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 DEPARTMENT OF REVENUE MANAGEMENT REPORT -TABLE OF CONTENTS- 
 
LETTER OF TRANSM/TTAL 
 
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 SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS 
 
STATE REVENUE COLLECTIONS FUND 
 
3 
 
D SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES 
 
AGENCY FUNDS 
 
5 
 
E ANALYSIS OF STATE REVENUE COLLECTIONS 
 
7 
 
SECTION II AUD/TEE'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 Waslnngton Street, SW, Suite 214 
 
RussELL W. H1,To, 
'iTATE AUDITOR (404)6S6-2174 
 
Atlanta, Georgia 30334-8400 
 
February 17, 2003 
Honorable Sonny Perdue, Governor Members of the General Assembly of Georgia 
and Honorable T Jerry Jackson, Comm1ss1oner Department of Revenue 
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 Comprehenswe 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 perfomied certain audit procedures at the Department of Revenue Accordingly, the financial statements and compliance act1v1t1es of the Department of Revenue were examined to the extent necessary in order to express an op1mon 
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 Audrt Act Amendments of 1996 
This Management Report contains infom,abon perbnent to the financial and compliance act1v1bes of the Department of Revenue as of and for the year ended June 30, 2002 The parbcular 1nfom1abon provided 1s enumerated in the Table of Contents 
This report 1s intended solely for the infomiabon and use of management of the State of Georgia and 1s not intended to be and should not be used by anyone other than these specified parties 
Respectfully submrtted, 
 
,:).hdo,~ W ~ 
~~IIW Hinton State Auditor 
 
RWH cgc 
 
 SECTION I SELECTED FINANCIAL INFORMATION 
 
 DEPARTMENT OF REVENUE ANALYSIS OF CHANGES IN FUND BALANCE 
BUDGET FUND YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "A" 
 
FUND BALANCE - JULY 1 2001 Reserved Surplus 
ADDITIONS Adjustments to Pnor Yeafs Accounts Payable Excess of Funds Available over Expenditures Exh1brt "B" 
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal SeMces Year Ended June 30, 2001 Adjustments to Pnor Yeafs Accounts Receivable Decrease m lnventones Reserved Fund Balance Gamed Over from Pnor Year as Funds Available 
FUND BALANCE  JUNE 30. 2002 
 
$ 
 
25,241 843 24 
 
9 008 143 39 
 
$ _ _,:a:34;:,,,,:a;24e.:9:..9, :::8:::6-"6"'-3 
 
$ 
 
305,558 85 
 
23.383,480 41 
 
$ _ _.,,2030,.,.6,e:89:,,,0:,,3:::9:..,2=6 
 
$ 
 
9,008,143 39 
 
28,899 09 19,842 04 
 
25 24184324 
 
$ _ __,34=2:::98=7=2'-7-'-7~6 
 
s _ _ _2_3_6_4_0._2_0.0.1._3 11 
 
SUMMARY OF FUND BALANCE 
Reserved Investment for Modem1zat1on Collectlon Cost - Unclaimed Property Collec:bon Cost - Income Tax 
Surplus 
 
$ 
 
17,785,550 85 
 
2,213 518 00 
 
2 490 969 00 
 
$ 
 
22,490,037 85 
 
115026028 
 
$ _....:2;::3.:;64~0;;..:2:;::9;;;.8.,;;13;;. 
 
- 1- 
 
 DEPARTMENT OF REVENUE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES 
COMPARED TO BUDGET BUDGET FUND 
YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "B" 
 
FUNDS AVAILABLE REVENUES 
State AppropnabOn Federal Revenues Other Rewnues Retained 
CARRY-OVER FROM PRIOR YEAR Transfer from ReseNed Fund Balance 
 
BUDGET 
 
ACTUAL 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ 350,722,734 00 $ 350,722,734 00 $ 
 
373,131 00 
 
789,073 39 
 
35 565 130 00 
 
8,924,303 96 
 
$ 386 660,995 00 $ 360,436,111 35 $ 
 
0 00 415,942 39 -26,640,826 04 
-26,224,883 65 
 
000 
 
25 24184324 
 
25 241.843 24 
 
$ 386,660,995 00 $ 385 677,954 59 $ 
 
-983 040 41 
 
EXF'ENDITIJRES 
Personal Servtces Regular Operabng Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunscabons Per Diem and Fees Contracts County Tax Offiaals/Rettrament and FICA Postage Investment for Modemozabon Homeowner Tax Relief Grants 
Excess of Funds Ava:lable over Expend:turas 
 
