Secretary of State budgetary compliance report for the fiscal year ended June 30, 2010

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. Thorntun, Direotor

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 Brian Kemp, Secretary of State Office of Secretary of State
Executive Director Sylvia Wygoda Georgia Commission on the Holocaust
and Members of the Georgia Commission on the Holocaust
Director C. Richard 'Rick' Allen, R.Ph Georgia Drugs and Narcotics Agency
and Members of the Georgia Drugs and Narcotics Agency
Executive Secretary Stacey Kalberman State Ethics Commission
and Members of the State Ethics Commission
Real Estate Commissioner Jeffrey T. Ledford Georgia Real Estate Commission
and Members of the Georgia Real Estate Commission
We have examined the Office of Secretary of State'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 30,20 10. Also included in our examination
were the following four administratively attached organization ,whose budgets were included in
Section 41: Secretary of State of the 2010 Amended Appropriations Act:

Georgia Commission on the Holocaust Georgia Drugs and Narcotics Agency State Ethics Commission Georgia Real Estate Commission
Management for each of these organizations is responsible for their compliance with the following requirements:

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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 Office of Secretary of State and the four administratively attached organizations 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 Office of Secretary of State's and the four administratively attached organizations' 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 our opinion, the Secretary of State and the four administratively attached organizations complied, in all material respects, with the aforementioned requirements for the fiscal year ended June 30,2010.

A summary of o w opinions on compliance for the Office of Secretary of State and the administratively attached organizations is as follows:

Organization
Secretary of State Georgia Commission on the Holocaust Georgia Drugs and Narcotics Agency State Ethics Commission Georgia Real Estate Commission

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

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A separate management report will be issued to management of the Office of Secretary of State and the four administratively attached organizations disclosing other information pertinent to the financial and compliance activities of the organization.
This report is intended solely for the information and use of management of the Office of Secretary of State and the four administratively attached organizations 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.
Respccthlly submittcd.

December 10,2010

Russell W. Hinton, CPA, CGFM State Auditor

Secretary of State
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Omce Administration Statc Appropriation State General Funds Other Funds
Total Office Adminishation
Archives and Records State Appropriation Statc General Funds Fcdcnl Funds Federal Funds Not Specifiially Idenlified Other Funds
Total Archives and Records
Capitol Tours State Appropriation State General Funds Other Funds
Total Capitol Tours
Corporations State Appropriation State Gcneral Funds Other Funds
Total Corpnrations
Electiuns State Appropriation State General Funds State Gencral Fund Prior Year State - Prior Year Federal Funds Federal Funds Not Specifically Identified Othcr Funds
Total Electiom
Professional Lieeosing Bucirds Statc Appropriation State General Funds Federal Funds Federal Funds Not Specifically ldcnoficd Othcr Funds
Total Professional Licensing Bovrds
Securities State Appropriation Statc General Funds Other Funds
Total Senvities

Original Appropriafiw

Amended Appropriatiw

Final Budget

Funds Current Year
Revenues

Available Compared to Budget

Prior Year Prior Year Carryover

Total

Carryover

Budget Allueatiw Funds Available

VariDnee Positive (Negative)

Expenditures Cornpared to Budget

Varianee

Actual

Pasitive (Negative)

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

Secretary of State
Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30,2010

Agencies Attached for Administrative Purposes
Commission00 the Holocaust, Georgia State Appropriation State General Funds Other Funds
Total Commissionon the Holomust, Georgia
Drugs and Narcotics Agency, Georgia State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds
Total Drugs and Narcotics Agency, Geo-
Real Estate Commission State Appropriation State General Funds Other Funds
Total Real Estate Commission
State Ethics Commission State Appropriation Statc Gcncral Funds Other Funds
Total State Ethics Commivsioo
Budget Unit Totalfi

Original Apprupriation

Amended Appropriation

Find Budget

Funds Current Year
Revenues

Available Compared to Budget

Prior Year Prior Year Carryover

Total

Cany-Over

Budget Allocation Funds Available

Varianee Positive (Negative)

Expenditures Compared to Budget

Variance

Actual

Positive (Negative)

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