Audit report, Agricultural Commodity Commission for Eggs, year ended June 30, 1999

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AUDIT REPORT AGRICULTURAL COMMODITY COMMISSION
FOR EGGS YEAR ENDED JUNE 30, 1999
\,,~-----------------_.. . , ;
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

AGRICULTURAL COMMODITY COMMISSION FOR EGGS - TABLE OF CONTENTS -

INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED STATEMENT OF ASSETS, LIABILITIES AND FUND EQUITY

ARISING FROM CASH TRANSACTIONS

ALL FUND TYPES AND ACCOUNT GROUP

3

B STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

GENERAL FUND

4

C STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

COMPARED TO BUDGET - GENERAL FUND

7

D NOTES TO THE FINANCIAL STATEMENTS

8

SUPPLEMENTARY INFORMATION

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

18

2 CASH AND CASH EQUNALENTS

19

3 INVESTMENTS

20

4 SCHEDULE OF PROMOTION EXPENSES

21

5 SCHEDULE OF CONTRACTS

25

6 RECONCILIATION OF SALARIES

26

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
January 28,2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly of Georgia Honorable Thomas T.lrvin Commissioner of Agriculture
and Members ofthe Agricultural Commodity Commission for Eggs
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements (Exhibits A through D) of the Agricultural Commodity Commission for Eggs as of and for the year ended June 30, 1999. These financial statements are the responsibility of the Commission's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, these financial statements were prepared on the basis of cash receipts and disbursements, which is a comprehensive basis of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Agricultural Commodity Commission for Eggs as of June 30, 1999, and the results of its operations for the year then ended, on the basis of accounting described in Note 1.
The year 2000 supplementary infonnation on Schedule "1" is not a required part of the basic financial statements but is supplementary infonnation required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding
99ARL-1C

the methods ofmeasurement and presentation ofthe supplementary information. Howevert we did not audit the information and do not express an opinion on it. In additiont we do not provide assurance that the Agricultural Commodity Commission for Eggs is or will become year 2000 compliantt that the Commission's year 2000 remediation efforts will be successful in whole or in partt or that parties with which the Agricultural Commodity Commission for Eggs does business are or will become year 2000 compliant.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Schedules 2 through 6) is presented for purposes of additional analysis and is not a required part ofthe financial statements ofthe Agricultural Commodity Commission for Eggs. Such information has been subjected to the auditing procedures applied in the audit of the financial statements andt in our opiniont such information is fairly presented in all material respects in relation to the financial statements taken as a whole.
Respectfully submittedt
~4.fJl iJ4J.~ Russell W. Hinton State Auditor
RWH:jb 99ARL-IC

FINANCIAL STATEMENTS - 1-

AGRICULTURAL COMMODITY COMMISSION FOR EGGS COMBINED STATEMENT OF ASSETS. LIABILITIES AND FUND EQUITY
ARISING FROM CASH TRANSACTIONS ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30.1999

EXHIBIT "A"

Total Assets

$

60,959.25 $

16,634.83 $

77,594.08 $

105,089.15

LIABILITIES AND FUND EQUITY
Liabilities Compensated Absences
Fund Equity Fund Balance Unreserved Undesignated

$ _ _--::6:;0:::.l..::,:95:.:::9,::.2:=,.5

16,634.83 $

16,634.83 $

14.275.22

60.959.25

90,813.93

Total Liabilities and Fund Equity

$

60,959.25 $

16,634.83 $

77,594.08 $ 105.089.15

The notes to the financial statements are an integral part of this statement.
-3-

AGRICULTURAL COMMODITY COMMISSION FOR EGGS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
GENERAL FUND YEAR ENDED JUNE 30, 1999

EXHIBIT"B"

CASH RECEIPTS
REVENUES
OTHER REVENUES RETAINED Assessments Donations Interest Received Sales Equipment Promotional Items Public Service Announcements Radio Series
Total Cash Receipts
CASH AND CASH EQUIVALENTS/INVESTMENTS - JULY 1

