GA ~00 .Rl c_,;7 l9Ci 3-qcf STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 REVIEW REPORT STATE OF GEORGIA OFFICE OF TIIE GOVERNOR YEAR ENDED JUNE 30, 1994 OFFICE OF THE GOVERNOR - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION EXHIBITS FINANCIAL STATEMENTS A COMBINED BALANCE SHEET (STATUTORY BASIS) ALL FUND TYPES AND ACCOUNT GROUPS 2 B COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS) GOVERNMENTAL FUND TYPES s C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND 6 D STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND E STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS STATE REVENUE COLLECTIONS FUND 11 F NOTES TO THE FINANCIAL STATEMENTS 12 SUPPLEMENTARY INFORMATION G COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUNDS 24 SCHEDULES 1 SCHEDULE OF APPROVED BUDGET 25 2 CASH AND CASH EQUIVALENTS 26 3 SCHEDULE OF GOVERNOR'S EMERGENCY FUND 27 4 SCHEDULE OF FEDERAL REVENUES 28 5 SCHEDULE OF OTHER OPERATING EXPENSES 30 6 SUMMARY OF SALARIES, TRAVEL, AND PER DIEM AND FEES 31 OFFICE OF THE GOVERNOR - TABLE OF CONTENTS - SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS SECTION I FINANCIAL CLAUDE L. VICKERS STATE AUDl10R (404) 656-2174 TAX RATIO (404) 656-0494 ~.epa:rtm.ent nf J\u~its 254 WASHINGTON STREET. S. W. ROOM 214 ~thmtn, ~eorgin 30334-8400 January 6, 1995 FINANCIAL AUDITS (404) 656-2180 PROGRAM AUDITS (404) 656-2006 Honorable Zell Miller, Governor Members of the General Assembly of Georgia and Honorable Henry M. Huckaby, Director Office of Planning and Budget INDEPENDENT ACCOUNTANTS COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Ladies and Gentlemen: We have reviewed the accompanying financial statements (Exlubits A through F) ofthe Office ofthe Governor as ofand for the year ended June 30, 1994, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these :financial statements is the representation ofthe management ofthe Office of the Governor. A review consists principally of inquiries of agency personnel and analytical procedures applied to :financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, with the exception ofthe matter described in the following paragraph, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note I. As more fully discussed in Section II, Findings and Improper or Questioned Costs, the system for monitoring subrecipients ofFederal financial assistance was not sufficient in design or operation to ensure the expenditure ofprogram funds in accordance with applicable laws and regulations. We were unable to determine the effects these discrepancies may have on the :financial statements. 94ARL-6 Our review was made for the purpose ofexpressing limited assurance that there were no material modifications m that should be made to the financial statements order for them to be in conformity with the basis of accounting described in Note I. The accompanying supplementary information (Exhibit G and Schedules I through 6) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review ofthe financial statements and except as described in the preceding paragraph, we are not aware of any material modifications that should be made thereto. Respectfully submitted, ~/V"d Claude L. Vickers State Auditor CLV:gp 94ARL-6 FINANCIAL STATEMENTS - 1- OFFICE OF THE GOVERNOR COMBINED BALANCE SHEET (STATUTORY BASIS) ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1994 ASSETS Cash and Cash Equivalents (See Schedule) Accounts Receivable State Appropriation Federal Financial Assistance Other Fixed Assets Equipment Amount to be Provided for Payment of: Accrued Compensated Absences Capital Lease Commitments GOVERNMENTAL FUND TYPES BUDGET STATE REVENUE COLLECTIONS $14,330,531.42 $ 0.00 $1,160,708.69 11,426,306.21 784,460.13 $13,371,475.03 Total Assets LIABILITIES AND FUND EQUITY Liabilities Accounts Payable Payroll Withholdings Funds Held for Others Com~ensated Absences Cap1tal Leases Total Liabilities Fund Equity Investment in General Fixed Assets Fund Balances Reserved Federal Financial Assistance Advisory Council on Science and Technology Children and Youth Coordinating Council of Georgia Crime Victims Emergency Fund Ford Foundation Contract Integrated Resources Plan Contract Nuclear Preparedness Training Grant State Revenue Collections Fund Unreserved Designated Surplus Total Fund Equity $=2=7=,=7=0=2=,=0=0=6=.=4=5$==========0=.0==0 $11,984,722.72 5,441.75 $11,990,164.47 $12,799,615.76 0.00 667.82 2,141,797.73 9,485.86 25,026.22 58,746.10 $ 0.00 676,502.49 $15,711,841.98 $ 0.00 Total Liabilities and Fund Equity $27,702,006.45$ 0.00 See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. - 2- EXHIBIT "A" FFUIDNUDCITAYRPYE ---A-G-E-N-C-Y----- ACCOUNT GROUPS ---G--EN-E-R-A-L----------G-EN--ER-A-L---- AFSISXEETDS LODNEGB-TTERM (MemoraTnOdTuAmLS Only) J-U-N-E--3--0-, -1-9-9-4---J-U-N-E--3--0-, --19-9-3- $ 7,567.94 $14,338,099.36 $19,015,820.64 $1,160,708.69 $ 2,206,186.86 11,426,306.21 10,822,478.69 784,460.13 644,033.77 $13,371,475.03 $13,672,699.32 $ 2,363,630.87 $ 2,363,630.87 $1,954,295.47 $1,346,643.33$ 1,346,643.33$ 1,155,395.68 31,302.29 31,302.29 14,228.56 $1,377,945.62 $1,377,945.62$ 1,169,624.24 $ 7,567.94$ 2,363,630.87$ 1,377,945.62 $31,451,150.88 $35,812,439.67 $ 7,567.94 $ 7,567.94 $11,984,722.72 $ 9,788,575.70 5,441.75 5,010.67 7,567.94 1,811.23 $1,346,643.33 1,346,643.33 1,155,395.68 31,302.29 31,302.29 14,228.56 $1,377,945.62 $13,375,678.03 $10,965,021.84 $ 2,363,630.87 $ 2,363,630.87 $2,363,630.87$ 1,954,295.47 12,799,615.76 0.00 667.82 2,141,797.73 9,485.86 25,026.22 58,746.10 0.00 18,899,135.42 2,591.07 0.00 866,479.59 60,584.28 2,285,308.23 50,452.64 0.00 676,502.49 728,571.13 $18,075,472.85 $24,847,417.83 $ 7,567.94 ===== $2=,=3=6==3=,6==3=0=.=8=7$=1~,=3=7=7=,9=4==5s.=6=2 $=3=1=,4==5=1=,1==5=0=.8==8 $35,812,439.67 ======= - 3- OFFICE OF THE GOVERNOR COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS) GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994 EXHIBIT "B" BUDGET STATE CORLELVEECNTUIOE NS TOTALS (Memorandum Only) YEAR ENDED J-U-N-E--3--0-, --19-9-4----JU-N-E---3-0-, --1-9-93- FUND BALANCES - JULY 1 Reserved Unreserved Designated Surplus $22,164,551.23 $ 728,571.13 0.00 $22,164,551.23 $23,154,825.99 72B,571.13 737,868.97 $22,893,122.36$ 0.00 $22,893,122.36 $23,892,694.96 ADDITIONS. Adjustments to Prior Year's Accounts Payable $ 397,768.37 $ 397,768.37 $ 575,524.29 Cash Receipts for the Year Exhibit "E" $ 1,013,547.93 1,013,547.93 1,076,154.BB Excess of Funds Available over Expenditures Exhibit "C" 15,327,002.73 15,327,002.73 22,24B,084.50 Transfer from Department of Defense Georgia Emergency Management Agency In Accordance with Provisions Act No. 983 of the 1992 Georgia Laws 0.00 0.00 370,572.03 ------------- ------------- ------------- ------------- $15,724,771.10$ 1,013,547.93 $16,738,319.03 $24,270,335.70 DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1992 Year Ended June 30, 1993 Adjustments to Prior Year's Accounts Receivable