Review report, Jekyll Island State Park Authority, a component unit of the state of Georgia, year ended June 30, 1994

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

REVIEW REPORT JEKYLL ISLAND STATE PARK AUTIIORITY
A COMPONENT UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1994

JEKYLL ISLAND STATE PARK AUTHORITY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B 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

DEBT SERVICE FUND

9

F STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

CONSTRUCTION FUND

10

G NOTES TO THE FINANCIAL STATEMENTS

11

SUPPLEMENTARY INFORMATION

H COMBINING STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

DEBT SERVICE FUND

24

I STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUND

25

SCHEDULES

1 SCHEDULE OF APPROVED BUDGET

26

2 CASH AND CASH EQUIVALENTS

27

3 INVESTMENTS

28

4 BONDED INDEBTEDNESS

29

5 SCHEDULE OF OTHER REVENUES RETAINED

30

6 SCHEDULE OF OTHER OPERATING EXPENSES

31

7 SCHEDULE OF SALES PROMOTION AND PUBLIC RELATIONS EXPENSE

32

8 RECONCILIATION OF PER DIEM AND FEES

34

JEKYLL ISLAND STATE PARK AUTHORITY - TABLE OF CONTENTS -
SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTiONI FINANCIAL

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

~.epcirtm.ent nf ~u~its
254 WASHINGTON STREET. S. W. ROOM 214
J\thmbt, eor_gia 30334-8400
January 25, 1995

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

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Jekyll Island State Park Authority
and Honorable James A. Bradley, Acting Executive Director
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through G) of the Jekyll Island State Park Authority as of and for the year ended June 30, 1994, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of the Jekyll Island State Park Authority.
A review consists principally of inquiries of agency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, with the exception of the matters described in the following paragraphs, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1.
As more fully discussed in Section II, Findings and Improper or Questioned Costs, material discrepancies were noted in the equipment inventory records of the Jekyll Island State Park Authority. Equipment inventory comprises the General Fixed Assets Account Group. We were unable to determine the amount that should be recorded in the General Fixed Assets Account Group_

94ARL-6X

As more fully discussed in Section II, Findings and Improper or Questioned Costs, material discrepancies were noted in the supply/resale inventories ofthe Jekyll Island State Park Authority. We were unable to determine the effects these discrepancies may have on the financial statements.
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 I. The accompanying supplementary information (Exhibits H and I and Schedules I through 8) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review ofthe financial statements and except as described in the preceding paragraph, we are not aware of any material modifications that should be made thereto.
Respectfully submitted,
L~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-6X

FINANCIAL STATEMENTS - 1-

JEKYLL ISLAND STATE PARK AUTHORITY COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30 1 1994

ASSETS Cash and Cash Equivalents
(See Schedule) Investments (See Schedule) Accounts Receivable Inventories Prepaid Items Amount Available in Debt Service Fund Amount to be Provided for Payment of
Accrued Compensated Absences Advances through Department of Natural Resources
General Obligation Bonds State Appropriations Bonds Payable

GOVERNMENTAL FUND

DEBT

~

SERVICE

$ 2,811,128.91 $

$ 265,896.43

$ 462,880.08

$ 174,019.35

$

0.00

86,803.93

Total Assets
LIABILITIES AND FUND EQUITY
Liabilities Accounts Payable Deferred Revenue Fire Protection Fees Golf Advance Sales Museum Advance Sales Miscellaneous Payroll Withholdings Salaries Payable Sales Tax Payable Funds Held for Others Bonds Payable Compensated Absences Payable Repayment of Advances through the Department of Natural Resources
Total Liabilities
Fund Equity Fund Balances Reserved Debt Service For Purposes Specified by Bond Indenture Unreserved Designated Undesignated
Total Fund Equity

$ 3 1 713 1 924.77 $_ __,81611118110111131111.9-3
$ 201,745.28 230,539.37 14,335.82 2,500.00 11,290.20 3,018.21 94,181.58 0.00

$ 557,610.46

$ 86,803.93

$

0.00

3,156,314.31

$ 3,156,314.31 $

86,803.93

Total Liabilities and Fund Equity

$ 3.713.924.77 $

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

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

- 2-

86,803.93

EXHIBIT "A"

TYPES CONSTRUCTION

FIDUCIARY FUND TYPE AGENCY

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS
(Memorandum Onl~l JUNE 30. 1994 JUNE 30. 1993

$ 8,324.40 $ 89,256.21

$ 2,995,513.45 $ 2,478,063.52

$ 265,896.43 $ 260,088.06

$ 462,880.08 $ 445,419.73

$ 174,019.35 $ 155,014.43

$

0.00 $ 20,687.41

$ 86,803.93 $ 86,803.93 $ 61. 362. 02

$ 421,309.17 $ 421,309.17 $ 352,268.57

15,787,656.00 15,787,656.00 4,173,507.20

322,500.00

322,500.00

376,250.00

203,196.07

203,196.07

398,637.98

$16.734.661.24 $16.734.661.24 $ 5,300,663.75

$

81324.40 $ 891256.21 $16.821.465.17 $20.719.774.48 $ 8.721.298.92

$ 201,745.28$ 498,946.16

$ 89,256.21
$ 290,000.00 421,309.17

230,539.37 14,335.82
2,500.00 11,290.20
3,018.21 94,181.58
0.00 89,256.21
290,000.00 421,309.17

257,009.69 1,249.50
9,897.86 0.00
683.48 52,823.50
50,735.03 80,206.33
460,000.00 352,268.57

16,110,156.00 16,110,156.00 4,549,757.20

$ 89,256.21 $16,821,465.17 $17.468.331.84 $ 6,313,577.32

$

8,324.40

$

8,324.40

$ 86,803.93 $ 61,362.02

8,324.40

8,080.79

0.00 2,338,278.79

3,156,314.31

0.00

$ 3,251,442.64 $ 2,407,721.60

$

81324.40 $ 89.256.21 $16,821.465.17 $20,719,774.48 $ 8,721,298.92

- 3-

JEKYLL ISLAND STATE PARK AUTHORITY COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "B"

