Single audit report, June 30, 1999

-----State of Geof'gia-----
EIN 58-0973190
Sing[e Audit ~port
3une 30, 1999
Prepared by GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
~se[[ CW'. CHinton, State Audito1"
Georgia's State c:Bira
Cover 'Drawing by Scotti7uss At tlie request of tlie Garden Gubs of GeorgU!. tlie broWn tliraslier was designated b~ tlie ~fature as tlie officiaf state bird in 1970. Cflie tliraslier is commonf~ found in tli~ eastern section of tlie <United States. ranging nortli to Canada and west to tlie ~cfdes. Afmost a foot in fengtli. tlie tliraslier lias a ricli brown cofor on its top side and a cream~ wliile breast Iiea",if~ streaked willi brown.

RUSSELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 29, 2000

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 honored to present the Single Audit Report of the State of Georgia for the fiscal year ended June 30, 1999. For purposes of this report, the State of Georgia reporting entity was defined by applying the criteria set forth in Section 2100 of the Governmental Accounting Standards Board Codification ofGovernmental Accounting and Financial Reporting Standards. Organizational units comprising the State of Georgia reporting entity are listed in Appendix "A" of this report.
Federal laws and regulations require that the State undergo an annual audit in conformity with the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget (OMB) Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Accordingly, 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 financial assistance programs administered by the State.
The Single Audit Report of the State of Georgia is the culmination of extensive planning, coordination, testing and evaluation by many people. I believe that the results of this statewide audit provides the users of this report valuable information that will serve to better guide the course of the State's future.
I would like to express my appreciation to those who made the completion of this audit possible, particularly members of each organizational unit of the State of Georgia and the staff of this office. Your suggestions as to how we may continue to improve our services will always be welcomed.
Respectfully,
w.~d~ ~~--. . . \ ' i R ssell W. Hinton, CPA, CGFM State Auditor

- - - - - - - - - - State of Georgia - - - - - - - - - -
Table of Contmts
JUflC 30. 1999

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 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-I8

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, Investment Trust Fund

and Discretely Presented Component Units

" A-24

Statement ofChanges in Plan Net Assets - Pension Trust Funds Investment Trust Fund

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-87

AUDITOR'S SECTION

SECTION B - REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER ~'INANCIAL 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. D-5

Financial Statement Findings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. D-9

Federal Awards Findings and Questioned Costs

" D-29

- - - - - - - - - State of GeorfJia---------
Table of Contents
June 30, 1999

AUDITEE'S SECTION

SECTION E - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

Schedule ofExpenditures ofFederal Awards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. E-5

Schedule ofCluster Programs

E-45

SECTION F - AUDITEE'S RESPONSES

Summary Schedule ofPrior Year Findings and Questioned Costs

F-5

Corrective Action Responses to Current Year Findings and Questioned Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. F-39

APPENDIX "A" Listing ofOrganizational Units Comprising the State ofGeorgia Reporting Entity

" AP-3

Section A. ,
Gcnera[ 9?urpose g;inancia[ Statements and
~'luired Supp[emcntar~ qnformation

RUSSELL W. HINTON
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 ofthe General Assembly of the State of Georgia
We have audited the accompanying general purpose fmancial statements of the State of Georgia, as listed in the Table of Contents, as of and for the year ended June 30, 1999. These general purpose financial 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 24% of the revenues of the internal service funds, 70% ofthe assets ofthe fiduciary funds and 100% of the pension trust funds revenues, and 5% of the assets and less than 1% ofthe 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 100% of the assets and revenues ofthe component unit governmental fund types, 84% of the assets and 95% of the revenues ofthe component unit proprietary fund types and 98% of the assets and 98% 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 fmancial 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 fmancial statements are free of material misstatement. The financial statements ofthe Employees' Retirement System of Georgia, Georgia Lottery Corporation, Georgia Ports Authority, and Teachers' Retirement System ofGeorgia 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 fmancial 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 fmancial data, by state organization, on a basis of accounting prescribed or permitted by the budgetary statutes and regulations ofthe State of Georgia. Constitutional and statutory provisions ofthe 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 ofAudits and Accounts to consolidate fmancial information presented in individual organization financial statements and to prepare adjustingjournal entries necessary for the production ofthe general purpose financial statements. Weare therefore not independent with regard to the preparation of accounting entries required to convert the consolidated budgetary financial statements to general purpose fmancial statements prepared in accordance with generally accepted accounting principles.
As discussed in Note I 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 I 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 I to the general purpose financial 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 ofthese limitations on the general purpose fmancial statements.
As discussed in Note 1 to the general purpose financial 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 ofthis 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 financial statements.
A-4

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 ofthe State of Georgia as of June 30, 1999, and the results of its operations, the cash flows of its proprietary fund types and its nonexpendabIe 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. 32 of the Governmental Accounting Standards Board, Accounting and Financial Reportingfor Internal Code Section 457, Deferred Compensation Plans, in fiscal year 1999.
In accordance with Government Auditing Standards, we have also issued a report dated February 29,2000 on our consideration of the State of Georgia's internal control over financial reporting and on our tests of its compliance with certain provisions of 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 req)Jired 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 fmancial statements taken as a whole.
The accompanying Schedule of Expenditures of Federal Awards, located in Section E, 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 of the general purpose fmancial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, based on our audit and the reports of other auditors, is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
Respectfully submitted,
~_~4':'
R sell W. Hinton, CPA, CGFM State Auditor
February 29, 2000
A-5

(This page illtmtiollallv left blallR)

- - Genera[ 9?urpose ~inancia[ Statements - - -

Assets and Other Debits
Assets: Cash and Cash Equivalents Cash and Cash Equivalents in Nonexpendable Trust FWlds Investments Receivables (Net ofAllowances for Uncolleet:ibles) Intergovernmental - Federal Interest and Dividends Notes and Loans Taxes Other Due from Other Funds Due from Primary Government Due from Component Units Interftmd Receivables Inventories Prepaid Items Restricted Assets Cash and Cash Equivalents Investments Receivables Interest and Dividends Loans Advances to Other Foods Advances to Component Units Fixed Assets (Net, Where Applicable, ofAccumulated Depreciation) Deferred Charges Other Assets
Other Debits: AmC>lUlt Available in Debt Service Fund Amount to be Provided for Retirement of
General Long-Term Debt
Total Assets and Other Debits
Liabilities, Equity and Other Credits
Liabilities: Cash Overdraft AccoWlts Payable and Other Accruals Compensated Absences Payable Claims and Judgments Payable Contracts Payable SalariesIWithholdings Payable Benefits Payable Due to Other FWlds Due to Primary Government Due to Component Units InterfWld Payables Accrued Interest Payable Undistnbuted Local Government Sales Tax Deferred Revenue Capital Leases/Installment Purchases Payable Mortgage Loans under Repurchase Agreements FWlds Held for Others Other Liabilities Deposits and Overpa~ts Advances from Other FWlds Advances from Primary Government Long-Term Debt Payable (Net of Unamortized DiscoWlts)
Total Liabilities

State of Georgkl---------
Combined Balance Sheet
All FUlld Tvpe.s. AccoUllt Groups And CompOl1mt Units JUlIe 30. 1999

General

Govenunental FlUId Types

Special Revenue

Debt Service

Capital Projects

Primary Government

ProprietaIy Fund Types

EnteIprise

Internal Service

618,282,151 3,490,783,335 2,162,483,774
40,133,037 1,074,450,798
216,603,605
711,326 49,290,958 49,002,128

721,916 2,113,196
1,798,500

212,076,717

1,075,524,082 15,277,924 138,850

1,984,169

28,691,341 149,835,759
892,070 6,950,661

56,412,790 1,100,954,308
7,641,212 17,165,433
269,350 14,546,984
752,860

6,925 53,750
33,092,225

12,647,162

359,988

417,376,675

7,734,894,012 $

4,633,612 $

212,076,717 $

1,105,572,187 $

186,729,819 $

1,615,119,612

994,674,450
1,923,397,586 671,252,247 369,348,188 14,296,095 2,053,033
56,741,145 199,795,948
108,033,388 727,039

23,906 72,131
3,151

4,340,319,119

99,188

17,657,757 30,003,622 20,610,420
247,993

1,767,563 93,444
213,217
218,520,779

25,984,980 8,523,540
431,717,753 15,116,341 13,724
515

86,457 25,875,668

0$

94,481,917

15,490,609 236,085,612

8,871,215
969,978 850,000 492,048,051

The notes to the financial statements are an integral part of this statement. A-8

Fiduciary FWldType
Trust and Agency

College and University

ACCOWlt Groups

General

General

Fixed

Long-Term

Assets

Debt

Totals(Memorandum
Only)
Primary Government

Discretely Presented Component Units

Governmental Food Types

Proprietary Food Types

Fiduciary Food Types

Totals(Memorandum
Only)
Reporting Entity

2,892,966,021 14,786
15,425,303,504
742,670 84,564,664
3,861,269 34,820,564 48,246,673
515

467,182,908
176,383,460
40,520,973 43,804
48,329,791
183,804,046

27,252

27,419,946 12,991,212

4,276,333,844 14,786
21,420,897,644
2,203,747,417 140,911,499 52,191,060
1,109,271,362 465,183,547 17,165,948 0 980,676 1,984,169 91,257,888 62,773,452

37,540

5,058,038,763

3,081,380,737

212,076,717 4,797,623,414

0 0 6,925 12,700,912 8,557,156,163 0 33,129,765
212,076,717
4,797,623,414

671,743 785,080
747,391 178,990 149,189
88,820,882
11,645,754

173,265,128
304,748,198
110,637,913 15,854,884 895,488,483
71,788,050
2,301,031
3,798,947 3,643,696
139,970,653 411,128,817
5,850,155 614,319,550
823,464,442 18,609,856 76,273,105

2,999,299 40,059,079,126
233,871,742 180,456,495
50,093
858,115

4,453,270,014 14,786
61,785,510,048
2,314,385,330 390,638,125 947,679,543
1,109,271,362 718,175,483 17,165,948 2,301,031 980,676 1,984,169 95,235,825 66,616,430
139,970,653 411,128,817
5,850,155 614,319,550
6,925 12,700,912 9,470,299,602 18,609,856 109,402,870
212,076,717
4,809,269,168

18,490,585,458 $

6,014,714,903 $

3,081,380,737 $

5,009,700,131 $ 43,455,407,188 $

102,999,029 $

3,671,142,908 $ 40,477,314,870 $ 87,706,863,995

7,387,643
85,201 27,707 1,146,000

269,268,439 108,029,420
7,268,253 25,300,000
1,651,207

350,777,700 6,925
359,431,176

86,088,036 21,667,956
20,637,488 167,441
2,701,562
326,274
543,106,076

219,453,524 697,979
7,005,857
4,782,542,771 5,009,700,131

17,657,757 1,329,110,603
336,099,928 432,415,732 1,959,422,765 678,561,931 613,168,967
17,165,948 0
2,301,031 0 0
56,741,145 301,464,201 37,545,028
0 479,448,576 26,770,148
3,671,540 6,925 0
4,783,719,045
11,075,271,270

4,788,092 957,023 483,695 144,725 94,239 497,958
10,688,731
17,654,463

84,870,023 3,104,217
2,160,258 599,887
835,951
3,078,687 17,816,746
39,591,047 485,983
12,601,840 279,558,607
12,250,429 15,192,915
12,700,912 1,533,055,245
2,017,902,747

2,368,643 77,257
11,392 2,457,292

17,657,757 1,421,137,361
340,161,168 432,415,732 1,961,583,023 679,722,770 613,168,967
17,165,948 980,676
2,301,031 3,078,687 17,910,985 56,741,145 341,553,206 48,731,134 12,601,840 759,007,183 39,020,577 18,864,455
6,925 12,700,912 6,316,774,290
13,113,285,772
(continued)

A-9

Equity and Other Credits: Other Credits:
Investment in General Fixed Assets
Equity: Net Investment in Plant Colleges and Universities Contnbuted. Capital Retained. Earnings
Reserved Unreserved FWld Balances Reserved for Encwnbrances Reserved for Advances Reserved for Inventories Reserved for Debt Service Reserved for Disaster Assistance Reserved for Distance Learning and Telemedicine Reserved for Pension Benefits Reserved for Guaranteed Revenue Debt Commou Reserve FWld Reserved for Hazardous Waste Trust Fund Reserved for Pool Participants Reserved for Lottery for Education Reserved for Midyear Adjustment Reserved for Motor Fuel Tax FWlds Reserved for Revenue Shortfall Reserved for UndergroWld Storage Trust FlUId Reserved for Year 2000 Project Reserved for Other Specific Purposes Unreserved, Designated Designated for Liability Trust Fund Designated for Property Tax Relief Designated for Future Capital Outlay Designated for Other Specific Pwposes Unreserved, Undesignated Total Equity
Total Equity and Other Credits
Total Liabilities, Equity and Other Credits

State of Georgia - - - - - - - - -
Combined Balance Shed All Fund Tvpcs, Account Groups and Component Units (continued)
June 30. 1999

General

Govenunental FWld Types

Special Revenue

Debt SeIVice

Capital Projects

Primary Government

Proprietary FWld Types

Enterprise

Intemal Service

-$

-$

-$

-$

-$

3,099,338 60,675
46,664,328
11,448,935 18,757,926
17,921,100 19,497,245
318,056,709 126,961,098 790,455,844 380,883,294 55,227,408 98,439,885 251,282,884
10,793,647 83,000,000
70,000 1,161,954,577 3,394,574,893
3,394,574,893
7,734,894,012 $

212,076,717

12,647,162

7,500,000 (56,855,793)

274,766,141
814,226,933 34,078,487

1,399,268

4,534,424 4,534,424
4,534,424

212,076,717 212,076,717

990,700,680
6,343,160 1,011,090,270
1,011,090,270

(49,355,793) $ (49,355,793) $

1,123,071,561 1,123,071,561

4,633,612 $

212,076,717 $

1,105,572,187 $

186,729,819 $

1,615,119,612

The notes to the financial statements are an integral part of this statement. A-1O

Fiduciary FWldType
Trust and Agency

College and University

ACCOWlt Groups

General

General

Fixed

Long-Tenn

Assets

Debt

Totals(Mernorandmn
Only)
PrirnaIy Govenunent

Discretely Presented Component Units

Governmental Fund Types

Proprietary Food Types

Fiduciary Fund Types

Totals(Memorandum
Only)
Reporting Entity

-$

-$

3,081,380,737 $

-$

3,081,380,737 $

88,820,882 $

295,942 $

-$

3,170,497,561

5,036,044,533 435,564,294

12,861,330,461 3,210,462,987

2,030,053,810

29,307,024 18,131,154,282
18,131,154,282

5,471,608,827 5,471,608,827

3,081,380,737

5,036,044,533 435,564,294 274,766,141
821,726,933 (22,777,306)
3,099,338 12,707,837 46,664,328 212,076,717 11,448,935 18,757,926 12,861,330,461 17,921,100 19,497,245 3,210,462,987 318,056,709 126,961,098 790,455,844 380,883,294 55,227,408 98,439,885 2,282,735,962
10,793,647 83,000,000 990,700,680
70,000 1,202,139,185 29,298,755,181
32,380,135,918

1,045,315,463
88,508,579 503,519,935

378,096

13,182,579

90,000
(3,944,412) (3,476,316) $
85,344,566 $

2,417,663 1,652,944,219
1,653,240,161

40,474,857,578
40,474,857,578 40,474,857,578

5,036,044,533 435,564,294
1,320,081,604
910,235,512 480,742,629
3,099,338 12,707,837 46,664,328 212,076,717 11,448,935 18,757,926 53,336,188,039 17,921,100 19,497,245 3,210,462,987 318,056,709 126,961,098 790,455,844 380,883,294 55,227,408 98,439,885 2,296,296,637
10,793,647 83,000,000 990,790,680
70,000 1,200,612,436 71,423,080,662
74,593,578,223

18,490,585,458 $ 6,014,714,903 $ 3,081,380,737 $ 5,009,700,131 $ 43,455,407,188 $

102,999,029 $

3,671,142,908 $

40,477,314,870 $ 87,706,863,995

A-ll

- - - - - - - - - State of Georgia---------
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
All Governmental Fund Tvpes, Expendct>le Trust Funds and Discrdelv Presented Component Units For the Year Ended June 30, 1999

Revenues: Taxes Licenses and Pennits 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
Total Revenues
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 Accrued Interest on Bonds Retired in Advance Discount on Bonds Retired in Advance Other Debt Service Charges
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures

General

Primary Government

Governmental Fund Types

Special

Debt

Revenue

Service

$

12,021,751,940 $

$

397,962,567

5,887,105,616 36,500,529
560,643,597 41,657,448
217,727,473 16,822,584
187,061,598 5,991,314
26,104,874 6,967,921

20,480,185 432,551

$

19,406,297,461 $

20,912,736 $

0

$

740,349,327 $

6,531,830,567

6,786,022,660

1,638,089,933

1,333,092,110

347,537,124

192,199,439

51,118,994

$

17,620,240,154 $

$

1,786,057,307 $

4,144,510 $

4,144,510 $

448,960,000 273,874,752
499,606 (44,223,171)
621,652
679,732,839

16,768,226 $

(679,732,839)

The notes to the financial statements are an integral part of this statement. A-12

Capital Projects

Fiduciary Fund Type Expendable
Trust

Totals (Memorandum
Only) Primary Government

Component Units Governmental Fund Type

Totals (Memorandum
Only) Reporting
Entity

$

$

218,942,856 $ 12,240,694,796 $

$ 12,240,694,796

397,962,567

397,962,567

82,539,650 49,423
241,401

16,529,498 121,422
132,614,451
607,593

5,903,635,114 36,500,529
581,245,204 41,657,448 433,314,125 16,872,007 187,061,598
5,991,314 26,104,874
7,816,915

3,428,339
51,404 106,217 9,891,064

5,903,635,114 36,500,529
584,673,543 41,657,448 433,365,529 16,978,224 196,952,662
5,991,314 26,104,874
7,816,915

$

82,830,474 $

368,815,820 $ 19,878,856,491 $

13,477,024 $ 19,892,333,515

$

36,250 $

$

744,530,087 $

120,836

6,531,951,403

72,166,259

6,858,188,919

1,638,089,933

1,333,092,110

284,493,930

632,031,054

192,199,439

51,118,994

392,319,581

392,319,581

49,423 155,898
2,035,473

449,009,423 274,030,650
499,606 (44,223,171)
2,657,125

$

394,596,625 $

356,781,025 $ 19,055,495,153 $

$

(311,766,151) $

12,034,795 $

823,361,338 $

$ 31,998,361
31,998,361 $

744,530,087 6,531,951,403 6,858,188,919 1,638,089,933 1,333,092,110
632,031,054 224,197,800
51,118,994 392,319,581
449,009,423 274,030,650
499,606 (44,223,171)
2,657,125
19,087,493,514

(18,521,337) $

804,840,001 (continued)

- - - - - - - - - - State of Georgla - - - - - - - - - -
Combined Statement of Revenues. Expenditures and Changes in Fund Balances
All Governmental Fund Tvpes. ExpmdcbleTrust Funds and Discrdelv Presmted Componmt Uruts (cmtinued) For the Year Ended June 30. 1999

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 Proceeds of Refunding Bonds Payment to Refunded Bond Escrow Agent
Total Other Financing Sources (Uses)
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses
Fund Balances, July I Residual Equity Transfers from Component Units Residual Equity Transfers Out Residual Equity Transfers to Component Units Transfer of Equity from Component Units Increase in Inventories
Fund Balances, June 30

General

Primary Government

Governmental Fund Types

Special

Debt

Revenue

Service

$

219,950,173 $

647,234,426 (2,295,427,596)
(51,484,717) 764,395 12,675

$

(1,478,950,644) $

$

657,972,884

(16,500,000)

(16,500,000) $

150,022,153 (149,400,502)
658,594,535

$

307,106,663 $

3,071,938,914 13,877,077

(850,61 I) 633,268 1,869,582

$

3,394,574,893 $

268,226 $ 4,266,198

(21,138,304) 233,215,021

4,534,424 $

212,076,717

The notes to the financial statements are an integral part of this statement. A-14

Capital Projects

Fiduciary Fund Type Expendable
Trust

Totals (Memorandum
Only) Primary Government

Component Units Governmental Fund Type

Totals (Mernorandum
Only) Reporting
Entity

$

$

(280,866,607) 2,900,000
720,607,460

$

442,640,853 $

3,281,250 $

881,204,307 $ 0
647,234,426 (2,592,794,203)
(51,484,717) 3,664,395 12,675
720,607,460 150,022,153 (149,400,502)

3,281,250 $

(390,934,006) $

$ 18,766,640
17,330
18,783,970 $

881,204,307 18,766,640
647,234,426 (2,592,794,203)
(51,484,717) 3,664,395 30,005
720,607,460 150,022,153 (149,400,502)
(372,150,036)

$

130,874,702 $

15,316,045 $

432,427,332 $

912,156,139 516,575 (175,983)
(32,281,163)

2,043,819,407

6,265,395,679 14,393,652 (175,983) (33,131,774) 633,268 1,869,582

$

1,011,090,270 $

2,059,135,452 $

6,681,411,756 $

262,633 $ (3,738,949)

432,689,965
6,261,656,730 14,393,652 (175,983) (33,131,774) 633,268 1,869,582

(3,476,316) $

6,677 ,935,440

A-I5

State of GeorfJi'l---------
Statement of Funds Available and Expenditures Compared to BUdget Budget Fund
For the Fiscal Year Ended June 30, 1999

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)

$ 11,998,603,880 $ 12,672,750,172 $ 12,668,519,468 $

526,700,000

593,433,340

591,983,340

4,729,955,956

5,908,184,582

5,486,157,759

3,157,328,090

5,024,713,115

4,403,298,696

(4,230,704) (1,450,000) (422,026,823) (621,414,419)

$ 20,412,587,926 $ 24,199,081,209 $ 23,149,959,263 $ (1,049,121,946)

2,027,338,871

1,510,179,417

(517,159,454)

$ 20,412,587,926 $ 26,226,420,080 $ 24,660,138,680 $ (1,566,281,400)

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 of the

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, Departmentof

Medical Assistance, Department of

Natural Resources, Department of

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

174,311,537 $ 5,892,155
50,274,692 1,567,745
23,148,583 9,846,715 38,640,591 62,787,779
768,030,469 21,956,332
5,474,737,381
5,256,499 40,649,878 27,801,978 412,050,710 48,074,098
0 2,417,340,849
23,006,380 17,241,858 51,299,927 102,001,900 222,244,354 153,334,941 31,690,201 3,848,556,617 134,731,938 46,794,963
1,253,474,383 124,582,210 17,642,000 11,403,969 29,477,361
2,767,167,445

The notes to the financial statements are an integral part of this statement. A-16

342,023,344 $ 6,635,677
61,977,060 1,649,309
24,756,063 9,864,435
44,406,256 188,707,804 834,810,608 27,508,433 6,022,915,540
10,141,475 47,456,981 30,546,669 562,616,689 361,883,219
0 2,695,740,766
36,480,439 18,160,447 73,836,740 106,318,361 234,071,625 225,296,328 37,016,611 4,348,339,526 219,829,643 48,287,161
1,363,517,646 138,492,493 17,642,000 13,951,618 35,502,001
3,842,375,632

303,954,207 $ 6,635,906
56,684,085 1,309,002
23,725,147 9,709,234
42,322,432 186,064,698 818,498,685 24,667,151 5,910,609,202
9,884,191 46,355,671 24,153,344 562,616,689 245,001,750
0 2,587,282,797
25,448,565 17,810,333 72,279,866 109,002,169 225,526,345 175,017,330 35,964,003 3,844,201,855 211,431,097 47,890,920
1,224,864,732 133,950,581 17,642,000 12,987,099 35,264,617
3,633,845,228

38,069,137 (229)
5,292,975 340,307
1,030,916 155,201
2,083,824 2,643,106 16,311,923 2,841,282 112,306,338
257,284 1,101,310 6,393,325
0 116,881,469
0 108,457,969 11,031,874
350,114 1,556,874 (2,683,808) 8,545,280 50,278,998 1,052,608 504,137,671 8,398,546
396,241
138,652,914 4,541,912 0 964,519 237,384
208,530,404

- - - - - - - - - - State of Georgia - - - - - - - - - -
Statement of FUllds Available and Expenditures Compared to Budget BudgdFund
For the Fiscal Year Ended June 30. 1999

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
Total Expenditures
Excess of Funds Available over Expenditures

Original Appropriation

$

10 I,526,968 $

32,526,981

2,385,717

251,026,535

11,501,170

342,014,134

1,214,776,428

28,117,135

11,694,420

Final Budget
176,814,396 $ 35,212,659
2,663,179 248,658,622
13,339,001 467,512,478 3,208,113,964
29,431,122 11,916,060

Actual

Variance Favorable (Unfavorable)

152,134,714 $ 33,835,619
2,626,592 223,500,545
12,225,778 403,929,900 1,677,945,517
28,784,898 11,724,635

24,679,682 1,377,040 36,587
25,158,077 1,113,223
63,582,578 1,530,168,447
646,224 191,425

$ 20,412,587,926 $ 26,226,420,080 $ 23,229,309,129 $

2,997,110,951

$

1,430,829,551 $

1,430,829,551

The notes to the financial statements are an integral part of this statement. A-17

------------- State of Georgia----------
Combined Statement of Revenues, Expenses and Changes in Fund Equitv/Fund Balances
All Propridarv Fund Tvpes. Nonexpendct>le Trust Funds and Discrddv Presenkd Component Units For the Fiscal Year Ended June 30. 1999

Operating Revenues: Contributions Insurance Recoveries Interest and Other Investment Income Intergovernmental Rents and Royalties Sales and Services Taxes Other
Total Operating Revenues
Operating Expenses: General and Administrative Goods and Services Interest Benefits Claims and Judgments Prizes Scholarships Depreciation Other
Total Operating Expenses
Operating Income (Loss)
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
Total Nonoperating Revenues (Expenses)
The notes to the financial statements are an integral part of this statement.
A-IS

Primary

Proprietary Fund Types

Enterprise

Internal Service

$ 1,106,814,868 $ 11,565,944 3,811
$ 1,118,384,623 $

122,400,893 9,102,782
97,215,751
30,481,660 311,881,726
1,613,159
572,695,971

$

276,923,642 $

165,597,954

184,288,317

993,414,951

15,357,000 158,694,809

1,310,915

$ 1,270,338,593 $

$

(151,953,970) $

525,248,995 47,446,976

$

$

893,734

(47,934)

(11,073)

(30,332,038)

$

(11,073) $

(29,486,238)

Government Fiduciary Fund Type
Nonexpendab1e Trust

Totals (Memorandum
Only) Primary Government

Component Units Proprietary Fund Types

Totals (Memorandum
Only) Reporting
Entity

$

$ 1,229,215,761 $

50,170 $

1,229,265,931

9,102,782

9,102,782

11,955

108,793,650

78,291,922

187,085,572

30,481,660

25,644,011 56,966,844

25,644,011 87,448,504

311 ,885,537

2,126,692,948

2,438,578,485

1,613,159

1,650,694 22,397,677

1,650,694 24,010,836

$

11,955 $ 1,691,092,549 $

2,311,694,266 $

4,002,786,815

$

$

442,521,596 $

132,492,416 $

575,014,012

184,288,317

345,223,864

529,512,181

1,008,771,951

49,377,470

49,377,470 1,008,771,951

158,694,809

158,694,809

2,495

2,495

1,059,585,000

1,059,585,000 2,495

1,310,915

33,850,952

35,161,867

5,174

5,174

47,817,629

47,822,803

$

7,669 $ 1,795,595,257 $

1,668,347,331 $

3,463,942,588

$

4,286 $

(104,502,708) $

643,346,935 $

538,844,227

$

$

$
893,734

1,275,905 $ 25,397,875

1,275,905 26,291,609

(47,934)

970,920 22,533,763 (38,995,211)

970,920 22,533,763 (39,043,145)

(30,343,111)

(2,065,318) 515,037

(2,065,318) (29,828,074)

$

$

(29,497,311) $

9,632,971 $

(19,864,340) (continued)

A-19

- - - - - - - - - State of GeoPBia---------
Combined statement of Revenues, Expenses and
Changes in Fund-Equilv/Fund Balances All ProprietarY Fund Tvpes, Nonexpmdrole Trust Funds and
Discretelv Presmted Componmt Units (continued) For the Fiscal Year Ended June 30. 1999

Net Income (Loss) Before Operating Transfers
Operating Transfers: Transfers In Transfers from Primary Government Transfers Out Transfers to Primary Government
Net Operating Transfers
Net Income (Loss)
Deficiency of Revenues under Expenditures from Governmental Operations and Expendable Trust Funds
Fund 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 to Primary Government Transfer of Equity to Primary Government Increase (Decrease) in Inventories
Fund Equity/Fund Balances, June 30

Primary

Proprietary Fund Types

Enterprise

Internal Service

$

(151,965,043) $

17,960,738

$

32,500,000 $

66,426,569

(19,173,717)

$

32,500,000 $

$

(119,465,043) $

47,252,852 65,213,590

70,109,250

1,057,731,238 175,983

(49,250)

$

(49,355,793) $ 1,123,071,561

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

Government Fiduciary Fund Type
Nonexpendab1e Trust

Totals (Memorandum
Only) Primary Government

Component Units Proprietary Fund Types

Totals (Memorandum
Only) Reporting
Entity

$

4,286 $

(134,000,019) $

652,979,906 $

518,979,887

$

$

98,926,569 $

$

98,926,569

0

47,834,717

47,834,717

(19,173,717)

(19,173,717)

0

(646,905,000)

(646,905,000)

$

0$

79,752,852 $

(599,070,283) $

(519,317,431)

$

4,286 $

(54,247,167) $

53,909,623 $

(337,544)

221,096

0
1,128,061,584 0
175,983 0 0 0 0 0
(49,250)

(1,843,763)
1,568,044,912 (2,406,603)
33,131,774 35,476,425
23,800 (32,903,352)
(633,268) 144,671

(1,843,763)
2,696,106,496 (2,406,603) 175,983 33,131,774 35,476,425 23,800
(32,903,352) (633,268) 95,421

$

225,382 $ 1,073,941,150 $

1,652,944,219 $

2,726,885,369

A-21

State of GeorBia - - - - - - - - -
Combined statement of Cash Flows All ProprietarY Fund Tvpes, Nonexpendeble Trust Funds and
Discretelv Presented Component Un~s For the FISCal Year Ended June 30, 1999

Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Required Contributions Cash Received from Insurance Proceeds Cash Received from Lease Agreements 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 Lonery Prizes Cash Paid for Scholarships Origination ofProgram Loans Governmental and Fiducial)' Fund Type Activity (Net) Other Operating Items (Net)
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Noncapital Financing Activities: Operating Transfers In Operating Transfers from Primary Govenunent Proceeds from Assigrunent of Program Loans Under Repurchase Agreements Issuance ofBondslLoanslNotes Contributed Capital HoteIIMotel Tax (Net) Operating Transfers Out Operating Transfers to Primary Govenunent Principal Paid on Bonds/LoanslNotes Interest Paid on BondslLoanslNotes Return of Contributed Capital Other Debt Service Payments Other Noneapita! Items (Net)
Net Cash Provided by (Used in) Noneapital Financing Activities
Cash Flows from Capital and Related Financing Activities: Issuance ofBondsJLoanslNotes HotellMotei Tax Received Contributed Capita! Sale of Capital Assets Acquisi.tion and Construction ofCapital Assets Principal Paid on BondslLoansfNotes Interest Paid on BondsILoanslNotes 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 of Investments (Net) Interest on Investments
Net Cash Provided by (Used in) Investing Activities
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents, July I
Cash and Cash Equivalents, June 30

Primal)' Government

Proprietary Fund Types

Enterprise

Internal Service

Fiducial)' Fund Type Nonexpendable
Trust

Totals(Memorandum
Only) PrimaI)' Govenunent

Component Units Proprietary Fund Types

Totals(Memorandum
Only) Reponing
Entity

3,811 1,117,071,441

346,232,366 123,046,468
9,102,782

(273,530,177) (2,811,523)
(934,652,490)

(262,219,804) (87,270,378) (15,357,000) (84,270,758)

(93,918,938) $

29,263,676

(5,174) (2,495) (7,669) $

346,236,177 1,240,117,909
9,102,782 0 0 0
(535,755,155) (90,081,901) (950,009,490) (84,270,758) 0 (2,495) 0 0 0

2,260,385,237
12,604,654 111,432,151 76,151,683 (470,535,647) (101,112,270)
(1,076,140,000)
(165,582,534) 1,243,912 868,110

(64,662,931) $

649,315,296

2,606,621,414 1,240,117,909
9,102,782 12,604,654 111,432,151 76,151,683 (1,006,290,802) (191,194,171) (950,009,490) (84,270,758) (1,076,140,000)
(2,495) (165,582,534)
1,243,912 868,110
584,652,365

32,500,000

66,426,569

(19,173,717) 990,757

98,926,569 0
0 0 0 0 (19,173,717) 0 0 0 0 0 990,757

47,834,717
333,935 150,223,731 58,591,332
6,621,407
(646,905,000) (156,095,154)
(51,676,631) (16,711,044)
(2,436,014) 3,715,265

98,926,569 47,834,717
333,935 150,223,731 58,591,332
6,621,407 (19,173,717) (646,905,000) (156,095,154) (51,676,631) (16,711,044)
(2,436,014) 4,706,022

32,500,000 $

48,243,609 $

0$

80,743,609 $

(606,503,456) $

(525,759,847)

(57,441)

175,983
(40,325,223) (242,857) (47,934)

(57,441) $

(40,440,031) $

0 0 175,983 0 (40,382,664) (242,857) (47,934) 0 0

3,000,000 15,521,237 9,967,106
200,000 (45,385,782) (10,766,000) (25,165,757)
(28,091) 3,975,000

3,000,000 15,521,237 10,143,089
200,000 (85,768,446) (11,008,857) (25,213,691)
(28,091) 3,975,000

0

(40,497,472) $

(48,682,287) $

(89,179,759)

73,005,845 13,012,709 86,018,554 24,542,175 4,149,166

(30,417,290) $ 42,479,139 12,061,849 49,129,103
7,283,687

(168,780) $ 5,537
(163,243) $ (170,912) $ 185,698

42,419,775 55,497,385 97,917,160 73,500,366 11,618,551

36,599,220 41,898,552 78,497,772 72,627,325 240,608,456

79,018,995 97,395,937 176,414,932 146,127,691 252,227,007

28,691,341 $

56,412,790 $

14,786 $

85,118,917 $

313,235,781 $

398,354,698

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

State of Georgia - - - - - - - - -
Combil1ed Statemmt of Cash Flows
All ProprietarY Fmd Tvpes, NOf1expendcble Trust Funds-and Discretelv Presented Component Units For the Rscal Year Ended June 30, 1999

Operating Income (Loss)
Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities: Depreciation/Amortization Interest 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 Govenunent Decrease in Due from Component Units Increase in Inventories Increase in Prepaid Items Increase in Other Assets Increase in Accounts Payable and Other Accruals Increase (Decrease) in Compensated Absences Payable Increase in Claims and Judgments Payable Increase (Decrease) in Contracts Payable Increase (Decrease) in SaiarieslWithholdings Payable Increase in Benefits Payable Increase in Due to Other Funds Increase in Due to Primary Government Decrease in Due to Component Units Increase (Decrease) in Deferred Revenue Decrease in Other Liabilities Increase (Decrease) in Deposits.and Overpayments Increase in Grand Prizes Payable
Total Adjustments
Net Cash Provided by (Used in) Operating Activities
Noncash Investing, Capital, and Financing Activities: Acquisition ofFixed Assets through Capital Leases Disposal ofFixed Assets Donation afFixed Assets Interest Earned on Grand Prize Investments and Grand Prizes Payable Gain on Privatization Agreement

Primary Government

Proprietary Fund Types

Enterprise

Internal Service

Fiduciary Fund Type Nonexpendab1e
Trust

(151,953,970)

47,446,976

4,286

Totals(Memorandum
Only) Primary Government

Component Units Proprietary Fund Types

(104,502,708) $

643,346,935

Totals(Memorandwn
Only) Reporting
Entity
538,844,227

(11,565,944)

1,310,915 (97,215,751)

9,279,773
767,136 (142,756)
(42,438) 58,762,461
976,800

3,196,035 724,626
150,480 (2,333,242)
(61,989)
5,449,211 558,802
74,424,051 (3,793,932)
(26,757)
302,250
(138) (73,701)
(794,160)

58,035,032

(18,183,300) $

(93,918,938) $

29,263,676 $

(11,955) (11,955) $

1,310,915 (108,793,650)
0
0 0 0 12,475,808 724,626 0 150,480 (2,333,242) (61,989) 0 6,216,347 416,046 74,424,051 (3,836,370) (26,757) 58,762,461 302,250 0 (138) 903,099 0 (794,160) 0
39,839,777

34,161,967 49,377,470 (17,755,886)
(1,185,661) (248,485)
(54,099,312) (9,109,404)
(384,320)
(127,083) (859,967) (889,409) 1,882,957
85,632
34,844 12,016
88,828
(1,070,739) (654,937) 541,850 6,168,000
5,968,361

35,472,882 (59,416,180) (17,755,886)
(1,185,661) (248,485)
(54,099,312) 3,366,404 724,626 (384,320) 150,480 (2,460,325) (921,956) (889,409) 8,099,304 501,678
74,424,051 (3,801,526)
(14,741) 58,762,461
302,250 88,828 (138)
(167,640r (654,937) (252,310) 6,168,000
45,808,138

(7,669) $

(64,662,931) $

649,315,296 $

584,652,365

(11,073)

2,460,250 (31,322,795)

(11,073) $

(28,862,545) $

2,460,250 (31,333,868)
0

0$

(28,873,618) $

(818,191) 2,188,930
22,235,000 952,697

2,460,250 (32,152,059)
2,188,930
22,235,000 952,697

24,558,436 $

(4,315,182)

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

State of GeorfJia - - - - - - - -
Statements of Plan Net Assets
Pension Trust Funds, Investment Trust Fund and Discrdelv Presented Component Un~s June 30, 1999

ADe"
Cash and Cash Equivalents Investrn:nts Receivables (Net ofAllowances
forUncollectibles) Interest and Dividends Other
Due from Other Funds Prepaid Items Fixed Assets (Net, Where Applicable, of Accumulated Depn!cialion)
TolalAssets
Liabilities
Accounts Payable and Other A.ccruaIs SalarieslWithboldings Payable Due to Other Funds Capital Leases Payable
Total Liabilities
Fund Bllbm~ Reserved for P~nsion Benefiullnd Pool Pllrticipllnu

""finod Contribution
Plm

District Attorneys Retirement
F>md

Ilimriot Attorneys Retirement S"",",

Employees' Rotiremonl
S"",",

Primary Government

G<oq;a Judicilll

Legislative

s e Retirement

Retirenrnt S"",,"

Superior Court Judges Retirement
F>md

SuJ<rio<
CowtJudges Retirement
se

Trial Judges IlDdSolicitors Retirement
F>md

137,000 S 30,173,000
206,000 994,000

1,000 S

3,275,696 S 12,483,929,204

41,087 S 225,765,329

84,352,000 5,845,232
515 18,261

298,584

75,338 S 29,319,662

47,000 1,720,000
\,000

31,510,000

I,DOD S 1,000 S

0S 31,510,000 S

I,aoo S 0s

0 S 12,517,420,908 S

226,105,000 S

29,395,000 S

1,768,000 S

0S

3,654,740 S 27,707
1,120,000
4,802,447 S

21,000 S 21,000 S

11,000 S 26,000
37,000 S

8,000 S 8,000 S

0 S 12,572,618,461 S

226,084,000 S

29,358,000 S

1,760,000 S

0S
-S
0S 0S

(Schooules of funding progress are pwsented on pages A.B9 and A-91)

The notes to the financial statements are an integral part of this statement. A-24

In""""",,, TrosIFund

To,," Prin=y Go",","",,'

Firefighters' Pension Fund

Judgesorthe Probate Courts
Retirement Fund

PeaceOffiCCl'S' Annuity and Benefit Fund

Component Units -Fiduciary Fund Types

Public School Employees Retirement S)"l<m

Sheriffs' Retirement
Fund

Superior Court Clerks' Retirement
Fund

Teacbers' Retirement
System

To,," Componenl
Units

800,840,617 S 2,409,622,370

804,417,738 S 15,180,529,565

5,280 S 349,286,020

3,210,462,987

84,558,000 7,138,816
515 18,261
16,076,662,895 S

2,634,273
323,226 352,248,799 S

6,587 S 38,307,433

1,394,281 S 277,213,080

215,000 S 770,366,000

328,310

1,768,071

3,000

606 38,642,936 S

493,924 280,869,356

770,584,000 S

20,858 44,546,835
377,088
20,620 44,965,401 S

86,483 S 38,299,758

1,270,810 S 38,541,060,000

2,999,299 40,059,079,126

228,764,000 180,453,495
50,093 19,739 38,405,980 S 38,951,598,398

233,871,742 180,456,495
a
50,093
858,115
40,477,314,870

aS

3,695,740 S 27,707
1,146,000
a
4,869,447 S

aS

-S
85
85 S

885 11,392 12,277

304,000 S 304,000 S

-S
aS

35,625 S 35,625 S

2,029,018 S 76,287
2,105,305 S

2,368,643 77,257
a
11,392
2,457.292

3,210,462,987 S 16,071,793,448 S

352,248,799 S

38,642,851 S

280,857,079 S

770,280,000 S

44,965,401 S

38,370,355 S 38,949,493,093 S 40,474,857,578

A-25

Addilionw Contributions Employer and Employee Fines and Forfeits Fines and Bond Forfeitures Interest and Other Investment Income Dividends and Interest Net Appreciation in Fair Value oflnvestmenls Less: Investment Expense Net Gain on Disposal of Investment Securities Pool Participant Deposits Sales and Services Civil Cases Marriage License Fees Real Estate Recording Fees Taxes InSlU'allceCompanies Other Miscellaneous
Total Additions
Deductions: General and Administrntive Expenses Benefits Pool Participant Withdrawals Refunds
Total Deductions
Net Increase Before Opernting Transfers
Operating Transfers: Transfers In Transfers from Primary Government Transfers to Primary Govenunent
Net Operating Transfers
NelIncrease
Fund Balances Reserved for Pension Benefits and Pool Participants, July I
Tnmsler of Equity
Fund Balances Reserved for Pension Benefits and Pool ParticipWlts, JUDI: 3{)

State of Georgia - - - - - - - - -
Statements of Changes in Plan Net Assets Pension Trust Funds,lrwestment Trust Fund and
DiscretelY Presenkd Component Units For the Fiscal Year Ended June 30, 1999

Defined Contribution
PI""

District Attorneys Retiremellt
F~d

District Attorneys Retirement
System

10,420,000 $

161,000

1,115,444 1,058,272
(10,716)

Employees' Retirement
System

Primary Government

Georgia

Judicial

Legislative

Retirement

Retirement

System

System

Superior Court Judges Retirement
F~d

Superior Court Judges Retirement
System

359,405,575

5,134,000

290,000

1.852,000 $

395,337,580 876,286,040
(9,196,620)

7,225,918 16,021,684
(161,602)

1,155,596 2,562,248
(25,844)

54,149 120,062
(1,211)

12,583,000 $ 245,000 $
7,993,000 8,238,000 4,345,000

161,000 $ 161,000
161,000 0$

0$

1,621,832,575

28,220,000

3,982,000 $

2,025,000

0$ 0$

8,079,645 398,391,000
8,810,000 415,280,645 $ 1,206,551,930

3,951,000 65,000
4,016,000 $ 24,204,000

1,023,000 32,000
1,055,000 $ 2,927,000

1,837,000
1,837,000 $ 188,000

673,425

0$ 4,345,O()O $ 27,1 65,O()()
31,51O,()OO $

0$ 0$

0$ 0$

673,425 $ 1,207,225,355 $

0$ 24,204,000 $

0$ 2,927,000 $

31,059,000 (31,059,000)

11,365,393,106

201,880,000

26,431,000

0$

0$

12,572,618,461 $

226,084,000 $

29,358,000 $

0$ 188,000 $

1,572,000

114,690,000 (I 14,690,000)

1,760,000 $

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

Trial Judges and Solicitors
Retirement F=d

Investment Trust Fund

Total
"'"""" Government

Firefighters' Pension F=d

Judgesoflhe Probate Courts
Retirement F=d

Component Units - Fiduciary Fund Types

Public School

Peace Officers'

Employees

Sheriffs'

Annuity and

Retirement

Retirement

Benefit Fund

System

F=d

Superior Court Clerks' Retirement
F=d

Teachers' Retirement
System

Total Component
Units

-$

377,262,575 $

1,620,477 $

160,099,235 (1,374,632)
5,244,530,362

564,987,922 896,048,306 (10,770,625)
0 5,244,530,362

14,042,223 27,215,246

0$

5,403,254,965 $

7,072,058,540 $

12,030,840 157,589
55,066,375 $

189,250 $ 467,426 1,866,978
1,442,534

1,201,471 $ 13,119,175 12,065,925
17,964,573

18,822,000
24,147,637 53,541,406
(540,043)

130,128

7,488 4,103,804 $

138,571 44,489,715 $

95,971,000 $

69,390 $ 2,124,778 1,741,672 4,653,122
70 8,589,032 $

78,112 668,310 3,694,784 (19,875)
290,797 1,546,122
6,258,250 $

1,103,374,426 $ 1,217,663,000 2,700,878,000
(28,614,000)
4,993,301,426

1,125,355,126
16,379,689
1,275,222,219 2,754,419,406
(29,173,918) 51,275,475
0
290,797 130,128 1,546,122
12,030,840
303,718
5,207,779,602

0$ () $
0$ 0$

4,852,238,070 4,852,238,070
551,016,895 $
0$ 551,016,895

8,324,645 $ 405,363,000 4,852,238,070
16,900,000
5,282,825,715 $
1,789,232,825 $
673,425 $ 0 0
673,425
1,789,906,250 $

1,719,814 $ 11,814,344
203,390 13,737,548 $ 41,328,827 $
-$
0$ 41,328,827 $

208,457 $ 1,149,348
1,357,805 2,745,999 $

1,349,220 $ 10,335,898
112,787 11,797,905 32,691,810

575,000 $ 26,620,000
346,000 27,541,000 $ 68,430,000 $

0$ 2,745,999 $

0$ 32,691,810 $

0$ 68,430,000

455,312 $ 2,285,080
2,740,392 $ 5,848,640 $
0$ 5,848,640

84,089 $ 2,294,791
2,634 2,381,514 $ 3,876,736 $

7,802,082 $ 865,191,000
42,911,000 915,904,082 $ 4,077,397,344 $

12,193,974 919,690,461
0 43,575,811
975,460,246
4,232,319,356

0$ 3,876,736

-$
3,650,000 (329,426)
3,320,574 $
4,080,717,918 $

0 3,650,000 (329,426)
3,320,574
4,235,639,930

56,131,000 (56,131,000)

2,659,446,092

14,281,887,198

310,919,972

35,896,852

248,165,269

701,850,000

39,116,761

34,493,619

34,868,775,175

36,239,217,648

0$

3,210,462,987 $

16,071,793,448 $

352,248,799 $

38,642,851 $

280,857,079 I

770,280,000 $

44,965,401 $

38,370,355 $

38,949,493,093 $

40,474,857,578

A-27

- - - - - - - - - - State of Georgia - - - - - - - - - -
Combined statement of Changes in Fund Balances
College and Univcrsilv Funds For the Fiscal Year Ended June 30. 1999

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 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 Non-Capitalized Other Deductions (Net) Disposals/Deletions/Adjustments
Total Expenditures and Other Deductions

Current Funds

Unrestricted

Restricted

Loan Funds

$

1,242,793,536 $

$ 659,936,364 277,337,671
5,691,832 190,493,820
9,279,896 131,407
5,132,484

(125,584) 2,624 3,193
287,822
749,151
980,478

3,304,691

80,083

$

1,246,098,227 $

1,148,083,557 $

$

2,368,499,142 $

1,058,898,649 $

184,438,105

193,373,350

83,706

71,468,417

97,880

367,456 2,265,140
14,999 671,332 284,912

$

2,746,310,597 $

1,130,548,652 $

717,703 1,688,946

The notes to the financial statements are an integral part of this statement. A-28

Endowment and Similar
Funds

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Total (Memorandum
Only)

$

$

$

1,564,841

37,072

2,230,042

36,796,631

$ 301,276

$ 3,199,630

1,242,793,536 661,375,621 277,377,367 5,996,301 233,007,945

994,967

149,000 14,753,214

720,082

10,423,863 16,353,854 5,132,484
980,478

187,150,126

187,150,126

136,784,250 10,447,880
143,548,924

136,784,250 10,447,880
143,548,924

7,709,317 1,144,783

142,208

7,709,317 4,671,765

367,456

$

3,225,009 $

62,154,858 $

1,163,566 $

481,130,810 $ 2,944,121,167

$

$

$

$

$ 3,427,397,791

184,438,105

193,457,056

71,468,417

14,999

671,332

13,140

395,932

95,297

136,784,250 15,139,638

10,447,880 2,670,578

61,700,028

147,232,130 17,810,216 813,000 61,700,028

$

95,297 $

151,937,028 $

13,118,458 $

61,700,028 $ 4,105,399,006

(continued)

A-29

- - - - - - - - - - State of Georgia - - - - - - - - - -
Combined Statement of Changes in FUI1d Balances
College and Universitv Funds (continued) For the Fiscal Year Ended June 30, 1999

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
Fund Balances, June 30

Current Funds

Unrestricted

Restricted

Loan Funds

$

(2,214,722) $

(27,291,756)

$

(29,506,478) $

(603,216) $ (1,715,901)
(2,319,117)$

60,797 25,370
86,167

$ 1,559,963,697 $ (4,458,712)
(18,766,640)

$ 1,536,738,345 $

$

7,019,497 $

100,748,775

$
$
15,215,788 $ 72,074,823


662,361
60,931,674

$

107,768,272 $

87,290,611 $

61,594,035

The notes to the financial statements are an integral part of this statement. A-30

Endowment and Similar
Funds

Unexpended

Plant Funds Renewals and Replacements

Investment in Plant

Total (Memorandum
Only)

$

2,757,141 $

$

$

(2,091,224)

16,318,305

14,755,206

$

0

0

$

665,917 $

16,318,305 $

14,755,206 $

0$

0

$

$

$

0$

$

3,795,629 $

118,961,026

72,766,966 $ 2,109,668
74,876,634 $ 1,412,769 $
17,016,512

782,000 $
782,000 $ 3,582,314 $ 34,143,126

$
0$ 419,430,782 $ 4,616,613,751

1,633,512,663 (2,349,044)
(18,766,640)
1,612,396,979
451,119,140
5,020,489,687

$

122,756,655 $

18,429,281 $

37,725,440 $ 5,036,044,533 $ 5,471,608,827

A-31

State of Georgia - - - - - - - - -
Combined statement of Current Funds Revenues,
Expenditures and Other Changes College and University Funds
For the Rscal Year Ended June 30. 1999

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 of Hospital 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 Staff Housing 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 of Restricted 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)
Net Increase in Fund Balances
The notes to the financial statements are an integral part of this statement.
A-32

Current Funds

Unrestricted

Restricted

Total (Memorandum
Only)

$

554,990,642 $

$

554,990,642

67,047,358

605,722,266

672,769,624

5,489,012

273,224,574

278,713,586

339,063

5,541,462

5,880,525

12,151,148

165,803,159

177,954,307

117,056

3,046,685

3,163,741

63,217,957

5,080,096

68,298,053

185,517,251

185,517,251

222,256,904

222,256,904

131,667,145

131,667,145

$

1,242,793,536 $

1,058,418,242 $

2,301,211,778

$

907,963,785 $

92,829,259 $ 1,000,793,044

256,669,215

240,467,417

497,136,632

152,017,459

67,171,315

219,188,774

233,726,955

8,151,887

241,878,842

119,804,088

4,475,132

124,279,220

398,302,723

34,473,539

432,776,262

209,113,722

61,528

209,175,250

90,901,195

520,874,688

611,775,883

57,146,724 185,063
37,415,178 15,328,411 30,572,927 43,789,802

57,146,724 185,063
37,415,178 15,328,411 30,572,927 43,789,802

193,373,350 2,214,722

83,021,766 7,455,824
603,216

193,373,350 83,021,766
7,455,824 2,817,938

$

2,748,525,319 $

1,059,585,571 $

3,808,110,890

$

$

(27,291,756)

3,304,691

1,559,963,697 (4,458,712)
(18,766,640)

$

1,512,751,280 $

$

7,019,497 $

18,116,815 $ (1,715,901)
(17,797)
16,383,117 $

18,116,815 (29,007,657)
3,286,894
1,559,963,697 (4,458,712)
(18,766,640)
1,529,134,397

15,215,788 $

22,235,285

State of Georgia
Notes to the Rl1al1cial Statemmts
IrIdex
Note 1 Summary of Significant Accounting Policies Note 2 Other Accounting Disclosures Note 3 Budgetary Accounting Note 4 Deposits and Investments Note 5 Receivables Note 6 Fixed Assets Note 7 Risk Management Note 8 Construction and Other Significant Commitments Note 9 Operating Leases Note 10 Capital Leases and Installment Purchases Note 11 Long-Term Debt Note 12 Interfund Balances Note 13 Contributed Capital Note 14 Contingencies Note 15 Subsequent Events Note 16 Retirement Systems Note 17 Nonmonetary Transactions Note 18 Postemployment Benefits Note 19 Fund Deficits Note 20 Major Discretely Presented Component Unit Condensed Financial Statements

Page A-35 A-46 A-47 A-50 A-57 A-59 A-6l A-62 A-62 A-64 A-65 A-69 A-7l A-72 A-73 A-74 A-80 A-8l A-8l A-82

A-33

(This page intentionallv left blank)

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Rnmcial statements
JUlIe 30, 1999

Note 1. Summary of Significant Accounting Policies

government. In addition, organizations which are fiscally dependent upon the primary government were considered as potential component units.