TOTALS

YEAR ENDED

JUNE 30, 1999

JUNE 30, 1998

$

427,628.33 $

0.00

3.449.04

0.00 41,373,39
598.00 4,081.40

$

477,130.16 $

90,813.93

472,980.58 2,916.95 0.00
370.00 29,287.48
3,627,00 5,491.12
514,673.13
74,055.94

$

567,944.09 $

588,729.07

DISBURSEMENTS
EXPENDITURES
COST OF OPERATIONS Personal Services Salaries and Wages Employer's Contributions for: F.I.CA. Retirement Health Insurance Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
Regular Operating Expenses Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Bank Charges Freight Promotion Expenses (See Schedule) Registration Fees Sales and Use Tax Subscriptions and Dues Publications and Printing Equipment Purchases
The notes to the financial statements are an integral part of this statement. -4-

$'

127,934.91 $

9,841.86 19,064.15 21,534.27
1,652.00 76.00
348.20

$

180,451.39 $

$

11,919.28 $

13,228.75

5,087,87

4,631,51

2,633.10

1,319.31

457.45 3,215.06 156,995.90 2,225.00
298.71 1,215,30 26,985,94
0.00

$

230,213.18 $

140,193.69
10,913.11 21,436.12 25,122.12
1,676,00 36,00
345.80
199,722,84
9,681.55 10,284,72
5(907.46 4,476.24
0,00 1,369.27
383.79 3,008.94 134,028,38 1,687,50
450.09 1,044.48 21,216.64
424.99
193,964.05

AGRICULTURAL COMMODITY COMMISSION FOR EGGS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
GENERAL FUND YEAR ENDED JUNE 30, 1999

EXHIBIT"B"

DISBURSEMENTS EXPENDITURES
COST OF OPERATIONS Travel Equipment Equipment Purchases Rental of EqUipment
Computer Charges Software
Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Per Diem and Fees Contracts (See Schedule)
Total Disbursements CASH AND CASH EQUIVALENTSIINVESTMENTS - JUNE 30

TOTALS

YEAR ENDED

JUNE 30,1999

JUNE 30,1998

$

4,551.60 $

$

0.00 $

0.00

$

0.00 $

$

679.39 $

$

6,080.00 $

$

4,958.47 $

$

2,430.79 $

77,620.02

$

80,050.81 $

$

506,984,84 $

60,959.25

5.405.18
1,982.20 903.90
2,886.10
4,802.62 7,896.00 4,909.11
6,229.20 72,100.04 78,329.24 497,915.14 90,813.93

$

567,944.09 $

588,729,07

The notes to the financial statements are an integral part of this statement. -5-

AGRICULTURAL COMMODITY COMMISSION FOR EGGS STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
COMPARED TO BUDGET - GENERAL FUND YEAR ENDED JUNE 30,1999

EXHIBIT"C"

$ 564,410.00 $ 567,944.09 $ ==..;;3;,,5~3;;;,;4.=09=

DISBURSEMENTS EXPENDITURES
Cost of Operations CASH AND CASH EQUIVALENTSIINVESTMENTS - JUNE 30

$515,273.00 $ 506,984.84 $

49,137.00

60,959.25

-8,288.16 11,822.25

$ 564,410.00 $ 567,944.09 $ ===3,:=53==:4=.0==9

The notes to the financial statements are an integral part of this statement. -7-