s 61,058,868 00 $ 60,870,528 14 $ 
 
9,612,777 00 
 
9,663,770 68 
 
1,199,29100 
 
1,020,799 65 
 
59,166 00 
 
21,521 50 
 
954,495 00 
 
196,518 76 
 
16,313,473 00 
 
16,606,354 87 
 
7, 158,264 00 
 
7,010,353 91 
 
2,954,654 00 
 
2 997142 68 
 
944,549 00 
 
940,993 82 
 
2,423,468 00 
 
2,017,633 27 
 
4,272,795 00 
 
4,272,795 00 
 
2,936,975 00 
 
2,992,298 36 
 
21.m.22000 
 
9,787,061 30 
 
249,000,000 00 243,896,702 24 
 
188 339 86 -50,993 68 
178 491 35 37,644 50 
757,976 24 -292.881 87 147,910 09 -42,488 68 
3,555 18 
405,834 73 0 00 
-55,323 36 17,985,158 70 
5 103 297 76 
 
$ 386,660,995 00 $ 362,294 474 18 $ 24 366 520 82 
 
$ 23 383 480 41 $ 23 383 480 41 
 
-2- 
 
 DEPARTMENT OF REVENUE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS 
STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "C" 
 
STATE REVENUE COLLECTIONS (Se, Exhrtiltl 
Business L1C81'1Se TIIX Non Bua1ness ltcense Tax 
Motor Vehide Registrations - Tags Motor Carner Regsstrations - Tags Motor VehlCle Title Registrabons 
 
CASH RECEIPTS 
 
Corporate J,jol Worth Tax Eatate Tax Financial lnstitutlons BusineSS 0caJpaUon Tax Income Tax 
Corpcnbons Individuals 
 
ProportyTu County Tax Digest Accounts lntllnglble Record1r1g 
 
Plbkllbkbes ProponyTax .6.ese,srenta 
Taxes Ba9ed on Sales Sales and UN Tax Regular 
-MooJrFuel 
Alcoholc Beverages 
Liquor Wroe 
 
Cigaraondc,gar-. Motor Fuel 
 
F1nea and Forfeitures Peace Offlcerl and ProNcutors Training Fund UnclaanodPropof1Y 
 
Stale Children' Trust FIWI 
 
Eanmgs - - 
 
Gowmmont 
 
_ , _ , Optaon Saiea T a x ~ Coat 
 
Locll OpbOn Sales Tax Collec:tion Colt 
 
Marta Smel TD CoOec::tk:ln Coat 
 
Real Emte Transfer Tu CoOecbon Cost 
 
Salos Tax tor Educabonal PurJ>c,ses CollBcbon Coat 
Speaal p,._ Sales TOX C<>locbon Coat 
 
Other Fees 
 
Total CUh Receapts 
 
CASH AND CASH EQUIVALENTS JULY 1 2001 
 
s 
 
6 154 027 19 
 
s 
 
53 931 3,40 88 
 
6,2?a 427 96 
 
11 4TT 804 00 
 
71 638 572 84 
 
s 564 ga2 oos 31 
e 71'4 1s1 1eo 63 
 
29 346 195 00 123 033 M4 67 
1315211185 
7,279 173 189 94 
 
s 
 
56 373 183 43 
 
1 870 401 53 
 
5a 243 584 96 
 
s 
 
1 857 32 
 
17Q 380 96 
 
181 238 29 
 
$ 4473,123,07410 200 197 979 16 $ 4 673,321 053.26 
 
s 84 297,037 5-4 
37 8~ Q31 71 
20 1596 419 92 
 
143 088 389 17 
 
83 501 868 40 462 183 538 58 
 
5 362 074,645 41 
 
2,TT1 DEl2 74 29 959 705 04 3711042264 
1,013 333 23 
 
s 
 
855,255 00 
 
lil,498 033 26 
 
2 915 617 78 
335 ses 68 
 
11,819 563 07 
 
7 335 466 52 
 
1!13 '62 282 00 
 
96 3221083 31 
 
s 13110,17 55710 
 
17 99~1572 57 
 
S 13 128.167 12e 157 
 
-3- 
 
 DEPARTMENT OF REVENUE SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS 
STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "C" 
 
GOVEBNMSNTALCOSI 
 
DISBURSEMENTS 
 
Fees Retained at Collecting Source Property Tax County Tax Digest Aa:ounts tntang1t>N! Recording 
 