Cash Disbursements for the Year Exhibit "E" Refund of Prior Year's Unearned Federal Grant Balance to Granter Reserved Fund Balance Carried Over from Prior Year as Funds Available $ 0.00 728,571.13 $ 0.00 $ 737,868.97 728,571.13 0.00 12,929.12 12,929.12 293,120.96 $ 1,013,547.93 1,013,547.93 1,076,154.88 0.00 0.00 7,937.50 22,164,551.23 22,164,551.23 23,154,825.99 ------------- ------------- ------------- ------------- $22,906,051.48$ 1,013,547.93 $23,919,599.41 $25,269,908.30 FUND BALANCES - JUNE 30 (To Exhibit "A") $15,711,841.98 $ 0.00 $15,711,841.98 $22,893,122.36 See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. - 5- OFFICE OF THE GOVERNOR STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND YEAR ENDED JUNE 30, 1994 EXHIBIT "C" Page 1 FUNDS AVAILABLE REVENUES STATE APPROPRIATION General Appropriation Amended Appropriation Governor's Emergency Fund (See Schedule) Budget Adjustments Less: Lapsed Funds Total State Appropriation FEDERAL REVENUES (See Schedule) OTHER REVENUES RETAINED Artists in Schools Census Data Contracts Georgia Crime Victims Fund Georgia Department of Children and Youth Services Georgia Department of Education Georgia Department of Transportation Georgia Intern Program Integrated Resources Plan Atlanta Gas Light Company Georgia Power Company Savannah Electric ana Power McFrugal Auto Rental Refund Nuclear Preparedness Training Grant Alabama Power Company Georgia Power Company Donations Interest Earned Seminar Fees Total Other Revenues Retained Total Revenues CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance Federal Financial Assistance Advisory Council on Science and Technology Artists in Schools Crime Victims Emergency Fund Ford Foundation Contract Herty Foundation Contract Integrated Resources Plan Contract Nuclear Preparedness Training Grant Total Carry~Over from Prior Year YEATROTAENLDSED JONE 30, 1994 JQNE 30, 1993 $21,785,049.00 $21,254,518.00 435,462.00 10,569.00 3,225,565.00 1,340,069.00 -300,000.00 -300,000.00 $25,146,076.00 $22,305,156.00 132,499.00 0.00 $25.013,577.00 $22,305,156.00 $39,230,951.34 $34.044.684.40 $ 136,245.40 $ 202,398.85 447.00 811.00 1,666,978.96 21,000.00 70,000.00 38,846.14 93,385.00 1,175,160.75 0.00 0.00 31,397.00 125,059.50 25,000.00 1,726,813.36 123,338.45 3,802.93 0.00 2,236,084.00 65,000.00 0.00 114,548.00 224,782.00 0.00 683,901.98 45,608.75 107,197.83 190,852.17 s,000.00 859,936.24 28,070.00 $ 4,974,697.97 $ 5,026,967.34 $69.219,226.31 $61.376,807.74 $18,899,135.42 $23,070,667.09 2,591.07 0.00 0.00 238.00 866,479.59 0.00 60,584.28 82,792.12 0.00 1,128.78 2,285,308.23 0.00 50,452.64 0.00 $22,164,551.23 $23,154,825.99 Total Funds Available $91,383,777.54 $84,531,633.73 EXPENDITURES COST OF OPERATIONS PERSONAL SERVICES Salaries and Wages Employer's Contributions for: F. I.C.A. Retirement Health Insurance Personal Liability Insurance Unemplorment Compensation Insurance Workers Compensation Insurance $ 1,692,621.55 $ 1,642,141.81 119,421.74 274,582.47 207,204.00 22,442.00 825.00 3,78.~0 114,517.28 272,223.77 197,313.16 14,760.00 1,070.16 3,69~.48 $ 2,320,885.26 $ 2,245,721.66 See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. - 6- OFFICE OF THE GOVERNOR STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND YEAR ENDED JUNE 30. 1994 EXHIBIT "C" Page 2 EXPENDITURES COST OF OPERATIONS REGULAR OPERATING EXPENSES Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing TRAVEL EQUIPMENT Equipment Purchases Lease/Purchase of Equipment Rental of Equipment COMPUTER CHARGES Software Equipment Equipment Purchases Computer Billings, DOAS TELECOMMUNICATIONS PER DIEM, FEES AND CONTRACTS Per Diem and Fees Contracts Total Cost of Operations PERSONAL SERVICES Salaries and Wages Employer's Contributions for: F. l.C.A. Retirement Health Insurance Personal Liability Insurance Unemplo.yment Compensation Insurance Workers Compensation Insurance Assessments by Merit System REGULAR OPERATING EXPENSES Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses (See Schedule) Duplicating ana Rapid Copy Publications and Printing TRAVEL MOTOR VEHICLE PURCHASES TOTALS YEAR ENDED JONE 30. 1994 JONE 30. 1993 $ 588.50 $ 507.91 53,206.53 61,100.80 15,261.25 15,419.22 42,597.18 26,369.99 6,002.80 0.00 220,181.15 166,571.80 545.57 939.32 13,572.54 34,733.02 $ 351,955.52 $ 305,642.06 $ 26,106.36 $ 38,226.37 $ 0.00 $ 13,929.44 4,067.84 2,905.60 13,700.16 12,469.75 $ 17,768.00 $ 29,304.79 $ 2,015.50$ 897.00 370.75 49,789.88 0.00 103,272.94 $ 52,176.13 $ 104,169.94 $ 81,877.93 $ 84,873.90 $ 43,917.38 $ 54,230.85 52,000.00 0.00 $ 95,917.38 $ 54,230.85 $ 2,946,686.58 $ 2,862,169.57 $ 9,816,103.12 $ 9,080,272.22 692,370.56 1,530,181.74 1,210,654.21 128,698.00 4,928.00 22,704.50 23,067.81 639,056.63 1,429,725.53 1,118,463.08 87,904.00 5,693.80 19,661.87 35,130.01 $13,428,707.94 $12.415.907.14 $ 28,976.26$ 28,012.41 273,406.14 242,051.28 91,638.96 125,314.22 14,888.15 0.00 121,861.88 92,942.45 65,758.05 48,796.00 160,844.94 209,799.79 63,607.73 52,012.64 114,922.07 137,645.34 $ 935,904.18 $ 936,574.13 $ 258,848.17$ 220,432.79 $ 1,397.00 $ 12,301.00 See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. - 7- OFFICE OF THE GOVERNOR STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND YEAR ENDED JUNE 30, 1994 EXHIBIT "C" Page 3 TOTALS JONE 30. I&S EM8bf 30. 1993 EXPENDITURES EQUIPMENT Equipment Purchases Lease/Purchase of Equipment Rental of Equipment COMPUTER CHARGES Other Costs Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Other Operating Expenses (See Schedule) Software Equipment Equipment Purchases Per Diem, Fees and Contracts Per Diem and Fees Contracts Computer Billings, OOAS REAL ESTATE RENTALS TELECOMMUNICATIONS PER DIEM, FEES AND CONTRACTS Per Diem and Fees Contracts $ 99,162.83 $ 91,839.29 19,461.50 8,266.39 37,716.38 32.408.3 $ 156 I 340 7l $ 132,514.51 $ 26,727.97$ 43,671.58 849.00 7,855.09 46,466.75 268,609.69 10,200.00 632.00 329,773.45 $ 734,785.53$ $ 1,019,316.45$ $ 327,079.73$ 21,095.05 24,434.52 0.00 4,255.29 29,646.21 190,055.95 0.00 0.00 442,667.32 712,154.39 929,232.50 303,569.67 $1,133,569.26$ 868,546.30 28,593,316.86 24.151.303.22 $29,726,886.12 $25,019,849.52 QillB. MANSION ALLOWANCE Other Costs Paid to Governor Zell Miller INTERN STIPENDS AND TRAVEL Other Costs Stipends - List on File ART GRANTS OF STATE FUNDS Personal Services Salaries and Wages Employer's contribution for: F. I .C.A. Other Costs Supplies and Materials Rents (Other than Real Estate) Grants to Counties, Cities and Civil Divisions Other Operating Expenses (See Schedule) Publications and Printing Travel Equipment Equipment Purchases Rental of Equipment Telecommunications Per Diem, Fees and Contracts Per Diem and Fees $ 40,000.00$ 40.00Q.QO $ 226,358.87$ 268.641.00 $ 60,198.89 $ 58,350.03 872.89 846.08 4,979.11 316.00 2,650,284.44 472.34 184.30 1,097.90 970.68 630.00 2,462,802.55 0.00 0.00 0.00 119.99 0.00 50.00 0.00 342.69 0.00 150,234.45 136,810.00 $2,869,153.00$ 2,660,409.34 ART GRANTS OF NON-STATE FUNDS Personal Services Salaries and Wages $ Employer's Contribution for: F.I.C.A. Other Costs Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. 