Review report, state of Georgia, Office of the Governor, year ended June 30, 1995

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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA OFFICE OF THE GOVERNOR YEAR ENDED JUNE 30, 1995

OFFICE OF THE GOVERNOR - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXIIlBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

GOVERNMENTAL FUND TYPES

4

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

5

STATEMENTS OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

D

"A" OFFICE OF THE GOVERNOR

10

E

"B" LOTTERY FOR EDUCATION

11

F STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

STATE REVENUE COLLECTIONS FUND

12

G NOTES TO THE FINANCIAL STATEMENTS

13

SUPPLEMENTARY INFORMATION

H COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

32

I COMBINING STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

BUDGET FUND

33

J COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

34

K COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

38

SCHEDULES

SCHEDULES OF APPROVED BUDGET

1

"A" OFFICE OF THE GOVERNOR

39

2

"B" LOTTERY FOR EDUCATION

40

3 CASH AND CASH EQUIVALENTS

41

OFFICE OF THE GOVERNOR - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

4 SCHEDULE OF GOVERNOR'S EMERGENCY FUND

42

5 SCHEDULE OF FEDERAL REVENUES

43

6 SCHEDULE OF OTHER OPERATING EXPENSES

45

7 SUMMARY OF SALARIES, TRAVEL, AND PER DIEM AND FEES

46

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
December 1, 1995

Honorable Zell Miller, Governor Members of the General Assembly of Georgia
and Honorable Timothy P. Burgess, Director Office ofPlanning and Budget
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 G) ofthe Office of the Governor as ofand 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 Office of the Governor.
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, with the exception ofthe matter described in the following paragraph, we are not aware ofany 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.
As more fully discussed in Section II, Findings and Improper or Questioned Costs, material discrepancies were noted in the equipment inventory records of the Office of the Governor. Equipment inventory comprises the General Fixed Assets Account Group. We were unable to determine the effects these discrepancies may have on the financial statements.

95ARL-5

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 (Exhibits H through K and Schedules 1 through 7) is 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:jy 95ARL-5

FINANCIAL STATEMENTS -I-

Caeh and Cash Equivalents (See Schedule)
Accounts Receivable State Appropriation
Federal Fmancial Aaai8tance
Other
Fixed Assets Equipment
Amount to be Provided for Payment of Accrued Compensated Abaenc:es Capital Lease Commitments

OFFICE OF THE GQYERNOR
COMBINED BALANCE SHEET <STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 1995

GOVERNMENTAL FUND TYPES

STATE

REVENUE

BUDGET

COLLECTIONS

FIDUCIARY FUNDTYPE
AGENCY

$

1,989,145.53 $

$ 29.108.071.40
>, 126,848.03
218,128.71
$ 69,453,048.14

0.00 $

64,125.83

Total Assets
1.IABII.IIIES AND FUND EQUITY
Liabilities Accounts Payable Payroll Withholdings Funds Held for Others Compensated Abaenc:es Capital Leases
Total Liabilities
Fund Equity Investment in General FIXed Assets Fund Balances Reserved Federal Financial Assistance Children and Youth Coordinating Council of Georgia Crime Victims Emergency Fund Ford Foundation Contract Georgia Council for the Arts Georgia Emergency Management Agency Disaster Assistance Matching Disaster Assistance Contingency Integrated Resources Plan Contract Nuclear Preparedness Training Grant State Revenue Collections Fund Unreeerved Designated Surplus Regular Lottery for Education
Total Fund Equity
Total Liabilities and Fund Equity

$ 71,442,193.67 $

0.00 $

64,125.83

$ 43,798,437.22 6,528.25
$ 43,804,965.47

$

4,754.92

0.00

3,143,798.16

0.00

537.56

17,566,300.03 5,594,253.31 0.00 13,169.57 $

1,314,383.28 31.37
$ 27,637,228.20 $

$ 71,442,193.67 $

$

64,125.83

$

64,125.83

0.00

0.00

0.00 $

64,125.83

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

EXHIBIT"A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

(Memorandum Only)

JUNE 301 1995

JUNE 301 1994

$

2,053,271.36 $ 14,338,099.36

$ 29,108,071.40 $

1,160,708.69

40,126,848.03

11,426,306.21

218,128.71

784,460.13

$ 69,453,048.14 $ 13,371,475.03

$ 2,641,429.10

$

2,641,429.10 $

2,363,630.87

$ 1,426,358.00 $ 30,223.23
$ 1,456,581.23 $

1,426,358.00 $ 30,223.23
1,456,581.23 $

1,346,643.33 31,302.29
1,377,945.62

$ 216411429.10 $ 114561581.23 $ 7516041329.83 $ 31 1451 I150.88

$
$ 1,426,358.00 30,223.23
$ 1,456,581.23 $

43,798,437.22 $ 6,528.25
64,125.83 1,426,358.00
30,223.23
45,325,672.53 $

11,984,722.72 5,441.75 7,567.94
1,346,643.33 31,302.29
13,375,678.03

$ 2,641,429.10

$

2,641,429.10 $

2,363,630.87

4,754.92 0.00
3,143,798.16 0.00
537.56
17,566,300.03 5,594,253.31
0.00 13,169.57
0.00

12,799,615.76 667.82
2,141,797.73 9,485.86 0.00
0.00 0.00 25,026.22 58,746.10 0.00

$ 2,641,429.10

1,314,383.28 31.37

676,502.49 0.00

$ 30,278,657.30 $ 18,075,472.85

$ 216411429.10 $ 114561581.23 $ 7516041329.83 $ 31 1451 I150.88

-3-

OFFICE OF THE GOVERNOR COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30. 1995

EXHIBITB

FUND BALANCES - JULY 1
Reserved Unreserved
Designated Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable Cash Receipts for the Year
Exhibit "F" Excess of Funds Available over Expenditures
Exhibitc
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services
Year Ended June 30, 1993 Year Ended June 30, 1994 Adjustments to Prior Year's
Accounts Receivable Cash Disbursements for the Year
Exhibit "F" Transfer to Georgia Environmental Facilities
Authority Office of Energy Resources In Accordance with Official Code of Georgia Annotated 50-23-34
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCES - JUNE 30
(To Exhibit "A")

BUDGET

STATE REVENUE COLLECTIONS

TOTALS {Memorandum Onl~}
YEAR ENDED
JUNE 30, 1995 JUNE 30, 1994

$ 15,035,339.49 $
676,502.49 $ 15,711,841.98 $

0.00 $ 15,035,339.49 $ 22,164,551.23

676,502.49

728,571.13

0.00 $ 15,711,841.98 $ 22,893,122.36

$

607,663.63

$

607,663.63 $

397,768.37

$ 1,083,552.75

1,083,552.75

1,013,547.93

27,364,747.91

27,364,747.91

15,327,002.73

$ 27,972,411.54 $ 1,083,552.75 $ 29,055,964.29 $ 16,738,319.03

$

0.00

676,502.49

$

0.00 $

728,571.13

676,502.49

0.00

335,183.34

335,183.34

12,929.12

$ 1,083,552.75

1,083,552.75

1,013,547.93

12,807,575.57

12,807,575.57

0.00

2,227,763.92

2,227,763.92 22,164,551.23

$ 16,047,025.32 $ 1,083,552.75 $ 17,130,578.07 $ 23,919,599.41

s_____ s $ 21,631,220.20

o_.oo_ s 21,631,220.20

15 111,841.ss
1

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-

OFFICE OF THE GOVERNOR STATEMENT OF FUNDS AVAILABLE ANO EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1995

EXHIBITc

FUNDS AVAILABLE
REVENUES
STATE APPROPRIATION
GeneralAppropriation
Amended Appropriation GcNemor's Emergeucy Fund (See Schedule) Budget Adjuatments
Less: l.ap&ed Funds
Total state Appropriation
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED
Artists in Schools Census Data Contracts
Georgia Crime Victims Fund Georgia Department of Children and Youth Services Georgia Department of Education Georgia Department of Transportation Georgia Environmental Facilities Authority Georgia Intern Program Integrated Resources Plan
Atlanta Gas Light Company Georgia Power Company Savannah Electric and Power McFrugal Auto Rental Copying Services Donations Interest Earned Investigation Fees Nuclear Preparedness Training Grant Alabama Power Company Georgia Power Company Sale of Manuals Sale of Photographs Seminar Fees
Total other Revenues Retained
Total Revenues
CARRY-OYER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Federal Financial Assistance Advisory Council on Science and Technology Children and Youth Coordinating Council Crime Victims Emergency Fund Ford Foundation Contract Integrated Resources Plan Contract Nuclear Preparedness Training Grant
Total carry-Over from Prior Year

TOTALS VEAR ENDED JONE 30, 1995 JONE 30, 1994

$ 24.190.854.00 $ 47,574,273.00 45,291,200.00 -43,784,840.00
$ 73,271,487.00 $ 450,000.00
$ - -72~,82~1,487.00 $
$ _1_ 33',-9'-6'-0-'-,844.94 $

