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 
 
BUDGET FUND 
 
1 
 
SCHEDULES OF FUNDS AVAILABLE AND EXPENDITURES 
 
COMPARED TO BUDGET 
 
BUDGET FUND 
 
B 
 
"A" DEPARTMENT OF PUBLIC SAFETY 
 
2 
 
C 
 
"B" UNITS ATTACHED FOR ADMINSTRATIVE 
 
PURPOSES ONLY 
 
3 
 
D RECONCILIATION OF TRAVEL 
 
4 
 
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 
 
 DEPARTMENT OF AUDITS AND ACCOUNTS 
 
254 Waslungton Street. S W. Suite 214 
 
RtssEI I W.11,-,o, 
<;T',Tl. AL"DllOR 
(404)6~6-217  
 
Atlanta, Georgia 30334-8400 
 
December 11, 2002 
Honorable Sonny Perdue, Governor Members of the General Assembly of Georgia Members of the Board of Public Safety 
and Honorable George A Ellis, Comm1ss1oner Department of Public Safety 
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 audit procedures at the Department of Public Safety Accordingly, the financial statements and compliance acbv1t1es of the Department of Public Safety were examined to the extent 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 controls as required by the Single Audit Act Amendments of 1996 
This Management Report contains information pertinent to the financial and compliance act1v1t1es of the Department of Public Safety as of and for the year ended June 30, 2002 The particular information provided 1s enumerated m the Table of Contents 
This report 1s intended solely for the information and use of management of the State of Georgia and members of the Board and 1s not intended to be and should not be used by anyone other than these specified parties 
Respectfully submitted, 
 
RWH ras 
 
 SECTION I SELECTED FINANCIAL INFORMATION 
 
 DEPARTMENT OF PUBLIC SAFETY ANALYSIS OF CHANGES IN FUND BALANCE 
BUDGET FUND YEAR ENDED JUNE 30 2002 
 
EXHIBIT"A" 
 
-FUND B<>J..IW::E - JULY 1 2001 Surplus 
 
"A" 
CE'i>RThENT CE PLBUC SAFETY 
 
"8'' 
LNTS ATTAO-IED FCR KMNISTRA~ Plff'CISESCN..Y 
 
s 
 
7,161,155 56 $ 
 
81311034 
 
458,99755 $ 40989787 
 
TOTAL 
7,620,15311 1,223,00821 
 
$ 
 
1974 265 oo s_ _....,ffiB=,,895=.=42,.,_ s_ ___,a,,,843""'"1""5""132ee. 
 
AIXlllCNS 
 
,'qustmerts lo Pnor Year's Q:r1tracls !rid />ax:u1ts ~ S 
Emess a Furds Available"" ~ 
Bihib<t''B" 
Exh!btt''C" lnaeaseu,tr,;entones 
Pnor Years Oled<s 1/ooded 
 
16767529 S 
3464619 64 
349,911 70 155000 
 
888,CEl.94 $ 
-6!1! 18712 81,44922 21744 
 
1 055,75823 
3464,61964 
431 36092 176744 
 
c:El&)lOOS 
 
l.heseNed Flni Sa1a-w::e (Surplus) 
 
- 
 
lo C1fice a Treaso,y and 
 
FISCal 5eMcEs 
 
i>anns- Year Ended June 30 2001 
,'qustrrents 1o Pnor Years 
 
- 
 
Finl Sala-w::e Gamed 0...-fnxn 
 
Pnor Year as Furds Available 
 
$ 
 
3 983 756 63 $_ _....,36,ec1,.,562=..=4B,e. $_ ___;4"".345=3'-'19._1~1 
 
s 
 
81311034$ 
 
409,89787 S 
 
122300821 
 
591875 76 
 
160,009 35 
 
751,94511 
 
523827500 
 
132 60358 
 
5.37087858 
 
s 
 
6.643.26110 s _ __.102.=570"-"-'ao"" s _ __,7""345""""83""1,_,oo"" 
 
