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SINGLE AUDIT REFORT
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JuNE 30. 2001
.,
EIN 58-0973190
SINGLE AUDIT REroRT
JuNE 30., 2001
Prepared by GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
RUSSELL W. HINTON. State Auditor
Drawings - Huey J. Theus is employed as the Marketing Director for the Georgia Department of Labor. He is a member
of the South Cobb Art Alliance and served as the head of the Art Department at Mount Carmel Christian Church in Decatur, Georgia. His portfolio contains color-lithographed prints, pen and ink drawings and paintings. which have won various awards, including a Georgia State Senate resolution honoring his work.
The St. Simons Lighthouse - The current lighthouse, completed in 1872, was built by one of Georgia's most renowned
architects - Charles Cluskey. The small house was once the light keeper's cottage. However, in 1953, a Fresnel lens (French, hand-made) and timers replaced the oil lamps and chains, thereby, eliminating the need for a keeper. The current tower stands 106 feet high and 104 feet above water. This structure was built to replace the original lighthouse built by James Gould in 1807, completed in 1808 and destroyed in 1862 by the Confederate Army. Ropes mark the original site twenty-five feet from the current structure. The St. Simons Lighthouse was placed under the jurisdiction of the U.S. Coast Guard in 1939.
RussELL W. H1NTON
STATE AUDITOR
(404) 656-2174
DEPARTMENT OF AUDITS AND ACCOUNTS
0
254 Washington Street, S.W., Suite 214
Atlanta, Georgia 30334-8400
March 15, 2002
To the Citizens ofthe State of Georgia, The Honorable Roy E. Barnes, Governor of Georgia
and Members ofthe General Assembly of Georgia
I am honored to present the Single Audit Report ofthe State ofGeorgia for the fiscal year ended June 30, 2001. Organizational units comprising the State ofGeorgia reporting entity are listed in Appendix "A" ofthis 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 ofthe State ofGeorgia discloses the results ofthe financial operations ofthe State of Georgia reporting entity, as well as its compliance with requirements applicable to Federal financial assistance programs administered by the State.
In submitting this report, I would like to express my appreciation to all those who made the completion of this audit possible, particularly members of each organizational unit of the State of Georgia and the staffofthis Department. Your suggestions as to how we may improve our services will always be welcomed.
Respectfully,
sell W. Hinton, CPA, CGFM State Auditor
-- -:.. ..;, ...'l..... ;--~.,.
.,.,, ..,,
Table of Contents
June 30, 2001
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-12
Statement ofFunds Available and Expenditures Compared to Budget - Budget Fund.......................:.................... A-16
Combined Statement ofRevenues, Expenses and Changes in Fund Equity/Fund Balances -
All Proprietary Fund Types, Nonexpendab/e Trust Funds and Discretely Presented Component Units............. A-18
Combined Statement ofCash Flows -
All Proprietary Fund Types, Nonexpendab/e Trust Funds and Discretely Presented Component Units............. A-22
Statements ofPlan Net Assets - Pension Trust Funds, Investment Trust Funds
and Discretely Presented Component Units ................................................................................................... A-24
Statement ofChanges in Plan Net Assets - Pension Trust Funds, Investment Trust Funds
and Discretely Presented Component Units .................................................................................................... A-26
Combined Statement ofChanges in Fund Balances - College and University Funds ............................................. A-28
Combined Statement ofCurrent Funds Revenues, Expenditures and Other Changes -
College and University Funds.......................................................................................................................... A-32
Notes to the Financial Statements ........ ;............................................................................................................... A-33
Required Supplementary Information
Retirement Systems - Required Supplementary lnformation .................................................................................. A-87
AUDITOR'S SECTION
SECTION B - REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING 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-7 Federal Awards Findings and Questioned Costs........................................................................................................... D-41
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0
Table of Contents
0
June 30, 2001
0
0
0
AUDITEE'S SECTION
0
SECTION E - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
0
Schedule ofExpenditures ofFederal Awards ................................................................................................................ E-3
0
Schedule ofCluster Programs ...................................................................................................................................... E-41
0
0
SECTION F - AUDITEE'S RESPONSES
0
Summary Schedule' ofPrior Year Findings and Questioned Costs ................................................................................. F-3
Corrective Action Responses to Current Year Findings and Questioned Costs..........................................................:.... F-39
0
0
0
APPENDIX "A"
0
Listing ofOrganizational Units Comprising the State ofGeorgia Reporting Entity........................................................ AP-3
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
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0
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.
RussELL W. HtNTON
STATE AUDITOR
(404) 656-2174
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
INDEPENDENT AUDITOR'S REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS
The Honorable Roy E. Barnes Governor of Georgia
and Members of the General Assembly of the State of Georgia
We have audited the accompanying general purpose financial statements of the State of Georgia, as listed in the Table ofContents, as of and for the year ended June 30, 2001. These general purpose financial statements are the responsibility ofthe 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 7% ofthe assets and 15% ofthe revenues ofthe general fund, 100% of the assets and revenues of the capital projects funds, 90% of the assets and 98% of the revenues of the enterprise fund, 64% of the assets and 21 % of the revenues of the internal service funds, 67% of the assets of the fiduciary funds and 100% ofthe pension trust funds revenues, and 4% ofthe assets and less than 1% ofthe liabilities ofthe general fixed assets and general long-term debt account groups, respectively. In addition, we did not audit certain discretely presented component units which represent 88% of the assets and 95% of the revenues of the component unit governmental fund types, 83% of the assets and 95% of the revenues of the component unit proprietary fund types and 98% ofthe assets and 99% of the revenues of the component unit fiduciary fund types. The financial statements of these organizations and component units were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for those financial statements, is based solely upon the reports of the other auditors.
Except as discussed in the following paragraphs, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free ofmaterial misstatement. 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinion.
0
0
0
The State ofGeorgia's accounting system is decentralized in nature. The management ofeach organizational unit is responsible for maintaining accounting records pertinent to its operations and each retains complete
0
responsibility and control over their operations, including revenue collections and disbursements. The State's
0
principal accounting system, the Phoenix System, is utilized, in whole or in part, by 78 state organizations.
0
This accounting system allows for the accumulation of financial data, by state organization, on a basis of accounting prescribed or permitted by the budgetary statutes and regulations of the State of Georgia.
0
Constitutional and statutory provisions ofthe State of Georgia do not provide for a position or organizational
0
unit responsible for the preparation of statewide financial statements. It was necessary for staff of the
0
Department ofAudits and Accounts to consolidate financial information presented in individual organization financial statements and to prepare adjusting journal entries necessary for the production ofthe general purpose
0
financial statements. We are therefore not independent with regard to the preparation of accounting entries
0
required to convert the consolidated budgetary financial statements to general purpose financial statements
0
prepared in accordance with generally accepted accounting principles.
0
As discussed in Note 1 to the general purpose financial statements, the State of Georgia did not maintain
0
adequate systems to account for or to depreciate (when required) fixed assets in conformity with generally
0
accepted accounting principles. We were unable to determine the effect of these limitations on the general
purpose financial statements.
0
0
As discussed in Note 1 to the general purpose financial statements, the accounting systems of the State of
0
Georgia did not facilitate recording encumbrances for Colleges and Universities in conformity with generally accepted accounting principles. Contractual obligations for services not performed and for goods that have not
0
been delivered at the end ofthe fiscal year are recognized as expenditures and liabilities in the accompanying
0
College and University financial statements. The recognition ofencumbrances as expenditures and liabilities is
0
not consistent with generally accepted accounting pri~ciples. We were unable to determine the effect ofthese limitations on the general purpose financial statements.
0
0
As discussed in Notes 9 and 10 to the general purpose financial statements, the State of Georgia did not
0
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
0
the general purpose financial statements.
0
0
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
0
with generally accepted accounting principles. We were unable to determine the effect ofthis departure from
0
generally accepted accounting principles on the general purpose financial statements.
0
As discussed in Note 1 to the general purpose financial statements, the State's accounting system has
0
limitations in identifying transactions between organizations whose financial activity is included within an
0
individual fund. State accounting policies and procedures allow the recording of revenues, receivables,
0
expenses and payables for such transactions. All such intrafund transactions have not been eliminated as
0
required by generally accepted accounting principles. We were unable to determine the effect of these
overstatements on the general purpose financial statements.
0
0
In our opinion, based on our audit and the reports of other auditors, except for the effects of the matters
0
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,
0
2001, and the results ofits operations, the cash flows ofits proprietary fund types and its nonexperidable trust
0
funds, the changes in net assets ofits pension trust funds and investment trust funds, and the changes in fund
0
balances and current funds revenues, expenditures, and other changes ofthe college and university funds, for the year then ended in conformity with generally accepted accounting principles.
0
0
0
0
A-4
0
The financial statements of the general fuiid fefletfaccoilntspayable irt the ~ount of$872,548,818 which
represents the State of Georgia's liability for teachers salaries earned before June 30, 2001, but not paid until July and August, 2001. State appropriations for the subsequent fiscal year were available for obligation even though the period to which the appropriation applied had not begun. The recognition of this liability at June 30, 2001, however, is not in accordance with generally accepted accounting principles as promulgated by Governmental Accounting Standards Board (GASB) Statement 33 because the subsequent fiscal year had not begun. We believe, however, the omission ofthis liability would cause the financial statements ofthe State of Georgia to be misleading.
As discussed in Note 2 to the general purpose financial statements, except for the matter discussed in the
preceding paragraph, the State of Georgia implemented GASB Statement Number 33, Accounting and
Financial Reportingfor Nonexchange Transactions, in fiscal year 2001. In addition, the State has elected not
to early implement GASB Statement Number 34, Basic Financial Statements-and Management's Discussion
and Analysis-for State and Local Governments, and Statement Number 35, Basic Financial Statements-and
Management's Discussion and Analysis- for Public Colleges and Universities. Those statement's will be
implemented for the fiscal year ended June 30, 2002, and will have a significant impact on the State's revenue
and expenditure recognition and assets, liabilities, and fund equity reporting.
In accordance with Government Auditing Standards, we have also issued a report dated March 15, 2002, on our consideration of the State of Georgia's internal control over financial reporting and on our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. Those reports are included in the State of Georgia Single Audit Report.
Our audit was made for the purpose offorming an opinion on the general purpose financial statements taken as a whole. The section entitled 'Retirement Systems - Required Supplementary Schedules' within Financial Section, Required Supplementary Information is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, except for the effects ofthe matters noted above, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole.
The accompanying Schedule of Expenditures of Federal Awards, located in Section E, is presented for purposes ofadditional analysis as required by U.S. Office ofManagement and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part ofthe general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, 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,
-
~~:k
Ru ell W. Hinton, CPA, CGFM State Auditor
March 15, 2002
A-5
.
.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.----
RlRR:bE GENERAL
FINANCIAL lli~l'EM"ENTS
. .---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.---.------.~.------,.-.....--
0
0
0
Combined Balance Sheet
0
ALL Fund Types, Account Groups
0
And Component Units June 30, 2001
0
0
Primary Government
0
Assets and Other Debits
Assets: Cash and Cash Equivalents Cash and Cash Equivalents in Nonexpenclable Trust Funds Investments Receivables (Net of Allowances for Uncollectibles) lntcrgovcrnmcntal - Federal Interest and Dividends Notes and Loans Taxes Other Due from Other Funds Due from Primary Government Due from Component Units lntcrfund Receivables Inventories Prepaid Items Restricted Assets Cash and Cash Equivalents Investments Receivables Interest and Dividends Loans Advances to Other Funds Advances to Component Units Fixed Assets (Net, Where Applicable, of Accumulated Depreciation) Deferred Charges Other Assets Other Debits: Amount Available in Debt Service Fund Amount to be Provided for Retirement of General Long-Term Debt
Total Assets and Other Debits
Governmental Fund Types
Propiietary Fund Types
0
Special
Debt
Capital
Internal
0
General
Revenue
Service
Projects
Enterprise
Service
0
0
2,227,951,922 $
135,253,964
473,989,500
480,353,640
122.468, l 7 I
0
2,592,011,468
1,321,745,911 52,608,100
901,927,664 325,752,746
1,247,296,886
101.340,117
I, 151.315,307
0
16,482,594
0
0
123,506
26,382.720
11.442,902
10,751,840
0
51,993
49,200,899 30,470,190
3,513,927
146,032
0
4,669,187
10,913.318 614,169
0
0
0
6,925 9,605,340
6,280,271
0
0
12,668,463
333,574, 14 I
0
0
0
0
7,511,333,158 $=====0=$
s 135,253,964
1,747,686,684 $
s 625.414.127
1.641.225.880
0
Liabilities, Equity and Other Credits
0
Liabilities: Accounts Payable and Other Accruals Compensated Absences Payable Claims and Judgments Payable Contracts Payable Salaries/Withholdings Payable Benefits Payable Due to Other Funds Due to Primary Government Due to Component Units lntcrfund Payables Accrued Interest Payable Undistnbuted Local Government Sales Tax Defen-ed Revenue Capital Lcascs/Installmcnt Purchases Payable Mongage Loans under Repurchase Agrccmcnts Funds Held for Others Other Liabilities Deposits and Overpayments Advances from Other Funds Advances from Primary Government Long-Tcrm Debi Payable (Net of Unamortized Discounts)
Total Liabilities
1,329,866,600
5,870,113 14,490,209 625,626,872 7,209,950 3,048,918
61,000,000 195,384,590
73,137,189 5,074,364
2.320.708,805 ------'o'-
s 30,311,298
6,093,634
0
4,233,441
786,931
S.442,069 351,780,322
0
28,776,103
4,740
27,673 118,166
0
169,759,350 35,396
3.137,000
0
455,528
0
57,657
0
36,272,017
38,733,891 11,146,776
5,015,053
5,605
0
3,210,489
0
678,863
0
0
o
s 95.814.946
231.633.428
371,633.628
0 0
0
0
0
The notes to the financial statements are an integral part of this statement. A-8
0
Fiduciary Fund Type
Trust and Agency
College and University
Account Groups
General
General
Fixed Assets
Long-Term Debt
Totals (Memorandum
Only)
Primary Government
Discretely Presented Component Units
Governmental Fund Types
Proprietary Fund Types
Fiduciary Fund Types
Tot11ls (Memorandum
Only)
Repo11ing Enti1y
5,482,585,347 16,112
13,386,970,331
358.482 93,956,000
4,654,226 6,266,820 28.330,544 3,137.000
696.238,309
115,187,148
45,953,578 24,094
48,282,206
126,887.035
23,042,221 SS,952,833
9,618,840,853 16.112
18,594,121,257
1,368,057,971 163,070,788 52,936,432 908, 194.484 SI 8,919,453 13,888,840
198,025 3,513.927 83, 156,438 91,706.379
0
8,391
5,573.196,362
3,531,963,532
-
135,253,964 5,430,077.852
0 6,925 6,280,271 9,451,402,498
0 9,613,731
135,253,964
5.430,077,852
25,440,091 2,284,234
916,732 20,542 18,209
85,094,607
6.915.323
419,042,269
187,145,606
7,236,368 22.486,539 1,050,003,819
108,633.142
3,483,904
4,295,298 4,134,745
126,097,736 313,774,559
6,264,006 675,434,788
841,297,438 16,226,829 59,681,236
6,858,318 40,845,965,674
271,937,486 168,021.222
932,515
10.070, 181,531 16,112
59,629,516.771
1,375,294.339 457,494,813
I, I02.940,25 I
908.19~.484
796,490.549 13.888.840 3,504.446 198.025 3.513.927 87,469,945 95.841.124
126,097,736 313,774,559
6,264,006 675,434,788
6,925 6,:?80.271 10.378,727.058 16,226.829 69,294,967
135.253.964
5,436.993.175
s s $ 19,006.283,253 $ 6.684,763,786 $ 3,531,963,532
S.565.331,816 $ 46,449,256.200
120,689,738
s 3,845,238.282 $ 41,293.715.215
91. 708.899.435
11,383,704
163,175 27,357 10.419
222,925,337 113,158,366
3,496,343 8,483,303 35,179,138 3,496,075
381,690,186 6.925
393.281.766
109,657,219 7,475,116
35,177,488 175,106
1,883,134
266.918
541.373.543
244,805,523
6,485,787 5,314,040.506 S.565.331.816
s 1,604,814,014
367,192,889 351,780.322
38,333.407 23,123,775 830,565.360 13,888.840
0 3,504,446
0 57,657 61,000,000 343,781.305 28,318,168
0 490,004,863
46,536.540 2,561,997 6,925
5.314,307.424
9.519.777.932
634,144 1,043,175
625
126,603,926 3,368,874
S,836,839 l,018,106
52,014 553,194 S,920,593
8.203,745
142,866
3,380,130 12,754,756
44,810,299 53,603
7,901.152 315,448,901
12,148,642 11,405,545
6,041,143 1.411.935.345
1,962,850, I 27
3,759,507 109,229 3,145 17,349
3,889.230
1.735,811.591 371.604.938 351.780.32:? 44, 170.246 24.251 .735 830.565.360 13,888,840 198.0:?5 3.504,446 3,380.130 12.812.413 61.000.000 389.144.798 34,309.713 7,901.152 805.453.764 58.685,182 13,967,542 6.925 6.041.143
6.726,242,709
11.494,721.034
(continued)
A-9
0
0
0
Combined Balance Sheet
0
All Fund Types, Account Groups
0
And Component Units (continued} June 30, 2001
0
0
Primary Government
0
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 Fund Balances
Reserved for Encumbrances Reserved for Advances Reserved for Inventories Reserved for Debt Service Reserved for Disaster Assistance Reserved for Pension Benefits Reserved for Guaranteed Revenue Debt Common Reserve Fund Reserved for llllzardous Waste Trust Fund Reserved for Pool Participants Reserved for Lottery for Education Reserved for Midyear Adjustment Reserved for Motor Fuel Tax Funds Reserved for Revenue Shortfall Reserved for Toba<co Settlement Funds Reserved for Underground Storage Trust Fund 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
Governmental Fund Types
Proprietary Fund Types
0
Special
Debt
Capital
Internal
0
General
Revenue
Service
Projects
Enterprise
Service
0
-$
- s_ _ _ _-~s
-$
- s______
0
0
0
273.630.483
0
902,837,537 6,925
46,860,294
9,845,980
135,253,964
372.018.582 21,762,117
805.116, 745 190,845,024
0
0
6,280,271
0
0
17,824,925 32,274,815
334,335,922 146,889,878 886,343,705 734,449,390 172,906,919
70,722,165 232,092,249
0
0
0
0
1,571,701
0
12, 108,Q69 166,000,000
110,000 l ,425.015.580 5.190,624,353
0
1,220,95I,175
0
423.068,591
0
0
135.253.964
1,651,871,738
393,780.699
1.269.592.252
5, 190,624,353
s 0
135.253,964 $ 1,651,871,738
393,780,699
1.269,592.252
0
0
1.51 J.333,158 s======0 $
135,253,964 $ J,747,686,684 $
s 625.414,127
1.641.225,880
0
0
0
0
0
0
0
0
0
0
0
0
c
c
c
The notes to the financial statements are an integral part of this statement
c
A-10
Fiduciary Fund Type
Trust and Agency
College and University
Account Groups
General
General
Fixed Assets
Long-Term Debt
Totals (Memorandum
Only)
Primary Govemmcnt
Discretely Presented Component Units
Govcrnmc:ntal Fund Types
Proprietary Fund Types
Fiduciary Fund Types
Totals (Memorandum
Only)
Reporting Entity
- s $ 3.531.963,532
- s 3.531.963.532 $
85,094.607 $
278,438 $
- $ 3.617.336.577
s 5,565,454,328
577,935,915
12.639,145,602 4.115,898,3 77
1,808,984,721
48.972.787 18.613.001.487
$ 18.613.001.487
6.143.390.243 6.143.390.243
3.531.963.532
5,565,454,328 577,935,915 273,630,483
1,177,135,327 212.607,141
902,837,537 6,287.196
46,860,294 135,253,964
9,845,980 12,639.145,602
17,824,925 32,274,815 4,115,898,377 334,335,922 146.889,878 886,343, 705 734,449,390 172,906,919 70,722,165 2,042,648,671
12,108,069 166,000,000 1,220,951,175
I 10,000 I ,897 ,056.958 33.397.514.736
0
36.929,478.268
1.812.343
397,479 428,019 13,978,242 10,775.303 27.391.386 112.485.993
1,035,092,339 81,499,323
746,007 ,503
41,289.825.985
13,212,559
6.297.993 1.882.109.717 $ 41.289.825.985
1.882.388.1 SS
41.289.825.985
5,565,454,328 577,935,915
i.JOS,722.822
1.258,634,650 958,614.644
904.649.880 6.287,196
46.860.294 135.253,964
9,845,980 53.928.971.587
17.824.925
s 32,274.81
4, J l 5,898.377 334.335.922 146,889.878 886.343,705 734,449.390 172.906.919 70.722.165
2.056,258. 709
12.108.069 166.000.000 1.221,379.194
14,088,242 1.914.130.254 76.596.841.824
80.214.178.40 I
s s s s 19,006,283.253
6.684.763,786
3,53 I ,963,532 $ 5.565.331,816 46,449,256,200 $
s s s 120.689,738
3,845,238.282
41.293.715.215
91.708.899,435
A-11
0
Gorg1a
0 0
Combined Statement of Revenues, Expenditures
0
And Changes in Fund Balances
0
ALL Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units
0
For the Fiscal Year Ended June 30, 2001
0
0
Primary Government
0
General
Governmental Fund Types
0
Special
Debt
0
Revenue
Service
0
Revenues: Taxes Licenses and Permits
0
$ 13,695,968,855 $
$
0
440,808,678
0
Intergovernmental
0
Federal Other
6,863,055,935 416,243,196
0
Sales and Services
565,762,607
0
Fines and Forfeits
214,379,855
0
Interest and Other Investment Income
376,101,864
0
Rents and Royalties
17,300,885
Contributions and Donations
206,596,674
0
Penalties and Interest on Taxes
9,684,355
0
Unclaimed Property
41,157,538
0
Other
24,463,001
0
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
$ 22,871,523,443 $
$
788,374,895 $
7,752,818,250
8,300,962,838
1,626,360, 119
1,587,054,229
455,033,691
205,578,201
84,148,200
0 $
0
0
0
0
$
0
0
0
0
0
0
0
0
395,515,000
0
306,898,165
0
696,474
( 14, 773,287)
0
0
Total Expenditures
$ 20,800,330,423 $
0
0 $
688,336,352
0
Excess (Deficiency) of Revenues Over (Under) Expenditures
$ 2,071,193,020 . $
The notes to the financial statements are an integral part of this statement.
A-12
0
0 $ (688,336,352)
c
c
c
Capital Projects
Fiduciary Fund Type Expendable
Trust
Totals (Memorandum
Only) Primary Government
Component Units Governmental Fund Type
Totals (Memorandum
Only) Reporting
Entity
$
$
183,886,712 $ 13,879,855,567 $
440,808,678
125,914,075 55,087
1,945,329
22,553,143 201,784
127,429,673
2,235,493
6,885,609,078 416,243,196 565,964,391 214,379,855 629,445,612 17,355,972 . 206,596,674 9,684,355 41,157,538 28,643,823
$
127,914,491 $
336,306,805 $ 23,335,744,739 $
$ 13,879,855,567 440,808,678
142,114 1,795,304
1,005,379 82,254
11,302,057
6,885,609,078 416,385,310 567,759,695 214,379,855 630,450,991 17,438,226 217,898,731 9,684,355 41,157,538 28,643,823
14,327,108 $ 23,350,071,847
$
84,024 $
$ 788,458,919 $
8,741
7,752,826,991
72,305,057
8,3 73,267 ,895
1,626,360,119
1,587 ,054,229
434,902,392
889,936,083
205,578,201
84,148,200
522,931,260
522,931,260
55,087 150,233
15,692,313
395,570,087 307,048,398
696,474 (14,773,287) 15,692,313
$
538,912,917 $
507,216, 190 $ 22,534,795,882 $
$ 4,254,113 33,820,547
788,458,919 7,752,826,991 8,373,267,895 1,630,614,232 1,587,054,229
889,936,083 239,398,748
84,148,200 522,931,260
395,570,087 307,048,398
696,474 (14,773,287) 15,692,313
38,074,660 $ 22,572,870,542
$ (410,998,426) $ (170,909,385) $ 800,948,857 $
A-13
(23,747,552) $
777,201,305 (continued)
0
0
0
Combined Statement of Revenues, Expenditures
0
And Changes in Fund Balances
0
ALL Governmental Fund Types, Expendable Trust Funds and Discretely Presented Component Units (continued)
0
For the Fiscal Year Ended June 30, 2001
0
0
Primary Government 0
General
0
Governmental Fund Types
Special
Debt
0
Revenue
Service
0
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
$
169,427,495 $
708,355,202 (3,024,002,981)
(152,547,062) 590,075 56,026
0
$
705,576,331
0
0
0
0
0
0
0
Total Other Financing Sources (Uses)
$ (2,298,121,245) $
0 $
705,576,331
0
-----'--'---
0
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses
$ (226,928,225) $
0
0 $
17,239,979
0
0
Fund Balances, July 1 Adjustments (Net) Transfer of Equity Transfer of Equity to Agency Funds Increase in Inventories
3,863,915,552 1,576,086,728
(25,251,069) (1,150,121) 3,951,488
4,818,304 (4,818,304)
118,013,985
0
0
0
0
0
Fund Balances, June 30
$ 5, 190,624,353 $
0 $
135,253,964
0
======
0
0
0
0
0
0
0
0
0
0
c
c
The notes to the financial statements are an integral part of this statement.
c
c
A-14
- - - - - - -------- - - ------------
- -- ----
Capital Projects
Fiduciary Fund Type
Expendable Trust
Totals (Memorandum
Only) Primary Government
Component Units Governmental Fund Type
Totals (Memorandum
Only)
Reporting Entity
$
468,000,000 $
(228,462, 109)
567,363,080
$
806,900,971 $
3,281,250 $
1,346,285,076 $ 0
708,355,202 (3,252,465,090)
(152,547,062) 590,075 56,026
567,363,080
3,281,250 $ (782,362,693) $
$ 35,062,525 -
1,346,285,076 35,062,525
708,355,202 (3,252,465,090)
(152,54 7 ,062) 590,075 56,026
567,363,080
35,062,525 $ (747,300,168)
$
395,902,545 $ (167,628,135) $
18,586,164 $
1,255,969,193
2,025,533,562
7,268,250,596 1,576,086,728
(30,069,373) (1,150,121) 3,951,488
11,314,973 $
29,901,137
16,076,413
7 ,284,327 ,009 1,576,086,728
(30,069,373) (1,150,121) 3,951,488
$ 1,651,871,738 $ 1,857,905,427 $ 8,835,655,482 $
27,391,386 $ 8,863,046,868
A-15
0
0
0
Statement of Funds Available and Expenditures Compared to Budget
0
Budget Fund
0
For the Piscal Year Ended June 30, 2001
0
Funds Available
Original Appropriation
Final Budget
Actual
Variance
0
Positive
0
(Negative)
0
0
Revenues: State Appropriation Lottery Proceeds Tobacco Settlement Funds Federal Revenues Other Revenues Retained
Total Revenues
0
$ 13,770,328,880 $ 14,857,110,790 $ 14,856,469,948 $
548,250,000
723,743,295
723,743,295
150,000,000
205,626,311
205,626,311
(640,842) 0
0
0
0
5,432,401,298 3,843,252,402
7,424,152,670 5,306,384, 186
6,547,819,203 5,098, 183,428
(876,333,467) (208,200, 758)
0
0
s s $ 23,744,232,580 $ 28,517,017,252
27,431,842,185
(1,085, 175,067)
0
Carry-Over from Prior Year: Transfer from Fund Balance
0
2,213,428,059
1,200,365,216
(1,013,062,843)
0
Total Funds Available
s $ 23,744,232,580 $ 30,730,445,311
28,632,207,401 $ (2,098,237,910)
0
0
0
Expenditures
0
Administrative Services, Department of Agricultural Exposition Authority Agriculture, Department of Agrirarna Development Authority Audits and Accounts, Department of Banking and Finance, Department of Building Authority Community Affairs, Department of Community Health, Department of Corrections, Department of Defense, Department of Education, Department of
$
186,593,380 $
301,198,596 $
257,730,198 $
.43,468,398
0
6,215,409
6,985,892
6,990,243
(4,351)
53,819,997
59,214,791
58,626,086
588,705
0
1,716;718 27,645,099 11,171,827
1,732,898 28,039,352 10,871,827
1,635,339 27,489,914 10,670,406
97,559
0
549,438
201,421
0
37,051,312 169,581,368. 5,307,581,492
47,964,784 297,784,728 6,749,786,265
42,484,562 279,183,747 6,324,683, 746
5,480,222 18,600,981
0
425,102,519
0
916,078,271 25,475,381
986,223,902 44,008,525
917,560,882 43,011,393
68,663,020 997,132
0
6,195,217,919
6, 748,442,506
6,652,093,291
96,349,215
0
Employees' Retirement System Administrative Expense Fund
Financing and Investtnent Commission, Georgia State Forestry Commission General Assembly General Obligation Debt Sinking Fund Governor, Office of the Guaranteed Revenue Debt Common Reserve Fund Human Resources, Departtnent of Industry, Trade and Tourism, Departtnent of Insurance, Department of Investigation, Georgia Bureau of Judicial Branch Juvenile Justice, Departtnent of Labor, Departtnent of Law, Departtnent of Natural Resources, Departtnent of Pardons and Paroles, State Board of
10,344,178 0
42,793,746 33,849,106 526,706,729 55,499,705
0 2,508,061,664
92,559,632 17,229,017 61,790,274 122,944,039 278,216,742 163,885,129 36,591,536 177,267,329 49,808,029
12,213,959 468,000,000
47,119,140 36,899,220 629 ,869 ,819 154,898,610
0 3,044,259,169
111,366,858 18,020,547
137,401,580 132,862,602 316,724,616 235,576,690 43,888,630 276,462,357
51,181,926
11,416,522 0
46,718,129 28,553,320 629,869,819 89,010,652
0 2,902,784,212
109,581,0iO 16,703,530
134,265,703 133,398,703 289,638,421 223, 176,658 43,585,767 266,807,230
50,839,386
797,437
0
468,000,000
0
401,011 8,345,900
0
0
0
65,887,958
0
0
141,474,957
0
1,785,848
1,317,017
0
3,135,877
0
(536,101)
27,086,195
0
12,400,032
0
302,863
9,655,127
0
342,540
0
0
0
The notes to the financial statements are an integral part of this statement. . A-16
0
:";-: . . .
/:
Statement of Funds Available and Expenditures Compared to Budget Budget Fund For the Fiscal Year Ended June 30, 2001
Original Appropriation
Final Budget
Actual
Variance Positive (Negative)
Personnel Boatd, State - Merit System of
Personnel Administration
$
Public Safety, Department of
Public School Employees' Retirement System-Expense Fund
Public Service Commission
Public Telecommunications Commission
Regents of the University System of Georgia, Board of
Revenue, Department of
School Readiness, Office 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
12,925,663 $ 134,318,435
17,642,000 12,071,488 34,433,944 3,602,611,086 273,319,282 368, 188,939 35,004,392 3,071,492 260,924,603 13,077,335 339,842,111 1,4 78,944,897 29,952,240 12,209,645
15,911,852 $ 155,138,450 17,642,000
13,871,394 40,386,648 4,144,555,296 351,075, 125 364,582,844 38,033,880
3,169,004 305,407,715
16,556,715 451,867,684 3,769,238,584
31,664,686 12,343,645
s 13,925,510
148,596,642 17,642,000 13,365,337 34,253,356
3,869 '700,899 315,581,365 297,718,676 33,959,526 3,156,398 302,978,667 14,912,722 419,640,971
1,723,444,315 31,399,980 12,34J,165
1,986,342 6,541,808
0 506,057 6,133,292 274,854,397 35,493,760 66,864,168 4,074,354
12,606 2,429,048 J ,643,993 32,226,713 2,045, 794,269
264,706 2,480
Total Expenditures
$ 23,744,232,580 $ 30,730,445,311 $ 26,851,126,398 $ 3,879,318,913
Excess of Funds Available over Expenditures
$ l,781,081,003 $ 1,781,081,003
The notes to the financial statements are an integral part of this statement. A-17
0
Georgia
0
0
Combined Statement of Revenues, Expenses and
0
Changes in Fund Equity/ Fund Balances
0
All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units
0
For the Fiscal Year Ended June 30, 2001
0
0
Primary Government
0
Proprietary Fund Types
Fiduciary Fund Type
0
Internal
Nonexpendable
0
Enterprise
Service
Trust
0
Operating Revenues: Contributions Interest and Other Investment Income Intergovernmental Rents and Royalties Sales and Services Taxes Other
$ 1,464,228,424 $ 23,895,012
23,619,905
114,225,784 $ (14,040,871)
31,303,241 271,174,724
296,882
0
250
0
3,924
0
0
0
0
0
Total Operating Revenues
Operating Expenses: General and Administrative Goods and Services Interest Benefits Claims and Judgments Prizes Scholarships Depreciation Other
$ 1,511,743,341 $ 402,959,760 $
$ 408,840,219 $ 166,234,637 $ 164,965,273
902,398,771
18,017,000 40,708,467
565,690
1,727,967
4,174
0
0
0
0
0
0
0
740
0
0
869
0
Total Operating Expenses
$ 1,311,804,680 $ 391,653,344 $
1,609
0
Operating Income
$ 199,938,661 $
11,306,416 $
2,565
0
0
Nonoperating Revenues (Expenses): Contributions and Intergovernmental Revenue Interest and Other Investment Income Hotel/Motel Tax (Net) Interest Expense Other Debt Service Charges Other
Total Nonoperating Revenues (Expenses)
$
$
$
1,356,533
1,715,614
(57,657)
(14,980)
(63,521)
(53,581,478)
$
1,235,355 $ (51,880,844) $
0 0 0 0 0 0 0 0
Net Income (Loss) Before Capital Contributions and
Operating Transfers
$ 201,174,016 $ (40,574,428) $
0
2,565
0
0
0
The notes to the financial statements are an integral part of this statement.
0
A-18
0
Totals (Memorandwn
Only) Primary Government
Component Units Proprietary Fund Types
Totals (Memorandwn
Only) Reporting
Entity
$ 1,578,454,458 $ "9,858,065 0 31,303,241
294, 794,629 0
296,882
$ 1,914,707,275 $
50,680 $ 86,141,687
3,692,066 58,912,274 2,284,657, 707
1,613,503 4,119,197
1,578,505,138 95,999,752 3,692,066 90,215,515
2,579,452,336 1,613,503 4,416,079
2,439,187,114 $ 4,353,894,389
$ 575,074,856 $ 164,965,273 0 920,415,771 40,708,467 0 740 2,293,657 869
$ 1,703,459,633 $
$ 211,247,642 $
154, 116,083 $ 350,594,165 47,820,884
1,141,483,000
36,889,063 40,638,031
729, 190,939 515,559,438
47,820,884 920,415,771
40,708,467 1, 141,483,000
740 39,182,720 40,638,900
1,771,541,226 $ 3,475,000,859
667,645,888 $
878,893,530
$
0 $
3,072,147
0
(72,637)
0
(53,644,999)
$ (50,645,489) $
980,241 $ 61,373,024 22,659,025 (33, 770,481)
(14,877) (7,656,014)
43,570,918 $
980,241 64,445,171 22,659,025 (33;843,118)
. (14,877) (61,301,013)
(7 ,074,571)
$ 160,602,153 $
711,216,806 $
871,818,959 (continued)
A-19
0
0
0
Combined Statement of Revenues, Expenses and
0
Changes in Fund Equity/ Fund Balances
0
ALL Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units (continued)
0
For the Fiscal Year Ended June 30, 2001
0
0
Primary Government
0
Proprietary Fund Types Internal
Fiduciary Fund Type
0
Nonexpendable
0
Enterprise
Service
Trust
0
Capital Contributions
$
$
52,601 $
0
0
Operating Transfers:
0
Transfers In
$
41,783,527 $
46,506,923 $
0
Transfers from Primary Government Transfers Out
(25,300,671)
0
Transfers to Primary Government
0
Net Operating Transfers
$
41,783,527 $
21,206,252 $
0
0
0
Net Income (Loss)
Excess of Revenues Over Expenditures from Governmental Operations and Expendable Trust Funds
Fund Equity/Fund Balances, July 1 Adjustments (Net) Transfer of Equity Decrease in Inventories
$ 242,957,543 $ (19,315,575) $
124,042,547 $ 924,323
25,856,286
1,242,021,659 $ 47,714,650
(828,482)
2,565
0
0
0
0
0
49,516
0
0
0
0
Fund Equity/Fund Balances, June 30
$ 393,780,699 $ 1,269,592,252 $ =====52=,0=81=
0 0
0
0
0
0
0
0
0
0
0
0
0
0
The notes to the financial statements are an integral part of this statement.
0
A-20
0
---- -
--
Totals (Memorandum
Only)
Primary Government
Component Units Proprietary Fund Types
Totals (Memorandum
Only)
Reporting Entity
$
52,601 $
85,569,429 $
85,622,030
$
88,290,450 $
0
(25,300,671)
0
$
62,989,779 $
$ 223,644,533 $
$ 140,926,965 (707 ,980,508) (567,053,543) $
229,732,692 $
88,290,450 140,926,965 (25,300,671) (707 ,980,508)
(504,063,764)
453,377,225
0
1,366,113,722 48,638,973 25,856,286 (828,482)
(14,776,085)
1, 753,659,936 (86,478,800)
(28,026)
(14,776,085)
3,119,773,658 (37,839,827) 25,856,286 (856,508)
$ 1,663,425,032 $ 1,882,109,717 $ 3,545,534,749
A-21
0
G:orgia.
0 0
Combined Statement of Cash Flows
0
ALL Proprietary Fund Types, Nonexpendable Trust Funds and
0
Discretely Presented Component Units For the Fiscal Year Ended June 30, 2001
0
0
Primary Government
Fiduciary
Totals(Memorandum
Totals -
0
(Memorandum
Proprietary Fund Types
Fund Type
Only)
Component Units
Only)
0
Internal
Nonexpendable
Primary
Proprietary
Reporting
Enterprise
Service
Trust
Government
Fund Types
Entity
0
Cash Flows from Operating Activities: Cash Received from Customers Cash Received from Required Contributions 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 Grants and Scholarships Cash Paid for Lottery Prizes Origination of Program Loans Governmental and Fiduciary Fund Type Activity (Net) Other Operating Items (Net)
Net Cash Provided by (Used in) Operating Activities
$
17,855,565
328,083,195
345,938,760 $ 2,384,533,955
2,730,472,715
0
1,478,048,690
117,556,911
1,595,605,601 0
14,131,841
1,595,605,60 I 14,131,841
0
0
116,532.578
116,532.578
0
84,000,567
84.000,567
0
(393,309,034) (9,659,458)
(243,366,707) (92,068,614)
(869)
(636,676.610) (101,728,072)
(445.624,169) (108.372.177)
(l.082,300,779) (210,100,249)
0
(925,796,197)
(14,880,000) (78,647 ,796)
(940,676, 197) (78,647.796)
(940,676.197) (78.647.796)
0
(740)
(740) 0
(35.182.702) (1.167.105.000)
(35,183.442) (I, 167,I 05,000)
0
0
(200.867,146)
(200,867,146)
0
(18,960,942)
(I 8,960,942)
0
375
250
625
(3.875.510)
(3.874.885)
0
167.139.566
s 16,677,364
s s s (1,359)
183.815.571
619.211.295
803.026.866
0
Cash Flows from Noncapital Financing Activities: Operating Transfers In Operating Transfers from Primary Government Issuance of Bonds/Loans/Notes Capital Contributions Hotel/Motel Tax (Net) Operating Transfers Out Operating Transfers to Primary Government Repayment ofAdvances Principal Paid on Bonds/Loans/Notes Interest Paid on Bonds/Loans/Notes Transfer ofEquity Other Debt Service Payments Other Noncapital Items (Net)
Net Cash Provided by (Used in) Noncapital Financing Activities
Cash Flows from Capital and Related Financing Activities: Hotel/Motel Tax Received Capital Contributions Sale ofCapital Assets Acquisition and Construction ofCapital Assets Principal Paid on Bonds/Loans/Notes Interest Paid on Bonds/Loans/Notes 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 (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents, July 1
41,783,527
47,755,807
(26,549,555)
25,856,286
104.318
67,639,813 $ 21.310,570 $
(1,094,565)
$ 52,601 181,811 (20.591,857) (607,143) (14,980)
$
(1,094,565) $ (20,979,568) $
$ (81,714,032) $ (118,104,811) $
24,779,027
57,180,935
s (56,935,005) $ (60,923,876) $
$ 176,749,809
(43,915,510) $
303.603.831
166,383,681
89,539,334
89,539,334
0
0
140,922.243
140,922.243
0
179,819,885
179.819,885
0
0
57,344,622
57,344,622
0
5,545,170
5,545,170
0
(26,549,555) 0
(707 .980,508)
(26,549,555) (707 ,980.508)
0
0
(3.225,889)
(3.225,889)
0
(172,641.099)
( 172,641,099)
0
0 25,856,286
(49,967,111)
(49,967.111) 25,856,286
0
0 104,318
(3,921,445) (6,490,950)
(3,921,445) (6,386.632)
0
0
0 $
88.950.383 $ (560.595.082) $ (471.644.699)
0
0
16,812.673
16.812,673
0
52,601 181,811
26,397,115 110.466
26,449,716 292.277
0
(21,686,422) (607.143)
(51,345.360) (12.019,011)
(73,031,782) (12.626.154)
0
(14.980) 0
(27.116.652) ( 14.877)
(27,131,632) (14.877)
0
0
( 164,576)
( 164.576)
0
0
s s (22.074.133)
(47.340.222)
(69.414.355)
0
$ (199,818,843) $
s (14,977,361)
(214,796,204)
0
2.861
81.962.823
49,745.725
131. 708.548
0
2,861
s (117 ,856,020)
34.768.364
(83.087,656)
0
s 1,502 $ 132,835,80 I
46,044.355
178,880,156
0
14.610
470,002.122
499,095.650
969.097.772
0
Cash and Cash Equivalents, June 30
$ 480,353,640 $ 122,468,171 $
s s 16.112 $ 602,837.923
545, 140.005
1.147.977.928
0
0
0
0
The notes to the financial statements are an integral part of this statement.
0
A-22
0
~
Combined Statement of Cash Flows All Proprietary Fund Types, Nonexpendable Trust Funds and Discretely Presented Component Units For the Fiscal Year Ended June 30, 200 I
Operating Income
Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities:
Depreciation/Amortization Interest Other Changes in Assets and Liabilities: Decrease in Intergovernmental Receivables
Increase in Interest and Dividends Receivable Increase in Notes and Loans Receivable Decrease (Increase) in Other Receivables Decrease in Due from Other Funds Increase in Due from Primary Government Decrease in Due from Component Units Decrease (Increase) in Inventories Decrease (Increase) in Prepaid Items Decrease in Deferred Charges Increase in Other Assets Increase (Decrease) in Accounts Payable and Other Accruals Increase (Decrease) in Compensated Absences Payable Decrease in Claims and Judgments Payable Increase (Decrease) in Contracts Payable Increase (Decrease) in Salaries/Withholdings Payable Decrease in Benefits Payable Increase in Due to Other Funds Decrease in Due to Primary Government Increase in Deferred Revenue Increase in Other Liabilities Decrease in Deposits and Overpayments Decrease in Grand Prizes Payable
Total Adjustments
Primary Government
Fiduciary
Proprietary Fund Types
Fund Type
Enterprise
Internal Service
. Nonexpendable Trust
Totals(Memorandum
Only) Primary Government
Component Units Proprietary Fund Types
s 199,938,661 s
- - - - - - 11.306,416 $
2,565 $ 211.247,642
667 ,645.888
Totals(Memorandum
Only) Reporting
Entity
878,893,530
$
565,690 $
(23,895,012)
(92,763)
1,727,967 14,040,871
-$ (3,924)
2,293,657 $ (9,858,065)
(92,763)
40,124,584 $ 47,820,884 (33.283,047)
42,418,241 37,962,819 (33,375,810)
(589,023) (4,669,187)
5,819,018 22,789,620
207,610 618,747 156,885
5,757,206 640,469
(84,760) (23,397,426)
35,396
8,644,949 4,285,366
(5.129,807) (141,294)
(37,939,329) (16,789) 102,298
3,393,110
2,643
(260,602)
0 0 0 5,229,995 . 22,789,620 0 207,610 618,747 (4,512,302) 0 0 627,399 499,175 (37,939,329) (16,789) 17,538 (23,397,426) 3,428,506 0 8,647,592 4,285,366 (260,602) 0
$ (32,799,095) $
s_ _ _ 5,370,948
<~3_.9_24~> s
(27 ,432,071) $
1,288,698 (2.560,570) (85,090, I43) ( 13.081.817)
(7,008)
(357,994) (738,262) 268,214 (I ,380.546) 21.693,459 170,916
785,082 (910,160)
(454,895) 1,971,692
240,000 (4,151,680) (20.782.000)
(48.434.593) s
1,288,698 (2,560,570) (85,090,143) (7,851,822) 22,789,620
(7,008) 207,610 260,753 (5.250,564) 268,214 (l,380,546) 22,320,858 670,091 (37,939,329) 768,293 (892.622) (23.397,426) 3,428.506 (454,895) 10,619,284 4,525,366 (4,412,282) (20.782.000)
(75,866.664)
Net Cash Provided by (Used in) Operating Activities
Noncash Investing. Capita~ and Financing Activiti.es: Acquisition ofFixed Assets through Installment Purchase Disposal ofFixed Assets Donation/Transfer ofFixed Assets Interest Earned on Grand Prlze Investments and Grand Prizes Payable Interest Expense Related to Grand Prizes Payable Net Increase (Decrease) in Fair Value of Investments
$ 167,139,566 $
16,677,364 $=====(=1.=35=9=) $ 183,815,571 $ 619.211.295 s ==8=0=3=.0=2=6,=8=66=
$
11,146,776 $
-s
(63,521)
(54,281,968)
3,462,006
12,248
472,518
(69,506,192)
1,063
11,146,776 s (54,345,489)
3,474,254
0 0 (69,032.611).
-$ (2,413.277) 2,055,323
14,398,000 ( 14.398,000) 11.546,673
11,146,776 (56,758,766)
5,529,577
14,398,000 (14,398,000) (57.485.938)
s
15.011.119 s 023.775,912> s====1=.0=63=S (108.757,070) $
11.188.719 s (97.568.351)
The notes to the financial statements are an integral part of this statement. A-23
0
0
0
Statement of Plan Net Assets
0
Pension Trust Funds, Investment Trust Funds and
0
Discretely Presented Component Units
June 30, 2001
0
0
Defined Conln'bution
Pl>n
District Attorneys Rcriremcnl
Fund
Primaiy Government Pension Trust Funds
Investment Trust Funds
0
Georgia Judicial
Legislative
Superior CounJudgcs
Gc:argja
0
Retirennt
Rctircm:nt
Rctirancnt
Extended Asset
Georgia
Sys<em
System
Fund
Pool
Fund I
0
Ass<U
Cash and Cash Equivalenu Investments Receivables (Net of Allowances for Uneollc:cllblcs)
lntcrcs1 and Dividcods 01her Due From Olher Funds Fixc:d Asseu (Net. Wbcre Applicable. of Accumulated Depreciation)
Total Assets
Ullllllties
CasbOverdlllft Accounu Payable and Otber Acauals Salaries/Williboldings Payable Due ID Other Funds Due to Primary GovcramcDt Capitll Leases Payable
Total liabilities
Fund Balances Rtserved ror Pensioa Benefiu and Pool Participants
222,997 39.181.435
0
3,000
3,868,602
179,163
121.999
56,000
. 273.338
3,479.558.981
12,239.503,592
224.979,334
27.702,092
1.725.000
S.772.321
627 .293. 737
0
131.000
93,825,000
0
892.242
13.578.293 3,167,000
120.784
1.000
0
40.427.674
0
3.000
12.353.942.487
225.279.281
27.824.091
1.782.000
9.045.659
4.106.852.718
0
s
0
16,000
3,000
9,864,155 27,357
103,000
16,000
43.000
0
10,419
30,000
0
16.000
3.000
9.901.931
103,000
0
0
40.411.674 s-====o=s s 12.344.040.556 s 225.176.281
s 27.778.091
s 1.739.000
9.045.659 S 4.106.852.718
0
0
0
0
0
0
0
0
0
0
0
0
0
0 0
0
0
0
0
0
0
0
The notes to the financial statements are an integral part of this statement.
0
A-24
0
Total Primary Govcmmcn1
OassNinc
Fire Dq.anmcn1
Pension Fund
Firefighters' Pension Fund
Jud&cs oflhc Probate Couns
Retirement Fund
Component Units - Fiduciary Fund Types
Peace Officers'
Amwityand Benefit Fund
Public Scbool Employees Rcti.rcm:nt System
Sheriffs' Retirement
Fund
Superior CounClcrks'
Rctircmcn1 Fund
Teachers' Retirement
System
Tow! Component
Units
3,484,284,080 IJ.169,157,511
9J,956,000 14,592.J19 J,167,000
16.765.156.910
16,485 489,9J8 506.423
415,491,645 J,208.06J
J39.171 419.038.879
7.577 44,467,9J2
458,165
606 44.934.280
5.187,764 310,429,241
1,555,076
54J,855 Jl7.715.9J6
127,000 748,852,000
8.000
748.987.000
14.547 52,885,781
383.182
27.771 SJ.JI 1.281
527,304 4J.032.o75
977.659 39.2J0.757.000
6.S58,JJ6 40.545,965.674
21.112 4J.6J0.491
266,JJJ,OOO l 68.013.222
39.666.0SO.SS I
27 J.9J7.486 168.021.222
4S9.9JS
932.515
41,29-1.205.171
10.045.155 27.357 40,419 0 0
18 489.938
17.J49
416,000
I0.112.9JI
0 s
489.956
0
17.349
416.000
0
J,J43,507 109.229 3.145
3.455.881
18 J.759,507
109.229 489.9J3
J.145 17.J49
4.379.186
s 16.755.043.979
s 506.423
s 418.548.92J
s 44.9J4.280
s 317.698.587
s 748.571.000
s 53.311.281
s s 4J.6J0.491
39.662.625.000
41.289.825.985
A-25
0
Georgia.
0
0
Statements of Changes in Plan Net Assets
0
Pension Trust Funds, l.nvestment Trust Funds and
0
Discretely Presented Component Units For the Fiscal Year Ended June 30, 2001
0
0
Additions: Contn'butions Employer and Employee Fines and Forfeits Fines and Bond Forfeitures Interest and Other Investment Income Divid<nds and Interest Net Depreciation in Fair Value of Investments
Less: Investment Expense Net Gain (Loss) on Disposal of Investment Sc.curitic:s Pool Participant Deposits Sates and Scmccs Civil Cases Marriage License Fees Real Estate Recording Fees Taxes lnsW'2.ncc Companies Other Miscellaneous
Total Addjtions
Prima Govenunent Pension Trust Funds
lnvcslmc:ni Trust Funds
0
Defmed
District Attorneys
Employees'
Georgia Judicial
Legislative
Superior Coun Judges
Georgi.a
0
Contnbution
Retirement
Retirement
Rctiremc:nt
Retirement
Rctirmient
Extended Asset
Georgia
Plan
Fund
S~trm
Sys tan
Sl;!tcm
Fund
Pool
Fund I
0
0
11.725,000
141,000
368,400,000
4,616,000
347.383
1.958,000
0
1,739,277 (1,535.591)
(15,644)
417,419,030 (1.202,603,079)
(9,929,631)
7,290,373 (21,006,225)
(163,855)
514.829 . (1,483.332)
(11,576)
58,253 (t67,943)
(l,310)
77,1;4
199,969.124
0
(998.482)
0
10,783,050
5.424,876,866
0
0
0
0
11,913.042
141.000
s s !426.713,680l
!9.263,707l
s !632.696l
1.847,000
10.860.204
5.623.847.508
0
Deductions: General and Administrative Expenses Benefits Pool Panicipant Withdrawals Refunds
Total Deductions
Net lnacasc (Ocacasc) Before Op~tlng Transfers
Operating Transfers: Tr:msfas In Trans fen from Primary Government Transfers to Primary Govcmmcnt
Net Opcnting Transfers
Net lnCTc.lSe (Decrease)
0
310,000
6,973,732
141,000
518,734,000
5,150,000
l,079,000
2,004,000
1,814,545
4,376,277,527
0
7,064.000
7.563.000
54,000
35.000
0
7.374,000
141.000
533.270.732
5.204.000
1.114,000
2.004.000
1.814.545
4,376.277.527
4,539,042
s (959,984.412l S !14,467,707l
!l.746,696) s
(157,000) s
9.04;,5;9
t.247,569.981
0
0
2,992,000
0
4,539,042
2,992,000
0
(956,992,412) s (14,467.707) s (l,746,696) s
(157,000) s
9,045,6;9
1.247,569,981
0
Fund Balances Reserved for Pension Benefits and Pool Participants, July l
Fund Bollanccs Reserved for Pension Benefits and Pool Participants, June 30
35.872.632
40,411,674 s
13,301,032,968
239,643,988
29.524.767
1,896.000
2.8;9.282.737
0
0
s s s 0
12.344,040,556
225.17~.281
27.778.091 s
1.739.000 s
s 9.045,659
4,106.852.718
0
0
0
0
0
0
0
0
0
0
0
0
0
0
The notes to the financial statements are an integral part of this statement.
0
A-26
0
Total Primary Govemmc:nt
Class Nine Fir<
Department Pension Fund
FU.fighters'
Pension Fund
Co~onc:nt Units Fiducia!Z Fund Tll?;cs
Judges oflhe Probate Cowts
Retirement Fund
Peace Officers'
Annuity and Benefit FWld
Public School Employees Retirement System
Sh<ri!Ts' Retirement
Fund
Superior Court Clerks' Retirement
Fund
Teachers' Rc:tircmcru
Syslem
Toi..il Componcn1
Units
387,187,383
627,068,040 (1,226,796,170)
(11.120,498) 0
5,435,659,916
5.211,998.671
7,283,732 527.108,000 4,3 78,092.072
14,716.000 4,927.199,804
284,798,867
2,992,000 0
2.992.000 287,790,867
16.467.253.112
16.755.043,979 s
17,235
l,815,962
33
14,317,653
(8,943,917)
489.938 38
507.244
13,003.155 272.142
20.464.995
179,402 460,993 2.212,434
708,120
l,498,743 13,756,483 11,432,462
(4,713,941)
18,882,000
25,839.053 (74,494,068)
(580,985)
141,132 2,179,022 2,089,203
(l,342,493)
140,546
3.701.495
172.543 22.146.290
(30.354.000) s
3.066,864
150.983 646,677 2,753.658 (15,000)
297,108 l,279,744
5.113.170
I, 174,590,694
1.197,276.151
17,043.175
1..325,955.000 (3,394,901,000)
(31,026,000)
1,384.599,496 (3,469.395,068)
(31.621,985) (14.292.231)
0
297,108 140.546 !.279,744
13.493.093
444,723
(925..381.306) s (900.735.248)
26
795 821 506,423
l,846,389 15,309,689
180,901
17.336.979 3.128.016
506,423
3,128,016
253,621 l,599,884
27.219 1.880.724 l,820.771
l,820,771
l,578,n3 12,850,690
128.143 14.557,606 7,588.684
7,588,684
625,000 33,464,000
282.000 34,371.000 (64.725.000) s
(64,725,000) s
519,068 2,805,063
9.865 3.333.996 (267.132) s
(267,132) s
103,830 2,681,266 2.785.096 2.328.074
2.328,074
10,562,909 1,153.376,000
58.831.000
15.489,616 1.222.086,592
0 59.459,923
1.222.769.909
1.297.036,131
(2.148,151.215) s (2.197.771J7C))
-s
3,270,000 (374,694)
s 2.895,306
3.270,000 (374.694)
2.895,306
(2.145,255.909) s (2.194.876,073)
415.420.907
43.113.509
310.109.903
813.296.000
53.578.413
41.302.417
41,807.880,909
43.484.702.058
s s s s s s s 506.423
418,548,923
44,934,280
317,698.587
748,571,000
53.311,281
43,630,491 s 39,662,625.000
41.289.825.985
A-27
0
~ia
0 0
Combined Statement of Changes in Fund Balances
0
College and University Funds
0
For the Fiscal Year Ended June 30, 2001
0
0
Current Funds
Unrestricted
Restricted
Loan
0
Funds
0
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
$ 1,188,709,503 $
$ 706,469,882 358,528,632
7,707,305 296,585,816
5,633,257 33,626
5,931,796
0
0
(78,772)
0
3,673
0
230,643
0
0
0
940,998
0
1,193,855
0
0
CJ
0
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
1,617,101
0 0 0 0 0
511,201
0
Total Revenues and Other Additions
$ 1, 190,326,604 $ 1,380,890,314 $
2,801,598
0
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
0
$ 2,556,896,097 $ 1,279,667,371 $
0
208,583,484
0
38,136,029
78,556 94,140,737
0
74,433
0
1,170,695
0
105,818
234,956
0
Expended for Plant Facilities Capitalized Non-Capitalized Other Deductions (Net)
287,854
0
0
341,534
0
Disposals/Deletions/Adjustments
0
Total Expenditures and Other Deductions
$ 2,803,615,610 $ 1,374,280,336 $
1,821,618
0
0
0
0
The notes to the financial statements are an integral part of this statement.
0
A-28
0
Endowment and Similar
Funds
Unexpended
Plant Funds Renewals and Replacements
Investment in Plant
Total (Memorandum
Only)
$
$
$
365,234
274,166
3,000,000
1,117,193
11,661,175
$
$ 1,188,709,503
706,756,344
358,802,798
10,710,978
6,033,995
315,628,822
(701,223)
23,670,732
1,645,896
4,932,034 26,291,252
5,931,796 1,193,855
174,433,317
174,433,317
97,716,009 10,303,885 152,369,329
97,716,009 10,303,885 152,369,329
560,212 1,771,044
188,064
3,513,931
560,212 7,090,140
511,201
$
415,970 $
41,302,563 $
1,833,960 $ 444,370,466 $ 3,061,941,475
$
$
$
$
$ 3,836,563,468
208,583,484
38,214,585
94,140,737
74,433
1,170,695
7,669
348,443
97,716,009 19,533,526
10,303,885 4,364,812
231,190,542
108,019,894 23,898,338
629,388 231,190,542
$
0 $ 117,257,204 $
14,668,697 $ 231, 190,542 $ 4,542,834,007
(continued)
A-29
0
0
0
Combined Statement of Changes in Fund Balances
0
College and University Funds (continued) For the Fiscal Year Ended June 30, 2001
0
0
0
Current Funds
Loan
0
Unrestricted
Restricted
Funds
0
Transfers Between Funds, Net In (Out) Mandatory Nonmandatory
$
(1,381,432) $
(25,010,047)
(902,180) $ (5,612,370)
0
90,708
0
(18,248)
0
Total Transfers Between Funds
$ (26,391,479) $
(6,514,550) $
72,460
0
0
Operating Transfers: Transfers In Transfers Out Transfers to Component Units
0
$ 1,760,677,362 $
$
(2,621,688)
0
(26, 712,428)
0
Total Operating Transfers
0
$ 1,731,343,246 $
0 $
0
0
Net Increase (Decrease) in Fund Balances
Fund Balances, July 1 Adjustments (Net) Transfer of Equity
$
91,662,761 $
95,428 $
1,052,440
0
CJ
176,670,468 (105,461,875)
4,213,087
98,517,408
62,489,246
0
0
0
Fund Balances, June 30
0
$ 167,084,441 $
98,612,836 $
63,541,686
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
The notes to the financial statements are an integral part of this statement.
0
A-30
0
Endowment and Similar
Funds
Unexpended
Plant Funds Renewals and Replacements
Investment in Plant
Total (Memorandum
Only)
$
2,192,904 $
$
$
(511,325)
15,624,418
15,527,572
$
0
0
$
1,681,579 $
15,624,418 $
15,527,572 $
0 $
0
$
$
$
0 $
$
2,097,549 $
129,346,025
81,115,954 $ (116,066)
80,999,888 $ 20,669,665 $ 53,098,863
1,142,673 $
$ 1,842,935,989 (2,737,754)
(26, 712,428)
1,142,673 $
0 $ 1,813,485,807
3,835,508 $ 213,179,924 $ 332,593,275
39,649,342
5,352,274,404
5,912,045, 756 (105,461,875)
4,213,087
$ 131,443,574 $
73,768,528 $
43,484,850 $ 5,565,454,328 $ 6, 143,390,243
A-31
-- -
----
Georgia.
Combined Statement of Current Funds Revenues, Expenditures and Other Changes College and University Funds For the Fiscal Year Ended June 30, 2001
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
-
-
- --
----
0
0
0
0
0
0
0
Total
0
Current Funds
Unrestricted
Restricted
(Memorandum Only)
0
0
$ 639,775,680 $
$ 639,775,680
0
84,871,881
637,163,058
722,034,939
0
8,371,599
355,943,992
364,315,591
724,798
7,487,658
8,212,456
0
15,549,503
268,044,912
283,594,415
0
122,856
4,258,576
4,381,432
61,883,797
6,235,375
68,119,172
0
212,205,767 1,912,925
163,290,697
212,205, 767
0
l,912,925
163,290,697
0
$ 1,188,709,503 $ 1,279,133,571 $ 2,467,843,074
0
0
0
$ 944,227,368 $ 170,117,550 $ 1,114,344,918
289,001,261
289,972,237
578,973,498
0
163,781,531
85,744,248
249,525,779
0
274,652,096 136,048,018 397,951,525
9,282,318 4,358,521
283,934,414 140,406,539
0
36,399,939
434,351,464
0
231,903,390 119,330,908
146,443 572,214,378
232,049,833 691,545,286
0
0
63,875,286 168,755
63,875,286
168,755
0
42,528,289 16,673,564 37,195,438
42,528,289
0
16,673,564
37,195,438
0
48,142,152
48, 142,152
0
38,136,029
38, 136,029
0
103,611, 715 7,898,578
103,611,715 7,898,578
0
1,381,432
902,180
2,283,612
0
$ 2,804,997,042 $ 1,280,648, l 07 $ 4,085,645, 149
0
0
$
-. $
7,616,006 s
7,616,006
0
(25,010,04 7) 1,617,101
(5,612,370) (393,672)
(30,622,417) 1,223,429
0
1,760,677,362 (2,621,688)
0
1,760,677,362
(2.621,688)
0
(26,712,428)
(26, 712,428)
0
$ 1,707,950,300 $
1,609,964 $ 1,709,560,264
0
$
91,662,761 $
0
95,428 s
91,758,189
0
0
0
i' 'l
:.'
Notes to the financial Statements
Index
Page
Note 1 Summary of Significant Accounting Policies .................................................................:................. A-35
Note 2 Note 3
Other Accounting Disclosures .......................................................................................................... A-47 Budgetary Accounting .............................................................. ~....................................................... A-49
Note 4 Deposits and Investments ................................................................................................................. A-52
Note 5 Receivables ....................................................................................................................................... A-60
Note 6 Fixed Assets ..................................................................................................................................... A-62
Note 7 Risk Management ............................................................................................................................. A-64
Note 8 Construction and Other Significant Commitments ........................................................................... A-65
Note 9 Operating Leases .............................................................................................................................. A-65
Note 10 Capital Leases and Installment Purchases......................................................................................... A-67
Note 11 Long-Term Debt ............................:.................................................................................................. A-68
Note 12 Interfund Balances ............................................................................................................................ A-72
Note 13 Contributed Capital .......................................................................................................................... A-74
Note 14 Contingencies ................................................................................................................................... A-74
Note 15 Subsequent Events ............................................................................................................................ A-75
Note.16 Retirement Systems .......................................................................................................................... A-76
Note 17 Nonmonetary Transactions ............................................................................................................... A-81
Note 18 Postemployment Benefits ................................................:................................................................ A-82
Note 19 Fund Deficits .................................................................................................................................... A-82
Note 20 Major Discretely Presented Component Unit Condensed Financial Statements............................... A-82
A-33
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c
Notes to the Financial Statements
June 30, 2001
Note 1. Summary of Significant Accounting Policies
government. In addition, organizations that 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 ofthe 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 that comprise 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, cormmss1ons, 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.
As required by GAAP, these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the government's operations and therefore data from these units are combined with that ofthe primary government. The blended component units are as follows:
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.
The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in Section 2100 ofthe GASB Codification of Governmental 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.
Financial accountability is the ability to appoint a voting majority ofan 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 fmancial 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, administrative and recreational facilities for students, faculty, officers and employees of any institution under control ofthe Board of Regents. The Board consists of five State officials designated by statute and one member appointed by.the Governor.
Georgia Technology Authority (Enterprise Fund) is an instrumentality of the State of Georgia and a public corporation. The authority is responsible for the procurement of technology resources, technology enterprise management and technology portfolio management, as well as the centralized marketing, provision, sale and leasing, or
A-35
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 1. Summary of Significant Accounting Policies (continued)
execution of license agreements, for access on line or in volume, of certain public information maintained in electronic format to the public. State officials appoint the eleven members of the authority. Any funds in excess of those needed for the corporate purposes ofthe authority are required to be transferred to the General Fund.
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 ofGeorgia (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 who 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 of the 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
0
Fund Type) is a body corporate and politic. The authority is
0
responsible for the construction of buildings and facilities intended for use as school buildings, classrooms,
0
laboratories, libraries and instructional, administrative and
0
recreational facilities for students, faculty, officers and
0
employees of any institution under control of a county or
city board of education or governing body of any
0
independent district or system. The Board consists of six
0
State officials designated by statute and one member appointed by the Governor.
0
0
Georgia Public Telecommunications Commission
0
(Governmental Fund Type) is a body corporate and politic.
This commission is a public charitable organization created
0
for the purpose of providing educational, instructional and
0
public broadcasting services to citizens of Georgia. The budget of the commission must be approved by the State.
0
The Board consists of three State officials designated by
0
statute and six members appointed by the Governor.
0
Georgia Regional Transportation Authority (Governmental
0
Fund Type) is a body corporate and politic. The purpose of
0
the authority is to manage land transportation and air quality within certain areas ofthe State. The Governor appoints the
0
fifteen members of the authority.
0
0
Georgia Agricultural Exposition Authority (Proprietary
Fund Type) is a body corporate and politic. This authority is
0
responsible for provision of a facility for the agricultural
0
community, for public events, exhibits and other activities and for promotion and staging of a statewide fair. The
0
Governor appoints the nine Board members.
0
0
Georgia Agrirama Development Authority (Proprietary
Fund Type) is a body corporate and politic. The purpose of
0
this authority is to utilize all funds for the purpose of
0
beautifying, improving, developing, rnaintammg, administering, managing and promoting an agricultural
0
museum in or around Tifton, Georgia; this museum is
0
designated as the State Museum of Agriculture. Of the fourteen members of the Board, four are State officials
0
designated by statute and the Governor appoints seven
0
members.
0
Georgia Development Authority (Proprietary Fund Type) is
0
a body corporate and politic. The authority was created to
0
assist agricultural and industrial interests by providing credit and servicing functions to better enable farmers and
0
businessmen to obtain needed capital funds. The Board
0
consists of three State officials designated by statute and
0
four members appointed by the Governor.
0
0
A-36
0
"'\-:.,
..~~...... . I, ' ~. . .
:~:--
Notes to the Financial Statements
June 30, 2001
NoteJ. Summary of Significant Accounting Policies (continued)
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.
Georgia Golf Hall of Fame Authority (Proprietary Fund Type) is a body corporate and politic. The authority was created to construct, operate and manage a facility and .related attractions to house the Georgia Golf Hall of Fame. The authority is governed by the fifteen members appointed by State officials to the Golf Hall of Fame Board.
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 guaran.teeing educational loan credit to students and to parents of students. The corporation is governed by the Board ofCommissioners ofthe Georgia Student Finance Commission. The Board consists of four 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 three members of the Authority are 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 Governor appoints the sixteen members of the Board.
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 ofthe State's import and export markets through its ports and other transportation modes. State officials appoint eight of the twelve members of the Board.
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 ofdirectors composed ofseven members, all ofwhich are appointed by the Governor. The State is legally entitled to residual resources of the corporation.
Georgia Music Hall ofFame Authority (Proprietary Fund Type) is a body corporate and politic whose purpose is to construct, operate and maintain the Music Hall of Fame, as well as promoting music events at the facility and throughout the State. The Governor appoints the sixteen members of the Board.
Georgia Ports Authority (Proprietary Fund Type) is a body corporate and politic. The purpose of the authority is to develop and improve the harbors or seaports of the State for the handling of waterborne commerce and to acquire, construct, equip, maintain, develop and improve said harbors, seaports and their facilities. The Board consists of twelve 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 (Governmental Fund Type) is a body corporate and politic. This authority was created for the purpose of improving higher educational opportunities by providing educational scholarship, grant and loan assistance. A substantial amount of funding is provided to the authority by the State. State officials comprise four of the fifteen members of the Board, and the Governor appoints the remaining eleven.
Geo. L. Smith II Georgia World Congress Center Authority (Proprietary Fund Type) is a body corporate and politic and an instnunentality and public corporation of the State. The authority is responsible for acquiring, constructing, equipping, maintaining and operating the
A-37
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 1. Summary of Significant Accounting Policies (continued)
The three members serving on the Board are State officials.
0
The State has assumed the obligation to provide financial
0
support for real property acquisition.
0
World Congress Center to promote trade shows, conventions and political, musical, educational, entertainment, recreational, athletic or other events. The Governor appoints the fifteen members of the Board.
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 ofFame 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. State officials appoint the eighteen members of the Board. The Georgia State Financing and Investment Commission must approve the issuance of bonds.
Jekyll Island State Park Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation ofthe State. The authoritywascreated to operate and manage resort recreational facilities on Jekyll Island. The Board consists of one State official designated by statute and eight members appointed by 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 Mountains Authority (Proprietary Fund Type) is a body corporate and politic and an instrumentality and public corporation of the State responsible for the construction and management ofrecreation, accommodation and tourist facilities and services. The Governor appoints the nine members of the Board.
OneGeorgia 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 promote the health, welfare, safety and economic society of the rural citizens of the State through the development and retention ofemployment opportunities in rural areas and the enhancement ofthe infrastructures that accomplish that goal. The six members of the Authority are State officials designated by statute.
Sapelo Island Heritage Authority (Proprietary Fund Type) is a body corporate and politic. The purpose ofthe authority is the preservation ofthe cultural and historic values ofHog Hammock Community located on Greater Sapelo Island.
State Road and Tollway Authority (Proprietary Fund Type)
0
is a body corporate and politic and an instrumentality and public corporation ofthe State. The authority was created to
0
construct, operate and manage a system of roads, bridges
0
and tunnels and facilities related thereto. The three Board members are State officials; therefore, the State can impose
0
its will on the authority.
0
Stone Mountain Memorial Association (Proprietary Fund
0
Type) is a body corporate and politic and an instrumentality
0
and public corporation of the State. The authority is responsible for the preservation and protection of Stone
0
Mountain as a Confederate memorial and public recreational
0
area. The Board consists of one State official designated by
0
statute and eight members appointed by the Governor.
0
Superior Court Clerks' Cooperative Authority (Proprietary Fund . Type) is a body corporate and politic and an
0
Instrumentality and public corporation of the State created
0
to provide a cooperative for the development, acquisition
0
and distribution ofrecord management systems, information, services, supplies and materials for superior court clerks of
0
the State. Ofthe seven members of the Board, the Governor
0
appoints three. The nature ofthis organization is such that it would be misleading to exclude it from the reporting entity.
0
0
Georgia Class Nine Fire Department Pension Fund (Fiduciary Fund Type) is a multiple-employer, defined
0
benefit pension plan established for the purpose of paying
0
retirement and death benefits to volunteer firefighters of the State of Georgia. The Board of Trustees of the Georgia
0
Firefighters' Pension Fund also serves as the Board of
0
Trustees of this pension fund. Benefit provisions and
0
vesting requirements are established.by State statute.
0
Georgia Firefighters' Pension Fund (Fiduciary Fund
0
Type) is a multiple-employer, defined benefit pension plan established for the purpose of paying retirement, death and
0
disability benefits to the firemen of the State of Georgia.
0
The Board of Trustees consists of two State officials designated by statute and three members appointed by the
0
Governor. Benefit provisions and vesting requirements are
0
established by State statute.