21,785,049.00 435,4162.00
3,225,565.00 -300,000.00
25, 1-46,076.00 132,499.00
25,013,577.00
39,230,951.34

$

74,546.52$

270.50

1,493,075.99 31,000.00 147,150.00 47,984.84 65,128.59 68,790.00

0.00 0.00 0.00 0.00 1,696.90 3,000.00
145,352.69 17,374.00

113,979.48 200,789.56
1,642.00 804.00
43,369.00

$---=~2;,4;;5.5,.,954.07 $ $ _2_ 09,_ 238~,286.01 $

136,245.40 447.00
1,666,978.96 21,000.00 70,000.00 38,846.14 0.00 93,385.00
25,000.00 1,726,813.36
123,338.45 3,802.93 0.00 0.00
683,901.98 0.00
114,548.00 224,782.00
0.00 0.00 45,608.75
4,974,697.97
69,219,226.31

$

17,066.41 $ 18,899,135.42

0.00

2,591.07

667.82

0.00

2,141,797.73

866,479.59

9,485.86

60,584.28

0.00

2,285,308.23

58,746.10

50,452.64

$ 2,227,763.92 $ 22,164,551.23

Total Funds Available

$ 211,466,049.93 $ 91,383.m.54

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-

OFFICE OF THE GOVERNOR STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30 1995

EXHIBITc

EXPENDITURES
COST OF OPERATIONS
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
REGULAR OPERATING EXPENSES Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Rents (other than Real Estate) Insurance and Bonding other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing
TRAVEL

TOTALS
VEAR ENDED JONE 30, 1995 JONE 30, 1994

$ 1,668,812.04 $
118,170.32 256,533.33 205,320.13
17,250.00 1,264.12 5,315.88
$--==2,:2:7i2.,665.82 $

$

659.63 $

51,865.69

14,891.48

30,950.89

2,241.72

222,404.82

115.40

16,241.79

339,371.42 $ $ _ _-=:;.;:;.;;;.r.;:.;....;.;;..=..

$ _ _--=:.2...:4,.:9:..:1...1.:...:=0..4.!.. $

1,692,621.55
119,421.74 274,582.47 207,204.00 22,442.00
825.00 3,788.50
2,320,885.26
588.50 53,206.53 15,261.25 42,597.18
6,002.80 220,181.15
545.57 13,572.54
351,955.52
26,106.36

EQUIPMENT Equipment Purchases Lease/Purchase of Equipment Rental of Equipment
COMPUTER CHARGES Software Equipment Equipment Purchases Computer Billings, DOAS
TELECOMMUNICATIONS
PER DIEM, FEES AND CONTRACTS Per Diem and Fees Contracts
Total Cost of Operations
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 Assessments by Merit System
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-

$

4,166.28$

3,473.98

15178.17

$----==2.2.,:8.1. 8.43$

$

611.75 $

1,608.00 50,276.79

$ _ 52,496 ____;:c=.L,;;,;:;. .54$

$ _ ____8;2:=,:2:.7. 1.03$

$

42,684.59$

49,682.50

$ - - - = =9:2:,.3.6:7 . 0 9 $ 2,886,901.37 $ $ _ ___;::,.;;;..:;..:.z.;;.;:;.

0.00 4,067.84 13,700.16 17,768.00
2,015.50 370.75_;
49,789.88 52,176.13 81,Sn.93
43,917.38 52,000.00 95,917.38 2,946,686.58

$ 11,225,720.70 $
761,885.03 1,607,876.89 1,319,602.86
98,325.00 7,219.88
30,361.12 21,no.20
15,072,761.68 $

9,816,103.12
692,370.56 1,530,181.74 1,210,654.21
128,698.00 4,928.00
22,704.50 23,067.81
13,428,707.94

OFFICE OF THE GOVERNOR STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30. 1995

EXHIBIT"C"

EXPENDITURES
REGULAR OPERATING EXPENSES
Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (other than Real Estate) Insurance and Bonding other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing
TRAVEL
MOTOR VEHICLE PURCHASES
EQUIPMENT
Equipment Purchases Lease/Purchase of Equipment Rental of Equipment
COMPUTER CHARGES
other Costs Supplies and Materials Repairs and Maintenance Rents (other than Real Estate) other Operating Expenses (See Schedule)
Software Equipment
Equipment Purchases Per Diem, Fees and Contracts
Per Diem and Fees Contracts Computer Billings, DOAS
REAL ESTATE RENTALS
TELECOMMUNICATIONS
PER DIEM, FEES AND CONTRACTS
Per Diem and Fees Contracts
OTHER
MANSION ALLOWANCE other Costs Paid to Governor Zell Miller
INTERN STIPENDS AND TRAVEL other Costs Stipends - List on File

TOTALS
YEAR ENDED JONE 30, 1995 JONE 30, 1994

$

38,046.93$

373,900.98

116,STT.89

48,290.78

1,267,151.17

53,441.63

174,597.01

41,408.06

122,403.01

$----==2.;,;2;=3.5:,.8..1.:7. .46 $ $ _ 304,94 _...;;.::...:.i.::... 8.16 $

$ _ ___1;7_,9~00.00 $

$

272,895.68 $

17,265.02

39,208.95

329,369.65 $

28,976.26 273,406.14
91,638.96 14,888.15 121,861.88 65,758.05 160,844.94 63,607.73 114,922.07
935,904.18
258,848.17
1,397.00
99,162.83 19,461.50 37,716.38
156 340.71

$

24,619.76 $

20,449.84

480.00

6,004.00

63,694.02

346,658.77

31,618.00 350.00
219,268.12

$ _ _..7..:1..3..:,.1;:c4,,2,:._5=1 $

$ _ _...:9:.:9:...4.:..,.4.:.;5::..7:....:7..:.5.::.. $
$ __..4.1.:9..,3:.0=0=.9=6 $

26,727.97 43,671.58
849.00 7,855.09 46,466.75
268,609.69
10,200.00 632.00
329,773.45
734,785.53
1,019,316.45
327,079.73

$

1,774,025.19 $

13,295,646.98

$ 15,069,672.17 $

1, 133,569.26 28,593,316.86
29,726,886.12

s_ _-=-~~,ooo=~oo=s---~-=-ooo==~oo=

$

225,102.83 $ _ __,226=,.:.358=.8:.!....7

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.
-7-

OFFICE OF THE GOVERNOR
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND
YEAR ENDED JUNE 30 1995

EXHIBITc

EXPENDITURES
OTHER
ART GRANTS OF STATE FUNDS Personal Services Salaries and Wages Employer's Contribution for: F.I.C.A. OtherCosts Supplies and Materials Rents (Other than Real Estate)
Grants to Counties, Cities and Civil Divisions
Other Operating Expenses (See Schedule) Publications and Printing Travel Equipment Equipment Purchases Rental of Equipment Telecommunications Per Diem, Fees and Contracts Per Diem and Fees
ART GRANTS OF NON-STATE FUNDS Personal Services Salaries and Wages Employer's Contribution for: F.I.C.A. Other Costs Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Grants to Counties, Cities and Civil Divisions Other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing Travel Equipment Equipment Purchases Lease/Purchase of Equipment Rental of Equipment Computer Charges Software Equipment Equipment Purchases Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Per Diem and Fees Contracts
HUMANITIES GRANT - STATE FUNDS OtherCosts
Grants to Counties, Cities and Civil Divisions
CHILDREN AND YOUTH GRANTS Other Costs Grants to Counties, Cities and Civil Divisions
JUVENILE JUSTICE GRANTS Other Costs Grants to Counties, Cities and Civil Divisions

TOTALS
VEAR ENDED JONE 30, 1995 JONE 30, 1994

$

70,318.50$

1,041.07

1,309.94 0.00
2,987,799.00
5.00 22.40 421.04

0.00 0.00 785.71

87,854.34

3,149,557.00 $

60,198.89
872.89
4,979.11 316.00
2,650,284.44 472.34 184.30
1,097.90
119.99 50.00 342.69
150,234.45
2,869,153.00

$

57,348.00$

51,145.70

810.00

741.61

17,845.21 0.00
4,976.08 0.00
152,915.00 12,796.95
18.90 460.78
3,717.11

8,752.16 40.00 0.00 50.00
312,625.27 16,308.13
252.22 327.94
2,865.97

0.00

1, 195.00

0.00

262.89

0.00

96.89

1,351.00

62.37

0.00 0.00 1,496.73

14,114.67 3,695.20
866.29

111,118.24 18,924.00

119,983.60 0.00

$

383,n8.00 s _ _ _533~3_85_.9_1 1

s _ _ _60~.ooo-~.o..o... s _ _ _s~1~.aoo~~-oo~

$

290,975.oo s _ _~290=-'-'"""01"""2""'.oo"'-

$ 1,130,622.30 $ _ _1~,2_7~5,~039_.7_5__

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.
-8-

OFFICE OF THE GOVERNOR STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30. 1995

EXHIBIT"C"

