Management report, Department of Public Safety, an organizational unit of the state of Georgia, year ended June 30, 2000

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. STATE OF GEORGIA .

. . DEPARTMENT OFAUDITS AND ACCOUNTS
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.MANAG~MENT REPORT .DEPARTMENT OF PIJBLIC SAFETY AN ORGANIZATIONAL UNIT OF THE STATEOF GEORGIA.
YEAR ENDED JUNEJ0, 2000
Russell W. Hinton . State Auditor

DEPARTMENT OF PUBLIC SAFETY MANAGEMENT REPORT -TABLE OF CONTENTS-

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGETFUND

1

SCHEDULESOFFUNDSAVAILABLEANDEXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

B

"A" DEPARTMENT OF PUBLIC SAFETY

2

C

"B" UNITS ATTACHED FOR ADMINISTRATIVE PURPOSES ONLY 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
November 9, 2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly of Georgia Members of the Board of Public Safety
and Honorable Robert E. Hightower, Commissioner Department of Public Safety
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 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, 2000, we have performed certain audit procedures at the Department ofPublic Safety. Accordingly, the financial statements and compliance activities ofthe Department ofPublic Safety 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 Department of Public Safety as of and 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 of management of the Department of Public Safety and members ofthe Board 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

SECTION I SELECTED FINANCIAL INFORMATION

DEPARTMENT OF PUBLIC SAFETY ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30, 2000

EXHIBIT"A"

FUND BALANCE- JULY 1, 1999
Reserved Surplus
ADDITIONS
Adjustments to Prior Year's Contracts and Accounts Payable Excess of Funds Available over Expenditures
Exhibit "B" Increase in Reserve for Inventories
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
Decrease in Reserve for Inventories Reserved Fund Balance Carried Over from
Prior Year as Funds Available

"A" DEPARTMENT OF PUBLIC SAFETY

"B" UNITS ATTACHED FOR ADMINISTRATIVE PURPOSES ONLY

TOTAL

$

4,816,018.50 $

41,256.22

394,311.58 $ 5,210,330.08

460,534.30

501,790.52

$

4,857,274.72 $

854,845.88 $ 5,712,120.60

$

61,211.59 $

4,727,003.20

$

4,788,214.79 $

99,299.07 $ 160,510.66

213,869.62 38,727.58

4,940,872.82 38,727.58

351,896.27 $ 5,140,111.06

$

41,256.22 $

2,653.18 11,118.80

3,012,138.94

$

3,067,167.14 $

460,534.30 $ 501,790.52

5,427.76

8,080.94 11,118.80

115,910.86 3,128,049.80

581,872.92 $ 3,649,040.06

FUND BALANCE - JUNE 30, 2000

$

6,578,322.37 $

624,869.23 $ 7,203,191.60

SUMMARY OF FUND BALANCE
Reserved Inventories Drug Asset Sharing Program Public Safety Training Center Federal Financial Assistance
Surplus

$

1,792,760.76 $

4,154,887.17

200,000.00

$

6,147,647.93 $

430,674.44

317,128.30 $ 2,109,889.06

4,154,887.17

128,977.30

128,977.30

13,121.98

213,121.98

459,227.58 $ 6,606,875.51

165,641.65

596,316.09

$

6,578,322.37 $

624,869.23 $ 7,203,191.60

- 1-

DEPARTMENT OF PUBLIC SAFETY SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" DEPARTMENT OF PUBLIC SAFETY 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

VARIANCEFAVORABLE (UNFAVORABLE)

$ 107,904,583.00 $ 107,904,583.00 $

2,809,680.00

1,224,722.35

3,251,816.00

5,359,540.82

$ 113,966,079.00 $ 114,488,846.17 $

0.00 -1,584,957.65 2,107,724.82
522,767.17

0.00

3,012,138.94

3,012,138.94

_ _ _ _ $ 113,966,079.00 $ 117,500,985.11 $

3..,.,5:...3._4__,_9;_ 06.11

EXPENDITURES
Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Capital Outlay State Patrol Posts Repairs and Maintenance Conviction Reports Driver License Processing Year2000

$ 85,759,411.00 $ 84,911,561.17 $

10,513,245.00

10,723,509.90

355,524.00

332,195.23

4,513,281.00

4,356,294.00

479,782.00

453,412.91

3,489,464.00

3,417,554.02

104,674.00

105,283.44

3,043,881.00

3,055,433.37

1,677,316.00

1,418,766.30

15,000.00

15,000.00

265,000.00

236,049.46

333,651.00

333,199.49

2,944,234.00

2,944,106.62

471,616.00

471,616.00

847,849.83 -210,264.90
23,328.77 156,987.00
26,369.09 71,909.98
-609.44 -11,552.37 258,549.70
0.00 28,950.54
451.51 127.38
0.00

$ 113,966,079.00 $ 112,773,981.91 $

1,192,097.09

---'------'---

Excess of Funds Available over Expenditures -2-

$ 4,727,003.20 $ ==4=,7=2=7=,0=03==20=

DEPARTMENT OF PUBLIC SAFETY SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" UNITS ATTACHED FOR ADMINISTRATIVE PURPOSES ONLY YEAR ENDED JUNE 30, 2000

EXHIBIT"C"

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)

$ 14,767,504.00 $ 14,767,504.00 $

7,911,069.00

5,727,356.94

2,870,389.00

2,685,248.33

$ 25,548,962.00 $ 23,180,109.27 $

0.00 -2,183,712.06
-185, 140.67
-2,368,852. 73

0.00

115,910.86

115,910.86

EXPENDITURES
Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Capital Outlay Highway Safety Grants Peace Officers Training Grants Y2K Project

$ 25,548,962.00 $ 23,296,020.13 $ -----=2,2-5-2,-9-41-.-87-

$ 10,071,684.00 $
4,425,040.00 210,969.00 100,241.00 244,902.00 304,122.00 194,547.00 360,148.00
2,397,465.00 300,000.00
2,877,149.00 4,054,643.00
8,052.00

9,801,935.95 $
3,656,202.60 128,212.65 77,142.00 230,096.74 287,268.42 174,355.82 277,267.87
1,830,601.06 299,963.20
2,276,382.18 4,042,722.02
0.00

269,748.05 768,837.40
82,756.35 23,099.00 14,805.26 16,853.58 20,191.18 82,880.13 566,863.94
36.80 600,766.82
11,920.98 8,052.00

$ 25,548,962.00 $ 23,082,150.51 $ ----2=,4-66-,'8-11-.-49-

Excess of Funds Available over Expenditures -3-

$ 213,869.62 $ =====21=3,=86=9=.6=2

SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS

DEPARTMENT OF PUBLIC SAFETY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT fuadequacies in Operation of Property Management System Finding Control Number: FS-466-00-01
Our examination included a review ofthe internal accounting controls utilized by the Department of Public Safety in maintaining their State Property System and also included testing the system for compliance with State laws and regulations. The following condition relating to inappropriate accounting practices was found to exist:
Equipment additions were not reconciled to the general ledger expenditure accounts.
The Department is required to maintain equipment inventories in accordance with provisions ofState laws and regulations. The deficiency identified was caused by the Department's failure to follow guidelines for maintaining equipment inventories.
The Department should establish the necessary internal controls to ensure that equipment inventories are maintained in accordance with State laws and regulations.