Review report, Georgia Agrirama Development Authority, state of Georgia, year ended June 30, 1995

GI\ IVWO .RI G4231 l9'14-ci5
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT GEORGIA AGRIRAMA DEVELOPMENT AUTI!ORITY
STATE OF GEORGIA YEAR ENDED JUNE 30, 1995

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

I SCHEDULE OF APPROVED BUDGET

22

2 CASH AND CASH EQUIVALENTS

23

3 INVESTMENTS

24

4 SCHEDULE OF RESTRICTED FUND ACTIVITY

25

5 SCHEDULE OF FEDERAL REVENUES

26

6 SCHEDULE OF OTHER OPERATING EXPENSES

27

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
November 20, 1995

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Georgia Agrirama Development Authority
and Honorable Teresa Veazey, 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) of the Georgia Agrirama Development Authority 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 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 be in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Schedules 1 through 6) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and

95ARL-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,
d7~~
Claude L. Vickers State Auditor
CLV:dt 95ARL-4

FINANCIAL STATEMENTS - 1-

~ Coll, and Colh Eql-.i.
(See Schedule) 1.--
(See Soheduie)
Olher
--- -Land, Buiklingg and Equil)ffl8l1t
-Alnoiantobe-forl'aymenld
- ~ - Installment ~ COIM1itJnenls
Tolal-
l.~111!1~ ~Q B.!~Q l;Q!.llTY l.iabililies
APoocyonu>nlbllwP-o.-g.
Comporuled1-l'u""-
TctalLiabillties
--I - FundEquity lrMl!ltment WI General Aced Aaets Fund BaJanceo
Reotricled Funds UooNignatecl
Tdal Fund Equity
Tolal l.iabililies and Fund Equily

QEQBGIA &"'--BIBAM! DAIR_OPMEtfi !l.!ll:fQBIIY Q.QMBI~~ &!I ~ S!:i~EI ~IA!! l!QB:Y &!I~
& B.!~1:2 D'.~!~Q AQQQ\Jtil ~BQ!.!~
~

EXHIBITA

GOVERNMENTAL FUNDTYl'E BUDGET

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

{Memorandum~

JUNE 30 1995

JUNE 30 1994

87 663.98 100000.00
0.00 53861.07

2589843.88

241525.05 $

2 589 84388 $

87663.98 S

157 &46.73

100000.00 S

100000.00

0.00 S 53861.07 S

23n.61 45644.51

2589843.68 S 2205361.53

44,260.18 $ 70000.00
114260.18 $

44,260.18 $ 70000.00
114260.18 $

<4(),886.98 0.00
<4()886.98

114260.18 $

2 945 628.91 $

2552112.42

16,857.63 1,560.20

18417.83

2,589,843.68

53,861.07 112,117.09
57129.06
223107.22 $

2 589843.68

44,260.18 70000.00
114260.16 $

16,857.63 $ 1,560.20 44,260.18 70CXXJ.OO
s 132 678.01

3,125.61 1,691.22 40,886.98
0.00
45 703.81

2,589,843.88 S

2,205,361.53

53,861.07 112,117.09
57 129.06
2 812 950.90 $

45,644.51 118,007.09
137 395.48
2 506408.61

241 525.05 $

258984:<88 $

114260.18 $

2945628.91 $

2 552112.42

See Independent Accountant's Combined Report on Review d Financial statements and Supplemenlary Information.
The l1ChS to the financial statements are an integral part cl this statement
-2-

GEORGIA AGRIRAMA PJ;Vf;( QPMf;NT AUTHORITY STATEMENT OF CHANGES IN FUND BALANCES ISTATIITORY BASIS)
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30 1995

EXHIBIT"B"

FUND BALANCES - JUI Y 1 Reserved Unreserved Undesignated
~ Excess of Funds Available over Expenditures Exhibit"C"
DEDUCTIONS Fund Balance Carried Over from Prior Year as Funds Available Reserved Unreserved
FUND BAI ANCES - JUNE 30 (To Exhibit "A")

BUDGET FUND

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

163,651.60 $

40,901.60

137,395.48

145,541.29

$

301,047.08 $ _ _..;1""86"',44-'-"'2"'.89"-

223,107.22 $ _ _ _30=1.,,,04C-'7;..:;;;08a.