EXPENDITURES
OTHER
GEORGIA CRIME VICTIMS ASSISTANCE PROGRAM Other Costs Claims and Indemnities
GRANTS TO LOCAL SYSTEMS Other Costs Grants to Counties, Cities and Civil Divisions
GRANTS - LOCAL EMA Other Costs Grants to Counties, Cities and Civil Divisions
GRANTS - OTHER Other Costs Grants to Counties, Cities and Civil Divisions
GRANTS - CIVIL AIR PATROL_ Other Costs Grants to Counties, Cities and Civil Divisions
GRANTS - DISASTER Other Costs Grants to Counties, Cities and Civil Divisions
TECHNOLOGY GRANTS Other Costs Grants to Counties, Cities and Civil Divisions
Total Other
Total Expenditures
Excess of Funds Available over Expenditures

TOTALS
VEAR ENDED JONE 30, 1995 JONE 30, 1994

$

449,340.11 $

233,785.68

$

684,400.00 $

562,000.00

$

1,092,799.91 $

934,308.60

$

0.00 $

73 na.10

$

60,000.00$

60,000.00

$ 136,490,486.53 $ 19,355,200.49

$

1,999,968.63 $

$ 146,057,030.31 $

$ 184,101 ,302.02 $

27,364,747.91

0.00 26,520,822.40 76,056,TT4.81 15,327,002.73

$ 211,466,049.93 $ 91,383,m.54

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.
-9-

OFFICE OF THE GOVERNOR STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"A" OFFICE OF THE GOVERNOR YEAR ENDED JUNE 30 1995

EXHIBIT "D"

FUNDS AVAILABLE REVENUES
State Appropriation Federal Revenues Other Revenues Retained
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCEFAVORABLE {!,!NFAVORABLE}

$ 71,271,487.00 $ 70,821,487.00 $

154,514,342.00 133,960,844.94

1,668,931.00

2,455,954.07

-450,000.00 -20,553,497.06
787,023.07

$ 227,454,760.00 $ 207,238,286.01 $ -20,216,473.99

0.00

2,227,763.92

2,227,763.92

$ 227,454,760.00 $ 209,466,049.93 $ -17,988,710.07

EXPENDITURES
Cost of Operations Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Mansion Allowance Intern Stipends and Travel Art Grants of State Funds Art Grants of Non-State Funds Humanities Grant State Funds Children and Youth Grants Juvenile Justice Grants Georgia Crime Victims Assistance Program Grants to Local Systems Grants Local EMA Grants Civil Air Patrol Grants Disaster

$ 3,337,267.00 $ 2,886,901.37 $

16,513,999.00

15,072,761.68

2,421,514.00

2,235,817.46

483,177.00

304,948.16

17,900.00

17,900.00

416,814.00

329,369.65

920,564.00

713,142.51

1,023,177.00

994,457.75

477,890.00

419,300.96

16,923,667.00

15,069,672.17

40,000.00

40,000.00

275,000.00

225,102.83

3,149,557.00

3,149,557.00

383,850.00

383,778.00

60,000.00

60,000.00

290,975.00

290,975.00

2,086,005.00

1,130,622.30

500,000.00

449,340.11

684,400.00

684,400.00

1,412,566.00

1,092,799.91

60,000.00

60,000.00

175,976,438.00 136,490,486.53

450,365.63 1,441,237.32
185,696.54 178,228.84
0.00 87,444.35 207,421.49 28,719.25 58,589.04 1,853,994.83
0.00 49,897.17
0.00 72.00 0.00 0.00 955,382.70 50,659.89 0.00 319,766.09
0.00 39,485,951.47

$ 227,454,760.00 $ 182,101,333.39 $ 45,353,426.61

Excess of Funds Available over Expenditures
See Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
-10-

$ 27,364,716.54 $ 27,364,716.54

OFFICE OF THE GOVERNOR STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
"B" LOTTERY FOR EDUCATION YEAR ENDED JUNE 30, 1995

EXHIBIT"E"

FUNDS AVAILABLE REVENUES
State Appropriation

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

____ $ 2,000,000.oo $ 2,000,ooo.oo $

....o...o;_o~

EXPENDITURES Technology Grants
Excess of Funds Available over Expenditures

$ 2,000,000.oo $ 1,999,968.63 $ - - - - -31.3-7

$

31.37 $ ======3=1,;,;3,;.,7

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. - 11 -

OFFICE OF THE GOVERNOR STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"F"

CASH RECEIPTS
STATE REVENUE COLLECTIONS
Buying Service Fees Donations Fines Motor Vehicle Arbitration Fees Teacher Certification Fees
Total Cash Receipts
CASH AND CASH EQUIVALENTS - JULY 1, 1994

$

600.00

475.00

14,551.00

795,697.00

272,229.75

$ 1,083,552.75

0.00

$ 1,083,552.75

DISBURSEMENTS TRANSFERS
To Office of Treasury and Fiscal Services CASH AND CASH EQUIVALENTS - JUNE 30, 1995

$ 1,083,552.75 0.00

$ 1,083,552.75

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. -12 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Office ofthe Governor, an organizational unit of the State of Georgia, is part ofthe executive branch of the government of the State of Georgia. The Chief executive powers are vested in the Governor, who is elected by the qualified voters.
The Office ofthe Governor does not have authority to determine the amount of funding it will receive from the State of Georgia for any given fiscal year. Such authority is vested in the General Assembly of Georgia. The Office ofthe Governor also does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Office of the Governor 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 Office of the Governor uses funds and account groups to report on its financial position and the results ofits operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia. 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. Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPES
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1994-1995. 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.
STATE REVENUE COLLECTIONS FUND - The fund used to account for the collection of specific revenues ofthe State of Georgia as provided by statute or administrative action and the subsequent transfer of such funds to the Office of Treasury and Fiscal Services. This presentation differs from generally accepted accounting principles in that such activity should be included in the General Fund of the governmental organization.

- 13 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
FIDUCIARY FUND TYPE
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.
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.
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 of the assets are included in the General Fixed Assets Account Group.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING 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 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 ofavailable spendable resources. In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund remits its unreserved fund balance (surplus) to the Office of Treasury and Fiscal Services in the subsequent fiscal year.
GOVERNMENTAL FUND TYPES 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 of accounting, 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 collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues that are accrued include primarily State appropriations, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Expenditures are recorded when the
- 14 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPES BUDGET FUND
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. 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 of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures 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 of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.
STATE REVENUE COLLECTIONS FUND The State Revenue Collections Fund is maintained on the Cash Receipts and Disbursements basis of accounting as prescribed or permitted by statutes and regulations of the State of Georgia. This basis of accounting is defined as that method of accounting in which certain revenue and the related assets are recognized when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred. The State Revenue Collections Fund, which should be included in the General Fund in accordance with generally accepted accounting principles, should be maintained on the modified accrual basis of accounting.
FIDUCIARY FUND TYPE AGENCY FUNDS
Agency Funds are custodial in nature and do not measure results of operations or have a measurement focus. The modified accrual basis of accounting is utilized for recognizing assets and liabilities.
BUDGET Appropriation allotments to the Office ofthe Governor are on the basis of budgets submitted by the Office and approved by the Legislature and the Governor. The budgets are adopted on a basis consistent with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia and are compiled in the
- 15 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT"G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET 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 Februaty 22, 1995), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1994-1995.
Overexpenditure ofa budget unit object class, except for the "common object classes", included in the Office of the Governor's final amended budget is in violation of Section 80 of the 1994-1995 Amended Appropriations Act. Expenditures ofno more than 102% of the stated amount for each common object class are authorized by Section 80. However, the total expenditure for the group of common object classes may not exceed the sum of the stated amounts for the separate object classes of the group. The common object classes include Personal Services, Regular Operating Expenses, Travel, Motor Vehicle Purchases, Equipment, Computer Charges, Real Estate Rentals, Telecommunications and Postage.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include demand deposits with banks and other financial institutions and cash management pools that have the general characteristics of demand deposit accounts in that the Office may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty.
INVESTMENTS The Office of the Governor participates in an investment pool managed by the State of Georgia's Office of Treasury and Fiscal Services (OTFS) referred to as the "Georgia Fund l ". The Office does not have any risk exposure from investments in Georgia Fund 1 as the investment policy of OTFS does not provide for investments in derivativesor similar investments through the Georgia Fund 1.
INVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase.
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:
FEDERAL FINANCIAL ASSISTANCE The residual portion ofFederal financial assistance revenues not yet expended or encumbered. This amount is restricted for expenditure in future years. This accounting treatment differs from generally accepted accounting principles in that the unearned portion of Federal financial assistance should be reflected as deferred revenue.

