Review report, state of Georgia, Georgia State Games Commission, year ended June 30, 1995

C,A A"WO .RI G33 l'l94-9'::>
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA GEORGIA STATE GAMES COMMISSION YEAR ENDED JUNE 30, 1995

GEORGIA STATE GAMES COMMISSION TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUP

2

B STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

GOVERNMENTAL FUND TYPE

3

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

4

D STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

6

E NOTES TO THE FINANCIAL STATEMENTS

7

SUPPLEMENTARY INFORMATION

SCHEDULES

I SCHEDULE OF APPROVED BUDGET

18

2 CASH AND CASH EQUNALENTS

19

3 SCHEDULE OF SALARIES AND TRAVEL

20

CIAUDE L. VICKERS
STATE AUDITOR (404) 65&-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
December 15, 1995

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Georgia State Games Commission
and Honorable Nicholas J. Gailey, Executive Director
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through E) ofthe Georgia State Games Commission as of and for the year ended June 30, 1995, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of the Georgia State Games Commission.
A review consists principally of inquiries of agency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in confonnity with the basis of accounting described in Note 1.
Our review was made for the purpose of expressing limited assurance that there were no material modifications that should be made to the financial statements in order for them to be in confonnity with the basis of accounting described in Note 1. The accompanying supplementary information (Schedules 1 through 3) is

95ARL-4

presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,
~
Claude L. Vickers State Auditor
CLV:dt 9SARL-4

FINANCIAL STATEMENTS - 1-

ASSETS Cash and Cash Equivalents
(See Schedule) Accounts Receivable
Other Amount to be Provided for Payment of
Accrued Compensated Absences
Total Assets
blABILITIES AND FUND EQUITY Liabilities
Accounts Payable Compensated Absences
Total Liabilities Fund Equity
Fund Balances Reserved Unobligated Contract Balance Sponsorship and Participant Fees Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

EXHIBIT"A"

GOVERNMENTAi. FUND TYPE BUDGET

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS <Memorandum On~ JUNE 30 1995 JUNE30 1994

49,948.03 2,000.00

10469.39

49,948.03 $ 2,000.00
10469.39

29,993.58 0.00
10164.21

51948.03

10469.39 $

62417.42 $

40157.79

163.20 163.20
0.00 51,784.83
0.00 51 784.83
51948.03

$ 10469.39
10469.39 $

163.20 $ 10469.39
10632.59 $

1,814.20 10164.21
11978.41

10469.39 $

0.00 $ 51,784.83
0.00
51 784.83 $

70.00 28,109.38
0.00
28179.38

82417.42 $

40157.79

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
-2-

GEORGIA STATE GAMES COMMISSION
STATEMENT OF CHANGES IN FLJNP BAI ANCFS CSTATUWRY BASIS)
GOVERNMENTAL FUND TVPE
YEAR ENPFP JUNE 30 1995

EXHIBIT"B"

FUND BALANCES - JULY 1 Reserved Unreserved Undesignated
~ Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures Exhiblt"C"
DEDUCTIONS Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCES - JUNE 30 (To Exhibit "Ai

BUDGET FUND

YEAR ENDED

JUNE30 1995

JUNE 30 1994

28,179.38 $ 0.00
28179.38 $

34,803.98 0.00
34803.98

1,<483.00 $ 50301.83 51784.83 $

0.00 28179.38 28179.38

28179.38 $ _ __,34=803=.98=

51,784.83 $ _ _2_8._,1.7.9..3..8..

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
-3-

FUNQS AVAU ABLE
~ OTHER REVENUES RETAINED Conlrac:t o-gia ~dNaluraJ R........ S..d~ Sport Participont Entry F -
TolalR-
CARBY-QYER FRAM PBPB YEAR T..-fram R - Fund Balance UIIObliglud Conlrac:t llolonco ~ - Participont F-
Total Cony-Owrfram Prior Y-
Total Funds AvaHat.

