Audit report, state of Georgia, Department of Transportation, year ended June 30, 1994

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

AUDIT REPORT STATE OF GEORGIA DEPART~NT OF TRANSPORTATION YEAR ENDED JUNE 30, 1994

DEPARTMENT OF TRANSPORTATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

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

5

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

6

D STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

8

E STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

STATE REVENUE COLLECTIONS FUND

9

F NOTES TO THE FINANCIAL STATEMENTS

10

SUPPLEMENTARY INFORMATION

G COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

22

SCHEDULES

1 SCHEDULE OF APPROVED BUDGET

23

2 CASH AND CASH EQUIVALENTS

24

3 SCHEDULE OF FEDERAL REVENUES

25

4 SCHEDULE OF OTHER REVENUES RETAINED

26

5 SCHEDULE OF OTHER OPERATING EXPENSES

27

6 SCHEDULE OF EXTRAORDINARY EXPENDITURES

28

7 RECONCILIATION OF SALARIES AND TRAVEL

29

DEPARTMENT OF TRANSPORTATION - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
APPENDIX CONSTRUCTION ALLOTMENTS SCHEDULE OF CONSTRUCTION ALLOTMENTS FROM BEGINNING OF DEPARTMENT OF TRANSPORTATION TO JUNE 30, 1994

SECTION I FINANCIAL

CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174
TAX RATIO (404) 656-0494

~.epartm.eut nf J\units
254 WASHINGTON STREET. SW ROOM 214
J\thmht, CIDeorgia 30334-8400
December 2, 1994

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe State Transportation Board Honorable Wayne Shackelford, Commissioner
and Honorable Arthur A Vaughn, Treasurer Department of Transportation
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying financial statements (Exhibits A through F) of the Department of Transportation as of and for the year ended June 30, 1994. These financial statements are the responsibility of the Department's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, these financial statements were prepared on 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.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position (statutory basis) of the Department of Transportation as of June 30, 1994, and the results of its operations (statutory basis) for the year then ended, on the basis of accounting described in Note 1.
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplementary information (Exhibit G and Schedules 1 through 7 and Appendix - Construction Allotments) is presented for purposes of additional analysis and is not a required part of the financial
94ARL-1X

statements ofthe Department of Transportation. Such information, except for the Appendix - Construction Allotments, on which we express no opinion, has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.
Respectfully submitted,

CLV:bh 94ARL-IX

Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

DEPARTMENT OF TRANSPORTATION COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS
JUNE 30, 1994

ASSETS
Cash and Cash Equivalents (See Schedule)
Accounts Receivable State Appropriation Federal Financial Assistance Other
Inventories
Fixed Assets Equipment
Amount to be Provided for Payment of Accrued Compensated Absences
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities Cash Overdraft Accounts Payable Contracts Payable Accrued Salaries Payroll Withholdings Unearned Revenue Funds Held for Others Compensated Absences
Total Liabilities
Fund Equity Investment in General Fixed Assets Fund Balances Reserved Motor Fuel Tax Funds Allotments to Complete Construction Designated Appropriation Balance Inventories Unallocated State Revenue Collections Fund Unreserved Designated Surplus
Total Fund Equity
Total Liabilities and Fund Equity

GOVERNMENTAL FUND TYPES

STATE

REVENUE

BUDGET

COLLECTIONS

$_ _.:a..1,p,.;:0=2-=-o:...o:=o
$ 818,666,464.34 677,636,846.63 247,815.307.09
$1,744,118.618.06 $ 13,207,911.50

$1,757,326.529.56 $=====1=0=2=0=0=0

$ 10,369,177.33 17,287,213.40
865,589,385.45 6,459,232.38 1,522,770.74 6,798,787.33
$ 908.026.566.63

$ 560,119,106.88 273,327,555.15 13,207,911.50 1,757,465.72 $
887,923.68
$ 849.299,962.93 $

1,020.00 1 020.00

$1,757.326,529.56 $

1 020.00

The notes to the financial statements are an integral part of this statement. - 2-

EXHIBIT "A"

FIDUCIARY FUND TYPE AGENCY

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

(Memorandum Only)

JUNE 30. 1994

JUNE 30. 1993

$45.545.632.41

$ 45.546.652.41 $ 60.811.278.57

$ 818,666,464.34 $ 815,576,660.90 677,636,846.63 757,050,108.06 247.815.307.09 252.781.910.69
$1.744.118.618.06 $1.825.408.679.65
$ 13.207 .911.50 $ 11.034.205.16

$140. 666,074.88

$ 140.666,074.88 $ 131,300,583.82

$21.695,221.20 $ 21. 695 I 221. 20 $ 19,868.318.53

$45.545,632.41 $140,666.074.88 $21,695.221.20 $1.965.234.478.05 $2.048,423,065.73

$45,545,632.41 $45,545,632.41

$ $21,695,221.20

10,369,177.33 $ 17,287,213.40 865,589,385.45
6,459,232.38
1,522,770.74 6,798,787.33
45,545,632.41
21,695,221.20

0.00 17,692,845.31 989,511,293.22
6,357,296.56
1,620,247.56 5,338,834.98
39,006,722.41 19,868,318.53

$21,695,221.20 $ 975,267,420.24 $1,079,395,558.57

$140,666,074.88

$ 140,666,074.88 $ 131,300,583.82

$140,666,074.88

560,119,106.88 273,327,555.15
13,207,911.50 1,757,465.72 1,020.00

575,541,804.13 246,833,909.14
11,034,205.16 1,796,997.79
0.00

887,923.68

2,520,007.12

$ 989,967,057.81 $ 969,027,507.16

$45,545,632.41 $140,666,074.88 $21,695,221.20 $1,965,234,478.05 $2,048,423,065.73

- 3-

4

DEPARTMENT OF TRANSPORTATION COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "8"

BUDGET

STATE
REVENUE COLLECTIONS

TOTALS (Memorandum Only)
YEAR ENDED
JUNE 30, 1994 JUNE 30, 1993

FUND BALANCES - JULY 1

Reserved Unreserved
Designated
Surplus

$835,206,916.22 $ 2,520,007.12

0.00 $835,206,916.22 $847,713,625.09

2,520,007.12

835,775.58

$837,726,923.34 $

0.00 $837,726,923.34 $848,549,400.67

ADDITIONS

Adjustments to Prior Year's Accounts Payable
Cash Receipts for the Year Exhibit "E"
Excess of Funds Available over Expenditures Exhibit "C"
Reimbursement of Prior Year's Expenditures
DEDUCTIONS