0
Judges ofthe Probate Courts Retirement Fund ofGeorgia
0
(Fiduciary Fund Type) is a multiple-employer, defined benefit pension plan established for the purpose of paying
0
retirement, death and disability benefits to the judges of the
0
Probate Courts ofthe State ofGeorgia. The Board consists
0
of one State official designated by statute and six members
appointed by the Governor. Benefit provisions and vesting
0
requirements are established by State statute.
0
A-38
0
'
. . ' . , ' -~ _, .... \ . . :."'
Notes to the Financial Statements
June 30, 2001
Note 1. Summary of Significant Accounting Policies (continued)
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 ofGeorgia. The Board ofCommissioners ofthe Annuity and Benefit Fund consists of two State officials designated by statute and four members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Public School Employees Retirement System (Fiduciary Fund Type) is a single-employer, defmed benefit pension plan established for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The Employees' Retirement System Board of Trustees and two other Governor's appointees not on the Employees' Retirement System Board administer this retirement fund.
Sheriffs' Retirement Fund of Georgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying retirement, death and disability benefits to the sheriffs of the State of Georgia. The Board consists of one State official designated by statute and five members appointed by the Governor. Benefit provisions and vesting requirements are established by State statute.
Superior Court Clerks' Retirement Fund of Georgia (Fiduciary Fund Type) is a multiple-employer, defmed benefit pension plan established for the purpose of paying . retirement, death and disability benefits to the Superior Court Clerks ofthe 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 of Georgia (Fiduciary Fund Type) is a cost-sharing multiple-employer plan created by an act ofthe Georgia General Assembly to provide retirement, service, disability and survivors' benefits for qualifying teachers. The Board of Trustees is comprised of ten members, eight ofwhich are State officials or are appointed by State officials. The State provides a substantial amount offunding to this retirement system in the form ofemployer contributions.
B. Fund Accounting
The State of Georgia uses funds and account groups to report on its fmancial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid fmancial management by segregating transactions related to certain government functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a fmancial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available fmancial resources.
Primary Government - The financial statements of the primary government are divided into four fund categories (further divided by fund type) and two account groups, all of which are described below. The four fund categories include governmental, proprietary, fiduciary and college and university funds. The two account groups presented are the general fixed assets account group and the general long-term debt account group.
Governmental Fund Types are used to account for all or most of a state's general activities. Governmental fund types include:
General Fund - The General' Fund is used to account for all fmancial 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 accoun~ for specific revenues that are legally restricted to expenditures for specified purposes.
The primary government special revenue fund is the GeorgiaNet Authority. The assets of the Authority were transferred to the Georgia Technology Authority (Enterprise Fund) effective July l, 2000.
Debt Service Funds - Debt Service Funds are used to account for the payment ofprincipal and interest on general long-term debt.
The primary government debt service fund is the General Obligation Debt Sinking Fund, which is administered by the Office of Treasury and Fiscal Services. The Debt Sinking Fund is responsible for the accumulation ofresources for the payment of principal and interest on general obligation bonds .
A-39
0
0
0
Notes to the Financial Statements
0
June 30, 200 I
0
Note 1. Summary of Significant
College and University Funds are used to account for the
0
Accounting Policies (continued)
operations of State colleges and universities in accordance
0
with existing authoritative accounting and reporting principles applicable to government-operated colleges and
0
Capital Projects Funds - Capital Projects Funds are used to
universities. Accordingly, college and university funds are
0
account for the acquisition or construction of capital
an aggregation of the following funds.
0
facilities.
Current Funds - Current Funds are used to account for
0
Proprietary Fund Types are used to account for activities
current operating expenditures and related resources and
0
similar fo those found in the private sector, where cost recovery and the determination ofnet income is necessary or
include ( 1) unrestricted funds over which the college or university retains full control in achieving the institutions'
0
useful for sound financial administration.
purposes, and (2) restricted funds, which may be utilized
0
Enterprise Funds - Enterprise Funds are used to account
only in accordance with externally restricted purposes.
0
for operations (a) that are financed and operated in a manner
Loan Funds - Loan Funds are used to account for
0
similar to private business enterprises, where the intent of the governing body is that the costs of providing goods or
transactions ofrelated resources obtained and used for loans to students.
0
services to the general public on a continuing basis be
0
financed or recovered primarily through user charges; or (b)
Endowment and Similar Funds - Endowment and Similar
0
where the governing body has decided that periodic determination ofrevenues earned, expenses incurred and/or
Funds are used to account for resources held by the institutions that must be administered in accordance with
0
net income is appropriate for capital maintenance, public
trust agreements.
0
policy, management control, accountability or other purposes.
0
Plant Funds - Plant Funds are used to account for
institutional property acquisition, renewal and replacement,
0
Internal Service Funds - Internal Service Funds are used to account for the financing of goods or services provided by
debt retirement and investment.
0
one department or agency to other State departments or
Agency Funds - Agency Funds are used to account for
0
agencies, or to other governmental entities, on a cost-
amounts held in custody for students, university-related
0
reimbursement basis.
organizations and others. Agency Funds are also used to account for the external portion of college and university
0
Fiduciary Fund Types are used to account for assets held
fund-sponsored investment pools.
0
on behalfof outside parties, including other governments, or on behalf of other funds within the State. These fund types
0
include:
The General Fixed Assets Account Group is used to account for all fixed assets acquired or constructed for use
0
Expendable Trust Funds - Expendable Trust Funds are
by the State, other than those accounted for in the
0
used to account for the activities of trusts in which both
proprietary, fiduciary, and college and university funds.
0
principal and income may be used for the purposes of the trust.
The General Long-Term Debt Account Group is used to
0
account for general obligation bonds outstanding, accrued
0
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
annual and compensatory leave, capital lease obligations and other long-term liabilities not otherwise recorded in proprietary, fiduciary, and college and university funds.
0 0
principal.
0
Discretely Presented Component Units - The financial
Pension Trust Funds - Pension Trust Funds are used to
statements ofthe component units, other than the component
0
account for State-administered retirement systems.
units which financial statements were blended with the
0
Investment Trust Funds - Investment Trust Funds are used
financial statements of the primary government due to their relationship with the primary government, are presented in
0
to account for the external portion of a govemment-
separate columns. The three columns presented reflect
0
sponsored investment pool.
firiancial activity for the following fund types:
0
Agency Funds - Agency Funds are used to account for
Governmental Fund Types are used to account for
0
assets that the State holds on behalfof others as their agent.
component unit general activities.
0
A-40
0
.';
, >.:._.:',
Notes to the Financial Statements
June 30, 2001
Note 1. Summary of Significant Accounting Policies (continued)
Proprietary Fund Types are used to account for activities similar to those found in the private sector, where the detennination ofnet income is necessary or useful for sound financial management.
Fiduciary Fund Types are used to account for assets held on behalfofoutside parties, including other governments, or on behalf of other funds within the State.
The financial data presented in these columns are discretely presented with the balances and transactions for each component unit being aggregated within the component unit's predominant fund type.
C. Basis of Accounting
The accounting and 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, p_ension 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.
Expenditures are recorded when the related fund liability is incurred. Principal and interest on general long-term debt are recorded as fund liabilities when due or when amounts have been accumulated in the debt service fund for payments to be made early in the subsequent fiscal year.
The accrual basis of accounting, as required by GAAP, is utilized by proprietary fund types, nonexpendable trust funds, pension trust funds and investment trust funds with the exception ofthe following individual pension trust funds which are reported essentially on the cash basis:
Discretely Presented Component Units Fiduciary Fund Types Class Nine Fire Department Pension Fund 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 ofaccounting, 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 State has elected to follow generally accepted accounting principles prescribed by the GASB and all Financial Accounting Standards Board (FASB) standards issued on or before November 30, 1989.
The College and University Funds are reported using the modified accrual basis ofaccounting (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 ofthe 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 ofthe State of Georgia is prepared on the modified accrual basis utilizing encwnbrance 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 revenues and expenditures. The budget represents departmental appropriations recommended by the Governor and adopted by the General Assembly prior to the beginning
A-41
0
0
0
Notes to the Financial Statements
0
June 30, 200 I
0
Note 1. Summary of Significant Accounting Policies (continued)
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.
advantageous yield on those funds in excess of those
0
required for current operating expenses (Official Code of
0
Georgia Annotated [OCGA] 50-17-51). The State Depository Board may pennit any department, board,
0
bureau or other agency to invest funds collected directly by
0
such organization in short term time deposit agreements, provided that the interest income of those funds is remitted
0
to the Director ofthe Office ofTreasury and Fiscal Services
0
as revenues of the State of Georgia. As a matter of general
0
practice, however, demand funds of any department, board,
bureau or other agency in excess of current operating
0
expenses are required to be deposited with the Director of
0
the Offici;: ofTreasury and Fiscal Services for the purpose of pooled investment (OCGA 50-17-63). Such cash is
0
managed in a pooled investment fund to maximize interest
0
earnings. The pooled investment funds "Georgia Fund 1" and "Georgia Extended Asset Pool" are also available on a
0
voluntary basis to organizations outside of the State
0
reporting entity.
0
Authorized pool investments are limited to the following in
0
accordance with State statutes:
0
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, 2001, to the excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses/net income (loss)/net increase (decrease) in plan net assets/net increase in fund balances- current funds presented in conformity with GAAP is set forth in Note 3.
1) Obligations of the State of Georgia or of other states;
0
2) Obligations issued by the United States government;
0
3) Obligations fully insured or guaranteed by the United States government or a United States government
0
agency;
0
4) Obligations of any corporation of the United States
0
government;
5) Prime banker's acceptances;
0
6) Repurchase Agreements;
0
7) Obligations of other political subdivisions ofthe State; and
0
8) Commercial paper issued by domestic corporations.
0
E. Deposits and Investments
0
Authorized investments are subject to certain restrictions.
0
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 ofGeorgia is to maximize the protection of State funds on deposit while accruing an
Pooled cash and cash equivalents and investments are
0
grouped into portfolios for investment purposes according to the operating needs of the State of Georgia and other pool
0
contributors.
0
The Primary Liquidity Portfolio is a stable net asset value
0
investment pool which follows Standard and Poor's criteria
0
for AAAm rated money market funds. The pool is not
0
registered with the Securities and Exchange Commission
(SEC) as an investment company, but does operate in a
0
manner consistent with the SEC's Rule 2a7 of the
0
Investment Company Act of 1940. The pool's primary objectives are safety ofcapital, investment income, liquidity
0
and diversification while maintaining principal. Net asset
0
value is calculated weekly to ensure stability. The pool distributes earnings (net ofmanagement fees) on a monthly
0
0
A-42
0
~ r ; .
Notes to the Financial Statements June 30, 2001
Note 1. Summary of Significant Accounting Policies (continued)
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, corporate obligations and repurchase agreements.
The Secondary Liquidity Portfolio consists ofcertificates of deposit with average investment duration of .16 years.
The Georgia Extended Asset Pool is part of the Extended .Term Portfolios. It is a variable net asset value investment pool which follows Standard and Poor's criteria for AAAf rated funds. The pool is not registered with the SEC as an investment company. The pool's primary objective is the prudent management of public funds on behalf of the State of Georgia and local governments seeking income higher than money market rates. Net Asset Value (NAV) is calculated daily to determine current share price. NAV is calculated by taking the closing fair value of securities owned plus other assets and subtracting liabilities. The remainder is then divided by the total number of shares outstanding to compute NAV per share (current share price). The pool distributes earnings (net ofmanagement fees) on a monthly basis and determines participant's shares sold and redeemed based on the current share price, which at June 30, 2001, was $2.01 per share. Investments consist generally of securities issued or guaranteed as to principal and interest by the U. S. Government or any of its .agencies or instrumentalities, bankers' acceptances. and repurchase agreements. The average investment duration at June 30, 2001, was 1.25 years.
The Extended Term Portfolios include three other funds: two consisting generally of repurchase agreements and certain U.S. Government Securities with average investment durations at June 30, 2001, of 1.98 and 2.12 years; and a third fund consisting generally ofrepurchase agreements and certain U.S. Government Securities which include mortgagebacked securities such as collateralized mortgage obligations and adjustable rate mortgages. These mortgage-backed securities are repo11edas U.S. Government Securities in the disclosure ofcustodial credit risk (see Note 4). Investments in this third fund are transacted by an external investment management firm under direction ofan investment advisory agreement executed between the Office of Treasury and Fiscal Services and the investment management firm. The agreement directs the investment firm 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 average investment duration for this fund on June 30, 2001, was 1.85 years. The agreement also places limitations on individual security purchases and holdings. As of June 30, 2001, the State had $73,492,711 invested in U. S. agency mortgage-backed securities.
Other organizations of the State of Georgia reporting entity invest in a variety offinancial activities. These investments may include brokered certificates of deposit, commercial paper, convertible bonds, corporate bonds, notes and obligations, foreign bonds, investment agreements, mortgages, municipal bonds, mutual funds, real estate, real estate mortgages and notes, real estate investment trust limited partnerships, repurchase agreements, short-term investments, stocks, and U. S. Treasury bonds, notes, and bills. Investments of other organizations are stated at fair value at June 30, 2001.
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 DepartrD.ent as trustee ofthe funds and may take the form of certificates of deposit, letters of credit, money orders or cashiers' checks. At June 30, 2001, the Department held surety bonds in the amount of$37,73 l,426, and cash bonds in the amount of $14,284,126. 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 ofa 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 se!i:urities is allowed as long as the required levels of deposits are maintained. At June 30, 2001, securities valued at $229,098,716 were held by the Department oflnsurance. 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
A-43
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 1. Summary of Significant Accounting Policies (continued)
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, 2001, $36,002,224 in escrow deposits was administered by the Department of Transportation.
J. Inventories
0
0
Inventories of supplies and materials are determined by
0
physical count and/or perpetual inventory records and are valued at cost, weighted average cost, moving average cost,
0
or lower ofweighted average cost or market, using the first-
0
in/first-out (FIFO) method, depending on the individual organization's preference. The costs of governmental fund-
0
type inventories are recorded as expenditures when
0
consumed rather than when purchased for larger agencies
0
and agencies with material inventories. Other agencies may
use either the purchase or consumption method.
0
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 ofreceivables included within the financial statements.
0
Under the purchase method, a portion ofthe fund balance is reserved for inventories to indicate that it is not available for
0
appropriation. Organizations under the consumption
0
method normally reserve a portion of fund balance equal to the average monthly inventories on hand for the fiscal year.
0
0
USDA Donated Food Inventories are shown at a value established by the U. S. Department of Agriculture.
0
Donated food inventories are equally offset by an amount to
0
indicate that they do not constitute "available expendable
0
resources" even though they are a component of net current
assets. The fund balance reserve is based on values
0
established by the U. S. Department of Agriculture.
0
G. Interfund Receivables
K. Prepaid Items
0 0
The short-term portion of balances arising in connection with interfund loans are recorded as interfund receivables/payables.
0
Payments made to vendors and local government organizations for services that will benefit periods beyond
0
June 30, 2001, are recorded as prepaid items.
0
0
H. Due To/From Other Funds
L. Restricted Assets
0
Equally offsetting asset and liability accounts are used to
0
account for amounts owed to a particular fund by another
Certain proceeds of enterprise fund revenue bonds, as well
0
fund for short-term obligations on goods sold or services rendered.
. as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because
0
their use is limited by applicable bond covenants.
0
0
I. Advances to Other Funds
M. Fixed Assets
0
Noncurrent portions oflong-term interfund loans receivable are reported as advances and are offset equally by a fund balance reserve account which indicates that they do not constitute expendable available financial resources and therefore are not available for appropriation.
0
General fixed assets of governmental fund types are reflected as expenditures in the funds used to acquire or
0
construct them and the related assets are reported in the
0
general fixed assets account group. Proprietary and trust
0
0
0
0
A-44
0
Notes to the Financial Statements June 30, 2001
Note 1. Summary of Significant Accounting Policies (continued)
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 of the assets owned by the State of Georgia.
All purchased fixed assets are valued at cost or at estimated histoncal cost if historical cost is not practically determinable. 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 ofthe 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.
N. Compensated Absences
The State's liability for accumulated unpaid annual leave is reported in the accompanying general long-term debt account group for governmental fund types. These amounts are not shown as a liability in the funds but are recorded as expenditures when paid. In the proprietary fund types and the college and university funds this obligation is reported as a liability in the respective funds .
Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employee's length of continuous State service with a maximum accumulation of forty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination ofemployment. 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 ofninety 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.
0. Deferred Revenue
The State reports deferred revenue on the combined balance sheet. Deferred revenues arise when 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.
A-45
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 1. Summary of Significant Accounting Policies (continued)
S. Bond Discounts/Premiums/Issuance Costs
0
0
In governmental fund types, bond discounts, premiums and
0
P. Mortgage Loans Under Repurchase Agreements
issuance costs are recognized in the current period. Bond discounts, premiums and issuance costs for proprietary fund
0
types are deferred and amortized over the term of the bonds
0
using a method which approximates the effective interest method or the straight-line method. Bond premiums
0
At June 30, 2001, mortgage loans totaling $7,901,152 have been transferred and assigned to lenders under repurchase agreements by the Georgia Development Authority
(discounts) are presented as increases (reductions) in the
0
face amount of bonds payable whereas issuance costs are recorded as deferred charges.
0
(Discretely Presented Component Units). The agreements
0
give the lenders the option to have the Authority repurchase the mortgage loan5 for an amount equal to the then outstanding balance of principal and interest due during a
T. Interfund Transactions
0 0
specified period of time.
The State has the following types of interfund transactions:
0
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.
Quasi-external transactions for services rendered by one
0
fund to another are accounted for as revenues by the
0
recipient fund and expenditures or expenses by the
0
disbursing fund.
0
Reimbursements of expenditures/expenses initially made
0
from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund
0
and as reductions of expenditures/expenses in the fund that
0
is reimbursed.
0
Q. Long-Term Obligations
Residual equity transfers are recorded for nonrecurring or
0
nonroutine permanent transfers of equity.
0
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 offinancial resources.
Operating transfers are recorded for all other interfund
0
transactions.
0
0
U. Intrafund Transactions
0
0
State accounting policies and procedures allow for the
recording of revenues, receivables, expenses and liabilities
0
for transactions between State organizations whose financial
0
activity is included within a single fund. State accounting systems do not facilitate the identification of all such
0
transactions. Adjustments have been made for material
0
transactions and balances which have been identified during the preparation of the State's general purpose financial
0
statements; however, all such intrafund transactions and
0
balances were not identifiable and, accordingly, revenues,
0
receivables, expenses and liabilities are overstated, primarily
in the general and college and university funds.
0
0
0
0
0
A-46
0
Notes to the Financial Statements June 30, 2001
Note 1. Summary of Significant Accounting Policies (continued)
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 9perations 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 financial activity for the Stone Mountain Memorial Association whose fiscal reporting period differs from that of the State of Georgia (July 1, 2000 through June 30, 2001). 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 1, 2000, through December 31, 2000.
Note 2. Other Accounting Disclosures
Change in Accounting Policy and Restatements
In fiscal year 2001, the State implemented GASB Statement 33, "Accounting and Financial Reporting for Nonexchange Transactions." This statement requires that capital contributions, including governmental grants, be reported in the statement of revenues, expenses and changes in fund equity as a revenue item, rather than as direct additions to contributed capital, as under previous standards. This change is reflected as an adjustment to fund equity in the applicable funds.
In fiscal year 2001, the State discontinued the practice of recording encumbrances as expenditures and accruing revenues based on the unexecuted portion of contracts for goods and services, in accordance with GAAP. These changes are reflected as an adjustment to fund balances/fund equity in the applicable funds .
Prior to fiscal year 2001, stock certificates held by the unclaimed property unit were not reported in the financial statements. The fund balance of the general fund has been adjusted by $25,349,277 to correct this error.
Effective July 1, 2000, the operations ofthe special revenue fund (GeorgiaNet Authority) were transferred to the Georgia Technology Authority (Enterprise Fund). The beginning fund equity of the enterprise fund has been increased by $924,323 to reflect the change from the modified accrual basis of accounting utilized by the special revenue fund to the accrual basis utilized by the enterprise fund.
In fiscal year 2001, an error was discovered in the amount. reported for certain liabilities ofthe Liability Self-Insurance Reserve risk management fund, which is included in the internal service funds. The beginning fund equity of the internal service funds has been increased by $46,393,559 to reflect the correction of this error.
On July 1, 2000, the operations of the Medical College of Georgia Hospitals and Clinics were transferred to a private corporation. The beginning fund balance of the college and university funds has been decreased by $119,004,774 to reflect the removal of these operations from the reporting entity .
During fiscal year 2000, the Medical College of Georgia recorded pension expense in excess of the required pension contribution. The beginning fund balance ofthe college and university funds has been increased by $13,542,899 to reflect this prepaid expense.
In fiscal year 2001, the Higher Education Assistance Corporation changed its basis of accounting from the statutory basis of accounting, an other comprehensive basis of accounting, to the basis of accounting which complies with accounting principles generally accepted in the United States. The beginning fund equity of the discretely presented component units - proprietary fund types has been decreased by $21,357,873 for this change in accounting principle.
In fiscal year 2001, the Music Hall ofFame Authority began depreciating fixed assets in accordance with GAAP. The beginning fund equity ofthe discretely presented component units - proprietary fund types has been decreased by $63, 108 for this change in accounting principle.
Fund balances/fund equity at July 1, 2000, have been adjusted as follows:
A-47
0
0
0
Notes to the Financial Statements
0
June 30, 200 I
0
.Note 2. Other Accounting Disclosures (continued)
0 0 0
0
General Fund
Primary Government
0
Encumbrances
$ 2,776,247,423
0
Revenues Based on Encumbrances
(1,225,509,972)
0
Stock Held by Unclaimed Property Unit
25,349,277
0
$
1,576,086,728
0
Enterprise Fund
0
Operations Transferred from Modified
0
Accrual Basis Fund
$
924,323
0
Internal Service Funds
0
Encumbrances
$
1,321,091
Correction of Liabilities
46,393,559
0
0
$
47,714,650
0
College and University Funds
0
Transfer of Hospital/Clinic Operations Correction of Prepaid Expenses
$
(119,004,774)
13,542,899
0
0
$
(105,461,875)
0
0
0
0
0
Discretely Presented Component Units Proprietary Fund Types
0
GASB 33 Implementation
$
(65,057,819)
0
Change in Basis of Accounting Accumulated Depreciation
(21,357 ,873) (63,108)
0
0
$ ===(8=6=,47=8=,8=00=)
0
0
0
0
0
0
0
0
0
0
0
A-48
0
Notes to the Financial Statements
June 30, 2001
. . . ,_ ""
Note 3. Budgetary Accounting
The Official Code ofGeorgia 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 ofPlanning 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 ofPlanning 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 ofthe date on which the General Assembly convenes. The Governor possesses the responsibility and authority to establish the revenue estimate for the corresponding fiscal year.
The General Assembly, after adopting such modifications to the Governor's budget report, as it deems necessary, enacts the General Appropriations Act for the subsequent fiscal year. Each General Appropriations Act enacted, along with amendments as are adopted, continues in force and effect for the next fiscal year after adoption. In accordance with the Constitution ofthe State ofGeorgia, 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 oftheir 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 ofFunds 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 (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses/Net Income (Loss)/Net Increase (Decrease) in Plan Net Assets/Net Increase in Fund Balances - Current Funds - GAAP Fund Types" appears below.
A-49
0
Georgia
0 0
Notes to the Financial Statements
0
June 30, 2001
0
Note 3. Budgetary Accounting
0 0
0
0
a
0
Budgetary
Fund
0
Excess ofFunds Available Over Expenditures Budget Fund - Budgetary Method
Primary
0
Budget
0
General
Special Revenue
Debt Service
Capital Projects
Enterprise
0
0
$ 1,781,081,003 $
-$
-$
-$
-s
0
Entity and Perspective Differences:
0
Reclassification of Budgetary Funds to GAAP Financial Statement Fund Types
Non-Budgeted Funds
(1,781,081,003)
955,282,623 1,282,296,212
0
468,000,000 259,074.874
0
17,239,979 (72.097,455) 14,952,592
0
Budgeted Non-Current Funds
0
Basis Differences:
0
Net Accrued Revenues, Related Receivables and Deferred Revenues
Net Accrued Expenditures/ Expenses and Related Liabilities
(2,608,656,757) 140,029,357
0
497,532
0
(31,567,455)
0
Timing Differences:
Revenues
Expendi lures/Expenses
Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses/Net Income (Loss)/Net Increase (Decrease) in Plan Net Assets/Net Increase in Fund Balances - Current Funds - GAAP FundTypes
0
4,120,340
0
0
0
0
0
0
$=====0=$ (226,928,225) S===O=S 17.239,979 $ 395,902.545 S 242.957.543
0
0
0
a
0
0
0
0
0
0
0
A-50
0
--..- . -
Notes to the Financial Statements
June 30, 2001
Note 3. Budgetary Accounting
Government
Internal Service
Financial Statement Fund Types
Expendable Trust
Nonexpendable Trust
Pension/Investment Trust
College and University
Discretely Presented Component Units
Governmental Fund Types
Proprietary Fund Types
Fiduciary Fund Types
$
-$
-$
-$
-$
-$
-$
-s
26,175,400 23,021,953
(167,628,135)
2,565
200 287,245,279
65, 783,444 (12,783,012) (3,591,866)
5,972,232 4,819,674
415,536 213,447,940
376,694 (2.194.815.164)
(25,550,488) ( 42,216,896)
(745,544)
569,120 (10,457,140) (23,732) 50,869,579
6,681 1,930.503
90,000 433,067
798.151 294,980
(2.000) (60,909)
(374,694)
$ {19,315,575) $ (167,628,135) $====2=,5=65= $
287,790,867 $ 91,758,189 $
11,314,973 $ 214,956,607 $ (2,194,876,073)
A-51
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 4. Deposits and Investments
6) Guarantee or insurance of accounts provided by the
0
Federal Deposit Insurance Corporation.
0
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 ofa surety bond, the depository may pledge as collateral any one or more of the following securities as enumerated in OCGA 50-17-59:
1) Bonds, bills, notes, certificates ofindebtedness, or other direct obligations ofthe United States or ofthe State of Georgia.
2) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia.
3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
As authorized in OCGA 50-17-53, the State Depository
0
Board has adopted policies which allow agencies of the
0
State of Georgia the option of exempting demand deposits from the collateral requirements.
0
0
0
Primary Government
0
At year-end, the carrying amounts of the State's deposits
0
were $753,829,983, and the bank balances were
0
$1,488,357,774. The amounts of these bank balances are classified into three categories ofcredit risk: (1) cash that is
0
insured (e.g., Federal depos~tory insurance) or collateralized
0
with securities held by the State or by its agent in the State's name, (2) cash collateralized with securities held by the
0
pledging financial institution's trust department or agent in
0
the State's name and (3) uncollateralized bank accounts. The State's deposits were classified as follows at
0
June 30, 2001:
0
4) Industrial revenue bonds and bonds of development
0
authorities created by the laws of the State of Georgia.
0
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.
Risk Category
2 3
Bank Balance
0
0
$
379,867,372
179,589,609
0
928,900,793
0
$============1,=48=8=,3=5=7,=77=4=
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
A-52
0
. ...~;
Notes to the Financial Statements
June 30, 2001
. r ,1 ~ " ~ . ..,- :. ' /'
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:
Governmental Fund Types
Georgia Public Telecommunications
Commission
$
All Other Component Units
$
Proprietary Fund Types
Environmental Facilities Authority
$
Georgia Housing and
Finance Authority
$
Lottery Corporation
$
All Other Component Units
$
Fiduciary Fund Types
Peace Officers' Annuity and
Benefit Fund
$
Teachers Retirement
System of Georgia
$
All Other Component Units
$
Risk Cate~ories
I
2
3
Bank. Balance
Funds Held by (for) Primary
Government
Carrying Amount
300,000 $ 100,061 $
$
14,970,024 $
15,270,024 $
4,060,593 $
$
205,897 $
305,958 $
13,853,414 $
9,761,688 43,439
8,429,923 $
$
$
8,429,923 $ 279,932,239 $
8,467,945
20,719,256 $ 2,845,000 $ 3,271,097 $
$ $ 33,497,171 $
107,400,761 $ $
24,439,087 $
128, 120,017 $ 2,845,000 $ 61,207,355 $
13,864,612 $
4,300,519 s
103,737,590 $
129,299,827 ( 12,585,519) 49,950,033
200,000 $
3,693,485 $ 266,756 $
$
5,006,589 $
5,206,589 $
33,567,876 $
5,187,564
$
$
3,693,485 $
(374,694) $
1,352,353
$
29,314 $
s 296,070 $ 763,821,445
565,870
Investments - Investments are stated at fair value, and are summarized and classified as to risk in the following three categories: (1) 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-53
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 4. Deposits and Investments
0
(continued)
0
0
The carrying amounts and risk categories applicable to the State's investments are listed below:
0
Primary Government
Type of Investment Commercial Paper Corporate Bonds Municipal Bonds Repurchase Agreements
Risk Categories 2
$
20,000 s
1,534,659
2,364,113
2,989,442,941
724,703,926 $ 19,290,214
16,346,000
0
0
3
Carrving Amount
0
0
$
724,723 ,926
0
20,824,873
0
2,364,113
0
3,005, 788,941
0
Stocks
8,055,642,388
61,411,295
8, 117,053,683
0
U.S. Government Securities and Corporate Obligations
Unclassified Mortgages
14,910,257 ,348 25,959,261,449 $
80,183,344 901,934 779 $
14. 990.440,692
0
0 s
26,861, 196,228
0
0
4,605,064
0
Mutual Funds
2,466,307
0
Other
6,946
0
Unemployment Compensation Funds Pooled with the U.S. Treasury
Total Investments
0
1.792.319.738
0
$ =====2:::8:::.6::::60::.5:::9=4.:::28:::3=
0
0
0
Significant Discretely Presented Component Units
0
0
0
Risk Categories
Carrying
Type of Investment
2
3
Amount
0
Governmental Fund Types
0
Georgia Public Telecommunications
0
Commission
Stocks
$ ====5,=0=91=$ =====$ =====$ ===5=,0=91=
0
0
0
0
0
0
0
0
0
A-54
0
---------
Gk:,rgia.
Notes to the Financial Statements
June 30, 2001
Note4 Deposits and Investments (continued)
Proprietary Fund Types
T:i::l!e of Investment
Risk Categories
2
3
Carrying Amount
Georgia Housing and Finance Authority
Commercial Paper
$
Corporate Bonds
Mortgage-Backed Securities
U.S. Government Securities and Corporate Obligations
$
17,517,465 $ 4,914,571 28,977,279
25,756,199 77,165,514 $
$
$
17,517,465
4,914,571
28,977,279
25,756,199
0 $
0 $
77,165,514
Lottery Corporation
U.S. Government Securities and
Corporate Obligations
$ 157,110,000 $
$ 52,067,000 $
209' 177,000
Geo. L. Smith II Georgia World Congress Center Authority
Repurchase Agreements
$
U.S. Government Securities and Corporate Obligations
$
$ 51,369,742 $
54,446,947 0 $ 105,816,689 $
$
51,369,742
54,446,947
s 0
. 105,816,689
All Other Component Units
Corporate Bonds Repurchase Agreements
$
$
9,906,667
U.S. Government Securities and Corporate Obligations
$
45,158,213 55,064,880 $
Unclassified Mutual Funds Other
108,000 $
s
108,000
9,906,667
16,410,272 108,000 $ 16,410,272 $
61,568,485 71,583,152
1,988,774
3,002,000
s
76,573,926
A-55
0
~:La.
0
0
Notes to the Financial Statements
0
June 30, 200 I
0
Note 4. Deposits and Investments
0
(continued)
0
0
Risk Categories
Carrying
0
2
3
Amount
T:i:(!e of Investment
0
Fiduciary Fund Types
0
Teachers Retirement
System of Georgia
Repurchase Agreements
s
537,554,000 $
$
$
53 7,554,000
0
Stocks
22,309, 783,000
22,309, 783,000
0
U.S. Government Securities and
0
Corporate Obligations
16.379,674,000
16.379.674.000
0
$ 39,2271011.000 $
0 $
0 $ 39,227,011,000
0
Unclassified Real Estate
3.746.000
0
$ 39.230.757.000
0
All Other Component Units Corporate Bonds
$
132,167,193 $
$
$
132,167,193
0
Investment Accounts
59,910,542
59,910,542
0
Notes
7,926,207
7,926,207
0
Stocks U.S. Government Securities and
368,218, 162
0
368,218, 162
0
Corporate Obligations
220.543.698
220.543.698
0
$
788,765,802 $
0 $
0 $
788, 765,802
0
Unclassified Mutual Funds
Real Estate
Other
0
4, 164,245
0
11,525
0
25.004.781
0
$
817.946.353
0
0
0
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 ofcollateral security.
Securities loaned totaled $22,871,514,597 at June 30, 2001,
0
and the collateral value was equal to 104.2%. The loaned
0
securities are classified as category 1 investments in the component units - fiduciary fund types based on the
0
custodial arrangements for the collateral securities. Loaned
0
securities are included in the accompanying Statement of Net Plan Assets since the State maintains ownership. The
0
related collateral securities are not recorded as assets on the
0
Statement of Net Plan Assets, and a corresponding liability
0
is not recorded, since the State does not pledge or trade the
collateral securities.
0
0
0
0
0
A-56
0
a
0
II
Notes to the Financial Statements
June 30, 2001
Note 4. Deposits and Investments (continued)
Investment Pools - Separate reports on the State's external investment pools are not issued. Condensed financial statements, inclusive ofexternal and internal participants for the fiscal year ended June 30, 2001, and related categorization ofinvestments are as follows:
Georgia Fund 1 Statement of Net Assets
June 30. 2001
Georgia Fund 1 Statement of Changes in Net Assets For the Fiscal Year Ended June 30. 2001
Cash and Cash Equivalents Investments
$
7 ,354,019,058
1,323,129,999
Additions Pool Participant Deposits Investment Income Less: Investment Expense
s 20,212,209,774
453,404,762 (1,483,301)
Net Assets
====== $
8,677,149,057
Total Additions Deductions
$ 20,664, I 31,235
Distribution of Net Assets
Pool Participant Withdrawals Net Increase
18,899,422,538
s
1,764,708,697
External Participant Account Balances
$
4, 106,852,718
Net Assets
Internal Participant Account Balances
4,570,296,339
July I, 2000
6,912,440,360
====== $
8,677,149,057
June 30, 2001
====== $
8,677,149,057
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, 2001, was $56,709,617. This amount is included in the categorization of deposits ofthe Primary Government. Investments of Georgia Fund I are categorized below. These amounts are included in the categorization of investments of the Primary Government.
Type of Investment
Risk Categories 2
Commercial Paper
$
$
320,34 I ,826 $
Repurchase Agreements
2,179,306,246
U.S. Government Securities and .Corporate Obligations
5,847,484,729
273,306,639
$ 8,026,790,975 $
593,648,465 $
Carrying
3
Amount
$
320,341,826
2, 179,306,246
6, 120,791,368 0 $ 8,620,439,440
A-57
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 4. Deposits and Investments (continued)
0 0
0
Georgia Extended Asset Pool Statement of Net Assets June 30. 2001
Georgia Extended Asset Pool
0
Statement of Changes in Net Assets
0
For the Fiscal Year Ended June 30. 2001
0
Additions
0
Cash and Cash Equivalents Investments
$
26,653,276
855,389,628
Pool Participant Deposits Investment Income
Total Additions
$
821,545,966
0
0
62,311,483
0
$
883,857 ,449
0
Net Assets Distribution of Net Assets
====== $
882,042,904
Deductions
0
Pool Participant Withdrawals
0
1,814,545
0
Net Increase
$
882,042,904
0
External _Participant Account Balances
$
9,045,659
Net Assets
0
Internal Participant Account Balances
872,997 ,245
July 1, 2000
0
0
0
$ ===8=82=,04=2,=90=4
June 30, 2001
$ ====88=2,=04=2,9=04=
0 0
0
0
Investments of Georgia Extended Asset Pool are categorized below. These amounts are included in the categorization of
0
investments of the Primary Government.
0
0
Risk Categories
Carrying
0
Type of Investment
2
3
Amount
0
0
Repurchase Agreements
$
$
26,653,276 $
s
26,653,276
0
U.S. Government Securities and Corporate Obligations
855,389,628
0
855,389,628
0
$
855,389,628 $
26,653,276 $
0 $
882,042,904
0
0
0
0
0
0
0
0
A-58
0
Notes to the Financial Statements June 30, 2001
Note 4. Deposits and Investments (continued)
Regents Investment Pool Statement of Net Assets
June 30, 200 I
Cash and Cash Equivalents Interest Receivable
Net Assets
$
153,716,274
1,014,567
$ ===1=54,=73=0,8=41=
Distribution of Net Assets External Participant Account Balances Internal Participant Account Balances
s
I5,045,930
139,684,911
$ ====== 154,730,841
Regents Investment Pool Statement of Changes in Net Assets For the Fiscal Year Ended June 30. 2001
Additions
Investment Income Interest
s
5,142,058
Fair Value Increases Less: Investment Expense
653,243 (435,124)
Total Additions Deductions
$
5,360,177
Pool Participant Withdrawals
$
46,637,284
Capital Transactions
(84,426,995)
Total Deductions Net Increase Net Assets
$ _ __,(_37_,7_8_9._7_11..._)
$
43, 149,888
July I, 2000 June 30, 2001
111,580,953
$ ===15=4,=73=0,8=41=
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 carrying amount ofPool deposits as of June 30, 2001, was $7,698,385. This amount is included in the categorization of deposits of the Primary Government. Investments of Regents 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 2
$
I3,147,568 s
16,346,000
53,545,708
63,993,180 0 $ 147,032,456 $
Carrying
3
Amount
$
13,147,568
16,346,000
53,545,708
63,993,180
0 $
147,032,456
A-59
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 5. Receivables
0 0
Primary Government
0
0
Receivables by fund type as ofJune 30, 2001, consist ofthe following:
0
0
0
Allowance
0
Gross Receivables
For Uncollectibles
Net Total Receivables
0
0
Governmental Fund Types
0
General
$
2,627,034,421 $
(25,000,000) $
2,602,034,421
0
Capital Projects Proprietary Fund Types
Enterprise Internal Service Fiduciary Fund Types
16,606,100
30,540,276 11,742,902
(4,157,556) (300,000)
16,606,100
Q
0
0
26,382,720
0
11,442,902
0
0
Expendable Trust
34,638,938
( 15,536,220)
19,102,718
0
Pension Trust
108,548,319
108,548,319
0
Agency
5,915,035
5,915,035
0
College and University Funds
226,385,521
(5,238,608)
221,146,913
0
0
$
3,061,411,512 $
0
(50,232,384) $
3,011,179,128
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
A-60
0
Notes to the Financial Statements
June 30, 2001
Note 5. Receivables (continued)
Significant Discretely Presented Component Units
Receivables of the significant discretely presented component units as of June 30, 2001, consist of the following:
Gross Receivables
Allowance For
Uncollectibles
Allowance For Service Repavments
Deferred Loan Fees
Net Total Receivables
Governmental Fund Types
Georgia Public Telecommunications
Commission
$
Georgia Regional Transportation
Authority
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
995,663 $ 448
636,097,821 689,811,364 382,839,975 197,094,222
434,346,222 5,612,486
(79,379) $
$
(216,921) (4,673,169) (5,811,390)
(24,890,967)
s
'
916,284 448
(192,273)
636,097 ,821
689,594,443 353,275,839 191,090,559
434,346,222 5,612,486
$ 2,346,798,201 $ (10,780,859) $ (24,890,967) $
(192,273) $ 2,310,934,102
A-61
Notes to the Financial Statements June 30, 2001
Note 6. Fixed Assets
Primary Government
The following is a swnmary 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
Balance July t, 2000
Retroactive Restatement
of Prior Year Balance
$ 2,201,853,300 $
569,134 $
620,768
1,068,018, 104
1,112,195
Additions
Retirements
Balance June 30. 2001
206,041,944 $
$ 2,408,464,378
1,989
622,757
171,368,858
(117,630,201)
l, 122,868,956
7,441
7,441
Total General Fixed Assets
$ 3,270,492,172 $
1,681,329 $
377,420,232 $
s (117,630,201)
3,531,963,532
The following is a swnmary of the proprietary fund types and college and university funds fixed assets at June 30, 2001:
Land and Buildings Improvements Other Than Buildings Machinery and Equipment Less: Accumulated Depreciation Construction in Progress Net Fixed Assets
Proprietary Fund Types
Internal
Enterprise Funds
Service Funds
College and University Funds
s
$
s 241,052,762
3,392,452,297
256,340,280
15,699,91 I
108,750,801
1,787,825, I 38
(3,031,448)
(16,229,422)
136,578,647
$
12,668,463 $
333,574,141 $
5,573,196,362
A-62
0 CD CD CD CD 0 0 CD CD 0 0 0 0 0 0
0 0 0 0 0 0 0
0 0
0
0
0 0 0
.o
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Notes to the Financial Statements
June 30, 2001
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, 2001:
Governmental Fund Types
Georgia Public
Georgia
Telecom-
Regional
munications
Transportation
Commission
Authority
Georgia Ports
Authority
Proprietary Fund Types
Stone
Geo. L. Smith II
Mountain
Georgia World
Memorial
Congress Center
Association
Authority
All Other Component
Units
Land and Buildings
$
Improvements Other Than Bwldings
27,406,110 $
$
215,454,000 $
79,360,541 $
226,505,000
21,753,253
246,685,622 $
117, 741,428
35,797,675
4, 142,099
Machinery and Equipment
Less: Accwnulated Depreciation
57,487,552
200,945
I 50,272,000 (251,017,000)
26,628,531 (44,122,529)
15,636,307 (72,811,697)
47,098,766 (33,642, 195)
Construction in Progress
Net Fixed Assets
$
84,893,662 $
200,945 $
55,615,000 396,829,000 $
200,637 83,820,433 $
s 225,307,907
135,340,098
Land and Buildings Machinery and Equipment Net Fixed Assets
Firefighters' Pension Fund
Fiduciary Fund Types Peace Officers' Annuity and Benefit Fund
$
152,724 $
310,296 $
186,447
233,559
$
339,171 $
543,855 $
All Other Component
Units
49,489 49,489
As noted in the Summary ofSignificant Accounting Policies (Note I), the State does not maintain complete and accurate inventory records applicable to State-owned land and buildings, nor are there historical cost values for certain
parcels ofland and buildings; therefore, the tables above do not represent a comprehensive valuation ofthe assets owned by the State of Georgia.
A-63
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 7. Risk Management
A. Public Entity Risk Pool
The Department of Community Health 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 governmentparticipati.Ilg in the plan, and appropriations by the General Assembly of Georgia. The Department of Community Health 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 Department of Community Health.
B. Board of Regents Employee Health
0
Benefits Plan
0
0
The Board of Regents of the University System of Georgia maintains a program of health and dental benefits for its
0
employees and retirees. This plan is funded jointly through
0
premiums paid by participants covered under the plan and employer contributions paid by the Board ofRegents and its
0
organizational units. All units of the University System of
0
Georgia share the risk ofloss for claims of the plan.
0
The Board of Regents has contracted withBlue Cross Blue
0
Shield to process all claims in accordance with medical coverage guidelines as established by the Board ofRegents.
0
0
A reconciliation of total claims liabilities for fiscal years ended June 30, 2001, and 2000, is shown below:
0
o
A reconciliation of total claims liabilities for fiscal years ended June 30, 2001, and 2000, is shown below:
Unpaid Claims and Claim Adjuslrnents July I
Incurred Claims and Claims Adjuslrnent Expenses Provisions for Insured Events of the Current Year
Payments - Claims and Claim Adjuslrnent Expenses Attnbutable to Insured Events of the Current Year and of Prior Years
Fiscal Year Ended June 30, 2001
Fiscal Year Ended June 30, 2000
S
193,156,776 $
218,520, 779
902,398,771
1,241,741,930
(925, 796, l 97) (1.267,105,933)
Unpaid Claims and Claim Adjustments June 30
$
169,759,350 $
193,I 56,776
Fiscal Year Ended
Fiscal Year Ended
0
June 30. 2001
June 30, 2000
0
Unpaid Claims and Claim Adjustments July I
$
s 28.400.000
25,300,000
0
Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year
0
0
183.300.197
178.486,808
0
Payments - Claims and Claim Adjustment Expenses Attnbutable to Insured Events of the Current Year and of Prior Years
0
0
(176.521.059)
(175.386,808)
0
Unpaid Claims and Claim Adjustments June 30
0
$
s 35.179,138
28.400,000
0
0
0
C. Other Risk Management
0
The Department ofAdministrative Services (DOAS) has the
0
responsibility for the State of Georgia of making and
0
carrying out decisions that will minimize the .adverse effects of accidental losses that involve State government
0
0
0
0
0
0
0
0
0
0
A-64
0
Notes to the financial Statements
June 30, 2001
Note 7. Risk Management (continued)
assets. 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 of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts ofcommercial 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, 2001, and 2000, is shown below:
Unpaid Oaims and Oaim Adjustments July I
Incurred Claims and Claims Adjustment Expenses Provisions for Insured Events of the Current Year
Payments - Claims and Claim Adjustment Expenses Attributable to Insured Events of the Current Year and of Prior Years
Fiscal Year Ended ]lUle 30, 200I
Fiscal Year Ended JlUle 30, 2000
$ . 436,113,210 $
431,717,753
40,708,467
80,088,508
(125,041,355)
(75,693,051)
Unpaid Oaims and Claim Adjustments J1U1e 30
$
351.780,322 $
436,113,210
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 ofbond sale proceeds and cash supplements (provided by the department or agency involved) to acquire and construct capital projects. At June 30, 2001, the undisbursed balance remaining on these agreements approximates $1,373,000,000.
At June 30, 2001, the Department of Transportation had contractual commitments of $1,881,928,203 for construction of various highway projects. Funding of these future expenditures is expected to be provided from federal grants, motor fuel tax funds and general obligation bond proceeds .
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 ofthe 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, 2001, 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
2002 2003 2004 2005 2006 2007 and Subsequent Total Minimum Commitments
s
80,338,071
40,989,873 22,371,361 22,122,259
20,470,609 84,617,821
s
270,909,994
Expenditures for rental of real property and equipment for the year ended June 30, 2001, totaled $95,961,917.
A-65
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 9. Operating Leases (continued)
0
North Georgia Mountains Authoritv
0
Significant Discretely .Presented Component
Fiscal Year Ended June 30
0
Units
0
Proprietary Fund Types
Environmental Facilities Authority
Fiscal Year Ended June 30
2002 2003 2004 2005 2006 2007 and Subsequent
$
257,794
264,600
289,754
317,790
327,293
Total Minimum Commitments
$ ===1=,4=57=,2=3=1=
Expenditures for rental of real property and equipment for the year ended June 30, 2001, totaled $147,086.
Georgia Lottery Corporation
2002
s
1,438,486
0
2003 2004 2005
1.448,954
0
1,467,011
1,478,380
0
2006
1,482,666
0
2007 and Subsequent
12,430,858
0
Total Minimum Commitments
$ =====19=,7=4=6,=35=5=
0 0
Expenditures for rental of real property and equipment for
0
the year ended June 30, 2001, totaled $1,434,982.
0
0
B. Lessor
0
0
The State leases certain of its facilities for use by others for
terms varying from 1 to 65 years, with the majority ofleases
0
controlled by the State Properties Commission. These leases
0
are accounted for as operating leases; revenues for services provided and for use of facilities are recorded when earned.
0
Minimum future revenues and rentals to be received under
0
operating leases as of June 30, 2001, are as follows:
0
Fiscal Year Ended June 30
2002 2003 2004 2005 2006 2007 and Subsequent
Less: Sublease Revenues
$
1,963,000
1,963,000
14,000
$
3,940,000
(820,000)
Primary Government
Fiscal Year Ended June 30
2002 2003 2004 2005 2006
0
0
0
s
13,204,040
0
13,906,276
0
14,157,051
0
0
14,417,815
0
14,666,041
0
Total Minimum Conunitments
$
3,120,000
2007 and Subsequent
175,492,860
0
Total Minimum Commitments
========= s
245,844,083
0
0
Expenditures for rental of real property and equipment for the year ended June 30, 2001, totaled $1,661,000.
Revenues from rental of facilities for the year ended June
0
30, 2001, totaled $9,480,646.
0
0
0
0
0
A-66
0
Notes to the Financial Statements
June 30, 2001
Note 9. Operating Leases (continued)
Significant Discretely Presented Component Units
Proprietary Fund Types
Lake Lanier Islands Development Authority. Fiscal Year Ended June 30
2002 2003 2004 2005 2006 2007 and Subsequent
Total Minimum Commitments
$
3,200,000
3,200,000
3,200,000
3,200,000
3,200,000
131,466,667
$ ====1=47=,4=66=,6=67=
Revenues from rental of facilities for the year ended June 30, 2001, totaled $3,240,213.
Georgia Ports Authoritv
Fiscal Year Ended June 30
2002 2003 2004 2005 2006 2007 and Subsequent
Total Minimum Commitments
$
7,080,000
5,872,000
5,200,000
4,480,000
3,575,000
30,316,000
$ ======= 56,523,000
Revenues from rental of facilities for the year ended June 30, 2001, totaled $6,467,680.
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 ofa 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 agr.eements 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 accotint group.
As noted in the Summary ofSignificant 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, 2001, future commitments under installment purchases and capital leases were as follows:
Primary Government
Fiscal Year Ended June 30
2002 2003 2004 2005 2006 2007 and Subsequent Total Capital Lease and Installment
Purchase Payments Less: Interest Present Value of Capital Lease and
Installment Purchase Payments
Installment Purchases Capital Leases
s
12,268,025
8,169,323
4,917,166
3,289,634
2,560,749
s
31,204,897
(2,886,729)
$ ======28=,3=18=,1=68=
$
16,425,191
11,892,977
$ =====2=8,3=18=,1=68=
A-67
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 10. Capital Leases and Installment
Fiduciary Fund Types
0
Purchases (continued)
0
Peace Officers' Annuitv and Benefit Fund
0
Significant Discretely Presented Component
0
Units
Fiscal Year Ended June 30
0
Governmental Fund Types
2002
Georgia Public Telecommunications Commission
2003 2004
Fiscal Year Ended June 30
2005
$
7,575
0
7,575
0
3,787
0
0
2002 2003 2004 2005 2006 2007 and Subsequent
2006
$
2,086,580
2007 and Subsequent
2,083,804
1,651,616
Total Installment Purchase Payments
s
658,293
Less: Interest
0
0
0
18,937
0
(l,588)
0
Present Value oflnstallment Purchase Payments
0 $ ======== 17,349 0
Total Installment Purchase Payments
$
6,480,293
0
Less: Interest
Present Value oflnstallment Purchase Payments
(559,700)
$ ======5,=92=0,5=93=
Proprietary Fund Types
Agrirama Development Authority Fiscal Year Ended June 30
2002 2003 2004 2005 2006 2007 and Subsequent
$
41,058
6,059
6,059
3,534
Note 11. Long-Term Debt
0
Primary Government
0 0
General Obligation Bonds. The State issues general
0
obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. General obligation
0
bonds have been issued for both general State and
0
proprietary activities, to provide loans to local governments for water and sewer systems, to construct educational
0
facilities for local school systems, and to refund general
0
obligation bonds.
0
General obligation bonds are direct obligations and pledge
0
the full faith and credit of the State. General obligation bonds currently outstanding are as follows:
0
0
Purpose General Government
Interest Rates
1.25% - 7.70% $
0
Amount
0
4,769,970,000
0
Total Installment Purchase Payments
$
Less: Interest
56,710 (3,107)
General Government -
Refunding
4.25% - 6.30%
0
541,365,000
0
Present Value of Installment Purchase Payments
$ ======= 53,603
0
s
5,311,335,000
0
0
0
0
A-68
0
.. ~. . ..,
Notes to the Financial Statements
June 30, 2001
Note 11. Long-Term Debt (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Ended June 30
Principal
Interest
2002 2003 2004 2005 2006 Thereafter
$
329,510,000 $
303,327,434 $
336,595,000
284,146,166
370,610,000
263,424,820
381,510,000
240,674,384
397,310.000
217,270,233
3,495,800,000
1,017,243,574
$
5,311,335,000 $
2,326,086,611 $
Total
632,837,434 620,741,166 634,034,820 622, 184,384 614,580,233 4,513,043,574
7,637,421,611
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, 2001, were $15,505 with accumulated interest of$11,475 .
Revenue Bonds. At June 30, 2001, $271,000 ofoutstanding Georgia Education Authority (University) revenue bonds (including prior years' defeasances) are considered defeased.
Changes in Long-Term Liabilities. During the year ended June 30, 2001, the following changes occurred in liabilities reported in the general long-term debt account group:
Compensated Absences Capital Leases and Installment Purchases General Obligation Debt General State Bond Debt Long-Term Notes
Balance Jul~ 1
Retroactive Restatement
o f Prior Year Balance
$
231,563,694 $
(199,198) $
4,947,999
2,808
5,139,570,000
15,505
2,745,088
Additions
Reductions
Earned and Utilized (Netl
Balance June 30
$
$
13,441,027 $
244,805,523
4,042,177
(2,507, 197)
6,485,787
567,280,000
(395,515,000)
5,311,335,000
15,505
(55,087l
2.690.001
$ 5,378,842,286 $
[196,390l $
571,322.177 $ [398,077,284l $
13,441,027 $ 5.565.331,816
A-69
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 11. Long-Term Debt (continued)
Long-term operating debt requirements to maturity are as
0
follows:
0
Significant Discretely Presented Component
0
Georgia Student Finance Authority
Units
Fiscal
0
Proprietary Fund Types
Year Ended
0
June 30
Principal
Interest
Total
0
Long-Term Operating Debt. Long-term operating debt has been issued by the Georgia Student Finance Authority. This debt consists ofa fmancing agreement with SunTrust Bank with an outstanding balance at June 30, 2001, of $5,500,000.
2001 $ 5,500,000 $ ========= $ =====5=,5=00=,=00=0=
0 0
Interest varies based on marlcet rates and tl1erefore is not
0
available for this schedule.
0
0
Purpose
Georgia Student Finance Authority
Interest Rates
Varies Based on Market Rates $
Amount 5,500,000
0
Revenue Bonds. Revenue bonds have been issued by the significant discretely presented component units listed
0
below. Income derived from acquired or constructed assets
0
is pledged to fund the debt service requirements of these issues. Significant discretely presented component unit
0
revenue bonds outstanding, net ofunamortized discounts, of
0
$800,708,277 and $188,615,000 at the Georgia Housing and Finance Authority and the Geo. L. Smith II Georgia World
0
Congress Center Authority, respectively, at June 30, 2001,
0
are as follows:
0
0
0
0
Purpose
Interest Rates
0
Amount
0
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
2.95% - 9.25%
0
0
$
800,708,277
0
Geo. L. Smith II Georgia World Congress Center Authority Construction of the Georgia Dome Stadium
5.50%- 6.00%
0
s
188,615,000
0
0
0
0
0
0
0
0
0
0
a
0
A-70
Notes to the Financial Statements June 30, 2001
Note 11. Long-Term Debt (continued)
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Ended June 30
Georgia Housing and Finance Authority
Principal
Interest
Total
2002 2003 2004 2005 2006 Thereafter Unamortized Discount Future Accretion of Capital Appreciation Bonds
$
15,770,000 $
17,355,000
19,025,000
21,163,000
23,051,000
728,121,120
52,157
(23,829,000)
44,722,000 $ 43,837,000 42,916,000 41,899,000 40,797,000 499,375,000
(52,157)
23,829,000
60,492,000 61, I 92,000 61,941,000 63,062,000 63,848,000 1,227,496,120
800,708,277 $ $======i:::::i:::::===
737,322,843 $
1,538,031, 120
Various series of bonds under Resolution I and 3 include capital appreciation bonds which require no payments ofprincipal or interest until maturity. Capital appreciation bonds accrete to their maturity values at effective yields ranging from 7.10% to 11.25%.
Geo. L. Smith II Georgia World Congress Center Authority
Fiscal Year Ended June 30
Principal
Interest
2002 2003 2004 2005 2006 Thereafter
$
5,005,000 $
5,310,000
5,645,000
6,000,000
6,380,000
160,275,000
$
188,615,000 $
5,271,659 $ 10,384,019 10,055,369 9,706,019 9,334,618 77,254,697
122,006,381 $
Total
10,276,659 15,694,019 15,700,369 15,706,019 15,714,618 237,529,697
310,621,381
A-71
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 11. Long-Term Debt (continued)
0
0
De/eased Debt. At June 30, 2001, $72,965,000 of
0
outstanding Tollway Authority revenue bonds (including
0
prior years' defeasances) are considered defeased..
0
0
Note 12. Interfund Balances
0
0
Interfund assets and liabilities at June 30, 2001, consist of
0
the following:
0
Interfund Receivables:
0
0
0
Interfund
Interfund
0
Receivable Fund
Payable Fund
Receivable
Payable
0
Capital Projects Funds
Proprietary Fund Types Discretely Presented Component Units
0
$ =======3=,=51=3=,9=2=7=$ =======3=,3=8=0=,1=3=0= 0
0
Georgia State Financing and Investment Commission (Capital Projects Funds) interfund receivables from Stone Mountain
0
Memorial Association (Proprietary Fund Types - Discretely Presented Component Units) do not reconcile due to the
0
difference in fiscal reporting periods (See Note I).
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
A-72
0
---.-. . .:. -.~-- ~
"';',---
;,..f."-:" ..... ,
.~
Notes to the Financial Statements
June 30, 2001
Note 12. Interfund Balances (continued)
Due From/To Other Funds:
Receivable Fund General Fund
Internal Service Funds Internal Service Funds Internal Service Funds Internal Service Funds Internal Service Funds
Internal Service Funds
Internal Service Funds
Pension Trust Funds Governmental Fund Types -
Discretely Presented Component Units Proprietary Fund Types Discretely Presented Component Units Proprietary Fund Types Discretely Presented Component Units
Payable Fund
Governmental Fund Types Discretely Presented Component Units General Fund Enterprise Funds Pension Trust Funds College and University Funds Governmental Fund Types Discretely Presented Component Units Proprietary Fund Types Discretely Presented Component Units Fiduciary Fund Types Discretely Presented Component Units Internal Service Funds
General Fund
General Fund
Capital Projects Funds
Due From
Due To
$
51,993 $
7,209,950
35,396
10,419
3,496,075
21
142,866
3,145 3,137,000
20,542
3,028,376
455,528
$
s 17,591,311
51,993 7,209,950
35,396 10,419 3,496,075
21
142,866
3,145 3,137,000
20,542
3,028,376
455,528 17,591,311
Advances From/To Other Funds:
Receivable Fund General Fund Capital Projects Funds
Payable Fund
Agency Funds Proprietary Fund Types Discretely Presented Component Units
Advances To
Advances From
$
6,925 $
6,925
6,280,271
6,041,143
$ ====6=,2=8=7=19=6= $ ====6=,0=4=8,=06=8=
Georgia State Financing and Investment Commission (Capital Projects Fwtds) advances to Stone Mowitain Memorial Association (Proprietary F1U1d Types - Discretely Presented Component Units) do not reconcile due to the difference in fiscal reporting periods (See Note I).
A-73
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 13. Contributed Capital
0
0
During the year, contributed capital was restated by the
0
following amounts:
0
Primary Government
0
0
Internal Service Funds
0
Georgia
Department of
Building
Correctional
0
SOURCE
Administrative
Authority
Industries
0
Services
(Regular)
Administration
Total
0
Contributed Capital July I, 2000
$
53,384,666 $
220,245,817 $
1,145,948 $
274,776,431
0
Restatement of Prior Year Balance
(1,145,948)
(l ,145,948)
0
0
Contributed Capital June 30, 2001
$ ===53=,3=8=4,=66=6=$
s 220,245,817
0 s
273,630,483
======== =========
0
0
0
Significant Discretely Presented Component Units
0
Proprietary Fund Types
0
0
SOURCE
Geo. L. Smith II
0
Georgia
Georgia World
0
Environmental Facilities
Georgia Ports
Congress Center
All Other Component
0
Authority
Authority
Authority
Units
0
Contributed Capital July 1, 2000 Restatement of Prior Year Balance
$
608,531,069 $
275,942,794 $
71,883,860 $
143,955,972
0
0
(163,537)
0
Contributed Capital June 30, 2001
$
608,531,069 $
275,942,794 $
71,720,323 $
143,955,972
0
0
0
0
0
Note 14. Contingencies
0
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.
0
The State is a defendant in various legal proceedings pertaining to matters incidental to the performance of
0
routine governmental operations. The ultimate disposition
0
of these proceedings is not presently determinable. However, the ultimate disposition of these proceedings
0
would not have a material adverse effect on the financial
0
condition of the State, with the following exceptions:
0
0
A-74
0
Notes to the Financial Statements
June 30, 2001
Note 14. Contingencies (continued)
Primary Government
Four suits involving contract claims in the amount of approximately $15,000,000 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 costs were $55,000,000. Several subcontractors have filed suits against the Construction Manager, with the Construction Manager filing corresponding third-party complaints against the Board of Regents. The State has reached settlement on three of the four cases. The State expects to reach a favorable settlement with all subcontractors. The only remaining litigation involves disputes with the construction manager. The State has filed fourth party complaints against the architect, who has brought the engineer into the suit.
A civil suit has been filed against the Department of Education and the Office ofTreasury and Fiscal Services to compel the Defendants to change the calculation and distribution of school transportation funding to the DeKalb County School District. The Plaintiffs allege that the State Board ofEducation's attendance zone/routing survey system ofcalculating State financial aid is contrary to the applicable statute and violates a State Board of Education policy directing supplemental flat grants for children attending schools other than that of their geographic assignment pursuant to M-to-M or magnet school programs. Plaintiffs seek an entitlement of$63,000,000. Previous similar federal litigation was resolved in favor of the State. Briefs and proposed findings of fact and conclusions oflaw have been submitted by both sides.
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 parties are now completing the discovery phase, after being unable to reach settlement through a court-approved mediation. The State has filed a third party complaint against the architect, who has filed a fourth party complaint against the engineer.
A financial institution has filed suit for refund ofsales 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 1991-2000) is approximately $53,000,000. 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. On appeal, the Georgia Court ofAppeals affirmed and the Georgia Supreme Court denied certiorari. The plaintiffs in three of the stayed cases have now voluntarily dismissed their suits.
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 $413,015,000 on July 1, 2001(Series2001A and 2001 B); and in the amount of $279,220,000 on November 1, 2001 (Series 2001C and 2001D).
Proceeds from these bonds will be used for the purpose of financing various capital outlay projects.
A-75
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 16. Retirement Systems
Primary Government
Georgia Defined Contribution Plan
Plan Description The Georgia Defined Contribution Plan ("GDCP") is a single-employer, defined contribution plan established by the Georgia General Assembly in July 1992 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. ERS issues a publicly available financial report that includes the financial statements and disclosures applicable to GDCP. The report may be obtained at the ERS offices.
Membership As ofJune 30, 2001, participation in GDCP was as follows:
Active Plan Members
Terminated Employees Entitled to Benefits but not yet Receiving Benefits
33,839
59,075 92,914
Summary of Significant Accounting Policies The financial statements of GDCP are prepared on the accrual basis of accounting. Contributions from the members are recognized in the period in which the members provide services. Benefit and refund payments are recognized when due and payable in accordance with the terms of the plan. Investments are reported af fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price.
District Attorneys' Retirement Fund
Plan Description 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 ofthe
State of Georgia. DARF is directed by its own Board of
0
Trustees. The Boards of Trustees for ERS and DARF
0
entered into a contract for ERS to administer the plan effective July 1, 1995. ERS issues a publicly available
0
financial report that includes the financial statements and
0
disclosures applicable to DARF. The report may be
0
obtained at the ERS offices.
0
Benefits
0
Persons appointed as district attorney emeritus shall receive an annual benefit of$15,000 or one-halfofthe State salary
0
received by such person as a district attorney for the
0
calendar year immediately prior to the person's retirement, whichever is greater.
0
0
Summary of Significant Accounting Policies
0
The financial statements of DARF are prepared on the accrual basis of accounting. Contributions from the
0
employer and members are recognized in the period in
0
which the members provide services. Benefit and refund payments are recognized when due and payable in
0
accordance with the terms of the plan. Investments are
0
reported at fair value. Short-term investments are reported
0
at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last
0
reported sales price.
0
Funding Policy
0
Member contributions were five percent (5.0%) of their
0
annual salary plus an additional two and one-half percent
0
(2.5%) forthe spousal coverage benefit ifelected. The State
paid member contributions of five percent (5.0%) of the
0
member's annual salary. Additional employer contributions
0
are not actuarially determined but are provided on an asneeded basis to fund current benefits.
0
0
0
Employees' Retirement System of Georgia
0
0
Plan Description Employees' Retirement System of Georgia ("ERS") is a
0
single-employer, defined benefit pension plan established by
0
the Georgia General Assembly during the 1949 Legislative
0
. Session for the purpose of providing retirement allowances
for employees of the State of Georgia and its political
0
subdivisions. ERS is directed by a Board of Trustees and
0
has the powers and privileges ofa corporation. ERS issues a publicly available financial report that includes the
0
applicable financial statements and required supplementary
0
information. The report may be obtained at the ERS offices.
0
0
0
A-76
0
Notes to the Financial Statements
June 30, 2001
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 Section415. Beginning Ja.'luary l, 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.
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 of ten (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 multiplied by the applicable benefit factor. 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 cJeath. Death and disability benefits are also available through ERS.
Summary of Significant Accounting Policies The financial statements ofERS are prepared on the accrual basis of accounting. Contributions from the employer and members are recognized in the period in which the members provide services. Benefit and refund payments are recognized when due and payable in accordance with the
terms of the plan. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price.
Funding Policy Member contributions under the old plan are four percent (4.0%) ofannual compensation up to $4,200 plus six percent (6.0%) ofannual 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 and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan are one and one-fourth 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.
Annual Pension Cost The required contribution for 2001 was determined as part of the June 30, 2000, actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) seven percent (7%) investment rate of return, (b) projected salary increases due to inflation of three and onehalf percent (3.5%) per year, and (c) projected salary increases due to seniority/merit raises of one and seventenths percent (1.7%) to five and one-half percent (5.5%) per year. The actuarial value of assets was determined using techniques that smooth the effects ofshort-term volatility in the market value of investments over a five-year period. ERS' actuarial funding excess is being amortized as a level percentage of projected payroll on an open basis. The employer contributions are projected to liquidate the actuarial accrued funding excess within forty (40) years based upon the actuarial valuation at June 30, 2000.
Three-Year Trend Information for ERS (in thousands)
Fiscal
Year Ended
June 30
1998
$
1999
2000
Annual Pension Cost (APC)
286,794 304,461 302,332
Percentage
Net
ofAPC
Pension
Contributed
Obligation
100% s
0
100%
0
100%
0
A-77
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 16. Retirement Systems (continued)
Georgia Judicial Retirement System
Plan Description The Georgia Judicial Retirement System ("GJRS") is a system created to serve the members and beneficiaries ofthe Trial Judges and Solicitors Retirement Fund, the Superior Court Judges Retirement System and the District 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 1, 1998. All assets of the Predecessor Retirement Systems were transferred to GJRS as of July 1, 1998.
which the members provide services. Benefit and refund
0
payments are recognized when due and payable in
0
accordance with the terms of the plan. Investments are reported at fair value. Short-term investments are reported
0
at cost, which approximates fair value. Securities traded on
0
a national or international exchange are valued at the last
0
reported sales price.
0
Funding Policy
0
Members are required to contribute seven and one-half percent (7.5%) of their annual salary plus an additional two
0
and one-half percent (2.5%) if spousal benefit is elected.
0
Employer contributions are actuarially determined and approved and certified by the GJRS Board ofTrustees. The
0
State's contributions to GJRS for the years ending June 30,
0
2001, and 2000 were (in thousands) $1,113 and $1,666, respectively, and were equal to the required contributions
0
for each year.
0
0
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 judges 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. ERS issues a publicly available financial report that includes the fmancial statements and required supplementary information applicable to GJRS. The report may be obtained at the ERS offices.
Benefits The 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 minimumoften(lO) years of creditable service.
Retirement benefits paid to members are computed as sixtysix 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.
Summary of Significant Accounting Policies The fmancial statements of GJRS are prepared on the accrual basis of accounting. Contributions from the employer and members are recognized in the period in
Legislative.Retirement System
0
0
Plan Description
0
Organization and Purpose
0
Legislative Retirement System ("LRS") is a single-
0
employer, defined benefit plan established by the Georgia General Assembly in 1979 for the purpose of providing
0
retirement allowances for all members of the Georgia
0
General Assembly. LRS is administered by the ERS Board ofTrustees. ERS issues a publicly available financial report
0
that includes the applicable financial statements and required
0
supplementary information. The report may be obtained at
0
the ERS offices.
0
Benefits
0
A member's normal retirement is after eight (8) years of creditable service and attainment ofage sixty-five (65), or
0
eight (8) years of membership service (4 legislative terms)
0
and attainment of age sixty-two (62). A member may retire early and elect to receive a monthly retirement benefit after
0
completion of eight (8) years of membership service and
0
attainment of age sixty (60); however, the retirement benefit is reduced by five percent (5.0%) for each year the member
0
is under age sixty-two (62).
0
0
Upon retirement, the member will receive a monthly service
retirement allowance of $28 multiplied by the number of
0
years ofcreditable service reduced by age reduction factors,
0
ifapplicable. Death, disability, and spousal benefits are also available through the plan.
0
0
0
0
A-78
0
=---- '.,.., -:.. .,.
- .; .
Notes to the Financial Statements
June 30, 2001
Note 16. Retirement Systems (continued)
Summary of Significant Accounting Policies The financial statements ofLRS are prepared on the accrual basis of accounting. Contributions from the employer and members are recognized in the period in which the members provide services. Benefit and refund payments are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price.
Funding Policy Member contributions are eight and one-halfpercent (8.5%) of annual salary. The State pays member contributions in excess of four and three-folirths percent (4.75%) of annual compensation. Employer contributions are actuarially determined and approved and certified by the Board.
Annual Pension Cost The required contribution for 2001 was detennined as part ofthe June 30, 2000, actuarial valuation using the unit credit actuarial cost method. The actuarial assumptions included (a) seven percent (7%) investment rate ofreturn, and (b) three percent (3%) annual post-retirement cost-of-living adjustment. The actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value ofinvestments over a five-year period. LRS' actuarial funding excess is being amortized using the level dollar method on an open basis.
Three-YearTrend Information for LRS (in thousands)
Fiscal
Year Ended
June 30
1998
$
1999.
2000
Annual Pension Cost(APC}
164 84 22
Percentage
Net
ofAPC
Pension
Contributed
Obligation
126% $
0
108%
0
436%
0
Superior Court Judges Retirement Fund
Plan Description 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 ofGeorgia. 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. ERS issues a publicly available financial report that includes the financial statements and disclosures applicable to SCJRF. The report may be obtained at the ERS offices.
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 spousalbenefits are also available.
Summary of Significant Accounting Policies The financial statements of SCJRF are prepared on the accrual basis of accounting. Contributions from the employer and members are recognized in the period in which the members provide services. Benefit and refund payments are recognized when due and payable in accordance with the terms of the plan. Investments are reported at f~ir value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price.
Funding Policy Member contributions are five percent (5.0%) oftheir salary plus an additional two and one-half percent (2.5%) for the spousal coverage benefit ifelected. The State pays member contributions offive percent (5.0%) of the member's annual salary. Additional employer contributions are not actuarially determined but are provided on an as-needed basis to fund current benefits.
A-79
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 16. Retirement Systems (continued)
Regents Retirement Plan
Plan Description The Regents Retirement Plan, a single-employer defined contribution plan, is an optional retirement plan established and administered by the Board of Regents of the University System of Georgia (College and University Funds), under which it may purchase annuity contracts for the purpose of providing retirement and death benefits for eligible faculty and principal administrators.
Benefits Benefits depend solely on amounts contributed to the plan plus investment earnings. Benefits are payable to participating employees or their beneficiaries in accordance with the terms of the annuity contracts.
Funding Policy 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 8.81% 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. In 2001, employer and employee contributions were (in thousands) $39,648 and $22,340, respectively.
Significant Discretely Presented Component Units
Teachers' Retirement System ofGeorgia
Plan Description 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 ofTrustees comprised ofactive and retired members and ex-officio State employees is ultimately responsible for the administration ofTRS. TRS issues a publicly available financial report that includes the applicable financial statements and required supplementary information. The report may be obtained at the TRS offices.
On October 25, 1996, the Board created the Supplemental
0
Retirement Benefit Plan ofthe Georgia Teachers ("SRBP").