EXHIBIT"C" TOTALS YEAH ENDED
JUNE JO 1995 JONE JO 1884

$

187,258.00 $

130,725.00

53,750.48

57,288.62

194,341.00

188,450.00

121888.n

116871.30

$

557039.20 $

4113334.92

70.00 $ 28108.38

20.00 34 783.98

$

28179.38 $

34 803.98

$

585218.58 $

528138.90

See Independent A<countanl's Combined Report on Review d Financial Statements and Supplementary lnlormation. The notes to the financ:ial ttatements are an integral part of this statement.
4.

EXPENDITURES PERSONAL SERVICES
Salaries and Wages Employer's Contributions for.
F.I.C.A. Retirement Hlth lnsuranc::e
PeroonaJ Liability Insurance
w - Unempk,yment Compensation Insurance Componutlon Insurance
REGULAR OPERATING EXPENSES Motor Vehicle Expenses Supplies and Materiaio Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses Event Cost Parking Duplicating and Rapid ~
Publications and Printing
COMPUTER CHARGES
Software Computer Billings, DOAS
TELECOMMUNICATIONS PER PIEM FEES AND CONTRACTS
Per Diem and Fees Contracts
Total Expenditures Excess of Funds Available over Expenditures

EXHIBIT"C-

JUN

56,053.50$

50,994.00

4,124.19 8,766.74
7,006.78
483.00 8.00
109.00

3,730.28 8,138.64 6,374.16
120.00 9.00
88.00

$

76551.21 $

69454.08

4,051.59$ 27,716.13
0.00 98.54 16,516.49 31,936.30
89,067.50 1,441.80 233.55 13190.78
184252.68 $
1 691.97 $

2,205.24 25,387.54
1,494.28 0.00
11,135.99 19,376.00
120,198.67 1,467.41 1,814.20 13594.03
196 673.36
1 394.55

146.95 $ 305.70 452.65 $
7 589.14 $

0.00 1 468.12 1 468.12
9834.81

239,250.10 $ 25129.00 264 379.10 $
534,916.75 $ 50 301.83

204,020.43 17114.17 221134.60
499,959.52 28179.38

585218.58 $

528138.90

Sae Independent Aooountanrs Combined Report on Review of Financial Statements
and Supplementary Information. The notes to the financial statements are an integral part of this statement.
-5-

GEORGIA STATE GAMES COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30 1995

EXHIBIT"D"

FUNDS AVAILABLE REVENUES
other Revenues Retained CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

587,259.00 $

557,039.20 $

-30,219.80

0.00

28,179.38

28,179.38

$

587,259.00 $

585,218.58 $

-2,040.42

EXPENDITURES
Personal Services Regular Operating Expenses Travel Computer Charges Telecommunications Per Diem, Fees and Contracts

$

76,316.00 $

76,551.21 $

226,543.00

184,252.68

2,000.00

1,691.97

2,000.00

452.65

8,000.00

7,589.14

272,400.00

264,379.10

-235.21 42,290.32
308.03 1,547.35
410.86 8020.90

Excess of Funds Available over Expenditures

$

587259.00 $

534,916.75 $

52,342.25

$

50301.83 $

50 301.83

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral 'part of this statement -6-

GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Georgia State Games Commission, an organizational unit of the State of Georgia, is part of the executive branch of the government of the State of Georgia. The Commission was created in 1989 by an Act of the General Assembly of Georgia for the purpose ofprotecting and improving the physical fitness of the residents ofthe State. The Commission consists offifteen (15) members; thirteen (13) appointed by the Governor, one (1) by the President of the Senate and one (1) by the Speaker of the House of Representatives. The Commission is assigned to the Department ofNatural Resources for administrative purposes. The Georgia State Games Commission is included within the State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING The Georgia State Games Commission uses a fund and an account group to report on its financial position and the results of its operations detennined in confonnity with accounting practices prescribed or pennitted by statutes and regulations of the 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:
GOVERNMENTAL FUND TYPE
BUDGET FUND - The fund used to account for activities and functions of the Georgia State Games Commission. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is 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 ofcertain governmental long-term liabilities, such as claims, judgments and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. Governmental funds should be accounted for using the flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure of available spendable resources.
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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXlilBIT "E"

NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGETFUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities ofthe current period. Revenues that are accrued include primarily certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgements which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording ofencumbrances as a reservation offund balance.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances ofthe Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.
BUDGET A budget for the financial operations ofthe Georgia State Games Commission 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 include currency on hand and funds on deposit with the Department ofNatural Resources.
INVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase.