$ 60,487,553.10 $

$ 60,487,553.10 $ 19,082,383.71

1,020.00

1,020.00

0.00

789,732,615.41

789,732,615.41 821,129,852.65

6,770.29

6,770.29

91,517.83

-------------- -------------- -------------- --------------

$850,226,938.80
--------------

$-------1-,0--2-0-.-0-0

$850,227,958.80
--------------

$840,303,754.19
--------------

Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fi seal Services Year Ended June 30, 1992
Year Ended June 30, 1993 Adjustments to Prior Year's
Accounts Receivable Inventories Pricing Adjustment
Refund of Prior Year's Revenue Excess Cash Participation
Reserved Fund Balance Carried Over from Prior Year as Funds Available

$

0.00

2,520,007.12

620,696.39 157,870.43

148,409.05

835,206,916.22

$838,653,899.21

$

0.00 $

0.00

2,520,007.12

835,775.58

620,696.39 157,870.43

2,527,892.87 32,968.79

148,409.05

15,969.19

835,206,916.22 847,713,625.09
-------------- --------------

$838,653,899.21 $851,126,231.52

FUND BALANCES - JUNE 30

(To Exhibit "A")

$849,299,962.93 $

1,020.00 $849,300,982.93 $837,726,923.34

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

DEPARTMENT OF TRANSPORTATION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 1

FUNDS AVAILABLE REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation Governor's Emergency Fund
Less: Lapsed Funds Total State Appropriation
FEDERAL REVENUES (See Schedule) OTHER REVENUES RETAINED (See Schedule)
Total Revenues CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Motor Fuel Tax Funds Allotments to Complete Construction Designated Appropriation Balance Inventories Unallocated General Funds Pending Litigation St. Simons Island Beach Renourishment Program Total Carry-Over from Prior Year
Total Funds Available

TOTALS
JONE 3o, 199H4AR ENDJOENOE 3o, 1993

$ 437,628,277.00 $ 422,658,023.00

14,923,158.00

-2,453,932.00

0.00

20,000.00

$ 452,551,435.00 $ 420,224,091.00

0.62

136,338.69

$ 452,551,434.38 $ 420,087,752.31

350,118,718.72 530,087,661.91

187,759,148.20 131,696,361.02 $___9__9_0...,.4..2_~9.,...301.30 $1,081,871,775.24

$ 575,541,804.13 $ 494,374,141.73

246,833,909.14 338,394,657.86

11,034,205.16

8,318,753.27

1,796,997.79

4,608,384.14

0.00

968,107.55

0.00

1,049,580.54

835,206,916.22 $ 847,713,625.09

$1,825,636,217.52 $1,929,585,400.33

EXPENDITURES

PERSONAL SERVICES

Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Health Insurance Personal Liability Insurance Unemplorment Compensation Insurance Workers Compensation Insurance Assessments by Merit System Drug Testing

$ 151,765,667.32 $ 150,561,247.13

10,853,664.10 24,493,948.63 18,704,449.86 3,483,232.00
132,085.00 4,389,434.00
670,893.51 5 016.50

10,843,211.36 24,414,056.90 18,389,220.71
1,843,820.00 128,086.00
3,171,260.00 683,141.78 5 451. 00

REGULAR OPERATING EXPENSES

214,498,390.92 $ 210,039,494.88

Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Rents (Other than Real Estate) Insurance and Bonding Claims and Indemnities Other Operating Expenses (See Schedule) Extraordinary Expenditures (See Schedule) Duplicating and Rapid Copy Publications and Printing

$ 11,861,249.36 $ 12,353,227.43

29,831,913.69

29,086,035.61

1,296,195.36

1,129,784.88

3,475,178.73

3,240,387.60

654,322.48

475,131.26

1,087,381.13

1,847,626.86

48,400.55

18,115.03

1,007,793.56

704,853.72

139,835.96

0.00

210,578.66

213,813.26

632,198.92

606,222.93

TRAVEL MOTOR VEHICLE PURCHASES EQUIPMENT

$_-=-a.5..z0..,:.2...4..;5;..,.0. 48.40 $ $_--=....1...,,-4=2-=5-,-4- 25.61 $ $_--=2~,-9"6-'9-,~227.47 $

49,675,198.58 1,226,710.15 2,361,784.63

Equipment Purchases Lease/Purchase of Equipment Rental of Equipment

$ 10,124,680.73 $ 10,088,053.64

29,732.35

17,914.11

81,251.28

63,312.09

10,235,664.36 $ 10,169,279.84

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

- 6-

DEPARTMENT OF TRANSPORTATION
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND
YEAR ENDED JUNE 30 1 1994

EXHIBIT "C" Page 2

EXPENDITURES

TOTALS

YEAR ENDED

JONE 30 1 1994

JONE 30 1 1993

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

$

223,379.11 $

164,059.79

B85,670.30

1,035,626.30

5,853.00

3,286.00

46,549.00

1,078.50

803,929.71

363,852.84

2,793,728.10

976,774.14

671,781.00 25,000.00 204 272.07

3,341,672.33 0.00
208,025.63

REAL ESTATE RENTALS

$_-''""5"",-6-6--0-.,..1. 62.29 $ $_ 1,302,876.00 ___,:..z...::;-"-"'-.a..; $

6,094,375.53 1,311,351.45

TELECOMMUNICATIONS

$_ 2,030,0 __,:a...,..;.___...._ 62.60 $

1,897,287.44

PER DIEM. FEES AND CONTRACTS

Per Diem and Fees Contracts

$ 25,217,116.56 $ 27,844,592.36

9,425,677.08

8,927,095.03

$ 34,642,793.64 $ 36,771,687.39

CAPITAL OUTLAY

Equipment Equipment Purchases
Per Diem, Fees and Contracts Contracts

$ 2,211,712.82 $

476,219.63

694.548.935.59 771.481 ,655.49

$ 696,760.648.41 $ 771,957,875.12

OTHER

CAPITAL OUTLAY - AIRPORT APPROACH AID AND OPERATIONAL IMPROVEMENTS

Capital Outlay

Per Diem, Fees and Contracts

Contracts

$

1,021,555.15 $

1.108.999.20

CAPITAL OUTLAY - AIRPORT DEVELOPMENT Capital Outlay Per Diem, Fees and Contracts Contracts

$ 1.167.500.00 $

850,000.00

MASS TRANSIT GRANTS Other Costs Grants to Counties, Cities and Civil Divisions

$ 9,764,248.01 $ 10,911,503.60

HARBOR MAINTENANCE/INTRA-COASTAL WATERWAYS MAINTENANCE AND OPERATIONS
Per Diem, Fees and Contracts Contracts

$

679,999.25 $

679 999.87

SPOILAGE AREA ACQUISITION, CLEARING, PREPARATION AND DIKE RECONSTRUCTION
Per Diem, Fees and Contracts Contracts