FLt1D B<>J..iW::E - Jtx,E 30 2002 
-SlMNB)'CE FlIDBYl:,CE 1"'""1tones Asse1 Fafetue A'c9'arn Ge:xga Pola, kaim/ 
&Jrplus 
 
s 
 
5 314 75143 s _ _ _527__.__887_1_0 s_--.:5:.:842=648=53~ 
 
s 
 
2.272.792.'} $ 
 
2,524,762.45 
 
s 
 
4 797 554 71 $ 
 
517.2CE 72 
 
s 
 
5314 76143 $ 
 
407,84319 $ 
99030 
40083349 S 11905361 
 
2.68063545 2.524,762.45 
99030 
5 200,38820 63626033 
 
527 88710 S 
 
5.84264853 
 
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 DEPARTMENT OF PUBLIC SAFETY SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES 
COMPARED TO BUDGET BUDGET FUND 
"A" DEPARTMENT OF PUBLIC SAFETY YEAR ENDED JUNE 30 2002 
 
EXHIBIT "B" 
 
FUNDS AVAILABLE REVENUES 
State Appropnabon Federal Revenues Other Revenues Retained 
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance 
 
BUDGET 
 
ACTUAL 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ 85100,13900 $ 85,100,13900 $ 
 
6 233,811 00 
 
3,706,204 11 
 
5 783 571 00 
 
3,105,196 39 
 
$ 97,11752100 $ 91,911,53950 $ 
 
000 -2,527,606 89 -2 678 374 61 
-5,205 981 50 
 
0 00 
 
5 238 275 00 
 
5 238.275 00 
 
s_ _ S 97 117,521 00 $ 97,149,814 50 
 
_;,32=-2ac9cc3_.c50.c. 
 
EXPENDITURES 
Personal Services Regular Operabng Expenses Travel Motor Vehlde Purchases Equipment Computer Charges Real Estate Rentals Telecommumcations Per Dtem and Fees Contracts State Patrol Posts Repairs and Maintenance ConVICIJon Reports 
 
$ 71,984 595 00 $ 71,210,713 93 $ 
 
12 769 083 00 
 
11,376 759 67 
 
431,747 00 
 
388 568 89 
 
3,840,818 00 
 
3 598,93194 
 
2 169,962 00 
 
2,052 013 47 
 
1,411,94300 
 
1199,416 70 
 
461,509 00 
 
460,506 28 
 
2,147,396 00 
 
1,634,33071 
 
384 452 00 
 
375,003 60 
 
1,306 475 00 
 
1,193,78148 
 
204 541 00 
 
195,168 19 
 
5.000 00 
 
000 
 
TT3,881 07 1,392 323 33 
4317811 241,88606 117,948 53 212,526 30 
1,002 72 513,065 29 
9,44840 112,693 52 
9 372 81 5,000 00 
 
$ 97117 521 00 $ 93 685194 86 $ 
 
3,432 326 14 
 
Excess of Funds Available over Expenditures 
 
S 3 464 619 64 $ -""""3..;464,..;;,6;.;1.9.aa64.., 
 
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 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, 2002 
 
EXHIBIT "C" 
 
FUNDS AVAILABLE 
REVENJES 
State f>WropnatJCll Federal R<Nenues Other Revenues Retamed 
CAARY-OVER FROM PRIOR YEAR Transfer from Reserved Fu,d Balance 
 
BUDGET 
 
ACTUAL 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ 15,751,730 00 $ 15 751730 00 $ 
 