163,651.60 $ 137,395.48

40,901.60 145,541.29

301,047.08 $ _ _..;1"'86"'-'-44=2=.89"-

$

223107.22 $ ===30=104==7=.08=

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

GEORGIA AGRJRAMA DE\/f;LQPMENT AUTHORITY STATEMENT OF FUNDS AVAILABL F ANO EXPENMURES
BUQGETFUND
YEAR ENDED JUNE 30 1995

EXHIBIT"C"

FUNDS AVAILABLE
~
FEDERAi. REVENUES (See Schedule)
OTHER REVENUES RETAINED Contracts Georgia Department of AgricuHure Georgia Department of TransportaUon 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 Vendo(s Compensation of Sales Tax Collections Other
Total Other Revenues Retained
Total Revenues
CARRY-OVER FRQM PRIOR YEAR
Transferfrom Reserved Fund Balance Resar,ed Unresar,ed
Total Carry-Over from Prior Year

TOTALS

YEAR ENDED

JUNE30 1995

JUNE30 199-4

86,314.04 $

0.00

$

623,860.00 $

651.546.00

21,578.51

0.00

82.040.00 35,709.73

115,324.52 46,873.92

70,857.21 115,518.06 20,278.01 172,406.99 22,041.10

65,232.64 103,065.08 10,307.84 172,337.28 21,776.77

54.53 9,330.53
155.00 297.86 515.56
443.83

137.31 8,432.91
65.00 300.04 529.90 153.96

1,175,086.72 $

1,196,083.17

1,281,400.76 $

1,196,083.17

183,651.60 $ 137,395.48

40,901.60 145,541.29

$

301,047.08 $

186,442.89

Total Funds Available

1,562,447.84 $

1,362,526.06

EXPENDITURES
PERSONAL SERVICES
Salaries and Wages Emplojefs Contributions for:
Fl.CA. Retirement Health Insurance Personal LiabilHy Insurance Unemployment Compensation Insurance Woricefs' Compensation Insurance
REGULAR OPERATING EXPENSES
Molor Vehicle Expenses Supplies and Materials Repain. and Maintenance Utilities Rents (Other than Real Estate)

567,861.43 $
27.526.25 52,740.39 69,788.39
6,154.00 1,066.00 74,725.00
799,861.46 $

506,758.04
25,517.18 49,735.51 61,465.78
4,080.00 693.00
83,779.00
712,028.51

9,266.19 $ 40,203.93 20,550.56 29,676.35 31.235.50

6,385.89 46,883.70 13,795.95 28,872.81 25,224.50

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

GEORGIA AGRIBAMA DEVELOPMENT AUTHORITY STATEMENT QF FlJNQS AVAILABLE ANQ EXPENDITURES
UOGF;TFUNP VEAR ENDED JUNE 30 1995

EXHJBIT"C"

EXPENPITYRES
REGULAR OPERATING EXPENSES
Insurance and Bonding Other 0pen11;ng Expenses (See Schedule) Publication& and Printing

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

7,790.15 $ 14',498.45 9,541.10
162,762.23 $
2,751.51 $

4,835.00 17,529.34 10,783.90
154,311.09
2,578.23

Equipment Purchases
COMPUTER CHARGES
Other Costs Repairs and Maintenance Supplies and MateriaJs
Equipment Equipment Purchases
TI;LECOft.MJNICATIQNS
PER QIEM FEES ANP CQNTRACTS
Per Diem and Fees Contracts
C:APJTAI QUTLAY
Personal Services Salaries and Wages Employer's ContribuUons for: F.t.CA Retirement Health lnsurance
OlherCo&ta Supplies and Materials Repairs and Maintenance Other Clpen,ting Expenses (See Schedule)
Equipment Equipment Purchases
Per Diem, Fees and Contracts Per Diem and Fees Contracts
QI!lm
GOODS FOR RESALE Other Costs Supplies and Materials
Total Expenditures
Excess of Funds Available over Expenditures