AGRICULTURAL COMMODITY COMMISSION FOR EGGS
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1999

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The "Georgia Agricultural Commodities Promotion Act" (Ga. L. 1961, p. 301), as amended, was enacted to
implement Article vn, Section Ill, Paragraph IT(b) of the Constitution of Georgia which provides for the
promotion ofthe production, marketing, sale, use and utilization, processing and improvement of agricultural products of the State. Pursuant to this Act, the Agricultural Commodity Commission for Eggs was established July 1, 1961, and was ratified and confirmed as a public corporation and instrumentality of the State of Georgia.
Membership of the Commission, as set forth in the Official Code of Georgia Annotated Section 2-8-14, consists of four (4) ex-officio members as specified and five (5) additional members who are producers of the affected agricultural commodity. The Commission is authorized to accept donations, gifts and other property and to use the same for commission purposes. Revenue ofthe Agricultural Commodity Commission for Eggs is derived primarily from an assessment per case on Georgia-produced eggs. The Commission is also empowered to appoint advisory boards, special committees and individuals, including technical and clerical personnel, to advise, aid and assist the Commission in the performance of its duties and to fix the compensation for such services.
The Commissioner ofAgriculture is authorized to exercise supervisory jurisdiction over the administration ofthe "Georgia Agricultural Commodities Promotion Act" and it is his duty to receive, collect and disburse the funds of each commission upon written authorization ofthe affected commission. Funds received for the Agricultural Commodity Commissions, under provisions of the "Georgia Agricultural Commodities Promotion Act", as amended, are held for the affected commission and are not required to be deposited in the State Treasury and appropriated therefrom as other State funds.
The Agricultural Commodity Commission for Eggs is not included in any other governmental reporting entity because the Commission has decision making authority, the power to designate management, the ability to significantly influence operations and is primarily responsible for its fiscal matters.
FUND ACCOUNTING The Agricultural Commodity Commission for Eggs uses a fund and an account group to report on its financial position and the results of its operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts.. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The fund and account group presented in the accompanying financial statements are as follows: .

-8-

AGRICULTURAL COMMODITY COMMISSION FOR EGGS
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

EXHIBIT "D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
GOVERNMENTAL FUND TYPE
GENERAL FUND - The fund used to account for all activities except those required to be accounted for in some other fund.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE GENERAL FUND
The Agricultural Commodity Commission for Eggs maintains its General Fund on the Cash Receipts and Disbursements basis of accounting as prescribed or permitted by statutes and regulations of the State of Georgia. This basis of accounting is defined as that method of accounting in which certain revenue and the related assets are recognized when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred. The General Fund, in accordance with generally accepted accounting principles, should be maintained on the modified accrual basis of accounting.
BUDGET A budget for the financial operations of the Agricultural Commodity Commission for Eggs is approved by the Commission at a selected meeting. The budget is not subject to review or approval by the Legislature of the State of Georgia and therefore, is a nonappropriated budget. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure ofthe aggregate budget.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of a demand deposit with a banle
INVESTMENTS Investments are defined as those financial instruments with terms in excess of three months from the date of purchase and certain other securities held for the production ofrevenue. Investments are stated at cost which approximates fair value.
INVENTORIES No inventories of supplies are reported in these financial statements. Expendable supplies are recorded as expenditures at the time ofpurchase.

-9-

AGRICULTURAL COMMODITY COMMISSION FOR EGGS
NOTESTOTHEFWANC~STATEMENTS
JUNE 30, 1999

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNIWG POLICIES
COMPENSATED ABSENCES Compensated absences represent obligations of the Commission relating to employee's rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating annual and compensatory leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount will not be liquidated with expendable available financial resources.
The liability for compensated absences at year end is reported in the General Long-Term Debt Account Group for governmental funds.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Statement of Assets, Liabilities and Fund Equity Arising from Cash Transactions are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding of the changes in the Commission's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding ofthe Commission's financial position and operations or would cause the statements to be unduly complex and difficult to understand.
NOTE 2: CUSTOD~ CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds ofthe State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.

- 10-

AGRICULTURAL COMMODITY COMMISSION FOR EGGS NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

EXHIBIT "D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (4) fudustrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.

(5) Bonds, bills, certificates ofindebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal futermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

(6) Guarantee or insurance of accounts provided by the Federal Deposit fusurance Corporation.

As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State ofGeorgia the option of exempting demand deposits from the collateral n:~quirements.

CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 1999, ate categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk.

Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Commission or by its agent in the Commission's name.

Category 2 - Amounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the Commission's name.

Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution or by its trust department or agent, but not in the Commission's name, and amounts uncollateralized.

Cash Deposits

Carrying Amount

Bank Balances

$ 60,959.25 $ 72,953.22 $

Risk Categories

2

3

72,953.22 $

0.00 $=====0=:.0..0.

