Department of Economic Development budgetary compliance report for the fiscal year ended June 30, 2012 [June 30, 2012]

Department of Economic Development
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

DEPARTMENT OF ECONOMIC DEVELOPMENT
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

(This page intentionally left blank)

COMPLIANCE SECTION

(This page intentionally left blank)

I i> .

Greg S. Griffin
STATE AUDITOR (404) 656-2180

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400

INDEPENDENT ACCOUNTANT'S REPORT
Mr. Chris Cummiskey, Commissioner Department of Economic Development
and Members ofthe Department of Economic Development
Mr. John Culpepper Civil War Commission
We have examined the Department of Economic Development's compliance with the 2012 Appropriations Act, as amended, (Final Budget) and Article VII, Section IV Paragraph VIII of the Constitution ofthe State of Georgia for fiscal year ended June 30, 2012. Also included in our examination was the following administratively attached organization, whose budget was included in Section 22: Economic Development, Department ofofthe 2012 Amended Appropriations Act: Civil War Commission.
Management for each of these organizations is responsible for their 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 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 ofFunds Available and Expenditures Compared to Budget by Program and Funding Source Budget Fund are not negative variances.

1

Our responsibility is to express an opinion on compliance with the aforementioned requirements for the Department of Economic Development and the Civil War Commission 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, include examining, on a test basis, evidence about the Department of Economic Development's and the Civil War Commission'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 organizations' 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 and managing the enterprise accounting and payroll systems.

In our opinion, the Department of Economic Development and the Civil War Commission complied, in all material respects, with the aforementioned requirements for the fiscal year ended June 30, 2012.

A summary of our opinions on compliance for the Department of Economic Development and the Civil War Commission is as follows:

Organization
Department of Economic Development Civil War Commission

Unqualified Qualified Adverse Disclaimer Opinion Opinion Opinion (No Opinion) X X

A separate management report will be issued to the Board and management of the Department of Economic Development and the Civil War Commission, as applicable, disclosing other information pertinent to the financial and compliance activities of the organization.

11

This report is intended solely for the information and use of the Board and management of the Department of Economic Development and the Civil War Commission 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 2, 2012

Greg S. Griffin State Auditor

iii

Department of Economic Development
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30, 2012

Arts, Georgia Council for the State Appropriation State General Funds Federal Funds Federal Funds Not Itemized Other Funds
Total Arts, Georgia Council for the
Business Recruitment and Expansion State Appropriation State General Funds Other Funds
Total Business Recruitment and Expansion
Departmental Administration State Appropriation State General Funds Other Funds
Total Departmental Administration
Film, Video and Music State Appropriation State General Funds
Innovation and Technolog) State Appropriation State General Funds Tobacco Settlement Funds Federal Funds Federal Funds Not Itemized
Total Innovation and Technolog)
International Relations and Trade State Appropriation State General Funds Federal Funds Federal Funds Not Itemized
Total International Relations and Trade
Small and Minority Business Development State Appropriation State General Funds Other Funds
Total Small and Minority Business Development
Tourism State Appropriation State General Funds Other Funds
Total Tourism
Payments to Georgia Medical Center Authority State Appropriation State General Funds

Original Aeeroeriation

Amended Aeeroeriation

Final Bnd;et

Funds Current Year
Revenues

$

574,268.00 $

580,200.00 $

580,200.00 $

580,200.00

659,400.00

659,400.00

1,336,016.00 194,899.00

830,105.92 194,899.19

1,233,668.00

1,239,600.00

2.111,115.00

I ,605,205.11

7, 708,241.00 7,708,241.00

7,474,461.00 7,474,461.00

7,474,461.00 3,021,742.00
10,496,203.00

7,474,461.00 3,021.742.00
10,496,203.00

3,996,523.00 126.00
3,996,649.00

3,934,388.00 126.00
3,934,514.00

3,934,388.00 3,934,388.00

3,934,388.00 3,934,388.00

1,010,892.00

970,665.00

970,665.00

970,665.00

5,965,859.00 7,668,946.00
250,000.00
13,884,805.00

5,885,276.00 7,668,946.00
250,000.00
13,804,222.00

5,885,276.00 7,668,946.00
13,554,222.00

5,885,276.00 7,668,946.00
13,554,222.00

2,101.547.00 2.101,547.00

2.118,068.00 2.118,068.00

2.118,068 00 1,073,429.00 3,191,497.00

2.118.068 00 614,972.92
2,733,040.92

896,415.00 20,244.00
916,659.00

904,367.00 20,244.00
924,611.00

904,367.00 904,367.00

904,367.00 904,367.00

9,590,993.00 9,590,993.00

9,434,970.00 9,434,970.00

9,434,970.00 100,001.00
9,534,971 00

9,434,970.00 100,001.00
9,534,97100

175,000.00

175,000.00

175,000.00

175,000.00

Available Comeared to Bud;et

Prior Year Reserve Program Transfers

Carry-Over

or Adjustments

Total Funds Available

Variance Positive {Nqative)

Exeenditures Comeared to Bud;et

Variance

Actual

Positive (N!j!ative)

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

$

$

$

580,200.00 $

$

579,868.52 $

331.48 $

331.48

830,105.92

(505,910.08)

830,105.92

505,910.08

194,899.19

0.19

194,899.00

0.19

I ,605,205.11

(505,909.89)

I ,604,873.44

506,241.56

331.67

7,474,461.00 3,021 '742.00
10,496,203.00

7,474,431.98 3,021,742.00
10,496,173.98

29.02 29.02

29.02 29.02

3,934,388.00 3,934,388.00

3,934,517.15 3,934.517.15

(129.15) (129.15)

(129.15) (129.15)

970,665.00

970,610.55

54.45

54.45

5,885,276.00 7,668,946.00

5,885,275.99

0.01

0.01

7,668,946.00

13,554,222.00

13,554,221.99

0.01

0.01

2,118.068.00 614,972.92
2,733,040.92

(458,456.08) (458,456.08)

2,117.940.71 614,972.92
2,732,913.63

127.29 458,456.08 458,583.37

127.29 127.29

904,367.00 904,367.00

904,366.12

0.88

0.88

904,366.12

0.88

0.88

9,434.970 00 100,001.00
9,534,971.00

9,434.964.30

5.70

5.70

100,001.00

9,534,965.30

5.70

5.70

175,000.00

175,000.00

(continued)

2

Department of Economic Development
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30, 2012

Original Appropriation

Amended Appropriation

Final Bud;et

Funds Current Year
Revenues

Agencies Attached for Administrative Puposes
Civil War Commission State Appropriation State General Funds

10,000.00

10,000.00

10,000.00

Budget Unit Totals

$ 40,618.454.00 $ 40,086,111.00 $ 44,882,428.00 $ 43,918.062.03

3

Available Compared to Budget

Prior Year Reserve Program Transfers

Carry-Over

or Adjustments

Total Funds Available

Variance Positive (Negative)

Expenditures Compared to Bud;et

Aetual

Variance Positive (Negative)

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

10,000.00

10,000.00

$

$

$ 43,918.062 03 $ (964,365.97} $ 43,917,642 16 $

964,785.84 $

419.87

4