With the exception of the departures from generally accepted accounting principles (GAAP) disclosed in the following paragraphs, the financial statements ofthe State of Georgia 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 financial reporting principles. The financial 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 define the government for financial 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 financial reporting purposes, considered part of the primary government. In addition, included within the primary government are organizations which 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 ofGovernmental Accounting and Financial Reporting Standards. This Section defines a component unit as a legally separate organization for which the primary government is financially 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 financial statements to be misleading or incomplete.

As required by GAAP, these fmancial statements present the government and its component units, entities for which the government is considered to be financially accountable. Complete financial statements for each of the individual component units may be obtained from the Georgia Department of Audits and Accounts. 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 offarmers' 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 consists of four State officials designated by statute and one member appointed by the Governor.

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 financial benefits or impose specific financial burdens on the primary

Georgia Education Authority (University) (Capital Projects Fund) is a body corporate and politic. The authority is charged with the overall responsibility of the construction and management of housing accommodations, classrooms, laboratories, libraries, dormitories and instructional,

A-35

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Financial Statements June: 30, 1999

Note 1. Summary of Significant. Accounting Policies (continued)
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.
Georgia Correctional Industries Administration (Internal Service Fund) 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 of Georgia (Pension Trust Fund) is a single-employer, public employee retirement system established to 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 five blended defined benefit pension plans: the Employees' Retirement System Fund, the District Attorneys' Retirement Fund, the Georgia Judicial Retirement System, the Legislative Retirement System, and the Superior Court Judges Retirement Fund. The State provides a substantial amount offunding 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 of the State. The Board consists ofthe mayor of the 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 financial data in columns separate from the financial 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 ofbuildings 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 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.

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Notes to the Fil1al1dal Statemmts Jmc: 30. 1999

Note 1. Summary of Significant Accounting Policies (continued)
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 of Commissioners of the 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 finance, and financing 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 (Proprietary Fund Type) is a body corporate and politic. The authority was created to develop and promote the growth of the 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 ofwhich are utilized to support improvements and enhancements for educational purposes. The corporation is governed by a board of directors composed of seven members, all of which 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 sixteen 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, dev:elop and improve said harbors, seaports and their facilities. The Board consists of nine members, all of which are appointed by the Governor.
Georgia Rail Passenger Authority (Proprietary Fund Type) is a body corporate and politic. This authority is responsible for construction, financing, 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.
Georgia Seed Development Commission (Proprietary Fund 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. Of the ten members serving on the Board, six members are State officials or are appointed by State officials.
Georgia Student Finance Authority (Proprietary 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 of fifteen 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 (Proprietary Fund 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 Wodd Congress Center to promote trade shows, conventions and political, musical, educational, entertainment, recreational, athletic or other events. The fifteen members of the Board are appointed by the Governor.
Georgia Sports Hall ofFame Authority (Proprietary Fund Type) is a body corporate and politic. This authority was created to construct and maintain a facility to house the Georgia Sports Hall of Fame to honor those who have made outstanding and lasting contributions to sports and athletics, and to operate, advertise and promote the Sports Hall of Fame. The fifteen members of the Board are appointed by State officials. The issuance of bonds must be approved by the Georgia State Financing and Investment Commission.

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Notes to the Finmcial statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
Jekyll Island State Park Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The authority was created to operate and manage resort recreational facilities on Jekyll Island. The Board consists of one State official designated by statute and eight members appointed ~y the Governor.
Lake Lanier Islands Development Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State. The purpose of the authority is to manage, preserve and protect projects on Lake Lanier Islands. The Board consists of one State official designated by statute and eight members appointed by the Governor.
North Georgia Mountail}s 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 of recreation, 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 ofHog 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 financial 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.
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 Mountain as a Confederate memorial and public recreational area. The Board consists of one State official designated by statute and eight members appointed by the Governor.
Superior Court Clerks' Cooperative Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State created to provide a cooperative for the development, acquisition and distribution ofrecord management systems, information,

services, supplies and materials for superior court clerks of the State. Of the seven members of the Board, three are appointed by the Governor. The nature of this organization is such that it would be misleading to exclude it from the reporting entity.
Georgia Firefighiers' Pension Fund (Fiduciary Fund Type) is a multiple-employer, defined benefit pension plan established for the purpose ofpaying retirement, death and disability benefits to the firemen of the State of Georgia. The Board of Trustees consists of two State officials designated by statute and three members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Judges ofthe Probate Courts Retirement Fund ofGeorgia (Fiduciary Fund Type) is a multiple-employer, defined benefit pension plan established for the purpose of paying retirement, death and disability benefits to the judges of the Probate Courts 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.
Peace Officers' Annuity and Benefit Fund of Georgia (Fiduciary Fund Type) is a multiple-employer, defined benefit pension plan established for the purpose of paying retirement, death and disability benefits to the peace officers ofthe 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, defined benefit pension plan established for the purpose of providing retirement 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, defined 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, defined

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Notes to the Financial Statements
June 30. 1999

Note 1. Summary of Significant Accounting Policies (continued)
benefit pension plan established for the purpose of paying retirement, death and disability benefits to the Superior Court Clerks of the State ofGeorgia. 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 ofGeorgia (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 financial 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 generallong-tenn 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 long7term 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 conspuction 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 financial administration.
Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed 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 financed 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 financing of goods or services provided by

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Notes to the Financial Statements
JUlIe 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
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 1, which is administered by the Office of Treasury and Fiscal Services. Georgia Fund 1 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 institutional property 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.
Discretely Presented Component Units - The financial statements ofthe component units, other than the component units which financial statements were blended with the financial statements of the primary government due to their relationship with the primary government, are presented in separate columns. The three columns presented reflect financial 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 financial 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.

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Notes to the Fillar\cial Statements
June 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
C. Basis of Accounting
The accounting and financial 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 financial 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 financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets.
All proprietary funds, nonexpendable trust funds, pension trust funds and investment trust funds are accounted for on a flow of economic resources measurement 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 expenditure-driven 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 ofyear-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 of the 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 financial statements.
As permitted by generally accepted accounting principles for colleges and universities, no depreciation is provided for the physical properties.
D. Budgets
The annual budget of the 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 administrative 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.

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Notes to the Financial statements June: 30, 1999

Note 1. Summary of Significant Accounting Policies (continued)
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, 1999, to the excess (deficiency) 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 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 defined as those financial 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 ofthe 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 expenditures (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 revenues 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 of Treasury and Fiscal Services for the purpose of pooled investment (OCGA 50-17-63). Such cash is managed in pooled investment funds to maximize interest earnings. The pooled investment fund "Georgia Fund 1" is also available on a voluntary basis to organizations outside of the State reporting entity.

Authorized pool investments are limited to the following in accordance with State statutes:
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; 7) Obligations of other political subdivisions of the State; and 8) Commercial paper issued by domestic corporations.
Pooled cash and cash equivalents and investments are grouped into portfolios for investment purposes according to the operating needs of the 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 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. Investments are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements.
The Secondary Liquidity Portfolio consists of certificates of deposit with an average investment duration of three (3) months.
The Extended Term Portfolios consist generally 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). Certain investments in these portfolios are transacted by an external investment management firm under direction of an investment advisory agreement executed between the Office of Treasury and

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Notes to the Finar\cial Statements
JUf1( 30. 1999

Note 1. Summary of Significant Accounting Policies (continued)
Fiscal Services and the investment management finn. 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. The agreement also places limitations on individual security purchases and holdings. As of June 30, 1999, the State had $52,114,189 invested in U. S. agency mortgage-backed securities.
Other organizations of the State of Georgia reporting entity invest in a variety of financial 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-tenn investments, stocks, and U. S. Treasury bonds, notes, and bills. Investments of other organizations are stated at fair value at June 30, 1999.
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 of the funds and may take the fonn of certificates of deposit, letters of credit, money orders or cashiers' checks. At June 30, 1999, the Department held surety bonds in the amount of $34,089,426, and cash bonds in the amount of $10,887,042. 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 ofInsurance 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, 1999, securities valued

at $202,545,315 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 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 financial statements. At June 30, 1999, $47,341,881 in escrow deposits were administered by the Department of Transportation.
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 1-C) have been met. Estimates of allowances for uncollectible receivables have not been made for the majority of receivables included within the financial statements.
G. Interfund Receivables/Payables
The short-tenn portion of balances arising in connection with interfund loans are recorded as interfund receivables/payables.
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 tenn obligations on goods sold or services rendered.
I. Advances to Other Funds
Noncurrent portions oflong-tenn 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.

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Notes to the Financial statements
June 30. 1999

Note 1. Summary of Significant Accounting Policies (continued)
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 ofgovernmental 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 ofnet current 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, 1999, are recorded as prepaid items.
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.

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 deterrninabk Certain fixed assets acquired through capital leases in prior years have not been recorded on the financial 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 funded by governmental fund types and college and university funds. Interest costs during construction for proprietary fund types are not capitalized with the exception ofconstruction 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 ofvalue 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.

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

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

A-44

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Fil1al1cial Statemmts Jmc 30. 1999

Note 1. Summary of Significant Accounting Policies (continued)
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 30,1999, mortgage loans totaling $12,601,840 have been transferred and assigned to lenders under repurchase agreements by the Georgia Development Authority (discretely presented component unit). 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 of the 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 financed from proprietary fund operations are accounted for in those funds.
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 financial resources.
S. Bond Discounts/PremiumslIssuance 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.

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- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Rnancial statements
June 30. 1999

Note 1. Summary of Significant Accounting Policies (continued)
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 of expenditures/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 financial 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 financial 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 financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial 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 financial statements include fmancial activity for the Stone Mountain Memorial Association, whose fiscal reporting period differs from that of the State of Georgia (July 1, 1998 through June 30, 1999). The applicable fiscal reporting period for the Stone Mountain Memorial Association is based on a fifty-two/fifty-three week period ending on the last Sunday of each calendar year. Financial activity is reported for the period January 3, 1998, through December 31, 1998.

Note 2. Other Accounting Disclosures
Change in Accounting Policy and Restatements
In fiscal year 1999, the State implemented GASB Statement 32, "Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans." Based on revisions to the law, this statement rescinded the requirement to account for Internal Revenue Code Section 457 deferred compensation plans in an agency fund of the employer. The effect of this change is to eliminate the deferred compensation agency fund.
In prior years, the WorId Congress Center Authority did not record depreciation on certain fixed assets (equipment) acquired through contractual agreements with other parties. In fiscal year 1999, the Authority began recording depreciation on these fixed assets. This change is in accordance with generally accepted accounting principles. The beginning fund equity of the discretely presented component units - proprietary fund types has been decreased by $2,406,603, and accumulated depreciation has been restated.
Fund equity at July 1, 1998, has been adjusted as follows:

Discretely Presented Component Units

Proprietary Fund Types

Change in Application of Accounting Principle

$ (2.406.603)

A-46

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Rl1al1dal Statemmts
June 30, 1999

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 financial 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 financial needs of the 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 of the 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 of the 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 of additional 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 oJ Georgia - - - - - - - - - -
Notes to the Financial statements June: 30. 1999
Note 3. Budgetary Accounting (continued)
A-48

State of Georgia----------
Notes to the Financial Statemmts Jme30,1999

Excess afFunds Available Over Expenditures - Budget Fund Budgetary Method
Entity and Perspective Differences:
Reclassification of Budgetary Funds to GAAP Financial Statement Fund Types
Non-Budgeted Funds
Budgeted Non-Current Funds
Basis Differences:
Net Accrued Revenues, Related Receivables and Deferred Revenues
Net Accrued ExpenditureslExpenses and Related Liabilities
Timing Differences:
Revenues
ExpenditureslExpenses
Excess (Deficiency) ofRevenues and Other Financing Sources Over (Under) Expenditures and Other Financing UseslNet Income (Loss)! Net Increase in Plan Net AssetslNet Increase (Decrease) in Fund Balances - Current Funds GAAP Fund Types

Expendable Trust

Financial Statement Fund Types

Primary Government

Discretely Presented Component Units

Nonexpendable Trust

Pensionl Investment
Trust

College and University

Governmental

Proprietary

Fiduciary

15,316,045

4,286

200 1,789,906,250

15,948,371 (10,014,327)
457,764

(1,786,945) 133,244

386,237 51,926,526

331,426 4,235,639,930

(200)

14,336,082

(3,685,694)

6,311,449 (1 118,360)

(1,259,922) 3,176,256

(306,119) 59,216

(2,000) (29426)

15,316,045

4,286

1,789,906,250 $ 22,235,285

262,633

52,065,860 $ 4,235,639,930

A-49

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Notes to the Financial Statements
June 30. 1999

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:
1) 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 of the counties or municipalities of the 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 of the 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 $740,916,375, and the bank balances were $1,185,587,499. The amounts of these bank balances are classified into three categories of credit risk: (1) 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 financial 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, 1999:

Risk Category
2 3

Bank Balance

$

357,695,095

279,892,848

547,999.556

$ 1,185.587.499

A-50

State of Georgia - - - - - - - - -
Notes to the Fil1ar\cial Statements June: 30. 1999
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 fair value, and are summarized and classified as to risk in the following three categories: (l) insured or registered, or securities held by the State or its 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 Georgia - - - - - - - - - -
Notes to the Firlancial Statements June 30, 1999
Note 4. Deposits and Investments (continued)
The carrying amounts and risk categories applicable to the State's investments are listed below:
Primary Government

Type of Investment Commercial Paper Corporate Bonds Municipal Bonds Repurchase Agreements Stocks U.S. Government Securities and
Corporate Obligations
Unclassified Mortgages Mutual Funds Other Unemployment Compensation Funds
Pooled with the U.S. Treasury Total Investments

Risk Categories

1,769,028 3.975,303
10,100 2,503,380,971 8,733,877,752
12,214624,115 23457,637,269

417,253,486 15,447,500
19,191,000 54,607,744 68,520,683 575020,413

119,593 119,593

Carrying Amount 419,022,514 19,422,803 10,100
2,522,571,971 8,788,605,089
12,283,144 798 24,032,777,275

4,651,877 2,742,621
6,481
1 983,406 133 26 023,584 387

Significant Discretely Presented Component Units

Type of Investment

Governmental Fund Types

Georgia Public Telecommunications

Commission

Commercial Paper

Stocks

Unclassified Mortgages

Risk Categories 3

47,850 161,230 209,080

$

47,850

161,230

209,080

99,695 308,775

A-52

State of Georgia - - - - - - - - -
Notes to the Fillarlcial Statements Jme 30, 1999
Note 4. Deposits and Investments (continued)

Proprietary Fund Types
Georgia Housing and Finance Authority

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

Unclassified Mortgages

Lottery Corporation
Geo. L. Smith 11 Georgia World Congress Center Authority

U.S. Government Securities and Corporate Obligations
Repurchase Agreements
u.s. Government Securities and
Corporate Obligations

All Other Component Units

Corporate Bonds Repurchase Agreements U.S. Government Securities and Corporate Obligations
Unclassijied Mutual Funds

Risk Categories

Carrying Amount

2,857,487 3,413,403
32,640,298 38,911,188

203,926,000

$

1,000,000 3,812,452
59,972,868 64,785,320

$ 35,051,636 50406,728 85458,364

96,346.000

2,857,487 3,413,403 32640,298 38,911,188
38,588,250 77,499,438 300,272,000 35,051,636 50,406,728 85458,364
1,000,000 3,812,452 59,972,868 64,785,320
379,347 65,164,667

A-53

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Financial Statements
JUlIe 30, 1999
Note 4. Deposits and Investments (continued)

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

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

Risk Categories 2
635,893,000 23,093,979,000
14,807428,000 38,537,300,000
30,535,344 213,343
51,651,360 307,600,478
275783,691 665,784,216

3

Carrying Amount

635,893,000 23,093,979,000
14,807,428,000 38,537,300,000
3,760,000 38,541 060,000
30,535,344 213,343
51,651,360 307,600,478
275,783,691 665,784,216
48,162,246 850,496
714,796,958

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 a U. 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 of collateral security,

Securities loaned totaled $20,913,417,000 at June 30,1999, 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 Statement of Net Plan Assets since the State maintains ownership. The related collateral securities are not recorded as assets on the Statement of Net Plan Assets, and a corresponding liability is not recorded, since the State does not pledge or trade the collateral securities,

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- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Rnal1cial Statements
JurlC 30. 1999
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, 1999, and related risk categorization of investments are as follows:

Georgia Fund 1 Statement of Net Assets
June 30,1999

Cash and Cash Equivalents Investments
Net Assets

$ 1,660,221,810 4,967,904,502
$ 6,628,126,312

Distribution of Net Assets

External Participant Account Balances Internal Participant Account Balances

$ 3,210,462,987 3,417,663,325

$ 6,628,126,312

Georgia Fund 1 Statement of Changes in Net Assets For the Fiscal Year Ended June 30,1999

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

$17,176,264,218 354,051,930 (1,835,217)
$17,528,480,931

Deductions Pool Participant Withdrawals Net Increase
Net Assets July I Adjustments
Restatement of Prior Year Balance

16,703,938,937 $ 824,541,994
4,042,413,731
1,761.170,587

June 30

$ 6,628,126,312

Because the State does not maintain separate bank accounts for Georgia Fund 1, a separate risk categorization for the Fund's deposits cannot be presented. The carrying amount of Georgia Fund 1 deposits as of June 30, 1999, was $9,133,339. This amount is included in the categorization of deposits of the Primary Government. Investments of Georgia Fund 1 are categorized below. These amounts are included in the categorization of investments of the Primary Government.

Type of Investment Commercial Paper
Repurchase Agreements U.S. Government Securities and
Corporate Obligations

Risk Categories

1,877,117,609
4,384.918,383 6.262,035,992

356,956,981 356,956.981

Carrying Amount

$

356,956,981

1,877,117,609

4,384918,383 6,618,992,973

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Notes to the Financial Statements
June 30, 1999
Note 4. Deposits and Investments (continued)

Regents Investment Pool Statement of Net Assets
June 30, 1999

Cash and Cash Equivalents Investments Interest Receivable
Net Assets

$ 5,570,824 106,000,398 728,290
$ 112,299,512

Distribution of Net Assets

External Participant Account Balances Internal Participant Account Balances

$ 8,429,045 103,870.467

$ 112.299512

Regents Investment Pool Statement of Changes in Net Assets For the Fiscal Year Ended June 30.1999

Additions Investment Income Interest Fair Value Decreases Less: Investment Expense Total Additions
Deductions Pool Participant Withdrawals Capital Transactions Total Deductions Net Increase
Net Assets July I

$ 3,713,266 (803,459) (358,262)
$ 2551,545
$ 21,473,132 (31,613,845)
$ (10.140,713) $ 12,692,258
99,607,254

June 30

$ 112,299512

Because the State does not maintain separate bank accounts for Regents Investment Pool, a separate risk categorization for the Pool's deposits cannot be presented, The canying amount of Pool deposits as of June 30, 1999, was $6,299,114, This amount is included in the categorization of deposits of the Primary Government. Investments ofRegents Investment Pool are categorized below, These amounts are included in the categorization of investments of the Primary Government.

Type of Investment Corporate Bonds Repurchase Agreements Stocks U.S. Government Securities and
Corporate Obligations

Risk Categories
9,342,402 $ 19,191,000 41,155,249 36311,747 106,000,398

Carrying Amount 9,342,402 19,191,000 41,155,249
36311,747 106,000,398

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- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Rnandal Statements June 30, 1999
Note 5. Receivables
Primary Government
Receivables by fund type as ofJune 30, 1999, consist of the following:

Governmental Fund Types General Special Revenue Capital Projects
Proprietary Fund Types Enterprise Internal Service
Fiduciary Fund Types Expendable Trust Nonexpendab1e Trust Funds Pension Trust Agency
College and University Funds

Gross Receivables

Allowance For
Uncollectibles

Net Total Receivables

$ 3,493,671,214

$

1,798,500

15,416;774

$ 3,493,671,214 1,798,500
15,416,774

10,146,003 7,641,212

(2,303,272)

7,842,731 7,641,212

65,367,762 6,664
91,696,816 30,176,583 344,772.294

(15,011,985) (72,073,680)

50,355,777 6,664
91,696,816 30,176,583 272.698,614

$ 4,060,693,822

$ (89,388,937)

$ 3,971.304,885

A-57

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Notes to the Rnancial Statements
June 30. 1999
Note 5. Receivables (continued)
Significant Discretely Presented Component Units
Receivables of the significant discretely presented component units as of June 30, 1999, consist of the following:

Governmental Fund Types Georgia Public Telecommunications Commission
Proprietary Fund Types
Georgia Environmental Facilities Authority
Georgia Housing and Finance Authority
Georgia Student Finance Authority
All Other Component Units Fiduciary Fund Types
Teachers' Retirement System Of Georgia
All Other Component Units

Gross Receivables

Allowance For
Uncollectibles

Allowance For Service Repayments

Deferred Loan Fees

Net Total Receivables

$ 1,025,278 $ (277,887) $

$

$

747,391

577,395,692
625,018,846 385,220,012 165, 100,786

(265,063) (4,073,682) (4,120,617)

(30,108,951)

(227,988)

577,395,692
624,753,783 351,037,379 160,752,181

409,217,495 5.110,742

409,217,495 5.110,742

$ 2.168,088,851 $ (8,737,249) $ (30.1 08,951) $ (227,988) $ 2.129,014,663

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- - - - - - - - - State of Georgia---------
Notes to the Rnandal Statements
Junc 30, 1999
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 Jnly 1, 1998 $ 1,987,966,927
448,632 926,121,955
350,787

Retroactive Restatement
oCPrior Year Balance $
198,508

Additions $ 123,531,661
166,286 144,953,506

Retirements $ (40,057,186)
(61,949,552) (350,787)

Balance Jnne 30, 1999 $ 2,071,441,402
614,918 1,009,324,417

$ 2,914,888,301 $

198,508 $ 268,651,453 $ 002,357,525) $ 3,081.380,737

The following is a summary of the proprietary fund types and college and university funds fixed assets at June 30, 1999:

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

$

$ 239,334,788

359,988

191,146,723 (13,104,836)

$

359,988

$ 417,376,675

College and University Funds $ 2,924,907,407
206,918,526 1,700,455,524
225,757,306 $ 5,058,038,763

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Notes to the Rnancial Statements
JUrle 30, 1999
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, 1999:

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

Governmental Fund Types

Proprietary Fund Types

Georgia Public Telecommunications
Commission

Georgia Ports
Authority

27,360,330 61,460,552 88,820,882 $

198,834,000 221,768,000 134,051,000 (218,830,000)
23,139,000 358,962,000

Stone Mountain Memorial Association
80,875,545 19,374,604 27,827,648 (37,742,396) 2,022,146 92,357,547

Geo. L. Smith II Georgia World Congress Center
Authority
209,402,736
12,863,659 (54,936,233) 71,907,608 239,237,770

All Other Component
Units
113,845,884 2,723,138
38,190,048 (23,048,677)
1,196,732 132,907,125

Land and Buildings Machinery and Equipment
Net Fixed Assets

Fiduciary Fund Types

Firefighters' Pension Fund

$

138,054

185,172

Peace Officers' Annuity and Benefit Fund

$

310,296

183,628

All Other Component
Units
$
40,965

$ 323,226 $

493,924 $ 40,965

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 of the assets owned by the State of Georgia.

A-60

- - - - - - - - - State of Georgia---------
Notes to the Rmll1cial Statemmts Jmc30,1999

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 of the 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, 1999, and 1998, is shown below:

Unpaid Claims and Claim Adjustments July I

Fiscal Year Ended June 30. 1999

Fiscal Year Ended June 30. 1998

$159,758,318 $ 148,196,779

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

993,414,951

863,085,931

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

(934,652,490)

(851 ,524,392)

Unpaid Claims and Claim Adjustments June 30

$218,520.779 $159,758.318

B. Board of Regents Employee Health Benefits Plan
The Board of Regents of the University System of Georgia maintains a program of health 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, 1999, and 1998, is shown below:

Fiscal Year Ended June 30, 1999

Fiscal Year Ended June 30, 1998

Unpaid Claims and Claim Adjustments July I

$ 21,800,000 $ 20,900,000

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

159,756,073

140,916,616

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

(JS6,256,073)

(140,016,616)

Unpaid Claims and Claim Adjustments June 30

$ 25,300,000 $ 21.800,000

C. Other Risk Management
The Department of Administrative 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 Georgia---------
Notes to the Rnandal Statements
June 30, 1999

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 years ended June 30, 1999, and 1998, is shown below:

Fiscal Year Ended June 30. 1999

Fiscal Year Ended June 30, 1998

Unpaid Claims and Claim Adjustments July I

$ 357,293,702 $ 258,497,047

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

158,694,809

183,454,774

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

(84.270,758)

(84,658.1 19)

Unpaid Claims and Claim Adjustments June 30

$ 431.717,753 $ 357,293.702

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, 1999, the undisbursed balance remaining on these agreements approximates $901,000,000.

Significant Discretely Presented Component Units
Proprietary Fund Types
At June 30, 1999, the Georgia Ports Authority had commitments for construction projects of approximately $13,500,000.
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 ofthe 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, 1999, 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 2000 2001 2002 2003 2004 2005 and Subsequent Total Minimum Commitments

$ 77,603,346 16,129,024 15,775,338 15,240,670 14,781,293 18,679.314
$158.208,985

Expenditures for rental of real property and equipment for the year ended June 30, 1999, totaled $78,979,549.

A-62

State of Georela - - - - - - - - -
Notes to the Finandal Statements June 30. 1999

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

Georgia Lottery Corporation

Fiscal Year Ended June 30

2000

$ 1,963,000

2001

1,963,000

2002

1,963,000

2003

1,963,000

2004

14,000

2005 and Subsequent

$ 7,866,000

Less: Sublease Revenues

(1,476,000\

Total

$ 6,390,000

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, 1999, are as follows:
Primary Government

Fiscal Year Ended June 30 2000 2001 2002 2003 2004 2005 and Subsequent Total

$ 8,291,532 8,407,857 8,531,267 8,658,139 8,779,599
163,497,496 $ 206,165.890

Expenditures for rental of real property and equipment for the year ended June 30, 1999, totaled $1,579,000,

North Georgia Mountains Authority

Fiscal Year Ended June 30

2000

$ 1,432,064

2001

1,434,982

2002

1,438,486

2003

1,448,954

2004

1,467,011

2005 and Subsequent

15,391,903

Total Minimum Commitments

$ 22,613,400

Expenditures for rental of real property and equipment for the year ended June 30, 1999, totaled $1,429,219,

Revenues from rental of facilities for the year ended June 30, 1999, totaled $8,244,572.
Significant Discretely Presented Component Units
Proprietary Fund Types

Lake Lanier Islands Development Authority

Fiscal Year Ended June 30

2000

$ 3,100,000

2001

3,100,000

2002

3,200,000

2003

3,200,000

2004

3,200,000

2005 and Subsequent

137,866,667

Total

$ 153,666,667

A-63

- - - - - - - - - State of Georgta---------
Notes to the Rnandal Statements
June 30. 1999

Note 9. Operating Leases (continued)
Revenues from rental of facilities for the year ended June 30, 1999, totaled $3,155,729.

Georgia Ports Authority

Fiscal Year Ended June 30

2000

$ 5,154,000

2001

3,836,000

2002

3,165,000

2003

2,462,000

2004

2,048,000

2005 and Subsequent

22.172,000

Total

$ 38.837.000

Revenues from rental of facilities for the year ended June 30, 1999, totaled $22,172,000.
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 financial 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 Sununary 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 financing sources in the governmental fund types when capitalized leases are entered into as required by GAAP. At June 30, 1999, future commitments under installment purchases and capital leases were as follows:
Primary Government

Fiscal Year Ended June 30 2000 2001 2002 2003 2004 2005 and Subsequent Total Capital Lease and Installment Purchase Payments Less: Interest Present Value of Capital Lease and Installment Purchase Payments

$ 18,200,517 14,483,493 5,699,598 1,318,401 995,464 9,709
$ 40,707,182 (3,162,154)
$ 37,545.028

Installment Purchases Capital Leases

$ 7,714,944 29.830.084
$ 37,545.028

Significant Discretely Presented Component Units
Governmental Fund Types

Georgia Public Telecommunications Commission

Fiscal Year Ended June 30

2000

$ 2,809,146

2001

2,775,628

2002

2,086,580

2003

2,083,804

2004

1,651,626

2005 and Subsequent Total Installment Purchase Payments Less: Interest

658293 $ 12,065,077
(I 376,346)

Present Value of Installment Purchase Payments

10.688,731

A-64

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Rnandal Statements
JUlIe 30, 1999

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

Geo. L. Smith II Georgia World Congress Center Authority
Fiscal Year Ended June 30
2000

$ 332,168

2002
2003 2004
2005 and Subsequent Total Capital Lease and Installment
Purchase Payments
Less: Interest Present Value of Capital Leases and
Installment Purchases

$ 496,552

Installment Purchases Capital Leases

$ 428,043

Note 11. Long-Term Debt
Primary Government
General Obligation Bonds. The State issues general obligation bonds to provide funds for the acquisition and construction of major 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

1.25% 8.40%
2.00%6.75%

$ 4,051,270,000 728.460.000
$ 4.779.730,000

A-65

- - - - - - - - - - State of GeorfJi'l----------
Notes to the Rnancial Statements
June 30, 1999
Note 11. Long-Term Debt (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:

Fiscal Year Ended June 30 2000 2001 2002 2003 2004
Thereafter

Principal $ 333,305,000
276,640,000 286,260,000 288,310,000 3I 7,670,000 3,277,545,000 $ 4,779,730,000

Interest $ 273,580,728
255,368,897 238,493,753 221,796,945 203,873,974 973.479,576 $ 2,1 66,593,873

Total $ 606,885,728
532,008,897 524,753,753 510,106,945 521,543,974 4,251,024,576 $ 6,946,323,873

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, 1999, were $15,505 with accumulated interest of$II,475.
Revenue Bonds. At June 30, 1999, $209,645,000 of outstanding general obligation bonds (including prior years'

refundings), and $1,557,000 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, 1999, 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-renn Notes

Balance July 1 212,076,813 697,979 4,344,386
4,505,775,000 15,505
2,846,689 4,725756,372

Additions
4,670,386 862,030,000
866700,386

Reductions
(2,008,915) (588,075,000)
(49,423) (590.133,338)

Earned and Utilized (Nel)
7,376,711
7,376.711

Balance June 30 219,453,524 697,979 7,005,857
4,779,730,000 15,505
2,797266 5009,700,131

A-66

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Rrlal1cial Statements
JUlIe 30. 1999

Note 11. Long-Term Debt (continued)
Significant Discretely Presented Component Units
Governmental Fund Types
Defeased Debt. At June 30, 1999, $460,000 of outstanding Georgia Education Authority (Schools) revenue bonds (including prior year's defeasances) are considered defeased.
Proprietary Fund Types
Long-Term Operating Debt. Long-tenn operating debt has been issued by the Georgia Student Finance Authority. This debt consists of a financing agreement with SunTrust Bank with an outstanding balance at June 30, 1999, of $31,500,000.

Purpose
Georgia Student Finance Authority

Interest Rates
Varies Based on Market Rates

Amount $ 31.500,000

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

Fiscal Year Ended June 30

Georgia Student Finance Authority

Principal

Interest

Total

2000

$31,500,000 $ -

$ 31,500,000

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 $769,765,901 and $191,650,732 at the Georgia Housing and Finance Authority and the Geo. L. Smith II Georgia WorId Congress Center Authority, respectively, at June 30, 1999, are as follows:

A-67

---------- State of Georgia----------
Notes to the Financial statements
June 30, 1999
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% -11.25% 6.950% - 7.875%

Amount

$ 767,807,901

$

1,958,000

$ 191,650,732

Georgia Housing and Finance Authority

Fiscal Year Ended June 30

Principal

Interest

Total

2000

$

10,529,278

$ 43,911,884

$

54,441,162

2001

12,625,000

43,120,414

55,745,414

2002

15,075,000

42,455,638

57,530,638

2003

16,480,000

41,668,728

58,148,728

2004

18,005,000

40,784,505

58,789,505

Thereafter

750,068,805

511,985,320

1,262,054,185

Unamortized Discount

(323,313)

323,313

Future Accretion of Capital Appreciation Bonds

(54,651.929)

54,651.929

$ 767,807,901

$ 778,90 I,731

$ 1,546,709,632

Various series of bonds issued under Resolution I 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-68

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Finmcial Statements June 30, 1999

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, 1999, was $1,958,000. 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 of the State of Georgia or any political subdivision thereof.

Geo. L. Smith II Georgia World Congress Center Authority

Fiscal Year Ended June 30

Principal

Interest

2000

$

3,485,000

$

7,346,172

$

2001

3,745,000

14,559,398

2002

4,025,000

14,281,550

2003

4,330,000

13,977,522

2004

4,665,000

13,644,624

Thereafter

171,850,000

139,743,180

Unamortized Discount

(449.268)

449.268

$

191,650,732

$

204,001.714

$

Total 10,831,172 18,304,398 18,306,550 18,307,522 18,309,624
311,593,180
395.652,446

Defeased Debt. At June 30, 1999, $81,630,000 of outstanding Tollway Authority revenue bonds and $76,400,000 of Environmental Facilities Authority revenue bonds (including prior years' defeasances) are considered defeased.
Note 12. Interfund Balances
Interfund assets and liabilities at June 30, 1999, consist of the following:
Interfund Receivables:

Receivable Fund Capital Projects Funds

Payable Fund
Proprietary Fund Types - Discretely Presented Component Units

Interfund Receivable

Interfund Payable

$ 1,984.169 $ 3,078.687

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-69

- - - - - - - - - State of GeorfJia---------
Notes to the Finandal Statements
June 30, 1999
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
Pension Trust Funds Proprietary Fund Types - Discretely
Presented Component Units 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 Internal Service Funds
Internal Service Funds
Capital Projects Funds
General Fund

Due From
$ 711,326 14,296,095 72,131 1,651,207 1,146,000
144,725
124,625 515
5
247,993
2,053,033 $ 20,447,655

Due To
$ 711,326 14,296,095 72,131 1,651,207 1,146,000
144,725
124,625 515
5
247,993
2,053,033 $ 20,447,655

Advances From/To Other Funds:

Receivable Fund General Fund General Fund
Capital Projects Funds
Total

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

53,750

53,750

12,647,162 $ 12,707,837

12,647,162 $ 12,707,837

A-70

State of Georf)ia - - - - - - - -
Notes to the Rnandal Statements Jmc30,1999
Note 13. Contributed Capital
During the year, contributed capital increased by the following amounts:
Primary Government

Source
General Obligation Bond Proceeds/ Fixed Assets Contributed by Primary Government
Contributed Capital July I, 1998
Contributed Capital June 30, 1999

Internal Service Funds

Department of Administrative
Services

Georgia Building Authority (Regular)

Georgia Correctional Industries Administration

Total

$

$

175,983 $

53,384,666

220,059,544

$ 53,384,666 $ 220,235,527 $

\,\45,948 \,\45,948

$ 175,983 274,590,158
$ 274,766.141

Significant Discretely Presented Component Units
Proprietary Fund Types

Source General Obligation Bond Proceeds/Capital Outlay Contributed by Primary Government Contributions from Federal Government Contributions from Other Sources General Obligation Bond Proceeds/Capital Outlay Returned to Primary Government Net Additions (Deductions) Contributed Capital July 1, 1998 Restatement of Prior Year Balance Contributed Capital June 30. 1999

Georgia Environmental
Facilities Authority
21,503,796 35,476,425
56,980,221 526.845,283
583.825,504

Georgia Ports
Authority
8,446.000

Geo. L. Smith Georgia World Congress Center
Authority

All Other Component
Units
3,181,978

(11,566,000) (3,120,000)
249,696,794
246,576,794

63,703,860 7,650,000
71,353,860

23,800 (21337.352) $ (18,131,574) 161,690,879
$ 143,559,305

A-71

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Financial Statements
June 30, 1999

Note 13. Contributed Capital (continued)
Contributed Capital/Residual Equity Transfers for the fiscal year ended June 30, 1999, are as follows:

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 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

Contributed

$ 13,877,077 $ 13,877,077

516,575 175,983

19,026,275 175,983

850,6 II

850,6Il

32,281.163 $ 47,701,409 $

32,281.163 66,211,109

35,500,225 $ 83,201,634 $

66,21 1.109

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
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 financial 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 financial condition of the State, with the following exceptions:

Primary Government
Two suits for refund have been filed against the State of Georgia by out-of-state producers of alcoholic beverages. The two cases seek $153,000,000 (including interest), in refunds of alcohol import taxes imposed under OCGA Section 3-4-60. These claims constitute 99% of all such taxes paid during the three years preceding these claims. 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 conclusively resolved in favor of the State by virtue of the trial court's judgment, now appears to be approximately $54,000,000.

A-72

- - - - - - - - State of Georgia--------
Notes to the Rl1Cmdal Statemmts
June 30, 1999

Note 14. Contingencies (continued)
A suit was filed March 13, 1998, by DeKalb County against the State of Georgia, the Department ofRevenue, 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 detennination 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 affinned 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 detennined by the Department to be unidentifiable to any county. The case is in discovery in the trial court.
A financial 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 1991-1999) is approximately $36,000,000. After the filing of cross-motions for summary judgment in the original case, the Superior Court ruled in favor of the Defendant State Revenue Commissioner. An appeal ofthe decision has not yet been docketed in the Georgia Court of Appeals.
Contract claims in the amount of approximately $11,000,000 have been made against the Board of Regents of the University System of Georgia in connection with construction at the Children's Medical Center in Augusta, Georgia. The delay, equitable adjustment, and design claims were made by 30 subcontractors and the construction manager. The total project cost is $44,000,000. Several subcontractors have filed suits against the Construction Manager, with the Construction Manager filing corresponding third-party complaints against the Board of Regents. The total amount of claims by subcontractors against the Construction Manager is approximately $6,640,000. Discovery proceedings in the filed lawsuits and settlement negotiations for all claims are continuing.
A suit was filed on August 13, 1999, that challenges the master settlement agreement between most of the tobacco

manufacturers and 46 states (plus other jurisdictions) and the validity of subsequent legislation related thereto. Couched largely as an antitrust suit, the plaintiffs seek, among other things, disgorgement of funds paid pursuant to the agreement. Under the agreement, Georgia is to receive over $4,800,000,000 between the years 2000 and 2025. The defendant states have collectively filed a motion to dismiss. The State believes it has good and valid defenses on jurisdictional and other grounds.
Construction on the Animal Health Research Center at the University of Georgia has generated an $8,200,000 delay, equitable adjustment, and design claim from the contractor. The State believes it has significant counterclaims to assert against the contractor. The case is now entering the discovery phase.
Significant Discretely Presented Component Units
Proprietary Fund Types
The Federal Government, through the Guaranteed Student Loan Programs of the 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 (1) twenty percent (20%) of the outstanding balance of loans in repayment status at the beginning of each year which were disbursed prior to October 1, 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 1, 1993.
Note 15. Subsequent Events
Primary Government
General Obligation Bonds Issued
The State issued General Obligation Bonds in the amount of $358,585,000 on August 1, 1999 (Series 1999A and 1999 B); in the amount of $327,615,000 on November 1, 1999 (Series 1999C and 1999D); and in the amount of $108,515,000 on March 1,2000 (Series 2000A).
Proceeds from these bonds will be used for the purpose of financing various capital outlay projects.

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Notes to the Financial Statements
June 30. 1999

Note 16. 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, 1999, participation in GDCP is as follows:

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

67,928

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 distribution to 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 annual 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, defined 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 1, 1995.
Membership As of June 30, 1999, DARF had ten (10) 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 annual 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.
Employees' Retirement System ofGeorgia
Plan Description
Organization and Purpose Employees' Retirement System of Georgia ("ERS") is a single-employer, defined 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.

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- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Rnandal Statements
June 30. 1999

Note 16. Retirement Systems (continued)
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 limitation on benefits imposed by IRC Section 415.
Membership As ofJune 30, 1999, 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

23,195 71,711

As of June 30, 1999, one hundred seventy-nine (179) members were eligible to participate in the SRBP ofERS.
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 provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.
Under both the old and new plans, a member may retire and receive normal retirement benefits after completion often

(10) years of creditable service and attainment of age sixtyfive (65). Additionally, there are certain provisions allowing for retirement after twenty-five (25) years of creditable 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 months 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.
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 $1 ,828,000 and retirement payments of $1,637,000 are included in the Statement of Changes in Plan Net Assets for the year ended June 30, 1999. Cash of$162,000 and employer receivable of $175,000 are included in the Statement of Plan Net Assets at June 30, 1999.
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.
The employer contributions are projected to liquidate the unfunded actuarial accrued liability within nine (9) years based upon the actuarial valuation at June 30, 1998.

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- - - - - - - - - State of Georgia---------
Notes to the Rnancial statements
June 30, 1999

Note 16. Retirement Systems (continued)
Georgia Judicial Retirement System
Plan Description
Organization and Purpose The Georgia Judicial Retirement System ("GJRS") is a newly created system serving the members and beneficiaries
Souf ptheerioTrrCiaoluJrut dJugdesgeasnRdeStiorelimcietnotrsSyRsetteimremanedntthFeuDnid~trtihcet
Attorneys' Retirement System (collectively the "Predecessor Retirement Systems"). As ofJune 30, 1998, any person who was an active, inactive or retired member or beneficiary of the Predecessor Retirement Systems was transferred to GJRS in the same status effective July I, 1998. All assets of the Predecessor Retirement Systems were transferred to GJRS as ofJuly I, 1998.
GJRS is a multiple-employer cost-sharing defined benefit pension plan established by the Georgia General Assembly for the purpose of providing retirement allowances for trial judg~s and solicitors of certain courts in Georgia, and their survivors and other beneficiaries, superior court judges of the State of Georgia, and district attorneys of the State of Georgia. GJRS is administered by the ERS Board of Trustees and three (3) other trustees not on the ERS Board.
Membership As of June 30, 1999, participation in GJRS is as follows:

Retirees and Beneficiaries

Currently Receiving Benefits

113

Active Plan Members

431

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

Benefits ~he normal retirement for GJRS is age sixty (60) with sixteen (16) years of creditable service; however, a member may retire at age sixty (60) with a minimum often (10) years of creditable service.

Retirement benefits paid to members are computed as sixty-

six and two-thirds percent (66 2/3%) of annual salary plus

one percent (1%) for each year of credited service over

sixteen \16) years, not to exceed twenty-four (24) years.

Early retIrement benefits paid to members are computed as

the pro rata portion of the normal retirement benefit based

on service not to exceed sixteen (16) years. '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 annual salary plus and additional two and one-half percent (2.5%) if spousal benefit is elected. Employer contributions are actuarially determined and approved and certified by the GJRS Board of Trustees.

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 actuarial accrued funding excess within fourteen (14) years based upon the actuarial valuation at July I, 1998.

Legislative Retirement System
Plan Description
Organization and Purpose Legislative Retirement System ("LRS") is a singleemployer, defined benefit plan established by the Georgia Ge~eral 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.

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- - - - - - - - - State of GeorfJia---------
Notes to the Finandal Statements
JUlIe 30, 1999

Note 16. Retirement Systems (continued)
Membership As of June 30, 1999, participation in LRS is as follows:

Retirees and Beneficiaries

Currently Receiving Benefits

190

Active Plan Members

210

Terminated Employees Entitled to Benefits but not yet Receiving Benefits

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-halfpercent (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 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 actuarial accrued funding excess within forty (40) years based upon the actuarial valuation at June 30, 1998.
Superior Court Judges Retirement Fund
Plan Description
Organization and Purpose The Superior Court Judges Retirement Fund ("SCJRF") is a single-employer, defined benefit pension plan established by the Georgia General Assembly in 1945 for the purpose of providing retirement benefits to the superior court judges of the 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, 1999, participation in SCJRF is as follows:

Retirees and Beneficiaries Currently

Receiving Benefits

34

Active Plan Members

2

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.
Contributions and Vesting Member contributions are 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 pays member contributions of five 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.

A-77

- - - - - - - - - - State of GeorfJia - - - - - - - - - -
Notes to the Finandal Statements June: 30. 1999

Note 16. Retirement Systems (continued)
Regents Retirement Plan
Plan Description
Organization and Purpose The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan established and administered by the Board of Regents ofthe 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 contributions are five percent (5.0%) of the earnable compensation, as established by the Board of Trustees of the Teachers' Retirement System. Employer contributions are 8.34% of the participating employee's earnable compensation. Employer contributions are established by statute and may be amended only by the General Assembly of the State of Georgia.
Amounts attributable to all plan contributions are fully vested and non-forfeitable.
Significant Discretely Presented Component Units
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 of the 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.
On October 25, 1996, the Board created the Supplemental Retirement Benefit Plan ofthe 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 ofTRS. The purpose of the 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, 1999, participation in TRS is as follows:

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

43,732 186,822

As of June 30, 1999, seven (7) members were eligible to participate in the SRBP ofTRS.
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%) of the average of the member's two (2) highest paid consecutive years ofservice multiplied by the number of years of creditable service up to forty (40) years. Early retirement benefits are reduced by the lesser of one-twelfth (1/12) of seven 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.

A-78

- - - - - - - - - State of Georgia---------
Notes to the Rnancial Statements
June 30. 1999
Note 16. Retirement Systems (continued)
Contributions and Vesting TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees.
Contributions required by the annual actuarial valuation are as follows:

Member
Employer: Normal Unfunded Accrued Liability Expenses

8.34% 3.46%

Under the SRBP, employer contributions of $93,000 and retirement payments of $93,000 are reflected in the Statement of Changes in Plan Net Assets for the year ended June 30, 1999.
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 at a rate of 2.35% are expected to liquidate the unfunded accrued liability over approximately eight (8) years on the assumption that the aggregate amount ofunfunded accrued liability contribution will increase by three and one-quarter percent (3.25%) each year.

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- - - - - - - - - State of G e o r g i a - - - - - - - - -
Notes to the Financial Statements
June 30, 1999

Note 17. 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
HIV 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, 1999

$

28,681,655 $

$

2,369,543 $

56,286 2,078,290

$

7,844,136 $

$

22,000 $

$

284,659 $

$

632,615 $

$

125,804 $

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, 1999, is not reported on the combined balance

sheet. The changes in Federal surplus personal property inventory during the fiscal year ended June 30, 1999, were as follows:

Balance July I, 1998 Additions
Property Received
Deductions Property Donated and Other Distributions
Balance June 30, 1999

$ 9,758,530 10.505.036
$ 20,263,566
15,490,430 $ 4.773.136

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- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Fillar\dal Statements
JUflC 30, 1999

Note 17. 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 fmancial circumstances. The Georgia Department ofHuman Resources is responsible for determining eligibility for participation in the food stamp program within the State. During the year under review, the total value offood stamps distributed as approved by the Department was $525,493,938.
Significant Discretely Presented Component Units
Governmental Fund Types
Donated support of volunteer services and other sources totaling $444,835 was provided to the Georgia Public Telecommunications Commission during the year ended June 30, 1999. The value of these services and other sources are not reported as revenue on the Combining Statement of Revenues, Expenditures and Changes in Fund Balances.
Note 18. Postemployment Benefits
In addition to the pension benefits described in Note 16, 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, 1999, there were 58,770 employees who had retired and were receiving postretirement health care benefits through the State Health Benefit Plan. For the fiscal year ended June 30, 1999, the State recognized expenditures of $219,364,544, which was net of retiree contributions of $52,077,988.
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, 1999, the University System recognized expenditures of$19,663,719, which was net of participant contributions of$5,412,097.
Note 19. Fund Deficits
The following organizations had deficit balances at June 30, 1999.
Primary Government
Enterprise Fund
At June 30, 1999, the Fund had an umeserved retained earnings deficit of $56,855,793.
Internal Service Funds
Liability Self-Insurance Reserve Fund - At June 30, 1999, the Fund had an umeserved retained earnings deficit of $15,256,396.
Unemployment Compensation Fund - At June 30, 1999, the Fund had an umeserved retained earnings deficit of $776,738.
Workers' Compensation Fund - At June 30, 1999, the Fund had an unreserved retained earnings deficit of $125,319,548.

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- - - - - - - - - - State of Geor8ia - - - - - - - - - -
Notes to the Rnandal Statements JUf1C 30. 1999

Note 19. Fund Deficits (continued)
Significant Discretely Presented Component Units
Governmental Fund Types
Georgia Public Telecommunications Commission - At June 30, 1999, the Commission had an unreserved, undesignated fund balance deficit of $4,577,068.
Proprietary Fund Types
Lake Lanier Islands Development Authority - At June 30, 1999, the Authority had an unreserved retained earnings deficit of $17,333,670.
Lottery Corporation - At June 30, 1999, the Authority had a reserved retained earnings deficit of $2,361,000.

North Georgia Mountains Authority - At June 30, 1999, the Authority had an unreserved retained earnings deficit of $504,832.
Note 20. 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.

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Notes to the Fillar1cial Statements
JUlie 30. 1999

Note 20. 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
EQillTY AND OTHER CREDITS Investment in Fixed Assets Fund Balances Reserved Unreserved Total Equity and Other Credits
Total Liabilities, Equity and Other Credits
REVENUES
EXPENDITURES
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES
Operating Transfers from Primary Government/Capital Leases
EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES
FUND BALANCES, JULY I
FUND BALANCES, JUNE 30

Governmental Fund Types

Georgia

Education

Georgia Public

Authority

Telecommunica-

(Schools)

tions Commission

Total

$

632,656 $

1,899,737 $

2,532,393

88,820,882

88,820,882

11,645,754

11,645,754

$

632,656 $

102,366,373 $

102,999,029

$

$

144,725 $

144,725

5,863,984

5,863,984

11,645,754

11,645,754

$

0$

17,654,463 $

17,654,463

$

$

88,820,882 $

88,820,882

378,096

378,096

632,656

(4,487,068)

(3,854,412)

$

632,656 $

84,711,910 $

85,344,566

$

632,656 $

102,366,373 $

102,999,029

$

31,475 $

13,445,549 $

13,477,024

$

0$

31,998,361 $

31,998,361

$

31,475 $

(\8,552,812) $

(\8,52 I ,337)

18,783,970

18,783,970

$

31,475 $

231,158 $

262,633

601,181

(4,340,130)

(3,738,949)

$

632,656 $

(4, I 08,972) $ ==~(3~,4=7=6,=31=6;;,,)

A-83

State of Georgia
Notes to the Financial Statements June: 3D, 1999

Note 20. 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
EQUITY AND OTHER CREDITS Investment in Fixed Assets Contributed Capital Retained Earnings Reserved Unreserved Fund Balances Reserved Unreserved Total Equity and Other Credits
Total Liabilities, Equity and Other Credits
OPERATING REVENUES Sales and Services Operating Grants Taxes Other Total Operating Revenues
OPERATING EXPENSES Depreciation Other Total Operating Expenses
OPERATING INCOME (LOSS)

Environmental Facilities Authority

Housing and Finance Authority

Lottery Corporation

$

1,668,657 $

856,274,304

295,942

$

858,238,903 $

$ 77,017,537 792,951,280
5,410,078
875,378,895 $

$ 41,109,489 300,741,000
2,686,000
344,536,489 $

Ports Authority
42,707,831 1,868,832
358,962,000
403,538,663

$

2,666 $

21,894,985

82,766,845

$

104,664,496 $

$

295,942 $

583,825,504

9,670,745 146,114,295

13,182,579

485,342

$

753,574,407 $

$

858,238,903 $

$

$

1,468 $ 24,051,981 769,765,901 793,819,350 $
$
30,518,174 49,109,050

24,129 $ 42,467,360 303,017,000 345,508,489 $
$
(2,361,000) 1,389,000

61,577 15,162,423 28,559,000 43,783,000
246,576,794
113,178,869

1,932,321 81,559,545 $
875,378,895 $

(972,000) $ 344,536,489 $

359,755,663 403,538,663

5,067,287 $

1,952,989,000 $

89,180,000

19,829,602

$

19,829,602 $

48,143,247 53,210,534 $

1,952,989,000 $

89,180,000

$

$

573,790 $

1,338,000 $

15,479,000

767,282

61,349,612

1,308,336,000

63,267,000

$

767,282 $

61,923,402 $

1,309,674,000 $

78,746,000

$

19,062,320 $

(8,712,868) $

643,315,000 $

10,434,000

Nonoperating Revenues/Expenses (Net) Operating Transfers to/from Primary Government NET INCOME (LOSS)
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES FROM GOVERNMENTAL OPERATIONS AND EXPENDABLE TRUST FUNDS
FUND EQUITY, JULY I Adjustments (Net) Current Capital Contributions (Net) Transfer of Equity to Primary Government Increase (Decrease) in Inventories
FUND EQUITY, JUNE 30

7,730,067

2,808,227

$

29,600,614 $

(2,234,323) 668,931,953
56,980,221

$

753,278,465 $

10,806,243 2,093,375 $

(9,913,000) (646,905,000)
(13,503,000) $

(5,844,904) 4,589,096

382,984 79,716,454
(633,268) 81,559,545 $

12,531,000

358,286,567 (3,120,000)

(972,000) $

359,755,663

A-84

State of Georgia - - - - - - - - -
Notes to the Fil1ar\cial Statements June 30, 1999

Student Finance Authority

Geo L. Smith II Georgia World Congress Center
Authority

All Other Discretely Presented
Proprietary Fund Types

Total

$

384,376 $

$

360,917,595

44,583,684

51,168,418 .

