Management report, Office of the Governor, an organizational unit of the state of Georgia, year ended June 30, 1998

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MANAGEMENT REPORT OFFICE OF THE GOVERNOR AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 1998
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STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

OFFICE OF THE GOVERNOR MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGET FUND

B SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

2

SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION ill
CURRENT YEAR FINDINGS AND QUESTIONED COSTS
SCHEDULE OF 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
October 26, 1998

Honorable Zell Miller, Governor Members of the General Assembly of Georgia
and Honorable Timothy P. Burgess, Director Office of Planning and Budget
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 ofand for the year ended June 30, 1998, we have performed certain audit procedures at the Office ofthe Governor. Accordingly, the financial statements and compliance activities of the Office ofthe Governor 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 Office of the Governor 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 of the Office of the Governor. However, this report is a matter of public record and its distribution is not limited.
Respectfully submitted,
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Claude L. Vickers State Auditor
CLV:ds

SECTION I SELECTED FINANCIAL INFORMATION

OFFICE OF THE GOVERNOR ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30.1998

EXHIBIT "A"

FUND BALANCE - JUNE 30.1998
SUMMARY OF FUND BALANCE
Reserved State Funds Year 2000 Remediation Other Projects Federal Financial Assistance Crime Victims Emergency Fund Georgia Council for the Arts Georgia Children and Youth Coordination Council Georgia Emergency Management Agency Disaster Assistance Matching Disaster Assistance Contingency Georgia Policy Council for Children and Families Governors Public Safety Awards Program Local Block Grant Program
Surplus

$ 116,768,125.96 $

3,763.26 $ 116,771,889.22

$ 110,741,067.00 700,000.00 4,914.48
2,816,589.46 38,541.00
439,219.88
349,509.70 238,979.26
94,742.72 3,285.00 6,724.68
$ 115,433,573.18 1,334,552.78 $

$ 110,741,067.00 700,000.00 4,914.48
2,816,589.46 38,541.00
439,219.88

349,509.70 238,979.26
94,742.72 3,285.00 6,724.68

$ 115,433,573.18

3,763.26

1,338,316.04

$ 116,768,125.96 $ - 1-

3,763.26 $ 116,771,889.22

OFFICE OF THE GOVERNOR 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

VARIANCEFAVORABLE (UNFAVORABLE)

$ 139,577,157.00 $ 139,327,157.00 $

170,229,200.00 130,595,524.69

4,697,538.00

3,917,695.63

$ 314,503,895.00 $ 273,840,377.32 $

-250,000.00 -39,633,675.31
-779,842.37
-40,663,517.68

13,262,262.00

17,753,429.38

4,491,167.38

$ 327,766,157.00 $ 291,593,806.70 $ -36,172,350.30

EXPENDITURES
Personal Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Cost of Operations 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 Criminal Justice Grants Grants - Disaster Year 2000 Project

$ 17,802,657.00 $ 3,318,152.00 458,584.00 318,269.00 1,115,989.00 1,049,908.00 694,655.00 8,478,915.00 3,354,364.00 40,000.00 206,750.00 3,900,000.00 249,817.00 175,000.00 276,426.00 4,461,824.00
2,438,440.00 684,400.00
1,157,458.00 86,062.00 57,000.00
83,145,684.00 82,481,475.00 111,814,328.00

16,859,707.15 $ 1,913,373.22 387,689.27 135,960.58 1,020,743.85 999,077.83 693,030.41 7,678,463.18 2,782,625.92 40,000.00 207,421.41 3,900,000.00 213,684,58 175,000.00 276,426.00 2,514,429.40
1,818,021.63 642,738.97
1,089,651.75 0.00
57,000.00 50,353,424.09 81,454,493.11
1,063,614.16

942,949.85 1,404,778.78
70,894.73 182,308.42
95,245.15 50,830.17
1,624.59 800,451.82 571,738.08
0.00 -671.41
0.00 36,132.42
0.00 0.00 1,947,394.60
620,418.37 41,661.03 67,806.25 86,062.00 0.00
32,792,259.91 1,026,981.89
110,750,713.84

$ 327,766,157.00 $ 176,276,576.51 $ 151,489,580.49

Excess of Funds Available over Expenditures

$ 115,317,230.19 $ 115,317,230.19

-2-

SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

OFFICE OF THE GOVERNOR 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

422-96-01 422-96-02 FS-422-97-01 FS-422-97-02

Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

OFFICE OF THE GOVERNOR SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1998
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
BUDGET PREPARATIONIEXECUTION Overexpenditure of Budget Unit Object Class Finding Control Number: FS-422-98-01
The total approved budget for the Qffice ofthe Governor provided for expenditures totaling $327,766,157.00. A comparison of anticipated funds available and budget expenditures to actual funds available and expenditures by object class indicates that the object class Intern Stipends and Travel was overspent in the amount of$671.41.
The overexpenditure identified above is in violation of Section 54 of the Amended Appropriations Act of 1997-1998. This overexpenditure was caused by the Agency's failure to monitor the expenditure offunds against the budgeted expenditures by object class.
The Office of the Governor should review its internal control procedures over budget operations, design procedures which would prohibit the expenditure offunds in excess of budget approval and implement those procedures to strengthen the internal controls over the budget function.