BUDGET

DEBT SERVICE

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

FUND BALANCES - JULY 1

Reserved Unreserved

$ 61,362.02 $ $ 2,338,278.79

8,080.79 $ 69,442.81 $ 67,572.94 2,338,278.79 2,575,449.72

$ 2,338,278.79 $ 61,362.02 $ 8,080.79 $2,407,721.60$ 2,643,022.66

ADDITIONS

Adjustments to Prior Year's

Accounts Payable

$ 9,482.43

Cash Receipts for the Year

Exhibit "E"

$

Excess of Funds Available over Expenditures

Exhibit "C"

3,138,051.30

Exhibit "F"

Prior Year's Checks Voided

6,215.58

Reini>ursement of Prior Year's Expenditures

2,565.00

215,051.89 $

$ 9,482.43 $ 9,721.76

215,051.89 148,089.08

8,324.40

3,138,051.30 8,324.40 6,215.58 2,565.00

2,324,107.64 8,080.79 998.54 3,450.85

$ 3,156,314.31 $ 215,051.89 $ 8,324.40$ 3,379,690.60$ 2,494,448.66

DEDUCTIONS

Adjustments to Prior Year's Accounts Receivable
Cash Disbursements for the Year Exhibit "E"
Fund Balance Carried Over from Prior Year as Funds Available Reserved Unreserved

$

260.00

189,349.98

$

260.00 $

0.00

189,349.98 146,444.78

$ 2,338,278.79

$ 8,080.79

8,080.79

7,855.22

2,338,278.79 2,575,449.72

$ 2,338,278.79 $ 189,609.98$ 8,080.79 $2,535,969.56$ 2,729,749.72

FUND BALANCES - JUNE 30

(To Exhibit "A")

$ 3,156,314.31 $ 86,803.93 $ 8,324.40$ 3,251,442.64 $ 2,407,721.60
========== ============ ============ =========== =============

See Independent Accountant's Coni>ined Report on Review of Financial Statements and Supplementary Information.

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

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JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "C" Page 1

FUNDS AVAILABLE
REVENUES
Federal Revenue National Foundation on the Arts and Humanities Institute of Museum Services - Conservation Project Support (CFDA 45.301)
OTHER REVENUES RETAINED (See Schedule)
Total Revenues CARRY-OVER FROM PRIOR YEAR
Transfer from Unreserved Fund Balance

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 18,000.00$

0.00

13,068,184.52 12,404,670.36

$13,086,184.52 $12,404,670.36

2,338,278.79 2,575,449.72

Total Funds Available

$15,424,463.31 $14,980,120.08
============= =============

EXPENDITURES

PERSONAL SERVICES

Salaries and Wages Employer's Contributions for:
F. LC.A.
Retirement Health Insurance Unemployment Compensation Insurance

$ 5,323,455.96 $ 5,261,568.13

305,669.05 667,524.01
488,448.66 8,435.93
-------------

306,325.81 700,072.61
491,515.12 7,953.00
-------------

$ 6,793,533.61 $ 6,767,434.67

REGULAR OPERATING EXPENSES

Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Insurance and Bonding Other Operating Expenses (See Schedule) Publications and Printing

$ 102,140.84$ 125,031.32

976,244.52

984,752.58

636,911.15

749,549.41

774,574.83

758,761.32

530,102.97

263,401.44

562,125.75

679,443.67

44,834.51

52,677.07

$ 3,626,934.57 $ 3,613,616.81

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.
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JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30. 1994

EXHIBIT "C" Page 2

EXPENDITURES TRAVEL EQUIPMENT
Equipment Purchases Rental of Equipment
TELECOMMUNICATIONS PER DIEM, FEES AND CONTRACTS
Per Diem and Fees Contracts
CAPITAL OUTLAY Per Diem, Fees and Contracts Contracts
OTHER PAYMENTS TO THE DEPARTMENT OF NATURAL RESOURCES PAYMENTS TO THE SMALL BUSINESS DEVELOPMENT CORPORATION OF GEORGIA, INCORPORATED Total Other Total Expenditures
Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 38,780.27 $ 58,178.33

$ 157,795.09 $ 167,215.66

248,482.66

234,705.09

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

$ 406,277.75 $ 401,920.75
------------- -------------

$ 72,320.06 $ 77,194.59
------------- -------------

$ 54,287.12 $ 354,421.64

486,645.19

183,130.97

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

$ 540,932.31 $ 537,552.61
------------- -------------

$ 240,832.50$ 860,070.12

$ 514,351.41 $ 314,594.20

52,449.53

25,450.36

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

$ 566,800.94 $ 340,044.56
------------- -------------

$12,286,412.01 $12,656,012.44

3,138,051.30 2,324,107.64
------------- -------------

$15,424,463.31 $14,980,120.08
============= =============

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
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JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30. 1994

EXHIBIT "D"

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

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

$

0.00 $ 18,000.00$ 18,000.00

12,835,638.00 13,068,184.52

232,546.52

$12,835,638.00 $13,086,184.52 $ 250,546.52

0.00 2,338,278.79 2,338,278.79

$12,835,638.00 $15,424,463.31 $ 2,588,825.31

EXPENDITURES
Personal Services Regular Operating Expenses Travel Equipment Telecommunications Per Diem, Fees and Contracts Capital Outlay Payments to the Department of Natural Resources Payments to the Small Business Development Corporation
of Georgia, Incorporated

$ 7,227,618.00 $ 6,793,533.61 $

3,550,280.00 3,626,934.57

82,710.00

38,780.27

175,000.00

406,277.75

75,000.00

72,320.06

558,435.00

540,932.31

100,000.00

240,832.50

1,014,595.00

514,351.41

434,084.39 -76,654.57 43,929.73 -231,277.75
2,679.94 17,502.69 -140,832.50 500,243.59

52,000.00

52,449.53

-449.53

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

$12,835,638.00 $12,286,412.01 $ 549,225.99

Excess of Funds Available over Expenditures

$3,138,051.30$ 3,138,051.30

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.
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JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
DEBT SERVICE FUND YEAR ENDED JUNE 30. 1994
CASH RECEIPTS REVENUES
Transfers from Budget Fund as Required by Trust Indentures
Interest Received Department of Natural Resources - Trustee Fees
Total Cash Receipts CASH AND CASH EQUIVALENTS - JULY 1, 1993
DISBURSEMENTS EXPENDITURES
Interest on Bonds Trustee Fees Cash Management Fees
Total Expenditures OTHER FINANCING USES
Bonds Retired Matured Total Disbursements
CASH AND CASH EQUIVALENTS - JUNE 30, 1994
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-

