Student Finance Commission budgetary compliance report for the fiscal year ended June 30, 2010

G~-:gia , C' - 'en- t -
Budgetary Compliance
Report
For the Fiscal Year
Ended June 30,2010
Department of
Audits and Accounts
Russell W. Hinton State Auditor
State Government Division John A. Thornbn, Director

BUDGETARCYOMPLIANCE REPORT FORTHE FISCALYEARENDEDJUNE 30,2010
COMPLIANCSEECTION
Independent Accountant's Report ....................................................................................................... i
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source
Budget Fund .............................................................................................................. 1

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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 Timothy A. Connell, President Georgia Student Finance Commission
and Members of the Georgia Student Finance Commission
Mr. William C. Crews, Executive Director Nonpublic Postsecondary Education Commission
and Members of the Nonpublic Postsecondary Education Commission
We have examined the Georgia Student Finance Commission'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. Also included in our examination was the following administrativelyattached organization, whose budget was included in Section 44: Student Finance Commisszonand Authority, Georpa of the 20 10 Amended Appropriations Act: Nonpublic Postsecondary Education 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 of budgetary control (hnding 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 Expendjtures 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 andk'unding Suurce Budget Fund are not negative variances.

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Our responsibility is to express an opinion on compliance with the aforementioned requirements for the Georgia Student Finance Commission and the Nonpublic Postsecondary Education Commission 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 Georgia Student Finance Commission's and the Nonpublic Postsecondary Education 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 organization's compliance with the specified requirements; however, our report may be useM to legal counsel or others in making such determinations.

In our opinion, the Georgia Student Finance Commission and the Nonpublic Postsecondary Education Commission complied, in all material respects, with the aforementioned requirements for the fiscal year ended June 30,2010.

A s m a r y of our opinions on compliance for the Georgia Student Finance Commission and the Nonpublic Postsecondary Education Commission is as follows:

Organization
Georgia Student Finance Commission Nonpublic Postsecondary Education Commission

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

A separate management report will be issued to the Board and management of the Georgia Student Finance Commission and the Nonpublic Postsecondary Education Commission, as applicable, 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 Georgia Student Finance Commission and the Nonpublic Postsecondary Education 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.

Respectfhlly submitted,

December 9,2010

RussJell W. Hinton, CPA, CGFM State Auditor

Georgia Student Finance Commission and Authority
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Accel State Appropriation Lottery Funds
Engineer Scholarship State Appropriation Lottery ~ u n d s
Georgia Military College Scholarship State Appropriation Lottery Funds
Governor's Scholarship Program State Appropriation Slate General Funds Other Funds
Total Governor's Scholarship Program
G u a r a n t d Educational Loans State Appropriation State General Funds Other Funds
Total Guarantetd E d u a l o n a l Loans
HERO Scholarship State fippropflation State General Funds Other Funds
Total HERO Scholarship
HOPE Administration State Appropriation Lottery Funds Other Funds
Total HOPE Administration
HOPE GED State Appropriation Lottery Funds
HOPE Grant State Appropriation Lottery Funds
HOPE Scholarships - Private &hools
State Appropriation Lottery Funds
- HOPE Scholarships PuMic Schools
State Appropriation Lonery Funds

Original Appropriation

Amended Approprialon

Final Budget

Funds Current Year
Revenues

Available Compared to Budget

Prior Year

Total

Carryaver

Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Variance

Actual

Positive (Negative)

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

$

- $

7,264,625 $

0 $

7,048,719 $

215,906 $

2 1 5,906

Georgia Student Finance Commission and Authority
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Law Enforcement Dependents Grant State Appropriation State General Funds Other Funds
Total Law Enforcement Dependenis Grant
Leveraging Educational Assistance Partnership Program State Appropriahon State General Funds Federal Funds Federal Funds Not SpecificallyIdentified Other Funds
Total Leveraging Educational Assistance Partnenhip Program
North Georgia Military Scholarship Grants State Appropriation State General Funds
North Georgia ROTC Grants State Appropriation State General Funds
Promise Scholarship State Appmpriahon Lottery Funds
Public Memorial Safety Grant State Appropriation Lottery Funds
Teacher Scholarship State Appropriation Lottery Funds
Tuition E q n a l i t i o n Grants State Appropriation State General Funds Other Funds
Total Tuition Equalization Grants
Agencies Attached for Administrative Purposes
Nonpublic Postsecondary Education Commission State Appropriation State General Funds Other Funds
Total Nonpuhlic Postsecondary Education Commission
Budget Unit Totals

Original Appropriation

Amended Appropriation

Final Budget

Funds Current Year
Revenues

Available Compared to Budget

Prior Year

Total

Carry-Over

Funds Available

Variance Positive (Negative)

Expenditures Compared to Budget

Actual

Variance Positive (Negative)

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