$ 
 
2 -465 738 19 
 
142 413 03 $ 
 
2608,15122 
 
Taxes Based on Sales SmesandUaeTax Regular Motor Fuel 
 
$ 48,967 042 73 547102278 $ 52 438 065 51 
 
Motor Fuel 
 
3 601 482 55 
 
56 039 628 06 $ 
 
58,647 671il 28 
 
DlabuBernenta of Motor VeNde Reglstral!On - Tags Collection, to Non-Game Wildlrfe ConservabOn and Wildbfe Habitat Acquosit>on Fund Collecbons to Unrted States Disabled Athletes FLM 
 
s 
 
380 160 00 
 
16 57~ 00 
 
376,735 00 
 
OISburMment tor Income Tax Colledmn Com - 
Relmblne Budget Fund 
 
3 D'lil no ca 
 
D<Sblnemont for Uncla,mod Property Expense Remburae Budget Fund 
TOUII GoYemmental Cost 
 
3 H53872152 
 
s 
 
65 228,057 13 
 
TRANSFERS 
To Office of Treasury and Fiscal SeMces Leu Reh.Inell through Office of Truaury end F1SC81 SeMces 
Total OIStlinementa 
 
s 14,69'1,570, 181 30 
-1 623 505 5-43 &4 13.0715 0641637 86 
s 13 141.2"2,694 79 
 
CASH AND CASH EOUrvALENTS -:NNE 30 2002 
 
-13 125 565 12 
 
-4- 
 
 DEPARTMENT OF REVENUE SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES 
AGENCY FUNDS YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "D" 
 
Elllill 
Central Processng Umt Special Accoun: Homestesd Opbal SaleS Tax 
Colledlons For Dl:str1bubon to Local Govemrnents Local Options~ Tax Coliectlons For Olstrtbutlon to Local Gowmments MARTA Sales Tax 
Motor Fuel Cash Bond Escrow Aa:ourl Rallroad Car Tax Real Estate Transfer Tax Setoff Debt Collectlons Acco1.111 
Various Gowmmental Unrts Sales Tax for EducaUmal Purposes 
Collect\On> For Oisb1bubon to Local Governments Special Pulpose Sales Tax Collect\On> For Dlsb1bubon to Local Governments Tenneuee Valley Authority Account Undalmed Property Aa:ourl 
 
ASSETS/ LIABILITIES JULY 1.2001 
s 1 120,580 18 S 
 
ADDITIONS 140 645 79 
 
DELETIONS 
 
ASSETS/ LIABILITIES JUNE 30, 2002 
s 1 261 325 97 
 
0 00 
 
84 554 908 30 S 84 554,908 30 (1) 
 
0 00 
 
83 728,198 41 
 
83,728 198 41 
 
0 00 000 
 
0 00 000 000 34,453 50 445,277 28 18 369 404 54 
 
940,216 451 06 930,675 501 35 289,310,092 33 
6 014,646 09 48,384,192 95 
 
940 216 451 06 (2) 930 582,947 22 289,310,092 33 (3) 
34 453 50 
46,387,205 02 (4) 
 
0 00 92 554 13 
000 000 6,459 923 37 18 346 392 47 
 
0 00 
 
18,736,416 42 
 
18 736 416 42 
 
0 00 
 
000 880 
 
1,171,899,73666 1,171 899 738 66 (5) 1 160,253,469 34 1,160 253,469 34 
 
000 8 80 
 
0 00 416 88 1,142,063.25 2,333,002 98 
 
727,501 712.03 720,271 813 05 
4,903,607 51 1010611943 
 
727 501 712 03 (6) 720 272 229 93 
18,045 670 76 4,696 248 37 
 
000 0 00 -12,000 000 00 7 742 874 04 
 
s $ 
 
23151307 41 S 
 
6 194 677.5'1212 
 
1 
 
1 
 
e,1001219 171 35 
 
s 21,003,078 78 
 
(1 l HOMESTEAD PPIION SALES TAX PfSBURSEMENJS 
To Office of Treasl.l'Y and Fiscal Servk:es For Dstribution to Local Gowmmenta 
To State-= Colections Fund 
 
$ 83,699,653 30 655 255 00 
 
(2) LOCAL OPTION Al ES TAX PlBUREMENT 
To Office of Treasury end Fiscal SeMCeS For Dmtributlon to Local Gowmments 
To State Rewnua ConeCbOnO Fund 
 
$ 84,554,908 30 
S 930,718,417 BO 
9,498,033 26 
 
-5- 
 
 DEPARTMENT OF REVENUE SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES 
AGENCY FUNDS YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "D" 
 
(3) MARTA SALES TAX DISBURSEMENTS 
To Office of Treaslry and Fiscal Services For DlstnbuOon to MARTA 
To State Rewnue ColledtcnS Fund 
 
$ 286 394,474 55 291561778 
 
(4) REAL ESTATE TRANSFER TAX DISBURSEMENTS 
To Col.l'ltJea am Munlapahbes 
To State Rewnue Colections Fund 
 