EXHIBIT "E"
$ 211,755.18 1,882.48 1,414.23
$ 215,051.89 61,102.02
$ 276,153.91
$ 17,775.00 1,414.23 160.75
$ 19,349.98
170,000.00 $ 189,349.98
86,803.93
$. 276,153.91
=============

JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
CONSTRUCTION FUND YEAR ENDED JUNE 30. 1994

REVENUES Interest Earned
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

FUNDS AVAILABLE

Total Funds Available

EXPENDITURES
REGULAR OPERATING EXPENSES
Other Operating Expenses Cash Management Fees
Excess of Funds Available over Expenditures

EXHIBIT "F"

$

264.06

8,080.79

$

8,344.85

=============

$

20.45

8,324.40

$

8,344.85

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.
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JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Jekyll Island State Park Authority, is an instrumentality of the State of Georgia and a public corporation which is assigned to the Department ofNatural Resources for administrative purposes only. The Authority consists ofsix (6) members as follows: The Commissioner ofthe Department ofNatural Resources and five additional members appointed by the Governor. The management of the business and affairs ofthe Authority is vested in the Authority. The Authority is considered a component unit ofthe 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.
FUND ACCOUNTING The Jekyll Island State Park Authority uses funds and account groups to report on its financial position and the results of its operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia. 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 operating budget approved by the Jekyll Island State Park Authority. This presentation differs from generally accepted accounting principles in that such principles provide that the Budget Fund of the Authority be accounted for as a Proprietary Fund Type - Enterprise Fund. An Enterprise Fund is used to account for operations that are :financed and operated in a manner similar to private business enterprises, where the intent is that costs of providing goods or services to the general public on a continuing basis are financed or recovered primarily through user charges or that periodic measurement of revenues earned and expenses incurred are appropriate for capital maintenance, public policy, accountability and other purposes.
DEBT SERVICE FUND - The fund used to account for the accumulation of resources for, and the payment of, general long-term principal and interest. This presentation differs from generally accepted accounting principles in that such principles provide that the Debt Service Fund of the Authority be accounted for within the Proprietary Fund Type - Enterprise Fund.
CONSTRUCTION FUND - The fund used to account for capital outlay expenditures for construction projects funded by bond proceeds. This presentation differs from generally accepted accounting principles in that such principles provide that the Construction Fund of the Authority be accounted for within the Proprietary Fund Type - Enterprise Fund.

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JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEJMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
FIDUCIARY FUND TYPE
AGENCY FUND - The fund used to account for assets held for use by other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT - The account group used to account for the unretired balance of bond issues created pursuant to Georgia Laws and the outstanding balance of appropriations and bond proceeds advanced to the Authority. In addition, the account group is used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments and compensated absences, payable from future resources. This presentation differs from generally accepted accounting principles in that the Budget Fund of the Authority should be reflected as a Proprietary Fund Type - Enterprise Fund. The liabilities and related expenses for the items listed above should be recorded as a part of the Enterprise Fund in order to more effectively determine the total cost of providing goods and services to the general public on a continuing basis.
BASIS OF ACCOUNTING lMEASUREJMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e., expenditures) in net current assets. Proprietary fund types on the other hand, should be accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities are included on the balance sheet. Operating statements of these funds present increases, (i.e., revenues) and decreases (i.e., expenses) in net total assets. In accordance with accounting practices prescribed or permitted by the State of Georgia, the Budget Fund and the Construction Fund utilizes the current financial resources measurement focus and the Debt Service Fund utilizes the Cash Receipts and Disbursements basis ofaccounting.
GOVERNMENTAL FUND TYPES BUDGET FUND AND CONSTRUCTION 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 ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues that are accrued include certain amounts earned under operating agreements with other parties. Further, the modified accrual basis of accounting calls for expenditures, other than accrued interest ofgeneral long-term debt, to be recorded when the related fund liability is incurred.
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JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPES BUDGET FUND AND CONSTRUCTION FUND
The Budget Fund and the Construction Fund, which should be reflected as a Proprietary Fund Type Enterprise Fund in accordance with generally accepted accounting principles, should be maintained on the accrual basis ofaccounting.
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which do not provide for the recording of encumbrances within the Proprietary Fund Type - Enterprise Fund.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances of the governmental fund types in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but differs from generally accepted accounting principles for governmental fund types in that immaterial adjustments should be reported as current period revenues and expenses.
In accordance with policies ofthe State of Georgia, the cost of annual and sick leave is recorded when paid rather than when earned. The cost of annual leave earned but not yet paid at the end of the fiscal year is reflected in the General Long-Term Debt Account Group, in that such liability is not expected to be financed from expendable available financial resources. This practice differs from generally accepted accounting principles for proprietary fund types in that the total accrued liability for compensated absences at the end of the fiscal year should be reflected as a fund liability of the proprietary fund type involved.
DEBT SERVICE FUND The Debt Service Fund is maintained on the Cash Receipts and Disbursements basis of accounting as prescribed or permitted by statutes and regulations ofthe State ofGeorgia. 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. To conform to generally accepted accounting principles, the Debt Service Fund should be reflected within the Proprietary Fund Type - Enterprise Fund and maintained on the accrual basis of accounting.
FIDUCIARY FUND TYPE AGENCYFUND
The Agency Fund is 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.