- 16 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE
CRIME VICTIMS EMERGENCY FUND Funds received from penalty assessments for driving under the influence of alcohol or drugs for the purpose ofcompensating innocent victims ofcrime. This amount is restricted for expenditures in subsequent years.
GEORGIA COUNCIL FOR THE ARTS Funds received from the private sector to support the arts and are used primarily to provide matching funds for artists in the schools. This amount is restricted for expenditures in subsequent years in accordance with the wishes ofthe donor.
GEORGIA EMERGENCY MANAGEMENT AGENCY - DISASTER ASSISTANCE DISASTER ASSISTANCE MATCHING AND CONTINGENCY
The residual portion of state funds used to meet federal disaster assistance matching and contingency requirements. These amounts are reserved for expenditures in future years in accordance with contractual agreements related to disaster relief
NUCLEAR PREPAREDNESS TRAINING GRANT Funds received for this program represent contractual agreements between the State of Georgia, Alabama Power Company and Georgia Power Company for emergency response planning and related activities at various nuclear power facilities. This amount is restricted for expenditures in subsequent years in accordance with contractual agreements.
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is remitted to the Office of Treasury and Fiscal Services in the subsequent fiscal year as surplus as follows.
REGULAR - An amount of unexpended general appropriations available to the State for reappropriation in subsequent years.
LOTTERY FOR EDUCATION - An amount of unexpended lottery appropriations available for future reappropriation for Lottery for Education.
COMPENSATED ABSENCES Compensated absences represent obligations of the Office of the Governor 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. Funds are provided in the appropriation of funds each year to the Office ofthe Governor to cover the cost of annual leave paid to terminated employees.
- 17 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES 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 Statements (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, results of operations or changes in 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 Office's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Office'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 AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds ofthe State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds ofany public authority created by the laws of the 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 ofthe State of Georgia.

- 18 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (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 Banlc, the Federal Intermediate Credit Bank, the Central Banlc for Cooperatives, the Farm Credit Banlcs, 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 banlc balances which include demand deposits and/or interest bearing accounts. The banlc 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 Office or by its agent in the Office's name.

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

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$-1450 618 06 S 5 450 679 89 S 200 000 00 $=====0""=0"""0 $ 5250 679 89

CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount of the investment balance as of June 30, 1995, shown below is maintained in an investment pool by the Office of Treasury and Fiscal Services and is not subject to risk categorization.

- 19 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS

Type of Investment

Carrying Amount

Market Value

State Investment Pool

$ 3,503,889.42 $ 3,503,889.42

NOTE 3: OPERATING LEASES

The Office of the Governor has entered into certain agreements to lease real property and equipment which are classified as operating leases. These leases generally contain provisions that, at the expiration date ofthe original term of the lease, the Office of the Governor has the option of renewing the lease on a year-to-year basis. Future minimum commitments for operating leases as of June 30, 1995, are listed below. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised.

Fiscal Year Ending June 30

1996

$ 353,939.16

Expenditures for rental of real property and equipment under operating leases for the year ended June 30, 1995, totaled $1,684,223.41.

NOTE 4: CAPITAL LEASE COMMITMENTS

The Office of the Governor acquires certain property and equipment through multi-year capital leases with varying terms and options. The majority ofthese agreements contain fiscal funding clauses in accordance with O.C.G.A 50-5-64 which prohibits the creation of a debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes.

At June 30, 1995, future minimum commitments under capital leases for equipment are as follows:

-20-

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 4: CAPITAL LEASE COMMITMENTS

Fiscal Year Ending June 30

1996 1997 1998 1999

$ 11,573.16 11,573.55 8,030.61 3,316.00

Total Future Minimum Commitments

$ 34,493.32

Less: Amounts Representing Interest

4,270.09

Present Value of Future Minimum Commitments

$ 30,223 23

NOTE 5: 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

$ 2,363,630.87

Additions Deductions

473,145.74 195,347.51

Balance June 30, 1995

$2,641,429.10

NOTE 6: GENERAL LONG-TERM DEBT

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

- 21 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXI-IlBIT "G"

NOTE 6: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT

Compensated Capital Lease Absences Commitments

Total

Balance July 1, 1994

$ 1,346,643.33 $ 31,302.29 $ 1,377,945.62

Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits Current Year Leases
Deductions

74,049.86 5,664.81

17,550.00 18,629.06

74,049.86 5,664.81 17,550.00 18,629.06

Balance June 30, 1995

$ 1 426,358.00 $ 30,223.23 $ 1,456 581.23

NOTE 7: 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 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 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 Office of the Governor is part of the 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.

- 22-

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE 8: 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. 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 of the State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1995.
NOTE9: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The Office ofthe Governor participates in the Employees' Retirement System of Georgia ("ERS"), a singleemployer, defined benefit plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees ofthe State ofGeorgia. The Office's payroll for the year ended June 30, 1995, for employees covered by ERS was $11,856,207.74. The Office's total payroll for all employees was $13,022,199.24.
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.

-23 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE 9: RETIRE:MENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
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% ofannual compensation paid by the Office of the Governor on behalfof the employee. Under the new plan, member contnbutions consist solely of 1.25% of annual compensation paid by employee. The Office 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 Office amounted to 14.99% 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 $1,923,856.98, of which $1,776,961.27 was made by the Office and $146,895.71 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 ofthe 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 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 ofinflation and merit increases:

-24-

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE9: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation

Age

Percentage

20

9.5%

25

8.5%

30

6.5%

35

6.0%

40 to 65

5.7%

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

- 25 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE 9: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Pension Benefit Obligation
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 determined rates that,
expressed as percentages of annual 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 $256,624,679.00. The Office's contribution was actuarially determined and represented .69% of total contributions made by all participating employers.
Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation.
Trend Information Historical trend information is presented in the financial report ofERS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description The Office ofthe Governor participates in the Georgia Defined Contribution Plan ("GDCP") which is a singleemployer defined contribution plan established by the Georgia General Assembly in July 1993 for the purpose ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Employees' Retirement System Board ofTrustees. The Office's payroll for the year ended June 30, 1995, for employees covered by GDCP was$ 866,243.28. The Office's total payroll for all employees was $13,022,199.24.

- 26-

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 9: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN
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 $64,968.64 which represents 7.50% of covered payroll. These contributions met the requirements of the plan.
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Plan Description The Office ofthe Governor participates in the Teachers Retirement System of Georgia (TRS), a cost-sharing multiple-employer public employee retirement system (PERS) established by the General Assembly of Georgia for the purpose of providing retirement allowances and other benefits for teachers of the State of Georgia. The Office's payroll for the year ended June 30, 1995, for employees covered by TRS was $65,356.50. The Office's total payroll for all employees was $13,022,199.24.
Benefits TRS provides service retirement, disability retirement, and survivor's benefits for its members. A member is eligible for service retirement after the member ( 1) has attained the age of 60 years and has at least ten years ofcreditable service, (2) has at least 30 years of creditable service, regardless of age, or (3) has attained the age of55 years and has at least 25 years of creditable service. For those members with 30 years of service or those age 60 with at least ten years of service, retirement benefits are equal to 2% of the average of the member's two consecutive highest paid years ofservice multiplied by the number ofyears of creditable service up to 40 years. Any member who has between 25 and 30 years of creditable service and is at least 55 years ofage shall receive a benefit which is reduced by the lessor of 1/12 of 7% for each month the member is below age 60, or by 7% for each year or :fraction thereofby which the member has less than 30 years of service. The normal retirement pension is payable monthly for life. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

- 27 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE9: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA

Benefits Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on member's creditable service (minimum of 10 years of service) and compensation up to the date of death or up to the time of disability.

Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.

Contributions Required and Contributions Made Employees of the Office of the Governor who are covered by TRS are required to pay 5% of their gross earnings to TRS. The Institute makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actuary. For fiscal year 1995, the employer contribution rate was 11.81% for covered employees. The interest rate assumption (rate of return on investments) was 7.50%.

Total contributions to the plan made during fiscal year 1995 amounted to $10,986.42, of which $7,718.64 was made by the Office ofthe Governor and $3,267.78 was made by employees. These contributions represented 11.81% (Office) and 5% (employees) of covered payroll.

Funding Status and Progress Pension Benefit Obligation
The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 of the Governmental Accounting Standards Board (GASB) that is required to be used for reporting purposes. The standardized measurement is the actuarial present value of credited projected benefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in
future years as a result of employee services performed to date and is adjusted for the effects of projected
salary increases and any step-rate benefits. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers ofthe PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among similar PERS.

The total unfunded pension benefit obligation ofTRS as of June 30, 1994, which was the latest information available, was as follows:

Total pension benefit obligation

$15,313,743,000.00

Net assets available for benefits, at cost

14,254,785,000.00

Unfunded pension benefit obligation

$ 1.058.958.000.00

- 28 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE9: RETIREMENTPLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Pension Benefit Obligation
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. TRS does not make separate measurements of assets and pension benefit obligation for individual employers.
Funding Policy Total contributions from all employers to TRS for the year ended June 30, 1995, were $565,117,811.00. The Office of the Governor's contribution for the year ended June 30, 1995, of $7,718.64 was actuarially determined and represented .00136% of total contributions made by all participating employers.
Trend Information Historical trend information is presented in the financial report ofTRS 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.
NOTE 10: 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.
NOTE 11: CONTINGENCIES
Amounts received or receivable from granter agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the granter 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 Office of the Governor expects such amounts, if any, to be immaterial to its overall financial position.

