Fiscal Year 2013 Georgia Student Finance Commission Budgetary Compliance Report For the Fiscal Year Ended June 30, 2013 Department of Audits and Accounts Greg S. Griffin State Auditor State Government Division David Pennington, Director GEORGIA STUDENT FINANCE COMMISSION BUDGETARY COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 -- TABLE OF CONTENTS -- Page 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) 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. Tracy A. Ireland, 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 2013 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, 2013. Also included in our examination was the following administratively attached organization, whose budget was included in Section 44: Student Finance Commission, Georgia of the 2013 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 (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 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 organizations' compliance with the specified requirements; however, our report may be useful to legal counselor 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, 2013. A summary 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 Qualified 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 11 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 17,2013 Greg S. Griffin State Auditor 111 Georgia Student Finance Commission Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30, 2013 Accel State Appropriation State General Funds Lottery Proceeds Other Funds Total Accel Engineer Scholarship State Appropriation State General Funds Lottery Proceeds Total Engineer Scholarship Georgia Military College Scholarship State Appropriation State General Funds Lottery Proceeds Total Georgia Military College Scholarship HERO Scholarship State Appropriation State General Funds Other Funds Total HERO Scholarship HOPE Administration State Appropriation Lottery Proceeds Federal Funds Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Recovery Funds Not Specifically Identified Other Funds Total HOPE Administration HOPE GED State Appropriation Lottery Proceeds HOPE Grant State Appropriation Lottery Proceeds HOPE Scholarships - Private Schools State Appropriation Lottery Proceeds HOPE Scholarships - Public Schools State Appropriation Lottery Proceeds Low Interest Loans State Appropriation Lottery Proceeds North Ga. Military Scholarship Grants State Appropriation State General Funds Other Funds Total North Ga. Military Scholarship Grants Original Appropriation Amended Appropriation Final Budget Funds Current Year Revenues $ 6,500,000.00 $ 6,700,000.00 $ 6,700,000.00 $ 6,700,000.00 - - - - 569,682.00 1,842,895.00 1,842,895.00 1,842,895.00 7,069,682.00 8,542,895.00 8,542,895.00 8,542,895.00 570,000.00 - 570,000.00 701,750.00 - 701,750.00 701,750.00 - 701,750.00 701,750.00 - 701,750.00 1,094,862.00 - 1,094,862.00 1,094,862.00 - 1,094,862.00 1,094,862.00 - 1,094,862.00 1,094,862.00 - 1,094,862.00 800,000.00 - 800,000.00 800,000.00 - 800,000.00 800,000.00 - 800,000.00 800,000.00 - 800,000.00 7,922,124.00 - 7,922,124.00 7,918,596.00 - 7,918,596.00 7,918,596.00 255,013.00 144,467.00 839,748.00 9,157,824.00 7,918,596.00 255,012.01 144,466.10 843,982.40 9,162,056.51 2,636,276.00 1,930,296.00 1,930,296.00 1,930,296.00 112,658,625.00 89,452,587.00 89,452,587.00 85,993,969.00 54,385,503.00 46,030,622.00 46,030,622.00 46,030,622.00 408,235,018.00 401,800,599.00 401,800,599.00 401,800,599.00 20,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00 1,444,576.00 482,723.00 1,927,299.00 1,444,576.00 237,675.00 1,682,251.00 1,444,576.00 312,675.00 1,757,251.00 1,444,576.00 312,675.00 1,757,251.00 1 Available Compared to Budget Prior Year Reserve Program Transfers Carry-Over or Adjustments Total Funds Available Variance Positive (Negative) Expenditures Compared to Budget Variance Actual Positive (Negative) Excess (Deficiency) of Funds Available Over/(Under) Expenditures $ -$ - $ 6,700,000.00 $ - $ 6,700,000.00 $ -$ - - - - - - - - - - 1,842,895.00 - 1,842,895.00 - - - - 8,542,895.00 - 8,542,895.00 - - - - 701,750.00 - 701,750.00 - - - - - - - - - - - 701,750.00 - 701,750.00 - - - - 1,094,862.00 - 1,094,862.00 - - - - - - - - - - - 1,094,862.00 - 1,094,862.00 - - - - 800,000.00 - 800,000.00 - - - - - - - - - - - 800,000.00 - 800,000.00 - - - - 7,918,596.00 - 7,549,157.93 369,438.07 369,438.07 - - 255,012.01 (0.99) 255,012.01 0.99 - - - 144,466.10 (0.90) 144,466.10 0.90 - - - 843,982.40 4,234.40 655,009.02 184,738.98 188,973.38 - - 9,162,056.51 4,232.51 8,603,645.06 554,178.94 558,411.45 - - 1,930,296.00 - 1,801,677.85 128,618.15 128,618.15 - - 85,993,969.00 (3,458,618.00) 71,516,394.25 17,936,192.75 14,477,574.75 - - 46,030,622.00 - 41,399,550.45 4,631,071.55 4,631,071.55 - - 401,800,599.00 - 387,730,733.10 14,069,865.90 14,069,865.90 - - 20,000,000.00 - 20,000,000.00 - - - - 1,444,576.00 - 1,444,576.00 - - - - 312,675.00 - 312,675.00 - - - - 1,757,251.00 - 1,757,251.00 - - (continued) 2 Georgia Student Finance Commission Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30, 2013 North Georgia ROTC Grants State Appropriation State General Funds Promise Scholarship State Appropriation Lottery Proceeds Public Memorial Safety Grant State Appropriation State General Funds Lottery Proceeds Other Funds Total Public Memorial Safety Grant Tuition Equalization 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 Nonpublic Postsecondary Education Commission Original Appropriation Amended Appropriation Final Budget Funds Current Year Revenues 875,000.00 875,000.00 875,000.00 875,000.00 - - - - 376,761.00 - 376,761.00 376,761.00 - 376,761.00 376,761.00 - 376,761.00 376,761.00 - 376,761.00 21,896,323.00 529,727.00 22,426,050.00 20,176,108.00 529,727.00 20,705,835.00 20,176,108.00 529,727.00 20,705,835.00 20,176,108.00 529,727.00 20,705,835.00 758,655.00 - 758,655.00 714,602.00 44,297.00 758,899.00 714,602.00 332,842.00 1,047,444.00 714,602.00 333,284.90 1,047,886.90 Budget Unit Totals $ 641,735,855.00 $ 602,670,953.00 $ 604,273,726.00 $ 600,819,783.41 3 Available Compared to Budget Prior Year Reserve Program Transfers Carry-Over or Adjustments Total Funds Available Variance Positive (Negative) Expenditures Compared to Budget Variance Actual Positive (Negative) Excess (Deficiency) of Funds Available Over/(Under) Expenditures - - 875,000.00 - 875,000.00 - - - - - - - - - - - 376,761.00 - 376,761.00 - - - - - - - - - - - - - - - - - - 376,761.00 - 376,761.00 - - - - 20,176,108.00 - 20,176,108.00 - - - - 529,727.00 - 529,727.00 - - - - 20,705,835.00 - 20,705,835.00 - - - - 714,602.00 - 691,651.96 22,950.04 22,950.04 - - 333,284.90 442.90 332,842.00 - 442.90 - - 1,047,886.90 442.90 1,024,493.96 22,950.04 23,392.94 $ -$ - $ 600,819,783.41 $ (3,453,942.59) $ 566,930,848.67 $ 37,342,877.33 $ 33,888,934.74 4