8,938.00 $

13,604.28

361.00 $ 519.25
0.00 880.25 $ 7,496.92 $
25,578.81 $ 782.59
26,361.40 $

1,260.00 823.81
1,036.97 3,120.78 7,505.57
7,185.78 9,823.99 17,009.TT

8,931.54 $
683.26 1,396.89 1,116.44
44,319.01 400.00 525.00
30,000.00
2,356.20 150,500.95
240,229.29 $

8,861.91
sn.93
1,414.36 1,107.73
23,620.06 0.00 0.00
0.00
0.00 36,922.34
72,604.33

90,059.56 $ _ _...,::98'",7"'16:::,4;::a.2

1,339,340.62 $

1,081,478.98

223,107.22

301,047.08

1,562,447.84 $

1,382,526.06

See Independent Accountant's Combined Report on Review of Financial Statements and Supptementary Information.
The notes to the financial statements are an integral part of this &latement.
.5.

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30 1995

EXHIBIT"D"

FUNDS AVAILABLE REVENUES
Federal R_,._ Other Reveni.s Retained
CARRY-OVEB FROM PRIOR YEAR Transfer from Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

0.00 $

1,417,141.00

$

1,417,141.00 $

39,368.00

86,314.04 $ 1,175,086.72
1,261,400.76 $

86,314.04 -242,054.28
-155,740.24

301,047.08

261,679.08

$

1,456,509.00 $

1,562,447.84 $

105,938.84

~~DITURES
Pereonal Services Regular Operating Expenses Tra\1111 EqUipment Computer Charges Telecommunications Per Diem, Fees and Contracts Capital Outlay Goods for Resale

$

830,541.00 $

176,071.00

5,014.00

9,505.00

10,500.00

8,420.00

40,008.00

269,050.00

107,400.00

$

1,456.509.00 $

Exceas of Funds Available O\l8r Expenditures

$

799,861.46 $ 162,762.23
2,751.51 8,938.00
880.25 7,496.92 26,361.40 240,229.29 90,059.56
1,339,340.62 $
223,107.22 $

30,679.54 13,308.77 2,262.49
567.00 9,619.75
923.08 13,646.60 28,820.71 17,340.44
117,168.38
223,107.22

See Independent Accountant's Combined Report an Review of Financial Statements and Supplementary Information.
The notes 1D the financial statements are an inmgral part of this statement. -6-

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995

EXHIBIT"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 of Georgia and is included within the State ofGeorgia reporting entity for financial reporting purposes because ofthe significance of its legal, operational and financial relationship with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Board Codification of Governmental Accounting and Financial Reporting Standards.
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. 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 offunds 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 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 ofproviding 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 cost or at estimated historical cost if historical cost is not practically determinable. 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 methodology of accounting for general fixed assets 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 proprietary fund types should be recorded as assets of such funds, rather than in the General Fixed Assets Account Group. The depreciation of
- 7-

GEORGIA AGRIRAMA DEVELOPMENT AUTIIORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "E"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
.ACCOUNT GROUPS
GENERAL FIXED ASSETS fixed assets should be recorded as an expense of proprietary fund types in order to more effectively determine the total cost of providing goods and services.
The cost ofnormal maintenance and repairs that do not add to the value ofthe asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life ofthe assets are included in the General Fixed Assets 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. 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 proprietary fund type in order to more effectively determine the total cost of providing goods and services.
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 flow ofcurrent financial resources measurement focus. Wrth this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure ofavailable spendable resources.
Proprietary fund types, on the other hand, should be accounted for on a flow of economic resources measurement focus. Wrth this measurement focus, all assets and all liabilities are included on the balance sheet. Operating statements ofthese funds present increases, (i.e., revenues) and decreases, (i.e., expenses) in net total assets. This measurement focus emphasizes the determination of net income. In accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, the Budget Fund, which should be reflected as a Proprietary Fund Type - Enterprise Fund in accordance with generally accepted accounting principles, 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 ofaccounting. 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 of the transaction can be determined and "available" means collecttl>le within the current period or soon enough thereafter to pay liabilities ofthe current period. Revenues that are accrued include primarily Federal grants and entitlements and certain amounts earned
-8-

