Management report, Public Service Commission, an organizational unit of the state of Georgia, year ended June 30, 1997

GA
Agoo .RI
P88'
MANAGEMENT REPORT PUBLIC SERVICE COMMISSION AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1997
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASH I NGTON STREET
ATLANTA, GEORGIA 30334-8400

PUBLIC SERVICE COMMISSION MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGET FUND

2

B SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

3

C RECONCILIATION OF SALARIES

4

SECTION II 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
September 23, 1997

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members of the Public Service Commission
and Honorable Deborah K. Flannagan, Executive Director Public Service Commission
Ladies and Gentlemen:
As part of our audit ofthe statutory basis fmancial statements ofthe 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 of and for the year ended June 30,1997, we have performed certain audit procedures at the Public Service Commission. Accordingly, the financial statements and compliance activities of the Public Service Commission were examined to the extent considered necessary in order to express opinion as to the fair presentation of the fmancial 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 Public Service Commission as of and for the year ended June 30, 1997. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the use of management of the Public Service Commission. However, this report is a matter of public record and its distribution is not limited.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:cm

SECTION I SELECTED FINANCIAL INFORMATION

PUBLIC SERVICE COMMISSION ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30,1997
FUND BALANCE - JULY 1, 1996 Reserved Surplus
ADDITIONS Adjustments to Prior Year's Accounts Payable Excess of Funds Available under Expenditures Exhibit "B" Reimbursement of Prior Year's Expenditures
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1996 Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30, 1997
SUMMARY OF FUND BALANCE Reserved Federal Financial Assistance Surplus

EXHIBIT "A"

$

32,964,00

332,551.91

$

365,515.91

$

138,158.69

-107,340.94 127.51

$

30,945.26

$

332,551.91

32,964.00

$

365,515,91

$ ==3:=0=,9=4=5.=26=

$

25,000.00

5,945,26

$

30,945.26

-2-

PUBLIC SERVICE COMMISSION SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30, 1997

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)

$ 8,399,352.00 $ 8,275,378.00 $

2,689,203.00

2,364,814.60

29,003.00

29,012.70

$ 11,117,558.00 $ 10,669,205.30 $

-123,974.00 -324,388.40
9.70
-448,352.70

0.00

32,964.00

32,964.00

$ 11,117,558.00 $ 10,702,169.30 $ _ _--'-4..;,.15=..:.,3.;:..;8:....:,8.;:..;.7-'-0

EXPENDITURES Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Excess of Funds Available under Expenditures

$ 7,213,669.00 $ 6,973,483.31 $

712,646.00

704,594.07

226,468.00

202,090.08

15,000.00

14,864.50

43,470.00

43,256.72

454,424.00

454,510.51

324,420.00

324,418.16

164,298.00

161,058.77

1,963,163.00

1,931,234.12

240,185.69 8,051.93
24,377.92 135.50 213.28 -86.51 1.84
3,239.23 31,928.88

$ 11,117,558.00 $ 10,809,510.24 $ - - - -3'0-8,0'4-7-.76-

$

-107,340.94 $===-1~0;,;.7,l;;;,3~4,;,;0.=94=

-3-

PUBLIC SERVICE COMMISSION RECONCILIATION OF SALARIES
YEAR ENDED JUNE 30,1997
Total per Annual Supplement Accruals
June 30, 1996

EXHIBIT"C"
$ 5,066,875,69 -5,064.56
$ 5,061,811.13

-4-

SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS

PUBLIC SERVICE COMMISSION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Inadequate Accounting Procedures and Records - Agency Fund Finding Control Number FS-470-97-01
The Public Service Commission was directed by the Official Code of Georgia Annotated (OCGA) Section 46-5-167 to create a Universal Access Fund (UA Fund) to assure the provision of reasonably priced access to basic local exchange services throughout Georgia. The Commission is acting in an agent capacity, and as such, the UA Fund should be accounted for as a Fiduciary Fund Type, Agency Fund. The Commission's accounting records for the UA Fund were not maintained in accordance with the Accounting Procedures and Instructions manual as prescribed and issued by the State Auditor in accordance with OCGA 50-6-7. The following deficiencies were noted:
1) The Commission failed to establish written internal accounting policies and procedures for the UA Fund.
2) The Commission failed to maintain a general ledger for the UA Fund.
3) Bank and investment statements for the UA Fund were not reconciled with the accounting records as of the date of this report.
Extensive procedures were used to produce an agency fund general ledger for fiscal year ended June 30, 1997, utilizing source documentation available. These above deficiencies occurred because the Commission failed to establish accounting policies and procedures for the UA Fund. Appropriate accounting policies and procedures should be established and implemented by the Commission to provide for the maintenance of the UA Fund as an agency fund within the Commission's accounting records in accordance with the Accounting Procedures and Instructions manual.