IFiscal Year 2010 Department of Defense Budgetary Compliance Report For the Fiscal Year Ended June 30,2010 Department of Audits and Accounts Russell W, Hinton State Auditor State Government Pivision John A, Thornton, Director BUDGETARCYOMPLIANCREPORT FORTHE FISCALYEARENDEDJUNE 30,2010 -TABLEOF CONTENT-S Independent Accountant's Report ..................................................................................................... i Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund .............................................................................................................. 1 (This page intentionally left blank) (This page intentionally left blank) 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 William T, Nesbitt, Adjutant General Department of Defense We have examined the Department of Defense's compliance with the 2010 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 30,2010. Management is responsible for the Department of Defense's compliance with the following requirements: An appropriated budget unit cannot overspend their authorized budgeted amounts at the legal level of budgetary control (funding 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. Our responsibility is to express an opinion on compliance with the aforementioned requirements for the Department of Defense based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, include examining, on a test basis, evidence about the Department of Defense's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the aforementioned organization's compliance with the specified (This page intentionally left blank) requirements; however, our report may be useful to legal counsel or others in making such determinations. In our opinion, the Department of Defense complied, in all material respects, with the aforementioned requirements for the fiscal year ended June 30,2010. A separate management report will be issued to management of the Department of Defense disclosing other information pertinent to the .financialand compliance activities of the organization. This report is intended solely for the information and use of management of the Department of Defense 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. Respectfilly submitted, December 9,2010 Russell W. Hinton, CPA, CGFM State Auditor Department of Defense Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010 Depnrbnental AdmitdstFaPion State Appropriation State General Fun& Federal Funds Federal Funds N a Specifically Identified Total Deprbncntal AdminIstralim Military Readiness State Appropriation State General Funds Federal Funds Federal Funds Not Specifically ldentilied American Recovery and Reinvestment Act of 2009 Federal Funds N d Specifically ldentilied Other Funds TotalMilitary Readlwss Ywth E d u c n t i d Services State Appropriation State Geneml Fun& Federal Funds Federal Funds N a Specifically Identified Total Youth Educatimal Services Program Not Identified State Appmpriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds Tntal Program Not IdentiIkd Budget Unit Totals Original Appropriation Amended Appropriation Final Budgot Funds Current Year Revenues Available Compared to Budget Prior Year Total Carry-Over Fmds Available Variance Positive (Negative) Expenditures Compared to Budget Variance Actual Posibive (Negative) Excess (Deficiency) of Funds Available Overl(URder) Ewpeditors (This page intentionally left blank)