51,145.70$ 741.61 8,752.16 40.00 0.00 65,590.05 951.02 19,526.61 113.85 848.31 - 8- OFFICE OF THE GOVERNOR STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND YEAR ENDED JUNE 30. 1994 EXHIBIT "C" Page 4 EXPENDITURES OTHER ART GRANTS OF NON-STATE FUNDS Other Costs Insurance and Bonding Grants to Counties, Cities and Civil Divisions Other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing Travel Equipment Equipment Purchases Lease/Purchase of Equipment Rental of Equipment Computer Charges Software Equipment Eguipment Purchases Real tstate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts HUMANITIES GRANT - STATE FUNDS Other Costs Grants to Counties, Cities and Civil Divisions CHILDREN AND YOUTH GRANTS Other Costs Grants to Counties, Cities and Civil Divisions JUVENILE JUSTICE GRANTS Other Costs Grants to Counties, Cities and Civil Divisions PAYMENTS TO HAZARDOUS WASTE MANAGEMENT AUTHORITY Per Diem, Fees and Contracts Contracts GEORGIA CRIME VICTIMS ASSISTANCE PROGRAM Other Costs Payments to Victims GRANTS TO LOCAL SYSTEMS Other Costs Grants to Counties, Cities and Civil Divisions GRANTS - LOCAL EMA Other Costs Grants to Counties, Cities and Civil Divisions GRANTS - OTHER Other Costs Grants to Counties, Cities and Civil Divisions GRANTS - CIVIL AIR PATROL Other Costs Grants to Counties, Cities and Civil Divisions GRANTS - DISASTER Other Costs Grants to Counties, Cities and Civil Divisions Total Other Total Expenditures Excess of Funds Available over Expenditures JONE 3o, YEATROTAENLDSED 1994 JONt 30. 1993 $ 50.00 $ 0.00 312,625.27 359,004.46 16,308.13 10,875.70 252.22 206.00 327.94 3,061.58 2,865.97 1,442.78 1,195.00 262.89 96.89 2,623.25 476.49 0.00 62.37 205.00 14,114.67 3,695.20 866.29 0.00 0.00 313.98 119,983.60 -- 0.00 119,363.26 7,000.00 533,385.91 $ 591,602.34 $ 67,800.00$ 42.800.00 $ 290,012.00$ 95,000.00 $ 1.275.039.75 $ 1,484,996.29 $ 0.00 $ 728,540.00 $ 233.785.68 $ 195.617.11 $ 562,000.00 $ 503.500.00 $ 934,308.60 $ 1.127 121.16 $ 73,778.10 $ 70,212.13 $ 60,000.00$ 54.488.00 $19.355.200.49 $10.875.916.64 $26.520.822.40 $18.738.844.01 $76,056,774.81 $62,283,549.23 15,327,002.73 22,248,084.50 $91.383.777.54 $84.531.633.73 See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. - 9- OFFICE OF THE GOVERNOR STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND YEAR ENDED JUNE 30. 1994 EXHIBIT "D" FUNDS AVAILABLE REVENUES State Appropriation Federal Revenues Other Revenues Retained CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance EXPENDITURES Cost of Operations Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Mansion Allowance Intern Stipends and Travel Art Grants of State Funds Art Grants of Non-State Funds Humanities Grant - State Funds Children and Youth Grants Juvenile Justice Grants Georgia Crime Victims Assistance Program Grants to Local Systems Grants - Local EMA Grants - Other Grants - Civil Air Patrol Grants - Disaster Excess of Funds Available over Expenditures BUDGET ACTUAL VARIANCE FAVORABLE (UNFAVORABLE) $25,146,076.00 $25,013,577.00$ -132,499.00 62,120,547.00 39,230,951.34 -22,889,595.66 10.229.939.00 4.974.697.97 -5.255.241.03 $97,496,562.00 $69,219,226.31 $-28,277,335.69 _ _ __._o_._o_=o 22.164.551.23 22.164.551.23 $97.496.562.00 $91.383.777.54 $ -6.112.784.46 $3,121,629.00$ 2,946,686.58$ 174,942.42 14,158,015.00 13,428,707.94 729,307.06 1,153,757.00 935,904.18 217,852.82 378,264.00 258,848.17 119,415.83 8,381.00 1,397.00 6,984.00 285,787.00 156,340.71 129,446.29 789,760.00 734,785.53 54,974.47 1,045,216.00 1,019,316.45 25,899.55 358,426.00 327,079.73 31,346.27 47,041,523.00 29,726,886.12 17,314,636.88 40,000.00 40,000.00 0.00 270,000.00 226,358.87 43,641.13 2,869,153.00 2,869,153.00 0.00 606,515.00 533,385.91 73,129.09 67,800.00 67,800.00 0.00 822,804.00 290,012.00 532,792.00 1,625,164.00 1,275,039.75 350,124.25 344,000.00 233,785.68 110,214.32 562,000.00 562,000.00 0.00 1,159,409.00 934,308.60 225,100.40 111,112.00 73,778.10 37,333.90 60,000.00 60,000.00 0.00 20.617.847.00 19,355.200.49 1,262,646.51 $97.496.562.00 $76.056.774.81 $ 21.439.787.19 $15.327.002.73 $ 15.327.002.73 See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. - 10 - OFFICE OF THE GOVERNOR STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30. 1994 STATE REVENUE COLLECTIONS Office of Consumer Affairs Buying Service Fees Fines Motor Vehicle Arbitration Fees Teacher Certification Fees Total Cash Receipts CASH AND CASH EQUIVALENTS - JULY 1, 1993 CASH RECEIPTS DISBURSEMENTS TRANSFERS To Office of Treasury and Fiscal Services CASH AND CASH EQUIVALENTS - JUNE 30, 1994 EXHIBIT "E" $ 650.00 75,000.00 667,224.00 270,673.93 $1,013,547.93 0.00 $1,013,547.93 ============= $1,013,547.93 0.00 $1,013,547.93 See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. - 11 - OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIUBIT "F" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Office ofthe Governor, an organizational unit of the State ofGeorgia, is part of the executive branch of the government of the State of Georgia. The chief executive powers are vested in the Governor, who is elected by the qualified voters. The Office ofthe Governor does not have authority to determine the amount offunding it will receive from the State of Georgia for any given fiscal year. Such authority is vested in the General Assembly ofGeorgia. The Office ofthe Governor also does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Office of the Governor is included within the State of Georgia reporting_entity for financial reporting purposes because of the significance of its legal, operational and financial relationships with the State c;,f Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Re.porting Standards. FUND ACCOUNTING The Office ofthe Governor uses funds and account groups to report on its financial position and the results ofits operations determined in conformity with accounting practices prescribed.or permitted by statutes and regulations ofthe State ofGeorgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental 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 financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. Funds and account groups presented in the accompanying financial statements are as follows: GOVERNMENTAL FUND TYPES BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act ofl993-1994. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund. STATE REVENUE COLLECTIONS FUND - The fund used to account for the collection of specific revenues ofthe State ofGeorgia as provided by statute or administrative action and the subsequent transfer of such funds to the Office of Treasury and Fiscal Services. This presentation differs from generally accepted accounting principles in that such activity should be included in the General Fund of the governmental organization. FIDUCIARY FUND TYPE AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals. -12- OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIIlBIT "F" NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FUND ACCOUNTING ACCOUNT GROUPS GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at historical cost. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets. GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments and compensated absences, which will be paid from future resources. BASIS OF ACCOUNTING MEASUREMENT FOCUS The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental :funds should be accounted for using the current financial resources measurement focus. With this measurement focus, only aurent assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e., expenditures) in net current assets. GOVERNMENTAL FUND TYPES BUDGETFUND Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe 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. Revenues that are accrued include primarily State appropriations, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Further, the modified accrual basis ofaccounting calls for expenditures, other than accrued interest ofgeneral long-term debt, to be recorded when the related fund liability is incurred. Contractual obligations for services which have not been l)erformed and for goods which have. not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based in part on the unexecuted portion of contracts for goods and services. The recognition ofencumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording ofencumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles. - 13 - OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "F" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPES BUDGETFUND Prior period adjustments and certain other items are reported as additions to and deductions from fund balances ofthe Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. STATE REVENUE COLLECTIONS FUND The State Revenue Collections Fund is maintained on the Cash Receipts and Disbursements basis of accounting as prescribed or permitted by statutes and regulations of the State of Georgia. This basis of accounting is defined as that method of accounting in which certain revenue and the related assets are recognized when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred. The State Revenue Collections Fund, which should be included in the General Fund in accordance with generally accepted accounting principles, should be maintained on the modified accrual basis ofaccounting. FIDUCIARY FUND TYPE AGENCY FUNDS The Agency Funds are custodial in nature in that assets are equally offset by liabilities to other funds, governmental units, or individuals. The modified accrual basis of accounting is utilized for recognizing assets and liabilities. BUDGET Appropriation allotments to the Office ofthe Governor are on the basis of a budget submitted by the Office and approved by the Legislature and the Governor. The budget is compiled in the same manner as all State departments and expenditures are classified by budget unit object classes as provided in Act No. 608 of Georgia Laws 1993 (as approved April 28, 1993) and amended by Act No. 622 of Georgia Laws 1994 (as approved Febrwuy 8, 1994), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1993-1994. CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include demand deposits with banks and other financial institutions and cash management pools that have the general characteristics ofdemand deposit accounts in that the Office ofthe Governor may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. INVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time ofpurchase. - 14- OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIDBIT "F" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a brief description of the reserves reflected in the accompanying financial statements: FEDERAL FINANCIAL ASSISTANCE The residual portion ofFederal financial assistance revenues not yet expended or encumbered. This amount is restricted for expenditure in future years. This accounting treatment differs from generally accepted accounting principles in that the unearned portion of Federal financial assistance should be reflected as Deferred Revenue. CHILDREN AND YOUTH COORDINATING COUNCIL OF GEORGIA The residual portion of a grant not yet expended or encumbered. This amount will be returned to the Commission ofChildren and Youth in the subsequent period. CRIME VICTIMS EMERGENCY FUND Funds received from penalty assessments for driving under the influence of alcohol or drugs for the purpose ofcompensating innocent victims of crime. This amount is restricted for expenditure in subsequent years. FORD FOUNDATION CONTRACT Funds received from the Ford Foundation are to be used to support No-Tillage Assistance Agriculture Program. This amount is restricted for expenditures in subsequent years in accordance with contractual agreements. INTEGRATED RESOURCES PLAN CONTRACT Funds received from the private sector are utilized to install energy saving measures in homes oflow income persons and provide additional forms of energy conservation assistance. This amount is restricted for expenditure in subsequent years in accordance with contractual agreements. NUCLEAR PREPAREDNESS TRAINING GRANT Funds received for this program represent contractual agreements between the State of Georgia, Alabama Power Company and Georgia Power Company for emergency response planning and related activities at various nuclear power facilities. This amount is restricted for expenditure in subsequent years in accordance with contractual agreements. COMPENSATED ABSENCES Compensated absences represent obligations ofthe Office of the Governor relating to employee's rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating annual leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount will - 15 - OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT"F" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES COMPENSATED ABSENCES not be liquidated with expendable available financial resources. Funds are provided in the appropriation of funds each year to the Office ofthe Governor to cover the cost of annual leave paid to terminated employees. The liability for compensated absences at year end is reported in the General Long-Term Debt Account Group for governmental funds. