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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, 
~~ 
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.