Management report, Department of Agriculture, an organizational unit of the state of Georgia, year ended June 30, 2002

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DEPARTMENT OF AGRICULTURE

MANAGEMENT REPORT

-TABLE OF CONTENTS-

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGET FUND

1

B SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

2

SECTION /I CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

DEPARTMENT OF AUDITS AND ACCOUNTS

254 Washington Street, S.w.. Suite 214

RUSSELL W. HINTO~
STATE AUDITOR (404) 6S6-2 I74

Atlanta, Georgia 30334-8400

September 18, 2002

Honorable Roy E. Barnes, Govemor Members of the General Assembly of Georgia Honorable Thomas T. Irvin, Commissioner Department of AgriCUlture
Ladies and Gentlemen:
As part of our audit of the statutory basis financial statements of the State of Georgia presented in the State of Georgia Report of the State Auditor, the basic financial statements of the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report, and the issuance of a Statewide Single Audit Report pursuant to the Single Audit Act Amendments, as of and for the year ended June 30, 2002, we have performed certain audit procedures at the Department of AgriCUlture. Accordingly, the financial statements and compliance activities of the Department of Agnculture were examined to the extent necessary in order to express an opmion as to the fair presentation of the financial statements contamed in the foregOing documents and to issue reports on compliance and internal controls as required by the Single Audit Act Amendments of 1996.
This Management Report contains information perttnent to the financial and compliance activities of the Department of Agriculture as of and for the year ended June 30, 2002. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the information and use of management of the State of Georgia and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
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RWH:lmc

SECTION I SELECTED FINANCIAL INFORMATION

DEPARTMENT OF AGRICULTURE ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 3D, 2002

EXHIBIT "A"

FUND BAI..ANCE - JULY 1, 2001
Rese!ved Surplus
ADDIllONS
Excess of Funds Available over Expenditures
Exhibit "B" Prior Year's 01ecks Voided ReirrbJrsement of Poor Year's ExpencfJtures

$

3,438,494 10

376,127.35

$

3,814,621.45

$

1,975,658.10

25.95

1,451.38

$

1,9n,135.43

DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30,2001
Reserved Fund Balance Carried 0Jer from Prior Year as Funds Available
FUND BAI..ANCE - JUNE 30, 2002
SUMfIMRY OF FUND BALANCE Rese!ved Federal Financial Assistance Rajalities ald Ucense Fees Vidalia 01110115
Surplus
1

$

376,127.35

3,438,494.10

$

3,814,621.45

$

1,362,027.38

308,070.40

$

1,670,097.78

307,037.65

$

1,9n,13543

DEPARTMENT OF AGRICULTURE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30, 2002

EXHIBIT"B"

FUNDS AVAILABLE REVENUES
State Appropriation Federal Revenues Other Revenues Retained
CARRY.QVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 45,695,490.00 $ 45,695,490 00 $

10,209,102.00

10,600,068.92

8,455,680.00

6,433.64274

$ 64,360,272.00 $ 62,729,201.66 $

0.00 390,96692 -2,022,037.26
-1,631,07034

000

3,438,494 10

3,438,494 10

$ 64,360,272.00 $ 66,167,695 76 $ _ _1;.:.;,80;.;:;.;..:7,4..;.;2;;.;;3.;.;..7~6

EXPENDITURES

Personal Services

$ 34,233,396.00 $

Regular Operating Expenses

4,931,nO.00

Travel

1,260,528.00

Motor Vehicle Purchases

325,767.00

Equipment

627;l.n.00

Computer Charges

698,34100

Real Estate Rentals

1,132,197.00

TeIeoommunicatJons

464,47600

Per Diem and Fees

170,464.00

Contracts

4,698,644 00

MaI1tet Bulletin Postage

1,143.240.00

Payments to Athens and Tifton Vetennary Laboratones

3.521,803.00

Poultry Vetennary DIagnostic Laboratones In Canton,

Dalton, Douglas, 0akY.00d, Statesboro, Carroll,

Macon, Mitchell, and Monroe

3,147.972.00

Vetennary Fees

160,000.00

Indemnities

21,323.00

AdvertiSing Contrad

525,00000

Renomon, ConstrudJon. RepaIrs and Mamtenance

4,397,931 00

Projects at Ma/or and Minor MaI1tets

Caprtal Outlay

360,143.00

Contrad-Federatlon of Southem Cooperatives

40,00000

Cotton Indemnity Fund

2,500,000 00

34,103,140.75 $ 4,971,495 73 1,272,121.36
318,43952 620,055.70 698,88052 1,112,96612 464,99516 173,80603 4,698,455 17 1.143,240.00 3,521.803.00
3,147,97200 142;108 75 17,55110 525,00000
4,393,604 47
360,142.55 40,00000 2,466,259 73

$ 64,360,272.00 $ 64,192,037.66 $

130,255.25 -39,725.73 -11,593.36
7,327 48 7,221.30 -53952 19,230.88 -51916 -3,342.03
188.83 000 0.00
0.00 17,891.25 3,n190
000 4,32653
0.45 000 33,74027
168.234 34

Excess of Funds Available over Expenditures
2

$ 1,975,65810 $

1,975,65810

SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS
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DEPARTMENT OF AGRICULTURE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS BUDGET PREPARATION/EXECUTION Overexpenditure of Budget Unit Object Class Finding Control Number: FS-402-02-01
The total approved budget for the Department of Agriculture provided for expenditures totaling $ 64,360,272.00. A comparison of anticipated funds available and budgeted expenditures to actual funds available and expenditures by object class indicates that the Per Diem and Fees object class was overspent in the amount of $ 3,342.03. The overexpenditure identified above is in violation of Section 58 of the Amended Appropriations Act of 2001-2002. Agency overexpenditures can result in direct material effects on the financial statements. The Department of Agriculture should review its internal control procedures over budget operations, design procedures which would prohibit the expenditure of funds in excess of budget approval, and implement those procedures to strengthen the internal controls over the budget function.
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