Governor Perdue Realigns State's Financial Reporting System

Tuesday, October 12, 2004

Contact: Office of Communications 404-651-7774

 

Appoints Senior Accounting Officer to Oversee Statewide Accounting Practices

 

            ATLANTA, GA – Governor Sonny Perdue announced today the realignment of the state’s financial reporting and financial system responsibilities under a single State Accounting Officer (SAO).  Lynn H. Vellinga has been selected as the SAO and will assume his duties on Monday, October 18, 2004.  He will report to the Governor’s Chief Financial Officer (CFO), Thomas Hills. 

            “The new State Accounting Officer will streamline our accounting practices and further improve our fiscally conservative management of state resources,” said Governor Sonny Perdue. 

            The SAO will be responsible for the following duties:

• Prescribe statewide accounting policies, procedures, and practices in coordination with the Office of Planning and Budget (OPB) and the State Auditor
• Prescribe, develop, operate, and maintain a uniform state accounting system for all state agencies in accordance with generally accepted accounting principles of governmental accounting
• Prescribe the uniform classification of accounts to be used by all state agencies
• Prescribe and supervise the installation of any changes in the state accounting information system necessary to secure and maintain internal control and facilitate the recording of accounting data for the purpose of preparing reliable, timely, and meaningful statements and reports
• Manage the state accounting and payroll systems
• Maximize intra-agency opportunities for electronic payments and ACH transfers
• Develop the state’s financial statements for consolidation in the state’s Comprehensive Annual Financial Report (CAFR)
• Develop interim reports on the financial condition of the state and various state agencies
• Assist with the development of bond issuance documents as required
• Assist the CFO and Director of OPB as requested

Vellinga, 53, has 20 years of experience in the Division of Finance for the State of Utah, most recently serving as Assistant Director where he was responsible for establishing and controlling the agency budget as well as systems development oversight and contract negotiation.  He is a Certified Public Accountant (CPA).  Vellinga earned a bachelor’s degree in accounting from Weber State University in Ogden, Utah.  He and his wife, Sandy, have seven children.

“Utah is regarded as one of the best financially managed states, and I expect Lynn Vellinga to bring this experience to Georgia,” said Governor Perdue.

 

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Executive Order

 

WHEREAS:  There is no constitutional or statutory provision in Georgia law assigning a position or organizational unit with responsibility for independent development and management of the state’s accounting policies, procedures, and controls, annual statewide financial reporting, or statewide financial system responsibilities; and

 

WHEREAS:  Historically the Department of Audits and Accounts (DOAA) has partially performed this function by consolidating state agency financial information and prepared adjusting journal entries necessary for the production of the State’s Comprehensive Annual Financial Report (CAFR); and

 

WHEREAS:  The DOAA has subsequently audited the consolidated financial statements necessary for the federally mandated Single Audit Report; and

 

WHEREAS:  Standards for the independence of government auditors have been revised, and there is acknowledged a need for the audit function of DOAA to be independent from the preparation of the financial statements to be audited; and

 

WHEREAS:  The State Comptroller General only has responsibility for the counter-signing of warrants issued by the Office of Planning and Budget (OPB) and disbursed by the Treasurer; and

 

WHEREAS:  The Georgia Technology Authority (GTA) manages a centralized statewide financial accounting system and several other financial software systems, and is responsible for the production of accounts payable checks and payroll checks; and

 

WHEREAS:  Under this decentralized system, the State produces no statewide monthly or quarterly financial reports; and

 

WHEREAS:  I have determined that there should be an organizational re-alignment of the State’s financial reporting and statewide financial system responsibilities under a single State Senior Accounting Officer. 

 

NOW, THEREFORE, PURSUANT TO THE AUTHORITY VESTED IN ME AS GOVERNOR OF THE STATE OF GEORGIA, IT IS HEREBY

 

ORDERED:  There is created within the Executive Branch of state government the position of State Accounting Officer (SAO) to assume responsibility for statewide accounting, reporting to the Governor’s Chief Financial Officer.

 

ORDERED:  That the SAO will perform the following duties:

 

1.         Prescribe statewide accounting policies, procedures, and practices in coordination with the Office of Planning and Budget and the State Auditor.

2.         Prescribe, develop, operate, and maintain a uniform state accounting system for all state agencies in accordance with generally accepted accounting principals of governmental accounting.

3.         Prescribe the uniform classification of accounts to be used by all State agencies.

4.         Prescribe and supervise the installation of any changes in the state accounting information system necessary to secure and maintain internal control and facilitate the recording of accounting data for the purpose of preparing reliable, timely, and meaningful statements and reports.

5.         Manage the state accounting and payroll systems.

6.         Maximize intra-agency opportunities for electronic payments and ACH transfers.

7.         Develop the state’s financial statements for consolidation in the state’s Comprehensive Annual Financial Report (CAFR).

8.         Develop interim reports on the financial condition of the state and various state agencies.

9.         Assist with the development of bond issuance documents as required.

10.       Assist the Chief Financial Officer and Director of the Office of Planning and Budget as requested.

 

ORDERED:  The current positions within DOAA with responsibility for financial management and reporting and the production of consolidated financial statements will work under the supervision of the SAO.

 

ORDERED:  The current positions within GTA’s Financial Systems’ Business Solutions division necessary for financial reporting will work under the supervision of the SAO. 

 

ORDERED:  The current positions within OPB necessary for the establishment of the new statewide accounting management function will work under the supervision of the SAO. 

 

ORDERED:  To the extent necessary to effectuate the transfer of duties and purposes under this order, OPB is directed, under O.C.G.A. § 45-12-90, to determine and transfer an appropriate portion of current appropriations to the appropriate budget unit or to otherwise make such funds available to the SAO.

 

THIS 6^th DAY OF OCTOBER, 2004.

 

(Signed: Sonny Perdue)______

GOVERNOR