0
SRBP was established as a qualified governmental excess benefit plan in accordance with Section 415 of the Internal
0
Revenue Code ("IRC") as a portion ofTRS. The purpose of
0
the SRBP is to provide retirement benefits to employees
0
covered by TRS whose benefits are otherwise limited by
IRC Section 415. Beginning July 1, 1997, all members and
0
retired former members in TRS are eligible to participate in
0
the SRBP whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits.
0
0
Benefits A member is eligible for normal service retirement after
0
thirty (30) years of creditable service, regardless of age, or
0
after ten (10) years of service and attainment of age sixty (60). A member is eligible for early retirement after twenty-
0
five (25) years of creditable service.
0
0
. Normal retirement (pension) benefits paid to members are
equal to two percent (2.0%) ofthe average of the member's
0
tWo (2) highest paid consecutive years ofservice multiplied
0
by the nwnber of years of creditable service up to forty (40) years. Early retirement benefits are reduced by the lesser of
0
one-twelfth (1/12) of seven percent (7.0%) for each month
0
the member is below age sixty (60), or by seven percent (7.0%) for each year or fraction thereof by which the
0
member has less than thirty (30) years of service. It is also
0
asswned that certain cost-of-living adjustments, based on the CPI, will be made in future years. Retirement benefits are
0
payable monthly for life. Death, disability and spousal
0
benefits are also available.
0
Summary of Significant Accounting Policies
0
The financial statements ofTRS are prepared on the accrual
0
basis of accounting. Contributions from the employers and members are recognized in the period in which the members
0
provide services. Benefit and refund payments are
0
recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.
0
Short-term investments are rep()rted at cost, which
0
approximates fair value. Securities traded on a national or
0
international exchange are valued at the last reported sales
price.
0
0
Funding Policy TRS is funded by member and employer contributions as
0
adopted and amended by the Board of Trustees. Member
0
contributions are five percent (5%) of annual salary, and employer contributions are 11.29%, as required by the
0
annual actuarial valuation. The State's contributions to TRS
0
for the years ending June 30, 2001, and 2000 were (in thousands) $145,705 and $154,053, respectively, and were
0
equal to the required contributions for each year.
0
0
0
A-80
J:.,.
... ;..:. _~ '
Notes to the Financial Statements
June 30, 2001
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
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, 200 I
$
33,496,845
s
1,468,560
s
5,262,306
$
2,060,051
$
15,985,639
$
$
152,892
s
$
231,436
s
The value ofdonated commodities received and distributed is not reported as reveI?-ues 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 ofFederal Surplus Personal Property program for the purpose of distributing surplus properties made available by the General Services Administration to eligible institution5, 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, 2001, is not reported on the combined balance
sheet. The changes in Federal surplus personal property inventory during the fiscal year ended June 30, 2001, were as follows:
Balance July l, 2000 Additions
Property Received
Deductions Property Donated and Other Distributions
Balance June 30, 2001
$
3,552,733
6,167,674
s
9.720,407
6,908,210
s
2,812,197
A-81
0
0
0
Notes to the Financial Statements
0
June 30, 2001
0
Note 17. Nonmonetary Transactions (continued)
The Federal government provides food stamps to lowincome households. The amount offood stamps a household receives depends on the household's size and financial circwnstances. The Georgia Department of Hwnan 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 $501,825,342.
and life insurance programs. Employees who are eligible for
0
retirement or disability under the criteria established by the
0
Teachers Retirement System and who have at least ten years of service with the University System are eligible for these
0
postemployment health and life insurance benefits. The
0
University System pays the employer portion for group insurance for affected individuals. For the fiscal year ended
0
June 30, 2001, the University System recognized
0
expenditures of $37,246,809, which was net of participant contributions of $9, 111,141.
0
0
0
Note 19. Fund Deficits
0
Note 18. Postemployment Benefits
In addition to the pension benefits described in Note 16, the State ofGeorgia 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 ofeither the State ofGeorgia 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 ofthe Plan include provisions for incurred but not reported claims.
0
The following organizations had deficit balances at June 30, 2001.
0
0
Primary Government
0
Internal Service Funds.
0
0
Workers' Compensation Fund - At June 30, 2001, the Fund
0
had an unreserved retained earnings deficit of$39,525,45 l.
0
0
Significant Discretely Presented Component
0
Units
0
Proprietary Fund Types
0
0
Lake Lanier Islands Development Authority - At
June 30, 2001, the Authority had an unreserved retained
0
earnings deficit of$17,204,063.
0
0
As of June 30, 2001, there were 60,935 employees who had retired and were receiving postretirement health care benefits through the State Health Benefit Plan. For the fiscal year ended June 30, 2001, the State recognized expenditures of $200,368,341, which was net of retiree contributions of $77,240,601.
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 pennit employees of the University System eligible for retirement or that become permanently and totally disabled to continue as members of the group health
Note 20. Major Discretely Presented 0
Component Unit Condensed Financial 0
Statements
0
0
The condensed financial statements of the major discretely
0
presented component units of the State of Georgia reporting entity are presented below. "Major" component
0
units, for purposes of this presentation, have been
0
determined by giving consideration to each component units' significance relative to the other component units and
0
the nature and significance of its relationship to the primary
0
government. Condensed financial statements for all
0
norunajor discretely presented component units are
presented in the aggregate.
0
0
0
A-82
0
'f;Pi~: ~ "" ~.. .,;:_' l~ ":
~~rt
Notes to the Financial Statements June 30, 2001
Note 20. Major Discretely Presented Component Unit Condensed Financial Statements (continued)
ASSETS AND OTHER DEBITS Due from Primary Government Other Assets Property, Plant and Equipment (Net) Amount to be Provided for Retirement of
General Long-Term Debt
Total Assets and Other Debits
LIABILITIES Due to Primary Government Other Liabilities Bonds and Other Long-Term Liabilities Total Liabilities
EQUITY AND OTHER CREDITS Investment in Fixed Assets Fund Balances Reserved Unreserved Total Equity and Other Credits
Total Liabilities, Equity and Other Credits
Governmental Fund Types
Georgia
Georgia
. Education Georgia Public Regional
Authority Telecommunica- Transportation
(Schools) tions Commision Authority
Total
$
-$
-$
20,542 s
20,542
709,692
14,761,865
13,187,709
28,659,266
84,893,662
200,945
85,094,607
6,884,887
30,436
6,915,323
$
709,692 $ I06,540,414 $ 13,439,632 $ 120,689,738
$
-$
21 $
51,993 $
52,014
1,711,770
519,368
2,231, 138
5,920,593
5,920,593
$
0 $ 7,632,384 $
571,361 $ 8,203,745
s
- $ 84,893,662 $
200,945 $ 85,094,607
1,739,613
470,209
2,209,822
709,692
12,274,755
12,197,117
25,181,564
$
709,692 $ 98,908,030 $ 12,868,271 $ 112,485,993
$
709,692 $ 106,540,414 $ 13,439,632 $ 120,689,738
REVENUES
$
40,290 $ 13,524,062 $
762,756 $ 14,327,108
EXPENDITURES
$
0 $ 33,820,547 $ 4,254,113 $ 38,074,660
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES
$
Operating Transfers from Primary Government
EXCESS OF REVENUES AND OTHER FINANCING SOURCES
OVER EXPENDITURES
s
FUND BALANCES, JULY 1
FUND BALANCES, JUNE 30
$
40,290 $ (20,296,485) $ (3,491,357) $ (23,747,552)
26,712,428
8,350,097
35,062,525
40,290 $ 6,415,943 $ 4,858,740 $ 11.314.973
669,402
7,598,425
7,808,586
16,076,413
709,692 $ 14,014,368 $ 12,667,326 $ 27,391,386
A-83
0
~ia
0 0
Notes to the Financial Statements
0
June 30, 2001
0
Note 20. Major Discretely Presented Component Unit Condensed Financial Statements (continued)
0 0 0
0
Proprietary Fund Types
0
ASSETS Due from Primary Government Other Assets Restricted Assets Propeny, Plant and Equipment (Net)
Total Assets
LIABILITIES Due to Primary Government Other Liabilities Bonds and Other Long-Term Liabilities Total Liabilities
Environmental Housing and
Student
0
Facilities Authority
Finance Authority
Lottery Corporation
Ports Authority
Finance Authority
0
0
s 3,016,646 $
$
-$
-s
927,514,248
97,043,465
74,723,550
53,270,000 362,976,846
0
278,438
831,623 ,848 4,558,411
209,677,000 2,898,000
190,000 396,829,000
2,979, 135
0
s $ 930,809,332 $ 933,225,724 287,298,550 $ 450,289,000 $ 365,955,981
0
0
$
2,260 $
1,066 $
12,786 $
s 38,583
0
22,178,762 72,524,750
27,057,501 807,577,879
76,610,764 205,836,000
7,508,417 26.178,000
7,273,384 308, l 00,967
0
s $ 94,705,772 $ 834,636,446 $ 282,459,550 $ 33,725.000 315,374,351
0
EQUITY AND OTHER CREDITS Investment in Fixed Assets Contnbuted Capital Retained Earnings Reserved Unreserved Fund Balances Reserved Unreserved Total Equity and Other Credits
$
278,438 $
$
-$
-s
0
543,473,250
275,942,794
0
5,114,508
40,124,146
3,584,000
24.568,550
0
270,756,471
55,435,473
1,255,000 140,621,206
26,013,080
0
13,212,559
0
3,268,334
3,029,659
$ 836,I03,560 $ 98,589,278 $ 4,839,000 $ 416,564,000 s 50,581,630
0
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
$ 930,809,332 $ 933,225,724 $ 287,298,550 $ 450,289,000 $ 365,955,981
0
0
$
-$
s s 5,966,290 $ 2,093,811,000
97,778,000
1,523,647
0
0
24,414,220 $ 24,414,220 $
51,161,416
s 57,127,706 $ 2,093,811,000 $ 97.778,000
6,268,218 7,791,865
0
0
$
-$
538,489 $ 1,317,000 $ 16,447,000 $
503, l 68
0
1,139,002
61,150,999 1,407,042,000
69,371,000
49,109,845
s s $ 1,139,002 $ 61,689,488 $ 1,408,359,000
85,818,000
49,613.013
0
OPERATING INCOME (LOSS)
s $ 23,275,218 $ (4,561,782) $ 685,452,000 $ 11,960,000
(41,821,148)
0
Nonoperating Revenues/Expenses (Net) Capital Contnbutions
0
9,840,980
16,698,345
15,096,000
(8,486,000)
1,056.468
57,874,277
25,077,000
0
Operating Transfers to/from Primary Government NET INCOME (LOSS)
17,203,675 $ 108,194,150 $
(691,872,000)
(605,000)
38,854,145
12,136,563 $ 8,676,000 $ 27,946,000 $ (1,910,535)
0
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
0
EXPENDITURES FROM GOVERNMENTAL OPERATIONS AND
0
EXPENDABLE TRUST FUNDS
(15,465,162)
689,077
0
FUND EQUITY, JULY I Adjustments (Net)
808,153,953 (65,057,819)
85,763,638
(3,837,000) 388,618,000
52,492,165
0
Increase (Decrease) in Inventories
0
FUND EQUITY, JUNE 30
$ 835,825,122 $ 98,589,278 $ 4,839,000 $ 416,564,000 s 50,581,630
0
A-84
0
Georgia
Notes to the Financial Statements
June 30, 2001
Note 20. Major Discretely Presented Component Unit Condensed Financial Statements (continued)
(.-;.; .
.. -". 1
Geo L. Smith II
All Other
Georgia World Discretely Presented
Congress Center Proprietary
Authority
Fund Types
Total
$
-$
64,341,721
49,990,058 .
225,307,907
467,258 $ 3,483,904 306,212,571 1,886,082,401
30,090,183 l, 121,571,089 208,446,547 841,297,438
$ 339,639,686 $ 545,216,559 $ 3,852,434,832
$
37,929 $
33,757,921
199,885,446
$ 233,681,296 $
50,242 $
142,866
30,582,731 204,969,480
144,831,289 1,764,934,331
175,464,262 $ 1,970,046,677
$
-$
$
278,438
71,720,323 . 143,955,972 1,035,092,339
739,262 33,498,805
7,368,857 218,427,468
81,499,323 746,007,503
$ 105,958,390 $
13,212,559 6,297,993 369,752,297 $ 1,882,3 88, l 55
$ 339,639,686 $ 545,216,559 $ 3,852,434,832
$ 25,190,396 $
37,082,636 $ 62,273,032 $
60,388,374 $ 2,284,657,707
3,692,066
3,692,066
1,613,503
1,613,503
30,297.348 149,223,838
95,991,291 $ 2,439,187,114
$ 9,339,358 $ 56,172,928
$ 65,512,286 $
8,744,048 $ 36,889,063 90,666,389 1,734,652,163 99,410,437 $ l,771,541,226
$ (3,239,254) $ (3,419,146) $ 667,645,888
15,273,923 $ 12,034,669 $
(5,908,798) 43,570,918
2,618,152
85,569,429
69,365,637 (567,053,543)
62,655,845 $ 229,732,692
( 14,776,085)
93,885,893 37,828
328,583,287 (21,420,981)
(65,854)
1,753,659,936 (86,4 78,800) (28,026)
$ 105,958,390 $ 369,752,297 $ 1,652,944,219
A-85
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REQUIRED SuPPLEl\tfENTARY lNFORlv:IATION
0
0
0
0
0
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0
0
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. . . ._.,, - - - - - - - - - - - -
\. ~. '.-!"
Required Supplementary Information
June 30, 2001
Employees' Retirement System of Georgia
Schedule ofFunding Progress
(dollars in thousands)
Actuarial Valuation
Date
Actuarial Value of Plan Assets
(a)
Actuarial Accrued Liability ("AAL")Entry Age
(b)
Unfunded AAL/(Funding
Excess) (b-a)
6/30/98
$
8,613,575 $
9,093,758 $
6130199
9,848,723
9,695,614
6130100
10,999,901
10,573,408
480,183 (153,109) (426,493)
Funded Ratio (alb)
Annual Covered Payroll
(c)
94.7% $ 101.6% 104.0%
2,055,966 2,152,072 2,304,289
Unfunded AAL/(Funding
Excess) as a Percentage of Covered Payroll
((b-a)/c(
23.4% (7.1%) (18.5%)
A-89
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w. RUSSELL
HINTON
STATE AUDITOR
(404) 6562174
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, 2001, and have issued our report thereon dated March 15, 2002. This report was qualified for various departures from generally accepted accounting principles.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 7% of the assets and 15% of the revenues of the general fund, 100% of the assets and revenues of the capital projects funds, 90% of the assets and 98% of the revenues of the enterprise fund, 64% of the assets and 21 % of the revenues of the internal service funds, 67% of the assets of the fiduciary funds and 100% of the pension trust funds revenues, and 4% 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 aU<;tit certain discretely presented component units which represent 88% of the assets and 95% of the revenues of the component unit governmental fund types, 83% of the assets and 95% of the revenues of the component unit proprietary fund types and 98% of the assets and 99% of the revenues of the component unit fiduciary fund types. The financial statements of these organizations and component units were audited by other auditors whose reports have been furnished to us, and our report, insofar as it relates to the amounts included for those financial statements, is based solely upon the reports of the other auditors.
Compliance As part of obtaining reasonable assurance about whether the State of Georgia's financial statements are free of material misstatement, we and other auditors performed tests of its
~--------------------------------------~-------~----
----
0
0
0
0
compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement
0
amounts. However, providing an opinion on compliance with those provisions was not an
0
objective of our audit and, accordingly we do not express such an opinion. The results of our
0
and other auditors' tests disclosed the following instances of noncompliance that are required to
0
be reported under Government Auditing Standards and which is described in the Financial Statement sections of the accompanying schedule ofFindings and Questioned Costs.
0
0
(1) General Fixed Assets/Property Management
0
Inadequacies ill Operation of Property Management System
0
Various Organizations
0
FS-401-01-01
FS-467-01-02
FS-590-01-01
FS-8604-01-01
0
FS-408-01-03
FS-476-01-04
FS-819-01-02
FS-8664-01-01
0
FS-414-01-02
FS-503-01-01
FS-823-01-01
FS-8724-01-01
0
FS-427-01-01
FS-518-01-02
FS-830-01-01
FS-8764-01-01
0
FS-430-01-04 .
FS-521-01-01
FS-977-01-01
FS-8804-01-01
0
FS-440-01-03
FS-528-01-01
FS-8504-01-01
0
FS-462-01-01
FS-533-01-05
FS-8524-01-02
0
FS-466-01-05
FS-539-01-01
FS-8564-01-01
0
0
0
Internal Control Over Financial Reporting
0
In planning and performing our audit, we and other auditors considered the State of Georgia's internal control over financial reporting in order to determine our auditing procedures for the
0
purpose of expressing our opinion on the financial statements and not to provide assurance on
0
the internal control over financial reporting. However, we noted certain matters involving the
0
internal control over financial reporting and its operation that we consider to be reportable
0
conditions. Reportable conditions involve matters coming to our attention relating to significant
0
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
0
report financial data consistent with the assertions of management in the financial statements.
0
The following reportable conditions are described in the Financial Statement sections of the
0
accompanying schedule ofFindings and Questioned Costs.
0
(1) Accounting Controls (Overall)
0
Inadequate Controls Over the Design of the Local Area Network
0
FS-476-01-01 - Georgia Student Finance Commission
0
Inadequate Separation ofDuties
0
FS-476-01-02 - Georgia Student Finance Commission
0
FS-548-01-01 - Savannah State University
0
(2) Budget Preparation/Execution
0
Overexpenditure of Budget Unit Object Class
0
FS-472-01-02-Board of Regents of the University System of Georgia
0
FS-472-01-03 -Board of Regents of the University System of Georgia
0
0
B-4
0
(3) Cash and Cash Equivalents Inadequate Accounting Procedures FS-430-01-01 -Judicial Branch (Administrative Office of the Courts) FS-440-01-02 -Department of Labor FS-474-01-01 -Department ofRevenue FS-823-01-01 -Atlanta Technical College
(4) Revenue/Receivables/Receipts Deficiencies in the State Revenue Collections Fund (Overall) FS-474-01-02 -Department ofRevenue Deficiencies in the Income Tax Division Subsidiary Records FS-474-01-03 -Department ofRevenue Inadequate Accounting Procedures FS-518-01-01 - University of Georgia
(5) Expenditures/Liabilities/Disbursements Information Systems Not Accessible to Employees and Not Properly Documented FS-414-01-01 - Department of Education Inadequate Accounting Procedures FS-467-01-01 -Department of Corrections
(6) General Ledger Inadequate Accounting Procedures FS-408-01-01 - Department of Insurance FS-408-01-02 - Department of Insurance FS-427-01-02 -Department of Human Resources FS-466-01-04-Department ofPublic Safety FS-469-01-01 -Office of School Readiness FS-476-01-07 - Georgia Student Finance Commission FS-476-01-09- Georgia Student Finance Commission FS-484-01-01 - Department of Transportation
(7) General Fixed Assets/Property Management Inadequacies in Operation of Property Management System . Various Organizations
FS-401-01-01 FS-408-01-03 FS-414-01-02 FS-427-01-01 FS-430-01-04 FS-440-01-03 FS-462-01-01 FS-466-01-05
FS-467-01-02 FS-476.;01-04
FS-503~01-01
FS-518-01-02 FS-521-01-01 FS-528-01-01 FS-533-01-05 FS-539-01-01
FS-590-01-01 FS-819-01-02 FS-823-01-01 FS-830-01-01 FS-977-01-01 FS-8504-01-01 FS-8524-01-02 FS-8564-01-01
FS-8604-01-01 FS-8664-01-01 FS-8724-01-01 FS-8764-01-01 FS-8804-01-01
B-5
0
a
a
a
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
0
in amounts that would be material in relation to the financial statements being audited may occur
0
and not be detected within a timely period by employees in the normal course of performing their
0
assigned functions. Our consideration of the internal control over financial reporting would not
0
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
a
a
following items to be material weaknesses.
0
0
(1) Accounting Controls (Overall)
0
Inadequate Controls Over the Design of the Local Area Network FS-476-01-01 - Georgia Student Finance Commission
a a
(2) Cash and Cash Equivalents
0
Inadequate Accounting Procedures
0
FS-440-01-02 - Department of Labor FS-474-01-01 - Department of Revenue
0
0
(3) Revenue/Receivables/Receipts
0
Deficiencies in the State Revenue Collections Fund (Overall)
0
FS-474-01-02 - Department of Revenue Deficiencies in the Income Tax Division Subsidiary Records
FS-474-01-03 - Department of Revenue
0
a
0
(4) Expenditures/Liabilities/Disbursements
a
Information Systems Not Accessible to Employees and Not Properly Documented
0
FS-414-01-01 - Department of Education Inadequate Accounting Procedures
0
FS-467-01-01 - Department of Corrections
0
0
(5) General Ledger
0
Inadequate Accounting Procedures FS-408-01-01 - Department of Insurance
0
FS-469.-01-01 - Office of School Readiness
0
FS-476-01-07 - Georgia Student Finance Commission
a
FS-476-01-09 - Georgia Student Finance Commission
0
FS-484-01-01 - Department of Transportation
0
(6) General Fixed Assets/Property Management
0
Inadequacies in Operation ofProperty Management System
0
Various Organizations
a
a
0
0
0
0
0
B-6
0
.
FS-401-01-01 FS-408-01-03 FS-414-01-02 FS-427-01-01 FS-430-01-04 FS-440-01-03 FS-462-01-01 FS-466-01-05
FS-467-01-02 FS-476-01-04 FS-503-01-01 FS-518-01-02 FS-521-01-01 FS-528-01-01 FS-533-01-05 FS-539-01-01
FS-590-01-01 FS-819-01-02 FS-823-01-01 FS-830-01-01 FS-977-01-01 FS-8504-01-01 FS-8524-01-02 FS-8564-01-01
FS-8604-01-01 FS-8664-01-01 FS-8724-01-01 FS-8764-01-01 FS-8804-01-01
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.
r=. _.\ . Respectfully submitted, ~~Ow ~-<t:T:.....-,~ Ru ell W. Hinton, CPA, CGFM . State Auditor
March 15, 2002
B-7
RussELL W. H1NTON
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 ofthe State of Georgia
Compliance We have audited the compliance of the State of Georgia with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs forthe year ended June 30, 2001. The State of Georgia's major federal programs are identified in the summary of auditor's results section of the accompanying schedule ofFindings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each ofits major federal programs is the responsibility of the State ofGeorgia's management. Our responsibility is to express an opinion on the State ofGeorgia's compliance based on our audit. We did not audit the following major federal programs or percentages of federal programs:
CFDA NO. 66.458 66.468 93.767
PROGRAM NAME Capitalization Grants for State Revolving Ftmds Capitalization Grants for Drinking Water State Revolving Fund State Cln1dren's Insurance Program Medicaid Cluster Student Financial Aid Cluster Research and Development Cluster
%AUDITEDBY OTHER AUDITORS
99% 100"/o 100% 99% 82% 86%
MONETARY EXPENDITURES
$39,780,228 $9,437,265
$68,693,035 $2,957,578,570
$430,236,411 S300,684,970
NONMONETARY EXPENDITURES
$278, 788,630 $17,320,608
so so
$1,641,432,385
so
The programs listed above were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to compliance requirements for these programs, is based solely upon the reports of the other auditors.
0
0
0
0
Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to
0
financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe 0
United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit 0
Organizations: Those standards and OMB Circular A-133 require that we plan and perform the audit to 0
obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements 0
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
0
requirements and performing such other procedures as we considered necessary in the circumstances.
0
We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal 0
determination of the State of Georgia's compliance with those requirements.
0
0
Other auditors were unable to obtain sufficient documentation supporting compliance for the Research and Development Cluster at the Georgia Institute of Technology with requirements governing cash
0
management; Davis-Bacon Act; matching, level of effort, earmarking; period ofavailability of federal 0
funds; program income; reporting; and subrecipient monitoring that are applicable to contract nos. 0
XXXXXX-98-C-8094, XXXXXX-98-C-8121 and XXXXXX-978089, 89-5576 and 99-3768 ofthe U.S. 0
Department of Defense as these contracts and all matters pertaining to them are classified by the U. S. 0
Department of Defense, and other auditors did not have security clearance to perform any procedures with respect to these contracts; nor were other auditors able to satisfy themselves as to the Georgia
0
Institute ofTechnology's compliance with the aforementioned requirements with respect to contract nos.
0
XXXXXX-98-C-8094, XXXXXX-98-C-8121 and XXXXXX-978089, 89-5576 and 99-3768 by other 0
auditing procedures.
0
0
As described in finding number FA-427-01-01 in the accompanying schedule of Findings and Questioned Costs, the State of Georgia did not comply with requirements regarding Eligibility that is
0
applicable to the Temporary Assistance for Needy Families (TANF) program. Compliance with such 0
requirements is necessary, in our opinion, for the State of Georgia to comply with requirements 0
applicable to this program.
0
0
As described in finding number FA-427-01-03 in the accompanying schedule of Findings and Questioned Costs, the State of Georgia did not comply with requirements regarding Eligibility that is
0
applicable to the Food Stamp Cluster program. Compliance with such requirements is necessary, in our 0
opinion, for the State of Georgia to comply with requirements applicable to this program.
0
0
As described in finding number FA-548-01-02 in the accompanying schedule of Findings and
0
Questioned Costs, the State of Georgia did not comply with requirements regarding Allowable Costs/Cost Principles that is applicable to the Higher Education - Institutional Aid program. Compliance
0
with such requirements is necessary, in our opinion, for the State of Georgia to comply with
0
requirements applicable to this program.
0
0
In our opinion, based on our audit and the reports ofother auditors, except for the effects ofthe matters
0
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
0
ended June 30, 2001. However, the results of our and other auditors' auditing procedures disclosed the
0
following instances of noncompliance with those requirements, which are required to be reported in 0
accordance with O:MB Circular A-133 and which are described in the Federal Awards sections of the 0
0
C-4
0
.
"~
accompanying schedule of Findings and Questioned Costs.
Activities Allowed or Unallowed FA-548-01-01 FA-818-01-01
Allowable Costs/Cost Principles FA-548-01-03
FA~8524-01-01
Cash Management FA-521-01-01 FA-533-01-01 FA-8524-01-02
Eligibility FA-427-01-02 FA-533-01-02 FA-533-01-03 FA-533-01-04 FA-548-01-04
Equipment and Real Property Management FA-414-01-01 FA-427-01-04 FA-484-01-01 F A-548-01-05
Matching, Level of Effort, Earmarking FA-527-01-01 FA-818-01-01
Reporting FA-419-01-01 FA-503-01-02 FA-503-01-03 FA-503-01-04 FA-503-01-05 FA-518-01-01 FA-518-01-02 FA-533-01-05 FA-550-01-06 FA-561-01-01 FA-9f8-01-01 FA-918-01-03
Subrecipients Monitoring FA-414-01-02 FA-414-01-03 FA-469-01-01
Special Tests and Provisions FA-548-01-06 FA-548-01-07
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 of laws, regulations, contracts ~d grants applicable to federal programs. We did not consider the internal control structures applicable to the federal programs listed in the table in paragraph one. Those internal control structures were considered by other auditors whose reports have been furnished to us. Our report, insofar as it relates to the internal control structures used in administering federal programs ofthe organizations mentioned previously is based solely upon the reports ofthe other auditors.
In planning and performing our audit, we and other auditors considered the St~te 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 A-133 .
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 ofthe accompanying schedule ofFindings and Questioned Costs.
C-5
0
0
0
0
Activities Allowed or Unallowed Equ'ipment and Real Property
0
FA-548-01-01 FA-818-01-01.
Management FA-414-01-01
Subrecipients Monitoring FA-414-01-02
0
FA-427-01-04
FA-414-01-03
0
Allowable Costs/Cost Principles FA-548-01-02 FA-548-01-03
FA-484-01-01 FA-548-01-05
FA-469-01-01
0
Special Tests and Provisions
0
FA-8524-01-01
Matching, Level of Effort,
FA-548-01-06
0
Earmarking
FA-548-01-07
Cash Management
FA-527-01-01
0
FA-521-01-01
FA-818-01-01
0
FA-533-01-01 FA-8524-01-02
Reporting
0
FA-419-01-01
0
Eligibility FA-427-01-01
FA-503-01-02 FA-503-01-03
0
FA-427-01-02
FA-503-01-04
0
FA-427-01-03 FA-533-01-02
FA-503-01-05 FA-518-01-01
0
FA-533-01-03
FA-518-01-02
0
FA-533-01-04
FA-533-01-05
0
FA-548-01-04
FA-550-01-06
FA-561-01-01
0
FA-918-01-01
0
FA-918-01-03
0
A material weakness is a condition in which the design or operation of one or more of the internal 0 control components does not reduce to a relatively low level the risk that noncompliance with applicable 0 requirements of laws, regulations, contracts and grants that would be material in relation to a major 0
federal program being audited may occur and not be detected within a timely period by employees in the 0
normal course of performing their assigned functions. Our consideration of the internal control over 0
compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disdose all reportable conditions that are also
0
considered to be material weaknesses. However, of the reportable conditions described above, we 0
consider finding numbers FA-427-01-01, FA-427-01-03, FA-548-01-02 to be material weaknesses.
0
0
This report is intended solely for the information and use ofmanagement, federal awarding agencies and 0
pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
0
0
. Respectfully submitted,
0
1A?4..::k:-
0 0
Ru ell W. Hinton, CPA, CGFM
0
State Auditor
0
0
March 15, 2002
0
0
0
0
C-6
0
.
. ..... . . .
~y OF ADDI'IOR'S RESULTS
..)
'
Summary of Auditor's Results For the Fiscal Year Ended June 30, 2001
Financial Statements
Type of auditor's report issued:
Qualified
Internal control over financial reporting:
Reportable Condition identified?
Yes
Reportable Conditions identified considered to
be material weaknesses?
Yes
Noncompliance material to financial 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 .510(a)?
Yes
Identification of major programs:
CFDA Numbers
12.401 17.245 17.253 17.255
66.458 66.468 83.544 83.548
84.010
84.031 84.048 84.126 93.558 93.568
93.658 93.659 93.767
93.917
Name of Federal Program or Cluster Food Stamp Cluster National Guard Military Operations and Maintenance (O&M) Projects Trade Adjustment Assistance - Workers Welfare-to-Work Workforce Investment Act Highway Planning and Construction Cluster Capitalization Grants for States Revolving Funds Capitalization Grants for Drinking Water State Revolving Fund Public Assistance Grants Hazard Mitigation Grant Student Financial Aid Cluster Title I Grants to Local Education Agencies Special Education Cluster Higher Education - Institutional Aid Vocational Education - Basic Grants to States Rehabilitation Services - Vocational Rehabilitation Grants to States Temporary Assistance for Needy Families Low-Income Home Energy Assistance Child Care and Development Cluster Foster Care-Title IV-E Adoption Assistance State Children's Insurance Program Medicaid Cluster HIV Care Formula Grants Research and Development Cluster
Dollar threshold used to distinguish between Type A and Type B programs - $25,179,383.00
Auditee Qualified as low-risk auditee
No D-5
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FINANCIAL lliATElv1ENT FrNDIN~
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Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FINANCIAL STATEMENT RELATED FINDINGS REQUIRED TO BE REPORTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
FINDING CONTROL NO.
ORGANIZATIONAL UNIT
PAGE NO.
ACCOUNTING CONTROLS (OVERALL)
FS-476-01-01
Student Finance Commission, Georgia ................................................................ D-24
FS-476-01-02
Student Finance Commission, Georgia ................................................................ D-25
Colleges and Universities
FS-548-01-01
Savannah State University .............................................................................. D-35
BUDGET PREPARATION/EXECUTION
FS-472-01-02
Regents of the University System of Georgia, Board of ...................................... D-21
FS-472-01-03
Regents of the University System of Georgia, Board of ...................................... D-21
CASH AND CASH EQUIVALENTS
FS-430-01-01
Judicial Branch ..................................................................................................... D-14
FS-440-01-02
Labor, Department of ........................................................................................... D-15
FS-474-01-01
Revenue, Department of....................................................................................... D-22
Technical Colleges
FS-823-01-01
Atlanta Technical College ............................................................................... D-36
REVENUES/RECEIVABLES/RECEIPTS
FS-474-01-02
Revenue, Department of....................................................................................... D-22
FS-474-01-03
Revenue, Department of....................................................................................... D-24
Colleges and Universities
FS-518-01-01
University ofGeorgia ...................................................................................... D-32
EXPENDITURES/LIABILITIES/DISBURSEMENTS
FS-414-01-01
Education, Department of..................................................................................... D-12
FS-467-01-01
Corrections, Dej>artment of ..................................................................................D-17
GENERAL LEDGER FS-408-01-01 FS-408-01-02 FS-427-01-02 FS-466-01-04 FS-469-01-01 FS-476-01-07 FS-476-01-09 FS-484-01-01
Insurance, Department of ..................................................................................... D-11 Insurance, Department of ..................................................................................... D-12 Human Resources, Department of........................................................................ D-14 Public Safety, Department of................................................................................ D-16 School Readiness, Office of .............................................................'.................... D-19 Student Finance Commission, Georgia ................................................................ D-26 Student Finance Commission, Georgia ................................................................ D-29 Transportation, Department of.............................................................................. D-31
GENERAL FIXED ASSETS/PROPERTYMANAGEMENT
FS-401-01-01
Administrative Services, Department of .............................................................. D-11
FS-408-01-03
Insurance, Department of ..................................................................................... D-12
FS-414-01-02
Education, Department of..................................................................................... D-13
FS-427-01-01
Human Resources, Department of....................:................................................... D-13
FS-430-01-04
Judicial Branch ..................................................................................................... D-15
FS-440-01-03
Labor, Department of ........................................................................................... D-15
FS-462-01-01
Natural Resources, Department of........................................................................ D-16
FS-466-01-05
Public Safety, Department of................................................................................ D-17
FS-467-01-02
Corrections, Department of .................................................................................. D-18
D-9
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0
Findings and Questioned Costs
0
For the Ascal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT RELATED FINDINGS REQUIRED TO BE REPORTED IN
0
ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS
0
FINDING CONTROL NO.
ORGANIZATIONAL UNIT
PAGE
0
NO.
0
FS-476-01-04
FS-503-01-01
FS~518-01-02
FS-521-01-01 FS-528-01-01 FS-533-01-05 FS-539-01-01 FS-590-01-01
FS-819-01-02 FS-823-01-01 FS-830-01-01 FS-977-01-01
FS-8504-01-01 FS-8524-01-02 FS-8564-01-01 FS-8604-01-01 FS-8664-01-01 FS-8724-01-01 FS-8764-01-01 FS-8804-01-01
0
Student Finance Commission, Georgia ................................................................ D-26 Colleges and Universities
0
Georgia Institute ofTecbnology...................................................................... 0-31
0
University ofGeorgia...................................................................................... 0-32 Albany State University .................................................................................. D-33
0
Clayton College and State University ............................................................. D-33
0
Fort Valley State University............................................................................ 0-34 Georgia Southern University ........................................................................... D-34
c
Georgia Military College ................................................................................ D-35
0
Technical Colleges West Georgia Technical College..................................................................... 0-36
0
Atlanta Technical College ............................................................................... 0-36
0
DeKalb Technical College .............................................................................. 0-37 Public Telecommunications Commission, Georgia.............................................. 0-37
0
Regional Educational Service Agencies
0
Northwest Georgia Regional Educational Service Agency............................. 0-38 North Georgia Regional Educational Service Agency .................................... 0-38
0
Metropolitan Regional Educational Service Agency ...................................... 0-38
0
West Georgia Regional Educational Service Agency ..................................... 0-39 Oconee Regional Educational Service Agency ............................................... 0-39
0
Chattahoochee-Flint Regional Educational Service Agency........................... 0-39
0
Heart of Georgia Regional Educational Service Agency ................................ 0-40
0
First District Regional Educational Service Agency ....................................... 0-40
0
0
0
0
0
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0
0
0
0
0
0
0
0
0
0
0
D-10
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Georg1.a
Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
DEPARTMENT OF ADMINISTRATIVE SERVICES
Finding Control Number: FS-401-01-01 GENERAL FIXED ASSETS/PROPERTY 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.
One-thousand-six-hundred-seventy-one (1,671) equipment items were selected to test the accuracy of the Department's property management records. These items contained a value of $10,784,227.13 out of a population of $79,199,673.80 and were selected for the purpose of locating the equipment as recorded in the inventory records. The following deficiencies were noted:
(1) Four-hundred-sixty (460) items totaling $1,359,710.59 could not be located.
(2) Seventeen (17) items totaling $240,095.91 were surplused, but were not removed from the equipment inventory records.
Also, during the physical inspection testing, seventeen (17) 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 State laws and regulations. The discrepancies identified were caused by the Department's failure to follow guidelines for maintaining equipment inventories .
Failure to maintain accurate equipment inventory records causes internal reports to management to be misleading and can result in erroneous decisions by management concerning current and future equipment needs.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with State laws and regulations.
DEPARTMENT OF INSURANCE
Finding Control Number: FS-408-01-01 GENERAL LEDGER Inadequacies in Control Over Accounts Payable
Our examination included a review of the internal accounting controls and procedures utilized by the Department of Insurance in recording adjustments to the various modules comprising the statewide Phoenix accounting system. Our testing revealed that, at June 30, 2001, the Department's general ledger balance for accounts payable did not balance with the outstanding accounts payable as reflected in the accounts payable (subsidiary) module. This condition resulted because numerous prior year carry-over balances remained on the general ledger module without peing recorded in the accounts payable module. As a result, numerous reconciling items existed at June 30, 2001. These reconciling items occurred because, in many cases, the Department used manual journal vouchers, which are posted only to the general ledger, instead of adjustment vouchers, which are posted directly to the modules and automatically update the general ledger. The Department was unable to provide the necessary documentation to support all reconciling items.
Management's failure to ensure that subsidiary modules are in balance with the general ledger module causes internal reports to management, generated from the subsidiary modules, to be inaccurate and misleading. This condition can lead to erroneous decisions by the Department's management as well as by the State of Georgia's executive decision makers.
D-11
0
0
0
Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
To ensure accurate and timely reporting of financial information from subsidiary modules, the Department of Insurance should consider using adjustment vouchers rather than manual journal entries to the extent possible as a matter of routine.
0
This will allow the natural flow of the subsidiary modules into the general ledger module to correct adjustments to the
0
accounting records that are determined to be necessary. The Department should also ensure that adequate supporting documentation is maintained for all adjustments and reconciling items.
0
0
Finding Control Number: Fs-408-01-02 GENERAL LEDGER
0
Ending Balances in Balance Sheet Clearing Accounts
0
Our examination included a review of the internal accounting controls and procedures utilized by the Department of
0
Insurance in recording adjustments to the various modules comprising the statewide Phoenix accounting system Our
0
testing revealed that, at June 30, 2001, the Department's general ledger module contained ending balances in the balance sheet clearing accounts. These clearing accounts have been provided in the State Chart of Accounts to facilitate the
0
accumulation of transactions which are subsequently distributed to appropriate accounts. At June 30, no balances should
0
remain in clearing accounts.
0
Management's failure to ensure that these accounts do not have balances at the end of the year can materially misstate the
0
financial statements of the Department and can lead to erroneous decisions by the Department's management as well as by
0
the State of Georgia's executive decision makers.
0
The Department should ensure that clearing account balances have been distributed to appropriate accounts at the end of
0
each accounting period and that no balances remain in the clearing accounts at fiscal year end.
0
Finding Control Number: FS-408-01-03
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
0
0
Our examination included a review of the internal accounting controls utilized by the Department of Insurance in maintaining their State Property System and also included testing the system for compliance with State laws and
0
regulations. The following conditions relating to inappropriate accounting practices were found to exist: .
0
(1) Equipment additions were not reconciled to the general ledger expenditure accounts.
0
0
(2) Equipment inventory records for additions were updated incorrectly. Limited testing of current year additions revealed that current year equipment purchases were added to the equipment inventory records
0
twice, overstating the Equipment Inventory by the amount of$422,122.06.
0
The Department is required to maintain equipment inventories in accordance with provisions of State laws and regulations.
0
The discrepancies identified were caused by the Department's failure to follow guidelines for maintaining equipment
0
inventories.
0
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in
0
accordance with State laws and regulations.
0
DEPARTMENT OF EDUCATION
0
0
Finding Control Number: Fs-414-01-01 EXPENDmJRES/LIABILITIES/DISBURSEMENTS
0
Information Systems Not Accessible to Employees and Not Properly Documented
0
The Department of Education allocates funding to local school systems based on a funding formula established by the
0
Quality Basic Education (QBE) Act. These QBE allocation calculations are both technical and complex. This complexity
0
D-12
0
. .......
Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
was greatly increased with the passage of House Bill 1187 (Education Reform Act). Allotment. allocations are now required to be calculated for individual schools rather than at the local school system level. Currently, an independent contractor employed by the Department is performing the allocation calculations. The basis for these QBE calculations is written in programmer's language by the independent contractor. The Department has not required the contractor to develop a software program for Department personnel to use or an operating manual docwnenting the methodology utilized for the QBE calculations. As a result, no Department employees are able to access the allocation calculations. Department personnel maintain parallel data at the system level to have some assurance of the reliability of the data produced by the independent contractor. However, Department personnel are not able to compute allocations at the school level as now required by State law.
Failure to require the independent contractor to develop both a software program to be used by Department personnel and an operations manual could result in loss of QBE allocation data or a misallocation of QBE funds to school systems.
The Department of Education should review their operating procedures in relation to independent contractors to ensure that critical Department functions are not interrupted. Specifically, the QBE allocation and payment system should be made accessible to applicable Department personnel and properly documented.
Finding Control Number: FS-414-01-02 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination included a review of the internal accounting controls utilized by the Department of Education in maintaining their 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, finding control number FA-414-01-01.
The Department is required to maintain equipment inventories in accordance with provisions of State laws and regulations. The discrepancies identified were caused by the Department's failure to follow guidelines for maintaining equipment inventories .
Failure to maintain accurate equipment inventory records causes internal reports to management to be misleading and can result in erroneous decisions by management concerning current and future equipment needs.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with State laws and regulations.
DEPARTMENT OF HUMAN RESOURCES
Finding Control Number: FS-427-01-01 GENERAL FIXED ASSETS/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 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, finding number FA-427-01-04.
The Department is required to maintain equipment inventories in accordance with provisions of State laws and regulations. The discrepancies identified were caused by the Department's failure to follow guidelines for maintaining equipment inventories .
Failure to maintain accurate equipment inventory records causes internal reports to management to be misleading and can result in erroneous decisions by management concerning current and future equipment needs.
D-13
0
0
0
Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with State laws and regulations.
0
0
Finding Control Number: FS-427-01-02 GENERAL LEDGER
0
Inadequate Accounting Procedures
0
During the period under review, the accounting procedures of the Department of Human Resources were not sufficient to
0
provide for adequate controls over the Agency's general ledger for employee compensation expenses. The following
0
deficiencies were noted:
0
(1) Reconciliations from the general ledger to the module were not performed in a. timely manner.
0
Reconciliations should be performed before payroll is released for distribution. (2) Reconciliations provided by the Agency for the period under review contained unidentified amounts.
0
(3) Unidentified amounts remained in the balance sheet clearing accounts at.June 30, 2001. These clearing
0
accounts have been provided in the State Chart of Accounts to facilitate tli.e accumulation of transactions which are subsequently distributed to appropriate accounts. At June 30, no balances should remain in the
0
clearing accounts.
0
0
The Department should ensure that procedures are in place to complete reconciliations appropriately and that clearing
account balances have been distributed to appropriate accounts at the end of each accounting period and that no balances
0
remain in the clearing accounts at fiscal year end.
0
JUDICIAL BRANCH
0
0
Finding Control Number: FS-430-01-01 CASH AND CASH EQUIVALENTS
0
Inadequate Accounting Procedures
0
Administrative Office of the Courts
0
Our examination of the accounting records of the Judicial Branch - Administrative Office of the Courts disclosed
0
deficiencies in the management of cash assets as follows:
0
(1) The June 30, 2001, bank reconciliations were not prepared timely for the two bank accounts maintained:
0
Wachovia - General Operating Account and Wachovia - Payroll Account.
0
(2) Reconciling items identified during the bank reconciliation process were not corrected in a timely
0
manner. As of June 30, 2001, reconciling items of $368,045.57 on the General Operating Account and
0
$272,691.96 on the Payroll Account dating from August 1998 had not been corrected.
0
(3) Reconciling items were inadequately documented and/or identified in the two bank reconciliations.
0
These deficiencies were a result of the Administrative Office of the Courts' failure to adequately manage cash assets of the
0
Agency.
0
The Administrative Office of the Courts should establish procedures to ensure that monthly bank statements are reconciled
0
with the accounting records on a timely basis.
0
0
0
0
0
D-14
0
Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
Finding Control Number: FS-430-01-04 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacy in Operation of Property Management System Superior Courts - Department of Administrative Services
Our review of the General Fixed Assets/Property Management System of the Judicial Branch - Superior Courts/Department of Administrative Services disclosed the Superior Courts/Department of Administrative Services did not maintain an equipment inventory at June 30, 2001.
The Department is required to ma'intain an inventory in accordance with provisions of State laws and regulations.
The condition was caused by the Department's failure to follow guidelines for maintaining equipment inventory.
The Superior Courts/Department of Administrative Services should establish procedures to ensure that equipment inventory records are maintained in accordance with State laws and regulations.
DEPARTMENT OF LABOR
Finding Control Number: FS-440-01-02 CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures
The accounting procedures for the Georgia Department of Labor were inadequate to provide for adequate internal control over the bank reconciliation process. The following deficiencies and inappropriate practices were found to exist:
1) Bank reconciliations for the payroll account were not prepared in a timely manner for fiscal year 2001. A review of bank reconciliations indicated excessive delays between the month end and reconciliation dates. All reconciliations for fiscal year 2001 had not been completed as of the conclusion of fieldwork. This delay was caused by the Department's failure to adequately monitor the bank reconciliation process.
2) Bank reconciliations for the operating account and the benefit account contained several unidentified variances. It could not be determined if the variances were actually book or bank errors. The variances were carried as reconciling items for several months without resolution. The unidentified variances were allowed to continue due to the Department's failure to implement adequate internal controls to ensure that all reconciling items are identified and prompt action is taken to correct these items. Administrative reviews should be performed and documented to ensure reconciliations' are accurate and adjustments are made in a timely manner.
The Department of Labor should establish the necessary internal controls to ensure that the bank reconciliation process is being performed in a timely and complete manner.
Finding Control Number: FS-440-01-03 GENERAL FIXED ASSETS/PROPERTY 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 property management system. This review also included testing the system for compliance with State laws and reglliations. A deficiency was noted in that equipment additions were not reconciled to the general ledger expenditure accounts .
The Department is required to maintain equipment inventories in accordance with provisions of State laws and regulations. The deficiency identified was caused by the Department's failure to follow guidelines for maintaining equipment inventories .
D-15
0
0
0
Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
Failure to maintain accurate equipment inventory records causes internal reports to management to be misleading and can result in erroneous decisions by management concerning current and future equipment needs.
0
0
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with State laws and regulations.
0
0
DEPARTMENT OF NATURAL RESOURCES
0
Finding Control Number: FS-462-01-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
Our examination included a review of the internal accounting controls utilized by the Department of Natural Resources in
0
maintaining their State Property System and also included testing the system for compliance with State laws and
regulations. This review revealed that equipment additions were not reconciled to the general ledger expenditure accounts.
0
0
In addition, eight hundred ninety-two (892) equipment items were selected to test the accuracy of the Department's property management records. These items contained a value of$3,077,517.26 out ofa population of$71,590,588.76 and
0
were selected for the purpose of locating the equipment as recorded in the inventory records. The following deficiencies
0
were noted:
0
(1) Forty-nine (49) items totaling $143,665.40 were surplused, but were not removed from the equipment
0
inventory records.
0
(2) Seventeen (17) items totaling $37,610.54 could not be located.
0
(3) Thirty-nine (39) items were transferred to another location, but the inventory records were not updated to
0
reflect this change in location.
0
Also, during the physical inspection testing, four (4) items of equipment were located which were not included in the
0
equipment inventory records.
0
The Department is required to maintain equipment inventories in accordance with provisions of State laws and regulations.
0
The discrepancies identified were caused by the Department's failure to follow guidelines for maintaining equipment
0
inventories.
0
Failure to maintain accurate equipment inventory records may result in misleading internal reports to management, and can
0
result in erroneous decisions concerning current and future equipment needs. The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with State laws and
0
regulations.
0
0
DEPARTMENT OF PUBLIC SAFETY
0
Finding Control Number: FS-466-01-04
0
GENERAL LEDGER Ending Balances in Balance Sheet Clearing Accounts
0
0
Our examination included a review of the internal accounting controls and procedures utilized by the Department of Public Safety in recording adjustments to various modules comprising the statewide Phoenix accounting system. Our testing
0
revealed that, at June 30, 2001, the Department's general ledger module contained ending balances in the balance sheet
0
clearing accounts. These clearing accounts have been provided in the State Chart of Accounts to facilitate the accumulation of transactions which are subsequently distributed to appropriate accounts. At June 30, no balances should
0
remain in the clearing accounts.
0
D-16
0
Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
Management's failure to ensure that these accounts do not have balances at the end of the year can materially misstate the financial statements of the Department and can lead to erroneous decisions by the Department's management as well as by the State of Georgia's executive decision makers.
The Department should ensure that clearing account balances have been distri,buted to appropriate accounts at the end of each accounting period and that no balances remain in the clearing accounts at fiscal year end.
Finding Control Number: FS-466-01-05 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination included a review of the internal accounting controls utilized by the Department of Public Safety 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 inventory records for additions were updated incorrectly. Testing of current year additions revealed two additions that had been updated incorrectly onto the equipment inventory records by the amount of $81,200.75 (net).
In addition, three-hundred-twenty-seven (327) equipment items were selected to test the accuracy of the Department's .property management records. These items contained a value of$2,129,848.98 out ofa population of$45,526,101.96 and were selected for the purpose oflocating the equipment as recorded in the inventory records. The following deficiency was noted:
Fifty-six (56) items totaling $124,790.82 could not be located.
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 State laws and regulations. The discrepancies identified above were caused by the Department's failure to follow guidelines for maintaining equipment inventories .
Failure to maintain accurate equipment inventory records causes internal reports to management to be misleading and can result in erroneous decisions by management concerning current and future equipment needs.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with State laws and regulations.
DEPARTMENT OF CORRECTIONS
Finding Control Number: FS-467-01-01 EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures
Our examination included a review of the internal accounting controls and accounting procedures utilized by the Department of Corrections (Department) in processing expenditures for the Health Services Purchases object class. This object class captures health services expenditures for the State's inmate population. Total expenditures of Health Services Purchases contracts within this object class for fiscal year 2001 amounted to $115,570,128.36. The Department failed to maintain written policies and procedures related to the processing and approval of vendors' invoices for this object class. The lack of written policies and procedures resulted in the following deficiencies and inappropriate accounting practices:
D-17
0
0
0
Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
1) The Department's Health Services Division (Division) did not provide for adequate segregation of employee duties in the performance of responsibilities for invoice processing/preparation and
0
responsibilities for purchase order/voucher payment approval.
0
2) An employee of the Division (now retired) prepared computer spreadsheets in an effort to review vendor
0
invoices and supporting documentation submitted for payment. We were unable to determine if the
0
complex calculations and supporting data prepared by this employee was approved by management to indicate that contract and amendment agreements were being met.
0
0
3) The review of invoice documentation requires the corroboration of many preapproved Department forms, inmate sundown counts or other documentation provided by vendors. We were unable to determine
0
whether such documentation was approved by Division officials before being used to process
0
expenditures.
0
4) There was no indication that vendor invoice, supporting data and Division employee worksheets were
0
extended and footed to check for mathematical accuracy.
0
5) We were unable to determine how the Division protected the computer spreadsheets, which were used to
0
compile data and process vendor payment computations, from unauthorized use or tampering.
0
6) We were unable to determine how the Division tracked progress payments under long-term contracts for
0
health services.
0
7) The Division failed to maintain a current list of individuals authorized to approve supporting data
0
submitted by the vendor in conjunction with an invoice (for example; sundown counts, payroll records,
0
doctors, doctor hours worked).
0
8) The Division could not document whether vendor invoices containing medical services were reviewed by
0
a Division employee with experience in the medical field.
0
9) Certain payments to the vendor are charged to one facility for accounting purposes and then distributed
0
to other facilities on a monthly basis. The Division could not document that appropriate staff reviewed this process.
0
0
10) The discovery and resolution process for errors or misstatements performed by the Division's administrative personnel was not documented.
0
0
These deficiencies were a result of the Department's failure to adequately establish clear written policies and procedures over the Health Services Purchases object class and could result in erroneous payments to the vendor, misstatements in the
0
financial statements going undetected, and inconsistencies in the review and approval process over vendor invoices.
0
The Department should establish the necessary policies and procedures to ensure there are adequate internal controls over
0
contracts for health services for the State's inmate population.
0
Finding Control Number: FS-467-01-02
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in the Operation of Property Management System
0
Our examination included a review of the accounting system utilized by the Department of Corrections in maintaining their
0
State Property System and also included tests of the system for compliance with State laws and regulations. The following
0
conditions were noted as a result of our testing:
0
1) Equipment additions were not reconciled to the general ledger expenditure accounts.
0
D-18
0
:,._/,J,;.,
Findings and Questioned Costs For the Rscal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
2) Equipment inventory records were not updated for all additions. Testing of thirty (30) current year additions totaling $1,334,792.72 out of a population of $9,453,303.17 revealed six (6) current year equipment purchases totaling $285,679.80 had not been entered onto the equipment inventory records as ofJune 30, 2001.
In addition, a sample of three-hundred (300) equipment items was selected to test the accuracy of the Department's property management records. These items contained a value $6,875,130.14 out ofa population of$100,701,547.87 and were selected for the purpose of locating the equipment as recorded in the inventory records. Seven (7) items totaling $98,390.11 could not be located.
The Department is required to maintain equipment inventories in accordance with provisions of State laws and regulations. The discrepancies identified above were caused by the Department's failure to follow established guidelines for maintaining equipment inventories.
Failure to maintain accurate inventory records causes internal reports to management to be misleading and can result in erroneous decisions by management concerning current and future equipment needs.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with State laws and regulations.
OFFICE OF SCHOOL READINESS
Finding Control Number: FS-469-01-01 GENERAL LEDGER Inadequate Accounting Procedures (Overall)
Accounting procedures of the Office of School Readiness were insUfficient to provide adequate internal controls over Revenues/Receivables/Receipts, Expenditures/Liabilities/Disbursements, Fund Equities, and General Ledger control categories as noted below. It should be noted that the Office initiated a "balance cleanup project" prior to fiscal year end andthat this project continues in fiscal year 2002.
Revenues/Receivables/Receipts
1. Reconciliations of the receivables and revenue accounts were provided, but balances on the reconciliations did not agree with the general ledger balances at fiscal year end. The Office of School Readiness should ensure that general ledger balances provided on the reconciliations equal the general ledger on th_e statewide Phoenix accounting system
2. The general ledger module did not balance with the accounts receivable (subsidiary) module. As a result, numerous reconciling items existed at June 30, 200 I. This condition resulted because of the following:
a. There were numerous manual journal entries posted to the general ledger module and a corresponding entry was not made in the accounts receivable module. These reconciling items occurred because the Office used manual journal entries, which are posted only to the general ledger, instead of adjustment vouchers, which are posted directly to the modules and automatically updated on the general ledger. The Office was unable to provide necessary documentation to support all reconciling items.
b. Direct journal transactions are used in instances where it is not necessary to first record a revenue transaction in the accounts receivable module. The entry to record a direct journal transaction is to debit cash and credit revenue. On numerous occasions, the Office recorded direct journal transactions directly into the accounts receivable module, even though no D-19
0
0
0
Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
receivable existed. This practice resulted in receivables being reflected even though no amounts were due to the agency.
0
0
c. There were reconciling items between the general ledger module and the accounts receivable module dating to July 1, 1999.
0
0
3. The receivable related revenue accounts for State and Federal revenue are not being recorded properly on the general ledger. Revenue for these accounts should be recorded with an initial
0
accounts receivable item and then cash receipts should be applied against the open receivable items.
0
The Office is recording these revenue amounts by use of direct journal, which are recorded directly to cash rather than through accounts receivable.
0
0
Expenditures/Liabilities/Disbursements
0
1. The general ledger module did not balance with the accounts payable (subsidiary) module. This
0
condition resulted because numerous manual journal entries were posted to the general ledger and a corresponding entry was not made in the accounts payable module. As a result, numerous
0
reconciling items existed at June 30, 2001. These reconciling items occurred because, in many
0
cases, the Office used manual journal vouchers, which are posted only to the general ledger, instead
0
of adjustment vouchers, which are posted directly to the module and automatically updated on the
general ledger. The Office was unable to provide necessary documentation to support all reconciling
0
items. Certain of these items were nine months old.
0
2. The Office has not established an internal control system whereby subsidiary ledgers for the Child
0
and Adult Care Food Program and the Summer Food Service Program properly "roll-up" into the
0
general ledger. Manual journal entries are made to the general ledger to record the activity of the subsidiary ledgers. However, these manual entries failed to accurately record the activity of these
0
subsidiary ledgers. The Office provided numerous reconciliations between the general ledger and
0
the subsidiary ledger, but these reconciliations, more often than not, did not support amounts recorded to the general ledger. In addition, adequate supporting documentation for the amounts in
0
the subsidiary ledgers was not provided.
0
Fund Equities
0
0
1. The general ledger was not closed with the correct balances at June 30, 2001. Numerous audit adjustments, many of which were provided by the Office, were necessary to reflect the overall
0
financial status of the Office. The following accounts were adjusted as follows:
0
Per
Per
0
Book
Audit
0
Reserves
$ 3,824, 138.23
$1,692,390.41
0
Surplus
$-409,613,887.02
$1,380,963.41
0
General Ledger
0
0
1. The general ledger was not closed with the correct balances at June 30, 2001. Prior to fiscal year 2001, the Office's activity was split between two budget funds, "A Department of Education" and "B
0
Lottery for Education". Effective July 1, 2000, all beginning balances and all activity should have
0
been recorded in a new budget fund, "C Office of School Readiness". Only during the month of June 2001 and the closing period, which Phoenix designated as a "998" period, was an attempt made
0
to merge these beginning balances and activity which occurred in the former budget funds. The
0
Office made numerous manual journal entries in the subsequent period that should have been made
0
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0
;'. ~ .~
Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
prior to closing the general ledger at June 30, 2001. These subsequent period entries have been reflected in tlie amounts shown in the management report.
2. Numerous manual journal entries were made to the general ledger without proper approval. Journal entries were made to transfer balances from the different budgets and programs without corresponding entries recorded in the appropriate subsidiary .modules. As a result, the subsidiary modules reflected balances in the budget funds and programs that no longer are being used by the Office .
Management's failure to ensure that transactions recorded in the subsidiary modules are correct and are in balance with the general ledger module causes internal reports to management, generated from the subsidiary modules, to be inaccurate and misleading. This condition can lead to erroneous decisions by the Office's management as well as by the State of Georgia's executive decision makers.
To ensure accurate and timely reporting of financial information from subsidiary modules that are part of the statewide Phoenix accounting system, the Office should consider using adjustment vouchers rather than manual journal entries to the extent possible. This will allow ~e natural flow of the subsidiary modules into the general ledger module to correct . adjustments to the accounting records that are determined to be necessary. The Office should also consider implementing an electronic interface for those subsidiary ledgers that are manually recorded onto the general ledger. Finally, the Office should develop internal accounting controls and procedures to ensure that transactions are entered properly in the subsidiary modules and that adequate supporting documentation and approvals are maintained for all adjustments and reconciling items.
BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA
Finding Control Number: FS-472-01-02 BUDGET PREPARATION/EXECUTION Overexpenditure ofBudget Unit Object Class Resident Instruction, "A" Budget
The total approved budget for the Resident Instruction, "A" Budget, of the Board of Regents of the University System of Georgia, provided for expenditures totaling $3,527,655,228.00. A comparison of anticipated funds available and budgeted expenditures to actual funds available and expenditures by object class indicates that the object class Special Funding Initiative was overspent by $571,814.37. This overexpenditure is a violation of Section 59 of the Amended Appropriations Act of2000-2001.
This overexpenditure was the result of the Administrative Central Office's failure to submit budget amendments to the Office of Planning and Budget. The Administrative Central Office should closely monitor its internal control procedures over budget operations to prevent the eXpenditure of funds in excess of budget approval.
Finding Control Number: FS-472-01-03 BUDGET PREPARATION/EXECUTION Overexpenditure of Budget Unit Object Class Regents Central Office and Other Organized Activities, "B" Budget
The total approved budget for the Regents Central Office and Other Organized Activities, "B" Budget, of the Board of Regents of the University System of Georgia, provided for expenditures totaling $562,273,846.00. A comparison of anticipated funds available and budgeted expenditures to actual funds available and expenditures by object class indicates that the following object classes were overspent by the amounts identified below:
Operating Expenses: Educ., Gen, and Dept. Svcs. Sponsored Operations
$ 528,795.33 $ 7,957,360.88
D-21
0
0
0
Findings and Questioned Costs
0
For the Ascal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
These overexpenditures are a violation of Section 59 of the Amended Appropriations Act of 2000-2001.
0
These overexpenditures were the result of the Administrative Central Office's failure to submit budget amendments to the
0
Office of Planning and Budget. The Administrative Central Office should closely monitor its internal control procedures over budget operations to prevent the expenditure of funds in excess of budget approval.
0
0
DEPARTMENT OF REVENUE
0
Finding Control Number: FS-474-01-01
0
CASH AND CASH EQUIVALENTS
0
Inadequate Accounting Procedures
0
Our examination included a review of the internal accounting controls and accounting procedures utilized by the
0
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:
0
0
1) Bank reconciliations for five (5) of thirty-eight (38) bank accounts were not formally approved during the
test month of June 2001.
0
0
2) The June 30, 2001, bank reconciliations were not prepared in a timely manner for the following two (2) bank accounts: Bank of America - Payroll Account and Bank of America - General Operating Account.
0
0
3) 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 $35,186,963.25 in reconciling
0
items dating from October 1997, that were not corrected as of June 30, 2001. However, as of December
0
31, 2001, $18,457,367.29 of the reconciling items had been corrected, leaving a balance of $16,729,595.96.
0
0
4) The Department of Revenue does not have a formal policy concerning the voiding of outstanding checks. The Bank of America - Payroll Account contains outstanding checks dating back to June 1998.
0
0
These deficiencies were a result of the Department's failure to adequately manage cash assets of the Department.
0
The Department should establish internal controls to ensure that monthly bank statements are reconciled with the
0
accounting records on a timely basis. The Department should also establish procedures to identify and appropriately account for outstanding and/or stale-dated checks. pi addition, the Department should examine the necessity of each bank
0
account in an effort to reduce the number of bank accounts.
0
Finding Control Number: FS-474-01-02
0
REVENUES/RECEIVABLES/RECEIPTS
0
Deficiencies in the State Revenue Collections Fund (Overall)
0
Our examination included a review of the internal accounting controls and accounting procedures utilized by the
0
Department of Revenue (Department) in maintaining their State Revenue Collections Fund. This examination included
0
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
0
transfers from taxpayers) were adequately accounted for by the Department's general ledger system maintained by the
0
Central Accounting Urut 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
0
subsequently transferred by the Department to the Office of Treasury and Fiscal Services (OTFS), which acts as the State
0
Treasury. The following deficiencies and inappropriate practices were found to exist:
0
0
D-22
0
Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
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.
It should be noted that as of July 1, 2001, the Department converted the State Revenue Collections Fund to the statewide Phoenix accounting system, which provides for dual-entry accounting.
2) The general ledger system did not include separate accounts to identify each type of revenue reported to and recorded by OTFS; nor did the system contain unique identifying numbers (transmittal numbers/deposit numbers) for all revenue amounts recorded within the general ledger. These deficiencies result in extensive time and effort being required to reconcile the financial activity between the Department and OTFS.
The general ledger system should be updated to contain the transmittal number and deposit number for each receipt transmitted to and refund requisitioned from OTFS. In addition, the chart of accounts should be expanded to contain a separate account for each revenue type reported by OTFS.
3) The 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 periDdically. In addition, there is no consistent cut-off date 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 not reconcilable with the general ledger.
The Department should establish policies and procedures that will establish managerial control for the Centrai 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.
4) The Department has not established an internal control system that requires cash receipts and disbursements to be posted to the "Revenue Ledger" and the "Refund Ledger" in the accounting period in which they occur, allowing discretionary shifting of cash receipts and disbursements between accounting periods. This "shifting of funds" is inconsistent with the Cash Receipts and Disbursements basis of accounting and compounds the problems associated with reconciling the general ledger system and the subsidiary ledgers and associated records maintained by the Divisions.
State Revenue Collections Funds are maintained on the Cash Receipts and Disbursements basis of accounting as prescribed or permitted by statutes and regulations of the State of Georgia. The Department should develop and implement procedures to ensure that cash receipts and disbursements are recorded in the "Revenue Ledger" and the "Refund Ledger" at the time of occurrence, as required by the Cash Receipts and Disbursements basis of accounting. In addition, the Department should develop and implement procedures to ensure that posting dates in the "Revenue Ledger" and the "Refund Ledger" are consistent with the posting dates in the subsidiary ledgers and associated records.
D-23
0
0
0
Findings and Questioned Costs
0
For the Ascal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
5) The Department has not established an internal control system which ensures that revenue collections received by the Department through either the Mail Cash System and/or the Electronic Funds Transfer
0
Maintenance Unit are reconciled to the General Ledger. As a part of our examination, we attempted to
0
perform a reconciliation ofrevenue collections recorded on the General Ledger for Sales Tax and Income Tax versus the amounts recorded either through the Mail Cash System and/or through the Electronic
0
Funds Transfer Maintenance Unit. The reconciliation for Sales Tax indicated that the General Ledger
0
showed $33,019,261.47 more revenue than recorded on the Mail Cash System and/or Electronic Funds Transfer Maintenance Unit. The reconciliation for Income Tax indicated that the General Ledger showed
0
$71,819,168.42 more revenue than recorded on the Mail Cash System and/or Electronic Funds Transfer
0
Maintenance Unit. Adjustments made to the General Ledger could not be assessed because of the failure to maintain a dual-entry accounting system. Failure to reconcile receipts to postings in the General
0
Ledger could result in misstatements to the financial statements not being detected, prevented or
0
corrected.
0
The deficiencies noted above are a result of the Department's failure to provide for a comprehensive, modem accounting
0
system integrated 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.
0
0
Finding Control Number: FS-474-01-03 REVENUES/RECEIVABLES/RECEIPTS
0
Deficiencies in the Income Tax Division Subsidiary Records
0
Our examination included a review of the internal accounting controls and accounting procedures utilized by the Income
0
Tax Division (Division) of the Department of Revenue (Department) for maintaining subsidiary ledgers and associated
0
records. This re.view revealed that there is a deficiency in the maintenance of subsidiary records by the Division. The Division does not adequately track data received from both companies and individuals concerning taxpayer wages, income
0
tax withholdings or estimated payments of Georgia income tax. Only limited work in regard to individual confirmation of
0
Form W-2 information is performed by the Department.
0
As a result of this deficiency, the Division cannot ensure, in all cases, that the withholding amount claimed by the taxpayer
0
on the annual tax return is accurate or that known taxable income is reported as income. This condition resulted due to the
0
Department's failure to design and implement needed procedures, programs or systems.
0
The Department should design and implement a system that will provide for the systematic reconciliation of income and
0
withholding data received from employers and individuals with Form W-2 and other documents filed with year-end
individual tax returns.
0
0
GEORGIA STUDENT FINANCE COMMISSION
0
Finding Control Number: FS-476-01-01
0
ACCOUNTING CONTROLS (OVERALL) Inadequate Controls Over the Design of the Local Area Network
0
0
Our examination included a review of the computing environment of the Georgia Student Finance Commission, which was maintained in a shared computer environment with the Georgia Student Finance Authority and the Georgia Higher
0
Education Assistance Corporation. This review included the performance of discovery and vulnerability scans to
0
determine the existence of all devices used by these organizations and the identification of vulnerabilities that existed. Our
0
review disclosed the following deficiencies:
0
Network Architecture - The network is designed to allow access by schools and the general public,
0
however this design also allows for potential access to servers that should not be accessible to the general public. A more secure placement of public web servers would be within a DeMilitarized Zone (DMZ)
0
environment.
0
D-24
0
Georgia
Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
Change Control - The Georgia Student Finance Authority/Conunission/Corporation did not have formal change control policies and procedures. The primary functions of change controls are (1) to ensure that the change is implemented in an orderly manner through formalized testing; (2) to ensure that users are informed of the impending change; (3) to analyze the effect of the change on the system after implementation; and (4) to reduce the negative impact the change may have on the computing system and resources. From a security standpoint, the goal of change control is to ensure that changes to the system do not unintentionally diminish security. Proper change control also makes it possible to accurately roll back to a previous version of a system in the event a new system is found to be faulty.
Segregation of Duties - Application programmers, system administrators and program developers all had more access than was needed to perform their assigned functions. Additionally, programmers had access to production data and systems. Segregation of duties revolves around the concept that if parts of a task are assigned to different individuals, then no one individual would have total control of the system's security mechanisms, and no one single person could completely compromise the system. It is very similar to the concept of "least privilege" which states that users should have the lowest level of rights and privileges necessary to perform their work, and only for the shortest length of time. Generally speaking, application programmers should work in a test environment only and should not move test versions into the production environment. Application progr~ers should have no access to production data. Program developers are responsible for maintaining the systems software including the operating system This function may allow for unrestricted access to the entire system For this reason it is imperative that program developers keep logs of their work and only have access to system libraries of the specific software that they maintain. The system administrator is responsible for the technical and administrative control over the local area network. This includes ensuring transmission links are functioning correctly, backups of the system are occUrring and software/hardware purchases are properly installed. The system administrator should have no application program responsibilities, but may have some end-user responsibilities.
Monitoring and Logging of Activities - There was no evidence that the organizations periodically monitored the network or host activities. Failed logon attempts (particularly to system administrator accounts) should be detected and reviewed.
Network and System Identification - Routers and firewalls identified the system and/or manufacturer on initial telnet responses. This type of information may be utilized by potential hackers to gain unauthorized access to systems. Every effort should be made to avoid disclosure of this information.
Vulnerabilities - Excessive services and settings were found on multiple servers. All services that are not required to fulfill the functions of the Conunission should be turned off thereby reducing the possibility of unauthorized access.
Finding Control Number: Fs-476-01-02 ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties
The Georgia Student Finance Authority is charged with maintaining the accounting system for the Conunission. Because the internal accounting controls of the Authority directly impact Conunission financial statements, our examination included a review of those controls. That review disclosed that the Authority did not provide for adequate separation of duties in the performance of accounting functions and related procedures for the Expenditures/Liabilities/Disbursements control category.
This condition existed because an employee within the accounts payable section performed both check writing and checkinvoice verification functions, and there were no compensating controls in place. This lack of separation of duties in employee functions could result in undetected misstatements on the financial statements of the Commission.
D-25
0
0
0
Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
Management should review the accounting procedures in place, then design and implement procedures to enhance separation of duties associated with the above control category.
0
0
Finding Control Number: FS-476-01-04 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
Our examination included a review of the internal accounting controls used by the Georgia Student Finance Commission in
0
maintaining their State Property System, and also included testing the system for compliance With State laws and
0
regulations. Our review revealed that the Commission failed to properly maintain a general fixed asset inventory. When requested to provide a copy of equipment inventory for the fiscal year ended June 30, 2001, the Commission provided
0
auditors with a copy of the fiscal year ended June 30, 2000 equipment inventory previously provided to the Commission by
0
the auditors. Additionally, the following inappropriate accounting practices were noted:
0
(1) Equipment additions and deletions were not recorded in the inventory records. General ledger equipment
0
expenditure accounts representing additions to the inventory totaled $58,474.85.
0
(2) A physical inventory count was not performed within the past two years.
0
In addition, thirty-five (35) equipment items were selected to test the accuracy of the Commission's property management
0
records. These items contained a value of $443,597.01 out of a population of $976,946.86, and were selected for the
0
purpose of locating the equipment as recorded in the inventory records. The following deficiencies were noted from the
0
items sampled:
0
(1) Seven (7) items totaling $20,113.82 could not be located.
0
(2) Two (2) items listed on the inventory had been transferred or surplused.