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Statements (Statutory Basis) 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 ofoperations or changes in financial position in confonnity with generally accepted accounting principles. Neither are such data comparable to a consolidation. lnterfund eliminations have not been made in the aggregation ofthis data. COMPARATIVE DATA Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Office's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand. NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds ofthe State ofGeorgia 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 ofthe following securities as enumerated in the Official Code ofGeorgia Annotated Section 50-17-59: (1) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or of the State of Georgia. (2) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State ofGeorgia. (3) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose. (4) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia. -16- OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "F" NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. (6) Guarantee or insurance ofaccounts provided by the Federal Deposit Insurance Corporation. As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia the option of exempting demand deposits from the collateral requirements. CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk. Category I - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Office or by its agent in the Office's name. Category 2 - Amounts collateraliz.ed with securities (at market value) held by the financial institution's trust department or agent in the Office's name. Category 3 - Amounts collateraliz.ed with securities (at market value) held by the financial institution or by its trust department or agent, but not in the Office's name, and amounts uncollateralized. Canying ~ Bank Balance Risk Categories 2 3 Cub Deposits s -78714148 s 312833183 s 20000000 s~~=ooo..,. s 2222,33183 CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount shown below is maintained in an investment pool by the Office ofTreasury and Fiscal Services. Type oflnvestment State Investment Pool Carrying Amount Market Value $15,125,240.84 $15.125.240.84 - 17 - OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIIlBIT "F" NOTE 3: OPERATING LEASES The Office ofthe Governor has entered into certain agreements to lease real property and equipment which are clmfied as operating leases. These leases generally contain provisions that, at the expiration date ofthe original term ofthe lease, the Office of the Governor has the option ofrenewing the lease on a year-to-year basis. Future minimum commitments for operating leases as ofJune 30, 1994, are listed below. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised. Fiscal Year Ending June 30 1995 S 305,534.04 Expenditures for rental of real property and equipment under operating leases for the year ended June 30, 1994, totaled $497,958.38. NOTE 4: CAPITAL LEASE COMMITMENTS The Office ofthe Governor acquires certain property and equipment through multi-year capital leases with varying terms and options. The majority ofthese agreements contain fiscal funding clauses in accordance with O.C.G.A 50-5-64 which prolubits the creation ofa debt to the State ofGeorgia for the payment ofany sums under such agreements beyond the fiscal year ofexecution ifappropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly ofGeorgia are considered noncancellable for financial reporting purposes. At June 30, 1994, future minimum commitments under capital leases are as follows: Fiscal Year Ending June 30 1995 $ 11,129.56 1996 8,805.63 1997 16,513.96 Total Future Minimum Commitments $ 36,449.15 Less: Amounts Representing Interest 5,146.86 Present Value ofFuture Minimum Commitments S 31,302.29 - 18 - OFFICE OFTHE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "F" NOTE 5: CHANGES IN GENERAL FIXED ASSETS In accordance with the statutory definition of moveable personal property as defined in Official Code of Georgia Annotated Section 50-16-161, only those items with an acquisition cost ofSl,000.00 or greater are reflected in the General Fixed Assets Account Group. The following is a summary of changes of equipment in the General Fixed Assets Account Group during the fiscal year: Balance July 1, 1993 $ 1,954,295.47 Additions Deductions 1,346,969.38 937,633.98 Balance June 30, 1994 $2,363,630.87 NOTE 6: GENERAL LONG-TERM DEBT CHANGES IN GENERAL LONG-TERM DEBT A summary of changes in General Long-Term Debt for the year ended June 30, 1994, follows: Compensated Capital Lease Absences Commitments Total Balance July 1, 1993 $1,155,395.68 $ 14,228.56 $1,169,624.24 Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits (*) Current Year Leases Deductions 95,550.28 95,697.37 41,102.36 24,028.63 95,550.28 95,697.37 41,102.36 24,028.63 Balance June 30, 1994 $ 1,346,643.33 $ 31,302.29 $ 1,377,945.62 (*) Includes related fringe benefits applicable to compensated absences at July 1, 1993. NOTE 7: DEFERRED COMPENSATION PLAN The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees ofthe State of Georgia and county health departments, permits such employees to defer a portion of their salary until future years. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the - 19- OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "F" NOTE 7: DEFERRED COMPENSATION PLAN plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights ofthe State ofGeorgia subject only to the claims ofthe State's general creditors. Participant's rights under the plan are equal to those ofa general creditor ofthe State ofGeorgia in an amount equal to the fair market value ofthe deferred account ofeach participant. Financial information relative to the plan is presented in the financial report ofthe State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1994. NOTE 8: RETIREMENT PLANS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA The Office ofthe Governor participates in the Employees' Retirement System of Ge9rgia, a single-employer, defined benefit pension plan. The Employees' Retirement System ofGeorgia was established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. The Retirement System is funded through a combination ofemployee and employer contributions. Employees are required to contnbute a graduated percentage ofannual compensation. Employer contributions are for a specified percentage ofactive member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Office contributed $1,804,764.21 to the Employees' Retirement System of Georgia. Participation in the Retirement System is not segregated by employee groups of individual governmental units and the Office has no further liability under the retirement system other than future employer contnbutions as established for each fiscal year. Information relative to the plan description, funding status and historical trends is presented in the financial report ofthe Employees' Retirement System ofGeorgia for the year ended June 30, 1994. GEORGIA DEFINED CONTRIBUTION PLAN The State ofGeorgia also provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Employees' Retirement System ofGeorgia referred to above through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% of their gross salary, with no matching contribution by the employer. A member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of65 with the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System ofGeorgia for the year ended June 30, 1994. -20- OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIIlBIT "F" NOTE 9: LEAVE POLICIES Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment. Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employees' length ofcontinuous State service with a maximum accumulation offorty five days. Employees are paid for unused accumulated annual leave upon retirement or termination ofemployment. See Note 1 - Compensated Absences Certain employees who retire with one hundred and twenty days or more offorfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System ofGeorgia. NOTE l 0: CONTINGENCIES Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount ofexpenditures which may be disallowed by the grantor cannot be determined at this time. Litigation, claims and assessments filed against the Office ofthe Governor, if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department ofAdministrative Services maintains a program ofpurchased insurance and self- insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State ofGeorgia are disclosed in the Staie ofGeorgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994. NOTE 11: BONDINGINFORMATION All employees ofthe Office of the Governor are bonded under a Public Employees Blanket Bond written by Employers Insurance of Wausau, their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1994. Under this agreement the Public Employee Dishonesty Coverage insures the Office ofthe Governor to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance of Duty Coverage insures the Office of the Governor to a maximum of $100,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment. All employees ofthe Office ofthe Governor are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium was paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Office of the Governor to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. -21- SUPPLEMENTARY INFORMATION -23- OFFICE OF THE GOVERNOR COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 1994 EXHIBIT "G" FUND Fitness Ufe Golden Age Travel Health Spa Bonding McFrugal Auto Rental Republic Distributing Corporation Staff Coffee/Flower Fund USA Network Winning Image Promotion ASSETS/ LIABILITIES JULY 1, 1993 ------------ ADDITIONS --------- DELETIONS --------- ASSETS/ LIABILITIES JUNE 30, 1994 ------------- $ 6,896.25 $ 6,896.25 $ 1.000.00 2,050.00$ 2,550.00 500.00 6.47 3,833.65 3,840.12 3,802.93 3,802.93 800.00 800.00 -2,998.17 1,701.00 4,431.14 -5,728.31 300.00 300.00 4,800.00 4,800.00 ------------- ------------- ------------- ------------- $ 1,811.23 $ 20,380.90$ 14,624.19$ 7,567.94 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 24 - FUNDS AVAILABLE REVENUES State Appropriation Federal Revenues Other Revenues Retained OFFICE OF THE GOVERNOR SCHEDULE OF APPROVED BUDGET YEAR ENDED JUNE 30. 1994 SCHEDll.E "1" ORIGINAL AMENDED GOVERNOR'S BUDGET APPROPRIATION APPROPRIATION EMERGENCY FUND ADJUSTMENTS TOTAL $21,785,049.00$ 435,462.00$ 3,225,565.00$ -300,000.00 $25,146,076.00 27,016,077.00 476,404.00 34,628,066.00 62,120,547.00 3,089,776.00 145,850.00 6,994,313.00 10,229,939.00 $51,890,902.00$ 1,057,716.00$ 3,225,565.00 $41,322,379.00 $97,496,562.00 ========= ======= ====== - = ========= ============ EXPENDITURES ------------ Cost of Operations Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Canputer Charges Real Estate Rentals Telecam1Jnications Per Diem, Fees and Contracts Mansion Allowance Intern Stipends and Travel Art Grants of State Funds Art Grants of Non-State Funds H1111anities Grant - State Funds Children and Youth Grants Juvenile Justice Grants Georgia Crime Victims Assistance Program Grants to Local Systems Grants - Local EMA Grants - Other Grants - Civil Air Patrol Grants - Disaster $3,061,629.00 $ 60,000.00$ 3,121,629.00 13,037,018.00$ 491,009.00$ 12,269.00 617,719.00 14,158,015.00 853,217.00 34,125.00 266,415.00 1,153,757.00 255,595.00 26,351.00 96,318.00 378,264.00 15,000.00 -6,619.00 8,381.00 119,531.00 166,256.00 285,787.00 596,380.00 40,845.00 152,535.00 789,760.00 973,937.00 43,462.00 27,817.00 1,045,216.00 306,419.00 1,875.00 50,132.00 358,426.00 25,988,704.00 385,049.00 37,500.00 20,630,270.00 47,041,523.00 40,000.00 40,000.00 160,000.00 110,000.00 270,000.00 2,857,357.00 -50,000.00 61,796.00 0.00 2,869,153.00 511,515.00 95,000.00 606,515.00 42,800.00 25,000.00 0.00 67,800.00 290,975.00 34,000.00 497,829.00 822,804.00 1,144,625.00 480,539.00 1,625,164.00 100,000.00 244,000.00 344,000.00 432,000.00 85,000.00 45,000.00 562,000.00 1,044,200.00 115,209.00 1,159,409.00 111,112.00 111,112.00 60,000.00 60,000.00 ------------- ------------- 3,055,000.00 -------------- 17,562,847.00 ------------- 20,617,847.00 ------------- $51,890,902.00$ 1,057,716.00$ 3,225,565.00 $41,322,379.00 $97,496,562.00 See accanpanying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Infonnation. - 25 - OFFICE OF THE GOVERNOR CASH AND CASH EQUIVALENTS JUNE 30, 1994 SCHEDULE "2" NONINTEREST BEARING ACCOUNTS :NationsBank, N.A., Atlanta, Georgia Wachovia Bank of Georgia, Atlanta, Georgia INTEREST BEARING ACCOUNTS Funds on Deposit with Office of Treasury and Fiscal Services State Investment Pool $-1,589,304.25 802,162.77$ -787,141.48 15,125,240.84 $14,"338,099.36 ==z========= See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 26 - OFFICE OF THE GOVERNOR SCHEDULE OF GOVERNOR'S EMERGENCY FUND YEAR ENDED JUNE 30. 1994 Georgia Emergency Management Agency - Reimburse Georgia National Guard, Department of Defense, for Transportation Costs Related to the GEMA Surplus/Excess Property Program Georgia Council for the Arts - Humanities Council - Help with Expenses in Connection with New Georgia Guide Children and Youth Coordinating Council - United Youth Adult Conference Help with Expenses for "Operation Take Back" Summer Youth Program Children and Youth Coordinating Council - Georgia Sheriff's Youth Homes, Incorporated - Help with Expenses at the Georgia Sheriff's Cherokee Estate to Provide Residential Care and Emergency Shelter for Girls Georgia Council for the Arts - Greater Augusta Arts Council - Help with Expenses Human Relations Commission - Georgia Commission on the Holocaust - Produce Historically Accurate Video Documentary and Curriculum Guide to be Used Statewide as a Teaching Tool to Inform and Educate Students and Educator About the Holocaust Georgia Emergency Management Agency - State Share of Disaster Grants for Fiscal Year 1994 Georgia Children and Youth Coordinating Council - DeKalb Economic Opportunity Authority, Incorporated - Operating Expenses for the Youth Build DeKalb Program Georgia Children and Youth Coordinating Council - Coastal Children's Advocacy Center - Operating Expenses for the Center _ Georgia Council for the Arts - Golden Isles Arts and Humanities Association - For Operating Expenses Georgia Emergency Management Agency - State Share of Disaster Grants