$ 3,500,000.00 $ 3,400,000.00

Total Other

$ 16,133,302.41 $ 16,950,502.67

Total Expenditures

$1,035,903,602.11 $1,108,455,547.68

Excess of Funds Available over Expenditures

789.732.615.41 821.129.852.65

$1,825.636.217.52 $1.929,585,400.33

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

DEPARTMENT OF TRANSPORTATION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30. 1994

EXHIBIT "D"

FUNDS AVAILABLE
REVENUES
State Appropriation Federal Revenues Other Revenues Retained
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance
EXPENDITURES
Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Capital Outlay Capital Outlay - Airport Approach Aid
and Operational Improvements Capital Outlay - Airport Development Mass Transit Grants Harbor Maintenance/Intra-Coastal Waterways
Maintenance and Operation Spoilage Area Acquisition, Clearing,
Preparation and Dike Reconstruction
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCE -
FAVORABLE (UNFAVORABLE)

$ 452,551,435.00 $ 452,551,434.38 $

-0.62

569,648,588.51 350,118,718.72 -219,529,869.79

197,883,494.21 187,759,148.20 -10,124,346.01

$1,220,083,517.72 $ 990,429,301.30 $ -229,654,216.42

1,263,224,061.20 835,206,916.22 -428,017,144.98

$2,483,307,578.92 $1,825,636,217.52 $ -657,671,361.40

$ 229,719,857.00 $ 86,650,437.49 1,703,090.00 3,569,641.45
14,824,265.04 8,235,068.92 1,345,574.00
2,261,865.00 102,632,226.17 2,004,725,251.20

214,498,390.92 $ 15,221,466.08

50,245,048.40

36,405,389.09

1,425,425.61

277,664.39

2,969,227.47

600,413.98

10,235,664.36

4,588,600.68

5,660,162.29

2,574,906.63

1,302,876.00

42,698.00

2,030,062.60

231,802.40

34,642,793.64

67,989,432.53

696,760,648.41 1,307,964,602.79

1,024,100.00 1,167,500.00 20,149,250.84

1,021,555.15 1,167,500.00
9,764,248.01

2,544.85 0.00
10,385,002.83

680,000.00

679,999.25

0.75

4,619,451.81
----------------

3,500,000.00
----------------

-----1-,1--1-9-,4--5-1-.8--1

$2,483,307,578.92 $1,035,903,602.11 $1,447,403,976.81
================ ---------------- ----------------

$ 789,732,615.41 $ 789,732,615.41
================ ======-====-----

The notes to the financial statements are an integral part of this statement.
- 8-

DEPARTMENT OF TRANSPORTATION STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30, 1994

STATE REVENUE COLLECTIONS
Airport License Fees CASH AND CASH EQUIVALENTS - JULY 1, 1993

CASH RECEIPTS

DISBURSEMENTS TRANSFERS
None Reported CASH AND CASH EQUIVALENTS - JUNE 30, 1994

EXHIBIT "E"

$ 1,020.00 0.00
$ 1,020.00

$

0.00

1,020.00

$ 1,020.00

The notes to the financial statements are an integral part of this statement. - 9-

DEPARTMENT OF TRANSPORTATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Department of Transportation, an organizational unit of the State of Georgia, is part of the executive branch of the government of the State of Georgia. The State Transportation Board has general control and supervision of the Department. The Board is composed of one member from each congressional district elected by a majority vote of the members of the House of Representatives and Senate of the General Assembly of Georgia whose respective districts are within such congressional district. The Commissioner of Transportation is the chief executive officer of the Department and is selected by a majority vote of the members of the State Transportation Board. The powers and duties of the Department of Transportation include planning, designating, improving, managing, controlling, constructing and maintaining a highway system for the State of Georgia.
The Department of Transportation 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 Department also does not have authority to retain unexpended General State appropriations (surplus) for any given fiscal year (See Note 1 for Motor Fuel Tax Funds). Accordingly, the Department of Transportation is included within the State of Georgia reporting entity for financial reporting purposes because ofthe significance ofits legal, operational and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 ofthe Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING The Department of Transportation 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 of Georgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. 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 1993-1994. 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.

- 10-

DEPARTMENT OF TRANSPORTATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
GOVERNMENTAL FUND TYPES
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.
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 historical cost. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided in the financial statements. However, the Department of Transportation does maintain depreciation records for certain equipment items in the State cost accounting system for management purposes and as a method for accumulating total costs associated with federal grants for billing purposes.
It is the policy ofthe Department of Transportation not to include public domain ("infrastructure") general fixed assets in the financial statements.
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 current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e., expenditures) in net current assets.

- 11 -

DEPARTMENT OF TRANSPORTATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPES BUDGET FUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they become both 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 be used 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. Further, the modified accrual basis of accounting calls for expenditures, other than accrued interest of general long-term debt, to be recorded when the related fund liability is incurred.
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.

- 12 -

DEPARTMENT OF TRANSPORTATION NOTES TO THE FINANCIAL STATE1\1ENTS
JUNE 30, 1994

EXIilBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING FIDUCIARY FUND TYPE AGENCY FUNDS
The Agency Funds are custodial in nature in that assets are equally offset by liabilities to other funds, governmental units, or individuals. The modified accrual basis of accounting is utilized for recognizing assets and liabilities.
BUDGET Appropriation allotments to the Department of Transportation are on the basis of a budget submitted by the Department and approved by the Legislature and the Governor. The budget is compiled in the same manner as all State departments and expenditures are classified by budget unit object classes as provided in Act No. 608 ofGeorgia Laws 1993 (as approved April 28, 1993) and amended by Act No. 622 of Georgia Laws 1994 (as approved February 8, 1994), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1993-1994.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include demand deposits with banks and other financial institutions and cash management pools that have the general characteristics of demand deposit accounts in that the Department may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. Cash and Cash Equivalents also include short-term, highly liquid investments with maturity dates within three months of the date acquired.
INVENTORIES Inventories of supplies are valued at weighted average cost on the Combined Balance Sheet (Statutory Basis). The consumption method is used to account for the use of inventories. Under the consumption method, the costs ofinventories are recorded as expenditures when consumed rather than when purchased.
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:
MOTOR FUEL TAX FUNDS The Department ofTransportation, in accordance with the Official Code of Georgia Annotated Section 322-2, has "...control and supervision ofall funds appropriated for public road work by the State and activities incident thereto from the net proceeds of motor fuel tax, as provided in Article III, Section IX, Paragraph VI(b) ofthe Constitution of Georgia... ". The amounts shown under the heading "Motor Fuel Tax Funds" on the Combined Balance Sheet (Statutory Basis), Exhibit "A", are retained by the Department of Transportation for the purposes of public road work and are not subject to lapse.