-29 -

OFFICE OF THE GOVERNOR NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 11: CONTINGENCIES
Litigation, claims and assessments filed against the Office of the Governor, if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department ofAdministrative 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 ofGeorgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1995.
NOTE 12: OTHER FINANCIAL NOTES
Pursuant to the provisions of the Official Code of Georgia Annotated 50-23-34, all assets, funds, property, contracts, programs, obligations and interests ofthe Office of Energy Resources in existence or effect on July 1, 1994, were transferred to the Georgia Environmental Facilities Authority on that date. A net fund balance adjustment of $12,807,575.57 is recorded on Exhibit "B" of these financial statements to reflect the transfer of cash and fund equity from the Office of the Governor to the Authority.
NOTE 13: BONDING INFORMATION
All employees of the Office of the Governor are bonded under a Public Employees Blanket Bond written by Employers Insurance of Wausau, their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1995. Under this agreement the Public Employee Dishonesty Coverage insures the Office ofthe Governor 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 Office of the Governor to a maximum of $1,000,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment.
All employees ofthe Office ofthe Governor 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 Office of the Governor to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 30-

SUPPLEMENTARY INFORMATION - 31 -

OFFICE OF THE GOVERNOR COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30. 1995

EXHIBIT H"

ASSETS
Cash and Cash Equivalents
Accooots Receivable
State Appropriations
Federal Financial Assistance
Other

"A"
OFFICE OF THE GOVERNOR

"B" LOTTERY FOR
EDUCATION

TOTAL

$

3,126,127.61

$ 3,126,127.61

$ 27,869,071.40 $ 1,239,000.00 $ 29,108,071.40

40,126,848.03

40,126,848.03

218,128.71

218,128.71

$ 68,214,048.14 $ 1,239,000.00 $ 69,453,048.14

Total Assets

$ 71,340,175.75 $ 1,239,000.00 $ 72,579,175.75

LIABILITIES AND FUND EQUITY
Liabilities Cash Overdraft Accounts Payable Payroll Withholdings
Total LiabUities
Food Equity Fund Balances Reserved Federal Financial Assistance Crime Victims Emergency Fund Georgia Council for the Arts Georgia Emergency Management Agency Disaster Assistance Matching Disaster Assistance Contingency Nuclear Preparedness Training Grant Unreserved Designated Surplus Regular Lottery for Education
Total Fund Equity

$ 1,136,982.08 $ 1,1~,982.08

$ 43,696,450.67

101,986.55

43,798,437.22

6,528.25

6,528.25

$ 43,702,978.92 $ 1,238,968.63 $ 44,941,947.55

$

4,754.92

3,143,798.16

537.56

17,566,300.03 5,594,253.31 13,169.57

1,314,383.28 $
$ 27,637,196.83 $

$

4,754.92

3,143,798.16

537.56

17,566,300.03 5,594,253.31 13,169.57

31.37

1,314,383.28 31.37

31.37 $ 27,637,228.20

Total Liabilities and Fund Equity

$ 71,340,175.75 $ 1,239,000.00 $ 72,579,175.75

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-32-

OFFICE OF THE GOVERNOR COMBINING STATEMENT OF CHANGES IN FUND BALANCES <STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"!"

FUND BALANCES - JULY 1
Reserved Unreserved
Designated Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures
Exhibit "J"
DEDUCTIONS
Unreserved Fund Balance (Surplus} Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1994
Adjustments to Prior Year's Accounts Receivable Transfer to Georgia Environmental Facilities Authority
Office of Energy Resources In Accordance with Official Code of Georgia Annotated 50-23-34
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCES - JUNE 30, 1995
(TO Exhibit "H''}

"A" OFFICE OF THE GOVERNOR

"B" LOTTERY FOR
EDUCATION

TOTAL

$ 15,035,339.49 $
676,502.49 $ 15,711,841.98 $

0.00 $ 15,035,339.49
676,502.49 0.00 $ 15,711,841.98

$

607,663.63

27,364,716.54 $

$ 27,972,380.17 $

$

607,663.63

31.37

27,364,747.91

31.37 $ 27,972,411.54

$

676,502.49 $

335,183.34

0.00 $

676,502.49 335,183.34

12,807,575.57 2,227,763.92
$ 16,047,025.32 $

12,807,575.57 2,227,763.92
0.00 $ 16,047,025.32

$ 27,6371196.83 $

31.37 $ 2716371228.20

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-33-

OFFICE OF THE GOVERNOR
COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBIT "J"

FUNDS AVAILABLE
REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation o-nor's Emergency Fund Budget Adjultmenls
Lesa: Lapsed Funds
Total State Appropriation
FEDERAL REVENUES
OTHER REVENUES RETAINED Mists In Schools C-Dllta Contnic:ts
0-Via Crime Victims Fund
o-;ia Department ol Children and Youth Services o-;ia Department ol Education
0-Via Department ol Transpoitation
o-gia Environmental Facilities Authority
0-Via Intern Program
Copying Services Donations Interest Earned Investigation F Nuclear Preparedness Training Grant
Alabama~ Company
0-Via ~ Company
' Sale ol Manuals
Sale Photographs SeminarF-
Total Other R - Retained
TotalR-
~RRY:QVER FROM PRIOR YEAR
Transfer from R - - Fund Balance FedellllFinancialAssistance Children and Youth Coordinating Council Crime Victims Emergency Fund Ford Foundation Contract Nuclear PreperednNs Training Grant
Total Cany-0Yer from Prior Year

"A"
OFFICE OF THE GOVERNOR

"B" LOTTERY FOR
EDUCATION

TOTAL

$

23,690,854.00 $

500,000.00 $ 24,190,854.00

46,074,273.00

1,500,000.00

47,574,273.00

45,291,200.00

45,291,200.00

-43,784,840.00

-43,784,840.00

$

71,271,487.00 $

2,000,000.00 $

73,271,487.00

450,000.00

0.00

450,000.00

$

70,821,487.00 $

2,000,000.00 $

72,821,487.00

$

133,960,844.94

$ 133,960,844.94

$

74,546.52

270.50

$

74,546.52

270.50

1,493,075.99 31,000.00 147,150.00 47,984.84 65,128.59 68,790.00 1,696.90 3,000.00 145,352.69 17,374.00

1,493,075.99 31,000.00 147,150.00 47,984.84 65,128.59 68,790.00 1,696.90 3,000.00 145,352.69 17,374.00

113,979.48 200,789.56
1,642.00 804.00
43,369.00

113,979.48 200,789.56
1,642.00 804.00
43,369.00

$

2,455,954.07

$

2,455,954.07

$ 207,238,286.01 $ 2,000,000.00 $ 209,238,286.01

$

17,066.41

667.82

2,141,797.73

9,485.86

58,746.10

$

2,227,763.92

$

17,066.41

667.82

2,141,797.73

9,485.86

58,746.10

$

2,227,763.92

Total Funds Available

$

209,486,049.93 $

2,000,000.00 $ 211.486.049.93

EXPENDITURES
COST OF OPERATIONS
PERSONAL SERVICES Salaries and Wages Employer's Contributions for: F.I.CA Retirement Health Insurance Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance

$

1,668,812.04

118,170.32 256,533.33 205,320.13
17,250.00 1,264.12
5,315.88

$

2,272,665.82

$

1,668,812.04

118,170.32 256,533.33 205,320.13
17,250.00 1,264.12 5,315.88

$

2,272,665.82

See ac:c:ompenying notes and Independent Accountant's Combined Report on Review ol Financial Statements and Supplementary Information.
-34-

OFFICE OF THE GOVERNOR COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30 1995

EXHIBIT"J"

EXPENPfTURES
COST Of OPERATIONS
REGULAR OPERATING EXPENSES Motor Vehicle~ Supplies and Materials
Repairs and Maintenance Rents (OU- than RI Estate) ll"ISWWICe and Bonding OU-Operating Expenses Duplicating and Rapid Copy Publications and Printing
TRAVEL
EQUIPMENT Equipment Purchases
._....,Purchase of Equipment Rental of Equipment
COMPUTER CHARGES Softwar9 Equipment Equipment Purchases Computer Billings, DOAS
TELECOMMUNICATIONS
PER DIEM, FEES AND CONTRACTS Per Diem and F Contnlcts
Total Coat of Operations
PERSONAL SERVICES
Salaries and Wages Employer's Contributions for:
F.I.C.A. Ratirement Health Insurance Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance AssNsmenls by Merit System
REGULAR QPEMIING EXPEti!SES
Motor Vehicle Expenses Supplies and Materials Repairs a n d ~ Utilities Rents (OU- than Real Estate) Insurance and Bonding
OU-Operating Exsier-
Duplicating and Rapid Copy Publications and Printing
~
MQTQR VEHICLE PURCHASES

