Questiofled Costs
For the Fiscal Year Ended June 30, 1990
AUDITEE'S COMMENTS
SOUTH GEORGIA COLLEGE
Finding Control Number: FS-587-97-01 FUND EQUITIES Deficit to be Funded from Subsequent Years' Operations
Changes have been made to the food services to minimize losses. The College believes that food services need to be offered due to on-campus housing. Operations have been contracted out for food services and the College has no significant input into its operations.
On-campus housing has been consolidated into a co-ed dorm. Indirect cost for unused dorm space is the main contributor to unprofitable operation of housing.
GEORGIA MILITARY COLLEGE
Finding Control Number: FS-590-97-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Georgia Military College continues implementation of the new inventory system into FY99 when it will be completed. This new system will be integrated with the financial accounting system and will enable the College to insure that newly purchased equipment is added to the inventory in a more timely and accurate manner. No funds were provided in FY99 to obtain outside, professional assistance to properly assess the valuation of the older buildings owned by Georgia Military College. The College will attempt to set funds aside in its operating budget for FYOO.
Finding Control Number: FS-590-97-02 GENERAL LEDGER Inadequate Accounting Procedures
Georgia Military College closed its accounting records for FY98 on September 22, 1998; plan had been to accomplish the closing on August 15, 1998. Goal remains to close accounting records no later than August 15 each year.
Georgia Military College has made the necessary adjustments in its accounting procedures to insure that Restricted Fund activity is properly recorded. Further, procedures now in place insure that the general ledger cash balance is correct.
SKIDAWAY INSTITUTE OF OCEANOGRAPHY
Finding Control Number: FS-593-97-01 ACCOUNTING CONJ:ROLS (OVERALL) Inadequate Separation of Duties
Skidaway Institute is a small operation with a total staff of only three employees in the fiscal affairs office. This size staff makes it almost impossible to establish a logical work flow and satisfy the principle of separation of duties. Skidaway Institute will continue to review operations to determine if duties can be reassigned or if compensating controls can be established to achieve a higher degree of internal control with existing staff.
F-40

L ----------- State of Geot'fjia -----------

L

Auditee's Response SummarY SChedule of Prior Year Rndings and Questioned Costs

For the Fiscal Year Ended June 30. 1995

L

L AUDITEE'S COMMENTS
WEST GEORGIA TECHNICAL INSTITUTE

Finding Control Number: 819-96-01

r L

ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties

The Institute is implementing appropriate procedures to satisfy the separation of duties requirement. In the areas of expenditures, liabilities and cash disbursements and bank reconciliations, the Institute has evaluated job functions and reassigned staff persons in these areas. By the end of the current fiscal year, complete resolution of this finding will be obtained.

Finding Control Number: 819-96-02 CASH MANAGEMENT Excessive Cash Balances

The Institute implemented a corrective action plan, but did not correct the deficiency and the stated condition remains. Reorganization and the reassigning ofjob responsibilities in some areas will enable the Institute to resolve this finding and adequately forecast the cash needs of the program.

Finding Control Number: 819-96-05 FEDERAL FINANCIAL REPORTS Federal Cash Transactions Report Not Reconciled

The Institute implemented a corrective action plan, but did not correct the deficiency and the stated condition remains. The Institute notes that the resolution of the cash and cash equivalents administrative requirement finding will aide in providing adequate detail for the reconciliation ofthis report.

Finding Control Number: FS-819-97-01 CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures

The Institute implemented a corrective action plan, but did not correct the deficiency and the stated condition remains. The monthly payroll bank statements were reconciled for each month by June 30. Numerous adjustments were necessary to reconcile the operating bank account and the Federal bank account.

The Institute is implementing appropriate procedures and controls to ensure that all reconciling items are identified and corrected each month. All unresolved reconciling items from prior year audit will be addressed in the current year.

ALBANY TECHNICAL INSTITUTE

Finding Control Number: FS-820-97-05 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

From January thru June of 1998, our PROP focus was to complete a full physical inventory of the campus and to ensure all current year purchases were accounted for in PROP. In July, 1998 we also placed a full-time employee to handle PROP reconciliation, maintenance and conducting the campus inventory reviews. Procedures are now in place to maintain current ledgers for PROP items.

F-41

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Auditee's Response Summarv SChedule of Prior Year Rndings and Questioned Costs
For the: Fiscal veer Ended June: 30, 199B
AUDITEE'S COMMENTS
AUGUSTA TECHNICAL INSTITUTE
Finding Control Number: FS-824-97-02 REVENUES/RECEIVABLES/RECEIPTS Inadequate Accounting Control Procedures
Outstanding receivables from prior years are pursued for collection. Records of students who owe past balances are sealed and no information is released until balances are paid.
Augusta Technical Institute continues to review procedures for financial aid eligibility and to implement electronic processes in an effort to reduce and/or eliminate students becoming ineligible for financial aid.
The Institute has changed the procedure for notification by the bank for returned checks. A more timely notification should assist in locating students who write checks for insufficient funds before they drop out of classes.
CHATTAHOOCHEE TECHNICAL INSTITUTE
Finding Control Number: 827-95-03 REPORTING Incorrect Student Payment Summary Report
The auditors have certified the validity of the awards made by the Institute in accordance with procedures provided in Dear Colleague letter P-97-2 dated June 1997. The Institute will submit its request for Pell Grant adjustments to the U. S. Department of Education no later than September 30, 1998.
Finding Control Number: 827-96-03 REPORTING Incorrect Student Payment Summary Report
The Institute has followed procedures in Dear Colleague letter P-97-2 to have six Pell Grant awards certified by state auditors. These adjustments will be submitted to the U. S. Department of Education no later than September 30, 1998.
Finding Control Number: 827-96-04 ACTIVITIES ALLOWED OR UNALLOWED Award not Properly Calculated
The Institute will establish an accounts receivable in the amount of $484.00 for the Pell Grant overpayment to the student and will begin collection attempts effective October 1, 1998.
Finding Control Number: FS-827-97-03 REVENUESIRECEIV ABLES/RECEIPTS Student Accounts Receivable not Supported by Financial Aid Amount: $17,955.25
Although the number of ineligible student awards has been significantly reduced, the procedures that were established to eliminate this problem were not implemented until the fourth quarter of the year under review. The effectiveness of these procedures will be evaluated during the first quarter of the subsequent year to ensure that financial aid is properly awarded before funds are disbursed.
F-42

L - - - - - - - - - - - State of Georgia - - - - - - - - - - -

L

Auditee's Response Summarv SChedule of Prior Year Rndings and Questioned Costs

For the Fiscal Ycer Ended June 30. 1990

L

L

AUDITEE'S COMMENTS

Finding Control Number: FA-827-97-03 REPORTING Incorrect Student Payment Summary Report Amount: $3,612.00

The Institute has established procedures to ensure correct reporting of Federal Pell Grant Program expenditures before the administrative deadline established by the U. S. Department of Education. The Institute will follow procedures provided in Dear Colleague letter P-97-2 to have the validity of the awards made in the award year 1996-97 certified by the state auditors no later than January 31, 1999. The Institute will submit these adjustments to the U. S. Department of Education in order to receive appropriate adjustments to the FY 97 authorized amounts before June 30, 1999.

COLUMBUS TECHNICAL INSTITUTE

Finding Control Number: FS-828-97-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures

Details of corrective action relating to this control category are explained within Prior Year Federal Awards Finding and Questioned Costs, finding number FA-828-97-01.

Finding Control Number: FA-828-97-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

A complete physical inventory was taken prior to June 30, 1998. However, numerous discrepancies were identified, and we are currently undertaking steps to resolve these before adjusting the PROPS records.

DEKALB TECHNICAL INSTITUTE

Finding Control Number: FS-830-97-01 REVENUES/RECEIV ABLES/RECEIPTS Inadequate Accounting Control Procedures

The subsidiary record disagreement remains from the accounting system in effect at the time of conversion from local governance. A portion of the NSF checks was collected in FY98. The procedure for handling self-reimbursement at the time of the previous audit has changed, but was still in place at the beginning ofFY98.

Finding Control Number: FS-830-97-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Improper Recording of Capital Leases

Copies of all lease agreements have been obtained. However, assets acquired through capital leases have not been added to the equipment inventory records.

F-43

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Auditee's Response Summarv Schedule of Prior Year Findings and Questioned Costs
For the: Fiscal Ycer Ende:d June: 30. 199<3
AUDITEE'S COMMENTS
MIDDLE GEORGIA TECHNICAL INSTITUTE
Finding Control Questioned: 836-95-04 ALLOWABLE COSTS/COSTS PRINCIPLES Time and Attendance Records Not Utilized Job Training Partnership Act (CFDA No. 17.250) Vocational Education - Basic Grants to States (CFDA No. 84.048) Questioned Cost: $13,951.40
During the fiscal years ending June 30, 1996 and 1997, Middle Georgia Technical Institute provided the grantor agencies with time and attendance records that supported the salary charges. We were never contacted about the finding or received any response to our records and corrective action implemented from the U. S. Department of Education.
Finding Control Number: FS-836-97-01 EMPLOYEE COMPENSAnON Salary Overpayment Questioned Cost: $1,224.00
During the year under review, Middle Georgia Technical Institute implemented the procedures necessary to strengthen internal controls to ensure no reoccurrence of this problem. We have made repeated attempts to secure reimbursement of the overpayment; however, the former employee refuses to refund the money, although they acknowledge the overpayment occurred. The Institute is currently in the process of turning the account over to a collection agency in an attempt to secure reimbursement.
MOULTRIE AREA TECHNICAL INSTITUTE
Finding Control Number: 837-96-03 FEDERAL FINANCIAL REPORTS Federal Cash Transaction Report Not Reconciled
The Institute has reconciled the Federal Cash Transactions Report and is seeking resolution through the audit resolution process.
PICKENS TECHNICAL INSTITUTE
Finding Control Number: FS-840-97-01 ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties
Pickens Technical Institute has hired an additional accounting technician to perform cashier and property functions. Our organization chart shows current assignments.
This audit finding is in the process of complete resolution.
F-44

L - - - - - - - - - - - State of Georgia - - - - - - - - - - -

L

Auditee's Response Summarv SChedule of Prior Year Rndings and Questioned Costs

For the Fiscal Year Ended June 30. 1996

L

L AUDITEE'S COMMENTS

Finding Control Number: FS-840-97-02 CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures

Emphasis has been on the reconciliation of the operating account. Currently, there is a $132.06 imbalance that needs resolving. I would like to explore an audit adjustment for FY '97 (or before) outstanding checks and reconciliation adjustments.

The Pell account is reconciled to a $2.00 imbalance which must be resolved in FY '99.

There have been no attempts to reconcile the payroll account to date. Work on payroll reconciliation will occur in FY '99.

There have been procedural changes to improve timely booking of deposits and checks.

This audit finding is partially resolved.

JEKYLL ISLAND STATE PARK AUTHORITY

Finding Control Number: FS-910-97-02 ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties

Additional accounting staff was hired to aid in separation of duties in addition to reorganization of staff duties. Controls continue to be strengthened.

GEORGIA AGRICULTURAL EXPOSITION AUTHORITY

Finding Control Number: FS-926-97-01 ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties

The Management of the Georgia Agricultural Exposition Authority recognizes the importance of the proper segregation of duties as they relate to various financial functions. Our on going objective is to maintain a system of internal accounting controls which would include organizational arrangements that would provide an appropriate division of responsibilities. This system would then provide reasonable assurances that transactions of the Authority are executed in accordance with management's general or specific authorizations, that the financial records fairly reflect, in reasonable detail, the transactions of the Authority, and that the Authority's assets are properly safeguarded. However, due to limitations in personnel, whereby all accounting functions are performed by only two individuals, obviates the Authority from attaining the optimum level of separation of responsibilities. Furthermore, the addition of staff solely to merit an enhanced level of organizational effectiveness, i.e., to allow an improvement in the separation of duties and responsibilities, would not be cost effective nor cost justified, especially during a time of government streamlining, downsizing, and redirection. The Authority will continue to objectively evaluate internal control issues as they relate to the separation of duties, and strive to strengthen areas where deficiencies are found to exist.