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JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET A budget for the financial operations ofthe Jekyll Island State Park Authority is approved by the Authority at a selected meeting. The budget is not subject to review or approval by the Legislature of the State of Georgia and therefore, is a nonappropriated budget. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure ofthe aggregate budget.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand, demand deposits with banks and other financial institutions, and cash management pools that have the general characteristics of demand deposit accounts in that the Authority may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty.
INVESTMENTS Investments are defined as those financial instruments with terms of three months or more from the date of purchase and certain other securities held for the production of revenue. Investments are stated at cost.
INVENTORIES Inventories 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.
GENERAL FIXED ASSETS Accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia do not require the cost ofland and buildings to be recorded in the financial statements. This method of accounting for these fixed assets is not consistent with generally accepted accounting principles, which provide for the recording offixed assets as assets ofthe fund when used in the operations of a Proprietary Fund Type - Enterprise Fund, which the governmental fund types of the Authority should be reflected as.
COMPENSATED ABSENCES Compensated absences represent obligations of the Authority relating to employee's rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating annual leave in which payment is probable and can be reasonably estimated. (See Note 1, Basis of Accounting, Governmental Fund Types)
MEMORANDUMONLY -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.

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JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPARATIVE DATA Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Authority's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand.
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 of indebtedness or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia.
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia the option of exempting demand deposits from the collateral requirements.

- 15 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk.

Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Authority or by its agent in the Authority's name.

Category 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the Authority's name.

Category 3 - Amounts collateralized with securities (at market value) held by the financial institution or by its trust department or agent, but not in the Authority's name, and amounts uncollateralized.

Carrying Amount

Bank Balance

Risk Categories

2

3

Cash Deposits

~s $ 768 S2Z88 $ 16&4 !!14 3S $

12833 $ 1 1!18 2!!Hl $ 40681.61

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 ofInvestment State Investment Pool

Carrying Amount

Market Value

$ 2,474,097.00 $ 2,474,097.00

NOTE 3: CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS

During fiscal year 1994, the Georgia State Financing and Investment Commission (GSFIC) entered into an agreement with the Jekyll Island State Park Authority for expenditure ofgeneral obligation bond proceeds for Project No. IlSPA-6, GolfCourse and Renovation ofConvention Center, Jekyll Island, Georgia not to exceed the sum of $7,500,000.00. During fiscal year 1994, the Authority recorded $53,105.01 in revenue from GSFIC.

- 16 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 4: GENERAL LONG-TERM DEBT

BONDS PAYABLE The changes in bonds payable during the fiscal year ended June 30, 1994, are as follows:

Semi-Annual Annual Debt

Interest

Retirement Balance

Balance

Payment Dates ---=D"'""a=te=---_ July I, 1993 Additions Retirements June 30. 1994

1968A May I -Nov I 1971 Apr I - Oct I 1972 Jan I - Jul I

Nov I Oct I Jul I

$ 80,000.00 $ 200,000.00 180,000.00

0.00 $ 80,000.00 $

0.00

90,000.00 110,000.00

180,000.00

$46Q,Q0Q.0Q $ Q,0Q $170,QOO.OO $ 29Q,00Q.0Q

Annual debt service requirements to maturity for bonds are as follows:

Fiscal Year Ending June 30

Principal

Interest

Total

1995 1996 1997 1998

$ 115,000.00 $ 10,715.00$ 125,715.00

30,000.00

7,055.00 37,055.00

15,000.00

5,915.00 20,915.00

130,000.00

2,762.50 132,762.50

$ 29Q,QQQ,QQ $ 26,447.50$ 316 447.SQ

A schedule of bond indebtedness by year, excluding interest, is presented on Schedule "3" of this report.

ADVANCES THROUGH THE DEPARTMENT OF NATURAL RESOURCES REPAYMENT OF STATE APPROPRIATIONS
The budget of the Department of Natural Resources, as provided for in Section 33 of the Supplemental Appropriations Act of 1978-1979 as approved February 28, 1979, provided for payments to Jekyll Island State Park Authority in the amounts ofSI,140,000.00 for operations and $150,000.00 for capital outlay. A special proviso of Section 33 stated as follows:

"Provided further, it is the intent of this General Assembly that the above appropriation related to Payments to Jekyll Island State Park Authority, said Authority shall repay the State $1,000,000.00 in principal over a period of no more than 20 years, said payments to begin in Fiscal 1981."

At July 1, 1993, the unpaid balance due from Jekyll Island State Park Authority was $376,250.00. During the year under review, the Authority repaid $53,750.00 to the Department ofNatural Resources, leaving a balance of $322,500.00 to be repaid in subsequent periods.

- 17 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 4: GENERAL LONG-TERM DEBT

ADVANCES THROUGH THE DEPARTMENT OF NATURAL RESOURCES REPAYMENT OF GENERAL OBLIGATION BOND PROCEEDS
In prior years, the General Assembly of Georgia authorized the issuance of not more than $4,600,000.00 in General Obligation Debt for the purpose offinancing specific capital outlay projects for the Jekyll Island State Parle Authority. Under tenns ofthe funding agreement, the Jekyll Island State Park Authority is to repay the principal of$4,600,000.00 and interest of$616,884.00 over a twenty year period in equal annual installments of $260,844.00 beginning on June IS, 1990. Repayment ofthese proceeds is to be made by the Authority to the State ofGeorgia through the Department ofNatural Resources. At June 30, 1994, the unpaid balance ofbond proceeds was $3,912,660.00.

For the year ended June 30, 1994, the General Assembly of Georgia authorized the issuance of an additional $7,500,000.00 in General Obligation Debt for the cost of construction of a nine hole golf course, improvements to existing course and renovation of the convention center. Under terms of the funding agreement, the Jekyll Island State Park Authority is to repay the principal of$7,S00,000.00 and interest of $4,574,752.00 over a twenty year period in various annual installments beginning June 1S, 1994. Repayment ofthese proceeds is to be made by the Authority to the State of Georgia through the Department ofNatural Resources. During the year under review, the Authority repaid $199,756.00 leaving a balance of $11,874,996.00 to be repaid in subsequent fiscal years.