"A"
OFFICE OF THE GOVERNOR

e-
LOTTERY FOR
EDUCATION

TOTAL

$

659.63

51,865.69

1 ,891.-48

30,950.89

2,2 1.72

222,0 .82

115.40

16,2 1.79

$

339,371. 2

$

2 911.04

$

,166.28

3,73.98

15178.17

$

22,818. 3

$

611.75

1,608.00 50,276.79

$

52, 96.S

$

82,271.03

$

2,68 .59

9,682.50

$

92,367.09

$

2,886,901.37

$

11,225,720.70

761,885.03 1,607,876.89 1,319,602.86
98,325.00 7,219.88
30,361.12
21,770.20

$

15,072,761.68

$

38,046.93

373,900.98

116,577.89

'48,290.78

1,267,151.17

53, 1.63

17 ,597.01

1,08.06

122,03.01

$

2,235,817. 6

$

304,98.16

$

17,900.00

$

659.63

51,865.68

14,891.-48

30,950.89

2,241.72

222,0 .82

115.40

16,241.79

$

339,371. 2

$

2 ,911.04

$

4,166.28

3,473.98

15,178.17

$

22,818. 3

$

611.75

1,608.00 50,276.79

$

52,96.S

$

82,271.03

$

2,68 .59

9,682.50

$

92,367.09

$

2,886,901.37

$ 11,225,720.70
761,885.03 1,607,876.89 1,319,602.86
98,325.00 7,219.88
30,361.12 21,770.20
$ 15,072,761.68

$

38,046.93

373,900.98

116,577.89

'48,290.78

1,267,151.17

53, 1.63

17 ,597.01

41,08.06

122,03.01

$

2,235,817. 6

$

304,948.16

$

17,900.00

SN accompenylng notes and Independent Accountant's Combined Report on Reviftt of Financial Statements and Supplementary Information.
.35.

OFFICE OF THE GOVERNOR COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30 1995

EXHIBIT J"

EXPENDITURES
EQUIPMENT
Equipment PurciLNNfPurchae d Equipment Rental d Equipment
CQMP\IIER CHARGES
OtharCosts Supplies and Materials Repairs and Maintenance Rents (Other than RI Estate) Other Operating Expenses
soew.r.
Equipment Equipment Purchases
Per Diem, Fees and Contracts Per Diem and Fees Contracts
Computer BiUings, DOAS
REAL ESTATE RENTALS
TELECOMMUNICATIONS
PER DIEM FEES AND CONTRACTS
Per Diem and Fees Contracts
OT.1::1.E.B
MANSION ALLOWANCE
OtherCosts Paid to Gowrnor Zell Miller
INTERN STIPENDS AND TRAVEL OtharCosts Stipends - List on FHe
ART GRANTS OF STATE FUNDS Personal Services Salaries and Wages Employers Contribution for: F.I.C.A.
OtherCosts Supplies and Materials Grants to Counties, Cities and Civil Divisions Other Operating ~ Publicationl and Printing
Trawl Telecommunications
Per Diem, F - and Contracts Per Diem and FNS
ART GRANTS OF NON-STATE FUNDS Personal Services Salaries and Wages
Employers Contribution for:
F.I.C.A.

"A" OFFICE OF THE GOVERNOR

"B" LOTTERY FOR EDUCATION

TOTAL

$

2n,895.68

17,265.02

39,208.95

$ _ _ _3~29~,369~---65~

$

24,619.76

20,449.84

480.00

6,004.00

63,694.02

346,658.77

31,818.00 350.00
219,268.12

$

713,142.51

$

994,457.75

$

419,300.96

$

1,774,025.19

13,295,646.98

$

15106916n.17

$ _ _ _..4..0;.,;0;=00.00

225,102.83

$

70,318.50

1,041.07

1,309.94 2,987,799.00
5.00 22.40 421.04 785.71

87,854.34

$ _ _--=3.a,.1.;4.;;9;.1,5a 57.00

$

57,348.00

810.00

$

2n,895.68

17,265.02

39,208.95

$ _ _ _329-.._._3_6_9_._6_5~

$

24,619.76

20,449.84

480.00

8,004.00

63,694.02

346,658.77

31,818.00 350.00
219,268.12

$

713,142.51

$

994,457.75

$

419,300.96

$

1,774,025.19

13,295.646.98

$ 15.069,672.17

$

40,000.00

$

225,102.83

$

70,318.50

1,041.07

1,309.94 2,987,799.00
5.00 22.40 421.04 785.71

87,854.34

$

3,149,557.00

$

57,348.00

810.00

See accompanying not and Independent Accountant's Combined Report on Review d Fmancial Statements and Supplementary Information.
-36-

OFFICE OF THE GOVERNOR
COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND
YEAR ENDED JUNE 30. 1995

EXHIBIT"J"

EXPENPIJURES
QillEB
ART GRANTS OF NON-STATE FUNDS
OtherCom
Supplies and Materials Rents (Other than Real Estate) Grants to Counties, Cities and Civil Divisions Other Operating Expenses Duplicllting and Rapid Copy Publiclltlons and Printing
Tl'IIWI Computer Charges
Software
Telecommunications
Per Diem, F - and Contracts Per Diem and F Contracts
HUMANITIES GRANT STATE FUNDS OtherCosts
Grants to Counties, Cities and Civil Divisions
CHILDREN AND YOUTH GRANTS OtherCosts
Grants to Counties, Cities and Civil Divisions
JUVENILE JUSTICE GRANTS OtherCosts
Grants to Counties, Cities and Civil Divisions
GEORGIA CRIME VICTIMS ASSISTANCE PROGRAM OtherCosts Claims and Indemnities
GRANTS TO LOCAL SYSTEMS OtherCosts Grants to Counties, Cities and Civil Divisions
GRANTS LOCAL EMA OtherCosts
Grants to Counties, Cities and Civil Divisions
GRANTS CIVIL AIR PATROL OtherCosts Grants to Counties, Cities and Civil Divisions
GRANTS DISASTER OtherCosts
Grants to Counties, Cities and Civil Divisions
TECHNOLOGY GRANTS OtherCosts
Grants to Counties, Cities and Civil Divisions
TotIOther
Total Expenditures
Excess ct Funds Available over Expenditures

"A"
OFFICE OF THE GOVERNOR

"B" LOTTERY FOR
EDUCATION

TOTAL

$

17,845.21

4,976.08

152,915.00

12,796.95

18.90

-460.78

3,717.11

1,351.00 1,496.73

111,118.24 18,924.00

$

383,n8.oo

$

17,845.21

4,976.08

152,915.00

12,796.95

18.90

-460.78

3,717.11

1,351.00 1,496.73

111,118.24 18,924.00

$

383,n8.00

$

60,000.00

$

60,000.00

$

290,975.00

$

290,975.00

$

1,130,622.30

$

1, 130,622.30

$

449,340.11

$

449,340.11

$

684,400.00

$

684,400.00

$

1,092,799.91

$

1,092,799.91

$

60,000.00

$

60,000.00

$ 136,490,486.53

$ 136,490,486.53

$

1,999,968.63 $

1,999,968.63

$

144,057,061.68 $

1,999,968.63 $ 146,057,030.31

$

182,101,333.39 $

1,999,968.63 $ 184,101,302.02

27,364,716.54

31.37

27,364,747.91

$

20914661049.93 $

210001000.00 $ 21114661049.93

See c:c:ompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 37-

OFFICE OF THE GOVERNOR COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 1995

EXHIBIT"K"

Bltm
Consumer Division Marketing Settlement Continental Marketing Association Fitness Life Golden Age Travel Lewis Merchandising EWC/ Mogul Settlement Republic Distributing Corporation Savings Network Settlement Staff Coffee/Flower Fund USA Network Winning Image Promotions

ASSETS/ LIABILITIES JULY 1, 1994

ADDITIONS

DELETIONS

ASSETS/ LIABILITIES JUNE 30, 1995

$

240.00

$

240.00

718.00

718.00

$

6,896.25

4,816.52 $ 11,712.77

500.00

250.00

750.00

1,375.00

1,375.00

63,045.72

63,045.72

800.00

800.00

3,084.42

3,084.42

-5,728.31

3,487.28

4,996.28

-7,237.31

300.00

650.00

950.00

4,800.00

\400.00

5,000.00

1,200.00

$

s _ _ _ 7 567.94 $ 79,066.94 $ 22,509.05

6_4_,1_2_5._83_

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 38-

OFFICE OF THE GOVERNOR SCHEDULE OF APPROVED BUDGET
"A" OFFICE OF THE GOVERNOR
YEAR ENDED JUNE 30. 1995

SCHEDULE 1

FUNDS AVAILABLE
REVENUES
State Appropriation Federal Revenues Other Revenues Retained