F-45

----------- State of Georgia -----------
Auditee's Response Summarv SChedule of Prior Year Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 199B
AUDITEE'S COMMENTS
PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA
Finding Control Number: 947-96-01 BENEFIT EXPENSE Retirement Benefit Overpayments
The remaining outstanding balance of $450.16 is being recovered through deductions from the monthly benefits paid to those individuals involved.
NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8504-97-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, Northwest Georgia Regional Educational Service Agency has decided not to pursue the recording of general fixed assets on the financial statements. We shall continue to review and discuss this with the Northwest Georgia Regional Educational Service Agency Board of Control.
NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8524-97-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
North Georgia Regional Educational Service Agency does not maintain a General Fixed Assets Account Group within the formal accounting records. At this time the Board of Control has determined that it is not cost effective to implement and maintain a General Fixed Assets Account Group.
PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8544-97-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
Due to our limited staff and the additional time to record the fixed assets, our Board of Control has decided not to pursue the recording of fixed assets on our financial statements.
METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8564-97-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
Due to budget constraints we were unable to resolve this finding in fiscal year 1998.
F-46

- - - - - - - - - - - State of Georgia - - - - - - - - - - -

L

Auditee's Response Summarv SChedule of Prior Year Rndings and Questioned Costs

For the Fiscal Ycer Ended June 30, 199B

L

AUDITEE'S COMMENTS
NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8584-97-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.
WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8604-97-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
It was the conclusion of the Board that at the present time we do not plan to address this issue. When the Department of Education provides sufficient guidance and funds to address this issue we will be glad to do so. Until then we will continue to look at how this can perhaps be accomplished and take action as we are able to do so.
OCONEE REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8664-97-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The management of a General Fixed Assets Account Group is not an accessible accounting procedure at the present time due to this function being inoperative in our accounting system that is provided by the State Department. With future upgrades to our system this should be a feasible accounting function that would bring our accounting procedures into conformity with General Accepted Accounting Principles. Date of implementation: Upon receipt of new GDOE accounting software.
CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: 8724-93-01 ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties
Chattahoochee-Flint Regional Educational Service Agency will continue to periodically review staff to determine if employee duties can be reassigned to achieve a higher degree of internal controls.
Finding Control Number: FS-8724-97-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
No efforts are being made at this time to establish a General Fixed Assets Account Group. It is our belief that it is not cost beneficial to do so.

F-47

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Auditee's Response Smmerv SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Elided JUlIe 30. 199B
AUDITEE'S COMMENTS HEART OF GEORGIA SCHOOL SYSTEMS REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8764-97-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.
FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8804-97-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group At present, Georgia Department of Education has not implemented a General Fixed Assets Account Group in our accounting system.
SOUTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: 8844-96-01 EMPLOYEE COMPENSAnON Salary Overpayment Amount: $2,874.10 The Southwest Georgia Regional Educational Service Agency has not been reimbursed this salary overpayment, but procedures are in place to avoid a repeat occurrence.
F-48

I:. L l L
Correcti-ve Action ~ponses
to Current Y'ear ~indlnBs
and Questioned Costs

(This page intenNonal1v left blanR)

L - - - - - - - - - State of Georgia - - - - - - - - -

Corrective Action Responses to Current Year Flf\dings and QuesNoned Costs

L

Table of Contents

For the Fiscal Year Ended June 30. 1995

L ENTITY CODE

L

401

414

415

419

427

440

462

467

472

474

484

503 509 518 521 527 528 533 539 548 550 573 590

820 824 828 830 840 841 918 977

8504 8524 8544 8564 8584 8604 8664 8724 8764 8804

ORGANIZATIONAL UNIT

Administrative Services, Department of

Education, Department of

Technical and Adult Education, Department of

Medical Assistance, Department of

Human Resources, Department of

Labor, Department of

Natural Resources, Department of

Corrections, Department of

Regents of the University System of Georgia, Board of..

:

Revenue, Department of

Transportation, Department of

Colleges and Universities

Georgia Institute of Technology

Georgia State University

University of Georgia

Albany State University

Augusta State University

Clayton College and State University

Fort Valley State University

Georgia Southern University

Savannah State University

Southern Polytechnic State University

Floyd College

:

Georgia Military College

State Technical Institutes

Albany Technical Institute

Augusta Technical Institute

Columbus Technical Institute

DeKalb Technical Institute

Pickens Technical Institute

Savannah Technical Institute

Higher Education Assistance Corporation, Georgia

Public Telecommunications Commission, Georgia

Regional Educational Service Agencies

Northwest Georgia Regional Educational Service Agency

North Georgia Regional Educational Service Agency

Pioneer Regional Educational Service Agency

Metropolitan Regional Educational Service Agency

Northeast Georgia Regional Educational Service Agency

West Georgia Regional Educational Service Agency

Oconee Regional Educational Service Agency

Chattahoochee-Flint Regional Educational Service Agency

Heart of Georgia School Systems Regional Educational Service Agency

First District Regional Educational Service Agency

PAGE NO.
F-52 F-53 F-55 F-55 F-56 F-57 F-59 F-59 F-59 F-59 F-61
F-62 F-64 F-64 F-65 F-65 F-65 F-66 F-72 F-73 F-75 F-75 F-75
F-76 F-76 F-77 F-77 F-78 F-78 F-79 F-80
F-80 F-80 F-81 F-81 F-81 F-81 F-81 F-82 F-82 F-82

F-51

- - - - - - - - - - - State of Georgia - - - - - - - - - - -
Auditee's Corrcdvc Action Plans For the Fiscal Year Ended June 30. 199B
DEPARTMENT OF ADMINISTRATIVE SERVICES
Finding Control Number: FS-401-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Concur. Decentralization of material functions contributed to the untimely posting of additions and deletions to property records. In October of 1998 efforts were begun to centralize material functions into one entity, Materials Management. Material functions include procurement, surplus property disposal, warehousing, receiving, reportable assets and other related inventories. This was an outgrowth of the recommendations made by a review of DOAS business processes. Policies, procedures, and a redefmition of jobs have been drafted to ensure better control and accountability of assets. Some of the measures that have taken place and that will be introduced in the near future are:
Identification of property coordinators within each entity/location by May 15, 1999 Performance criteria will be included on employees' annual reviews beginning August 30, 1999 Coordinators will be trained by June 15, 1999 Full physical inventory completed by August 30, 1999 Monthly inventory sampling will start in September, 1999 Accuracy will be tracked and corrective measures initiated June 1, 1999 (ongoing) Assignment of appropriate staffmg levels to manage assets by June 1, 1999 Encourage certification of Materials Management personnel in property management during FY 2000 Bar-coding of assets and locations - December, 1999 Periodic review of DOAS surplus transfers - ongoing Training and process reengineering on receiving property completed by June 15, 1999 Identification of accountable assets at the initiation of the procurement process, beginning June, 1999
Implementation of the above internal controls will help the Department ensure equipment inventory records are maintained in accordance with the State Property Management System Manual.
Finding Control Number: FS-401-98-02 EXPENDITURESILIABILITIESIDISBURSEMENTS Inadequacies in Internal Accounting Controls for the Risk Management Trust Funds
In addition to the action steps reported last year, on July 1, 1998 DOAS entered into a contract with a new medical cost management company (Corvel Corporation) to provide on-site adjudication of medical bills. Corvel compares multiple data elements including employee's name, social security number, provider name and IRS number as they review provider bills. This assists in detecting and preventing duplicate and overpayments. Corvel processes each item on a bill as a separate payable. This line item comparison has enabled Corvel to identify individual payments that might be duplicates. Corporate Systems (the existing claims processing system) is not equipped to do a line item comparison. Corvel is able to put these possible duplicate payments into a pending file, so the adjuster can go back and analyze the situation.
Corvel has identified a recurring situation with Medical Care Providers. When Risk Management receives a doctor bill, it is paid. In many instances, the hospital where the doctor performed the services sends a duplicate bill for these same services a few months later. Corvel's line item comparison recognizes these duplicates and prevents payment of the second bill. Risk Management has never had this capability before. Better than 46% of the duplicate payments returned during Fiscal Year 1998 were a result of overpayments to medical providers.
To further refme its tracking capabilities, Risk Management will be implementing a new computer system (designed by Delphi Technology, Inc.) on July 1, 1999. This system will assist in reducing duplicate claim related payments and enhancing the routing process as follows:
F-52

L - - - - - - - - - State of Georgia - - - - - - - - -

Auditee's Corrective Action Plans

L

For the Fiscal Year Elided JUlie 30. 199B

L
1. If the payment processor overrides a duplicate flag the claim is automatically routed to supervisor for approval to issue a check.
2. The system will track all payments that were flagged duplicate, and overridden. The supervisor will be able to obtain a report monthly with the name of the payment processor and the number of duplicate warnings overridden by the payment processor.
3. When a payment is entered in the new Delphi system the system will check for potential duplicates. Four areas will be checked - payee, pay type, pay amounts, and dates of service. If all four duplicate edits match, the system will generate a duplicate warning.
4. The new Delphi system will have better defmed data fields for comparison analysis.

Risk Management has also identified some training issues for the adjusters. The department has experienced some adjuster turnover and more training is needed to ensure:

1. Proper handling of payments 2. Proper coding of refund checks, and 3. Proper investigation of vendors that state they have not received their payment

This training/coaching is provided through supervisory monitoring with immediate, case-by-case feedback to employees. All refunds and voids will also be reviewed by accounting to ensure that the correct refund code is being used.

- '~'

Risk Management Accounting had determined that the overpayments identified in the audit were based on incorrect

invoices by vendors. The accounting unit has changed the wording to read "over-bill by vendor", instead of "overpayment

of vendor invoice". This wording change should more clearly state the problem in the future. Risk Management has some

vendors that reassess their charges, once the bill is paid. Sometimes Risk Management benefits from this, and receives a

refund. This is not something that Risk Management can control.

This audit identified a group of payments totaling over $4MM, for which supporting documentation was not immediately available. The majority of these items represent "administrative" expenditures rather than "claims-related" payments and a central filing location was not previously maintained for these types of invoices.

As of January 1999, all documentation for administrative expenditures is being maintained either in the AS400 imaging system or a centralized file in the accounting department. This reorganization was designed to accommodate easy location of all expense-related paperwork.

Finding Control Number: FA-401-98-01 ALLOWABLE COSTS/COST PRINCIPLES Disallowance of Indirect Cost Recoveries Questioned Cost: $785,600.00

DOAS has an on-going contractual relationship with an accounting firm, which develops the State's Cost Allocation Plan. A routine review of work jointly developed by the State Audit Department and DOAS revealed a calculation discrepancy in the method by which equipment depreciation is treated within the State Cost Allocation Plan. This inaccurate calculation resulted in an overstatement of the amount of depreciation reflected in this audit finding. The State Audit Department and DOAS will jointly work to resolve this matter.

