DEPARTMENT OF INSURANCE 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 C RECONCILIATION OF SALARIES 3 SECTION 11 AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W, Sunc 214 w. RUSSELL HINTON STATE AUDITOR (4CM)6S6-2!7-4 Atlanta. Georgia 30334-8400 December 11, 2002 Honorable Roy E Barnes, Governor Members of the General Assembly of Georgia and Honorable John W Oxendine, Comm1ss10ner Department of Insurance 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 audrt procedures at the Department of Insurance A=rdmgly, the financial statements and compliance ac!MtIes of the Department of Insurance were examined to the extent necessary m order to express an opinion as to the fair presentabon of the financial statements contained 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 informalJon pertinent to the financial and compliance actIvIt1es of the Department of Insurance as of and for the year ended June 30, 2002 The particular Informat1on 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, Ru ell W Hinton State Audrtor RWH kaf SECTION I SELECTED FINANCIAL INFORMATION DEPARTMENT OF INSURANCE ANALYSIS OF CHANGES IN FUND BALANCE BUDGET FUND YEAR ENDED JUNE 30. 2002 EXHIBIT "A" FUND BALANCE - JULY l 2001 Reserved Surplus ADDITIONS Excess of Funds Available over Expendrtures Exhibit "B" DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Office of Treasury and FISCBI Services Year Ended June 30, 2001 Other Deducllons Resarved Fund Balance Camed Over from Pnor Year as Funds Available $ 102,647 26 66 791 01 $ _ ___,1""69,..4-"3""8-=2"-7 s _ _--'4""s"'1""'1s.,,9-=8"'"8 $ 66,791 01 114,810 00 102 647 26 $ -----=2aa.84"'2~4=8-=2"-7 FUND BALANCE - JUNE 30 2002 s _ _....J._36_.J_s_9_8_8 SUMMARY OF FUND BALANCE Surplus s _ _....3._36_.3_s_9_8_8 - 1- DEPARTMENT OF INSURANCE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND YEAR ENDED JUNE 30. 2002 EXHIBIT "B" FUNDS AVAILABLE REVENUES Slate Apprcprlabon Federal Revenues Other Revenues Retained ~BRY::QV!;R EBQM PRIQB YEAB Transfer trcm Reserved Fund Balance BUDGET ACTUAL VARIANCEFAVORABLE !UNFAVORABLE} $ 1590965400 $ 15 909,654 00 $ 1,686,618 00 804,858 00 215 431 00 148 487 39 $ 17,811,703 00 $ 16,862,999 39 $ 000 -881,760 00 -66 943 61 -948 703 61 0 00 10264726 102 647 26 $ t781170300$ 16 965,646 65 $ ____:::84::,6c.;0::.::5:.::6..::3:::.5 EXPENDITURES Personal Servces Regular Operabng Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals T elecommun1cations Per Dem and Fees $ 15,092,924 00 $ 14,033 174 04 $ 794 879 00 743,107 33 463,030 00 402 709 47 130,632 00 13125068 68,401 00 10 590 00 225,768 00 224,558 92 560 884 00 560 684 00 383,143 00 364,907 03 92 042 00 43 495 30 1 059 749 96 51,771 67 60 320 53 -61868 5781100 1 209 OB 200 00 18,235 97 48 546 70 s_ _ $ 17 81170300 $ 1s 514,476 11 .:.1,::;29::.:1_,2:;:2:.::6..:2=-3 Excess of Funds Avaiable over Expendrtures 451 169 88 _ _ _4;;;;5~1:,.1;.6;;;9.::8;;.8 -2- DEPARTMENT OF INSURANCE RECONCILIATION OF SALARIES YEAR ENDED JUNE 30. 2002 Total per Annual Supplement Accruals June 30, 2001 June 30. 2002 EXHIBIT "C" $ 10.565,489 56 -7,797 98 14 461 12 $ 10,572,152 70 -3- SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS DEPARTMENT OF INSURANCE AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-408-01-01 Previously Reported Correctlve Action Implemented FS-408-01-02 Previously Reported Corrective Action Implemented FS-408-01-03 Previously Reported Corrective Actlon Implemented