MANAGEMENT REPORT DEPARTMENT OF DEFENSE AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30,1998 
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WASHINGTON STREET 
ATLANTA, GEORGIA 30334-8400 
 
 DEPARTMENT OF DEFENSE MANAGEMENT REPORT - TABLE OF CONTENTS - 
 
LETTER OF TRANSMITTAL 
 
SECTION I 
 
SELECTED FINANCIAL INFORMATION 
 
EXIllBITS 
 
A ANALYSIS OF CHANGES IN FUND BALANCE 
 
BUDGET FUND 
 
B SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES 
 
COMPARED TO BUDGET 
 
BUDGET FUND 
 
2 
 
SECTIONll AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
September 1, 1998 
 
Honorable Zell Miller, Governor Members of the General Assembly of Georgia 
and Honorable William P. Bland, Jr., Adjutant General Department of Defense 
Ladies and Gentlemen: 
As part of our audit of the statutory basis fmancial statements of the State of Georgia presented in the Report ofthe State Auditor, the general purpose financial statements of the State of Georgia presented in the State ofGeorgia 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, 1998, we have performed certain audit procedures at the Department ofDefense. Accordingly, the fmancial statements and compliance activities of the Department of Defense were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996. 
This Management Report contains information pertinent to the financial and compliance activities of the Department of Defense as of and for the year ended June 30, 1998. The particular information provided is enumerated in the Table of Contents. 
This report is intended solely for the use of management ofthe Department of Defense. However, this report is a matter of public record and its distribution is not limited. 
.e.:. Respectfully submitted, 
Claude L. Vickers State Auditor 
CLV:ds 
 
 SECTION I SELECTED FINANCIAL INFORMATION 
 
 DEPARTMENT OF DEFENSE ANALYSIS OF CHANGES IN FUND BALANCE 
BUDGET FUND YEAR ENDED JUNE 30,1998 
 
EXHIBIT"A" 
 
FUND BALANCE - JUNE 3D, 1998 
SUMMARY OF FUND BALANCE Reserved Federal Financial Assistance Armory Funds Billeting Funds Youth Challenge Program Donations Surplus 
-1- 
 
$ 1,812,174.75 
$ 1,477,716.89 169,746.68 113,701.56 645.00 
$ 1,761,810.13 50,364.62 
$ 1,812,174.75 
 
 DEPARTMENT OF DEFENSE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES 
COMPARED TO BUDGET BUDGET FUND 
YEAR ENDED JUNE 30,1998 
 
EXHIBIT"B" 
 
FUNDS AVAILABLE REVENUES 
State Appropriation Federal Revenues Other Revenues Retained 
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance 
 
BUDGET 
 
ACTUAL 
 
VARIANCE FAVORABLE (UNFAVORABLE) 
 
$ 4,989,144.00 $ 18,446,790.00 
1,009,702.00 
 
4,989,144.00 $ 17,397,085.12 
699,350.99 
 
$ 24,445,636.00 $ 23,085,580.11 $ 
 
0.00 -1,049,704.88 
-310,351.01 
-1,360,055.89 
 
0.00 
 
1,975,168.42 
 
1,975,168.42 
 
$ 24,445,636.00 $ 25,060,748.53 $ _ _~.:6.=1.:5..,;1.,1,2;,.,5;;3;=- 
 
EXPENDITURES Personal Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts 
Excess of Funds Available over Expenditures 
 
$ 11,099,199.00 $ 
9,706,735.00 75,270.00 
125,156.00 411,741.00 
72,642.00 1,827,778.00 1,127,115.00 
 
10,737,061.63 $ 9,175,883.57 
73,915.19 114,324.59 410,906.80 
71,293.56 1,497,426.88 1,117,432.10 
 
362,137.37 530,851.43 
1,354.81 10,831.41 
834.20 1,348.44 330,351.12 9,682.90 
 
$ 24,445,636.00 $ 23,198,244.32 $ _ _~1.,,2;4""7:,,3.9,1,.6.~8=- 
 
$ 1,862,504.21 $==:i::!1:,8i6:2:~,5=0=4=.=2=1= 
 
- 2- 
 
 SECTION II AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 DEPARTMENT OF DEFENSE AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-411-97-01 
 
Previously Reported Corrective Action Implemented