0
0
The Commission is required to maintain equipment inventories in accordance with provisions of State laws and regulations.. The discrepancies identified were caused by the Commission's failure to follow guidelines for maintaining
0
equipment inventories.
0
Failure to maintain accurate equipment inventory records may result in misleading internal reports to management, and can
0
result in erroneous decisions concerning current and future equipment needs. The Commission should establish the
0
necessary internal controls to ensure that equipment inventories are maintained in accordance with State laws and regulations.
0
0
Finding Control Number: FS-476-01-07 GENERAL LEDGER
0
Failure to Reconcile General Ledger to
0
Grant and Scholarship Subsystems
0
Our examination included a review of the reconciliation procedures utilized by the Georgia Student Finance Commission
0
to ensure that two subsystems within the Grant and Scholarship subsystem reconciled with the general ledger and other records maintained by the Commission. The first is an "awards by student" subsystem that tracks individual student
0
awards and the second is a "disbursements. by institution" subsystem that tracks disbursements by institution. It was
0
determined the Commission did not have adequate procedures in place to ensure an overall reconciliation of these two subsystems to the general ledger and other records maintained by the Commission.
0
c
Extensive audit procedures were used to attempt a reconciliation of these subsystems. These audit procedures involved
c
ensuring that the "awards by student" subsystem was reconciled to certifications submitted by the various institutions receiving funds; that the "awards by student" subsystem was reconciled to the "disbursements by institution" subsystem;
c
and that the "disbursements by institution" subsystem was reconciled to amounts recorded on the general ledger.
c
D-26
c
. ~ ..,
.1 . :
Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
Our reconciliation of the "awards by student" subsystem to certifications submitted by the institutions noted certain discrepancies as discussed below. It should be noted that the Conunission requires, with a limited number of exceptions, each institution receiving grant and scholarship awards to submit a year-end certification to the Commission reconciling the awards disbursed by the institution to records maintained by the Conunission.
1. Governor's Honor Scholarship Three institutions had not submitted the required year-end certification to the Commission for funds totaling $1,387,556.00.
2. Georgia Tuition Equalization Grant Five institutions had not submitted the required year-end c~rtification to the Commission for funds totaling $409,081.50.
3. Hope Promise II - Public Three institutions had not submitted the required year-end certification to the Commission for funds totaling $23,906.19. One institution did not resubmit the required year-end certification following award adjustments that exceeded original certification amounts totaling $231.00.
4. Hope Scholarship - Public Three institutions had not submitted the required year-end certification to the Commission for funds totaling $10,000.00. Three institutions did not resubmit the required year-end certification following award adjustments that exceeded original certification amounts totaling $15,051.62.
5. Hope Scholarship - Private Two institutions had not submitted the required year-end certification to the Commission for funds totaling $926,920.00.
6. Hope Teacher Scholarship Two institutions did not resubmit the required year-end certification following award adjustments that exceeded original certification amounts totaling $1,444.00.
7. Work Incentive for Student Education One institution had not submitted the required year-end certification to the Commission for funds totaling $228,718.00.
The Commission should ensure that all required certifications are submitted by the appropriate due dates and reconciled to the "awards by student" subsystem. Future funding should be withheld for certifications not submitted until such certifications are received.
Our reconciliation of the "awards by student" subsystem to the "disbursements by institution" subsystem disclosed the following discrepancies:
1. Georgia Tuition Equalization Grant Three institutions received funds from the Commission that exceeded awards made to students in the amount of$38,150.00.
2. Hope Teacher Scholarship One institution received funds from the Commission that exceeded awards made to students in the amount of$10,825.00.
D-27
0
0
Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
0
\
0
0
0
FINANCIAL STATEMENT FINDINGS
0
0
One institution received funds from the Commission that were less than awards made to students in the amount of $375.00.
0
0
3. Work Incentive for Student Education One institution received funds that exceeded awards made to students in the amount of
0
$14,970.25.
0
4. Hope Scholarship - Public Institutions
0
Eight institutions received funds from the Commission that exceeded awards made to students
0
in the amount of$144,440.90.
0
Four institutions received funds from the Commission that were less than awards made to students in the amount of$7,076.36.
0
0
5. Hope Promise II - Public Two institutions received funds from the Commission that were less than awards made to
0
students in the amount of $2,530.00.
0
6. Promise Teacher Scholarship
0
One institution received funds from the Commission that exceeded awards made to students in
0
the amount of$2,250.00.
0
. 7. Hope Scholarship - Private Institutions
0
Three institutions received funds from the Commission that exceeded awards made to students in the amount of$10,362.00.
0
0
The Commission should investigate these discrepancies and either make corrections to the subsystems, ensure
0
that proper refund is secured from the institution or student, or make additional disbursement to the
institution. Procedures should be placed into operation to ensure that amounts awarded to students by the
0
institution reconcile to the amounts disbursed to the institution at the end of each award year.
0
Our reconciliation of the "disbursements by institution" subsystem to amounts posted to the general ledger disclosed the
0
following discrepancies:
0
1. Law Enforcement Personnel Dependent Grant
0
One check for $1,000.00 was voided on the general ledger but was not voided on the
0
"disbursements by institution" or "awards by student" subsystems.
0
2. Hope Scholarship - Public Institutions
0
One check for $431.00 posted to the general ledger was not reflected on the "disbursements by institution" subsystem.
0
One check for $157.00 posted to the general ledger was not reflected on the "disbursements by
0
institution" or "awards by student" subsystems.
0
Four checks totaling $78,319.00 posted on the "disbursements by institution" and "awards by
student" subsystems were not recorded on the general ledger.
0
Three checks totaling $16,919.00 posted on the general ledger were not reflected on the
0
"disbursements by institution" or "awards by student" subsystems.
0
0
0
0
0
D-28
0
' ~ l ..
Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
3. Hope 'Promise II - Public Institutions The Hope Scholarship - Public Institution and Promise II - Public Institution disbursements were not segregated on a grant-by-grant basis on the "disbursements by institution" subsystem. However, the "awards by student" subsystem did maintain sepa.'"llte grant accountability and procedures were used to reconcile grant expenditures to the general ledger. It was noted that expenditures posted by journal entry to the general ledger for $535,980.15 should have been $535,178.15. This error of $802.00 constitutes Hope Scholarship - Public Institution expenditures .
4. Public Safety Grant One check for $2,131.00 posted to the general ledger was subsequently voided. However, the check was not voided on the "disbursements by institution" or "awards by student" subsystems. One check for $100.00 posted to the "disbursements by institution" and "awards by student" subsystems was not recorded on the general ledger.
5. Hope Promise II - Private Institutions The Hope Scholarship - Private Institution and Promise II - Private Institution disbursements were not segregated on a grant-by-grant basis on the "disbursements by institution" subsystem. However, the "awards by student" subsystem did maintain separate grant accountability and procedures were used to reconcile grant expenditures to the general ledger.
The Commission should investigate these variances and either make corrections to the subsystems, ensure that proper refund is secured from the institution or student, or make additional disbursement to the institution. Procedures should be placed into operation to ensure that amounts awarded to students by the institution and amounts recorded in the "disbursements by institution" subsystem reconcile to the amounts recorded on the general ledger at the end of the award year.
It was further noted that expenditures for Hope Scholarship - Public posted to the general ledger in the object classes for Hope Tuition, Hope Books and Hope Fees could not be reconciled to the "disbursements by institution" or "awards by student" subsystems by individual object class, but could be reconciled overall. Procedures should be established whereby
expenditures recorded for Hope tuition, books and fees on the general ledger are reconciled to the subsystems wl.thin the
Grant and Scholarship subsystem.
The above conditions occurred due to management's failure to ensure that subsidiary records (subsystems) are reconciled to the general ledger, and could result in undetected misstatements in the financial statements.
In summary, procedures should be established by the Commissjon to ensure the Grant and Scholarship subsystems are reconciled to the general ledger in a timely manner. To aid in the reconciliation process, policies should be established whereby grants and scholarships are reconciled by the institutions on a quarter or semester basis and monitored for accuracy by the Commission. The Commission should institute an invoicing system (electronic) where the institution bills the Commission for students based on student charges at the institution as of the last drop/add date for the quarter or semester thereby eliminating the need for certification at year end and amounts disbursed would agree to students attending the various institutions provided the students were awarded a grant or scholarship.
Finding Control Number: FS-476-01-09 GENERAL LEDGER Failure to Reconcile Grant/Scholarship Refunds to the General Ledger
Our examination included a review of the reconciliation process for refunds received from various institutions or students posted to the "disbursements by institution" subsystem to refunds recorded in the general ledger. It was noted that reconciliations were not performed. Audit procedures were performed to reconcile refunds including grant and scholarship funds that pass-through from the Commission to the Georgia Student Finance Authority. The following differences were noted:
D-29
,-------------------~--------------------- - - - - - - - - - - - - - -
0
0
0
Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
REFUNDS
REFUNDS PER
0
PER
DISBURSEMENTS
0
GRANT DESCRIPTION
ENTITY
GENERAL LEDGER
BY INSTITUTION SUBSYSTEM DIFFERENCE
0
0
GOVERNORS' SCHOLARSHIP
AUTHORITY $ 94,775.00 $ 86,987.00 $ 7,788.00
0
NGA COLLEGE MILITARY
0
SCHOLARSHIP
AUTHORITY
115,605.83
116,072.83
-467.00
0
GEORGIA TUITION EQUALIZATION
0
GRANT
AUTHORITY
310,382.66
83,731.58
226,651.08
0
HOPE TEACHER SCHOLARSiiIP AUTHORITY
284,981.47
305,263.78
. -20,282.31
0
WORK INCENTIVE FOR STUDENT
0
EDUCATION
AUTHORITY
14,792.35
11.759.25
3.033.10
0
0
TOTAL REFUNDS PER AUTHORITY
$ 820.537.31 $ 603,814.44 $ 216.722.87
0
GEORGIA MILITARY COLLEGE
0
SCHOLARSHIP
COMMISSION $ 41,221.48 $ 27,004.48 $ 14,217.00
0
HOPE TUITION, BOOKS AND FEES COMMISSION 7,668,607.94
7,266,824.35
401,783.59
0
LAW ENFORCEMENT PERSONNEL
0
DEPGRANT
COMMISSION
8,563.75
2,035.98
6,527.77
0
PROMISE TEACHER SCHOLARSHIP COMMISSION
7,500.00
11,250.00
-3,750.00
0
0
SCHOLARSHIP FOR ENGINEERING
EDUCATION
COMMISSION
97,500.00
75,000.00
22,500.00
0
0
HOPE SCHOLARSHIP PRIVATE COMMISSION 263,204.16
79,820.00
183,384.16
0
TOTAL REFUNDS PER COMMISSION
$ 8,086,597.33
$ 7.461.934.81 $ 624,662.52
0
TOTAL OF ALL REFUNDS
$ 8 907 134.64
$ 8.065 749 25 $ 841 385.39
0
0
The above conditions occurred due to management's failure to ensure that subsidiary records (subsystems) are reconciled to the general ledger and could result in undetected misstatements in the financial statements.
0
0
The Commission should investigate these differences to ensure that all refunds are properly posted to the general ledger, deposited in the bank, and recorded in the "disbursements by institution" subsystem. Procedures should be established to
0
reconcile refunds periodically between the general ledger and the "disbursements by institution" subsystem.
0
0
0
0
0
0
D-30
0
findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FINANCIAL STATEMENT :FINDINGS
DEPARTMENT OF TRANSPORTATION
Finding Control Number: FS-484-01-01 GENERAL LEDGER Inadequacies in Control Over Manual Journal Entries
Our examination included a review of the internal accounting controls and procedures utilized by the Department of Transportation in recording adjustments to the various modules comprising the statewide Phoenix accounting system. Our testing revealed that, at June 30, 2001, the Department's general ledger module did not balance with the accounts receivable and accounts payable (subsidiary) modules. This condition resulted because numerous manual journal entries were posted to the general ledger module instead of recording the adjustment in the appropriate subsidiary module. As a result, numerous reconciling items existed at June 30, 2001. These reconciling items occurred because, in many cases, the Department used manual journal vouchers, which are posted only to the general ledger, instead of adjustment vouchers, which are posted directly to the modules and automatically update the general ledger. The Department was unable to provide necessary documentation to support all reconciling items.
Management's failure to ensure that subsidiary modules are in balance with the general ledger module causes internal reports to management, generated from the subsidiary modules, to be inaccurate and misleading. This condition can lead to erroneous decisions by the Department's management as well as by the State of Georgia's executive decision makers.
To ensure accurate and timely reporting of financial information from subsidiary modules, the Department of Transportation should use adjustment vouchers rather than manual journal entries to the extent possible. This procedure will allow the natural flow of the subsidiary modules into the general ledger module to correct adjustments to the accounting records that are determined to be necessary. The Department should also develop internal accounting controls and procedures to ensure that adequate supporting documentation is maintained for all adjustments and reconciling items.
GEORGIA INSTITUTE OF TECHNOLOGY
Finding Control Number: FS-503-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
For the year under review, audit sampling and other procedures were utilized to verify the validity and accuracy of the equipment inventory records as presented for audit. An equipment inventory sample of one hundred (100) items was randomly selected from the subsidiary equipment inventory records. Also, fifty (50) equipment items that were reported by the Institute as having been added or deleted during the fiscal year were selected for testing and fifty-five (55) items were traced from their location to the subsidiary equipment inventory records provided. The results of our testing disclosed the following:
(1) Three (3) items from our equipment sample could not be located.
(2) One ( 1) item selected by location could not be traced to the subsidiary equipment inventory records.
(3) Adequate documentation could not be provided for one (1) item reported as being disposed of by the Institute .
It should also be noted that the $25,245,655.62 reported as disposals/deletions/adjustments in the Institute's Investment in Plant records included adjustments of$1,956,142.16 for which no documentation was available.
These deficiencies occurred because of management's failure to adequately monitor and maintain equipment inventory records. The Institute should strengthen internal accounting controls over the equipment inventory process.
D-31
0
0
0
Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
UNIVERSITY OF GEORGIA
0
Finding Control Number: FS-518-01-01
0
REVENUES/RECEIVABLES/RECEIPTS
0
Inadequate Accounting Procedures
0
The accounting procedures of the University were insufficient to provide adequate control over the
0
Revenues/Receivables/Receipts control category as noted below:
0
(1) The University of Georgia's Internal Audit Department cited seven departments for not depositing
0
receipts on a timely basis. An audit review in this area disclosed $75,540.28 in receipts on hand at year-
end that were not deposited until the subsequent fiscal period. An audit adjustment was made to include
0
this amount in current year revenue.
0
(2) Audit follow-up at four of the above seven departments also identified unrecorded accounts receivable
0
totaling $101,042.18. During cash receipt sampling procedures, additional unrecorded accounts
0
receivable were identified at one other department totaling $20,950.00. Also, while investigating other audit areas, another unrecorded accounts receivable was identified in yet another department totaling
0
$62,971.60.
0
The above-mentioned unrecorded accounts receivable were maintained on subsidiary ledgers at the individual departments
0
but were not recorded on the University's General Ledger. This deficiency in internal controls occurred because the
0
University's Administrative Policies and Procedures Manual does not adequately address the process by which revenues and accounts receivable should be reported on the University's general ledger.
0
0
Management should establish appropriate procedures to strengthen internal accounting controls over the reporting of revenues and recording of accounts receivable on the University's general ledger. Procedures should also be established for
0
the periodic reconciliation of subsidiary ledgers to general ledger accounts receivable balances.
0
Finding Control Number: FS-518-01-02
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Failure to Perform Annual Physical Equipment Inventory Count
0
Seventeen departments of the University failed to conduct an annual physical equipment inventory count as required by
0
established University Administrative Policies and Procedures. The amount of equipment inventory reflected on the University's Property Control equipment inventory records for these departments totaled $24,573,494.88.
0
0
This deficiency occurred because management, assigned custody of equipment, failed to follow existing equipment inventory count procedures in accordance with the University's Administrative Policies and Procedures. Every University
0
department should conduct an annual physical inventory of equipment. Management should establish appropriate
0
procedures to strengthen internal control and to ensure that assets are safeguarded against loss from unauthorized use or
0
disposition.
0
0
0
0
0
0
0
0
D-32
0
.~ : :
Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
ALBANY STATE UNIVERSITY
Finding Control Number: FS-521-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequate Accounting Procedures
The University did not follow state guidelines pertaining to the disposition of state surplus personal property when it replaced fourteen copiers. The copiers, with only two or three payments left on them, were refinanced, removed by the lessor, and replaced with new copiers. The Official Code of Georgia Annotated Section 20-3-60 states in part that:
"All properties owned or held by the board ofregents pursuant to this chapter which have been declared to be the public property of the state may be sold, leased, or otherwise disposed of by the board subject to the approval of the Governor, whenever the board may deem such sale, lease, or other disposition in the best interests of the system, if the board shall first determine that such property can no longer be advantageously used in the system."
The deficiencies noted in the above control categories occurred because of management's failure to establish procedures to; analyze and reconcile balances on the general ledger with supporting records, adequately monitor inventory throughout the year, obtain approved documentation to support financial aid before disbursement of funds, adequately monitor procurement and property management operations, implement controls over the disbursement function, and ensure journal entries posted to the general ledger contained adequate supporting documentation and proper explanations.
The University should implement appropriate procedures and controls to ensure that all bank statements are reconciled to the general ledger and ensure that reconciling items are identified and corrected promptly. The University should review the accounting procedures in place, design procedures relative to the above control categories and implement procedures to strengthen the internal controls over the accounting functions .
CLAYTON COLLEGE AND STATE UNIVERSITY
Finding Control Number: FS-528-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Deficiencies in Accounting Procedures
Accounting procedures of Clayton College and State University were insufficient to provide adequate internal controls
over the Cash and Cash Equivalents, Revenues/Receivables/Receipts, General Ledger and General Fixed Assets/Property
Management control categories as noted below:
At June 30, 2001, the University was unable to reconcile the equipment inventory records to amounts recorded on the accounting records.
This deficiency occurred because of management's failure to adequately monitor and maintain the subsidiary equipment inventory records.
Management should establish appropriate procedures and controls to ensure accounting records are properly maintained and assets are adequately safeguarded against loss from unauthorized use or disposition.
D-33
0
0
0
Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
FORT VALLEY STATE UNIVERSITY
0
Finding Control Number: FS-533-01-05
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Investment in Plant
0
Inadequate Equipment Inventory Records
0
0
A review of subsidiary equipment inventory records and a sample of one hundred items revealed that the records of the
University were fuadequate as follows:
0
1) Fifty-three of the items selected for the sample could not be located.
0
0
2) Three of the items located did not have decals affixed.
0
3) During field work, the auditor observed items that were waiting to be surplused which were in an open, unsecured
0
location.
0
4) Fiscal year 2001 purchases made after January 2001, were not recorded on the subsidiary equipment inventory
0
records presented for audit, which resulted in a variance of $2, 111,233.97 between the subsidiary records and the
0
flllancialrecords.
0
5) The University has not performed a complete physical equipment inventory since August 1998, which is in
0
violation of the University's policy that requires a complete physical inventory every two years.
0
The matters above indicate material deficiencies relative to the University's management of equipment inventory. These
0
deficiencies are a result of management's failure to have adequate policies and procedures to ensure equipment inventories are properly maintained. The University should establish appropriate procedures to strengthen internal accounting controls
0
and ensure that assets are safeguarded against loss from unauthorized use or disposition.
0
GEORGIA SOUTHERN UNIVERSITY
0
0
Finding Control Number: FS-539-01-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
Inadequacies in Operation of Property Management System
0
0
The accounting procedures of the University were insufficient to provide adequate control over the Property Management
System An equipment inventory sample of 250 randomly selected items was utilized to test the accuracy and
0
completeness of the University's general fixed assets records. The following deficiencies were noted:
0
(1) Three items with a total cost of$14,683.00 could not be located.
0
(2) One item with a cost of$7,416.00 was returned to the vendor, but the item had not been removed from
0
the equipment records. The University did not provide documentation to support the item had been returned.
0
(3) Twelve items with a total cost of $110,171.30 were surplused, but had not been removed from the
0
equipment records. The University did not provide documentation to support the items had in fact been surplused.
0
0
We also noted that the University had 957 items with a total cost of $2,380,993.92 noted as missing on their equipment records. The University made an adjustment in the subsequent period to remove 447 of these items with a total cost of
0
$1,050,805.82.
0
0
0
D-34
0
Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
These discrepancies occurred because the University's internal control procedures regarding additions/deletions/transfers and physical equipment inventory counts were not operating properly. 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.
SAVANNAH STATE UNIVERSITY
Finding Control Number: FS-548-01-01 ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties
Our examination of the internal accounting control procedures revealed that the University did not provide for adequate separation of duties in the performance of the following accounting functions and related procedures:
1) Cash custody and receipting functions were not separated from cash disbursement and general ledger functions .
2) Cash collection functions and maintenance of detail accounts receivables records were not separated from general ledger functions .
3) Deposit preparation functions were not separated from cash receipts functions.
4) Banner receivable and accounts receivable functions were not separated from the check disbursement functions .
5) Miscellaneous invoice preparation and accounts receivable functions were not separated from cash receipts and general ledger functions.
6) Accounts payable and disbursement functions were not separated from general ledger functions.
7) Check signing functions were not separated from voucher preparation and approval for payment functions .
These conditions were the result of management not assigning employee duties in a manner to adequately safeguard assets and/or promote efficiency and accuracy in key accounting functions. The University should review the accounting procedures in place, design procedures that would enhance segregation of duties relative to the above control categories and implement procedures to strengthen the internal controls over the accounting functions .
GEORGIA MILITARY COLLEGE
Finding Control Number: FS-590-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
The College was unable to provide complete subsidiary fixed assets records or other historical cost evidence supporting the balance for general fixed assets recorded on the financial statements. Proper internal controls necessitate the maintenance of subsidiary records for general fixed assets.
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
D-35
0
0
0
Findings and Questioned Costs
0
For the Ascal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
College. 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 and
0
ensure that those records agree with the general ledger.
0
WEST GEORGIA TECHNICAL COLLEGE
0
0
Finding Control Number: FS-819-01-02 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequate Property Management Procedures
0
The June 30, 2001, AM409 Report (General Ledger Inventory Report) contained numerous recording errors which
0
required extensive work by the auditors to correct. This problem occurred because management failed to record equipment
0
items in accordance with the State Property System Manual. West Georgia Technical College should establish controls to
0
ensure that equipment inventories are maintained in accordance with the State Property System Manual. In addition,
accounting personnel should review the inventory records to determine the proper recording of equipment items.
0
0
ATLANTA TECHNICAL COLLEGE
0
Finding Control Number: FS-823-01-01
0
CASH AND CASH EQUIVALENTS GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Deficiencies in Accounting Procedures
0
The College failed to adequately maintain the financial records on a program/project/fund basis, which contributed to the
0
poor condition of the general ledger and supporting accounting records. The following deficiencies were noted as
0
summarized below:
0
1) Cash and Cash Equivalents
0
Monthly bank reconciliations for the operating, payroll, PELL, and HOPE accounts were not properly
0
completed for the year under review. Due to the poor condition of the accounting records, cash could not
0
be properly reconciled from the bank balances to the general ledger. Extensive cash procedures
0
performed by the Department of Audits personnel resulted in adjusting entries to increase general ledger
balances at June 30, 2001, for Budget Fund cash by $2,096,935.64 and to decrease Agency Fund cash by
0
$3,624,392.54.
0
The College should implement procedures to ensure timely reconciliation of all bank accounts. This
0
would include, but not be limited to, proper documentation of outstanding items and correct
0
identification of all adjustments between the general ledger and bank account balances.
0
2) General Fixed Assets
0
a) The College failed to record donated equipment items in the Assets Management Module at
0
estimated fair value.
0
b) The College failed to reconcile the Assets Management Module to the equipment inventory listing provided.
0
c) Equipment purchases shown in the general ledger accounts could not be reconciled with additions
0
reported in the Assets Management Module. d) Adequate supporting documentation for additions (non-purchases)/deletions could not.be provided.
0
e) In May 2001, the College performed a physical inventory of equipment. However, our testing
0
revealed that significant inventory items, such as motor vehicles and aircraft components used in vocational instruction, were not included in the inventory count.
0
0
D-36
0
Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
The College should perform a comprehensive physical inventory to ensure that all items are recorded in accordance with guidelines set forth by the Georgia Department of Technical and Adult Education. Policies and procedures should be established to ensure that monthly reconciliations are performed for the General Fixed Assets Management Module and equipment subsidiary records. Also, reconciliation procedures should be performed to ensure that equipment purchases, along with other additions/deletions are properly recorded in the Asset Management Module.
The deficiencies disclosed in the above control categories occurred because management failed to ensure that proper internal control procedures were implemented for basic accounting procedures as noted above. Management should establish necessary changes to provide for an adequate system of internal controls and reliable accounting records.
DEKALB TECHNICAL COLLEGE
Finding Control Number: FS-830-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination ofthe College's property records revealed the following deficiencies at June 30, 2001:
l. Equipment additions of $19,156.00 as shown in the Property Management System could not be reconciled to the related equipment expenditures of$303,780.51 shown in: the general ledger accounts.
2. The Technical College could not identify or provide supporting documentation for equipment deletions of$466,l 70.00 as shown in the Property Management System.
During the year under review, DeKalb Technical College hired an outside firm to perform a complete physical inventory of equipment. An adjustment of $6,123,329.75 was necessary to reconcile the variance between the Property Management System and the actual physical inventory of$10,190,367.55.
DeKalb Technical College is required to maintain equipment inventories in accordance with provisions of State laws and. regu)ations. The discrepancies identified were caused by the College's failure to follow guidelines for maintaining equipment inventories. DeKalb Technical College should establish appropriate procedures to ensure that equipment inventories are maintained in accordance with State laws and regulations.
GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION(*)
Finding Control Number: FS-977-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Control over Third Party Tower Rental
Condition - The Commission rents excess tower space to governmental agencies, non-profit entities and for profit companies. The following conditions exist with regard to the Commission's management controls over tower space rental contracts:
1. Contracts for tower space rental are not standard.
2. Options to renew operating leases for tower space have not been executed timely.
3. Approximately 19 vendors are using tower space without paying monthly rent.
(*) THIS ORGANIZATIONAL UNIT WAS AUDITED BY OTHER AUDITORS
D-37
0
0
0
Findings and Questioned Costs
0
For the Rscal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
Criteria - The Commission has lease agreements and long-term commitments containing renewal option provisions and payment dates with which the Commission must maintain compliance.
0
0
Effect - The Commission staff is responsible for managing a variety of contract and lease types whose terms and conditions are not comistent with respect to the responsibilities of both the Commission and the lessees.
0
0
Cause - The Georgia Technology Authority, in anticipation of taking over the operation of the Commission's broadcast towers, has requested that the Commission refrain from establishing new operating leases for tenants with equipment
0
mounted on the towers.
0
Recommendation - We recommend that management ensure that a current, written agreement is in place for all tenants,
0
including those who do not pay rent. The written agreement should have appropriate legal review and should reflect
0
standard terms and conditions, termination conditions, insurance requirements, disclaimers of liability for certain losses and the stated value of the donation of space. All transactions relating to tower space rental should be recorded on the
0
books and records of the Commission, including in-kind contributions to other agencies.
0
0
NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
0
Finding Control Number: FS-8504-01-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT . Failure to Maintain General Fixed Assets Account Group
0
0
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
0
and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to
0
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
0
limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should
0
be maintained of all additions and deletions to the General Fixed Assets Account Group.
0
NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
0
0
Finding Control Number: FS-8524-01-02 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Failure to Maintain General Fixed Assets Account Group
0
The North Georgia Regional Educational Service Agency (RESA) did not maintain a General Fixed Assets Account Group
0
within the formal accounting records. This condition results in the financial statements of the RESA being incomplete and
0
not in accordance with generally accepted accounting principles. Appropriate action should be taken by the RESA to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These
0
subsidiary records should include an inventory of equipment owned by the RESA and should include, but may not be
0
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.
0
0
METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY
0
Finding Control Number: FS-8564-01-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
.Failure to Maintain General Fixed Assets Account Group
0
The Metropolitan Regional Educational Service Agency did not maintain a General Fixed Assets Account Group within
0
the formal accounting records. This condition results in the financial statements of the Agency being incomplete and not in
0
D-38
0
.. . ..: ~ ~
t' - .
Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
FINANCIAL STATEMENT FINDINGS
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-8604-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The West Georgia Regional Educational Service Agency does not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group .
OCONEE REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8664-01-01 GENERAL FIXED ASSETS/PROPERTY 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 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 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-8724-01-01 GENERAL FIXED ASSETS/PROPERTY 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 financial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
D-39
0
0
0
Findings and Questioned Costs
0
For the Ascal Year Ended June 30, 2001
0
0
FINANCIAL STATEMENT FINDINGS
0
0
HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
0
Finding Control Number: FS-8764-01-01
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GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
0
0
The Heart of Georgia Regional Educational Service Agency did not maintain a General Fixed Assets Account Group
0
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
0
establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These
0
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
0
maintained of all additions and deletions to the General Fixed Assets Account Group.
0
FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY
0
0
Finding Control Number: FS-8804-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Failure to Maintain General Fixed Assets Account Group
0
The First District Regional Educational Service Agency did not maintain a General Fixed Assets Account Group within the
0
formal accounting records. This condition results in the general purpose financial statements of the Agency being
Q
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
0
Group. These subsidiary records should include an inventory of equipment owned by the Agency and should include, but
0
may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed
0
records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
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D-40
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FEDERAL A-w-.ARJ::S
FrNDIN~ AND Q.;Es;rroNED ~
Federal Awards Findings and Questioned Costs Table of Contents
For the Fiscal Year Ended June 30, 2001
ENTITY CODE
ORGANIZATIONAL UNIT
PAGE NO
414 419 427 469 484
503 518 521 527 533 548 561
818 918 8524
Education, Department of............................................................................:........................ D-44 Community Health, Department of ...................................................................................... 0-46 Human Resources, Oepart:rnent of........................................................................................ D-47 School Readiness, Office of ................................................................................................. D-49 Transportation, Oepart:rnent of.............................................................................................. 0-50 Colleges and Universities
Georgia Institute of Technology .................................................................................... 0-50 University of Georgia ..........................,.............................................................;........... 0-54 Albany State University................................................................................................. 0-56 Augusta State University ............................................................................................... D-56 Fort Valley State University .......................................................................................... D-56 Savannah State University .............................................................................................0-59 Atlanta Metropolitan College ........................................................................................ 0-63 Technical Colleges Okefenokee Technical Colleg~ ...................................................................................... D-64 Higher Education Assistance Corporation, Georgia ............................................................. 0-64 North Georgia Regional Educational Service Agency ......................................................... D-66
0-43
Federal Awards Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
DEPARTMENT OF EDUCATION
Finding Control Number: FA-414-01-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Our examination included a review of the internal accounting controls utilized by the Department of Education in maintaining their property management system. This review also included testing the system for compliance with Federal laws and regulations. The following conditions relating to inappropriate accounting practices were found to exist:
1. Equipment additions were not reconciled to the general ledger expenditure accounts.
2. Equipment inventory records for additions were updated incorrectly. Testing of current year additions revealed two (2) additions that bad been updated onto the equipment inventory records incorrectly by the amount of$6,427.75.
In addition, six-hundred-thirty-six (636) equipment items were selected from certain locations to test the accuracy of the Department's property management records. These items contained a value of $1,515,295.46 out of a population of $9,645,639.85 and were selected for the purpose of locating the equipment as recorded in the inventory records. Total general fixed assets of the Department amounted to $40,094,273.22. The following deficiencies were noted:
1. Twenty (20) items totaling $47,018.53 could not be located.
.2. Nine (9) items were found in focations other than the location indicated in the equipment inventory records.
3. One (1) item was found that was recorded as missing on the inventory records.
Also, during the physical inspection testing, seventy-seven (77) items of equipment were located in our test locations, which were not included in the equipment inventory records for the particular location. The majority of these items were in the Instructional Technology location.
The Department is required to maintain equipment inventories in accordance with provisions of paragraph 32 of OMB's Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (Common Rule). The discrepancies identified above were caused by the Department's failure to follow guidelines for. inaintaining equipment inventories.
Failure to maintain accurate equipment inventory records causes internal reports to management to be misleading and can result in erroneous decisions by management concerning current and future equipment needs.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with provisions of OMB's Common Rule.
Federal Program/Award Affected:
U.S. Department of Education Title I Grants to Local Educational Agencies - CFDA No. 84.010
Federal Agencies With Other Affected Programs:
U. S. Department of Agriculture U. S. Department of Education
D-44
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I,.....~
..
Federal Awards 'findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
Finding Control Number: FA-414-01-02 SUBRECIPIENT MONITORING Approval for Improper Expenditures Vocational Education - Basic Grants to States (CFDA 84.048) Amount: $18,178.00
The management report for fiscal year 2000 reflected questioned costs of $8,978.00 for the purchase of computer equipment and $9,200.00 for services provided by a subrecipient vendor. These amounts were charged as direct expenditures to Perkins ill Program administration funds. The Georgia Department of Education's (GDOE) response to this finding (FA-414-00-03), as shown in Section II of this report (Auditee's Response to Prior Year Findings and Questioned Costs), indicated that the finding concerning the subrecipient was resolved. The Department of Audits and Accounts does not believe that sufficient corrective action was implemented by GDOE to resolve this finding. GDOE based its conclusion to resolve this finding on inadequate documentation gathered by Department personnel relative to the approval of direct expenditures.
In our prior year finding (FA-414-00-03), we reported that the acquired computer equipment was utilized by the North Georgia Regional Educational Service Agency (RESA) to upgrade the RESA's computer hardware to facilitate accounting software required by the GDOE. We found that such a cost was not totally and directly related to Perkins ill and in line with OMB Circular A-87 provisions. Accordingly, we found that such a cost should be treated as an indirect cost and thus claimed through the RESA's approved indirect cost. rate. With respect to the $9,200.00 payment made to a vendor, we found that there was insufficient documentation to determine that services and materials were provided by the vendor as indicated on the vendor's invoice. Without sufficient documentation that services were rendered by the vendor, the payment to the vendor and charges to Perkins III funds were unallowable.
It is the position of the Department of Audits and Accounts that the additional documentation provided by GDOE supporting resolution of these two charges against Perkins III funds was insufficient. While GDOE provided documentation indicating that the computer equipment would be utilized for services requested by GDOE for the Vocational Education program, GDOE was unable to substantiate that the purchased computer equipment was allowable as a direct charge against Perkins III funds. Further, our review of the additional documentation provided by GDOE to support the services provided by the vendor did not sufficiently justify the cost to Perkins III funds. Given the above, we believe that the questioned costs of$18,l 78.00 remains unresolved.
We recommend that the United States Department of Education review this matter to determine the manner in which the $18,178.00 of questioned costs should be resolved.
Finding Control Number: FA-414-01-03 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 to determine the status of subrecipient audit reports for the year ended June 30, 2000. Of the two-hundred-fifty-five (255) subrecipients identified on the tracking documents, two-hundred-two (202) 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 two-hundred-two (202) audits not submitted by the due date indicated that thirteen (13) had not been submitted by January 31, 2002. It was noted during our examination that the Department of Education utilized a program review staff for interim compliance reviews of all subrecipients in accordance with the provisions of OMB Circular A-133 .
D-45
0
0
0
Federal Awards Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FEDERAL AWARDS FINDINGS
0
0
Federal Programs/Awards Affected:
0
U.S. Department of Education
0
Title I Grants to Local Educational Agencies - CFDA No. 84.010 Special Education Cluster
0
Special Education - Grants to States - CFDA No. 84.027
0
Special Education - Preschool Grants - CFDA No. 84.173 Vocational Education - Basic Grants to States - CFDA No. 84.048
0
0
Federal Agencies With Other Affected Programs:
0
U.S. Department of Agriculture
0
Corporation for National and Community Service
0
U.S. Department of Defense
U.S. Department of Education
0
U. S. Department of Health and Human Services
0
DEPARTMENT OF COMMUNITY HEALTH(*)
0
0
,Finding Control Number: FA-419-01-01 REPORTING
0
Reports not Properly Reconciled to the Accounting Records
0
Medicaid Cluster Program Medical Assistance Program (CFDA 93.778)
0
State Children's Health Insurance Program (CFDA 93.767)
0
Questioned Cost: $526,974
0
Criteria:
Federal rules require the Department of Community Health to file quarterly HCFA-64 and HCFA-
0
21 reports. Such reports are required to be filed on the last day of the month following the close of each calendar year quarter. The reports are required to be accurate and complete, and in
0
agreement with the accounting records that support the audited financial statements and the
0
schedule of expenditures of federal awards. The HCFA-64 reports relate to the Medicaid Assistance Program, and the HCFA-21 reports relate to the State Children's Health Insurance
0
Program.
0
Condition:
During performance of our annual auditing procedures, we obtained a reconciliation of the
0
amounts carried on the schedule of expenditures of federal awards for the year ended June 30,
0
2001 to the aggregation of the quarterly amounts on the respective HCFA-64 and HCFA-21 reports. However, we noted reconciling amounts for both series of reports which may represent
0
overages in federal funds obtained, respectively.
0
Context:
The HCFA-64 reports reconciliation reflected an unreconcilable difference in the amount of
0
$142,363. The Department was unable to detennine the specific elements of this difference.
0
The HCFA-21 reports reconciliation reflected over claimed expenditures by the Department in the
0
amount of $384,611. The Department was able to detennine the specific elements of this
0
reconciling amount and has made the correction in the HCFA-21 report for the quarter ending September 30, 2001.
0
0
Cause:
Management did not have procedures in place to review and reconcile the HCFA-64 and HCFA21 reports to the schedule of expenditures of federal awards on a quarterly basis.
c c
(*) THIS ORGANIZATIONAL UNIT WAS AUDITED BY OTHER AUDITORS
c
D-46
c
;;.a.;-::.. '
. ,::; ~' : ~;-
~-.f .
Federal Awards Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
Effect:
The balance noted in the respective reconciliations may require the Department to refund the reconciling amounts that existed as of June 30, 2001.
Questioned Cost:
$526,974
Recommendation:
Management should develop procedures to review and reconcile the quarterly HCFA-64 and HCFA-21 reports to the quarterly amounts on the schedule of expenditures of federal awards.
DEPARTMENT OF HUMA..~ RESOURCES
Finding Control Number: FA-427-01-01 ELIGIBILITY Deficiencies in File Maintenance Teinporary Assistance to Needy Families (CFDA 93.558) Questioned Cost: $13,107.00
Our examination included a review of one hundred eighteen (118) client case files 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. These items contained a value of $161,407.00 out of a sample population of 85,821 cases totaling $139,573,702.40. Our examination revealed that two client folders could not be located and six client files were incomplete which resulted in $13,107.00 oflmown questioned costs. 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.
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-427-01-02 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: $1,387.00
Our examination included a review of one-hundred (100) case files 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. These items contained a value of $40,982.00 out of a sample population of $32,036,892.97. Our examination revealed that six payments did not meet program requirements which resulted in $1,387.00 oflmown questioned costs. A projection of these errors to the total sample population resulted in a likely questioned cost in excess of$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 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 .
D-47
0
0
0
Federal Awards Findings and Questioned Costs
0
For the Ascal Year Ended June 30, 2001
0
0
FEDERAL AWARDS FINDINGS
0
0
Finding Control Number: FA-427-01-03 ELIGIBILITY
0
Deficiencies in File Maintenance
0
Food Stamp Cluster Food Stamps (CFDA 10.551)
0
State Administrative Matching Grants for Food Stamp Program (CFDA 10.561)
0
Questioned Cost: $13,585.00
0
Our examination included a review of one hundred twenty-six (126) client case files from the Food Stamp Program at
0
certain county Department of Family and Children Services (DFACS) offices to determine if benefit payments were made within program guidelines. These items contained a value of $203,702.00 out of a sample population of 66,501 cases
0
totaling $159,367,093.90. Our examination revealed that four client folders could not be located and five client files were
0
incomplete which resulted in $13,585.00 of questioned costs. 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
0
included and maintained in client files at the county Department of Family and Children Services offices.
0
Failure to properly maintain client files can result in direct material effects on the financial statements. The Department of
0
Human Resources should ensure that procedures are in place to provide for proper maintenance of client files and that ail
0
required data for eligibility determination is included in the file.
0
Finding Control Number: FA-427-01-04
0
EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
0
0
Our examination included a review of the internal accounting controls utilized by the Department of Human Resources in
0
maintaining their property management system and also included testing the system for compliance with Federal laws and
regulations. This review revealed that equipment additions were not reconciled to the general ledger expenditure accounts.
0
0
In addition, 408 equipment items were selected at certain locations for testing the accuracy of the Department's general
fixed asset records. The sample items contained a value of $4,220,579.06 out of a population of 12,627 items totaling
0
$29,754,682.28 at the tested .locations and were selected for the purpose of locating the equipment. Total general fixed
0
assets of the Department amounted to $175,942,596.24. The following deficiencies were noted:
0
1. Eight (8) items totaling $42,515.00 could not be located.
0
2. Twenty (20) items totaling $137,956.70 were surplused, but were not removed from the equipment
0
inventory records.
0
3. Twenty-five (25) items located utilizing serial numbers did not have decal numbers attached.
0
0
4. Five (5) items were located with the wrong decal attached.
0
5. One (1) item totaling $1,895.00 was documented as missing, but was not included in the missing
0
category on the equipment inventory records.
0
The Department is required to maintain equipment inventories in accordance with provisions of paragraph 32 of OMB's
0
Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (Common Rule) and State laws and regulations. The discrepancies identified above were caused by the Department's failure to follow
0
guidelines for maintaining equipment inventories.
0
Failure to maintain accurate equipment inventory records causes internal reports to management to be misleading and can
0
result in erroneous decisions by management concerning current and future equipment needs.
0
0
D-48
0
Federal Awards Findings and Questioned Costs For the Ascal Year Ended June 30. 2001
FEDERAL AWARDS FINDINGS
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with provisions ofOMB's Common Rule and State laws and regulations.
Federal Programs/Awards Affected:
U. S. Department of Agriculture Food Stamps - CFDA 10.5511561
U.S. Department of Education Vocational Rehabilitation - CFDA 84.126
U. S. Department of Health and Human Services Temporary Assistance for Needy Families - CFDA 93.558 Low Income Home Energy Assistance Program - CFDA 93.568 Child Care and Development Fund Cluster - CFDA 93.575/596 Foster Care Program - CFDA 93.658 Adoption Assistance - CFDA 93.659 HN Care Formula Grant- CFDA 93.917
OFFICE OF SCHOOL READINESS
Finding Control Number: FA-469-01-01 SUBRECIPIENT MONITORING Subrecipient Audit ReportS Not Received and Not Followed-up on Deficiencies Within the Required Time Periods
As part of our examination, we reviewed the tracking documents used by the Office of School Readiness to determine the status of subrecipient audit reports for the year ended June 30, 2000. While trying to obtain a tracking document used by the Office, we received several different lists of subrecipients. Due to these different tracking documents, we were not
assured that the Office had an accurate list ofsubrecipients that fall under OMB Circular A-133. Of the one-hundred-forty-
seven (147) subrecipients identified on the final tracking document, eighty-nine (89) 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 eighty-nine (89) audits not submitted by the due date indicated that fifteen (15) had not been submitted by January 17, 2002.
During our review of the subrecipient audit files, it was noted that the follow-up on audit deficiencies was not always completed within six months after receipt of the audit report as required by OMB Circular A-133.
The Office should establish the necessary internal controls to ensure that their staff is aware of subrecipients who fall under OMB Circular A-133, reports are submitted _within the nine-month period, and the follow-up is completed within six months after receipt ofthe audit report.
Federal Programs/Awards Affected:
U. S. Department of Agriculture Child Nutrition Cluster Summer Food Service Program - CFDA 10.559 Child and Adult Food Care Program - CFDA 10.558
D-49
0
0
0
Federal Awards Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FEDERAL AWARDS FINDINGS
0
0
DEPARTMENT OF TRANSPORTATION
0
Finding Control Number: FA-484-01-01
0
EQUIPMENT AND REAL PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
Our examination included a review of the internal accounting controls utilized by the Department of Transportation in
0
maintaining their property management system This review also included testing the system for compliance with Federal
laws and regulations. This review revealed that equipment inventory records for deletion of items originally purchased
0
with Federal funds were not maintained in a manner that could be tested.
0
The Department is required to maintain equipment inventories in accordance with provisions of paragraph 32 of OMB's
0
Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (Common
0
Rule). The discrepancies identified above were caused by the Department's failure to follow guidelines for maintaining
equipment inventories.
0
0
Failure to maintain accurate equipment inventory records causes internal reports to management to be misleading and can result in erroneous decisions by management concerning current and future equipment needs.
0
0
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with provisions of OMB's Common Rule.
0
0
Federal Programs/Awards Af(ected:
0
U. S. Department of Transportation
0
Highway Planning and Construction - CFDA No. 20.205
0
GEORGIA INSTITUTE OF TECHNOLOGY(*)
0
0
Finding Control Number: FA-503-01-02 REPORTING
0
Reports Not Submitted in a Timely Manner
0
Research and Development Cluster
0
Statement of Condition
0
Numerous reports required by grant and contractual agreements entered into by GTRC and various Federal agencies were
0
not filed on time, as specified in the grant and contractual agreements.
0
Criteria
0
0
The reporting compliance requirement mandates 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
0
the only required output of a given contract and, consequently, should be filed on time.
0
0
0
Since the reports listed below were ultimately filed, the effect of untimely filing is the possible delay of other projects which were related to GTRC and GIT grants and contracts.
0
0
(*) CERTAIN FEDERAL COMPLIANCE REQUIREMENTS FOR THE RESEARCH AND DEVELOPMENT CLUSTER OF THIS ORGANIZATIONAL UNIT WERE AUDITED BY OTHER AUDITORS
0
0
D-50
0
~1B.
Federal Awards Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
Agency U. S. Dept. of Energy
CFDA
Contract No.
81
DE-FC36-00G
010600
I U. S. Dept. of 81
Energy
U. S. Dept. of 81 Energy
DE-FC36-00G 010600
DE-FC02-99E
U. S. Dept. of 84 Education
EPA
66.5
P220A990011 R827028
Nat'l Science 47.070 ESI-9818828 Foundation
Nat'l Science Foundation
Nat'l Science Foundation
Dept. of Defense
Army
DARPA
47.070 DMI-9980804
47.049 ANI-9876573
12
NOOO 19-00-9-0315
12
DAAB07-99-C-K.530
12
MDA972-99-1-0002
Boeing
12
F33615-99-C-1500
Company
DIIBS
93
U50/ATU4992806
NSF
47
CMS-9978630
NSF
47.076 HRD-9817632
GTRC/GIT Ref. No.
E-21-F60
E-21-F-60
Report Notice of Energy R&D 711100 to 6/30/01
Progress Report 4/1/01 to 6/30/01
E-21-E46
Informal Technical Progress Report 8/1/00-7/31101
M-22-646
Performance Report 10/1/99-9/30/00
E-20-E42
Annual Progress Report 1/15/00-1114/01
C-6-652
Annual Progress Report 9/1/00-8/31/01
E-19-Y06
Annual Report 9/1100-8/31101
E-21-E05
Annual Report 4/1/00-3/31/01
A-6293
Quarterly Reports
A-6100 B-12-DOO E-16-R32 E-20-E12 E-20-F06 I-66-803
Quarterly Reports
Quarterly R&D Status Report
Informal Status Report
Annual Progress Report
Annual Progress Report
Annual Progress Report
Date Date Due Mailed 8/01/00 8/29/00
7/31/01 8/2/01
511101
10/15/01
9130100 2/1/01 4114101 517101
6/30/01 7120101
611101
917101
111101
7112101
8/31/00 2/28/01
10/6/00 3/23/01
1/14/01 2/28/01
3/31/01 6/30/01
5/2/01 7126101
7/10/00 8/3/00 11110/00 11/20/00
12/29/00 1/10/01
12/31101 1/13/01
4/15/01 5/2/01
D-51
0
0
0
Federal Awards findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FEDERAL AWARDS FINDINGS
0
0
0
The cause of untimely filing, as stated to us by GTRC and GIT personnel, was the unavailability of data necessary for the
0
completion of the required reports.
0
Recommendation
0
Efforts should be made by GTRC and GIT to ensure that all required contractual deliverables are submitted to the
0
contracting agencies by the specified due dates.
0
Questioned Cost
0
0
None
0
Finding Control Number: FA-503-01-03
0
REPORTING Failure to Submit Reports Required by Special Contract Provisions
0
Research and Development Cluster
0
Agency Anny
CFDA No.
Contract No.
12
DAAB07-99-C-K530
Ref.No.
0
0
A-6100
Yearly Report due 10/30/00
0
Could not be found
0
Statement of Condition
0
A report required by a grant and contractual agreement entered into by GTRC and a federal agency does not appear to have
been filed as required by the special provisions of the contract.
0
0
Criteria The special tests and provisions compliance requirement requires adherence to unique provisions of each contract that
0
could have a direct and material effect on the major program.
0
Effect
0
The required report was not submitted ill accordance with grant or contract requirements, consequently the special tests and
0
provisions compliance requirement has not been met with respect .to this report.
0
Cause
0
Human errors and oversight caused this report to not be submitted.
0
Recommendation
0
GTRC and GIT should establish a procedure to ensure that special provisions are adequately reviewed and monitored, and that required reports are submitted to the appropriate agency in a timely fashion.
0
0
Questioned Costs None
0
0
0
0
0
0
0
D-52
0
Federal Awards Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
Finding Control Number: FA-503-01-04 REPORTING Failure to Identify Required Reports Research and Development Cluster
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 below on this schedule. Therefore, submission of these reports is not being monitored.
Agency
CFDA No.
Contract No.
Ref. No.
USAF
12
F09603-95-G-0008-0026 A-5567
Contract Data Requirements list two
conflicting reports labeled "A003."
One is due monthly and the other is
due in 10 months.
USAF
12
F09603-95-G-0008-0026 A-5567
Schedule ofDeliverables Report
titles "Test Requirements Document"
is not on schedule.
Navy
12
N68786-98-D-1937-0001 A-5717
7 reports are not included in Contract
Data Requirements List. Reports
titles "Draft" and "Final Report" are
included in Schedule ofDeliverables
b:ut are not included in Contract Data
Requirements List.
NSF
47
CMS-9978630
E-20-F06
Annual Progress Report due date is
incorrect.
Criteria The reporting compliance requirement mandates 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 deliverables.
Questioned Costs None
D-53
Federal Awards findings and Questioned Costs
For the Ascal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
Finding Control Number: FA-503-01-05 REPORTING Financial Reports Not Submitted in a Timely Manner Research and Development Cluster
Agency
Army
CFDANo.
Contract No.
Ref.No.
12
SPA4800-99-2-0013 N-20-892
Financial Status Quarterly Report
7/30/00 Not Mailed
Statement of Condition A report required by grant and contractual agreements entered into by GTRC and various Federal agencies was not filed on time, as specified in the grant and contractual agreements.
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, should be filed on time.
Effect The report listed in this finding was not filed. The effect of not meeting filing requirements is the possible delay of other projects which are related to GTRC and GIT grants and contracts.
Cause The 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 Efforts should be made by GTRC and GIT to ensure that all required contractual deliverables are submitted to the contracting agencies by the specified due dates.
Questioned Cost None
UNIVERSITY OF GEORGIA(*)
Finding Control Number: FA-518-01-01 REPORTING Financial Reports Not Properly Filed for Subrecipient Awards from the University of Georgia Research Foundation Inc.
Condition: 1 of the 50 expenditures selected for testing included financial reports that were not filed timely.
The following table lists the financial reports not filed timely:
Budget Number
Grant Number
C.F.D.A.#
Due Date
Date Submitted
10-21-RR274-180
AA-07473
93.272
09128100
11/15/00
(*) FEDERAL COMPLIANCE REQUIREMENTS OF THIS ORGANIZATIONAL UNIT WERE AUDITED BY OTHER AUDITORS
D-54
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0
0 0
0 0 0 0 0 0 0 0
0 0
0 0 0 0 0 0 0 0 0' 0 0 0 0 0 0 0 0
0
Federal Awards Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
Criteria: Attachment H of OMB Circular A-110 establishes requirements for monitoring and reporting program performance .
Effect: The University failed to comply with the applicable financial reporting requirements, which could result in loss of federal funds .
Cause: The cause of this finding appears to be noncompliance with existing internal control features as opposed to the absence of such controls.
Recommendation: The University should continue its efforts to .ensure that the improved internal controls for the monitoring of required reports, which were established during fiscal 1992, are being adhered to. The University should consider developing a monthly report that lists all delinquent required reports. This list should be reviewed by University personnel in order to monitor the timeliness of required reporting.
Finding Control Number: FA-518-01-02 REPORTING Financial Reports Not Properly Filed for Federal Awards Direct to the University
Condition: 4 of the 50 expenditures selected for testing included financial reports that were not filed timely.
The following table lists the financial reports not filed timely:
Budget Number
Grant Number
C.F.D.A.#
Due Date
Date Submitted
10-31-RE581-297 10-3 l-RE58 l-297
10-3 l-RE581-315 10-31-RE581-315
427-3-01609 427-93-01609
427-93-11899 427-93-11899
10.561 10.561
10.561 10.561
07/30/00 11/14/00
01/30/01 07/30/01
08/11/00 1/4/01, revised filed 07/11/01 03/21/01 Not filed as of report date
Criteria: Attachment H of OMB Circular A"l 10 establishes requirements for monitoring and reporting program performance .
Effect: The University failed to comply with the applicable financial reporting requirements, which could result in loss of federal funds .
Cause: The cause of this finding appears to be noncompliance with existing internal control features as opposed to the absence of such controls.
Recommendation: The University should continue its efforts to ensure that the improved internal controls for the monitoring of required reports, which were established during fiscal 1992, are being adhered to. The University should consider developing a monthly report that lists all delinquent required reports. This list should be reviewed by University personnel in order to monitor the timeliness of required reporting.
D-55
0
0
0
Federal Awards Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FEDERAL AWARDS FINDINGS
0
0
ALBANY STATE UNIVERSITY
0
Finding Control Number: FA-521-01-01
0
CASH MANAGEMENT
0
Excessive Cash Balances
0
A review of the cash management procedures for the Federal Direct Student Loan Program disclosed that cash draws were
0
made in advance of immediate cash needs. During the year under review, the University had excessive cash balances for
88 days with an average cash balance of$91,514.97 for these days.
0
0
Federal cash draws should not exceed the immediate need. The excessive cash balances were the result of management's failure to forecast needs of this program and to have controls in place and operational to prevent excess cash balances.
0
Procedures should be implemented by the University to ensure that requests for cash draws do not exceed the immediate
0
need. Federal Programs/Awards Affected:
0
0
Student Financial Aid Cluster Program U.S. Department of Education
0
Federal Direct Student Loan Program (CFDA 84.268)
0
AUGUSTA STATE UNIVERSITY
0
0
Finding Control Number: FA-527-01-01
0
MATCHING, LEVEL OF EFFORT AND/OR EARMARKING
Failure to Provide Institution Capital Contribution
0
Student Financial Aid Cluster Program
0
Federal Perkins Loan Program (CFDA 84.038)
0
For the year under review, the University failed to provide the required matching funds for the Institution Capital
0
Contribution for the Federal Perkins Loan Program as required by Federal Regulations (34 CFR 674.19). The University
under-matched the program by $798.00.
0
0
This condition occurred because management failed to adequately monitor controls to ensure that matching requirements were met. Management should establish appropriate procedures to strengthen internal controls and to ensure that matching
0
requirements are met.
0
FORT VALLEY STATE UNIVERSITY
0
0
Finding Control Number: FA-533-01-01 CASH MANAGEMENT
0
Excessive Cash.Balances
0
Student Financial Aid Cluster Program
a
A review of cash management procedures for the Federal Direct Student Loan Program disclosed that, in one instance, a
0
cash draw was made in advance of immediate needs, resulting in the accumulation of an excessive cash balance.
a
Attachment F of OMB Circular A-110 requires institutions to minimize the time elapsing between the transfer of funds from the Federal Treasury and the disbursement by the institution. For Fort Valley State University, which uses
a
FEDWIRE, this means need for one day.
a
This error was a result of the University inadvertently recording expenditures twice in the accounting records. Action
0
should be taken by the University to ensure that requests for cash advances do not exceed the immediate need. The
a
University should contact the U.S. Department of Education regarding the resolution of this finding.
a
D-56
a
Federal Awards Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
Federal Programs/Awards Affected: Student Financial Aid Cluster Program
U.S. Department ofEducation Federal Direct Student Loan Program (CFDA 84.268)
Finding Control Number: FA-533-01-02 ELIGIBILITY Failure to Maintain Adequate Documentation Student Financial Aid Cluster Program Questioned Cost: $11,000.00
A test of the Federal Direct Student Loan Program (Plus) loans disbursed during the year was performed and revealed that two student's files did not contain a PLUS loan application, however the students received a PLUS award and disbursement. Federal regulation (34 CFR 668.24) states that the institution should maintain application data submitted to the lender by the institution on behalf of the student or parent. All files presented for audit should be complete and support all aid awarded. This noncompliance resulted in questioned costs of$1 l,OOO.OO.
The above instance of noncompliance resulted from a weakness in the internal control procedures over the Federal Student Financial Aid Cluster Program. Procedures were not in place to ensure that student financial aid files were complete and properly maintained. 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 ofEducation Federal Direct Student Loan Program (CFDA 84.268)
Finding Control Number: FA-533-01-03 ELIGIBILITY Failure to Notify Students of Awards Student Financial Aid Cluster Program Questioned Cost: $10,017.82
A sample of fifty financial aid files was selected to determine if financial aid was properly awarded and disbursed to eligible students. Federal regulation (34 CFR 668.165) states, "Before an institution disburses Title IV, HEA program funds for any award year, the institution must notify a student of the amount of funds that the student can expect to receive under each Title IV, HEA program". The files sampled disclosed five instances where students received financial aid in excess of their award as shown below:
(1) Three students received Federal Direct Student Loans; however, the institution failed to notify the student of the award. This noncompliance resulted in questioned costs of$8,582.00.
(2) Two students received Federal work-study wages in excess of their award. This noncompliance resulted in questioned costs of$1,435.82.
These questioned costs resulted from management's failure to notify students of their financial aid award before disbursing funds to students. The University should implement procedures to ensure that students are notified of awarded financial 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.
D-57
0
0
0
Federal Awards Findings and Questioned Costs
0
For the Fiscal Year Ended Jurie 30, 2001
0
0
FEDERAL AWARDS FINDINGS
0
0
Federal Programs/Awards Affected: Student Financial Aid Cluster Program
0
U.S. Department of Education
0
Federal Work-Study Program (CFDA 84.033) Federal Direct Student Loan Program (CFDA 84.268)
0
0
Finding Control Number: FA-533-01-04 ELIGIBILITY
0
Undocumented Changes to Student Information
0
Student Financial Aid Cluster Program Questioned Cost: $3,784.00
0
0
A sample of fifty financial aid files was selected to determine if financial aid was properly calculated and disbursed to eligible students. The items sampled contained financial aid disbursements of $454,716.48 out of a population of
0
$14,531,384.29. Our examination revealed that two students received funds in excess of their eligible need.
0
Two students' dependency status was adjusted without the necessary documentation or a reasonable explanation for the
0
adjustment. Federal regulation (34 CFR 685.203) requires that all adjustments based on professional judgment be
0
reasonable and fully documented. This noncompliance resulted in questioned costs of$3,784.00.
0
A projection of these errors to the total population resulted in likely questioned cost in excess of $10,000.00.
0
The above instances of noncompliance resulted from weaknesses in the internal control procedures over the Federal
0
Student Financial Aid Cluster Program. Procedures were not in place to ensure that student financiai aid files were
0
complete and properly maintained. The University should develop and implement policies and procedures to ensure
0
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
0
the resolution of these questioned costs.
0
Federal Programs/Awards Affected:
0
Student Financial Aid Cluster Program
0
U.S. Department of Education
Federal Direct Student Loan Program (CFDA 84.268)
0
0
Finding Control Number: FA-533-01-05 REPORTING
0
Expenditures in Excess of Authorization
0
Student Financial Aid Cluster Program
0
The Statement of Account report from the U. S. Department of Education indicated that the University was authorized to
0
expend $3,734,408.25 in Federal Pell Grant Program funds in state fiscal year 2001. The University's accounting records, however, reflected $3,744,385.00 for fiscal year 2001 Pell Grant expenditures. As a result, the University expended
0
$9,976.75 in excess of the authorized amount. In order to be reimbursed for the excess Pell Grant program expenditures,
0
the University, in conformity with Federal Statutes, must certify the validity of these excess payments to the U. S. Department of Education. The Federal agency can then provide appropriate adjustments of the fiscal year 2001 authorized
0
amount in order to make the funds available to the University.
0
Federal Programs/Awards Affected:
0
Student Financial Aid Cluster Program
0
U.S. Department of Education Federal Pell Grant Program (CFDA 84.063)
0
0
0
D-58
0
Federal Awards Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
Finding Control Number: FA-533-01-06 REPORTING Reports Not Reconciled Student Financial Aid Cluster Program
For the year under review, amounts 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:
1) The Pell Year to Date Report and the Statement of Account, which reports Federal Pell Grant Program expenditures for the year, were not reconciled to the accounting records.
2) The Fiscal Operations and Application to Participate (FISAP) report had amounts reported for the Federal Work-Study Program and the Perkins Loan Program that did not reconcile to the accounting records .
3) The University did not reconcile monthly the Federal Direct Loan Program to the accounting records in accordance with Section 2 of The Blue Book.
Federal regulations (34 CFR 674.19, 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 reports submitted 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)
SAVANNAH STATE UNIVERSITY
Finding Control Number: FA-548-01-01 ACTIVITIES ALLOWED OR UNALLOWED Improper Activity Higher Education - Institutional Aid (CFDA 84.031) Questioned Cost: $565 .00
At June 30, 2001, the University's accounting records reflected $565.00 of expenditures for "University's Image Building". In a letter dated June 27, 2001, based on their review, the U. S. Department of Education (USDOE) determined these types of expenditures to be unallowable according to Federal Regulation (34 CFR 608.10). No refund of this unallowable cost was requested by USDOE. In the subsequent fiscal period, the University incurred additional expenditures of $45,605.86 for "University's Image Building", which also appear unallowable. The University's failure to adhere to the Federal regulations governing allowable activities will result in questioned cost in the audit report for the subsequent year.
D-59
0
0
0
Federal Awards Findings and Questioned Costs
0
For the Flscal Year Ended June 30, 2001
0
0
FEDERAL AWARDS FINDINGS
0
0
Finding Control Number: FA-548-01-02
ALLOWABLE COSTS/COST PRINCIPLES
0
Excessive and Improper Expenditures
0
Higher Education - Institutional Aid (CFDA 84.031) Questioned Cost: $117, 179.08
0
0
For the year under review, our examination of 67 expenditure vouchers revealed the University failed to comply with the general provision for allowable cost according to OMB Circular A-21, Sections C and J. The following were excessive
0
and/or improper expenditures:
0
1) Eight vouchers failed to meet the criteria necessary to be considered an allowable advertising and/or
0
public relations cost resulting in questioned cost of$76,814.89. The unallowable expenditures included
0
and were not limited to payments for University logo design, radio advertisement and University memorabilia.
0
0
2) Two vouchers, totaling $2,268.61, were for costs to frame student artwork. These expenditures failed to meet the requirements for activities that may be carried out under the grant.
0
0
3) Four vouchers for receptions and meals totaling $4,927.54 were unallowable entertainment expenditures.
0
4) One voucher included excessive rental cost of$3,985.10.
0
5) One voucher included unallowable meal costs of$13.00. This amount was approved in error as part of
0
an employee's travel reimbursement.
0
0
Additional instances of noncompliance were noted while performing other audit procedures.
0
1) One travel voucher was considered excessive in the amount of$72.00.
0
2) Two vouchers exceeded the U. S. Department of Education specific budget allowances for an
0
international trip resulting in questioned cost of$1,810.40.
0
3) An examination of seven journal entries disclosed an instance of duplicate program expenditures being
0
recorded, resulting in questioned cost of $4,899.54.
0
An on-site review performed by the U. S. Department of Education's Program Monitoring and Information Technology
0
Services revealed the following:
0
1) International student travel and program costs in the amount of $15,912.00 were incurred after failing to
0
obtain approval from the U.S. Department of Education.
0
2) Local travel for a 14-member delegation to attend the University's International Education Symposium
0
was deemed to be excessive in the amount of$6,476.00.
0
These conditions were the result of management's failure to comply with OMB Circular A-21 and failure to adhere to
0
restricted budget allowances mandated by the U. S. Department of Education. The University should develop and
0
implement policies and procedures to ensure that program expenditures are allowable according to Federal regulations and according to restricted approved budgets issued by the U. S. Department of Education. In addition, the University should
0
develop a monitoring process to ensure that controls are being followed. The University should contact the U.S.
0
Department of Education for resolution of this finding.
0
0
0
D-60
0
.,-..._.....,...,,.'- ...J--,. -
Federal Awards Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
Finding Control Number: FA-548-01-03 ALLOWABLE COSTS/COST PRINCIPLES Time and Effort Report Deficiencies Higher Education - Institutional Aid (CFDA 84.031)
For the year under review, our examination of sixty time and effort reports for five employees revealed the following
deficiencies:
1) Twelve time and effort reports for one employee lacked date of supervisory approval.
2) One time and effort report lacked supervisory approval.
These conditions occurred because of management's failure to ensure all time and effort reports were properly prepared by
employees.
OMB Circular A-21, requires that activity reports or other payroll documents used as original documentation for payroll and payroll charges be prepared and signed by the employee and responsible official when salaries are charged to a Federal program. Management should ensure that complete time and effort reports 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.
Finding Control Number: FA-548-01-04 ELIGIBILITY SPECIAL TESTS AND PROVISIONS Deficiencies in Internal Controls Student Financial Aid Cluster Program
During the year under review, the University failed to provide adequate internal controls for monitoring, recording and safeguarding student financial aid funds. The following deficiencies were noted:
1) Numerous University issued student financial aid checks were not distributed and were voided before determining if students were eligible to receive the funds. Procedures were not in place and operational to monitor the check voiding process and to ascertain if resulting funds should be disbursed to the student or returned to the proper grantor agency. The ,lack of controls resulted in the University having unreconciled balances on the general accounting records relating to voided student financial aid checks.
2) Management failed to properly monitor the disbursement of student financial aid checks resulting in the theft of funds. An employee in the University's Cashier's Office cashed student financial aid checks issued to students without proper endorsements.
These deficiencies were the result of management not assigning duties in a manner to adequately safeguard assets and not having written policies and procedures for the voiding of student financial aid checks. The University should review the accounting procedures in place, design procedures that would enhance segregation of duties relative to the above control categories. In addition, management should determine ifrefunds are due to students and/or grantor agencies.
Federal Programs/A~ards 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)
D-61
0
0
0
Federal Awards Findings and Questioned Costs
0
For the Ascal Year Ended June 30, 2001
0
0
FEDERAL AWARDS FINDINGS
0
0
Finding Control Number: FA-548-01-05 EQUIPMENT AND REAL PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
Higher Education - Institutional Aid (CFDA 84.031)
0
Our examination included a review of the internal accounting controls utilized by the University in maintaining their
0
property management system and also included testing the system for compliance with Federal laws and regulations. The following conditions existed:
0
0
1) The University failed to maintain a property management system that identified Federal equipment purchases by Federal grant award number. This deficiency is system-wide and affects all Federal
0
awards.
0
2) The University was unable to ensure appropriate Federal agencies were notified when disposing of
0
equipment due to inadequacies in the property management records.
0
3) The Title ID Equipment Inventory Report, as presented for audit purposes by the University's Title ID
0
office, contained numerous errors and omissions. The report listed numerous incorrect locations;
0
incorrect, missing or duplicated University decal numbers; and various omissions of Federal Share
0
percentage, dates ofpurchase, purchase prices and manufacturer's serial numbers.
0
4) Eight computers, one printer and one scanner, were not being utilized by the Title ID program for which
0
they were acquired. This deficiency was previously noted in the audit report for June 30, 1998, June 30,
1999 and June 30, 2000, for two of the aforementioned computers. University personnel assert that the
0
computers were being used in the Title III program as required. However, our examination noted that
0
the computers were not being used in the Title III program as indicated by the University.
0
The University failed to have internal controls in place and operational to ensure compliance with Federal requirements for
0
equipment as set forth in 34 CFR 74 and OMB Circular A-110, Subpart C.34. The University should establish policies and procedures to ensure that equipment purchases are identified by fund sources and grant award numbers, property records
0
are maintained in accordance with Federal requirements and physical inventories are conducted every two years. Also, the
0
University should establish policies and procedures to ensure 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
0
resolve this finding.
0
Finding Control Number: FA-548-01-06
0
SPECIAL TESTS AND PROVISIONS
0
Deficiencies in Student Financial Aid Refund Process Student Financial Aid Cluster Program
0
Questioned Costs: $10,809.60
0
For the year under review, an examination of the University's student financial aid refund process for student withdrawals
0
revealed the following deficiencies:
0
1) Unearned Title IV funds were not applied by the University to the appropriate student financial aid
0
programs for six out often students selected for refund testing, resulting in questioned cost of$4,898.76.
0
In addition, four of the students were disbursed Title IV funds greater than the amounts earned resulting in additional questioned cost of$5,668.60.
0
0
2) One student received funds from the H.O.P.E. Scholarship Program and the University failed to return unearned funds in the amount of$242.24.
0
0
0
D-62
0
.. ~
.' . v
Federal Awards Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
These deficiencies were the result of management's failure to complete the refund process in accordance with Federal regulations. The University should develop and implement procedures to ensure that unearned funds are correctly returned to the appropriate accounts in a timely manner in accordance with the Higher Education Amendments of 1998, Public Law 105-244. The University should contact the U.S. Department of Education regarding resolution ofthis fmding.
Federal Programs/Awards Af[ected:
Student Financial Aid Cluster Programs U.S. Department ofEducation 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-548-01-07 PERIOD OF AVAILABILITY Deficit Fund Balances Student Financial Aid Cluster Program
At June 30, 2001, the University's Federal Pell Grant Program had deficit fund balances of$112,135.28 for the fiscal year 1999 grant and $52,518.00 for the fiscal year 2001 grant. Also, the Federal Direct Loan Program maintained deficit fund balances of $18,674.96 for the fiscal year 1998 program and $83,967.00 for the fiscal year 1999 program. These deficit fund balances were the result of management's failure to establish controls to ensure that funds are disbursed only upon proper authorization.
The University should implement procedures to ensure that funds are available to cover valid expenditures. In order to be reimbursed for these excess expenditures, the University, in conformity with Federal statutes, must certify the validity of these payments to the U.S. Department of Education.
Federal Programs/Awards Affected:
Student Financial Aid Cluster Programs U.S. Department of Education Federal Pell Grant Program (CFDA 84.063) Federal Direct Student Loan Program (CFDA 84.268)
ATLANTA METROPOLITAN COLLEGE
Finding Control Number: FA-561-01-01 REPORTING Failure to Reconcile Program Reports Federal Pell Grant Program (CFDA 84.063)
For the year ended June 30, 2001, amounts reported by the College to the U.S. Department of Education on the Pell Year to Date Data Report and the Pell Electronic Statement of Account (ECOA) were not reconciled to the accounting records.
Federal Regulations (34 CFR 668.24 and 690.83) require the College to ensure that fmancial 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-63
0
0
0
Federal Awards Findings and Questioned Costs
0
For the Ascal Year Ended June 30, 2001
0
0
FEDERAL AWARDS FINDINGS
0
0
OKEFENOKEE TECHNICAL COLLEGE
0
Finding Control Number: FA-818-01-01
0
ACTIVITIES ALLOWED OR UNALLOWED
0
MATCHING, LEVEL OF EFFORT, EARMARKING
Improper Expenditure of Vocational Education Funds
0
Vocational Education - Basic Grants to States (CFDA 84.048)
0
Questioned Costs: $102,129.32
0
During the year under review, the College utilized Vocational Education funds in support of personal service and other
0
costs totaling $102,129.32, of which $38,734.53 was for the Financial Aid Coordinator's office and $63,394.79 was for the Registrar's/Management Information System (MIS) Coordinator's office. The use of Vocational Education funds in
0
support of these costs was included in the College's Georgia Department of Technical and Adult Education approved grant
0
application. However, Section 235 of the Carl D. Perkins Vocational and Applied Technology Education Act of 1990 (Act) and provisions of 34 CFR 403 .111 (c) and (d) stipulate that Vocational Education funds are to be used for activities that
0
pertain to (1) providing vocational education in programs that are effective and integrate academic and vocational coi.irses
0
and (2) providing for the equitable participation of members of special populations in vocational education so these populations have an opportunity to enter vocational education that is equal to that afforded to the general student
0
population. We did not find where the expenditure of Vocational Education funds for the operation of the Financial Aid
0
Coordinator's office and those activities of the College Registrar and Management Information System position was in conformity with the scope and intent of Section 235 of the Act and 34 CFR 403.111 (c) and (d).
