'C)i-\ f\3CO . Rl ., Gq~3l \q93-q4 STATE OF GEORGIA DEPARTMENT OF AUDITS 254 WASHINGTON STREET ATLANTA. GEORGIA 30334 REVIEW REPORT GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY A COMPONENT UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 1994 GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY - 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 GROUPS 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 1 SCHEDULE OF APPROVED BUDGET 16 2 CASH AND CASH EQUIVALENTS 17 3 INVESTMENTS 18 4 SCHEDULE OF RESTRICTED FUNDS ACTIVITY 19 5 SCHEDULE OF OTHER OPERATING EXPENSES 20 CLAUDE L. VICKERS STNE AUDITOR (404) 656-2174 TAX RATIO (404) 656-0494 m- q,;~~~~1l " 1, ~G-l ~ ~epartmeut nf /\uhits 254 WASHINGTON STREET, SW ROOM 214 J\thmht, @eorsia 30334-8400 September 12, 1994 FINANCIAL AUDITS (404) 656-2180 PROGRAM AUDITS (404) 656-2006 Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe Georgia Agrirama Development Authority and Honorable Teresa Veazey, Executive Director INDEPENDENT ACCOUNTANrs COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Ladies and Gentlemen: We have reviewed the accompanying financial statements (Exhibits A through E) of the Georgia Agrirama Development Authority as of and for the year ended June 30, 1994, 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 Agrirama Development Authority. 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 conformity 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 ~e in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Schedules 1 through 5) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and 94ARL-4 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:gp 94ARL-4 FINANCIAL STATEMENTS - 1- GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY COMBINED BALANCE SHEET {STATUTORY BASIS) All FUND TYPES AND ACCOUNT GROUPS JUNE 30 1 1994 EXHIBIT "A" ASSETS Cash and Cash Equivalents (See Schedule) Investments (See Schedule) Accounts Receivable Other Inventories Fixed Assets land, Buildings and Equipment Amount to be Provided for Payment of Accrued Compensated Absences ACCOUNT GROUPS GOVERNMENTAL ---------------------------- TOTALS FUND TYPE GENERAL GENERAL (Memorandum Only) ------------- FIXED LONG-TERM ---------------------------- BUDGET ASSETS DEBT JUNE 30, 1994 JUNE 30, 1993 --------- ------------- ------------- $ 157,846.73 $ 157,846.73.$ 177,376.27 100,000.00 100,000.00 0.00 2,372.67 45,644.51 2,372.67 45,644.51 8.64 33,935.20 $ 2,205,361.53 2,205,361.53 2,169,375.78 ------------- $ 40,886.98 ------------- ------------- 40,886.98 ------------- _____3_8_,8__1_7,._4_5_ Total_ Assets $ 305,863.91 $ 2,205,361.53 $ 40,886.98 $ 2,552,112.42 $ 2,419,513.34 ============= ============= ============= ============= ============= LIABILITIES AND FUND EQUITY Liabilities Accounts Payable Payroll Withholdings Compensated Absences Total Liabilities Fund Equity Investment in General Fixed Assets Fund Balances Reserved Inventories Restricted Funds Unreserved Undesignated Total Fund Equity $ 3,125.61 1,691.22 ------------- $ 4,816.83 ------------- $ 3,125.61 $ 23,444.98 1,691.22 1,432.24 $ 40,886.98 40,886.98 38,817.45 $ 40,886.98 $ 45,703.81 $ 63,694.67 $ 2,205,361.53 $ 2,205,361.53 $ 2,169,375.78 $ 45,644.51 118,007.09 137,395.48 ------------- ------------- $ 301,047.08$ 2,205,361.53 ------------- ------------- 45,644.51 118,007.09 137,395.48 33,935.20 6,966.40 145,541.29 $ 2,506,408.61 $ 2,355,818.67 Total liabilities and Fund Equity $ 305,863.91 $ 2,205,361.53 $ 40,886.98 $ 2,552,112.42 $ 2,419,513.34 ============= ============= ============= ============= ============= 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 AGRIRAMA DEVELOPMENT AUTHORITY STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS} GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30. 1994 EXHIBIT "B" FUND BALANCES - JULY 1 Reserved Unreserved Undesignated ADDITIONS Excess of Funds Available over Expenditures Exhibit "C" DEDUCTIONS Fund Balance Carried Over from Prior Year as Funds Available Reserved Unreserved FUND BALANCES - JUNE 30 (To Exhibit "A") BUDGET FUND YEAR ENDED JUNE 30, 1994 JUNE 30, 1993 $ 40,901.60 $ 5,474.12 145,541.29 87,536.96 ------------- ------------- $ 186,442.89 $ 93,011.08 ------------- ------------- $ 301,047.08$ 186,442.89 $ 40,901.60 $ 5,474.12 145,541.29 87~536.96 ------------- ------------- $ 186,442.89 $ 93,011.08 ------------- ------------- $ 301,047.08$ 186,442.89 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- GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND YEAR ENDED JUNE 30. 