2,803,484

239,237,770

$

364,105,455 $

334,989,872 $

247,998 $ 252,658,309
24,539,645 214,069,168
491,515,120 $

2,301,031 1,675,268,749 1,171,269,175
823,464,442
3,672,303,397

$

$

23,905 $

284,785,360

49,761,852

31,500,000

191,650,732

$

316,285,360 $

241,436,489 $

722,206 $ 47,048,079 125,795,767 173,566,052 $

835,951 485,172,040 1,533,055,245 2,019,063,236

$

$

$

71,353,860

26,470,501 21,349,594

206,867 21,992,656

$

47,820,095 $

93,553,383 $

$

364,105,455 $

334,989,872 $

$ 143,559,305 24,003,292 150,386,471
317,949,068 $ 491,515,120 $

295,942 1,045,315,463
88,508,579 503,519,935
13,182,579 2,417,663 1,653,240,161
3,672,303,397

$

2,029,368 $

22,853,389 $

54,573,904 $

2,126,692,948

25,644,011

25,644,011

1,650,694

1,650,694

6,127,488

37,140,044

46,466,232

157,706,613

$

8,156,856 $

59,993,433 $

128,334,841 $

2,311 ,694,266

$

301,581 $

47,396,293

$

47,697,874 $

$

(39,541,018) $

278,099

39,804,450

$

541,531 $

8,785,709 $ 49,976,709 58,762,418 $
1,231,015 $
7,694,425
8,925,440 $

7,372,872 $ 103,403,483 110,776,355 $
17,558,486 $
(1,117,959) 5,222,040 21,662,567 $

33,850,952 1,634,496,379 1,668,347,331
643,346,935
9,632,971 (599,070,283)
53,909,623

7,576

(1,843,763)

47,278,564

87,048,133 (2,406,603)
(13,587)

314,252,241 (18,131,574)
158,258

1,568,044,912 (2,406,603) 35,728,647 (633,268) 144,671

$

47,820,095 $

93,553,383 $

317,949,068 $

1,652,944,219

A-85

(This page intmtionallv left blank)

- - ~'luiredSupp[ementar1 qnformation - - -

(This page intentionallv left blanR)

------------- State of Georgia - - - - - - - - - -
Required Supplementarv Information June 30, 1999

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

ERS
GJRS LRS (I)

Actuarial Valuation
Date
6/30/96 6/30/97 6/30/98
7/1/98
6/30/95 6/30/97 6/30/98

Actuarial Value of Plan Assets
(a)

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

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

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

7,432,306

8,159,345

727,039

8,613,575

9,093,758

480,183

$

160,171 $

117,771 $ (42,400)

$

13,137 $

13,860 $

723

18,197

18,086

(Ill)

20,375

19,272

(1,103)

Funded Ratio (a/b)

Annual Covered Payroll
(c)

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

84.8% $ 1,968,714

91.1%

1,977,928

94.7%

2,055,966

56.0% 36.8 % 23.4%

136.0% $

26,226

(161.7)%

94.8% $ 100.6% 105.7%

2,186 2,340 2,363

33.1 % (4.7)% (46.7)%

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.
(I) Actuarial valuations were performed biennially prior to July I, 1998

Schedule ofEmployer Contributions
(Thousands of Dollars)

Year Ended June 30

State Annual Required Contribution

Percentage Contributed

ERS

1996

$

271,342

100.0%

1997

282,249

100.0%

1998

286,794

100.0%

LRS

1996

$

164

100.0%

1997

159

100.0%

1998

164

126.0%

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.

A-89

- - - - - - - - - - State of Georgia - - - - - - - - - -
Required Supplemmtarv Information June 30, 1999
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 fair value of assets and the expected actuarial value of assets, based on the assumed valuation rate of return. The amount recognized each year is 20% of the difference between fair value and expected actuarial value.
Schedule ofEmployer Contributions The required employer contributions and percent of those contributions actually made are presented in the schedule. As the GJRS was created beginning July 1, 1998, no employer contribution trend information is available.
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 ofRetum Projected Salary Increases Post-Retirement Cost-of-Living Adjustment
(I) Includes inflation rate of3.50%

ERS

GJRS

LRS

June 30, 1998

July I, 1998

JundO, 1998

Entry Age

Entry Age

Unit Credit

Level percentage of pay, open Level percentage of pay, open Level dollar, open

9 years

14 years

40 years

5-year smoothed market

5-year smoothed market

5-year smoothed market

7.0% (I) 5.2% - 9.0% (I) None

7.0% (I) 5.5% (I) None

7.0% (I) n/a 3% annually

A-90

- - - - - - - - - State of Georgia---------
Required SupplemmtalV Informatim June 30, 1999

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
(b)

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 - aVcl

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%

6/30/98

27,894,985

28,798,984

903,999

96.9%

5,951,898

15.2%

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%

1998

710,409

100.0%

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.

A-91

- - - - - - - - - - State of Georgia - - - - - - - - - -
Required Supplementarv Information June 30. 1999

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 of return. 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 of the 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 ofRetum Projected Salary Increases Inflation Rate Post-Retirement Cost-of-Living Adjustment

June 30, 1998 Entry Age Level percentage of pay, open 8 years 5-year smoothed market
7.00% 3.25% - 6.00% 3.25%
3% annually

A-92

en Section
~ort on Compfiance and on qnterna[ Contro[ over g;inancia[ ~ortinB \Based on
anAudit 0fg;inancia[ Statements 9?erformed in Accordance with Government Auditing Standards

RUSSELL W. HINTON
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 GOVERNMENTAUDITING 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, 1999, and have issued our report thereon dated February 29,2000. 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 financial audits contained in 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 24% of the revenues of the internal service funds, 70% of the assets of the fiduciary funds and 100% of the pension trust funds revenues, and 5% 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 100% 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 98% of the revenues ofthe component unit fiduciary fund types. The financial statements ofthese 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 misstatement, 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 are required to be reported under Government Auditing Standards and which is described in the Financial Statement sections of the accompanying schedule of Findings and Questioned Costs.
(1) General Fixed Assets/Property Management Inadequacies in Operation of Property Management System Various Organizations

FS-40 1-99-0 1 FS-414-99-04 FS-427-99-01 FS-428-99"02 FS-440-99-0 1 FS-462-99-02 FS-467-99-01 FS-474-99-05 FS-484-99-02

FS-503-99-01 FS-528-99-02 FS-550-99-02 FS-590-99-01 FS-819-99-03 FS-820-99-0 1 FS-828-99-0 1 FS-83 7-99-01 FS-977-99-03

FS-8504-99-0 1 FS-8524~99-01 FS-8544-99-0 1 FS-8564-99-0 1 FS-85 84-99-01 FS-8604-99-0 1 FS-8664-99-0 1 FS-8724-99-0 1 FS-8764-99-01

FS-8804-99-0 1

Internal Control Over Financial Reporting In planning and performing our audit, we and other auditors considered the State of Georgia's internal control over fmancial 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 financial reporting that, in our judgment, could adversely affect the State of Georgia's ability to record, process, summarize and report fmancial data consistent with the assertions of management in the fmancial statements. The following reportable conditions are described in the Financial Statement sections of the accompanying schedule of Findings and Questioned Costs.
(l) Cash and Cash Equivalents Inadequate Accounting Procedures FS-474-99-01 - Department of Revenue Drawdown of Lottery Funds in Excess of Current Operating Needs FS-476-99-01 - Georgia Student Finance Commission

B-4

(2) Revenue/Receivables/Receipts Deficiencies in the State Revenue Collections Fund (Overall) FS-474-99-02 - Department of Revenue Deficiencies in the Income Tax Division Subsidiary Records FS-474-99-03 - Department of Revenue
(3) General Fixed AssetslProperty Management Inadequacies in Operation of Property Management System Various Organizations

FS-40 1-99-0 1 FS-414-99-04 FS-427-99-01 FS-428-99-02 FS-440-99-0 1 FS-462-99-02 FS-467-99-01 FS-474-99-05 FS-484-99-02

FS-503-99-0 1 FS-528-99-02 FS-550-99-02 FS-590-99-01 FS-819-99-03 FS-820-99-0 1 FS-828-99-0 1 FS-837-99-01 FS-977-99-03

FS-8504-99-0 1 FS-8524-99-0 1 FS-8544-99-0 1 FS-8564-99-0 1 FS-85 84-99-0 1 FS-8604-99-0 1 FS-8664-99-0 1 FS-8724-99-0 1 FS-8764-99-01

FS-8804-99-0 1

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 financial 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 financial 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.
(1) Revenue/Receivables/Receipts Deficiencies in the State Revenue Collections Fund (Overall) FS-474-99-02 - Department of Revenue Deficiencies in the Income Tax Division Subsidiary Records FS-474-99-03 - Department of Revenue
(2) General Fixed AssetslProperty Management Inadequacies in Operation of Property Management System Various Organizations

B-5

FS-40 1-99-01 FS-414-99-04 FS-427-99-01 FS-428-99-02 FS-440-99-0 1 FS-462-99-02 FS-467-99-01 FS-474-99-05 FS-484-99-02

FS-503-99-0 1 FS-528-99-02 FS-550-99-02 FS-590-99-0 1 FS-819-99-03 FS-820-99-0 1 FS-828-99-0 1 FS-837-99-01 FS-977-99-03

FS-8504-99-0 1 FS-8524-99-0 1 FS-8544-99-0 1 FS-8564-99-0 1 FS-8584-99-0 1 FS-8604-99-01 FS-8664-99-0 1 FS-8724-99-0 1 FS-8764-99-0 1

FS-8 804-99-01

This report is intended solely for the information and use of management, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
w~
R sell W. Hinton, CPA, CGFM State Auditor

February 29,2000

B-6

SectionC
. ~ort on Compfiance with ~'luirements Appfica&fe to each~ajor 9?rogram and on qnternaf
Controf o-ver Compfiance inA.ccordance with
ax.Cll Circufar.l\..-133

RUSSELL W. HINTON
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 REQUIREMENTS 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 described in the Us. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 1999. 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

97%

Student Financial Aid Cluster

84%

Research and Development Cluster

86%

$25,213,547 $117,295,362 $219,580,885

$216,507,004 $1,798,019,294
$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 ofthe 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 fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits a/States, 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, 98-6863 and N68786-98-D-1937-0001 of the U.S. Department of Defense as these contracts and all matters pertaining to them are classified by the U. S. Department ofDefense, 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, 98-6863 and N68786-98-D-1937-0001 by other auditing procedures.
As described in fmding numbers FA-533-99-01, FA-533-99-02, FA-533-99-03, FA-548-99-03, FA-841-9901 in the accompanying schedule of Findings and Questioned Costs, the State of Georgia did not comply with requirements regarding Eligibility that is applit;able 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 numbers FA-548-99-01, FA-548-99-05 in the accompanying schedule of Findings and Questioned Costs, the State of Georgia did not comply with requirements regarding Allowable Costs/Cost Principles and Equipment and Real Property Management 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

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, 1999. 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-824-99-0 I
Allowable Costs/Cost Principles
FA-503-99-02 FA-503-99-03
Davis-Bacon Act
FA-548-99-02
Eligibility
FA-415-99-01 FA-427-99-01 FA-427-99-02 FA-427-99-03 FA-440-99-01 FA-440-99-02 FA-548-99-04
Equipment and Real Property Management
FA-414-99-01 FA-427-99-04

Period of Availability of Federal Funds
FA-548-99-06
Procurement and Suspension and Debarment
FA-462-99-02
Reporting
FA-414-99-02 FA-462-99-01 FA-503-99-04 FA-503-99-05 FA-503-99-06 FA-503-99-07 FA-503-99-08 FA-509-99-0 1 FA-518-99-01 FA-5 18-99-03 FA-52 1-99-01 FA-521-99-02 FA-524-99-02 FA-527-99-01 FA-533-99-04 FA-533-99-05

Reporting continued
FA-533-99-06 FA-548-99-08 FA-548-99-09 FA-550-99-0 1 FA-918-99-01
Subrecipients Monitoring
FA-414-99-03 FA-415-99-02 FA-427-99-05
Special Tests and Provisions
FA-518-99-02 FA-521-99-03 FA-524-99-03 FA-533-99-07 FA-533-99-08 FA-548-99-10 FA-550-99-02

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 of the organizations mentioned previously is based solely upon the reports of the other auditors.
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.
c-s

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-824-99-01
Allowable Costs/Cost Principles
FA-503-99-02 FA-503-99-03 FA-548-99-0 1
Davis-Bacon Act
FA-548-99-02
Eligibility
FA-415-99-01 FA-427-99-01 FA-427-99-02 FA-427-99-03 FA-533-99-0 1 FA-533-99-02 FA-533-99-03 FA-440-99-01 FA-440-99-02 FA-548-99-03 FA-548-99-04 FA-841-99-01

Equipment and Real Property Management
FA-414-99-01 FA427-99-04 FA-548-99-05
Period of Availability of Federal Funds
FA-548-99-06
Procurement and Suspension and Debarment
FA-462-99-02
Reporting
FA-414-99-02 FA-462-99-01 FA-503-99-04 FA-503-99-05 FA-503-99-06 FA-503-99-07 FA-503-99-08 FA-509-99-01 FA-518-99-01 FA-518-99-03

Reporting continued
FA-521-99-01 FA-521-99-02 FA-524-99-02 FA-527-99-01 FA-533-99-04 FA-533-99-05 FA-533-99-06 FA-548-99-08 FA-548-99-09 FA-550-99-0 1 FA-918-99-01
Subrecipients Monitoring
FA414-99-03 FA-415-99-02 FA-427-99-05
Special Tests and Provisions
FA-518-99-02 FA-521-99-03 FA-524-99-03 FA-533-99-07 FA-533-99-08 FA-548-99-10 FA-550-99-02

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 of laws, 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 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, ofthe reportable conditions described above, we consider finding numbers FA-53399-01, FA-533-99-02, FA-533-99-03, FA-548-99-03, FA-841-99-01 to be material weaknesses.

C-6

This report is intended solely for the information and use of management, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

February 29,2000

R sell W. Hinton, CPA, CGFM State Auditor

C-7

en Section
g;indil1tJs and Questioned Costs .

- - - S ummar1 of Auditor's ~uCts - - -

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Summarv of Auditor's Results For the Fiscal Year Ended June 30, 1999

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-133, Section .51O(a)?

Yes

Identification of major programs:

CFDA Numbers
16.586 17.225 20.205 66.458 84.048 84.031 93.558
93.958 93.959

Name of Federal Program or Cluster Food Stamp Cluster Fish and Wildlife Cluster Violent Offender Incarceration and Truth in Sentencing Incentive Grants Unemployment Insurance JTPA Cluster Highway Planning and Construction Federal Transit Cluster Capitalization Grants for State Revolving Funds Student Financial Aid Cluster Vocational Education - Basic Grants to States Higher Education - Institutional Aid Temporary Assistance for Needy Families Childcare Cluster 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 - $20,887,754.00

Auditee Qualified as low-risk auditee

No

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g;inancia[ Statement
g;indlngs

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Filldings and Questioned Costs
For the Fiscal Year Elided JUlIe 30, 1999
FINANCIAL STATEMENT RELATED FINDINGS REQUIRED TO BE REPORTED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS

FINDING CONTROL NO.

ORGANIZATIONAL UNIT

GENERAL FIXED ASSETS/PROPERTYMANAGEMENT

FS-40 1-99-0 1

Administrative Services, Department of

FS-414-99-04

Education, Department of.

FS-427-99-01

Human Resources, Department of

FS-428-99-02

Community Affairs, Department of

FS-440-99-0 1

Labor, Department of

FS-462-99-02

Natural Resources, Department of

FS-467 -99-01

Corrections, Department of.

FS-474-99-05

Revenue, Department of

FS-484-99-02

Transportation, Department of.

Colleges and Universities

FS-503-99-0 1

Georgia Institute of Technology

FS-528-99-02

Clayton College and State University

FS-550-99-02

Southern Polytechnic State University

FS-590-99-01

Military College, Georgia

Technical Institutes

FS-819-99-03

West Georgia Technical Institute

FS-820-99-01

Albany Technical Institute

FS-828-99-0 1

Columbus Technical Institute

FS-837-99-01

Moultrie Area Technical Institute

FS-977 -99-03

Public Telecommunications Commission, Georgia

FS-8504-99-0 1

Northwest Georgia Regional Educational Service Agency

FS-8524-99-01

North Georgia Regional Educational Service Agency

FS-8544-99-0 1

Pioneer Regional Educational Service Agency

FS-8564-99-0 1

Metropolitan Regional Educational Service Agency

:

FS-8584-99-0 1

Northeast Georgia Regional Educational Service Agency

FS-8604-99-0 1

West Georgia Regional Educational Service Agency

FS-8664-99-0 1

Oconee Regional Educational Service Agency

FS-8724-99-0 1

Chattahoochee-Flint Regional Educational Service Agency

FS-8764-99-01

Heart of Georgia Regional Educational Service Agency

FS-8804-99-0 1

First District Regional Educational Service Agency

CASH AND CASH EQUIVALENTS

FS-474-99-01

Revenue, Department of

FS-47 6-99-01

Student Finance Commission, Georgia

REVENUES/RECEIVABLES/RECEIPTS

FS-474-99-02

Revenue, Department of

FS-474-99-03

Revenue, Department of

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D-9

-----------'--- State of GeorfJi'l----------
Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
FINANCIAL STATEMENT FINDINGS
DEPARTMENT OF ADMINISTRATIVE SERVICES
Finding Control Number: FS-401-99-01 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 following condition relating to inappropriate accounting practices was found to exist:
Equipment additions were not reconciled to the general ledger expenditure accounts.
In addition, six-hundred-fifty-eight (658) equipment items were selected to test the accuracy of the Department's property management records. These items contained a value of $6,365,130.08 out of a population of $162,925,938.08 and were selected for the purpose of locating the equipment as recorded in the inventory records. The following deficiencies were noted:
(1) One-hundred-sixty-three (163) items totaling $2,643,136.31 could not be located.
(2) Sixty-five (65) items were found in locations other than the location indicated in the equipment inventory records.
Also, during the physical inspection testing, twenty-nine (29) 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 as published by the Department of Administrative Services. 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.
DEPARTMENT OF EDUCATION
Finding Control Number: FS-414-99-04 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 and the Office of School Readiness in maintaining their State Property System and 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 FA414-99-01.
The Department and the Office are required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual as published by the Department of Administrative Services. The discrepancies identified were caused by the Department's and the Office's failure to follow guidelines for maintaining equipment inventories.
The Department and the Office should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with the State Property Management System Manual.
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Findings and Questioned Costs
For the Fiscal Year Elided JUlie 30. 1999
FINANCIAL STATEMENT FINDINGS
DEPARTMENT OF HUMAN RESOURCES
Finding Control Number: FS-427-99-01 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 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, fmding number FA-427-99-04.
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual as published by the Department of Administrative Services. 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 COMMUNITY AFFAIRS
Finding Control Number: FS-428-99-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in the Operation of Property Management System
Our examination included a limited review of the internal accounting controls utilized by the Department of Community Affairs in maintaining their property management system. The following conditions relating to inappropriate accounting practices were found to exist:
1. Equipment purchases totaling $277,137.76 in Fiscal Year 1999 were not added to the equipment inventory records in accordance with State property management policies.
2. Four (4) often (10) items could not be traced from the property records to the equipment item but remained on the property records in error. Three (3) of these items totaling $27,270.25 had proper documentation indicating that the items should have been deleted. The Agency stated the fourth (4th) item in the amount of $13,983.00 had been surplused but could not provide documentation to that effect.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with State property management policies.
DEPARTMENT OF LABOR
Finding Control Number: FS-440-99-01 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 Labor in maintaining their State Property System. The review also included testing the system for compliance with State laws and regulations and included the selection of four-hundred-ninety-five (495) equipment items to test the accuracy of the Department's property management records. These items contained a value of $1,708,207.26 out of a population of $38,954,041.06 and were selected for the purpose of locating the equipment as recorded in the inventory records. The following deficiencies were noted:
(1) Fifty (50) items totaling $132,311.62 could not be physically located. D-ll

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Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
FINANCIAL STATEMENT FINDINGS
(2) Two (2) items were located with incorrect decal numbers.
(3) Ninety-four (94) items located utilizing serial numbers did not have decal numbers attached.
Also, during the physical inspection testing, three (3) items totaling $4,016.00 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 as published by the Department of Administrative Services. 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 that equipment inventories are maintained in accordance with the State Property Management System Manual.
DEPARTMENT OF NATURAL RESOURCES
Finding Control Number: FS-462-99-02 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 Natural Resources in maintaining their property management system. This review also included testing the system for compliance with State laws and regulations and included the selection of two-hundred-eighty-seven (287) equipment items to test the accuracy of the Department's property management records. These items contained a value of $1,462,202.62 out of a population of $72,645,266.40 and were selected for the purpose of locating the equipment as recorded in the inventory records. The following deficiencies were noted:
(1) Three (3) items totaling $10,361.00 were surplused, but were not removed from the equipment inventory records.
(2) One (1) item of$4,709.00 was cannibalized, but was not removed from the equipment inventory records.
(3) Thirty-eight (38) items did not have decal numbers attached. However, items were located utilizing serial numbers or descriptions.
(4) Three (3) items totaling $4,015.45 were reported stolen, but were not removed from the equipment inventory records.
(5) Two (2) items totaling $6,750.00 were transferred to another location. The inventory records were not updated to reflect this change in location.
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual as published by the Department of Administrative Services. 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.
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Findings and Questioned Costs
For the Fiscal Year Elided JUlIe 30. 1999
FINANCIAL STATEMENT FINDINGS
DEPARTMENT OF CORRECTIONS
Finding Control Number: FS-467-99-01 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 Department of Corrections in maintaining their State Property System. The review also included testing the system for compliance with State laws and regulations. The following condition related to inappropriate accounting practices was noted:
1) Equipment inventory records were not updated for all additions. Testing of seventy-five (75) current year additions totaling $487,277.38 out of a population of $2,925,881.88 revealed five (5) current year equipment purchases totaling $90,652.30 that had not been entered onto the equipment inventory records as of June 30, 1999.
2) The testing further revealed that another current year addition for $2,455.00 was entered on the equipment inventory records at $1,414.19.
In addition, three-hundred-thirty-one (331) equipment items were selected to test the accuracy of the Department's property management records. These items contained a value of $1,562,081.40 out of a population of $87,431,225.09 and were selected for the purpose oflocating the equipment as recorded in the inventory records. It was noted that twenty (20) items totaling $36,955.80 could not be physically located.
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual as published by the Department of Administrative Services. 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 REVENUE
Finding Control Number: FS-474-99-01 CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures
Our examination included a review of the internal accounting controls and accounting procedures utilized by the Department of Revenue (Department) to provide for adequate internal control over assets of the Department. The following deficiencies and inappropriate accounting practices were found to exist:
1) The Department did not provide for adequate separation of employee duties in the performance of maintaining and reconciling six (6) bank accounts.
2) The General Fund Transfer Account was not reconciled to the appropriate accounts on an ongoing basis. Accounting errors, incorrect postings and bank statement cut-off dates not consistent with general ledger cut-off dates contributed to the discrepancies.
3) Bank reconciliations for twelve (12) of thirty-nine (39) bank accounts were not formally approved during the test months of February and June 1999.
4) The June 30, 1999, bank reconciliations were not prepared timely for the following four (4) bank accounts: Nations Bank - Payroll Account, Sun Trust - Revenue Collections Account, Nations BankInternational Registration Plan Account and Nations Bank - General Operating Account. In addition, a D-13

- - - - - - - - - - State of Georgia - - - - - - - - - -
Fil1dil1gs al1d Questiol1ed Costs For the Fiscal Year Ended June 30, 1999
FINANCIAL STATEMENT FINDINGS
review of subsequent period bank reconciliations indicated that as of December 30, 1999, no reconciliations had been prepared for six (6) accounts. Another seven (7) accounts had not been reconciled in a timely manner during the subsequent period.
5) Reconciling items identified during the bank reconciliation process were not corrected in a timely manner. A review of the bank reconciliations indicates that there were $3,352,220.13 in reconciling items dating from October 1995 that were not corrected as of June 30, 1999. In addition, reconciling items were inadequately documented and/or identified on seven (7) bank reconciliations.
6) At June 30, 1999, outstanding checks on various bank accounts totaling $5,973,120.19 remained outstanding in excess of six (6) months.
7) The balance per books for the Federal Retirees H. B. 90 account at June 30, 1999, was $1,442,075.42 and the balance per books for the Corporate Refunds account at June 30, 1999, was $29,596,942.64. The book balance for these two accounts includes many stale-dated checks which were written off during the year under review. The appropriate disposition of these funds has not been determined.
These deficiencies were a result of the Department's failure to adequately manage cash assets of the Department.
The Department should establish internal controls to ensure that employees' duties are adequately segregated and monthly bank statements are reconciled with the accounting records on a timely basis. The Department should also establish procedures to identify and appropriately account for outstanding and/or stale-dated checks. In addition, the Department should examine the necessity of each bank account in an effort to reduce the number of bank accounts.
Finding Control Number: FS-474-99-02 REVENUESIRECEIVABLESIRECEIPTS 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 a 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.
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Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
FINANCIAL STATEMENT FINDINGS
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, stale-dated 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 fmancialloss to the State.
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 subsidiary ledgers and associated records.
4) 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.
5) 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 "Refunds 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.
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Rndings and Questioned Costs For the Fiscal Ycar Ended June 30, 1999
FINANCIAL STATEMENT FINDINGS
Finding Control Number: FS-474-99-03 REVENUES/RECEIVABLESIRECEIPTS 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:
I) 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 in regard to individual conftrmation 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 of the 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.
Finding Control Number: FS-474-99-05 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 found to exist:
1) Equipment purchases totaling $3,117,235.93 were not promptly added to the property inventory system and were not included in the property inventory records at June 30, 1999. Many of these purchases were in excess of six months old.
2) The Procurement and Services Division does not ensure that the prior year ending inventory balance plus the year end report reflecting additions, changes and deletions, also known as the Transaction History File Report, (PROP 8113) reconciles with the Agency Inventory Report (PROP 8034). At ftscal year end, an
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Findings and Questioned Costs For the Fiscal Year Ended June 30, 1999
FINANCIAL STATEMENT FINDINGS
unreconcilable variance of $1,114,207.53 existed between the prior year ending inventory balance, the Transaction History File Report and the Agency Inventory Report.
3) Forty-one (41) additions to the property inventory records were selected to test the validity of all additions made to the property inventory records. These additions totaled $2,266,229.00 out of a population of$3,977,015.75. Two (2) equipment items totaling $21,305.00 could not be located.
4) A review of additions to the Transaction History File disclosed an overstatement of $1,402,802.00. Sixteen (16) items were posted at the total invoice cost rather than a per unit cost. In addition, two (2) inventory additions were actually 200 computers valued at $938.00 per unit. The property inventory changes report reflected corrections to some of these posting errors; as a result, an unresolved variance of $191,930.00 existed.
5) Three (3) items totaling $14,214.00 were listed on the deletions report in error.
In addition, fifty-eight (58) equipment items were selected to test the accuracy of the Department's property management records. These items contained a value of$I,233,280.00 out ofa population of $16,892,400.61 and were selected for the purpose oflocating the equipment as recorded in the inventory records. Twenty-three (23) items totaling $55,784.53 could not be located.
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual as published by the Department of Administrative Services. 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.
GEORGIA STUDENT FINANCE COMMISSION
Finding Control Number: FS-476-99-0l CASH AND CASH EQUIVALENTS Drawdown of Lottery Funds in Excess of Current Operating Needs
Our examination noted that the Georgia Student Finance Commission requested and received Lottery for Education appropriation allotments in excess of current operating needs periodically throughout the fiscal year. As a result, the Commission earned interest totaling $2,512,009.10. Section 50-17-51(c) of the Official Code of Georgia Annotated designated the Director of the Office of Treasury and Fiscal Services (OTFS) as the cash management officer for the State. In this capacity, the Director is responsible for the efficient and effective utilization of the State's cash resources. The Commission's practice of drawing Lottery funds from OTFS in excess of current operating needs limits the ability of the Director of OTFS to maximize investment earnings for the State's Lottery Funds.
Commission management should develop and implement policies and procedures to minimize the amount of time between the drawdown of the appropriation allotment and the cash disbursements of Lottery funds.
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- - - - - - - - State of GeorBia--------
Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
FINANCIAL STATEMENT FINDINGS
DEPARTMENT OF TRANSPORTATION
Finding Control Number: FS-484-99-02 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 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:
(1) Testing of current year additions to inventory revealed five (5) items totaling $35,027.72 were not included on the inventory records, one (1) item for $457,425.00 was entered twice on the records and two (2) items were entered incorrectly which resulted in an overstatement of$100,000.00.
(2) Testing of current year deletions from inventory revealed one (1) item for $24,435.00 was deleted in error, one (1) item was deleted for $120,000.00 in excess of its recorded cost and (1) item for $18,228.00 was deleted, but could not be supported by documentation for authorization of disposal.
In addition, two-hundred-twenty-three (223) equipment items were selected to test the accuracy of the Department's property management records. These items contained a value of $917,372.49 out of a population of $43,965,029.21 and were selected for the purpose of locating equipment as recorded in the inventory records. The following deficiencies were noted:
(1) One (1) item for $2,392.00 could not be located.
(2) The value of one (1) item was overstated on the contracts by $10,000.00.
The Department is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual as published by the Department of Administrative Services. 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 INSTITUTE OF TECHNOLOGY
Finding Control Number: FS-503-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
During the performance of equipment inventory sampling procedures, it was noted that the Institute carried $15,769,704.92 of items listed as missing on its equipment inventory records. Further review revealed that $12,036,443.44 of these equipment items had been reported missing for one inventory cycle with the remaining $3,733,261.48 reported missing for two or more successive equipment inventory cycles. An inventory cycle is normally one year. Sampling procedures performed on twenty-five (25).ofthe items identified as missing revealed the following:
(1) Seventeen (17) items were actually located.
(2) Three (3) items had been surplused by the Institute.
(3) One (1) item was traded in for other equipment.
(4) Four (4) items were actually missing. D-18

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Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
FINANCIAL STATEMENT FINDINGS
Based on the results of this testing, it appears that the majority of the equipment items reported as missing are improperly classified. This occurred because the Institute failed to take an accurate and complete inventory of equipment and also failed to follow-up on items reported as missing. The Institute is implementing procedures to correct these problems in the equipment inventory process.
CLAYTON COLLEGE AND STATE UNIVERSITY
Finding Control Number: FS-528-99-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
The internal accounting control procedures for the property management system utilized by Clayton College and State University were not adequate to safeguard assets. The following deficiencies were noted regarding the University's records for equipment inventories:
(1) A variance of $39,974.07 remained unidentified between the University's general ledger and the subsidiary equipment inventory records.
(2) A variance of $40,129.26 remained unidentified between the equipment additions and general ledger expenditure accounts.
(3) Additions totaling $137,363.91 recorded at June 30, 1998, as accounts payable adjustments were not properly updated for description, serial number, decal number, acquisition date and cost, and reference to physical location.
These deficiencies occurred because of management's failure to adequately monitor the subsidiary equipment inventory records. 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.
SOUTHERN POLYTECHNIC STATE UNIVERSITY
Finding Control Number: FS-550-99-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
For the year under review, equipment inventory tests of five (5) individually significant items and seventy-five (75) randomly selected items were utilized to determine the accuracy and validity of the University's equipment inventory records. The results of our testing procedures disclosed the following deficiencies:
(1) Two (2) items could not be located.
(2) Eighteen (18) items had been surplused but were not removed from the equipment inventory records.
(3) Seven (7) items were designated as stolen but were not removed from the equipment inventory records.
(4) Ten (10) items did not have adequate descriptions in the inventory records.
(5) Five (5) items had no audit trail to the original invoice.
In addition, the equipment amount reflected on the University's financial statements was not reconciled to the accounting records.
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Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
FINANCIAL STATEMENT FINDINGS
It was also noted that a complete physical inventory of equipment had not been taken by the University since Fiscal Year 1997.
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 MILITARY COLLEGE
Finding Control Number: FS-590-99-01 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 may not be limited to (1) acquisition date, (2) acquisition cost, (3) estimated replacement cost, (4) location and description, and (5) identifying number. Detailed records should be maintained for all deletions and additions to the Plant Fund. The College should also implement procedures to periodically reconcile physical inventory counts of fixed assets to the subsidiary records.
WEST GEORGIA TECHNICAL INSTITUTE
Finding Control Number: FS-819-99-03 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 June 30, 1999 PROPS report 8034 (Property Records Inventory Report in Decal Sequence) contained several equipment items purchased in a prior year that appeared to be materially overstated in regard to acquisition cost. This overstatement of acquisition cost relates to computer equipment and is estimated to be at least $522,560.00.
(2) The Institute did not perform a formal reconciliation of activity recorded on FACS (Financial Accounting and Control System) to PROPS (property Records System).
West Georgia Technical Institute should establish controls to ensure that equipment inventories are maintained in accordance with the State Property Management System Manual. In addition, accounting personnel should review the inventory records to determine the proper valuation of equipment items.
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Findings and Questioned Costs
For the Fiscal Year Elided JUlIe 30, 1999
FINANCIAL STATEMENT FINDINGS
ALBANY TECHNICAL INSTITUTE
Finding Control Number: FS-820-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
For the year under review, an examination of the equipment inventory records for the Institute's general fixed assets revealed the following deficiencies:
(1) Fifty (50) equipment items were selected to test the accuracy of the Institute's general fixed asset records. These items contained a value of $1,460,109.91 and were selected for the purpose of locating the equipment as recorded in the inventory records. Of the items tested, two (2) items totaling $4,094.00 were not located.
(2) One (1) item physically on hand could not be traced back to the inventory records.
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.
COLUMBUS TECHNICAL INSTITUTE
Finding Control Number: FS-828-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures
The internal accounting control procedures for the property management system utilized by Columbus Technical Institute were not adequate. The following deficiencies were noted regarding the Institute's records for equipment inventories:
(1) The July 1, 1998, PROPS 8034AG report (Property Records System Inventory Report In Decal Sequence) plus activity reflected in the PROPS 8l13RA report (Property Records System Transaction History File Report) did not reconcile to the June 30, 1999, PROPS 8034RA report (Property Records System Inventory Report In Decal Sequence).
(2) Equipment activity reflected in the FACS (Fiscal Accounting Control System) was not reconciled to the PROPS (Property Records System).
These deficiencies occurred because of management's failure to adequately monitor the subsidiary equipment inventory records. Columbus Technical Institute should establish controls to ensure that equipment inventories are maintained in accordance with the State Property Management System Manual.
MOULTRIE AREA TECHNICAL INSTITUTE
Finding Control Number: FS-837-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures
An examination of the Institute's General Fixed Assets Account Group revealed that current year equipment inventory purchases in the amount of $599,717.29 and prior year inventory adjustments in the net amount of $5,985.98 were not updated to the Property Records System (PROPS).
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Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
FINANCIAL STATEMENT FINDINGS
The Institute is required to maintain equipment inventories in accordance with provisions of the State Property Management System Manual. The condition above was caused by the Institute's failure to follow guidelines for maintaining equipment inventories.
The Institute should establish the necessary procedures to ensure that equipment inventory records are maintained in accordance with provisions of the State Property Management System Manual.
GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION (*)
Finding Control Number: FS-977-99-03 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Controls over General Fixed Assets/Property Management
Condition - The general fixed asset group is carried in the financial statements at approximately $89,000,000. During 1999, the following conditions existed relating to the general fixed assets of the Commission managed through the State of Georgia Property Management System:
1. Certain equipment items that were salvaged or cannibalized during 1999 and prior years were not deleted from inventory reports at the fiscal year end.
2. Certain equipment purchased during 1999 and prior years was not recorded on the inventory reports at the fiscal year end.
3. A large asset acquisition, made up of numerous, significant, individual items of equipment, was purchased through a turn-key contract and recorded in the inventory as one line item with one identifying decal number.
Criteria - The Commission is required to maintain equipment inventories in accordance with provisions of the State of Georgia Property Management System Manual. The Commission utilizes a general fixed asset group to account for property. G.A.S.B. Cod. sec. 1400 requires the capitalization of tangible assets that provide benefit for more than one year.
Effect - The effects of the above conditions at June 30, 1999 follow:
1. Equipment with costs of approximately $7,100,000 is on the inventory records but has been discarded or used for parts.
2. Equipment costs of approximately $1,900,000 was purchased in prior years and not added to the inventory records.
3. The purchase of a television and radio broadcast facility, representing approximately 1,400 individually significant pieces of equipment with a cost of approximately $16,000,000, is recorded as one inventory item under decal number 10055.
Cause - There is not a standard operating procedure used by the various departments to address the removal of salvage items from the inventory records. The staff uses parts from obsolete and damaged equipment to repair equipment. The addition of new inventory to the system is triggered by assignment of a fixed asset account code at the time of purchase. Fixed assets purchased through leases or personal service contracts are not always identified as fixed assets because the assigned account code is other than a fixed asset code. Equipment purchased under negotiated lump-sum contracts was not itemized, inventoried, and recorded by identifying numbers. The Commission has not taken an entity-wide physical inventory count of its existing equipment to identify type, amount, and location of equipment owned.
Recommendation - The Commission should design and implement procedures to account for general fixed assets that insure compliance with the State Property Management System Manual and safeguard the assets. A professional equipment inventory and appraisal service may be beneficial in achieving the most efficient and accurate results.
(*) THIS ORGANIZATIONAL UNIT WAS AUDITED BY OTHER AUDITORS
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Rndings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
FINANCIAL STATEMENT FINDINGS
NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Nwnber: FS-8504-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The Northwest Georgia Regional Educational Service Agency did not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the 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.
NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Nwnber: FS-8524-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The North Georgia Regional Educational Service 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 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 Nwnber: FS-8544-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The Agency did 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 Nwnber: FS-8564-99-01 GENERAL FIXED ASSETS/PROPERTY 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 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
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Rndings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
FINANCIAL STATEMENT FINDINGS
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.
NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8584-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The Northeast Georgia Regional Educational Service 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 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.
WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8604-99-01 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 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.
OCONEE REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8664-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The Oconee Regional Educational Service Agency did 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-8724-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The Chattahoochee-Flint Regional Educational Service 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
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Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
FINANCIAL STATEMENT FINDINGS
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.
HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8764-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group The Heart of Georgia Regional Educational Service 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 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 many 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-8804-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group The First District Regional Educational Service Agency did 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.
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(3Federa[~vvards
(3Findings and Questioned Costs

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Federal Awards Findings and Questioned Costs Table of Contents
For the Fiscal Ycar Erlded JUrle 30, 1999

ENTITY CODE

ORGANIZATIONAL UNIT

PAGE NO.

414

Education, Department of

415

Technical and Adult Education, Department of

427

Human Resources, Department of.

440

Labor, Department of

462

Natural Resources, Department of

Colleges and Universities

503

Georgia Institute of Technology

509

Georgia State University

518

University of Georgia

521

Albany State University

524

Armstrong Atlantic State University

527

Augusta State University

533

Fort Valley State University

548

Savannah State University

550

Southern Polytechnic State University

State Technical Institutes

824

Augusta Technical Institute

841

Savannah Technical Institute

918

Higher Education Assistance Corporation, Georgia

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D-40 D-45 D-46 D-47 D-49 D-50 D-51 D-57 D-62
D-63 D-64 D-65

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Federal Awards Findings and Questioned Costs For the Rscal Year Ended June 30. 1999
FEDERAL AWARDS FINDINGS
DEPARTMENT OF EDUCATION
Finding Control Number: FA-414-99-01 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 and the Office of School Readiness in maintaining their property management system and 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 $723,012.59 at June 30, 1999.
2. Twelve (12) additions for current year equipment purchases were updated incorrectly onto the equipment inventory records by an amount of $89,319.64 (net). Five (5) of those items were related to the Department of Education in the amount of $1,074.46 (net). The remaining seven (7) items were related to the Office of School Readiness in the amount of$88,245.18 (net).
3. Equipment inventory items at the Office of School Readiness were deleted from the inventory system without adequate supporting documentation or proper authorization. Testing of current year deletions revealed five (5) items that had been deleted from the inventory records without supporting documentation in the amount of$23,410.00.
4. Four (4) 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 $1,678.92 (net). These same equipment items were reported in the prior year Management Report as being recorded incorrectly.
In addition, five-hundred-ten (510) equipment items were selected from certain locations to test the accuracy of the Department's property management records. These items contained a value of $1,457,963.30 out of a population of $9,053,011.08 at the tested locations and were selected for the purpose of locating the equipment as recorded in the inventory records. The general fixed assets of the Department amounted to $46,213,480.84. The following deficiencies were noted:
1. Eleven (11) items totaling $35,490.00 could not be located.
2. Thirteen (13) items were found in locations other than the location indicated in the equipment inventory records.
3. Four (4) items were found that were recorded as missing on the inventory records.
4. Ten (10) items were recorded on the inventory listing as either missing, intransit or damaged, but there was no supporting documentation on file.
5. Three (3) items were located by the description on the inventory records but no decal number was found on the equipment.
6. One item was recorded on the inventory records with an incorrect description on the equipment.
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Federal Awards Rndings and Questioned Costs
For the Fiscal Year Erlded JUrle 30, 1999

FEDERAL AWARDS FINDINGS

Also, during the physical inspection testing, twenty (20) items of equipment were located which were not included in the equipment inventory records.

The Department and Office are 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 and the Office's failure to follow guidelines for maintaining equipment inventories.

The Department and Office 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 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 Affected Programs:
u. S. Department of Agriculture
U. S. Department of Education

Finding Control Number: FA-414-99-02 REPORTING Financial Status Report Not Reconciled to Accounting Records

Our examination included a review of the Financial Status Report (SF-269) submitted by the Department of Education. Amounts reported on the Financial Status Report submitted by the Department to the U. S. Department of Education for both the 1997 and 1998 award year did not agree with the accounting records as indicated below:

Financial Status Report Item

Accounting Records

Difference

1997 Award V243A60081 Tech-Prep Education

$2,914,531.00

$2,923,445.40

$ 8,914.40

1998 Award V048A70010 Local Grants State Administration Single Parent & Homemaking State Leadership V243A70081 Tech-Prep Education

$9,891,987.00 $ 587,741.00 $ 503,198.00 $ 774,342.00
$ 906,422.00

$9,894,467.71 $ 590,586.44 $ 507,445.67 $ 778,129.50
$ 968,749.93

$ 2,480.71 $ 2,845.44 $ 4,247.67 $ 3,787.50
$ 62,327.93

Federal Regulations (34 CFR 400.10 (b) (2)) requires the Department to ensure that fmancia1 information reported is accurate and reconciled to the accounting records. The Department should implement procedures to ensure that the Financial Status Report is accurately completed and supported by the accounting records. Detailed reconciliations should be prepared for any adjusted amounts and maintained as a part of the supporting documentation.
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Federal Awards Findings and Questioned Costs For the Fiscal Year Ended JUlIe 30, 1999
FEDERAL AWARDS FINDINGS
Major Federal Program/Award Affected:
u. S. Department of Education
Vocational Education - Basic Grants to States - CFDA No. 84.048
Federal Agencies With Other Affected Programs:
u. S. Department of Education
Finding Control Number: FA-414-99-03 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, 1998. Of the 548 subrecipients identified on the tracking documents, 346 had not submitted their audits within the nine 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 346 audits not submitted by the due date indicated that all but one had been submitted by January 13, 2000. It was noted during our examination that the Department of Education and the Office of School Readiness utilized a program review staff for interim compliance reviews of all subrecipients in accordance with the provisions ofOMB Circular A-133.
Major Federal Program/Award Affected:
U. S. Department of Education Vocational Education - Basic Grants to States - CFDA No. 84.048
Federal Agencies With Other Affected 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
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
Finding Control Number: FA-415-99-01 ELIGIBILITY Failure to Award Grants on a Competitive Basis as Required Vocational Education - Basic Grants to States (CFDA 84.048)
Our examination included a review of the procedures utilized by the Department of Technical and Adult Education (DTAE) to award grants to subrecipients for the (1) single parents, (2) displaced homemakers and (3) single pregnant women programs. According to 34 CFR sections 403.l3(a)(14) and 403.80, these grants "must be allocated on a competitive basis". However, for the year under review, our testing revealed that DTAE predetermined funding levels for subrecipients instead of distributing the funds on a competitive basis.
This noncompliance occurred because management was unaware of the requirement concerning the awarding of grants on a competitive basis.
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Federal Awards Findings and Questioned Costs For the Fiscal Year Ended June 30, 1999
FEDERAL AWARDS FINDINGS
DTAE should implement procedures to ensure that grants are awarded to subrecipients in accordance with Federal regulations.
Finding Control Number: FA-415-99-02 SUBRECIPIENT MONITORING Inadequate Internal Controls and Compliance Deficiencies
For the year under review, internal control and compliance testing performed on Subrecipient Monitoring requirements revealed deficiencies in the following areas:
(1) The Department of Technical and Adult Education (DTAE) failed to have any subrecipient monitoring procedures in place for 1996 and 1997 grant award recipients of the Public Library Services funds. DTAE failed to request or receive any corrective action plans from subrecipients of the Public Library Services Program for the 1996 and 1997 award years.
(2) DTAE failed to properly follow-up on four fmdings reported in the Statewide Single Audit Report for 1998 relating to the improper use of Vocational Education - Basic Grants to States funds.
(a) In three fmdings, expenditures of Vocational Education funds to support Student Financial Aid office operations were questioned. The Institutes involved were instructed that DTAE should contact the U.S. Department of Education (USDOE) to resolve the questioned costs of$101,688.54. DTAE has yet to contact USDOE regarding resolution of these questioned costs.
(b) In a fourth fmding, DTAE appeared to exceed its authority concerning the resolution of a fmding dealing with excessive compensation paid to an mstructor using Vocational Education funds. According to the details of the fmding, an instructor of one Technical Institute received $5,872.00 in unallowable overtime and holiday compensation. DTAE issued a letter dated January 11, 2000, resolving this fmding without requiring the institute to provide any documentation substantiating the validity of the additional compensation paid. DTAE also failed to contact USDOE regarding resolution of this questioned cost.
These situations occurred because management was unaware of all the Federal requirements concerning the monitoring of subrecipients.
Management should familiarize themselves with the Federal regulations dealing with the Subrecipient Monitoring compliance requirement in order to develop an adequate internal control structure consisting of procedures designed to provide for the achievement of compliance objectives for all Federal grants awarded. DTAE should contact the grantor agency in regard to the resolution of prior year fmdings and questioned costs.
Federal Programs/Awards Affected:
U. S. Department of Education Vocational Education - Basic Grants to States (CFDA 84.048) Public Library Services (CFDA 84.034)
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Federal Awards Rl1dil1gs al1d Questiol1ed Costs
For the Fiscal Year Ended June 30, 1999
FEDERAL AWARDS FINDINGS
DEPARTMENT OF HUMAN RESOURCES
Finding Control Number: FA-427-99-01 ELIGIBILITY Deficiencies in File Maintenance Temporary Assistance to Needy Families (CFDA 93.558) Questioned Cost: $11,525.00
Our examination included a review of two-hundred-twenty-six (226) benefit transactions from the Temporary Assistance to Needy Families Program (TANF) at certain county Department of Family and Children Services (DFACS) offices to determine if benefit payments were made within program guidelines. The following deficiencies were noted in the files presented for review:
1. Four (4) files did not include required social security numbers.
2. Seven (7) files did not document that applicant identification had been verified by DFACS staff
3. Ten (10) files did not contain document interview of applicant.
4. Six (6) files did not have a signed Application for Assistance in their file.
5. Eighteen (18) files did not contain Form 297A, Rights and Responsibilities, prior to benefit payments being made to recipients.
6. Eleven (11) files did not contain an Eligibility Determination Document prior to benefit payments being made to recipients.
7. Twenty-five (25) files did not contain an Expense Statement prior to benefit payments being made to recipients.
8. One (1) file did not contain evidence of verification of alien status.
9. Two (2) files did not contain documentation whether applicant had received TANF in another state.
10. Four (4) files did not contain a maximum timelbenefit calculation for applicants who had received benefits in another state.
11. Ten (10) files did not contain Form 138 Cooperation with Child Support Enforcement.
12. Eight (8) files contained evidence of failure to cooperate with Child Support Enforcement, however no action was taken to reduce benefits as required.
13. Fourteen (14) files did not contain required immunization documentation for preschool age children.
14. Nine (9) files did not contain documentation of prenatal care for applicants who were pregnant at time of application.
15. Twenty-one (21) files did not contain a Personal Responsibility Plan.
16. Twenty-four (24) files did not contain a Personal Work Plan.
17. Seven (7) files did not contain Income and Eligibility Verification System documentation.
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Federal Awards Findirlgs and Questioned Costs
For the Fiscal Year Ended JUlIe 30, 1999
FEDERAL AWARDS FINDINGS
18. Two (2) files did not contain evidence ofrequired reviews.
The total known questioned costs for the above errors is $2,995.00. In addition, three (3) files could not be located for our review. The total amounts paid to these recipients for the year under review was $8,530.00.
These errors were caused by DFACS management's failure to ensure that information required by the Department ofHurnan Resources "Economic Support Services Manual" were included and maintained in client files at the county Department of Family and Children Services offices.
Failure to properly maintain client files 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-427-99-02 ELIGIBILITY Deficiencies in File Maintenance Child Care Cluster
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: $8,470.00
Our examination included a review of two-hundred-thirty-three (233) benefit transactions from the Child Care Program at certain county Department of Family and Children Services (DFACS) offices to determine if benefit payments were made within program guidelines. The following deficiencies were noted in the files presented for review:
1. One (1) file was coded to UAS Code 535 (Transitional Child Care Benefits) on Form 77, Child Care Certificate, but was coded to UAS Code 544 (Child Care Block Grant) on the payment voucher.
2. One (1) file did not include required social security numbers on Form 77 which resulted in known questioned costs of $360.00.
3. One (1) file did not include a Form 77 signed by the caseworker which resulted in known questioned costs of$210.00.
4. One (1) file indicated that the case was closed, however benefits were paid in the amount of$I,213.00.
5. One (1) benefit of $730.00 revealed that the fee to be paid by client was incorrectly assessed.
6. One (1) file did not document client fee assessment.
7. Two (2) files did not contain Form 62, Disposition and Parent Information Child Care Services.
8. Two (2) files did not contain Form 60, Application for Child Care Services. Income verification could not be determined for these files which resulted in known questioned costs of $408.00.
9. One (1) file did not have evidence of employment verification or school attendance which resulted in known questioned costs of$765.00.
10. Six (6) files could not be located for our review which resulted in known questioned costs of $4,784.00.
11. One (1) file did not contain a Form 77, Child Care Certificate, which resulted in known questioned costs of$264.00.
D-35

- - - - - - - - - - State of GeorBia - - - - - - - - - -
Federal Awards Findings and Questioned Costs For the Fiscal Year Ended June 30. 1999
FEDERAL AWARDS FINDINGS
The total questioned costs associated with certain of these case files could not be readily detennined due to the method of recording child care payments. However, the likely questioned costs are believed to exceed $10,000.00.
These errors were caused by DFACS management's failure to ensure that information required by the Department of Human Resources "Childcare and Parent Services Manual" were included and maintained in client files at the county Department of Family and Children Services offices.
Failure to properly maintain client files can result in direct material effects on the fmancial 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 detennination is included in the file.
Finding Control Number: FA-427-99-03 ELIGIBILITY Deficiencies in File Maintenance Food Stamp Cluster
Food Stamps (CFDA 10.551) State Administrative Matching Grants for Food Stamp Program (CFDA 10.561) Questioned Cost: $12,803.00
Our examination included a review of seventy-one (71) benefit transactions from the Food Stamp Program at certain county Department of Family and Children Services (DFACS) offices to detennine if benefit payments were made within program guidelines. The following deficiencies were noted in the files presented for review:
1. One (1) file did not include required social security numbers.
2. Six (6) files did not document that applicant identification had been verified by DFACS staff.
3. Four (4) files did not contain documentation of applicant interview.
4. Two (2) benefit payments totaling $452.00 were paid to recipients who did not have a signed Application for Assistance in their file.
5. Twelve (12) files did not contain Form 297A, Rights and Responsibilities, prior to benefit payments being made to recipients.
6. Eight (8) files did not contain an Eligibility Detennination Document prior to benefit payments being made to recipients.
7. Fifteen (15) files did not contain an Expense Statement prior to benefit payments being made to recipients.
8. Four (4) earned income files did not show evidence of supervisory review.
9. One (1) benefit was paid for $95.00 above the maximum allowed for the household size indicated in the case file.
In addition to the above, four (4) files could not be located for our review. The total amounts paid to these recipients for the year under review was $12,256.00.
These errors were caused by DFACS management's failure to ensure that information required by the Department of Human Resources "Economic Support Services Manual" were included and maintained in client files at the county Department of Family and Children Services offices.
D-36

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
FEDERAL AWARDS FINDINGS
Failure to properly maintain client files can result in direct material effects on the fmancial 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-427-99-04 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 350 items at certain locations for testing the accuracy of the Department's general fixed asset records. The sample items contained a value of $1,902,923.47 out of a population of $30,160,356.72 at the tested locations and were selected for the purpose of locating the equipment. Total general fixed assets of the Department amounted to $164,570,087.59. The following deficiencies were noted:
1. One hundred and four (104) items totaling $316,507.32 could not be physically located.
2. Fifty-one (51) items totaling $140,233.90 were surplused, but were not removed from the equipment inventory records.
3. Eleven (11) items located utilizing serial numbers did not have decal numbers attached.
4. Eight (8) items were located with the wrong decal attached.
5. Three (3) items totaling $4,671.71 were documented as missing or stolen, but were not included in the missing or stolen category 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) and the State Property 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 to ensure that equipment inventories are maintained in accordance with provisions of OMB's Common Rule and the State Property Management System Manual.
Major Federal Programs/Awards Affected:
u. S. Department of Agriculture
Food Stamps - CFDA 10.551/561 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
Finding Control Number: FA-427-99-05 SUBRECIPIENT MONITORING Subrecepient Audit Reports Not Reviewed Within Required Time Period Community Mental Health Services Block Grant (CFDA 93.958) Substance Abuse Block Grant (CFDA 93.959)
Our examination included a review of the status of subrecipient audit reports received by the Department of Human Resources Office of Audits for the period under review. Thirteen (13) subrecipients were selected to determine if reports had been received and that desk reviews had been performed in a timely manner. All had submitted a fiscal 1998 report, however, no desk reviews had been performed on any of the subrecipient reports as of the date of our review.
D-37

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999

FEDERAL AWARDS FINDINGS

Management should implement procedures to ensure that subrecipient reports are reviewed in a timely manner and that deficiencies are resolved within six months after receipt of the subrecipient's report.