DEPARTMENT OF EDUCATION

Finding Control Number: FS-414-98-04 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

We concur with this recommendation. See agency's response to audit control number FA-414-98-01. F-53

- - - - - - - - - State of Georgia - - - - - - - - -
Auditee's Corrective Adion Plans
For the Fiscal Year Ended June 30. 199B
Finding Control Number: FA-414-98-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this recommendation. The following is the FY98 audit fmding in Equipment and Real Property Management for this department.
1. This primarily resulted in equipment paid in Accounting Services and the DE form 0513, Receipt of Equipment form, not received from initiating units until after June 30, 1998, along with changes on the invoices after the receiving report was received in Accounting Services. Also, units failure to follow through with changes on invoices associated with field purchase order to Property Control.
2. Resulted in changes on invoices after the receiving report was received in Accounting Services.
3. Property Control has always taken the fiscal year physical inventory as proper documentation, signed by the unit head, as being correct as of the date. The DE Form 0082 is always completed on equipment that is stolen or damaged, but the term "lost" on the form was misconstrued by the Agency Property Officer as meaning more than just missing. This thing has been reversed and now, fiscal year 1999 physical inventories received with equipment missing, will have a completed DE Form 0082 to support this status by the unit head.
4. Resulted in changes on invoices after the receiving report was received in Accounting Services.
The guidelines for maintaining equipment inventories have been again reviewed with department personnel.
1. Failure by unit to properly account for their inventory whether the item is being moved by an employee of the unit or by Technology Services.
2. A surplus form completed by an agency when equipment is surplused has to be kept on file until the signed surplus form is received from DOAS-State Surplus Property. An item indicated as "stolen" must remain on an agency's inventory for a minimum of2 years as with an item "missing".
3. A unit which fails to properly inventory equipment or inventories completed in a hurry will result in equipment being indicated as "missing". This is a result of poor inventory inspection techniques by the unit.
4. Equipment not controlled properly will result in surprise fmdings of equipment.
The four items located were reconstructed in Property Control as they had been identified on a DOAS Surplus form as being surplused at a prior date.
Contact person: Becky Rowlette, Internal Operations Manager, (404)651-7582
Finding Control Number: FA-414-98-02 SUBRECIPIENT MONITORING Subrecipient Audit Reports Not Received Within the Required Time Period
We concur with this recommendation. Although the Department of Education is responsible for tracking and reviewing the audits of local units of administration (LUAs), the Department of Audits is required by state law to audit the LUAs, because LUAs receive the majority of their funding from the state. In addition to the LUA audits, the Department of Audits has the responsibility to audit all state agencies, commissions, etc. The LUAs are audited after the state agencies, commissions, etc. Because the LUAs are audited last and the large number of LUAs to be audited, the Department of
F-54

L - - - - - - - - - - - State of GeorBia - - - - - - - - - - -

Auditee's Corrective AcHon Plans

L

For the Fiscal Year Ended June 30. 199B

L

L

Audits cannot complete the audits in the time period reqired by OMB Circular A-133. The u.s. Department of Education
is aware of the problem, and realizes there is not currently a viable solution to the finding. The LUA audits are normally

completed within a 15 to 18 month time period. The department has a six-month resolution period to resolve findings in

the LUA audits after being received from the Department of Audits. The Department of Audits has proposed an

alternative approach for providing federal audit coverage of local school systems that should eliminate receiving state

audits after the required time period.

Contact Person: Grant Rowe, Director Accounting Services, (404)656-2497

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

Finding Control Number: FS-415-98-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

See Corrective Action Response at Finding Control Number FA-415-98-01.

Finding Control Number: FA-415-98-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

We concur with this finding. During Fiscal Year 1999, the Department has reviewed existing procedures and internal controls to ensure compliance with State and Federal Laws and Regulations. The following procedures have been implemented:

The responsibility for balancing and maintaining the Inventory System has been re-assigned to the Procurement Unit of the Administration Division. These duties will include a review and resolution of the deficiencies cited in the report.
Two temporary positions have been added to the Procurement Unit to update the current inventory records. A permanent position will be added to the staff to maintain the inventory records.
The Department has set a date of May 31, 1999, for the completion of updating all property inventory records and conducting a physical inventory.

Contact Person: Stephanie Wright, Assistant Commissioner, Office of Administrative Services Telephone: (404)679-1750; E-mail: swright@dtae.org

DEPARTMENT OF MEDICAL ASSISTANCE

Finding Control Number: FS-419-98-01 EXPENDITURESILIABILITIESIDISBURSEMENTS Deficiencies in Operation of Medicaid Claims Processing System

See response to Finding Control Number FA-419-98-01.

Finding Control Number: FA-419-98-01 ALLOWABLE COSTS/COST PRINCIPLES Deficiencies in Operation of Medicaid Claims Processing System Questioned Costs: $1,108,829.50

While the Department concurs with these fmdings, it is important to note that the Department requested the audit through which these fmdings were discovered. The Department has corrected the system edits for the Child and Adolescent Day Treatment, Adult Day Treatment, and MR Waiver Programs. The unallowable claims will be recouped from the
F-55

- - - - - - - - - State of GeorBla - - - - - - - - -
Auditee's Corrective Action Plal1S For the FISCal Year Ended June 30, 199B
Community Service Boards, and a revised agreement with the Department of Human Resources will insure appropriate utilization and documentation of service provision.
Contact Person: Alan Sacks, Director of Financial Reporting and Forecasting (404) 657-7113
Finding Control Number: FA-419-98-02 PROCUREMENT AND SUSPENSION AND DEBARMENT Inadequate Internal Controls and Compliance Deficiencies Medical Assistance Program (CFDA No. 93.778)
We concur with this finding. We have revised our Contract Administration Policies and Procedures to address suspension and debarment from federal procurements. We have checked the federal website at www.arnet.gov/epls and have confirmed that no current DMA contractors have been suspended or debarred from federal procurements. Finally, we have developed a certification to be signed by all DMA contractors to ensure that we remain in compliance with these federal requirements. Copies of the revised policies and the certification are available for review up request.
Contact Person: Alan Sacks, Director of Financial Reporting and Forecasting (404) 657-7113
DEPARTMENT OF HUMAN RESOURCES
Finding Control Number: FS-427-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
See response to FA-427-98-03.
Finding Control Number: FA-427-98-01 ELIGIBILITY Improper Benefit Payments Temporary Assistance to Needy Families (CFDA 93.558) Questioned Cost: $1,668.00
We concur with this fmding. Beginning in May 1998, the move to an on-line computer system was instituted with completion in January 1999. With the implementation of that system, the majority of client information will be contained in an on-line format. This will significantly reduce the need for client files. Information regarding cases and the status and components of eligibility will be available in an on-line format for up to thirteen months.
Several initiatives have been taken in large counties to assist with the location of case files. For example, one county has instituted a file tracking system and is moving to centralized filing so that cases would be checked in and out and monitored. This will significantly reduce the possibility of lost records. Several othet counties have also implemented similar tracking methods.
Contact Person: Peggy Peters, Division Director, Family and Children's Services (404) 657-7660
F-56

of L"1. .".... - - - - - - - - - State G e o r B i a - - - - - - - - -

Audike's Corrective Action Plans

L

For the Rscal Year Ended June 30, 1995

Finding Control Number: FA-427-98-02

ELIGIBILITY

Improper Benefit Payments

f

Child Care and Development Block Grant (CFDA 93.575)

L

Child Care Mandatory and Matching Funds of the Child Care and Development Fund (CFDA 93.596)

Questioned Cost: $2,345.00

We concur with this finding. DHR's Division of Family and Children's Services is in the process of conducting evaluations of the programs in the county offices, reviewing records and providing a report to each county reviewed. A plan is in place to continue monitoring the child care program in county departments throughout the fiscal year. Additionally, several training sessions have been conducted across the state to acquaint staff with child care procedures. In February 1999, all supervisors attended a statewide conference in which these issues were addressed.

Contact Person: Peggy Peters, Division Director, Family and Children's Services (404) 657-7660

Finding Control Number: FA-427-98-03 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

We concur with this finding. DHR has hired an experienced property manager to work with DHR offices and divisions to heighten management oversight and emphasize the importance of maintaining accurate asset records. DHR will be conducting an annual physical inventory at all locations. In addition, in locations that have historically had difficulty in this area, further training is being provided.

As to the specific deficiencies that were noted, the department continues to investigate these instances and has been able to locate some of the items. We continue to update our surplus records, provide decals for all items and to assure that all assets are recorded appropriately in our accounting system.

The State's move to an integrated fmancial system in fiscal year 2000 should also aid in the recording of assets and asset management. With this new system, assets will be recorded in the asset management system as they are ordered.

Contact Person: David Allen, Director, Office of Technology and Support (404) 656-4427

DEPARTMENT OF LABOR

Finding Control Number: FA-440-98-01 ELIGIBILITY Inadequate Documentation to Support Eligibility Determinations Employment and Training Assistance - Dislocated Workers (CFDA 17.246) Job Training Partnership Act (CFDA 17.250) Questioned Costs: $2,091.98

Although the results of the review of JTPA files appear accurate, it is the DOL's opinion the aggregate effect is immaterial to the overall efficiency of the eligibility determination function. Since the responsibility lies with the administrative agent of each Service Delivery Area (SDA), DOL is restricted to a degree in establishing specific controls regarding this function. DOL has in place a monitoring operation that addresses the issue of eligibility at the SDA level. DOL attempts to make every effort to convey eligibility requirements to the SDAs, as well as assist them in compliance.

The retention of all JTPA files is also the responsibility of each SDA's administrative agent. SDA 14 (City of Atlanta) was responsible for locating the missing file and failed to do so. The associated questioned cost with this file will be repaid to
F-57

- - - - - - - - - - State of GeorBia - - - - - - - - - -
Auditee's Corrective Actioll Plens For the Fiscal Ycer Elided June 30. 1995
the cognizant Federal agency by DOL and reimbursement will be sought from the SDA. During the period of the auditor's review, the administrative agent of the SDA (Atlanta Private Industry Council) had recently undergone significant management changes and encountered difficulty in producing the requested information, therefore creating what we consider to be an extenuating circumstance. DOL has made considerable efforts to establish a more efficient working relationship with this SDA to help ensure that all eligibility determination requirements will be met in the future. SDA 16 (Atlanta Regional Commission) was responsible for the file lacking specific criteria. Based upon the DOL's review of internal controls utilized by SDA 16, this was determined to be an isolated incident posing no significant control problems. The DOL will also repay this questioned cost to the cognizant Federal agency and seek reimbursement from the SDA. According to SDA 16 staff, the auditors stated in October, 1998, they would send correspondence with information allowing the SDA to pursue the issue with the service provider. As of March 18, 1999, no correspondence from the auditors has been received by the SDA or DOL.
Contact Person: Doug Peetz, Assistant Commissioner Finance, Budget and Contracts; (404)656-3780
Finding Control Number: FA-440-98-02 ELIGIBILITY Improper Benefit Payments Unemployment Insurance (CFDA 17.225) Questioned Costs: $153.00
Although the results of the review appear accurate, we do not feel this represents a compromise of DOL's internal controls regarding Unemployment Insurance (UI) eligibility determination. We have researched the situation and determined there is no indication of fraud. Furthermore, the amount of time regarding recovery and appeal has expired and the amount is too insignificant to justify the cost of recovery. It should be noted that the UI Division had two functions which review claimant eligibility. The Quality Assurance Section reviews 480 claims annually on a sample basis and the Eligibility Review Program reviews most claims during the first four weeks after the initial determination is made. It is our opinion adequate procedures have been established and are being followed. We attribute this oversight to human error and consider it an isolated incident, as our confidence remains high that UI eligibility is being adequately determined.
Contact Person: Doug Peetz, Assistant Commissioner Finance, Budget and Contracts; (404)656-3780
Finding Control Number: FA-440-98-03 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Unemployment Insurance (CFDA 17.225) Questioned Costs: $1,326.00
Although the results of the review appear accurate, we do not feel this represents a compromise of DOL's internal controls regarding its equipment inventory. The missing item is a computer terminal purchased in 1987 with a purchase price of $1,326.00. We have researched this situation and determined due to the age, estimated current value and nonexistent operational necessity of the item it is not cost beneficial for us to pursue its location. We have also completed the necessary disposal procedures in compliance with 29CFR, part 97.32(e)(l). It is our opinion, adequate internal controls have been established and are in place to materially account for the Department's equipment inventory.
Contact Person: Doug Peetz, Assistant Commissioner Finance, Budget and Contracts; (404)656-3780
F-58

L
L
L L - !
.
L

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corrective Actiorl Plar1S For the Fiscal Year Ended June 30. 199B

DEPARTMENT OF NATURAL RESOURCES

Finding Control Number: FS-462-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

We concur with this finding. Steps have been taken to ensure that all surplused items are removed from the equipment inventory records when the documentation is received and that all inventory items are properly decaled and recorded in the property management system in accordance with the State Property System Manual.