ORIGINAL APPROPRIATION

AMENDED APPROPRIATION

GOVERNOR'S EMERGENCY FUND

BUDGET ADJUSTMENTS

TOTAL

$

23,690,854.00 $

46,074,273.00 $

27,519,767.00

-21,684,513.00

12,995,139.00

-11,747,155.00

45,291,200.00 $

-43,784,840.00 $ 148,679,088.00
420,947.00

71,271,487.00 154,514,342.00
1,668,931.00

$

64,205,760.00 $

12,642,605.00 $

45,291,200.00 $ 105,315,195.00 $ 227,454,760.00

EXPENDITURES

Cost of Operations

$

Personal Services

Regular Operating Expenses

Travel

Motor Vehicle Purchases

Equipment

Computer Charges

Real Estate Rentals

Telecommunications

Per Diem, Fees and Contracts

Mansion Allowance

Intern Stipends and Travel

Arts Grants of State Funds
Art Grants or Non-State Funds

Humanities Grant - State Funds

Children and Youth Grants

Juvenile Justice Grants

Georgia Crime Victims Assistance Program

Grants to Local Systems

Grants - Local EMA

Grants - Civil Air Patrol

GEF Flood - Federal Match

GEF Flood a Contingency

Grants - Disaster

3,184,094.00 $ 14,502,386.00
905,428.00 296,444.00
130,596.00 628,555.00 1,052,178.00 344,311.00 36,238,515.00
40,000.00 165,000.00 3,007,357.00 359,004.00 60,000.00 290,975.00 1,112,317.00 100,000.00 684,400.00 1,044,200.00
60,000.00

125,000.00 -139,836.00 -130,950.00
-14,000.00 147,000.00
-348.00 -50,439.00 -11,950.00 -32,176,872.00 $
37,895,000.00 7,000,000.00

$ 104,000.00 142,200.00
45,045,000.00

28,173.00 $ 2,151,449.00 1,647,036.00
200,733.00 17,900.00
139,218.00 292,357.00
21,438.00 145,529.00 12,758,024.00
110,000.00
24,846.00
973,688.00 400,000.00
368,366.00
-37,895,000.00 -7,000,000.00 130,931,438.00

3,337,267.00 16,513,999.00 2,421,514.00
483,177.00 17,900.00
416,814.00 920,564.00 1,023,177.00 477,890.00 16,923,667.00
40,000.00 275,000.00 3,149,557.00 383,850.00
60,000.00 290,975.00 2,086,005.00 500,000.00 684,400.00 1,412,566.00
60,000.00 0.00 0.00
175,976,438.00

$

64,205,760.00 $

12,642,605.00 $

45,291,200.00 $ 105,315,195.00 $ 227,454,760.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-39-

OFFICE OF THE GOVERNOR SCHEDULE OF APPROVED BUDGET
"B" LOTTERY FOR EDUCATION
YEAR ENDED JUNE 30, 1995

SCHEDULE- "2"

FUNDS AVAILABLE REVENUES
State Appropriation
EXPENDITURES Technology Grants

ORIGINAL APPROPRIATION

AMENDED APPROPRIATION

TOTAL

$

500,000.00 $

1,500,000.00 $ ====2,=00=0=,0=0=0.=0=0

$

500,000.00 $

1,500,000.00 $ ===2=,0=0=0,=00=0=.0=0

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 40-

OFFICE OF THE GOVERNOR CASH AND CASH EQUIVALENTS
JUNE 30, 1995

SCHEDULE "3"

NONINTEREST BEARING ACCOUNTS
NationsBank of Georgia, N.A., Atlanta, Georgia
Wachovia Bank of Georgia, Atlanta, Georgia
INTEREST BEARING ACCOUNTS
Funds on Deposit with Office of Treasury and Fiscal Services State Investment Pool

$ -1,752,779.47 302,161.41 $ -1,450,618.06
3,503,889.42

$ 2,053,271.36

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 41 -

OFFICE OF THE GOVERNOR SCHEDULE OF GOVERNOR'S EMERGENCY FUND
YEAR ENDED JUNE 30, 1995
Georgia Council for the Arts - To Assist the Etowah Creative Arts Council with Program Expenses
Children and Youth Coordinating Council - To Assist the Booker T. Washington Community Center with Expanding their Youth Services Program
Georgia Emergency Management Agency - Assist the Dougherty County Board of Commissioners with Covering Costs for Workers at the Disaster Assistance Centers
Georgia Council for the Arts - Phoenix Theatre Academy - Assist with Expenses in Connection with the Ira Aldridge Program for Youth
Criminal Justice Coordinating Council - Wayne County Sheriffs Department - Assist with the Purchases of Equipment and Supplies
Georgia Council For the Arts - Jomandi Productions, Incorporated - Assist with Program Expenses
Georgia Council for the Arts - The Atlanta Boy Chair, Incorporated - Assist with Program Expenses
Children and Youth Coordinating Council -Athens Tutorial Program -Assist with Program Expenses
Georgia Council for the Arts - Atlanta Symphony Orchestra - to Help with Expenses in Connection with National Broadcasts on the Public Broadcasting Service
Children and Youth Coordinating Council - Chatham-Savannah Family Resource Center - Assist with Renovation of the Gymnasium
Office of Planning and Budget - Help with Expenses of the Commission on the Preservation of the Capitol
Georgia Council for the Arts - Louise Runyon Barth Dance Company - Assist with Expenses in Connection with their Fourth Annual Concert
Georgia Council for the Arts - Assist Savannah Onstage with Program Expenses Human Relations Commission - Georgia Commission on the Holocaust - Operating
Expenses Children and Youth Coordinating Council - Assist the Chattahoochee Nature Center
with Expenses in Connection with their "LEAVES" Program Children and Youth Coordinating Council -Assist the Juvenile Court of Newton
County with Expenses in Connection with Project Adventure Georgia Council for the Arts - Assist the Brunswick Civic Orchestra with
Operating Expenses Georgia Council for the Arts - Assist Historical Jonesboro with Expenses in
Connection with Painting "Stately Oaks" Georgia Emergency Management Agency - State Share of Disaster Grants for
FY 1995 Georgia Council for the Arts - DeKalb Chamber of Commerce - Assist with
Expenses in Connection with the International Choral Festival Georgia Council for the Arts - The McClendon School of Dance - Assist with
Program Expenses Georgia Council for the Arts - Georgia Women of Achievement - Assist with
Program Expenses Georgia Emergency Management Agency - Provide State's Share of Federal
Disaster Grants
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-42-

SCHEDULE "4"

$

4,700.00

10,000.00

14,000.00 20,000.00
2,500.00 15,000.00 15,000.00 15,000.00 25,000.00
7,500.00 10,000.00
1,000.00 10,000.00 30,000.00 10,000.00
5,000.00 4,000.00 10,000.00 44,895,000.00 17,500.00 10,000.00 10,000.00 150,000.00

$ 45,291,200.00

OFFICE OF THE GOVERNOR SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1995

PROGRAM

CFDA NUMBER

Consumer Products Safety Commission, U. S.

ATV Undercover Visits

Direct

N/A

Education, U. S. Department of Vocational Education - State Councils Direct Drug-Free Schools and Communities Through Georgia Department of Human Resources

84.053 84.186

Energy, U.S. Department of Nuclear Energy, Reactor Systems Development and Technology Direct

81.095

Equal Employment Opportunity Commission, U.S. Employment Discrimination - State and Local Anti-Discrimination Agency Contacts Direct

30.001

Federal Emergency Management Agency Hazardous Materials Training Program for Implementation of the Superfund Amendment and Reauthorization Act (Sara) of 1986 (Sara Title Ill Training Program) Direct Community Assistance Program Direct CMI Defense - State and Local Emergency Management Institute Direct State Disaster Preparedness Grants Direct Disaster Assistance Direct Hazard Mitigation Assistance Direct Hurricane Program Direct Earthquake Hazards Reduction Grants Direct Emergency Management Institute Field Training Institute Direct State and Local Management Assistance Other Assistance Direct

83.011 83.105
83.503 83.505 83.516 83.519 83.520 83.521
83.528
83.531

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

-43 -

SCHEDULE "5"

AMOUNT

$

3,214.73

225,157.35 28,172.37

618,314.91

45,651.85

94,806.49 60,000.00
1,687,986.13 37,679.06
115,610,624.82 1,549,649.36 89,689.64 26,527.37
121,746.76
511,650.46

OFFICE OF THE GOVERNOR SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1995

PROGRAM
Federal Emergency Management Agency Facilities and Equipment Direct
Housing and Urban Development, U. S. Department of Fair Housing Assistance Program - State and Local Direct
Justice, U.S. Department of Juvenile Justice and Delinquency Prevention Allocation to States Direct Criminal Justice Statistics Development Through Georgia Department of Community Affairs Justice Research, Development, and Evaluation Project Grants Direct Crime Victim Assistance Direct Crime Victim Compensatio~ Direct Drug Control and System Improvement - Formula Grant Direct Drug Control and System Improvement - Discretionary Grant Direct
Labor, U.S. Department of Job Training Partnership Act Direct
National Foundation on the Arts and the Humanities Promotion of the Arts - Arts in Education Direct Promotion of the Arts - State and Regional Program Direct Promotion of the Arts - Folk Arts Direct
Transportation, U.S. Department of State and Community Highway Safety Direct