- 13 -

DEPARTMENT OF TRANSPORTATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE STATE REVENUE COLLECTIONS FUND The balance ofrevenues collected but not transmitted to the Office of Treasury and Fiscal Services at fiscal year end. These funds are required by the Official Code of Georgia Annotated to be transferred to the Office of Treasury and Fiscal Services and are not available for use by the Department.
COMPENSATED ABSENCES Compensated absences represent obligations of the Department 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 Department to cover the cost of annual leave paid to terminated employees.
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" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations 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 the accompanying financial statements in order to provide an understanding ofchanges in the Department's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand.
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, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia.

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DEPARTMENT OF TRANSPORTATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (2) Bonds, bills, notes, certificates of indebtedness 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 of the bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia the option of exempting demand deposits from the collateral requirements.
CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk.
Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Department or by its agent in the Department's name.
Category 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the Department's name.
Category 3 - Amounts collateralized with securities (at market value) held by the financial institution or by its trust department or agent, but not in the Department's name, and amounts uncollateralized.

- 15 -

DEPARTMENT OF TRANSPORTATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS Included on Schedule "2" of this report is an amount of $35,273,979.22 for Contractors' Retainage Escrow Deposits which have not been included in the custodial credit risk categorization. Official Code of Georgia Section 32-2-77 provides that the Department shall not be liable to the contractors for the failure of the escrow agents (See Note 9).

Cash Deposits

Carrying Amount

Bank Balance

Risk Categories

2

3

S-40 824 125 72 S 18 039 879 30 S 3 346 181 86 S 825 562 50 S 13 868 134 94

CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount shown below is maintained in an investment pool by the Office of Treasury and Fiscal Services.

Type of Investment State Investment Pool

Carrying Amount

Market Value

$40,727,621.58 $40,727,621 58

NOTE 3: OPERATING LEASES

The Department ofTransportation has entered into certain agreements to lease real property acquired through its Right-of-Way Acquisition Program. Future minimum commitments due under these operating leases are not reflected due to the uncertainty of the duration of these leases as each lease contains provisions for cancellation after a thirty day written notice by either party.

NOTE 4: CHANGES IN GENERAL FIXED ASSETS

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

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

Balance July 1, 1993
Additions Deductions
Balance June 30, 1994

$131,300,583.82 15,524,502.12 6,159.011.06
$140,666 074 88

- 16 -

DEPARTMENT OF TRANSPORTATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1994, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

Balance July 1, 1993
Additions Annual Leave Earned and Utilized (Net)
Salaries Salary Related Fringe Benefits (*)
Balance June 30, 1994

$19,868,318.53
285,161.45 1,541,741.22 $21.695,221.20

(*) Includes related fringe benefits applicable to compensated absences at July 1, 1993.

NOTE 6: 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 of their salary until future years. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights ofthe State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value ofthe deferred account of each participant. Financial information relative to the plan is presented in the financial report ofthe State Personnel Board - Merit System of Personnel Administration for the year ended June 30, 1994.

NOTE 7: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA The Department of Transportation participates in the Employees' Retirement System of Georgia, a singleemployer, defined benefit pension plan. The Employees' Retirement System of Georgia was established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. The Retirement System is funded through a combination of employee and employer contributions. Employees are required to contribute a graduated percentage of annual compensation. Employer contributions are for a specified percentage of active member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Department contributed $24,493,948.63 to the Employees' Retirement System of Georgia. Participation in the Retirement System is not segregated by employee groups of individual governmental units and the Department has no further liability under the retirement system other than future

- 17 -

DEPARTMENT OF TRANSPORTATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE7: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA employer contributions as established for each fiscal year. Information relative to the plan description, funding status and historical trends is presented in the financial report ofthe Employees' Retirement System of Georgia for the year ended June 30, 1994.
GEORGIA DEFINED CONTRIBUTION PLAN The State of Georgia also provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Employees' Retirement System of Georgia referred to above through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% of their gross salary, with no matching contribution by the employer. A member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of 65 with the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994.
NOTE 8: 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 offorfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 9: CONTRACTORS' RETAINAGE ESCROW DEPOSITS
The Department of Transportation, in accordance with the Official Code of Georgia Annotated Section (O.C.G.A.) 32-2-76, has provided for the maintenance of escrow accounts in an amount at least equal to the amount ofthe retainage authorized in contracts for the purpose of constructing, improving or maintaining any road, highway or bridge. These accounts have been established in lieu ofthe retained amounts provided for in O.C.G.A. Section 32-2-75. These accounts are maintained in the name ofthe contractor and are in the form of certificates of deposits with the bank designated by the contractor, subject to the Department's approval.
- 18 -

DEPARTMENT OF TRANSPORTATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 9: CONTRACTORS' RETAINAGE ESCROW DEPOSITS
As interest on the certificates of deposits held in escrow becomes due, it is collected by the escrow agent and paid to the contractor. After certification by the Sate Highway Engineer that the work has been satisfactorily completed and is accepted in accordance with the contract plans and specifications, the funds are withdrawn from the escrow account by the Department, based on written approval of the Department's Treasurer, and paid to the contractor. In the event of a failure of the escrow agent to perform under the escrow agreement, the Department of Transportation or the State of Georgia shall not be liable to the contractor in accordance with O.C.G.A. Section 32-2-77.
Due to the historically low probability of a contractor default and subsequent collection of deposited funds by the Department of Transportation, all activity regarding the contractors' retainage deposits is reflected on Exhibit "G". "Combined Statement of Changes in Assets and Liabilities - Fiduciary Fund Type - Agency Funds".
NOTE IO: RELATEDPARTIES
The Georgia Department ofTransportation, the Georgia Highway Authority and the State Tollway Authority are considered to be related parties due to certain common management personnel. The Commissioner of the Department of Transportation serves as one of three members of both Authorities and the Treasurer of the Department of Transportation also serves as the Secretary-Treasurer ofboth Authorities.
NOTE 11: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Department expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against the Department of Transportation, if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self- insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994.
NOTE 12: BONDING INFORMATION
Mr.Wayne Shackelford, Commissioner, is bonded in the amount of $100,000.00 with the Fidelity and Deposit Company of Maryland, their Bond No. 30440159, on which premium has been paid to October 31, 1994.