1994 EXHIBIT "C" Page 1 FUNDS AVAILABLE REVENUES OTHER REVENUES RETAINED Contract Georgia Department of Agriculture Gifts and Grants Restricted Funds (See Schedule) Unrestricted Sales Concession Stand Country Store Departmental Gate Receipts On-Site Manufactured Products Other Cash Over/Short Interest Earned Sale of Photocopies Telephone Commissions Vendor's Compensation of Sales Tax Collections Other Total Revenues CARRY-OVER FROM PRIOR YEAR Transfer from Fund Balance Reserved Unreserved Total Carry-Over from Prior Year TOTALS YEAR ENDED JUNE 30. 1994 JUNE 30, 1993 $ 651,546.00 $, 632,817.00 115,324.52 46,873.92 4,210.00 34,800.69 65,232.64 103,065.08 10,307.84 172,337.2B 21,776.77 62,958.24 114,849.51 8,858.98 180,919.50 11,698.68 137.31 8,432.91 65.00 300.04 529.90 153.96 31.89 3,915.05 125.55 184.98 463.99 30.00 $1,196,083.17 $1,055,864.06 $ 40,901.60 $ 5,474.12 145,541.29 87,536.96 $ 186,442.89 $____9_3_,_..,.0_1-1-.0..8... Total Funds Available $ 1,382,526.06 $ 1,148,875.14 EXPENDITURES PERSONAL SERVICES Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance $ 506,758.04 $ 25,517.18 49,735.51 61,465.78 4,080.00 693.00 63,779.00 $ 712,028.51 $ REGULAR OPERATING EXPENSES Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding $ 6,385.89 $ 46,883.70 13,795.95 28,872.81 25,224.50 4,835.00 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. - 4- 479,175.41 24,543.28 48,227.19 54,041.88 0.00 266.00 46,288.00 652 I 541. 76 6,435.57 45,054.19 9,601.20 25,838.86 24,165.05 11,510.00 GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND YEAR ENDED JUNE 30. 1994 EXHIBIT "C" Page 2 EXPENDITURES REGULAR OPERATING EXPENSES Other Operating Expenses (See Schedule) Publications and Printing TRAVEL EQUIPMENT Equipment Purchases COMPUTER CHARGES Other Costs Repairs and Maintenance Supplies and Materials Equipment Equipment Purchases TELECOMMUNICATIONS PER DIEM. FEES AND CONTRACTS Per Diem and Fees Contracts CAPITAL OUTLAY Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance Other Costs Supplies and Materials Repairs and Maintenance Per Diem, Fees and Contracts Contracts OTHER GOODS FOR RESALE Other Costs Supplies and Materials Total Expenditures Excess of Funds Available over Expenditures TOTALS YEAR ENDED JUNE 30. 1994 JUNE 30. 1993 $ 17,529.34 $ 14,843.27 10,783.90 12,898.63 $ 154 .311. 09 $ 150,346.77 $ 2,578.23 $ 1,480.93 $ 13,604.28 $ 5,487.68 $ 1,260.00 $ 823.81 1,036.97 $--~=3,-1=20.78 $ $_ _.7...,._5:a0=5.57 $ 0.00 4,088.50 8,361.97 12,450.47 7,330.83 $ 7,185.78$ 8,115.19 9,823.99 1,271.28 $ 17,009.77 $_ _9a...,...,3~8.6......4.._7__ $ 8,861.91 $ 677.93 1,414.36 1,107.73 23,620.06 0.00 36,922.34 $, _ __7_2.,,:6~0=4.33 $ 5,971.24 456.79 953.00 746.40 31,304.26 200.00 2,317.91 41,949.60 $ 98,716.42 $_ _.;;8.:.1...4.:.;:;5.:.7.._.7_4_ $1,081,478.98$ 962,432.25 301,047.08 186,442.89 $ 1,382.526.06 $ 1,148.875.14 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. - 5- GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND YEAR ENDED JUNE 30. 1994 EXHIBIT "D" FUNDS AVAILABLE REVENUES Other Revenues Retained CARRY-OVER FROM PRIOR YEAR Transfer from Fund Balance BUDGET ACTUAL VARIANCE FAVORABLE (UNFAVORABLE) $1,230,630.00$ 1,196,083.17 $ -34,546.83 44,250.00 186,442.89 142,192.89 EXPENDITURES Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Telecommunications Per Diem, Fees and Contracts Capital Outlay Goods for Resale $1,274,880.00$ 1,382,526.06$ 107,646.06 ============= ------------- ------------- $ 762,449.00 $ 712,028.51 $ 50,420.49 171,568.00 154,311.09 17,256.91 6,764.00 2,578.23 4,185.77 23,000.00 0.00 23,000.00 15,324.00 13,604.28 1,719.72 4,779.00 3,120.78 1,658.22 7,616.00 7,505.57 110.43 18,080.00 17,009.77 1,070.23 149,000.00 72,604.33 76,395.67 116,300.00 98,716.42 17,583.58 ------------- ------------- ------------- $1,274,880.00$ 1,081,478.98$ 193,401.02 Excess of Funds Available over Expenditures $ 301,047.08 $ 301,047.08 ============= ============= 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 AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIIlBIT "E" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Georgia Agrirama Development Authority is an instrumentality of the State of Georgia and a public corporation. The fifteen (15) members ofthe Authority are