for Fiscal Year 1994 - to be Repaid in January Appropriations Bill Children and Youth Coordinating Council - Grant Park Community Center - Operating Expenses for the Center Georgia Children and Youth Coordinating Council - Project Impact - Help with Expenses for the Juvenile Diversion Program Office of Planning and Budget - Help with the Expenses of the Commission on the Preservation of the Capitol Georgia Council for the Arts - Soapstone Center for the Arts, Incorporated - Program Expenses Georgia Council for the Arts - Emily Tubman Monument Committee - Expenses for the Monument and Play Honoring the Life of Emily Tubman Georgia Council for the Arts - Glynn Art Association, Incorporated - Expenses of the "Note of Hope" Play Governor's Office of Consumer Affairs - Renovation of Office Space Georgia Emergency Management Agency - State Share of Satellite - Delivered Early Warning System for School Facilities Children and Youth Coordinating Council - Assist with Program Expenses for the Northwest Georgia Girls' Home Georgia Council for the Arts - Assist with Completion of the Holly Theatre Renovation Project Georgia Emergency Management Agency - Provide State's Share of Federal Disaster Grants Georgia Council for the Arts - Colquitt/Miller Arts Council, Incorporated - Assist with Expenses in Connection with "Swamp Gravy" Production Georgia Emergency Management Agency - Assist with Expenses in Connection with the Repair/Replacement of Water System Equipment for the Ellijay- Gilmer County Water-Sewer Authority Georgia Emergency Management Agency - Assist with Expenses in Connection with the Hookup to GPTV Satellite System for Schools for Severe Weather Warning System Georgia Emergency Management Agency - Assist with Transportation Costs Related to the Surplus/Excess Property Distribution Program See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 27 - SCHEDULE "3" $ 40,000.00 25,000.00 10,000.00 10,000.00 10,000.00 12,500.00 1,745,000.00 5,000.00 4,000.00 2,500.00 725,000.00 5,000.00 7,500.00 10,000.00 5,000.00 16,796.00 10,000.00 9,769.00 5,000.00 10,000.00 5,000.00 426,000.00 12,500.00 59,000.00 15,000.00 40,000.00 ------------- $ 3,225,565.00 -== OFFICE OF THE GOVERNOR SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30. 1994 PROGRAM CFDA NUMBER Commerce, U.S. Department of Economic Development Administration Business Development Assistance Direct 11.301 Consumer Products Safety Commission, U. S. ATV Undercover Visits Direct N/A Education, U.S. Department of Vocational Education - State Councils Direct Drug-Free Schools and Communities Direct 84.053 84 .186 Energy, U.S. Department of State Energy Conservation Petroleum Violation Escrow Funds Stripper Well Oil Violation Funds Direct Weatherization Assistance for Low-Income Persons Direct Energy Extension Service Direct Energy Conservation for Institutional Buildings Direct Nuclear Energy, Reactor Systems Development and Technology Direct 81.041 81.042 81.050 81.052 81. 095 Equal Employment Opportunity Commission, U.S. Employment Discrimination - State and Local Anti-Discrimination Agency Contacts Direct 30.001 Federal Emergency Management Agency Hazardous Materials Training Program for Implementation of the Superfund Amendment and Reauthorization Act (Sara) of 1986 (Sara Title III Training Program) Direct Community Assistance Program Direct Civil Defense - State and Local Emergency Management Institute Direct State Disaster Preparedness Grants Direct Facility Survey, Engineering and Development Direct Disaster Assistance Direct Hazardous Mitigation Assistance Direct Hurricane Preparedness Direct Earthquake Hazards Reduction Direct Emergency Management Institute Field Training Institute Direct State and Local Management Assistance Other Assistance Direct Facilities and Equipment Direct 83.011 83.105 83.503 83.505 83.509 83.516 83.519 83.520 83.521 83.528 83.531 83.532 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 28 - SCHEDULE "4" Page 1 AMOUNT $ 898.76 11,360.97 235,037.69 23,539.11 249,238.14 4,050,415.91 95,063.79 270,958.94 530,883.97 67,623.82 50,313.80 6,000.00 1,334,002.27 30,134.68 21,002.27 16,487,588.26 18,000.00 33,822.36 73,010.78 130,209.65 579,223.73 108,250.03 OFFICE OF THE GOVERNOR SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30. 1994 PROGRAM Housing and Urban Development, U. S. Department of Fair Housing Assistance Program - State and Local Direct Fair Housing Initiatives Direct Justice, U. S. Department of Juvenile Justice and Delinquency Prevention Allocation to States Direct Criminal Justice Statistics Development Through Georgia Department of Community Affairs Justice Research, Development, and Evaluation Project Grant Direct Crime Victim Assistance Direct Crime Victim Compensation Direct Drug Control and System Improvement - Formula Grant Direct Labor, U. S. Department of Job Training Partnership Act Direct National Foundation on the Arts and the Humanities Promotion of the Arts - Arts in Education Direct Promotion of the Arts - State and Regional Program Direct Promotion of the Arts - Folk Arts Direct Transportation, U.S. Department of State and Community Highway Safety Direct CFDA NUMBER 14.401 14.409 16.540 16.550 16.560 16.575 16.576 16.579 17.250 45.003 45.007 45.015 20.600 SCHEDULE "4" Page 2 AMOUNT $ 44,684.55 43,324.92 1,524,024.44 55,932.52 287,448.62 1,642,582.00 30,627.57 10,163,442.01 84,610.31 58,100.00 632,352.91 33,272.84 223,969.72 ------------- $-3-9--,2=3s0--,=95-s1=.3-4- See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 29 - OFFICE OF THE GOVERNOR SCHEDULE OF OTHER OPERATING EXPENSES YEAR ENDED JUNE 30. 1994 COST QF OPERATIONS Cleaning Service Clipping Service Film Processing Frei?htt Express and Storage .Publ ci { Revistra ion Fees Re ocation Expense Rewards Subscriptions and Dues REGULAR OPERATING EXPENSES Court Costs Film Processing Freight. Express and Storage Investigative Expense Meals - Prisoners Publicit{ Revistra ion Fees Re ocation Expense Subscriptions and Dues Substitute Teacher ~QMP!,!TER CHARGES RReevoicsatrtiaotinonExFpeeensse Service Charge Subscriptions and Dues ARTS GRANTS OF STATE FUNDS Film Processing Frei?ht. Express and Storage Publ city RSuegsitsittruattieonTeFaecehser ART GRANTS OF NON-STATE FUNDS Film Processing Publicit{ Registra ion Fees Su scriptions and Dues Substitute Teacher See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 30 - SCHEDULE "5" $ 13.40 2,070.15 15,969.07 5,473.97 2,151.88 7,311.05 121.97 4,000.00 183.069.66 $ 220.181.15 $ 1,641.40 2,999.43 10,725.49 1,374.58 1,449.37 1,323.14 39,917.25 6,763.92 93,781.06 869.30 $ 160.844.94 $ 7,575.48 44.20 6.95 228.46 $ 7.855.09 $ 79.47 40.97 205.90 50.00 96.00 $ 472.34 $ 1,462.61 250.00 4,698.52 9,535.00 362.00 $ 16,308.13 OFFICE OF THE GOVERNOR SUMMARY OF SALARIES. TRAVEL, AND PER DIEM AND FEES YEAR ENDED JUNE 30. 