Contact Person: Charles Tye, Office Services Director Telephone: 404-656-7763; Fax: 404-656-2285; E-mail: charles_tye@maild.dnr.state.ga.us

DEPARTMENT OF CORRECTIONS

Finding Control Number: FS-467-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management

No response was received from management.

BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA

Finding Control Number: FS-472-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

We concur with this finding. The missing equipment was a result of personnel in satellite locations not complying with established procedures. The importance of maintaining adequate inventory records and controls has been reemphasized to personnel at the satellite locations.

Contact Person:

Ronald B. Stark, Assistant Vice Chancellor for Internal Audits Telephone: 404-656-5688, Fax: 404-656-4259 E-mail: rstark@mail.regents.peachnet.edu

DEPARTMENT OF REVENUE

Finding Control Number: FS-474-98-02 REVENUES/RECEIVABLES/RECEIPTS Deficiencies in the State Revenue Collections Fund (Overall)

We agree with this finding. Corrective actions for each of the deficiencies of the finding are discussed as follows:

In response to deficiency 1, 2, & 5 a comprehensive study of the Central Accounting Unit has been completed by an outside accounting firm concerning the implementation of a dual-entry accounting system. We are actively working towards the implementation of Peoplesoft to replace our current system. We plan to implement the new system during the fiscal year 2000.

In response to deficiency 3, procedures to notify all responsible Division personnel of known adjustments, in a timely manner, have been put in place. Rejected electronic funds transfers are posted within two day of notification by the bank

F-59

r-
- - - - - - - - - - Stat~ of G~orBia - - - - - - - - - -
Auditee's Corrective Action Plans For the Fiscal Year Ended June 30. 199B

as returned items on the CTA system. NSF and returned checks are similarly posted to the CTA system. Once posted notices are sent to the taxpayer and the original check returned to CTA.

In response to deficiency 4, the Department has established a Loose Check Section to track and process any check that is not attached to the applicable document. Any checks that cannot be identified will be place in a "suspense account" and deposited by Central Accounting. The section will also maintain a copy of the checks and tract their final disposition. In addition, the Internal Administration Division will set up procedures whereby documents with checks that prematurely leave the processing flow will be logged and the log will be monitored. Finally, the entire process will be reviewed periodically by our Internal Audit/Operations Analysis Unit.

In response to deficiency 6, the Department of Revenue recognizes and agrees that proper cut-offs may not be strictly followed in every instance, however, more research is needed in the area to adopt a feasible, and agreeable resolution to the problem.

Contact Person: Telephone: Fax: E-Mail:

Alan Ross, Accounting Director 404-656-4022 404-651-6773 aross@gw.rev.state.ga.us

Finding Control Number: FS-474-98-03 REVENUES/RECEIVABLES/ RECEIPTS Deficiencies in the Income Tax Division Subsidiary Records

In response to audit fmding FS-474-98-03, the Income Tax Division acknowledges the issues presented in the report. The Income Tax Division is working toward the resolution of these audit issues in the rewrites of the withholding and individual systems.

Corrective actions for each of the three deficiencies of the fmding are discussed as follows:

I. The second phase of the withholding processing system is designed with the functionality to interact with the planned rewrite of the individual processing system. The documented employer withholding tax will be systematically compared to the amounts claimed by taxpayers on the individual returns to assist with compliance issues.

The design of the new individual system is currently being developed. The new individual income tax system will include a program to compare the federal income tax master file tape to the Georgia returns file, to reconcile the federal adjusted income claimed on the Georgia return to the federal return.

2. In the redesign of the withholding and individual systems, there will be adequate system controls to track adjustments to ensure that all are processed in a timely manner. The systems will be designed to produce automated aging reports for regular management review to assure that adjustments are made timely.

3. Implementation of Phase 1 of the withholding system relieved the Department from maintaining a handprepared log book. Printouts of the batch listings from the system are now maintained in lieu of the log. Phase II will provide an adequate system of accounting controls to utilize automated procedures to ensure that all batches are processed by the system prior to purging.

Contact Person: Telephone: Fax: E-Mail:

Bobby Goolsby, Income Tax Division Director 404-656-4095 404-657-6856 bgoolsby@gw.rev.state.ga.us

F-60

L - - - - - - - - - - State of GeorfJia - - - - - - - - - -

Auditee's Corrective Action Plans

L

For the Fiscal Year Ended June 30, 199B

L

L

Finding Control Number: FS-474-98-05 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT

Inadequacies in Operation of Property Management System

(l) The Procurement Office has recently hired a Property & Supply Supervisor to take control of all property listed on the Property Management System. This individual is responsible for ensuring that Divisional property is decaled and entered into the Property Management System in a timely manner. Currently all property over 30 days old is entered and decaled. It is anticipated that future purchases of equipment will be decaled and entered within 30 days. Lonita will review monthly reconciliation reports to ensure all equipment that is paid by Central Accounting has been entered into the Property Management System.

(2) The Procurement Office makes every effort to ensure that the year end property reports covering additions and deletions of property are balanced. The Procurement Office personnel believes that the unidentified variance of$34,560.81 is a timing issue and is not a true out of balance condition. If data is entered on these reports after the report is ordered, then this would cause the reports to be out of balance.

(3) Documentation covering additions and deletions of equipment on the Property Management System is maintained by the Procurement Office. Documentation for one (1) item reference by the audit report is in the property file. Documentation for the second item can't be located. Every effort will be made to ensure that documentation for all transactions is properly filed.

The Procurement Office has implemented controls to ensure equipment inventory records are monitored and accurately maintained. Meetings have been held with Property Coordinators, Supervisors and Directors to resolve pending inventory issues and reinforce established internal procedures.

Contact Person: Telephone: Fax: E-Mail:

Robert Hendrix, Procurement & Services Officer, Sr. 404-656-3489 404-651-6772 bhendrix@gw.rev.state.ga.us

DEPARTMENT OF TRANSPORTATION

Finding Control Number: FS-484-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

We concur with this finding. We have developed new procedures, which require the head of each individual office and/or district to personally certify that all equipment is included correctly on the property system, in a timely manner after acquisition.

The Director of General Support Services has taken steps to assure that all assets/property is correctly accounted for, on a regularly scheduled basis. The Asset Management module of Peoplesoft will allow the Department to easily terminate the authority to purchase inventory equipment for any office units that do not comply with the new procedures.

Contact person: Mildred Keigans, Director of General Support Services Telephone: 404-656-5566; Fax: 404-657-0174; e-mail: Mildred.Keigans@dot.state.ga.us

F-61

- - - - - - - - - State of GeorfJia---------
Auditee's Corrective Action Plans
For the Fiscal Year Ended .hnc30, 199B
GEORGIA INSTITUTE OF TECHNOLOGY
Finding Control Number: FA-503-98-01 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Reports Not Issued in a Timely Manner
We concur with this finding and recommendation. Action will be taken no later than December 31, 1999 to identify any new procedures that could help obtain data needed for all required reports in a timely manner. This review will consider the following efforts currently being made to ensure that all required contractual deliverables are submitted to the contracting agencies in a timely fashion:
1. The Office of Contract Administration (OCA) reviews all RFP's and solicitations to identify all contractual deliverable requirements, which are reviewed with the proposed Project Director/Principal Investigator (PD/PI) prior to proposal submission. If needed, this review is completed again, prior to acceptance of a sponsored agreement.
2. As soon as a new sponsored project is received, OCA reviews the agreement and prepares (for the PD/PI) a listing, including the dates that items are due, of all contractually required deliverables. This deliverable schedule is presented to the PD/PI for review, and they are asked to sign-off on a copy of the schedule to indicate concurrence. This record is then retained in the permanent contract file.
3. OCA prepares and distributes for all campus units a monthly report of deliverables due the following month to contracting agencies under all sponsored research projects.
4. During the last year features were implemented to provide a list of all project deliverable information to each PD/PI and all levels of management within a unit via a web-based query tool.
5. OCA also prepares and distributes to all campus units a quarterly report of overdue deliverables for all sponsored research projects. This is a list of all required deliverable items not known by OCA to be satisfied or submitted to the sponsoring agency. The report is copied to members of upper administration, including Deans, School Chairs and Lab/Center Directors.
6. OCA initiates special follow-up action by way of memos directly to PD/Pl's for any deliverable item(s) that are approximately 60 or more days overdue, with special attention given to oldest items.
7. Campus newsletter articles have been issued to emphasize the importance of timely deliverable submission or the need to seek timely relief (extension of due date) from sponsors for required deliverables.
Contact Person: G. Duane Hutchison, Director, Office of Sponsored Programs Telephone: 404-894-4819; Fax: 404-894-7002; E-Mail: duane.hutchison@oca.gatech.edu
Finding Control Number: FA-503-98-02 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Log and Track Required Reports
We concur with this finding and recommendation. Action will be taken no later than December 31, 1999 to identify any new procedures that could help obtain data needed to identify all required reports. The required reports mentioned in this fmding were inadvertently omitted from the deliverable schedules prepared by the Contracting Officers. The deliverable schedules for the specific projects cited have been corrected/revised. The Division Manager responsible for the preparation for deliverable schedules is working with the Contracting Officers to re-emphasize the importance of preparing a complete and accurate listing of all contractually required deliverables.
F-62

L - - - - - - - - - - State of Georgia - - - - - - - - - -

L

Auditee's Corrective Action Plal1S For the FISCal Year Ended June 30, 199B

L

L

Contact Person: G. Duane Hutchison, Director, Office of Sponsored Programs Telephone: 404-894-4819; Fax: 404-894-7002; E-Mail: duane.hutchison@oca.gatech.edu

Finding Control Number: FA-503-98-03 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Log and Track Required Reports

We do not concur with this fmding and recommendation. The Program Progress Report/AOl9 associated with Contract

No. DAAHOI-95-C-A031 (GTRC/GIT Project No. A-9993) was included one time on the deliverable schedule and has

L

been delivered at least once during the term of this contract. The Government Contract requests delivery of these reports on an "AS REQUIRED" basis. Since reports of this nature are connected to scope of work events (technical performance

reviews) where the number of occurrences and the exact dates for delivery are unknown (and can change as the technical

R&D program evolves), it has been OCA's procedure to not attempt to guess at the number and timing of

L

unknown/unscheduled events by listing more than one of these items on deliverable schedules. Action will be taken no

,,

later than December 31, 1999 to clarify open issues concerning this audit fmding.

L-

Contact Person: G. Duane Hutchison, Director, Office of Sponsored Programs

Telephone: 404-894-4819; Fax: 404-894-7002; E-Mail: duane.hutchison@oca.gatech.edu

Finding Control Number: FA-503-98-04 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Log and Track Required Reports

We do not concur with this fmding and recommendation. Action will be taken no later than December 31, 1999 to identify any new procedures that might help obtain information needed to determine all due dates. In the absence of specific contractual due dates for the Scientific and Technical Report Summary/A002 required by Contract No. DASG60-95-C0001 (GTRC/GIT Project No. A-9861), and due to the fact that each of these reports covered a significant (six month) period of time, we called for these semi-annual reports six weeks after the end of each semi-annual period. We believe that the due dates identified for reports of this nature are not inconsistent with other required reports covering lessor periods of time.

Contact Person: G. Duane Hutchison, Director, Office of Sponsored Programs Telephone: 404-894-4819; Fax: 404-894-7002; E-Mail: duane.hutchison@oca.gatech.edu

Finding Control Number: FA-503-98-05 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Report Not Submitted

We do not concur with this fmding and recommendation. Action will be taken no later than December 31, 1999 to identify any new procedures that might help obtain information needed to determine all due dates. The Test Inspection Report/AOOH report associated with Contract No. F09603-95-G0008-0014 (GTRC/GIT Project A-5305) was included twice on the deliverable schedule, once as a "draft" (submitted 4/1/98) and again as a "fmal" (submitted 12/10/98). The Government contract requests delivery of this report after specific aircraft hardware tests are performed. Since reports of this nature are connected to scope of work events (hardware testing) where the number of occurrences and the exact dates for delivery are unknown (and can change as the technical R&D program evolves), it has been OCA's procedure to not attempt to guess at the number and timing of unknown/unscheduled events by listing more than one of these items on deliverable schedules.