The aggregate future annual payments for advances through the Georgia Department ofNatural Resources as of June 30, 1994, including principal and interest are as follows:

Fiscal Year Ending June 30

1995 1996 1997 1998 1999 and Subsequent

$ 887,210.00 888,185.00 888,943.00 890,073.00
12,SSS, 745.00

$16,110,156.00

- 18 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATE:MENTS
JUNE 30, 1994

EXIIlBIT "G"

NOTE 4: GENERAL LONG-TERM DEBT

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

Bonds Payable

Compensated Absences

Advances Through the Department ofNatural Resources

Balance July 1, 1993

$ 460,000.00 $ 352,268.57 $ 4,549,757.20 $ 5,362,025.77

Additions

General Obligation Bond

Proceeds and Interest

Annual Leave Earned and

Utilized (Net)

Salaries

Salaries Related

Fringe Benefits (*)

Deductions

Repayment of State

Appropriations

Repayment of General

Obligation Bond

Proceeds and Interest

Retirement ofBonds

Payable

-170,000.00

Debt Schedule Revision

12,074,752.00 12,074,752.00

39,100.84 29,939.76

39,100.84 29,939.76

-53,750.00 -53,750.00

-460,600.00 -3.20

-460,600.00
-170,000.00 -3.20

Balance June 30, 1994

$ 290,000.00 $ 421,309 17 $16,110,156.00 $16,821,465.17

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

NOTE 5: TRANSACTIONS WITH THE STATE OF GEORGIA

LEASES JEKYLL ISLAND
Under provisions of the Official Code of Georgia Section 12-3-241, the State of Georgia granted a lease to
the Jekyll Island State Park Authority for "Jekyll Island" for a term of99 years beginning February 13, 1950. Included in the lease is all improvements, permanent or temporary, and all personal property or property of
the State located on Jekyll Island. Rental is $1.00 annually.

- 19 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "G"

NOTE 5: TRANSACTIONS WITH THE STATE OF GEORGIA

LEASES AUTHORITY LEASE RENTALS
Under terms of agreements with the State of Georgia (State) and the Department of Natural Resources (DNR), the Jekyll Island State Park Authority (IlSPA) issued bonds titled Series 1971 and 1972 to construct facilities and make improvements at various parks under control ofthe State and DNR. The State and DNR agreed to make yearly payments to IlSPA in amounts sufficient to make annual payments for principal and interest of the bonds. The duration of the leases were defined as the period of time until the related bonds
have been paid or provision duly made to retire the bonds. Terms of the leases provide for IlSPA, at DNR's
request, to execute and deliver to the State of Georgia a quitclaim deed for all leased properties after the State, through DNR, has paid all sums due and owing under the terms of the leases. Accounting practices prescribed or permitted by statutes and regulations of the State of Georgia allows the leases to be accounted for as operating leases by IlSPA. This method of accounting for the leases is not consistent with generally accepted accounting principles, which provide for the accounting of leases ofthis nature as direct financing leases for IlSPA. Revenue derived from these leases during fiscal year 1994 amounted to $211,771.73. Future minimum rentals, including bond interest, on these leases are as follows:

Fiscal Year Ending June 30

1995 1996 1997 1998

$ 125,715.00 37,055.00 20,915.00 132,762.50

$ 316,447.50

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 ofthe 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 ofGeorgia subject only to the claims ofthe 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 ofeach participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1994.

-20-

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "G"

NOTE 7: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA The Jekyll Island State Park Authority 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 ofGeorgia. The Retirement System is funded through a combination ofemployee and employer contributions. Employees are required to contribute a graduated percentage ofannual compensation. Employer contributions are for a specified percentage ofactive member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Authority contributed $667,524.01 to the Employees' Retirement System of Georgia. Participation in the Retirement System is not segregated by employee groups of individual governmental units and the Authority has no further liability under the retirement system other than future 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.
TEMPORARY EMPLOYEES' RETIREMENT PROGRAM The Jekyll Island State Park Authority requires its temporary status employees to participate in the Temporary Employees' Retirement Program (TERP), a non-qualified defined contribution plan under Internal Revenue Code Section 457. Participants contribute 7.5% of their salaries into the plan. This contribution amount is not available for withdrawal by an employee until termination, retirement, death, or the attainment of age sixty-five.
All contributions made 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 and rights of the Authority (without being restricted to the provisions of benefits under the plan), subject only to the claims of the Authority's general creditors. Participants' rights under the plan are equal to those of general creditors of the Authority in an amount equal to the fair market value of the account for each participant.
All assets ofthe plan at June 30, 1994, were maintained in cash or cash equivalents at Trust Company Bank, Brunswick, Georgia. The value of those assets at June 30, 1994 was $89,256.21.
NOTE 8: OTHER FINANCIAL NOTES
SALES PROMOP:ON AND PUBLIC RELATIONS EXPENSE The Jekyll Island State Park Authority is a public corporation, and as such State laws prohibiting expenditures for various club dues, entertaining, promotional and other such expenses are not applicable. It is the duty of the members ofthe Authority to determine whether or not such expenditures are necessary for the promotion of the purpose of the Authority and whether or not such expenditures are reasonable for such purpose.

- 21 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "G"

NOTE 9: LEAVE POLICIES
Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.
Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employees' length ofcontinuous State service with a maximum accumulation offorty five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences
Certain employees who retire with one hundred and twenty days or more offorfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 10: CONTINGENCIES
Litigation, claims and assessments filed against the Jekyll Island State Park Authority, if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code ofGeorgia 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 11: BONDING INFORMATION
The Executive Director and all employees ofthe Jekyll Island State Park Authority are bonded under a Public Employees Blanket Bond written by Employers Insurance ofWausau, 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 Authority to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance of Duty Coverage insures the Authority to a maximum of$100,000.00 against loss sustained from failure 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 of the Jekyll Island State Park Authority 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 Authority to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

-22 -

SUPPLEMENTARY INFORMATION - 23 -

JEKYLL ISLAND STATE PARK AUTHORITY COMBINING STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
DEBT SERVICE FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "H"

TOTAL

1965 SERIES

1968 SERIES

1968A SERIES

1971 SERIES

1972 SERIES

CASH RECEIPTS
-------------
REVENUES
--------

Transfers from Budget Fund as

Required by Trust Indentures

$ 211,755.18 $ -16.55

$ 67,644.76$ 97,750.00$ 46,376.97

Interest Received

1,882.48

$ 74.47

379.87

369.21 1,058.93

Department of Natural Resources - Trustee

Fees

1,414.23

1,097.05

317 .18

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

Total Cash Receipts

$ 215,051.89 $ -16.55 $ 74.47 $ 69,121.68 $ 98,119.21 $ 47,753.08

CASH AND CASH EQUIVALENTS - JULY 1, 1993
----------------------------------------

61,102.02

16.55 2,279.97 13,919.75 11,298.20 33,587.55

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

$ 276,153.91 $ 0.00 $ 2,354.44 $ 83,041.43 $109,417.41 $ 81,340.63
========== ======== ====== ======== ======--= =========