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995

EXHIBIT "E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGETFUND
under operating agreements with other parties. Expenditures are recorded when the related fund liability is inrurred, except for unmatured interest on general long-tenn 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. 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. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which do not provide for the recording of encumbrances within the Proprietary Fund Type - Enterprise Fund. Further, revenue recognition for expense-driven grants should be based upon expenses determined in accordance with generally accepted accounting principles.
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 ofGeorgia, 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 ofthe State of Georgia, the cost ofannual 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 ofthe proprietary fund type involved.
BUDGET The budget ofthe Georgia Agrirama Development Authority is adopted on a basis consistent with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia and is compiled in the same manner as all State departments. Expenditures are classified by budget unit object classes as provided in Act No. 1208 ofGeorgia Laws 1994 (as approved April 18, 1994) and amended by Act No. 6 of Georgia Laws 1995 (as approved February 22, 1995), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1994-1995. There is no legal prohibition regarding overexpenditure of the aggregate budget.
-9-

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO TIIE FINANCIAL STATEMENTS nJNE30 1995

EXEilBIT "E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase.
Inventories ofgoods for resale are valued at cost using the first-in/first-out (FIFO) method on the Combined Balance Sheet (Statutory Basis). The consumption method is used to account for the use ofinventories. Under the consumption method, the costs ofinventories are recorded as expenditures when consumed rather than when purchased.
RESERVED FUND BALANCE Reserves represent those portions offund 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 ofgoods for resale, under the consumption method, are offset by a portion offund balance to provide working capital for managing a reasonable level ofinventories.
RESTRICTED FUNDS Funds received as Restricted Funds ( Gifts and Grants) are donations and interest earnings from these donations. These funds are restrictive in nature and are to be used only for restoring specific projects.
COMPENSATED ABSENCES Compensated absences represent obligations of the Authority 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 ofthis 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.

- 10 -

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995

EXHIBIT"E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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 Authority's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Authority'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:
(1) 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 ofthe counties or municipalities ofthe State ofGeorgia.
(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.
(4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe 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, 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.
-11 -

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995

EXHIBIT"E"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES 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. The bank balances as of June 30, 1995, 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 pledging financial institution's trust department or agent in the Authority'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 Authority's name, and amounts uncollateralized.

Cash Deposits

Carrying Amount
S ]85 963 98

Bank Balances

Risk Categories

332261 69 s 24789421 s 8436148 s,--~ooo.,..

NOTE 3: INSTALLMENT PURCHASE COMMITMENTS

The Georgia Agrirama Development Authority acquired certain equipment through a multi-year installment purchase. At June 30, 1995, future minimum commitments under the installment purchase for equipment were as follows:

Fiscal Year Ending June 30

1996 1997

$ 35,000.00 35 000.00

Total Future Minimum Commitments

$ 70 000 00

- 12 -

GEORGIA AGRIRAMADEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995

EXHIBIT "E"

NOTE 4: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition of moveable personal property as defined in Official Code of Georgia Annotated Section 50-16-161, only those items with an acquisition cost of $1,000.00 or greater are reflected in the General Fixed Assets Account Group.

The following is a summary of changes of equipment in the General Fixed Assets Account Group during the fiscal year:

Balance July 1, 1994

$2,205,361.53

Additions Deductions

406,105.15 21 623.00

Balance June 30, 1995

$2 589 843 68

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT A summary of changes in General Long-Term Debt for the year ended June 30, 1995, follows:

Compensated Absences

Installment Purchase
Commitments

Total

Balance July 1, 1994

$ 40,886.98 $

0.00 $ 40,886.98

Additions

Annual Leave Earned and Utilized (Net)

Salaries

3,107.73

3,107.73

Salary Related Fringe Benefits

265.47

265.47

Current Year Purchases

70 000.00

70 000.00

Balance June 30, 1995

$ 44 260 18 $ 70 000 00 $ 114 260 )8

NOTE 6: RISK MANAGEMENT

Public Entity Risk Pool

The State Personnel Board, Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees ofunits ofgovernment ofthe State ofGeorgia 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

- 13 -

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995

EXHIBIT"E"

NOTE 6: RISK MANAGEMENT
Public Entity Risk Pool
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 internally 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 Georgia Agrirama Development Authority is a component unit ofthe State of Georgia, 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 7: 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 oftheir salary until future years. Participation in the plan is optional. 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 of a 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 ofthe State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1995.
NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The Georgia AgriramaDevelopment Authority 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 of the State of Georgia. The Authority's payroll
- 14-