CFDA NUMBER
83.532
14.401
16.540 16.550 16.560 16.575 16.576 16.579 16.580
17.250
45.003 45.007 45.015
20.600

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-44 -

SCHEDULE "5"

AMOUNT

$

9,000.00

74,890.93

1,215,777.73 50,000.00
320,586.09 1,639,149.17
74,372.43 8,805,587.78
38,462.00
208,466.82
58,100.00 595,454.48
31,000.00
129,126.21
$ 133,960,844.94

COST OF OPERATIONS
Oipping Service Film Processing Freight, Express and storage Publicity Registration Fees Rewards Subscriptions and Dues

OFFICE OF THE GOVERNOR
SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30 1995

REGULAR OPERATING EXPENSES
Cleaning Service Clipping Service Court Costs Film Processing Freight, Express and storage Investigative Expense Meals - Prisoners Publicity Registration Fees Subscriptions and Dues Substitute Teacher

COMPUTER CHARGES
Registration Fees Subscriptions and Dues

ART GRANTS OF STATE FUNDS Subscriptions and Dues
ART GRANTS OF NON-STATE FUNDS
Film Processing Freight, Express and storage Publicity Registration Fees Subscriptions and Dues

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

-45-

SCHEDULE "6"

$

1,976.85

23,046.13

12,235.90

1,712.65

13,224.00

4,000.00

166,209.29

$ 222,404.82

$

80.00

317.85

407.60

4,970.83

15,767.30

1,437.75

1,931.24

2,272.59

53,439.68

93,632.82

339.35

$ 174 597.01

$

3,434.00

2,570.00

$ ===6..0.0,.,4==00=

$====5.=00=

$

10.82

249.48

733.65

748.00

11,055.00

$ 12,796.95

OFFICE OF THE GOVERNOR SUMMARY OF SALARIES, TRAVEL, AND PER DIEM AND FEES
YEAR ENDED JUNE 30, 1995

SCHEDULE '7"

BUDGET FUND
Cost of Operations Regular Computer Charges Art Grants of State Funds Art Grants of Non-State Funds

SALARIES

TRAVEL

PER DIEM AND FEES

$ 1,668,812.04 $ 11,225,720.70
70,318.50 57,348.00

24,911.04 $ 304,948.16
421.04 3,717.11

42,684.59 1,774,025.19
31,618.00
87,854.34
111,118.24

$ 13,022,199.24 $ 333,997.35 $ 2,047,300.36

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 46-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

OFFICE OF THE GOVERNOR SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status offindings disclosed in the review report for the year ended June 30, 1994, is summarized below:

Audit Control Number

Status of Finding

422-94-01 422-94-02
422-94-03

Corrective Action Implemented Office ofEnergy Resources Transferred to
Georgia Environmental Facilities Authority. (See Notes to the Financial Statements - Note 12) Corrective Action Implemented

CURRENT YEAR

EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Monitoring ofReimbursements Financial Statements Audit Control Number 422-95-01

The Professional Standards Commission is attached to the Office of the Governor for administrative purposes only. The Commission has entered into grant and contract agreements with certain colleges and universities ofthe University System of Georgia and private institutions with the intent of improving the level of skills of future teachers. The grants were funded with Lottery for Education funds and the contracts with general State funds appropriated by the General Assembly of Georgia. As the grantor/contractor agency, the Commission has certain responsibilities which include, but are not limited to, ensuring that all grant/contract funds are expended according to the stipulations in the grant/contract agreement and that Lottery for Education funds are expended in accordance with Official Code of Georgia Annotated Section 50-27-13.

In the year under review, the Commission awarded $2,000,000.00 to certain units of the University System of Georgia in Lottery for Education grants, which, in accordance with the grant agreements, were required to be paid to recipients on a reimbursement basis. These grants also stipulated specific grantee matching and in-kind contribution requirements. Based on our review of the Commission's control procedures, recipients were not required to submit invoices or other documentation to show that matching funds had been provided and that funds had been spent in accordance with the grant agreement and applicable laws prior to the issuance of checks by the Commission to the institutions.

In addition the Commission entered into separate agreements with both units of the University System and private institutions to provide State funds to purchase hardware and software to be used for the purpose of improvement ofthe student's ability to integrate computers and related technology in the classroom. These contracts also stipulated specific matching, in-kind contribution requirements and that funding be on a reimbursement basis. Based on our review of the Commission's control procedures, the Commission did not require submission of documentation to show compliance with contract provisions and applicable laws prior to the issuance of checks by the Commission to the institutions.

OFFICE OF THE GOVERNOR SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Monitoring ofReimbursements Financial Statements Audit Control Number 422-95-01
In order to meet the responsibilities of a grantor/contractor agency, the Commission should develop and implement policies and procedures to ensure that expenditures are in accordance with State laws and that all terms ofthe grant and contract agreements are met and documented before checks are issued to the recipients ofthe funds.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Budgeting ofExpenditures Financial Statements Audit Control Number 422-95-02
The Professional Standards Commission is attached to the Office of the Governor for administrative purposes only. In the year under review, the Commission expended $847,814.53 in State funds under the Object Class Per Diem, Fees and Contracts. Ofthis amount, $622,052.82 consisted of contracts with public and private colleges to purchase hardware and software for use in the colleges' school of education. Funds budgeted under Object Class - Per Diem, Fees and Contracts normally contemplate that goods and/or services will be received by the State Agency under such contracts. However, under terms of the aforementioned contracts, the Professional Standards Commission simply provided funds to public and private colleges and received no goods or services in return.
The above expenditures of $622,052.82 appear to be grants to the colleges instead of contracts for goods and services. Ifthe Professional Standards Commission intended for these expenditures to be grants, funds should have been budgeted and expended under the Object Class - Regular Operating Expenses, Grants to Counties, Cities and Civil Divisions instead ofPer Diem, Fees and Contracts. In the future, funds should be budgeted and accounted for in the appropriate Object Class.
In addition, attention of the Commission is called to Opinion 87-15 of the Attorney General of the State of Georgia. This opinion relates to whether a State agency may make a grant to a nonstate entity and states, in part, as follows:
"...It is fundamental to the checks and balances of this government that an expenditure of state funds by an agency requires not only an appropriation to the agency but also a clear general law power for the agency to make the expenditure. An appropriation may not supply the statutory power... "

OFFICE OF THE GOVERNOR SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
EXPENDITURES/I..IABILITIES/DISBURSEMENTS Improper Budgeting ofExpenditures Financial Statements Audit Control Number 422-95-02
The opinion further states:
"In the recent words of the Supreme Court of Georgia:
"Regardless of the worthiness of the cause, absent a clear state constitutional or statutory authority providing for the expenditure of state funds, such funds cannot be disbursed... "
Official Code of Georgia Annotated Sections 20-2-981 through 20-2-989.1, created the Commission and provides for the Commission to set the standards for certification and for the preparation of prospective educators in Georgia. These laws do not provide the Commission with the statutory authority to provide "grants" to private colleges in the State of Georgia.
The Commission should consult with the Attorney General of Georgia prior to providing future "grants" to private colleges.
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequacies in Operation of Property Management System Major/Nonmajor Programs Audit Control Number 422-95-03
For the year under review, our examination included a review of the procedures utilized by the Office of the Governor in maintaining their State Property System. This review consisted of testing the system for compliance with Federal and State equipment laws and regulations. Procedures were also completed to verify the accuracy ofthe total equipment inventory valuation contained in the inventory records, which comprises the General Fixed Assets Account Group.
Of the 68 equipment items selected for physical inspection to test the accuracy of the Office's general fixed asset records, the following deficiencies were noted at the Georgia Emergency Management Agency, which is administratively attached to the Office of the Governor:
(1) 5 items could not be located.
(2) 2 items had no serial number or other identifiable number in the inventory listing to aid in locating the items.

OFFICE OF THE GOVERNOR SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

CURRENT YEAR

GENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequacies in Operation ofProperty Management System Major/Nonmajor Programs Audit Control Number 422-95-03

The Office of the Governor is required to maintain equipment inventories in accordance with provisions of 0MB Circular A-102 and the State Property System Manual. The discrepancies identified above were caused by the Office's failure to follow guidelines for maintaining equipment inventories.

The Office should establish the necessary procedures to ensure that equipment inventories are maintained in accordance with provisions of 0MB Circular A-102 and the State Property System Manual.

Federal Financial Assistance Programs Affected and CFDA Numbers:

84.053 81.095 83.011
83.516 83.531 16.540 16.560

Vocational Education - State Councils Nuclear Energy, Reactor Systems
Development and Technology Hazardous Materials Training Program for
the Implementation of the Superfund Amendment and Reauthorization Act (SARA) of 1986 Disaster Assistance State and Local Management Assistance - Other Assistance Juvenile Justice and Delinquency Prevention Allocation to States Justice Research, Development, and Evaluation Project Grants