0
0
Additionally, we noted that the College's use of Vocational Education funds in support of the Financial Aid Coordinator's office did not conform with the " supplement versus supplant" rule as contained in 34 CFR 403.196. Provisions for this
0
requirement are also included :iri Office and Management and Budget's (OMB) Circular A-133 Compliance Supplement. 0
These regulations require that if the College provides services required to be made available either by Federal, State or local law, then Vocational Education funds may not be used to support those services. We found that the College did not
0
comply with this requirement as Federal regulations (34 CFR 668.15, 34 CFR 668.16 and provisions of the College's
0
Federal Student Financial Aid (SFA) program participation agreement with the U.S. Department of Education) require that the College is responsible for administering the Pell grant program and providing its own resources necessary to support it.
0
0
This noncompliance occurred because management did not consider Federal regulations governing the use of Vocational Education funds for allowable activities and the Federal provisions dealing with the "supplement versus supplant" rule.
0
0
The College should implement procedures to ensure that Vocational Education funds are used only for allowable activities and to "supplement" rather than to "supplant" State and local funds. The College, through the Georgia Department of
0
Technical and Adult Education and the Georgia Department of Education, should consult with the U. S. Department of
0
Education to resolve the questioned cost of$102,129.32.
0
GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION(*)
0
0
Finding Control Number: FA-918-01-01 REPORTING
0
Data Submitted to ED not Supported by the Records
0
Federal Program
0
Information:
84.032 - Federal Family Education Loan Program
0
. Criteria:
Data submitted to the Department of Education in the September 30 Form 1130 should be
0
supported by the Corporation's books and recordS.
0
(*) THIS ORGANIZATIONAL UNIT WAS AUDITED BY OTHER AUDITORS
0
0
D-64
0
. . .~
'
Federal Awards Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
Condition:
Information in the Corporation's records did not match that of the holder of the loan.
Questioned Costs:
NIA
Context:
Out of 25 loans tested, one loan totaling $900 was not confirmed.
The information reported on the Form 1130, Part #, Loan Portfolio Status as of September 30 may not be accurate ifit did not agree to the records of the lender.
Recommendation:
We recommend the Corporation reconcile its records with the lenders and resolve any differences. We also recommend the Corporation continue to implement procedures to notify holders of the loans to update the Corporation's records in a timely manner.
Finding Control Number: FA-918-01-02 REPORTING Data Submitted to ED not Supported by the Records
Federal Program Information:
84.032 - Federal Family Education Loan Program
Condition:
Unsubsidized loan$ in repayment for the guaranty agency (the Corporation) do not agree with the unsubsidized loans in repayment on the September 30, 2000 form 1130.
Questioned Costs:
NIA
Context:
Loan section A-4, Other Loans Cancelled, per the Corporation's online system totaled $53,442,859.37 and this same ~ection on the Form 1130 totaled $51,442,859.37, for a difference of $2 million.
The Form 1130 total should have been $53,442,859.37. This was a typographical error that resulted in no financial impact, as the amount is for informational purposes only.
Recommendation:
We recommend the Corporation reconcile its information with the information reported to the Department of Education on the Forml 130/Form 2000 (effective October 1, 2001) on a monthly basis.
Finding Control Number: FA-918-01-03 REPORTING Loan not Properly Assigned
Federal Program Information:
84.032 .:.. Federal Family Education Loan Program
Criteria:
Per 34 CFR section 682.409, an agency must assign any loan that meets all of the following criteria as of April 15 of each year: (1) the unpaid principal balance is at least $100; (2) the loan, and any other loans held by the agency for that borrower, have been held by the agency for at least four years (five years for fiscal years beginning July 1, 1997); (3) a payment has not been received on the loan in the last year; and (4) a judgment has not been entered on the loan against the borrower.
Condition: Questioned Costs:
A loan that met the assignment criteria was not assigned.
NIA
D-65
0
0
0
Federal Awards Findings and Questioned Costs
0
For the Ascal Year Ended June 30, 2001
0
0
FEDERAL AWARDS FINDINGS
0
Context:
0
Out of 5 loans tested, one loan met the criteria and was not properly assigned. This loan was not properly updated during the system update and had been given a temporary status
0
hold.
0
This loan was not subrogated and therefore was not removed from the Corporations'
0
receivable.
0
Recommendation:
We recommend the Corporation review all loans with an interest rate of "0%" to ensure
0
that loans that meet the four assignment criteria are properly assigned.
0
NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
0
0
Finding Control Number: FA-8524-01-01
0
ALLOWABLE COSTS/COST PRINCIPLES
Improper Indirect Cost Expenditures
0
Vocational Education - Basic Grants to States (CFDA 84.048)
0
Amount: $12,628.77
0
An examination of the Vocational Education - Basic Grants to States program (Perkins ill) at North Georgia Regional
0
Educational Service Agency (RESA) revealed excessive and unallowable costs being charged to the Federal program
through an indirect cost rate.
0
0
In accordance with OMB Circular A-87, costs can be charged to the Perkins ill funds as long as they are necessary and reasonable. For the RESA, indirect costs are claimed against Federal grants through a Georgia Department of Education
0
(GDOE) approved indirect cost rate. Such a rate is to be applied to those Federal funds where the RESA carries out
0
program and administrative responsibilities of the grant. For FY 2001, GDOE approved an 8.56% indirect cost rate for the RESA.
0
0
Our review noted the RESA performed as a fiscal agent for administering State Administration and Leadership program activities supported with Perkins III funds while GDOE carried out the program related responsibilities for these activities.
0
As fiscal agent for these two program activities, the RESA was allowed to claim indirect costs at a negotiated 6.9% indirect
0
cost rate through a GDOE approved budget. The RESA also served as fiscal agent for the Georgia Vocational Staff Development Consortium. The Consortium was also funded with Perkins III funds designated for Secondary School
0
Programs. As a fiscal agent for this program activity, the RESA was allowed to claim indirect costs at a negotiated 7.45%
0
indirect cost rate through a GDOE approved budget. The RESA claimed a total of $43,938.60 against these three program activities in fiscal year 2001. The GDOE approved rate of 8.56% would have been permitted if the RESA carried out all
0
the program services and administrative functions for these three program activities instead of merely acting as a fiscal
0
agent. Neither the RESA nor GDOE was able to provide documentation justifying that the two negotiated indirect cost rates would result in necessary and reasonable costs incurred by the RESA. Indirect costs charged by the RESA to the State
0
Administration, Leadership and Consortium funds should have been based on a lower indirect cost rate commensurate with
0
the costs incurred by the RESA in performing its duties as a fiscal agent.
0
Additionally, Section 124 of P.L. I05-332 specifically prohibits the use of Leadership funds for administrative purposes
0
and accordingly the $1,818.62 of indirect cost charged by the RESA to the Leadership funds are unallowable.
0
Furthermore, the RESA charged $38,765.00 to Perkins III Secondary School Program funds to serve as a fiscal agent for
the Consortium. Section 135(d) of P.L. 105-332 states that no more than 5% of the Secondary School Program funds may
0
be used by an entity for administrative costs. Since the RESA claimed indirect costs based on the 7.45% indirect cost rate,
0
which exceeded the maximum of5%, the RESA overcharged $10,810.15 to these funds.
0
The RESA and GDOE should evaluate, determine and document an appropriate indirect cost rate for fiscal agent
0
responsibilities performed by the RESA. Such a rate should result in a reasonable amount that would be charged to State Administration and Secondary School program activities supported with Perkins III funds. With regard to Leadership
0
funds, the United States Department of Education should be consulted to determine if indirect costs or another acceptable
0
D-66
0
-
" " ' : . . , p~ - , , . _ _
-~,
-'11.:,.
~.ti .. '.. .... .. , ~--. ~
Federal Awards Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FEDERAL AWARDS FINDINGS
means can be used to charge Leadership Program funds for costs associated with a fiscal agent. The Georgia Department of Education should review this matter and take appropriate steps to resolve the unallowable and/or excessive indirect costs charged to Perkins ill program funds. Finding Control Number: FA-8524-01-02 CASH MANAGEMENT Excessive Cash Balances Vocational Education - Basic Grants to States (CFDA 84.048) Amount: $2,778.45 A review of cash management procedures and internal controls for the Vocational Education - Basic Grants to States program (CFDA 84.048) disclosed that cash draws utilizing DE Form 147, "Quarterly Report of Expenditures and Estimated Requirement for Grant Funds", were made in advance of immediate cash needs, resulting in the accumulation of excessive ending monthly cash balances for ten months during the year under review. In accordance with A-102 Common Rule paragraph 2l(h)2(1), interest earned oti advances by local government grantees is required to be submitted promptly to the Federal grantor agency. Up to $100 per year may be kept for administrative expenses. The Vocational Education - Basic Grants to States program earned interest amounting to $2,878.45 of which $2,778.45 should have been submitted to the Georgia Department of Education. The interest earned on these program funds was recorded in the North Georgia Regional Educational Service Agency's General Fund. Management should become familiar with the Federal regulations for the Vocational Education program in order to develop adequate control procedures to ensure that the cash drawdowns of the Vocational Education Program are made based on immediate cash needs. The excessive interest earnings totaling $2,778.45 should be refunded to the Georgia Department of Education.
D-67
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0
0
0
0
0
0
0
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0
0
0
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0
0
0
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ScHEDULE OF
EXPENDI'IURES OF FEDERAL Avv.ARI:J;;,
Georgia.
Schedule of Expenditures of Federal Awards For the Ascal Year Ended June 30, 2001
Office of National Drug Control Policy Other Federal Assisiance Direct
AGENCY TOTAL
Agriculture, U. S. Department of Agricultural R<SCMch - Basic and Applied Research Direct Through: University ofGeorgia Research Foundalion
CFDA NUMBER 07.XXX
10.001
Plant and Animal Disease, Pest Contro~ and Animal Care Direct
Wddlife Services Through: University of Geoigia Research Foundalion
Forest!)' Incentives Program Direct
Conscrvalion Roserve Program Direct
Market Ncw.i Direct
Inspection Grading and Standardization Direct
Grants for Agricultural Research, Special Research Grants Direct Through: University ofGeorgia Research Foundation
10.02S 10.028 10.064 10.069 10.IS3 10.162 10.200
Coopemive Forestiy Research Direct
Payments to Agricultural Experiment Stations Under the Hatch AC!
Direct
Gnmts for Agricultural Research Competitive Research Grants
DircCI Through: Georgia Tech Research Corporation Through: University of Georgia Research Foundation
10.202 10.203 10.206
1890 Institution Capacity Building Grants Direct
Higher Education Challenge Grants Direct Through: lo"" State University Through: Texas Agricultural Experiment Sta!ion
10.216 10.217
Buildings and Facilities Program DircCI
Biotechnology Risk Assessment Research Through: University ofGeorgia Research Foundation
Funds for Rural America - Research, Education, and Extension Activities
DircCI Through: University ofGeorgia R<SCMch Foundarion
10.218 10.219 10.224
--""~- . -.,..,. ,,...
P~TIIROUGH
ENl11Y IDENnFYING NUMBER
Various Various
Various
Various 4162310 570078
95392102~3
A4169011301
MONETARY EXPENDl'llJRES
NONMONETARY EXPENDITURES
S0.004 S0,004
S,000 (R) 172,S39 (R) ln,S39
544.878 (R)
64,928 (R)
124,648
ll6,479
31,213
2,462,611
-1,013 (R) 2,769.~0 (R) 2,768,647
729,740 (R)
4,183,406 (R)
48,312 16,695 (R) 2,333,398 (R) 2,398,405
2,390,792
61,840 (R) J.376 (R) 483 (R)
63,699
l3,S99 (R)
2,958 (R)
38,689 (R) -14 (R)
38,675
E -5
Ge:n-g1B.
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30. 2001
Agriculture, U. S. Department or
Initialive for Future Agriculture and Food Sysiems Tluough: Universily of Georgia Research Foundation Tluough: University ofWisconsin
CJiDA NUMBER
10.302
Jntegraled Programs Direct Tluough: Nonh Caiolina State University Tluougb: University ofGeorgia Research Foundation
10.303
Rural Self-Help Housing Technical Assislancc Direct
Coopcralive Agroements wi1h States for lmrastate Meat and Pouluy Inspection Direct
Coopcralive Ex!ension Service Direct Tluough: Cornell Univenity Tluougb: Kansas State University Tluough: Nonh Caiolina State Univenity Tluough: University ofGeorgia Research Foundation Tluough: Universily of Nebraska-Lincoln
10.420 10.475 10.500
Food DiSlribution Direct
Food Swnps (FSC) Direct
School Breakfast Program (CNC) Direct
NBlioml School Lunch Program (CNC) Direct
Special Milk Program for Children (CNC) Direct
Special Supplemental Food Program for Women, Infants, and Otildren
Direct
Child and Adult Care Food Program Direct
Summer Food Service Program for Otildren (CNC) Direct
State Administrative Expenses for Child NUlrition Direct
State Administrative Matching Grants for Food Stamp Program (FSC) Direct
NUlrition Education and Training Program Direct
Commodity Supplemental Food Program Tluough: University of Georgia Research Foundation
Emergency Food Assisla:zce Program (Administrative Costs) (EFAC)
Direct
Emergency Food Assisla:zce Program (Food Commodities) (EFAC)
Direct
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
PASS-THROUGH ENTrrY IDENTIFYING
NUMBER Various 593A261 Various
SC000475-l-I
99-41560-0821 SOI032 Various Various
LM/63-121-16814
Various
MONETARY EXPENDITURES
NONMONETARY EXPENDITURES
118.776 (R) 5 248 (R)
124,024
123.572 (R) 22,637 (R) 18.327 (R) 164.536
177,117
3,205,573
12,657,802 (R) 11,293 (R) 11,217 (R) 13,319 (R) 4,974 (R) 2.996 (R)
s
12,701,601
253
62,695,602
210,537,620
s
27,348
180,399,407 (2)
59,196,189
s
7,431,248 (R)
3,723,168
57,676,495 5,945 88 (R)
1,748,980
32,081,541 (4) 502, 118,960 (4)
5,537,562
E-6
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
c c
c
c
Georgia
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
Agriculture, U. S. Department or
Nutrition Program for the Elderly (Commodities) Direct
WIC Farmers' Market Nutrition Program (FMNP) Direct
Foresuy Research Direct Through: University ofGeorgia Research Foundalion
CFDA NUMBER
10.570 10.5n 10.652
Cooperative Foresuy Assistance Direct Through: University ofGeorgia Research Foundalion
10.664
National Forost Dependen1 Rural Communilies Direct
Technical Assistance and Training Granis Direct
Rural Developmenl GranlS Direct
Resource Conservalion and Deve1opmenl Direct
Soil and Waler Conservalion Through: University of Georgia Research Foundation
Agricultural Swislics Reports Direct
Scientific Cooperation Program Direct Through: University ofGeorgia Research Foundalion
10.670 10.761 10.769 10.901 10.902 10.950 10.961
lnlemational Training Foreign Panicipanl Direct
Olher Fedenil Assistance Direct Through: Alabama A&:M University Through: Auburn Unive:sity Through: Aorida SOiie Univeisity Through: l.angslOn Unive:sity Through: Nonh Carolina Slale University
Through: Southern U. S. Tracie Association Through: Texas A&:M Univeisity Through: University of Alaska Through: University ofAorida Through: University of Georgia Research FoundaDon
10.962 10.XXX
AGENCY TOTAL
Com.merce, U. S. Department or
Economic Development Technical Assisiance Through: Georgia Tech Research Corporation
Trade Adjusttnenl Assisiance Through: Georgia Tech Research Corporation
JnlerjurisdiClional Fisheries Act of 1986 Direct
11.303 11.313 11.407
... ---- -~----r--~-
,.,
PASS-THROUGH ENTITY IDENTIFYING
NUMBER
MONETARY EXPENDITURES
NONMONETARY EXPENDITURES .
$ Various
Various
68-6526-0-406
s
Various
s
00.52100.9616PVAMU
97.046-03 5599-603 570053 UAF95-0056-MOD4 !A4790 Various
1.828,389
97.6n
371,733 (R) 522.987 (R) 894,no
2.232,249 (R) 132,744 (R)
2,364,993
6,162
285,588
973
5,419
14 (R)
45,990
11,423 30.265 (R) 41,688
13,110
2,921,751 (R) 3,518 4,565 3,855 4,343 11,044 (R) 43,058 (R) 18,234 (R) -311 (R) 3,642 (R)
2,266,196 (R) 5,279,895
627,232,024
539,73 8,063
99,568 (R) 8l8,560 (R) 195,299
E-7
0
Georg:ia.
0
0
Schedule of Expenditures of Federal Awards
0
For the Fiscal Year Ended June 30, 2001
0
PASS-TIIROUGH
0
CPDA
ENl'ITY IDENJlFVING
MONETARY
NONMONETARY
NUMBER
NUMBER
EXPENDl'IlJRE.S
EXPENDl'IlJRE.S
0
Commerce, U. S. Department of
0
Sea Grant Support
11.417
0
Through: Georgia Tech Research Corpol'lllion Through: University of Georgia Research Foundation
Various
S.49S (R) 1.3SS.4S9 (R)
0
Throush: UniversityofPuerto Rico Grant College Program
I 197
s
1362.ISI
0
Coastal Zone Management Administtation Awards Direct
11.419
0
770 S32
0
Coastal Zone Management Estuarine Research Reserves Direct
11.420
242.S9S (R)
0
Through: University ofGeorgia Research Foundation
NA870R0284
31 239 (R)
0
273,834
Cooperative Fishety Swistics
11.434
0
Direct
174,0SS
0
Marine Research Regional Programs Direct
Tbroush: University ofNorth Carolina at Wilmington
11.464
131,717 (R)
0
IS.310 (R)
0
147.027
Atlantic Coastal Fisheries Coopemive Management Act
11.474
0
Direct
194,400
0
Center for Sponsored Coastal Ocean Program Coastal Ocean Program Through: University ofGeorgia Research Foundation
11.478
NA960POOOS
s
66,139 (R)
0
Measurement and Engineering Research and Standatds Tbroush: Georgia Tech Applied Research Corporation
11.609
s
22,41S (R)
0
Tbroush: Georgia Tech Research Corporation
3S,4S4 (R)
0
s
S7,869
0
Advanced Technology Program Direct
11.612
69,030
0
Other Federal Assistance Direct
11.XXX
0
832,990 (R)
Through: Florida State University Throush: Georgia Tech Research Corporation
6S,4S4 (R) S,482,S91 (R)
0
Tbroush: University ofGeorgia Research Foundation
Various
270,331 (R)
0
6,6Sl,366
0
AGENCY TOTAL
10,919,860
0
Defense, U. S. Department of
Navigation ProjOC!S Direct
Collaborative Research and Development Direct
12.107 12.114
0
0
22S,098
0
-S.399 (R)
0
Basic and Applied Scien1ific Research Direct
12.300
s
82,963 (R)
0
Tbroush: Georgia Tech Applied Research Corporation Through: Georgia Tech Research Corporation
l,OS4,063 (R) 9,0Sl,S91 (R)
0
Tbroush: University of Georgia Research Foundation
Various
362,344 (R)
0
10,550,961
0
National Guard Military Operations and Maintenance
12.401
(o&M) ProjOC!S Direct
23,797,270
0
Military Medical Research and Development Tbroush: University ofGeorgia Research Foundation Through: University ofGeorgia Research Foundation
12.420
0
69,776 (R) llS,726 (R)
0
185,S02
0
0
E-8
0
--- -
-- ------
Georgia
Schedule of Expenditures of Federal Awards For the Ascal Year Ended June 30, 2001
Defense, U. S. Department of
Basic Scientific Research Through: Georgia Tech Research Corporation Through: University ofDJinois
CFDA Nl.JMBER
12.431
PASS-TIIROUGH ENTrrV IDENTIFYING
Nl.JMBER
01-208
!ntemalional Education - U.S. Colleges and Universities, Through: University of Georgia Research Foundalion
Community Economic AdjUSlment Direct Through: University of Georgia Research Foundalion
12.550 12.600
S900255
Basic. Applied. and Advanced Research in Science and Engineering
Through: University ofGeorgia Research Foundalion
Air Force Defense R.esearch Sciences Progrmn Direct Through: Georgia Tech Applied R.esearch Corporation Through: Georgia Tech Research Corporation Through: University ofGeorgia R.esearch Foundation
12.630 12.800
Various Various
Malhematical Sciences Grants Progrmn Through: Georgia Tech Research Corporation Through: University ofGeorgia Research Foundation
12.901
Various
Research and Technology Development Direct Through: Georgia Tech Applied Research Corporlllion Through: Georgia Tech Research Corporlllion Through: University ofGeorgia Research Foundation
12.910
Various
Other Federal Assistance Direct Through: Academy of Applied Science Through: Chi Systems. Incorporated Through: Georgia Tech Applied Research Corporation Through: Georgia Tech Research Corporation Through: Gulf South Research Corporlllion Through: Medical College ofGeorgia Research Institute Through: University ofGeorgia Research Foundalion
12.XXX
Various Oll-00001-11
Various
AGENCY TOTAL
Housing and Urban Development, U. S. Department of
Housing Counseling Assistance Program Direct
Manufactured Home Construction and Safety Standards Direct Through: National Conference of States on Building Codes Through': Various Mobile Home Manufacturers
14.169 14.171
Communi1y Development Block Grants/Entitlement Grants (ESCC) Through: Counly ofClarke/Athens
14.218
Various
E-9
MONETARY EXPENDITIJRES
NONMONETARY EXPENDfl'URES
S4,949 (R) 6.184 (R)
61.133
S2.102 (R)
111.215 (R) 95.392 (R)
206.607
27.116 (R)
12,886 113.621 (R) 3,146,581 (R) 393.02S (R)
3.6U.113
18.812 (R) 22,366 (R)
41.178
6.936 (R) 730,939 (R) 2.596.290 (R) 126,68S (R)
3.460.850
10,166,809 (R) 22,528 (R) 36.43S (R)
72,822,781 (R) 9.413.283 (R)
13.860 (R) 135.0ll 13.691 364.Sl2 (R) 92,988.910
13S.2S8,041
222,647
253,356 s.255
524.510 783.121
62.582 (R)
---'----=-=-=-----o------=--- -_ -_-
~1B.
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
Housing and Urban Development, U. S. Department or
Community Development Bloclc Gnints/Small Cities Prognm (ESCC)
Direct Through: City of Warner Robins
CFDA
NUMBER
14.219
Community Development Block Gnints/Stale's Program Direct
Emergency Shelter Grants Prognm Direcl
Hislorially Black Colleges and Universities Program Direcl
Shelter Plus Care Direct
HOME Invosnnent Pannmhips Program Direct
Housing Opportunities for Persons with AIDS Direct
Fair Housing Assistance Program State and Local Direct
Community Development Work-Sludy Program Direct
Section 8 Housing Choice Vouchers (SSC) Direct
Lead-Based Paint Hazard Control in Privately-Omiecl Housing Direct
Other Federal Assistance Direct Through: lJJU=sityofGeorgia Resean:h Foundation
14.228 14.231 14.237 14.238 14.239 14.241 14.401 14.512 14.871 14.900
14.XXX
AGENCY TOTAL
Interior, U. S. Department or the
Grants for Mining and Mineral Resources and Research Institutes Direct
Sport Fish Restoration (FWC) Direct
Environmental Contaminants Direct
Fish and Wtldlifc Managcmcn1 Assistance Direct Through: UniversityofGeor~ Research Foundation
Wildlife Res!oration (FWC) Direct
Endangered Species Conservation Direct
CoopeBtivc Endangered Species Conserv.ition Fund
Direct
Through: Stale ofTcnnessee Through: Univenity of Georgia Research Foundation
15.308 15.605 15.607 15.608
15.611 15.612 15.615
PASS-TIIROUGH ENTl1Y IDEN11FYJNG
NUMBER
MONETARY EXPENDITURES
NONMONETARY EXPENDrruRES
Various
3.640,125 27,500
3.667.625 48.904.878
1.883 570 2.714
2.351.921 8.455.135 1,433.300
558.201 929
75.224.845
411 199 387.375 (R) 23.006 (R) 410.381 144.373.048
s s
144840181-00-0-044
GU000278500 1448-40181..00-0-087
52,366
4,917,169
193 (R)
1,453 (R) 7,873 (R) 9,326
4,188,605
141,503
37,786 35,652 (R) 14,854 (R) 88,292
E-10
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0
0
c c c
~:ia
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
Interior, U.S. Department of the
Wildlife Conservation and Appreciation Direct
Administrative Gran1S for Federal Aid in Sport Fish and Wildlife Reslnration
Through: Univ=ily ofGeorgia Research Foundation
North American Wetlaods Conservaiion Fund Direct
Assistance to State Water Resources Research Institutes Through: Univmity ofGeorgia Research Foundation
Earthquake Hazards Reduction Program Through: Geoll!ia Tech Research Corporation
U.S. Geological Survey - Research and Data Acquisition Direct Through: University of Geoll!ia Research Foundation
CFDA NUMBER
IS.617 IS.618
IS.623 IS.BOS lS.807 IS.808
National Spatial Data lnfras1nicture Cooperative Agreemen1S Program
Through: University ofGeorgia Research Foundation
Historic Preservation Fund Grants-In-Aid Direct Through: University ofGeorgia Research Foundation
IS.809 15.904
National Historic Landmari: Direct
Outdoor Recrealion - Acquisition, Development and Planning Direct
Olher Federal Assistance Direct Through: Georgia Tech Research Corporation
Through: University ofGeolJ!ia Research Foundation
15.912 IS.916 15.XXX
AGENCY TOTAL
Justice, U. S. Department of
State Domestic Preparedness Equipment Support Program Direct
Juvenile Accountability Incentive Block Grants Direct
Juvenile Justice and Delinquency Prevention Allocation to States
Direct
Juvenile Justice and Delinquency Prevention - Special Emphasis Through: Florida Atlantic University
National Institute for Juvenile Justice and Delinquency Prevention
Direct Through: Florida Atlantic University Through: University of Geoll!ia Research Foundation
Victims of Child Abuse Direct
Title V Delinquency Prevention Program Direct
16.007 16.523 16.540 16.541 16.542
16.547 16.548
..... ~- .....1
; .
.,;..
PASS-lllROUGH EN'ITlY IDEN1lFVING
NUMBER
MONETARY EXPENDITURES
NONMONETARY EXPENDITURES
1434HQ97RUOISS11#39 $
B-02-64S-G2 $
Various OOHQAG017S CA-5890-5-9020
Various
70.701
-86 (R)
1.000.000
2,00S (R)
47.227 (R)
56,690 75,446 (R) 132,136
2,495 (R)
831,558 (R) 54,804 (R) 886,362
3,298
464,107
666,977 (R) 347,417 (R) 922,675 (R) 1,937,069
13,942,768
20001R-VX-OOOS
s
25,456 4.692,28S
1,859,442 3,647
131,974 3,647
118,882 (R) 254,503 490,279 182,122
E- II
0
G:org:ia
0
0
Schedule of Expenditures of Federal Awards
0
For the Fiscal Year Ended June 30, 2001
0
PASS-TIIROUGH
0
CFDA NUMBER
ENTITY IDENilFYING NUMBER
MONETARY EXPENDmJRES
NONMONETARY EXPENDmJRES
0
Justice, U.S. Department of
Part E - s - Challenge AC!ivities
Direct
State Justice Statistics Program for Statistical Analysis Centcts
Diroct
Nmional Criminal History Improvement Program (NCHIP) Diroct
National Institute of JUSlice Research, Evaluation, and Development Project Grants
Diroct
Nmional Institute of Justice W.E.B. DuBois Fellowship Program Diroct
16.~9
16.550 16.554 16.560 16.566
0
0
405.599
0
0
73,500
0
1.473,060
0
0
681,344
0
21,726 (R)
0
State Criminal Alim Assistance Program Direct
16.572
3,231,174
0
Crime Victim Assistance
16.575
0
Direct
12,273,087
0
Crime Victim Compensation Direct
16.576
593,597
0
Byrne Formula GrBnt Program Direct
16.579
23,743,009
0
Edward Byrne Memorial Stale and Local Law Enforcement
16.580
0
Assistance Discrelionary Grants Program Direct
908,310
0
Crime Vic:tim Assistance/Discretionary Grants Direct
Drug Coun Discrelionary Grant Program
16.582 16.585
0
1,951
0
Direct
5.306
0
Violent Offender Incarceration and Truth in Sentencing Incentive Grants
16.586
0
Direct
18,956,381
0
Violence Against Women Fonnula Grants
16.588
Diroct
5,079,327
0
Rllral Domestic Yoolence and Child Victimization Enforcement Grant Program
Direct
Local Law Enforcement Block Grants Program Diroct
16.589 16.592
0
488,539
0
1,404,919
0
Residential SubSlance Abuse Traiment for State Prisoners Direct
16.593
2,774,070
0
Sll!le Identification S)'Sle!DS Grant Program
16.598
0
Direct
80,635
0
Corrcc:tions - Training and StaffDevelopment Through: Federal Correctional Institution
16.601
100,579
0
Closed-Circuit Televising of Child Vic:tims of Abuse Direct
Public Safety P1111nership and Community Policing Grants Diroct
Troops to COPS Direct
16.611 16.710 16.711
78,803
0
0
853,106
0
211
0
Enforcing Underage Drinking Laws Program Diroct
16.727
0
89,495
0
0
0
E- 12
0
Georgia.
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
Justice, u. s. Department or
Other Federal Assistance Direct Through: Children & Youth Coordinaling Council Through: Community Research Associates, Incorporated
CFDA NUMBER
16.XXX
AGENCY TOTAL
Labor, U. S. Department or
Labor Force Statistics Direct
Compensation and Working Conditions Direct
Employment Service (ESC) Direct Through: Middle Georgia Consortiwn, Incorporated
Unemployment Insurance Direct
Senior Community Service Employment Program Direct
Trade Adjustment Assistance Workers Direct
Employment and Training Assistance Dislocmed Workers (JC)
Direct Through: East Central Georgia Employment
and Training Consortium Through: Riclunond/Burke Job Training Authority Through: Job Training Unlimited. Incorporated
Employment Services and Job Training Pilots DemonsDlllions and Research
Direct
Job Training Pannership Act (JC) Direct Through: C.S.RA. Employment and Training Consortium Through: Coosa Valley ~gional Development Center
Through: DeKalb Privaie lndusay Council Through: Lower Chattahoochee Priva!e Indusay Council Through: Middle Flint ~onal Development Center Through: Middle Georgia Consortiwn, Incorporated Through: Northeast Georgia
~onal ne.clopment Center Through: Richmond/Burke Job Training Authority Through: Sotllheast Georgia Regional Development Center
17.002 17.005 17.207
17.225 17.235 17.245 17.246
17.249 17.250
P~TIIROUGH
ENITIY IDENTIFYING NUMBER
MONETARY EXPENDmJRES
NONMONETARY EXPENDITURES
Various 97-LF-CX-KOOI
2,561,101 26,010 (R) 139,180
2,726.291
83,551,753
01--00-11..()()4 01-00.WJW-002
01-97-14-714
1,728.494
s
152,073
s
24,843,548
25.194
24,868,742
469,495,930 (I)
1,612,255
10,533.328
4,458,802
17,090 7,526 72,918
$
4,556,336
116,563
s
11,522,667 (R)
2,409 154,831 52,468 89,829 43,091 27,192
6,819 26,230 50,433
120,902 78,680
88,632
12,264,183
E-13
---------
Georgia
Schedule of Expenditures of Federal Awards For the Ascal Year Ended June 30, 2001
Labor, U.S. Department of
Welfare-to-Work Gnmts IO S1ates and Localities Direct Throush: East Central Georgia Consortium Through: Job Training Unlimited, Incorporated Through: Nonheast Georgia Regional o...elopment Center Through: Riclunond/Burke Iob Training Authori1y Throush: Southeast Georgia Regional o...elopment Center
CFDA
NUMBER
17.2S3
Workforce Investment Act Direct Throush: Cily ofColumbus Consolidated Government Throush: Coosa Valley R.egional o...elopment Center
Through: Iob Training Unlimited, Incorporated Throush: Middle Flint R.egional Development Center Through: South Georgia R.egional o...elopment Center Throush: Southeast Georgia
Regional Development Center Through: Southwest Georgia Regional o...elopment Center
11.2SS
One-Stop Career Center Initiative Direct Throush: Hean ofGeorgia A1tamaha Workforce Investment Board Throush: Job Training Unlimited, Incorporated
17.2S7
Occupalional Safely and lfe:llth Susan Harwood Training Grants
Direct
Consultation Agreements Direct
Mine Health and Safely Grants Direcl
Disabled Veterans' Outreach Program (DVOP) (ESC) Direct
Local Veterans' Employment R.epresentlltive Program (ESC) Direcl
Other Federal Assistance Direcl Through: Georgia Tech R.esoarch Corporation
17.S02
17.S04 17.600 17.801 17.804 17.XXX
AGENCY TOTAL
State, U. S. Department or
Professional o...etopment Intemalional EducalarslAdministrators Direct
College and Univeni1y Affilialions Program Direcl
Other Federal Assistance Direct Through: University of Georgia Research Foundation
19.404 19.406 19.XXX
AGENCY TOTAL
PASS-111ROUGH ENTITY IDEN'IDYING
NUMBER
MONETARY EXPENDrruRES
NONMONETARY EXPENDITURES
01-01-15-002
s
3S,120,660
3,69S
41,S69
28,933 7S8
10,737
s
3S,206.3S2
43,7S6,0S7 191,SIO 73,409 23.184 860,064 229,371 448,019
IOS,978
263 604
4S 9SI 196
2s.ooo 18,423 19,ISS
62.578
11.021
42310
s
188,692
1,787.198
1,347,304
21.991 1,048.712 (R)
1.070.703
6I0,99S.2S8
845
113.9S7 (R)
s
794,194 (R)
3.433 (R)
797,627
912,429
E- 14
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
0 0
0
0 0 0 0 0 0
8eorg1.S.
-........ ,,
~
...':'. , . .
Schedule of Expenditures of Federal Awards For the Ascal Year Ended June 30, 2001
CFDA NUMBER
PASS-111ROUGH ENTITY IDENI'IFVING
NUMBER
Transportation, U.S. Department of
Boating Safety Financial Assistance Direct
Airport Improvement Program Direct
Highway Planning and Construction (HPCq Direct
Highway faining and Educalian Direct
Ma10r Carrier Safety Direct
National Ma10r Carrier Safety Direct
Recreational Trails Program Direct
Fedenl Transit Capilal Improvement Gnn1S (FTC) Direct
Fedenl Transit Metropolitan Planning Gnn1S Direct
Federal Transit Formula Gnn1S (Frq Direct
Formula Gran1S far Other Than Urbanized Areas Direct
Fedenl Transit Technical Assistance Through: Atlanta Regional Commission
Capital Assistance Program far Elderly Peisans and Persons Wilh Disabilities
Direct
State and Community Highway Safety (Hsq Direct
Pipeline Safety Direct
Other Federal Assistance Direct Through: Atlanta Regional Commission Through: Georgia Tech Applied Research Corporation Through: Georgia Tech Research Corporation Through: Office of Small and Disadvantaj!ed Business Utilization Through: South Carolina State University Through: University ofGeorgia Research Fawidation
20.005 20.106 20.205 20.215 20.217 20.218 20.219 20.500 20.505 20.507 20.509 20.512 20.513
20.600 20.700 20.XXX
ETT AP9596ALB Various
AGENCY TOTAL
Treasury, U.S. Department orthe
Other Federal Assistance Direct Through: Georgia Tech Research Corporation
21.XXX
AGENCY TOTAL
MONETARY EXPENDl'llJRES
NONMONETARY EXPENDl'llJRES
s
1.623.178
s
4,593,099
s
809,936,211
s
9,670
316,818
s
3,576,042
554,531
2,750,000
1,098,405
s
6,ln,110
6,985,238
s
62,692
s
1,629.481
s
10,527,272
s
251,721
s
50,403 (R)
42,091
472,386 (R)
1,369,044 (R)
2,739 45,344 103,087 (R)
2,085,094
s
852,176,562
51,768 -II (R)
s
51,757
$
51,757
E- 15
0
Georgia.
0
0
Schedule of Expenditures of Federal Awards
0
For the Ascal Year Ended June 30, 2001
0
PASS-lllROUGH
0
CFDA
ENTITY IDENTIFYING
MONETARY
NONMONETARV
NUMBER
NUMBER
EXPENDmJRES
EXPENDmJRES
0
Postal Service, U. S.
Olher Federal Assistance Dir<et
22.XXX
0 0
10,700
0
AGENCY TOTAL
10,700
0
Appalachian Regional Commission
Appalachian Regional Development Direct
Appalachian Area Development Direct
Appalachian Swe Research, Teclmical Assistance, and Demonslration Projects
Direct
01her Federal Assistance Through: Georp Tech Applied Research Corporalion
23.001 23.002 23.011
23.XXX
0
0
113,701
0
l,IOS,266
0
0
134,908
s
1,IOS,884 (3)
0
42,334 (R)
0
AGENCY TOTAL
Personnel Management, U. S. Office of ~ Pe=el Ac< (IPA) Mobility Program Through: Univenity of Georgia Research Foundation
21.01i
1,396,209
1,IOS,884
0
0
0
S2,03S (R)
0
AGENCY TOTAL
Eqaal Employment Opportunity Commission Employment Discriminlllion Tide VIl oflhe Civil Rights Ac< of! 964 Dir<et
AGENCY TOTAL
30.001
S2,03S
0
0
0
0
39,497
0
39,497
0
General Services Administration
0
Donation ofFederal Surplus Pmonal Property Diree1
Olher Federal Assistance Through: Georgia Tech Applied Research Corporation Through: Georgia Tech Research Corporalion
39.003 39.XXX
0
6,167,674
0
74S,946 (R) 6S,441 (R)
0
811,387
0
AGENCY TOTAL
National Aeronautics and Space Administration Aerospace Education Services Program Direct Through: University of Alabama
Technology Transfer Through: Georgia Tech Applied Research Corporalion Through: Georgia Tech Research Corporation
43.001 43.002
98VSUOOI
811,387
0
6,167,674
0
0
116,849 (R)
0
2,392 (R)
0
119,241
0
-880 (R) -176,94S (R)
0
-177,82S
0
0
0
0
E- 16
0
Georgia
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
National Aeronautics and Space Administration
Olher Federal Assisiance Direct Through: O.Orgia Tech Applied Research Corporation Through: O.Orgia Tech Resean:h Corporation Through: Lewis Research Center Through: Space Telesmpe Science Institute Through: United Negro College Fund Through: Univmilies Space Research Association Through: University ofGeorgia Research Foundation Through: University ofTennessee
CFDA NUMBER
43.XXX
l. ~:
PASS-1HROUGH EN111Y IDENTIFYING
NUMBER
GQ..07825.0l-96A El6-TI5-GI llNGT5-40116
Various
AGENCY TOTAL
National Foundation on the Arts and the Humanities
Promotion of the Ans Grants to Organizations and lndMduals
Direct
Promotion of the Ans Partnership Agreements Direct
Promotion of the Humanities Federal'State Pannership Direct Through: Georgia Humanities Council
Through: Univeisity ofGeorgia Research Foundation
45.024 45.025 45.129
Promotion of the Humanities Challenge GTants Direct
Promotion of the Humanities. Division ofPreservation and Access Direct
Promotion of the Humanities - Education Development and Demonstration
Direct Through: University ofCalifornia
45.130 45.149 45.162
Promotion of the Humanities Extending the Reach Grants to Pmidentially Designated Minority Institutions
Direct
State Libr111Y Program Direct
Institute ofMusewn and Library Services National Leadership Grants
Direct
Olher Federal Assistance Direct Through: Georgia Council for the Arts
Through: Georgia Humanities Council Through: Georgia Tech Research Corporation
45.167 45.310 45.312 45.XXX
GHC-16-565 GHC-2000-011G
98-095G
41-010020-1-1 FYOI 98-112G
AGENCY TOTAL
MONETARY EXPENDrruRES
NONMONETARY EXPENDrruRES
589,406 (R) 1,030,173 (R) 8,006,368 (R)
364,082 (R) 3.749 (R) 90,226 12,426 (R)
397,926 (R) 391
10.494.747
10,436,163
26.335 (R)
742,025
11,630 32,649 (R)
1,668 1,728 (R) -500 (R) 47.175
551 (R)
5.000
74,204 26.547 100,751
16,478
3.656.872
151.355 (R)
187,488 (R) 21,747 52,862 (R) 8,780 (R) 127.457 (R) 398.334
5.144,876
E - 17
0
Georg:ia
0
0
Schedule of Expenditures of Federal Awards
0
For the Fiscal Year Ended June 30, 2001
0
PASS-TifROVGH
0
CFDA
ENTITY IDENTIFYING
MONETARY
NONMONETARY
NVMBER
NVMBER
EXPENDrrt.JRES
EXPENDrrvRES
0
National Science Foundation
0
Engineering Gmnts
47.041
0
Direct Through: Georgia Tech Research Corporation
21,133 (R) 11,334,143 (R)
0
Through: Univmity ofGeorgia Research Foundation
NSF-0004257
69,521 (R)
0
11.424,797
Mldhematical and Physical Sciences
47.049
0
Direct Through: Georgia Tech Research Corporation
634,588 (R) 3,621,425 (R)
0
Through: University ofGeorgia Research Foundation
Various
372.302 (R)
0
4,628,31S
Geosciences
47.050
0
Direct Throul!h: Georgia Tech Research Corporation
342,596 (R) 1,238,026 (R)
0
Throul!h: Univmity of Georgia Research Foundation
Various
223,258 (R)
0
Computer and Information Scionce and Ensineerin3 Direct Through: Georgia Tech Research CGrporation
47.070
1.803,880
0
274,393 (R)
0
6,380,236 (R)
Throul!h: University ofGeorgia Research Foundation
Various
65,488 (R)
0
6,720 117
0
Biological Sciences
47.074
Direct
364,792 (R)
0
Through: Georgia Tech Research Corporation
JS,838 (R)
Throul!h: Medical College of Georgia Research lnslitute
163,666 (R)
0
Through: University of Georgia Research Foundation
Various
2,153,935 (R)
2,718,231
0
Social, Behavioral, and Economic Sciences
47.075
0
Direct Through: Georgia Tech Applied Research Corporalion
29,821 (R) -433 (R)
0
Throul!h: Georgia Tech Research Corporation
624,328 (R)
Through: Univ=ity ofGeorgia Research Foundation
97-98
83,067 (R)
0
736.783
0
Educ:mion and Human Resources Direct
47.076
649,017 (R)
0
Through: Georgia Tech Research Corporalion Through: University of Georgia Research Foundation
NSF-0196225
1,181,840 (R) 31,421 (R)
0
1,862,278
0
Polar Programs Through: Georgia Tech Research Corporation
47.078
64,824 (R)
0
Through: University of Georgia Research Foundation
383761
2427 (R)
0
67.251
0
Other FederaJ Assi51ance
47.XXX
Direct
3,794,321 (R)
0
Through: Florida Agricultural and Mechanical University
C-9549
64,341
Through: Georgia Tech Research Corpormion Through: Univmity ofGeorgia Research Foundation
Various
2,666,459 (R) 8.689.850 (R)
0
IS,214.971
0
AGENCY TOTAL
0
4S,176,623
0
0
0
0
0
0
E - 18
0
G:orgja_
Schedule of Expenditures of Federal Awards For the Ascal Year Ended June 30, 2001
Small Business Administration
Business Development Assistance to Small Business Direct
Small Business Developme11 Center Di!<CI
Olher Federal Assistance Diroct
AGENCY TOTAL
Tennessee Valley Authority
Other Federal Assistance Diroct
AGENCY TOTAL
Veterans Affain, U.S. Deportment or
Velen!llS Siate Domiciliary Care Direct
Vetmms State Nursing Home Care Direct
Veterans Siate Hospital Care Through: Univmi1y of Georgia Research Foundation
Vetenns Eduauional Assistance Di!<CI
PostVietnam Era Veterans' Educalional Assistance Diroct
Olher Federal Assistance Diroct Through: Georgia Tech Applied Research COJpOration Through: Georgia Tech Research Corporation Througji: University ofGeorgia Research Foundation
CFDA NlJMBER
59.005 59.037 59.XXX
62.XXX
64.014 64.015 64.016 64.111 64.120 64.XXX
AGENCY TOTAL
Environmental Protection Agency
Swe Indoor Radon Grants Diroct
Consttuction Grants for Wastewater Trwment Works Direct
swe lJnderground w - Source Protection
Direct
Construction Management Assisiance Direct
W- Quali!y Management Planning Di!<CI Through: Florida Oepanment ofEnvironmental Protection Through: Florida Fish & \\'tldlife Conservation Commission
Capitalizalion Grants for Swe ~lving Funds Direct
66.032 66.418 66.433 66.438 66.454
66.458
PASS-TIIROlJGH EN11TV IDENTIFYING
NlJMBER
MONETARY EXPENDITIJRES
NONMONETARY EXPENDITIJRES
608 (R) 2.334,631 (R)
54,456 (R) 2,389,695
5,897
s
5,897
RSCHAGREE
768 884
s
10,237,267
27,834 (R)
394,713
1,761
659,153 (R) 625 (R)
125,373 (R) 4,714 (R)
789,865
12,220.324
Various 99030
116.741
2.643
95,256
337,607
4,6n,689 .7 (R)
45,900 (R) 4,723,582
39,780,228 (3)
278.788,630 (3)
E- 19
--~-----
Georg1a
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
Environmental Protectioa Agency
Nonpoint Sowce Implementation Grants Direct
Wetlands Gran1S Direct
Water Quality Coopera1ive Agree1nen1S Direct
Capilalizalion Gran1S for Drinking Water s -
Revolvins Fund Direct
Envirorumntal Proteclion - Consolidated Research Direct Throush: Georgia Tech Research Corporation Throush: University ofGeorgia Research Foundalion
CFDA
NUMBER
66.460 66.461 66.463 66.468
66.500
Performance Pannmhip Grant Direct
Surveys, Sl\ldies, lnvestiplions and Special Purpose Gran1S Direct Through: Florida Fash &: Wddlife Conservlllion Commission Throush: Georgia Tech Research Corporation Throush: Univasil)I ofGeorgia Research Foundalion
66.605 66.606
Trainins and Fellowships for lhe Environmental Prolection Agency
Through: Georgia Tech Research Corporation Through: Univasil)I ofGeorgia Research Foundation
66.607
One Stop Reporting Direct
Consolidated Pesticide Emorcement Cooperative Agreemen1S Direct
s - TSCA Title JV Lead Gran1S Certificarion ofLead-
Based Paint Professionals Direct
Pollution Prevention Gran1S Prognm Direct
Superfund State Site - Specific Cooperative Agreemen1S Direct
Leaking Underground Storage Tank Trust Fund Prognm Direct
Solid Waste Manasemcnt Assistance Direct
Brownfield Pilots Cooperative Asreements OU.ct
Olher Federal Assistance Direct Through: Georgia Tech Applied Research Corporation Through: Georgia Tech Research Corporation Through: National Foundation for IPM Education Through: University of Georgia Research Foundation
66.608 66.700 66.707
66.708 66.802 66.805 66.808 66.811 66.XXX
AGENCY TOTAL
PASS-111ROUGH ENTITY IDEN11FYING
NUMBER
Various 00182 827759-01
NFIPME ID# 81 Various
E-20
MONETARY EXPENDrrtJRES
s
68.976 (R)
S0.155
119,457
9,437,265 (3)
s
23,050
l,576,9S9 (R)
832,338 (R)
2,432 347
9,S34.634
809,785 (R) 61,m (R) 105,378 (R)
1,861 (R)
978,801
s
168,666 (R)
2,899 (R)
s
171,S65
2.046
s
821,110
28S,9SJ
29,923
l.398.067
6S9,82S
21S.362
3S,312
JS8,084 (R) SlS,144 (R) 1,104,388 (R) 38,JSO (R) 664,995 (R) 2,481,561
73,778,414
- - - -
0
0
0
0
0
0
NONMONETARY
EXPENDrI'llRES
0
0
0
0
0
0
0
17,320,608 (3)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
296,109,238
0
0
0
0
Georgia.
,...--~- ~" - 1; - ...
;;; .... ;-; : '
.~
Schedule of Expenditures of Federal Awards For the Ascal Year Ended June 30, 2001
CFDA
NUMBER
PASS-THROUGH ENITIY IDENTIFYING
NUMBER
Energy, U.S. Department or
State En"'l!YProgram Direct
Weatherization Assistance for Low-Income Persons Direct
Office or Science Financial Assislance Program
Direct Through: Georgia Tech Research Corporation Through: Universi1y ofGeorgia Research Foundation
81.041 81.042 81.049
Various
Conservation Research and Dellelopment Through: Georgia Tech Research Corporalion Through: Vnivmil)I ofGeorgia Research Foundation
81.086
DE-F06-0IG010619
Renewable En"'l!Y Research and Development Through: Consonium Plant Bio1':ch Research Through: Universi1y ofGeorgia Research Foundation
81.087
Variom Various
Nuclear Energy, Reactor Sy.Items, Developmen~ and Technology
Direct
81.095
Office orScience and Technology for Envi""11T1e111al Managoment Direct
81.104
Science and Engineering Training to Support Divmil)lRelaled Programs 81.116 Through: Georgia Tech Research Corponlion Through: Vniversil)I orGeorgia Research Foundation
Various
Other Federal Assistance Direct Through: Algollne National Laboratory Through: Brookhaven National Laboratory Through: Georgia Tech Applied Research Corporation Through: Georgia Tech Research Corporation Through: Medical College of Georgia Research Institute Through: Nalional Institute for Petroleum and En"'l!Y Research Through: SoU1hem States En"'l!Y Board Through: Universi1y ofGeorgia Research Foundation Through: Wackenhut Services, Incorporated
81.XXX
OF-00605 39720
G4PSl609 Various
AGENCY TOTAL
Federal Emergency Management Agency
Hazardous Materials Training Program for Implementation of the Superfund Amendment and Reauthorizalion Act (SARA) of 1986
Direct
Hazard Mitigation Assistance Direct
Flood Mitigation Assistance Direct
Crisis Counseling Direct
Disaster Unemployment Assistance Direct
83.011
83.519 83.536 83.539 83.541
MONETARY EXPENDITURES
NONMONETARY EXPENDrrtlRES
s
1,204.626
s
l.S80,690
138,970 (R) 1,287,169 (R) 2,IJS,125 (R)
3,561,264
s
112,970 (R)
6,165 (R)
119,135
s
5,158 (R)
91,977 (R)
s
97,135
s
131,590
262,507
s
37,898 (R)
9,315 (R)
47,213
1,575,430 (R) 57,788 (R) 61,143 (R)
560,963 (R) 3,178,739 (R)
503,096 (R)
5,817 34
11,386,561 (R) 260,526 (R)
17,590,097
s
24.594,257
s
846
s
38,631
82,105
s
40.030
s
13,162
E- 21
0
Ge:n:-gia
0
0
Schedule of Expenditures of Federal Awards
0
For the Fiscal Year Ended June 30, 2001
0
PASS-TIIROUGH
0
O'DA
EN1l1Y IDENTIFYING
MONETARY
NONMONETARY
NUMBER
NUMBER
EXPENDITIJRES
EXPENDITURES
0
Federal Emergency Management Agency
0
Individual and Family Gnnts Direct
Public Assistance Gnn1S Direct
83.S43 83.S44
0
762
0
16,036,S23
0
Disaster Housing Program Direct
Hazard Mitigation Gnnt Direct
National Dam Safety Program Direct
83.S4S 83.S48 83.SSO
1244,845
0
0
8,982,921
0
300,416
0
Project Impact Building Disasler Resislant Communities Direct
Emergency Management Perfonnance Grants Direct
Other Federal Assistance Through: Georgia Tech Research Corporation
83.SSl 83.SS2 83.XXX
8,799
0
0
3,638,SS9
0
S,709
0
AGNCYTOTAL
30,393,308
0
0
Education, U. S. Department of
0
Adult Education State Grant Program
84.002
Direct
11,672,0SS
0
Federal Supplemental Educ:alional Opportunity Gran1S (SFA) Direct
84.007
7,119,063
0
Tide I Grants ID Local Educational Agencies
84.010
0
Direct
210,966.412
0
Migrant Educlllicn Basic State Grant Program
84.011
Direct Through: Southern Pine Migrant EduClllicnal Agency
6,430,360
0
36,978
6,467,338
0
Tide I Program for Neglected and Delinquent Children Direct
International Research and Studies Direct
84.013 84.017
0
2,372.'17
0
S6 034
0
International: Oveneas Group Projects Abroad Direct
84.021
66,322
0
International: Qve,.... Doctoral Dissertation
84.022
0
Through: Univenity of Georgia Research Foundation
P022A000038
9,S89 (R)
0
Special Education Innovation and Development Direct
84.023
S8,489 (R)
0
Services for Children with Deaf-Blindness Direct
Special Education Grants ID Swes (SEq Direct
Special Education Pmonnd Development and Parent Training
Direct
Higher Educarion Institutional Aid Direct
Federal Family Education 1..o>ns (SFA) Direct
84.02S 84.027 84.029
84.031 84.032
7002
0
0
130,464,102 (R)
0
0
8,633
0
S,281,523 (R)
0
32,747,813 (3)
1.598,732,000 (3)
0
0
0
E-22
0
Georgia.
Schedule of Expenditures of Federal Awards For the Ascal Year Ended June 30, 2001
Education, U. S. Department or
Federal Work-Study Prognun (SFA) Direct
Public Library Services Direct
Federal Perlcins Loan Prognun Federal Capital Contribll!ions (SFA)
Direct
lRIO Student Support Services (TRIO) Direct
lRIO- Talent Search (TRIO) Direct
lRIO Upward Bound (TRIO) Direct
Vocalional Educalion Basic Grams to Stales Direct
Federal Pdl Grant Prognun (SFA) Direct
lRIO Educalional Opportunity Cent= (TRIO) Direct
Special Educalion - Postsecondary Educalion Programs for Persons with Disabilities
Through: tJniversit ofTennos:see
Fund for the Improvement of Postsecondary Education Direct Through: Hmold Washington College
CFDA NUMBER
84.033 84,034 84.038
84.042 84.044 84.047 84.048 84.063 84.066 84.078
84.116
Educ:alional Research and Development Direct
Minority Science and Enginemng Improvement Direct
Rehabilitation Ser.ices Vocalional Rehabilitation Gnmts to Stales
Direct Through: Georgia Tech Research Corporation
84.117 84.120 84.126
Rehabilitation Long-Tenn Training Direct
National Institute on Disability and Rehabilitation Research Through: UnMrsity ofGeorgia Research Foundaiion
Migrant Educalion - College Assistmtce Migrant Program Direct
International Business EduCDlion Direcl
Public library Construction and Technology Enhancement
Direct
Training Interpreters for lndhiduals who are Dellf and Individuals who are Deaf-Blind
Through: University ofTennessee
Rehabilitation Services Client Assistance Program Direct
lnunigrant Educ:alion Direct
84.129 84.133 84.149 84.153 84.154 84.160
84.161 84.162
.,:
PASS-THROUGH ENITl'Y IDENTIFYING
NUMBER
MONE:TARY EXPENDITIJRES
NONMONETARY EXPENDrrtJRES
8666-02-03
Hl33G980023-99 7835-03-03
8.464.284 (R) 16.861
s
762.800 (3)
1.577.811 (R)
1.413.995 (R)
2.934.821 (R)
33.228.729
129.500.008
970.927 (R)
37.835
121.875 (R) 22.172 144,047
2.013
144.108
s
61.912.479
3.041 (R)
61.915 520
165.011 (R)
73.517 (R)
234,863
44.785
856.177
7,825 370.491 3.576.461
38.494.663 (3)
E- 23
Georgia
0 0
0
Schedule of Expenditures of Federal Awards
0
For the Fiscal Year Ended June 30, 2001
0
PASS-THROUGH
0
CFDA
ENTITY IDENllFYING
MONETARY
NONMONETARY
NUMBER
NUMBER
EXPENDITURES
EXPENDITURES
0
Education, U. S. Department of
0
EisenhoMr Malhemalics and Science Education -
84.164
0
State Grants Through: Muscogee Coumy Board ofEducation
s
18.205 (1)
0
Independent Living - State Grants Direct
84.169
578.110
0
Javits Fellowships
84.170
0
Direct
8,125
0
Special Education Preschool Grants (SEC)
84.173
Direct
10,122.344
0
Rehabilitation Services - Independent Living Servioes for Older Individuals Who "" Blind
84.177
0
Direct
s
242.238
0
Special Eduelllion - Grants for Infants and Families with Disabilities
84.181
0
Direct
11,243,629
0
Byrd Honors Scholriips
84.185
Direct
1,087,500
0
Safe and Drug-Free ~Is and Communities - State Grants Direc1
84.186
12,108,515
0
Supponed Employment Services for Individuals widi Severe Disabilities
Direct
84.187
0
951,465
0
Bilingual Education Suppon Services Direct
Education for Homeless Children and You!h Direct
Graduate Assistance in Areas of National Need Direct Through: Georzja Tech Research Corporation
Even Stan - State Eduelllional Agencies Direct
Fund for the lmprovemeni ofEducaiion Direct
84.194 84.196 84.200
84.213 84.215
96361
0
0
924.203
0
20,222
0
15,464 (R)
35,686
0
0
4.027,759
0
264,054
0
Capital Expenses Direct
McNair Post-Baccalaure>IC Achievement (TRIO) Direct
Centers for International Business Educarion Through: Georzja Tech Research Corporalion
84.216 84.217 84.220
0
23,892
0
446,680
0
-24,295 (R)
0
Assistive Technology Direct
Income Contingent Loan Program Direct
Rehabilitation Services Demonstration and Training Special Demonstrarion Programs
Direct
Tech-Prep Education Direct
Literacy Programs for Prisoners Direct
Rehabilitation Training - Cominuing Educarion Direct
84.224 84.226 84.235
84.243 84.255 84.264
578,110
222.091 (R) 4,956,291
92,620 842.649
0
0
136,344 (l)
0
0
0
0
0
0
0
0
E-24
0
~. . ...........
:...
Schedule of Expenditures of Federal Awards For the Ascal Year Ended June 30, 2001
Education, u. s. Department or
Rehabilitalion Training State Vocalional Rehabilitalion Unit In-Service Training
Oire<t
Federal Oire<t Loan (SFA) Oire<t
Goals 2000 State and Local Education Systemic .lmp~ent Gnmts
Oire<t
Eisenho- Professional Development State Gnints Oire<t Through: Georgia Tech Resea1ch Corporation
CFDA NUMBER
84.265 84.268 84.276 84.281
84.282
Innovative Educalion Program Strategies Direct
Nllional Institute on Student Achievement, Curriculum, and Assessment
Through: University ofGeorgia R=arch Foundllion
Technology Utera<y Challenge Fund Grants Direct
Eisenhower ~onal Mathematcs and Science Educllion Consoriia Direct
Special Education State Program Improvement Grants for Children Mth Disabilities
Direct
Special Education Resean:h and Innovation 10 Improve Services and Results for Children IMth Disabilities
Direct
Special Educllion Personnel Preparllion 10 Improve Services and Results for Children IMth Disabilities
Oire<t
Special Educllion Technical Assistance and Dissemination 10 Improve Services and Results for Children IMth Disabilities
Direct
Special Educalion Technology and Media Services for Individuals Mth Disabilities
Direct
.Advanced Placement Incentive Prognim Oire<t
Grants to States for Incarcerated Youth Offenders Direct
Comprehensive School Reform Demonstration Dire<t
Gaining Early AMreness and Readiness for Undergraduate Programs
Direct
Teacher Quality Enhancement Gnmts Direct
Cass Size Reduction Direct
Preparing Tomonow's Teachers to Use Technology Direct Through: Pennsylvania State Univemty
84.298 84.305 84.318 84.319 84.323 84.324 84.325 84.326 84.327 84.330 84.331 84.332 84.334 84.336 84.340 84.342
PASS-11fROUGH ENTITY IDENTIFYING
NUMBER
MONETARY EXPENDITURES
NONMONETARY EXPENDrnJRES
Various
287,129 (R) 251,352,203
12.385,100
9,230,845 (R) 23,471 (R)
s
9,254,316
4,115,267
10 503,504
390,838 (R) 11.763.112
1,995
1,165,140
286,058 (R)
522,956 (R)
261.876
175,492 (R) 522.551 182,829 1.380,583
332,135
3,944,608 (R)
32.572,395
2,745,628 (R) 13,504 (R)
2.759,132
E-25
0
0
0
Schedule of Expenditures of Federal Awards
0
For the Fiscal Year Ended June 30, 2001
0
PASS-THROUGH
0
CFDA
ENJ1TY IDENTIFYING
MONETARY
NONMONETARY
NUMBER
NUMBER
EXPENDmJRES
EXPENDITURES
0
Education, u. s. Department or
TRIO Dissemination Through: University ofSouth Florida
Occupational and EmplO)mCl!t InfonnBlion Stale Grants Direct
84.344 84.346
0
0
5.226
0
112,726
0
Tide I Accountability Grants Direct
84.348
3.647,110
0
Other Federal Assistance
84.XXX
0
Direct Through: City of Atlanta Board ofEducation Through: Oinch County Through: Georgia Tech Research Corporation Through: Han County Board of Education
670.166 (R) 4.199 (R)
0
2.488 (R)
I.757.279 (R)
0
2.256 (R)
Through: NBlional Writing Project Corporation
84928A/94-GA03
21.828 (R) 33.152
0
Through: Screven County Through: Stewart County Board of EducBlion
2.871 (R) 1.736 (R)
0
Through: University ofGeorgia Research Foundalion
Various
128.359 (R)
0
2.624.334
0
AGENCY TOTAL
1.053.134.628
1.637.363.007
0
Consumer Product Safety Commission, U. S.
0
Other Federal Assistance Direct
87.XXX
0
2.130
0
AGENCY TOTAL
2.130
0
National Archives and Records Administration
0
National Historical PublicBlions and Rc<ords Grants
89.003
0
Direct
13,752 (R)
0
Other Federal Assistance
89.XXX
Direct Through: Georgia Tech Applied Research Corporation
s
2,881
19,818 (R)
0
s
16.937
0
AGENCY TOTAL
0
30.689
0
Health and Human Services, U.S. Department of
Sta1e and Territorial and Techni<al Assistance Capacity Development Minority HIV/AIDS Demonsuation Program
Direct
Special Programs for the Aging Title vn. Chapter 3
Programs for Prevention of Elder Abuse, Neglect, and Exploilarion
Direct
Special Programs for tho Aging Title vn. Chapter 2
LongTerm Caro Ombudsman Servi= for Older Individuals Direct
Special Programs for tho Aging Tide m. Part F Disease
Prevention and Health Promotion Sorvi<OS Direct
Special Programs for tho Aging Title Ill. Part B Grants for Supportive Servi<OS and Senior Centers (Aq
Direct
Special Programs for tho Aging Tide m. Part C
Nutrition Sorvi<OS (Aq Direct
93.006 93.041 93.042 93.043 93.044 93.045
0
0
152.312
0
0
11425
0
0
178.884
0
0
191.351
0
5.155.920
0
0
10,056.717
0
0
E-26
0
Georg1.a
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
Health and Human Services, U. S. Department or
Special Programs for lhe Aging - Tide DI, Part D - In-Home Services for Frail Older Individuals
Direct
Special Programs for lhe Aging Title IV - Training, Research and Discrotionary Projects and Prognims
Direct
Food and Drug Adminisuation Res=ch Direct Through: Universily of Georgia Research Foundalion
CFDA
NlJMBER
93.046 93.048 93.103
Maternal and Child Health Federal Consolidated Programs Direct
Biological Response to Environmental Heallh Hazards Through: llnivorsity ofGeorgia Research Corporation
Project Grants and Cooperative Agreements for Tuberculosis Control Programs Direct
Grants for Teclmical Assistance Activities Related to lhe Block Grant for Community Mental Heallh Services Teclmical Assistance Centers for Evaluation
Direct
Oral Diseases and Disorders Research Through: Medical Collese ofGeorgia Research Institute Through: lJnivorsity of Georgia Research Foundation
93.110 93.113 93.116 93.119
93.121
Nwse Aneslhetist Traineeships Through: Medical Collese of Georgia Research Institute
Emergency Medical Services for Childn:n Direct Through: Medical College of Georgia Research Institute
93.124 93.127
Prinuuy Care Services - Resource Coordination and Development Prinuuy Care Offices
Direct
Centers for Research and Demonstration for Heallh Promotion and Disease Prevention
Direct
Injwy Prevention and Control Research and State and Community Based Programs
Direct Through: University ofGeorgia Research Corporation
93.130 93.13S 93.136
Projects for Assistance in Transition from Homelessness (PATH)
Direct
Coordinated HIV Services and Ace" to Research for Children, Youth, Women, and Families
Direct
Grants for State Loan Repayment Direct
International Cooperative Biodiversity Groups Program Through: lJniversity of Georgia Research Corpormion
93.ISO 93.153 93.16S 93.168
.. ;v.r:, r:<
.:.
PASS-1HROlJGH ENITTV IDENTIFYING
NlJMBER
MONETARY EXPENDITlJRES
NONMONETARY EXPENDITlJRES
Various ES09403 Various
Various TWOJ009
-31.662
s
34S.746
S4.4S3 6S6.462 {R)
s
710,91S
s
88,747
ISS,390 (R)
s
2,240,130
24,169
s
86S,241 (R)
334 SI3 (R)
l.199,7S4
12.629
110.007 1,220
s
111.227
9S,341
10,366 (R)
20S,290 728,916 (R)
934,206
4BS 387
SB7.S67 400,000 336,4SI (R)
231.436
E-27
0
Georg:ia
0
0
Schedule of Expenditures of Federal Awards
0
For the Fiscal Year Ended June 30, 2001
0
PASS-111ROUGH
0
CFDA
NUMBER
ENITl'Y IDENl'IFVING NUMBER
MONETARY EXPENDmJRES
NONMONETARY EXPENDl1URES
0
Health and Human Services, U. S. Department or
Human Genome Research Direct Through: Georgia Tech Research Corponttion
93.172
0
0
87.298 123.170 (R)
0
210.468
0
Research Rela!ed to Deafness and Communication Disorders Direct Through: Georgia Tech Research Corporllion Through: Medical College ofGeorgia Research Institute
93.173
0
491.743 (R)
122.201 (R) 28.443 (R)
0
642.387 .
0
Allied Health Projec!S Direct
Childhood Lead l'oisaning Prevention Projec!S State and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead l..elids in Olildren
Direct Through: Georgia Tech Research Corporllion
93.191 93.197
0
195.616
0
0
357.268 9.699 (R)
0
366.967
0
Human Health Studies Applied Research and Development Direct
Research and Training in Alternative Medicine Through: Georgia Tech Research Corporllion Through: Medical College ofGeorgia Research Institute
93.206 93.213
113.700 (R)
0
0
178.686 (R) 216.710 (R)
0
395.396
0
Hansen's Disease National Ambulatory Care Program Direct
93.215
419.948
0
Family Planning Services
93.217
0
Direct
6.406,181
0
Research on Healthcare Costs, Quality and Outcomes Direct
93.226
865,594
0
Through: Medical College of Geo~ Research lnstiMe
170,825 (R)
Through: University of Georgia Research Founda!ion
HSI0815
4.498 (R)
0
Consolidated Knowledge Development and Application (KD&A) Program 93.230 Through: Morehouse College
1,040,917
0
30.768 (R)
0
Traumatic Brain lnjwy State Demonstration Grant Program Direct
Abstinence Education Direct
Coopcrllive Agreements for State Treatment Outcomes and Performance Pilot Studies Enhancement Direct
State Rural Hospital FI.,.;bility Program Direct
93.234 93.235 93.238
93.241
0
134.190
0
187.681 (R)
0
0
794,527
0
382.727
0
Mental Health Research Grants Direct
93.242
1.022,798 (R)
0
Through: Georgia Tech Research Corporation Through: Medical College ofGeorgia Research Institute
80,423 (R) 310,790 (R)
0
Through: University of Georgia Research Foundation
Various
825.708 (R)
0
2.239.719
Innovative Food Safety Projects
93.245
0
Direct
46,680
0
Health Centers Grants for Migrant and Sessonal Farm,..,rkers (OICq 93.246 Direct
1,116.437
0
0
0
E-28
0
Georgia
Schedule of Expenditures of Federal Awards For the Ascal Year Ended June 30, 2001
or Health and Human Services, U. S. Department
AcMmced Education Nursing Grw Program Direct
Universal Nev.t>om Hearing Screening Direct
Occupational Safety and Heal1h Rt:search Grants Through: Georsia Tecb Applied Research Corporation Through: Univusity ofGeorsia Research Fo1D1dalion
CFDA NUMBER
93.247 93.251 93.262
Occupalional Safety and Heal1h Training Grants Through: University ofGeorsia Research Foundalion
Immunizalion Grants Ditect
Alcohol National Research Service Awards for Research Training
'1hr9ugh: University ofGeorsia Research FolUldalion
Alcohol it.search Programs Through: Georgia Tech Rt:search Corporalion Through: University ofGeorsia Research Foundation
93.263 93.268 93.272
93.273
Drug Abuse Scientist Development Awards, Research Scientist Development Awards. and Rt:search Scientist Awards Direct
Drug Abuse NaliOMI Research Service Awards for Rt:search Training
Through: Georsia Tech Research Corporation Through: University ofGeorsia it.search FolUldation
93.277 93.278
Drug Abuse Research Programs Direct Through: Georsia Tech it.search Corporalion Through Medical College of Georsia Rt:search Institute 'Through: University ofGeorsia Rosearch FolUldalion
93.279
Mental Heal1h Research Career!Scientist Development Awards
Dire<:t Through: University ofGeorgia Rt:search Foundalion
93.281
Mental Heal1h National Research Service Awards for it.search Training
Direct Through: Georsia Tech it.search Corporation
93.282
Centets for Disease Control and Prevention Investigations and Technical Assistance
Direct Through: University of Georsia Research Foundation
93.283
Nurse Practitioner and Nurse-Midwifery Education ProgJllmS Direct
Comparative Medicine Direct Through: Medical College of Georsia Rosearch Institute Through: University ofGeorsia Research Foundation
93.298 93.306
-- ........ ,-
""""'~./
. ....
PASS-TIIROVGH EN1Tl'V IDENTIFYING
NUMBER
MONETARY EXPENDITIJRES
NONMONETARY EXPENDrrtJRES
OH373701 M07473 Various F32DA14165-0l Various MH00706C
RRll73l
174.083
65,824
15.463 (R) 240.782 (R) 256,245
14.974 (R)
4,457.147 (R)
162,667 (R)
15,261 (R) 360,104 (R) 375,365
s
88,225
7,604 (R) 7,065 (R)
14.669
546,391 (R) 503.156 (R) 301,920 (R) 1.023.812 (R)
2,375.279
s
71,174
90,323 (R)
s
161,497
s
27.317
21,565
s
48.882
s
22,238.004
172.402
22,410,406
288.854
s
1,443.734 (R)
210,141
32,345 (R)
s
1.686.220
15,985,639 (4)
E-29
- - ----- ------
- - - - - - - -- -----------
Georg'.ia.