DEPARTMENT OF LABOR

Finding Control Number: FA-440-99-01 ELIGIBILITY Inadequate Documentation to Support Eligibility Determinations Employment and Training Assistance - Dislocated Workers (CFDA 17.246) Job Training Partnership Act (CFDA 17.250) Amount: $285.00

The responsibility for eligibility determination for the Employment and Training Assistance - Dislocated Workers and Job Training Partnership Act rests with the administrative agents of each of the sixteen (16) Service Delivery Areas (SDA) 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.

Utilizing a numerical precision sample, the files of participants emolled during the period of May 1, 1998 through April 30, 1999 were examined to determine if established eligibility criteria had been met. From a total of 26,013 newlyemolled participants, an examination of 403 files disclosed the following:

Job Training Partnership Act

One (1) file could not be located to verify compliance with eligibility determination

$285.00

A projection of the error to the total population resulted in likely questioned costs in excess of $10,000.00. The error was caused by the administrative agent's failure to ensure that client files were properly maintained at their office. Care should be taken to ensure that all client files can be located.

Finding Control Number: FA-440-99-02 ELIGIBILITY Improper Benefit Payments Unemployment Insurance (CFDA 17.225) Questioned Costs: $399.00

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 two-hundred-thirty (230) checks containing a value of $54,528.00 was selected to determine whether benefit payments were made within program guidelines. A total of 1,414,322 unemployment benefit checks were written during the fiscal year and represented a dollar value of $259,267,343.00 which resulted in an average benefit check of approximately $183.00. Our examination revealed the following:

(1) One (1) check for $244.00 was written to a claimant whose separation form reflected that the claimant had resigned.

(2) One (1) check for $155.00 was written to a claimant that lacked proper weekly certification.

These situations made both claimants ineligible for unemployment insurance benefits. A projection of these errors to the total population resulted in likely questioned costs in excess of$lO,OOO.OO. These errors were caused by mistakes made by claim examiners in determining eligibility for Unemployment Insurance benefits.

D-38

---------- State of Georgia ----------
Federal Awards Findings and Questioned Costs
For the Fiscal Year Elided JUlie 30, 1999
FEDERAL AWARDS FINDINGS
Failure to properly determine eligibility of claimants resulted in improper expenditures by the Department. The Department of Labor should ensure that established procedures are followed in determining whether claimant eligibility is within program guidelines.
DEPARTMENT OF NATURAL RESOURCES
Finding Control Number: FA-462-99-01 REPORTING Financial Status Reports (SF-269) Not Filed Fish and Wildlife Cluster
Sport Fish Restoration - CFDA No. 15.605 Wildlife Restoration - CFDA No. 15.611
During the year under review, internal controls were not in place to ensure that the Financial Status Reports (SF-269) for the Fish and Wildlife Cluster were prepared and filed on a timely basis.
Title 43, Part 12 of the Code of Federal Regulations requires that grantees submit Financial Status Reports (SF-269) annually to the Federal Grantor within 90 days after the grant year. Final reports are due within 90 days after the expiration or termination of grant support.
The Financial Status Reports (SF-269) for the Fish and Wildlife Cluster were due to be filed by September 30, 1999. After a request by the auditors to review these reports, an extension through December 31, 1999 was requested by the Department of Natural Resources and approved by the U. S. Department of the Interior.
The Department of Natural Resources should implement controls and procedures to ensure that all Financial Status Reports (SF-269) are prepared and filed by the due date.
Finding Control Number: FA-462-99-02 PROCUREMENT, SUSPENSION AND DEBARMENT Inadequate Internal Controls and Compliance Deficiencies Fish and Wildlife Cluster
Sport Fish Restoration - CFDA No. 15.605 Wildlife Restoration - CFDA No. 15.611
Internal control and compliance testing procedures performed on the Fish and Wildlife Cluster Program revealed the following deficiencies relating to Procurement, Suspension and Debarment procedures:
(1) 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.
(2) Testing performed on contracts revealed that the Department did not require contractors to submit suspension or debarment certifications as required.
Management should familiarize themselves with Federal regulations dealing with the Fish and Wildlife Cluster Program in order to develop adequate internal control procedures to ensure compliance with applicable Procurement, Suspension and Debarment regulations.
D-39

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Fiscal Year Ef1ded JUf1e 30. 1999
FEDERAL AWARDS FINDINGS
GEORGIA INSTITUTE OF TECHNOLOGY (*)
Finding Control Number: FA-503-99-02 ALLOWABLE COSTS/COST PRINCIPLES - RESEARCH AND DEVELOPMENT CLUSTER Building and Equipment Use Charge System
Condition: The audit questioned building and equipment use charges of $326,268 representing one-half year's use charges on new buildings and equipment as presented in the Facilities & Administrative Rate Proposal. Questioned Plant Maintenance, Library, Administrative and General, Student Services, and Indirect Expense of Sponsored Projects (IESP) cost results because building and equipment use charges are allocated to those cost objectives. Because the questioned cost is not expressly unallowable it is not subject to penalty.
Recommendation:
To prevent future occurrences of this nature, we recommend correction of the model used in actual rate studies to reflect the allowable one half year rates for additions and/or deletions.
Finding Control Number: FA-503-99-03 ALLOWABLE COSTS/COST PRINCIPLES - RESEARCH AND DEVELOPMENT CLUSTER Improvement Use Charge System
Condition: The audit questioned cost of $42,411 representing improvement use charges erroneously allocated to Organized Research, Other Sponsored Activity, Computer Center, Other Activities and Auxiliary as the result of a spreadsheet error as presented in the Facilities & Administrative Rate Proposal. Recommendation: To prevent future occurrences of this nature, we recommend correction of the model.
Finding Control Number: FA-503-99-04 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Reports Not Submitted in a Timely Manner
Statement of Condition 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. The reports not filed in a timely fashion for the grants and contracts tested by the audit are as follows:
(*) FEDERAL COMPLIANCE REQUIREMENTS OF THIS ORGANIZATIONAL UNIT WERE AUDITED BY OTHER AUDITORS
D-40

State oJ Georgia
Federal Awards Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999

FEDERAL AWARDS FINDINGS

Agency No. CFDA

GTRC/GIT Contract No. Ref. No.

Report

Date Due

Date Mailed

U.S. Dept. of Commerce 11.0FA

99-26-07367-30 N-20-881 Semi-annual Performance Report

04/30199

07/01/99

U.S. Dept. of Defense 12.0FA

001-98-075A A-5680

Monthly Progress Report covering 12/01/98 - 12/31/98

01/11/99

01/12/99

U.S. Dept. of

Defense

12.0FA

CAS SC12896-0006

A-5327

Monthly Performance and Cost and Tech ReportlA005

11/15198

11/19199

U.S. Dept. of Defense 12.0FA

CAS SC12896-0006

A-5327

Final ReportlA006

12/31/98

01/15199

U.S. Dept. of Defense 12.300

NOOOI4-95-11116

G-29-X03

Annual Performancel Letter Report

06/30199

07/02/99

National Science Foundation 47.041

ECC-9731643 E-15-AOI Strategic Plan Report

10/30198

11/12/98

National Science Foundation 47.041

ECC-9731643 E-15-AOI Annual Report

01/31/99

04/11/99

National Science Foundation 47.041

EEC-9726 I 65 E-21-N50

Annual Progress Report covering 10101/97 - 9/30198

12/31/98

04121/99

NASA

43.002

NCC-2-945

E-16-N29

Federal Cash Transactions

07/15198

Report (SF 272) covering 4/01/98 - 6/30198

07123198

NASA

43.002

NCC-2-945

E-16-N29

Federal Cash Transactions

04115199

Report (SF 272) covering 1/01/99 - 3/31/99

05104/99

NASA

43.002

NCC-2-945

E-16-N29

Federal Cash Transactions

07/15199

Report (SF 272) covering 4/01199 - 06/30199

08/30199

NASA

43.002

NCC 2-945

E-16-N29

Annual Performance Report covering 01/01/98 - 12/31/98

10/31/98

01/11/99

NASA

43.002

NAG5-3855

G-35-W21

Annual Performance Report Covering 12/1/97 - 11/30198

09/30198

11/04198

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.

Effect 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.

Cause 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.

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.
D-41

- - - - - - - - - State of Georgia---------
Federal Awards Rndings and Questioned Costs For the Fiscal Year Ended June 30. 1999

FEDERAL AWARDS FINDINGS

Questioned Cost As all of these reports were ultimately submitted, no costs are questioned.

Finding Control Number: FA-503-99-05 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Log and Track Required Reports

Statement of Condition

Required reports are logged and tracked by GTRC and GIT on a schedule of deliverables. GTRC and GIT did not include the listed reports on this schedule. Therefore, submission of these reports is not being monitored. The reports not included on the schedule of deliverables for the grants and contracts tested by the audit are as follows:

Agency

CFDANo.

Contract No.

GTRC/GIT Ref. No.

U.S. Dept. of Defense

12.0FA

001-98-07SA

A-5680

Program Variance Report Training Plan
"Gold Standard" Software releases
System Security Plan update ECP Data Dictionary update Documentation/Publications Update Trouble Report Test Report Trip Report

U.S. Dept. of Defense

12.114

DAAH04-961-0008

E-16-X95 Annual Technical Report

U.S. Dept. of Defense

12.0FA

DASG60-95C-OOOI

A-9861

Semi-Annual Scientific and Technical Report!A002

U.S. Dept. of Defense

12.0FA

F09603-95-G0008-0028

A-5564

Software Development Plan! A002

U.S. Army

12.0FA

DAAHOI-97C-R254

A-5548

D-42

Scientific and Technical Reports Summary/AOOI
Technical Report - Progress Report!A002
Computer Software Product End Items/A004
Software Requirements Specification!A006
Interface Requirements Specification!A007
Software Design Description! A008
Software Test Plan!A009 Software Test Description!AOl0

- - - - - - - - - State of Georgia - - - - - - - - -
Federal Awards Fir\dir\gs ar\d Questior\ed Costs For the Fiscal Year Ended June 30, 1999

FEDERAL AWARDS FINDINGS

Agency

CFDANo.

Contract No.

GTRC/GIT Ref. No.

Software User Manual/Al011

NASA

43.002

NCC 2-945

E-16-N29

Annual Performance Report covering 01/01/9812/31/98

National

Annual Progress Report

Science

covering 11/01/99-

Foundation

47.041

EEC-9402723

E-21-Z15

10/31/00

Annual Progress Report

covering 11/01/00-

10/31/01

Criteria

The reporting compliance requirement requires 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 these reports. Required reports may not be submitted timely, if at all.

Cause Human errors 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 de1iverables.

Questioned Costs No costs are questioned with respect to this finding.

Finding Control Number: FA-S03-99-06 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Submit Reports for Correct Time Period

Agency

CFDANo.

Contract No.

GTRC/GIT Ref. No.

Report

Period Covered

As Required

As Submitted

U.S. Dept. of Commerce

11.0FA

99-26-07350-31

N-20-801

Financial Cash

Monthly

Transactions

Report (SF 272)

10/01/9709/30/99

U.S. Dept. of Commerce

11.0FA

99-26-07350-31

N-20-801

Financial Status Quarterly Report (SF 269)

10/01/9709/30/99

U.S. Dept. of Defense

12.114

DAAH04-96-10008

E-16-X95

Federal Cash Transactions Report (SF 272)

Annually

11/01/9710/31/99

Statement of Condition Some reports required by grant and contractual agreements entered into by GTRC and various federal agencies cover certain periods of those agreements. The above reports, as submitted, did not cover the required time periods.
D-43

- - - - - - - - - State of Georgia---------
Federal Awards Rndings and Questioned Costs For the Fiscal Year Ended June 30, 1999

FEDERAL AWARDS FINDINGS

Criteria The reporting compliance requirement requires the submission of certain reports in accordance with the grants and contracts entered into by GTRC.

Effect The reports submitted did not cover the required time periods and therefore, the reporting requirement has not been met with respect to these reports.

Cause Human errors caused these reports to cover the incorrect reporting period.

Recommendation GTRC and GIT should establish a procedure to ensure reports submitted cover the correct time periods.

Questioned Costs No costs are questioned with respect to this fmding

Finding Control Number: FA-503-99-07 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Input Correct Due Dates for Report

Agency CFDA No.

GTRC/GIT Contract No. Ref. No.

Report

Report Per Grant/ Per Schedule ~ Contract of Deliverables

u.s. Dept. of

Defense

12.0FA

DASG60-95-C-

0001

A-9861

Draft Final Report! A003

III 03/14/99

04/14/99

Statement of Condition Required reports are logged and tracked by GTRC and GIT on a schedule of deliverables. The due date for the above report was input into this schedule incorrectly.

Criteria The reporting compliance requirement requires 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 these reports. Required reports may not be submitted in accordance with grant or contract requirements.

Cause Human error caused erroneous due dates to be input into the schedule of deliverables.

Recommendation GTRC and GIT should establish a procedure to ensure the schedule of deliverables contains the correct due dates as specified by the contract.

Questioned Costs No costs are questioned with respect to this fmding.

D-44

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999

FEDERAL AWARDS FINDINGS

Finding Control Number: FA-503-99-08 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Input Correct Cost Share Budget

Agency

GTRC/GIT CFDANo.

Contract No.

Ref. No.

National Science Foundation

47.041

EEC-9402723

E-21-Z15

Statement of Condition Certain grants and contracts entered into by GTRC and various Federal agencies require cost-sharing by GTRC. The required amount of cost-sharing is input into GTRC and GIT's accounting system as the cost-share budget. The cost-share budget for the above contract was understated by $491,459.

Criteria The matching compliance requirement requires that cost-sharing or matching amounts be met as stipulated in the grant or contract agreement.

Effect GTRC and GIT may not meet the cost-sharing amount required.

Cause Human error caused an erroneous amount to be reflected in the accounting system.

Recommendation GTRC and GIT should establish controls to ensure cost-share budgets agree to the amounts required.

Questioned Costs No costs are questioned with respect to this funding.

GEORGIA STATE UNIVERSITY

Finding Control Number: FA-509-99-01 REPORTING Expenditures in Excess of Authorization Student Financial Aid Cluster Program
Federal Pen Grant Program (CFDA 84.063)

The Statement of Account report from the U.S. Department of Education indicated that the University was authorized to expend $7,957,064.00 in Federal Pen Grant Program funds in state fiscal year 1999. The University's accounting records however, reflected $8,035,974.25 for fiscal year 1999 Pen Grant expenditures. As a result the University expended $78,910.25 in excess of the authorized amount. In order to be reimbursed for the excess Pen 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 1999 authorized amount in order to make the funds availability to the University.

D-45

- - - - - - - - - State of Georgia---------
Federal Awards Findings and Questioned Costs
For the Fiscal Year Elided JUlIe 30. 1999

FEDERAL AWARDS FINDINGS

UNIVERSITY OF GEORGIA (*)

Finding Control Number: FA-518-99-01 REPORTING Research and Development Cluster Technical Reports Not Filed

Condition: Approximately 4% of the grants included technical reports which were not filed timely. This percentage represents 2 to 50 grants selected for testing.

The following table lists the technical reports not filed timely:

Budget Number

CFDA#

Date Due

Date Submitted

10-21-RR551-118 1O-21-RH551-118 lO-2l-RH55l-ll8 10-31-RE263-166 1O-31-RE263-166 10-31-RE263-166

66.454 66.454 66.454 93.556 93.556 93.556

12/30/98 3/30/99 6/30/99 1/14/99 4/14/99 7/14/99

1/15/99 5/7/99 7/9/99 3/17/99 4/30/99 8/2/99

Criteria: Attachment H of OMB Circular A-lIO 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-518-99-02 SPECIAL TESTS AND PROVISIONS Student Financial Aid Cluster Students Did Not Receive Required Counseling

Condition: Approximately 1% of the students (1 of 75 students) who were selected during the review of the Student Financial Aid Programs did not receive the required counseling.

Criteria: The University is required to provide entrance counseling to a student who is identified as a new borrower.

Effect: The University did not inform the student at entrance counseling of his or her rights and obligations as a borrower and the terms and conditions of the loan.

(*) FEDERAL COMPLIANCE REQUIREMENTS OF THIS ORGANIZATIONAL UNIT WERE AUDITED BY OTHER AUDITORS
D-46

- - - - - - - - - - State oJ Georgia - - - - - - - - - -
Federal Awards Fil1dil1gs al1d Questiol1ed Costs For the Fiscal Year Ended June 30. 1999

FEDERAL AWARDS FINDINGS

Cause: The University is required to provide entrance counseling to a student who is identified as a new borrower. The University requires that a student sign an entrance counseling form after the counseling session to document his or her attendance before the loan is disbursed. The student did attend the entrance counseling by the proper form was not maintained in the files of the University's Student Loans, Grants, and Scholarships Department.

Recommendation: The University should provide entrance counseling to all students and maintain the appropriate entrance counseling forms.

Finding Control Number: FA-518-99-03 REPORTING Research and Development Cluster 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

10-21-rr100-248

47.R&D

5/28/99

9/21/99

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 the 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 illternal 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.

ALBANY STATE UNIVERSITY

Finding Control Number: FA-521-99-01 REPORTING Report Not Reconciled Student Financial Aid Cluster Program

The University is required to reconcile their Federal Direct Loan accounts, including cash balances, and submit a reconciliation to the Direct Loan Servicing Center at least once a month. Our examination revealed that the amounts reported by the University did not reconcile to the general ledger of the University. This deficiency is a result of management's failure to adequately reconcile reports submitted to the accounting records. Federal regulations (34 CFR 668.161) require the University to ensure that all required reports are accurate and reconciled as necessary.

D-47

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Rscal Year Elided JUlie 30, 1999
FEDERAL AWARDS FINDINGS
The University should implement adequate controls to ensure that reports are accurately completed and supported by the accounting records. Detailed reconciliations should be prepared for any variances and maintained as part of the supporting documentation.
Federal Programs/Awards Affected
Student Financial Aid Cluster Program U. S. Department of Education Federal Direct Student Loan Program (CFDA 84.268)
Finding Control Number: FA-521-99-02 REPORTING Performance Reports Not Filed and Not Supported By Accounting Records Higher Education - Institutional Aid (CFDA 84.031)
The Title III Final Performance Report for the five year grant period ending September 30, 1997, had not been filed as of the date of our audit. The University was granted a twelve month extension by the U. S. Department of Education which expired September 30, 1998. Federal regulation 34 CFR 74.71, requires the University to submit all performance reports within 90 calendar days after the fmal approved date of completion.
In addition, amounts reported in the interim Performance Report for the period ending April 30, 1999, did not agree to the accounting records. Federal regulation 34 CFR 74.21 requires that the University's fmancial management system provide for accurate and complete disclosure of fmancial results of the Title III program consistent with the reporting requirements established in 34 CFR 74.52. This condition occurred because management prepared the financial portion of the interim Performance Report using expenditures based on requisitions instead of expenditures based on the accounting records.
The University should submit the Title III Final Performance Report for the grant period ending September 30, 1997. In addition, the University should implement adequate controls to ensure that reports are filed timely and are accurately completed and supported by the accounting records.
Federal Programs/Awards Affected
u. S. Department of Education
Higher Education - Institutional Aid (CFDA 84.031)
Finding Control Number: FA-521-99-03 SPECIAL TESTS AND PROVISIONS Deficiencies In Student Financial Aid Refund Process Student Financial Aid Cluster Program Questioned Cost: $2,686.00
An examination of the University's student financial aid refund process was performed for five students who received all failing and/or incomplete grades, for Spring Semester 1999. Attendance records as well as statements from instructors were used to ascertain if the students had dropped out and were due a refund. Our examination revealed three out of the five students 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 $2,686.00.
A projection of these errors to the total population resulted in a likely questioned cost in excess of $1 0,000.00.
The University should implement procedures to ensure that refunds are calculated for all "unofficial" withdrawals. The University should contact the U. S. Department of Education regarding resolution of this fmding.
D-48

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs For the Fiscal Year Ended June 30, 1999
FEDERAL AWARDS FINDINGS
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)
ARMSTRONG ATLANTIC STATE UNIVERSITY
Finding Control Number: FA-524-99-01 CASH MANAGEMENT Weaknesses in Internal Control Structure for Student Financial Assistance Programs Student Financial Aid Cluster Programs
Our tests of the University's internal control structure for administering Student Financial Assistance Programs indicated the following weaknesses in controls over drawdown of Federal funds:
(1) The University failed to perform a reconciliation of electronic funds transfer drawdowns from the Grant Administration and Payment System to the accounting records.
(2) Cash drawdowns were made without an appropriate level of supervisory review.
Federal regulations require that the University administer Student Financial Assistance Programs with adequate checks and balances in its system of internal controls.
These conditions resulted from management's failure to establish administrative procedures and to provide an adequate system of internal controls for the Student Financial Assistance Programs. Appropriate procedures and controls should be established by the University to ensure that the drawdowns of the Student Financial Assistance Programs are made and accounted for properly.
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 Pell Grant Program (CFDA 84.063)
Finding Control Number: FA-524-99-02 REPORTING Reports not Adequately Supported Student Financial Aid Cluster Program
Federal Pell Grant Program (CFDA 84.063)
For the year under review, the University failed to adequately support the Pell Grant payment data reported to the United States Department of Education. The University must report student payment data to the United States Department of Education within 30 days after the school makes a payment or becomes aware of the need to make adjustments to previously reported student payment data or expected student payment data based upon the standards in 34 CFR 690.83. The Pell Grant payment data reported to the United States Department of Education was supported by reports obtained through the University's Banner Subsystem. However, these reports did not agree with the general ledger and the University was unable to reconcile the variances.
D-49

- - - - - - - - - State of Georgia---------
Federal Awards Rl1dil1gs and Questiol1ed Costs For the Fiscal Year Ended June 30, 1999
FEDERAL AWARDS FINDINGS
The University should implement adequate safeguards to ensure that the Pell payment data can be reconciled to the University's general ledger. If the University is using subsystem reports to support the Pell payment data, then these subsystem reports should be reconciled to the general ledger.
Finding Control Number: FA"'S24-99-03 SPECIAL TESTS AND PROVISIONS Refunds not Calculated Correctly Student Financial Aid Cluster Program
Our 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 University did not calculate a refund for students who dropped out of the University without notifying the University.
The University should implement procedures to ensure that Student Financial Assistance refunds are accurately calculated on all students who withdraw from the University.
Federal Programs/Awards Affected:
Student Financial Aid Cluster Program U. S. Department of Education Federal Supplemental Educational Opportunity Grant (CFDA 84.007) Federal Family Education Loans (CFDA 84.032) Federal Pell Grant Program (CFDA 84.063) Scholarships for Health Professions Students from Disadvantaged Backgrounds (93.925)
AUGUSTA STATE UNIVERSITY
Finding Control Number: FA-S27-99-01 REPORTING Incorrect Student Payment Summary Report Student Financial Aid Cluster Program
The U. S. Department of Education Student Payment Summary (SPS) report indicated that the University incurred $3,219,190.00 in Federal Pell Grant Program expenditures. This amount incorrectly represented the University's final authorized amount of the Federal Pell Grant Program award for fiscal year 1999 instead of actual expenditures. During fiscal year 1999, the University actually incurred a total of $3,329,376.00 in Pell Grant Program expenditures. In order to be reimbursed for the excess Pell Grant expenditures, the University, in conformity with Federal Statutes, must certify the validity of these expenditures to the U. S. Department of Education. The Federal agency can then institute an upward adjustment of the fiscal year 1999 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-50

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
FEDERAL AWARDS FINDINGS
FORT VALLEY STATE UNIVERSITY
Finding Control Number: FA-533-99-01 ELIGIBILITY Improper Disbursement ofFSEOG Funds Student Financial Aid Cluster Program Questioned Cost: $42,750.00
For fiscal year 1999, it was noted that 54 students received $42,750.00 FSEOG funds 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 awarding FSEOG funds to all 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. It appears very unlikely that the 54 students that received FSEOG funds were entitled to the funding because the University had 1,560 students having a higher need as these students received Pell Grants but did not receive FSEOG funds. The University could not provide documentation that the lowest expected family contributions of these 1,560 students were considered prior to awarding the FSEOG funds to non-Pell recipients.
This questioned cost of $42,750.00 was a result of management's failure to properly award FSEOG funds to those students with the lowest expected family contribution who also received Federal Pell Grants. The University should contact the U. S. Department of Education regarding resolution of these questioned costs.
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-533-99-02 ELIGIBILITY Failure to Notify Students of Awards Student Financial Aid Cluster Program Questioned Cost: $67,409.20
A sample of seventy fmancial aid files was selected to determine if fmancial aid was properly awarded and disbursed to eligible students. Federal regulation (34 CFR 668.165) states that before an institution disburses Title VI, REA program funds for any award year, the institution must notify a student of the amount of funds that the student or his or her parent can expect to receive under each Title VI, REA program. The files sampled disclosed twenty-nine instances where students received financial aid in excess of their award as shown below:
(l)Twenty-seven students received Federal work study wages when they received no award notification for Federal work study or they received Federal work study wages in excess of their award. This noncompliance resulted in questioned costs of $146,747.68. Of this amount, $82,338.48 resulted in students receiving funds in excess of their eligible need and therefore is included in fmding FA-533-9903, which leaves a net amount of $64,409.20 in unduplicated questioned costs. The questioned costs resulted from a weakness in the Federal work study program in that procedures were not in place to ensure that students had received a Federal work study award and/or signed a work agreement prior to being allowed to work and receive wages.
(2) Two students received Federal Pell Grant Program funds; however, they never received an award notification. This noncompliance resulted in questioned costs of$3,000.00.
D-51

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
FEDERAL AWARDS FINDINGS
These questioned costs resulted from management's failure to properly notify students of their fmancial aid award before disbursing fimds to students. The University should implement procedures to ensure that students are notified of awarded fmancial aid before disbursements are made and that disbursements do not exceed individual awards. The University should contact the U. S. Department of Education regarding the resolution of these questioned costs.
Federal Programs/Awards Affected:
Student Financial Aid Cluster Program U. S. Department of Education Federal Work-Study Program (CFDA 84.033) Federal Pell Grant Program (CFDA 84.063)
Finding Control Number: FA-533-99-03 ELIGIBILITY Overpayment of Student Financial Aid Student Financial Aid Cluster Program Questioned Cost: $404,048.97
A sample of seventy financial aid files was selected to determine if fmancial aid was properly calculated and disbursed to eligible students. The items sampled contained fmancial aid disbursements of $1,125,896.86 out of a population of $17,855,285.85. Our examination revealed that fifty-six students received fimds in excess of their eligible need totaling $404,048.97 as shown below:
(1) Twenty-seven students' awards were not adjusted for a change in emollment status. The students either never registered for full-time emollment or originally registered for classes then formally dropped classes before the beginning of the quarter. Chapter Two of The Federal Student Financial Aid Handbook states that, with the exception of the Federal Pell Grant Program, the cost of attendance for a student is based on the student's actual costs for the period for which need is being determined. This noncompliance resulted in questioned costs of $136,222.98.
(2) Four 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 financial 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 is expected to successfully complete an increment of at least 70% of the total number of hours required per academic year. The increment measurement formula is cumulative in nature; therefore, all hours attempted and completed are carried forward and measured against each new incremental total. One student was found that had not successfully completed at least 70% of the total number of hours required.
(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. Three students were found with a grade point average below the required grade point average.
This noncompliance resulted in questioned costs of$69,264.00.
(3) Six students were classified by the fmancial aid office as graduate students when in fact they were taking undergraduate classes and paying undergraduate fees. This misclassification resulted in the University disbursing Federal Direct Student Loans for which the students did not qualify. This noncompliance resulted in questioned costs of$38,207.50.
D-52

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Fiscal Year Elided JUlIe 30, 1999
FEDERAL AWARDS FINDINGS
(4) Seven students' dependency status was adjusted without the necessary documentation or a reasonable explanation for the adjustment. Federal regulation (34 CFR 685.203) requires that all adjustments based on professional judgement be fully documented and reasonable. This noncompliance resulted in questioned costs of$27,361.49.
(5) Six 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. This noncompliance resulted in questioned costs of $24,000.00.
(6) Two students' files contained no 1998-99 eligibility documentation. Federal regulation (34 CFR 668.24) states that an institution must maintain all of the records required for a student to participate in any of the Federal Student Financial Aid Programs and any supporting documentation required by the applicable program regulations. The regulation also states that an institution shall make its records readily available for review. This noncompliance resulted in questioned costs of$21,396.00.
(7) Two students had not been accepted into an eligible program prior to their third academic year of study. The University's policy states students taking courses in their junior and senior years, who have yet to declare an academic major, are not considered to be following a prescribed course of study leading to a degree. Therefore, such students are not eligible for fmancial aid until a program of study has been declared. Federal regulation (34 CFR 668.32) states that a student is eligible to receive Title VI , HEA program assistance if the student is a regular student emolled, or accepted for emollment, in an eligible program at an eligible institution. This noncompliance resulted in questioned costs of$16,711.00.
(8) Two students were emolled less than half-time while receiving Federal Direct Student Loan Program funds. Federal regulation (34 CFR 685.200) states that a student participating in the Direct Loan Program must be emolled, or accepted for emollment, on at least a half-time basis. This noncompliance resulted in questioned costs of$15,209.00.
(9) Four students received other resources of fmancial aid which were not considered in their fmancial need calculation. Federal regulation (34 CFR 673.5) states that the institution must consider those resources it can reasonably anticipate at the time it awards funds. This noncompliance resulted in questioned costs of $13,406.00.
(10)Three students had no remaining need after the expected family contribution was deducted from their cost of attendance; however, they were disbursed Federal Direct Subsidized Loans and Perkins loans. Students that receive these loans must demonstrate fmancial need as described in Federal regulations (34 CFR 674.9 and 34 CFR 685.200). This noncompliance resulted in questioned costs of$12,847.00.
(11)Four students' expected family contribution was adjusted without proper documentation. Chapter 2 of The Student Financial Aid Handbook states that the reason for an expected family contribution adjustment must relate to the student's special circumstance and must be adequately documented in the student's file. This noncompliance resulted in questioned costs of$II,277.00.
(12)One student received Federal Direct Student Loans and did not appear to meet the requirements for "ability to benefit" regulation. The student in question is an eighty-five year old male who is enrolled in the University's Education Program. Federal regulation (34 CFR 685.214) states that a student's eligibility to borrow is to have been falsely certified by the school, if the school certifies the eligibility of a student who, because of age, would not meet the requirements for employment in the occupation for which the training program supported by the loan was intended. This noncompliance resulted in questioned costs of$1O,737.00.
D-53

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
FEDERAL AWARDS FINDINGS
(13)One student, who had satisfied all requirements for graduation, received fmancial aid funds for an additional semester of undergraduate courses and then completely withdrew from the institution. Federal regulation (34 CFR 690.6) states that a student is eligible to receive grant funds for the period of time required to complete his or her first undergraduate baccalaureate course of study. This noncompliance resulted in questioned costs of$5,833.00.
(l4)One student was disbursed $1,577.00 in excess of aggregate loan limits for the Federal Direct Student Loan Program. According to Federal regulations 34 CFR 685.203(d)2, the aggregate unpaid principal amount of all Direct Subsidized Loans made to a student may not exceed $65,500.00 in the case of a graduate or professional student, including loans for undergraduate study. The student in question has received $67,077.00 in Federal Direct Subsidized Student Loan Program funds which resulted in questioned costs of$I,577.00.
The above instances of noncompliance resulted from weaknesses in the internal control procedures over the Federal Student Financial Aid Cluster Program. The following deficiencies were noted.
Procedures were not in place to ensure that student fmancial aid files were complete and properly maintained.
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 were considered when awards are made to students.
Procedures were not in place to ensure that student fmancial aid awarded to friends and relatives of the director were reviewed by someone other than the Financial Aid Director. Such procedures would help to avoid the appearance of impropriety within the fmancial aid department.
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 fmancial 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. The University should contact the U. S. Department of Education regarding the resolution of these questioned costs.
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-533-99-04 REPORTING Expenditures in Excess of Authorization Student Financial Aid Cluster Program
The Statement of Account report from the U. S. Department of Education indicated that the University was authorized to expend $4,310,538.00 in Federal Pell Grant Program funds in state fiscal year 1999. The University's accounting records however, reflected $4,376,127.00 for fiscal year 1999 Pell Grant expenditures. On September 30, 1999, the University's
D-54

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Fiscal Year Ended JUlIe 30, 1999
FEDERAL AWARDS FINDINGS
authorization was increased to $4,331,801.00. This adjusted authorization amount represents the level that the University was authorized to expend for Pell Grants in fiscal year 1999. As a result, the University expended $44,326.00 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 1999 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-533-99-05 REPORTING Inadequate Documentation for Report Student Financial Aid Cluster Program
The University failed to provide adequate documentation to support Part VI, Section A of the Fiscal Operations and Application to Participate (FISAP) report for award period July 1, 1998 - June 30, 1999 submitted by the University to the U. S. Department of Education. Federal regulations (34 CFR 674.19, 675.19 and 676.19) 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 documentation supporting amounts included on the report. The University should retain all documentation 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-533-99-06 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.
The Fiscal Operations and Application to Participate (FISAP) report had amounts reported for the Federal Work-Study Program, the Federal Perkins Loan Program and the Federal Pell Grant expenditures that did not reconcile to the accounting records.
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, 1998, reconciled to the accounting records and submitted to the Federal Direct Loan servicer by July 31, 1999. This reconciliation had not been completed as required.
D-55

- - - - - - - - - - State of Georgia ' - - - - - - - - - - -
Federal Awards Hidings and Questioned Costs
For the Rscal Year Ended June 30, 1999
FEDERAL AWARDS FINDINGS
Federal regulations (34 CFR 675.19,685.309,690.81 and 690.83) require the University ensure that reported information is accurate and reconciled as necessary. The deficiencies identified were a result of management's failure to adequately reconcile required reports to the accounting records.
The University should implement adequate controls to ensure that all reports submitted to the u.s. Department of
Education are accurately completed and supported by the accounting records. Detailed reconciliations should be prepared for any variances and maintained as part of the supporting documentation.
Federal Programs/Awards Affected:
Student Financial Aid Cluster Program U. S. Department of Education 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-533-99-07 SPECIAL TESTS AND PROVISIONS Entrance and Exit Counseling not Conducted Student Financial Aid Cluster Program
An examination of the fmancial aid records of seventy students receiving Federal fmancial aid revealed that three Federal Direct Student Loan recipients files did not contain the required entrance interview documentation and twenty Federal Direct Student Loan recipients files did not contain the required exit interview documentation. Federal regulation (34 CFR 685.304) 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. Documentation of the required counseling should be maintained in the student's fmancial aid file.
This deficiency resulted from management's failure to ensure documentation was maintained. 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 Affected:
Student Financial Aid Cluster Program U. S. Department of Education Federal Direct Student Loan Program (CFDA 84.268)
Finding Control Number: FA-533-99-08 SPECIAL TESTS AND PROVISIONS Inadequate Control Procedures Student Financial Aid Cluster Program
The internal control procedures of Fort Valley State University were found to be inadequate over the Federal Work Study Program. The following weaknesses were noted in the program.
Procedures were not in place to ensure that time sheets were always approved and/or approved only after the last date indicated as worked on the time sheet.
Procedures were not in place to ensure that the supervisor's name on the time sheet was actually signed by the supervisor.
D-56

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Fiscal Year Eflded Jme 30, 1999
FEDERAL AWARDS FINDINGS
Procedures were not in place to ensure that tax withholding authorizations were obtained from the students prior to their employment.
SAVANNAH STATE UNIVERSITY
Finding Control Number: FA-548-99-01 ALLOWABLE COSTS/COST PRINCIPLES Employee Compensation Deficiencies Questioned Costs: $81,444.33
Our examination of salaries for ten employees charged to various Federal programs revealed the following deficiencies:
1) It was determined that salaries were charged to Federal programs based on budgeted amounts rather than actual time and effort reports. An examination of time and effort reports revealed the following problems:
a. The time and effort reports for nine employees were not available for examination or were incomplete.
b. Time and effort reports for two employees disclosed that those employees worked on Federal programs other than the programs charged.
c. A summer salary for one individual was charged to a Federal program but was not documented by time and effort reports. Determination could not be made as to whether the employee actually worked on the Federal program.
d. The percentage of effort as reflected on time and effort reports for four employees failed to support the salary distributions between Federal programs and non Federal programs.
OMB Circular A-21, requires that activity reports or other payroll documents used as original documentation for payroll charges be prepared and signed by the employee and the responsible official when salaries are charged to a Federal program. Time and effort reports should reflect 100% of an individual's time spent on all activities performed and should be supported by other documentation such as class schedules.
2) Three employees were paid stipends that were incorrectly charged to Federal programs. The stipends were in addition to regular salaries; however, the work performed was part of the employees' regular departmental workload. Also, summer stipends paid for work beyond normal duties were not documented by appropriate time and effort reports.
OMB Circular A-21, requires that additional compensation paid to employees above the base salary is allowed only in cases where the duties are in addition to the regular departmental workload.
The deficiencies described above resulted in questioned costs, for the following Federal Programs:
D-57

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs
For the Fiscal Year Elided JUlie 30. 1999

FEDERAL AWARDS FINDINGS

Federal Program

Questioned Cost

National Science Foundation Water Quality Management Planning Program Higher Education Institutional Aid Health Career Opportunity Program Blood Diseases and Resources Research Extramural Associate Research Development

47.0FA 66.454 84.031 93.822 93.839 93.865

$ 3,612.74 16,533.20 29,272.79 13,149.50 12,615.10 6,261.00

Total

$ 81.444.33

These conditions occurred because of management's failure to ensure that all time and effort reports were being properly prepared by employees and that salaries were correctly paid to individuals who performed the services. Management should ensure that complete time and effort sheets are prepared by all employees whose salaries are charged to a Federal 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 ensure that stipends paid to employees for work in addition to employees' regular departmental workloads are properly documented. The University should contact the grantor agencies to resolve these questioned costs.

Federal Programs/Awards Affected:

Higher Education - Institutional Aid (CFDA 84.031) U. S. Department of Education
Research and Development Cluster Programs National Science Foundation Other Financial Assistance (CFDA 47.0FA) Environmental Protection Agency Water Quality Management Planning Program (CFDA 66.454) U. S. Department of Health and Human Services Health Career Opportunity Program (CFDA 93.822) Blood Diseases and Resources Research (CFDA 93.839) Extramural Associate Research Development (CFDA 93.865)

Finding Control Number: FA-548-99-02 DAVIS-BACON ACT Payment of Prevailing Wage Rates Not Monitored Higher Education - Institutional Aid (CFDA 84.031)

For the year under review, it was noted that the University did not monitor the wages paid by two contractors working on Title III construction projects. 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 from management's failure to ensure that (1) all individuals at the University were aware of their responsibilities regarding the Davis-Bacon Act and (2) the requirements of the Davis-Bacon Act were being met. The University should take steps to ensure that wages paid for construction projects fmanced with Federal funds are monitored and are in compliance with the provisions of the Davis-Bacon Act.

D-58

- - - - - - - - - State of Georgia---------
Federal Awards Findings and Questioned Costs
For the Rscal Year Ef1ded JUf1e 30, 1999
FEDERAL AWARDS FINDINGS
Finding Control Number: FA-548-99-03 ELIGIBILITY Overpayment of Student Financial Aid Weaknesses in Internal Control Structure Student Financial Aid Cluster Program Questioned Cost: $6,321.05
A sample of twenty six student files was selected to determine if fmancial aid was properly calculated, awarded and disbursed to eligible students. The items sampled contained fmancial aid disbursements of $306,372.60 out of a population of $14,676,506.73. Our examination revealed overpayments to five students who were disbursed a total of $6,321.05 in excess of need based on estimated cost of attendance. Title IV of the Higher Education Act of 1986 states an institution must coordinate Title IV programs with other Federal and non Federal student fmancial aid programs it administers and must establish controls to preclude the awarding of assistance in excess of a student's fmancial need. These errors were caused by management's failure to review awards before disbursements were made. A projection of these errors to the total population resulted in likely questioned cost in excess of$lO,OOO.OO.
In addition, one student's Promissory Note was not signed until after the disbursement date of the loan. This deficiency occurred because of management's failure to implement procedures that would prevent the disbursing of funds prior to obtaining a signed promissory note as required by the Student Financial Aid Handbook.
The University should develop and implement policies and procedures to ensure that adequate controls over the eligibility process are in place and that student financial aid awards are properly reviewed and approved prior to disbursement. Also, the University should develop and implement a monitoring process to ensure that the controls are being followed. The University should contact the U. S. Department of Education regarding resolution of this fmding.
Federal Programs/Awards Affected:
Student Financial Aid Cluster Programs U. S. Department of Education Federal Supplemental Education 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-548-99-04 ELIGIBILITY Failure to Conduct Meetings for Satisfactory Academic Progress Appeals Student Financial Aid Cluster Program
For the year under review, student financial aid satisfactory academic progress appeals were approved by the Assistant Financial Aid Director rather than the University's Student Financial Aid Appeals Committee. The University's Student Financial Aid Appeals Committee failed to meet once each semester to hear student appeals of fmancial aid suspension as prescribed in the University's 1998-2000 General Catalog. Information regarding the time, place and decisions of the Committee's meetings was not available.
This deficiency resulted from the Committee's failure to meet as required to review student fmancial aid satisfactory academic progress appeals and make its recommendations. Management should establish controls to ensure that meetings are conducted once each semester to hear fmancial aid appeals and that adequate documentation of the Appeals Committee decisions is maintained.
D-59

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs For the Fiscal Year Ended June 30. 1999
FEDERAL AWARDS FINDINGS
Federal Programs/Awards Affected:
Student Financial Aid Cluster Programs U. S. Department of Education 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-548-99-05 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Higher Education - Institutional Aid (CFDA 84.031) Questioned Cost: $6,030.12
For the year under review, our examination included a review of the internal accounting controls utilized by the University in maintaining their property management system. Our examination also included testing the system for compliance with Federal laws and regulations. The following conditions existed:
1) The University's response to a prior year fmding concerning equipment and real property management, indicated that the inventory control system had been revised to include Federal agency source code and program titles. However, as of June 30, 1999, the property management system had not been updated to identifY Federal equipment purchases by program title or award number. This deficiency is system-wide and affects all Federal awards.
2) The University was unable to ensure appropriate Federal agencies were notified when disposing of equipment. This occurred because the property management system did not identifY equipment purchased by grant award number in the property management records.
3) A sample of 58 current year equipment purchases from Title III funds was examined. This examination revealed one printer purchased in June 1999 at a cost $1,298.12 was still in its original shipping container as of the last day of fieldwork.
4) The audit report for June 30, 1998, indicated that two computers were not being used by the Title III program for which they were acquired. The University has responded that the computers were being utilized in the Title III program as required. However, our examination noted that these computers were not being utilized in the Title III program as indicated by the University. The cost of these computers was $4,732.00.
The deficiencies above occurred because the University did not have internal controls in place to ensure compliance with Federal requirements for equipment as set forth in 34 CFR 74 and OMB Circular A-llO, Subpart C.34. The University should establish policies and procedures to ensure that equipment purchases are properly identified in the property records and are maintained in accordance with Federal requirements. 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.
D-60

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
FEDERAL AWARDS FINDINGS
Finding Control Number: FA-548-99-06 PERIOD OF AVAILABILITY Failure to Properly Refund to Grantor Agency Student Financial Aid Cluster Program
Federal Direct Student Loan Program (CFDA 84.268)
At June 30, 1999, the University's accounting records reflected $27,687.85 of Federal Direct Student Loan proceeds that had accumulated as a result of student withdrawals for the 1996 program award. These funds had not been refunded to the grantor as required by 34 CFR 685.21 l(d).
This condition occurred because of management's failure to have written policies and procedures in place to ensure that refunds are returned to the grantor agency as required by Federal regulations. Management should implement procedures to ensure that refunds are remitted in a timely manner according to Federal regulations.
Finding Control Number: FA-548-99-07 REPORTING Expenditures in Excess of Authorization Student Financial Aid Cluster Program
Federal Pell Grant Program (CFDA 84.063)
The Student Payment Summary (SPS) report and the Statement of Account report Federal Pell Grant Program expenditures to the U. S. Department of Education. These reports were not reconciled to the accounting records for the year under review as required by Federal regulations. The Statement of Account report indicated that the University was authorized to expend $3,503,150.00 in Federal Pell Grant Program funds in the state fiscal year 1999. The University's accounting records however, reflect $3,566,619.11 for fiscal year 1999 Pell Grant expenditures. As a result the University expended $63,469.11 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 1999 authorized amount in order to make the funds available to the University.
Finding Control Number: FA-548-99-08 REPORTING Inaccurate Reporting Student Financial Aid Cluster Program
The University's Fiscal Operations and Application to Participate (FISAP) report due October 1, 1999, included fiscal year 1998 enrollment data instead of fiscal year 1999 enrollment data. The Blue Book, Chapter 6, Sec. 2.2.3 requires the University to ensure that the information reported is accurate. The enrollment data is used to determine the Federal Campus - Based program allocations.
In addition, the Federal Pell Grant expenditures reported on the FISAP report did not agree with the final Grants Administration and Payment System (GAPS) report as required by the Blue Book, Chapter 6, Sec. 2.2.4.
The inaccurate reporting described above was the result of management's failure to obtain correct data from which to prepare the FISAP. The University should implement procedures to ensure that the information reported on the FISAP is accurate.
D-61

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
FEDERAL AWARDS FINDINGS
Federal Programs/Awards Affected:
Student Financial Aid Cluster Programs U. S. Department of Education Federal Supplemental Educational Opportunity Grant (CFDA 84.007) Federal Work-Study Program (CFDA 84.033) Federal Pell Grant Program (CFDA 84.063)
Finding Control Number: FA-548-99-09 REPORTING Failure to Prepare Reconciliations Student Financial Aid Cluster Program
Federal Direct Student Loan Program (CFDA 84.268)
For the year under review, the University failed to perform monthly reconciliations of Federal Direct Loan disbursements recorded on the College and University Fund Accounting System (CUFA) to the Loan Origination Center (LOC) Direct Loan School Account Statement as required by Chapter 11 of the Federal Student Financial Aid Handbook.
These deficiencies were a result of management's failure to comply with Chapter 11 of the Federal Student Financial Aid Handbook. The University should implement adequate controls to ensure that the reconciliations are accurately completed on a timely basis and supported by the accounting records. Documentation should be maintained to support any variances.
Finding Control Number: FA-548-99-10 SPECIAL TEST AND PROVISIONS Failure to Disclose Federal Funding in Public Announcement Higher Education - Institutional Aid (CFDA 84.031)
For the year under review, the University issued two bid solicitations that did not disclose the dollar amount of Federal funds for the project and the percentage of the total cost of the project to be financed with Federal funds as required by Attachment S of the Federal Grant Award. Management should review Attachment S of the Federal Grant Award and comply with the conditions under Public Law 105-78, Sec. 508.
SOUTHERN POLYTECHNIC STATE UNIVERSITY
Finding Control Number: FA-550-99-01 REPORTING Inadequate Internal Controls and Compliance Deficiencies for FISAP Reporting Student Financial Aid Cluster Program
For the year under review, amounts reported on the following reports for Federal Financial Assistance Programs submitted by the University to the U. S. Department of Education were not reconciled as follows:
1) The Student Payment Summary (SPS) report, which reports Pell Grant expenditures for the year, was not reconciled to the accounting records.
2) Pell Grant expenditures reported on the Fiscal Operations and Application to Participate (FISAP) were not reconciled to the accounting records.
Federal regulations (34 CFR 668.24 and 690.83) require the University to ensure that financial information reported is accurate and reconciled to the accounting records. Management should ensure that reports are reconciled to the accounting records prior to being submitted to the U. S. Department of Education.
D-62

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
FEDERAL AWARDS FINDINGS
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-550-99-02 SPECIAL TESTS AND PROVISIONS Inadequate Internal Controls and Compliance Deficiencies for Promissory Notes and Exit Counseling Student Financial Aid Cluster Program
Our examination of twenty-five (25) Student Financial Aid recipients identified one (1) student who was required to have exit counseling. The University did not provide exit counseling for this student. Federal regulations require the University to conduct exit counseling and maintain documentation that the University has complied with the requirements.
In addition, our examination of twenty-five (25) Student Financial Aid recipients identified seven (7) students who received Perkins Loan Funds for which the University could not provide Promissory Notes. Federal regulation (34 CFR 674.19) requires the University to keep the original promissory notes and repayment schedules in a locked, fireproof container until (a) the loans are satisfied; or (b) the original documents are needed in order to enforce the loan obligation.
Management should implement policies and procedures to ensure that the University is in compliance with Federal regulations.
Federal Programs/Awards Affected:
Student Financial Aid Cluster Program U. S. Department of Education Federal Perkins Loan Program (CFDA 84.038) William D. ford Federal Direct Loan Program (CFDA 84.268)
AUGUSTA TECHNICAL INSTITUTE
Finding Control Number: FA-824;.99-01 ACTIVITIES ALLOWED AND UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $48,930.95
The Augusta Technical Institute response to fmding number FA-824-98-0l, reported in the Summary Schedule of Prior Year Findings and Questioned Costs, indicates that the Institute considers the aforementioned fmding resolved based on communication from the Department of Education. The Department of Audits does not believe that this fmding is resolved. This belief is based on our determination that the cited U.S. Department of Education communication, which addressed conditions at another Technical Institute, is not applicable in this situation. We continue to believe that the expenditure of Perkins funds for personnel service costs specifically for the operation of the Student Financial Aid office is not an allowable activity that conforms with the Act and 34 CFR 403.111 (c) and (d). We also believe that these expenditures are not in compliance with "supplant versus supplement" requirements included in 34 CFR 403.196. We concur that U.S. Department of Education will make final resolution of this finding. However, resolution of the fmding and related questioned costs should be based solely on circumstances surrounding the expenditure of the Perkins funds at Augusta Technical Institute.
D-63

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
FEDERAL AWARDS FINDINGS
SAVANNAH TECHNICAL INSTITUTE
Finding Control Number: FA-841-99-01 ELIGIBILITY Improper Determination of Enrollment Status Student Financial Aid Cluster Program
Pell Grant Program (CFDA 84.063) Questioned Costs: $1,276.00
An examination of the fmancial aid records and class schedules of twenty students receiving Federal fmancial aid revealed two students who were awarded and disbursed $1,276.00 of Title IV assistance in excess of allowable limits based on their enrollment status. Federal regulations (34 CFR 690.63) and The Federal Student Financial Aid Handbook require that a student's Pell Grant payment for each payment period is calculated by determining the student's enrollment status for the term. Based upon that enrollment status the award is determined by payment and disbursement schedules established by the U.S. Department of Education.
In the two instances identified, one student was not enrolled during the period which resulted in the above overpayment and the second student withdrew before mid-term during the period of enrollment.
Two other exceptions were noted which resulted in underpayments of Pell funds. In these two instances, conversion of student clock hours for certain programs of study were improperly calculated resulting in underpayments of Pell Grants of $313 .00. One student was eligible for the maximum amount allowed for a full-time student. However, this student was incorrectly awarded aid based on the three-quarter time enrollment scale. In the other instance, a student was eligible to receive aid based on the three-quarter time enrollment scale, but was incorrectly awarded aid based on the one-half time scale.
These questioned costs and noncompliance resulted from management's failure to properly monitor the enrollment status of financial aid recipients and to properly calculate the conversion of student clock hours. The Institute should implement procedures to ensure that the enrollment status of fmancial aid recipients and the student clock hour conversion calculations are monitored to ensure fmancial aid is awarded and disbursed according to program regulations. Reimbursement of $1,276.00 should be secured for refund to the Pell Grant program.
Finding Control Number: FA-841~99-02 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. The following deficiencies in the equipment inventory records were noted:
(1) Five items were recorded on the PROPS inventory records at the purchase order price rather than the invoice price, resulting in the inventory records being overstated by $2,645.00.
(2) One item costing $1,956.00 was recorded on the inventory records at zero cost. (3) Two items costing $4,041.00 had no decal number assigned and could not be located. (4) Ten equipment items totaling $19,746.00 were improperly reflected on the PROPS equipment records as
federally funded. (5) One item with an assigned decal number, costing $3,353.00, did not appear on the inventory records. (6) Fiscal year 1998 purchases in the amount of $50,796.46 were not added to the PROPS inventory system
until fiscal year 2000.
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).
D-64

- - - - - - - - - - State of Georgia - - - - - - - - - -
Federal Awards Fil1dil1gs al1d Questiol1ed Costs
For the Fiscal Year Ended June 30, 1999

FEDERAL AWARDS FINDINGS

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-918-99-01 REPORTING Report Data Submitted to ED was Incorrect

Federal Program Information:

84.032 - FFELP

Criteria:

Data submitted to ED in the September 30 Form 1130 should be supported by the books and records.