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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a briefdescription ofthe reserve reflected in the accompanying financial statements:
SPONSORSHIP AND PARTICIPANT FEES The residual portion of monies collected from sponsors and participant entry fees not yet expended or encumbered. This amount is restricted for expenditure for the "Georgia State Games" in future years.
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 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 Balance Sheet (Statutory Basis) 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 of this 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 of the Commission's financial position and operations or would cause the statements to be unduly complex and difficult to understand.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds of the 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 any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:

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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "E"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (I) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations ofthe United States or of the State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities ofthe 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 ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate 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 ofaccounts provided by the Federal Deposit Insurance 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 of Georgia the option of exempting demand deposits from the collateral requirements.
CATEGORIZATION OF DEPOSITS The deposits ofthe Georgia State Games Commission are disclosed by custodial credit risk categories in the review report ofthe Department ofNatural Resources, to whom the Commission is assigned for administrative purposes.
NOTE 3: GENERAL LONG-TERM DEBT
CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1995, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

- IO-

GEORGIA STATE GAMES COMMISSION NOTES TO TIIE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTE 3: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT

Balance July 1, 1994

$ 10,164.21

Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits

283.50 21.68

Balance June 30, 1995

$ JO 469 39

NOTE 4: RISK MANAGEMENT

Public Entity Risk Pool

The State Personnel Board, Merit System of Personnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia and units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board, Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.

Other Risk Management

The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making 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 intemally and set aside assets for claim settlement. Accordingly, DOAS services 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 is purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Commission is part ofthe State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment.

NOTE 5: DEFERRED COMPENSATION PLAN

The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional.

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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "E"

NOTE 5: DEFERRED COMPENSATION PLAN
Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those ofa general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1995.
NOTE6: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The Georgia State Games Commission 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 of providing retirement allowances for employees ofthe State ofGeorgia. The Commission's payroll for the year ended June 30, 1995, for employees covered by ERS was $56,053.50. The Commission's total payroll for all employees was $56,053.50.
Benefits The benefit structure of ERS 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.
Members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters 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. 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 30 years of service regardless of age.
Contributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofannual compensation and 4.75% of annual compensation paid by the Commission on behalf of the employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee.
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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "E"

NOTE6: RETIREMENTPLANS

EMPWYEES' RETIREMENT SYSTEM OF GEORGIA

Contributions Required and Contributions Made The Commission also is required to contribute at a specified percentage ofactive member payroll determined annually by actuarial valuation. For the year ended June 30, 1995, the ERS employer contribution rate for the Commission amounted to 14.89% of covered payroll and included the 4.75% contributed on behalf of the employee referred to above. Contributions are also made on amounts paid for accumulated leave of
retiring employees.

Total contributions to the plan made during fiscal year 1995 amounted to $9,047.04, of which $8,346.37 was made by the Commission and $700.67 was made by employees. These contributions met the requirements of the plan.

Funding Status and Progress Pension Benefit Obligation
The amount shown as the "pension benefit obligation" is a standardized disclosure measure of the present value ofpension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result ofemployee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due and make comparisons among employers. The measure is the actuarial present value of credited projected benefits, and is independent ofthe funding method used to determine contributions to the plan.

The pension benefit obligation was computed as part ofan actuarial valuation performed as ofJune 30, 1994. Significant actuarial assumptions used in the valuation include the following:

1) The present value offuture pension benefits paid was computed using a discounted rate of7.5 percent. This rate is also the same rate assumed to be earned on investments in the plan in future years.

2) Future pension payments reflect the following assumed salary increases as a result ofinflation and merit increases:

~ 20 25 30 35 40to 65

Percentage 9.5% 8.5% 6.5% 6.0% 5.7%

3) ERS has the authority to grant cost-of-living adjustments by state statute. As ofJune 30, 1994, cost-ofliving adjustments have been included in the pension benefit obligation.