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
H..lth and Human Services, U. S. Department or
Heal1h Professions Student IAans. Including Prima:y Cate Loansil.oans for Disadvantaged Students (SFA)
Direct
Advanced Education Nurse Traineeships Direct
Basic Nune Education and Practice Grants Direct
Nursing Research Direct
Nw.ing Student IAans (SFA) Direct
Biomedical Technology Direct Through: University ofGeorgia Research Foundalion
CFDA NUMBER
93.342
93.358 93.359 93.361 93.364 93.371
Minority Biomedical Research Suppon Direct
Grants for Graduate Training in Family Medicine Direct
Academic Research Enhancomett Award Through: University ofGeorgia Research Foundalion
Cancer Cause and Prevention Research Direct Through: Georgia Tech Research Corpormion Through: University of Georgia Research Foundalion
93.375 93.379 93.390 93.393
Cancer Treatment Research Through: Medical College ofGeorgia Research lnslitute Through: University ofGeorgia Research Foundalion
93.395
Cancer Biology Research Through: Medical College ofGeorgia Research Institute Through: University ofGeorgia Research Foundation
93.396
Caneer Research Manpower Through: University of Georgia R.osearch Foundation
Cancer Control Through: Medical College ofGeorgia Research Institute
Promoting Safe and Stable Families Direct
Tempormy Assistance for Needy Families Direct Through: Goodwill Industries of the Coastal Empire
93.398 93.399 93.556 93.558
Family Suppon Payments to States - AssiSlance Payments Through: University of Georgia Research Foundalion
Job Opponuniiies and Basic Skills Training Direct
Child Suppon Enforcement Direct
State Legalization Impact Assistance Grants Direct
93.560 93.561 93.563 93.565
P~TIIROUGH
EN1T1Y IDEN11FVING NUMBER
MONETARY EXPENDm.JRES
NONMONETARY EXPEND111JRES
-71268 (3)
299.597 (R)
20.674
140.142 (R)
-31.074 (3)
Various
15,790 (R) 1.174.846 (R)
1,190.636
s
143,951
6,641
CA7352A
-737 (R)
Various
146,669 (R) 77,843 (R) 68424 (R)
292.936
I Ul9 CA87525-02
492,071 (R) 10,423 (R)
502.494
CA64462A
554,585 (R) -6,341 (R)
548.244
CA68073B
81.024 (R)
128,441 (R)
7,335.152 (R)
291.290.071 951
291.291,022
427-93-91231
3,615 (R)
-22.250
79,079,066
-43
2,973,313 (3) 1.232 409 (3)
E-30
0 0 0 0 0 0 0 0 0 0
0
0 0 0
0 0 0 0 0 0
0
0 0
0 Q
0 0 0
0 0
0 0
0
0 0 0 0 0 0
0 0
0
0 0
0
"
Georgia.
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
Health and Human Services, U. S. Department of
Refugee mid Enll'llnt Assistance - State Adminiswed Programs
Direct
Low-Income Home Energy Assistance Direct
Community Services Block Grant Direct
Community Services Block Grant - Diserotionary Awords Through: Nalional Collegiate Athletic Asoocimion
Community Services Block Grant Discmionary AwordsCommunity Food ond Nuuition
Direct
Otild Care ond Development Block Grant (Ccq Direct Through: Geo,.P Otild Care Council
ODA NUMBER
93.S66
93.S68 93.569 93.S70 93.S71
93.S1S
Refugee ond Entrant Assislance - Discretionmy Grants Direct
Refugee ond Entrant Assistance -Targeted Assistance Direct Through: University ofGeorp Research Foundllion
State Coun Improvement Progrmn Direct
Community-Based Family Resource and Suppon Grants Direct
Family Violence Prevention and Services/Grants for Ballered Women's Shelter - Discretionary Grants
Direct
Otild Care Mandatory and Matching Funds of the Oiild Care and Deve1opment Fund (CCq
Direct
Grants to States for Access and Vasiwion Programs Direct
Head Stan Direct
Through: Ninth District Opponunity, Incorporated Through: Sumter Head Stan Through: University of Georgia Research Foundmion
Adoption Incentive Payments Direct
Developmental Disabilities Basic Suppon and Advocacy Grants
Diroct Through: Georgia Council on Development Disabilities Through: Georgia Tech Research Corporation
Developmental Disabilities Projects of National Significance Direct
Developmental Disabilities University Affiliated Programs Direct
93.S76 93.584
93.586 93.S90 93.592 93.S96 93.597 93.600
93.603 93.630
93.631 93.632
, ___ ----~
PASS-THROUGH ENITIY IDENTIFVING
NUMBER
MONETARY EXPENDITURES
NONMONETARY EXPENDITURES
s
427-93-71SS4&01724 Various
427-93-17429
01-497
s
s s
Various
Various
s
8,401.780
28,SS4,669
IS,729,608
201.481
103.633
64,874,440 !S,283 39,S27 4,363
64,933,613
672,446
1,104.649 623 (R)
1,lOS,272
280,919
451,329
69.699
83,344,264
27S,943
2,679,970 (R) SS,100 3,666 27444 (R)
2.766.780
718,334
1,795,130 (R) 19,411 (R) -6 (R)
1,814,535
39,663
92.793
E - 31
,.----------------~-~~~--~~-~~~~~---~-~~-------- - - -
0
0
0
Schedule of Expenditures of Federal Awards
0
For the Fiscal Year Ended June 30, 2001
0
PASS-TIIROUGH
0
CFDA
ENI'JTY IDENTIFYING
MONETARY
NONMONETARY
NUMBER
NUMBER
EXPENDITURES
EXPENDITURES
0
Health and Human Services, U. S. Department of
0
Children's Justice Grants to States
93.643
0
Direct
0
Child Welfare Services State Grants
93.645
Direct
0
Child Welfare Services Training Grants Direct
93.648
0
Adoption Opponunilies
93.652
0
Direct
0
Foster Care Title NE
93.658
Direct
0
Adoption Assismnce Direc1
93.659
0
Social Services Block Grant
93.667
0
Direct Tbroush: Crty of Albany
0
0
s - Child Abuse and Neglec1 Grants
Direct
93.669
0
Tbroush: Universily of Georgia Research Foundation
000121
0
0
Child Abuse and Neglect Discretionmy Activities
93.670
Direct
0
Family V10lence Prevention and Services/Grants for Batlered Women's Shelters Grants to States and Indian Tnbes
93.671
0
Direct
0
lndependenl Living Direct
93.674
0
s - Children's Insurance Program
93.767
0
Direct
Medicaid lnftastructure Grants To Support the Competitive
93.768
0
Employmen1 ofPeople will> Disabilities Direct
0
Medicare Hospital Insurance
93.m
0
Direct
0
Medicare Supplementary Medical Insurance
93.774
Direct
0
s - Medicaid Fraud Control Units (Mq
Direct
93.775
0
State Survey ond Cerlificslion ofHealth Care Providers
93.m
0
and Suppliers (Mq
Direct
0
Medical AssiSIBnce Program (MC) Direct
93.778
0
Health Care Financing Research, Demonstralions
93.779
0
and Evaluations Direct
0
Scholarships for Students of Exceptional Financial Need (SFA)
93.820
0
Direct
Cell Biology and Biophysics Research
93.821
0
Direct Through: Georgia Tech Research Corporalion
0
Through: Medical College ofGeorgia Research lnstiMe Through: University ofGeorgia Research Foundation
Various
0
0
0
E-32
0
8eorg1B.
Schedule of Expenditures of Federal Awards For the Ascal Year Ended June 30, 2001
Health and Human Services, U. S. Department of
Health Careers Oppommily Program Direct
Basic/Core Area Health Education Centers Direct
Hean and Voscular Diseases Research Through: Georgia Tech Applied Research Corpormion Through: Georgia Tech Research Corpormion Through: Medical College ofGeorgia Research lnslitu1e Through: Univmi!y ofGeorgia Research Foundation
CFDA
NUMBER
93.822 93.824 93.837
Lung Diseases Research Direct Through: Medical College of Georgia Research lnslitu1e Through: Univmi!y ofGeorgia Research Foundalion.
93.838
Blood Diseases and Resources Research Direct Through: Georgia Tech Research Corpormion Through: Medical College ofGeorgia Rt:search lnslitute
93.839
Arthritis, Musculoskele131 and Slcin Diseases Rt:search Through: Medical College ofGeorgia Research Institute
Diabetes, Endocrinology and Me!abolism Research Through: Georgia Tech Research Corpormion Through: Universi!y ofGeorgia Research Foundation
93.846 93.847
Digestive Diseases and Nutrition Research Direct Through: Medical College ofGeorgia Research lnslitute Through: University ofGeorgia Research Foundalion
93.848
Kidney Diseases, Urology and Hematology Research Through: Medical College ofGeorgia Research Institute Through: Universi!y ofGeorgia Research Foundalion
93.849
Extramuml Research Programs in the Neurosciences and Neurological Disordm Direct ThrolJ6h: Georgia Tech Research Corporation Through: Medical College ofGeorgia Research Institute Through: Universi!y ofGeorgia Research Foundation
93.853
Allergy, Immunology and Transpbntation Research Through: Georgia Tech Research Corporation Through: Medical College of Georgia Research lnslitute
93.855
Microbiology and Infectious Diseases Research Direct Through: Medical College ofGeorgia Research Institute Through: Universi!y ofGeorgia Research Foundalion
93.856
'<
PASS-ll!ROUGH ENTITY IDENTIFYING
NUMBER
MONETARY EXPENDITURES
NONMONETARY EXPENDITURES
Various Various
Various Various Various PO#! 00090924
Various
263.224
1.214.872
s
24.898 (R)
426,562 (R)
6,642,068 (R)
132,270 (R)
7.225.798
10,507 (R) 195,236 (R) 259.710 (R)
s
465 453
210,052 (R) 302,407 (R) 2,781.618 (R)
s
3,:94.077
157,899 (R)
3.320 (R) 465.217 (R)
468,537
306,932 (R) 841,791 (R) 212,167 (R)
1.360,890
306,789 (R) 151,741 (R)
458.530
s
547,708
170,327 (R)
1,287,591 (R)
16,975 (R)
2,022.601
226,589 (R) 1.128,914 (R)
1.355.503
683.016 (R) 439,103 (R) 3,473.210 (R)
s
4,595.329
E-33
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
Health and Haman Services, tJ. S. Depanment or
Phamw:ology, Physiology, and Biorelated Oiemistry Rosoarch
Direct Through: Georgia Tech Research Corporlllion Through: University ofGeorgia Rcscarch Foundalion
CFDA
NUMBER
93.859
Genetics and Developmmtal Biology Research and Rosoarch Training Through: Georgia Tech Research Corporlllion Through: Medical College ofGeorgia Research Institute Through: Univi:r>ity of Georgia Rcscarch Foundalion
93.862
Popullllion Research Direct Through: Medical College ofGeorgia )\esearch Institute Through: lJnMrsity of Georgia Rcscarch Foundation
93.864
Center for Rcscarch for Mothers and Children Direct Through: Medical College of Georgia Rosoarch Institute Through: llniveisity ofGeorgia Research Foundation
93.865
Aging Research Direct Through: Georgia Tech Applied Research Corporlllion Through: Georgia Tech Research Corporlllion Through: University ofGeorgia Research Foundalion
93.866
Vision Research Direct Through: Medical College ofGeorgia Researd1 lnstiMe
93.867
Minority Aocess to Rosoarch Careers Through: Univorsity ofGeorgia Research Foundalion
GrBllts for 115doncy Training in Gonenil lntomal Medicine and/or Gonenil Pediatrics
Direct
Physician Assistant Training in Prinwy Care Direct
Resource and Manpower Development in the Environmental Health Sciences
Through: University ofGeorgia Research Foundation
Granis for Faculty Development in Family Medicine Direct
Rural Health Medical Education I>emonslnuion ProjoclS Direct
Rural Health Outreach and Rural Network Development Progrmn
Direct
Granis to Soltes for Operalion ofOffices of Rural Heallh Direct
Nuno Aneslhelist Educa!ion Programs Direct
HIV Care Formula Granis Direct
93.880 93.884
93.886 93.894
93.895 93.906 93. 912
93.913 93.916 93.917
PASS-1HROUCH ENTITY IDENTIFYING
NUMBER
MONETARY EXPENDmJRES
NONMONETARY EXPENDITVRES
Various Various
Various Various 5 F3 I GM2009502 Various
87,07i (R) 452,750 (R) 1,748,123 (R)
s_ _ _...2:,.2=87=,9.5:1..
130,347 (R) 243,670 (R) 1,564,003 (R)
$
1,938.020
$
73,647 (R)
385,072 (R)
34,762 (R)
s
493,481
s
1,482,594 (R)
1,176,751 (R)
967.892 (R)
$
3,627.237
$
282,207 (R)
8,636 (R)
721,293 (R)
499,87i (R)
1,512 014
104,076 (R) 1.569 323 (R)
1 673.399
22,743 (R)
158.167 66,880
6,068 (R)
$-----==22;6.,l;l6.
$----"""""l=ll,8"7"7-
217.097 20,280 80,095
3,079,460
E-34
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
c
0
G:orgm
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
Health and Homan Services, U. S. Department or
Grams to Provide Outpatient Early Intervention SeMces IMth Respect to HIV Disease
Direct
Cooperative Agreemen!S for Swe-Based Comprd1ensive Breast and Cervical Cancer Early Delection Programs
Direct
Scholarships for Heald! Professions Studen!S from Disadvanmg<d Baekgiounds (SFA)
Direct
Heald!y St1rt Initiative Direct
Center for Medical Rdlabili!llion Research Through: University orGeorgia Reseorch Fouodalion
Fogarty lnlemalional Research Collabol"lltioo Award Direct Through: l.Jniversity ofGeorgia Reseorch Fouodalion
CFDA NllMBER
93.918 93.919 93.925 93.926 93.929 93.934
Cooperalive Agreemen1s to Suppon Comprehensive School Health Programs to Prevent die Spread of HIV and Other lmponant Hcallh Problems
Direct
HIV Prevention Activities- Hcal1h Deponmeot Based Direct
HIV Demonstration, Research, Public and Professional Education Projec!S
Direct
Epidemiologic Research Studies of Acquired Immunodefieiency Syndrome (AIDS) and Human Immunodeficiency Virus (HIV) Infection in Selected Pcpulalion Groups
Through: l1niversity of Georgia Research Fouodalion
Human Immunode6ciency Virus (HJV)/Acquired Immunodeficiency Virus Syndrome (AIDS) SwveiUance
Direct
Assistance Program for Chronic Disease Prevention and Control
Direct
Demonstration Grams to States IMth Respect to Almeimer's Disease
DiJOCt
Block Gran!S for Community Menial Heald! Services OiJOCt
Block Grants for Prevention and Treatment of Substance Abuse
OiJOCt Through: lJniversity of Georgia Research Foundation
93.938
93.940 93.941 93.943
93.944 93.945 93.951 93.958 93.959
Heald! Administration Traineeships and Special Projec!S Program
OiJOCt
Preventive Hcal1h Services - Sexually Transmitted Diseases Conttol Gran!S Direct
Mental Hcal1h Disaster Assistance and E;,,ergeocy Mental Health
Direct
93.962 93.977 93.982
...'}
PASS-THROUGH EN1TTV IDEN11FYING
NlJMBER
MONETARY EXPENDITtJRES
NONMONITARY EXPENDITtJRES
5-23429 Various
Various
Various
918,604
s
3,233 192
364,071 (R)
899,074
752 (R)
4,290 (R) 51.435 (R) 55.725
569.296 6,531,868
859,795
s
814,671 (R)
675,004
562,484
-281,382 9,446,205
s
45,554,652
28,277
45,582.929
16.970
2.619.547
147
152.892
E- 35
0
Gorg1B.
0
0
Schedule of Expenditures of Federal Awards
0
For the Fiscal Year Ended June 30, 2001
0
P~TIIROUGH
0
ODA
EN'ITIY mENTIFVJNG
MONETARY
NONMONETARY
NUMBER
NUMBER
EXPENDTJ'IJRES
EXPENDITIJJlES
0
Health and Human Services, U. S. Department of
Academic Administtative Units in Primary Care Direct
Coopermive Agieemems for State-Based Diabetes Control Programs and Evalualion ofSwveillance Systems
Direct
Senior lntemalional Fellowships Through: Medical College ofGeorgia Research lnslitute
J>m.enlive Health and Health Services Block Grant Direct
93.984 93.988
93.989 93.991
0
0
228,S76
0
250,497
0
0
3.319
0
5,205 106
0
Maternal and Cl!ild Health Services Bloclc Grant to the Swes
Direct
93.994
Other Federal Assistance
93.XXX
Direct
Through: American Council on Educalion
Through: City of Albany
Through: Family Miiiers Consulting, lncorporalion
Through: Georgia Associalion for Primary Health Care
Through: Georgia Tech Applied Research Corporalion
Through: Georgia Tech Research Corporlllion
Through: Nalional Associalion of Equal Opponunity in Higher Educalion
Through: Nalional Collegiate Athletic Associalion
Through: University of Connecticut
Through: University ofGeorgia Research Foundalion
Through: U. S. - Ulcnine Foundalion
Through: Virginia Tech
Through: World Leaming, Incorporated
58-0965786/1071-98 Various
CR 19295-425215
0
16.117,890
0
511,867 (R),(3) 23,42S (R) 72,484 275,642 (R)
797 163,473 (R) 2.241,879 (R)
7,9S2 167,576 11,924 (R) 5.008,122 (R)
2,573 (R) 1,712 5,381 (R)
473,570 (3)
0
0
0
0
0
0
0
8,494,807
s
473,570
0
AGENCY TOTAL
4,037,137,059
s
21,049,259
0
Corporation for National and Community Service
S1a1e Commissions Direct
Learn and Serve America School and Community Based Programs
Direct
Learn and Serve America Higher Educalion Direct
94.003 94.004 94.005
0
0
493,766
0
0
732,653
0
2 859
0
AmeriCorps Direct
94.006
4,203,167
0
Through: The Georgia Commission for Nalional/Community Service
Various
102,504 (R)
0
4,305,671
0
Planning and Program Development Grants
94.007
Direct
67,714
0
Through: The Georgia Commission for National/Community Service
OOSPHGA028
12,540 (R)
80,254
0
Training and Technical Assistance Direct
Foster Grandparent Program (FGCC) Direct
94.009 94.011
0
148,370
0
l.100
0
Senior Companion Program (FGCC) Direct
Other Federal Assistance Through: Georgia Tech Applied Research Corporalion
94.016 94.XXX
169,434
0
0
7,988 (R)
0
AGENCY TOTAL
5,942,095
0
0
E-36
0
. >
~">;; \ ~.
Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
Social Security Administration Social Security Disabilily lnsunmce (Dl/SSI) Direct
AGENCY TOTAL
Stale Justice Institute
O'DA
NUMBER 96.001
98.XXX
AGENCY TOTAL
Japan-U. S. Friendship Commission Other Federal Assislance lluough: Univmity ofGeorgia Research Fo1D1dalion
AGENCY TOTAL
GRANDTOTALEXPENDITURESOFFEDERALAWARDS
99.XXX
PASS-TIIROUGH ENITJY IDENllFYING
NUMBER
MONETARY EXPENDrl'URES
NONMONETARY EXPENDITURES
48.674.107 48.674.107
2.200 2.200
16.289 (R) 16,289 7.830,8S2.086
2.S01.S33.12S
E-37
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(This page intentionally left blank)
0
0
0
0
0
0
0
0
0
0
0
c c
c c
c c c c c c c c c
Notes to the Schedule of Expenditures of Federal Awards For the Fiscal Year Ended June 30, 2001
PURPOSE OF THE SCHEDULE
Office ofManagement and Budget (OMB) Circular A-133, Audits ofStates, 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, 2001. 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 connnodities, 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 18 ()f 31 Type A
programs and 7 Type B programs being selected as major programs for the State of Georgia. For the fiscal year
ended June 30, 2001, a Type A program is defined as any Federal program which exceeded $25,179,383 in
expenditures/disb:ursements/issuances .
Basis ofAccounting - The Schedule ofExpenditures ofFederal Awards is prepared using the basis ofaccounting 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 redistnbutes 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 ofreporting expenditures/expenses results in an overstatement of the aggregate level ofFederal 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 $62,045,515 and State exp.enditures of $407,450,415 .
(2) During the fiscal year ended June 30, 2001, the Georgia Department of Human Resources received $58,618,221 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. l 6(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 88,288 additional persons per month during fiscal year 2001 .
E-39
0
0
0
Notes to the Schedule of Expenditures of Federal Awards
0
For the Ascal Year Ended June 30, 2001
0
(3) Federally funded loan programs incurred the following current fiscal year monetary and nonmonetary expenditures:
0
0
CFDA NUMBER
GRANT PROGRAM
MONETARY
NONMONETARY
0
0
LOANS
LOANS MADE
NEW FEDERAL CAPITAL
FEDERAL REIMBURSEMENT
ADMINISTRATIVE COSTS
OUTSTANDING AT 06/30/01
DURING YEAR
0
0
23.011 66.458
..Appalachian State Research, Technical
Assistance, and Demonstration Projects ( )
s
Capitalization Grants for State Revolving Funds
s
0 s 37,783,376 s
0 s
2,636 s
1,105,884 s
0
0
0 s
0
1,996,852 s
278,788,630 s
6,756,970
0
66.468 84.032 84.038 84.226 93.342
93.364 93.XXX 93.XXX
CapitalizationGrantswrDrinlcingWm~
State Revolving Funds
Federal F81T111y Education Loans (..)
s
Federal P~kins Loan Program Federal Capital Contributions
s
Income Contingent Loan Program
$
Heahh Professions Student Loans, Including Primary Care Loans/Loans for $ Disadvantaged Students
Nuning Student Loans
s
Phannacy Lo.ans (00)
$
Veterinary Medicine Loans ("")
s 9,096,856 0 s
30,462 $
0 s -71,268 s
-34,965 $
-209,583 s -197,073 s
0 s 31,390,661 s
568,532 s
0 $
0 s 2,062 s
0 $
0 s
340,409 s
17,320,608 s
6,615,080
0
0 s
1,598,732,000 s
177,539,607
0
0
163,806 s
s 38,494,663
5,259,565
0
0 $
s 136,344.21
0
0
0 s
2,973,313 $
204,200
0
1,829 s 0 s
0 $
s 1,232,409 210,595 s 262,975 s
0
215,112
0
0
0
0
0
(**)The monetary amount for this program does not equal the monetary amount shown in the schedule. Numerous grants and
0
contracts have been combined for reporting purposes.
0
(4) Certain programs administered by the Federal government provide goods and services to organizational units ofthe State in
0
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:
0
0
CFDA
0
NO.
0
0
10.550
The reported amounts, incurred by two organizational units of the State, represent the U.S. Department of
Agriculture assigned value of the donated conunodities for the Food Distribution Program.
0
0
10.551
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
0
Human Resources is responsible for determining eligibility for participation in the Food Stamp Program. For
0
the year under review, the total value of food stamp benefits distributed as approved by the Department was $502, 118,960.
0
c
93.268
The amount reported represents the U. S. Department of Health and Human Services assigned value of
c
immunizations for vaccine-preventable diseases to eligible individuals.
c
c
c
c
c
E-40
c
... '_,,
Notes to the Schedule of Expenditures of Federal Awards For the Ascal Year Ended June 30, 2001
(5) Cluster programs are detailed on the Schedule ofCluster Programs and identified as follows on the Schedule ofExpenditures ofFederal Awards:
(AC) (CCC) (CNC) (CHCC) (DI/SSI) (EFAC) (ESC) (ESCC) (FTC) (FWC) (FSC) (FGCC) (HPCC) (HSC) (JC) (MC) (R) (SSC) (SEC) (SFA) (TRIO)
Aging Child Care Child Nutrition Consolidated Health Centers Disability Insurance/SS! Emergency Food Assistance Employment Service CDBG - Entitlement and (HUD-Administered) Small Cities Federal Transit Fish and Wildlife Food Stamp Foster Grandparent/Senior Companion Highway Planning and Construction Cluster Highway Safety Job Training Partnership Act Medicaid Research and Development Section 8 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 ~ount provided to subrecipients from each Federal program Major programs expenditures presented in the schedule account for approximately 80% oftotal Federal expenditures for the State ofGeorgia. Provided below is the amount ofmajor programs awards provided to subrecipients:
CFDA
NUMBER
66.458 66.468 84.010
84.048 93.558 93.568
GRANT PROGRAM
Capitalization Grants for State Revolving Funds Capitalization Grants for Drinking Water State Revolving Funds Title I Grants to Local Educational Agencies Special Education Cluster Vocational Education - Basic Grants to States TemJ)orary Assistance for Needy Families Low-Income Home Energy Assistance Child Care Cluster Research and Development Cluster
Total
AMOUNT PROVIDED TO SUBRECIPIENTS
$
35.736,295
9,096,856
207,119,999
134,202,631
15,590,895
11,001,653
2,145,792
15,283
26,064.322
$
440,973,726
E-41
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(This page intentionally Left blank)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
c c
c c c
c
c
c: c
ScHEDULE OF CLusr'ER PRCkr.R..Alvfs
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(This page intentionally left blank)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Georgia
Schedule of Cluster Programs For the Ascal Year Ended June 30, 2001
Aging Cluster (AC) Special Programs for the Aging - Title ill, Part B Grants for Supportive Services and Senior Centers Special Programs for the Aging - Title ill, Part C Nutrition Services
Child Care Cluster (CCC) Child Care and Development Block Grant Child Care Mandatory and Matching Funds ofthe 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
Consolidated Health Centers Cluster (CHCC) Health Centers Grants for Migrant and Seasonal Farmworkers
Disability Insurance/SSI Cluster (DiJSSI) 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 - Formula Grants
. ~:,.,.
CFDA NUMBER
MONETARY EXPENDITURES
NONMONETARY EXPENDITURES
93.044 $
93.045
$
5,755,920 10,056,717 15,812,637
93.575 $ 93.596
$
64,933,612 83,344,264 148,277,876
10.553 $ 10.555 10.556 10.559
$
62,695,602 210,537,620
27,348 7,431,248
280,691,818
93.246 $
1,116,437
96.001 $
48,674,107
10.568 $
10.569
$
1,748,980 $
1,748,980 $
5,537,562 5,537,562
17.207 $ 17.801 17.804
$
24,868,742 1,787,198 1,347,304
28,003,244
14.219 $
20.500 $ 20.507
$
3,667,625
2,750,000 6,177,110 8,927,110
E-45
0
Georgia.
0
0
Schedule of Cluster Programs
0
For the Fiscal Year Ended June 30, 2001
0
CFDA
MONETARY
NONMONETARY
0
NUMBER EXPENDITURES EXPENDITURES
0
Fish and Wildlife Cluster (FWC) Sport Fish Restoration Wildlife Restoration
Food Stamp Cluster (FSC) Food Stamps State Administrative Matching Grants for Food Stamp Program
0
15.605 $ 15.611
4,917,169 4,188,605
0
0
$
9,105,774
0
10.551 10.561
0
$
502,118,960
0
$
57,676,495
0
$
57,676,495 $
502,118,960
0
Foster Grandparent/Senior Companion Cluster (FGCC)
0
Foster Grandparent Program Senior Companion Program
94.011 $
1,100
0
94.016
169,434
0
$
170,534
0
Highway Planning and Construction Cluster (HPCC)
0
Highway Planning and Construction
20.205 $
809,936,211
0
Highway Safety Cluster (HSC)
0
State and Community Highway Safety
20.600 $
10,527,272
0
Job Training Partnership Act Cluster (JC)
0
Employment and Training Assistance Dislocated Workers
17.246 $
4,556,336
0
Job Training Partnership Act
17.250
12,264,183
0
$
16,820,519
0
Medicaid Cluster (MC)
0
State Medicaid Fraud Control Units
93.775 $
2,506,146
0
State Survey and Certification of Health Care Providers and Suppliers
93.777
2,965,539
0
Medical Assistance Program
93.778
2,952, 106,885
0
$
2,957,578,570
0
Research and Development Cluster (R)
0
Agricultural Research - Basic and Applied Research
10.001 $
177,539
0
Plant and Animal Disease, Pest Control, and Animal Care Wildlife Services
10.025 10.028
230,717 64,928
0
Grants for Agricultural Research, Special Research Grants
10.200
2,768,647
0
Cooperative Forestry Research Payments to Agricultural Experiment Stations Under the
10.202 10.203
729,740
0
Hatch Act Grants for Agricultural Research Competitive Research Grants
4,183,406
0
10.206
2,350,093
0
Higher Education Challenge Grants Buildings and Facilities Program
10.217 10.218
63,698 53,599
0
Biotechnology Risk Assessment Research
10.219
2,958
0
Funds for Rural America - Research, Education, and Extension Activities
10.224
38,676
0
Initiative for Future Agriculture and Food Systems
10.302
124,025
0
0
E-46
0
.,. .....
Schedule of Cluster Programs For the F1scal Year Ended June 30, 2001
CFDA NUMBER
MONETARY EXPENDITURES .
Research and Development Cluster (R) Integrated Programs Cooperative Extension Service Summer Food Service Program for Children (CNC) Commodity Supplemental Food Program Forestry Research Cooperative Forestry Assistance Soil and Water Conservation Scientific Cooperation Program Other Federal Assistance Economic Development - Technical Assistance Trade Adjustment Assistance Sea Grant Support Coastal Zone Management Estuarine Research Reserves Marine Research - Regional Programs Center for Sponsored Coastal Ocean Program - Coastal Ocean Program Measurement and Engineering Research and Standards Other Federal Assistance Collaborative Research and Development Basic and Applied Scientific Research Military Medical Research and Development Basic Scientific Research International Education - U.S. Colleges and Universities 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 Community Development Block Grants/Entitlement Grants (ESCC) Other Federal Assistance Environmental Contaminants Fish and Wildlife Management Assistance Cooperative Endangered Species Conservation Fund Administrative Grants for Federal Aid in Sport Fish and Wildlife Restoration Assistance to State Water Resources Research Institutes Earthquake Hazards Reduction Program U.S. Geological Survey - Research and Data Acquisition National Spatial Data Infrastructure Cooperative Agreements Program Historic Preservation Fund Grants-In-Aid Other Federal Assistance National Institute for Juvenile Justice and Delinquency Prevention National Institute ofJustice W.E.B. DuBois Fellowship Program Other Federal Assistance Job Training Partnership Act (JC) Other Federal Assistance College and University Affiliations Program Other Federal Assistance Other Federal Assistance Other Federal Assistance Other Federal Assistance
10.303 $ 10.SOO 10.SS9 10.S6S 10.6S2 10.664 10.902 10.961 10.XXX 11.303 11.313 11.417 11.420 11.464 11.478 11.609 11.XXX 12.114 12.300 12.420 . 12.431 12.SSO 12.600 12.630
12.800 12.901 12.910 12.XXX 14.218 14.XXX IS.607 lS.608 1S.61S lS.618
IS.SOS IS.807 lS.808
lS.809 lS.904 lS.XXX 16.542
16.566 16.XXX 17.250 17.XXX "19.406 19.XXX 20.XXX 21.XXX 23.XXX
164,536 10,764,797
103,653 88
532,086 214,965
14 30,265 2,755,107 99,568 858,560 1,360,954 47,757 147,027 66,139 57,869 6,651,367 -S,399 10,500,303 18S,S02 61,133 S2,702 206,607
27,I 16 3,6S3,227
41,178 3,460,SSO SS,882,688
62,S82 2S4,749
193 9,32S SO,S06
-86 2,005 47).27 7S,446
2,495 81,823 1,935,767
118,882 21,726 26,010 30,39S 1,048,712 113,9S7 797,627 1,987,616
-11 42,334
NONMONETARY EXPENDITURES ,,
E-47
0
0
0
Schedule of Cluster Programs
0
For the Fiscal Year Ended June 30, 2001
0
CFDA
MONETARY
NONMONETARY
0
NUMBER EXPENDITURES
EXPENDITURES
0
Research and Development Cluster (R)
0
Intergovernmental Personnel Act (IPA) Mobility Program Other Federal Assistance
27.011 $ 39.XXX
52,035 811,387
0
Aerospace Education Services Program
43.001
115,256
0
Technology Transfer Other Federal Assistance
43.002 43.XXX
-I77,825 10,350,899
0
Promotion ofthe Arts - Grants to Organizations
45.024
0
and Individuals Promotion ofthe Humanities - Federal/State Partnership
45.129
26,335 2,828
0
Promotion of the Humanities - Challenge Grants
45.130
551
0
Institute of Museum and Library Services -
45.312
National Leadership Grants
115,363
0
Other Federal Assistance Engineering Grants
45.XXX 47.041
376,588 11,424,797
0
Mathematical and Physical Sciences
47.049
4,500,495
0
Geosciences Computer and Information Science and Engineering
47.050 47.070
1,776,920 6,720,117
0
Biological Sciences
47.074
2,718,230
0
Social, Behavioral, and Economic Sciences
47.075
736,782
Education and Human Resources
47.076
1,467,793
0
Polar Programs Other Federal Assistance
47.078
67,251
0
47.XXX
14,I30,093
Business Development Assistance to Small Business
59.005
608
0
Small Business Development Center Other Federal Assistance
59.037 59.XXX
2,221,395 54,456
0
Veterans State Hospital Care
64.016
27,834
0
Other Federal Assistance Water Quality Management Planning
64.XXX 66.454
784,282 45,894
0
Nonpoint Source Implementation Grants
66.460
68,976
0
Environmental Protection - Consolidated Research
66.500
2,409,297
Surveys, Studies, Investigations and Special Purpose Grants
66.606
192,454
0
Training and Fellowships for the Environmental Protection Agency
66.607
171,565
0
Other Federal Assistance
66.XXX
2,481,562
0
Office of Science Financial Assistance Program Conservation Research and Development
81.049 81.086
3,501,807 119,135
0
Renewable Energy Research and Development
81.087
97,135
0
Science and Engineering Training to Support Diversity-Related Programs 81.116
Other Federal Assistance
81.XXX
47,213 16,769,351
0
International: Overseas - Doctoral Dissertation
84.022
9,589
0
Special Education - Innovation and Development
84.023
58,489
Special Education - Grants to States (SEC)
84.027
129,970
0
Higher Education - Institutional Aid
84.031
1,810,936
0
Federal Work-Study Program (SFA)
84.033
773,325
TRIO - Student Support Services (TRIO)
84.042
213,211
0
TRIO - Talent Search (TRIO) TRIO - Upward Bound (TRIO)
84.044 84.047
649,466 1,087,780
0
TRIO - Educational Opportunity Centers (TRIO)
84.066
402,910
0
Fund for the Improvement of Postsecondary Education Rehabilitation Services Vocational Rehabilitation Grants
84.116 84.126
6,335
0
to States
3,041
0
Rehabilitation Long-Term Training
84.129
87,247
National Institute on Disability and Rehabilitation Research
84.133
73,517
0
Graduate Assistance in Areas ofNational Need Centers for International Business Education
84.200 84.220
15,464 -24,295
0
0
0
E-48
0
.:~. <
Georgia.
Schedule of Cluster Programs For the Fiscal Year Ended June 30, 2001
CFDA NUMBER
MONETARY EXPENDITURES
NONMONETARY , EXPENDITURES,
Research and Development Cluster (R)
Rehabilitation Services Demonstration and Training -
84.235
Special Demonstration Programs
$
Rehabilitation Training- State Vocational Rehabilitation
84.265
Unit In-Service Training
Eisenhower Professional Development State Grants
84.281
National Institute on Student Achievement, Curriculum, and
84.305
Assessment
Special Education - Research and Innovation to Improve
84.324
Services and Results for Children with Disabilities
Special Education - Personnel Preparation to Improve
84.325
Services and Results for Children with Disabilities
Special Education - Technology and Media Services for Individuals
84.327
with Disabilities
Teacher Quality Enhancement Grants
84.336
Preparing Tomorrow's Teachers to Use Technology
84.342
Other Federal Assistance
84.XXX
National Historical Publications and Records Grants
89.003
Other Federal Assistance
89.XXX
Food and Drug Administration - Research
93.103
Biological Response to Environmental Health Hazards
93.113
Oral Diseases and Disorders Research
93.121
Centers for Research and Demonstration for Health Promotion and
93.135
Disease Prevention
Injury Prevention and Control Research and State and
93.136
Community Based Programs
International Cooperative Biodiversity Groups Program
93.168
Human Genome Research
93.172
Research Related to Deafness and Communication Disorders
93.173
Childhood Lead Poisoning Prevention Projects - State and
93.197
Local Childhood Lead Poisoning Prevention and
Surveillance ofBlood Lead Levels in Children
Human Health Studies - Applied Research and Development
93.206
Research and Training in Alternative Medicine
93.213
Research on Healthcare Costs, Quality and Outcomes
93.226
Consolidated Knowledge Development and Application (KD&A) Program 93.230
Abstinence Education
93.235
Mental Health Research Grants
93.242
Occupational Safety and Health Research Grants
93.262
Occupational Safety and Health - Training Grants
93.263
Immunization Grants
93.268
Alcohol National Research Service Awards for
93.272
Research Training
Alcohol Research Programs
93.273
Drug Abuse National Research Service Awards
93.278
for Research Training
Drug Abuse Research Programs
93.279
Mental Health Research Career/Scientist
93.281
Development Awards
Comparative Medicine
93.306
Advanced Education Nurse Traineeships
93.358
Nursing Research
93.361
Biomedical Technology
93.371
Academic Research Enhancement Award
93.390
Cancer Cause and Prevention Research
93.393
222,091
90,312 1,326,584
390,838
286,058
522,956
175,492 152,131 233,783 2,462,249
7,765 19,818 656,462 155,390 1,199,754
10,366
. 728,916 336,451 123,170 642,388
9,699 31,887 395,396 175,322 30,768 10,030 2,239,720 256,245 14,974 41,079
162,667 375,365
14,669 2,375,279
90,323 1,476,079
13,587 140,142 1,174,631
-737 292,936
E-49
-- - - - -- - " '-- - - - -- -
0
0
0
Schedule of Cluster Programs
0
For the Fiscal Year Ended June 30, 2001
0
CFDA
MONETARY
NONMONETARY
0
NUMBER
EXPENDITURES
EXPENDITURES
0
Research and Development Cluster (R)
0
Cancer Treatment Research Cancer Biology Research Cancer Research Manpower Cancer Control Promoting Safe and Stable Families
93.395 $ 93.396
502,494 548,245
0
93.398
81,024
0
93.399 93.556
128,441 85,532
0
Family Support Payments to States - Assistance Payments
93.560
3,615
0
Refugee and Entrant Assistance - Targeted Assistance
93.584
623
Head Start
93.600
207,992
0
Developmental Disabilities Basic Support and
93.630
0
Advocacy Grants
298,203
Child Welfare Services Training Grants
93.648
40,304
0
Child Abuse and Neglect State Grants Cell Biology and Biophysics Research
93.669 93.821
88,982 3,458,520
0
Heart and Vascular Diseases Research
93.837
7,225,798
0
Lung Diseases Research Blood Diseases and Resources Research
93.838 93.839
465,453 3,123,738
0
Arthritis, Musculoskeletal and Skin Diseases Research
93.846
157,899
0
Diabetes, Endocrinology and Metabolism Research
93.847
468,537
Digestive Diseases and Nutrition Research
93.848
1,360,890
0
Kidney Diseases, Urology and Hematology Research Extramural Research Programs in the Neurosciences and
93.849 93.853
458,530
0
Neurological Disorders
1,474,893
0
Allergy, Immunology and Transplantation Research Microbiology and Infectious Diseases Research
93.855 93.856
1,355,503 4,364,189
0
Pharmacolbgy, Physiology, and Biorelated
93.859
0
Chemistry Research Genetics and Developmental Biology Research and Research Training
93.862
2,287,951 1,938,020
0
Population Research
93.864
493,481
0
Center for Research for Mothers and Children
93.865
3,627,237
Aging Research
93.866
1,460,967
0
Vision Research Minority Access to Research Careers
93.867 93.880
1,673,400 22,743
0
Resource and Manpower Development in the
93.894
0
Environmental Health Sciences Scholarships for Health Professions Students from
93.925
6,068
0
Disadvantaged Backgrounds (SFA)
198,966
0
Center for Medical Rehabilitation Research Fogarty International Research Collaboration Award
93.929 93.934
752 54,644
0
Epidemiologic Research Studies of Acquired
93.943
0
Immunodeficiency Syndrome (AIDS) and Human
Immunodeficiency Virus (HIV) Infection
0
in Selected Population Groups Other Federal Assistance ArneriCorps
814,671
0
93.XXX
8,080,500
94.006
102,504
0
Planning and Program Development Grants Other Federal Assistance
94.007 94.XXX
12,540 7,988
0
Other Federal Assistance
99.XXX
16,289
0
Section 8 Cluster (SSC) Section 8 Housing Choice Vouchers
$
300,684,970
0
0
14.871 $
75,224,845
0
0
0
0
E-50
0
Schedule of Cluster Programs For the Fiscal Year Ended June 30, 2001
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 ProgramFederal 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 TRIO - Educational Opportunity Centers McNair Post-Baccalaureate Achievement
CFDA NUMBER
MONETARY EXPENDITURES
NONMONETARY EXPENDITURES, .
84.027 $ 84.173
$
130,464,102 10,122,344
140,586,446
84.007' $ 84.032 84.033 84.038
84.063 84.268 93.342
93.364 93.820 93.925
$
84.042 $ 84.044 84.047 84.066 84.217
$
7,119,063 32,747,813 $ 8,464,284
762,800 129,500,008 251,352,203
-71,268 -31,074 28,511
364,071
430,236,411 $
1,577,811 1,413,995 2,934,821
970,927 446,680
7,344,234
1,598,732,000 38,494,663
2,973,313 1,232,409
1,641,432,385
E- 51
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(This page intentionally Left blank)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
SuM-MAR_y SciiEDULE OF PRIOR YEAR
FrNDIN~ AND Q.JESl'IONED Q:srs
. ;
Summary Schedule of Prior Year Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FINDING CONTROL NUMBER
AUDITEE RESPONSE/STATUS
COMMENTS
I PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
Department ofAdministrative Services
FS-401-99-01 Further Action Not Warranted
FS-401-00-01 Unresolved
See Comments - Page F-11
FS-401-00-02 Partially Resolved
See Comments - Page F-11
Department ofEducation
FS-414-99-04 Further Action Not Warranted
FS-414-00-04 See Office ofSchool Readiness
FS-414-00-06 Partially Resolved
See Comments - Page F-12
Office ofSchool Readiness
FS-414-00-04 Partially Resolved
See Comments - Page F-15
FS-414-00-06 Previously Reported Corrective Action Implemented
See Comments - Page F-15
*Department ofCommunity Health
FS-419-98-01 Further Action Not Warranted
FS-419-00-01 Previously Reported Corrective Action Implemented
FS-419-00-02 Previously Reported Corrective Action Implemented
Department ofHuman Resources
FS-427-99-01 Further Action Not Warranted
FS-427-00-01 Unresolved
See Comments - Page F-16
Department ofCommunity Affairs
FS-428-99-02 Previously Reported Corrective Action Implemented
FS-428-00-02 Previously Reported Corrective Action Implemented
Department ofNatural Resources
FS-462-99-02 Further Action Not Warranted
FS-462-00-01 Partially Resolved
See Comments - Page F-19
Department ofPublic Safety
FS-466-00-01 Previously Reported Corrective Action Implemented
Department ofCorrections
FS-467-99-01 Further Action Not Warranted
FS-467-00-01 Partially Resolved
See Comments - Page F-20
Board ofRegents ofthe University System ofGeorgia
FS-472-00-03 Previously Reported Corrective Action Implemented
FS-472-00-04 Previously Reported Corrective Action Implemented
Department ofRevenue
FS-474-99-01 Further Action Not Warranted
FS-474-99-02 Further Action Not Warranted
FS-474-99-03 Further Action Not Warranted
FS-474-00-01 Partially Resolved
See Comments - Page F-20
FS-474-00-02 Unresolved
See Comments - Page F-21
FS-474-00-03 Partially Resolved
See Comments - Page F-21
Georgia Student Finance Commission
FS-476-99-01 Further Action Not Warranted
FS-476-00-02 Previously Reported Corrective Action Implemented
Secretary ofState
FS-478-00-01 Previously Reported Corrective Action Implemented
FS-478-00-02 Previously Reported Corrective Action Implemented
F-5
0
0
0
Summary Schedule of Prior Year Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FINDING CONTROL NUMBER
AUDITEE RESPONSE/STATUS
0
0
COMMENTS
0
Department ofTransportation
0
FS-484-99-02 Further Action Not Warranted
0
FS-484-00-02 Partially Resolved Georgia Institute ofTechnology FS-503-99-01 Further Action Not Warranted
See Comments - Page F-22
0
0
FS-503-00-01 Previously Reported Corrective Action Implemented
0
Clayton College and State University FS-528-99-02 Further Action Not Warranted
0
FS-528-00-01 Unresolved
See Comments - Page F-23
0
Georgia Southern University
539-96-01
Partially Resolved
FS-539-98-02 Further Action Not Warranted
0
See .comments - Page F-29
0
FS-539-00-01 Partially Resolved
Kennesaw State University
543-96-01
Partially Resolved
Southern Polytechnic State University
See Comments - Page F-29
0
See Comments - Page F-29
0
0
FS-550-99-02 Previously Reported Corrective Action Implemented
0
FS-550-00-02 Previously Reported Corrective Action Implemented
Atlanta Metropolitan College
0
561-96-01
Unresolved
See Comments - Page F-31
0
561-96-02 Unresolved FS-561-00-03 Previously Reported Corrective Action Implemented
See Comments - Page F-31
0
Floyd College
0
FS-573-97-02 Partially Resolved
See Comments - Page F-32
0
FS-573-97-04 Previously Reported Corrective Action Implemented
Georgia Military College
0
FS-590-99-01 Further Action Not Warranted FS-590-00-02 Partially Resolved West Georgia Technical College FS-819-99-03 Further Action Not Warranted
0
See Comments - Page F-32
0
0
FS-819-00-02 Partially Resolved Atlanta Technical College FS-823-00-01 Partially Resolved
See Comments - Page F-32
0
See Comments - Page F-33
0
Augusta Technical College
0
FS-824-97-02 Partially Resolved West Central Technical College
See Comments - Page F-33
0
FS-826-00-01 Previously Reported Corrective Action Implemented
0
DeKalb Technical College FS-830-98-02 Further Action Not Warranted FS-830-00-01 Partially Resolved
0
See Comments - Page F-34
0
Appalachian Technical College
0
FS-840-98-03 Previously Reported Corrective Action Implemented FS-840-00-01 Unresolved
See Comments - Page F-34
0
Northwest Georgia Regional Educational Service Agency
0
FS-8504-99-01 Further Action Not Warranted FS-8504-00-01 Unresolved
0
See Comments - Page F-35
0
0
F-6
0
.,
Summary Schedule of Prior Year Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
FINDING CONTROL
NUMBER
AUDITEE RESPONSE/STATUS
COMMENTS
North Georgia Regional Educational Service Agency FS-8524-99-01 Further Action Not Warranted FS-8524-00-03 Unresolved Pioneer Regional Educational Service Agency FS-8544-99-01 Previously Reported Corrective Action Implemented FS-8544-00-01 Previously Reported Corrective Action Implemented Metropolitan Regional Educational Service Agency FS-8564-99-01 Further Action Not Warranted FS-8564-00-01 Unresolved Northeast Georgia Regional Educational Service Agency FS-8584-99-01 Previously Reported Corrective Action Implemented FS~8584-00-01 Previously Reported Corrective Action Implemented West Georgia Regional Educational Service Agency FS-8604-99-01 Further Action Not Warranted FS-8604-00-01 Unresolved Oconee Regional Educational Service Agency FS-8664-99-01 Further Action Not Warranted FS-8664~00-01 Unresolved Chattahoochee-Flint Regional Educational Service Agency FS-8724-99-01 Further Action Not Warranted FS-8724-00--01 Unresolved Heart ofGeorgia Regional Educational Service Agency FS-8764-99-01 Further Action Not Warranted FS-8764-00-01 Unresolved First District Regional Educational Service Agency FS-8804-99-01 Further Action Not Warranted FS-8804-00-01 Unresolved
F-7
See Comments - Page F-36
See Comments - Page F-36
See Comments - Page F-36 See Comments - Page F-37 See Comments- Page F-37 See Comments - Page F-37 See Comments - Page F-37
0
0
0
Summary Schedule of Prior Year Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
0
FINDING CONTROL NUMBER
AUDITEE RESPONSE/STATUS
0
COMMENTS
0
0
PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS. Department ofEducation
0
FA-414-99-01 Further Action Not Warranted
0
FA-414-99-03 Further Action Not Warranted FA-414-00-01 Partially Resolved FA-414-00-01 See Office ofSchool Readiness
0
See Comments - Page F-12
0
FA-414-00-02 Previously Reported Corrective Action Implemented
See Comments - Page F-14
0
FA-414-00-03 Previously Reported Corrective Action Implemented FA-414-00-04 Partially Resolved
See Comments - Page F-14 See Comments - Page F-15
0
FA-414-00-04 See Office ofSchool Readiness
0
Office ofSchool Readiness
0
FA-414-00-01 Previously Reported Corrective Action Implemented
See Comments -. Page F-15
FA-414-00-04 Unresolved
See Comments - Page F-15
0
Department ofTechnical and Adult Education FA-415-99-02 Partially Resolved *Department ofCommunity Health
0
See Comments -Page F-16
0
FA-419-98-01 Previously Reported Corrective Action Implemented
0
FA-419-00-01 Previously Reported Corrective Action Implemented
0
FA-419-00-02 Partially Resolved
See Comments - Page F-16
FA-419-00-03 Previously Reported Corrective Action Implemented
0
Department ofHuman Resources
0
FA-427-99-01 Further Action Not Warranted FA-427-99-02 Previously Reported Corrective Action Implemented
See Comments - Page F-16
0
FA-427-99-03 Further Action Not Warranted
See Comments - Page F-17
0
FA-427-99-04 Further Action Not Warranted FA-427-00-01 Partially Resolved FA-427-00-02 Partially Resolved
See Comments - Page F-17
0
See Comments - Page F-17
0
FA-427-00-03 Partially Resolved FA-427-00-04 Unresolved *Georgia Institute ofTechnology
See Comments - Page F-18
0
See Comments - Page F-18
0
FA-503-00-02 Previously Reported Corrective Action Implemented
0
FA-503-00-03 Previously Reported Corrective Action Implemented
0
FA-503-00-04 Previously Reported Corrective Action Implemented
FA-503-00-05 Previously Reported Corrective Action Implemented
0
FA-503-00-06 Previously Reported Corrective Action Implemented
0
*University ofGeorgia FA-518-00-0 I Previously Reported Corrective Action Implemented
0
FA-518-00-02 Previously Reported Corrective Action Implemented
0
FA-518-00-03 Previously Reported Corrective Action Implemented
0
Albany State University
FA-521-98-01 Previously Reported Corrective Action Implemented
0
FA-521-98-02 Previously Reported Corrective Action Implemented
0
FA-521-99-01 Previously Reported Corrective Action Implemented FA-521-99-03 Previously Reported Corrective Action Implemented
0
FA-521-00-01 Previously Reported Corrective Action Implemented
0
FA-521-00-02 Previously Reported Corrective Action Implemented FA-521-00-03 Partially Resolved
See Comments - Page F-23
0
0
F-8
0
Summary Schedule of Prior Year Andlngs and Questioned Costs For the Ascal Year Ended June 30, 2001
FINDING CONTROL NUMBER
AUDITEE RESPONSE/STATUS
Augusta State University
FA-527-99-01 Partially Resolved
Columbus State University
FA-530-00-01 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-533-98-02 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
FA-533-99-01 Unresolved
FA-533-99-02 Unresolved
FA-533-99-03 Unresolved
FA-533-99-04 Unresolved
FA-533-99-05 Unresolved
FA-533-99-06 Unresolved
FA-533-99-07 Unresolved
FA-533-99-08 Partially Resolved
FA-533-00-01 Partially Resolved
FA-533-00-02 Unresolved
FA-533-00-03 Partially Resolved
FA-533-00-04 Partially Resolved
FA-533-00-05 Partially Resolved
Savannah State University
FA-548-98-02 Further Action Not Warranted
FA-548-98-04 Further Action Not Warranted
FA-548-98-05 Further Action Not Warranted
FA-548-98-07 Further Action Not Warranted
FA-548-99-01 Further Action Not Warranted
FA-548-99-02 Further Action Not Warranted
FA-548-99-03 Previously Reported Corrective Action Implemented
FA-548-99-05 Further Action Not Warranted
FA-548-99-07 Unresolved
FA-548-99-10 Previously Reported Corrective Action Implemented .
FA-548-00-01 Partially Resolved
FA-548-00-02 Previously Reported Corrective Action Implemented
FA-548-00-03 Partially Resolved
FA-548-00-04 Partially Resolved
FA-548-00-05 Further Action Not Warranted
F-9
COMMENTS
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-25 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-26 See Comments - Page F-26 See Comments - Page F-26 See Comments - Page F-26 See Comments - Page F-27 See Comments - Page F-27 See Comments - Page F-27 See Comments - Page F-27 See Comments - Page F-27 See Comments - Page F-27 See Comments - Page F-28 See Comments - Page F-28 See Comments - Page F-28 See Comments - Page F-28
See Comments - Page F-30
See Comments - Page F-30
See Comments - Page F-30 See Comments - Page F-30
0
0
0
Summary Schedule of Prior Year Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
FINDING CONTROL NUMBER
AUDITEE RESPONSE/STATUS
0
0
COMMENTS
0
FA-548-00-06 Partially Resolved
See Comments - Page F-30
0
FA-548-00-07 Previously Reported Corrective Action Implemented
0
Southern Polytechnic State University
0
FA-550-99-0 I Previously Reported Corrective Action Implemented
FA-550-99-02 Previously Reported Corrective Action Implemented
0
FA-550-00-01 Previously Reported Corrective Action Implemented
0
FA-550-00-02 Previously Reported Corrective Action Implemented FA-550-00-03 Previously Reported Corrective Action Implemented
0
FA-550-00-04 Partially Resolved
Atlanta Metropolitan College
561-96-02
Unresolved
561-96-04
Partially Resolved
See Comments - Page F-31
0
0
See Comments - Page F-31
See Comments - Page F-32
0
561-96-05 Previously Reported Corrective Action Implemented
0
Georgia Perimeter College FA-571-00-01 Previously Reported Corrective Action Implemented
0
Augusta Technical College
0
FA-824-98-01 Partially Resolved FA-824-99-01 Partially Resolved Chattahoochee Technical College
See Comments - Page F-33
0
See Finding FA-824-98-01
0
827-95-03
Partially Resolved
827-96-03
Partially Resolved
FA-827-97-03 Partially Resolved
DeKalb Technical College
See Comments - Page F-33
0
See Comments - Page F-34 See Comments - Page F-34
0
0
FA-830-98-01 Partially Resolved Savannah Technical College FA-841-98-01 Partially Resolved
See Comments - Page F-34
0
See Comments - Page F-35
0
FA-841-98-02 Partially Resolved *Georgia Higher Education Assistance Corporation FA-918-00-0I Partially Resolved North Georgia Regional Educational Service Agency
See Comments - Page F-35
0
See Comments - Page F-35
0
0
FA-8524-00-01 Previously Reported Corrective Action Implemented FA-8524-00-02 Further Action Not Warranted
0
FA-8524-00-03 Unresolved
See Comments - Page F-36
0
FA-8524-00-04 Previously Reported Corrective Action Implemented
0
*Audit Follow-up was performed by Other Auditors.
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0
0
0
0
0
0
0
0
0
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Audltee's Response Summary Schedule of Prior Year Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
AUDITEE'S COMMENTS
DEPARTMENT OF ADMINISTRATIVE SERVICES
Finding Control Number: FS-401-00-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
The following measures have been initiated:
(1) Property coordinators have been identified and trained within each entity/location.
(2) Full physical inventory was taken in the first quarter of FY 2000.
(3) The monthly reconciliations of the Asset Management System are prepared monthly.
(4) Additions and deletions to inventory have been made based on physical count.
(5) Procurement identifies capital assets at the initiation of the procurement process.
(6) Updated department policies and procedures draft was issued in FY 2001.
(7) Updated information into the new Asset Management System for GTTS, Property and Radio Inventories. Currently updating the MIS inventory system to the new Asset Management System with a projected completion date of FY 2002.
Georgia Technology Authority
Finding Control Number: FS-401-00-02 ACCOUNTING CONTROLS (OVERALL) Inadequate General Controls
Reconciliations - Lack of Understanding of the System/Lack of Reports & Queries to perform procedures.
This finding is fully corrected. Queries and reports similar to the legacy system reports were developed and rolled out to the end users. Specific training classes and learning labs were provided for all agencies on how to perform reconciliation's in all of the modules.
Firewalls and Security
The finding is only partially corrected. The Firewalls were put in place for access to the system and this piece is fully corrected. The Braintree software was upgraded to the latest version to only allow 5 attempts at logging into the system. Additional security enhancements are currently underway. The Secure Shell software has been purchased and is currently being rolled out to all of the developers and engineers. This software will encrypt all operator commands. Additional security enhancements are in the review process. An upgrade to the Citrix farm is the next target for security improvements. This upgrade requires additional servers and software. A cost plan is currently being put together for budget approval by GTA. The GTA Enterprise Security team is working with the Phoenix team to identify additional security gaps and enhancements for improvement. The Phoenix team has hired a System Engineer to oversee security for the Phoenix systems.
Operator Security Classes
The finding is fully corrected. The Operator Classes were updated with more detailed information and are available on the Phoenix Web site. There is a special security report that can be run to show all of the panels that are included with each
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Summary Schedule of Prior Year Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
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AUDITEE'S COMMENTS
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Operator Class. The Braintree software was upgraded to the latest version to only allow 5 attempts at logging into the
0
system.
0
Response Time Performance Issues
0
0
The finding is fully corrected. The online and batch performance of the Financials and HRMS systems is no longer an issue. Continuous monitoring and tuning occurs on a daily basis. The DBAs and PeopleSoft tuner have been converted
0
from consultant status to state employees. The nightly batch cycle runs in an average of 5 hours per night as compared to
0
12 hours initially.
0
Recommendation Section of Finding
0
0
The GTA is currently leading a Statewide Financial Study to provide high-level findings to the Steering Committee
(appointed by the Governor). The findings will be used for the Steering Committee to report their recommendations to the
0
Governor for Integrated Financial Management on a statewide basis. This will cover some of the issues of Georgia not
0
having a comptroller, however, GTA still would not have the authority to require the use of the system or the centralize
business processes. A GAAP ledger was included in the initial implementation of the Phoenix system. Changes have been
0
implemented to the system to ensure compliance with GASB Statement 34.
0
DEPARTMENT OF EDUCATION
0
0
Finding Control Number: Fs-414-00-06 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in Operation and Property Management System
0
See our corrective action/responses to finding number FA-414-00-01 in the Prior Year Federal Awards Findings and
0
Questioned Costs.
0
Finding Control Number: FA-414-00-01
0
EQUIPMENT AND REAL PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
1. Reconciliation of equipment for this department is conducted by the following:
0
All purchase orders (PO) are screened for proper accountability in PeopleSoft's Asset Management for all equipment
0
purchases for the Department. All incorrect expense account numbers are emailed to the initiator of the PO for
correction: the Agency Procurement Officer is carbon copied (cc:) on the email. A copy of the PO's lines and
0
distribution are printed by Print Screen on the computer. If equipment is under $1,000.00 and is not accounted for on
0
Asset Management, a green Property of Department of Education decal is mailed to the property manager of the unit
that initiated the PO. If the equipment is $1,000.00 or greater, or ifthe under $1,000.00 but is deemed to be accounted
0
for, the copies will be kept until the signed PO is received in this office for generating the DE Form 0513, Receipt of
0
Equipment form. This equipment will have the DOE barcode decal affixed.
0
2. On many occasions, it has been discovered that Asset Management fails to include all inventory additions to the DOE
0
Property System. This has been reported to the DOAS PeopleSoft Team.
0
3. The State Auditor tested this area and no exceptions were noted, however, the audit finding indicates exceptions. The
0
following is what the auditor and I tested and found to be in order: No. 1: PO 41400-065-0000020114: Receiving report's invoice indicated a cost of $4,329.00 instead of the initial
0
$4,436.00 amount on the PO.
0
No. 2: PO 41400-652-0000022246: This equipment was never received by the Agency Property Officer, therefore, never decaled nor entered into the DOE Property System. This equipment was received in the DOE mailroom but was
0
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Auditee's Response Summary Schedule of Prior Year Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
AUDITEE'S COMMENTS
either misplaced or stolen at that point. This equipment had a cost of$3,045.00 that was paid by Accounting Services, since there was a signature for receiving this equipment by the DOE Mailroom. No. 3: PO 41400-652-0000021202: Line item no. 2-1 was emailed to the initiator that the expense account number would have to be changed to 616001, $1,234.00. No. 4: PO 41400-065-0000020115: Receiving report's invoice signed by DOE personnel indicated a cost of $1,592.00 instead of the initial $1,663.00 amount on the PO. No. 5: PO 41400-652-0000020600: All the items had been entered; however, PeopleSoft's Asset Management only recorded six (6) of the seventeen (17) entered. The remaining eleven (11) were re-added during the DOA Auditors visit this year at an adjustment of$16,995.00 to DOE Property System. No. 6: PO 41400-652-0000021432: Receiving report's invoice indicated a cost of $9,588.00 instead of the initial $9,589.00 amount on the PO. No. 7: PO 41400-065-0000020357: Equipment received on 09/27/1999 and entered on the DOE Property System in the amount of$1,663 .00: Error in PeopleSoft's Asset Management. No. 8: PO 41400-652-0000021916: Receiving report's invoice signed indicated a cost of $2,058.00 instead of the initial $2,296.00 amount on the PO. No. 9: PO 41400-065-0000022387: Purchase Order Correction dated 04/26/2000 indicated a unit cost change of $1,922.00 instead of the initial $2,042.00 amount on the PO. No. 10: PO 41400-053-0000022995: This PO was added to the DOE Property System on 07/13/2000 with a total cost of $9,457.98: Error in PeopleSoft's Asset Management.
With the above noted, this reduces the $38,450.98 to $0.00, as what was found during the original test by the State Auditor.
4. The State Auditor, tested this area and no exceptions were noted, however, the audit fmding indicates exceptions. The following is what the State Auditor and I tested and found in order: No.1: Decal 00-0009463: $1,050.00, was deleted by DOAS Transaction Number BR595-99. This record was returned from the Department of Archives and History, Records Center, and shown to the State Auditor as supporting documentation to delete this item. No. 2: Decal 00-0041257: $1,115.00, had been deleted because this was a duplicated entry into the DOE Property System as indicated by Decal 00-0041086, $1,115.00. This was, also, shown to the State Auditor by the supporting Property Add Form for the Reading Challenge Program, Eastside Elementary, location 024634, to delete this item.
With the above noted, this reduces the $2,165.00 to $0.00, as what was found during the original test by the State Auditor.
5. This information was never brought to my attention for FY2000. These installment purchases were entered into the DOE Property System prior to my arrival to this agency. In the past, I was reluctant to change the cost for the above but on March 2, 2001, the following decals were changed:
No.1: Decal 00-0021481, amount changed from$10,701.36 to $9,700.00. No. 2: Decal 00-0013149, amount changed from$9,819.72 to $9,700.00. No. 3: Decal 00-0020763, amount changed from $30,300.00 to $32,300.00. No. 4: Decal 00-0021451, amount changed from $24,775.00 to $25,575.00.
With the above change, it reduces the $1,678.92 to $0.00
Physical Inspection: 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 findings of equipment.
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Summary Schedule of Prior Year Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
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AUDITEE'S COMMENTS
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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.
0
0
The six (6) items of equipment found were for equipment under the $1,000.00 threshold for capturing on the DOE
Property System.
0
0
Finding Control Number: FA-414-00-02
SUBRECIPIENT MONITORING
0
Failure to Establish Administration Agreement/Contracts
0
1. The procedures used by the Department of Education (DOE) and North Georgia RESA during FY2000 were
0
continuatipns of historically approved, audited, and accepted practices of previous years. Activities were monitored
0
and supervised by DOE personnel in such a manner as to ensure compliance with the provisions of Perkins regulations regarding appropriate use of funds. Subsequent to FY2000, the practices cited in the above referenced fmding were
0
discontinued between DOE and RESA. The RESA now has no fiscal agency responsibilities for DOE. Ifin the future
0
such a relationship should be again established, formal agreements will be developed and implemented.
0
2. The activities of the two consultants were continuations of services that were contracted in FY1999. During FY2000
0
the consultants provided services on an "as needed" basis as requested and approved by the Department of Education. Performance of services was documented by invoices provided by the consultants and verified by DOE personnel
0
before approval for payment was given by DOE.
0
The circumstances of the services provided for the Related Vocational Instructional program were similar to those of
0
the consultants referenced above. Services were rendered for the benefit of special needs participants in DOE
0
sponsored activities, and performance was evaluated on a continuous basis by a DOE program manager before approval for payments were granted. Subsequent to FY2000 the practice of issuing payments to contractors through
0
the RESA was discontinued. Procedures have been implemented to assure that fully executed current contracts are in
0
place that clearly defme the terms of agreements between DOE and contractors.
0
Finding Control Number: FA-414-00-03
0
SUBRECIPIENT MONITORING Approval for Improper Expenditure
0
0
1. The utilization of the computer equipment reference in this citation is considered by DOE personnel to be directly related to the statewide administration of provisions of the Perkins Act. Purchase of the equipment was necessary in
0
order for services requested by DOE to be provided. These services included the operation and maintenance of a 24
0
hour/day, 7 day/week server on which internet web sites could be hosted. Sites from which all vocational curriculum
0
materials would be available for download on demand, on whicti vocational staff development opportunities would be
published including the posting of course descriptions, dates of course offerings, and the capability of online
0
registration for courses, on which Career/Technology Student Organization information would be published were
0
required. The expenditure of funds from the referenced source for the purchase of this equipment is thought to be
proper.
0
0
2. The transaction cited has been reviewed by DOE personnel and has been determined to be appropriate. Documentation originally submitted was general in nature. At DOE's request, the vendor supplied a breakdown of
0
specific information as to services performed, supplies, dates, and associated costs. An evaluation of the information
0
is revealed that the value of the products provided by the contractor were consistent with the payment that was issued to the vendor.
0
0
0
0
F-14
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Auditee's Response Summary Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
AUDITEE'S COMMENTS
Finding Control Number: FA-414-00-04 SUBRECIPIENT MONITORING Subrecipient Audit Reports Not Received Within the Required Time Period
We concur with this finding. The Department of Education is responsible for tracking and reviewing the audits of local
units of administration (LUAs). However, the Department of Audits is required by state law to audit the LUAs, because
LUAs receive the majority of their funding from the state. In addition to the LUA audits, the Department of Audits has the
responsibility to audit all state agencies, commissions, etc. The LUAs are audited after the state agencies, commissions,
etc. Because the LUAs are audited last and the large number of LUAs to be audited, the Department of Audits cannot
complete the audits in the time period required by OMB Circular A-133. The U.S. Department of Education is aware of
the problem, and realizes there is not currently a viable solution to the finding. The LUA audits are normally completed
within a 15-18 month time period. The Department has a six-month resolution period to resolve findings in the LUA
audits in the LUA audits after being received from the Department of Audits.
'
OQice ofSchool Readiness
Finding Control Number: FS-414-00-04 GENERAL LEDGER Inadequate Accounting Procedures (Overall)
Additional skilled employees were added to the OSR financial staff in FY 2001. Financial accounting procedures have been documented. General Ledger reconciliation's are current. Bank signature cards are updated. Bank statements are reconciled monthly. All reconciling items for FY 2001 were cleared. Subsidiary ledgers and systems are reconciled to the General Ledger. Pre-K payments are now paid through the state centralized accounts payable system OSR has substantially corrected General Ledger balances. OSR is currently working to process Federal Nutrition Program payments through the centralized state accounting system and to enhance the operating capability of the Nutrition Program claims processing subsystem. Development, improvement, and refinement of financial accounting procedures will continue.
Finding Control Number: FS-414-00-06 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
See our corrective action/responses to finding number FA-414-00-01 in the Prior Year Federal Awards Findings and Questioned Costs.
Finding Control Number: FA-414-00-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Additional staff now maintain fixed assets inventories. Fixed asset reconciliations are completed monthly. A physical inventory was conducted. Cycle verifications of physical inventories are performed throughout the year.
Finding Control Number: FA-414-00-04 SUBRECIPIENT MONITORING Subrecipient Audit Reports Not Received Within the Required Time Period
Some audits from the State Department of Audits and other OSR subrecipients were received in FY 2001 beyond the nine month due date. For FY 2002, OSR will be investigating allowable sanctions to impose on program participants for late audit report submissions. The State Department of Audits is planning for FY 2002 to change their approach that will include a division of staff to perform audits for County School Boards. This should reduce the required audit time to allow audits to be submitted more timely.
F-15
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Audltee's Response
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Summary Schedule of Prior Year Findings and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
AUDITEE'S COMMENTS
0
DEPARTMENT OF TECHNICAL AND ADULT EDUCATION
0 0
Finding Control Number: FA-415-99-02
0
SUBRECIPIENT MONITORING Inadequate Internal Controls and Compliance Deficiencies
0
0
The Department of Technical and Adult Education, Administrative Central Office (Oversight Unit) was cited for improper resolution of expenditure findings for Vocational Education funds reported in the engagements of three individual
0
Technical Colleges. In a letter dated March 17, 2000, to the U. S. Department of Education (USDOE), the Department of
0
Technical and Adult Education (DTAE) proposed resolutions for the original 1998 findings for the three Technical Colleges. However, DTAE failed to contact USDOE regarding the resolution of the Fiscal Year 1999 Subrecipient
0
Monit<?ring finding dealing with DTAE exceeding its authority in the resolution of findings. DTAE will contact USDOE
0
regarding the resolution of its Subrecipient Monitoring finding.
0
DEPARTMENT OF COMMUNITY HEALTH
0
0
Finding Control Number: FA-419-00-02
ALLOWABLE COSTS/COST PRINCIPLES
0
Inadequate Recoupment Procedures
0
Medicaid Cluster Program Medical Assistance Program (CFDA 93.778)
0
0
These funds were recovered by the Department on January 28, 2002.
0
DEPARTMENT OF HUMAN RESOURCES
0
Finding Control Number: FS-427-00-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
See our corrective action/responses to finding number FA-427-00-04 in the Prior Year Federal Awards Findings and
0
Questioned Costs.
0
Finding Control Number: FA-427-99-01
0
ELIGIBILITY
0
Deficiencies in File Maintenance
Temporary Assistance for Needy Families (CFDA 93.558)
0
Questioned Cost: $11,525.00
0
The Federal agency never requested this payment, so no payment was made. Discussions were held between the OHR
0
Funds Management reporting staff and the U. S. Department of Health and Human Services (HHS). HHS was to bill the
0
Department if repayment was to be required. No billing was received from HHS.
0
0
0
0
0
c
c
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Audltee's Response Summary Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
AUDITEE'S COMMENTS
Finding Control Number: FA-427-99-03 ELIGIBILITY Deficiencies in File Maintenance Food Stamps (CFDA 10.551) State Administrative Matching Grants for Food Stamp Program (CFDA 10.561) Questioned Cost: $12,803.00
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'ifrepayment was to be required. No billing was received from HHS.
Finding Control Number: FA-427-00-01 ELIGIBILITY Deficiencies in File Maintenance Temporary Assistance for Needy Families (CFDA 93.558) Questioned Cost: $12,573.00
DFCS state office instituted several initiatives to address compliance with policy in the TANF Program. They are:
TANF state official policy employees 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 monitor the county's ability to locate case records.
Advanced record-tracking systems have been installed in several urban counties such as Dougherty, Muscogee, Bibb, and Clayton. They have also been installed in smaller counties such as Appling, Troup, Clarke, and Hall. It is our intent to expand the use of automated systems into each new DFCS facility approved for construction. Chatham County has been given tentative approval for a new building in SFY 2002. Plans are to identify available funding at the end of each fiscal year for the next five years to install such filing systems in Gwinnett, Lowndes, Barrow, Paulding, and Sumter.
In addition, a team of program employees continues to meet with regional front line supervisors quarterly to provide them with current policy updates and to emphasize the need for improving and maintaining case record accountability. Program einployees will meet with supervisors, caseworkers, and support staff to identify, develop, and design tools to address deficiencies in file maintenance. They will provide information and efficient record keeping. In addition, state office program employees periodically randomly select case records to validate that a case record management system is currently in place and effective. Specific emphasis on improved case record accountability will continue to be covered at bi-annual DFCS Management Conferences and at monthly Field Director meetings (Field Directors supervise County Directors). Additionally, this topic has been included in New Worker Training for Eligibility Workers and in County Director Orientation and Administrative Training.
Finding Control Number: FA-427-00-02 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
(CFDA93.596) Questioned Cost: $11,768.00
State employees are now covering all field areas of the state to conduct site reviews on a regular basis and resolve any questions about policy or implementation of policies. Two additional Unit Chief positions have been filled for additional
F-17
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Audltee's Response
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Summary Schedule of Prior Year Andlngs and Questioned Costs
0
For the Fiscal Year Ended June 30, 2001
0
0
AUDITEE'S COMMENTS
0
direction in identifying local and statewide training needs, and to provide more review of program implementation
0
statewide.