Condition:

Information in the Corporation's records does not match that of the holder of the loan.

Questioned Costs: N/A

Context:

Out of 25 loans tested: 2 loans totaling $2,680 did not have the correct status in the system, as the lender did not report timely or correctly to the Corporation. Additionally, 3 loans totaling $3,192 were not being reported on by any lender. The Corporation is in the process of trying to locate these loans.

Information reported on the Form 1130, Part E, Loan Portfolio Status as of September 30 may differ from the records of the lender and therefore may be incorrect.

Recommendation:

We recommend that the Corporation reconcile their records with the above noted lender to resolve any differences. We also recommend that the Corporation continue to implement procedures to notify holders of the loans to update the Corporation's records in a timely manner.

(*) THIS ORGANIZATIONAL UNIT WAS AUDITED BY OTHER AUDITORS D-65

SectionCE ScJ1edufe of CExpenditures ofa:-ederarA.wards

- - - - - - - - - - State of Georgia - - - - - - - - - -
SChedule of Cluster Programs
For the Fiscal Year Ended June 30, 1999

Research and Development Cluster (R) Special Projects and Demonstrations for Providing Vocational Rehabilitation Services to Individuals with Severe Disabilities Rehabilitation Training -State Vocational Rehabilitation Unit In-Service Training Eisenhower Professional Development State Grants National Institute on the Education of At-Risk Students Special Education - Research and Innovation to Improve Services and Results for Children with Disabilities Special Education - Personnel Preparation to Improve Services and Results for Children with Disabilities Other Federal Assistance Demonstration Grants for Residential Treatment for Women and Their Children Food and Drug Administration - Research Biological Response to Environmental Health Hazards Biometry and Risk Estimation - Health Risks from Environmental Exposures Oral Diseases and Disorders Research Injury Prevention and Control Research and State and Community Based Programs Financial Assistance for Disadvantaged Health Professions Students Health Program for Toxic Substances and Disease Registry International Cooperative Biodiversity Groups Program Human Genome Research Research Related to Deafness and Communication Disorders National Research Services Awards Human Health Studies - Applied Research and Development Health Care Systems Cost and Access 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 Nursing Research Biomedical Technology Research Infrastructure Academic Research Enhancement Award Cancer Cause and Prevention Research Cancer Treatment Research Cancer Biology Research

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

84.235 $
84.265
84.281 84.306 84.324
84.325
84.XXX 93.102
93.103 93.113 93.115
93.121 93.136
93.139
93.161 93.168 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 93.361 93.371 93.389 93.390 93.393 93.395 93.396

134,826
90,414 1,349,404
239,296
11,443
127,910 998,421
17,550 209,974
-5,589
10,574 1,209,623
36,295
40,640 153,213 138,581 127,118 220,822 149,309 103,983
132,411
58 1,652,048'
105,077 1,134,617
40,351 1,560,582
167,565
1,275 953,690
36,496 808,472
67,529 74,034 294,576 266,665 137,845

E -49

- - - - - - - - - - State of Georgia - - - - - - - - - -
Schedule of Cluster Programs
For the Fiscal Year Ended June 30. 1999

Section 8 Project-Based Cluster (S8PBC) 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 Pell Grant Program Federal Direct Loan Health Professions Student Loans, Including Primary Care Loans/Loans for Disadvantaged Students Nursing Student Loans Scholarships for Students of Exceptional Financial Need Scholarships for Health Professions Students from Disadvantaged Backgrounds
TRIO Cluster (TRIO) TRIO - Student Support Services TRIO - Talent Search TRIO - Upward Bound

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

14.856 $

61,615,586

84.027 $ 84.173
$

86,048,455 13,845,904
99,894,359

84.007 $ 84.032 84.033 84.038
84.063 84.268 93.342
93.364 93.820 93.925
$

7,027,115 37,336,541 $
7,846,159
763,960 120,620,246 266,003,621
-626,625 -5,547 77,524
148,727
439,191,721 $

1,789,000,000 38,429,446
3,437,279 1,127,863
1,831,994,588

84.042 $ 84.044 84.047
$

1,526,665 1,212,598 2,401,760
5,141,023

E - 51

ScFtedu[e of CExpenditures of C3Federa[~~ards

State of Georgia - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Agriculture, U. S. Department of
Agricultural Research - Basic and Applied Research Through: University ofGeorgia Research FOWldation
Plant and Animal Disease, Pest Control, and Animal Care Direct
Wildlife Services Through: University of Georgia Research Foundation
Conservation Reserve Program Direct
Market News Direct
Federal-State Marketing Improvement Program Direct Through: University of Georgia Research FoWldation
Inspection Grading and Standardization Direct
Market Protection and Promotion Direct
\Vholesale Market Development Direct
Grants for Agricultural Research, Special Research Grants Direct Through: University of Georgia Research FOWldation
Cooperative Forestry Research Direct
Payments to Agricultural Experiment Stations Under the Hatch Act Direct
Payments to 1890 Land-Grant Colleges and Tuskegee University Direct
Grants for Agricultural Research Competitive Research Grants
Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
Food and Agricultural Sciences National Needs Graduate Fel10wship Grants
Direct
1890 Institution Capacity Building Grants Direct
Higher Education Challenge Grants Direct Through: EIDupont Through: Texas Tech University
Buildings and Facilities Program Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

10.001 10.025 10.028 10.069 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
10.218

5866027018 Various
12-25-G-0222
Various
Various
98-38411-6727 1300/4973-01

6,595 (R) 654,701 (R)
60,550 (R) 424,670
26,635 36,838
6,049 (R) 42,887 2,422,478
2,290 10,500 84,556 (R) 3,441,152 (R) 3,525,708 763,356 (R)
4,469,918 (R)
-9,088 (R)
36,501 (R) 1,510,011 (R) 1,546,512
49,895 (R) 2,468,970
108,018 (R) 8,658 (R) 2,762 (R)
119,438 207,029

E-5

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Elided JUlie 30, 1999

Agriculture, U. S. Department of
Funds for Rural Amenca - Research, Education, and Extension Activities
Direct Through: North Carolina State University
Agricultural and Rural Economic Research Direct
Rural Self-Help Housing Technical Assistance Direct
Cooperative Agreements wilh States for Intrastate Meat and Poultry Inspection
Direct
Cooperative Extension Service Direct Through: North Carolina State University Through: University of Georgia Research Foundation
Agricultural Telecommunications Program Direct
Food Distribution 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
State Administrative Expenses for Child Nutrition Direct
State Administrative Matching Grants for Food Stamp Program (FSC) Direct
Nutrition Education and Training Program Direct
Commodity Supplemental Food Program Tbrough: University of Georgia Research Foundation
Emergency Food Assistance Program (Administrative Costs) (EFAC)
Direct
Emergency Food Assistance Program (Food Commodities) (EFAC)
Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

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 10.569

Various 99-0263-19 97-0496-29
43-3198-1-0886

~3,967 (R) 12,189 (R)
66,156 5,394 243,356
3,136,312
11,015,946 (R) 4,589 (R) 4,589 (R)
11,025,124 96,700 1,997 -1,044
58,743,055 193,567,934
28,261
158,747,536 (2) 46,043,126
8,403,442 4,117,066
64,243,626 95,206
122 (R)
1,100,569

28,798,598 (4) 492,206,741 (4)
2,384,748

E-6

State of Georgia - - - - - - -
SChedule of Expmditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Agriculture, U. S. Department of
Nutrition Program for the Elderly (Commodities) Direct
WlC Farmers' Markel Nutrition Program (FMNP) Direct
Forestry Research Direct Through: University of Georgia Research Foundation
Cooperative Forestry Assistance Direct Through: University of Georgia Research Foundation
Teclmical Assistance and Training Grants Direct
Rural Development Grants Direct
Rural Cooperative Development Grants Direct
Resource Conservation and Development Direct
Agricultura1 Statistics Reports Direct
International Agricultural Research Program Direct Through: University of Georgia Research Foundation
International Training - Foreign Participant Direct
Scientific and Technical Cooperation Through: University of Georgia Research Foundation
Other Federal Assistance Direct Through: Auburn University Through: Langston University Through: North Carolina State University Through: University ofAlaska Tlu'ough: University of Georgia Research Foundation Through: University ofMaryland Through: Various Other States
AGENCY TOTAL
Commerce, U. S. Department of
Export Promotion - Market Development Cooperator Direct
Economic Development - Technical Assistance Direct
Research and Evaluation Program Through: Georgia Tech Research Corporation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

10.570 10.572 10.652
10.664
10.761 10.769 10.771 10.901 10.950 10.961
10.962 10.963 10.XXX

Various Various
Various
59-319R-4-029 97-046-03
UAF95-0056-MOD4 Various ZS54204 Various

2,561,727
72,999
341,293 (R) 573,757 (R) 915,050
2,132,840 (R) 76,571 (R)
2,209,411
90,435
184,190
38,633
3,839
45,556
12,493 16,887 (R) 29,380
9,557 (R)
4,158 (R)
620,894 (R) 1,015 830 1,688 (R)
77,894 (R) 1,998,816 (R)
-102 (R) 90,296 (R) 2,791,331
575,413,248

523,390,087

11.112 11.303 11.312

5,723 9,425 75,414 (R)

E-7

State of Georgia---------
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30. 1999

Commerce, U. S. Department of
Tmde Adjustment Assistance Through: Georgia Tech Research Corporation
Geodetic Surveys and Services (Geodesy and Applications of the National Geodetic Reference System) Through: University of Georgia Research Foundation
InteIjurisdictional Fisheries Act of 1986 Direct
Sea Grant Support Direct Through: University of Georgia Research FOWldation
Coastal Zone Management Administration Awards Direct
Coastal Zone Management Estuarine Research Reserves Direct Through: University of Georgia Research Foundation
Fisheries Development and Utilization Research and Development Grants and Cooperative Agreements Program
Through: University of Georgia Research Foundation
Undersea Research Through: University of Georgia Research Foundation
Marine Fisheries Initiative Direct Through: University of Georgia Research Foundation
Cooperative Fishery Statistics Direct
Marine Research Regional Programs Direct Through: University of North Carolina at Wilmington
Atlantic Coastal Fisheries Cooperative Management Act Direct
Coastal Ocean Program Through: University of Georgia Research Foundation
Public Telecommunications Facilities - Planning and Construction Direct
Telecommunications and Information Infrastructure Assistance Program
Direct
Advanced Technology Program Direct Through: University of Georgia Research Foundation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

11.313 11.400 11.407 11.417
11.419 11.420
11.427 11.430 11.433
11.434 11.464

GMRC-97-3110 Various
NA870R0284 NA77FD0074 NCWlNURC9707/9809 NA57FF0298

11.474 11.478 11.550 11.552 11.612

NA960P0005 95-01043

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

57,938
11,655 (R)
165,270
1,250 (R) 1,472,647 (R)
1,473,897
1,429,808
273,107
14,080 (R)
287,187
43 (R) 14,520 (R)
36,529
3,727 (R)
40,256
135,300 126,679
2,337 (R)
129,016
165,165
11,669 (R)
582
-81,634
77,289
154,641 (R)
231,930

B-8

State of Georgia - - - - - - - - -
Schedule of Expmditures of Federal Awards
For the Fiscal Year Eflded JUfle 30, 1999

Conunerce, U. S. Department of Other Federal Assistance Direct Through: Georgia Tech Research Corporation Tbrough: University of Georgia Research Foundation
AGENCY TOTAL
Defense, U. S. Department of Navigation Projects Direct Collaborative Research and Development Direct Through: Georgia Tech Research Corporation
Basic and Applied Scientific Research Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
Military Construction, National Guard Direct
National Guard Military Operations and Maintenance (O&M) Projects Direct
Military Medical Research and Development Through: University of Georgia Research Foundation
Community Economic Adjustment Direct
Community Economic Adjustment Planning Assistance Direct
Basic, Applied, and Advanced Research in Science and Engineering 1brough: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
Air Force Defense Research Sciences Program Direct Through; Georgia Tech Research Corporation Through: University of Georgia Research Foundation
Mathematical Sciences Grants Program Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

11.XXX

Various

487,494 (R) 4,882,216 (R)
159,405 (R) 5,529,115
9,692,279

12.107 12.114

12.300
12.400 12.401 12.420 12.600 12.607 12.630
12.800
12.901

Various
MCG9602029
F49620-97-1-0386 Various Various

317,382
221,842 (R) 5.751,032 (R)
5,972,874
33,882 (R) 12,521,157 (R)
273,735 (R)
12,828,774
471,110
14,834,751
27,671 (R) 1,923 (R)
29,594
106,756 (R)
10,696
1,209,935 (R)
34,425 (R) 1,244,360
84,022 (R) 3,896,565 (R)
260,805 (R)
4,241,392
27,908 (R) 46,489 (R)
74,397

E-9

State of Georgia - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Defense, U. S. Department of
Research and Technology Development Though: Georgia Tech Research Corporation Though: University of Georgia Research Foundation
Other Federal Assistance Direct Through: Georgia Tech Research Corporation Through: Medical College ofGeorgia Research lnstitute Through: University ofGeorgia Research Foundation
AGENCY TOTAL
Housing and Urban Development, U. S. Department of
Manufactured Home Construction and Safety Standards Direct Through: National Conference of States on Building Codes Through: Various Mobile Home Manufacturers
Community Development Block Grants/Small Cities Program (ESCC)
Through: City of Warner Robins
Community Development Block Grants/State's Program Direct
Emergency Shelter Grants Program Direct
Supportive Housing Program Direct
Historically Black Colleges and Universities Program Direct
Shelter Plus Care Direct
HOME Investment Partnerships Program Direct
Housing Opportunities for Persons with AIDS Direct
Fair Housing Assistance Program - State and Local Direct
CommWlity Development Work-Study Program Direct
Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation (S8PBC)
Direct
Lead-Based Paint Hazard Control in Privately-Owned Housing
Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

12.910 12.XXX

A-9531-020-S1 Various

14.171
14.219 14.228 14.231 14.235 14.237 14.238 14.239 14.241 14.401 14.512 14.856 14.900

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

1,690,626 (R) 87,464 (R)
1,778,090
7,680,858 (R) 68,645,190 (R)
86,564 (R) 335,976 (R)
76,748,588
118,658,764

542,861 2,117
1,049,238 1,594,216
32,500 48,934,224
1,963,963 535,431 171,759 14,703
17,906,366 2,542,883
410,899 23,085
61,615,586
708,498

E - 10

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Housing and Urban Development, U. S. Department of
Other Federal Assistance Direct Through: City of Albany Through: Clayton County Through: Georgia Tech Research Corporation
AGENCY TOTAL
Interior, U. S. Department of the
Sport Fish Restoration (FWC) Direct
Envirorunental Contaminants Direct
Wildlife Restoration (FWC) Direct
Endangered Species Conservation Direct
Cooperative Endangered Species Conservation Fund Tbrough: State ofTennessee Through: University ofGeorgia Research Foundation
Wildlife Conservation and Appreciation Direct
Administrative Grants for Federal Aid in Sport Fish and Wildlife Restoration Through: University ofGeorgia Research Foundation
Assistance to State Water Resources Research Institutes Through: University of Georgia Research Foundation
u. S. Geological Survey - Research and Data Acquisition
Direct Through: University ofGeorgia Research Foundation
Historic Preservation Fund Grants-In-Aid Direct Through: National Park Service Through: University ofGeorgia Research FOWldation
National Historic Landmark Direct
Outdoor Recreation - Acquisition, Development and Planning Direct Through: University of Georgia Research FoWldation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

14.XXX

B-96-MC-13-oo01

271,335 43,046 59,893 (R) 37,803 (R)
412,077
136,866,190

15.605 15.607 15.611 15.612 15.615
15.617 15.618 15.805 15.808
15.904
15.912 15.916

GU-96-02310-oo 434HQ97RU-01551#41
1434HQ97RU015511 Various Various
CA-5890-5-9020
Various

4,840,824
18,516 (R)
3,862,483
298,233
20,132 (R) 14,926 (R)
35,058
2,000
18,331 (R)
9,026 (R)
94,106
108,859 (R)
202,965
767,272 5,122
83,004 (R)
855,398
11,790
178,037
8,962 (R)
186,999

E - 11

State of Georgia - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Interior, U. S. Department of the
Other Federal Assistance Direct Though: Georgia Tech Research Corporation Through: University ofGeorgia Research Foundation
AGENCY TOTAL
Justice, U. S. Department of
Juvenile Accountability Incentive Block Grants Direct
Juvenile Justice and Delinquency Prevention Allocation to States
Direct
Victims of Child Abuse Direct
Part E - State Challenge Activities Direct
State Justice Statistics Program for Statistical Analysis Centers
Direct
Justice Research, Development, and Evaluation Project Grants
Direct
State Criminal Alien Assistance Program Direct
Crime Victim Assistance Direct
Crime Victim Compensation Direct
Byrne Fonnula Grant Program Direct
Violent Offender Incarceration and Truth in Sentencing Incentive Grants
Direct
Violence Against Women Fonnula Grants Direct
Rural Domestic Violence and Child Victimization Enforcement Grant Program Direct
Local Law Enforcement Block Grants Program Direct
Residential Substance Abuse Treatment for State Prisoners Direct
Local Firefighting and Emergency Services Training Direct
Corrections Training and StaffDevelopment Through: Federal Correctional Institution
Public Safety Partnership and Community Policing Grants Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

15.XXX

Various

981,668 (R) 519,492 (R) 617,012 (R) 2,118,172
12,459,795

16.523 16.540
16.547 16.549 16.550
16.560
16.572 16.575 16.576 16.579 16.586
16.588 16.589
16.592 16.593 16.599 16.601 16.710

5,767,415
2,342,563 550,882 449,536
47,239
304,335 2,260,470 2.211,205
404,200 17,527,925
10,849,736 1,074,346
1,207 880,116 2,551,678
50,000 93,197 336,773

E - 12

State of Georgia - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Rscal Year Ended June 30, 1999

Justice, U. S. Department of
Troops to COPS Direct
Combating Underage Drinking Direct
Other Federal Assistance Direct Through: Community Research Associates, Incorporated
AGENCY TOTAL
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: Atlanta Regional Commission Through: Atlanta Workforce Development Agency Through: CS.R.A Employment and Training Consortiwn Through: City of Colwnbus Consolidated Government Through: Coosa Valley Regional Development Center
Through: DeKalb Private Industry Council Through: East Central Georgia Employment
and Training Consortiwn Through: Lower Chattahoochee Private Industry Council Through: Middle Flint Regional Development Center Through: Middle Georgia Consortiwn, 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

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

16.711 16.727 16.XXX

97-LF-CX-KOOI

17.002 17.005 17.207 17.225 17.235 17.245 17.246 17.249 17.250
01-97-14-993 01-97-14-714

98-Ven-Ol

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

23,410
175,375
2,947,413 135,429
3,082,842
50.984,450

1,540,901
112.285
24,296,870
320,538,537 (1)
1,890,484
9,992,216
15,884,224
-2,313
36,831,592 52,671
243,369 55,324 66,566 157,272
801,440 234.840 188,011 146,045
62,755 92,655 1,291,722 293,894 143,460 220,909 197,832 566,676 337,839 10,859 41,995,731

E - 13

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 3D, 1999

Labor, U. S. Department of
Welfare-la-Work Grants to States and Localities Direct Through: East Central Georgia Consortium Through: Northeast Georgia Regional Development Center
Consultation Agreements Direct
Mine Health and Safety Grants Direct
Women's Special Employment Assistance Direct
Disabled Veterans' Outreach Program (DVOP) (ESC) Direct
Local Veterans' Emplo)111ent Representative Program (ESC) Direct
Other Federal Assistance Direct Through: East Central Georgia Consortium Through; Georgia Tech Research Corporation
AGENCY TOTAL
State, U, S. Department of
Other Federal Assistance Direct
AGENCY TOTAL
Transportation, U. S. Department of
Boating Safety Financial Assistance Direct
Highway Planning and Construction Direct
Highway Training and Education Direct
Motor Carrier Safety Assistance Program Direct
Recreational Trails Program Direct
Federal Transit Capital Improvement Grants (FTC) Direct
Federal Transit Teclmical Studies Grants Direct
Federal Transit Capital and Operating Assistance Formula Grants (FTC)
Direct
Public Transportation for Nonurbanized Areas Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

17.253
17.504 17.600 17.700 17.801 17.804 17.XXX

6,500,238 50,635 78,713
6,629,586
49,093
t78,787
506
1,803,358
1,542,607
131,028 38,250 1,065,079 (R) 1,234,357
427,687,229

19.XXX

6,483,684 (R) 6,483,684

20.005 20.205 20.215 20.218 20.219 20.500 20.505 20.507
20.509

1,159,449 728,560,225
9,590 2,673,158
214,075 98,387
958,319
4,841,553 4,474,758

E - 14

State of Georgia - - - - - - - - -
SChedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30. 1999

Transportation, U. S. Department of
Capital Assistance Program for Elderly Persons and Persons With Disabilities
Direct
State and Community Highway Safety (HSC) Direct
Pipeline Safety Direct
Interagency Hazardous Materials Public Sector Training and Planning Grants
Direct
Other Federal Assistance Direct Through: Georgia Tech Research Corporation Through: International Fuel Tax Association, Incorporated Through: Office of Small and Disadvantaged Business Utilization Through: South Carolina State University Through: University ofGeorgia Research Foundation

CFDA NUMBER
20.513
20.600 20.700 20.703
20.XXX

PASS-THROUGH ENTITY IDENTIFYING
NUMBER
ETTAP9596ALB Various

AGENCY TOTAL
Treasury, U. S. Department of the Other Federal Assistance Direct Through: Georgia Tech Research Corporation

21.XXX

AGENCY TOTAL
Postal Service, U. S. Other Federal Assistance Direct
AGENCY TOTAL
Appalachian Regional Commission Appalachian Regional Development Direct Appalachian Supplements to Federal Grant-inAid (Area Development) Direct Appalachian State Research, Technical Assistance, and Demonstration Projects Direct
AGENCY TOTAL

22.XXX
23.001 23.002 23.011

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

1,362,454 5,816,169
237,612
143,495 14,499 (R)
960,206 (R) 3,741
44,408 37,431 78,032 (R) 1,138,317 751,687,561
48,155 46,390 (R) 94,545 94,545
10,700 10,700
172,965
719,179
261,162 1,153,306

1,582,214 (3) 1,582,214

E - 15

State of Georgia - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Equal Employmeut Opportunity Commission Employment Discrimination - Title VII of the Civil Rights Act of1964 Direct
AGENCY TOTAL
General Services Administration Donation of Federal Surplus Personal Property Direct Other Federal Assistance Through: Georgia Tech Research Corporation
AGENCY TOTAL
National Aeronautics and Space Administration Aerospace Education Services Program Direct Through: Space Telescope Science Institute Through: University of Alabama
Teclmology Transfer Direct Through: Georgia Tech Research Corporation
Other Federal Assistance Direct Through: Georgia Tech Research Corporation Through: Lewis Research Center Through: Space Telescope Science Institute Through: Universities Space Research Association Through: University of Georgia Research Foundation
AGENCY TOTAL
National Foundation on the Arts and the Humanities Promotion of the Arts - Grants to Organizations and Individuals Direct Promotion of the Arts - Partnership Agreements Direct Governor, Office of the Promotion of the Humanities FederaVState Partnership Direct Through: Georgia Humanities Council
Promotion of the Humanities - Division of Preservation and Access Through: University of Georgia Research Foundation Promotion of the Humanities - Fellowships and Stipends Through: Georgia Tech Research Corporation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

30.001

72,171 72,171

39.003 39.XXX

14,170 (R)
14,170

10,505,036 10,505,036

43.001 43.002

98VSUOOI

43.XXX

GO-07825. 01-96A Various

83,333 (R) 9,697 (R) 19,150 (R)
112,180
109,722 (R) 7,033,395 (R)
7,143,117
486,308 (R) 846,986 (R)
124,082 10,311
15,441 (R) 623,075 (R)
2,106,203
9,361,500

45.024 45.025 45.129
45.149 45.160

PA-23195-98

72,810 (R)
394,443 23,810
49,437 (R)
73,247
76,390 (R)
15,822

E - 16

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 3D, 1999

National Foundation on the ~rts and the Humanities Promotion of the Humanities - Education Development and Demonstration Direct TIuough: University of California
State Library Program Direct
Other Federal Assistance Direct Through: Georgia Tech Research Corporation Through: National Trust for Historic Preservation
AGENCY TOTAL
National Science Foundation
Engineering Grants Direct Through: Georgia Tech Research Corporation Through: University ofGeorgia Research Foundation
Mathematical and Physical Sciences Direct Through: Georgia Tech Research Corporation Through: University ofGeorgia Research Foundation
Geosciences Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
Computer and Infonnation Science and Engineering Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research FOlUldation
Biological Sciences Direct Through: Georgia Tech Research Corporation Through: Medical College ofGeorgia Research Institute Through: University of Georgia Research Foundation
Social, Behavioral, and Economic Sciences Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
Education and Human Resources Direct Through: Education Development Center, Incorporated Through: Georgia Tech Research Corporation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

45.162

45.310 45.XXX

47.041 47.049 47.050 47.070 47.074 47.075 47.076

97-0304-01 C16459 Various 5-34319 Various 97-98
DUE-9850299

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

92,700 10,242 102,942
2,274,368
13,600 34,722
24,912 (R)
73,234
3,083,256
36,061 (R) 8,208,358 (R)
100,508 (R)
8,344,927
600,482 (R)
2,096,195 (R) -1 (R)
2,696,676
55,891 (R) 1,161,829 (R)
10,325 (R) 1,228,045
304,340 (R) 2,351,209 (R)
30,510 (R) 2,686,059
486,230 (R)
347,693 (R)
34,665 (R) 163,954 (R)
1,032,542
143,817 (R) 203,852 (R)
4,012 (R)
351,681
750,498 (R) 33,854
1,196,290 (R)
1,980,642

E - 17

State of Georgia - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

National Science Foundation Academic Research Infrastructure Direct Polar Programs Through: University ofGeorgia Research Foundation Other Federal Assistance Direct Through: Florida Agricultural and Mechanical University Through: Georgia Tech Research CoJ1>Oration Through: Swarthmore College Through: University of Georgia Research Foundation
AGENCY TOTAL
Small Business Administration Business Development Assistance to Small Business Direct Small Business Development Center Direct
AGENCY TOTAL
Smithsonian Institute Other Federal Assistance Through: University of Georgia Research Foundation
AGENCY TOTAL
Tennessee Valley A!Jthority Other Federal Assistance Direct
AGENCY TOTAL
Veterans Affairs, U. S. Department of Blind Rehabilitation Centers Direct Veterans Nursing Home Care Direct Veterans State Domiciliary Care Direct Veterans State Nursing Home Care Direct Veterans State Hospital Care Through: University of Georgia Research Foundation Veterans Educational Assistance Direct Vocational Rehabilitation for Disabled Veterans Direct

CFDA NUMBER
47.077 47.078 47.XXX
59.005 59.037
60.XXX
62.XXX
64.007 64.010 64.014 64.015 64.016 64.111 64.116

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

383761
C-9549 REC-9618223
Various

39,766
5,215 (R)
2,715,273 (R) 116,597
2,054,677 (R) 31,332 (R)
8,763,835 (R) 13,681,714
32,047,267

_ _ _ _ _2::,;,8::..:4;:.4 (R) 2,141,658 (R) 2,144,502

T993PC00133000

_ _ _ _ _9"",8::;:8;:,.9 (R) 9,889

20,003 20,003

RSCHAGREE

15 (R) 58 (R) 675,155 7,285,897 5,207 (R) 358,450 98

E - 18

State of Georgia - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Interior, U. S. Department of the
Other Federal Assistance Direct Though: Georgia Tech Research Corporation Through: University ofGeorgia Research Foundation
AGENCY TOTAL
Justice, U. S. Department of
Juvenile Accountability Incentive Block Grants Direct
Juvenile Justice and Delinquency Prevention Allocation to States
Direct
Victims of Child Abuse Direct
Part E - State Challenge Activities Direct
State Justice Statistics Program for Statistical Analysis Centers
Direct
Justice Research, Development, and Evaluation Project Grants
Direct
State Criminal Alien Assistance Program Direct
Crime Victim Assistance Direct
Crime Victim Compensation Direct
Byrne Fonnula Grant Program Direct
Violent Offender Incarceration and Truth in Sentencing Incentive Grants
Direct
Violence Against Women Fonnula Grants Direct
Rural Domestic Violence and Child Victimization Enforcement Grant Program Direct
Local Law Enforcement Block Grants Program Direct
Residential Substance Abuse Treatment for State Prisoners Direct
Local Firefighting and Emergency Services Training Direct
Corrections Training and StaffDevelopment Through: Federal Correctional Institution
Public Safety Partnership and Community Policing Grants Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

15.XXX

Various

981,668 (R) 519,492 (R) 617,012 (R) 2,118,172
12,459,795

16.523 16.540
16.547 16.549 16.550
16.560
16.572 16.575 16.576 16.579 16.586
16.588 16.589
16.592 16.593 16.599 16.601 16.710

5,767,415
2,342,563 550,882 449,536
47,239
304,335 2,260,470 2.211,205
404,200 17,527,925
10,849,736 1,074,346
1,207 880,116 2,551,678
50,000 93,197 336,773

E - 12

State of Georgia - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Rscal Year Ended June 30, 1999

Justice, U. S. Department of
Troops to COPS Direct
Combating Underage Drinking Direct
Other Federal Assistance Direct Through: Community Research Associates, Incorporated
AGENCY TOTAL
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: Atlanta Regional Commission Through: Atlanta Workforce Development Agency Through: CS.R.A Employment and Training Consortiwn Through: City of Colwnbus Consolidated Government Through: Coosa Valley Regional Development Center
Through: DeKalb Private Industry Council Through: East Central Georgia Employment
and Training Consortiwn Through: Lower Chattahoochee Private Industry Council Through: Middle Flint Regional Development Center Through: Middle Georgia Consortiwn, 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

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

16.711 16.727 16.XXX

97-LF-CX-KOOI

17.002 17.005 17.207 17.225 17.235 17.245 17.246 17.249 17.250
01-97-14-993 01-97-14-714

98-Ven-Ol

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

23,410
175,375
2,947,413 135,429
3,082,842
50.984,450

1,540,901
112.285
24,296,870
320,538,537 (1)
1,890,484
9,992,216
15,884,224
-2,313
36,831,592 52,671
243,369 55,324 66,566 157,272
801,440 234.840 188,011 146,045
62,755 92,655 1,291,722 293,894 143,460 220,909 197,832 566,676 337,839 10,859 41,995,731

E - 13

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 3D, 1999

Labor, U. S. Department of
Welfare-la-Work Grants to States and Localities Direct Through: East Central Georgia Consortium Through: Northeast Georgia Regional Development Center
Consultation Agreements Direct
Mine Health and Safety Grants Direct
Women's Special Employment Assistance Direct
Disabled Veterans' Outreach Program (DVOP) (ESC) Direct
Local Veterans' Emplo)111ent Representative Program (ESC) Direct
Other Federal Assistance Direct Through: East Central Georgia Consortium Through; Georgia Tech Research Corporation
AGENCY TOTAL
State, U, S. Department of
Other Federal Assistance Direct
AGENCY TOTAL
Transportation, U. S. Department of
Boating Safety Financial Assistance Direct
Highway Planning and Construction Direct
Highway Training and Education Direct
Motor Carrier Safety Assistance Program Direct
Recreational Trails Program Direct
Federal Transit Capital Improvement Grants (FTC) Direct
Federal Transit Teclmical Studies Grants Direct
Federal Transit Capital and Operating Assistance Formula Grants (FTC)
Direct
Public Transportation for Nonurbanized Areas Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

17.253
17.504 17.600 17.700 17.801 17.804 17.XXX

6,500,238 50,635 78,713
6,629,586
49,093
t78,787
506
1,803,358
1,542,607
131,028 38,250 1,065,079 (R) 1,234,357
427,687,229

19.XXX

6,483,684 (R) 6,483,684

20.005 20.205 20.215 20.218 20.219 20.500 20.505 20.507
20.509

1,159,449 728,560,225
9,590 2,673,158
214,075 98,387
958,319
4,841,553 4,474,758

E - 14

State of Georgia - - - - - - - - -
SChedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30. 1999

Transportation, U. S. Department of
Capital Assistance Program for Elderly Persons and Persons With Disabilities
Direct
State and Community Highway Safety (HSC) Direct
Pipeline Safety Direct
Interagency Hazardous Materials Public Sector Training and Planning Grants
Direct
Other Federal Assistance Direct Through: Georgia Tech Research Corporation Through: International Fuel Tax Association, Incorporated Through: Office of Small and Disadvantaged Business Utilization Through: South Carolina State University Through: University ofGeorgia Research Foundation

CFDA NUMBER
20.513
20.600 20.700 20.703
20.XXX

PASS-THROUGH ENTITY IDENTIFYING
NUMBER
ETTAP9596ALB Various

AGENCY TOTAL
Treasury, U. S. Department of the Other Federal Assistance Direct Through: Georgia Tech Research Corporation

21.XXX

AGENCY TOTAL
Postal Service, U. S. Other Federal Assistance Direct
AGENCY TOTAL
Appalachian Regional Commission Appalachian Regional Development Direct Appalachian Supplements to Federal Grant-inAid (Area Development) Direct Appalachian State Research, Technical Assistance, and Demonstration Projects Direct
AGENCY TOTAL

22.XXX
23.001 23.002 23.011

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

1,362,454 5,816,169
237,612
143,495 14,499 (R)
960,206 (R) 3,741
44,408 37,431 78,032 (R) 1,138,317 751,687,561
48,155 46,390 (R) 94,545 94,545
10,700 10,700
172,965
719,179
261,162 1,153,306

1,582,214 (3) 1,582,214

E - 15

State of Georgia - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Equal Employmeut Opportunity Commission Employment Discrimination - Title VII of the Civil Rights Act of1964 Direct
AGENCY TOTAL
General Services Administration Donation of Federal Surplus Personal Property Direct Other Federal Assistance Through: Georgia Tech Research Corporation
AGENCY TOTAL
National Aeronautics and Space Administration Aerospace Education Services Program Direct Through: Space Telescope Science Institute Through: University of Alabama
Teclmology Transfer Direct Through: Georgia Tech Research Corporation
Other Federal Assistance Direct Through: Georgia Tech Research Corporation Through: Lewis Research Center Through: Space Telescope Science Institute Through: Universities Space Research Association Through: University of Georgia Research Foundation
AGENCY TOTAL
National Foundation on the Arts and the Humanities Promotion of the Arts - Grants to Organizations and Individuals Direct Promotion of the Arts - Partnership Agreements Direct Governor, Office of the Promotion of the Humanities FederaVState Partnership Direct Through: Georgia Humanities Council
Promotion of the Humanities - Division of Preservation and Access Through: University of Georgia Research Foundation Promotion of the Humanities - Fellowships and Stipends Through: Georgia Tech Research Corporation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

30.001

72,171 72,171

39.003 39.XXX

14,170 (R)
14,170

10,505,036 10,505,036

43.001 43.002

98VSUOOI

43.XXX

GO-07825. 01-96A Various

83,333 (R) 9,697 (R) 19,150 (R)
112,180
109,722 (R) 7,033,395 (R)
7,143,117
486,308 (R) 846,986 (R)
124,082 10,311
15,441 (R) 623,075 (R)
2,106,203
9,361,500

45.024 45.025 45.129
45.149 45.160

PA-23195-98

72,810 (R)
394,443 23,810
49,437 (R)
73,247
76,390 (R)
15,822

E - 16

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 3D, 1999

National Foundation on the ~rts and the Humanities Promotion of the Humanities - Education Development and Demonstration Direct TIuough: University of California
State Library Program Direct
Other Federal Assistance Direct Through: Georgia Tech Research Corporation Through: National Trust for Historic Preservation
AGENCY TOTAL
National Science Foundation
Engineering Grants Direct Through: Georgia Tech Research Corporation Through: University ofGeorgia Research Foundation
Mathematical and Physical Sciences Direct Through: Georgia Tech Research Corporation Through: University ofGeorgia Research Foundation
Geosciences Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
Computer and Infonnation Science and Engineering Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research FOlUldation
Biological Sciences Direct Through: Georgia Tech Research Corporation Through: Medical College ofGeorgia Research Institute Through: University of Georgia Research Foundation
Social, Behavioral, and Economic Sciences Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
Education and Human Resources Direct Through: Education Development Center, Incorporated Through: Georgia Tech Research Corporation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

45.162

45.310 45.XXX

47.041 47.049 47.050 47.070 47.074 47.075 47.076

97-0304-01 C16459 Various 5-34319 Various 97-98
DUE-9850299

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

92,700 10,242 102,942
2,274,368
13,600 34,722
24,912 (R)
73,234
3,083,256
36,061 (R) 8,208,358 (R)
100,508 (R)
8,344,927
600,482 (R)
2,096,195 (R) -1 (R)
2,696,676
55,891 (R) 1,161,829 (R)
10,325 (R) 1,228,045
304,340 (R) 2,351,209 (R)
30,510 (R) 2,686,059
486,230 (R)
347,693 (R)
34,665 (R) 163,954 (R)
1,032,542
143,817 (R) 203,852 (R)
4,012 (R)
351,681
750,498 (R) 33,854
1,196,290 (R)
1,980,642

E - 17

State of Georgia - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

National Science Foundation Academic Research Infrastructure Direct Polar Programs Through: University ofGeorgia Research Foundation Other Federal Assistance Direct Through: Florida Agricultural and Mechanical University Through: Georgia Tech Research CoJ1>Oration Through: Swarthmore College Through: University of Georgia Research Foundation
AGENCY TOTAL
Small Business Administration Business Development Assistance to Small Business Direct Small Business Development Center Direct
AGENCY TOTAL
Smithsonian Institute Other Federal Assistance Through: University of Georgia Research Foundation
AGENCY TOTAL
Tennessee Valley A!Jthority Other Federal Assistance Direct
AGENCY TOTAL
Veterans Affairs, U. S. Department of Blind Rehabilitation Centers Direct Veterans Nursing Home Care Direct Veterans State Domiciliary Care Direct Veterans State Nursing Home Care Direct Veterans State Hospital Care Through: University of Georgia Research Foundation Veterans Educational Assistance Direct Vocational Rehabilitation for Disabled Veterans Direct

CFDA NUMBER
47.077 47.078 47.XXX
59.005 59.037
60.XXX
62.XXX
64.007 64.010 64.014 64.015 64.016 64.111 64.116

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

383761
C-9549 REC-9618223
Various

39,766
5,215 (R)
2,715,273 (R) 116,597
2,054,677 (R) 31,332 (R)
8,763,835 (R) 13,681,714
32,047,267

_ _ _ _ _2::,;,8::..:4;:.4 (R) 2,141,658 (R) 2,144,502

T993PC00133000

_ _ _ _ _9"",8::;:8;:,.9 (R) 9,889

20,003 20,003

RSCHAGREE

15 (R) 58 (R) 675,155 7,285,897 5,207 (R) 358,450 98

E - 18

State of Georgia - - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Veterans Affairs, U. S. Department of
Post-Vietnam Era Veterans' Educational Assistance Direct
Other Federal Assistance Direct Through: Georgia Tech Research Corporation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

64.120 64.XXX

AGENCY TOTAL
Environmental Protection Agency
State Indoor Radon Grants Direct
Construction Grants for Wastewater Treatment Works Direct
State Underground Water Source Protection Direct
Water Pollution Control -Lake Restoration Cooperative Agreements Direct
Construction Management Assistance Direct
Water Quality Management Planning Through: Florida Department ofEnvirorunental Protection

66.032 66.418 66.433 66.435
66.438 66.454

Capitalization Grants for State Revolving Funds Direct
Wetlands Protection - Development Grants Direct Through: University of Georgia Research Foundation
National Pollutant Discharge Elimination System Related State Program Grants
Direct Through: University of Georgia Research Foundation
Capitalization Grants for Drinking Water State Revolving Fund
Direct
Environmental Protection - Consolidated Research Direct Through: Georgia Tech Research Corporation Through: University ofGeorgia Research Foundation
Perfonnance Partnership Grant Direct
Surveys, Studies, Investigations and Special Purpose Grants Direct
One Stop Reporting Direct

66.458 66.461
66.463
66.468 66.500
66.605 66.606 66.608

Various X994304-92 CP984533-98-D
Various

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

560
1,162,651 (R) 41,132 (R)
1,203,783
9,529,223

70,604
32,120
34,337
149,763
295,873
2,619,784 95,268 (R)
2,715,052
33,183,221 (3)
162,894 156 (R)
163,050
59,573 97,886 (R) 157,459
5,793,588 (3) 11,795 (R)
1,724,577 (R) 843,698 (R)
2,580,070
8,832,400
1,029,079
105,080

216,507,004 (3) 4,039,186 (3)

E - 19

State of Georgia - - - - - - - - -
Schedule of ExpLrlditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Environmental Protection Agency
Consolidated Pesticide Enforcement Cooperative Agreements Direct
TSCA Title IV State Lead Grants - Certification of LeadBased Paint Professionals Direct
Pollution Prevention Grants Program Direct
Superfund State Site - Specific Cooperative Agreements Direct
Leaking Underground Storage Tank Trust Fund Program Direct
Solid Waste Management Assistance Direct Through: University ofGeorgia Research Foundation

CFDA NUMBER
66.700 66.707
66.708 66.802 66.805 66.808

Environmental Education Grants Direct

66.951

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 Infonnation Direct Other Federal Assistance Through: Georgia Tech Research Corporation
AGENCY TOTAL
Energy, U. S. Department of State Energy Program Direct
Weatherization Assistance for Low-Income Persons Direct
Office of Energy Research Financial Assistance Program Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
University Coal Research Through: Georgia Tech Research Corporation

77.003 77.)()()(
81.041 81.042 81.049
81.057

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

XI98444-98-0
T 902858-01-2 Various
CX825769-01-0

675,521
301,805
103,359
1,547,746
1,252,125
57,928
24,676 (R)
82,604
3,898
191,096 (R) 782,418 (R)
465
206,596 (R) 55,871 (R)
1,236,446
60,345,200

220,546,190

Various

17,574
_ _ _ _ _9::".,3'"1c:...! '(R)
26,885
1,094,092 1,543,441
110,395 (R) 1,338,078 (R) 1,725,611 (R)
3,174,084
3,462 (R)

E - 20

State of Georgia - - - - - - - - - -
SChedule of Expmditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Energy, U. S. Department of
Renewable Energy Research and Development Through: Consortium Plant Biotech Research Through: University ofGeorgia Research Foundation
Nuclear Energy, Reactor Systems, Development, and Technology Direct
Other Federal Assistance Direct Through: Georgia Tech Research Corporation Through: Medical College of Georgia Research Institute Through: National Institute for Petroleum and Energy Research Through: University ofGeorgia Research Foundation Through: Xavier University
AGENCY TOTAL
United States Information Agency
Other Federal Assistance Direct
AGENCY TOTAL
Federal Emergency Management Agency
Community-Based Anti-Arson Program Direct
Hazardous Materials Training Program for Implementation of the SuperfWld Amendment and Reauthorization Act (SARA) of 1986 Direct
Community Assistance Program. State Support Services Element (CAP-SSSE)
Direct
State Disaster Preparedness Grants Direct
Hazard Mitigation Assistance Direct
Emergency Management - State and Local Assistance Direct
Mitigation Assistance Direct
Flood Mitigation Assistance Direct
Disaster Unemployment Assistance Direct
Individual and Family Grants Direct
Public Assistance Grants Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

81.087 81.095 81.XXX

Various Various

G4P51609 Various

82. XXX
83.008 83.011
83.105 83.505 83.519 83.534 83.535 83.536 83.541 83.543 83.544

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

14,090 (R) 57,206 (R) 71,296
531,192
2,095,1l6 (R) 3,118,157 (R)
135,461 (R) -200
11,862,603 (R) 140,755
17,351,892
23,769,459
226,897 (R)
226,897

5.000
75,679
160,000 19.637 39,179
2,266,597 259,643 11,874 20,528 519,170
64.634,978

E - 21

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 1999

Federal Emergency Management Agency
Disaster Housing Program Direct
Project Impact - Building Disaster Resistant Communities Direct
Other Federal Assistance Tbrough: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
AGENCY TOTAL
Education, U. S. Department of
Adult Education - State Grant Program Direct
Federal Supplemental Educational Opportunity Grants (SFA) Direct
Title I Grants to Local Educational Agencies Direct
Migrant Education - Basic State Grant Program Direct Through: Southern Pine Migrant Educational Agency
Title I Program for Neglected and Delinquent Children Direct
Undergraduate International Studies and Foreign Language Programs
Direct
International: Overseas ~ Group Projects Abroad Direct
Special Education - Irmovation and Development Direct
Early Education for Children with Disabilities Through: University of Kansas
Services for Children with Deaf-Blindness Direct
Special Education - Grants to States (SEC) Direct Through: University of Georgia Research Foundation
Special Education - Personnel Development and Parent Training Direct
Higher Education - Institutional Aid Direct
Federal Family Education Loans (SFA) Direct
Federal Work-Study Program (SFA) Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

83.545 83.551 83.XXX

MW-97-CO-0375/FEMA

84.002 84.007 84.010 84.011
84.013 84.016 84.021 84.023 84.024 84.025 84.027
84.029 84.031 84.032 84.033

H024D7OO28 H023C40115

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

654,602
56,420
46,753 (R) 149,843 (R) 196,596
68,919,903

9,765,642 7,027,115 200,382,285 4,454,372
19,358 4,473,730 1,412,522
70,667 78,891 110,377 (R) 79,297 (R) 211,769 86,057,396 -8,941 86,048,455
269,944 (R) 3,551,586 37,336,541 (3) 7,846,159

1,789,000,000 (3)

E - 22

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards For the Rscal Year Ended June 30. 1999

Education, U. S. Department of
Public Library Services Direct
Interlibrary Cooperation and Resource Sharing Direct
Federal Perkins Loan Program Federal Capital Contributions (SFA)
Direct
TRlO - Student Support Services (fRIO) Direct
TRlO - Talent Search (fRIO) Direct
TRlO - Upward Bound (fRIO) Direct
Vocational Education - Basic Grants to States Direct
Federal Pen Grant Program (SFA) Direct
TRlO - Educational Opportunity Cente", Direct
State Student Incentives Grants Direct
Special Education - Postsecondary Education Programs for Persons with Disabilities Through: University ofTelUle5See
Special Education - Program for Severely Disabled Children Direct
Fund for the Improvement of Postsecondary Education Direct
Educational Research and Development Direct
Rehabilitation Services - Vocational Rehabilitation Grants to States
Direct Through: Georgia Tech Research Corporation
Rehabilitation Long-Tenn Training Direct
National Institute on Disability and Rehabilitation Research Direct Through: University ofGeorgia Research Foundation
Migrant Education - College Assistance Migrant Program Direct
Business and International Education Direct
Training Interpreters for Individuals who are Deafand Individuals who are Deaf-Blind Through: University of Tennessee
Rehabilitation Services - Client Assistance Program Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

84.034 84.035 84.038
84.042 84.044 84.047 84.048 84.063 84.066 84.069 84.078
84.086 84.116 84.117 84.126

8666-02-03

84.129 84.133
84.149 84.153 84.160 84.161

H133G980023-99 7835-03-03

1,228,760 313,330
763,960 (3) 1,526,665 1,212,598 (R) 2,401,760 (R) 29,t 76,635 120,620,246
976,617 (R) 45,635 (R)
42,473 207,053 125,649 (R)
1,407
65,942,617 12,489 (R)
65,955,106 181,950 (R) 6,603 (R) 62,457 (R) 69,060 14,849 60,802
5,816 260,262

38,429,446 (3)

E - 23

State of Georgia - - - - - - - - - -
Schedule of Expenditures of Federal Awards For the FIScal Year Ended June 30, 1999

Education, U. S. Department of
hnmigrant Education Direct
Eisenhower Malhematics and Science Education State Grants
Through: Muscogee County Board of Education
Independent Living - State Grants Direct
Special Education - Preschool Grants (SEC) Direct Through: Various Boards of Education
Rehabilitation Services - Independent Living Services for Older Individuals \\!he are Blind
Direct
Special Education - Grants for Infants and Families with Disabilities
Direct
Safe and Drug-Free Schools and CommWlities National Programs
Direct
Byrd Honors Scholarships Direct
Safe and Drug-Free Schools and Communities - Slate Grants Direct
Supported Employment Services for Individuals with Severe Disabilities
Direct
Bilingual Education Support Services Direct
Education for Homeless Children and Youth Direct
Graduate Assistance in Areas of National Need Direct
Even Start - State Educational Agencies Direct
Fund for the Improvement of Education Direct
Capital Expenses Direct
McNair Post-Baccalaureate Achievement Direct
Centers for International Business Education Through: Georgia Tech Research Corporation
State Grants for Assistive Teclmology Direct
Income Contingent Loan Program Direct
Special Projects and Demonstrations for Providing Vocational Rehabilitation Services to Individuals with Severe Disabilities
Direct

CFDA NUMBER
84.162 84.164 84.169 84.173
84.177 84.181
84.184 84.185 84.186 84.187 84.194 84.196 84.200 84.213 84.215 84.216 84.217 84.220 84.224 84.226 84.235

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

1,906,109
6,205 (1) 352,760 13,772,115
73,789 13,845,904
181,731
10,789,927
428 (R) 1,047,000 13,480,319
1,275,189 101,396 792,932 78,658
2,907,441 28,614 29,325
228,320 282,224 (R) 794,326
134,826 (R)

143,041 (3)

E - 24

State of Georgia- - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Education, U. S. Department of
Tech-Prep Education Direct
Literacy Programs for Prisoners Direct
Rehabilitation Training - Continuing Education Direct
Rehabilitation Training - State Vocational Rehabilitation Unit In-Service Training
Direct
Federal Direct Loan (SFA) Direct
Goals 2000 - State and Local Education Systemic Improvement Grants
Direct
Eisenhower Professional Development State Grants Direct Though: Georgia Tech Research Corporation
Charter Schools Direct
Innovative Education Program Strategies Direct
National Institute on the Education of At-Risk Students Through: University of Georgia Research Foundation
Technology Literacy Challenge Fund Grants Direct
Special Education - State Program Improvement Grants for Children with Disabilities Direct
Special Education - Research and Innovation to Improve Services and Results for Children with Disabilities
Direct
Special Education - Personnel Preparation to Improve Services and Results for Children with Disabilities
Direct
Advanced Placement Test Fee Payment Program Direct
Grants to States for Incarcerated Youth Offenders Direct
Comprehensive School Reform Demonstration Direct
Other Federal Assistance Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation Through: University of North Carolina at Greensboro
AGENCY TOTAL

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

84.243 84.255 84.264 84.265 84.268 84.276 84.281

84.282 84.298 84.306 84.318 84.323
84.324
84.325 84.330 84.331 84.332 84.XXX

R306F60158-97
Various SRV98FXL-509

2,362,412 411,321 828,099
287,542 (R) 266,003,621
12,670,631 8,683,589 (R)
60,381 (R) 8,743,970 1,753,259 8,965,513
239,296 (R) 10,588,611
899,550
11,443 (R)
127,910 (R) 244
90,374 2,786,417
672,988 (R) 349,240 (R)
27,670 (R) 50,000 1,099,898 949,989,358

1,827,572,487

E - 25

State of GeorBla - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Rscal Year Ended June 30, 1999

Consumer Product Safety Commission, U. S. Other Federal Assistance Direct
AGENCY TOTAL
National Archives and Records Administration National Historical Publications and Records Grants Direct Through: Georgia Historical Records Advisory Board

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

87.XXX

89.003

478-002-000-251

AGENCY TOTAL
Health and Human Services, U. S. Department of
Special Programs for the Aging - Title VII, Chapter 3 Programs for Prevention of Elder Abuse, Neglect, and Exploitation
Direct
Special Programs for the Aging - Title VII, Chapter 2 Long-Tenn Care Ombudsman Services for Older Individuals Direct
Special Programs for the Aging - Title III, Part F - Disease Prevention and Health Promotion Services
Direct
Special Programs for the Aging - Title m, Part B -
Grants for Supportive Services and Senior Centers (AC) Direct
Special Programs for the Aging - Title m, Part C -
Nutrition Services (AC) Direct
Special Programs for the Aging - Title m, Part D - In-Home
Services for Frail Older Individuals Direct
Special Programs for the Aging - Title IV - Training, Research and Discretionary Projects and Programs
Direct
Demonstration Grants for Residential Treatment for Women and Their Children Through: Thomas County MHMRSA Area Services
Food and Drug Administration - Research Direct Through: University ofGeorgia Research Foundation
Minority International Research Training Grant in the Biomedical and Behavioral Sciences
Direct
MatemaJ and Child Health Federal Consolidated Programs Direct
Biological Response to Environmental Health Hazards Direct Through: Medical College of Georgia Research Institute