accountable as trustees. The Authority is assigned to the Department of Agriculture for administrative purposes and support services. The Georgia Agrirama Development Authority is considered a component unit ofthe State ofGeorgia and is included within the State ofGeorgia reporting entity for financial reporting purposes because of the significance or its legal, operational and financial relationship with the State of Georgia. FUND ACCOUNTING The Georgia Agrirama Development Authority uses a fund and account groups 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 of the State of Georgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. The fund and account groups presented in the accompanying financial statements are as follows: GOVERNMENTAL FUND TYPE BUDGET FUND - The fund used to account for activities and functions as set forth in the operating budget approved by the Georgia Agrirama Development Authority. This presentation differs from generally accepted accounting principles in that such principles provide that the Budget Fund of the Authority be accounted for as a Proprietary Fund Type - Enterprise Fund. An Enterprise Fund is used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent is that costs of providing goods or services to the general public on a continuing basis are financed or recovered primarily through user charges or that periodic measurement of revenues earned and expenses incurred are appropriate for capital maintenance, public policy, accountability and other purposes. ACCOUNT GROUPS GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at historical cost. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets. This accounting methodology differs from generally accepted accounting principles in that the Budget Fund of the Authority should be accounted for as a Proprietary Fund Type - Enterprise Fund. Fixed assets utilized in the operations of a Proprietary Fund Type - Enterprise Fund should be recorded as assets of such a fund, rather than in the General Fixed Assets Account Group. The depreciation of such fixed assets should be recorded as an expense of the Enterprise Fund in order to more effectively determine the total cost of providing goods and services to the general public on a continuing basis. -7- GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIIlBIT "E" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FUND ACCOUNTING ACCOUNT GROUPS 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. This presentation differs from generally accepted accounting principles in that the Budget Fund of the Authority should be reflected as a Proprietary Fund Type - Enterprise Fund. The liabilities and related expenses for the items listed above should be recorded as a part ofthe Enterprise Fund in order to more effectively determine the total cost of providing goods and services to the general public on a continuing basis. BASIS OF ACCOUNTING MEASUREMENT FOCUS The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e., expenditures) in net current assets. Proprietary fund types, on the other hand, should be accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities are included on the balance sheet. Operating statements of these funds present increases, (i.e., revenues) and decreases (i.e., expenses) in net total assets. In accordance with accounting practices prescribed or permitted by the State of Georgia, the Budget Fund utilizes the current financial resources measurement focus. GOVERNMENTAL FUND TYPE BUDGET FUND 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 of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both 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 be used to pay liabilities of the current period. Revenues that are accrued include primarily certain amounts earned under operating agreements with other parties. Further, the modified accrual basis of accounting calls for expenditures, other than accrued interest of general long-term debt, to be recorded when the related fund liability is incurred. The Budget Fund, which should be reflected as a Proprietary Fund Type - Enterprise Fund in accordance with generally accepted accounting principles, should be maintained on the accrual basis of accounting. 