- 19 -

DEPARTMENT OF TRANSPORTATION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 12: BONDING INFORMATION
The Commissioner and all employees of the Department of Transportation 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, 1994. Under this agreement the Public Employee Dishonesty Coverage insures the Department to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance of Duty Coverage insures the Department to a maximum of $100,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
All employees ofthe Department ofTransportation are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium was paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Department to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 20 -

SUPPLEMENTARY INFORMATION - 21 -

DEPARTMENT OF TRANSPORTATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 1994

EXHIBIT "G"

ASSETS/

ASSETS/

LIABILITIES

LIABILITIES

FUND

JUNE 30, 1993 ADDITIONS

DELETIONS JUNE 30, 1994

------------- --------- --------- -------------

Department of Transportation Liability Trust Fund

$ 7,953,445.14 $ 291,566.23

$ 8,245,011.37

Escrow Agreements - Contractors' Retainage 31,053,277.27 14,914,020.88 $ 8,666,677.11 37,300,621.04
------------- ------------- ------------- -------------

$39,006,722.41 $15,205,587.11 $ 8,666,677.11 $45,545,632.41

See notes to the financial statements.

- 22 -

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

DEPARTMENT OF TRANSPORTATION SCHEDULE OF APPROVED BUDGET
YEAR ENDED JUNE 30, 1994

ORIGINAL APPROPRIATION

AMENDED APPROPRIATION

BUDGET ADJUSTMENTS

SCHEDULE "1" TOTAL

$ 437,628,277.00 $14,923,158.00

$ 452,551,435.00

560,756,086.00

$ 8,892,502.51 569,648,588.51

17,281,000.00

180,602,494.21 197,883,494.21

$1,015,665,363.00 $14,923,158.00 $ 189,494,996.72 $1,220,083,517.72

0.00

1,263,224,061.20 1,263,224,061.20

$1,015,665,363.00 $14,923,158.00 $1,452,719,057.92 $2,483,307,578.92

EXPENDITURES

Personal Services

$

Regular Operating Expenses

Travel

Motor Vehicle Purchases

Equipment

Computer Charges

Real Estate Rentals

Telecommunications

Per Diem, Fees and Contracts

Capital Outlay

Capital Outlay - Airport Approach

Aid and Operational Improvements

Capital Outlay - Airport Development

Mass Transit Grants

Harbor Maintenance/Intra-Coastal

Waterways Maintenance and

Operations

Spoilage Area Acquisition, Clearing,

Preparation and Dike Reconstruction

229,719,857.00

$ 229,719,857.00

59,346,345.00

$ 27,304,092.49

86,650,437.49

1,497,590.00

205,500.00

1,703,090.00

1,000,000.00

2,569,641.45

3,569,641.45

5,224,774.00

9,599,491.04

14,824,265.04

5,167,513.00

3,067,555.92

8,235,068.92

1,343,274.00

2,300.00

1,345,574.00

2,235,365.00

26,500.00

2,261,865.00

47,353,845.00

55,278,381.17 102,632,226.17

645,616,019.00 $14,923,158.00 1,344,186,074.20 2,004,725,251.20

1,024,100.00 1,167,500.00 14,289,181.00

5,860,069.84

1,024,100.00 1,167,500.00 20,149,250.84

680,000.00 0.00

4,619,451.81

680,000.00 4,619,451.81

$1,015,665,363.00 $14,923,158.00 $1,452,719,057.92 $2,483,307,578.92
================ ============= ================ ================
See notes to the financial statements.
- 23 -

DEPARTMENT OF TRANSPORTATION CASH AND CASH EQUIVALENTS JUNE 30, 1994

SCHEDULE "2"

DEMAND DEPOSITS
Bank South, N. A., Atlanta, Georgia
Citizens Trust Bank, Atlanta, Georgia
NationsBank of Georgia, N. A., Atlanta, Georgia
Southtrust Bank of Georgia, N. A., Atlanta, Georgia
Trust Company Bank, Atlanta, Georgia
Wachovia Bank of Georgia, Atlanta, Georgia
INTEREST BEARING ACCOUNTS
Citizens Trust Bank, Atlanta, Georgia
Certificate of Deposit No. 12040742 Purchase Date: June 9, 1994 - Maturity Date: July 9, 1994
Southtrust Bank of Georgia, N. A., Atlanta, Georgia
Certificate of Deposit No. 4481263 Purchase Date: June 6, 1994 - Maturity Date: July 6, 1994
Contractors' Retainage Escrow Deposits (List on File)
Funds on Deposit with Office of Treasury and Fiscal Services State Investment Pool

$-41,892,137.93 -4,274,672.02 4,081,958.76 2,453,404.61 -3,727,898.94 1,211,386.23 $-42,147,959.29
$ 920,966.49
402,867.08 35,273,979.22 40,727,621.58 77,325,434.37
$ 35,177,475.08
==============

See notes to the financial statements.

- 24 -

DEPARTMENT OF TRANSPORTATION SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1994

PROGRAM
Energy, U. S. Department of State Energy Conservation Petroleum Violation Escrow Funds Through Office of the Governor
Transportation, U. S. Department of Highway Planning and Construction Direct
Railroad Safety Direct
Federal Transit Capital Improvement Grants Direct
Federal Transit Technical Studies Grants Direct
Federal Transit Capital and Operating Assistance Formula Grants Direct
Public Transportation for Nonurbanized Areas Direct
State and Community Highway Safety Direct

CFDA NUMBER
81. 041
20.205 20.301 20.500 20.505
20.507 20.509 20.600

SCHEDULE "3"

AMOUNT

$

60,000.00

339,632,413.51 0.46
2,175,253.00 1,464,510.96

3,388,522.22 3,393,446.39
4,572.18

$350,118,718.72

See notes to the financial statements.

- 25 -

DEPARTMENT OF TRANSPORTATION SCHEDULE OF OTHER REVENUES RETAINED
YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

Aircraft Rental
Cash Participation on Projects Construction Georgia State Financing and Investment Commission Interdepartmental (D.O.T.) Contract Earnings Maintenance
Commission from Pay Telephones
Damage Recoveries
Fines and Forfeitures From Counties - State's Portion of Fines
Garage Services to State Agencies
Insurance Recoveries
Overweight Assessment Citations
Rental Income
Sales Billboard Permits and Advertising Logos Maps, Manuals and Other Documents Materials Removal Overweight/Oversized Load Truck Permits Right-of-Way Permits Striping County Roads Surplus Property Utility Permits Vending Machine Concessions - Rest Areas
Signal Installation
Testing Services
Utility Refunds
Witness Fees

$ 430,972.50

$ 30,653,839.72 130,300,000.00 1,966,280.01 3,723,919.80
--------------

166,644,039.53 118,555.10

211,083.37

6,930.81 26,149.11 107,329.37 5,074,602.86 49,294.27

$ 390,472.25 100,371.25
1,549,513.82 6,641,245.00 5,049,842.84
217,247.80 886,064.43
87,308.00 142,545.41
--------------

15,064,610.80 7,738.15

6,290.72

9,568.19

1,983.42
--------------

$187,759,148.20

See notes to the financial statements.