Contact Person: G. Duane Hutchison, Director, Office of Sponsored Programs Telephone: 404-894-4819; Fax: 404-894-7002; E-Mail: duane.hutchison@oca.gatech.edu

F-63

- - - - - - - - - State of GeorfJia - - - - - - - - -
Auditee's Corrective Action Plans For the Fiscal Year Ended June 30. 199B
GEORGIA STATE UNIVERSITY
Finding Control Number: FS-509-98-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this fmding. As noted by the auditors, the University has implemented procedures to correct these deficiencies in the internal control system over equipment inventory. The University will continue to evaluate procedures to strengthen internal accounting controls over the equipment inventory process.
Contact Person: Ms. Ronnie K. Laster, Manager, Property Control Accounting Telephone: 404-651-2184; Fax: 404-651-2340; E-mail: fmrkl@langate.gsu.edu
Finding Control Number: FA-509-98-01 REPORTING Incorrect Student Payment Summary Report Student Financial Aid Cluster Program
We concur with this finding. The account has since been reconciled and a request will be made to the federal government for reimbursement for the expenditures actually incurred by the University. In order to correct this problem, programming changes were made to increase the system edits. In addition, a position was created to monitor all data and electronic transmissions sent for Pell payments to ensure accurate reconciliation.
Contact Person: Ms. Gwyndolyn Francis, Director, Student Financial Aid Telephone: 404-651-3631; Fax: 404-651-1419; E-mail: fiaglf@langate.gsu.edu
UNIVERSITY OF GEORGIA
Finding Control Number: FA-518-98-01 REPORTING Technical Reports Not Properly Filed
The University continues to contact faculty members whose reports are delinquent and remind them of proper procedures. The University is developing a computerized follow-up system which should be implemented prior to Fiscal Year 2000.
Finding Control Number: FA-518-98-02 REPORTING Technical Reports Not Properly Filed
The University continues to contact faculty members whose reports are delinquent and remind them of proper procedures. The University is developing a computerized follow-up system which should be implemented prior to Fiscal Year 2000.
Finding Control Number: FA-518-98-03 REPORTING Financial Reports Not Properly Filed
University staff members responsible for preparing fmancial reports have been reminded to carefully review the financial reporting requirements of each project.
F-64

L - - - - - - - - - - - State of GeorfJia - - - - - - - - - - -

L

Auditee's Corrective Action Plans
For the FISCal Year Ended June 30. 199B

L

L ALBANY STATE UNIVERSITY

Finding Control Number: FA-521-98-01

ELIGIBILITY

i ~

Overpayment of Student Financial Aid

Student Financial Aid Cluster Program

Questioned Cost: $19,795.25

We concur with this fmding. Procedures are being developed to improve the financial aid delivery process to ensure that student financial awards are properly reviewed and approved prior to disbursement. The Institution will contact the U.S. Department of Education regarding resolution of these questioned costs.

Contact Person: Kenneth Dyer, Vice President for Fiscal Affairs Telephone: 912-430-4609; FAX: 912-430-2763; E-mail: kendyer@asurams.edu

Finding Control Number: FA-521-98-02 SPECIAL TESTS AND PROVISIONS Deficiencies In Student Financial Aid Refund Process Student Financial Aid Cluster Program Questioned Cost: $2,960.80

We concur with this finding. The Institution will implement procedures to ensure that refunds are correctly calculated and applied to appropriate accounts in a timely manner. Additionally, procedures are being developed to identify "unofficial withdrawals" and ensure that refunds are calculated accordingly. The Institution will contact the U.S. Department of Education regarding resolution of this fmding.

AUGUSTA STATE UNIVERSITY

Finding Control Number: FS-527-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

We concur with this fmding. We have reconciled the accounting records to the physical inventory of the equipment. Appropriate procedures have been implemented to ensure that the accounting records accurately reflect the actual physical inventory.

Contact Person: Angela Olson, Acting Comptroller Telephone: 706-737-1767; Fax: 706-667-4643; E-mail: aolson@aug.edu

CLAYTON COLLEGE AND STATE UNIVERSITY

Finding Control Number: FS-528-98-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

The Institute is currently undertaking an extensive property inventory which should be completed in June of this year. After completion of this project, we are committed to implementing long-term effective property management procedures.

Contact Person: Mr. Duncan Brantley, Director of Procurement Telephone: (770) 961-3603; Fax: (770) 961-3769; E-mail: duncanbrantley@mail.clayton.edu

F-65

- - - - - - - - - State of Georgia - - - - - - - - -
Auditee's Corroffvc Actiof1 Plaf1S For the Rscal Year Ended June 30. 1990
FORT VALLEY STATE UNIVERSITY
Finding Control Number: FA-533-98-01 DAVIS-BACON ACT Failure to Monitor Labor Standards Higher Education - Institutional Aid (CFDA 84.031)
We concur with this finding. Failure to include the specific provisions regarding labor standards of the Davis-Bacon Act in the General Contractor's contract was an oversight. The R & A form has been revised to include a statement that the Davis-Bacon Act labor standards apply and must be included in the contracts of General Contractors and sub-contractors where Federal Funds are involved. This statement will insure that the contract issued includes the Davis-Bacon provisions and compliance is monitored as part of the contract requirements.
Contact Person: Shirley Williams, Vice President for Business and Finance Telephone: (912)825-6400
Finding Control Number: FA-533-98-02 ELIGIBILITY Control Procedures Inadequate Student Financial Aid Cluster Program
We do not concur with several determinations in this finding, as follows:
The Financial Aid Director reviewed the records available to her and did not note any student files that were not complete and organized by the academic year. All basic and required data was present. Additionally, there were no cost of attendance adjustments made that were not properly documented according to those standards imposed by the institution and within prescribed federal law.
The successful management of a student fmancial aid operation of the magnitude at Fort Valley State University requires many points of contact as well as numerous courses of actions. It is not unusual for the Financial Aid office of ANY CAMPUS to lag behind in updating records. Such actions when committed are standard operating procedures.
The determination of what documentation is adequate is the responsibility of the Financial Aid Officer in the exercise of professional judgment, by federal authority granted. Each case of this nature was appropriately documented in the students involved folders.
According to the information received by the Financial Aid Director from the U.S. Department of Education, only the aid officer has the right to exercise professional judgment. This procedures cannot be delegated to an area outside of the department. Such a procedures suggested by the auditors also infringes on recipients rights and violates the Privacy Act.
The Financial Aid Director and staff have no record of students being allowed to work without having signed the work-study contract, which is a departmental procedure, and is not one required by the U.S. Office of Education. Additionally, our records do not indicate any student participated in the Federal Work Study Program without having been awarded such.
The Financial Aid Office follows the procedure of allowing a knowledgeable University official in a department certify their respective student workers in the absence of the regular federal work-study program supervisor. This procedure is considered adequate for the Federal Work Study Program regulations.
F-66

L - - - - - - - - - - State of Georgia - - - - - - - - - -

Auditee's Corrective Action Plans

L

For the Fiscal Year Ended June 30, 1996

L

L

The University has a strict policy for notification to the Financial Aid Office when outside awards occur. We are not aware of, and the auditors did not discover, any over awards situations that occurred due to all resources being

considered.

~J

The Director of Financial Aid has reviewed the University's procedure of projecting time during certain end of the

term periods. A new policy will be put in place that eliminates submitting time sheets before the last day of work is

performed. Better procedures have been put in place to control time sheets for the Federal Work Study (FWS). The

Director of Financial Aid has secured more file cabinets and has designated specific areas for filing these documents.

Contact Person: Janet Huff, Director of Financial Aid Telephone: (912)825-6609

Finding Control Number: FA-533-98-03 ELIGIBILITY Failure to Disburse FSEOG Funds to All PELL Recipients Student Financial Aid Cluster Program Questioned Costs: $27,716.00

WE DO NOT CONCUR WITH THIS FINDING.

An examination of the award and disbursement records of the sixty (60) financial aid files reviewed by the auditors revealed the following:

A. Total number of undergraduate students in the sample = thirty-eight (38)

B. Of the thirty-eight (38), thirty-one (31) were PELL Grant Recipients.

C. Of the thirty-one (31) PELL recipients twelve (12) also received FSEOG awards.

D. Of the remaining seven (7) undergraduate students, none received FSEOG awards.

The federal regulations (34 CFR 676.10) does not stipulate that all PELL Grant recipients are to receive FSEOG funds, nor does it stipulate that non-PELL recipients are precluded from receiving such. The regulations pertain to the priority level in awarding. Additionally, the awarding of FSEOG funds, as well as all other federal aid programs, must be made in accord with established financial need for FSEOG funds. There are many factors that are involved in determining program eligibility, especially where campus based funds are involved. Each case must be viewed on an individual basis, as was done in the awarding process.

The correct procedures were followed in the awarding of FSEOG funds to non-Pell recipients. Our system is computer programmed, with FSEOG awards made automatically to eligible Pell recipients, and is also income level generated to assure that the "most needy" concept is enforced. Accordingly, 87% of FSEOG recipients were Pell recipients, and 13% were non-Pell and determine eligible by the most needy concept.

Contact Person: Janet Huff, Director of Financial Aid Telephone: (912)825-6609

F-67

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corrective Action Plans For the Fiscal Year Ended June 30. 199B
Finding Control Number: FA-533-98-04 ELIGIBILITY Overpayment of Student Financial Aid Student Financial Aid Cluster Program Questioned Cost: $242,589.06
We do not concur with this finding as noted. A review of the records cited in this finding revealed the following:
1. Improper Enrollment Status Cited for seventeen students.
Federal regulations (Authority 20 U.S.c. 1071 et sequ.) defme full-time student status requirements as it pertains to undergraduate students at a minimum standard level. However, a student's work load may include any combination of courses, work, research or special studies that the institution considers sufficient to classify the student as full-time. This particular combination at Fort Valley State University is determined sufficient for graduate students only, who are registered at least Yz (half-time) for credit courses. The graduate curriculum routinely involves course work that is three times the level of research, preparation, internships, practicums, and lab work than the undergraduate curriculum. This allowance for full-time status in the FFELP loan program is within the guidelines as specified in the aforestated regulation.
Of the seventeen students cited, sixteen were graduate students. The only exception was an undergraduate student enrolled full-time the Fall, Winter and Spring Quarters of 1997-98 and Yz (half-time) the Summer of 1998. During the summer period the student received $1833, after having received $3500 during the regular school year. However, his classification changed from sophomore to junior at the end of Fall '97, changing his eligibility from $3500 to $5500 for the school year.
2. Time Frame Violations
The students were cited to have received federal fmancial aid funds while their time frame had been exceeded. An analysis of the transcripts of the three students involved revealed the following:
a. Student #1 Academic Major: Middle Grades Education Program Hrs. Required: 220 Credit Hrs. Earned: 246 Remedial Hrs. Earned: 306 150% of 220 = 330 Determination: Within range - No Violation
b. Student #2 Academic Major: Middle Grades Education Program Hrs. Required: 220 Credit Hrs. Earned: 255 Remedial Hrs. Earned: 50 Total Hrs. = 305 150% of220 = 330 Determination: Within range - No Violation
F-68