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 - 8- GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "E" NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND consistent with generally accepted accounting principles, which encumbrances within the Proprietary Fund Type - Enterprise Fund. do not provide for the recording of 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 of the State of Georgia, but differs from generally accepted accounting principles for proprietary fund types in that immaterial adjustments should be reported as current period revenues and expenses. In accordance with policies of the State of Georgia, the cost of annual and sick leave is recorded when paid rather than when earned. The cost of annual leave earned but not yet paid at the end of the fiscal year is reflected in the General Long-Term Debt Account Group, in that such liability is not expected to be financed from expendable available financial resources. This practice differs from generally accepted accounting principles for proprietary fund types in that the total accrued liability for compensated absences at the end of the fiscal year should be reflected as a fund liability of the proprietary fund type involved. BUDGET The budget of the Georgia Agrirama Development Authority is compiled in the same manner as all State departments and expenditures are classified by budget unit object classes as provided in Act No. 608 of Georgia Laws 1993 (as approved April 28, 1993) and amended by Act No. 622 of Georgia Laws 1994 (as approved February 8, 1994), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1993-1994. CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand and demand deposits with banks and other financial institutions. INVESTMENTS Investments are defined as those financial instruments with terms of three months or more from the date of purchase and certain other securities held for the production of revenue. Investments are stated at cost. INVENTORIES No inventories of supplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase. Inventories of goods for resale are valued at cost based on the first-in, first-out method on the Combined Balance Sheet (Statutory Basis). At June 30, 1994, the consumption method was used to account for the use ofthese inventories. Under the consumption method, consumed inventory is reflected as an expenditure on the Statement of Funds Available and Expenditures. -9- GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXIIlBIT "E" NOTE I: 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 brief description of the reserves reflected in the accompanying financial statements: INVENTORIES Reported inventories of goods for resale, under the consumption method, are offset by a portion of fund balance to provide working capital for managing a reasonable level of inventories. RESTRICTED FUNDS Funds received as Restricted Funds (Gifts and Grants) are donations and interest earnings from these donations. These funds are restri~tive in nature and are to be used only for restoring specific projects. MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present 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 the accompanying financial statements in order to provide an understanding of changes in the Authority's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand. The amounts reflected on the Combined Balance Sheet (Statutory Basis) at June 30, 1994 for the asset caption "Fixed Assets - Land, Buildings and Equipment" and the fund equity caption "Investments in General Fixed Assets" includes a correction of a prior period error (See Note 3). The amounts reflected for the asset and fund equity captions referred to above at June 30, 1993 have been restated to reflect this correction. 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: (1) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia. - 10 - GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT"E" NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (2) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities of the State of Georgia. (3) Bonds of any 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. (4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia. (5) Bonds, bills, certificates of indebtedness, 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, 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 of accounts 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 For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances are 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 Authority or by