1994 SCHEDULE "6" BUDGET FUND ----------- Cost of Operations Regular Computer Charges Art Grants of State Funds Art Grants of Non-State Funds SALARIES -------- TRAVEL PER DIEM AND FEES -------- $ 1,692,621.55 $ 26,106.36 $ 43,917.38 9,816,103.12 258,848.17 1,133,569.26 10,200.00 60,198.89 1,097.90 150,234.45 51,145.70 2,865.97 119,983.60 ------------- ------------- ------------- $11,620,069.26$ 288,918.40$ 1,457,904.69 ============= ============= ==========c See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 31 - SECTIONil FINDINGS AND IMPROPER OR QUESTIONED COSTS OFFICE OF THE GOVERNOR SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1994 STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS The status offindings disclosed in the review report for the year ended June 30, 1993, is summarized below: Audit Control Number Status ofFinding 422-93-01 422-93-02 422-93-03 422-93-04 422-93-05 See Audit Control Number 422-94-01 Corrective Action Implemented See Audit Control Number 422-94-02 See Audit Control Number 422-94-03 Corrective Action Implemented PRIOR YEAR/CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Audit Control Number 422-94-01 The review report for the year ended June 30, 1993, noted that internal accounting control procedures ofthe Office of the Governor did not provide for an adequate separation of duties in the performance of certain accounting functions and related procedures. For the year under review, a limited review ofthese procedures revealed that the Office of the Governor has made significant changes in the area of General Fixed ~operty Management and has provided for adequate separation ofduties in that area. While the Office has made many improvements in the area of Cash and Cash Equivalents, additional refinements in employee duties are necessary to achieve an adequate degree of separation of duties in this area. The Office ofthe Governor should continue to review the accounting procedures in place, design procedures which would enhance segregation of duties relative to Cash and Cash Equivalents, and implement those procedures to strengthen the internal controls over this accounting function. Federal Grantor Agencies Affected: U. S. Department of Commerce U. S. Consumer Products Safety Commission U.S. Department ofEducation U. S. Department ofEnergy U. S. Equal Employment Opportunity Commission Federal Emergency Management Agency U. S. Department ofHousing and Urban Development U. S. Department ofJustice U.S. Department ofLabor National Foundation on the Arts and the Humanities U.S. Department ofTransportation OFFICE OF THE GOVERNOR SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1994 PRIOR YEAR/CURRENT YEAR MONITORING OF SUBRECIPIENTS Deficiencies in Monitoring Subrecipients Federal Financial Assistance Nonmajor Programs Audit Control Number 422-94-02 The review report for the year ended June 30, 1993, noted that the Office of the Governor was not in compliance with the subrecipient monitoring requirements of O:MB Circular A-128 for certain Federal programs under the control ofthe Office ofEnergy Resources. For fiscal year 1994, we reviewed the system for monitoring subrecipients for these prQgrams as required by 0MB Circular A-128, which states, in part: "9. Subrecipients. State or local governments that receive Federal financial assistance and provide . $25,000 or more ofit in a fiscal year to a subrecipient shall: b. determine whether the subrecipient spent Federal assistance funds provided in accordance with applicable laws and regulations. This may be accomplished by reviewing an audit of the subrecipient made in accordance with this Circular, 0MB Circular A-110, or through other means (e.g., program reviews) ifthe subrecipient has not yet had such an audit;..." The Circular further states that subrecipients subject to the foregoing requirements should submit audit reports no later than thirteen months after the end ofthe audit period. As part ofour examination, we reviewed a sample oftwenty-one subrecipients requiring audits for the fiscal year ended June 30, 1993, applicable to the following Federal programs: (1) State Energy Conservation (CFDA 81.041) (2) Weatherization Assistance for Low-Income Persons (CFDA 81.042) (3) Energy Extension Service (CFDA 81.050) (4) Energy Conservation for Institutional Buildings (CFDA 81.052) (5) Petroleum Violation Escrow Funds (CFDA 81.041) (6) Low-Income Home Energy Assistance (CFDA 93.568) Ofthe twenty-one subrecipients reviewed, our examination revealed the following: (1) Fifteen audits had not been received as ofNovember 4, 1994. (2) Ofthe six audits which were available for review, (a) one audit did not contain a Schedule ofFederal Financial Assistance. (b) one audit did not contain a statement that the audit had been conducted in compliance with 0MB Circular A-128. The Office of the Governor, Office of Energy Resources should implement internal control procedures to ensure compliance with subrecipient monitoring as required in 0MB Circular A-128. OFFICE OF THE GOVERNOR SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1994 PRIOR YEAR/CURRENT YEAR MONITORING OF SUBRECIPIENTS Deficiencies in Monitoring Subrecipients Federal Financial Assistance Nonmajor Programs Audit Control Number 422-94-03 The review report for the year ended June 30, 1993, noted that the Office of the Governor was not in compliance with the subrecipient monitoring requirements of 0MB Circular A-128 for certain Federal programs under the control ofthe Criminal Justice Coordinating Council. For fiscal year 1994, we reviewed the system for monitoring subrecipients ofthese programs as required by 0MB Circular A-128, which states, in part: "9. Subrecipients. State or local governments that receive Federal financial assistance and provide $25,000 or more ofit in a fiscal year to a subrecipient shall: b. detennine whether the subrecipient spent Federal assistance funds provided in accordance with applicable laws and regulations. This may be accomplished by reviewing an audit of the subrecipient made in accordance with this Circular, 0MB Circular A-110, or through other means (e.g., program reviews) ifthe subrecipient has not yet had such an audit;..." The Circular further states that subrecipients subject to the foregoing requirements should submit audit reports no later than thirteen months after the end of the audit period. As part ofour examination, we reviewed a sample of twenty-five subrecipients requiring audits for the fiscal year ended June 30, 1993, applicable to the following Federal programs: (I) Crime Victim Assistance (CFDA 16.575) (2) Drug Control and System Improvement -Formula Grant (CFDA 16.579) Ofthe twenty-five subrecipients reviewed, our examination revealed that sixteen audits had not been received as ofNovember 4, 1994. Subsequent to the period under review, The Office of the Governor and the Criminal Justice Coordinating Council implemented internal control procedures that ensures compliance with subrecipient monitoring as required in 0MB Circular A-128.