- 26 -

DEPARTMENT OF TRANSPORTATION SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30. 1994
REGULAR OPERATING EXPENSES
Aerial Surveys Appraisals Commercial Drivers Licenses Court Reporter Services, Transcripts and Other Court Costs Film Processing Freight, Express and Storage Landfi 11 Expense Legal Advertising Medical Screening of Employees Notary Fees Registration and Training Fees Relocation of Employees Subscriptions and Dues Tests and Analyses To 11 Expense Tree and Sign Removal
COMPUTER CHARGES
Registration and Training Fees

SCHEDULE "5"

$

1,585.70

390,373.83

4,353.41

37,474.30

602.04

85,744.09

42,272.32

42,169.06

1,536.21

782.38

177,321.66

5,640.28

111,783.23

97,607.30

3,060.75

5,487.00

$1,007,793.56

$ 46,549.00

See notes to the financial statements.

- 27 -

DEPARTMENT OF TRANSPORTATION SCHEDULE OF EXTRAORDINARY EXPENDITURES
YEAR ENDED JUNE 30. 1994
REGULAR OPERATING EXPENSES
Internal Revenue Service Penalty for Failure to File Information Returns in the Proper Format
March First, Incorporated Settlement of Property Damage Suit
Reeves Construction Company Settlement of Construction Contract Suit
United States Environmental Protection Agency Penalty for Violation of Clean Water Act

SCHEDULE "6"

$

707.56

40,000.00

80,901.92

18,226.48

$ 139,835.96

See notes to the financial statements.

- 28 -

DEPARTMENT OF TRANSPORTATION RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1994

SCHEDULE "7"

Totals per Annual Supplement Accruals June 30, 1993 June 30, 1994 Adjustment Prior Year's Accounts Payable
Totals per Audit Report

SALARIES

TRAVEL

$151,663,731.50 $ 1,414,730.67

-6,357,296.56 6,459,232.38

-159.21 10,789.94
64.21

$151,765,667.32 $1,425,425.61

See notes to the financial statements.

- 29 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

DEPARTMENT OF TRANSPORTATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status of findings disclosed in the audit report for the year ended June 30, 1993, is summarized below:

Audit Control Number

Status of Finding

484-93-01 484-93-02

See Audit Control Number 484-94-01 Corrective Action Implemented

PRIOR YEAR\CURRENT YEAR

GENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Incorrect Fund Source Coding on Equipment Inventory Records Highway Planning and Construction (CFDA 20.205) Major Program Audit Control Number 484-94-01

The audit report for the year ended June 30, 1993, noted deficiencies in the controls over general fixed assets. For the year under review, our examination included a review of the internal accounting controls utilized by the Department of Transportation in maintaining their State Property System. This review consisted of testing the system for compliance with Federal and State equipment laws and regulations. In addition, procedures were completed to verify the accuracy of the total equipment inventory valuation contained in the inventory records, which comprises the General Fixed Assets Account Group. Our examination revealed that current year equipment purchased with federal funds were coded on the equipment inventory records with a State fund source.

The Department ofTransportation should follow established procedures to ensure that equipment inventories are maintained in accordance with provisions of0MB Circular A-102 and the State Property System Manual.

CURRENT YEAR

CASH MANAGEMENT Failure to Adhere to Terms ofthe Cash Management Improvement Act Agreement Federal Financial Assistance Highway Planning and Construction (CFDA 20.205) Major Program Audit Control Number 484-94-02

For the year under review, the Department of Transportation failed to adhere to terms of the Cash Management Improvement Act Agreement between the State of Georgia and the U. S. Department of Treasury. The Department did not follow the average clearance funding technique for payroll as approved in the Agreement which is in violation of 31 CFR 205 .8(c)(1) and (2).

DEPARTMENT OF TRANSPORTATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
CASH MANAGEMENT Failure to Adhere to Terms of the Cash Management Improvement Act Agreement Federal Financial Assistance Highway Planning and Construction (CFDA 20.205) Major Program Audit Control Number 484-94-02
The Department of Transportation should implement internal control procedures to ensure compliance with terms of the Cash Management Improvement Act Agreement as required in 31 CFR 205.8(c)(l) and (2).

APPENDIX CONSTRUCTION ALLOTMENTS

COUNTY
Appling Atkinson Bacon Baker Baldwin Banks Barrow Bartow Ben Hi 11 Berrien Bibb Bleckley Brantley Brooks Bryan Bulloch Burke Butts Calhoun Camden Candler Carroll Catoosa Charlton Chatham Chattahoochee Chattooga Cherokee Clarke Clay Clayton Clinch Cobb Coffee Colquitt Columbia Cook Coweta Crawford Crisp Dade Dawson Decatur DeKalb Dodge Dooly Dougherty Douglas Early Echols Effingham Elbert Emanuel Evans Fannin Fayette Floyd Forsyth Franklin Fulton Gilmer Glascock Glynn Gordon Grady Greene

DEPARTMENT OF TRANSPORTATION SCHEDULE OF CONSTRUCTION ALLOTMENTS FROM BEGINNING OF DEPARTMENT OF TRANSPORTATION (UNAUDITED)
TO JUNE 30 1 1994

