Prosecuting Attorneys' Council budgetary compliance report for the fiscal year ended June 30, 2011 [June 30, 2011]

Fiscal Year 201 1

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Council

Budgetary Compliance
Report
For the Fiscal Year
Ended June 30,2011

Department of Audits and Accounts
Russell W. Hinton State Auditor
State Government Division John A. Thornton, Director

BUDGETARCYOMPLIANCREEPORT FORTHE FISCALYEARENDEDJUNE 30,201 1

Independent Accountant's Report ....................................................................................................i....

Statement of Funds Available and Expenditures Compared to Budget

By Program and Funding Source

Budget Fund ..........................................................................................................

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Schedule of Findings and Questioned Costs
Summary Schedule of Prior Year Findings and Questioned Costs ......................................... 6 Schedule of Findings and Questioned Costs............................................................................ 6

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DEPARTMEONFTAUDITSAND ACCOUNTS 270 Washington St. S.W. Suite 1-156 Atlanta, Georgia 30334
RUSSELWL. HINTON
STATE AUDITOR (404) 656-2174
INDEPENDENT ACCOUNTANT'S REPORT
The Honorable N.Stanley Gunter, Executive Director
Prosecuting Attorneys' Council and
Members of the Prosecuting Attorneys' Council
We were engaged to examine the Prosecuting Attorneys' Council's compliance with the 2011 Appropriations Act, as amended, (Final Budget) and Article VII, Section IV Paragraph VIII of the Constitution of the State of Georgia for fiscal year ended June 30,2011. Management is responsible for the Prosecuting Attorneys' Council's compliance with the following requirements:
An appropriated budget unit cannot overspend their authorized budgeted amounts at the legal level of budgetary control (fhnding source within program). This means that amounts reflected in the "variance" column under the heading of Expenditures Compared to Budget in the Statement of Funds Available and Expenditures Compared to Budget by Program and Funding Source Budget Fund are not negative variances,
Article VII, Section IV Paragraph VIII of the Constitution of the State of Georgia
provides, in part, ". ..the credit of the State shall not be pledged or loaned to any
individual, company, corporation or association." As applied here, this means that amounts reflected in the "variance" column under the heading of Excess (Deficiency) of Funds Available Over/(Under) Expenditures in the Statement of Funds Available and Expenditures Compared to Budget by Program and Funding Source Budget Fund are not negative variances.
The responsible party of the Prosecuting Attorneys' Council of Georgia was unable to provide written, conclusive representation as to the fair presentation of the Statement of Funds Available and Expenditures Compared to Budget by Program and Funding Source Budget Fund. Such representations are required under attestation standards.
Because of the restriction on the scope of our examination discussed in the preceding paragraph, the scope of our work was not sufficient to enable us to express, and we do not express, an opinion on whether the Prosecuting Attorneys' Council complied, in all material respects, with the 201 1 Appropriations Act, as amended, (Final Budget) and Article VII, Section IV Paragraph VIII of the Constitution of the State of Georgia for the fiscal year ended June 30,2011.

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In the Schedule of Findings and Questioned Cost section of this report, we have reported all findings and questioned costs related to the Prosecuting Attorneys' Council's compliance with the 201 1 Appropriations Act, as amended, (Final Budget) and Article VII, Section IV Paragraph VIII of the Constitution of the State of Georgia for fiscal year ended June 30,2011; including any identified deficiencies in internal control over compliance which were determined to be either material weaknesses or significant deficiencies.
A separate management report will be issued to the Board and management of the Prosecuting Attorneys' Council disclosing other information pertinent to the financial and compliance activities of the organization.
This report is intended solely for the information and use of the Board and management of the Prosecuting Attorneys' Council and management of the State of Georgia, including the Governor and the Georgia General Assembly. This report is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.
Respectfully submitted,

November 8,2011

~ u s s Wd . Hinton, CPA, CGFM State Auditor

Prosecuting Attorneys' Council
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,201 1

Council of Superior Court Clerks State Appropriation State General Funds
District Attorneys State Appropriation State General Funds Federal Funds Federal Funds Not Spec~ficallyIdentified Other Funds
Total District Attorneys
Prosecuting Attorney's Council State Appropriation State General Funds federal Funds Federal Funds Not Specifically ldentified American Recovely and Re~nvestmentAct of 2009 Federal Funds Not Specifically ldentified Other Funds
Total Prosecuting Attorney's Council
Budget Unit Totals