$ 289,310.092 33 
$ 46 051,339 34 335,865 68 
 
(5) S&.i;S W EQB a;lUCAT!Q~ ~UBeQSfS IJl~UBS!;~~S 
To Office of Treas1.r1 and Fiscal Services For Dt!tnbubon to Local GOlmmants 
To State Rewnue CoUectlons Food 
 
$ 4613871205 02 
$ 1180 080,175 59 11,819,563 07 
 
(6) SPEC}Al. PURPOSE SALES TAX OISBURSEMENJS 
To Office ofTreaSl.W)' and Fiscal Services For OIStnbubOn to Local Governments 
To S1818 Rewnuo Colectlons Fund 
 
$ 1171 899.738 86 
$ 720,166,245 51 7 335 486 52 
$ n1so1112 03 
 
-6- 
 
 DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS 
YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "E" 
 
BUSINESS LICENSE TAX 
Beer Deeters Wholesalers' LieeMes Retaers Llcenaes Speoal Pemirts License and Brand Reg1strat1on 
Liquor Dealers Wholesalers' Ltcenaes Retailers Licenses License and Brand RegistratJon 
Wine Dealers Wholesal era Licenses Rete1lers' Llcenaes License and Brand Reg1strabon License Penalba 
Cigar and Cigarette Oealer1 WholeS8.lers' Licenses Manufacturers' Represen.tatfve LJcense 
COin Operated Am uaement Machines Licenses and Pmmtta 
Net to State Beer Dealers LJquorDv.eB Wine Dealers Cigar  nd Cigarette Dealera Com Operated Amusement Machnes 
Cash Balance June 30, 2002 
 
s 
 
9 500 00 
 
781 878 75 
 
32 800 00 
s 49,473 34 
 
873 652 09 
 
s 
 
34 000 00 
 
496 828 51 
 
25 376 66 
 
556 205 17 
 
s 
 
25 500 00 
 
857 168 43 
 
9,150 00 
 
7 307 45 
 
699 125 88 
 
s 
 
126 193 05 
 
2 280 00 
 
128 473 05 
 
3 896 571 00 
 
s 
 
6 15-102719 
 
s 
 
673,852 09 
 
556 205 17 
 
69181843 
 
138 006 00 
 
3 896 571 00 
 
-2 225 50 
 
s 
 
615"'02719 
 
-7- 
 
 DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS 
YEAR ENDED JUNE 30, 2002 
 
EXHIBIT "E 
 
NON BUSINESS LICENSE TAX 
Tag Reg1strat1on and Transfers GRATIS Counties NonGRATIS Counties Trade port 
Und1stnbuted C ol lecbofl!; - Other 
 
Less Refunds Through Office of Treasury and F1scat Services 
 
Motor Carner Reg1strabons Tags 
 
lntemebonal Regr.5tral.Jon Plan 
 
Coliecoons from Georgia Motor Camera 
 
For Georgia 
 
$ 
 
For Other States 
 
ColledlOl"ls from Other States 
 
MtSCellaneous Co llectlOOS 
 
Less Refunds Throvg h Office of Treasury and Flacal SeMCeS 
 
Motor Vehrc:le ntle Reg1stralt01"19 
 
GRA.TIS Count.Jes 
 
$ 
 
NonGRATIS Counbes 
 
Trtle Penalties 
 
45 021 839 75 4 343 370 50 293231354 S 
$ 
5 069 977 06 1 253 522 02 $ 
$ 
10,517 946 00 738 427 00 S 
 
52 297 523 79 1 946 445 87 
54 243 969 66 312 628 78 S 
6 323 499 08 769 821 52 92 954 16 
7 166 274 76 956 846 80 
11256373 00 221 431 00 
 
53 931 340 88 
6 229 427 96 11477 80400 
 
$ 
 
71 638 572 84 
 
Disbursements o1' Motor Vehicle Reg1strabon - Tags 
 
Collections lo Non-G&me W1ldllfe ConaervatlCWl and Wildlife 
 
Habrtate Acqu1s111on Fund 
 
s 
 
Collecbons lo United Stales DtSablecl A thletl:ta Fund 
 
Net to State 
 
Cash Balance 
 
Juty 1 2001 
 
s 
 
June 30 2002 
 
360 160 00 16 575 00 S 
18840075 61 215 36 
 
376 735 00 71 012 221 73 
24961611 
 
S 
 
71 638 572 84 
 
-8- 
 
 DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS 
YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "E" 
 
CORPORATE NET WQRTH TAX 
Oomestrc end Fore,gn Corporations Current Debnquent and Penatbes 
Net to State 
ESTATE TAX Ong1nal Retunu and AcldrtJ ona 
Less Rofund5 Through Office o1 Treaaury and FtSCal Servtces 
Net to State 
FINANCIAL INSTITUTIONS BUSINESS OCCUPATION JAX 
Onginal Returns and Addrtl ons 
Net to Slate 
 
s _ _~29aa34=s.:a'":::5.::00::. s _ _~29""34:;.s::.:.1:::.s.::oo::. 
 