L - - - - - - - - - - State of Georgia - - - - - - - - - -

Auditee's Corrective Action Plans

L

For the Rscal Year Ended June 3D, 199B

L L L
r
L~
i
L
~-
L,_
L,
,
'---

c. Student #3 Academic Major: Middle Grades Education Program Hrs. Required: 220 Credit Hrs. Earned: 313 Remedial Hrs. Earned: 10 Total Hrs. = 323 150% of220 = 330 Determination: Within range - No Violation
Transcripts and program requirements were submitted to the auditors to support our claim.
3. Thirteen students' cost of attendance were determined to be adjusted without the necessary documentation or a reasonable explanation for the adjustment.
Our records indicate that appropriate documentation for all COA adjustments were available in the folders for all of the thirteen cases cited. The COAs were conducted in accordance with and by the authority granted of the federal regulations in this regard. Additionally, minimum studards imposed for COA allowances were not present for any of the cases under review, since no student was enrolled less than half-time.
Each case was handled and reviewed on an individual basis. The results from FAO ledgers indicate that COA adjustments were made and so documented for the following reasons.
1. Student #1 - Budget adjustment for increased personal expenses with documentation included.
2. Student #2 - Budget adjusted due to increased senior year educational expenses as well as day care. Documentation present.
3. Student #3 - Budget was adjusted due to 12 months status and increased educational expenses. Documentation present.
4. Student #4 - Budget increased to allow for increased FWS earnings to accommodate exceptional educational expenses in her area of student (Science major). Documentation available in folder.
5. Student #5 - Budget changed due to status change from undergraduate to graduate. Twelve (12) months budget. Documentation was available in folder.
6. Student #6 - Independent student with exceptional personal expenses that if not met, would have hampered her graduation. Budget increased to accommodate these costs as well as adjust her status. Moved from undergraduate to graduate mid year. Documentation was present.
7. Student #7 - Status changed end of Winter '98 from undergraduate to graduate. Twelve (12) months budget and two quarters of student teaching, Fall and Winter = COA adjustment and so documented.
8. Student #8 - Personal and medical expenses documented in folder - graduate student.
9. Student #9 - Twelve (12) months - graduate student - adjustments made to accommodate documented personal, medical and educational expenses.
10. Student #10 - Twelve (12) months - graduate student - adjustments made to accommodate exceptional medical/personal expenses as well as related educational costs. Documentation present.

L-

F-69

- - - - - - - - - State of Georgia - - - - - - - - -
Auditee's Corrective AcNon Plans For the Fiscal Year Ended June 30, 1993
11. Student #11 - Twelve (12) months - graduate student; increased and documented, educational and personal expenses.
12. Student #12 - Twelve (12) months - graduate student - with increased documented educational and personal expenses.
13. Student #13 - graduating senior with increased internship educational expenses and so documented in folder.
4. SAP Violation
Three students were cited to have received funds while in violation of SAP standards. Our review indicates that one student appealed her SAP situation and this appeal was approved. Documentation was available in student's folder.
Our second point is that our satisfactory academic progress defmition does not carry a two quarter probationary period for student fmancial aid. Satisfactory academic progress reviews are made annually at the end of the Spring quarter/semester and at the end of the Summer periods where enrollment has taken place. Probationary aid has been for the last two years, since the 1996-97 school year, periods between the review state.
5. Improper EFC Adjustments
The two students listed for EFC adjustments did not receive such and was not documented as such. Although the authority to do so was well within the rights of the FAO, the only adjustments the students received were to their cost of attendance budgets.
6. We concur in part with Item 6 ofthis finding addressing excess funds received from the federal Work Study Program (FWSP) by two students, totaling $2,632.54 apparently is correct. Therefore, we concede this finding.
7. Remedial Hours Violation
Two students were cited to have received PELL Grant funds with remedial hours beyond the 45 hour limit. A review of the transcripts of the two students involved revealed the following:
Student #1 was disbursed aid of$450 beyond the amount the student was eligible.
On reviewing Student #2's records we determined the following: Began 97-98 with 40 Remedial hours. No remedial hours Fall '97 or Winter '98 Enrolled in 5 hours CPC requirements, Spring '98 = 45 remedial hours. Paid PELL $900 - within limit. Enrolled in 5 hours remedial Summer '98,
No Pell was paid to the student for the remedial hours taken during Summer 1998.
The Financial Aid Director will establish procedures to insure that remedial hours are monitored and payments are made within the limits of the University's policy.
Effective July 1, 1999, a new form will be used by the Office of Personnel for processing Federal Work Study Programs (FWSP) on to the payroll. By December 31, 1999, the University anticipates converting to the PeopleSoft Human Resources/Payroll system. This system has built-in controls which will monitor each payment against the FWSP award.
F-70

---------- State of Georgia ----------

Auditee's Corrective Acnon Plans

L

For the Fiscal Year Ended June 30, 199B

L

Contact Person: Janet Huff, Director of Financial Aid

L

Telephone: (912)825-6609

r

Finding Control Number: FA-533-98-05

L

PERIOD OF AVAILABILITY

Funds Awarded in Excess of Annual Limits

Student Financial Aid Cluster Program

Questioned Costs: $1,350.00

We partially concur with this fmding. There were two students cited for excessive PELL Grant payments. An examination and cross-check of actual payments made to the two students reveal the following:

Student #1 received only $2700 PELL Grant for 1997-98. Due to a computer error when her award for the summer period was made, the system automatically divided her PELL Grant by four, equaling $675 each quarter. However, this error was discovered and the PELL Grant payment was canceled. The student did not receive the excess payment.

We concur with student #2, since she did receive the PELL Grant overpayment, due to the same computer error as that of student #1. However, the mistake was discovered after the $675 disbursement had taken place. Therefore, the student has been placed in a "Program Refund" category for repayment.

The Financial Aid Director has taken steps to correct this problem. The computer application has been modified to process twelve month enrollment awards.

Contact Person: Janet Huff, Director of Financial Aid Telephone: (912)825-6609

Finding Control Number: FA-533-98-06 REPORTING Expenditures in Excess of Authorization Student Financial Aid Cluster Program

We concur with this fmding. The Financial Aid Director will certify the validity of the Federal Pell expenditures of $21,063.00 to the U.S. Department of Education and request that the University be reimbursed.

Contact Person: Janet Huff, Director of Financial Aid Telephone: (912)825-6609

Finding Control Number: FA-533-98-07 REPORTING Inadequate Documentation for Report Student Financial Aid Cluster Program

We concur with this fmding. The Director of Financial Aid will establish a procedure to insure that all information is retained and available for inspection. The information used for completing the Fiscal Operation's and Application to Participation Report is now generated by the University's Banner Financial Aid System to insure its availability.

Contact Person: Janet Huff, Director of Financial Aid Telephone: (912)825-6609

F-71

- - - - - - - - - State of GeorBia - - - - - - - - -
Auditee's Corrective Action Plans For the Fiscal Year Ended June 30. 199B
Finding Control Number: FA-533-98-08 REPORTING Reports Not Reconciled Student Financial Aid Cluster Program
We concur with this finding. A Reconciliation Committee was established in March of 1999 to insure that the required reports identified are reconciled in a timely manner. This committee is composed of the Vice President for Business and Finance, Director of Accounting Services, Director of Financial Aid, Vice President for Student Affairs and staff from each department. The committee meets twice monthly to monitor issues that all federal and state reports reconcile to the accounting records and to resolve any reconciling issues. The U.S. Department of Education has been working with the University and numerous other institutions on completing the reconciliation of the Federal Direct Loan Program. The Department has extended periods to reconcile Federal Direct Loan Program disbursement to the DL Server to June 4, 1999 because of departmental changes in Federal Direct Loan Servers.
Contact Person: Janet Huff, Director of Financial Aid Telephone: (912)825-6609
Finding Control Number: FA-533-98-09 SPECIAL TESTS AND PROVISIONS Entrance and Exit Counseling not Conducted Student Financial Aid Cluster Program
We concur with this finding. The Financial Aid Director has established procedures to insure that fmancial aid counselors monitor compliance with entrance and exit interview requirements. Two graduate assistants have been hired to assist in this effort and conduct the required sessions. Monthly up-date reports on compliance are now required to be submitted in writing to the director by financial aid counselor. These reports will be assessed for accuracy and omissions for the director by the default prevention counselor.
This procedure should provide the necessary check and balance system that will prevent any further noncompliance citations.
Contact Person: Janet Huff, Director of Financial Aid Telephone: (912)825-6609
GEORGIA SOUTHERN UNIVERSITY
Finding Control Number: FS-539-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management
We concur with this fmding. Management is currently reviewing all equipment inventory procedures in order to identify methods of strengthening internal accounting controls designed to ensure that assets are safeguarded against loss from unauthorized use or disposition. Currently, procedural changes identified include an independent review by management of discrepancies identified during physical inventories of equipment assets and procedures for authorizing and recording of equipment dispositions. Procedural changes are to be implemented by July 1, 1999.
Contact Person: Kim Thompson, Controller Telephone: 912-681-5224; Fax: 912-681-0196; E-mail: kthompson@gasou.edu
F-72

L - - - - - - - - - - State of Georgia - - - - - - - - - -

Auditee's Corrective Action Plans

L

For the Fiscal Year Ended June 30. 199B

L

L

Finding Control Number: FA-539-98-01 SPECIAL TESTS AND PROVISIONS

Refunds not Calculated Correctly

Student Financial Assistance Cluster Program

We concur with this finding. Georgia Southern University has implemented procedures to ensure that Federal Student Financial Assistance refunds are calculated according to Federal Regulations 34 CFR 668.22. Changes in procedures include utilizing formulas provided in the Federal Financial Aid Handbook and procedures for calculating refunds for students who unofficially withdraw from school.

Contact Person: Kim Thompson, Controller Telephone: 912-681-5224; Fax: 912-681-0196; E-mail: kthompson@gasou.edu

SAVANNAB STATE UNIVERSITY

Finding Control Number: FA-548-98-01 ALLOWABLE COSTS/COST PRINCIPLES Budget Amendments Not Posted to the Accounting Records Higher Education - Institutional Aid (CFDA 84.031)

We concur with this finding. The University has established a procedure for posting budget amendments timely. Additionally, the Grants and Contract department will review fmancial information monthly to ensure that budget information is accurate.

Finding Control Number: FA-548-98-02 ALLOWABLE COSTS/COST PRINCIPLES Employee Compensation Deficiencies Higher Education - Institutional Aid (CFDA 84.031) Questioned Cost: $16,500.00

We concur with this fmding. The Institution will establish and enforce procedures to ensure that time and effort reports are the basis for salaries charged to the Title III program. Additionally, action will be taken to ensure that all required information is included on the time and effort reports. Procedures will be established to document and communicate to the appropriate personnel that release time has been granted.

Finding Control Number: FA-548-98-03 DAVIS-BACON ACT Payment of Prevailing Wage Rates Not Monitored Higher Education - Institutional Aid (CFDA 84.031)

We concur with this finding. All affected personnel have been made aware of this requirement. A procedure is being established to make sure that locality wage information is secured from the Department of Labor and that a comparison is made to wages paid on the project to ensure compliance with the Davis Bacon Act.

Finding Control Number: FA-548-98-04 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Management System Higher Education - Institutional Aid (CFDA 84.031)

We concur with this finding with the exceptions of items 2 & 4.