its agent in the Authority's name. Category 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the Authority's name. Category 3 - Amounts collateralized with securities (at market value) held by the financial institution or by its trust department or agent, but not in the Authority's name, and amounts uncollateralized. Carrying Amount Bank Balance Risk Categories 2 3 Cash Deposits $ 256 146 73 $ 332 701 91 $ 282 069.87 $ 50,632 04 $==="0oo,.,,, - 11 - GEORGIA AGRIRAMA DEVELOP:MENT AUTHORITY NOTES TO THE FINANCIAL STATE:MENTS JUNE 30, 1994 EXHIBIT "E" NOTE 3: CHANGES IN GE~'ERAL FIXED ASSETS The following is a summary of changes of equipment in the General Fixed Assets Account Group during the fiscal year: Balance July 1, 1993 $ 1,622,019.78 Restatement ofPrior Year Balance 547,356.00 Additions $2,169,375.78 35,985.75 Balance June 30, 1994 $ 2,205,361 53 NOTE 4: GENERALLONG-TERMDEBT CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1994, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group: Balance July 1, 1993 $ 38,817.45 Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits (*) -604.08 2,673.61 Balance June 30, 1994 $ 40,886.98 (*) Includes related fringe benefits applicable to compensated absences at July 1, 1993. NOTE 5: DEFERRED COMPENSATION PLAN The State of Georgia 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 of their salary until future years. 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 ofthe State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor ofthe State of Georgia in an amount equal to the fair - 12 - GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 EXHIBIT "E" NOTE 5: DEFERRED COl\,fi>ENSATION PLAN market value ofthe deferred account ofeach 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, 1994. NOTE 6: RETIREMENT PLANS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA The Georgia Agrirama Development Authority participates in the Employees' Retirement System of Georgia, a singJc::i-employer, defined benefit pension plan. The Employees' Retirement System of Georgia was established by the General Assembly of Georgia for the purpose of providing retirement allowances for employc:::es ofthe State ofGeorgia. The Retirement System is funded through a combination ofemployee and employe~r contributions. Em1ployees are required to contribute a graduated percentage of annual compensation. Employer contributions ar,e for a specified percentage of active member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Authority contributed $49,735.51 to the Employees' Retirement System of Georgia. Participation in the Retirement System is not segregated by employee groups of individual governmental units and the Authority has no further liability under the retiremel11t system other than future employer contributions as established for each fiscal year. Information relative t10 the plan description, funding status and historical trends is presented in the financial report of the Employ1ees' Retirement System of Georgia for the year ended June 30, 1994. GEORGIA DEFINED CONTRIBUTION PLAN The State ofGeorgia also provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Employees' Retirement System of Georgia referred to above through a single-employer defined contribution. plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% of their gross salruy, with no matching contribution by the employer. A member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus inver.,tment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of65 with the option of receiving a periodic payment based on mortality tables and interest ac;cumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan d!escription and funding status is presented in the financial report of the Employees' Retirement System ofHeorgia for the year ended June 30, 1994. 