s 
 
128 795 397 70 
 
5 761 893 03 $ _.....:,12~3"'0:::,33=504=67:. 
 
s 
 
123 033 504 67 
 
s _ _,:;13a.1:;:.52._11'"'1.::B5;:. s _ _,:;13;:.1:.::5::.2~11'-1":::.5 
 
-9- 
 
 DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS 
YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "E" 
 
INCOME TAX 
Corpc)l'Bll005 Ongmal Returns Add11.Jonal Tax Interest and Penalties Estimate of Taxes 
Less Refini!. Through Office of Treasury and F111cal Services lncl1v1duals 
Ongmal Returns Additional Tax, Interest and Penetbe& Estimate of Taxes f ldUCllllry Wrthhok:lmg1 
Less Refunds Through Office of Treasury and Fiscal SeMcea 
 
s 
 
72 516 373 08 
 
684 069 147 04 
 
s 
 
756,Sl!S 520 12 
 
191 603 510 81 S 
 
564 982 009 31 
 
s 
 
877,393,688 21 
 
1 321,724 524 12 
 
15 771 596 80 
 
5,91113!2,342 19 
 
s 8,128 272 151 32 
 
1412080 990 69 
 
6 714.191.16 
 
$ 7 279 173 169 94 
 
Dllburaement for Collecbon Costs Reimburse Budget Food 
Net to State Cash Balance 
July 1 2001 June 30, 2002 
 
$ 
 
304977003 
 
7,307 199 851 62 
 
s 
 
--4 7-1096522 
 
-26 335 486 49 
 
-31 076 451 71 
 
S 7 279 173 169 94 
 
- 10 - 
 
 DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS 
YEAR ENDED JUNE 30. 2002 
 
EXHIBIT 'E" 
 
PROPERTY TAX 
 
County Tax Digest Accounts 
 
Velucle 
 
s 
 
Property 
 
Mobile Home 
 
Timber 
 
Not on Digest 
 
Penalttes and Int eres1 
 
Leas Refunda Through Office of Treasury and Flscal Services 
 
lntang:itwe Recording Gro,.s Collections 
 
5 355 792 46 47 86 887 55 
323 246 19 135  97 39 
555,571 22 2 270 508 03 $ 
 
56 487 502 64 11431941 $ 
 
56 373 183 43 1 870 401 53 
 
S _ _.5.8=24;:;3:..5:.84;a;..:;96aa. 
 
Commksslons Paid oo A.bOve County Digest Accounts ColleetOr 
lntanglbla Recording 
Net to State County Tax l),gOII Acc0unta Intangible Rocortlong 
 
s 
 
2 465 738 19 
 
14241303 
 
$ 
 
2 eoe 1s1 22 
 
s 
 
53,907 445 24 
 
1 121 eaa 50 
 
55 835 433 74 
 
s 
 
58,243 584 96 
 
- 11 - 
 
 DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS 
YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "E" 
 
PUBLIC UTILITIES 
Property Tax Ad Valorem Tax Electnc Light and Power Companies 
Assessments 2002 CollectJons 
Net to State 
 
s 
 
1,857 32 
 
179 380 96 
 
s _ _ _.;1,.B1'-'"23:;aBa;2;;;.B 
 
s _ _ _.;1,_B1'-2a;3;,;;Ba;2;;;,B 
 
TAXES BASED ON SALES 
Sales end Use Tax Monthly Collectlons by General Al;c;:ounbng Office Reguler Motor Fuel 
Leu Refunds Through Off"tce of Treasury and F!SCal SeMc:ea Regular Motor Fuel 
 
S 4 500,055,750 05 200871955 30 S 4700,727,70535 
 
s 
 
26,Q32 675 95 
 
473 976 14 
 
27 -106 652 09 
 
S 4 673 321 053 26 
 
Commulona Paid on Abow 
Regular Motor Fuel 
Net to State RegWlr Mo<or Fuel 
Cash Balance July 1 2001 J-..-.e 30, 2002 
 
s 
 
46,987,042 73 
 
5471 02278 S 
 
52 438,065 51 
 
s 4 418 406,974 23 
194 726 956 38 
 
4613,133930 81 
 
s 
 
-6 363 325 31 
 
14 112 382 45 
 
7 749 057 14 
 
s 4 67313211053 26 
 
- 12 - 
 
 DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS 
YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "E" 
 