NOTE 3: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30,1999, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

-11 -

AGRICULTURAL COMMODITY COMMISSION FOR EGGS
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1999

EXHIBIT"D"

NOTE 3: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT

Balance July 1, 1998
Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits
Balance June 30, 1999
NOTE 4: RISK MANAGEMENT

$ 14,275.22
2,191.93 167.68
$ 16,634.83

The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia ofmaking and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Agricultural Commodity Commission for Eggs is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment.

NOTE 5: RETIREMENIPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Plan Description The Agricultural Commodity Commission for Eggs participates in the Employees' Retirement System of Georgia ("ERS"), a single-employer, defined benefit plan established by the General Assembly of Georgia for the purpose ofproviding retirement allowances for employees of the State of Georgia.

The benefit structure of ERS is defined by State statute and was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.

Under both the old plan and new plan, members become vested after 10 years of creditable service. A member may retire and receive nonnal retirement benefits after completion of 10 years of creditable service and attainment of age 65. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 25 years of service regardless of age.

- 12-

AGRICULTURAL COMMODITY COMMISSION FOR EGGS
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1999

EXHIBIT "D"

NOTE 5: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Plan Description Retirement benefits paid to members are based upon a formula which considers the monthly average ofthe member's highest twenty-four consecutive calendar months of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.

The ERS issues a fmancial report each fiscal year which may be obtained through ERS.

Funding Policy As established by State statute, all full-time employees ofthe State of Georgia and its politjcal subdivisions, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The Commission's payroll for the year ended June 30, 1999, for employees covered by ERS was $119,675.16. The Commission's total payroll for all employees was $127,934.91.

Under the old plan, member contributions consist of 4% ofannual compensation up to $4,200.00 and 6% of annu~l compensation in excess of $4,200.00. Of these member contributions, the employee pays the first 1.25% and the employer pays the remainder on behalf of the employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Commission also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1999, the ERS employer contribution rate for the Commission amounted to 15.36% of covered payroll and included the amounts contributed on behalf of the employee under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees.

Total contributions to the plan made during fiscal year 1999 amounted to $20,177.28, ofwhich $18,382.15 was made by the Commission and $1,795.13 was made by employees. These contributions met the requirements of the plan. There is no net pension obligation for the plan.. Employer contributions (annual pension cost) for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Annual Pension Cost

Percentage Contributed

Net Pension Obligation

1999 1998 1997

$ 18;382.15

100%

N/A

$ 21,096.37

100%

N/A

$ 22,352.74

100%

N/A

-13 -

AGRICULTURAL COMMODITY COMMISSION FOR EGGS NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1999

EXHIBIT"D"

. NOTE 5: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Actuarial and Trend Information Actuarial and historical trend infonnation is presented in the ERS June 30, 1999, financial report which may be obtained through ERS.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description The Agricultural Commodity Commission for Eggs is eligible to participate in the Georgia Defined Contribution Plan ("GDCP") which is a single-employer defined contribution plan established by the Georgia General Assembly for the purpose ofprovicling retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered . by the Employees' Retirement System Board of Trustees. The Commission did not have any employees eligible to participate in the GDCP for the year ended June 30, 1999.
NOTE 6: LEAVEPOUCrnS
Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment. .
Employees earn annua1leave ranging from ten to fourteen hours each month depending upon the employees' length of continuous State service with a maximum accumulation of forty five days. Employees are paid for unused accumulated annual leave upon retirement or termination ofemployment. See Note 1 - Compensated Absences.
Certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 7: CONTINUED EXISTENCE OF THE COMMISSION
Relative to those commissions established under fonner law ("Georgia Agricultural Commodities Promotion Act", Georgia Laws 1961, as amended), the Official Code of Georgia Annotated Section 2-8-13 provides that prior to April 30, 1971, and each three years thereafter, balloting shall be conducted in accordance with the Official Code of Georgia Annotated Section 2-8-23 to determine whether any existing commission shall continue to exist and operate under this chapter.
The Agricultural Commodity Commission for Eggs held a referendum from February 23, 1998, to March 1, 1998. Ballots were mailed to 57 eligible voters, and of the 39 ballots returned, two (2) were invalid. The results of the valid ballots were as follows:
-14 -

AGRICULTURAL COMMODITY COMMISSION FOR EGGS
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1999

EXHIBIT"D"

NOTE 7: CONTINUED EXISTENCE OF THE COMMISSION
In Favor of Continuation of Marketing Order
No, 2 for Eggs Against Continuation ofMarketing Order
No.2 for Eggs

Ballots 34
37

Percent 91.89 8.11 100.00

- 15-

SUPPLEMENTARY INFORMATION
-17 - .