0
0
Extensive and repeated training has been provided at the county level (workers and supervisors) and the state program level
about the use of the new Maximus payment system to conduct case reviews. Evaluation and Reporting reviewers have also
0
received training to conduct reviews using the Maximus payment system. These are very important because of the amount
0
of turnover of local child care staff.
0
Additional supervisor training is being prepared for state program employees to use statewide, to better prepare local
0
supervisors to conduct reviews in the child care program. Ongoing quarterly training is now scheduled in various areas of
the state for new local child care staff or supervisors, to enable them to receive prompt, in depth training on program
0
policies and implementation, technical proficiency regarding the Maxirnus payment system, claims and fuiud prevention,
0
and the use of management reports to detect problem areas.
0
Finding Control Number: FA-427-00-03
0
ELIGIBILITY Deficiencies in File Maintenance
0
Food Stamps (CFDA 10.551)
0
State Administrative Matching Grants for Food Stamp Program (CFDA 10.561) Questioned Cost: $12,946.00
0
0
DFCS state office instituted several initiatives to address compliance with policy in the Food Stamp Program. They are:
0
Food Stamp state office policy employees have been assigned to each field coordination area. Their role is to
0
visit counties, monitor program compliance, read records behind the supervisor for accuracy of case reading, and monitor the county's ability to locate case records.
0
0
Advanced record-tracking systems have been installed in several urban counties such as Dougherty, Muscogee, Bibb, and Clayton. They have also been installed in smaller counties such as Appling, Troup,
0
Clarke, and Hall. It is our intent to expand the use of automated systems into each new DFCS facility
0
approved for construction. Chatham County has been given tentative approval for a new building in SFY 2002. Plans are to identify available funding at the end of each fiscal year for the next five years to install
0
such filing systems in Gwinnett, Lowndes, Barrow, Paulding, and Sumter.
0
In addition, a team of program employees continues to meet with regional front line supervisors quarterly to provide them
0
with current policy updates and to emphasize the need for improving and maintaining case record accountability. Program
0
employees will meet with supervisors, caseworkers, and support staff to identify, develop, and design tools to address deficiencies in file maintenance. They will provide information and efficient record keeping. In addition, state office
0
program employees periodically randomly select case records to validate that a case record management system is
0
currently in place and effective. Specific emphasis on improved case record accountability will continue to be covered at
0
bi-annual DFCS Management Conferences and at monthly Field Director meetings (Field Directors supervise County
Directors). Additionally, this topic has been included in New Worker Training for Eligibility Workers and in County
0
Director Orientation and Administrative Training.
0
Finding Control Number: FA-427-00-04
0
EQUIPMENT AND REAL PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
The status of each element in the "Corrective Action Plan" is detailed below.
0
Updating Department Policies and Procedures
0
A. After property policy and procedure review, the content has been found to be relevant, useful and proper.
0
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Auditees Response Summary Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
AUDITEE'S COMMENTS
PeopleSoft input procedures provided by DOAS Property Unit have been found to meet current needs with this new computer system. Future changes will be based on GTA's CCOPS.
B. A future update to property policies and procedures will be in the new format established by DHR's Office of Facilities and Support Services (OFSS) rather than in a change of content.
C. After property policy and procedure review, it was determined that needed efforts are to get policies and procedures followed by non-subordinate employees in divisions/offices and by agents of DHR throughout the state.
D. The Department of Administrative Services Surplus Property Unit recently changed procedures in obtaining Federal surplus property. This involves all DHR entities and agents paying for the surplus property in advance of taking possession of said surplus Federal property. This change in policy and procedures will be updated in the near future. Immediately the change is being provided to all division/office coordinators to send to their respective field property personnel and related statewide agents .
Internal Control Procedures A. OFSS property unit has coordinated with DHR's Office of Audits to obtain and monitor property audit
results as an internal control procedure. Audit results have shown an improvement in the DFCS office property inputs.
B. OFSS property unit has taken the position of taking Annual Inventories of property rather than the one audit every two years as required by law.
C. OFSS property unit is now collecting return annual inventory results from over 1,300 locations to correct inventory discrepancies and evaluate said discrepancies. This process is on-going.
Meeting with DHR division/office coordinators A. Quarterly meetings have been held with division/office property coordinators on the schedule previously
outlined to review property procedures and relev~t property issues. These meetings are on-going.
B. These meetings have been highly useful with the property unit learning the challenges of statewide property personnel that are working with PeopleSoft software. This has also provided a forum for the agency to inform coordinators of the agency concern about real property inventory accuracy and accountability .
DEPARTMENT OF NATURAL RESOURCES
Finding Control Number: FS-462-00-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this finding. Steps are being 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 System Manual". To further ensure the steps are being followed the duties are being removed from the person who has been responsible for inventory management over the past several years and are being reassigned to others. The Department is in the process of conducting complete inventories at all office sites throughout the state and making appropriate entries into the asset management system from these inventories. This process (the complete inventories) was started in June 2000. We anticipate it will take twelve (12) to eighteen (18) months to complete all inventories and get the property management system completely accurate and up to date .
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Auditee's Response
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Summary Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
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AUDITEE'S COMMENTS
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DEPARTMENT OF CORRECTIONS
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Finding Control Number: FS-467-00-01
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GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
Inadequacies in the Operation of Property Management System
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Part 1 - A more in depth reconciliation process was completed at the end of fiscal year 2001. However, this process still
did not meet reconciliation requirements for PeopleSoft. The Property Control Section and the Accounting Section is
0
working together to produce and implement a more efficient reconciliation process.
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Part 2 - Aii agreement was reached between the Property Control Section and the State Audit team on what assets can be
0
considered permanent fixed capital assets, and which do not have to be on inventory.
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Part 3 - A directive was given to OIT to clean up and better maintain their Scribe system and try to balance the Scribe
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system to PeopleSoft. Directives were also given to the OIT Department to provide paperwork, such as transfers and
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purchasing information, to the Property Control section in a more efficient and timely manner.
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DEPARTMENT OF REVENUE
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Finding Control Number: FS-474-00-01
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CASH AND CASH EQUIVALENTS
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Inadequate Accounting Procedures
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We concur with this finding. The Department has recently hired a Controller. Additionally, accounting resources are
0
being added to address the deficiencies under findings number FS-474-00-01 and FS-474-00-02. The additional resources
0
along with a general reorganization of the accounting functions are planned to accommodate the implementation of a new
dual-entry accounting system effective July 1, 2001.
0
0
The new revenue system has been designed to function through the current statewide PeopleSoft Financial System The reorganization along with the Revenue Collection and Disbursement System will address the inadequacies noted in your
0
fmdings. The following is a listing of the planned and completed corrective actions for the six deficiencies cited in finding
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FS-474-00-01 :
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In response to deficiency 1: Individuals were promoted and their job responsibilities were reassigned to
0
provide adequate separation of duties. In response to deficiency 2: Two new Financial Analysts positions were created and two individuals
0
were offered these positions. Their main focus will be the reconciliation of all cash and general ledger
0
accounts. In response to deficiency 3: An Accounting Manager position will be created to manage all staff
0
accountants and financial analysts. Bank along with all other reconciliations will be reviewed and
0
approved by the Manager and/or the Director. In response to deficiency 4: Bank accounts are currently reconciled monthly. The Director is currently
0
reviewing and approving them when completed. (See response above)
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In response to deficiency 5: All reconciling items were reviewed and researched and correcting entries posted.
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In response to deficiency 6: Accounting policies will be reviewed and changes will be made, if
0
necessary, as the new system and individuals are put in place.
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Auditee's Response Summary Schedule of Prior Year Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
AUDITEE'S COMMENTS
Finding Control Number: FS-474-00-02 REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Deficiencies i~ the State Revenue Collections Fund (Overall)
We concur with this finding. The new PeopleSoft Revenue Accounting System is in the testing stage and scheduled to be implemented in July 200I.
In response to deficiency 1: All revenues and disbursements will be posted through the new system
beginning July 1, 2001. The new system provides dual-entry accounting for all receipts and
disbursements.
In response to deficiency 2: The new system functionality will include separate accounts to identify each
type ofrevenue reported to OTFS.
In response to deficiency 3: Policies and procedures are scheduled for implementation with the new
revenue system.
.
In response to deficiency 4: The Department recognizes and agrees that generally accepted accounting
principles are not followed in this instance, however, more research is needed in this area to adopt a
feasible, and agreeable resolution to the problem
Finding Control Number: FS-474-00-03 REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Deficiencies in the Income Tax Division Subsidiary Records
Management Response - Deficiency 1
We concur with this finding. However, the feasibility, practicality and financial responsibility of capturing withholding information for approximately 3 million(+) individual tax returns each year is questionable.
Capturing information from even 3 million W2s would be an awesome task. This number does not take into consideration the multiple W2s for married couples and withholding from more than one employer. Without mandated standardization of W2s, capturing the necessary information through optical character recognition would be nearly impossible. In many cases, it is difficult to read the original W2s. Therefore capturing a readable image of the form is even more difficult. To capture information of this magnitude by data entry is inconceivable.
The Department has several income match programs with the Internal Revenue Service that are related to compliance issues. The Department is also awaiting further development of partnership between the Social Security Administration, Internal Revenue Service and States. The basic concept of this program will be that the Social Security Administration will capture the data and provide to States for a fee. This type of program would be more financial responsible to capture the data than at the State level.
No matter how the information is captured, the State will have to make a financial commitment to provide the necessary funding for a project of this scope.
Management Response - Deficiency 2
We concur with this audit finding. However, we feel this finding was based on reviews of old systems and associated procedures that have been retired. The following are brief overviews of the system controls and procedures currently in place .
A. Amended returns filed by individual taxpayers are data entered into the mail/cash system and downloaded into the Individual audit tax system. A batch of amended returns is pulled into the in-box by
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Summary Schedule of Prior Year Findings and Questioned Costs For the Flscal Year Ended June 30, 2001
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a tax examiner. The return information in the amended system is compared to the hard copy amended
0
returns. Any adjustments made to the return or the acceptance of the amended return as filed is
0
documented by time-date stamp and user identification. In addition, changes made to the amended return as filed by the taxpayer are captured and shown within the system as a Per Taxpayer record and Per
0
Department record. Amounts paid with amended returns are downloaded from the Deposit History File
0
(DHF) and cannot be changed by tax exaniiners in the taxing divisions. Based on established system parameters, a percentage of returns are randomly routed to supervisors for quality review. Furthermore,
0
during the initial training period, all returns worked by new examiners are systematically routed for
0
quality review.
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Since the Individual audit tax system was only recently implemented fully, requirements for reports are
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still being established. Supervisors review tax examiner in-boxes, document and/or batch searches to
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identify backlogs, old and outstanding amended returns. These are monitored and addressed to tax
examiners.
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The system controls in place for computer notices and all protests submitted by taxpayers are identical to the aforementioned controls for amended returns.
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B. Withholding documents filed by taxpayers are flagged by established system parameters, systematically placed on hold and routed to the in-boxes of tax examiners. Tax examiners compare the information
0
keyed by data entry to the hard-copy document and make adjustments directly on-line to tax periods,
0
account numbers, wages, document type, etc. Withholding tax examiners cannot make changes to money amounts shown as paid with the documents. These amounts download from the Deposit History
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File (DHF) in the mail/cash system and cannot be changed in the DHF by any taxing division employee.
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The tax examiner then posts the document and where applicable, the information interfaces to the centralized taxpayer accounting system (CTA).
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The Withholding transaction maintenance history shows a record of the original document, what was changed, when changed and the user identification. A monthly report is generated of all documents in
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each tax examiners' in-boxes. The Withholding supervisor reviews the report and any backlogs, old
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and/or outstanding documents not completed are addressed to the tax examiners.
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C. Both the Individual audit tax system and the Withholding tax system provide chronological audit trail
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documentation of all adjustments made to returns and documents.
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DEPARTMENT OF TRANSPORTATION
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Finding Control Number: FS-484-00-02 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
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Inadequacies in Operation of Property Management System
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We concur with this fmding, with reservations. The Asset Management module of PeopleSoft was flawed as delivered and
0
could not produce reliable data extracts for reconciliation. However, with the diligence of Department personnel,
0
necessary corrections were implemented to insure a more accurate level of asset control. The Department has implemented a program of reviewing EDP equipment requests to insure that assets are properly identified at the time of purchase. All
0
assets interfaced from the purchasing module to the asset management module are reviewed for content, as necessary.
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Each budget unit is required to "tag" all interfaced assets within two weeks of being released from pending asset status.
0
Procedures are in place to direct personnel of each budget unit to complete the needed additional asset information. The
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minimum asset information that is required is the tag/decal number, location, organizational unit, and serial number.
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Auditee's Response Summary Schedule of Prior Year Findings and Questioned Costs For the Ascal Year Ended June 30; 2001
AUDITEE'S COMMENTS
Policy has been revised to terminate the authority to purchase assets for any budget units that have failed to comply with these new procedures.
ALBANY STATE UNIVERSITY
Finding Control Number: FA-521-00-03 SPECIAL TESTS AND PROVISIONS Deficiencies In Student Financial Aid Refund Process Student Financial Aid Cluster Program Questioned Cost: $1,188.75
The University implemented procedures to ensure that refunds are correctly calculated and applied to appropriate accounts in a tjmely 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 also implemented a process to target and identify financial aid recipients that do not complete at least 60% of the term and received all "F" grades for the term. Every effort will be made to determine the last date of attendance as certified by an instructor of record or an academically related activity. The University will contact the U.S. Department of Education regarding resolution of this fmding.
AUGUSTA STATE UNIVERSITY
Finding Control Number: FA-527-99-01 REPORTING Incorrect Student Payment Summary Report Student Financial Aid Cluster Program
Award adjustments have been made. However, a recent notification from the U.S. Department of Education indicates a potential out-of-balance situation. As such, a new student payment summary has been ordered for reconciliation purposes. Upon arrival, the potential difference will be investigated.
CLAYTON COLLEGE AND STATE UNIVERSITY
Finding Control Number: FS-528-00-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
For fiscal year 2001, a physical inventory of equipment was taken; however, when reconciled to the general ledger there was an unreconciled balance of $184,807.60. This amount was $82,888.70 less than the unreconciled balance of $267,696.30 for fiscal year 2000.
The University has contracted with American Appraisal Association, Incorporated to perform a physical equipment inventory and tag the equipment so it can be scanned in the future. This work will take place in fiscal year 2002. Once the equipment inventory is completed, adjustments will be made to the equipment assets in the general ledger.
The University will take steps to ensure that the subsidiary equipment inventory records are reconciled to the general ledger equipment expenditure accounts.
In fiscal year 2001, the general ledger equipment expenditure accounts were reconciled to the Expended Plant equipment
fixed assets.
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Summary Schedule of Prior Year Findings and Questioned Costs
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For the Ascal Year Ended June 30, 2001
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COLUMBUS STATE UNIVERSITY
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Finding Control Number: FA-530-00-01
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SPECIAL TESTS AND PROVISIONS Deficiencies In Student Financial Aid Refund Process
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Questioned Cost: $2,158.00
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Each instructor is given a class roll the day after the drop/add period. Each instructor is told to notify the Registrar of any
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discrepancies between the class rolls and the students in attendance. Discrepancies include students on the class roll and
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not attending, and students not on the class roll and attending. The Registrar will contact all students not attending classes listed on their registration forms and inform them how to rectify their emollment discrepancies. At the end of the term,
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each instructor is required to report unofficial withdrawals to the Registrar for any student who has never attended class
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and for each student who has stopped attending class. The last date of attendance will be required for students who stopped . attending class. Students who never attended any classes and students who stopped attending classes before the end of the
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refund period will be processed through the Federal Return to Title IV policy, where applicable.
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Currently, the Department of Education has requested the institution review the academic transcripts of all 1999/2000 Title
0
IV aid recipients to identify those students who either withdrew from the institution during the year without official
0
notification, or failed to emoll for a term in which Title IV aid was received. The process has been completed and submitted to the Department of Education.
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FORT VALLEY STATE UNIVERSITY
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Finding Control Number: 533-96-14
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TYPES OF SERVICES/ALLOWED OR UNALLOWED
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Disbursement in Excess of Cost of Attendance
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The University has mandated a policy that all payments to students, regardless of the source, must be received and noted in
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Banner on RPAARSE before disbursement. Therefore, the emphasis that. the University now places on the procedure should provide the appropriate enforcement of the policy.
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Finding Control Number: 533-96-15 ELIGIBILITY
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Funds Disbursed While Emolled in Excess Remedial Hours
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We concur with the audit finding, but are still awaiting a response from U.S. Department of Education for resolution of the
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questioned cost.
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Finding Control Number: 533-96-16
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ELIGIBILITY
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Improper Determination ofEmollment Status
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We concur with the audit finding, but are still awaiting a response from U.S. Department of Education for resolution of the
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questioned cost.
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Finding Control Number: 533-96-18
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ELIGIBILITY
0
. Student Financial Aid in Excess of Maximum Time Frame
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We submitted information to the Federal government concerning this student's specific situation. Documentation
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supporting this was available in the student's folder, but was not appropriately listed for the audit year. We have appealed
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Auditee's Response Summary Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
AUDITEE'S COMMENTS
this finding with the understanding that documentation will always be appropriately listed in the future. Still awa1tmg response, current procedures require written documentation of any extenuating circumstances deemed appropriate for any changes in excess of the mandated 187 undergraduate hours or 72 graduate hours. Appropriate documentation is located in student file.
Finding Control Number: 533-96-19 ELIGIBILITY Satisfactory Academic Progress Not Maintained
We do not concur with this fmding. Satisfactory Academic Progress (SA}>) reviews are made at the end of the Spring quarter, with allowances for Summer enrollment before suspension takes place. The auditors were informed of this policy. Beginning the 95-96 school year appeals were approved for the same period. The auditors were given this information and requested not to use the old catalogs since the latest one had not been received from the printing company. Further, an analysis of the cases cited by the auditors revealed the following:
The two students cited for incremental measurement violation had complied with requirements at the end of the Summer 95 period, preceding Fall 95. Therefore, no financial suspension was warranted. Two students had been suspended from financial aid at the end of Spring 95, had appealed their suspension and been approved for 95-96, and documentation was available in the respective student's records attesting to action taken. Two students began the 1995-1996 school year in compliance of satisfactory academic progress. During the course of the school year academic problems prevailed. However, as long as the University allowed the students to re-enroll during this period, no action was warranted until the end of the 95-96 school year.
A result of all the aforestated information, we do not concur with audit findings in this area.
Finding Control Number: 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
We are 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.
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 }>ell Grant program upon direction from the U. S. Department of Education when final resolution is received.
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Summary Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
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AUDITEE'S COMMENTS
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Finding Control Number: FA-533-98-06
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REPORTING
0
Expenditures in Excess of Authorization
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Awaiting final response from the U.S. Department of Education on the Pell Grant expenditures in question.
0
0
Finding Control Number: FA-533-98-07
REPORTING
0
Inadequate Documentation for Report
0
Documentation to support the FISAP report is maintained on file in the Financial Aid and Accounting Services Offices.
0
Information used to prepare the report is generated through the University's Banner Student Information System and CUFA
0
then summarized into appropriate data files.
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Finding Control Number: FA-533-98-08
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REPORTING
Reports Not Reconciled
0
0
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
0
with documenting all reconciliation and reporting procedures. Effective July 1, 2000, a business and finance person has
0
been identified with primary responsibility of reconciliation of all Title IVprograms.
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Finding Control Number: FA-533-98-09
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SPECIAL TESTS AND PROVISIONS Entrance and Exit Counseling Not Conducted
0
0
The Financial Aid Office will adhere more strongly to its procedures on entrance and exit counseling.
0
Finding Control Number: FA-533-99-01
0
ELIGIBILITY Improper Disbursement ofFSEOG Funds
0
0
This finding has been reported to the U. S. Department of Education and we are awaiting their final determination. Policies and procedures in the awarding of FSEOG were changed and only Pell eligible students are awarded FSEOG
0
funds.
0
Finding Control Number: FA-533-99-02
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ELIGIBILITY
0
Failure to Notify Student of Awards
0
This finding has been reported to the U.S. Department of Education and we are awaiting their final determination. Written
0
procedures were developed requiring each financial aid counselor to notify students of all awards including any revisions.
0
Finding Control Number: FA-533-99-03
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ELIGIBILITY
0
Overpayment of Student Financial Aid
0
This finding has been reported to the U. S. Department of Education and we are awaiting their final determination. A
0
corrective action plan was developed and implemented. Revised financial aid policies and procedures. Staff participates in ongoing training at attending sessions sponsored by the U. S. Department of Education, Board of Regents, Georgia Student
0
Finance Commission, GASFAA and SASFAA.
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Audltee's Response Summary Schedule of Prior Year Andings and Questioned Costs For the Fiscal Year Ended June 30, 2001
AUDITEE'S COMMENTS
Finding Control Number: FA-533-99-04 REPORTING Expenditures in Excess ofAuthorization
This finding has been reported to the U.S. Department of Education and we are awaiting their final determination.
Finding Control Number: FA-533-99-05 REPORTING Inadequate Documentation for Report
This finding has been reported to the U. S. Department of Education and we are awaiting their final determination. Financial aid data submitted in the Fiscal Operations Report is being extracted directly from Banner. The only manual data is for Federal Work-Study, which cannot be tracked because another software (PeopleSoft) is used. FWS working papers are available to verify accuracy.
Finding Control Number: FA-533-99-06 REPORTING Reports Not Reconciled
This finding has been reported to the U. S. Department of Education and we are awaiting their final determination. Effective July I, 2000, a business and finance person has been identified with primary responsibility of reconciliation of all Title IV programs.
Finding Control Number: FA-533-99-07 SPECIAL TESTS AND PROVISIONS Entrance and Exit Counseling Not Conducted
This finding has been reported to the U. S. Department of Education and we are awaiting their final determination. Students identified in the sample as not having received "exit counseling" were in fact enrolled at least half-time. Therefore, exit interviews were not required. Currently, all first time borrowers must receive entrance loan counseling. Loan funds cannot be disbursed until the counselor is able to verify that counseling has been conducted and that the appropriate paperwork is on file. All borrowers who leave the University or drop to below halftime must come in for exit counseling or complete and return exit information mailed to him/her.
Finding Control Number: FA-533-99-08 SPECIAL TESTS AND PROVISIONS Inadequate Control Procedures
The financial aid office, personnel and payroll departments have now implemented procedures to ensure that time sheets are approved only after the last date indicated as worked on the time sheet. Procedures were also implemented to ensure that the supervisor actually signed student's time sheet and that each participant in the work-study program completes Federal and state tax forms. Procedures outlined above are being implemented.
Finding Control Number: FA-533-00-01 ELIGIBILITY Improper Disbursement of FSEOG Funds Student Financial Aid Cluster Program Questioned Cost: $47,199.00
The University is awaiting resolution of this finding from the U.S. Department of Education regarding its interpretation of regulations regarding awarding FSEOG funds to non-Pell eligible students. Until this issue is resolved, FSEOG will only be awarded to Pell eligible students.
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Summary Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
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Finding Control Number: FA-533-00-02
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ELIGIBILITY .
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Overpayment of Student Financial Aid Student Financial Aid Cluster Program
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Questioned Cost: $266,139.18
0
0
Tilis finding has been reported to the U. S. Department of Education and we are awaiting their final determination. These
were instances where students who did not make satisfactory academic progress appealed financial aid suspensions and
0
financial aid was reinstated. Adjustments were made in students' cost of attendance budgets, which led to increased
0
eligibility and revised award notifications. Also, the University has implemented changes designed to strengthen the
internal controls related to student financial aid.
0
0
The policies and procedures manual related to the awarding process has been revised.
Staff members have participated in mandatory in-house staff training sessions and training sponsored by state and
0
Federal agencies.
0
Satisfactory academic policies have been revised.
Students who have exceeded maximum time frame well beyond the mandated maximum hours are denied
0
additional aid at the undergraduate level.
0
Finding Control Number: FA-533-00-03
0
ELIGIBILITY
0
Failure to Notify Students of Awards Student Financial Aid Cluster Program
0
Questioned Cost: $50,741.74
0
Corrective action addressing this fmding has been fully implemented and includes initial and revised award notifications.
0
In a number of the cases identified, the award letters were in-house but not filed in the individual files as they should have
0
been. Written procedures were developed so that fmancial aid counselors could use as guidelines in notifying students.
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Finding Control Number: FA-533-00-04
0
REPORTING Reports Not Reconciled
0
Student Financial Aid Cluster Program
0
The reconciliation amounts reported for all federal fmancial assistance programs have been corrected. The Federal fiscal
0
activity calendar allows for corrections to be made. The following procedures have been implemented to ensure that all
0
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
0
report. Any discrepancies or errors noted after the initial transmission will be corrected in the FISAP edit report prior to
0
December 15th as allowed by the U.S. Department of Education. We are working with the U.S. Department of Education to complete the reconciliation process for the Direct Loan program.
0
0
Finding Control Number: F A-533-00-05
0
SPECIAL TESTS AND PROVISIONS
Inadequate Control Procedures
0
Student Financial Aid Cluster Program
0
Presently the Office of Financial Aid and the Payroll Office have on file "Authorized Supervisor Signature Forms". The
0
filing system in the Office of Financial Aid was changed and includes individual files for each Federal work-study
0
employee by program year.
0
0
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Auditee's Response Summary Schedule of Prior Year Andings and Questioned Costs For the Fiscal Year Ended June 30, 2001
AUDITEE'S COMMENTS
GEORGIA SOUTHERN UNIVERSITY
Finding Control Number: 539-96-01 REVENUES/RECEIVABLES/RECEIPTS Student Accounts Receivable Not Supported by Financial Aid
Georgia Southern University is following the Board of Regents Policy, Section 704, on collecting fees at student registration and ensuring that allowable exceptions to the Board of Regents' Policy have supporting documentation. Student fee deferments are only granted to students whose fees are guaranteed by an agreement with an outside agency and whose student fees will be paid from approved financial aid.
Procedures to collect outstanding accounts receivable balances have been implemented. Georgia Southern University will continue its collection efforts on the outstanding student accounts receivable balances. In addition, to assist in the collection of the accounts, Georgia Southern University has placed a financial record hold on the academic records of students who have outstanding accounts receivable balances.
Finding Control Number: FS-539-00-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Executive management of the institution has taken the necessary actions to implement Equipment Inventory Policies and Procedures to adequately strengthen internal accountmg controls and ensure that assets are safeguarded against loss from unauthorized use or disposition. The campus community has been adequately informed of the necessity to implement these policies and procedures into daily operating procedures. We will implement these policies and procedures to the fullest extent possible. However, we have learned since the implementation of the University System of Georgia PeopleSoft Financial Asset Management System that the model is lacking in functionality and reporting capability to fully allow effective implementation of procedures to achieve the above stated goals of ensuring adequate internal controls over equipment inventory at this time. We have reported known issues to the University System of Georgia implementation office and are awaiting resolution. It is certainly our hopes that all issues will be resolved in adequate time to fully implement the institution's Equipment Inventory Policy and Procedures by the close of fiscal year 2002. While we believe the outstanding issues will be eventually resolved, we are reluctant to provide full assurance on finding resolution until we have been provided with a fully functional equipment management system. At this point we will implement to the fullest extent available to the institution the operational procedures necessary to support adequate and effective internal controls and continue to seek local solutions to inadequacies in the model system.
KENNESAW STATE UNIVERSITY
Finding Control Number: 543-96-01 REVENUES/RECEIVABLES/RECEIPTS Student Accounts Receivable not Supported by Financial Aid
The process for collecting Masters of Experienced Professional student fees has been restructured. These students' accounts are now processed in the Banner subsystem. The policies developed are designed to ensure that the University is in compliance with Regents policy. The number of outstanding Masters of Experienced Professional receivables has been greatly reduced.
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Summary.Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
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0
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AUDITEE'S COMMENTS
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SAVANNAH STATE UNIVERSITY
0
0
Finding Control Number: FA-548-99-07
0
REPORTING Expenditures in Excess of Authorization
0
Federal Pell Grant Program (CFDA 84.063)
0
The Office of Budgets, Contracts and Grants and the Office of Financial Aid are working together to resolve the issue of
0
prior year balances. The Federal program has closed its books for fiscal year 1999. As such, the outstanding balance for
0
this fiscal year has became institutional loan. We will analyze this account, identify the loan by student and assign this loan to accounts receivable for collection. Hopefully, this will be done in fiscal year 2002.
0
0
Finding Control Number: FA-548-00-01 ALLOWABLE COSTS/COST PRINCIPLES
0
Time and Effort Report Deficiencies
0
Higher Education - Institutional Aid (CFDA 84.031)
0
The Office of Research and Sponsored Programs is charged to take the lead role to make sure that time and effort reports
0
for all Federal programs are submitted to the Office of Business and Finance.
0
Finding Control Number: FA-548-00-03
0
ELIGIBILITY Overpayment of Student Financial Aid
0
Weakness in Internal Control Structure
0
Student Financial Aid Cluster Program
0
The finding is only partially corrected. Planned corrective action has been implemented to correct noted deficiency,
0
however the institution is waiting for a more definitive ruling from the Department of Education Case Management
0
Division regarding one of the stated conditions.
0
Finding Control Number: FA-548-00-04
0
EQUIPMENT AND REAL PROPERTY MANAGEMENT
Inadequacies in Operation of Property Management System
0
Higher Education - Institutional Aid (CFDA 84.031)
0
The new software, PeopleSoft, will be able to handle grant award numbers after October 1, 2001. An inventory was
0
conducted in June 1999 and is scheduled for every two years. Project directors have been charged to inform Federal
0
agencies of disposals before calling surplus management. The University has policies and procedures to ensure that Title III program purchases are utilized for the Title III program.
0
0
Finding Control Number: FA-548-00-06 SPECIAL TESTS AND PROVISIONS
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Deficiencies in Student Financial Aid Refund Process
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Student Financial Aid Cluster Program
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Requested information was sent to the Case Management Specialist of the Department of Education on October 19, 2001,
0
however the University is still awaiting their response regarding the finding and final resolution.
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Audltee's Response Summary Schedule of Prior Year Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
AUDITEE'S COMMENTS
SOUTHERN POLYTECHNIC STATE UNIVERSITY
Finding Control Number: FA-550-00-04 SPECIAL TESTS AND PROVISIONS Failure to Reconcile Program Reports William D. Ford Federal Direct Loan Program (CFDA 84.268)
Despite software irregularities, a mid-year change in origination fee, and high staff turnover, the University through the
assistance of the U. S. Department of Education, West Georgia University and contracted Financial Aid Services,
Incorporated, the University worked diligently to address this prior year finding.
The Financial Aid Director retired and a new Director assumed responsibilities on June 4, 2000. The University underwent a reorganization resulting in redirecting staff from other departments that possess strong computer and analytical skills.
During the year under review, the University satisfactorily balanced and closed the 1997-98 Federal Direct Program year by remitting excess cash on hand in the amount of $42,974.00.
This finding remains unresolved with focused priorities on accurately awarding and reporting the current year program funds in addition to correcting prior year discrepancies. Negotiations are currently underway to employ experienced financial aid employees from other Universities to assist the current staff in addressing the technical difficulties in resubmitting the already identified variances.
In addition, the University plans to discontinue the William D. Ford Direct Loan Program and implement the Federal
Family Educational Loan Program (FFELP) effective Spring semester. This decision was made to aid the University in
addressing this prior year finding.
This management decision will allow the current staff to 1) focus on providing quality service to the student and 2) spend more directed time to address all prior year variances on all Federal financial aid programs that remain open as of this reporting period.
ATLANTA METROPOLITAN COLLEGE
Finding Control Number: 561-96-01 FUND EQUITIES REPORTING Deficit Fund Balance
In addition to previous unsuccessful efforts made by the College to have the fiscal year 1994 Pell Grant Program deficit in the amount of $34,3 63 .31 funded; on August 8, 2001, the College once more contacted the U. S. Department of Education for resolution and closure to the finding. On August 9, 2001, the College received an interim response from the U. S. Department of Education and is currently awaiting a final response.
Finding Control Number: 561-96-02 FUND EQUITIES REPORTING Deficit Fund Balance
In addition to previous unsuccessful efforts made by the College to have the fiscal year 1995 Pell Grant Program deficit in the amount of$64,595.20 funded; on August 8, 2001, the College once more contacted the U.S. Department of Education for resolution and closure to the finding. On August 9, 2001, the College received an interim response from the U. S. Department of Education and is currently awaiting a final response.
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Audltee's Response
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Summary Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
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AUDITEE'S COMMENTS
0
Finding Control Number: 561-96-04
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REPORTING
0
Incorrect Student Payment Summary Report
0
In addition to previous unsuccessful efforts made by the College to have the 1996 excess Pell Grant expenditures in the
0
amount of $41,529.14 fully funded; on August 8, 2001, the College once more contacted the U. S. Department of
0
Education for resolution and closure to the fmding. On August 9, 2001, the College received an interim response from the
U.S. Department of Education and is currently awaiting a final response.
0
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FLOYD COLLEGE
0
Finding Control Number: FS-573-97-02
0
FUND EQUITIES Deficit Restricted Funds
0
0
Floyd College continues trying to collect the deficit balance of$15,285.55 owed by a private funding agency. The agency is under.new management and to date, collection efforts have been unsuccessful.
0
0
GEORGIA MILITARY COLLEGE
0
Finding Control Number: FS-590-00-02
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
The inventory of fixed assets has been completed and the missing data has been included and invalid data corrected. The
0
general ledger will be adjusted in fiscal year 2002 to reflect the adjusted equipment value. Once the general ledger is reconciled, procurement records will be reviewed monthly and the cost of new equipment will be added to the inventory
0
records. All deletions from the inventory will be recorded. Inventories are conducted semi-annually to insure that
0
subsidiary ledger inventories match inventory on hand. Discrepancies will be researched and reconciled.
0
The College is continuing in its efforts to determine the value of buildings owned by the College.
0
WEST GEORGIA TECHNICAL COLLEGE
0
0
Finding Control Number: FS-819-00-02
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
Inadequate Property Management Procedures
0
0
West Georgia Technical College will perform a formal reconciliation of activity in the Asset Management System in FY
2001. Accounting personnel will review inventory records to detennine the proper valuation of equipment items.
0
Adjustments will be made to correct the overstated valuation and supporting documentation will be kept on file. The
0
Accounting Manager is responsible for inventory reconciliation.
0
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0
0
0
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Auditee's Response Summary Schedule of Prior Year-Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
AUDITEE'S COMMENTS
ATLANTA TECHNICAL COLLEGE
Finding Control Number: FS-823-00-01 CASH AND CASH EQUIVALENTS GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Deficiencies in Accounting Procedures
Cash and Cash Equivalents
Atlanta Technical College will implement appropriate procedures and controls to ensure that all bank statements are reconciled to the general ledger on a timely basis and that all reconciling items are identified and corrected. The Accounting Director will manage this process. Adjustments necessary for reconciliations will be adequately identified and detailed .
General Fixed Assets/Property Management
During fiscal year 2002, in addition to taking a physical inventory, Atlanta Technical College will incorporate procedures to test the accuracy of the equipment list.
AUGUSTA TECHNICAL COLLEGE
Finding Control Number: FS-824-97-02 REVENUES/RECEIVABLES/RECEIPTS Inadequate Accounting Control Procedures
The College continues to monitor receivables. Statements (billings) are sent to individuals on a quarterly basis. Student files are sealed if a balance is due to the College. Receivables from prior years continue to be pursued.
Finding Control Number: FA-824-98-01 ACTIVITIES ALLOWED OR UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $48,930.95
Augusta Technical College has contacted the U. S. Department of Education requesting a determination based solely on facts surrounding this Augusta Technical College finding. To date, there has not been a response other than an e-mail stating that a U.S. Department of Education representative would be contacting the College.
CHATTAHOOCHEE TECHNICAL COLLEGE
Finding Control Number: 827-95-03 REPORTING Incorrect Student Payment Summary Report
Final reconciliation of the adjustments to be made on the Student Payment Summary Report has been prepared and will be sent to the U.S. Department of Education by March 31, 2002, following procedures in Dear Colleague letter P-97-2.
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Audltee's Response
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Summary Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
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AUDITEE'S COMMENTS
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Finding Control Number: 827-96-03
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REPORTING
0
Incorrect Student Payment Summary Report
0
The final step of the adjustment process has not been implemented. A final reconciliation of the student accounts must be
0
completed and then sent to the U.S. Department of Education following the gUidelines of Dear Colleague letter P-97-2 by
0
March 31, 2002.
0
Finding Control Number: FA-827-97-03 REPORTING
0
Incorrect Student Payment Summary Report
0
Amount: $3,612.00
0
The College must have the student awards certified by the state auditors before submission to the U. S. Department of
0
Education for adjustment. Arrangements will be made to have the certification performed in order to submit the
0
adjustments before June 30, 2002, following the provisions in Dear Colleague letter P-97-2.
0
DEKALB TECHNICAL COLLEGE
0
Finding Control Number: FS-830-00-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in the Operation of Property Management System
0
A physical inventory was completed by an external company in June, 2001. The local inventory records reflect all
0
acquisitions to date, including fiscal year 2001. All assets acquired through capital lease agreements have been added to the inventory. Procedures are in place to ensure that all equipment acquisitions are added to the inventory in a timely
0
manner.
0
0
Finding Control Number: FA-830-98-01
ACTMTIES ALLOWED OR UNALLOWED
0
Improper Expenditures for Financial Aid Services
0
Questioned Costs: $31,480.04
0
Questioned costs have not yet been resolved. A revised use of Perkins funds for allowable activities is being used for the
0
current year.
0
APPALACHIAN TECHNICAL COLLEGE
0
Finding Control Number: FS-840-00-01
0
CASH AND CASH EQUIVALENTS
0
REVENUE/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS
0
Deficiencies in Accounting Procedures
0
Appalachian Technical College recognizes problems with its accounting records and controls. The College administration
0
has provided additional support to the effort with the addition of a Director of Financial Aid and Accounting. DTAE is
0
supporting the effort with additional training and help in reviewing the books.
0
Appalachian Technical College will continue to work on this problem
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Audltee's Response Summary Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
AUDITEE'S COMMENTS
SAVANNAH TECHNICAL COLLEGE
Finding Control Number: FA-841-98-01 ACTMTIES ALLOWED AND UNALLOWED Improper Expenditures for Financial Aid Services Vocational Education - Basic Grants to States (CFDA 84.048)
Savannah Technical College set up a payable for $21,277.55 to the U.S. Department of Education for this audit finding so that we could pay this amount to the Federal Government. This decision was derived after contacting the Supervisor for Federal Audit Requirements, Georgia Department of Audits and our Georgia Department of Technical and Adult Education to give us this resolution. As of this date, Savannah Technical College has not received an invoice for these funds .
Finding Control Number: FA-841-98-02 ALLOWABLE COSTS/COST PRINCIPLES Improper Overtime Payments Vocational Education - Basic Grants to States (CFDA 84.048) Questioned Costs: $5,872.00
The Georgia Department of Technical and Adult Education (DTAE) issued us a letter stating that no further action was required by Savannah Technical College. The letter dated January 11, 2000, from the Assistant Commissioner of DTAE Administrative Services has been provided to our auditors. As requested by our auditors, DTAE sent a letter dated March 17, 2000, to the U. S. Department of Education (USDOE) concerning final resolution of this finding. No response has been received from USDOE.
GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION
Finding Control Number: FA-918-00-01 REPORTING Report Data Submitted to ED was Unverifiable with the Loan's Holder of Record
The Corporation has made great strides in resolving lender reporting differences and will continue to work with lenders to resolve operating problems. The one loan that was identified as being unverifiable was formerly held by EduServe, who no longer provides services in this industry. Since the Corporation has not been able to find a new holder for this loan, it will be classified as 'abandoned' when the new NSLDS codes are implemented in July 2001. The Corporation has no information from the Department of Education as to how 'abandoned' loans will be treated on the Form 1130 replacement, For:m2000 .
NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8504-00-01 GENERAL FIXED ASSETS/PROPERTY 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 Agency has decided not to pursue the recording of general fixed assets on the financial statements.
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Aud1tees Response
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Summary Schedule of Prior Year Findings and Questioned Costs For the Fiscal Year Ended June 30, 2001
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AUDITEE'S COMMENTS
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NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
0
0
Finding Control Number: FS-8524-00-03
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
0
0
North Georgia RESA 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
0
Account Group.
0
Finding Control Number: FA-8524-00-03
0
ALLOWABLE COSTS/COST PRINCIPLES
0
Improper Indirect Cost Expenditures Vocational Education - Basic Grants to States (CFDA 84.048)
0
Amount: $36,608.00
0
North Georgia RESA provided enumerable services to Vocational-Technical Education in the areas of State
0
Administration, Leadership and the Georgia Vocational Staff Development Consortium. The agreed upon and approved
0
rate for providing these services to Vocational-Technical Education was 6.9% of the total grant for State Administration and Leadership and 7.45% for the Georgia Vocational Staff Development Consortium. The agreed upon rates are
0
documented by signed DE0448 grant budgets. These grant budgets were approved by the RESA official, the Vocational-
0
Technical Education official and the Grants Accounting official.
0
METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY
0
0
Finding Control Number: FS-8564-00-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Failure to Maintain General Fixed Assets Account Group
0
A concentrated effort was made in FY 01 to comply with the Corrective Action Plan that was given in respect to the FY 00
0
audit finding. A report of all inventories was done and a special report of items costing $1,000.00 and over was compiled.
0
The auditor-in-charge reviewed the general fixed assets list presented by Metropolitan Regional Educational Service Agency to enable the Department of Audits to record the fixed assets. The fixed assets list submitted, however, was incomplete because the acquisition cost for each inventory item was not separately stated. Therefore, the list will not be
0
c
usable for reconciling fixed assets on a yearly basis because the items deleted could not be quantified.
c
The State regulations pertaining to the recording of fixed assets requires Regional Educational Service Agencies to assign a
c
tag number and record the item at cost or market value in the absence of having the acquisition cost. Therefore, the auditor-in-charge will submit a copy of the list to the Department of Audits for further review.
c
c
WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
c
Finding Control Number: FS-8604-00-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
c c
Failure to Maintain General Fixed Assets Account Group
c
West Georgia Regional Educational Service Agency concurs with this finding as stated in the Fiscal Year 2000 audit
c
report. It is the decision of the Board of Control that West Georgia Regional Educational Service Agency not address
c
finding control number FS-8604-00-01 at the present time. The Board encourages the Department of Education to provide leadership and appropriations for Regional Educational Service Agency's in maintaining the General Fixed Assets Account
c
Group. West Georgia Regional Educational Service Agency will continue to.seek resources to accomplish this task.
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Auditee's Response Summary Schedule of Prior Year Findings and Questioned Costs For the Ascal Year Ended June 30, 2001
AUDITEE'S COMMENTS
OCONEE REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8664-00-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
The management of a General Fixed Assets Account Group is not an accessible accounting procedure at the present time due to this function being inoperative in our accounting system that is provided by the 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 accountable for all equipment owned by the Agency which includes date acquired, acquisition cost, location and description. Date of Implementation: Upon receipt of software update from GDOE.
CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8724-00-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group I concur with this finding. At the present time we do not intend to address this issue.
HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8764-00-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Due to the financial limitations and the inability of the current accounting system, the Heart of Georgia Regional Educational Service Agency is not able to establish accounting controls and procedures to provide for maintenance of the General Fixed Assets Account Group.
FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8804-00-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fi~ed Assets Account Group At present, Georgia Department of Education has not implemented a General Fixed Assets Account Group in our accounting system.
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CoRRECTIVE AcrroN RESFONSEs 'TD
0JRRENT YEAR FINDINGS: AND
QJESl'IONED 0:-rs
Corrective Action Responses to Current Year Findings and Questioned Costs Table of Contents For the Ascal Year Ended June 30, 2001
ENTITY CODE
ORGANIZATIONAL UNIT
PAGE NO.
401 408 414 419 427 430 440 462 466 467 469 472 474 476 484
503 518 521 527 528 533 539 548 561 590
818 819 823 830 918 977
8504 8524 8564 8604 8664 8724 8764 8804
Administrative Services, Department of............................................................................................. F-42 Insurance, Department of.................................................................................................................... F-42 Education, Department of................................................................................................................... F-43 Community Health, Department of..................................................................................................... F-45 Human Resources, Department of...................................................................................................... F-45 Judicial Branch ..................................................................:................................................................ F-48 Labor, Department of.......................................................................................................................... F-49 Natural Resources, Department of...................................................................................................... F-50 Public Safety, Department of.............................................................................................................. F-50 Corrections, Department of..~ .............................................................................................................. F-51 School Readiness, Office of................................................................................................................ F-52 Regents of the University System of Georgia, Board of..................................................................... F-54 Revenue, Department of ..................................................................................................................... F-55 Student Finance Commission, Georgia ............................................................................................... F-56 Transportation, Department of............................................................................................................ F-61 Colleges and Universities
Georgia Institute ofTechnology .................................................................................................. F-62 University of Georgia .................................................................................................................. F-64 Albany State University ............................................................................................................... F-65 Augusta State University ............................................................................................................. F-65 Clayton College and State University ......................................,................................................... F-66 Fort Valley State University ........................................................................................................ F-66 Georgia Southern University ....................................................................................................... F-69 Savannah State University ........................................................................................................... F-69 Atlanta Metropolitan College ...................................................................................................... F-71 Georgia Military College ............................................................................................................. F-72 Technical Colleges Okefenokee Technical College .................................................................................................... F-72 West Georgia Technical College ................................................................................................. F-73 Atlanta Technical College ........................................................................................................... F-74 DeKalb Technical College ........................................................................................................... F-74 Higher Education Assistance Corporation, Georgia ........................................................................... F-74 Public Telecommunications Commission, Georgia ............................................................................ F-75 Regional Educational Service Agencies Northwest Georgia Regional Educational Service Agency ......................................................... F-75 North Georgia Regional Educational Service Agency.~ ............................................................... F-75 Metropolitan Regional Educational Service Agency ................................................................... F-76 West Georgia Regional Educational Service Agency.................................................................. F-77 Oconee Regional Educational Service Agency............................................................................ F-77 Chattahoochee-Flint Regional Educational Service Agency ....................................................... F-77 Heart of Georgia Regional Educational Service Agency............................................................. F-78 First District Regional Educational Service Agency ................................................................... F-78
F-41
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Audltee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
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DEPARTMENT OF ADMINISTRATIVE SERVICES
0
Finding Control Number: FS-401-01-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
We concur with the finding. A reconciliation statement is under review and action is being taken to transfer assets between
0
DOAS (40100) and GTA (98000) pursuant to the Governor's Executive Order of May 24, 2001 which states in part "That the responsibility for providing information technology and telecommunications services to state agencies be transferred to
0
the Georgia Technology Authority including all associated positions, equipment and resources effective July 1, 2001".
0
The entire Asset Management Group, with responsibilities over General Fixed Asset inventory has also been transferred to
0
GTA. The GTA Asset Management Group is currently.reconciling assets to be maintained by DOAS including those assets
0
that have been surplused and not removed from inventory. Note that assets remaining with DOAS will be included in our new business unit Agency 40300. Any assets unaccounted for will remain on the old business unit Agency 40100 to be
0
disposed as appropriate.
0
0
DEPARTMENT OF INSURANCE
0
Finding Control Number: FS-408-01-01
0
GENERAL LEDGER Inadequacies in Control Over Accounts Payable
0
0
We concur with the finding. The agency is working with the PeopleSoft System to make the appropriate entries to clear the prior year carry-over balances. As recommended, the agency has implemented the use of adjustment vouchers rather
0
than manual journal entries when making entries to the accounts payable module. This will ensure that the general ledger is
0
automatically updated and will facilitate the reconciliation of the entries. Appropriate supporting documentation is being maintained for such entries.
0
0
Contact Person: Jim Wilson, Fiscal Officer Telephone: (404) 656-2122; Fax: (404) 657-7493; E-mail:jimwilson@mail.oci.state.ga.us
0
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Finding Control Number: FS-408-01-02 GENERAL LEDGER
0
Ending Balances in Balance Sheet Clearing Accounts
0
We concur with the finding. The end ofyear balances have been reconciled. The agency is working with the PeopleSoft
0
System to make the appropriate entries to clear the ending balances and to distribute the balances to the appropriate
0
accounts. As recommended, staff are reviewing and reconciling balances at the end of each accounting period.
0
Contact Person: Jim Wilson, Fiscal Officer
0
Telephone: (404) 656-2122; Fax: (404) 657-7493; E-mail:jim.wilson@mail.oci.state.ga.us
0
Finding Control Number: FS-408-01-03
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in Operation of the Property Management System
0
We concur with the finding. The duplicate entries have been identified. The agency is working with the PeopleSoft
0
System to make the appropriate entries to correct the duplicate entries. Staff have been trained in the proper procedures for adding equipment items to the inventory system. As recommended, equipment additions will be reconciled to the general
0
ledger expenditure accounts.
0
Contact Person: Jim Wilson, Fiscal Officer
0
Telephone: (404) 656-2122; Fax: (404) 657-7493: E-mail:jim.wilson@mail.oci.state.ga.us
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F-42
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Audltee's Corrective Action Plans For the Ascal Year Ended June 30, 2001
, ..i. .
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DEPARTMENT OF EDUCATION
Finding Control Number: FS-414-01-01 EXPENDITURES/LIABILITIES/DISBUR.sEMENTS Information Systems Not Accessible to Employees and Not Properly Documented
We concur with this finding. Department personnel have discussed with personnel from the Legislative Budget Office the deficiencies sited in this fmding and requested funds to develop additional software programs and an operator manual so department personnel can operate the QBE allotment and payment system independent of the contractors that developed the system.
Contact Person: Grant Rowe, Director of Accounting Services Telephone: (404)656-2497; Fax: (404)657-5512; E-mail: growe@doe.kl2.ga.us
Finding Control Number: FS-414-01-02 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
See response to Audit Finding FA-414-01-01 .
Contact Person: Grant Rowe, Director of Accounting Services Telephone: (404)656-2497; Fax: (404)657-5512; E-mail: growe@doe.kl2.ga.us
Finding Control Number: FA-414-01-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this finding.
(1) Equipment additions for the Department were not reconciled to the general ledger expenditure accounts.
(1) "Reconciliation of equipment for this department is conducted by the following: All purchase orders (PO) are screened for proper accountability in PeopleSoft's Asset Management for all equipment purchases for the Department. All incorrect expense account numbers are emailed to the initiator of the PO for correction: the Agency Procurement Officer is carbon copied (cc:) on the email. A copy of the PO's lines and distribution are printed by PrintScreen on the computer. If equipment is under $1000.00 and is not accounted for on Asset Management, a green Property of decal is mailed to the property manager of the unit that initiated the PO. If the equipment is $1000.00 or greater, or if under
$1000.00 but is deemed to be accounted for, the copies will be kept until the signed PO is received in this office for generating the DE Form 0513, Receipt of Equipment form. This equipment will have the DOE barcode decal affixed. When the DE Form 0513 is received from the unit that generated the PO, it is entered into the DOE Property System with the costs that are reflected on the PO. These costs are checked against the PO's Receiving Report when received in this office prior to sending to DOE Accounting Services for payment."
(2) Equipment inventory records for additions were updated incorrectly for the Department. Testing of current year additions revealed two (2) additions were updated onto the equipment inventory records incorrectly by an amount of $6,427.75 .
(2) "Reference #00183061, Dell Computer Corp, PO 41400-652-0000026777, showed $44,022.00 on Query OAP005 and Report AM506 indicated $48,857.75. Asset Management Report AM506 shows only the Acquired Cost: not Adjusted Cost. The twenty-nine Dell Optiplex GX400 Computers, that were originally acquired on 06/26/2001 at $1,684.75 each, was later changed to $1,518.00 each by a
F-43
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Auditee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
Dell Invoice received in this office on 07/06/2001 enroute to Accounting Services, for a total of
0
$44,022.00 on Asset Management which agrees with Query OAP005. No audit exception exists.
0
Reference #00158803, Apple Computer Corp, PO 41400-053-0000026141, showed $12,204.00 on Query
0
OAP005 and Report AM506 indicated $10,612.00. Asset Management AM506 shows only the Acquired
Cost: not Adjusted Cost. There was no change in Cost within Asset Management. However, the PO
0
Price on the PO changed for Line Item 1-1, 2-1, and 3-1, due to an Apple Invoice, received in this office
0
on 04/06/2001 enroute to Accounting Services, reducing original cost from $1,368.00 to $1,169.00 at Line Item 1-1, $4,644.00 to $4,047.00 at Line Item 2-1, and $6,192.00 to $5,396.00 at Line Item 3-1, for
0
a total of$10,612.00. The audit exception exists with Accounting Services not applying the discounts to
0
their payment to Apple Computer Corp. No audit exception exists in Asset Management."
0
In addition, six-hundred-thirty-six (636) equipment items were selected from certain locations to test the accuracy of
0
the Department's property management records. These items contained a value of$1,515,295.46 out ofa population of $9,645,639.85 at the tested locations and were selected for the purpose of locating equipment as recorded in the
0
inventory records. The general fixed assets of the Department amounted to $40,094,273.22. The following
0
deficiencies were noted:
0
(1) Twenty (20) items totaling $47,018.53 could not be located.
0
(2) Nine (9) items were found in locations other than the location indicated in the equipment inventory
0
records.
0
(3) One (1) item was found that was recorded as missing on the inventory records.
0
0
Also, during the physical inspection testing, seventy-seven (77) items of equipment were located in our test locations, which were not included in the equipment inventory records for the particular location. The majority of these items
0
were in the Instructional Technology location.
0
(1) "Failure by unit property manager to properly account for their inventory whether the item was moved by
0
an employee of the unit or Technology Services without a paper trail to DOE Property Control."
0
(2) "Failure by unit property manager to properly account for their inventory whether the item was moved by
0
an employee of the unit or Technology Services without a paper trail to DOE Property Control."
0
0
(3) "A unit property manager who fails to properly inventory equipment can result in equipment being
indicated as "missing". Most often, this occurs when inventories are completed quickly."
0
0
Contact Person: Grant Rowe, Director of Accounting Services
Telephone: (404)656-2497; Fax: (404)657-5512; E-mail: growe@doe.kl2.ga.us
0
0
Finding Control Number: FA-414-01-02 SUBRECIPIENT MONITORING
0
Approval for Improper Expenditures
0
Vocational Education - Basic Grants to States (CFDA 84.048) Amount: $18,178.00
0
0
We concur with this finding. We agree with the recommendation that the United States Department of Education review this matter to determine the manner in which the questioned costs should be resolved. We have been pursuing this avenue
0
since September 2001.
0
A letter of supporting information was sent to the United States Department of Education, dated September 4, 2001,
0
regarding the issues raised in the audit finding. We have subsequently spoken with representatives of the United States
0
Department of Education and are anxiously awaiting a response from this agency.
0
F-44
0
'.
. ~
.I
. . :I~---.:.'
Audltee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
Contact Person: Grant Rowe, Director of Accounting Services Telephone: (404) 656-2497; Fax: (404) 657-5512; E-mail: growe@doe.kl2.ga.us
Finding Control Number: FA-414-01-03 SUBRECIPIENT MONITORING Subrecipient Audit Reports Not Received Within the Required Time Period
We concur with this finding. The Department of Education is responsible for tracking and reviewing the audits of local units of administration (LUAs). However, the Department of Audits is required by state law to audit the LUAs, because LUAs receive the majority of their funding from the state. In addition to the LUA audits, the Department of Audits has the responsibility to audit all state agencies, commissions, etc. The LUAs are audited after the state agencies, commissions, etc. Because the LUAs are audited last and the large number of LUAs to be audited, the Department of Audits cannot complete the audits in the time period required by OMB Circular A-133. The U.S. Department of Education is aware of the problem, and realizes there is not currently a viable solution to the finding. The LUA audits are normally completed within a 15-18 month time period. The department has a six-month resolution period to resolve findings in the LUA audits after being received from the Department of Audits.
Contact Person: Grant Rowe, Director of Accounting Services Telephone: (404)656-2497; Fax: (404)657-5512; E-mail: growe@doe.kl2.ga.us
DEPARTMENT OF COMMUNITY HEALTH
Finding Control Number: FA-419-01-01 REPORTING Reports not Properly Reconciled to the Accounting Records Medicaid Cluster Program
Medical Assistance Program (CFDA 93.778) State Children's Health Insurance Program (CFDA 93.767) Questioned Cost: $526,974
The Georgia Department of Community Health agrees with this finding.
The Georgia Department of Community Health will develop procedures to review and reconcile the quarterly HCFA-64 and HCFA-21 reports to the quarterly amounts in the schedule of federal awards.
DEPARTMENT OF HUMAN RESOURCES
Finding Control Number: FS-427-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this finding: The Department of Human Resources is continuing to take steps to ensure that adequate internal controls are in place to accurately maintain equipment inventories. The Asset Management Unit continues to hold quarterly meetings with Division/Office property coordinators to instruct them in proper inventory control procedures. Agency Division/Office Supervisors and property coordinators are responsible for ensuring that their local Directors and local property coordinators follow the Agency's Property Manual procedures. The Asset Management Unit has also rewritten the DHR Personal Property Manual to clarify property procedures. The new manual will be ready for distribution at the next quarterly meeting on March 12th.
An examination was made of the audit exceptions that resulted in the Agericy's Audit Finding. Ifit is found that personnel failed to follow established property procedures, appropriate employee disciplinary action will be taken. This examination and any resulting actions will be concluded by May 15, 2002. Agency Division/Office Supervisors will ensure that local Directors and local property coordinators are fully trained in property procedures and that they are consistently following these procedures.
F-45
0
0
0
Auditee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
The Asset Management Unit administers an annual system wide physical inventory and reconciles discrepancies. OHR
0
Office of Audits examines fixed asset records and inventories as a part of their procedure in DFCS county office audits.
0
In addition to the above, the balancing of the assets in the GFAAG ledger will be brought up to date through February,
0
2002 by March 31, 2002. The reconciliation will then take place on a monthly basis starting with the month of March
2002.
0
0
Contact Person: Bill Harris, Director, Office of Facilities and Support Services Telephone: (404) 656-4427; Fax: (404) 656-0709; E-mail: wlharris@dhr.state.ga.us
0
0
Finding Control Number: FS-427-01-02 GENERAL LEDGER
0
Inadequate Accounting Procedures
0
We concur .with this fmding. Worksheets reconciling the payroll module to the general ledger will be prepared monthly.
0
OFS management will review monthly payroll reconciliations. Copies will be maintained in a folder for audit review.
0
Unidentified amounts in clearing accounts will be identi~ed and corrected by March 31, 2002.
0
Contact Person: David 0. Martin, Manager ofFinancial Operations
0
Telephone: (404) 656-6455; Fax: (404) 651-9337; E-mail: domartin@dhr.state.ga.us
0
Finding Control Number: FA-427-01-01
0
ELIGIBILITY Deficiencies in File Maintenance
0
Temporary Assistance to Needy Families (CFDA 93.558)
0
Questioned Cost: $13,107.00
0
We concur with this finding: The areas cited in the FY 2001 Audit Findings for the TANF and Food Stamp programs will
0
be addressed by the sharing of the audit results ofthis audit with county supervisors at their second quarter area supervisors meeting that is conducted by the program consultants.
0
0
Supervisors will be reminded of the importance of ensuring that TANF eligibility requirements are
0
adhered to as they do case record reviews. Included in this will be to insure that all documents required
in the file are present.
0
0
Supervisors will be directed to provide refresher training to their staff in the areas of the Form 138, the Personal Responsibility Plan, and the immunization verification requirements for children receiving
0
TANF.
0
Supervisors will be directed to provide documentation that this training took place by 7/31/02.
0
0
Contact Person: Howard Willis, Director of Economic Support Section, Division of Family and Children Services Telephone: (404) 657-3702; Fax: (404) 657-3785; E-mail: howillis@dhr.state.ga.us
0
0
0
0
0
0
0
0
0
F-46
0
.. ~ "' ~ '
Auditee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
Finding Control Nwnber: FA-427-01-02 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: $1,387.00
We concur with this finding: The areas cited in the FY 2001 audit for child care non-MaxStar DFCS offices will be addressed by implementing training and supervisory direction to address the following specific issues:
1. Instructions will be given to field consultants and placed in the supervisor training module on selecting a case sample for review beginning with the paid invoice and copy of paid check.
2. Emphasis will be placed on using the -proper UAS code and documenting changes on the appropriate child care forms during the supervisory review process. This will also be included in the supervisory training module and stressed during supervisory training.
3. Emphasis will be placed on the requirements of completing all forms and obtaining necessary income verification to determine eligibility. This will also be stressed in the training module for supervisors as well as in supervisory training. E & R will continue to evaluate this during their Administrative Reviews .
For the MaxStar offices, the information we have on the Clarke County case indicates the payment was made appropriately. In the Bibb County case, we concur that an error was made in the case sited and are working with the vendor to resolve the issue.
Contact Person: Bonnie Murray, Director, Child Care and Parent Services Section, Division of Family and Children Services Telephone: (404) 463-2238; Fax: (404) 657-3489; E-mail: bomurray@dhr.state.ga.us
Finding Control Number: FA-427-01-03 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: $13,585.00
We concur with this finding: The areas cited in the FY 2001 Audit Findings for the TANF and Food Stamp programs will be addressed by the sharing of the audit results of this audit with county supervisors at their second quarter area supervisors' meeting that is conducted by the program consultants.
Supervisors will be reminded of the importance of ensuring that Food Stamp eligibility requirements are adhered to as they do case record reviews. Included in this will be to insure that all documents required in the file are present.
Supervisors will be directed to provide documentation that this training took place by 7131102 .
Supervisors will be told to remind Food Stamp staff of the importance of obtaining the appropriate identification when processing applications.
Contact Person: Howard Willis, Director of Economic Support Section, Division of Family and Children Services Telephone: (404) 657-3702; Fax: (404) 657-3785; E-mail: howillis@dhr.state.ga.us
F-47
0
0
0
Auditee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
Finding Control Number: FA-427-01-04
0
EQUIPMENT AND REAL PROPERTY MANAGEMENT
Inadequacies in Operation of Property Management System
0
0
We concur with this finding: See FS-427-01-01
0
JUDICIAL BRANCH
0
0
Finding Control Number: FS-430-01-01
CASH AND CASH EQUIVALENTS
0
Inadequate Accounting Procedures
0
Administrative Office of the Courts
0
We concur with the results of this fmding. The AOC has implemented procedures necessary to reconcile all bank accounts
0
on a monthly basis that includes, but not limited to, identifying all reconciling items and posting appropriate corrections to the AOC's accounting records.
0
0
Contact Person: Randy Dennis, Chief Accounting Officer Telephone: (404) 651-7613; E-mail: dennisr@aoc.courts.state.ga.us
0
0
Finding Control Number: FS-430-01-04 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacy in Operation of Property Management System
0
Superior Courts - Department of Administrative Services
0
We concur with the finding. A reconciliation statement is under review and action is being taken for correction.
0
Recommendation has resulted in the creation of a Superior Courts Asset Management designee with responsibilities over General Fixed Asset inventory. Though considerable improvements have been made, Superior Courts recognizes the need
0
for additional review of controls and new standards for the maintenance of the General Fixed Asset inventory. Since the
0
creation and staffmg, some of the measures that have taken place and that will be introduced in the near future are:
0
(1) Property coordinators have been identified and are being trained within each Judicial District for
0
Superior Courts. (2) Full physical inventory is currently being conducted which should be completed by year-end 2002.
0
(3) Inventory information, both historical and current, is being added to the new Asset Management System.
0
(4) Reconciliation of the Inventory listing to the financial records is in-process and should be completed by year-end FY2002.
0
(5) Additions and deletions to inventory are being performed in a timely manner.
0
(6) A custom query (run weekly) has been designed that accesses the financial records database and allows identification of accountable assets at the initiation of the procurement process.
0
(7) A memo of policies, procedures and forms has been disseminated to the Superior Courts Judicial
0
Districts.
0
(8) Re-tagging of assets during physical count is taking place with a new bar coded (scanable) ID decal.
(9) Non-usable assets are being retired from physical review under the State Surplus Program guidelines.
0
0
The above internal controls have been developed and implemented to help Superior Courts ensure equipment inventory records are maintained in accordance with State laws and regulations.
0
0
Contact Person: Tom Merriam, Budget Administrator for Superior Courts Telephone: (404) 657-5952
0
0
0
0
F-48
0
.' . .,..:....
Auditee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
DEPARTMENT OF LABOR
Finding Control Number: FS-440-01-02 CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures
We concur with this finding. While the Department's internal procedures required reconciliation after receipt of bank statements and closing of accounts for the month, they did not establish a timeline or due date for completion. The administrative reviews that should have insured completion were negatively impacted by the enormous workloads required for the transfer of the Rehabilitation Services Division of the Department of Human Resources to the Department of Labor effective July 1, 2001. This transfer effectively doubled the _size of the Department of Labor and its financial operations, but the work required was accomplished with existing Labor staff. This financial workload bas continued to exist through the first half of FY 2002 since few financial staff was transferred from the Department of Human Resources. The Department is now addressing this need by increasing staff to adequately support the higher workloads. We feel that this is also part of the corrective action needed.
In addition, internal controls have been revised to insure reconciliation of all bank statements are completed by designated accounting personnel within 15 days of receiving the statements and the closing of accounts books for the month. The reconciliations will be presented to the Finance Director for approval.
At the time of the reconciliation all variances will be identified and the appropriate journal entry will be recorded in the department's accoiinting records. However, if variances are bank errors, correspondence to the bank notifying them of the error will be attached to the bank reconciliation.
Contact Person: Bennie Huff, Accounting Director Telephone: (404) 656-3188; Fax: (404) 651-6438; E-mail: Bennie.Huff@dol.state.ga.us
Finding Control Number: FS-440-01-03 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with this finding. Because the Department bad recognized the need for an improved management tool to assist in maintaining equipment inventories in accordance with the provisions of State laws and regulations, we developed and implemented a system using automated reports from the Financial Accounting and Reporting System (FARS) and the Property Management System. Subsequently, after further clarification of what was needed to successfully address this finding, we found this approach to be insufficient to fully reconcile general ledger expenditure accounts with equipment inventories .
Our corrective action to provide a proper reconciliation between equipment additions to inventories recorded by the Property Management System and equipment expenditure accounts on the general ledger (SA2510 Trial Balance) will be as follows:
1. For State GAAP account codes 016-643-100 Eq~ipment Purchases Greater than $999 (FARS Object/Subobject 5010) and 019-643-100 Computer Equipment Purchases Greater than $999 (FARS Object/Subobject 5235) which appear on the SA2510 Report, create a file of class 5 expenditure records by document number, document line number, and dollar amount from the FARS detail transaction file .
2. Create a file of equipment inventory records that meet the statutory definition of $1000 or more from the Property Management System by document number and dollar amount.
3. Match the records of these two files by document number and produce a comparative report that displays document numbers and amounts. Where the amounts agree, reconciliation has occurred. Where the amounts do not agree, we shall reconcile the differences, which should result from price changes, freight charges, and discounts, by using ad hoc reports.
F-49
0
0
0
Auditee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
4. Make corrections to the Property Management System equipment inventory records where original cost
0
amounts don't agree with the SA2510 equipment expenditure accounts.
0
5. Reconcile the SA2410 equipment expenditure accounts to the SA2510 equipment expenditure accounts;
0
the differences should be resources on order.
0
Contact Person: Bennie Huff, Accounting Director
0
Telephone: (404) 656-3188; Fax: (404) 651-6438; E-mail: Bennie.Huff@dol.state.ga.us
0
DEPARTMENT OF NATURAL RESOURCES
0
0
Finding Control Number: FS-462-01-01
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
We concur with this finding. Steps are underway to ensure that all surplus items are removed from the equipment
0
inventory records when the documentation is received and that all inventory items have the proper decal and are recorded
0
in the property management system in accordance with the State Propertv System Manual. In the past year we have reassigned the responsibility of inventory management to another associate within the department. The department is in
0
the process of conducting complete inventories at all office sites throughout the state and making appropriate entries into
0
the asset management system from these inventories. This process (the complete inventories) was started in June 2000. We originally anticipated it would take 12 to 18 months to complete all inventories and get the property management
0
system completely accurate and up to date. The complete inventory has been completed for seven of the eight divisions.
0
We anticipate the inventory of the final division to be complete by the end of this fiscal year.
0
Contact Person: Charles Tye, Office Services Director
0
Telephone: (404) 656-7763; Fax: (404) 656-2285, E-mail: charles_tye@dnr.state.ga.us
0
DEPARTMENT OF PUBLIC SAFETY
0
0
Finding Control Number: FS-466-01-04
GENERAL LEDGER
0
Ending Balances in Balance Sheet Clearing Accounts
0
We concur with this finding. Please note that subsequent to year-end, GTA initiated improvements that automated the
0
clearing for payroll-related accounts, the principal problem at year-end. However, we will include such procedures, as are
0
required to zero out any holding accounts with balances, before FY 2002 period has been closed.
0
Contact Person: Julie Thornton, Accounting Director
0
Telephone: (404) 624-7753; Fax: (404) 624-7898; E-mail: jthomton@dps.state.ga.us
0
Finding Control Number: FS-466-01-05
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
0
0
We do not concur with the conclusion that the property management system was operating inadequately. We believe that the procedures indicate a need for improving a system already in place. For instance, inventory of the fifty-plus sites where
0
property is located has begun and should be completed by June 30, 2002. This should enhance accounting for retirements
0
and location. Also, the reconciliation from the expenditure accounts to the inventory will be completed quarterly rather than at year-end. As such, differences in amounts recorded to the system should be identified and corrected prior to
0
auditors' procedures, e.g., in the normal course of employees' duties. Finally, DPS has enhanced the system of tracking the
0
movement of assets from location to location.
0
0
F-50
0
.. ,..,.~ ' . :'
Auditee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
We have no basis upon which to concur with the specific finding citing $81,200.75 in differences between actual to cost recorded in inventory. We have not been able to determine which assets are being cited to test the finding.
We concur with the specific finding that fifty-six items aggregating $124,790.82 could not be located and that twenty-nine items of equipment were located that could not be traced to the inventory records. As cited, procedures have been enhanced to track the movement of equipment from location to location. Also, the inventory in process should indicate which older assets need to be retired. However, we do note that the average cost of the assets not located is approximately $2,200. We note that the State of Georgia's capitalization threshold for fixed assets has increased to $5,000 for FY 2002, premised upon cost-benefit and materiality considerations.
Contact Person: Marsha Johnson, General Services Manager Telephone: (404) 624-7873; Fax: (404) 624-7837; E-mail: mjohnson@dps.state.ga.us
DEPARTMENT OF CORRECTIONS
Finding Control Number: FS-467-01-01 EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures
We concur with this finding.
Expenditures for the Department's Health Services Contract for the State's inmate population was processed in accordance with the contractual agreement. Although, the lack of internal written policies and procedures resulted in inappropriate accounting practices. Health Services is currently developing written procedures and internal controls for the payment process .
1. All computer spreadsheets and supporting documentation submitted for payment will be reviewed and approved by management prior to payment of invoices.
2. Pre-approved department forms, inmate sundown counts, mathematical computations will be reviewed and approved by management.
3. Payments will be tracked monthly and reconciled utilizing monthly reports generated by the department and reports received from the vendor.
4. Health Services will develop a list of authorized personnel to approve supporting data for invoices submitted by the vendor.
5. Distribution of payments by Journal Voucher will be viewed by management prior to submission to Accounting .
6. Errors and misstatements by the employee will be documented with a written resolution. The resolution will be reviewed and approved by management.
Finding Control Number: FS-467-01-02 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
I) We concur with this finding concerning reconciliation, however, a clear and precise reconciliation process or training has never been provided to the dept. The Property Audit Section and Accounting Section for the dept. has developed a reconciliation process for FY 02' that has been accepted by the State Auditor.
2) We partly concur with this finding concerning additions to the inventory system We agree that four of the six items listed were not added to inventory during FY 0 I' as required. These items were added to PeopleSoft on 1122/02 and
F-51
0
0
0
Auditee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
have been verified by Scott Kimball, Property Control Mgr. for the dept. We do not agree with two of the items listed.
0
One of the items was determined as being a pennanent attached asset and the other as internal parts, non-trackable
item. It clearly states in the audit requirements for capital assets that these type items do not have to be decaled or
0
tracked on an inventory system. The total cost of these two items is $103,923.50. This should reduce the total cost of
0
the findings to $181,756.30. All of the additions that were not on inventory are computer items. The OIT section of the dept. is responsible for adding these type of items on to the inventory system in a timely manner. The department
0
is taking steps to insure this problem is solved and that the issue does not become a fmding in the future.