TAXES BASER ON SALES 
Alcoholic: Beveniges Bee, Mall Beverage Tax 
 
$ 
 
64 297 037 54 
 
Net to Stale Cash Balance 
July 1 2001 June 30 2002 
 
$ 
 
83 822 185 78 
 
s 
 
231 307 50 
 
243 544 26 
 
474 851 76 
 
Liquor 
Stamp Sales Less Refunds Through Office of Treasury and Fmcal SeMces 
 
$ 
 
84 297 037 54 
 
$ 
 
37 913 509 17 
 
1857746 S 
 
37 894 931 71 
 
Net to State Cash Balance 
June 30 2002 
 
$ 
 
37,809 272 16 
 
85 859 55 
 
$ 
 
3789493171 
 
w... 
Wu,e Tax 
 
$ 
 
20 896.419 92 
 
Notto Stale Cash Balance 
June 30, 2002 
 
$ 
 
20 896 080 31 
 
33961 
 
s 
 
20 896 -419 92 
 
Cigara and Cigarettes 
Stamp Sales Less Refunds Through Office of Treasury BfN:t Fiscal Se,w:es 
 
$ 
 
83 555 463 44 
 
53,78704 S 
 
83 501 686 .co 
 
Net to State Cash Balance 
July 1 2001 J- 30, 2002 
 
s 
 
86 587 765 54 
 
s 
 
-6 e,s 780 es 
 
3 730 681 71 
 
-3 0&B 099 14 
 
$ 
 
83 501 666 40 
 
- 13 - 
 
 DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS 
YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "E" 
 
TAXES BASED ON SALES 
 
Motor Fuel 
 
Colleebons 
 
AV18hcm Dealers 
 
s 
 
Gasoline Oealen 
 
Special Fuel Dealers 
 
Diesel Operaton  Bonded 
 
L P Gas Operators - Bonded 
 
Undlstnbuted by Fuel Type 
 
Penalties and Interest 
 
Compressed Natural Gas 
 
Comm1U1ona Allowed 
 
Motor Carner MIieage Tax Collec:bons 
Penatues end lntereat 
 
Less 
 
Refl.a'ids Through Office of Treasury and Fiscal Servtees AgnaJtturo lntemabonal Fuel Tax Agreement Motor Carner 
Retail DealerS 
 
49,988 29 364 069 147 26 
2,194 59 123077 26,420 
348 067 17 -281 894 68 885 369 23 458 476 92 S 
s 
 
488 628 632 98 3 601 -462 55 $ 
,o 1e1 364 31 159 86810 
$ 
a 1315269 
39 087 101 63 133 59 
5 286 68 
 
492 230,095 53 10341 23241 
502 571,327 94 
40 407 791 36 
 
CommlAIOllS Paid on Above (Retained at Colleetmg Source) 
 
Net to Slate 
 
Cash Balance 
 
July 1, 2001 
 
S 
 
June 30, 200 2 
 
s _--'46=2"'-,s"'3"s"'36""'ss:a.. 
 
s 
.... 82 491 34 542 230 42 
 
3 601,462 55 458 -'82 334 85 
79 739 OB 
 
s _....::::~2.\16::;3:.5::;36:::.;58:::, 
 
- 14 - 
 
 DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS 
YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "E" 
 
FINES AND FORFEITURES Beer - Mall Beverage L,quor Wine Cigar, and C,garettes 
 
BOND FORFEITURES 
 
s 
 
570400$ 
 
57 485 00 
 
PENALTIES 13247940 S 70 622 10 122 970 79 
2 382 701 45 
 
TOTAL 138 183 40 128 107 10 122 970 79 
2 382 701 45 
 
s 
 
63 189 00 $ 
 
2 708 773 74 $ 
 
2 771 962 74 
 
Net to State Cash Betance 
Ji.ne 30 2002 
 
s 
 
2,771,904 74 
 
58 00 
 
s 
 
2 771 982 74 
 
e~CE QEEICEBS .!iNQ eBQSEC!JIQBS IB.elNIN~ B.!NI:! 
Fees from Court Fnea and Bond Fortemns 
Net to State Caah Balance 
JW'le 30, 2002 
 
$ 
 
29 959 705 04 
 
s 
 
29 718 762 69 
 
240 942 35 
 
s 
 
29 959 705 04 
 
UNCLAIMED PROPERTY 
~ from Salo of Abandoned Property Otabursement for UndBJmed Property Expense - 
R1111mburl8 Budget Fl.rid Net to State 
SIA]]; Cl::tlLQR!it!S !BUSI EU~Q 
Fees from Mamage L.tcenses and Divorce Cases 
Net to State 
 
s 
 
3711042264 
 
s 
 
3153ens2 
 
33 956 5'9 82 
 
s 
 
37110422 84 
 
s 
 
1 013 333 23 
 
s 
 
1.013 333 23 
 
- 15 - 
 
 DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS 
YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "E" 
 
