STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS Russell W. Hinton State Auditor MANAGEMENT REPORT SECRETARY OF STATE AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2004 SECRETARY OF STATE MANAGEMENT REPORT -TABLE OF CONTENTS- LETTER OF TRANSMITTAL SELECTED FINANCIAL INFORMATION EXHIBITS A ANALYSIS OF CHANGES IN FUND BALANCE BUDGET FUND SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND B "A" SECRETARY OF STATE C "B" REAL ESTATE COMMISSION Page 1 2 3 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 w. RUSSELL HINTON STATE AUDITOR (404) 656-2174 Atlanta, Georgia 30334-8400 December 13, 2004 Honorable Sonny Perdue, Governor Members of the General Assembly of Georgia and Honorable Cathy Cox Secretary of State 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, 2004, we have performed certain audit procedures at the Secretary of State. Accordingly, the financial statements and compliance activities of the Secretary of State 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 activities of the Secretary of State as of and for the year ended June 30, 2004. 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 State of Georgia and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, RWH:pm SELECTED FINANCIAL INFORMATION SECRETARY OF STATE ANALYSIS OF CHANGES IN FUND BALANCE BUDGET FUND YEAR ENDED JUNE 30, 2004 EXHIBIT "A" FUND BALANCE - JULY 1, 2003 Reserved Surplus ADDrTIONS Adjustments to Prior Years' Revenues/Receivables Excess of Funds Available over Expenditures Exhibit"B" Exhibit"C" DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 2003 Year Ended June 30, 2004 Adjustments to Prior Year's Expenditures/Payables Reserved Fund Balance Carried Over from Prior Year as Funds Available FUND BALANCE - JUNE 30, 2004 SUMMARY OF FUND BALANCE Reserved Federal Financial Assistance Other Funds Surplus "All SECRETARY OF STATE 11911 REAL ESTATE COMMISSION $ 9,136,222.36 315,431.32 $ 45,318.74 $ 9,451,653.68 $ 45,318.74 $ 777,714.15 $ 71,803,328.20 $ 72,581,042.35 $ 201,707.83 126,083.47 327,791.30 $ 315,431.32 $ 49,208,512.00 473,306.07 9,136,222.36 $ 59,133,471.75 $ 45,318.74 45,318.74 $ 22,899,224.28 $ ====32=7==,7=9=1=3=0 $ 21,914,251.67 160,300.29 $ 22,074,551.96 824,672.32 $ _ _ _3_2_7~7,_9_1._30_ $ 22,899,224.28 $ ====32=7==7,=9=1.=30= -1- SECRETARY OF STATE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND "A" SECRETARY OF STATE YEAR ENDED JUNE 30, 2004 EXHIBIT"B" FUNDS AVAILABLE REVENUES State Appropriation Federal Revenues Other Revenues Retained CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance EXPENDITURES Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem and Fees Contracts Election Expenses Excess of Funds Available over Expenditures BUDGET ACTUAL VARIANCEFAVORABLE (UNFAVORABLE) $ 31,745,744.00 $ 31,745,744.00 $ 0.00 65,048,405.96 5,958,143.00 3,298,198.74 $ 37,703,887.00 $ 100,092,348.70 $ 0.00 65,048,405.96 -2,659,944.26 62,388,461.70 0.00 9,136,222.36 9,136,222.36 $ 37,703,887.00 $ 109,228,571.06 $ 71,524,684.06 $ 19,113,921.00 $ 19,109,412.10 $ 4,802,361.00 4,806,631.35 362,575.00 284,525.37 34,533.00 34,532.58 75,019.00 69,224.32 4,194,802.00 4,188,603.43 4,465,496.00 4,379,714.62 1,079,779.00 1,062,194.93 1,829,291.00 1,822,431.36 1,096,775.00 1,026,775.00 649,335.00 641,197.80 4,508.90 -4,270.35 78,049.63 0.42 5,794.68 6,198.57 85,781.38 17,584.07 6,859.64 70,000.00 8,137.20 $ 37,703,887.00 $ 37,425,242.86 $ _ _ _27_8...a..,6_4_4_.1_4 $ 71,803,328.20 $ 71,803,328.20 -2 - SECRETARY OF STATE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND "B" REAL ESTATE COMMISSION YEAR ENDED JUNE 30, 2004 EXHIBIT"C" FUNDS AVAILABLE REVENUES State Appropriation Other Revenues Retained BUDGET ACTUAL VARIANCEFAVORABLE (UNFAVORABLE) $ 2,330,272.00 $ 2,330,272.00 $ 142,642.00 142,641.99 $ 2,472,914.00 $ 2,472,913.99 $ 0.00 -0.01 -0.01 EXPENDITURES Personal Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem and Fees Contracts $ 1,572,130.00 $ 1,505,370.63 $ 153,383.00 153,592.61 47,000.00 32,293.75 12,500.00 11,990.42 154,185.00 116,598.33 182,512.00 181,894.21 79,043.00 73,295.73 271,799.00 271,433.64 362.00 361.20 $ 2,472,914.00 $ 2,346,830.52 $ 66,759.37 -209.61 14,706.25 509.58 37,586.67 617.79 5,747.27 365.36 0.80 126,083.48 Excess of Funds Available over Expenditures $ 126,083.47 $ =====12=6~,0=8=3.=47= -3-