DISBURSEMENTS

EXPENDITURES

Interest on Bonds Trustee Fees Cash Management Fees
Total Expenditures
OTHER FINANCING USES

$ 17,775.00$

0.00

$ 1,900.00$ 7,750.00$ 8,125.00

1,414.23

1,097.05

317.18

160.75

$ 5.77

44.38

28.61

81.99

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

$ 19,349.98$

0.00 $

5.77 $ 3,041.43 $ 7,778.61 $ 8,524.17

Bonds Retired Matured
Total Disbursements CASH AND CASH EQUIVALENTS - JUNE 30, 1994

170,000.00

0.00

0.00 80,000.00 90,000.00

0.00

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

$ 189,349.98$

0.00 $

5.77 $ 83,041.43 $ 97,778.61 $ 8,524.17

86,803.93

0.00 2,348.67

0.00 11,638.80 72,816.46

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

$ 276,153.91 $ 0.00 $ 2,354.44 $ 83,041.43 $109,417.41 $ 81,340.63
======== ========== ========= =========== =========== ===========
See accompanying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Infonnation.
- 24 -

JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "I"

FUND Temporary Employees' Retirement Program

ASSETS/

ASSETS/

LIABILITIES

LIABILITIES

JULY 1, 1993 ADDITIONS

DELETIONS JUNE 30, 1994

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

$ 80,206.33 $ 96,587.90 $ 87,538.02 $ 89,256.21
============= ============= ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 25 -

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF APPROVED BUDGET YEAR ENDED JUNE 30, 1994

SCHEDULE "1"

FUNDS AVAILABLE
REVENUES
Other Revenues Retained
EXPENDITURES
Personal Services Regular Operating Expenses Travel Equipment Telecommunications Per Diem, Fees and Contracts Capital Outlay Other Debt Service Payments to the Department of Natural Resources

ORIGINAL BUDGET

BUDGET ADJUSTMENTS

TOTAL

$20,476,0lB.OO $-7,640,3BO.OO $12,835,638.00
============= ============= =============

$ 7,227,618.00

$ 7,227,618.00

3,693,625.00$ -143,345.00 3,550,280.00

82,710.00

82,710.00

240,410.00 -65,410.00 175,000.00

91,625.00 -16,625.00

75,000.00

558,435.00

558,435.00

7,500,000.00 -7,400,000.00 100,000.00

52,000.00

52,000.00

1,029,595.00 -15,000.00 1,014,595.00

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

$20,476,018.00 $-7,640,380.00 $12,835,638.00
============= ============= =============

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

JEKYLL ISLAND STATE PARK AUTHORITY CASH AND CASH EQUIVALENTS JUNE 30 1 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Barnett Bank, Brunswick, Georgia INTEREST BEARING ACCOUNTS
Barnett Bank, Brunswick, Georgia NationsBank of Georgia, N. A., Atlanta, Georgia Trust Company Bank of Southeast Georgia, Brunswick, Georgia Funds on Deposit with Office of Treasury and Fiscal Services
State Investment Pool
OTHER
Cash on Hand Petty Cash

$ 222,774.86

$ 109,401.57 95,128.33 74,721.69
2,474,097.00 2,753,348.59

$ 18,715.00 675.00

19,390.00

$ 2,995,513.45
=============

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

JEKYLL ISLAND STATE PARK AUTHORITY INVESTMENTS
JUNE 30, 1994

SCHEDULE "3"

INVESTMENT TYPE
Certificate of Deposit Coastal Bank of Georgia, Brunswick, Georgia

PURCHASE DATE MATURITY DATE

AMOUNT

February 6, 1994 August 6, 1994 $ 265,896.43

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 28 -

JEKYLL ISLAND STATE PARK AUTHORITY BONDED INDEBTEDNESS JUNE 30 1 1994

SCHEDULE "4"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
--------------
1995 1996 1997 1998
(A) Bonds are due October 1 each year; Interest due April 1 and October 1 each year; Interest 5.00%.
(B) Bonds are due July 1 each year; Interest due January 1 and July 1 each year; Interest 5.20% on bonds due in fiscal years ending June 30, 1995 through 1997; and 4.25% on bonds due in fiscal year ending June 30, 1998.

TOTAL

1971 SERIES

1972 SERIES

$ 115,000.00 $ 80,000.00 $ 35,000.00

30,000.00

30,000.00

15,000.00

15,000.00

130,000.00

130,000.00

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

$ 290,000.00$ 110,000.00$ 180,000.00

(A)

(B)

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 29 -

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF OTHER REVENUES RETAINED
YEAR ENDED JUNE 30. 1994

SCHEDULE "5"

State of Georgia Through Department of Natural Resources Authority Lease Rentals Less: Transfers to Debt Service Fund as Required by Trust Indentures
Contract Georgia State Financing and Investment Commission Project No. JISPA6
Hotel/Motel Tax Rental Income
Building Rental Business Leases Bicycle Rentals Convention Center Rentals Employee Housing Golf Cart Rentals Lot Rentals Picnic Areas Site Rentals Sales and Services Alcohol Sales
Less: Purchases for Resale Ambulance Services Concession Sales
Less: Purchases for Resale Day Camp Fire Protection Fees Fitness Center Food Sales
Less: Purchases for Resale Fuel Sales
Less: Purchases for Resale Golf Maintenance Services Miscellaneous Novelty Sales Parking Fees Plants Sale of Equipment Special Events Storage Tennis Tours Water Park Water, Sanitation and Sewage Other Advertising Applied Penalties Bank Card Processing Fees Beach Music Festival Building Permits Bureau Dues Country Music Festival Donations Education Program Food Service Gratuities Insurance Recoveries Interest on Investments Liguor Stamps and Licenses Telephone Commissions Vendor's Compensation on Sales Tax Collections Water Analysis