EARNINGS - GENERAL GOVERNMENT 
Homestead Opuon Sales Tax CoUechon Cosl Local ()poon Sales Tax Collection Cost MARTA Sales Tax Colli,ctlon Cost Real Estate Transfer Tax Collecbon Cost Sales Tax for Educallooel Purposes Collectlon Cost Special Purpose Sales Tax CoUecbOn Coat Other Fees 
Fees on Contracts 'UQUOI' lnvesbgabon Fees MascellaneOus Coaections 
Net to State Caah Balance 
July 1 2001 June 30 2002 
 
s 
 
855 255 00 
 
9 498 033 26 
 
2 915 617 78 
 
335 865 68 
 
1181956307 
 
7 335 466 52 
 
s 
 
7 220 00 
 
6860000 
 
63 BG 462 00 
 
63,562,282 00 
 
s 
 
96,322,083 31 
 
s 
 
102 155 708 25 
 
s 
 
-28,719 10 
 
-5 804 906 84 
 
-5 833 624 94 
 
s 
 
96 322 083 31 
 
- 16 - 
 
 SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 DEPARTMENT OF REVENUE 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-474-00-01 FS-474-00-02 FS-474-00-03 FS-474-01-01 FS-474-01-02 FS-474-01-03 
 
Further Action Not Warranted Further Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses 
 
CORRECTIVE ACTION/RESPONSES 
 
REVENUE/RECEIVABLES/RECEIPTS GENERAL LEDGER Defic1enc1es m the State Revenue Collections Fund (Overall) Fmdmg Control Number FS-474-01-02 
 
The Department implemented a PeopleSoft revenue collections system on July 1, 2001 
 Deficiency number 1 - Previously reported corrective actions implemented 
 Deficiency number 2 - Previously reported corrective actions implemented 
 Deficiency number 3 - Previously reported corrective actions partially resolved Policies and procedures have been put mto place dunng the current fiscal year. The Sales Tax D1v1s1on subs1d1ary ledgers are now being reconciled to the PeopleSoft general ledger We are currently work.mg with other dIvIsIons to address the reconcIhatIon deficiency and sImIlar policies and procedures will be implemented. 
 Deficiency number 4 - The Department recognizes its defic1encIes m this area and we are looking mto a more feasible and agreeable resolution to the problem 
 Deficiency number 5 - Policies and procedures have been put mto place during the subsequent fiscal year Mail cash and EFT collections are reconciled daily to the general ledger 
 
 DEPARTMENT OF REVENUE AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FJNDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES REVENUE/RECEIVABLES/RECEIPTS GENERAL LEDGER Defic1encIes in the Income Tax D1v1sIon SubsIdIary Records Finding Control Number FS-474-01-03 We concur with this finding However. the feas1b1hty. practicality and financial responsIbI1ity of captunng withholding information for approximately 3 million (+) ind1v1dual tax returns with present resources would be a shift in the strategic direction of the Department of Revenue Previously. the Department did a limited manual sampling of comparing business W-2 information to indIvIdual tax returns This sampling indicated extremely low non-compliance The Department has agreed. within budget restraints. to expand this pilot program to a limited systematic matching of electronic W-2 information to ind1v1dual filings 
2 
 
 SECTION Ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS 
 
 DEPARTMENT OF REVENUE SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2002 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Defic1enc1es in the State Revenue Collections Fund (Overall) Finding Control Number FS-474-02-01 
Our examination included a review of the internal accounting controls and accounting procedures utilized by the Department of Revenue (Department) in maintaining their State Revenue Collections Fund This examination included procedures to provide reasonable assurance that revenue collections received by the Department through either the Mail Cash System (manual deposits by the Department) or the Electronic Funds Transfer Maintenance Unit (electronic fund transfers from taxpayers) were adequately accounted for by the Department's general ledger system maintained by the Central Accounting Unit and were properly recorded in the subsId1ary ledgers and associated records maintained by the D1v1s1ons and ind1v1dual tax unrts Our procedures also included a reconcIliat1on of the revenue collections received and subsequently transferred by the Department to the Office of Treasury and Fiscal Services (OTFS), which acts as the State Treasury The following defic1enc1es and inappropriate practices were found to exist 
1) The maJorrty of entnes made to the general ledger system were made by manual Journal entry The ut1hzatJon of only manual Journal entnes increases the nsk of erroneous postings Our review disclosed multiple instances where entries were posted twice to the general ledger The resulting overstatements made the reconc1hatIon of revenue collections received wrth amounts transferred to OTFS unduly difficult 
The Department should develop procedures through which the act1v1ty of the subs1d1ary revenue collect1on records are properly recorded wrthin the general ledger system used by the Department, the statewide Phoenix accounting system 
2) The Department has not established an internal control system whereby the subs1d1ary ledgers and associated records properly roll-up" into the general ledger As a result, the general ledger system and the subs1d1ary ledger system operate independently of each other and are not reconciled penod1cally In addrt1on, there Is no consistent cut-off date established between the two sets of records The lack of controls, which ensure a prompt reconc11iat1on of the general ledger and subs1dIary records, has resulted in the Department's accounting records in the DIv1s1ons and individual tax unrts being inconsistent, and in certain instances not reconcilable wrth the general ledger 
 