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE30 1995

EXHIBIT "E"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description for the year ended June 30, 1995, for employees covered by ERS was $346,146.45. The Authority's's total payroll for all employees was $576,792.97.
Benefits The benefit structure ofERS 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 I, 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 IO years of creditable service and attainment ofage 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 ofage.
Contributions Required and Contributions Made Under the old plan, member contributions consist ofemployee contributions paid by the employee of 1.25% ofannual compensation and 4.75% of annual compensation paid by the Authority on behalf ofthe employee. Under the new plan, member contributions consist solely of 1.25% ofannual compensation paid by employee. The Authority also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1995, the ERS employer contribution rate for the Authority amounted to 14.83% 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 $55,672.93, ofwhich $51,345.70 was made by the Authority and $4,327.23 was made by employees. These contributions met the requirements oftheplan.
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
- 15 -

GEORGIA AGRIRAMA DEVELOPMENT AUTIIORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995

EXIIlBIT "E"

NOTES: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
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 of June 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 of 7.5 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 of inflation and merit increases:

~

Percentage

20

9.5%

25

8.5%

30

6.5%

35

6.0%

40to 65

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.

The total unfunded pension benefit obligation ofERS as ofJune 30, 1994, was $310,149,000, as follows:

- 16 -

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTES: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation

Pension Benefit Obligation:

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

$ 2,227,653,000

Current Employees

Accumulated Contributions

648,516,000

Employer-Fmanced Vested

1,085,190,000

Employer-Financed Nonvested

1206805 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 of June 30, 1994. Net assets available for benefits were valued as of the 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 detennined 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 detennined 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 Authority's contribution was actuarially detennined and represented 00.02% of total contributions made by all participating employers.

- 17 -

GEORGIA AGRIRAMA DEVELOPMENT AUIHORITY NOTES TO THE FINANCIAL STATEMENTS ruNE 30 1995

EXIIlBIT "E"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Funding Policy
Significant actuarial assumptions used to compute contributions are the same as those used to compute the
standardized measure of pension obligation.
Trend Information
Historical 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 Agrirama Development Authority participates 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 of a public retirement or pension system. GDCP is administered by the Employees' Retirement System Board ofTrustees. The Authority's payroll for the year ended June 30, 1995, for employees covered by GDCP was$ 228,899.84. The Authority's total payroll for all employees was $ 576,792.97.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board. If a member has less than $3,500 credit to his/her account, the Board has the option ofrequiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer
contributions. Earnings are credited to each member's account in a manner established by the Board. Upon
termination ofemployment, the amount ofthe member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1995 amounted to$ 17,171.03 which represents 7.5% ofcovered payroll. These contributions met the requirements ofthe plan.

- 18 -

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995

EXIIlBIT "E"

NOTE 9: 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 of continuous State service with a maximum accumulation offorty 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.
NOTE 10: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Authority expects such amounts, if any, to be immaterial to its overall financial position.
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, 1995.
NOTE 11: 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, 1995. 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$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 of their position or employment.
All employees of the Georgia Agrirama Development Authority 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 Authority to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.
- 19 -

oz
>I ll'C)\~~

SUPPLEMENTARY INFORMATION -21-

GEORGIA AGBRAMA PEYELOPMENT AUTHORITY SCHEDULE OF Af:PRQVEQ BUDGET
YEAR ENPEP JUNE 30 1995

SCHEDULE 1

FUNDS AYAILABI E
BMlll!il
Olhw R - Rained
~BBY~B EBQM ~BIQB :'.(~R
T...- 1n>m Fund Bo11nce
- -EXPENPIIUBES
Regular Oporaling EXj)OnMS T,_ Mator Vohiclo Pun:hUN Equipmont Computer Charga Telecommunications Pw Diom, Foos and Ccntra= Capital Outlay GoodolorR-

