Management report, Judicial Branch, an organizational unit of the state of Georgia, year ended June 30, 2000

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS GA
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MANAGEMENT REPORT JUDICIAL BRANCH
AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor

JUDICIAL BRANCH 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 EXPENDITIJRES

COMPARED TO BUDGET

BUDGET FUND

2

C RECONCILIATION OF SALARIES AND TRAVEL

3

SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-8400
January 10, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Justices of the Supreme Court of Georgia Judges of the Court of Appeals of Georgia Members of the Executive Committee of the Council of Superior Court Judges Members of the Prosecuting Attorneys' Council of Georgia Members of the Executive Committee of the Council of Juvenile Court Judges Trustees of the Institute of Continuing Judicial Education Members of the Georgia Magistrate Courts Training Council Members of the Board of the Judicial Council Members of the Judicial Qualifications Commission Members of the Executive Committee ofthe Georgia Indigent Defense Council Members of the Georgia Courts Automation Commission Members of the Office of Dispute Resolution Honorable Dana Russell, Commissioner Department of Administrative Services
and Honorable Jay B. Martin, Interim Director Administrative Office of the Courts
Ladies and Gentlemen:
As part ofour audit ofthe statutory basis financial statements ofthe State ofGeorgia presented in the State ofGeorgia Report ofthe State Auditor, the general purpose financial statements ofthe State of Georgia presented in the State ofGeorgia Comprehensive Annua/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, 2000, we have performed certain audit procedures at the Judicial Branch. Accordingly, the financial statements and compliance activities of the Judicial Branch were examined to the extent considered necessary in order to express an opinion as to the fair presentation ofthe 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 Judicial Branch as ofand for the year ended June 30, 2000. The particular information provided is enumerated in the Table of Contents.

This report is intended solely for the information and use ofmanagement ofthe Judicial Branch and members of the various organizations comprising the Judicial Branch and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
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Russell W. Hinton State Auditor
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SECTION I SELECTED FINANCIAL INFORMATION

JUDICIAL BRANCH ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30, 2000
FUND BALANCE,- JULY 1, 1999 Reserved Surplus
ADDITIONS Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures Exhibit "B" Prior Year's Checks Voided Reimbursement of Prior Year's Expenditures Reimbursement from Employees' Retirement System for Retired Judges
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1999 Adjustments to Prior Year's Accounts Receivable Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30, 2000
SUMMARY OF FUND BALANCE Reserved Food Stamp Prosecution Agreement Georgia Bar Foundation Grant
Surplus
- 1-

EXHIBIT"A"
$ 4,042,600.99 539,099.47
$ 4,581,700.46
$ 104,464.63 4,816,898.08 75.00 1,666.82 142,281.89
$ 5,065,386.42
$ 539,099.47 189,349.01
4,042,600.99 . $ 4,771,049.47
$ 4,876,037.41
$ 608,798.14 3,544,984.34
$ 4,153,782.48 722,254.93
$ 4,876,037.41

JUDICIAL BRANCH SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30, 2000

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)

$ 111,540,142.00 $ 111,540,142.00 $

1,495,027.00

2,605,294.74

6,863,456.00

6,403,531.28

$ 119,898,625.00 $ 120,548,968.02 $

0.00 1,110,267.74 -459,924.72
650,343.02

0.00

4,042,600.99

4,042%600.99

$ 119,898,625.00 $ 124,591,569.01 $ _ _4_,_,6.:..;9;,:2c.:.,:,9_;.4.;_;4...:..0_1

EXPENDITURES
Personal Services Other Operating Prosecuting Attorney's Council Judicial Administrative Districts Payment to Council of Superior Court Clerks Payment to Resource Center Computer Information Network

$ 15,458,484.00 $ 14,950,922.60 $

97,505,046.00

96,813,439.73

3,042,892.00

3,841, 152.50

2,605,208.00

2,863,064.25

41,000.00

40,065.99

500,000.00

500,000.00

745,995.00

766%025.86

507,561.40 691,606.27 -798,260.50 -257 ,856.25
934.01 0.00
-20,030.86

_ _ _ $ 119,898,625.00 $ 119,774,670.93 $

12...;3;..:,..9.;;.5.;;,4...;..:0..;;7_;_

Excess of Funds Available over Expenditures

$ 4!816,898.08 $==4::::!'=:81..6.:::!::,8=9=8~.0=8

-2-

JUDICIAL BRANCH RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30. 2000

EXHIBIT"C"

Totals per Annual Supplement Accruals
June 30, 1999 June 30, 2000 Amounts Paid to Employees' Retirement System of Georgia for Salaries of Retired District Attorneys
and Superior Court Judges for the Period July 1, 1999 through June 30, 2000
SUMMARY OF SALARIES AND TRAVEL BY OBJECT Personal Services Other Operating Prosecuting Attorneys' Council Judicial Administrative Districts Computerized Information Network

SALARIES

TRAVEL

$ 67,695,865.40 $ 1,014,987.89

2,400.00

-415.84

2, 166,005.32 $ 69,864,270.72 $ 1,014,572.05

$ 11,010,826.48 55,464,343.79 $ 1,794,768.92 1,454,279.73 140,051.80

883,748.50 32,199.02 68,900.32 29,724.21

$ 69,864,270.72 $ 1,014,572.05

-3-

SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS

JUDICIAL BRANCH SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUNALENTS Inadequate Accounting Procedures Administrative Office of the Courts Finding Control Number: FS-430-00-01
Our examination of the accounting records of the Judicial Branch - Administrative Office of the Courts disclosed deficiencies in the management of cash assets as follows:
(1) The June 30, 2000 bank reconciliations were not prepared timely for the two bank accounts maintained: Wachovia - General Operating Account and Wachovia - Payroll Account.
(2) Reconciling items identified during the bank reconciliation process were not corrected in a timely manner. As of June 30, 2000, reconciling items of $746,237.60 on the General Operating Account and $676,182.39 on the Payroll Account dating from August 1998 had not been corrected.
(3) Reconciling items were inadequately documented and/or identified in the two bank reconciliations.
These deficiencies were a result of the Administrative Office of the Courts' failure to adequately manage cash assets of the Agency.
The Administrative Office of the Courts should establish procedures to ensure that monthly bank statements are reconciled with the accounting records on a timely basis.