21201,05900 
 
13,389,669 26 
 
3,288.412 00 
 
3,252,229 35 
 
$ 40 241,201 00 $ 32,393,62861 $ 
 
000 -7,811,389 74 
-36 182 65 
-7,847,572.39 
 
0 00 
 
132 603 58 
 
13260358 
 
S 40,241 201 00 $ 32,526,232 19 $ -7,714,968 81 
 
EXPENDITIJRES 
Personal Services Rego.Jar Opera!Jng Expenses Travel - Vehde Ptrchases Ecpment Computer Charges Real Estate Rentals TelecomrurucatJCllS Per Diem and Fees Cortracts Gaptal OJtlay 1-i~ Safety Graits Peace Officers Training Grants 
'"" Excess of Fl.llds Ava,lable Expendrti.res 
 
$ 12 501,004 00 $ 12,008 245.22 $ 
 
6,258,444 00 
 
6,COl 91174 
 
288,81600 
 
175,92268 
 
158,487 00 
 
152,48059 
 
240,83500 
 
309,28986 
 
351,032 00 
 
310,29067 
 
317,82000 
 
303,06963 
 
380,19100 
 
32893948 
 
635,781 00 
 
812.949 34 
 
2 279,532.00 
 
1600,204 99 
 
15000000 
 
149,477 00 
 
13,525,200 00 
 
7,669,02251 
 
315402900 
 
313761560 
 
412.758 78 251,532.26 112,893 32 
6,00041 -68,424 86 40,741 33 14 750 37 51,251 52 -177, 168 34 589,327 01 
52300 5 856,177 49 
16 413 40 
 
S 40 241 201 00 $ 33 134,419 31 $ 
 
7,106,781 69 
 
$ 
 
-608 187 12 $ _ _ _-606__,1,.8_,7.1.2a. 
 
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 DEPARTMENT OF PUBLIC SAFETY RECONCILIATION OF TRAVEL YEAR ENDED JUNE 30. 2002 
Totals per Annual Supplement Adjustment 
Branson, Chff 
 
EXHIBIT"D" 
S 564,350 57 141 00 
$ 564,491 57 
 
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 SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 DEPARTMENT OF PUBLIC SAFETY 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-466-01-01 FS-466-01-02 FS-466-01-03 FS-466-01-04 FS-466-01-05 
 
Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses 
 
CORRECTIVE ACTION/RESPONSES 
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies 1n Operation of Property Management System Fmdmg Control Number FS-466-01-05 
The Property Management System maintains information correctly The 1nforrnat1on going into the system must be entered correctly however The Department placed considerable effort to ensure the assets identified in the Property Management System are earned at the correct amount and can be located appropnately 
 
 SECTION Ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS 
 
 DEPARTMENT OF PUBLIC SAFETY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2002 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
GENERAL LEDGER Inadequacies m Control Over Manual Journal Entries Finding Control Number FS-466-02-01 
Our examination included a review of the internal accounting controls and procedures ut1hzed by the Department of Public Safety m recording adJustments to the various modules comprising the statewide Phoenix accounting system Our testing revealed that, at June 30, 2002, the Department's general ledger module did not balance with the accounts receivable (subs1d1ary) module This cond1t1on resulted because numerous manual Journal entries were posted to the general ledger module instead of recording the adJustment m the appropriate subsIdIary module As a result, numerous reconc1hng items existed at June 30, 2002 These reconciling items occurred because, m many cases, the Department used manual Journal vouchers, which are posted only to the general ledger, instead of adJustment vouchers, which are posted directly to the modules and automatically update the general ledger The Department was unable to provide necessary documentation to support all reconciling Items 
The Department Is required to ensure subs1d1ary accounting records balance to the general ledger m accordance with the Accounting Procedures Manual for the State of Georgia as published by the State Auditor 
Management's failure to ensure that subs1d1ary modules are In balance with the general ledger module causes internal reports to management, generated from the subs1d1ary modules, to be inaccurate and misleading This condition can lead to erroneous decIsIons by the Department's management as well as by the State of Georgia's executive dec1s1on makers 
To ensure accurate and timely reporting of financial information from subsId1ary modules, the Department of Public Safety should use adJustment vouchers rather than manual Journal entries to the extent possible This procedure will allow the natural flow of the subs1d1ary modules into the general ledger module to correct adjustments to the accounting records that are determined to be necessary The Department should also develop internal accounting controls and procedures to ensure that adequate supporting documentation Is maintained for all adJustments and reconciling items 
-1- 
 