 DEPARTMENT OF REVENUE SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30 2002 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Defic1enc1es in the State Revenue Collections Fund (Overall) Finding Control Number FS-474-02-01 (continued) 
The Department should establish policies and procedures that will establish managerial control for the Central Accounting Unit over the subs1d1ary ledgers and associated records through use of an integrated general and subs1d1ary ledgers system In add1t1on, consistent cut-off dates should be established between the two systems and all subs1d1ary ledgers and associated records should be reconciled to the general ledger on a monthly basis 
3) The Department has not established an internal control system that requires cash receipts and disbursements to be posted in the accounting penod in which they occur, allowing dIscretIonary shifting of cash receipts and disbursements between accounting penods This "shifting of funds" Is inconsistent wrth the Cash Receipts and Disbursements basis of accounting and compounds the problems associated with reconciling the general ledger system and the subs1d1ary ledgers and associated records rnaintamed by the D1vis10ns 
State Revenue Collections Funds are maintained on the Cash Receipts and Disbursements basis of accounting as prescnbed or permitted by statutes and regulallons of the State of Georgia The Department should develop and implement procedures to ensure that cash receipts and disbursements are recorded in the general ledger at the llme of occurrence, as required by the Cash Receipts and Disbursements basis of accounting In add1t1on, the Department should develop and implement procedures to ensure that posting dates and accounting penod cut-offs in the general ledger are consistent wrth the posting dates and accounting penod cut-offs in the subsIdIary ledgers and associated records 
4) The Department has not established an internal control system which ensures that revenue collections received by the Department through either the Mail Cash System and/or the Electronic Funds Transfer Maintenance Unrt are reconciled to the general ledger 
2 
 
 DEPARTMENT OF REVENUE SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2002 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Defic1enc1es in the State Revenue Collections Fund (Overall) Finding Control Number FS-474-02-01 (continued) 
The Department should develop and implement procedures to ensure that all receipts are reconciled to general ledger postings on at least a monthly basis Fa1lure to reconcile receipts to postings in the general ledger could result in misstatements to the financial statements not being detected, prevented or corrected 
5) The Department converted the State Revenue Collections Fund to the statewide Phoenix accounting system as of July 1, 2001 The new accounting system provided for separate program information for each type of revenue received by the Department However, the dIstnbubon of cash balances by tax type was incorrect This deficiency resulted in extensive time and effort being required to review and correct the financial activity for reporting by tax type 
The defic1enc1es noted above are a result of the Department's failure to integrate rts accounting system and to provide for strong, clear lines of authonty and internal controls. The Department should carefully evaluate each of these defic1enc1es and take appropnate action to resolve these matters 
REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Defic1enc1es in the Income Tax DivIsIon Subs1dIary Records Finding Control Number FS-474-02-02 
Our examination included a review of the internal accounting controls and accounting procedures utIhzed by the Income Tax Div1s1on (D1vis1on) of the Department of Revenue (Department) for maintaining subs1d1ary ledgers and associated records. This review revealed that there Is a deficiency in the maintenance of subsIdIary records by the D1v1sIon The D1v1s1on does not adequately track data received from both companies and 1nd1v1duals concerning taxpayer wages. income tax withholdings or estimated payments of Georgia income tax Only limited work in regard to individual confirmation of Form W-2 information Is performed by the Department. 
As a result of this deficiency, the D1v1sIon cannot ensure, in all cases, that the withholding amount claimed by the taxpayer on the annual tax return Is accurate or 
3 
 
 DEPARTMENT OF REVENUE SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2002 FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS REVENUES/RECEIVABLES/RECEIPTS GENERAL LEDGER Defic1enc1es in the Income Tax D1v1s1on Subs1d1ary Records Finding Control Number FS-474-02-02 (continued) that known taxable income 1s reported as income This condrt1on resulted due to the Department's failure to design and implement needed procedures, programs or systems The Department should design and implement a system that will provide for the systematic reconc1hat1on of income and withholding data received from employers and ind1v1duals wrth Form W-2 and other documents filed with year-end ind1v1dual 
tax returns 
4