93.041
93.042 93.043 93.044 93.045 93.046 93.048 93.102 93.103
93.106 93.110 93.113

IHD8TI00594-03 Various

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

5,405 5,405

85,801 3;J78 89,779
89,779

91,275
90,258
315,347
6,156,361
9,298,705
209,020
33,141
17,550 (R) 44,827 209,974 (R) 254,801
59,829 246,646
166 (R) -5,755 (R) -5,589

E - 26

State of Georgia - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Health and Human Services, U. S. Department of
Biometry and Risk Estimation - Health Risks from Environmental Exposures Through: University of Georgia Research Corporation
Project Grants and Cooperative Agreements for Tuberculosis Control Programs
Direct
Grants for Technical Assistance Activities Related to the Block Gr.mt for Community Mental Health Services - Technical Assistance Centers for Evaluation
Direct
Oral Diseases and Disorders Research Through: Medical College of Georgia Research Institute Through: University of Georgia Research FOlmdation
Nurse Anesthetist Traineeships Through: Medical College of Georgia Research Institute
Mental Health Planning and Demonstration Projects Direct
Emergency Medical Services for Children Direct
Primary Care Services - Resource Coordination and Development PrimaJY Care Offices
Direct
Injury Prevention and Control Research and State and Community Based Programs
Direct Tbrough; University ofGeorgia Research Corporation
Financial Assistance for Disadvantaged Health Professions Students
Direct
Projects for AssiStance in Transition from Homelessness (PATIl)
Direct
HIV Demonstration Program for Children, Adolescents, and Women Direct
Health Program for Toxic Substances and Disease Registry Tbrough: Georgia Tech Research Corporation
Grants for State Loan Repayment Direct
International Cooperative Biodiversity Groups Program Tbrough: University of Georgia Research Corporation
Human Genome Research Direct Through: Georgia Tech Research Corporation Through: University ofGeorgia Research Foundation

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

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 93.168 93.172

lR01ES08346

10,574 (R)
2,168,708

DE09761
OCCR415604-01 $
TWOl009 HG01362A

145,333
1,070,707 (R) 138,916 (R)
1,209,623 17,719 -2,338
139,882
141,302
195,227
36,295 (R)
231,522
40,640 (R)
305,000
478,540
153,213 (R)
25,000
138,581 (R)
57,777
126,682 (R) 436 (R)
184,895

125,804

E - 27

State of Georgia
Schedule of Expmditures of Federal Awards For the Fiscal Year Ef1ded JUf1e 30, 1999

Health and Human Services, U. S. Department of
Research Related to Deafuess and Communication Disorders Direct Through: Georgia Tech Research Corporation Through: Medical College ofGeorgia Research Institute
Nursing Education Opportunities for Individuals from Disadvantaged Backgrounds
Direct
National Research Services Awards Direct
Allied Health Project Grants Direct
Interdiscipliruuy Training for Health Care for Rural Areas Direct
Childhood Lead Poisoning Prevention Projects - State and Community-Based Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children
Direct
Human Health Studies - Applied Research and Development Direct
Hansen's Disease National Ambulatory Care Program Direct
Family Planning - Services Direct
Health Care Systems Cost and Access Research and Development Grants
Direct Through: Medical College of Georgia Research Institute
Indian Health Service - Health Management Development Program
1brough: Medical College ofGeoTgia Research Institute
Traumatic Brain Injury Direct
Abstinence Education Direct
Policy Research and Evaluation Grants Direct
Mental Health Research GranlS Direct Through: Medical College ofGeorgia Research Institute Through: University ofGeorgia Research Foundation
Health Centers Grants for Migratory and Seasonal Fannworkers
Direct
Immunization Grants Direct
Alcohol National Research Service Awards for Research Training
Tbrough: University of Georgia Research Foundation

CFDA NUMBER

PAsS-THROUGH ENTITY IDENTIFYING
NUMBER

93.173

93.178 93.186 93.191 93.192 93.197
93.206 93.215 93.217 93.226

93.228 93.234 93.235 93.239 93.242
93.246 93.268 93.272

Various Various

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

127,953 (R) 63,709 (R) 29,160 (R)
220,822
4,300
149,309 (R)
144,326 172,871
-20,600
137,030 (R)
120,433 5,892,169
408,533
132,411 (R)
540,944
58 (R) 116,117 1,207,121 273,306
518,307 (R) 452,387 (R) 681,354 (R)
1,652,048
841,104 7,671,665
105,077 (R)

7,844,136 (4)

E - 28

State of Georgia - - - - - - - - -
SChedule of Expmditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Health and Human Services, U. S. Department of
Alcohol Research Programs Through: Medical College ofGeorgia Research Institute Though: University ofGeorgia Research Foundation
Drug Abuse National Research Service Awards for Research Training Direct Through: Georgia Tech Research Corporation
Drug Abuse Research Programs Direct Through: Georgia Tech Research Corporation Through: Medical College ofGeorgia Research Institute Through: University ofGeorgia Research Foundation
Mental Health Research Career/Scientist Development Awards
Direct Through: University ofGeorgia Research Foundation
Mental Health National Research Service Awards for Research Training
Through: University of Georgia Research Foundation
Centers for Disease Control and Prevention - Investigations and Technical Assistance
Direct
Nurse Practitioner and Nurse.Midwifery Education Programs Direct
Comparative Medicine Direct Through: Medical College of Georgia Research Institute Through: University ofGeorgia Research Fowuiation
Health Professions Student Loans, Including Primary Care Loans/Loans for Disadvantaged Students (SFA) Direct
Professional Nurse Traineeships Direct
Nursing - Special Projects Direct
Nursing Research Direct
Nursing Student Loans (SFA) Direct
Biomedical Technology Direct Through: Medical College of Georgia Research Institute Through: University ofGeorgia Research Foundation
Grants for Graduate Training in Family Medicine Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

93.273 93.278

Various

93.279
93.281
93.282 93.283 93.298 93.306
93.342 93.358 93.359 93.361 93.364 93.371
93.379

Various Various MH11755 RRI1733
RR05351A

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

108,841 (R) 1,025,776 (R) 1,134,617
20,994 (R) 19,357 (R) 40,351
138,915 (R) 325,221 (R) 744,410 (R) 352,037 (R) 1,560,583
4 167,565 (R) 167,569
1,275 (R)
2,442,912
164,213
832,417 (R) 97,572 121,274 (R)
1,051,263
-626,625 (3)
300,191
248,531
36,496 (R)
-5,547 (3)
10,584 (R) 17,353 797,888 (R) 825,825
151,020

3,437,279 (3) 1,127,863 (3)

E - 29

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Health and Human Services, U. S. Department of
Research Infrastructure Tbrough: University ofGeorgia Research Foundation
Academic Research 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
Cancer Treatment Research Through: Medical College of Georgia Research Institute
Cancer Biology Research Through: Medical College of Georgia Research Institute Through: University ofGeorgia Research Foundation
Cancer Research Manpower Through: University ofGeorgia Research Foundation
Cancer Control Through: Medical College of Georgia Research Institute
Family Preservation and Support Services Direct
Temporary Assistance for Needy Families Direct
Family Support Payments to States - Assistance Payments Through: University of Georgia Research Foundation
Job Opportunities and Basic Skills Training Direct
Child Support Enforcement Direct
State Legalization Impact Assistance Grants Direct
Refugee and Entrant Assistance - State Administered Programs
Direct
Low-Income Home Energy Assistance Direct
Community Services Block Grant Direct
Community Services Block Grant - Discretionary Awards Through: National Collegiate Athletic Association
Community Services Block Grant Discretionary Awards Community Food and Nutrition
Direct
Child Care for Families At-Risk of Welfare Dependency Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

93.389 93.390 93.393
93.395 93.396
93.398 93.399 93.556 93.558 93.560 93.561 93.563 93.565 93.566 93.568 93.569 93.570 93.571 93.574

RRl1473A Various Various
CA64462A CA68072-04
427-93-91231

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

67,529 (R) 74,034 (R) 140,705 (R) 117,455 (R) 36,415 (R)
294,575
266,665 (R) 7,461 (R)
68,434
130,384 (R)
206,279
92,438 (R) 386,355 (R)
7,968,253 227,749,936
143,229 (R)
-9,650 (I) 68,398,344
134,852
6,277,984 23,378,134 13,018,009
165,396
65,733

E - 30

State of Georgia- - - - - - - - -
SChedule of Expmditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Health and Human Services, U. S. Department of
Child Care and Development Block Grant (CCC) Direct Through: Georgia Child Care Council
Refugee and Entrant Assistance - Discretionary Grants Direct
Refugee and Entrant Assistance - Targeted Assistance Direct
State Court Improvement Program Direct
Child Care Mandatory and Matching Funds of the Child Care and Development Fund (CCC) Direct
Grants to States for Access and Visitation Programs Direct
Head Start Direct Through: Ninth District Opportunity, Incorporated Through: University ofGeorgia Research FowlCiation
Developmental Disabilities Basic Support and Advocacy Grants
Direct Through: Georgia Council on Development Disabilities Through: Georgia Tech Research Corporation
Developmental Disabilities Projects of National Significance Direct
Developmental Disabilities University Affiliated Programs Direct
Children's Justice Grants to States Direct
Child Welfare Services - State Grants Direct
Adoption Opportunities Direct
Temporary Child Care and Crisis Nurseries Direct
Foster Care Title IV-E Direct
Adoption Assistance Direct
Social SelVices Block Grant Direct Through: City of Albany
Child Abuse and Neglect State Grants Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

93.575
93.576 93.584 93.586 93.596 93.597 93.600
93.630

427-93-71553&71554 427-93-17429
Various

93.631 93.632 93.643 93.645 93.652 93.656 93.658 93.659 93.667
93.669

1200-006-20-00-012-3000

33,819,128 129,963 19,213 14,332
33,982,636
370,055
1,320,091
491,431
65,969,849
201,034
2,655,167 (R) 17,280 29,625 (R)
2,702,072
2,285,691 (R) 77,278 (R) 37,649 (R)
2,400,618
2,514 (R)
78,117 (R)
352,708
8,513,915
103,047
2,060
40,034,838
17,596,245
84,344,149 188,025
84,532,174
491,227

E - 31

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30. 1999

Health and Human Services, U. S. Department of
Child Abuse and Neglect Discretionary Activities Direct
Family Violence Prevention and Services/Grants for Battered Women's Shelters - Grants to States and Indian Tribes
Direct
Community-Based Prevention Program Direct
Independent Living Direct
State Children's Insurance Program Direct
Medicare Hospital Insurance Direct
State Medicaid Fraud Control Units (MC) Direct
State Survey and Certification of Health Care Providers and Suppliers (MC)
Direct
Medical Assistance Program (MC) Direct
Health Care Financing Research, Demonstrations and Evaluations
Direct Through: Medical College ofGeorgia Research Institute

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

93.670 93.671
93.672 93.674 93.767 93.773 93.775 93.777
93.778 93.779

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

Scholarships for Students of Exceptional Financial Need (SFA) Direct
Cell Biology and Biophysics Research Direct Through: Georgia Tech Research Corporation Through: Medical College ofGeorgia Research Institute Through: University ofGeorgia Research Foundation

93.820 93.821

Various

Health Careers Opportunity Program Through: Howard University
Area Health Education Centers Direct
Heart and Vascular Diseases Research Through: Georgia Tech Research Corporation Through: Medical College ofGeorgia Research Institute Through: University of Georgia Research Foundation

93.822 93.824 93.837

ID 18MB02773-02 Various

Lung Diseases Research Through: Medical College of Georgia Research Institute Through: University ofGeorgia Research Foundation

93.838

Various

Blood Diseases and Resources Research Direct Through: Georgia Tech Research Corporation Through: Medical College of Georgia Research Institute

93.839

E - 32

State of Georgia - - - - - - - -
SChedule of Expmditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Health and Human Services, U. S. Department of
Arthritis, Musculoskeletal and Skin Diseases Research Through: Medical College ofGeorgia Research Institute
Diabetes, Endocrinology and Metabolism Research Through: Georgia Tech Research Corporation Through: Medical College of Georgia Research Institute Through: University ofGeorgia Research FOlUldation
Digestive Diseases and Nutrition Research Direct Through: Medical College ofGeorgia Research Institute Through: University of Georgia Research Foundation
Kidney Diseases, Urology and Hematology Research Through: Medical College of Georgia Research Institute Through: University ofGeorgia Research Foundation
Clinical Research Related to Neurological Disorders Through: Medical College ofGeorgia Research Institute
Biological Basis Research in the Neurosciences Direct Through: Medical College of Georgia Research Institute Through: University of Georgia Research Foundation
Allergy, Immunology and Transplantation Research Through: Georgia Tech Research Corporation Through: Medical College ofGeorgia Research Institute Through: University of Georgia Research Foundation
Microbiology and Infectious Diseases Research Direct Through: Medical College of Georgia Research Institute Through: National Institute ofHealth Through: University of Georgia Research Foundation
Pharmacology, Physiology, and Biorelated Chemistry Research Direct Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
Genetics and Development Biology Research Through: Georgia Tech Research Corporation Through: Medical College ofGeorgia Research Institute Through: University ofGeorgia Research Foundation
Population Research Direct Through: Medical College of Georgia Research Institute

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

93.846 93.847 93.848 93.849 93.853 93.854 93.855 93.856
93.859
93.862 93.864

Various DK47246 Various
08018030R25415 Al38262A Various Various Various

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

152,770 (R)
13,562 (R) 159,900 (R) 307,370 (R) 480,832
409,916 (R) 903,513 (R) 240,023 (R) 1,553,452
95,316 (R) 380,597 (R) 475,913
42,414 (R)
586,250 (R) 269,707 (R)
119 (R) 856,076
119,155 (R) 552,231 (R) 106,595 (R) 777,981
874,828 (R) 323,123 (R)
95,461 (R) 2,377,425 (R) 3,670,837
1,254 (R) 534,130 (R) 1,013,949 (R) 1,549,333
66,345 (R) 52,950 (R) 862,596 (R) 981,891
80,987 362,059 (R) 443,046

E - 33

State of Georgia - - - - - - - - -
SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 3D, 1999

Health and Human Services, U. S. Department of
Center for Research for Mothers and Children Direct Through: Medical College of Georgia Research Institute Through: University ofGeorgia Research Foundation
Aging Research Direct Through: Georgia Tech Research Corporation Through: University ofGeorgia Research Fowulation
Vision Research Direct Through: Georgia Tech Research Corporation Through: Medical College of Georgia Research Institute
Grants for Physician Assistant Training Program Direct
Resource and Manpower Development in the Environmental Health Sciences Through; University ofGeorgia Research Foundation
Grants for Faculty Development in Family Medicine Direct
Rural Health Medical Education Demonstration Projects Direct
Grants to States for Operation of Offices ofRural Health Direct
Nurse Anesthetist Education Programs Direct
HIV Care Fonnula Grants Direct
Grants to Provide Outpatient Early InteIVention Services with Respect to HIV Disease
Direct
Cooperative Agreements for State-Based Comprehensive Breast and CeIVical Cancer Early Detection Programs
Direct
Scholarships for Health Professions Students from Disadvantaged Backgrounds (SFA)
Direct
Center for Medical Rehabilitation Research Through: University of Georgia Research Foundation
Demonstration Grants to States for Community Scholarships Direct
Fogarty International Research Collaboration Award Direct Through: University of Georgia Research Fowl<iation
Cooperative Agreements to Support Comprehensive School Health Programs to Prevent the Spread ofHIV
and Other Important Health Problems Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

93.865 93.866 93.867

Various Various

93.886 93.894 93.895 93.906 93.913 93.916 93.917 93.918 93.919 93.925 93.929 93.931 93.934
93.938

POO12A
523429B Various

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

1,381,971 (R) 727,066 (R) 703,937 (R)
2,812,974 190,689 (R) 588,767 (R) 603,274 (R)
1,382,730 -1,844 (R) -7,088 (R)
1,441,504 (R) 1,432,572
29,928
6,124 (R)
155,717 200,146 (R)
74,699 -6,315 16,457,684
529,031
2,700,354
148,727 (R) 19,954 (R) 33,332 55 48,576 (R) 48,631
323,210

E - 34

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Erlded JUrle 30, 1999

Health and Human Services, U. S. Department of
HIV Prevention Activities - Health Department Based Direct
Epidemiologic Research Studies of Acquired Immunodeficiency Syndrome (AIDS) and Human Immunodeficiency Virus (fITV) Infection in Selected Population Groups
Through: University of Georgia Research Foundation
Human Immunodeficiency Virus (HIV)IAcquired Immunodeficiency Virus Syndrome (AIDS) Surveillance Direct
Assistance Program for Chronic Disease Prevention and Control
Direct
Community - Based Comprehensive HIV/STDI1B Outreach Services for High Risk Substance Abusers Demonstration Program
Direct
Demonstration Grants to States with Respect to Alzheimer's Disease Direct
Agricultural Health and Safety Programs Direct Through: University of Georgia Research FOlUldation
Block Grants for Community Mental Health Services Direct
Block Grants for Prevention and Treatment of Substance Abuse
Direct Through: University of Georgia Research Foundation
Health Administration Traineeships and Special Projects Program
Direct
Preventive Health Services - Sexually Transmitted Diseases Control Grants
Direct
Mental Health Disaster Assistance and Emergency Mental Health
Direct
Grants for Establishment of Departments ofFamily Medicine
Direct
Cooperative Agreements for StateMBased Diabetes Control Programs and Evaluation of Swveillance Systems
Direct
Senior International Fellowships Through: Medical College of Georgia Research Institute
Preventive Health and Health Services Block Grant Direct
Maternal and Child Health Services Block Grant to the States
Direct

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

93.940 93.943
93.944 93.945 93.949 93.951 93.956
93.958 93.959
93.962 93.977 93.982 93.984 93.988 93.989 93.991 93.994

U64/CCU409687
427-93-42057 Various

6,485,031
212,985 (R) 736,577 177,292
314,457 (R) 211,239
-2,287 34,101 (R) 31,814 5,852,361 29,069,257 28,550 29,097,807 22,865 2,572,732
440 112,542 289,097
26,924 3,758,090 16,788,873

22,000 632,615

E - 35

State of Georgia - - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

Health and Human Services, U. S. Department of
Adolescent Family Life - Demonstration Projects Direct
Other Federal Assistance Direct Through: American Council on Education Tbrough: Centers for Disease Control Through: Dougherty County Board of Health Through: Georgia Association Primary Health Care Through: Georgia Child Care Council Through: Georgia Tech Research Corporation Through: National Collegiate Athletic Association Through: Southwest Georgia Community Health Institute Through: University of Cotmecticut Through: University of Florida Through: University ofGeorgia Research Foundation Through: Virginia Tech

CFDA NUMBER
93.995 93.XXX

PASS-THROUGH ENTITY IDENTIFYING
NUMBER
M34331 Various

AGENCY TOTAL
Corporation for National and Community Service
Learn and Serve America School and Community Based Programs
Direct
Learn and Serve America - Higher Education Direct Tbrough: Atlanta University Center Tbrough: Campus Compact

94.004 94.005

AmeriCorps Direcl Tbrough: The Georgia Commission for NationaVCommunity Service

94.006

Training and Technical Assistance Direct

94.009

Senior Companion Program (FGCC) Direct

94.016

Other Federal Assistance

94.XXX

Tbrough: The Georgia Commission for NationaVCommunity Service

AGENCY TOTAL

Social Security Administration
Social Security - Disability Insurance (DI/SSI) Direct

96.001

AGENCY TOTAL

SEAMS

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

115,329 (R)

524,696 39,280 27,415 18,640
9,803 -1,814 2,071,241 99,708 3,480 12,423 3,849 3,687,281 3,107

(R),(3) (R) (R)
(R) (R)
(R) (R) (R)

6,499,109

3,117,818,262

839,956 (3)
839,956 14,029,653

480,442 24,684
1,596 (R) 1,494 (R) 27,774 4,256,366 53,880 (R) 4,310,246 364,285 148,726 -325 (R) 5,331,148
46,058,729 46,058,729

E - 36

- - - - - - - - - - State of Georgia - - - - - - - - - -
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

State Justice Institute Other Federal Assistance Direct
AGENCY TOTAL
GRAND TOTAL EXPENDITURES OF FEDERAL AWARDS

CFDA NUMBER

PASS-THROUGH ENTITY IDENTIFYING
NUMBER

MONETARY EXPENDITURES

98.XXX

10,181 10,181 6,420,064,938

NONMONETARY EXPENDITURES
2,597,625,667

E - 37

(This page intentionallv left blanR)

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the SChedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

PURPOSE OF THE SCHEDULE

Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, requires a Schedule ofExpenditures ofFederal Awards reflecting total expenditures for each Federal financial assistance program as identified in the Catalog of Federal Domestic Assistance (CFDA).

SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity - The accompanying schedule includes all Federal financial assistance programs administered by the State of Georgia for the fiscal year ended June 30, 1999. Refer to Appendix "A" for a comprehensive listing of organizational units comprising the financial 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 financial assistance is defined as assistance that 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 financial assistance programs. This approach resulted in 12 of28 Type A

programs and 5 Type B programs being selected as major programs for the State of Georgia. For the fiscal year

ended June 30, 1999, a Type A program is defined as any Federal program which exceeded $20,887,754 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 in the schedule.

OTHER

The following Notes provide additional pertinent information regarding Federal financial 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 $66,790,354 and State expenditures of$253,748,183.

(2) During the fiscal year ended June 30, 1999, the Georgia Department of Human Resources received $42,355,409 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 85,171 additional persons per month during fiscal year 1999.

E - 39

State of Georgia - - - - - - - - -
Notes to the Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

(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 06/30/99

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 Contribulions
Income Contingent Loan Program
Health Professions Student Loans, Including Primary Care Loans/Loans for Disadvantaged Students
Nursing Student Loans
Phannacy Loans (**)
Veterinary Medicine Loans (**)

o
32,225,324 5,660,600
o
229,938
-626,625 -7,504
-117,928 -103,935

o o
35,255,860 286,086
o
1,412
o o

0

1,582,214

957,897

216,507,004

132,988 884,843

4,039,186 1,789,000,000

247,936 $ 0

38,429,446 143,041

270,000 49,955,433
9,548,104 210,546,136
4,357,883

0

3,437,279

193,500

545

1,127,863

195,004

-200

403,168 $

0

436,788

(**) 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 of monetary 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 offood stamp benefits a household receives depends on the household's size and financial 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 offood stamp benefits distributed as approved by the Department was $492,206,741.
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

- - - - - - - - - - State of Georgia - - - - - - - - - -
Notes to the Schedule of Expmditures of Federal Awards
For the Fiscal Year Ended June 30, 1999

(5) Cluster programs are detailed on the Schedule ofCluster Programs and identified as follows on the Schedule ofExpenditures ofFederal Awards:

(AC) (CCC) (CNC) (DI/SSI) (EFAC) (ESC) (ESCC) (FTC) (FWC) (FSC) (FGCC) (HSC) (IC) (MC) (R) (S8PBC) (SEC) (SFA) (TRIO)

Aging Child Care Child Nutrition Disability Insurance/SSI Emergency Food Assistance Employment Service CDBG - Entitlement and (RUD-Administered) Small Cities Federal Transit Fish and Wildlife Food Stamp Foster Grandparent/Senior Companion Highway Safety Job Training Partnership Act Medicaid Research and Development Section 8 Project-Based Special Education Student Financial Aid TRIO

(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% of total Federal expenditures for the State of Georgia. Provided below is the amount of major programs awards provided to subrecipients:

CFDA NUMBER

GRANT PROGRAM

AJ\.fOUNT PROVIDED TO SUBRECIPIENTS

84.048 93.558

Job Training Partnership Act Cluster Vocational Education - Basic Grants to States Temporary Assistance for Needy Families Research and Development Cluster

$

609,877

14,009,260

81,387

19,488,955

Total

$

34,189,479

E - 41

(This page intentionallv left blanR)

Schedufe of Ouster WroBrams

- - - - - - - - - - State of Georgia - - - - - - - - - -
SChedule of Cluster Programs
For the Fiscal Year Ended June 30. 1999

Fish and Wildlife Cluster (FWC) Sport Fish Restoration Wildlife Restoration
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 Funds for Rural America - Research, Education, and Extension Activities Cooperative Extension Service

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

15.605 $ 15.611
$

4,840,824 3,862,483
8,703,307

10.551 $ 10.561
$

-1,044 $ 64,243,626 64,242,582 $

492,206,741 492,206,741

94.016 $

148,726

20.600 $

5,816,169

17.246 $
17.250
$

15,884,224 41,995,731
57,879,955

93.775 $ 93.777
93.778
$

2,358,039
2,810,580 2,325,585,236
2,330,753,855

10.001 $ 10.025 10.028 10.156 10.200 10.202 10.203 10.205
10.206
10.210
10.217 10.224
10.500

6,595 226,639
60,550 6,049
3,525,708 763,356
4,469,918
-9,088
1,546,512
49,895 119,438
66,156 9,534,363

E-46

- - - - - - - - - - State of Georgia - - - - - - - - - -
Schedule of Cluster Programs For the Fiscal Year Ended June 30. 1999

Aging Cluster (AC) Special Programs for the Aging - Title III, Part B Grants for Supportive Services and Senior Centers Special Programs for the Aging - Title III, Part C Nutrition Services
Child Care Cluster (CCC) Child Care and Development Block Grant Child Care Mandatory and Matching Funds of the Child Care and Development Fund
Child Nutrition Cluster (CNC) School Breakfast Program National School Lunch Program Special Milk Program for Children Summer Food Service Program for Children
Disability Insurance/SSI Cluster (DIISSI) Social Security - Disability Insurance
Emergency Food Assistance Cluster (EFAC) Emergency Food Assistance Program (Administrative Costs) Emergency Food Assistance Program (Food Commodities)
Employment Service Cluster (ESC) Employment Service Disabled Veterans' Outreach Program (DVOP) Local Veterans' Employment Representative Program
CDBG - Entitlement and (HUD-Administered) Small Cities Cluster (ESCC) Community Development Block Grants/Small Cities Program
Federal Transit Cluster (FTC) Federal Transit Capital Improvement Grants Federal Transit Capital and Operating Assistance Formula Grants

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

93.044 $
93.045
$
93.575 $ 93.596
$

6,156,361 9,298,705 15,455,066
33,982,636 65,969,849 99,952,485

10.553 $ 10.555 10.556 10.559
$

58,743,055 193,567,934
28,261 8,403,442
260,742,692

96.001 $

46,058,729

10.568 $
10.569
$

1,100,569 $
1,100,569 $

2,384,748 2,384,748

17.207 $ 17.801 17.804
$

24,296,870 1,803,358 1,542,607
27,642,835

14.219 $
20.500 $ 20.507
$

32,500
98,387 4,841,553 4,939,940

E - 45

State of G~or8ia - - - - - - - - - -
Schedule of Cluster Programs
For the Fiscal Year Ended JUlIe 30, 1999

Research and Development Cluster (R) Commodity Supplemental Food Program Forestry Research Cooperative Forestry Assistance International Agricultural Research Program International Training - Foreign Participant Scientific and Technical Cooperation Other Federal Assistance Research and Evaluation Program Geodetic Surveys and Services (Geodesy and Applications of the National Geodetic Reference System) Sea Grant Support Coastal Zone Management Estuarine Research Reserves Fisheries Development and Utilization Research and Development Grants and Cooperative Agreements Program Undersea Research Marine Fisheries Initiative Marine Research - Regional Programs Coastal Ocean Program Advanced Technology Program Other Federal Assistance Collaborative Research and Development Basic and Applied Scientific Research Military Medical Research and Development 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 U. S. Geological Survey - Research and Data Acquisition Historic Preservation Fund Grants-In-Aid Outdoor Recreation - Acquisition, Development and Planning Other Federal Assistance Other Federal Assistance Other Federal Assistance Other Federal Assistance Other Federal Assistance Other Federal Assistance Aerospace Education Services Program Technology Transfer Other Federal Assistance Promotion of the Arts - Grants to Organizations and Individuals

CFDA
NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

10.565 $ 10.652 10.664 10.961 10.962 10.963 IO.XXX 11.312 11.400
11.417 11.420 11.427
11.430 11.433 11.464 11.478 11.612 I1.XXX 12.114 12.300 12.420 12.600 12.630
12.800 12.901 12.910 12.XXX 14.XXX 15.607 15.615 15.618
15.805 15.808 15.904 15.916
15.XXX 17.XXX 19.XXX 20.XXX 21.XXX 39.XXX 43.001 43.002 43.XXX 45.024

122 646,550
97,730 16,887 9,557 4,158 2,520,052 75,414
11,655 1,473,897
14,080
43 14,520 3,727 2,337 11,669 154,641 5,268,974 5,972,873 12,824,086 29,594 106,756
1,244,360 4,241,393
74,398 1,778,090 72,685,761
97,696 18,516 35,058
18,331 9,026 108,859 83,004
8,962 1,946,143 1,065,079 6,449,540 1,043,201
46,390 14,170 111,033 7,143,116 1,801,008
5,000

E -47

State of Georgia - - - - - - - - -
SChedule of Cluster Programs For the Rscal Year Ended June 30. 1999

Research and Development Cluster (R) Promotion ofthe Humanities - Federal/State Partnership Promotion of the Humanities - Division of Preservation and Access 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 Polar Programs Other Federal Assistance Business Development Assistance to Small Business Small Business Development Center Other Federal Assistance Blind Rehabilitation Centers Veterans Nursing Home Care Veterans State Hospital Care Other Federal Assistance Water Quality Management Planning Wetlands Protection - Development Grants National Pollutant Discharge Elimination System Related State Program Grants Environmental Protection - Consolidated Research Solid Waste Management Assistance Other Federal Assistance Other Federal Assistance Office of Energy Research Financial Assistance Program University Coal Research Renewable Energy Research and Development 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 - Talent Search TRIO - Upward Bound TRIO - Educational Opportunity Centers State Student Incentives Grants Fund for the Improvement of Postsecondary Education Rehabilitation Services - Vocational Rehabilitation Grants to States Rehabilitation Long-Term Training National Institute on Disability and Rehabilitation Research Safe and Drug-Free Schools and Communities National Programs Centers for International Business Education

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

45.129 $ 45.149
45.XXX 47.041 47.049 47.050 47.070 47.074 47.075 47.076 47.078 47.XXX 59.005 59.037 60.XXX 64.007 64.010 64.016 64.XXX 66.454 66.461 66.463
66.500 66.808 66.XXX
nxxx
81.049 81.057 81.087 81.XXX 82.XXX 83.XXX 84.023 84.024 84.029
84.044 84.047 84.066 84.069 84.116 84.126
84.129 84.133 84.184
84.220

21,632
76,390 24,912 8,344,927 2,674,069 1,226,133 2,686,059 1,032,543 346,684 1,671,401
5,215 12,786,273
2,844 2,054,832
9,889 15 58
5,207 1,202,426
95,268 156
97,886 2,580,070
24,676 1,204,818
9,311 3,130,264
3,462 71,296 16,291,285 226,897 196,596 110,377 79,297
201,439 202,240 413,691 483,957
45,635 59,792
12,489 94,502 62,462
428 282,224

E - 48

- - - - - - - - - - State of Georgia - - - - - - - - - -
Schedule of Cluster Programs
For the Fiscal Year Ended June 30. 1999

Research and Development Cluster (R) Special Projects and Demonstrations for Providing Vocational Rehabilitation Services to Individuals with Severe Disabilities Rehabilitation Training -.state Vocational Rehabilitation Unit In-Service Training Eisenhower Professional Development State Grants National Institute on the Education of At-Risk Students Special Education - Research and Innovation to Improve Services and Results for Children with Disabilities Special Education - Personnel Preparation to Improve Services and Results for Children with Disabilities Other Federal Assistance Demonstration Grants for Residential Treatment for Women and Their Children Food and Drug Administration - Research Biological Response to Environmental Health Hazards Biometry and Risk Estimation - Health Risks from Environmental Exposures Oral Diseases and Disorders Research Injury Prevention and Control Research and State and Community Based Programs Financial Assistance for Disadvantaged Health Professions Students Health Program for Toxic Substances and Disease Registry International Cooperative Biodiversity Groups Program Human Genome Research Research Related to Deafness and Communication Disorders National Research Services Awards Human Health Studies - Applied Research and Development Health Care Systems Cost and Access 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 Nursing Research Biomedical Technology Research Infrastructure Academic Research Enhancement Award Cancer Cause and Prevention Research Cancer Treatment Research Cancer Biology Research

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

84.235 $
84.265
84.281 84.306 84.324
84.325
84.XX:X 93.102
93.103 93.1 13 93.115
93.121 93.136
93.139
93.161 93.168 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 93.361 93.371 93.389 93.390 93.393 93.395 93.396

134,826
90,414 1,349,404
239,296
11,443
127,910 998,421
17,550 209,974
-5,589
10,574 1,209,623
36,295
40,640 153,213 138,581 127,118 220,822 149,309 103,983
132,411
58 1,652,048'
105,077 1,134,617
40,351 1,560,582
167,565
1,275 953,690
36,496 808,472
67,529 74,034 294,576 266,665 137,845

E - 49

- - - - - - - - - - State of Georgia - - - - - - - - - -
SChedule of Cluster Programs For the FIScal Year Ended June 30. 1999

Research and Development Cluster (R)
Cancer Research Manpower Cancer Control Family Support Payments to States - Assistance Payments Head Start Developmental Disabilities Basic Support and
Advocacy Grants Developmental Disabilities Projects of National Significance Developmental Disabilities University Affiliated Programs Health Care Financing Research, Demonstrations
and Evaluations Cell 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 Allergy, Immunology and Transplantation Research Microbiology and Infectious Diseases Research Pharmacology, Physiology, and Biorelated
Chemistry Research Genetics and Development Biology Research Population Research Center for Research for Mothers and Children Aging Research Vision Research Resource and Manpower Development in the
Environmental Health Sciences Rural Health Medical Education Demonstration Projects Scholarships for Health Professions Students from
Disadvantaged Backgrounds Center for Medical Rehabilitation Research Fogarty International Research Collaboration Award Epidemiologic Research Studies of Acquired
Immunodeficiency Syndrome (AIDS) and Human Immunodeficiency Virus (HIV) Infection in Selected Population Groups Community - Based Comprehensive HIV/STD/TB Outreach Services for High Risk Substance Abusers Demonstration Program Agricultural Health and Safety Programs Adolescent Family Life - Demonstration Projects Other Federal Assistance Learn and Serve America - Higher Education AmeriCorps Other Federal Assistance

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

93.398 $ 93.399 93.560 93.600 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 93.894
93.906 93.925
93.929 93.934 93.943

92,438 386,355 143,229 581,463
318,497 2,514
78,117
3,461 1,508,929 3,415,955
518,320 2,347,010
152,770 480,832 1,553,452 475,913
42,414 856,077 777,981 3,350,387
1,549,332 981,891 362,059
2,812,974 1,362,879 1,432,572
6,124 94,054
129,923 19,954 48,576

93.949
93.956 93.995 93.XXX 94.005 94.006 94.XXX
$

212,985
314,457 34,101 115,329
5,794,026 3,090
53,880 -325
255,016,667

E - 50

- - - - - - - - - - State of Georgia - - - - - - - - - -
Schedule of Cluster Programs
For the Fiscal Year Ended June 30, 1999

Section 8 Project-Based Cluster (S8PBC) 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 Pen Grant Program Federal Direct Loan Health Professions Student Loans, Including Primary Care Loans/Loans for Disadvantaged Students Nursing Student Loans Scholarships for Students of Exceptional Financial Need Scholarships for Health Professions Students from Disadvantaged Backgrounds
TRIO Cluster (TRIO) TRIO - Student Support Services TRIO - Talent Search TRIO - Upward Bound

CFDA NUMBER

MONETARY EXPENDITURES

NONMONETARY EXPENDITURES

14.856 $

61,615,586

84.027 $ 84.173
$

86,048,455 13,845,904
99,894,359

84.007 $ 84.032 84.033 84.038
84.063 84.268 93.342
93.364 93.820 93.925
$

7,027,115 37,336,541 $
7,846,159
763,960 120,620,246 266,003,621
-626,625 -5,547 77,524
148,727
439,191,721 $

1,789,000,000 38,429,446
3,437,279 1,127,863
1,831,994,588

84.042 $ 84.044 84.047
$

1,526,665 1,212,598 2,401,760
5,141,023

E - 51

Section~ .T\uditce's ~ponses

---------- State of Georgia ----------
Auditee's Corrective Action Plans
For the: Fiscal Year Ended JUlIe: 30, 1999
Contact Person: Susan Z. Turner, V. P. Administrative Services Telephone: (912) 351-4401; Fax: (912) 351-4403; E-mail: sturner@savannah.tec.ga.us
GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION
Finding Control Number: FA-918-99-01 REPORTING Report Data Submitted to ED was Incorrect
GHEAC agrees to work with the lender and to solve reporting issues and to reconcile loan status differences. Further, GHEAC agrees that it will continue to diligently work with the holders of GHEAC loans utilizing the Umeported Loans Report to ensure that all holders to the extent they can be identified report timely and accurately to GHEAC. As we pursue this, it is worthwhile to note that due to bank closures in the 1980's, and the closing of the Eduserve service center, it is problematic to identify the holders of some loans in GHEAC's portfolio.
Contact Person: Cindy Abbot, Assistant Director for Program Administration Telephone: (770) 724-9133
GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION
Finding Control Number: FS-977-99-03 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Controls over General Fixed AssetslProperty Management
We concur with this finding. The Commission will re-evaluate all procedures involving the accountability for General Fixed Assets in FY 2000. This process will include the training and/or re-training of all GPB personnel involved with the purchasing, receiving, decaling, handling, cannibalizing or surplusing of equipment to ensure a workable system is designed and implemented in compliance with the State Property Management System Manual.
The Commission will enlist the assistance of its Board of Advisors for Broadcasting for possible recommendations to obtain a professional equipment inventory and appraisal service for the 1400 pieces of equipment with an approximate value of $16,000,000 currently recorded as one item on the inventory system.
A physical inventory will be conducted and completed by June 30, 2000.
Contact Person: Steve Smith, Director of Administrative Services Telephone: (404) 685-2521; fax: (404) 685-2268; E-mail: ssmith@gpb.org
NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8504-99-01 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
F-67

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corredive Adion Plans
For the Fiscal Year Ended June 30. 1999
WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8604-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
West Georgia RESA concurs with this finding. 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-8664-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
We concur with this fmding. The following information shows our corrective action plan for all audit fmdings and improper or questioned costs: 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 into conformity with Generally Accepted Accounting Principles. However, Oconee RESA 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. Date of Implementation: Upon receipt of new GDOE accounting software.
Contact Person: Frieda Brinson, Accounting Supervisor Telephone: (912)552-5178; ext. 227 Fax: (912)552-0446 E-mail: fbrinson@doe.kI2.ga.us
CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8724-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
We concur with this finding. At the present time we do not intend to address this issue. I am hoping that GASB Statement 34 will address this item and no longer make it a requirement.
Contact Person: Meredith Walter, Executive Director Telephone: (912) 937-5341
HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8764-99-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
Due to the fmanciallimitations 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 D. Bradfield, Executive Director Telephone: (912) 374-2240, Ext. 111; E-mail: june@lightwood.com
F-69

Summar! Scftedufe of
Wrior Y'ear ~indinBs and
Questioned Costs

- - - - - - - - - - State of Georgia - - - - - - - - - -
Summarv Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended JUlIe 30. 1999

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

COMMENTS

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

Department ofAdministrative Services

FS-401-97-02 Further Action Not Warranted

FS-401-97-03 Previously Reported Corrective Action Implemented

FS-401-98-01 Unresolved

See Comments - Page F-12

FS-401-98-02 Previously Reported Corrective Action Implemented

Department ofEducation

FS-414-97-02 Further Action Not Warranted

FS-414-97-03 Further Action Not Warranted

FS-414-98-04 Partially Resolved

See Comments - Page F-12

Department of Technical and Adult Education

FS-415-97-01 Further Action Not Warranted

FS-415-97-03 Further Action Not Warranted

FS-415-98-03 Partially Resolved

See Comments - Page F-13

Department ofMedical Assistance

FS-419-98-0 I Partially Resolved

See Finding Control Number FA-4l9-98-0l

Department ofHuman Resources

FS-427-97-01 Further Action Not Warranted

FS-427-98-02 Unresolved

See Comments - Page F-14

Department ofNatural Resources

FS-462-98-0l Unresolved

See Comments - Page F-17

Department of Corrections

FS-467-97-02 Further Action Not Warranted

FS-467-98-0 I Partially Resolved

See Comments - Page F-17

Public Service Commission

FS-470-97-0l Previously Reported Corrective Action Implemented

Board ofRegents ofthe University System ofGeorgia

FS-472-98-02 Previously Reported Corrective Action Implemented

Department ofRevenue

FS-474-97-0l Further Action Not Warranted

FS-474-97-02 Further Action Not Warranted

FS-474-97-03 Further Action Not Warranted

FS-474-97-05 Further Action Not Warranted

FS-474-98-02 Partially Resolved

See Comments - Page F-18

FS-474-98-03 Partially Resolved

See Comments - Page F-18

FS-474-98-05 Unresolved

See Comments - Page F-20

Department of Transportation

FS-484-97-02 Further Action Not Warranted

FS-484-98-0 I Partially Resolved

See Comments - Page F-21

Subsequent Injury Trust Fund

FS-489-97-01 Further Action Not Warranted

Georgia State University

FS-509-97-01 Further Action Not Warranted

FS-509-98-03 Previously Reported Corrective Action Implemented

F-5

---------- State of Geopgia----------
Summarv Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30. 1999

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

Albany State University FS-52l-97-0l Further Action Not Warranted FS-52l-97-02 Further Action Not Warranted Augusta State University FS-527-97-0l Previously Reported Corrective Action Implemented FS-527-97-02 Previously Reported Corrective Action Implemented FS-527-98-02 Previously Reported Corrective Action Implemented Clayton College and State University FS-528-97-02 Further Action Not Warranted FS-528-97-03 Further Action Not Warranted FS-528-98-03 Partially Resolved Fort Valley State University FS-533-97-03 Further Action Not Warranted FS-533-97-04 Previously Reported Corrective Action Implemented FS-533-97-06 Further Action Not Warranted Georgia Southern University 539-96-01 Partially Resolved FS-539-98-02 Unresolved Kennesaw State University 543-96-01 Partially Resolved Savannah State University 548-96-01 Partially Resolved 548-96-02 Further Action Not Warranted 548-96-03 Further Action Not Warranted Southern Polytechnic State University 550-96-01 Signficantly Differing Corrective Action Implemented 550-96-02 Previously Reported Corrective Action Implemented FS-550-97-0l Signficant1y Differing Corrective Action Implemented Valdosta State University FS-55l-97-02 Further Action Not Warranted Atlanta Metropolitan College 561-96-01 Unresolved 561-96-02 Unresolved Floyd College FS-573-97-02 Partially Resolved FS-573-97-03 Previously Reported Corrective Action Implemented FS-573-97-04 Partially Resolved FS-573-98-01 Previously Reported Corrective Action Implemented Middle Georgia College FS-584-97-0l Further Action Not Warranted South Georgia College FS-587-97-0l Further Action Not Warranted Georgia Military College FS-590-97-0l Further Action Not Warranted FS-590-97-02 Further Action Not Warranted FS-590-98-09 Unresolved

F-6

COMMENTS
See Comments - Page F-22 See Comments - Page F-23 See Comments - Page F-23 See Comments - Page F-24 See Comments - Page F-25 See Comments - Page F-25 See Comments - Page F-25 See Comments - Page F-26 See Comments - Page F-27 See Comments - Page F-28 See Comments - Page F-29 See Comments - Page F-29 See Comments - Page F-29
See Comments - Page F-30

- - - - - - - - - - State of Georgia - - - - - - - - - -
SummarY Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

Skidaway Institute ofOceanography FS-593-97-01 Further Action Not Warranted West Georgia Technical Institute 819-96-01 Further Action Not Warranted FS-819-97-01 Further Action Not Warranted Albany Technical Institute FS-820-97-05 Previously Reported Corrective Action Implemented FS-820-98-01 Partially Resolved Augusta Technical Institute FS-824-97-02 Partially Resolved Chattahoochee Technical Institute FS-827-97-03 Previously Reported Corrective Action Implemented Columbus Technical Institute FS-828-97-01 Further Action Not Warranted FS-828-98-01 Unresolved DeKalb Technical Institute FS-830-97-01 Previously Reported Corrective Action Implemented FS-830-97-03 Further Action Not Warranted FS-830-98-02 Partially Resolved Middle Georgia Technical Institute FS-836-97-01 Further Action Not Warranted Pickens Technical Institute FS-840-97-01 Previously Reported Corrective Action Implemented FS-840-97-02 Further Action Not Warranted FS-840-98-03 Partially Resolved Jekyll Island State Park Authority 910-96-02 Previously Reported Corrective Action Implemented FS-91 0-97-02 Previously Reported Corrective Action Implemented Georgia Housing and Finance Authority FS-926-97-01 Further Action Not Warranted Peace Officers' Annuity and Benefit Fund ofGeorgia 947-96-01 Partially Resolved
* Georgia Public Telecommunications Commission
FS-977- 98-04 Reference Current Year Comment FS-977-99-03 Northwest Georgia Regional Educational Service Agency FS-8504-97-01 Further Action Not Warranted FS-8504-98-01 Unresolved North Georgia RegionaZ Educational Service Agency FS-8524-97-02 Further Action Not Warranted FS-8524-98-01 Unresolved Pioneer Regional Educational Service Agency FS-8544-97-02 Further Action Not Warranted FS-8544-98-0 1 Unresolved Metropolitan Regional Educational Service Agency FS-8564-97-01 Further Action Not Warranted FS-8564-98-01 Unresolved

F-7

COMMENTS
See Comments - Page F-30 See Comments - Page F-30 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-34 See Comments - Page F-34

- - - - - - - - - - State of Georgia - - - - - - - - - -
Summarv SChedule of Prior Year Findings and Questioned Costs For the: Rscal Year Ende:d June: 30. 1999

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

Northeast Georgia Regional Educational Service Agency FS-8584-97-02 Further Action Not Warranted FS-8584-98-0 1 Unresolved West Georgia Regional Educational Service Agency FS-8604-97-0l Further Action Not Warranted FS-8604-98-01 Unresolved Oconee Regional Educational Service Agency FS-8664-97-01 Further Action Not Warranted FS-8664-98-01 Unresolved Chattahoochee-Flint Regional Educational Service Agency 8724-93-02 Further Action Not Warranted FS-8724-97-01 Further Action Not Warranted FS-8724-98-01 Unresolved Heart ofGeorgia Regional Educational Service Agency FS-8764-97-01 Further Action Not Warranted FS-8764-98-01 Unresolved First District Regional Educational Service Agency FS-8804-97-01 Further Action Not Warranted FS-8804-98-01 Unresolved Southwest Georgia Regional Educational Service Agency 8844-96-01 Further Action Not Warranted

COMMENTS 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-8

- - - - - - - - - State of G e o r g i a - - - - - - - - -
Summarv Schedule of Prior Year Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 1999

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Department ofAdministrative Services FA-40l-97-0l Further Action Not Warranted FA-40l-97-02 Further Action Not Warranted FA-40l-98-0l Further Action Not Warranted Department ofEducation FA-4l4-97-0l Further Action Not Warranted FA-4l4-97-02 Further Action Not Warranted FA-4l4-98-0l Partially Resolved FA-4l4-98-02 Partially Resolved Department of Technical and Adult Education FA-4l5-97-02 Further Action Not Warranted FA-4l5-98-01 Partially Resolved Department ofMedical Assistance FA-4l9-98-0 1 Partially Resolved FA-4l9-98-02 Previously Reported Corrective Action Implemented Department ofHuman Resources FA-427-97-0l Further Action Not Warranted FA-427-97-02 Further Action Not Warranted FA-427-97-03 Further Action Not Warranted FA-427-97-04 Further Action Not Warranted FA-427-98-0l Partially Resolved FA-427-98-02 Partially Resolved FA-427-98-03 Unresolved Department ofLabor FA-440-98-0l Unresolved FA-440-98-02 Unresolved FA-440-98-03 Previously Reported Corrective Action Implemented Georgia Institute ofTechnology FA-503-97-07 Previously Reported Corrective Action Implemented FA-503-97-08 Previously Reported Corrective Action Implemented FA-503-97-09 Previously Reported Corrective Action Implemented FA-503-97-l2 Previously Reported Corrective Action Implemented FA-503-97-l3 Previously Reported Corrective Action Implemented FA-503-98-0l Previously Reported Corrective Action Implemented FA-503-98-02 Previously Reported Corrective Action Implemented FA-503-98-03 Previously Reported Corrective Action Implemented FA-503-98-04 Previously Reported Corrective Action Implemented FA-503-98-05 Previously Reported Corrective Action Implemented Georgia State University FA-509-98-0 1 Partially Resolved University ofGeorgia FA-5l8-98-0l Previously Reported Corrective Action Implemented FA-5l8-98-02 Previously Reported Corrective Action Implemented FA-5l8-98-03 Previously Reported Corrective Action Implemented

COMMENTS
See Comments - Page F-12 See Comments - Page F-13 See Comments - Page F-14 See Comments - Page F-14
See Comments - Page F-14 See Comments - Page F-14 See Comments - Page F-15 See Comments - Page F-15 See Comments - Page F-15 See Comments - Page F-15 See Comments - Page F-16 See Comments - Page F-16
See Comments - Page F-2l

F-9

- - - - - - - - - - State of Georgia - - - - - - - - - -
SummarY SChedule of Prior Year Findings and Questioned Costs
For the FIScal Year Ended June 30. 1999

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

Albany State University FA-521-98-0 1 Partially Resolved FA-521-98-02 Partially Resolved Fort Valley State University 533-96-14 Unresolved 533-96-15 Unresolved 533-96-16 Unresolved 533-96-18 Unresolved 533-96-19 Unresolved FA-533-97-01 Further Action Not Warranted FA-533-97-02 Further Action Not Warranted FA-533-97-03 Further Action Not Warranted FA-533-97-04 Further Action Not Warranted FA-533-98-01 Previously Reported Corrective Action Implemented FA-533-98-02 Unresolved FA-533-98-03 Unresolved FA-533-98-04 Unresolved FA-533-98-05 Partially Resolved FA-533-98-06 Unresolved FA-533-98-07 Partially Resolved FA-533-98-08 Partially Resolved FA-533-98-09 Partially Resolved Georgia Southern University FA-539-98-01 Previously Reported Corrective Action Implemented Savannah State University FA-548-98-0 1 Previously Reported Corrective Action Implemented FA-548-98-02 Unresolved FA-548-98-03 Unresolved FA-548-98-04 Unresolved FA-548-98-05 Partially Resolved FA-548-98-06 Previously Reported Corrective Action Implemented FA-548-98-07 Partially Resolved Southern Polytechnic State University FA-550-97-01 Further Action Not Warranted FA-550-97-02 Further Action Not Warranted FA-550-98-01 Unresolved Valdosta State University 551-96-04 Partially Resolved State University of West Georgia FA-554-97-01 Partially Resolved FA-554-97-02 Partially Resolved FA-554-97-03 Previously Reported Corrective Action Implemented Atlanta Metropolitan College 561-96-02 Unresolved 561-96-04 Partially Resolved 561-96-05 Partially Resolved

F-10

COMMENTS
See Comments - Page F-21 See Comments - Page F-21
See Comments - Page F-22 See Comments - Page F-22 See Comments - Page F-22 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-24 See Comments - Page F-24 See Comments - Page F-24 See Comments - Page F-24 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
See Comments - Page F-27
See Comments - Page F-28 See Comments - Page F-28 See Comments - Page F-28
See Comments - Page F-29 See Comments - Page F-29 See Comments - Page F-29

- - - - - - - - - - State of Georgia - - - - - - - - - -
Summarv Schedule of Prior Year Rndings and Questioned Costs
For the Fiscal Year Ended June 30. 1999

FINDING CONTROL NUMBER

AUDITEE RESPONSE/STATUS

West Georgia Technical Institute 819-96-02 Unresolved 819-96-05 Further Action Not Warranted Augusta Technical Institute FA-824':98-01 Partially Resolved Chattahoochee Technical Institute 827-95-03 Partially Resolved 827-96-03 Partially Resolved 827-96-04 Partially Resolved FA-827-97-03 Partially Resolved Columbus Technical Institute FA-828-97-01 Unresolved DeKalb Technical Institute FA-830-98-01 Partially Resolved FA-830-98-02 Partially Resolved Moultrie Area Technical Institute 837-96-03 Partially Resolved Savannah Technical Institute FA-841-98-01 Unresolved FA-841-98-02 Unresolved FA-841-98-03 Previously Reported Corrective Action Implemented FA-841-98-04 Previously Reported Corrective Action Implemented Georgia Higher Education Assistance Corporation FA-918-98-01 Further Action Not Warranted

*Audit Follow-up was performed by Other Auditors.