0
3) We only agree with one item in this fmding concerning missing.items. The audit report stated that seven items were
0
missing totaling $98,390.11. As of February 4, 2002, five of the seven items have been located and verified by Scott
0
Kimball, while documentation was located and provided concerning one other item The fmding should be reduced to show one missing item with a cost of$25,017.63. This issue is not considered a problem for the department.
0
0
Contact Person: Scott L. Kimball, Property Control Manager Telephone: (404) 463-6397; Fax: (404) 463-6286
0
0
OFFICE OF SCHOOL READINESS
0
Finding Control Number: FS-469-01-01
0
GENERAL LEDGER
0
Inadequate Accounting Procedures (Overall)
0
OSR concurs with the General Ledger fmdings with reservations.
0
Under a similar finding of the prior year, OSR resolved all issues relating to Cash and Cash Equivalents. For prior year
0
fmdings related to Revenues/Receivables/Receipts, OSR resolved issues concerning travel advances and the transfer of
0
state revenue collections to the Office of Treasury and Fiscal Services. OSR also made progress in the Expenditures/Liabilities/Disbursements area to interface our Pre-K subsidiary ledger in April 2001 to the General Ledger
0
by automating upload voucher data to distribute payments through the Accounts Payable (AP) Module. OSR has already
0
implemented (January 2002) a similar AP upload process to pay CACFP and SFSP Nutrition Program Providers. However, adjusting entries will continue to be required to restore balances that are impacted by the netting effect of federal
0
payments that cross federal and state fiscal years. OSR is continuing to development enhancements to the subsidiary
. system that will properly distribute the details of all payments which net to the cash disbursement amounts.
0 0
OSR undertook an aggressive project to analyze and correct all General Ledger Balances. This project involved more than
0
66 individual projects with balances tied to three different fund codes dating back to 1992. Often unreasonable and obsolete balances were folded or adjusted to actual balances supporting only the accuracy of the resulting balance. OSR
0
was unable to complete this balance cleanup process within the 998 closing period. As a result, many adjusting entries
0
continued to be made after the 998 period resulting in reconciliation differences to the 998 year end trial balance. OSR believes that reconciliation processes were sufficiently in place to provide adequate internal controls over
0
Revenues/Receivables/Receipts, Expenditures/Liabilities/Disbursements, and Fund Equities for each monthly period prior
0
to the balance cleanup project. Umeconciled items were identified as relating to the cleanup process and were resolved in total when the project was completed. Detail accounts within the AP and AR module are currently undergoing cleanup.
0
All required reconciliations are performed monthly and are currently up to date with appropriate ties in to the General
0
Ledger agency level totals. Umeconciled conditions are not expected to reoccur. Four of the eight fmdings were a result of the incomplete cleanup project.
0
0
Overall, this audit report does not reflect the efforts and progress made to reflect accurate and reasonable general ledger account balances. Management is proud of the accomplishments of the accounting staff and believes that their
0
accomplishments in correcting all General Ledger Balances have led to more accurate and timely decision-making
0
information.
0
0
0
F-52
0
... ~:,
Auditee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
Use of direct journal transactions, recognition of state and lottery revenues through established receivables, reconciliation of subsidiary systems to the General Ledger and proper journal entry approvals will be/have been resolved through the following corrective actions.
Corrective Actions for General Ledger Findings: OSR will review balances and reconciliations to assure that all necessary correcting entries are made within the 998 adjusting period.
OSR has corrected al~ the FY 2002 direct journal transactions through the Accounts Receivable Module and has put procedures in place to continue this practice.
OSR has already taken steps (September 2001) to recognize State and Lottery funds as revenue at the point the appropriation monies are made available and record the available amounts in receivable accounts. Draws from the Department of the Treasury are posted to reduce these receivable balances. Federal Funds will continue to be recognized when earned, but booked to flow through a receivable account. OSR questions the efficiency of this process and it's controi value added to achieve proper accounting procedures. Federal accounts will continue to be adjusted to reflect changes in earnings as a result of adjusted claim values and excess cash draws from the federal ASAP system will be reclassified as deferred revenue.
All payments from the OSR subsidiary systems now flow through the PeopleSoft AP module. Monthly reconciliations for the Pre-K sub-system are current to the detail level requested. All payments from the Nutrition subsystem will continue to be supported to the detail level of the sub-recipient for each payment distribution run. Our reconciliation process to relate cash disbursements to claim values will continue. OSR believes that current reconciliation processes of subsidiary ledgers are accurate and available for review with detailed support for each month.
A Journal entry approval process was in place. Information shows that all manual N s through May had approval signatures. OSR's cleanup process began in June.
Contact Person: Margie Landers, Director of Finance and Human Resources Telephone: (404) 463-5031; Fax: (404) 463-0976; E-mail: Margie.Landers@mail.osr.state.ga.us
Finding Control Number: FA-469-01-01 SUBRECIPIENT MONITORING Subrecipient Audit Reports Not Received and Not Followed-up on Deficiencies Within the Required Time Periods
OSR concurs with this finding .
A system is in place that provides an accurate listing of subrecipients. This list is now used instead of the audit logs produced based on my method of logging and tracking nongovernmental audits. The two lists, that separately listed Governments, including Boards of Education (BOE), from Nongovernmental organizations, are now consolidated into one list, as requested, and may alleviate confusion that has occrred during this audit.
Also, close out letters are consistently being sent to all those who submit an audit to the Office of School Readiness and have no audit deficiencies, rather than just those that require follow-up, because of audit deficiencies.
Letters informing subrecipients of their audit obligation, and requests for an A-133 compliant audit at subrecipients' yearend are sent out to all non-profit providers, annually. Notice and request of the same is also made in our quarterly Nutrition newsletters. These efforts will continually be made in order to prompt on-time submission of audit reports. Of the eighty-nine (89) audits not received before their required deadline, four (4) subrecipients requested, and were granted extensions. The four (4) submitted their reports within the extended deadline. Fifty-six (56) are BOE's audited by the Georgia Department of Audits and Accounts, and are fully aware of the nine-month deadline. Further, eleven (11) of the fifteen (15) not submitted by January 17, 2002 are BOE's audited by the Georgia Department of Audits and Accounts and are fully aware of the requirement to forward audits to its Grantor Agencies. However, our attempts to achieve compliance will continue.
F-53
0
0
0
Auditee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
Contact Person: Tanya Astin, Internal Auditor
0
Telephone: (404) 656-6293; Fax: (404) 463-0976; E-mail: Tanya.Astin@mail.osr.state.ga.us
0
BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA
0
Finding Control Number: FS-472-01-02
0
BUDGET PREPARATION/EXECUTION
0
Overexpenditure of Budget Unit Object Class Resident Instruction, "A" Budget
0
0
We concur with this finding. The University System of Georgia is completing a three year project of implementing the PeopleSoft HRMS and Financials software. The final institutions are scheduled to go live in May of 2002. Also, as a final
0
phase of the implementation a system wide, Decision Support System (Data Warehouse) is being developed and will be in
0
place July 1, 2002.
0
The new system will provide the University System Office to extract budget data as well as revenue and expenditure data 0
from all the institutions. This will allow the University System Office and the Business Services Office to consistently
0
verify that budgets are correctly amended and in agreement with the Central Office Budget allocation amounts to prevent
the expenditure of funds in excess of budget approval.
0
0
FY 02, our last year on the current system, we will tighten procedures and more closely monitor the amendment process to
prevent any overexpenditure.
0
0
Contact Person: William R. Bowes, Vice Chancellor for Fiscal Affairs/Treasurer
Telephone: (404) 657-2232; Fax Number: (404) 657-7433; E-mail: wbowes@mail.regents.peachnet.edu
0
0
Finding Control Number: FS-472-01-03 BUDGET PREPARATION/EXECUTION
0
Overexpenditure of Budget Unit Object Class
0
Regents Central Office and Other Organized Activities, "B" Budget
0
We concur with this fmding. The University System of Georgia is completing a three year project of implementing the
0
PeopleSoft HRMS and Financials software. The final institutions are scheduled to go live in May of 2002. Also, as a final phase of the implementation a system wide, Decision Support System (Data Warehouse) is being developed and will be in
0
place July 1, 2002.
0
The new system will provide the University System Office to extract budget data as well as revenue and expenditure data
0
from all the institutions. This will allow the University System Office and the Business Services Office to consistently
0
verify that budgets are correctly amended and in agreement with the Central Office Budget allocation amounts to prevent the expenditure of funds in excess of budget approval.
0
0
FY 02, our last year on the current system, we will tighten procedures and more closely monitor the amendment process to prevent any overexpenditure.
0
0
Contact Person: William R. Bowes, Vice Chancellor for Fiscal Affairs/Treasurer Telephone: (404) 657-2232; Fax Number: (404) 657-7433; E-mail: wbowes@mail.regents.peachnet.edu
0
0
0
0
0
0
0
F-54
0
Audltee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
DEPARTMENT OF REVENUE
Finding Control Number: FS-474-01-01 CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures
We concur with this finding. This is in response to the above referenced findings by the State Auditor.
In response to deficiency 1: Four of the five reconciliation's not approved were Revolving Fund Accounts previously reconciled at Tradeport. These accounts are now handled at Century Center and are approved as completed. The approval process was reviewed since the end of the fiscal year 2001. Accounts are reviewed and filed after approval.
In response to deficiency. 2: Bank accounts are reconciled prior to the end of the month following receipt of the statement. All reconciliation's are now current.
In response to deficiency 3: The $11.2 Million of the reconciling items referenced ($16.7 Million) have been cleared. All remaining items are under review and will be cleared pending research verification.
In response to deficiency 4: A formal policy addressing the voiding of stale dated outstanding checks will be put into place during this fiscal year.
The Office of Treasury and Fiscal Services is currently reviewing all Department of Revenue bank accounts. Their recommendations will be taken under consideration.
Contact Person: Jeremie S. Peterkin, Controller Telephone: (404) 417-2213; E-mail: JPeterkin@gw.rev.state.ga.us
Finding Control Number: FS-474-01-02 REVENUESIRECEIV ABLES/RECEIPTS Deficiencies in the State Revenue Collections Fund (Overall)
We concur with this finding. This finding relates to the lack of a dual-entry accounting system for recording receipts and disbursements. The new revenue system was implemented on July 1, 2001 and was designed to function through the current statewide PeopleSoft Financial System. The following is a listing of the planned and completed corrective actions for the five deficiencies cited in finding FS-474-00-02:
In response to deficiency 1 and 2: These findings should not be applicable in FY 2002 with the implementation of the new revenue accounting system.
In response to deficiency 3 and 5: The Department plans to develop a comprehensive process for reconciling receipts to the general ledger. This plan will be developed in concert with the Audit Department during this fiscal year.
In response to deficiency 4: The Department recognizes its deficiencies in this area and we are looking into a more feasible and agreeable resolution to the problem.
Contact Person: Jeremie S. Peterkin, Controller Telephone: (404) 417-2213; E-mail: JPeterkin@gw.rev.state.ga.us
Finding Control Number: FS-474-01-03 REVENUES/RECEIVABLES/RECEIPTS Deficiencies in the Income Tax Division Subsidiary Records
We concur with this finding. However, the feasibility, practicality and financial responsibility of capturing withholding information for approximately 3 million (+) individual tax returns with present resources would be a shift in the strategic direction of the Department of Revenue.
F-55
0
0
0
Audltee's Corrective Action Plans
0
For the Ascal Year Ended June 30, 2001
0
0
0
The Department has existing income tax compliance programs with the Internal Revenue Service that are related to this issue. We also have compliance programs related to the business area. In addition, the Department is awaiting further
0
development of partnership between the Social Security Administration, Internal Revenue Service and other States. The
0
basic concept of this program would be for the Social Security Administration to capture the data and provide to States for
0
a fee. This type of program would be more financial responsible to capture the data than at the State level.
0
Last year, the Department did a limited manual sampling of comparing business W-2 information to individual tax returns.
0
This sampling indicated extremely low non-compliance. The Department has agreed, within budget restraints, to expand
this pilot program to a limited systematic matching of electronic W-2 information to mdividual filings.
0
0
Contact Person: Jeremie S. Peterkin, Controller
Telephone: (404) 417-2213; E-mail: JPeterkin@gw.rev.state.ga.us
0
0
GEORGIA STUDENT F1NANCE COMMISSION
0
Finding Control Number: FS-476-01-01
0
ACCOUNTING CONTROLS (OVERALL) Inadequate Controls Over the Design of the Local Area Network
0
0
Network Architecture - The network is designed to allow access by schools and the general public, however this
0
design also allows for potential access to servers that should not be accessible to the general public. A more secure
placement ofpublic web servers would be within a DeMilitarized Zone (DMZ) environment.
0
0
We concur with the finding.
0
Based on the findings and recommendations of the Georgia Department of Audits and Accounts
0
(DOAA) and the Georgia Technology Authority (GTA), all of the recommendations pertaining to the
Georgia Student Finance Commission (GSFC) Network were addressed in the short-term plan, and
0
completed and signed off, by both GSFC Information Technology (IT) staff and GTA on the following
0
dates:
0
Mail Server
- Placed in a DeMilitarized Zone (DMZ) environment
0
Web Server
9/14/01 - Placed in a DeMilitarized Zone (DMZ) environment
0
9/14/01
0
Unix Servers - Placed in a DeMilitarized Zone (DMZ) environment 9/27/01
0
RAS Server
- Disabled and De-Installed, 9/14/01
0
0
Change Control - The Georgia Student Finance Authority/Commission/Corporation did not have formal change
control policies and procedures. The primary functions of change controls are ( 1) to ensure that the change is
0
implemented in an orderly manner through formalized testing; (2) to ensure that users are informed of the impending
0
change; (3) to analyze the effect of the change on the system after implementation; and (4) to reduce the negative impact the change may have on the computing system and resources. From a security standpoint, the goal of change
0
control is to ensure that changes to the system do not unintentionally diminish security. Proper change control also
0
makes it possible to accurately roll back to a previous version of a system in the event a new system is found to be faulty.
0
0
We concur with the finding.
0
A formal Change Control Policy and Procedure was established November 26, 2001.
0
0
0
F-56
0
.._:;:f:: ..' ~ ~-- .'.' I
Audltee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
GSFC is working with GTA to implement an automated Help Desk/Change Management process which will improve the manual process currently in place. Anticipated implementation for the automated solution is December 31, 2002 .
Segregation of Duties - Application programmers, system administrators and program developers all had more access than was needed to perform their assigned functions. Additionally, programmers had access to production data and systems. Segregation of duties revolves around the concept that if parts of a task are assigned to different individuals, then no one individual would have total control of the system's security mechanisms, and no one single person could completely compromise the system It is very similar to the concept of "least privilege" which states that users should have the lowest level of rights and privileges necessary to perform their work, and only for the shortest length of time. Generally speaking, application programmers should work in a test environment only and should not move test versions into the production environment. Application programmers should have no access to production data. Program developers are responsible for maintaining the systems software including the operating system. This function may allow for unrestricted access to the entire system For this reason it is imperative that program developers keep logs of their work and only have access to system libraries of the specific software that they maintain. The system administrator is responsible for the technical and administrative control over the local area network. This includes ensuring transmission links are functioning correctly, backups of the system are occurring and software/hardware purchases are properly installed. The system administrator should have no application program responsibilities, but may have some end-user responsibilities.
We concur with the finding.
The responsibility for the technology operations of the Scholarships and Grants Division has been transferred to the Information Technology Division, as of December 3, 2001.
Since the transfer, application programmers do not have any more access than needed to perform their functions. In addition, a Chief Information Security Officer was hired on September 18, 2001, to monitor and report on all security related issues.
The IBM AS/400 disk capacity was upgraded on the developments system on January 5, 2002 to facilitate a test environment. In addition, new HP UNIX development systems were purchased to facilitate the moving of program source code and any required test data to a development environment. There is a project plan in place to complete the new configuration of these systems to promote a true test environment for Oracle development. This will eliminate the need for the application developers to access data on the production systems. Completion of this effort is scheduled for June 30, 2002 .
Segregation of duties is in force in the IT Division. Program developers are not responsible for maintaining operating systems. This is a function of the System Administrators, which do not have any application programming responsibilities. Access to systems is based on the rights and privileges necessary for each technical staff member to perform their work. Passwords for each system, application, and level of access are different, and are not shared amongst the staff. The passwords are changed every thirty days, and the master list of passwords is kept in a secure place and known only to the IT Director. The concept of "least privilege" is in place.
Logs are kept of all scheduled access required by our third party vendor application developers. This log is being expanded to also record the activity of all internal application developers. Completion of the expanded log is scheduled for February 28, 2002 .
Monitoring and Logging of Activities - There was no evidence that the organizations periodically monitored the network or host activities. Failed logon attempts (particularly to system administrator accounts) should be detected and reviewed .
F-57
0
0
0
Audltee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
We concur with the finding.
0
Intrusion detection software was installed September 24, 2001. The intrusion detection system will
0
monitor for any malicious or unusual activity and report any unusual activity to the Chief Information
0
Security Officer and Security Administrator.
0
Specialized software will be purchased in order to collect all data related to log-in attempts. This
0
software has the ability to provide reports for the Chief Information Security Officer. Projected completion is scheduled for June 30, 2002.
0
0
Network and System Identification - Routers and firewalls identified the system and/or manufacturer on initial telnet responses. This type of information may be utilized by potential hackers to gain unauthorized access to systems.
0
Every effort should be made to avoid disclosure of this information.
0
We concur with the finding.
0
0
New Checkpoint firewalls were installed on January 10, 2002. With the new firewalls only the existence of systems can be detected.
0
Vulnerabilities - Excessive services and settings were found on multiple servers. All services that are not required to
fulfill the functions of the Commission should be turned off thereby reducing the possibility of unauthorized access.
0 0
0
We concur with the fmding.
0
All of the services that were not required to fulfill the functions of the Commission were turned off as
0
of September 30, 2001.
0
A third party contract was initiated on October 16, 2001, to check the GSFC network for system
0
vulnerabilities. Findings are reported to the Chief Information Security Officer and Security
0
Administrator.
0
Contact Person: Corinne Simari, Division Director, Information Technology
0
Telephone: (770) 724-9300; Fax: (770) 724-9370; E-mail: corinne@mail.gsfc.state.ga.us
0
Finding Control Number: FS-476-01-02
0
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties
0
0
We concur with the finding.
0
A procedure was put into effect on July 23; 2001, to provide for a fmal review of each accounts payable check by a
0
separate individual. The procedure requires a review of documentation which consists of reconciling the number and total of checks processed against the check register and assuring that each check has all the appropriate documentation attached.
0
This procedure provides for adequate separation of duties associated with the cited control category. (Refer to ASD
0
Policies and Procedures Manual #041-501)
0
Contact Person: Herman Cox, Assistant Director, Accounting Services Division
0
Telephone: (770) 724-9108; Fax: (770) 724-9101; E-mail: hermanc@mail.gsfc.state.ga.us
0
0
0
0
0
F-58
0
Auditee's Corrective Action Plans For the Ascal Year Ended June 30, 2001
Finding Control Number: FS-476-01-04 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
We concur with the finding.
The Agency will complete a fixed asset physical inventory list that meets the requirements of state regulations by April 2, 2002 .
The Accounting Services Division (ASD) will ensure that the base inventory is reconciled to the general ledger accounts and will continue to maintain that reconciliation process on a regular basis.
A physical inventory count will be performed annually in accordance with the State Property Manual no later than May 31 51 of each year.
ASD will ensure that written procedures are in place so that each addition and deletion to the inventory list is accompanied by appropriate journal entries and proper documentation. Completion of the procedures is scheduled for June 30, 2002.
Contact Person: David Benner, Director, Budget/Administrative Services Division Telephone: (770) 724-9090; Fax: (770) 724-9089; E-mail: davidb@mail.gsfc.state.ga.us
Finding Control Number: FS-476-01-07 GENERAL LEDGER Failure to Reconcile General Ledger to Grant and Scholarship Subsystems
We concur with the finding.
The Scholarships and Grants Division will continue to work with the Accounting Services Division to investigate the variances identified in the Findings and either make corrections to the subsystems, ensure that proper refund is secured . from the institution or student, or make additional disbursements to the institution. This process should be complete by March 1, 2002.
The Scholarships and Grants Division and the Accounting Services Division will place into operations a procedure to ensure that the amounts awarded to students by the institutions and the amounts recorded in the "disbursements by institution" subsystem reconcile to the amounts recorded on the general ledger at the end of the award year. This procedure will be accomplished in two steps.
First, the Scholarships and Grants Division will reconcile with the institutions each year the programs listed below, by May 15th. (The programs in bold will be transferred to the State Loans Division by June 30, 2002. The State Loans Division will reconcile these programs with the institutions each year.)
Governor's Scholarship Program Leveraging Educational Assistance Program Law Enforcement Personnel Dependents Grant Public Safety Memorial Grant North Georgia College ROTC Grant Charles McDaniel Teacher Scholarship Robert C. Byrd Honors Scholarship North Georgia College Military Scholarship Georgia Military College State Service Scholarship Georgia Military Transfer Scholarship HOPE Teacher Scholarship PROMISE Teacher Scholarship PROMISE II Teacher Scholarship
F-59
Audltee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
Scholarship for Engineering Education Osteopathic Medical Loan
Currently, an end-of-the-year reconciliation is conducted with the institutions for the above programs, if the institution is receiving the funds from us electronically. The new procedure would provide such a reconciliation with each institution for each program, regardless of the method of receiving funds. Currently, all participating institutions must conduct an end-of-the-year reconciliation with the Scholarships and Grants Division for the Georgia Tuition Equalization Grant by Jone 15th and for the HOPE Scholarship Program by J u~y 15th, regardless of the method of receiving funds.
It should be noted that this new procedure will increase the administrative workload of the institutions. Funds will be withheld from institutions in order to ensure compliance.
Currently the Accounting Services Division provides the Scholarships and Grants Division with a report each month that lists refunds by program. This report will be modified so that it lists disbursements and refunds by institution and program to make the reconciliation with the institutions more expedient.
The Scholarships and Grants Division will work with the Information Technology Division to create a new report for the Accounting Services Division that will be run after the end-of-the-year reconciliations when the institutions are complete. This report will list each disbursement and refund for each institution and each program The Accounting Services Division will reconcile their records with the Scholarships and Grants Division's report within 30 days of receiving the report from the Scholarships and Grants Division.
The Scholarships and Grants Division will explore the idea of creating an invoicing system (electronic) where the institutions bill the Commission for students based on student charges at the institution as of the last drop/add date for the quarter or semester. Theoretically, this would eliminate the need for certification (reconciliation) at year-end and amounts disbursed would agree to students attending the various institutions. The following topics will need to be addressed as a part of this exploration:
In actual practice, this idea would not eliminate the need for a year-end reconciliation with the institutions. It is unrealistic to assume that the institutions would be able to bill IOO% accurately the Commission following the drop/add period. Some students apply late, or the institution must do extensive follow-up to verify eligibility such as residency, or academic transcripts may be received late for transfer students, or award amounts must be increased or decreased because of other aid, or human errors are made, and so forth.
It must be determined whether or not the University System of Georgia and the Department of Technical and Adult Education are able or willing to defer the students' charges until after the drop/add period each term.
The expense and time required to enact this idea may make it impractical. Computer programs written and perfected by the Commission and each participating institution during the past ten years would need to be re\\Titten. Training and experience of Commission's staff and the institutions' staff gained during the past ten years would have to be recreated.
If it is determined that this idea is feasible, the earliest it could be implemented would be FY 2004. The 103 institutions participating in the HOPE Scholarship Program would need at least a year to prepare for this change.
Contact Person: William Flook, Division Director, Scholarships and Grants Division Telephone: (770) 724-9050; Fax: (770) 724-9031; E-mail: flook@mail.gsfc.state.ga.us
F-60
0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0
0
0 0
0
0 0
o
0
0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Audltee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
Finding Control Number: FS-476-01-09 GENERAL LEDGER Failure to Reconcile Grant/Scholarship Refunds to the General Ledger
We concur with the finding.
The Scholarships and Grants Division, in conjunction with the Accounting Services Division, :will investigate the differences reported in this finding and establish procedures to reconcile refunds monthly between the general ledger and the "disbursements by institutions" subsystem by March 29, 2002.
The Scholarships and Grants Division is working with the Information Technology Division to create a new report that will provide detailed information on refunds. Once this report is available, the Scholarships and Grants Division will be able to reconcile refunds with the Accounting Services Division on a regular monthly basis.
Contact Person: Thomas A. Steinmetz, Acting Director, Accounting Services Division Telephone: (770) 724-9095; Fax: (770) 724-9101; E-mail: tas@mail.gsfc.state.ga.us
DEPARTMENT OF TRANSPORTATION
Finding Control Number: FS-484-01-01 GENERAL LEDGER Inadequacies in Control Over Manual Journal Entries
We were unaware until the time of the audit that manual journal vouchers resulted in entry only to the general ledger. Prior to late fall, 2001, adjustment vouchers were not taught to employees who attended PeopleSoft tr~ining classes. We were not advised during the audit of FY 2000 that manual journal vouchers were a problem
Now that we are aware of the problem and have been advised on adjustment voucher application the Department of Transportation is reversing all FY 2002 entries on manual journal vouchers where the entries should have been done on an adjustment voucher. If we had known this procedure could have been done and was required, adjustment vouchers would have been our business practice.
We feel that an audit finding for something that had been the standard practice and which was not questioned during last year's audit is a rather severe action.
Contact Person: Dawn Maddox, Assistant Transportation Accounts Manager Telephone: (404) 651-6797; Fax: (404) 463-3566; E-mail: dawn.maddox@dot.state.ga.us
Finding Control Number: FA-484-01-01 EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
In the past under the old CAMS cost accounting system and in the present fleet management system vehicles purchased with funds other than motor fuel taxes are easily recognizable by the equipment ID prefix.
Examples:
452 Prefix - HERO Trucks
80% Federal/20% State Funds
500 Prefix - Air Transportation Airplanes and vehicles
General Funds
F-61
0
0
0
Auditee's Corrective Action Plans
0
For the Ascal Year Ended June 30, 2001
0
0
0
600 Prefix - Intermodal vehicles
0
(Previously 1264 Prefix in CAMS)
100% Federal Funds
OR
0
80% Federal/20% Local Funds
0
(Depending on Type ofProgram)
0
The audit finding reads: "This review revealed that equipment inventory records for deletion of items originally purchased
0
with Federal funds were not maintained in a manner that could be tested."
0
Disposition of all DOT numbered equipment can be traced in the FleetAnywhere system and through paper files.
0
FleetAnywhere has recently been modified to utilize the acquisition tab in the Equipment Primary Information screen used to show the percentages of Federal, State, or local funds expended. DOT personnel from the Office of Equipment
0
Management monitor the sale of all surplus vehicles sold by DOAS. Federally funded vehicles are transferred to DOAS on
0
a separate transfer form (transfer form and invoice) with funding information noted. The entire disposition process from "Out of Service" to "Final Sale" is monitored by DOT personnel and tracked in FleetAnywhere.
0
0
Contact Person: Dawn Maddox, Assistant Transportation Accounts Manager Telephone: (404) 651~6797; Fax: (404) 463-3566; E-mail: dawn.maddox@dot.state.ga.us
0
0
GEORGIA INSTITUTE OF TECHNOLOGY
0
Finding Control Number: FS-503-01-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
0
0
We concur with this finding and corrective actions have been initiated to address the identified weaknesses. In addition, the Institute has taken action to implement a new Capital Asset Management System that will be operational on or before
0
June 30, 2002. The new system operating procedures and system control features will strengthen the controls over the
0
equipment inventory and help to insure that adequate documentation is maintained.
0
Contact Person: Henry Spinks, Controller
0
Telephone: (404) 894-6272; Fax: (404) 894-9135; E-Mail: henry.spinks@business.gatech.edu
0
Finding Control Number: FA-503-01-02
0
REPORTING
0
Reports Not Submitted in a Timely Manner Research and Development Cluster
0
0
We concur with this finding and recommendation. Prior to June 30, 2002, 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
0
submitted to the contracting agencies in a timely fashion:
0
I. The Office of Sponsored Programs (OSP) reviews all RFPs and solicitations to identify all contractual
0
deliverable requirements, which are reviewed with the proposed Project Director/Principal Investigator
0
(PD/PI) prior to proposal submission. If needed, this review is completed again, prior to acceptance of the agreement.
0
2. As soon as a new sponsored project is received, OSP reviews the agreement and prepares (for the PD/PI)
0
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
0
indicate concurrence. This record is then retained in the permanent contract file.
0
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.
0
4. OSP expanded efforts to provide a list of all project deliverable information to each PD/PI and all levels
0
of management within a unit via a web-based query tool.
0
F-62
0
Audltee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
~r_. i . ,. .
) .....:
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-503-01-03 REPORTING Failure to Submit Reports Required by Special Contract Provisions Research and Development Cluster
We concur with this fmding and recommendation. The Project Director responsible for managing this contract has stated that he plans to submit this report before March 28, 2002. Prior to June 30, 2002, a review will be performed to consider any possible actions to improve the efforts currently being made to ensure that all required contractual deliverables are submitted to the contracting agencies.
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-503-01-04 REPORTING Failure to Identify Required Reports Research and Development Cluster
We concur with this finding and recommendation. Prior to June 30, 2002, 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/Pl) 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/Pl 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.
F-63
0
0
0
Auditee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
7. Campus newsletter articles have been issued to emphasize the importance of timely deliverable
0
submission or the need to seek timely relief (extension of due date) from sponsors for required deliverables.
0
0
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
0
0
Finding Control Number: FA-503-01-05 REPORTING
0
Financial Reports Not Submitted in a Timely Manner
0
Research and Development Cluster
0
We concur with the fmding and recommendation concerning the completion of required reports in a timely manner.
0
Financial information for the period covered by the report identified was submitted in a subsequent quarterly report. Action has been taken during the current year to implement a new Grants and Contracts Accounting system which includes
0
features to prepare invoices and fmancial reports. Attention will be focused on the need to assure compliance with all
0
financial reporting requirements prior to June 30, 2002.
0
Contact Person: Charles T. Duffy, Director, Office of Grants & Contracts Accounting
0
Telephone: (404) 894-4819; Fax: (404) 894-7002; E-Mail: duane.hutchison@osp.gatech.edu
0
UNIVERSITY OF GEORGIA
0
0
Finding Control Number: FS-518-01-01
REVENUESIRECEIV ABLES/RECEIPTS
0
Inadequate Accounting Procedures
0
We concur with the auditor's fmding. The University of Georgia will take the following steps to address this issue:
0
0
The Senior Vice President for Finance and Administration will address this issue at the University's Annual Management Conference in February 2002, at which senior administrators will be present.
0
0
The Senior Vice President for Finance and Administration will address a letter to all vice presidents, deans, directors and department heads, emphasizing the requirement to deposit receipts and record
0
accounts receivables promptly.
0
The University's Internal Audit Staff will continue to test for timeliness of deposits during departmental
0
reviews, and will monitor and test year-end deposit activities to insure that revenue is credited to the
0
correct period.
0
Finding Control Number: FS-518-01-02
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Perform Annual Physical Equipment Inventory Count
0
0
We concur with the auditor's fmding. The following actions will be taken to address this issue:
0
The Senior Vice President for Finance and Administration will address this issue at the University's
0
Annual Management Conference in February 2002, at which senior administrators will be present.
0
The Senior Vice President for Finance and Administration will address a letter to all vice presidents,
0
deans, directors and department heads, emphasizing the necessity for all departments to conduct
0
equipment reviews and report to the Property Control Office.
0
0
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. ..
Auditee's Corrective Action Plans For the Ascal Year Ended June 30, 2001
Those departments identified as not having conducted an inventory for the prior year will be notified by letter that a report is due, and the Controller's Office will follow up to be sure that the process is complete .
Finding Control Number: FA-518-01-01
REPORTING
.
Financial Reports Not Properly Filed for Subrecipient Awards from the University of Georgia Research Foundation Inc.
University staff members responsible for preparing financial reports have been reminded to carefully review the financial reporting requirements of each project. Computerized lists are being generated to assist staff in assuring timely filing of Financial Reports.
Contact Person: Tracy Walters, Director of Contracts and Grants Department Telephone: (706) 542-6889; E-mail: twaltOl@arches.uga.edu
Finding Control Number: FA-518-01-02
REPORTING
.
Financial Reports Not Properly Filed for Federal Awards Direct to the University
University staff members responsible for preparing financial reports have been reminded to carefully review the financial reporting requirements of each project. Computerized lists are being generated to assist staff in assuring timely filing of Financial Reports. Interim reports shown as not filed have been completed and filed.
Contact Person: Tracy Walters, Director of Contracts and Grants Department Telephone: (706) 542-6889; E-mail: twaltOl@arches.uga.edu
ALBANY STATE UNIVERSITY
Finding Control Number: FS-521-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequate Accounting Procedures
We concur with this finding. The University has reviewed all of the procedures and controls identified in this finding. Where appropriate, the University has strengthened controls, procedures and review intervals and implemented changes in other processes where weaknesses were found.
Finding Control Number: FA-521-01-01 CASH MANAGEMENT Excessive Cash Balances
We concur with this finding. The University reviewed procedures and made the required changes to ensure that requests for cash draws do not exceed the intermediate need.
AUGUSTA STATE UNIVERSITY
Finding Control Number: FA-527-01-01 MATCHING, LEVEL OF EFFORT AND/OR EARMARKING Failure to Provide Institution Capital Contribution Student Financial Aid Cluster Program Federal Perkins Loan Program (CFDA 84.038)
We concur with this finding. The University failed to fully provide the required matching funds for the Federal Perkins Loan Program. The University under-matched the program by $798.00, which represents less than 1 percent of the funds disbursed under this program
F-65
r,
0
0
0
Audltee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
Steps have been taken to strengthen internal procedures to insure that copies of all award documents are forwarded from
0
the Financial Aid office to the Business Office in a timely manner. In addition, the Director of Financial Services will
monitor the process to insure that the correct matching occurs.
0
0
Contact Persons:
0
Kevin Wellwood, Director of Financial Aid
0
Phone: (706) 667-4176; Fax: (706) 737-1777; E-mail: kwellwoo@aug.edu
0
Angela Prettelt, Director of Financial Services
0
Phone: (706) 737-1767 Fax: (706) 667-4643; E-mail: aprettelt@aug.edu
0
CLAYTON COLLEGE AND STATE UNIVERSITY
0
Finding Control Number: FS-528-01-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Deficiencies in Accounting Procedures
0
We concur with this finding. Historic University fixed assets inventories are not reconcilable to accounting records.
0
University System efforts to comply with GASB Statements 34 and 35 included an independent evaluation of fixed and
0
capital assets, and infrastructure, that after verification by University officials will yield a true and complete inventory of
the Univer5ity's fixed assets. Adjustment of the University's accounting records to reflect the book value of assets
0
according to the new inventory will reconcile the two systems. Adjusted asset management procedures using integrated
0
accounting, purchasing and fixed assets management software (PeopleSoft), and bar coded asset tags will provide a
mechanism through which University staff can properly maintain inventory records.
0
0
Contact Person: J. Blake Lanier, Director of Business Services Telephone: 770.961.3602; Facsimile: 770.961.3769; E-mail: blakelanier@mail.clayton.edu
0
0
FORT VALLEY STATE UNIVERSITY
0
Finding Control Number: FS-533-01-05
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Investment in Plant
0
Inadequate Equipment Inventory Records
0
We concur with this finding. The University has established procedures to ensure that equipment inventories are properly
0
maintained. The Office of Auxiliary Services will be conducting a detailed physical inventory of the University's
0
equipment, which will be completed by April 30, 2002. This will be in addition to the current physical inventory conducted by American Appraisal Associates (AAA) for the PeopleSoft Financials conversion. The scheduled date for
0
completion of this physical inventory is March 4, 2002. The combined results of these two (2) physical inventories along
0
with continued updating of current inventory files will ensure that the university assets are maintained and accurately
0
reconciled to the university accounting records. This will place the university in compliance with its policy of conducting a
physical inventory every two years.
0
0
Further, the new director and staff of Auxiliary Services have implemented control measures to ensure that all university
personnel adhere to proper procedures when transferring or disposing of inventory items. They include:
0
0
Monthly inspections of inventory items. Requiring official campus forms to be completed and signed by the proper officials prior to inventory
0
items being transferred.
0
Designating an individual in each department to maintain inventory in their area. Working with Plant Operations to ensure all surplus equipment is properly stored until disposal or
0
destruction.
0
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Audltee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
Contact Person: Randall Bigham, Director of Auxiliary Services Telephone: (478) 825-6190; Fax: (478) 827-3052; E-mail: bighamr@mail.fvsu.edu
Contact Person: Barbara W. Hwnphrey, Acting Vice President for Business and Finance Telephone (478) 825-6400; Fax: (478) 825-6089; E-mail: humphryb@mail.fvsu.edu
Finding Control Number: FA-533-01-01 CASH MANAGEMENT Excessive Cash Balances Student Financial Aid Cluster Program
We concur with this finding. The University will inform the Department of Education of this error and the resulting excess funds that was drawn. The Accounting Services supervisor will be instructed to reconcile the total number of Banner journal entries to the Banner accounting feeds on a monthly basis to ensure that this situation does not reoccur.
Contact Person: Barbara W. Hwnphrey, Acting Vice President for Business and Finance Telephone (478) 825-6400; Fax: (478) 825-6089; E-mail: humphryb@mail.fvsu.edu
Finding Control Number: FA-533-01-02 ELIGIBILITY Failure to Maintain Adequate Documentation Student Financial Aid Cluster Program Questioned Cost: $11,000.00
We do not concur with this finding. The Financial Aid Office does not participate in the Federal Family Education Loan Program (FELP) which requires that a student's file contain a copy of the PLUS loan application. However, we do participate in the Direct Loan Program, which only requires that certification information submitted electronically be made available upon request. A copy of the electronic transmission of the PLUS Loan and original application was in the student's file at the time the auditors did their examination.
Contact Person: Edward Boston, Interim Director of Financial Aid Telephone (478) 825-6609; Fax: (478) 825-6976; E-mail: finaid-dept@mail.fvsu.edu
Finding Control Number: FA-533-01-03 ELIGIBILITY Failure to Notify Students of Awards Student Financial Aid Cluster Program Questioned Cost: $10,017.82
We concur with this finding. The Office of Financial Aid has implemented the following procedures.
Student requests will be placed in the files to support revisions of the original award. The copy of the revised award letter will also be retained.
The Payroll Office will provide the work-study coordinator with an individual earning report for each student on a quarterly basis. This report will be used to compare earnings to date with the award amount.
The Director of Financial Aid will perform a periodic review of student files to ensure that the required documentation is on file.
Contact Person: Edward Boston, Interim Director of Financial Aid Telephone (478) 825-6609; Fax: (478) 825-6976; E-mail: finaid-dept@mail.fvsu.edu
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0
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Auditee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
Finding Control Nwnber: FA-533-01-04
0
ELIGIBILITY
Undocumented Changes to Student Information
0
Student Financial Aid Cluster Program
0
Questioned Cost: $3,784.00
0
We do not concur with this finding. The documentation for one of the students in question was not in the file. However,
0
procedures are currently in place to track documents as they are received in the Financial Aid office. The office manager has been assigned the responsibility of monitoring and maintaining the accuracy of the student files. Also, financial aid
0
counselors will review each file to ensure that all documents requested are a part of the file before .it is released to the
0
office manager.
0
We contend that proper documentation was present for the second student. Federal regulations allow a depended student to
0
receive funds from the Unsubsidized Stafford Loan Program, if the parent is denied a PLUS Loan. In this case, the parent was denied the PLUS Loan. Upon notification that the PLUS Loan had been denied, the student asked for and was
0
awarded funds from the Unsubsidized Stafford Loan Program The copy of the PLUS Loan application was in the
0
student's file. In addition, an electronic copy of both the PLUS Loan and the unsubsidized loan were on file.
0
Contact Person: Edward Boston, Interim Director of Financial Aid
0
Telephone (478) 825-6609; Fax: (478) 825-6976; E-mail: finaid-dept@mail.fvsu.edu
0
Finding Control Number: FA-533-01-05
0
REPORTING Expenditures in Excess ofAuthorization
0
Student Financial Aid Cluster Program
0
We concur with this finding. The University will compile a detailed list showing names of each student represented in the
0
$9,976.75. This list will be forwarded in the U.S. Department of Education in order for the excess expenditures to be
0
reimbursed.
0
Contact Person: Edward Boston, Interim Director of Financial Aid
0
Telephone (478) 825-6609; Fax: (478) 825-6976; E-mail: finaid-dept@mail.fvsu.edu
0
Finding Control Number: FA-533-01-06
0
REPORTING
0
Reports Not Reconciled
Student Financial Aid Cluster Program
0
0
We concur with this finding. The following procedures have been implemented to ensure that all programs are reconciled
at the end of the fiscal year. The Financial Aid Director will ensure that the total disbursements per fmancial aid's records
0
are in agreement with the general ledger prior to the submission of the FISAP report. Any discrepancies or errors noted
0
after the initial transmission will be corrected in the FISAP edit report prior to December 15th as allowed by the U.S. Department of Education. A copy of the documentation that supports the reconciliation will be on file and available for
0
review in either the office of Financial Aid or the office of the Vice President for Business and Finance.
0
Our interpretation of Section 2 of The Blue Book is that a formal reconciliation is not required on a monthly basis.
0
Procedures are not in place to ensure that Direct Loan (LOC, financial aid and accounting records) and Pell Grant
0
reconcilia.tions are completed in a timely manner and documented.
0
Copies of the reconciliation will be retained in the offices of Financial Aid and Business and Finance.
0
Contact Person: Barbara W. Humphrey, Acting Vice President for Business and Finance
0
Telephone (478) 825-6400; Fax: (478) 825-6089; E-mail: humphryb@mail.fvsu.edu
0
0
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~-.. ~"
Auditee's Corrective Action Plans For the Ascal Year EndedJune 30, 2001
Contact Person: Edward Boston, Interim Director of Financial Aid Telephone (478) 825-6609; Fax: (478) 825-6976; E-mail: finaid-dept@rnail.fvsu.edu
GEORGIA SOUTHERN UNIVERSITY
Finding Control Number: FS-539-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation of Property Management System
Executive management of the institution has taken the necessary actions to implement Equipment Inventory Policies and Procedures to adequately strengthen internal accounting controls and ensure that assets are safeguarded against loss from unauthorized use or disposition. The campus community has been adequately informed of the necessity to implement these policies and procedures into daily operating procedures. We will implement these policies and procedures to the fullest extent possible. However, we have learned since the implementation of the University System of Georgia PeopleSoft Financial Asset Management System that the model is lacking in effective functionality to fully implement newly developed procedures to achieve the above stated goals of ensuring adequate internal controls over equipment inventory at this time. We have reported known issues to the University System of Georgia implementation office and are awaiting resolution. It is certainly our hopes that all issues will be resolved in adequate time to fully implement the institution's Equipment Inventory Policy and Procedures by the close of fiscal year 2002. While we believe the outstanding issues will be resolved, we are reluctant to provide full assurance on finding resolution until we have been provided with a fully functional equipment management system. At this point we will implement to the fullest extent available to the institution the operational procedures necessary to support adequate and effective internal controls and continue to seek local solutions to inadequacies in the model system.
Contact Person: Kim Thompson, Controller Telephone: (912) 681-5224; Fax (912) 681-0196; E-mail: kthompson@gasou.edu
SAVANNAH STATE UNIVERSITY
Finding Control Number: FS-548-01-01 ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties
Response: Concur
A re-organization, started in the Fall of 2001, continues to evolve in conjunction with management's ongoing review of duties and responsibilities. Re-organization should be completed by Summer of2002.
Contact Person: Thelma Harris, Coordinating Director for Business & Finance Telephone (912) 356-2414; Fax: (912) 353-5199; E-mail: harrist@savstate.edu
Finding Control Number: FA-548-01-01 ACTIVITIES ALLOWED OR UNALLOWED Improper Activity Higher Education - Institutional Aid (CFDA 84.031)
Response: Do not concur.
Funds were expended for Image Building activities as approved by the Department of Education. The DOE in its Jeter of December 7, 2001, has allowed expenditures incurred due to obligations made prior to June 27, 2001. Since the funds were obligated prior to June 27, 2001, all expenditures as a result of that encumbrance are allowable. The Institution will further contact the DOE to obtain additional documentation in an effort to resolve this issue .
F-69
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0
0
Audltee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
Contact Person: Mestewat Alemayehu, Director, Budget, Contracts & Grants Telephone: (912) 353-3043; Fax: (912) 353-3188; E-mail: mestewat@savstate.edu
0
0
Finding Control Number: FA-548-01-02
0
ALLOWABLE COSTS/COST PRINCIPLES
Excessive and Improper Expenditures
0
Higher Education - Institutional Aid (CFDA 84.031)
0
Questioned Cost: $117, 179.08
0
Response: Do not concur.
0
These expenditures were made in accordance with the scope of activities for each program as approved by the Department
0
of Education. The Institution will contact the funding agency to obtain documentation that will resolve this issue.
0
Contact Person: Mestewat Alemayehu, Director, Budget, Contracts & Grants
0
Telephone: (912) 353-3043; Fax: (912) 353-3188; E-mail: mestewat@savstate.edu
0
Finding Control Number: FA-548-01-03
0
ALLOWABLE COSTS/COST PRINCIPLES
0
Time and Effort Report Deficiencies Higher Education - Institutional Aid (CFDA 84.031)
0
0
Response: Concur.
0
The Office of Budget, Contracts & Grants is working very closely with the Office of Graduate Studies and Sponsored
0
Research to ensure that time and effort reports are properly completed and submitted on a timely basis. Written procedures will be completed and implemented prior to the end of this fiscal year.
0
0
Contact Person: Mestewat Alemayehu, Director, Budget, Contracts & Grants Telephone: (912) 353-3043; Fax: (912) 353-3188; E-mail: mestewat@savstate.edu
0
0
Finding Control Number: FA-548-01-04 ELIGIBILITY
0
SPECIAL TESTS AND PROVISIONS
0
Deficiencies in Internal Controls
0
Student Financial Aid Cluster Program
0
Response: Concur.
0
This matter is under investigation; no projected date of completion as of yet.
0
0
Contact Person: Thelma Harris, Coordinating Director for Business & Finance
Telephone (912) 356-2414; Fax: (912) 353-5199; E-mail: harrist@savstate.edu
0
0
Finding Control.Number: FA-548-01-05 EQUIPMENT AND REAL PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
Higher Education - Institutional Aid (CFDA 84.031)
0
Response: Concur.
0
1) The University is converting to PeopleSoft inventory software in May of 2002 which will address the problem of
0
Federal grant award number inclusion in the inventory listing.
0
2) A new procedure for equipment disposal is in place to address notification of proper Federal agencies.
0
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.-:
Auditee's Corrective Action Plans For the Ascal Year Ended June 30, 2001
Note: The University does perform equipment physical inventory every two years.
Contact Person: Alfred Brown, Interim Director, Business Services Telephone: (912) 356-2414; Fax: (912) 353-5199; E-mail: browna@savstate.edu
Response: Concur
3) The University's Title III office will verify future listings for accuracy.
Response: Do not concur.
4) These units are part of the Title III funded Achievement Lab. The lab was physically located at two sites: the second floor of the Library and within the NROTC building. The Activity Director was James Scott who can verify this.
Contact Person: Thomas Hines, Director, Title III Programs Telephone: (912) 353-3210; E-mail: hinest@savstate.edu
Finding Control Number: FA-548-01-06 SPECIAL TESTS AND PROVISIONS Deficiencies in Student Financial Aid Refund Process Student Financial Aid Cluster Program Questioned Costs: $10,809.60
Response: Concur.
Procedures have been put in place to calculate and return funds in a timely manner. The University is in the process of calculating the amount of funds to be returned for the year under review. University personnel have been assigned specific tasks to ensure we are in compliance.
Contact Person: Janice Allen, Director of Speci11l Projects Telephone: (912) 353-3044; Fax: (912) 353-3188; E-mail: allenj@savstate.edu
Finding Control Number: FA-548-01-07 PERIOD OF AVAILABILITY Deficit Fund Balances . Student Financial Aid Cluster Program
Response: Concur.
The Office of Budget, ContractS & Grants is working diligently to reconcile the carry over deficit balances of PELL and Direct Lending Programs. It is projected that all prior year financial aid account balances will be reconciled by FY 2003.
Contact Person: Mestewat Alemayehu, Director, Budget, Contracts & Grants Telephone: (912) 353-3043; Fax: (912) 353-3188; E-mail: mestewat@savstate.edu
ATLANTA METROPOLITAN COLLEGE
Finding Control Number: FA-561-01-01 REPORTING Failure to Reconcile Program Reports Federal Pell Grant Program (CFDA 84.063)
The reconciliation process for the $34,272.16 discrepancy is currently in progress and the college plans to resolve the discrepancy before June 30, 2002. In addition, the following procedures have been implemented to ensure that in the
F-71
0
0
0
Auditee's Corrective Action Plans
0
For the Fiscal Year Ended June 30, 2001
0
0
0
future all financial aid programs are reconciled at the end of the fiscal year: Directors of the Financial Aid and Accounting
0
Services will work together to verify that records in the office of Financial Aid concerning total disbursements are in agreement with the general ledger prior to the submission of the FISAP reports. Any discrepancies or errors that might be
0
noted after the initial transmission will be corrected in the FISAP edit report prior to December 15th as allowed by the
0
United States Department of Education. A copy of the documentation supporting that reconciliation will be on file and available for review in both the offices of the Financial Aid and Fiscal Affairs.
0
0
Contact Person: Vera Brooks, Director ofFinancial Aid Telephone: (404) 756-4442; Fax (404) 756-4834; E-mail: vbrooks@amcmail.atlm.peachnet.edu
0
0
GEORGIA MILITARY COLLEGE
0
Finding Control Number: FS-590-01-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
We concur with this finding. The College will continue to seek funds necessary to obtain outside, professional assistance
0
to properly assess the valuation of the older buildings owned by Georgia Military College.
0
Contact Person: Ms. Susan V. Meeks, Controller
0
Telephone: (478) 445-2677; Fax: (478) 445-2688; E-mail: smeeks@gmc.cc.ga.us
0
OKEFENOKEE TECHNICAL COLLEGE
0
Finding Control Number: FA-818-01-01
0
ACTIVITIES ALLOWED OR UNALLOWED
0
MATCHING, LEVEL OF EFFORT, EARMARKING Improper Expenditure of Vocational Education Funds
0
Vocational Education - Basic Grants to States (CFDA 84.048)
0
Questioned Costs: $102,129.32
0
We do not concur with this finding.
0
0
The State Audit Department conducted a specific and thorough review of Perkins funds at Okefenokee Technical College
("OTC") as part of the yearly review for FY2001. Our College's President received and signed concurrence with a letter
0
from the Department of Audits and Accounts dated November, 2001 indicating that there were no findings. This
0
information was relayed to the Local Board of Directors. The Audit Department has been aware for several years that the Financial Aid Director was being funded from Perkins funds and that OTC possessed written communication from
0
USDOE approving this. There has been no change in facts regarding the funding of this position to warrant this finding.
0
On February 7, 2002, the Vice President of Administrative Services received this finding via e-mail communication. On
0
February 20, 2002, instructions for completing a Corrective Action Plan were e-mailed to the Vice President, along with a
0
request for this Plan by February 28, 2002, as the print deadline for the Single Audit was approaching. Other than this email, no written notification ofthe change in audit status was sent to OTC. Nor was an explanation for this change sent to
0
OTC. We believe, had OTC been notified in a timely fashion of this audit finding, there would have been time to contact
0
U.S. Department of Education ("US DOE") and Georgia Department of Education ("GADOE"), and any questions as to these costs could have been clarified, resulting in no need for publishing these items as questioned costs. The timing of the notice of this finding prevented OTC from an open discussion with the auditor, the grantor (US DOEd), and designated
0
c
state fund recipient (GADOE) about potential suitable and acceptable solutions to this situation.
c
Regarding the audit finding portion relating to the Financial Aid position, OTC requested clarification from US DOEd in
c
June of 1999 on its eligibility for funding from Perkins funds, as well as an answer to the question of supplanting. July 1, 1999, OTC received correspondence from US DOEd which indicated that funding this position from Perkins funds was allowed for our school, based on the fact that our school exclusively served vocational students and other factors
c c
F-72
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' . ..... . ~ . ' " .
Auditee's Corrective Action Plans For the Fiscal Year Ended June 30, 2001
specifically discussed both in writing and over the phone. Indeed, our school's existence is to train students for vocations and to help find them work. US DOEd also found this position eligible as our coordinator was providing "services" to special population students. With regard to the issue of supplanting, US DOEd found that this did not occur, as the financial aid position has always been funded with Perkins. (It should be noted that our school has more than one staff member administering financial aid; however, the Coordinator is the only Perkins funded position.) Also, OTC sees no conflict with the interpretation of 34CFR 668.15 and .16 because this and the Participation agreement only indicate that the school is responsible for finding funds to administer Student Financial Aid, and can't use Pell and College Work Study funds (except the $5 per student Pell Administrative fee and any other Administrative Cost allowances) to administer Student Financial Aid. There is no requirement to use only local funds (as opposed to Federal) for administering Student Financial Aid. Financial Aid staff with the US DOEd has verbally confirmed this with staff of the Georgia Department of Technical and Adult Education ("DTAE") as well. Last, US DOEd noted in their correspondence that funding the Financial Aid position from Perkins appeared to be allowed under the new 'mandates and permissives' of the Carl D. Perkins Act of 1998.
With regards to the portion of the finding on the allowabilitY of Perkins funding for the pos1t:ton designated "Registrar/Management Information System (MIS) Coordinator", a significant part of the responsibilities and duties for this position is our PAS (Performance Accountability System) and Institutional Effectiveness. Therefore, the funding of this position is clearly allowable based on the Carl D. Perkins Act of 1998. The new Perkins Act differs from the Carl D. Perkins Act of 1990 cited by the auditor. In general, each eligible recipient must use federal funds to improve vocational and technical education programs. Local programs are required to use the funds for specified mandated activities. Specifically the position in the audit finding is tied to the mandate that Local Education Agencies ("LEAs") "develop and implement evaluations of the vocational and technical education programs carried out with funds under this title, including an assessment of how the needs of special populations are being met" Title I, Part C, Sec. 135 (b) (5). The vast majority of this position's duties are evaluating institutional and program effectiveness and performing duties that result in generating information for use in evaluating institutional and program effectiveness, including preparing all the IPEDS and Performance Accountability Reports, as well as generating a myriad of other management information. OTC is in the process of changing this position's title and job description to more clearly indicate the functions of the job, as part of the DTAE system wide task of standardization ofjob descriptions. Hopefully, this will clarify the eligible activities.
The Carl D. Perkins Act of 1998 does not require that all funded activities pertain to 1) providing vocational education in programs that are effective and integrate academic and vocational courses and 2) providing for the equitable participation of members of special populations in vocational education so these populations have an opportunity to enter vocational education that is equal to that afforded to the general student population as cited in the audit f"mding. This is a change from the previous legislation of 1.990 cited by the Audit Department. OTC believes that this position meets the requirements for eligibility of Perkins funding .
OTC believes that management did consider Federal regulations governing the use of Vocational Education funds for allowable activities and the Federal provisions dealing with the "supplement versus supplant" rule, and OTC specifically sought the advice of US DOEd in consideration of the regulations. It was this consideration and consultation that led us to continue 'to fund the Financial Aid Coordinator and to add the newly created Registrar/Management Information System (MIS) Coordinator to Perkins funding.
Contact Person: Pamela Farr, Vice President of Administrative Services Telephone: (912) 287-5842; Fax: (912) 287-4865; E-mail: farr@okefenokeetech.org
WEST GEORGIA TECHNICAL COLLEGE
Finding Control Number: FS-819-01-02 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequate Property Management Procedures
We concl.ir with this finding. West Georgia Technical College will perform a formal reconciliation of activity in the Asset Management System in FY2002. Accounting personnel will review inventory records to determine the proper recording of
F-73
0
0
0
Audltee's Corrective Action Plans
0
For the Ascal Year Ended June 30, 2001
0
0
0
equipment items. Controls will be established to ensure that equipment inventories are maintained in accordance with the
0
State Property System Manual. The Accounting Manager is responsible for inventory reconciliation.
0
Contact Person: Dianne Parrish, Accounting Manager
0
Telephone: (706) 845-4323: Fax: (706) 812-5613 Email: dparrish@westga.tec.ga.us
0
ATLANTA TECHNICAL COLLEGE
0
Finding Control Number: FS-823-01-01
0
CASH AND CASH EQUIVALENTS
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Deficiencies in Accounting Procedures
0
0
CASH AND CASH EQUIVALENTS
0
We concur with this finding. Bank reconciliations are currently being done monthly for all accounts. The SGA account
0
has been closed. Items which were carried from the past reconciliations have been cleared. Outstanding items were
0
properly documented monthly.
0
Contact Person: Marion Davis-Barnett, Vice President Administrative Services
0
Telephone: (404) 756-3711; Fax (404) 756-0932; E-mail: mbamett@adminl.atlanta.tec.ga.us
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
We concur with this finding. A complete physical inventory was taken at the end of this fiscal year. The inventory listing
0
was corrected to reflect the changes. In addition, items previously carried on inventory with a value less than the prior
0
inventory threshold of $1,000 were removed from the listing. In the future, in addition to taking a physical inventory, we will incorporate procedures to test the accuracy of the listing.
0
0
Contact Person: Marion Davis-Barnett, Vice President Administrative Services Telephone: (404) 756-3711; Fax (404) 756-0932; E-mail: mbamett@adminl.atlanta.tec.ga.us
0
0
DEKALB TECHNICAL COLLEGE
0
Finding Control Number: FS-830-01-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Inadequacies in Operation of Property Management System
0
We concur with this finding. DeKalb Technical College is in the process of reconciling its internal property management
0
records with the Assets Management system of the State of Georgia. Guidelines are in place to ensure that appropriate
procedures for maintaining the equipment inventory are in accordance with State laws and regulations.
0
0
Contact Person: John Buell, CIO/Comptroller
Telephone: (404) 297-9522, ext. 2123; Fax: (404) 298-3614; E-mail: buellj@dekalbtech.org
0
0
GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION
c
Finding Control Number: FA-918-01-01
c
REPORTING
c
Data Submitted to ED not Supported by the Records
c
The Corporation will continue to work with lenders to obtain portfolio updates on loans that they are holding.
c
c
F-74
c
:. . . . . . . . . . .
. Audltee's Corrective Action Plans For the Ascal Year Ended June 30, 2001
Finding Control Number: FA-918-01-02 REPORTING Data Submitted to ED not Supported by the Records
Procedures have been implemented to ensure that the U.S. DOE Form 2000 (the replacement report for the U.S. DOE Form 1130) is reviewed for correctness prior to submission.
Finding Control Number: FA-918-01-03 REPORTING Loan not Properly Assigned
The Corporation has corrected the interest rate on this loan and will review all loans in its portfolio that were converted from the legacy system with a "0%" interest rate and assign the appropriate interest rate.
GEORGIA PUBLIC TELECOMMUNICATIONS COMMISSION
Finding Control Number: FS-977-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Control Over Third Party Tower Rental
We do not concur with this fmding. The only group of contracts not standardized in FY 2001 pertained to the Commission's controls over tower space rental contracts. A consulting firm was hired to begin the process of documenting the inventory of tenants, the status of each tenant's contract and the amount of revenue associated with each contract. However, the Georgia Technology Authority (GTA) which has been established to have jurisdiction over many state government technology operations including the operation of GPB's broadcast towers has requested in writing that GPB refrain .from establishing new operating leases for non-GPB owned antenna equipment mounted on these towers. As a result of this request GPB has suspended all contract negotiations with current vendors.
Contact Person: Bonnie Bean, Chief Financial Officer Telephone: (404) 685-2652; fax: (404) 685-2407; E-mail: bbean@gpb.org
NORTHWEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8504-01-01 GENERAL FIXED ASSETS/PROPERTY 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 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@doe.kl2.ga.us
NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8524-01-02 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
We concur with this finding. North Georgia RESA does not maintain a general fixed assets 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.
F-75
0
0
a
Audltee's Corrective Action Plans
a
For the Fiscal Year Ended June 30, 2001
0
0
0
Contact Person: Larry Harmon, Executive Director
0
Telephone: (706) 276-1111; Fax (706) 276-1114; E-mail: lharmon@ellijay.com
0
Finding Control Number: FA-8524-01-01
0
ALLOWABLE COSTS/COST PRINCIPLES Improper Indirect Cost Expenditures
0
Vocational Education - Basic Grants to States (CFDA 84.048)
0
Amount: $12,628.77
0
We do not concur with this finding. North Georgia RESA provided enumerable services to Vocational-Technical
0
Education in the areas of State Administration, Leadership, and the Georgia Vocational Staff Development Consortium. The agreed upon and approved rate for providing these services to Vocational-Technical Education was 6.9% of the total
0
grant for State Administration and Leadership, and 7.45% for the Georgia Vocational Staff Development Consortium. The
0
agreed upon rates are documented by signed DE0448 grant budgets. These grant budgets were approved by the RESA official, the Vocational-Technical Education official, and the Grants Accounting official.
0
0
Paragraph three of the audit finding states that, "The GDOE approved rate of 8.56% would have been permitted if the RESA carried out all of the program services and administrative functions for these three program activities instead of
0
merely acting as a fiscal agent." In reference to the Georgia Vocational Staff Development Consortium for FYO1, RESA
0
was responsible for all program services and administrative functions. The Executive Director of GVSDC was contracted by RESA. Employees were hired and housed by North Georgia RESA. The website was housed and maintained by
0
RESA. Contracts with staff development providers were entered into on behalf of the consortium by RESA. All financial
0
information for the consortia was maintained by RESA and provided to the board of directors of GVSDC.
0
Currently the Georgia Department of Education has requested a review of this finding by the U.S. Department of
0
Education.
0
Contact Person: Larry Harmon, Executive Director
0
Telephone: (706) 276-1111; Fax (706) 276-1114; E-mail: lharmon@ellijay.com
0
Finding Control Number: FA-8524-01-02
0
CASH MANAGEMENT
0
Excessive Cash Balances
Vocational Education - Basic Grants to States (CFDA 84.048)
0
Amount: $2,778.45
0
We do not concur with this finding. North Georgia RESA must requisition these funds based on projected expenditures
0
and project ending dates. The DOE only allows for requisition of funds on a monthly basis. The system does not allow for
0
adjustments to requisitions. The cash balance as of the last day of the month does not give a true picture of funds available at North Georgia RESA.
0
0
Contact Person: Larry Harmon, Executive Director Telephone: (706) 276-1111; Fax (706) 276-1114; E-mail: lharmon@ellijay.com
0
0
METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY
0
Finding Control Number: FS-8564-01-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Failure to Maintain General Fixed Assets Account Group
0
A concentrated effort was made in FY 01 to comply with the Corrective Action Plan that was given as respects to the FY
0
00 audit finding. A report of all inventories and a report of items costing $1,000.00 and over were compiled. The auditor in charge reviewed the general fixed assets list presented by Metro RESA and deemed them unacceptable. The auditor in
a
0
F-76
0
.......,.t....1--~ _:.,.
Audltee's Corrective Action Plans For the Ascal Year Ended June 30, 2001
charge did not accept the general fixed assets report because the acquisition cost for each inventory item was not separately stated and there were no RESA tag numbers on the list.
The general fixed assets list will be fine-tuned to meet the above requirements (actual cost or estimated cost and the inclusion of the RESA tag numbers).
Contact Person: Charlene Williams, Accounting Manager Telephone: (404) 352-2697; E-mail: charlene@mresa.org
WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8604-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
West Georgia RESA concurs with this finding. It is the decision of the Board of Control that West Georgia RESA not address findlng control number FS-8604-01-01 at the present time. The Board encourages the Department of Education to provide leadership and appropriations for RESA's in maintaining the General Fixed Assets Account Group. West Georgia RESA will continue to seek resources to accomplish this task.
OCONEE REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8664-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
We concur with this finding. The following information shows our corrective action plan for all audit findings and improper questioned costs:
The management of a General Fixed Assets Account Group is not an accessible accounting procedures at the present time due to this function being inoperative in our accounting system that is proved 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 General 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 an update to the PC Genesis accounting software maintained by GDOE and/or the acquisition of a new accounting software package.
Contact Person: Frieda Brinson, Business Manager Telephone: (478) 552-5178 ext. 227; Fax: (478) 552-0446; E-mail: fbrinson@doe.kl2.ga.us
CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY
Finding Control Number: FS-8724-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group
Chattahoochee-Flint RESA had begun work on eliminating this finding following the FY 2000 Audit. However, our Migrant Education Program relocated, which meant several of our offices changed places. We were in the process of taking inventory in individual offices and tracing the cost back to original purchase date, when possible. We will continue working on this during the current fiscal year and hopefully eliminate this finding during the FY 02 Audit.
F-77
0
0
0
Auditee's Corrective Action Plans
0
For the Flscal Year Ended June 30, 2001
0
0
0
Contact Person: Meredith Walker, Executive Director
0
Telephone: (229) 937-8341; E-mail: mewalker@doe.kl2.ga.us
0
HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
0
Finding Control Number: FS-8764-01-01
0
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Failure to Maintain General Fixed Assets Account Group
0
Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the
O
Board has decided not to pursue the recording of general fixed assets on the financial statements.
0
Contact Person: June D. Bradfield, Executive Director
0
Telephone: (478) 374-2240; E-mail: june@lightwood.com
0
FIRST DISTRICT REGIONAL EDUCATIONAL SERVICE AGENCY
0
0
Finding Control Number: FS-8804-01-01 GENERAL FIXED ASSETS/PROPERTY MANAGEMENT
0
Failure to Maintain General Fixed Assets Account Group
0
We concur with this finding. At present, Georgia Department of Education has not implemented a General Fixed Assets
0
Account Group in our accounting system. We will work with the Department in resolving this finding.
0
Contact Person: Donna Mangrum, Financial Officer
0
Telephone: (912) 842-5000; Fax: (912) 842-5161 ; E-mail: dmangrum@mail.first-district.resa.kl2.ga.us
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
F-78
0
Listing of Organizational Units Comprising the State of Georgia Reporting Entity For the Fiscal Year Ended June 30, 2001
ORGANIZATIONAL UNIT
Administrative Services, Department of Agricultural Exposition Authority, Georgia Agriculture, Department of Agrirama Development Authority, Georgia Audits and Accounts, Department of(*) Aviation Hall ofFame, Georgia Banking and Finance, Department of Building Authority, Georgia
Regular(*) Hospital (*) Markets(*) Penal(*) Community Affairs, Department of Community Health, Department of(*) Correctional Industries Administration, Georgia Corrections, Department of Defense, Department of Development Authority, Georgia (*) Education, Department of Education Authority, Georgia Schools(*) University (*) Environmental Facilities Authority, Georgia(*) Financing and Investment Commission, Georgia State (*) Forestry Commission, State Games Commission, State General Assembly, Georgia(*) Georgia Technology Authority Golf Hall ofFame Authority; Georgia Golf Hall of Fame Board, Georgia. Governor, Office of the Higher Education Assistance Corporation, Georgia (*) Highway Authority, Georgia Housing and Finance Authority, Georgia (*) Human Resources, Department of Industry, Trade and Tourism, Department of Insurance, Department of International and Maritime Trade Center Authority (*) Investigation, Georgia Bureau of Jekyll Island State Park Authority Judicial Branch Juvenile Justice, Department of Labor, Department of Lake Lanier Islands Development Authority Law, Department of Lottery Corporation, Georgia (*) Music Hall of Fame Authority, Georgia Natural Resources, Department of
CONTROL
NUMBERS
401 926 402 940 404 483 406
900 903 904 905 428 419 921 467
411
914 414
906 907 928 409 420 496 445 980 999 958 422 918 924 923 427 429 408 974 471 910 430 461 440
913 442
973 929 462
(*) Audits of these organizational units performed in whole or in part by other auditors.
AP-3
0
0
0
Listing of Organizational Units Comprising
the State of Georgia Reporting Entity
For the Fiscal Year Ended June 30, 2001
ORGANIZATIONAL UNIT
0
0
CONTROL
0
NUMBERS
0
North Georgia Mountains Authority
912
d
Office of School Readiness OneGeorgia Authority Pardons and Paroles, State Board of Pension Funds
469
0
981 465
0
0
Class Nine Fire Department Pension Fund Employees' Retirement System of Georgia (*)
Regular
983
0
416
0
Defined Contribution Plan District Attorneys Retirement Fund Judicial Retirement System Legislative Retirement System Public School Employees' Retirement System State Employees' Assurance Department
NIA
946
0
NIA
0
NIA
0
468
NIA
0
Superior Court Judges Retirement Fund Firefighters' Pension Fund Judges of the Probate Court Retirement Fund
945
0
950 949
0
Peace Officers' Annuity and Benefit Fund of Georgia
947
0
Sheriffs' Retirement Fund of Georgia Superior Court Clerks' Retirement Fund of Georgia (*) Teachers' Retirement System of Georgia(*)
951 948
0
482
0
Personnel Board, State - Merit System ofPersonnel Administration Ports Authority, Georgia (*) Public Safety, Department of
460 916
0
466
0
Public Service Commission Public Teleconnnunications Connnission, Georgia (*) Rail Passenger Authority
470
0
977 960
0
Regents of the University System of Georgia, Board of
472
0
Colleges and Universities Research Universities Georgia Institute of Technology(*)
0
503
0
Georgia State University Medical College of Georgia University of Georgia (*)
509 512
0
518
0
Regional Universities Georgia Southern University Valdosta State University
539
0
551
0
State Universities Albany State University Armstrong Atlantic State University
0
521 524
0
Augusta State University Clayton College and State University Columbus State University Fort Valley State University
527
0
528 530
0
533
0
Georgia College and State University Georgia Southwestern State University Kennesaw State University
536 542
0
543
0
North Georgia College and State University Savannah State University
545 548
0
c
c
(*) Audits of these organizational units performed in whole or in part by other auditors.
c
AP-4
c
Listing of Organizational Units Comprising
the State of Georgia Reporting Entity For the Ascal Year Ended June 30, 2001
ORGANIZATIONAL UNIT
Colleges and Universities (continued) State Universities (continued) Southern Polytechnic State University State University of West Georgia Associate Degree Colleges Abraham Baldwin Agricultural College Atlanta Metropolitan College Bainbridge College Coastal Georgia Community College Dalton 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 Regionai Educational Service Agency Southwest Georgia Regional Educational Service Agency West Georgia Regional Educational Service Agency
Regional Transportation Authority, Georgia Removal ofHazardous 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 ofFame Authority Stone Mountain Memorial Association (*)
CONTROL NUMBERS
550
554
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 976 497 474 942 478
919
480 944
911
(*) Audits of these organizational units performed in whole or in part by other auditors.
AP-5
u
0
0
Listing of Organizational Units Comprising
the State of Georgia Reporting Entity For the Fiscal Year Ended June 30. 2001
ORGANIZATIONAL UNIT
0
0
CONTROL
0
NUMBERS
0
Student Finance Authority, Georgia (*) Student Finance Commission, Georgia Subsequent Injury Trust Fund Board of Trustees Superior Court Clerks' Cooperative Authority, Georgia(*) Technical and Adult Education, Department of State Technical Colleges
Albany Technical College Altamaha Technical College Appalachian Technical College Athens Technical College Atlanta Technical College Augusta Technical College Central Georgia Technical College Chattahoochee Technical College Columbus Technical College Coosa Valley Technical College DeKalb Technical College East Central Technical College Flint River Technical College Griffin Technical College Heart of Georgia Technical College Lanier Technical College Middle Georgia Technical College Moultrie Technical College North Georgia Technical College North Metro Technical College Northwestern Technical College Ogeechee Technical College Okefenokee Technical College Sandersville Technical College Savannah Technical College South Georgia Technical College Southeastern Technical College Southwest Georgia Technical College Swainsboro Technical College Valdosta Technical College West Central Technical College West Georgia Technical College Tobacco Community Development Board, Georgia Tollway Authority, State Transportation, Department of Treasury and Fiscal Services, Office of Veterans Service, State Department of Workers' Compensation, State Board of World Congress Center Authority, George L. Smith II, Georgia
917
0
476
0
489 955
0
415
0
820
0
821
0
840 822
0
823
0
824
0
835 827
0
828
0
829 830
0
825
0
847 831
0
833
0
834 836
0
837
0
838
0
839 849
0
844
0
818 817
0
841
0
842 843
0
846
0
845 848
0
826
0
819
0
978
927
0
484
0
486 488
0
490
0
922
0
0
0
0
c
(*) Audits of these organizational units performed in whole or in part by other auditors.
c
AP-6
0