AGRICULTURAL COMMODITY COMMISSION FOR EGGS SCHEDULE "1" SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION
YEAR 2000 DISCLOSURES
YEAR ENDED JUNE 30. 1999
The Agricultural Commodity Commission for Eggsi administrative and accounting functions are handled by the Department ofAgriculture (DOA). DOA has identified a computer system (Visual Account Mate) and various workstations (pC's) that are critical to operations of the Commission which are affected by the year 2000 issue. The year 2000 issue is the result of shortcomings in many electronic data processing systems and other equipment that make operations beyond 1999 troublesome. The following stages have been identified by Governmental Accounting Standards Board Technical Bulletin No. 98-1, as amended by Technical Bulletin No. 99-1, as necessary to implement a year 2000 compliant systems.
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 Issue.
Assessment Stage - The actual process of identifying all systems and individual components ofsystems to check for compliance.
Remediation Stage - When changes are made to systems and equipment.
Validation/Testing Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.
It will be necessary for DOA to progress through all four ofthese stages for the identified systems, not already year 2000 compliant, in order to assure that the systems will not be adversely affected.
The Validation/Testing Stage has been completed for the computer systems identified as critical by DOA and the Commission had no outstanding contractual commitments for the year 2000 issue at June 30, 1999.

See notes to the financial statements.

- 18-

AGRICULTURAL COMMODITY COMMISSION FOR EGGS CASH AND CASH EQUIVALENTS JUNE 30,1999
INTEREST BEARING ACCOUNT NationsBank of Georgia, N.A., Atlanta. Georgia

SCHEDULE "2"

$

10,959.25

See notes to the financial statements.

19 -

AGRICULTURAL COMMODITY COMMISSION FOR EGGS INVESTMENTS JUNE 30.1999

SCHEDULE "3"

INVESTMENT TYPE
Certificates of Deposit Bank of Lumber City, Lumber City, Georgia No. 102903
Bank of Monticello, Monticello, Georgia
No. 20825
Community Bank and Trust, Commerce, Georgia
No. 11329
Lanier National Bank, Gainesville, Georgia
No. 8557
The Citizens Bank of Forsyth County, Cumming, Georgia
No. 948

PURCHASE DATE MATURITY DATE

AMOUNT

May 16,1999

November 16, 1999 $ 10,000.00

June 10, 1999

December 10, 1999

10,000.00

April 21, 1999

October 18, 1999

10,000.00

May26,1999

November 24, 1999

10,000.00

May 13,1999

November 9,1999

10,000.00

$ 50,000.00

See notes to the financial statements.

- 20-

AGRICULTURAL COMMODITY COMMISSION FOR EGGS SCHEDULE OF PROMOTION EXPENSES
YEAR ENDED JUNE 30,1999

Abbott, Rose Egg Recipe Contest Winner

American Egg Board Promotional Items

April E. Chapple Imports Promotional Items

Art Smart Promotional Items

Atlanta Urban Radio Alliance Radio Advertising

Atlanta Web Printers, Incorporated Promotional Items

Brooks, Rebecca Egg Recipe Contest Winner

Business Innovations Promotional Items

Chick-Fil-A Promotional Items

Epsilon Sigma Phi Promotional Items

Evans, Caro Egg Recipe Contest Winner

Fort Valley State University, C: W. Pettigrew Center Organizational Support

Georgia Agricultural Expo Egg Recipe Contest

Georgia Agriculture in the Classroom Foundation Organizational Support

Georgia Association of Extension Family and Consumer Science Organizational Support

Georgia Business Section of the AAFCS Sponsorship Program

Georgia Coalition for Nutrition Education Organizational Support

See notes to the financial statements.