ORIGINAL APPROPRIATION

AMENDED APPROPRIATION

BUDGET ADJUSTMENTS

TOTAL

1,283,437.00 $

0.00

$

1,283,437.00 $

,85,049.00 $ 38,368.00 -25,681.00 $

198,753.00 $

1,417,141.00

0.00 198,753.00 $

38,368.00 1,-456,509.00

$

851,&49.00 $

170,568.00

5,000.00

12,500.00

35,150.00

5,000.00

7,420.00

7,950.00

75,000.00

113,200.00

$

1,283,437.00 $

12,224.00 $ 10,266.00 2,514.00
-26,995.00 5,500.00
1,058.00
-5,800.00
25,681.00 $

-ll,684.00 $ -4,783.00 -2,500.00 -12,500.00 1,350.00
1,000.00 31,000.00 194,050.00
198,753.00 $

830,541.00 176,071.00
5,014.00 0.00
9,505.00 10,500.00 8,420.00 40,008.00 268,050.00 107,400.00
1,-456,509.00

S e o ~ notes and Independent Accountant's Combined Report on ROYlow d F - Statements and Supplementary 1 - .
22-

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY CASH AND CASH EQUIVALENTS JUNE 30 1995

SCHEDULE"2"

NONINTEREST BEARING ACCOUNTS
NationsBank of Georgia, N.A, TIIIDn, Georgia
South Georgia Banking Company, TIIIDn, Georgia
INTEREST BEARING ACCOUNTS
Citizens Bank of TdlDn, TIIIDn, Georgia
Money Market Account
South Georgia Banking Company, TIIIDn, Georgia
Money Market Accounts
Qit!IB
Cash on Hand

10,528.81 795.63 $

11,324.44

22,476.42 52,163.12

74,639.54 1,700.00

$ =====8,:.7,,;;;663=.98~

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-23-

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITV INVESTMENTS JUNE30 1995

SCHEDULE"3"

INVESTMENT IYPE
Certificates of Deposit South Georgia Banking Company, TIiton, Georgia No. 25222 No. 25219

PURCHASE DATE

INTEREST RATE

MATURITY DATE

AMOUNT

January 10, 1995 February 7, 1995

5.5% 6.5%

January 10, 1996 $ August 8, 1995

50,000.00 50,000.00

$ ==~1:,;;00~000~;;;-00;;.

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-24-

Bllill
Cla,eyHouae Dentist Office Doetc,'gOffice OIUg Store Library Fund Sheohen!Complex TlftHouae Train Account

GFQRGIA AGBIRAMA Devel QPMfNTAUTMOBIIY SCHER\ JI E OF RfTR!CTEQ FUNP ACJMTY YfA.R fNPfP JUNE '3Q 1995

BALANCE JULY 11994

REVENUES IN PERIOD

GIFTS AND

INTEREST

GRANTS

EARNED

TOTAL FUNDS AVAILABLE

NET EXPENDITURES
IN PERIOD

BALANCE JUNE30 1995

4,500.00 829.48
1,910.51 $ 815.45
3,885.57 100,(XXlOO
6,086.08
118,007.09 $

1,000.00
50,000.00 540.00
30500.00 82,040.00 $

41.98 S 26.45 66.12 25.99 123.49 5,017.04 197.80
5,498.87 $

4,541.98 S 885.93
2,976.63 841.44
3,989.06 155,017.04
6,823.88 30500.00
205,545.96 $

4,541.98 $
69.85
300.00 55,017.04 2.980.00 30500.00 93428.87 $

0.00 885.93 2,886.78 841.44 3,689.06 100,000.00 3,843.88
0.00
112117.09

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

-25~

GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30 1995

SCHEDULE "5"

PROGRAM
Transportation, U.S. Department of Federal Highway Administration Through Georgia Department of Transpor1ation

CFDA NUMBER

AMOUNT

20.205

$ =====86='=3,;,;14;;;.04~

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statemen1s and Supplementary Information.
-26-

GEORGIA AGRIRAMA DEVEi QPMf';NT ALJTMORIIY SCHEDULE OF OTHER OPERATING EXPENSES YEAR f"IDEQ JUNE 30 1995
REGULAR OPERATING EXPENSES
Advertising Bank Service Charges Brochure Distribution Freight lnspec:lion Membelships
Regiotration Fees
Subscriptions
CAPITAL OUTLAY Other Costs Inspection

SCHEDULE"6"

4,078.53 903.93
5,784.00 904.58 215.00
1,615.00 757.41 240.00

$

14,498.45

525.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
27