 DEPARTMENT OF PUBLIC SAFETY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2002 
 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
GENERAL LEDGER Inadequate Accounting Procedures Finding Control Number FS-466-02-02 
 
Accounting procedures of the Department of Public Safety were insufficient to provide adequate internal controls over the fund balance accounts wrthin the general ledger The general ledger for the Department of Public Safety "A" Budget at June 30, 2002, had not been reviewed at the program level in order to determine the correct amount of reserves or surplus Audrt adjustments were necessary to reflect the status of fund balances for the Department Fund Balance accounts were adjusted as follows 
 
Per Book 
 
Per Audit 
 
Reserves Surplus 
 
$ 7,001,435 74 $(1,639,676 64) 
 
$ 4,797,554 71 $ 517,206 72 
 
This deficiency occurred because of management's failure to establish procedures to analyze and reconc~e fund balance accounts recorded on the general ledger with supporting records The failure to monitor these accounts within the general ledger could lead to inaccurate financial records 
The Department should establish appropriate procedures to ensure that the general ledger Is posted, balanced and reviewed on a monthly basis and that detailed records supporting fund balance accounts m the general ledger are complete, accurate and reliable 
 
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 DEPARTMENT OF PUBLIC SAFETY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2002 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
BUDGET PREPARATION/EXECUTION Overexpend1ture of Budget Unit Ob1ect Classes Finding Control Number FS-466-02-03 
The total approved budget for the Department of Public Safety - "B" Budget Unit provided for expendrtures totaling $ 40,241,201 00 A comparison of ant1c1pated funds available and budgeted expenditures to actual funds available and expenditures by object class indicates that the Equipment common object class exceeded the authonzed expendrture level of 102% of the budgeted amount by $63,607 56 In addrt1on, the Per Diem and Fees object class exceeded the budgeted amount by$ 177,168 34 
The overexpendrtures 1dent1fied above are m v1olat1on of Section 58 of the Amended Appropnat1ons Act of 2001-2002 Agency overexpend1tures can result m direct material effects on the financial statements 
The Department of Public Safety should review its internal control procedures over budget operations, design procedures which would proh1b1t the expenditure of funds m excess of budget approval, and implement those procedures to strengthen the internal controls over the budget function 
CAPITAL ASSETS/PROPERTY MANAGMENT Inadequacies m Operation of Property Management System Finding Control Number FS-466-02-04 
One-hundred-seventy-three (173) equipment items were selected from certain locations to test the accuracy of the Department's property management records These items contained a value of $2,811,149 72 out of a population of $5,900,802 51 and were selected for the purpose of locating the equipment as recorded m the inventory records The following defic1enc1es were noted at the Georgia Public Safety Training Center, Forsyth, Georgia 
(1) Ten (10) items totaling $73,900 86 could not be located 
(2} Four (4} rtems did not have decal numbers attached However, items were located ut1l1zmg serial numbers or descriptions 
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 DEPARTMENT OF PUBLIC SAFETY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2002 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CAPITAL ASSETS/PROPERTY MANAGMENT Inadequacies in Operation of Property Management System Finding Control Number FS-466-02-04 Also. during the physical inspection testing, four (4) ,terns of equipment were located in our test locations, which were not included in the equipment inventory records for the particular location The Training Center ,s required to maintain equipment inventories in accordance with prov1s1ons of State laws and regulations The d1screpanc1es identified above were caused by the Training Center's failure to follow guidelines for maintaining equipment inventories Failure to maintain accurate equipment inventory records causes internal reports to management to be misleading and can result in erroneous dec1s1ons by management concerning current and future equipment needs The Training Center should establish the necessary internal controls to ensure that equipment inventories are maintained ,n accordance wrth State laws and regulations 
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