$ 211,771.73
----2-1--1-,7-5--5-.1--8 $

16.55

53,105.01 984,403.06

$ 43,556.23 1,502,602.95 59,099.86 308,136.91 22,071.50 896,714.03 207,955.00 5,427.15
----3-3-1-,-2-3-6-.-4-6

3,376,800.09

$ 383,225.63
----1-1--3-,8--7-5-.5--9 $ 269,350.04

$ 280,382.25 -175,648.25
-------------

26,580.54 104,734.00

$ 2,445,088.72 -912,548.05

19,282.28 432,134.69
4,736.08 1,532,540.67

$ 5,738.30 -628.75

5,109.55

1,978,718.69 141. 52
6,920.36 1,443.35 1,180,662.56 12,643.72
387.65 25,959.86
1,965.35 24,873.01 244,148.61 1,033,923.36 923,368.87

7,829,624.76

$ 114,931.52 13,125.24 -43,867.23 92,172.58 1,914.00 1,947.00 139,191.75 2,663.31 11,722.45 91,498.35 209,254.78 90,717.38 77,457.27 12,385.77 2,878.94 6,241.94

824,235.05

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 30 -

$13,068,184.52

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30. 1994

SCHEDULE "6"

REGULAR OPERATING EXPENSES
Business Lunches Dues and Registration Fees Employee Incentives
Awards Luncheons Reimbursements
Sales Promotion and Public Relations Expense (See Schedule) Various Luncheons, Receptions and Tours

$

6,659.59

28,006.22

$ 3,230.00 1,507.59 1,847.58

6,585.17

510,876.59 9,998.18

$ 562,125.75

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 31 -

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF SALES PROMOTION AND PUBLIC RELATIONS EXPENSE
YEAR ENDED JUNE 30, 1994
ADVERTISING, BULLETINS, ENTERTAINMENT AND OTHER EXPENSE Advertising Feats Albany Herald American Auto Association American Heritage American Telephone and Telegraph Aspen Communications Association of the U. S. Army Atlanta Journal Berisford Photo Beta Sigma Pi Boy Scouts of America Brunswick Chamber of Commerce Brunswick College Brunswick News Bureau of Business Burelle's Press Cablevision Advertising Camden County Tribune Central Hardware Chattanooga Publishing Coastal Georgia Regional Development Commission Colonial Coast Travel Comfort Inn Commissary Convention South Cramer's Cynfulies Darien News DeKalb Convention and Visitor's Bureau Delmar Studios Drew Communications Faulkenberrr Certain Adventure First Georgia Fishnet Follies Florence Williams Florida Running Florida Times-Union Flower Basket Gene's Guide, Incorporated George William's Studio Georgia Association of Christian Schools Georgia - Florida Georgia Gold Coast Challenge Georgia Jaycees Georgia Power Company Georgia Public Health Association Glynn Camera Glynn County Community School Glynn County Recreation Department Glynn Electric Company Glynn Press Golden Isles Golf Golf Digest GSEA Harbor Sound Hachette Publications HSMAI Inside Communications Insty Prints Jekyll Golden Islander Jekyll Island Golf Club Jekyll Island Lions Club Jekyll Island Museum Associates Johnson, Mark Kaufmann Associates Kingsland Publisbing Klingler, Janet Lamar Corporation Lang Building Supply Lilly Glass Links Lowes of Brunswick Macon Telegraph and News Maxwells Mclean and Friends Media Distribution Services Menu Book Mint Magazine Mulberry Music
See accompanying notes and Independent Accounta~ts Combined Report on Review of Financial Statements and Supplementary Informat1on.
- 32 -

SCHEDULE "7" Page 1

$

580.00

110.14

275.00

12,684.13

169.99

4,125.66

100.00

74,032.07

10.50

50.00

175.00

303.00

451.00

7,083.73

137.10

250.00

2,930.50

241.50

106.35

6,676.50

150.00

5,000.00

44.00

50.65

45.00

317.49

61. 76

677. 00

25.00

455.00

431.00

14,033.38

907.84

100.00

1,365.00

340.00

18,133.10

158.40

5,100.00

233.08

150.00

270.00

2,500.00

700.00

606.99

100.00

434.93

29.00

225.00

111.08

2,302.85

1,140.00

17,158.73

45,934.00

1,557.50

395.83

2,290.75

295.00

228.00

388.10

97.20

380.00

143.00

1,325.00

93.25

670.96

440.00

118.75

11,400.00

27.05

162.00

7,845.50

42.42

8,109.00

22.00

2,115.00

1,700.27

1,062.50

5,345.00

500.00

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF SALES PROMOTION AND PUBLIC RELATIONS EXPENSE
YEAR ENDED JUNE 30. 1994
ADVERTISING, BULLETINS, ENTERTAINMENT AND OTHER EXPENSE National Geographic Traveler National Your Marketin~ Naegele Outdoor Advertising Neeld Printing House New South Publishing, Incorporated Pacesetters Paramount Miller Press Preprint Publishing Company Pro~ressive Printing Radisson Ragan Communications Ramada Inn Rawson Company Rea~in Printing Regina Godsey Rent All Partr Centers Rutter Communications Savannah News Seabreeze Skillpath, Incorporated Southeast Spring Conference Southeast Tourism Society Southern Bell Southern Cable Advertising Southern Living Southern Tennis Association Smith, Jimmy Special Editions Publishing Swank, Incorporated SYSCO Foods TCB Broadcasting Tennis Magazine Three Cheers TL Enterprises Touch Georgia Trip U. S. Cable U. S. Tennis Association U. S. Toy Com~any Vacation Publications Value Pak Savannah Vincent Printing Company WAEV WAPE WAWS WBGA WBMO WBSG WCHY WEJZ WFYV WGCO WGIG WHFX WIVY WKBX WKIX WPIQ WROO WYNR WXMK WalMart Waycross Journal Herald Wheeler's Resort Guide Whitehawk Pictures Woodall's Publishing Yellow Pages