F-73

- - - - - - - - - - State of Geopsia - - - - - - - - - -
Auditee's Corrective Action Plans
For the Fiscal Year Ended June 3D, 199B
I) The inventory control system has been revised to include Federal Agency Source code and program titles. Records from July 1996 to the present have been revised to include the aforementioned information. The University will continue in its efforts to revise records prior to July 1996 where possible.
2) Nonoccurrence - Physical inventories are diligently conducted every two years, the last one having been done in June of 1997. A physical inventory is scheduled for this June, 1999.
3) The University is in the process of drafting a procedure manual for Federal equipment disposal.
4) Nonoccurrence - The University has policies and procedures to ensure that Title III equipment purchases are utilized for the Title III program. Additionally, as areas within the University undergo renovations, items are stored in the Central Warehouse until the ordering department is ready to receive them. This practice will continue. The two computers identified in the fmding were being used by the Title III program for which they were intended. To further ensure that items are being used for the purpose for which they were intended, a physical check on a sample of items two times a year will be added to enhance the procedures. The Title III Coordinator will conduct these.
Finding Control Number: FA-548-98-05 PERIOD OF AVAILABILITY Unallowable Expenditures Higher Education - Institutional Aid (CFDA 84.031) Questioned Cost: $41,121.19
We concur with this fmding. Procedures will be established to more diligently monitor grant accounts to ensure that funding is spent within the specified time period and to return any unspent funds to the grantor in a timely fashion.
Finding Control Number: FA-548-98-06 PROCUREMENT AND SUSPENSIONIDEBARMENT Failure to Obtain Suspension/Debarment Certification Higher Education - Institutional Aid (CFDA 84.031)
We concur with this finding. The University is in the process of drafting policies and procedures to ensure compliance. A review of federal contracts revealed no federal contract exceeded the Federal threshold requiring debarment.
Finding Control Number: FA-548-98-07 REPORTING Final Performance Report Prepared with Budget Figures Higher Education - Institutional Aid (CFDA 84.031)
We concur with this fmding. However, this was a deviation from past practices as a result of turnover in personnel. Future reporting will resume the historical practice of reflecting actual expenditures.
F-74

L - - - - - - - - - State of GeorfJia - - - - - - - - -

Auditee's Corrective AcNon Plans

L

For the Fiscal Year Ended June 30, 199B

L

L

SOUTHERN POLYTECHNIC STATE UNIVERSITY

Finding Control Number: FA-550-98-01

REPORTING

.

SPECIAL TESTS AND PROVISIONS

Inadequate Internal Controls and Compliance Deficiencies for FISAP Reporting and Exit Counseling

Student Financial Aid Cluster Program

1) Reporting: We concur with this finding. The Financial Aid and Fiscal Affairs offices will reconcile all federal, state and private scholarship accounts and ensure that the Fiscal Operations and Application to Participate Report is accurately balanced when submitted to the Department of Education.

Currently both offices are not staffed to accomplish this critical task. Therefore, the University will dedicate the human resources necessary in each department to reconcile the FISAP to University accounting records, as well as, provide the require initial and exit counseling of students.

Contact Person: Diann Moffett, Controller Telephone: 770-528-3706; Fax: 770-528-7301; E-mail: dmoffett@spsu.edu

2) Special Tests and Provisions: We concur with this fmding. Efforts in this area have been reviewed and the exit counseling is now being accomplished as required. Additionally, the Information Technology department will write a program that will automatically identify the students that have petitioned to graduate prior to the last term of enrollment. The student's records will automatically be frozen until the exit interview step has been completed. Once the exit interview has taken place, the student's records will be released and the student will be free to register for their final term. The Internal Auditor will verify this action each semester to ensure accomplishment of this process and report his fmdings to the Vice President for Enrollment Management, Vice President for Business and Finance and the President.

Contact Person: Emerelle McNair, Director - Financial Aid Telephone: 770-528-7468; Fax: 770-528-7301; E-mail: emcnair@spsu.edu

FLOYD COLLEGE

Finding Control Number: FS-573-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

We concur with this finding. The college performed a full physical inventory at mid-year. Computer Services has been thoroughly counseled on the importance of maintaining proper documentation when moving or disposing of equipment, and a memo addressing this matter will be circulated throughout the institution.

Contact Person: Karen D. Porter, Comptroller (706)295-6344

GEORGIA MILITARY COLLEGE

Finding Control Number: FS-590-98-09 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System

We concur with this fmding. The Georgia Military College completed a 100% inventory and converted to a new inventory system during FY 1999. Validation inventories will be done during 4th quarter, FY 1999. Inventory updates will be
F-75

- - - - - - - - - State of Georgia - - - - - - - - -
Auditee's Corrective Action Plans For the Fiscal Year Ended June 30, 199B
performed semi-annually beginning FY 2000. The College has not yet identified the funds necessary to obtain outside, professional assistance to properly assess the valuation of the older buildings owned by Georgia Military College.
Contact Person: Ed Madden, Vice President for Business Affairs and Personnel Telephone: 912-445-1468; Fax: 912-445-2688; E-Mail: cmadden@gmc.cc.ga.us
ALBANY TECHNICAL INSTITUTE
Finding Control Number: FS-820-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management
We concur with this fmding. Effective July 1, 1998 a position was placed to handle the Campus inventory including the receipt, accounting for and reconciliation ofthe Property Inventory System. The Accounting Manager and Vice President of Administration have defmed procedures for maintaining the inventory records to eliminate future variances.
Contact Person: Kathy Skates, VP of Administration Telephone: (912) 430-3524; Fax: (912) 430-5115; E-mail: kskates@adminl.albany.tec.ga.us
Contact Person: Karen Thomas, Accounting Manager Telephone: (912) 430-3525; Fax: (912) 430-5115; E-mail: krthomas@adminl.albany.tec.ga.us
AUGUSTA TECHNICAL INSTITUTE
Finding Control Number: FA-824-98-01 ACTIVITIES ALLOWED AND UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $48,930.95
It is the Institutes position that Vocational Education funds were used for allowable activities and did not supplant state and local funds.
The Institute believes that the financial aid services are necessary in order to insure that special populations have an opportunity to enter vocational education that is equal to that afforded to the general student population. Further, the institute's SFA program agreement does not dictate a source of funds for personal services in the Financial Aid Office.
The institute expended funds in accordance with its local application as approved by the Department of Technical and Adult Education. This plan specified the payment of personal services for the financial aid office. Further, the institute did not fund 100% of these salaries from Perkins Funds. The salaries were pro-rated to compensate for other types of programs administered by that office. Additionally, Perkins funds have been used for these positions each year since we have staffed a full-time fmancial aid office.
The Institute is currently in contact with the Department of Technical and Adult Education in an effort to resolve this issue.
Contact Person: Janice Richardson, Vice President of Administrative Services Telephone: (706) 771-4009
F-76

L - - - - - - - - - - State of Georgia - - - - - - - - - -

Auditee's Corrective Action Plans

L

For the Rscal Year Ended June 30. 1993

L

L

COLUMBUS TECHNICAL INSTITUTE

Finding Control Number: FS-828-98-01

L

GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures

We concur with this finding. To insure all equipment is entered in a timely manner the Vice President of Administrative Services, has issued a memorandum to Vice Presidents, Division Chairs, and Administrators requiring all equipment inventory sheets to be completed and returned to the Purchasing Office seventy-two (72) hours after receipt of said sheets.

The Purchasing/PROPS supervisor continues to research the physical inventory difference of less that $200.00.

Contact Person: Clarence Bowen, Vice President of Administrative Services Telephone: (706) 649-1884

DEKALB TECHNICAL INSTITUTE

Finding Control Number: FS-830-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Improper Recording of Capital Leases

We concur with this fmding. Amortization schedules for all assets acquired through capital leases have been provided by the vendor; valuation of the assets in question have been determined and these assets have been added to the inventory by the Director of Facilities and Auxiliary Services.

Contact Person: Larry Wallace; Director of Facilities and Auxiliary Services Telephone: (404) 297-9522

Finding Control Number: FA-830-98-01 ACTIVITIES ALLOWED OR UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $31,480.04

We do not concur with this fmding. The Institute will contact the Georgia Department of Technical and Adult Education in order to resolve this questioned cost.

Contact Person: Scott Thompson, Director of Accounting Telephone: (404) 297-9522

F-77

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corrective Action Plans
For the FISCal Year Ended June 30. 199<5
Finding Control Number: FA-830-98-02 ALLOWABLE COSTS/ COST PRINCIPLES Improper Expenditures for Workplace Literacy Adult Education - State Grant Program (CFDA 84.002) Questioned Costs: $19,416.37
We concur with this fmding. Procedures regarding time record maintenance have been reviewed, and supervisory and clerical personnel responsible for these procedures have been instructed in their application. The Institute will address the resolution of questioned costs with the Georgia Department of Technical and Adult Education.
Contact Person: Scott Thompson, Director of Accounting Mike Richardson, Vice President of Administration
Telephone: (404) 297-9522
PICKENS TECHNICAL INSTITUTE
Finding Control Number: FS-840-98-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures
Management has increased the control over property accounting by hiring an additional employee to do inventories and property accounting. Prior year's purchases have been recorded to PROPS and an inventory is scheduled for either December or January.
Contact Person: Jim Looney, Vice President, Administrative Services Telephone: (706) 692-4500
SAVANNAH TECHNICAL INSTITUTE
Finding Control Number: FA-841-98-01 ACTIVITIES ALLOWED AND UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $21,277.55
We do not concur with this fmding. The Institute will contact the Georgia Department of Technical and Adult Education in order to resolve this questioned cost.
Finding Control Number: FA-841-98-02 ALLOWABLE COSTS/COSTS PRINCIPLES Improper Overtime Payments Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $5,872.00
Savarmah Technical Institute became a State of Georgia Institute on July 1, 1997. As a result, poor training was received by Savarmah Tech employees. Overtime carmot be paid to any state employee unless the Office of Plarming and, Budget approves such action. The Office of Administrative Services understands this policy and plans to adhere to all state regulations and procedures along with the entire staff of Savarmah Technical Institute.
F-78

L - - - ' - - - - - - - - State of GeorfJia - - - - - - - - -

L

Auditee's CorrecNve Action Plans
For the Fiscal Year Ended June 30. 199B

L

Finding Control Number: FA-841-98-03

CASH MANAGEMENT

Excessive Cash Balances

L

Vocational Education - Basic Grant to States (CFDA 84.048)

Savannah Technical Institute is presently using the monthly report 2010 and requisitioning federal funds through our

Department of Technical and Adult Education on an as needed basis. Any payables are reduced from the amount we

requisition so that the cash balances held for federal funds does not exceed the immediate need.

Funds are requested by the Administrative Coordinator to assure a segregation of duties is maintained regarding the drawdown of all grant funds whether it is federal or state funds.

Finding Control Number: FA-841-98-04 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Vocational Education - Basic Grants to States (CFDA 84.048)

After the audit, Savannah Technical Institute began developing inventory procedures to ensure the staff is aware of all steps to maintaining a sound inventory of all equipment. An Operations Clerk was hired to begin the clean-up of deficiencies listed above and others that the Administrative staff uncovered in their efforts to start with a good clean Property Management report. Changes were made in personnel with regards to the receiving department. We added additional steps for the receiving technician to label all inventoriable items before the goods are removed to their permanent site. All data is captured for entry into our Property Management System (PROPS) from receiving and additional information is gathered from the Purchasing Technician and verified by the Accounts Payable Clerk before data is entered in PROPS.

The faculty and staff of Savannah Tech were involved in listing their equipment by room number, label number, coordinator code, and description so we could clarify our beginning inventory. An inventory committee was established and charged with verifying equipment locations at all of our physical sites. This committee verified equipment and labels to ensure an accurate inventory system on PROPS. A copy of our inventory procedures follows to further substantiate our strengthening this process.

GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION

Finding Control Number: FA-918-98-01 REPORTING Report Data Submitted to the NSLDS was Incorrect

The Corporation has received notification from the U.S. Department of Education that the review has been closed based on the actions and assurances provided by the Corporation.

Contact Person: David Benner, Director of Administrative Services Telephone: (770)721-9100; E-mail: davidb@mail.gsfc.state.ga.us
-'

F-79

- - - - - - - - - State of GeorfJ1a - - - - - - - - -
Auditee's Corrective Action Plans
For the Rscal Year Ended June 30, 199B

GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION

Finding Control Number: FS-977- 98-04 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in the Operation of Property Management System

The Commission concurs with this fmding.

An employee has been assigned to work full time to locate the missing engineering equipment noted in the audit report. Initial results indicate that much of the missing equipment was cannibalized for use with other equipment or destroyed as obsolete when the Commission relocated to its present building.

The Director of Administrative Services has taken necessary corrective action to comply with the provisions of the State Property Management System Manual. A Property Coordinator has been appointed in each division; property management procedures have been written; and training sessions for staff have been scheduled.

Contact Person: Telephone:

Mr. Charles Smith, Assistant Director, Administrative Services Division (404)685-2660

NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY

Finding Control Number: FS-8504-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group

We concur with this fmding. Due to current staffmg limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Agency has decided not to pursue the recording of General Fixed Assets on the fmancial statements.