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. - 13 - GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1994 NOTE 7: LEAVE POLICIES 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 - <:;ompensated Absences ari~ Certain employees who retire with one hundred and twenty days or more of forfeited annual sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia. 1 \ NOTE 8: CONTINGENCIES Litigation, claims and assessments filed against the Georgia Agrirama Development Authority, 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 selfinsurance 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, 1994. NOTE 9: BONDING INFORMATION The Executive Director and all employees ofthe Georgia Agrirama Development Authority are bonded under a Public Employees Blanket Bond written by Employers Insurance of Wausau, their Bond No. 1450-00110723, on which the premium was paid to October 1, 1994. Under this agreement the Public Employee Dishonesty Coverage insures the Authority 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 Authority to a maximum of $100,000.00 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 Agrirama Development Authority are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626011675 2, on which the premium was paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Authority to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. - 14 - SUPPLEMENTARY INFORMATION - 15 - GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY SCHEDULE OF APPROVED BUDGET YEAR ENDED JUNE 30, 1994 SCHEDULE "1" FUNDS AVAILABLE REVENUES Other Revenues Retained CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance ORIGINAL AMENDED BUDGET APPROPRIATION APPROPRIATION ADJUSTMENTS TOTAL $1,230,446.00$ -51,816.00 $ 52,000.00 $ 1,230,630.00 0.00 44,250.00 44,250.00 EXPENDITURES Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Telecommunications Per Diem, Fees and Contracts Capital Outlay Goods for Resale $1,230,446.00 $ -7,566.00 $ 52,000.00$ 1,274,880.00 ============= ============= ============= ============= $ 798,896.00 $ -35,939.00 $ -508.00 $ 762,449.00 189,361.00 -8,793.00 -9,000.00 171,568.00 6,000.00 2,764.00 -2,000.00 6,764.00 23,000.00 23,000.00 10,000.00 13,324.00 -8,000.00 15,324.00 2,250.00 2,529.00 4,779.00 7,500.00 -384.00 500.00 7,616.00 13,939.00 -6,367.00 10,508.00 18,080.00 75,000.00 22,000.00 52,000.00 149,000.00 104,500.00 3,300.00 8,500.00 116,300.00 ------------- ------------- ------------- ------------- $1,230,446.00$ -7,566.00 $ 52,000.00 $ 1,274,880.00 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 16 - GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY CASH AND CASH EQUIVALENTS JUNE j.O. 1994 SCHEDULE "2" NONINTEREST BEARING ACCOUNTS Citizens Bank of Tifton, Tifton, Georgia NationsBank of Georgia, N.A., Tifton, Georgia South Georgia Banking Company, Tifton, Georgia OTHER Cash on Hand $ 61,B92.3O 42,439.77 51,814.66 $ 156,146.73 1,700.00 $ 157,846.73 ============= See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 17 - GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY INVESTMENTS JUNE 30, 1994 SCHEDULE "3" INVESTMENT TYPE Certificates of Deposit South Georgia Banking Company, Tifton, Georgia No. 22614 No. 22641 PURCHASE DATE November 5, 1993 January 10, 1994 MATURITY DATE February 5, 1995 February 5, 1995 AMOUNT $ 50,000.00 50,000.00 $ 100,000.00 ============= See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 18 - GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY SCHEDULE OF RESTRICTED FUNDS ACTIVITY YEAR ENDED JUNE 30, 1994 SCHEDULE "4" FUND Cravey House Dentist Office Doctor's Office Drug Store Feed and Seed Store Library Fund Shepherd Complex Tift House BALANCE JULY 1, 1993 ------------ REVENUES IN PERIOD ---------------------------- GIFTS AND INTEREST GRANTS EARNED --------- -------- TOTAL FUNDS AVAILABLE --------- NET EXPENDITURES IN PERIOD ------------ BALANCE JUNE 30, 1994 ------------- $ 4,500.00 $ 4,500.00 $ 4,500.00 $ 1,085.73 $ 28.75 1,114.48 $ 285.00 829.48 2,000.00 16.33 2,016.33 105.82 1,910.51 800.00 15.45 815.45 815.45 3,024.52 3,024.52 3,024.52 0.00 3,757.91 107.66 3,865.57 3,865.57 100,000.00 100,000.00 100,000.00 2,122.76 5,000.00 153.54 7,276.30 1,190.22 6,086.08 ------------- ------------- ------------- ------------- ------------- ------------- $ 6,966.40 $ 115,324.52 $ 321.73 $ 122,612.65 $ 4,605.56 $ 118,007.09 =-----=------ --------=---= -----=---===- ===---==--=== ============= ============= See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Infonnation. - 19 - GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY SCHEDULE OF OTHER OPERATING EXPENSES YEAR ENDED JUNE 30, 1994 REGULAR OPERATING EXPENSES Advertising Bank Service Charges Brochure Distribution Court Fi 1i ng Fee Freight Inspection Memberships Registration Fees Subscriptions and Fees SCHEDULE 511 11 $ 5,724.00 832.02 6,342.00 85.00 1,035.06 140.00 1,548.00 1,701.92 121. 34 $ 17,529.34 See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. - 20 -