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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
mNE 30 1995

EXHIBIT "E"

NOTE 6: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
The total unfunded pension benefit obligation ofERS as of June 30, 1994, was $310,149,000, as follows:

Pension Benefit Obligation:

Retirees and Beneficiaries Currently Receiving Benefits and Terminated Employees Entitled to Benefits but Not Yet Receiving Benefits

$ 2,227,653,000

Current Employees

Accumulated Contributions

648,516,000

Employer-Financed Vested

1,085,190,000

Employer-Financed Nonvested

1 206 805 000

Total Pension Benefit Obligation

$5,168,164,000

Net Assets Available for Benefits

4 858 015 000

Unfunded Pension Benefit Obligation

$ 310 149 000

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1994. Net assets available for benefits were valued as ofthe same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers.

Funding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date.

Total contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The

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GEORGIA STATE GAMES COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTE6: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Funding Policy
Commission's contribution was actuarially determined and represented 0.0033% of total contributions made by all participating employers.
Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation.
Trend Information IEstorical trend information is presented in the financial report ofERS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description The Georgia State Games Commission 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 in July 1993 for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members ofa 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 GDCP for the year ended June 30, 1995.
NOTE 7: LEAVE POLICIES
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 annual leave ranging from ten to fourteen hours each month depending upon the employees' length ofcontinuous State service with a maximum accumulation of forty five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. 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.

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GEORGIA STATE GAMES COMMISSION NOTES TO TIIE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTE 8: CONTINGENCIES
Litigation, claims and assessments filed against the Georgia State Games Commission, if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self-insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1995.
NOTE 9: BONDING INFORMATION
The accounting records and other related data are maintained by employees of the Department ofNatural Resources. These employees and the Executive Director ofthe Georgia State Games Commission are bonded under a Public Employees Blanket Bond written by Employers Insurance ofWausau, their Bond No. 1450-00110723, on which the premium was paid to October 1, 1995. Under this agreement the Public Employee Dishonesty Coverage insures the Commission and the Department to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance of Duty Coverage insures the Commission and the Department to a maximum of$1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment.
All employees of the Georgia State Games Commission and the Department ofNatural Resources are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 012292 6 and 626 012294 4, on which premiums were paid to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the Commission and the Department to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

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SUPPLEMENTARY INFORMATION - 17 -

GEORGIA STATE GAMES COMMISSION SCHEDULE OF APPROVED BUDGET YEAR ENDED JUNE 30 1995

SCHEDULE "1"

FUNDS AVAILABLE REVENUES
Other Revenues Retained

ORIGINAL BUDGET

BUDGET ADJUSTMENTS

TOTAL APPROVED
BUDGET

$

560,259.00 $

21,000.00 $-====s=a1=,2_s_9_.o.o..

EXPENDITURES
Personal Services Regular Operating Expenses Travel Computer Charges Telecommunications Per Diem, Fees and Contracts

$

76,316.00

$

76,316.00

254,543.00 $

-28,000.00

226,543.00

2,000.00

2,000.00

2,000.00

2,000.00

8,000.00

8,000.00

217,400.00

55,000.00

272,400.00

$

560,259.00 $

21,000.00 $-==~=sa=1=,2=s..,9..o..o..

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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GEORGIA STATE GAMES COMMISSION CASH AND CASH EQUIVALENTS JUNE 30 1995
NONINTEREST BEARING ACCOUNTS
Funds on Deposit with the Department of Natural Resources OTHER
Petty Cash

SCHEDULE"2"

$

49,248.03

700.00

$==4=9=94==8=.0;;;,3

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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GEORGIA STATE GAMES COMMISSION
SCHEDULE OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30 1995

SCHEDULE "3"

Galley, Nicholas J.

POSITION Executive Director

TIME MONTHS
12*

SALARIES

TRAVEL

$

56,053.50 $ ==1..,,,6_9,..1..9..7=

(*) On Payroll June 30, 1995

See accompanying notes and Independent Accountant's Combined Report on Review of Financial statements and Supplementary Information.
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