STATE FUNDS
-----------

FEDERAL FUNDS
-------------

OTHER FUNDS
-----------

TOTAL FUNDS
-----------

$

38,570,389.06 $

9,387,083.59 $

1 , 923,209.47 $

49,880,682.12

29,170,854.91

5,713,384.73

135,824.57

35,020,064.21

26,392,032.72

5,704,330.52

740,080.91

32,836,444.15

9,062,638.19

3,504,386.55

128,982.51

12,696,007.25

40,102,741.03

18,311,241.77

1,214,512.83

59,628,495.63

40,010,922.73

19,183,013.52

334,856.16

59,528,792.41

38,741,220.71

38,504,626.86

480,579.11

77,726,426.68

93,478,561.22

100,656,898.85

1,063,900.05

195,199,360.12

16,606,973.12

6,281,946.74

222,904.58

23,111,824.44

24,064,119.27

13,114,650.46

189,611.09

37,368,380.82

113,956,811.51

134,802,248.36

4,011,035.89

252,770,095. 76

16,237,604.73

9,714,335.12

467,748.58

26,419,688.43

33,891,963.21

11,520,920.78

465,143.71

45,878,027.70

23,672,930.99

13,187,825.84

752,790.56

37,613,547.39

29,680,383.51

68,623,865.02

597,761.95

98,902,010.48

57,565,141.92

48,382,090.92

1,063,756.76

107,010,989.60

44,358,676.38

12,405,587.40

945,702.77

57,709,966.55

16,995,342.38

16,929,824.87

236,813.59

34,161,980.84

13,004,847.12

6,811,222.42

306,669.18

20,122,738.72

32,073,333.73

77,156,914.97

3,547,881.62

112,778,130.32

29,466,132.04

13,222,694.31

275,780.78

42,964,607.13

91,157,182.49

82,299,012.81

1,505,378.20

174,961,573.50

29,609,544.44

62,490,461.72

1,246,568.23

93,346,574.39

21,912,009.48

7,446,933.33

1,055,314.97

30,414,257.78

179,304,949.82

330,771,168.89

74,639,537.39

584,715,656.10

14,199,453.65

8,240,578.15

201,877.50

22,641,909.30

27,536,279.82

15,975,730.35

616,016.60

44,128,026.77

63,071,450.90

148,535,295.55

6,062,315.90

217,669,062.35

55,757,463.14

39,501,408.74

1,534,913.25

96,793,785.13

6,547,316.97

2,667,072.13

1,284,386.97

10,498,776.07

117,773,691.91

259,020,307.28

16,585,847.65

393,379,846.84

14,465,887.42

10,686,175.78

267,780.34

25,419,843.54

229,562,578.27

351,093,412.59

30,987,107.01

611,643,097.87

38,914,437.46

15,790,230.82

1 , 041 , 512. 61

55,746,180.89

47,077,474.69

26,278,914.62

1,047,257.06

74,403,646.37

37,637,816.40

34,431,511.39

841,795.39

72,911,123.18

13,053,888.35

17,621,154.60

351,366.04

31,026,408.99

45,027,903.26

48,020,911.98

1,063,613.66

94,112,428.90

20,038,538.69

10,763,025.36

736,502.28

31,538,066.33

35,822,376.67

34,726,609.20

1,085,144.44

71,634,130.31

20,106,983.18

38,257,251.84

369,383.92

58,733,618.94

18,542,424.63

12,312,595.82

326,900.49

31,181,920.94

62,128,725.35

27,020,602.82

938,231.46

90,087,559.63

245,895,916.77

573,332,007.10

19,021,146.41

838,249,070.28

32,206,810.90

10,594,036.93

383,938.79

43,184,786.62

25,855,014.44

41,003,676.82

325,848.67

67,184,539.93

60,482,677.64

48,194,548.71

7,752,896.26

116,430,122.61

47,979,330.82

73,083,016.53

1,759,749.09

122,822,096.44

31,116,919.32

10,677,415.51

919,005.90

42,713,340.73

6,207,063.94

4,602,731.34

1,509.53

10,811,304.81

25,312,278.93

16,233,863.19

1,241,422.63

42,787,564.75

40,974,348.82

10,072,238.78

1,563,984.78

52,610,572.38

32,441,763.24

29 , 121 , 258. 11

975,360.08

62,538,381.43

17,468,554.98

9,132,197.49

2,152,968.92

28,753,721.39

28,196,170.24

35,765,210.50

535,492.43

64,496,873.17

54,524,473.49

32,262,714.60

594,880.87

87,382,068.96

81,342,484.56

73,157,281.94

5,902,277.08

160,402,043.58

47,847,941.10

59,772,427.40

535,217.73

108,155,586.23

35,488,129.51

39,522,203.65

680,403.77

75,690,736.93

570,013,942.45 1,594,336,079.20

178,551,714.15 2,342,901,735.80

67,287,206.31

17,128,224.62

429,409.69

84,844,840.62

9,170,629.69

3,018,351.03

25,010.49

12,213,991.21

64,655,172.53

112,578,849.26

19,441,778.10

196,675,799.89

62,600,761.99

42,772,594.95

629,390.76

106,002,747.70

37,068,607.68

20,297,979.62

1,057,860.19

58,424,447.49

17,252,948.40

23,388,420.72

458,593.07

41,099,962.19

COUNTY
Gwinnett Habersham Hall Hancock Haralson Harris Hart Heard Henry Houston Irwin Jackson Jasper Jeff Davis Jefferson Jenkins Johnson Jones Lamar Lanier Laurens Lee Liberty Lincoln Long Lowndes Lumpkin Macon Madison Marion McDuffie McIntosh Meriwether Miller Mitchell Monroe Montgomery Morgan Murray Muscogee Newton Oconee Oglethorpe Paulding Peach Pickens Pierce Pike Polk Pulaski Putnam Quitman Rabun Randolph Richmond Rockdale Schley Screven Seminole Spalding Statewide Stephens Stewart Sumter Talbot Taliaferro Tattnall

DEPARTMENT OF TRANSPORTATION SCHEDULE OF CONSTRUCTION ALLOTMENTS
FROM BEGINNING OF DEPARTMENT OF TRANSPORTATION ( UNAUD !TED l
TO JUNE 30. 1994