COMMENTS
See Comments - Page F-30
See Comments - Page F-31 See Comments - Page F-31 See Comments - Page F-31 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-32 See Comments - Page F-33 See Comments - Page F-33
See Comments - Page F-33

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Auditee's Response SummarY Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
AUDITEE'S COMMENTS
DEPARTMENT OF ADMINISTRATIVE SERVICES
Finding Control Number: FS-401-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
DOAS concurs with this recommendation. As previously noted in our prior responses, recommendations have resulted in the creation of the Division of Support Services/Asset Management, with responsibilities over General Fixed Asset Inventories. The Department created and staffed the Division of Support Services/Asset Management in June of 1999. Since its creation and staffing, some of the measures that have taken place and that will be introduced in the near future are:
(1) The identification of property coordinators within each entity/location. (2) Full physical inventory taken in the first quarter of fiscal year 2000. (3) Manually update inventory information into the new Asset Management System, to be completed in the
Spring of 2000. (4) Monthly reconciliation of the Inventory listing to the fmancial records. (5) Timely updates of additions and deletions. (6) Identification of accountable assets at the initiation of the procurement process. (7) Update Department policies and procedures, to be completed in the Spring of2000.
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.
DEPARTMENT OF EDUCATION
Finding Control Number: FS-414-98-04 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
See our corrective action/responses to finding number FA-414-98-01.
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 Department continues to have problems with the Property Management System. Steps are taken each year to resolve the finding, with only partial success. Property management practices are being reviewed to seek further ways to resolve the problems. The following is the fiscal year 98 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 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 that 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 thinking has been reversed and now, fiscal year 1999 physical F-12

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Auditee's Response Summarv Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Erlded Jme 30, 1999
AUDITEE'S COMMENTS
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 of 2 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.
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 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 fmding. 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 oflocal school systems that should eliminate receiving state audits after the required time period.
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 response to finding control number FA-415-98-01
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Auditee's Response Summarv SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
AUDITEE'S COMMENTS
Finding Control Number: FA-415-98-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
The Department continued efforts to resolve this fInding in Fiscal Year 1999, but to date has not completed all 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 2000.
DEPARTMENT OF MEDICAL ASSISTANCE
Finding Control Number: FA-419-98-01 ALLOWABLE COSTS/COST PRINCIPLES DefIciencies in Operation of Medicaid Claims Process System Questioned Costs: $1,108,829.50
During the fiscal year, the Department corrected the problems noted with the system edits. Recoupment from the Community Service Boards is in process. Demand letters for repayment were sent in October 1999 to the nine Community Service Boards. As of January 2000, one Community Service Board has agreed to an installment payment plan and the rest have appealed the amount owed or are renegotiating a repayment schedule. The Department is currently working with the Department of Human Resources to insure that appropriate utilization and documentation of service provision are maintained.
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 fInding control number FA-427-98-03.
Finding Control Number: FA-427-97-02 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
The Federal agency never requested this payment, so no payment was made. Discussions were held between the DHR Funds Management reporting staff and the U. S. Department of Health and Human Services (HHS). HHS was to bill the Department if repayment was to be required. No billing was received from HHS.
Finding Control Number: FA-427-97-03 ELIGIBILITY Improper BenefIt Payments Foster Care Title IV-E (CFDA 93.658) Questioned Cost: $620.00
The Federal agency requested this payment. DHR paid the Federal share ($381.43) of the finding to the U. S. Department of Health and Human Services.
F-14

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Auditee's Response Summarv SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
AUDITEE'S COMMENTS
Finding Control Number: FA-427-97-04 ELIGIBILITY Improper Benefit Payments Child Care and Development Block Grant (CFDA 93.575) Questioned Cost: $659.00
The Federal agency never requested this payment, so no payment was made. Discussions were held between the DHR Funds Management reporting staff and the U. S. Department of Health and Human Services (HHS). HHS was to bill the Department if repayment was to be required. No billing was received from HHS.
Finding Control Number: FA-427-98-01 ELIGIBILITY Improper Benefit Payments Temporary Assistance to Needy Families (CFDA 93.558) Questioned Cost: $1,688.00
The completion of the on-line system has led to the ability to access information from the computer screen which has led to the reduction of the use of case files. The initiative in the large counties has been very successful. In the counties where implemented, all cases have been located for Quality Control and the counties report that the problem previously experienced has been resolved.
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
The state has increased the child care consultant staff by three. All state level child care staff are assigned to monitor county child care operations as specified in field areas. Staff review case records, vendor files and assist counties as needed to improve the child care program. During the past year, all supervisors were trained in child care, all workers attended conferences where child care workshops were held and quarterly supervisors meetings were held. The state continues to work to improve the program.
Finding Control Number: FA-427-98-03 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We did implement the corrective action plan, however, this did not resolve this fmding. DHR hired an experienced property manager and completed an inventory of fixed assets as was indicated in our corrective action plan in response to FY 98 fmdings.
F-15

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.

AuditeL's Response

Summarv Schedule of Prior Year Findings and Questioned Costs

For the Fiscal Year Ended June 30. 1999

AUDITEE'S COMMENTS
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)
With the acceptance of grant funding, it is the responsibility of the administrative agent of each Service Delivery Agency (SDA) to follow all Federal regulation and Department of Labor procedures. The JTPA Division of Department of Labor allocates funds and provides administration, which includes program review, monitoring, technical assistance and procedures. A product of this includes eligibility requirements and record retention review. Department of Labor internal controls and procedure in regard to this fmding are adequate and require no corrective action.
SDA 14 (City of Atlanta) questioned costs $2,000.00 Since additional documentation on the missing file was provided but found insufficient to satisfy eligibility, the matter will be referred to the JTPA Division to pursue collection or resolution with the SDA. Pending that effort and the disposition of the grant year in question, Department of Labor will satisfy the questioned cost in accordance with Federal (USDOL) methodology. This may occur by writing a return check to USDOL or making a draw adjustment to the Federal account.
SDA 16 (Atlanta Regional Conunission) The matter will be referred to the JTPA Division to pursue collection or resolution with the SDA. As indicated with SDA 14, Department of Labor will satisfy the questioned costs in accordance with Federal (USDOL) methodology.
Finding Control Number: FA-440-98-02 ELIGIBILITY Improper Benefit Payments Unemployment Insurance (CFDA 17.225)
A review of this claim has shown that Department of Labor's initial claim detennination made the claimant ineligible effective April 24, 1998. The questioned cost was for payment prior to the ineligibility date. Department of Labor concedes that the initial decision was probably incorrect and the claimant not due the payment. The claimant disclosed all worker compensation and there was no intent of fraud. It appears to be Department of Labor's error. In consideration of the amount ($153.00) and the fact that it was Department of Labor's error, and the time lapse, no recovery claim was established. Department of Labor has considerable and adequate procedures in place to minimize errors and identify fraud as well as to collect for overpayments. The Quality Assurance Section conducts a random sample review annually (480 claims in 1998) and the Eligibility Review program reviews all claims during the 4-6 weeks after an initial determination has been made. There are procedures for establishing and collecting for claims determined to be overpayments. These are Federal (USDOL) requirements established as Desired Levels of Achievement (DLA) and Benefits Accuracy Measurements (BAM). The Federal BAM (for claims accuracy) has been set at 95%, or conversely an allowed error rate of 5%. USDOL conducts annual reviews of DLA and BAM requirements. Results consistently ranks in the top ten states nationally.

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Auditee's Respol1Se Summarv Schedule of Prior Year Findings and Questioned Costs
For the Rscal Year Ended JUlIe 30, 1999
AUDITEE'S COMMENTS
DEPARTMENT OF NATURAL RESOURCES
Finding Control Number: FS-462-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Steps were taken which we believed would solve this problem. The reporting of surplused or moved inventory to the person responsible for maintaining the property management system was emphasized to upper management in the various divisions. Inventory sheets for each site were also sent out with instructions that all inventory on the sheets be accounted for, any inventory missing from the sheets be listed to be properly recorded in the system, etc. It appears that this was not taken as seriously as it should have been by the various division sites. The original corrective action also changed the reporting relationship of the person responsible for maintaining the property management system to try and ensure the inventory records were being updated in a timely fashion.
In an effort to correct the problems in this area, complete inventories will be conducted at various division sites by the internal audit staff and/or site staff with supervision from the division's upper management. Any discrepancies will be noted and corrected in the asset management system.
DEPARTMENT OF CORRECTIONS
Finding Control Number: FS-467-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Part I - All facilities and Probation Regions are responsible for adding required equipment that is purchased out of their budget. A copy of the Purchase Order and Receiving Report for new items is supposed to be sent to the Property Audit Section, and these items are checked on Props for accuracy. If the Auditor fInds an excessive amount of additions during an audit, having additions will now become a major rmding against the facility. Some of the thirteen (13) items mentioned were on Props, but had been entered after the June 30, 1998 required date. This process of fIeld units entering equipment into Props was implemented in FY 98 and in the opinion of the Property Audit Section, the process has closely accomplished the goal that was set.
Part 2 - This was obviously a data entry error that occurred in the fIeld and was not corrected by the Property Audit Section. The Property Audit Section will review purchase orders and receiving reports more closely in the future.
Part 3 - It has been established that equipment acquired through installment purchases should be entered in the inventory system with a zero dollar amount. If the equipment is acquired permanently after installment purchases are made, then a value will be added to Props at that time. The three items that were not entered should have been entered with a $0.00 and not $8,704.08.
In response to the twenty-two (22) items that could not be located. A majority of these items were at one location, and the items had been cannibalized or had been stored for a long period of time, to where decal number's could not be established. After further investigation by the Property Audit Section, several of the items were located and the dollar amount was cut in half, but again the items that had been found were broken down into several pieces. The Property Audit Section will require that a Destruction AffIdavit should be fIlled out with an Approval number from DOAS Surplus and sent to the Property Audit Section before the items are cannibalized or destroyed. The Property Audit Section can then take the items off of the inventory system in a more effIcient manner. The Regional Directors are planning to observe more closely, during inspections, facilities that have a large amount of items that are being stored that need to go to Surplus and items that are considered junk that need to be disposed of off site. If so, then the facilities will be directed to follow corrective procedures immediately.
F-17

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Auditee's Response Summarv SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
AUDITEE'S COMMENTS
DEPARTMENT OF REVENUE
Finding Control Number: FS-474-98-02 REVENUE/RECEIVABLES/RECEIPTS GENERAL LEDGER Deficiencies in the State Revenue Collections Fund (Overall)
Prior Year Management Response
We agree with this finding. Corrective actions for each of the deficiencies of the fmding are discussed as follows:
In response to deficiencies 1, 2 and 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 days of notification by the bank 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 placed in a "suspense account" and deposited by Central Accounting. The section will also maintain a copy of the checks and track their fmal 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.
Current Year Management Response
Deficiencies 1, 2, 5 and 6 are still being addressed as we are implementing PeopleSoft to accommodate the dual-entry accounting system.
Deficiencies 3 and 4 have been corrected as stated previously.
Finding Control Number: FS-474-98-03 REVENUEIRECEIVABLESIRECEIPTS GENERAL LEDGER Deficiencies in the Income Tax Division Subsidiary Records
Prior Year Management Response
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: F-18

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Audike's Response Summarv SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
AUDITEE'S COMMENTS
1. 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 income tax 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 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.
Current Year Management Response September, 1999
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:
1. The comparison of withholding information between the new withholding and individual system is targeted for the second phase of each system. The withholding system is in the initial stages of the second phase. Implementation of the new individual system is scheduled for mid-November, 1999. Preliminary studies are presently being conducted in anticipation of the second phase of the individual system.
In the interim, a study is being implemented to determine the feasibility of a pilot project using a small segment of the W2 information filed for 1998 and compared to associated individual returns.
2. In the second phases of 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. The purge process is scheduled for the second phase of the new withholding system. When completed, the purge process for the new system will include edits that will not allow a batch not processed to be purged. Prior to the purge process, a report will be generated for all batches not processed.
Currently a report for all batches not processed in the withholding system is requested on a monthly basis. Further automated accounting controls will be implemented in the second phase of the withholding system with a request that this report be systematically generated on a monthly basis, rather than being generated on demand. In the interim, written office procedures have been implemented to assure that this report is requested on the predetermined time schedule to assure all batches are processed in a timely manner.
F-19

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Auditee's Response SummarY SChedule of Prior Year Findings and Questioned Costs
For the Rscal Year Ended June 30, 1999
AUDITEE'S COMMENTS
Finding Control Number: FS-474-98-05 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Prior Year Management Response
1. The Procurement Office has recently hired a Property and 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 thirty (30) days old is entered and decaled. It is anticipated that future purchases of equipment will be decaled and entered within thirty (30) days. The Procurement and Services Officer, Senior 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 believe 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 referenced by the audit report is in the property file. Documentation for the second item cannot 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.
Current Year Management Response
Corrective action 1, 2, and 3 have been accomplished, also additional steps in asset management to further ensure assets are accounted for.
1. Upon approval of purchase order, notification is sent to buyers requesting verification of receipt of fixed asset. Ensuring that property entered on the Asset Management System in a timely manner is always the objective of Asset Management.
a. Property reconciliation procedure is followed as stated in property reconciliation manual.
b. Monthly focus is given to amount paid for equipment received as shown in the accounting system and amounts added to the Asset Management System.
2. Property information reports are matched with accounting system reports of same accounting periods.
a. Analyzes report to identify items added to one system, but not added to another.
3. Daily Transaction files are maintained and checked for errors. a. When deletion of equipment is done a record of the transaction is placed in the deletion file.
b. When equipment is added to Asset Management System a record of the transaction is placed in the addition file.
F-20

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AuditeL's Response Summarv SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
AUDITEE'S COMMENTS
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 fmding. 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.
GEORGIA STATE UNIVERSITY
Finding Control Number: FA-509-98-01 REPORTING Incorrect Student Payment Summary Report Student Financial Aid Cluster Program
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. The above steps to be taken should correct the deficiency in fiscal year 2000.
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
Procedures were developed to improve the fmancial aid delivery process to ensure that student fmancial awards were properly reviewed and approved prior to disbursement. The University has not received any correspondence from the U. S. Department of Education since submission of the audit report containing the fmdings.
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
The University implemented procedures to ensure that refunds are correctly calculated and applied to appropriate accounts in a timely manner. Procedures were also developed to identify "unofficial withdrawals" to ensure that refunds are calculated accordingly. This is a continuous monitoring function. The University has not received any correspondence from the U. S. Department of Education since submission of the audit report containing the fmdings.
F-21

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Auditee's Response Summarv Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
AUDITEE'S COMMENTS
CLAYTON COLLEGE AND STATE UNIVERSITY
Finding Control Number: FS-528-98-03 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
A physical inventory was taken and adjusting entries were made for deletions and transfers among buildings. Steps are being taken to reconcile property inventory, on at least a monthly basis as this will become a high priority task with the newly recognized office of purchasing. However, some entries need to be made to the Property Management System to reconcile it to the General Ledger. This task is now in process but probably will not be fInished before the end of this audit.
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: 533-96-15 ELIGIBILITY Funds Disbursed While Emolled in Excess Remedial Hours
We concur with the audit fInding, but are awaiting a response from U. S. Department of Education for resolution of the questioned cost.
Finding Control Number: 533-96-16 ELIGIBILITY Improper Determination of Emollrnent Status
We concur with the audit fmding, but are awaiting a response from the U. S. Department of Education for resolution of the questioned cost.
Finding Control Number: 533-96-18 ELIGIBILITY Student Financial Aid in Excess of Maximum Time Frame
We submitted information to the Federal govermnent 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.
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 emollment 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
F-22

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Auditee's Response SummarY SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
AUDITEE'S COMMENTS
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 1995 period, preceding Fall 1995. Therefore, no fmancial suspension was warranted. Two students had been suspended from fmancial aid at the end of Spring 1995, had appealed their suspension and been approved for 1995-1996, and documentation was available in the respective student's records attesting to action taken. Two students began the 19951996 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 1995-1996 school year.
A result of all the aforestated information, we do not concur with audit fmdings in this area.
Finding Control Number: FS-533-97-03 REVENUESIRECEIVABLESIRECEIPTS 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.
Finding Control Number: FS-533-97-06 GENERAL LEDGER H.O.P.E. Program Reconciliation Report Not Reconciled to Accounting Records
The accounting office forwards the detailed disbursements for the H.O.P.E. program to the fmancial aid department on a periodic basis. The fmancial aid office has the responsibility for transmitting the disbursements to Georgia Student Finance Authority and for completing the reconciliation. At this time, the reports are not being reconciled to the accounting records.
Finding Control Number: FA-533-98-02 ELIGIBILITY Control Procedures Inadequate
We are awaiting a response from the U. S. Department of Education for resolution.
Finding Control Number: FA-533-98-03 ELIGIBILITY Failure to Disburse FSEOG Funds to All Pell Recipients
Weare awaiting a response from the U. S. Department of Education for resolution.
Finding Control Number: FA-533-98-04 ELIGIBILITY Overpayment of Student Financial Aid
We are awaiting a response from the U. S. Department of Education for resolution of the questioned cost.
F-23

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summarv Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
AUDITEE'S COMMENTS
Finding Control Number: FA-533-98-05 PERIOD OF AVAILABILITY Funds Awarded in Excess of Annual Limits
Our concurrence was with one error in Pell Grant payment, whereas the auditors cited two. We will reimburse the Pell Grant program upon direction from the U. S. Department of Education when fInal resolution is received.
Finding Control Number: FA-533-98-06 REPORTING Expenditures in Excess of Authorization
Awaiting fmal response from the U. S. Department of Education on the Pell Grant expenditures in question.
Finding Control Number: FA-533-98-07 REPORTING Inadequate Documentation for Report
Documentation to support the FISAP report is maintained on fIle in the Financial Aid and Accounting Services OffIces. Information used to prepare the report is generated through the University's Banner Student Information System and CUFA then summarized into appropriate data fIles.
Finding Control Number: FA-533-98-08 REPORTING Reports Not Reconciled
The Financial Aid and Accounting Service OffIces have taken steps to ensure that all reports are reconciled on a timely basis. A new Financial Aid Director was appointed in October 1999. The University will engage a consultant to assist with documenting all reconciliation and reporting procedures.
Finding Control Number: FA-533-98-09 SPECIAL TESTS AND PROVISIONS Entrance and Exit Counseling not Conducted
The Financial Aid OffIce will adhere more strongly to its procedures on entrance and exit counseling.
GEORGIA SOUTHERN UNIVERSITY
Finding Control Number: 539-96-01 REVENUESIRECEIVABLES/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 1999 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 has placed a fInancial record hold on the academic records of students who have outstanding accounts receivable balances.
F-24

- - - - - - - - - - State of Georgia - - - - - - - - - -
Audike's Response Summarv SChedule of Prior Year Rndings and Questioned Costs
For the Fiscal Year Ef1ded JUf1e 30. 1999
AUDITEE'S COMMENTS
Finding Control Number: FS-539-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
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.
KENNESAW STATE UNIVERSITY
Finding Control Number: 543-96-01 REVENUESIRECEIVABLESIRECEIPTS Student Accounts Receivable not Supported by Financial Aid
The precess 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. These students' accounts have been placed under collection with fmancial collection agencies and are being actively pursued by the University.
SAVANNAH STATE UNIVERSITY
Finding Control Number: 548-96-01 REVENUESIRECEIVABLEIRECEIPTS Student Accounts Receivable Not Supported by Financial Aid
The University has increased its collection efforts to reduce accounts receivable. Uncollectible debts under $100.00 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 $1 00.00. The institution has put controls in place to ensure deferments are supported by Financial Aid.
Finding Control Number: FA-548-98-02 ALLOWABLE COSTS/COST PRINCIPLES Employee Compensation Deficiencies Higher Education - Institutional Aid (CFDA 84.031)
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)
All affected personnel have been made aware of this requirement. A procedure is being established to make sure that the locality wage information is secured from the U. S. Department of Labor and that a comparison is made to wages paid on the project to ensure compliance with the Davis-Bacon Act.
F-25

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summarv Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Elided JUlIe 30. 1999
AUDITEE'S COMMENTS
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)
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. Physical inventories are diligently conducted every two years, with one being held as of June 1999. The University is in the process of drafting a procedure manual for Federal equipment disposal. 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 finding 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, the Director of Title III will conduct a physical check on a sample of items twice a year to enhance the procedures.
Finding Control Number: FA-548-98-05 PERIOD OF AVAILABILITY Unallowable Expenditures Higher Education - Institutional Aid (CFDA 84.031)
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-548-98-07 REPORTING Final Performance Report Prepared with Budget Figures Higher Education - Institutional Aid (CFDA 84.031)
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.
SOUTHERN POLYTECHNIC STATE UNIVERSITY
Finding Control Number: 550-96-01 FUND EQUITIES Deficit Fund Balances
The Vice President for Development and University Relations declined on behalf of the Board of Development and University Relations to remit funds to cover this finding. These expenditures could have been legitimately paid from general operating funds. After consultation with the Department of Audits, the University chose to cover this deficit with current year general operating funds.
The University has taken active steps to ensure that under no circumstances will sponsored programs be pennitted to operate in a deficit position. The Director of Grants and Sponsored Programs will monitor sponsored program costs to ensure that program expenses are in compliance with the funding agency agreements. The Director of Grants and Sponsored Programs will ensure that invoicing and reimbursements are completed in a timely manner.
F-26

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summary Schedule of Prior Year Findings and Questioned Costs
For the Rscal Year Ended June 30. 1999

AUDITEE'S COMMENTS

Finding Control Number: FS-550-97-01 REVENUESIRECEIVABLESIRECEIPTS Deficit Cash Balances/Inadequate Accounts Receivable Documentation

The Vice President for Development and University Relations declined on behalf of the Board of Development and University Relations to remit funds to cover this fmding. These expenditures could have been legitimately paid from general operating funds. After consultation with the Department of Audits, the University chose to cover this deficit with state funds current year general operating funds.

The University has taken active steps to ensure that under no circumstances will sponsored programs be permitted to operate in a deficit position. The Director of Grants and Sponsored Programs will monitor sponsored program costs to ensure that program expenses are in compliance with the funding agency agreements. The Director of Grants and Sponsored Programs will ensure that invoicing and reimbursements are completed in a timely manner.

Finding Control Number: FA-550-98-01 REPORTING SPECIAL TESTS AND PROVISIONS Inadequate Internal Controls and Compliance Deficiencies for FISAP Reporting and Exit Counseling

1) FISAP Reporting

The Student Accounts Coordinator functions as a liaison between the fmancial aid office and the accounting office. This individual is assigned the responsibility to facilitate the reconciliation of the cluster Federal programs prior to the close of the fiscal year accounting records.

At fiscal year end, a draft copy of the FISAP report will be prepared and reviewed with the Controller (and the Director of Financial Aid if needed). This will ensure that receipt of and disbursement of Federal funds have been properly recorded and accounted for prior to the fmal close of the books. Any discrepancies will be corrected and correctly included on the subsequent FISAP report which is due to the Department of Education each October.

2) Exit Counseling

The 1998-99 Federal Student Handbook, Chapter 7 provides an exception to the requirement for conducting exit counseling in person. A school is allowed to use computer-assisted means to conduct exit counseling. The electronic exit counseling does not have to take place at the school. For example, a school may provide personalized exit counseling through a web site that students can access from off campus. However the school must document that the exit counseling took place and that knowledgeable personnel were standing by to answer questions, as needed. The University will re-write the web page so that documentation is captured to verify that borrowers have completed the exit counseling process.

F-27

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summarv SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
AUDITEE'S COMMENTS
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 award will be disbursed upon approval from the Department of Education.
The Banner System provides checking mechanisms to prevent this type of error in the future.
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
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.
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.
F-28

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summarv Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Erlded JUrle 30, 1999
AUDITEE'S COMMENTS
Finding Control Number: 561-96-02 FUND EQUITIES REPORTING Deficit Fund Balance
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 accounting firm expects to conclude its assignment by December 1999. 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
On February 1999, the College received funding in the amount of $71,369.00 from the United States Department of Education to partially offset the excess fiscal year 1996 Pell Grant expenditures. The College is currently awaiting additional upward adjustment from the United States Department of Education in the amount of $41,529.14 to fully fund the 1996 fiscal year Pell Grant expenditures.
Finding Control Number: 561-96-05 SPECIAL TESTS AND PROVISIONS Overpayments to Federal Financial Aid Recipients
On May 1999, the College sent strongly worded certified mail to students number (1) and (3) informing them again of their obligation to repay the funds received in error totaling $432.00. To date, student number (1) for $282.00 has not responded. Student number (3) has responded with payment of$150.00 to the College on June 6, 1999. The College will continue to place on hold the academic record of student number (1) until repayment is satisfied.
FLOYD COLLEGE
Finding Control Number: FS-573-97-02 FUND EQUITIES Deficit Restricted Funds
Floyd College continues trying to collect the deficit balance of $15,285.55 owed by a private funding agency. The funding agency is under new management and to date, collection efforts have been unsuccessful.
Finding Control Number: FS-573-97-04 GENERAL LEDGER Agency Fund Deficits
Deficiencies have been corrected in all Agency Funds with two exceptions. The scholarship account that has a deficit will be invoiced to correct the deficiency. The Floyd College Choir account has had a deficit balance since fiscal year 1997. The choir account has not been active since that time and the account remains deficient.
F-29

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summarv Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
AUDITEE'S COMMENTS
GEORGIA MILITARY COLLEGE
Finding Control Number: FS-590-98-09 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
The College completed a 100% physical inventory during FY 1999; however, acquisition costs and dates were not included in the new inventory when it was entered in the new system. These will be researched and added during FY 2000. Inventories will be conducted semi-annually beginning in 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. The College will attempt to fund this project in FY 2001 budget.
WEST GEORGIA TECHNICAL INSTITUTE
Finding Control Number: 819-96-02 CASH MANAGEMENT Excessive Cash Balances
West Georgia Technical Institute is implementing appropriate procedures and controls to ensure that:
(1) Federal cash drawdowns will be done based on immediate need. This information is provided by the Financial Aid Office.
(2) Adequate documentation supporting each drawdown will be kept on file.
(3) Disbursement will be done within 3 days of receipt of Federal Funds.
ALBANY TECHNICAL INSTITUTE
Finding Control Number: FS-820-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Procedures were implemented in FY 99 to conduct an annual physical inventory. All equipment items were placed on the property system. An INTERMEC scanner was purchased to aid us in this process. Reconciliation of the equipment inventory records to clean up missing and duplicated items is in process.
AUGUSTA TECHNICAL INSTITUTE
Finding Control Number: FS-824-97-02 REVENUES/RECEIVABLES/RECEIPTS Inadequate Accounting Control Procedures
Outstanding receivables from prior years continue to be pursued for collection. This fmding will continue to be "partially resolved" as collections are a continuous process.
F-30

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summarv SChedule of Prior Year Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
AUDITEE'S COMMENTS
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
Salaries for fInancial aid personnel were paid from non-Perkins funds for fIscal year 1999. However, in a communication with the U. S. Department of Education, it was stated that since fmancial aid personnel provide services to special population students, salaries were a permissible expense. Also, with regard to the issue of supplanting funds, the Department of Education states that since the salaries have always been funded by Perkins, supplanting did not occur. Final resolution of this fmding will not be made until such time as the Department of Education requests a response to the fmding. This normally is a two to four year process. The Institute considers this fmding resolved based on communication from the Department of Education.
CHATTAHOOCHEE TECHNICAL INSTITUTE
Finding Control Number: 827-95-03 REPORTING Incorrect Student Payment Summary Report
The fmal step of the adjustment process was not implemented before the projected date of September 30, 1998. These adjustments will be submitted to the U. S. Department of Education no later than June 30, 2000.
Finding Control Number: 827-96-03 REPORTING Incorrect Student Payment Summary Report
The fmal step of the adjustment process was not implemented before the projected date of September 30, 1998. These adjustments will be submitted to the U. S. Department of Education no later than June 30, 2000.
Finding Control Number: 827-96-04 ACTIVITIES ALLOWED OR UNALLOWED Award not Properly Calculated
An accounts receivable relating to this fmding has not been recorded in the accounting records. The Institute has further investigated this matter and had determined that an accounts receivable should be established in the amount of $484.00.
Finding Control Number: FA-827-97-03 REPORTING Incorrect Student Payment Summary Report Amount: $3,612.00
The Institute did not complete the adjustment process provided in Dear Colleague letter P-97-2 to have the validity of the awards certifIed by the state auditors and the adjustment submitted to the U. S. Department of Education. The Institute will complete the provisions in Dear Colleague letter P-97-2 and submit these adjustments to the U. S. Department of Education no later than June 30, 2000.
F-31

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summarv SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
AUDITEE'S COMMENTS
COLUMBUS TECHNICAL INSTITUTE
Finding Control Number: FS-828-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures
Details of corrective action relating to this control category are explained within Prior Year Federal Award 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
We are unable to fully reconcile the July 1, 1997, PROPS 8034AG report to the June 30, 1998, PROPS 8034RA report. Weare currently undertaking steps to resolve differences.
DEKALB TECHNICAL INSTITUTE
Finding Control Number: FS-830-98-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Improper Recording of Capital Leases
Some of the prior year questioned lease-purchases have been added to the inventory. The remainder will be added as their status is verified with the vendor.
Finding Control Number: FA-830-98-01 ACTIVITIES ALLOWED OR UNALLOWED Improper Expenditures for Financial Aid Services Questioned Costs: $31,480.04
Questioned costs have not yet been resolved. A revised use of Perkins funds for allowable activities is being used for the current year.
Finding Control Number: FA-830-98-02 ALLOWABLE COST/COST PRINCIPLES Improper Expenditures for Workplace Literacy Questioned Costs: $19,416.37
Corrective action has been implemented; questioned costs are yet to be resolved.
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.
F-32

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summarv Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
AUDITEE'S COMMENTS
PICKENS TECHNICAL INSTITUTE
Finding Control Number: FS-840-98-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures
Inventory was taken in FY 99. Plan to dispose of surplus property and take another physical in FY 00.
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)
Savannah Technical Institute set up a payable for $21,277.55 to the U.S. Department of Education for this audit fmding so that we could pay this amount to the Federal Government. This decision was derived after contacting Peter Vien of the Department of Audits who specializes in federal compliance audits and our Georgia Department of Technical and Adult Education to give us this resolution. Peter Vien stated the Federal Government will bill us for the amount in question. As of this date, Savannah Technical Institute has not received an invoice for these funds.
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
We explained in our corrective action plan that Savannah Technical Institute became a State of Georgia Institute on July 1, 1997. As a result, insufficient training was received by Savannah Technical Institute employees during the transition to state governance. Overtime cannot be paid to any state employee unless the grantor approves such action. Savannah Technical Institute's Administrative Services office understands this policy and plans to adhere to all state regulations and procedures along with the entire staff of Savannah Technical Institute.
A letter was issued from Savannah Technical Institute directed to the Department of Technical and Adult Education's (DTAE) Budget Director on May 3, 1999 to explain the circumstances surrounding this fmding. The auditors have requested an itemized statement from DTAE's Assistant Commissioner on each individual fmding justifYing their approval. We have requested that letter from the DTAE's Assistant Commissioner of Administrative Services.
GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION
Finding Control Number: FA-918-98-01 REPORTING Report Data Submitted to the NSLDS was Incorrect
The U.S. DOE review has been closed based on the actions and assurances provided by the Corporation that appropriate steps have been taken to ensure the accuracy of submitted data.
F-33

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summarv Schedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30. 1999
AUDITEE'S COMMENTS
PEACE OFFICERS' ANNUITY AND BENEFIT FUND OF GEORGIA
Finding Control Number: 947-96-01 BENEFITS EXPENSE Retirement Benefit Overpayments
The remaining outstanding balance of $205.24 is being recovered through deductions from the monthly benefits paid to those individuals involved.
NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8504-98-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
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.
NORTH GEORGIA REGIONAL EUDCATIONAL SERVICE AGENCY
Finding Control Number: FS-8524-98-01 GENERAL FIXED ASSETS/PROPERTY 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-8544-98-01 GENERAL FIXED ASSETS/PROPERTY 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 ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
Due to budget constraints we were not able to resolve this fmding in fiscal year 1999.
F-34

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summarv SChedule of Prior Year Findings and Questioned Costs
For the Fiscal Year Ended June 30, 1999
AUDITEE'S COMMENTS
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
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-8604-98-01 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-8664-98-01 GENERAL FIXED ASSETSIPROPERTY 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 Georgia Department of Education (GDOE). 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. However, Oconee Regional Educational Service Agency 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. Date of implementation: Upon receipt of new GDOE accounting software.
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
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.
HEART OF GEORGIA 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 current staffmg limitations and budgetary considerations prohibifing the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the fmancial statements.
F-35

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Response Summarv SChedule of Prior Year Rndings and Questioned Costs
For the Fiscal Year Ended June 30, 1999 AUDITEE'S COMMENTS FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8804-98-01 GENERAL FIXED ASSETS 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.
F-36

CorrcctivcAction ~ponscs
to Current Y"ear ~indlnBs
and Questioned Costs

- - - - - - - - - - State of Georgia - - - - - - - - - -
Corrective Action Responses to Current Year Findings and Questioned Costs Table of Contents
For the Rscal Year Elided JUlIe 30, 1999

ENTITY CODE

ORGANIZATIONAL UNIT

PAGE NO.

401

Administrative Services, Department of

F-40

414

Education, Department of

F-40

415

Technical and Adult Education, Department of

F-42

427

Human Resources, Department of.

F-42

428

Community Affairs, Department of

F-45

440

Labor, Department of

F-45

462

Natural Resources, Department of

F-47

467

Corrections, Department of

F-47

474

Revenue, Department of.

F-48

476

Student Finance Commission, Georgia

F-50

484

Transportation, Department of

F-50

Colleges and Universities

503

Georgia Institute of Technology

F-51

509

Georgia State University

F-53

518

University of Georgia

F-54

521

Albany State University

F-54

524

Armstrong Atlantic State University

F-55

527

Augusta State University

F-56

528

Clayton College and State University

F-56

533

Fort Valley State University

F-57

548

Savannah State University

F-60

550

Southern Polytechnic State University

F-63

590

Georgia Military College

F-64

State Technical Institutes

819

West Georgia Technical Institute

F-64

820

Albany Technical Institute

F-64

824

Augusta Technical Institute

F-65

828

Columbus Technical Institute

F-65

837

Moultrie Area Technical Institute

F-66

841

Savannah Technical Institute

F-66

918

Higher Education Assistance Corporation, Georgia

F-67

977

Public Telecommunications Commission, Georgia

F-67

Regional Educational Service Agencies

8504

Northwest Georgia Regional Educational Service Agency

F-67

8524

North Georgia Regional Educational Service Agency

F-68

8544

Pioneer Regional Educational Service Agency

F-68

8564

Metropolitan Regional Educational Service Agency

F-68

8584

Northeast Georgia Regional Educational Service Agency

F-68

8604

West Georgia Regional Educational Service Agency

F-69

8664

Oconee Regional Educational Service Agency

F-69

8724

Chattahoochee-Flint Regional Educational Service Agency

F-69

8764

Heart of Georgia Regional Educational Service Agency

F-69

8804

First District Regional Educational Service Agency

F-70

F-39

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Auditee's Corrective Actior\ Plaf1S
For the Fiscal Year Ended June 30. 1999
DEPARTMENT OF ADMINISTRATIVE SERVICES
Finding Control Number: FS-401-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with the fInding. A reconciliation statement is under review and action is being taken for correction. As previously noted in our prior response to this fmding, recommendations have resulted in the creation of the Division of Support Services/Asset Management, with responsibilities over General Fixed Asset inventories. The Department created and staffed the Division of Support Services/Asset Management in June of 1999. Since its creation and staffmg, some of the measures that have taken place and that will be introduced in the near future are:
(1) The identifIcation of property coordinators within each entity/location. (2) Full physical inventory taken in the fIrst quarter of fIscal year 2000. (3) Manually convert inventory information into the new Asset Management System, to be completed in the
spring of 2000. (4) Monthly reconciliation of the Inventory listing to the fmancial records. (5) Timely updates of additions and deletions. (6) IdentifIcation of accountable assets at the initiation of the procurement process. (7) Update Department policies and procedures, to be completed in the spring of 2000.
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.
Contact Person: Debra White, Director of Support Services Telephone: (404) 657-8544; E-mail: dwhite@doas.state.ga.us
DEPARTMENT OF EDUCATION
Finding Control Number: FS-414-99-04 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this recommendation. See the agency's response to fmding control number FA-414-99-01.
Finding Control Number: FA-414-99-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
A. 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, 1999 along with changes on invoices after the receiving report was received in Accounting Services. Also, unit's failure to follow through with changes on invoices associated with fIeld purchase orders to Property Control.
2. This resulted in changes on invoices after the receiving report was received in Accounting Services.
B. 1. Failure by unit to properly account for their inventory whether the item was moved by an employee of the unit or Technology Services.
2. Equipment not controlled properly will result in surprise fmdings of equipment.
3. A unit who fails to properly inventory equipment or inventories completed quickly will result in equipment being indicated as "missing". This is a result of poor inventory inspection techniques by the unit. F-40

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Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30. 1999
4. These recordings in the comments column of the property record were added after the FY 1999 Physical Inventory but prior to the FY 2000 Physical Inventory. These entries will be validated by proper documentation during the upcoming FY 2000 Physical Inventory period which will commence at mid-February 2000.
5. DOE decals had been removed by unknown circumstances, but new decals were affixed to this equipment at time of inspection sample.
6. This equipment was purchased in 1991 and had been identified by the SIS Coordinator by SIS documentation. It was found during this inspection sample that the description was incorrect and was corrected on the DOE Property System.
The twenty (20) items of equipment found were for equipment under the $1,000 threshold for capturing on the DOE Property System.
Contact Person: Becky Rutledge, Internal Operations Manager Telephone: (404)651-7582; E-mail: browlett@doe.kI2.ga.us
Finding Control Number: FA-414-99-02 REPORTING Financial Status Report Not Reconciled to Accounting Records
We concur with this fmding. To correct the deficiencies cited in the FY99 audit report, the following corrective action has been taken:
Revised Financial Status Reports (SF-269) have been submitted to the U.S. Department of Education for both FY 1997 and 1998. The normal procedure in preparing federal reports is to verify the expenditure amounts against two different accounting reports to ensure that the SF-269 reports agree with the department's accounting records. In the future, a second individual will review the reports before they are submitted to make sure that the proper verification has been done and the reports do, in fact, agree with the department's accounting records.
Contact Person: Grant Rowe, Accounting Services Director Telephone: (404)656-2497; E-mail: growe@doe.kI2.ga.us
Finding Control Number: FA-414-99-03 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 LUA's 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 fmding. The LUA audits are normally completed within a 15-18 month time period. The department has a six-month resolution period to resolve fmdings in the LUA audits after being received from the Department of Audits.
Contact Person: Grant Rowe, Accounting Services Director Telephone: (404)656-2497; E-mail: growe@doe.kI2.ga.us
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Auditee's Corrective Action PlallS For the Fiscal Year Ended June 30, 1999
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
Finding Control Number: FA-415-99-01 ELIGIBILITY Failure to Award Grants on a Competitive Basis as Required Vocational Education - Basic Grants to States (CFDA 84.048)
We concur with this fmding. This is no longer an authorized or funded grant under current federal legislation. If this grant is reinstated at a future time, the Department of Technical and Adult Education's Vocational Education Director will distribute request for proposals to every possible recipient, which will specify the award parameters for the grant. A committee of the Department of Technical and Adult Education's Central Office staff will review the request for proposals and award funds, ensuring this problem will not occur again.
Contact Person: Brad Sims, Director - Administrative Operations Telephone: (404)679-1784; E-mail: bsims@dtae.org
Finding Control Number: FA-415-99-02 SUBRECIPIENT MONITORING Inadequate Internal Controls and Compliance Deficiencies
We concur with section 1 of this fmding. The Department of Technical and Adult Education sent out memorandums to all Library Systems requesting a copy of corrective action plans for all fmdings for the FY 96, FY 97 and FY 98 audits. These will be forwarded to the Department of Audits upon receipt. The Department of Technical and Adult Education has taken steps to assure that all corrective action plans are submitted from subrecipients in a timely manner so that this problem will not occur again.
We do not concur with section 2 of this fmding. The Department of Technical and Adult Education contacted the USDOE regarding these expenditures. They sent an email stating the expenses were allowable in all four fmdings. The Department will contact the USDOE again and try to obtain an official advice letter.
Contact Person: Brad Sims, Director - Administrative Operations Telephone: (404)679-1784; E-mail: bsims@dtae.org
DEPARTMENT OF HUMAN RESOURCES
Finding Control Number: FS-427-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Reference to Finding Control Number: FA-427-99-04.
Finding Control Number: FA-427-99-01 ELIGIBILITY Deficiencies in File Maintenance
We concur with this finding.
Beginning in April of 1999, DFCS state office instituted several initiatives to address compliance with policy in the TANF program. They are as follows:
A case reading system for TANF cases to monitor compliance with policy requirements. Supervisors are mandated to read records for accuracy of policy application.
F-42

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Audike's Corrective Action Plans
For the Fiscal Year Ended June 30, 1999
TANF state office policy consultants have been assigned to each field coordination area. Their role is to visit counties, monitor program compliance, read records behind the supervisor for accuracy of case reading and to assist with training.
Supervisors' meetings have been held in the field areas with emphasis on documentation. Documentation training has been held in many county offices during the past six months.
State office consultants also monitor a county's ability to locate case records. In one large county a significant file management project has been completed and the results of that project are very positive. A second project for another large county is planned.
To address the issues stated in the audit the state office consultants will continue to visit counties as required, monitor case records, conduct second level reviews and provide training as necessary to ensure compliance with policy.
Contact Person: Mary Ellen Brown, Director, Economic Support Services, (404) 657-3702
Finding Control Number: FA-427-99-02 ELIGIBILITY Deficiencies in File Maintenance Child Care Cluster
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: $8,470.00
We concur with this finding.
To address the deficiencies several activities have been implemented. They are as follows:
Additional State office Child Care Program Consultants have been added to the staff. This has resulted in a reduction of the number of counties that consultants are required to visit. As a part of the visit they must conduct program accuracy/compliance reviews, application processing, proper vendor management and provide on-site technical assistance.
The Child Care policy helpdesk is available to all county departments through e-mail daily. A consultant mans the help desk and is responsible for policy clarifications.
Supervisors are required to conduct case accuracy reviews monthly by pulling a sample of case actions. Child Care Consultants are required to conduct second level reviews of those records.
During quarterly training sessions correct assignment ofVAS codes is stressed.
Actions that will be taken to address the issues stated are:
During update training sessions, consultants will stress the correct assignment of VAS codes, when to verify whether employment or education, needed documentation and content of client files.
Complete a review of the claim and recoupment processes. Redistribute MT 99-1, which outlines the requirements for social security numbers. Emphasize with county directors, field coordinators and supervisors the mandates of the child care program to improve
compliance with policy requirements.
Contact Person: Mary Ellen Brown, Director, Economic Support Services, (404) 657-3702
F-43

- - - - - - - - - State of GeorBia---------
Auditee's Corrective Action Plans For the Rscal Year Ended June 30, 1999
Finding Control Number: FA-427-99-03 ELIGIBILITY Deficiencies in File Maintenance Food Stamp Cluster
Food Stamps (CFDA 10.551) State Administrative Matching Grants for Food Stamp Program (CFDA 10.561) Questioned Cost: $12,803.00
We concur with this fmding.
Since April of 1999, the state office ESS section has taken the following steps to address the issues cited.
Expanded the number of Food Stamp consultants to work with county departments. These consultants provide technical assistance, review case records, conduct training and monitor compliance with Food Stamp policy in the county offices. They are assigned by field coordination area.
Implemented a record reading policy of supervisors. Implemented a second level review process for food stamp records. Held documentation training for county staff at four statewide conferences. Completed updates to food stamp portion of the state policy manual. Completed a file management system in one large county that has had positive results.
Activities that will occur to address the deficiencies are as follows:
Revise the record reading policy to address current issues in the food stamp program. Continue monitoring of record reading through second level reviews. Continue county visits by consultants. Communicate with county staff, documentation of requirements and ways to improve case work. Investigate the need for expanded file management projects in other large county offices.
Contact Person: Mary Ellen Brown, Director, Economic Support Services, (404) 657-3702
Finding Control Number: FA-427-99-04 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this fmding. A few of the items have been located since the audit was conducted and other paperwork continues to arrive which will address other items not found or not confrrmed as surplus. There is a delay in the surplus property process when managers are awaiting receipt from DOAS Surplus Property confrrrning the acceptance of surplus property. In the future this process will be coordinated closely and all paperwork cleared prior to the physical audit. Y2K and other programmatic activities replaced or upgraded thousands of computers that flooded the Property Unit with paperwork. Non-DHR personnel were involved in distributing much of this equipment but did not have adequate training to control property according to procedures.
Division and Office property coordinators will be required to insure compliance with policies and procedures regarding property. In addition, DHR will require all locations to complete a physical inventory prior to June 30, 2000. As a part of this inventory, property coordinators will be required to reconcile property on hand with property as recorded in the asset management system. Also, DHR's Office of Technology and Support will meet with property coordinators on a quarterly basis to assure that reconciliations are completed, that surplus property is so indicated and to further train the coordinators on an ongoing basis.
Contact person: Jim Bricker, Director, Office of Technology and Support, (404) 656-4427
F-44

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Auditee's Corrective Action Plans
For the Fiscal Year Elided JUlie 30, 1999
Finding Control Number: FA-427-99-05 SUBRECIPIENT MONITORING Subrecepient Audit Reports Not Reviewed Within Required Time Period Community Mental Health Services Block Grant (CFDA 93.958) Substance Abuse Block Grant (CFDA 93.959)
We concur with this fInding. Those audits found to be out of compliance have been reviewed. Current procedures require review of audit reports based on date received by the Compliance and Review Section of the OffIce of Audits. An analysis of audits required for the year ended June 30, 1998 reveals 837 audit reports are due for this period. Sixty-fIve percent (65%) of these reports have subrecipient fIscal years ending during the quarter ended June 30, 1998. The Compliance and Review Section is staffed with fIve (5) positions, of which one (1) is vacant. We requested additional positions for this OffIce for the last two (2) budget years, some of which were to be reviewing audits of subrecipients, but our requests were not approved. We will again request additional positions in the 2002 budget. Procedures are in place to aSS1li"e that all Community Service Board audit reports will be reviewed in a timely fashion.
Contact person: Larry Ricks, Director, OffIce of Audits, (404) 651-9290
DEPARTMENT OF COMMUNITY AFFAIRS
Finding Control Number: FS-428-99-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in the Operation of Property Management System
We concur with this fmding. In prior years the Department has never received a fmding in this area because of its strong internal controls. This fmding is due to the conversion to the PeopleSoft system. All efforts are being made to bring the Department's inventory current in the PeopleSoft system.
Contact Person: Margaret Sumner, Division Director, Financial Division Telephone: (404) 679-4944; E-mail: msurnner@dca.state.ga.us
DEPARTMENT OF LABOR
Finding Control Number: FS-440-99-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
The audit report for the year ended June 30, 1999 found that divisions failed to follow established guidelines for maintaining equipment inventory. The failure to maintain equipment inventory was the result of having to change out all terminals throughout the State and replace (approximately 1800) with personal computers. There were certain temporary procedures put into place in an attempt to accommodate the large volumes, but did not fully meet the accuracy needed to accommodate the Property Management System. The use of contractors and the addition of new employees in Information Technology also resulted in incomplete information being forwarded to Property Management. It was also found that the current inventory equipment was inadequate to do a complete property inventory.
Internal procedures that proved adequate for the past fIve years have now been restored. Divisions are aware of their responsibility to report all equipment moves to Property Management. The Information Technology division is purchasing a software package that would track PC confIgurations and software, which will facilitate reporting locations of PC's to Property Management. Finally, new inventory equipment has been purchased by Support Services that has more memory. The last piece was received 2/14/00. This will allow a complete property database in one hand-held machine that can be used at any location. Testing will begin immediately. A plan is in place to do a complete, accurate inventory of the Department's property. This will include verifying and re-tagging all new equipment. All surplused equipment will be removed from the inventory. The planned completion date is 6/30/00.
F-45

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AuditLe's Corrective Action Plal1S For the Fiscal Year Ended June 30, 1999
Contact Person: Dr. William Wheeler, Director Administrative Services Telephone: (404) 656-3189; Fax: (404) 651-8202; E-mail: William.Wheeler@dol.state.ga.us
Finding Control Number: FA-440-99-01 ELIGIBILITY Inadequate Documentation to Support Eligibility Determinations Employment and Training Assistance - Dislocated Workers (CFDA 17.246) Job Training Partnership Act (CFDA 17.250) Amount: $285.00
With the acceptance of grant funding, it is the responsibility of the administrative agent of each Service Delivery Agency (SDA) to follow all Federal regulation and DOL procedures. The JTPA Division of DOL allocates funds and provides administration, which includes program review, monitoring, technical assistance and procedures. A product of this includes eligibility requirements and record retention review. DOL internal controls and procedure in regard to this fmding are adequate and require no corrective action.
The matter will be referred to the JTPA Division to pursue collection or resolution with the SDA. Pending that effort and the disposition of the grant year in question, DOL will satisfy the questioned cost in accordance with federal (USDOL) methodology. This may occur by writing a return check to USDOL or making a draw adjustment to the federal account.
Contact Person: Ms. Andrea Harper, Assistant Commissioner, JTPA Division Telephone: (404) 656-7392; Fax: (404) 651-9377; E-mail: Andrea.Harper@dol.state.ga.us
Finding Control Number: FA-440-99-02 ELIGIBILITY Improper Benefit Payments Unemployment Insurance (CFDA 17.225) Questioned Costs: $399.00
We concur with this fmding. The department has procedures in place to mail a request for separation information to the employer, schedule a pre determination hearing on all separation and non separation issues involving eligibility for UI benefits, and to hold payment of benefits until a decision is released. In this case, DOL staff did not follow procedures. The claimant furnished all necessary information and there was no fraudulent intent. However, one procedure for verifying proper payment of unemployment benefits currently in place is the mailing of a determination of eligibility to the claimant and the employer with appeal rights. In this case the employer did not appeal the payment of unemployment insurance to this claimant. Employers are also advised on a quarterly basis which former employees have been paid unemployment benefits charged to their unemployment tax account. As fraud was not involved, and an appeal was not filed, an overpayment and adjustments are not in order.
The second check was issued to a claimant trainee. Proper procedures are documented in the UI Operations Manual concerning processing of unemployment insurance to claimant trainees. Payment forms are mailed by the claimant or training facility to the Field Service Office for review, payment entry and retention in the Claim Record Card. There was a human error in the failure to properly file the payment certification form in the claim record card.
The two claims have been reviewed and no further action is required. There are federal requirements established as Desired Levels of Achievement (DLA) and Benefits Accuracy Measurements (BAM). The federal BAM for claims accuracy has been set at 95%, or conversely an allowed error rate of 5%. USDOL conducts annual reviews of DLA and BAM requirements. The latest reported results indicate that Georgia DOL, with an accuracy rate of 96% or better, consistently rank high nationally.
Contact Person: Mr. Walter Adams, Assistance Commissioner, UI Division Telephone: (404) 656-3050; Fax: (404) 656-9750; E-mail: Walter.Adams@dol.state.ga.us
F-46

------------- State of Georgia - - - - - - - - -
Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30, 1999
DEPARTMENT OF NATURAL RESOURCES
Finding Control Number: FS-462-99-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this finding. Steps have been taken to ensure that all surplus items are removed from the equipment inventory records when the documentation is received and that all inventory items have the proper decal and are recorded in the property management system in accordance with the State Property Management System Manual. To further ensure the steps are being followed, complete inventories will be conducted at various sites by either the internal audit staff or site staff with close supervision from division's upper management. Any discrepancies will be noted and corrected in the asset management system.
Contact Person: Charles Tye, Office Services Director Telephone: 404-656-7763; Fax 404-656-2285, E-mail: charles_tye@dnr.state.ga.us
Finding Control Number: FA-462-99-01 REPORTING Financial Status Reports (SF-269) Not Filed Fish and Wildlife Cluster
Sport Fish Restoration - CFDA No. 15.605 Wildlife Restoration - CFDA No. 15.611
We concur with this fmding. Additional internal controls will be established to ensure that reports are timely fIled or an extension is requested within the proper time period.
Contact Person: Michele Bonner, Financial Services Director Telephone: 404-656-3527; Fax 404-463-6688; E-mail: rnichele_bonner@dnr.state.ga.us
Finding Control Number: FA-462-99-02 PROCUREMENT, SUSPENSION AND DEBARMENT Inadequate Internal Controls and Compliance Deficiencies Fish and Wildlife Cluster
Sport Fish Restoration - CFDA No. 15.605 Wildlife Restoration - CFDA No. 15.611
We concur with this fmding. Procedures are being developed to ensure all divisions in the Department are in compliance with applicable Procurement, Suspension and Debarment regulations.
Contact Person: Charles Tye, Office Services Director Telephone: 404-656-7763; Fax 404-656-2285; E-mail: charles_tye@dnr.state.ga.us
DEPARTMENT OF CORRECTIONS
Finding Control Number: FS-467-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in the Operation of Property Management System
We concur with this fmding. There will be a reconciliation process completed each month in PeopleSoft by the Property Audit staff according to DOAS guidelines. Department field units will also be required to reconcile each facility's property inventory using information from PeopleSoft reports determined by the Property Audit Section.
Contact Person: Scott L. Kimball, Property Audit Manager, Office (404) 463-6397, Fax (404) 463-6286 F-47