Contact Person: Gail B. Cobb, Financial Officer Telephone: 706-295-6189; Fax: 706-295-6098; E-mail gcobb@roman.net

NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY

Finding Control Number: FS 8524-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group

It is not cost effective for North Georgia RESA to implement the General Fixed Assets Account Group, within its General Ledger, at this time. North Georgia RESA's Board of Control does not currently require this account to be maintained. North Georgia RESA does maintain a listing of equipment with a purchase value greater than $1,000.

Contact Person: Alice Ellis, Accountant, North Georgia RESA, 4731 Old Highway 5 South, Ellijay, GA 30540. Phone (706)276-1111, Fax (706)276-1113, email: aellis@ellijay.com

F-80

L - - - - - - - - - - State of GeorB1a - - - - - - - - - -

L

Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30, 199B

L

L

PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY

Finding Control Number: FS-8544-98-01

GENERAL FIXED ASSETSIPROPERTY MANAGEMENT

Failure to Maintain General Fixed Assets Account Group

Due to our limited staff and the additional time to record the fixed assets, our board of control has decided not to pursue the recording of fixed assets on our Financial Statements.

METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY

Finding Control Number: FS-8564-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group

Metropolitan Regional Educational Service Agency concurs with this fmding. The Georgia Department of Education has not implemented a General Fixed Assets Account Group within the accounting programs provided by them. We will continue to work with the Department of Education to resolve this problem; however, Metro R.E.S.A. does not believe that it would be cost effective for us to implement such a system at this time.

NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY

Finding Control Number: FS-8584-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group

We concur with this fmding. This fmding will be addressed at such time as resources become available to employ sufficient staff to implement it.

Contact: Dr. Raymond Akridge, Director Phone: 706-742-8292; Fax: 706-742-8928; E-mail: rakridge@negaresa.org

WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY

Finding Control Number: FS-8604-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group

West Georgia RESA concurs with this fmding as stated in the FY98 Audit report. However our Board of Control has decided not to account for General Fixed Assets at this time.

OCONEE REGIONAL EDUCATIONAL SERVICE AGENCY

Finding Control Number: FS-8664-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group

We concur with this fmding. The management of a General Fixed Assets Account Group is not an accessible accounting procedure at the present time due to this function being inoperative in our accounting system that is provided and maintained by the GDOE. With future upgrades to our system this should be a feasible accounting function that would bring our accounting procedures in conformity with Generally Accepted Accounting Principles. However, Oconee RESA
F-81

- - - - - - - - - State of Georgia - - - - - - - - -
Auditee's Corrcdivc Arnon Plans
For the Fiscal Year Ended .knc 30. 199B

does have an inventory procedure in place to be accountable for all equipment owned by the Agency which includes date acquired, acquisition cost, location and description.

CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY

Finding Control Number: FS-8724-98-0l GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group

The Chattahoochee-Flint RESA does not believe it to be cost beneficial to establish a General Fixed Assets Account Group at the present time.

HEART OF GEORGIA SCHOOL SYSTEMS REGIONAL EDUCATIONAL SERVICE AGENCY

Finding Control Number: FS-8764-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group

Due to the fmancial limitations and the inability of the current accounting system, the Heart of Georgia RESA is not able to establish accounting controls and procedures to provide for maintenance of the General Fixed Assets Account Group.

Contact Person: June Bradfield, Executive Director Telephone: (912) 374-2240

FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY

Finding Control Number: FS-8804-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group

We concur with this fmding. At present, Georgia Department of Education has not implemented a General Fixed Assets

Account Group in our accounting system. We will work with the Department in resolving this fmding.

.

F-82

-: L..,..
[
r
C_'
APl'emfix ..~'
()raaniegtiotlaf<t!rtits

- - - - - - - - - - - State of GeOf'BiQ - - - - - - - - - - -

l

Usting of Organizational Units Comprising the State of Georgia Reporting Entilv

For the Rscal Year Ended June 30, 1990

L ORGANIZATIONAL UNIT

CONTROL NUMBERS

L'

Administrative Services, Department of

Agricultural Exposition Authority, Georgia

Agriculture, Department of

L

Agrirama Development Authority, Georgia Audits and Accounts, Department of (*)

Aviation Hall of Fame, Georgia

Banking and Finance, Department of

Boxing Commission, State

Building Authority, Georgia

Regular (*)

Hospital (*)

Markets (*)

Penal (*)

Community Affairs, Department of

Correctional Industries Administration, Georgia

Corrections, Department of

Defense, Department of

Development Authority, Georgia (*)

Education, Department of

Education Authority, Georgia

Schools (*)

University (*)

Environmental Facilities Authority, Georgia (*)

Financing and Investment Commission, Georgia State (*)

Forestry Commission, State

Games Commission, State

General Assembly, Georgia (*)

GeorgiaNet Authority

Golf Hall of Fame, Georgia

Governor, Office of the

Higher Education Assistance Corporation, Georgia (*)

Highway Authority, Georgia

Housing and Finance Authority, Georgia (*)

Housing Trust Fund for the Homeless (*)

Human Resources, Department of

Industry, Trade and Tourism, Department of

Insurance, Department of

International and Maritime Trade Center Authority (*)

Investigation, Georgia Bureau of

Jekyll Island State Park Authority

Judicial Branch

Juvenile Justice, Department of

Labor, Department of

Lake Lanier Islands Development Authority

Law, Department of

Lottery Corporation, Georgia (*)

Medical Assistance, Department of

Music Hall of Fame Authority, Georgia

Natural Resources, Department of

401 926 402 940 404 483 406 494
900 903 904 905 428 921 467 411 914 414
906 907 928 409 420 496 445 941 958 422 918 924 923 959 427 429 408 974 471
910
430 461 440
913
442 973 419 929 462

(*) Audits of these organizational units performed by other auditors.
AP-3

- - - - - - - - - State of GeorfJia - - - - - - - - -

Usting of Organizational Units Comprising the State of Georgia Reporting Enmv
For the Fiscal Year Ended June 30, 199B

ORGANIZATIONAL UNIT

CONTROL NUMBERS

North Georgia Mountains Authority

912

Pardons and Paroles, State Board of

465

Pension Funds

District Attorneys Retirement System

946

Employees' Retirement System of Georgia

Regular (*)

416

Defined Contribution Plan (*)

N/A

Legislative Retirement System (*)

N/A

Public School Employees' Retirement System (*)

468

State Employees' Assurance Department (*)

N/A

Trial Judges and Solicitors Retirement System (*)

N/A

Firefighters' Pension Fund

950

Judges of the Probate Court Retirement Fund

949

Peace Officers' Annuity and Benefit Fund of Georgia

947

Sheriffs' Retirement Fund of Georgia

951

Superior Court Clerks' Retirement Fund of Georgia (*)

948

Superior Court Judges Retirement System

945

Teachers' Retirement System of Georgia (*)

482

Personnel Board, State - Merit System of Personnel Administration

460

Ports Authority, Georgia(*)

916

Public Safety, Department of

466

Public Service Commission

470

Public Telecommunications Commission, Georgia

977

Rail Passenger Authority

960

Regents of the University System of Georgia, Board of

472

Colleges and Universities

Research Universities

Georgia Institute of Technology

503

Georgia State University

509

Medical College of Georgia

512

University of Georgia

518

Regional Universities

Georgia Southern University

539

Valdosta State University

551

State Universities

Albany State University

521

Armstrong Atlantic State University

524

Augusta State University

527

Clayton College and State University

528

Columbus State University

530

Fort Valley State University

533

Georgia College and State University

536

Georgia Southwestern State University

542

Kennesaw State University

543

North Georgia College and State University

545

Savannah State University

548

(*) Audits of these organizational units performed by other auditors.
AP-4

L - - - - - - - - - State of Georgia - - - - - - - - -

L

Us~ng of Organiza~onal Units Comprising
the State of Georgia ReporNl1g EI1NIv

For the Fiscal Year Ended June 30, 199B

L ORGANIZATIONAL UNIT

CONTROL NUMBERS

L

Colleges and Universities (continued)

State Universities (continued)

Southern Polytechnic State University

State University of West Georgia

Associate Degree Colleges

Abraham Baldwin Agricultural College

~

?

Atlanta Metropolitan College

~.,

Bainbridge College

Coastal Georgia Community College

Dalton College

Darton College

DeKalb College

East Georgia College

Floyd College

Gainesville College

Gordon College

Macon State College

Middle Georgia College

South Georgia College

Waycross College

Other

f

Georgia Military College

L

Skidaway Institute of Oceanography

Regional Educational Service Agencies

Central Savannah Regional Educational Service Agency

Chattahoochee-Flint Regional Educational Service Agency

Coastal Plains Regional Educational Service Agency

First District Regional Educational Service Agency

Griffm Regional Educational Service Agency

Heart of Georgia School Systems Regional Educational Service Agency

Metropolitan Regional Educational Service Agency

Middle Georgia Regional Educational Service Agency

North Georgia Regional Educational Service Agency

Northeast Georgia Regional Educational Service Agency

I-----

Northwest Georgia Regional Educational Service Agency Oconee Regional Educational Service Agency

Okefenokee Regional Educational Service Agency

Pioneer Regional Educational Service Agency

Southwest Georgia Regional Educational Service Agency

West Georgia Regional Educational Service Agency

Removal of Hazardous Materials, Agency for

Revenue, Department of

Sapelo Island Heritage Authority

Secretary of State

Seed Development Commission, Georgia

Soil and Water Conservation Commission, State

L

Sports Hall of Fame Authority Sports Hall of Fame Board

Stone Mountain Memorial Association (*)

550 554
557 561 562 563 569 570 571
572
573 575 576
581
584 587 589
968 593
8684
8724
8864 8804 8624 8764 8564 8644 8524 8584 8504 8664 8884 8544 8844 8604 497 474 942 478 919 480 944 495
911

(*) Audits of these organizational units performed by other auditors.
AP-5

- - - - - - - - - - State of GeorBia - - - - - - - - - -
Usting of Organizational Units Comprising the State of Georgia Reporting EnNtv
For the FISCal Year Ended June 30, 199B

ORGANIZATIONAL UNIT

CONTROL NUMBERS

Student Finance Authority, Georgia (*)

917

Student Finance Commission, Georgia

476

Subsequent Injury Trust Fund Board of Trustees

489

Superior Court Clerks' Cooperative Authority, Georgia (*)

955

Technical and Adult Education, Department of

415

State Technical Institutes

Atlanta Technical Institute

823

Albany Technical Institute

820

Altamaha Technical Institute

821

Athens Area Technical Institute

822

Augusta Technical Institute

824

East Central Technical Institute

825

Carroll Technical Institute

826

Chattahoochee Technical Institute

827

Columbus Technical Institute

828

Coosa Valley Technical Institute

829

DeKalb Technical Institute

830

Flint River Technical Institute

847

Griffin Technical Institute

831

Heart of Georgia Technical Institute

833

Lanier Technical Institute

834

Macon Technical Institute

835

Middle Georgia Technical Institute

836

Moultrie Area Technical Institute

837

North Georgia Technical Institute

838

North Metro Technical Institute

839

Ogeechee Technical Institute

844

Okefenokee Technical Institute

818

Pickens Technical Institute

840

Sandersville Technical Institute

817

Savannah Technical Institute

841

South Georgia Technical Institute

842

Southeastern Technical Institute

843

Swainsboro Technical Institute

845

Thomas Technical Institute

846

Valdosta Technical Institute

848

Walker Technical Institute

849

West Georgia Technical Institute

819

Tollway Authority, State

927

Transportation, Department of

484

Treasury and Fiscal Services, Office of

486

Veterans Service, State Department of

488

Workers' Compensation, State Board of

490

World Congress Center Authority, George L. Smith II, Georgia

922

(*) Audits of these organizational units performed by other auditors.
AP-6