Original Appropriation

Amended Appropriation

Final Budget

Funds Current Year
Revenues

Available Compared to Budget

Prior Year Reserve

Total

Carry-Over

Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Variance

Actual

Positive (Negative)

Excess (Deficiency) of Funds Available
Over/(Under) Expenditures

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s C t l ~ l > ~OFl .F~INDINGASND QUESTIONED COSTS

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-418-10-100

Further Action Not Wanted

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Finding Control Number: FS-4 18-11-100
THE BUDGET Failure to Certify the Accuracy of the Budgetary Compliance Report

Condition:

Our cursory review of the Statement of Funds Available and Expenditures Compared to Budget by Program and Funding Source presented in the Budgetary Compliance Report (BCR) revealed the following instances of non-compliance for the Prosecuting Attorneys' Council of Georgia:

1. District Attorneyslother Funds Expenditures exceeded Funds Available by $153,904.20.

2. Prosecuting Attorney's CouncilIAmerican Recovery and Reinvestment Act of 2009lFederal Funds Not Specifically Identified Expenditures exceeded Funds Available by $26,964.20.

3. Prosecuting Attorney's CouncilIOther Funds Expenditures exceeded Funds Available by $163,444.85.

In addition, the Statement of Changes in Fund Balance by Program and Funding Source for the Prosecuting Attorneys' Council of Georgia reflected an overall current year deficit of $258,929.95.

The Prosecuting Attorneys' Council of Georgia also declined to sign the "Letter of Representation" certifying the accuracy of the amounts reported by h n d source within budgetary program. As a result, we did not perform detailed testing of the underlying documentation supporting the amounts reported in the BCR. Accordingly, we were unable to determine the Council's compliance with the requirements of the current Appropriations Act, as amended, (Final Budget) and the Constitution of the State of Georgia. These compliance requirements being:

An appropriated budget unit cannot overspend their authorized budgeted amounts at the legal level of budgetary control (funding source within program). This means that the amounts that are reflected in the "variance" column under the heading of Expenditures Compared to Budget in the Statement of Funds Available and Expenditures Compared to Budget by Program and
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Funding Source Budget Fund are not negative variances.

Article VII, Section IV Paragraph VIII of the Constitution of the State of Georgia provides, in part, "...the credit of the State shall not be pledged or loaned to any individual, company, corporation or association." As applied here, this means that amounts reflected in the "variance" column under the heading of Excess (Deficiency) of Funds Available Over/(Under) Expenditures in the Statement of Funds Available and Expenditures Compared to Budget by Program and Funding Source Budget Fund are not negative variances.

Criteria:

Each appropriated budget unit of the State of Georgia was subject to compliance testing to be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AT Section 601). Compliance attestations require that the responsible party of the budget unit organization provide various written representations related to the accuracy of their BCR, to the best of their knowledge and belief. The responsible party's refusal or inability to furnish all appropriate representations in accordance with the attestation standards constitutes a limitation on the scope of the engagement.

Information:

The statement as presented in the BCR reflects the Council's budgetary activity at the legal level of budgetary control as prescribed by the FY 201 1 Amended Appropriations Act. Also at this level, the BCR reports whether the Council is operating within the debt limitations of the Constitution of the State of Georgia which prohibits expenditures from exceeding funds available.

Cause:

Due to the uncertainty regarding the accuracy of the Statement of Funds Available and Expenditures Compared to Budget by Program and Funding Source, the Prosecuting Attorneys' Council of Georgia declined to prepare and sign a letter of representation for the examination engagement of the organization's compliance with the 2011 Appropriation Act, as amended.

Effect:

The amounts reported in the Council's BCR should not be used for decision-making purposes at the legal level of budgetary control because of the lack of assurances by management and the likelihood that it contains material errors.

Recommendation:

The Prosecuting Attorneys' Council of Georgia should manage its budgetary activity at the legal level of control, which is fund source within program. In order to produce accurate and useful BCR reports in the future, actions to be taken by the Council should include, but not be limited to, the following:

1. Obtain additional understanding and needed training regarding Program-Based Budgeting.

2. Monitor Peoplesoft budgetary reports on a weekly basis.
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3. Consider the need to allocate administrative costs across programs.
4. Ensure that current activity is not co-mingled with prior year activity.