Implementation of House Bill 91 Russell W. Hinton State Auditor April 30, 2007

House Bill 91 OCGA (a) OCGA (a) –Establishes deadline of September 30 following each fiscal year end to provide financial and program information to:  Lieutenant Governor  Speaker of the House  Chairs, House and Senate Appropriations  Chair, House Budget and Fiscal Affairs Oversight  House Budget Office  Senate Budget and Evaluation Office

House Bill 91 Original House version required each agency to provide variety of information to presiding officers of the House and Senate and Chairs, House and Senate Appropriations Original House version required each agency to provide variety of information to presiding officers of the House and Senate and Chairs, House and Senate Appropriations Senate version, as agreed to by the House, requires the State Auditor to accumulate information and prepare report and/or access to electronic documents /state accounting system financial information as outlined in following slides. Senate version, as agreed to by the House, requires the State Auditor to accumulate information and prepare report and/or access to electronic documents /state accounting system financial information as outlined in following slides.

Situation Assessment “Everything is funny as long as it is happening to someone else.” ~ Will Rogers ~ Will Rogers

House Bill 91 House Bill 91 passed both the House and Senate by considerable margins…as agencies you need to consider this direction with substantial support…transparency in government. House Bill 91 passed both the House and Senate by considerable margins…as agencies you need to consider this direction with substantial support…transparency in government. Placement in State Auditor enabling statutes plays off State Auditor “Access to Information” Statutes Placement in State Auditor enabling statutes plays off State Auditor “Access to Information” Statutes

House Bill 91 Written Reports Written Reports –The bill requires all revenue to be reported, and indicates that the report should include the statutory basis for collection, the amount collected, expended, or reserved, and a reconciliation of the revenue balance. [Fund Source within Program Trial Balance] –If the revenue source is Federal financial assistance, the CFDA number shall be included. –The bill requires the list to be itemized by program as they appear in the General Appropriations Act.

House Bill 91 Written Reports Written Reports – For every program outlined in the General Appropriations Act that directly provides healthcare services or benefits, the State Auditor must provide a listing, by category of assistance, of the unduplicated recipients served and the total expenditures associated with the category of assistance.

House Bill 91 Electronic Documents/Access to State Accounting System Electronic Documents/Access to State Accounting System –A list of all written contracts entered into by the agency during the fiscal year which call for the agency to expend at any time in the aggregate more than $50,000.

House Bill 91 Electronic Documents/Access to State Accounting System Electronic Documents/Access to State Accounting System –A list of employment or consultant contracts, whether or not in writing, which the employee or consultant would be paid an annual rate of $20,000 or more, including direct and indirect or deferred benefits –This provision was changed to indicate that the list should include all contracts in which the individual will receive $20,000 or more in total

House Bill 91 Electronic Documents/Access to State Accounting System Electronic Documents/Access to State Accounting System –A list of the names of each person, firm, or corporation that has received from the agency payments in excess of $20,000, including the amount paid to such person, firm, or corporation during such period.

House Bill 91 Electronic Documents/Access to State Accounting System Electronic Documents/Access to State Accounting System –A list of consultant expenses and other professional services expenses –Salaries and expenses of full-time and part- time employees and board members –Payments rendered by outside companies or agencies to the agency for any and all services

House Bill 91 Will continue to identify subsystems providing adequate detail for compliance with HB91. Will continue to identify subsystems providing adequate detail for compliance with HB91. Clarify implications of applicability to organizations named in Appropriations Act. Clarify implications of applicability to organizations named in Appropriations Act. Data security issues. Data security issues. Data confidentiality issues. Data confidentiality issues.

Th…th…th...that’s all folks! Russell W. Hinton State Auditor

January 1802 Excerpt from a letter written by Thomas Jefferson to a member of Congress on the budgetary accounting of Alexander Hamilton… “In order that he might have the entire government of his machine, he determined so to complicate it as that neither the President or Congress should be able to understand it or to control him. He succeeded in doing this, not only beyond their reach, but so that he at length could not unravel it himself. He gave to the debt, in the first instance, in finding it, the most artificial and mysterious form he could devise. He then molded up his appropriations of a number of scraps & remnants, many of which were nothing at all, and applied them to different objects in reversion and remainder, until the whole system was involved in impenetrable fog; and while he was giving himself the airs of providing for the payment of the debt, he left himself free to add to it continually, as he did in fact, instead of paying it. I like your idea of kneading all his little scraps & fragments into one batch, and adding to it a complementary sum, which, while it forms it into a single mass from which everything is to be paid, will enable us, should a breach of appropriation ever be charged on us, to prove that the sum appropriated, & more, has been applied to its specific object.”