General Obligation Debt Sinking Fund Budgetary Compliance Report For the Fiscal Year Ended June 30, 2012 Department of Audits and Accounts Greg S. Griffin State Auditor State Government Division David Pennington, Director GENERAL 0BLIGATION DEBT SINKING FUND BUDGETARY COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 -TABLE OF CONTENTS- COMPLIANCE SECTION Independent Accountant's Report ........................................................................................................ i Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund ............................................................................................................... 1 COMPLIANCE SECTION (This page intentionally left blank) > DEPARTMENT OF AUDITS AND ACCOUNTS 270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 Greg S. Griffin STATE AUDITOR (404) 656-2180 INDEPENDENT ACCOUNTANT'S REPORT Mr. Steve McCoy, State Treasurer Office ofthe State Treasurer, Ms. Susan Ridley, Director Financing and Investment Division Georgia State Financing and Investment Commission and Members of the Georgia State Financing and Investment Commission We have examined the State of Georgia General Obligation Debt Sinking Fund's compliance with the 2012 Appropriations Act, as amended, (Final Budget) and Article VII, Section IV Paragraph VIII ofthe Constitution ofthe State of Georgia for fiscal year ended June 30, 2012. Management is responsible for the State of Georgia General Obligation Debt Sinking Fund's compliance with the following requirements: An appropriated budget unit cannot overspend their authorized budgeted amounts at the legal level ofbudgetary 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 ofFunds 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 ofthe 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 ofFunds 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 State of Georgia General Obligation Debt Sinking Fund based on our examination. Except as disclosed in the following paragraph, our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, includes examining, on a test basis, evidence about the State of Georgia General Obligation Debt Sinking Fund'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 State of Georgia General Obligation Debt Sinking Fund's compliance with the specified requirements; however, our report may be useful to legal counsel or others in making such determinations. In accordance with section 50-6-1(c) of the Official Code of Georgia Annotated, Greg S. Griffin was appointed State Auditor on July 1, 2012. During the year under review, Mr. Griffin served as the State Accounting Officer. As the State Accounting Officer, Mr. Griffin was responsible for the State's accounting and financial reporting practices In our opinion, the State of Georgia General Obligation Debt Sinking Fund complied, in all material respects, with the aforementioned requirements for the fiscal year ended June 30, 2012. A separate management report will be issued to management of the Office of the State Treasurer 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 Commission and management of the State of Georgia General Obligation Debt Sinking Fund 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, October 31,2012 Greg S. Griffin State Auditor 11 (This page intentionally left blank) General Obligation Debt Sinking Fund Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2012 General ObUgation Debt Sinking Fund Issued State Appropriation State General Funds State Motor Fuel Funds State Funds - Prior Year Carry-Over State General Funds Prior Year State Motor Fuel Funds - Prior Year American Recovery and Reinvestment Act of 2009 Federal Funds Not Itemized Total General ObUgation Debt Sinking Fund Issued General ObUgation Debt Sinking Fund New State Appropriation State General Funds State Funds - Prior Year Carry-Over State General Funds - Prior Year State Motor Fuel Funds - Prior Year Total General Obligation Debt Sinking Fund - New Budget Unit Totals Original Aeeroertation Amended Aeeroerlation Final Budset Funds Current Year Revenues $ 802,729,737.00 193,634,596.00 996,364,333.00 $ 717,486,133.00 193,634,596.00 11,353,993.00 922,474,722.00 $ 717,486,133.00 193,634,596.00 114,520,885.00 28,411,111.00 11,353,993.00 1,065,406,718.00 $ 668,708,895.00 193,634,596.00 16,456,397.79 878,799,888.79 68,828,096.00 68,828,096.00 68,828,096.00 68,828,096.00 68,828,096.00 33,254,036.00 9,616,700.00 111,698,832.00 68,828,096.00 68,828,096.00 $1,065,192,429.00 $ 991,302,818.00 $1,177,105,550.00 $ 947,627,984.79 1 Available Comeared to BudGet Prior Year Reserve Program Transfers Carry-Over or Adjustments Total Funds Available Variance Positive (NeGative) E!J!!:ndltures Comeared to BudGet Variance Actual Positive (NeGative) Excess (Deficiency) of Funds Available Over/(Under) E!l!!;ndltures $ $ 114,520,884.31 28,411.110.14 11,353,993.39 154,285,987.84 $ 668,708,895.00 193,634,596.00 114,520,884.31 28,411,110.14 27,8 10,391.18 1,033,085,876.63 $ (48,777,238.00) $ 667,382,893.79 138,592,880.71 (0.69) (0.86) 114,520,884.31 28,411,110.14 16,456,398.18 11,353,993.39 (32,320,841.37) 960,261,762.34 $ 50,103,239.21 55,041,715.29 $ 1,326,001.21 55,041,715.29 0.69 0.86 (0.39) 16,456,397.79 105,144,955.66 72,824,114.29 53,923,646.00 21,060,700.00 74,984,346.00 $ 229,270,333.84 $ 68,828,096.00 53,923,646.00 21,060,700.00 143,812,442.00 20,669,610.00 11,444,000.00 32, 113,610.00 40,773,131.00 33,254,036.00 9,616,700.00 83,643,867.00 28,054,965.00 28,054,965.00 28,054,965.00 20,669,610.00 11,444,000.00 60,168,575.00 $ 1,176,898,318.63 $ (207,23 1.37) $1,043,905,629.34 $ 133,199,920.66 $ 132,992,689.29 2