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Auditee's Corrective Action Plans For the Fiscal Year Ended June 30. 1999
DEPARTMENT OF REVENUE
Finding Control Number: FS-474-99-01 CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures
We concur with this fmding. Since the end of the fiscal year bank reconciliation duties have been reviewed. This review is ongoing and will continue through subsequent periods. An accountant has been hired to reconcile bank accounts and to identify and resolve outstanding reconciling items.
Accounts will be reviewed and employees duties revised where feasible. Procedures call for all bank reconciliations to be reviewed by the Accounting Director. The accounts were
inadvertently given directly to the auditors prior to my approval. Employees within Central Accounting have been reminded of the procedure. The Accountant hired to reconcile accounts is working towards having all accounts reconciled by the end of the month following the bank statement closing date. All Departmental accounts will be current prior to the end of the fiscal year. Weare working with the Banks to identify and correct all reconciling items. The majority of the outstanding checks continue to be attributed to large volume accounts which are full reconciliation accounts maintained by the bank and Local Option Accounts. We will work with the banks on speeding up their writeoff procedures. The Local Option Account checks have not been negotiated due to pending litigation. We are currently reviewing both Federal retirees accounts, and these funds will be transferred to the State Treasury where appropriate.
New procedures will be developed for the reconciling of the General Funds Transfer Account in the PeopleSoft system.
Contact Person: Thomas K. Yung, Director, Internal Audit Telephone: (404) 657-7918; E-mail: Tkyung@gw.rev.state.ga.us
Finding Control Number: FS-474-99-02 REVENUES/RECEIVABLES/RECEIPTS Deficiencies in the State Revenue Collections Fund (Overall)
We concur with this fmding. In response to deficiency 1, 2, 4, & 5, the Department is currently working on implementing a new dual-entry
bookkeeping application within the PeopleSoft system for the recognition of receipts and disbursements. Our current plan is to implement the new application by the end of the fiscal year 2000.
In response to deficiency 3, procedures to notify all responsible Division personnel of known adjustments, in a timely manner, are in place. Rejected electronic funds transfers are posted as returned items on the CTA system within two days of notification by the bank. NFS and returned checks are similarly posted to the CTA system. Once posted, notices are sent to the taxpayer and the original check to CTA.
Contact Person: Thomas K. Yung, Director, Internal Audit Telephone: (404) 657-7918; E-mail: Tkyung@gw.rev.state.ga.us
Finding Control Number: FS-474-99-03 REVENUES/RECEIVABLES/RECEIPTS Deficiencies in the Income Tax Division Subsidiary Records
We concur with this fmding. Phase 2 of the withholding system plans for the capture of data from the W-2 information filed by employees via magnetic media. A high level pilot project to compare the total withholding shown on the individual returns to the W-2 information from employers is planned late in Phase 2 of the individual system rewrite project. The breakdown of the employers W-2 magnetic filings by Social Security Numbers will be compared to the total withholding
F-48

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Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30, 1999
shown on the individual returns. The resulting information will be used in post audit review. The pilot project will be at a high level, using only information from employers filed magnetically and the total withholding from individual returns. At this time, limited resources prohibit further data entry of W-2 information, both from employers and individual taxpayers. Methods of capturing more of the information through electronic means will be explored in the future.
Management Response - Deficiency 1
In the second phase of 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.
Management Response - Deficiency 2
The purge process is scheduled for the second phase of the new withholding system. When completed, the purge process for the new system will include edits that will not allow an unprocessed batch to be purged. Prior to the purge process, a report will be generated for all batches not processed.
Currently, a report of all batches not processed in the withholding system is requested on a monthly basis. Further automated accounting controls will be implemented in the second phase of the withholding system with a request that this report be systematically generated on a monthly basis, rather than being generated on demand. In the interim, written office procedures have been implemented to assure this report is requested on the predetermined time schedule to assure all batches are processed on a timely basis.
Management Response - Deficiency 3
The purge process is scheduled for the second phase of the new withholding system. When completed, the purge process for the new system will include edits that will not allow an unprocessed batch to be purged. Prior to the purge process, a report will be generated for all batches not processed.
Currently, a report of all batches not processed in the withholding system is requested on a monthly basis. Further, automated accounting controls will be implemented in the second phase of the withholding system with a request to systematically generate this report on a monthly basis, rather than generating it on demand. In the interim, written office procedures have been implemented to assure this report is requested on a predetermined time schedule to assure all batches are processed on a timely basis.
Contact Person: Thomas K. Yung, Director, Internal Audit Telephone: (404) 657-7918; E-mail: Tkyung@gw.rev.state.ga.us
Finding Control Number: FS-474-99-0S GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this finding.
A centralized receiving unit will be activated by April 1, 2000. This unit will receive all capital equipment and will immediately decal and enter all property information into the asset management module of PeoplesSoft.
DOR requests that the Audit Department provide assistance to Procurement to resolve the discrepancy.
Two computer servers that were supposed to be located in Room 124 could not be located. Efforts are continuing to locate the missing servers.
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AuditLe's Corrective Action Plans
For the Fiscal Year Ended JUlIe 30. 1999
A correction to the asset management system was made several months ago. Increased emphasis is being placed by Property & Supply Supervisor on accuracy of each transaction and reviewing work of subordinates.
Corrections to the asset management system were made several months ago. The Property & Supply Supervisor is being given additional training in the area.
DOR is currently conducting a department-wide physical inventory and we expect that a significant number of missing items will be located.
Contact Person: Thomas K. Yung, Director, Internal Audit Telephone: (404) 657-7918; E-mail: Tkyung@gw.rev.state.ga.us
GEORGIA STUDENT FINANCE COMMISSION
Finding Control Number: FS-476-99-01 CASH AND CASH EQUIVALENTS Drawdown of Lottery Funds in Excess of Current Operating Needs
We concur with this recommendation. The difficulty in complying with O.e.G.A. 50-17-51(c) has been the timing requirements in implementing the policy decision to provide Lottery funds to schools the day following a drawdown request. Specifically, on certain given days, we have processed over $20,000,000. The timing requirements to transfer funds from OTFS to the agency's bank account and then, in turn, to disburse those funds to the schools, made it necessary to maintain a balance in the Lottery fund account that would provide an allowance for several days. In addition, until this past year the program was undergoing substantial funding allowance changes that made it very difficult to accurately estimate the timing and the amount of requests from the schools.
Beginning with Fiscal Year 2000, the agency has been able to greatly reduce the average amount of funds drawn down from OTFS. The average monthly balance of allotment funds in GSFC bank accounts for the first six months of Fiscal Year 2000 has dropped to approximately $26,000,000 from an average of over $66,000,000 in Fiscal Year 1999.
In order to further decrease appropriation allotments, as of April 1, 2000 the agency will be implementing a change in the request/disbursement process. As of the date GSFC will keep a minimal amount of funds in its Lottery account. Each business day, the GSFC Accounting Unit will receive a report of disbursement requests from the schools. GSFC will use that report as the basis for requesting funds from OTFS. Funds will be transferred from OTFS to GSFC and GSFC will disburse funds to the schools on the next day. While this change in process will increase the time from request to disbursement by one business day, it will allow OTFS to keep a maximum amount of funds in its investment accounts.
DEPARTMENT OF TRANSPORTATION
Finding Control Number: FS-484-99-02 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this fmding. The Asset Management module of PeopleSoft will automatically add purchase information to each office's inventory account. This insures that all purchases meeting state requirements of equipment to be inventoried are in our asset inventory account. The asset information relative to purchase price, type of equipment, and the department ID of the equipment budget unit is brought into the inventory.
Procedures are in place to direct personnel of each budget unit to complete the needed additional asset information. The minimum asset information that is required is the tag/decal number, location, organizational unit and serial number.
Policy has been established to terminate the authority to purchase assets for any office units that do not comply with these new procedures.
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Auditee's Corrective Actiol1 PlallS
For the Fiscal Year Ended June 30. 1999
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
GEORGIA INSTITUTE OF TECHNOLOGY
Finding Control Number: FS-S03-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this finding and recommendation. The Institute has initiated work to correct these problems in the equipment inventory process. Action will be completed no later than June 30, 2000 to improve the accuracy and completeness of the equipment inventory and the follow-up work required to obtain required data concerning missing equipment.
Contact Person: Tom O. Pearson, Director, Procurement Services Telephone: 404-894-5000; Fax 404-894-8552; E-Mail: tom.pearson@business.gatech.edu
Finding Control Number: FA-S03-99-02 ALLOWABLE COSTS/COST PRINCIPLES - RESEARCH AND DEVELOPMENT CLUSTER Building and Equipment Use Charge System
GIT/GTRC/GTARC concurs with the finding and recommendation concerning the adjustment required to properly recognize the amount of equipment and building use charges in the FY 99 Experienced Facilities & Administrative Rate Study Proposal.
Corrections have been made to the rate study model to reflect the allowable one half year use charge rates for current year additions and/or deletions. Existing internal control procedures include final review steps that are performed prior to the release of rate study proposals, and these procedures will be revised to specifically incorporate the identification of nonrecurring changes to the rate study model prior to June 30, 2000.
Contact Person: Charles T. Duffy, Director, Office of Grants & Contracts Accounting Telephone: 404-894-1026; Fax 404-894-5519; E-Mail: chuck.duffy@business.gatech.edu
Finding Control Number: FA-S03-99-03 ALLOWABLE COSTS/COST PRINCIPLES - RESEARCH AND DEVELOPMENT CLUSTER Improvement Use Charge System
GIT/GTRC/GTARC concurs with the finding and recommendation concerning the adjustment required to the properly recognize the amount of improvement use charges in the FY 99 Experienced Facilities & Administrative Rate Study Proposal.
Corrections have been made to the rate study model to correctly allocate improvement use charge rates. Existing internal control procedures include final review steps that are performed prior to the release of rate study proposals, and these procedures will be revised to specifically incorporate the identification of non-recurring changes to the rate study model prior to June 30, 2000.
Contact Person: Charles T. Duffy, Director, Office of Grants & Contracts Accounting Telephone: 404-894-1026; Fax 404-894-5519; E-Mail: chuck.duffy@business.gatech.edu
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Auditee's Corrective Action Plans
For the Rscal Year Ef1ded JUf1e 30, 1999
Finding Control Number: FA-503-99-04 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Reports Not Submitted in a Timely Manner
We concur with this fmding and recommendation. Prior to June 30, 2000, a review will be performed to consider the possible need to improve 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 Sponsored Programs (OSP) reviews all RFPs 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 the agreement.
2. As soon as a new sponsored project is received, OSP 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. OSP 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. OSP expanded efforts 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. OSP 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 OSP 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. OSP initiates special follow-up action by way of memos directly to PD/PI's for any deliverable items(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@osp.gatech.edu
Finding Control Number: FA-503-99-05 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Log and Track Required Reports
We concur with this fmding and recommendation. 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 Managers responsible for the preparation of deliverable schedules will continue to work with the Contracting Officers to re-emphasize the importance of preparing a complete and accurate listing of all contractually required deliverables. This work will be completed prior to June 30, 2000.
Contact Person: G. Duane Hutchison, Director, Office of Sponsored Programs Telephone: 404-894-4819; Fax 404-894-7002; E-Mail: duane.hutchison@osp.gatech.edu
Finding Control Number: FA-503-99-06 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Submit Reports for Correct Time Period
We concur with this finding and recommendation. Action has been initiated to develop and implement improved monitoring procedures to improve the accuracy and timeliness of fmancial statements and billings to sponsors. Action will be completed no later than December 31, 2000 to improve these procedures.
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Auditee's Corrective Action Plans
For the Rscal Year Ended June 30, 1999
Contact Person: Charles T. Duffy, Director, Office of Grants & Contracts Accounting Telephone: 404-894-1026; Fax 404-894-5519; E-Mail: chuck.duffy@business.gatech.edu
Finding Control Number: FA-503-99-07 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Input Correct Due Dates for Report
We concur with this finding and our review indicated that the required due date for the report mentioned in this fmding was entered incorrectly on the deliverables schedule prepared by the Contracting Officer. The Division Managers responsible for the preparation of deliverable schedules are working with the Contracting Officers 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 June 30, 2000 to determine if additional procedures should be considered to assist with deliverable monitoring.
Contact Person: G. Duane Hutchison, Director, Office of Sponsored Programs Telephone: 404-894-4819; Fax 404-894-7002; E-Mail: duane.hutchison@osp.gatech.edu
Finding Control Number: FA-503-99-08 REPORTING - RESEARCH AND DEVELOPMENT CLUSTER Failure to Input Correct Cost Share Budget
We concur with this finding and recommendation. Existing procedures that cover the entry of budget amounts to the accounting system will be reviewed to identify specific improvements that should be implemented to reduce the possibility that budget entries might not be made accurately. Corrective action will be completed no later than June 30, 2000 to improve the accuracy of budget data entry and the subsequent verification procedures.
Contact Person: Charles T. Duffy, Director, Office of Grants & Contracts Accounting Telephone: 404-894-1026; Fax 404-894-5519; E-Mail: chuck.duffy@business.gatech.edu
GEORGIA STATE UNIVERSITY
Finding Control Number: FA-509-99-01 REPORTING Expenditures in Excess of Authorization Student Financial Aid Cluster Program
Federal Pell Grant Program (CFDA 84.063)
We concur with this finding. The account will be reconciled by June 30, 2000, and, if necessary, 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 in the future, the final amount reported on the Federal Pell Grant Program Student Payment Summary Report will be reconciled to the amount recorded in the University's accounting records as of June 30.
Contact Person: Ms. Gwendolyn Francis, Director, Student Financial Aid Telephone: (404) 651-3631; Fax: (404) 651-1419; E-mail: fiaglf@langate.gsu.edu
Contact Person: Ms. Joann A. Worthington, Director of Student AccountslBursar Telephone: (404) 651-2402; Fax: (404)651-1267; E-mail: Busjnw@langate.gsu.edu
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Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30, 1999
UNIVERSITY OF GEORGIA
Finding Control Number: FA-518-99-01 REPORTING Research and Development Cluster Technical Reports Not Filed
The University recognizes the need to submit timely reports to funding agencies and will continue to place a high emphasis on this area. Staff who are responsible for notifying faculty about reporting requirements have been counseled about the need to request early reports. In addition, reports are created in a timely fashion and will be provided to the Vice President for Research and the appropriate department head. As late respondents are identified, University staff will counsel these individuals on the need for submission of timely reporting of technical information.
Finding Control Number: FA-518-99-02 SPECIAL TESTS AND PROVISIONS Research and Development Cluster Students Did Not Receive Required Counseling
For the selected student, the Direct Loan database does contain the date the counseling was provided to the student, i.e. 9/11/98. However, the "entrance counseling form" which is signed by the student at the time of counseling, could not be located in the student files.
Finding Control Number: FA-518-99-03 REPORTING Research and Development Cluster Financial Reports Not Properly Filed
The University recognized the need to submit timely reports to funding agencies and will continue to place a high emphasis on this area. Staff who are responsible for notifying faculty about reporting requirements have been counseled about the need to request early reports. In addition, reports are created in a timely fashion and will be provided to the Vice President for Research and the appropriate department head. As late respondents are identified, University staff will counsel these individuals on the need for submission of timely reporting of technical information.
ALBANY STATE UNIVERSITY
Finding Control Number: FA-521-99-01 REPORTING Report Not Reconciled Student Financial Aid Cluster Program
We concur with this fmding. The University has implemented adequate controls to ensure that reports are accurately completed and supported by the accounting records. Detailed reconciliations are prepared for any variances and are maintained as part of the supporting documentation.
Contact Person: Dorothy Martin, Director of Financial Operations Telephone: (912) 430-4610; E-mail: drnartin@asurarns.edu
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Auditee's Corrective Action Plans For the Fiscal Year Ended June 30, 1999
Finding Control Number: FA-521-99-02 REPORTING Performance Reports Not Filed and Not Supported By Accounting Records Higher Education - Institutional Aid (CFDA 84.031)
We concur with this fmding. The Title III Final Performance Report for the six year period ending September 30, 1998 will be submitted by September 30,2000. The University was granted an extension of this report by the U. S. Department of Education. The University has implemented controls to ensure that reports are filed timely, are accurately completed and are supported by the accounting records.
Contact Person: Janice Haywood, Director of Budgets and Contracts Telephone: (912) 430-4609; E-mail: jhaywood@asurarns.edu
Finding Control Number: FA-521-99-03 SPECIAL TESTS AND PROVISIONS Deficiencies In Student Financial Aid Refund Process Student Financial Aid Cluster Program Questioned Cost: $2,686.00
We concur with this fmding. The University implemented procedures to ensure that refunds are correctly calculated and applied to appropriate accounts in a timely manner. Procedures were also developed to identify "unofficial withdrawals" to ensure that refunds are calculated accordingly. This is a continuous monitoring function.
Contact Person: Dorothy Martin, Director of Financial Operations Telephone: (912) 430-4610; E-mail: drnartin@asurarns.edu
Contact Person: Kathleen Caldwell, Director of Financial Aid Telephone: (912) 430-4650; E-mail: kcaldwel@asurarns.edu
ARMSTRONG ATLANTIC STATE UNIVERSITY
Finding Control Number: FA-524-99-01 CASH MANAGEMENT Weaknesses in Internal Control Structure for Student Financial Assistance Programs Student Financial Aid Cluster Program
AASU concurs with this fmding. We will establish administrative procedures and internal controls to ensure drawdowns are made and accounted for.
Contact Person: Mr. Daniel Harrell, Director of Financial Services Telephone: 912-927-5255; Fax: 912-921-2366; E-mail address: harrelda@mai1.arrnstrong.edu
Finding Control Number: FA-524-99-02 REPORTING Reports not Adequately Supported Student Financial Aid Cluster Program
Federal Pell Grant Program (CFDA 84.063)
AASU concurs with this fmding. We will report student payment data within 30 days after making a payment to the Department of Education based on a reconciliation of the Banner Student Information System and the general ledger.
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Auditce's Corrective Action Plans
For the Fiscal Year Elided JUlie 30, 1999
Contact Person: Mr. Daniel Harrell, Director of Financial Services Telephone: 912-927-5255; Fax: 912-921-2366; E-mail address: harrelda@mail.arrnstrong.edu
Finding Control Number: FA-524-99-03 SPECIAL TESTS AND PROVISIONS Refunds not Calculated Correctly Student Financial Aid Cluster Program
AASU concurs with this fInding. Procedures will be implemented to ensure refunds are accurately calculated on all students who withdraw from the University.
Contact Person: Mr. Daniel Harrell, Director of Financial Services Telephone: 912-927-5255; Fax: 912-921-2366; E-mail address: harrelda@mail.arrnstrong.edu
AUGUSTA STATE UNIVERSITY
Finding Control Number: FA-527-99-01 REPORTING Incorrect Student Payment Summary Report Student Financial Aid Cluster Program
We concur with this fmding. The Federal report on Pell Grant program expenditures understated the amount of awards paid by Augusta State University for Fiscal year 1999. The University will reconcile the differences and certify the need for an upward adjustment to the U.S. Department of Education to make these funds available to the University. To prevent this problem in the future, the Director of Financial Aid has implemented an ongoing reconciliation process with any adjustments to be requested from the Department of Education when identifIed during the year.
Contact Person: Kevin Wellwood, Director of Financial Aid Telephone: 706-737-1431; Fax: 706-737-1777; E-mail: kwellwoo@aug.edu
Contact Person: Angela Prettelt, Director of Financial Services Telephone: 706-737-1767; Fax: 706-667-4643; E-mail: aprettelt@aug.edu
CLAYTON COLLEGE AND STATE UNIVERSITY
Finding Control Number: FS-528-99-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Clayton College & State University concurs with this fmding. The University has restructured the OffIce of Procurement to become the OffIce of Purchasing, Contracts, and Inventory Control. An employee in that department now has signifIcant responsibility for Inventory Control. The employee is currently being trained and procedures will be implemented in order to correct this fmding. This fmding should be resolved by either April or May 2000.
Contact Person: Scott A. Bailey Telephone: (770) 961-3602; Fax: (770) 961-3769; Email: scottbailey@mail.clayton.edu
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Auditee's Corrective Action Plans
For the Fiscal Year Elided JUlIe 30, 1999
FORT VALLEY STATE UNIVERSITY
Finding Control Number: FA-533-99-01 ELIGIBILITY Improper Disbursement ofFSEOG Funds Student Financial Aid Cluster Program Questioned Cost: $42,750.00
According to federal regulations (34CFR676.l0) "the school is allowed to establish categories of students to be considered for FSEOG awards as a means of "administering its packaging policies." At the University, the group of non-PELL recipients were awarded based on the institution's procedures of considering the students (1) application review dates and (2) classification. The institution will contact the U.S. Department of Education regarding resolution of the questioned costs.
Contact Person: Beatricia M. King, Director of Student Financial Aid Telephone: 912-825-6009, FAX: 912-825-6976; E-mail: kingb@mail.fvsu.edu
Finding Control Number: FA-533-99-02 ELIGIBILITY Failure to Notify Students of Awards Student Financial Aid Cluster Program Questioned Cost: $67,409.20
We concur with this finding. The University has established written procedures, which requires each fmancial aid counselor to notify students of their financial aid award and verify that the awards have been filed. The Financial Aid director will make periodic reviews of the files and certify that the procedures have been complied with in a timely manner. The University has also named a new work study coordinator and revised its procedures for monitoring and the operations of the Federal Work Study program. The Assistant Student Financial Aid Director has reviewed the files in question. All required documentation for students eligible to receive federal work-study wages will be placed in their files.
The University has also verified the eligibility of the two students who received Federal PELL Grant Program funds. The award notifications will be sent to the students in question and placed in their files in accordance with Federal regulations. The University will contact the U.S. Department of Education regarding resolution of questioned costs.
Contact Person: Beatricia M. King, Director of Student Financial Aid Telephone: 912-825-6009, FAX: 912-825-6976; E-mail: kingb@mail.fvsu.edu
Finding Control Number: FA-533-99-03 ELIGIBILITY Overpayment of Student Financial Aid Student Financial Aid Cluster Program Questioned Cost: $404,048.97
The institution has contracted with the Wesley Peachtree Group to complete a file review of each student's specific situation and to work with the New Director of Student Financial Aid, who was hired by the University in October 1999 to resolve the issues and ensure that all required documentation is on file. The University has taken the following steps as part of its corrective action plan to improve the internal controls/procedures related to management of the student fmancial aid program.
Hired a new Director of Financial Aid and reorganized the office. The former Director of Student Financial Aid was removed from the position and has resigned from the
University.
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Auditee's Corrective Actiol1 Plal15
For the Fiscal Year Ended June 30, 1999
Engaged an external consultant to review the files of the students with questioned cost and to assist the director in ensuring that student fmancial aid files are complete and accurate.
Begin revising and updating the institution's Student Financial Aid policies and procedures. Implemented a staff development and training program. Assigned a teclmical staff person from computer services to work with the office. Established timetables and timelines for the processing and reconciliation of the various Student Financial
Aid Cluster Programs. Established procedures to insure that the proper student enrollment status is used in the awarding and
disbursement process. Procedures have been strengthened to insure that the Financial Aid Office is notified of other student
resources received by the University in other departments.
The director has determined that the institution's policies regarding enrollment status is more stringent than federal policy, which requires only half-time enrollment for the loan program. The twenty-seven students noted as not having their awards adjusted for a change in enrollment status meets the federal enrollment criteria. The institution is requesting relief from its own more stringent policies which are being revised. The University will contact the U.S. Department of Education regarding resolution of the questioned cost.
It is University policy that all scholarships and other resources awarded to students are approved by the Financial Aid office prior to disbursement. A written notice will be sent to all departments reinforcing that policy. The new Director has issued a written directive to all fmancial aid counselors that no counselor or the Director will act on, or award aid to family and friends. These procedures have been implemented.
The new director of Student Financial Aid with the assistance from the external consultants is developing an action plan to address the fourteen areas of questioned cost in this fmding. This assessment should be completed with the next two months. The University will contact the U.S. Department of Education regarding resolution of the questioned cost.
Contact Person: Beatricia M. King, Director of Student Financial Aid Telephone: 912-825-6009, FAX: 912-825-6976; E-mail: kingb@mai1.fvsu.edu
Finding Control Number: FA-533-99-04 REPORTING Expenditures in Excess of Authorization Student Financial Aid Cluster Program
We concur with this finding. The University will submit the appropriate data for students identified and certify the validity of the Federal PELL expenditures of $44,325.00 to the U.S. Department of Education and request that the University be reimbursed.
Contact Person: Beatricia M. King, Director of Student Financial Aid Telephone: 912-825-6009, FAX: 912-825-6976; E-mail: kingb@mai1.fvsu.edu
Finding Control Number: FA-533-99-05 REPORTING Inadequate Documentation for Report Student Financial Aid Cluster Program
We concur with this fmding. At the time the auditors were on site, the institution had not submitted the correction to the FISAP report. Corrected copies of theFISAP were filed with the U.S. Department of Education in December 1999 and January. The University has on file all documentation required to support the data Part IV, Section A of the Fiscal Operations and Application to Participate (FISAP) for the award period July 1, 1998 - June 30, 1999. Copies of the documentation that supports the report is available for review and inspection in the offices of the Director of Student Financial Aid and the Vice President for Business and Finance.
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Auditee's Corrective Action Plans
For the Fiscal Year Ef1ded JUfle 30, 1999
Contact Person: Beatricia M. King, Director of Student Financial Aid Telephone: 912-825-6009, FAX: 912-825-6976; E-mail: kingb@mail.fvsu.edu
Finding Control Number: FA-533-99-06 REPORTING Reports Not Reconciled Student Financial Aid Cluster Program
We concur with the fmding. The reconciliation amounts reported for the Federal Work-Study Program, the Federal Perkins Loan Program and the Federal PELL Grant noted by the state auditors were corrected during the December and January submission of corrections to the FISAP report to the U.S. Department of Education. The federal fiscal activity calendar allows for corrections to the FISAP report during the corrections period.
The following procedures will be used to ensure that all programs are reconciled at the end of the fiscal year, the Student Financial Aid Director will ensure that the total disbursements per Financial Aid's records are in agreement with the general ledger prior to the submission of the FISAP report. Any discrepancies or error noted after the initial transmission will be corrected prior to December 15th as allowed by the U.S. Department of Education. A copy of the documentation the supports the reconciliation will be on file and available for review in either the Offices of the Director of Student Financial Aid or the Vice President for Business and Finance.
The University is working with the U.S. Department of Education to complete the reconciliation process for the Direct Loan Program. Copies of the 732 and GS5660 are on file at the University in the offices of Student Financial Aid and Business and Finance. U.S. Department of Education's representatives have advised that a fmal notification for years 2 and 3 should be sent in February 2000.
Procedures are now in place to ensure that the Direct Loan (LOC, Student Financial Aid and Accounting records) and Pell grant reconciliation are completed on timely basis and documented.
Contact Person: Shirley L. Williams, Vice President for Business and Finance Telephone: 912-825-6400, FAX: 912-825-6089; E-mail: williams@mail.fvsu.edu
Finding Control Number: FA-533-99-07 SPECIAL TESTS AND PROVISIONS Entrance and Exit Counseling not Conducted Student Financial Aid Cluster Program
We concur with the findings with the following exceptions. Of the twenty students identified with No Exit Interview Counseling, all 20 were emolled at least half-time in 199808 and 16 of the 20 emolled at least half-time in 199902. Exit interviews were therefore not required of these students. The institution will contact all other students identified and arrange for them to complete the entrance or exit counseling either via the Internet, in office or by mailing in the completed form.
Contact Person: Beatricia M. King, Director of Student Financial Aid Telephone: 912-825-6009, FAX: 912-825-6976; E-mail: kingb@mail.fvsu.edu
Finding Control Number: FA-533-99-08 SPECIAL TESTS AND PROVISIONS Inadequate Control Procedures Student Financial Aid Cluster Program
We concur with the fmding. The following corrective actions have been taken to insure that adequate internal controls are maintained in the Federal Work Study Program. (1) Tax withholding authorizations have been obtained from all students employed on the program, these files are maintained in the Human Resources Office. (2) Supervisors have been notified
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State of Georgia - - - - - - - -
Auditee's Corrective Action Plans For the Rscal Year Ended June 30, 1999
that the designated supervisor or an authorized backup must sign time sheets in the supervisors' absence. (3) Copies of the signature or authorized supervisors and designated backup will be maintained on file in the Student Financial Aid Office and the University Payroll office. (4) Procedures have been put in place to insure that the hours worked on the time sheet are approved only after the last date indicated as worked on the time sheet. (5) The University has also named a new work study coordinator and revised its procedures for the monitoring and the operations of the Federal Work Study program. (6) The Payroll office provides the work-study coordinator with a bi-weekly and cumulative records of student earnings.
Contact Person: Shirley L. Williams, Vice President for Business and Finance Telephone: 912-825-6400, FAX: 912-825-6089; E-mail: williams@mail.fvsu.edu
SAVANNAH STATE UNIVERSITY
Finding Control Number: FA-548-99-01 ALLOWABLE COSTS/COST PRINCIPLES Employee Compensation Deficiencies Questioned Costs: $81,444.33
We concur with this fmding. Appropriate Business Office personnel and Grants personnel have been made aware of the requirements of OMB Circular 21 as it pertains to time and effort reports. Procedures are being worked out to ascertain that the time and effort reports show the actual percentages of time worked and that payroll records reflect the proper allocation of salary. The University will follow up with the grantor agencies in order to resolve the finding.
Contact Person: Mr. George Williams, Dean of Graduate Studies and Research Telephone: (912) 356-2244; E-mail: williamsg@savstate.edu
Contact Person: Mr. Thomas Hines, Director of Title III Telephone: (912) 353-3210; E-mail: hinest@savstate.edu
Finding Control Number: FA-548-99-02 DAVIS-BACON ACT Payment of Prevailing Wage Rates Not Monitored Higher Education - Institutional Aid (CFDA 84.031)
We concur with this fmding. Persons involved in administering Federal funds have been made aware of the requirements of the Davis Bacon Act as outlined on the fmding. Individuals involved in the contracting process must assure that every contract is monitored for compliance.
Mrs. Thelma Harris, Director of Business Services Telephone: (912) 356-2414; E-mail: harrist@savstate.edu
Finding Control Number: FA-548-99-03 ELIGIBILITY Overpayment of Student Financial Aid Weaknesses in Internal Control Structure Student Financial Aid Cluster Program Questioned Cost: $6,321.05
We concur with this fmding. System parameters have been modified to synchronize students' residency status with the registrar and admissions records. As a result, students with out of state waivers will not be assigned the higher non resident cost of attendance budget which contributed to overpayments.
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Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30, 1999
In order to prevent Federal works study students from earning more than is permitted under the regulations, the Financial Aid Office has begun notifying work study student supervisors when the balance of hours remaining to be worked by the student is 100 or less. Supervisors will be responsible for assisting in keeping the hours worked within the allotted time.
In order to secure an acceptable Promissory Note, it is necessary to have a reprint done and executed again by the student after posting disbursements from an original note. Nevertheless, more attention and scrutiny will be given to Promissory Notes prior to disbursement.
Contact Person: Mrs. Jerrie K. Huewitt, Associate Director of Financial Aid Telephone: (912) 353-3198; E-mail: huewittj@savstate.edu
Finding Control Number: FA-548-99-04 ELIGIBILITY Failure to Conduct Meetings for Satisfactory Academic Progress Appeals Student Financial Aid Cluster Program
We concur with this fmding. The Appeals Committee will meet each semester and the Associate Director of Financial Aid will revise the Appeals Committee Status Form to reflect the decisions of the committee members. In the absence of full committee input, decisions will be made if a quorum is present.
Mrs. Jerrie K. Huewitt, Associate Director of Financial Aid Telephone: (912) 353-3198; E-mail: huewittj@savstate.edu
Finding Control Number: FA-548-99-05 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Higher Education - Institutional Aid (CFDA 84.031) Questioned Cost: $6,030.12
We concur with this finding. We will review our equipment inventory program and procedures and the Federal requirements as they pertain to inventory records and correct any deficiencies. In addition to the institutional inventory records which presently may not contain all necessary information, the Title III Office maintains an inventory listing of equipment purchased with Title III funds. Activities Director are required to inventory all Title III equipment quarterly.
Title III equipment is ordered at the beginning of the Fiscal Year. In some instances, renovations to buildings or rooms where the activities are to occur are not complete when the equipment arrives, therefore it may remain in its original container for security purposes until the facility is ready for installation of the equipment.
The institution will obtain information from the auditors in order to ascertain which computers are in question and make sure that they are utilized for the programs for which they were acquired.
Contact Person: Mrs. Thelma Harris, Director of Business Services Telephone: (912) 356-2414; E-mail: harrist@savstate.edu
Finding Control Number: FA-548-99-06 PERIOD OF AVAILABILITY Failure to Properly Refund to Grantor Agency Student Financial Aid Cluster Program
Federal Direct Student Loan Program (CFDA 84.268)
We concur with this finding. We are currently examining the institutional records to make sure that the excess cash is properly applied or refunded.
F-61

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corrective Action Plans For the Fiscal Year Ended June 30. 1999
Mr. Paul Sood, Grants Manager Telephone: (912) 353-3043; E-mail: soods@savstate.edu
Finding Control Number: FA-548-99-07 REPORTING Expenditures in Excess of Authorization Student Financial Aid Cluster Program
Federal Pell Grant Program (CFDA 84.063)
We concur with this fmding. Discrepancies have been identified between students' attendance, fmancia1 aid and accounting records. Reconciled differences have been electronically transmitted to the Department of Education to update Pell Payment Vouchers. Previously rejected vouchers by the Department of Education have been electronically submitted for corrections and acceptance. If rejected again, the Associate Director or Financial Aid will request approval for paper submission before the extended deadline date of March 1, 2000.
The November 1999 STC Banner enhancement to the Recipient Financial Management System (RFMS) is the tool that will be used to identify and resolve referenced discrepancies in a timely manner. Additionally, the transfer of this reporting function to Business and Finance as recommended by the U. S. Department of Education will improve reconciliation.
Contact Person: Mrs. Jerrie K. Huewitt, Associate Director of Financial Aid Telephone: (912) 353-3198; E-mail: huewittj@savstate.edu
Contact Person: Mrs. Beulah Woodley, Loan Collections Officer II Telephone: (912) 353-3042; E-mail garadnerb@savstate.edu
Finding Control Number: FA-548-99-08 REPORTING Inaccurate Reporting Student Financial Aid Cluster Program
We concur with this fmding. Individuals involved have been made aware of the deficiencies and will utilize due care when preparing future reports in order to prevent recurrence of this problem.
Contact Person: Mrs. Jerrie K. Huewitt, Associate Director of Financial Aid Telephone: (912) 353-3198; E-mail: huewittj@savstate.edu
Contact Person: Mrs. Beulah Woodley, Loan Collection Officer II Telephone: (912) 353-3042; E-mail: gardnerb@savstate.edu
Finding Control Number: FA-548-99-09 REPORTING Failure to Prepare Reconciliations Student Financial Aid Cluster Program
Federal Direct Student Loan Program (CFDA 84.268)
We concur with this fmding. The university is currently in the process of auditing the Direct Student Loan Program. Deficiencies located will be corrected and procedures established to require reconciliation in a timely manner.
Contact Person: Mr. Paul Sood, Grants Manager Telephone: (912) 353-3043; E-mail: soods@savstate.edu
F-62

- - - - - - - - - State of Geopgia---------
Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30, 1999
Finding Control Number: FA-548-99-10 SPECIAL TEST AND PROVISIONS Failure to Disclose Federal Funding in Public Announcement Higher Education - Institutional Aid (CFDA 84.031)
We concur with this finding. Appropriate institutional individuals have been made aware of this finding and will make sure that all bid documents will disclose amount of Federal fund involved in accordance with the applicable laws and regulations.
Contact Person: Mrs. Thelma Harris, Director of Business Services Telephone: (912) 356-2414; E-mail: harrist@savstate.edu
SOUTHERN POLYTECHNIC STATE UNIVERSITY
Finding Control Number: FS-550-99-02 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
A University-wide physical equipment inventory is currently underway during fiscal year 2000. The inventory is seventy five percent complete with anticipated completion date of March 31, 2000. Items such as lost, stolen, surplused equipment and equipment with incomplete documentation are being identified and appropriate action will be taken. Subsequently, the University equipment inventory subsystem will be wholly and completely reconciled to the accounting records.
Contact Person: Dottie Maiuro, Stores Clerk 1 Telephone: (770) 528-3292
Finding Control Number: FA-550-99-01 REPORTING Inadequate Internal Controls and Compliance Deficiencies for FISAP Reporting Student Financial Aid Cluster Program
The fmding is a result of two years of software changes that occurred in both the Fiscal Affairs Office and the Financial Aid Office. Ongoing collaboration is currently underway to address the software discrepancies, and a joint workgroup has been created to reconcile these records.
With the help of our Information Technology department, this deficiency will be resolved and the FISAP records (including the Pell grant program) for FY99 and all future fiscal years will be correct and reconciled.
Contact Person: Dianne Moffett, Controller Telephone: (770)528-3706
Finding Control Number: FA-550-99-02 SPECIAL TESTS AND PROVISIONS Inadequate Internal Controls and Compliance Deficiencies for Promissory Notes and Exit Counseling Student Financial Aid Cluster Program
FEDERAL PERKINS LOAN PROGRAM - The seven students will be contacted and asked to sign the Federal Perkins Promissory Note. Procedures are now in place to ensure that no further disbursements will be made until signed original Promissory Notes are on file. The Financial Aid Office will provide a listing of awarded Perkins Loan recipients to the Fiscal Affairs Office. After the student signs the Promissory Note, the student's records will be released and a loan disbursement will occur.
F-63

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30, 1999
WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM - Exit counseling will be primarily conducted by the Student Accounts Coordinator. The existing (secondary) method of exit counseling is web-based exit counseling. This method will be encouraged only in cases of hardship or when no other solution can be found to satisfy this requirement. The web product is under review to ensure that the capture of the student's signature is satisfied.
A form cover letter will be developed to accompany the exit counseling package and a copy of same will be filed in the student's fmancial aid record to verify the exit counseling requirement was initiated. Staff follow-up via telephone will be made to solicit the return mail of the signed exit counseling form.
Contact Person: Dr. Emerelle McNair, Director of Scholarships and Financial Aid Telephone: (770) 528-7468
GEORGIA MILITARY COLLEGE
Finding Control Number: FS-590-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this fmding. The property inventory manager has been directed to modify the inventory to reflect the acquisition date, acquisition cost, estimated replacement, location and description, and identifying number. In addition, he has been directed to maintain adequate reference material to substantiate both additions and deletions to the Plant Fund. The process of reconciling the semi-annual physical inventory to the inventory will be improved to insure that all discrepancies are investigated prior to adjusting the inventory.
Contact Person: Charles E. Madden, VP, Business Affairs & Personnel Telephone: (912)445-1468; Fax: (912) 445-2688; E-mail: emadden@gmc.cc.ga.us
WEST GEORGIA TECHNICAL INSTITUTE
Finding Control Number: FS-819-99-03 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures
We concur with this fmding. West Georgia Technical Institute will perform a formal reconciliation of activity in the Asset Management System in FY2000. Accounting personnel will review inventory records to determine the proper valuation of equipment items. Adjustments will be made to correct the overstated valuation and supporting documentation will be kept on file. The Accounting Manager is responsible for inventory reconciliation.
Contact Person: Howard Taylor, Accounting Manager Telephone: (706) 845-4323; Fax: (706) 812-5613; Email: htaylor@westga.tec.ga.us
ALBANY TECHNICAL INSTITUTE
Finding Control Number: FS-820-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this fmding. The two items totaling $4,094.00 have since been located. To ensure that inventory records reflect the accurate inventory, our property asset technician will:
1) Complete an annual physical inventory of the campus. 2) Perform additions and deletions, as necessary. 3) Verify accuracy by having faculty and staff check inventory to inventory records.
F-64

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30. 1999
Corrections will be made to our records for all changes. 4) Verification of updates will be reviewed by the Director of Accounting Services and approved by the Vice President of
Administrative Services.
Contact Person: Kathleen Skates, Vice President of Administration Telephone: (912) 430-3524; E-mail: kskates@adrnin1.albany.tec.ga.us
Contact Person: Karen Thomas, Director of Accounting Services Telephone: (912) 430-3525; E-mail: krthomas@admin1.albany.tec.ga.us
AUGUSTA TECHNICAL INSTITUTE
Finding Control Number: FA-824-99-01 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. However, the U.S. Department of Education will make fmal resolution of this fmding. The Institute will work with this Agency to seek final resolution of this fmding based on facts and circumstances specifically related to the Institute.
Contact Person: Janice Richardson, Vice President of Administrative Services Telephone: (706)771-4009
COLUMBUS TECHNICAL INSTITUTE
Finding Control Number: FS-828-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures
CONCURRENCE: We concur with this finding.
CORRECTIVE ACTION: Columbus Technical Institute has instituted a procedure to review pertinent activity and update property records on a weekly basis. In addition, we have scheduled a consultation with Charles Kersey, Property Control Institutional Support Officer for the Department of Technical and Adult Education, to review our procedures on site January 20, 2000. We intend to implement any suggestions he has for further improvements to our internal control procedures so that we will be prepared to perform a successful reconciliation between accounting and asset records when the new tools and guidelines for that process become available.
In addition, Annette Campbell, Vice President, Administrative Services, Judy Gatts, Director of Finance, and Letha Herring, Purchasing Technician, will conduct a review of fiscal 1999 records with the objective of completing the reconciliation and eliminating or minimizing any prior year discrepancy as soon as possible but no later than June 30, 2000.
Contact Person: Annette Campbell, Vice President, Administrative Services Telephone (706) 649-1884; Fax: (706) 649-1497; E-mail: acampbell@columbustech.org
F-65

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corrective Action Plal1S
For the Fiscal Year Elided JUlIe 30, 1999
MOULTRIE AREA TECHNICAL INSTITUTE
Finding Control Number: FS-837-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequate Property Management Procedures
We concur with this fmding. A physical inventory will be conducted and procedures implemented during Fiscal Year 2000 to insure that equipment inventory records are maintained in accordance with provisions of the State Property Management System Manual.
Contact Person: Ken Strickland, Vice President of Administrative Services
SAVANNAH TECHNICAL INSTITUTE
Finding Control Number: FA-841-99-01 ELIGIBILITY Improper Determination of Emollment Status Student Financial Aid Cluster Program
Pell Grant Program (CFDA 84.063) Questioned Costs: $1,276.00
We concur with this fmding. The amount of$1,276.00 of Title IV assistance will be refunded to the U. S. Department of Education Pell Grant Program. The Financial Aid Director will audit awards prior to disbursements to ensure student's accounts are allowable based on their emollment status. All Vice Presidents, in conjunction with fmancial aid, registrar and the accounting department will enforce written policies to ensure the timely reporting of no show students (students registered, but never attended class) and students who are dropped for attendance if absences exceed 10% of the total class hours. All student withdrawals issued by the instructor which are not reported within two business days to the Registrar will have to personally be turned into the Vice President of Instructional Services. The V. P. of Instructional Services will issue all late withdrawals reports to the registrar's office who then will forward information to the fmancial office for the reevaluation of awards.
We concur with this fmding. The Director of Financial Aid will monitor and audit the emollment status of fmancial aid recipients on a timely basis (twice quarterly) to ensure that the conversion of student clock hours are properly calculated. In addition, the Director of Financial Aid will conduct ongoing training classes on clock hour conversion with the financial aid staff to ensure understanding and proper calculation and conversion of student clock hours. The fmancial aid staff will conduct on going audits to ensure all student accounts are current and accurate. Awards and disbursements will be in accordance will program regulations. During summer quarter 2000, Savannah Tech will bring the Banner Financial Aid module on line. This will also help ensure that the emollment status of financial aid recipients and the student clock hour conversion calculations are accurate.
Contact Person: Shevon Carr, V. P. Student Services Telephone: (912) 351-4471; Fax: (912) 351-4445; E-mail: sturner@savannah.tec.ga.us
Finding Control Number: FA-841-99-02 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System Vocational Education - Basic Grants to States (CFDA 84.048)
We concur with this fmding. The corrective action will include the sharing of a database by the receiving technician, the purchasing technician, and the operations clerk. By establishing this internal control measure, the actual cost of inventory should be correct. This procedure will ensure keying errors will be kept to a minimal by our Operations Clerk.
F-66

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30, 1999
Contact Person: Susan Z. Turner, V. P. Administrative Services Telephone: (912) 351-4401; Fax: (912) 351-4403; E-mail: sturner@savannah.tec.ga.us
GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION
Finding Control Number: FA-918-99-01 REPORTING Report Data Submitted to ED was Incorrect
GHEAC agrees to work with the lender and to solve reporting issues and to reconcile loan status differences. Further, GHEAC agrees that it will continue to diligently work with the holders of GHEAC loans utilizing the Unreported Loans Report to ensure that all holders to the extent they can be identified report timely and accurately to GHEAC. As we pursue this, it is worthwhile to note that due to bank closures in the 1980's, and the closing of the Eduserve service center, it is problematic to identify the holders of some loans in GHEAC's portfolio.
Contact Person: Cindy Abbot, Assistant Director for Program Administration Telephone: (770) 724-9133
GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION
Finding Control Number: FS-977-99-03 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Controls over General Fixed AssetsIProperty Management
We concur with this finding. The Commission will re-evaluate all procedures involving the accountability for General Fixed Assets in FY 2000. This process will include the training and/or re-training of all GPB personnel involved with the purchasing, receiving, decaling, handling, cannibalizing or surplusing of equipment to ensure a workable system is designed and implemented in compliance with the State Property Management System Manual.
The Commission will enlist the assistance of its Board of Advisors for Broadcasting for possible recommendations to obtain a professional equipment inventory and appraisal service for the 1400 pieces of equipment with an approximate value of$16,000,000 currently recorded as one item on the inventory system.
A physical inventory will be conducted and completed by June 30, 2000.
Contact Person: Steve Smith, Director of Administrative Services Telephone: (404) 685-2521; fax: (404) 685-2268; E-mail: ssmith@gpb.org
NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8504-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
We concur with this finding. 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 fmancia1 statements.
Contact Person: Gail B. Cobb, Financial Officer Telephone: 706-295-6189; Fax: 706-295-6098; E-mail: gcobb@roman.net
F-67

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corrective Action Plans
For the Rscal Year Ended June 30, 1999
NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8524-99-01 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 all 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 Telephone: (706) 276-1111, Fax: (706) 276-1113; E-mail: aellis@ellijay.com
PIONEER REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8544-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
Due to changes in administration and changes in job descriptions this past year, and with limited staff we were unable to pursue the recording of fixed assets on our financial statements. It is however a major goal for our planning as we move into the FYOI fiscal year.
Contact Person: Anne Saunders, Director Telephone: (706) 865-2141; E-mail: asaunders@sun.pioneer.resa.k12.ga.us
METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8564-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
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.
Contact Person: Tommie Pike, Fiscal Officer E-mail: tommie@mresa.org
NORTHEAST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8584-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
I concur with this fmding. Due to current staffmg 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 fmancial statements.
Contact Person: Debra Wallace, Director of Business and Finance Telephone: (706)742-8292; Fax: (706)742-8928; E-mail: dwallace@negaresa.org
F-68

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30, 1999
WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8604-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
West Georgia RESA concurs with this fmding. 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-8664-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
We concur with this fmding. The following information shows our corrective action plan for all audit fmdings and improper or questioned costs: 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 into conformity with Generally Accepted Accounting Principles. However, Oconee RESA 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. Date of Implementation: Upon receipt of new GDOE accounting software.
Contact Person: Frieda Brinson, Accounting Supervisor Telephone: (912)552-5178; ext. 227 Fax: (912)552-0446 E-mail: fbrinson@doe.k12.ga.us
CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8724-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
We concur with this fmding. At the present time we do not intend to address this issue. I am hoping that GASB Statement 34 will address this item and no longer make it a requirement.
Contact Person: Meredith Walter, Executive Director Telephone: (912) 937-5341
HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8764-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
Due to the financiallirnitations 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 D. Bradfield, Executive Director Telephone: (912) 374-2240, Ext. 111; E-mail: june@lightwood.com
F-69

- - - - - - - - - - State of Georgia - - - - - - - - - -
Auditee's Corrective Action Plans
For the Fiscal Year Ended June 30. 1999 FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8804-99-01 GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group We concur with this finding. 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. Contact Person: Donna Mangrum, Financial Officer Telephone: (912) 489-8601; E-mail: dmangrum@mail.frrst-district.resa.kI2.ga.us
F-70

Appendix ~~' ()rganiEationa[q}nlis

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

Usting of Organizational Units Comprising the State of Georgia Reporting Entilv
For the Fiscal Year Ended June 30. 1999

ORGANIZATIONAL UNIT

CONTROL NUMBERS

Administrative Services, Department of

401

Agricultural Exposition Authority, Georgia

926

Agriculture, Department of

402

Agrirama Development Authority, Georgia

940

Audits and Accounts, Department of (*)

404

Aviation Hall ofFame, Georgia

483

Banking and Finance, Department of

406

Boxing Commission, State

494

Building Authority, Georgia

Regular (*)

900

Hospital (*)

903

Markets (*)

904

Penal (*)

905

Community Affairs, Department of

428

Correctional Industries Administration, Georgia

921

Corrections, Department of

467

Defense, Department of

411

Development Authority, Georgia (*)

914

Education, Department of

414

Education Authority, Georgia

Schools (*)

906

University (*)

907

Environmental Facilities Authority, Georgia (*)

928

Financing and Investment Commission, Georgia State (*)

409

Forestry Commission, State

420

Games Commission, State

496

General Assembly, Georgia (*)

445

GeorgiaNet Authority

941

Golf Hall of Fame Board, Georgia

958

Governor, Office of the

422

Higher Education Assistance Corporation, Georgia (*)

918

Highway Authority, Georgia

924

Housing and Finance Authority, Georgia (*)

923

Human Resources, Department of

427

Industry, Trade and Tourism, Department of (*)

429

Insurance, Department of

408

International and Maritime Trade Center Authority (*)

974

Investigation, Georgia Bureau of

471

Jekyll Island State Park Authority

910

Judicial Branch

430

Juvenile Justice, Department of

461

Labor, Department of

440

Lake Lanier Islands Development Authority

913

Law, Department of

442

Lottery Corporation, Georgia (*)

973

Medical Assistance, Department of

419

Music Hall of Fame Authority, Georgia

929

Natural Resources, Department of

462

North Georgia Mountains Authority

912

(*) Audits of these organizational units performed in whole or in part by other auditors.
AP-3

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

Usting of Organizational Units Comprising
the State of Georgia Reporting Entitv For the Fiscal Year Ended June 30, 1999

ORGANIZATIONAL UNIT

CONTROL NUMBERS

Pardons and Paroles, State Board of

465

Pension Funds

Employees' Retirement System of Georgia (*)

Regular

416

Defined Contribution Plan

N/A

District Attorneys Retirement Fund

946

Judicial Retirement System

N/A

Legislative Retirement System

N/A

Public School Employees' Retirement System

468

State Employees' Assurance Department

N/A

Superior Court Judges Retirement Fund

945

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

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

Southern Polytechnic State University

550

State University of West Georgia

554

(*) Audits of these organizational units performed in whole or in part by other auditors.
AP-4

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

Usting of Organizational Units Comprising
the State of Georgia Reporting Entitv For the Fiscal Vear Ended June 30. 1999

ORGANIZATIONAL UNIT

CONTROL NUMBERS

Colleges and Universities (continued) Associate Degree Colleges Abraham Baldwin Agricultural College Atlanta Metropolitan College Bainbridge College Coastal Georgia Community College Dalton State College Darton College East Georgia College Floyd College Gainesville College Georgia Perimeter College Gordon College Macon State College Middle Georgia College South Georgia College Waycross College Other Georgia Military College Skidaway Institute of Oceanography
Regional Educational Service Agencies Central Savannah River Area Regional Educational Service Agency Chattahoochee-Flint Regional Educational Service Agency Coastal Plains Regional Educational Service Agency First District Regional Educational Service Agency Griffin Regional Educational Service Agency Heart of Georgia 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 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 Sports Hall of Fame Authority Stone Mountain Memorial Association (*) Student Finance Authority, Georgia (*) Student Finance Commission, Georgia Subsequent Injury Trust Fund Board of Trustees Superior Court Clerks' Cooperative Authority, Georgia (*)

557 561 562 563 569 570
572
573 575 571 576
581
584 587 589
590 593
8684
8724
8864 8804 8624 8764 8564 8644 8524 8584 8504 8664 8884 8544 8844 8604 497 474 942 478 919 480 944
911
917 476 489 955

(*) Audits of these organizational units performed in whole or in part by other auditors.
AP-5

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

Usting of Organizational Units Comprising
the State of Georgia Reporting Entilv For the Fiscal Year Ended June 30, 1999

ORGANIZATIONAL UNIT

CONTROL NUMBERS

Technical and Adult Education, Department of

415

State Technical Institutes

Albany Technical Institute

820

Altamaha Technical Institute

821

Athens Area Technical Institute

822

Atlanta Technical Institute

823

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

Northwestern Technical Institute

849

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

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 in whole or in part by other auditors.
AP-6