STATE FUNDS
-----------

FEDERAL FUNDS
-------------

OTHER FUNDS
-----------

TOTAL FUNDS
-----------

$ 248,253,246.06 $ 290,667,950.40 $

57,868,080.06

43,650,662.06

113,153,974.98

80,529,335.27

14,429,471.35

7,253,686.98

43,990,075.16

32,615,609.99

47,144,198.57

24,726,620.90

24,759,586.50

18,291,171.61

16,836,594.09

8,333,873.19

38,438,109.19

62,081,481.58

76,040,822.63

45,257,705.62

8,903,423.77

8,626,426.76

46,571,788.76

25,513,173.86

16,826,141.82

5,699,493.83

20,770,423.83

9,948,720.33

28,168,580.50

12,765,841.24

18,312,441.28

8,043,600.31

12,731,422.77

7,959,177.16

25,427,240.34

6,178,265.36

13,516,566.55

6,328,067.09

7,591,664.60

6,870,864.55

42,819,680.44

48,094,364.23

15,529,045.87

10,405,f40.12

29,898,698.67

46,469,756.63

14,423,604.72

6,749,452.82

16,973,008.48

11,643,272.20

81,983,843.59

93,567,932.58

25,380,988.25

13,636,728.36

21,377,625.70

8,562,452.00

22,661,650.07

9,348,858.46

11,515,239.06

5, 092, 093. 19

24,027,152.44

20,524,523.61

18,853,217.18

37,965,213.24

32,069,928.81

20,201,892.23

10,931,271.33

5,162,623.67

28,881,520.73

18,331,386.74

35,535,851.54

91,326,081.08

11,523,428.59

4,437,375.57

29,966,308.15

28,695,202.99

48,385,588.86

20,536,451.50

109,889,351.50

129,925,207.64

36,749,835.58

38,745,193.51

43,781,696.52

28,896,729.20

14,671,614.68

4,413,116.12

43,697,594.05

45,690,778.78

30,062,247.60

33,281,698.74

41,642,509.07

26,641,266.22

19,237,200.39

12,877,429.00

28,613,139.30

5,229,588.77

44,982,890.71

26,683,660.85

16,999,601.83

5,769,007.52

23,892,009.35

10,018,710.96

5,527,383.39

4,534,251.15

32,672,056.19

16,953,969.63

20,950,095.93

4,785,649.53

145,494,504.17

149,339,081.48

36,121,035.43

48,379,827.77

6,419,171.68

962,306.41

27,159,097.41

12,861,904.94

18,443,670.58

7,453,081.45

29,074,314.08

28,851,347.38

28,441,227.60

27,779,756.38

25,343,822.49

18,985,783.73

16,838,359.82

19,443,333.20

32,819,374.24

14,374,447.75

15,851,094.78

6,906,059.04

7,518,794.25

9,348,881.15

28,540,719.25

18,444,633.55

4,321,257.09 $ 1,312,053.74 6,020,714.59
550,010.98 585,751.48
2,107,526.29 2,366,677.59
724,774.34 530,727.92
1,339,681.61 6,523,086.62
811,394.33 393,807.13
393,159.22 836,475.01 288,048.67 198,003.84 116,882.62 171,001.20
67,056.57 1,090,808.78
218,627.64 3,169,680.65
102,538.12 156,827.19
3,529,575.33 498,558.75
5,489,417.09 440,194.90
126,584.00 255,529.35 779,377.48 920,940.42
421,956.42 696,401.88
737,986.44 376,907.92
879,226.38 1,348,234.98
8,066,774.25 1,340,402.85
548,670.71 109,199.92 471,535.23 350,648.97
580,524.35 725,451.02
79,286.30 897,037.49 365,427.25 5,182,522.91
1,015,859.64
1,069,470.22 347,413.78
17,998,544.57
932,958.65 214,850.83 616,252.66 257,852.17
780,834.05 200,490.77
721,473.82 266,272.97 587,962.65 116,549.59 152,101.10 668,744.48

543,242,453.55 102,830,795.86 199,704,024.84
22,233,169.31 77,191,436.63
73,978,345.76 45,417,435.70
25,895,241.62 101,050,318.69
122,638,209.86 24,052,937.15
72,896,356.95 22,919,442.78
31,112,303.38 41,770,896.75
26,644,090.26 20,888,603.77 31,722,388.32 20,015,634.84
14,529,585.72 92,004,853.45
26,152,813.63 79,538,135.95
21,275,595.66 28,773,107.87
179,081,351.50 39,516,275.36
35,429,494.79 32,450,703.43
16,733,916.25 44,807,205.40 57,597,807.90 53,192,761.46 16,515,851.42 47,909,309.35 127,599,919.06 16,337,712.08
59,540,737.52 70,270,275.34
247,881,333.39 76,835,431.94
73,227,096.43 19,193,930.72 89,859,908.06 63,694,595.31
68,864,299.64 32,840,080.41 33,922,014.37 72,563,589.05
23,134,036.60 39,093,243.22
11,077,494.18 50,695,496.04
26,083,159.24 312,832,130.22
85,433,821.85 7,596,328.92
40,637,255.01 26,154,604.20 58,706,495.51 56,421,474.75
45,051,080.04 36,547,965.99 47,781,784.64 22,873,703.41 17,019,776.50 47,654,097.28

COUNTY
Taylor Telfair Terrell Thomas Tift Toombs Towns Treutlen Troup Turner Twiggs Union Upson Walker Walton Ware Warren Washington Wayne Webster Wheeler White Whitfield Wilcox Wilkes Wilkinson Worth

DEPARTMENT OF TRANSPORTATION SCHEDULE OF CONSTRUCTION ALLOTMENTS FROM BEGINNING OF DEPARTMENT OF TRANSPORTATION (UNAUDITED)
TO JUNE 30. 1994

STATE FUNDS
-----------

FEDERAL FUNDS
-------------

OTHER FUNDS
-----------

TOTAL FUNDS
-----------

$

19,797,471.32 $

6,109,512.76 $

557,303.66 $

26,464,287.74

29,072,483.18

8,849,081.92

258,382.55

38,179,947.65

25,777,754.93

11,252,326.32

558,683.93

37,588,765.18

65,309,931.66

33,824,387.11

4,602,770.13

103,737,088.90

43,827,750.60

73,316,582.54

384,138.64

117,528,471.78

24,361,519.64

17,817,064.85

754,623.55

42,933,208.04

25,049,560.70

2,559,596.08

294,011.79

27,903,168.57

15,990,487.54

24,106,160.51

423,948.24

40,520,596.29

90,820,255.21

60,160,929.81

13,156,769.74

164,137,954.76

17,717,657.79

18,534,265.70

393,648.50

36,645,571.99

16,618,097.70

19,427,900.20

91,414.01

36,137,411.91

42,254,191.91

20,225,495.51

755,915.93

63,235,603.35

26,633,612.32

12,727,397.48

286,146.42

39,647,156.22

59,930,055.11

33,343,607.26

999,063.80

94,272,726.17

37,049,924.27

20,792,089.63

544,623.85

58,386,637.75

60,278,738.69

30,445,823.86

1,424,012.48

92,148,575.03

12,924,555.25

12,710,521.70

134,534.07

25,769,611.02

42,224,236.50

20,162,468.40

1,071,568.50

63,458,273.40

38,739,184.87

24,110,269.72

1,129,622.64

63,979,077.23

12,240,319.67

3,311,256.03

73,314.63

15,624,890.33

10,886,116.47

4,925,801.02

309,562.05

16,121,479.54

23,700,806.32

11,438,676.07

2,832,770.23

37,972,252.62

53,400,034.55

89,912,155.79

1,444,586.04

144,756,776.38

14,095,244.62

8,324,751.90

111,410.13

22,531,406.65

20,235,896.87

8,157,123.51

395,079.69

28,788,100.07

23,926,748.10

5,337,153.93

154,611.88

29,418,513.91

31,303,953.44

17,429,530.80

478,290.35

49,211,774.59

------------------ ------------------ ------------------ ------------------

$ 6,815,813,651.61 $ 7,666,097,948.94 $ 537,017,542.61 $15,018,929,143.16

Note:

In addition to codification of expenditures on the State object code basis, the Department of Transportation also maintains records of construction and maintenance on a project allotment basis. This schedule has been prepared from information furnished by the Department of Transportation on the basis of project allotments.