Management report, State Department of Veterans Service, an organizational unit of the state of Georgia, year ended June 30, 1998

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MANAGEMENT REPORT STATE DEPARTMENT OF VETERANS SERVICE AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1998
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

STATE DEPARTMENT OF VETERANS SERVICE MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL

SECTION I

. SELECTED FINANCIAL INFORMATION

EXlllBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGET FUND

1

B SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES

COMWARED TO BUDGET

BUDGET FUND

2

C RECONCILIAnON OF TRAVEL

3

SECTIONll 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
November 13, 1998

Governor of the State of Georgia Members of the General Assembly of Georgia Members of the Veterans Service Board
and Honorable Pete Wheeler, Commissioner State Department of Veterans Service
Ladies and Gentlemen:
As part of our audit of the statutory basis financial statements of the 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, 1998, we have performed certain audit procedures at the State Department of Veterans Service. Accordingly, the financial statements and compliance activities ofthe State Department ofVeterans Service were examined to the extent considered 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 control as required by the Single Audit Act Amendments of 1996.
This Management Report contains information pertinent to the [mancial and compliance activities of the State Department of Veterans Service as of and for the year ended June 30, 1998. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the use of management of the State Department of Veterans Service. However, this report is a matter of public record and its distribution is not limited.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:ds

SECTION I SELECTED FINANCIAL INFORMATION
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STATE DEPARTMENT OF VETERANS SERVICE ANALYSIS OF CHANGES IN FUND BALANCE BUDGET FUND YEAR ENDED JUNE 30, 1998
FUND BALANCE - JULY 1, 1997 SurplUS
ADDITIONS Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures Exhibit "B"
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30,1997
FUND BALANCE - JUNE 30, 1998
SUMMARY OF FUND BALANCE Surplus

EXHIBIT "A"
$ 402,634.64 $ 85,793.68
739,853,87
$ 825;647.55
$ 402,634,64
$ 825,647,55
$ 825,647,55

"..

-1-

STATE DEPARTMENT OF VETERANS SERVICE SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30, 1998

EXHIBIT"B"

FUNDS AVAILABLE
REVENUES
State Appropriation Federal Revenues

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 20,519,548,00 $ 20,519,548.00 $

8,295,136.00

8,358,760,09

0.00 63,624.09

$ 28,814,684.00 $ 28,878,308.09 $ _ _~6:....:3..:...;,6_2_4._09_

EXPENDITURES
Personal Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Capital Outlay Operating Expense/Payments to
Medical College of Georgia Regular Operating Expenses for
Projects and Insurance
Excess of Funds Available over Expenditures

$ 5,156,689,00 $ 5,119,106.44 $

218,263,00

221,427.44

97,245,00

95,414,82

161,495,00

165,167.11

20,400.00

20,797.44

248,700,00

243,679.48

67,500,00

69,191,88

14,204,610,00 13,564,089.09

686,260,00

686,260.00

7,420,422,00

7,420,422.00

533,100,00

532,898.52

37,582.56 -3,164.44 1,830.18 -3,672.11
-397.44 5,020,52 -1,691.88 640,520.91
0.00
0.00
201.48

$ 28,814,684.00 $ 28,138,454,22 $ - - - -6-76',2-29-.7-8

$

739,853.87 $ ===7=3=9,=85:=3=,8=7

-2-

STATE DEPARTMENT OF VETERANS SERVICE RECONCILIATION OF TRAVEL YEAR ENDED JUNE 3D. 1998
Total per Annual Supplement Accruals
June 30, 1998

EXHIBIT"C"
$ 95,378.57
36.25
$ 95,414.82

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SECTION II CURRENT YEAR FINDINGS AND QUESTIONED COSTS
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STATE DEPARTMENT OF VETERANS SERVICE SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1998
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS BUDGET PREPARATIONIEXECUTION Overexpenditure of Budget Unit Object Classes Finding Control Number: FS-488-98-01 The total approved budget for the State Department of Veterans Service provided for expenditures totaling $28,814,684.00. A comparison of anticipated funds available and budgeted expenditures to actual funds available and expenditures by object class indicated that the common object classes Equipment and Telecommunications exceeded the authorized expenditure level of 102% of the budgeted amount for those common object classes by $442.21 and $341.88, respectively. The overexpenditures identified above are in violation of Section 54 of the Amended Appropriations Act of 1997-1998. These overexpenditures were caused by the Department's failure to monitor the expenditure of funds against the budgeted expenditures by object class. The State Department of Veterans Service should review its internal control procedures over budget operations, design procedures which would prohibit the expenditure of funds in excess of budget approval, and implement those procedures to strengthen the internal controls over the budget function.
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