- 21 -

SCHEDULE "4"

$

200.00

20,914.74

553.60

475.00

7,021.00

120.00

500.00

8,539.46

655.82

200.00

1,000.00

150.00

550.00

500.00

100.00

200.00

500.00

AGRICULTURAL COMMODITY COMMISSION FOR EGGS SCHEDULE OF PROMOTION EXPENSES YEAR ENDED JUNE 30, 1999

Georgia Dietetic Association, Incorporated Exhibit Space

Georgia Egg Association Promotional Items

Georgia Environmental Health Association, Incorporated Promotional Breakfast

Georgia Farm Bureau Federation Promotional Advertising

Georgia Farm Family Health and Safety Sponsorship

Georgia Homemakers Council Organizational Support

Georgia National Fairgrounds Cooking Contest Sponsorship

Georgia Newspaper Service Promotional Advertising

Georgia Poultry Federation Sponsorship of a Banquet

Georgia Press Association Organizational Support

Georgia School Food Service Association Exhibit Space

Georgia Vocational Association Exhibit Space

Georgia Voyager Magazine Promotional Advertising

Great American Specialty Advertising Company Promotional Items

Hillandale Farms Eggs for Promotion

Hilliard Farm Eggs Promotional Items

Howell Fund Custodian Promotional Supplies

See notes to the financial statements,

- 22-

SCHEDULE "4"

$

450,00

3,678.45

150.00

6,500.00

100,00

200,00

436.00

82.00

300,00

700,00

750,00

310,00

750,00

2,171,56

150,00

151,20

7,933.48

AGRICULTURAL COMMODITY COMMISSION FOR EGGS SCHEDULE OF PROMOTION EXPENSES YEAR ENDED JUNE 30. 1999

Howell, Robert Promotional Supplies
Jacor Broadcasting of Atlanta Promotional Advertising
Jekyll Island State Park Authority Farm Bureau Contest
Master Video Productions Promotional Items
Myron Manufacturing Corporation Promotional Items
National 4-H Poultry and Egg Foundation Conference Sponsorship
Project 70 Audio Services, Incorporated Radio Advertising
Rawson Company Promotional Items
Reeves Studios Promotional Items
Richmond County Health Department Exhibit Space
Southeastern Electrification Council Sponsorship
Specialty Engraving and Trophies, Incorporated Promotional Items
Sunbelt Agricultural Exposition, Incorporated Exhibit Space
Tri-State Communications Promotional Advertising
United Egg Marketers Promotional Items
University of Georgia Promotional Breakfast
University of Georgia Foundation Sponsorship
See notes to the financial statements.

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SCHEDULE "4"

$

63.33

39,650.00

311.44

90.00

921.37

100.00

15,122.34

840.00

686.88

350.00

250.00

35.31

615.00

300.00

324.00

36.92

100.00

AGRICULTURAL COMMODITY COMMISSION FOR EGGS SCHEDULE OF PROMOTION EXPENSES YEAR ENDED JUNE 30,1999
WDEN Radio Radio Advertising
WGIAAM 1350 Radio Advertising
WKLS Radio Radio Advertising
WPTBAM 850 Radio Advertising
WSB Radio Radio Advertising

SCHEDULE "4ft
$ 5,120.00 300.00
4,335.00 250.00
20,202.00 $ 156,995.90

See notes to the financial statements.

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AGRICULTURAL COMMODITY COMMISSION FOR EGGS SCHEDULE OF CONTRACTS
YEAR ENDED JUNE 30, 1999
Georgia 4-H Foundation
Georgia Egg Association Research, Promotion and Education
Southern United Egg Producers Statistical Information of Factors Influencing Egg Market
United Egg Producers Promote Egg Industry

SCHEDULE "5"

$

250,00

8,000.00

35,070.00

34,300.02

$ 77,620.02

See notes to the financial statements.

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AGRICULTURAL COMMODITY COMMISSION FOR EGGS RECONCILIATION OF SALARIES YEAR ENDED JUNE 30.1999

Total per Annual Supplement

Adjustments Howell, Mallon,

Robert Kristina L.

Total per Report

SCHEDULE "6"
$ 128,455.09 -718.18 198.00
$ 127,934.91

See notes to the financial statements.

- 26-