SCHEDULE "7" Page 2

$

7,272.09

2,983.50

2,080.00

2,771.05

9,088.20

70.00

68,603.66

2,040.00

5,370.00

223.02

595.00

290.00

60.00

43,384.75

230.00

43.40

2,122.42

6,021.45

705.50

356.00

110.00

120.00

455.50

1,805.36

22,040.50

1,100.00

50.00

637.50

423.00

1,458.71

400.00

2,983.50

373.70

1,674.50

2,500.00

2,891.60

376.90

1,100.00

227.05

500.00

2,725.00

2,228.75

3,072.58

470.00

5,200.00

2,000.00

637.50

750.00

200.00

1,228.00

550.00

1,250.00

125.70

1,416.00

4,274.00

500.00

700.00

250.00

1,292.00

251.40

2,250.00

314.08

247.25

1,202.50

2,480.75

3,088.69

98.00

$ 510,876.59

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

JEKYLL ISLAND STATE PARK AUTHORITY RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30, 1994

SCHEDULE "8"

Totals per Annual Supplement
Adjustments All Brite Aqua Plant Control Atlas Termite Brunswick Chamber of Commerce Campbells Cleaning Glynn County Board of Commissioners Law, Georgia Department of Mescon Group Phillips and Oppermann Ron Carrier Associates Sawyer Air Conditioner
s. E. Chemicals
Transportation, Georgia Department of Whelchel, Brown, Readdick and Bumgartner,
Law Offices of

TYPE PAYMENT
-------
Other Fees Other Fees Other Fees Other Fees Other Fees Other Fees Other Fees Other Fees Other Fees Other Fees Other Fees Other Fees Other Fees
Other Fees

FEE AMOUNT

EXPENSE AMOUNT
-------

TOTAL

$ 291,978.53 $

146.78 $ 292,125.31

-3,905.00 -27,500.00 -3,350.00 -75,000.00 -9,587.50 -45,622.69 -24,000.00 -2,000.00 -25,576.00 -20,000.00 -7,752.00 -3,000.00 -14,545.00

-3,905.00 -27,500.00 -3,350.00 -75,000.00 -9,587.50 -45,622.69 -24,000.00 -2,000.00 -25,576.00 -20,000.00 -7,752.00 -3,000.00 -14,545.00

24,000.00

24,000.00

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

$ 54,140.34 $

146.78 $ 54,287.12

============= ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 34 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

JEKYLL ISLAND STATE PARK AUTHORITY 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 offindings disclosed in the review report for the year ended June 30, 1993, is summarized below:

Audit Control Number

Status ofFinding

910-93-01

See Audit Control Number 910-94-01

PRIOR YEAR/CURRENT YEAR

GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain a Property Management System Financial Statements Audit Control Number 910-94-01

The audit report for the year ended June 30, 1993, reported that the property management system for recording equipment purchased by the Jekyll Island State Park Authority in a General Fixed Assets Account Group was inadequate. For the year under review, our examination revealed that the Authority could not provide a historical listing of equipment currently utilized in the operations of the Authority for the purpose ofreporting a General Fixed Assets Account Group in the financial statements. Appropriate action should be taken by the Authority to establish accounting controls and procedures necessary to provide for maintenance of a property management system to record all equipment owned by the Authority in accordance with the guidelines provided in Official Code of Georgia Annotated Section 50-16-161. This property management system for equipment should include, but may not be limited to, date equipment acquired, acquisition cost,
estimated cost ifhistorical cost is not available, serial number, location, description and an identifying number
assigned by the Authority. In addition, detailed records should be maintained of all additions and deletions to the property management system.

As a result ofthe deficiency noted above, we were unable to determine the total equipment inventory valuation that should be recorded in a General Fixed Assets Account Group.

CURRENT YEAR

ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Financial Statements Audit Control Number 910-94-02

The internal accounting control procedures of the Jekyll Island State Park Authority do not provide for an adequate separation of employee duties in the performance of certain accounting functions and related procedures in the following control categories:

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

CURRENT YEAR

ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Financial Statements Audit Control Number 910-94-02

{l) Cash and Cash Equivalents

(4) General Ledger

(2) Revenue/Receivables/Receipts

(5) Expenditures/Liabilities/Disbursements

(3) Inventories

The Authority should review the accounting procedures in place, design procedures which would enhance separation ofduties relative to the above control categories and implement those procedures to strengthen the internal control over the accounting function.

CASH AND CASH EQUIVALENTS Accounting/Internal Control Deficiencies Financial Statements Audit Control Number 910-94-03

For the year under review, the accounting procedures and internal controls of the Jekyll Island State Park Authority were found to be inadequate in the area of cash and cash equivalents. The following deficiencies were noted:

Disbursing Account (1) The June 30, 1994, bank account reconciliation contains a lump-sum amount of$7,632.09 on the outstanding check list. This amount has been included on the monthly reconciliation listings from June 30, 1992. The Authority was unable to identify this amount by individual check number or payee.

The Authority should develop policies and procedures to write-off old outstanding checks and should maintain adequate records of these old outstanding checks to comply with Official Code of Georgia
Annotated Section 44-12, Article 5 - Disposition ofUnclaimed Property.

Income Account (1) Credit card fees and billing adjustments were not properly posted to the general ledger. Instead these amounts were incorrectly netted against other reconciling items requiring adjustment when Authority personnel recorded necessary journal entries discovered from the bank reconciliation process.

(2) Journal entries were made monthly without proper supporting documentation or explanation to bring the general ledger balance into agreement with the income bank account reconciled balance.

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

CURRENT YEAR

CASH AND CASH EQUIVALENTS Accounting/Internal Control Deficiencies Financial Statements Audit Control Number 910-94-03

(3) Cash over/short was improperly netted against sales revenues during fiscal year 1994. An analysis of sales revenue for the test month of June revealed a net cash shortage of $1,814.33 posted against sales.

(4) After extensive efforts to reconcile the income account, an unidentified variance of $4,377.13 remained at June 30, 1994.

The Authority should develop policies and procedures to ensure that: (1) credit card charges are correctly recorded on the general ledger and are not used to offset the amount of the adjusting entry necessary to reconcile the general ledger to the bank statement, (2) journal entries made to the general ledger contain adequate explanations and supporting documentation, and (3) cash over/short is recorded in a separate account rather than netted against revenues.

Payroll Account (1) Bank reconciliations for April, May and June 1994 were not performed until after December 31, 1994.

(2) Balances per bank reconciliations for several months did not agree with the general ledger. A comparison of the reconciled balance reflected on the June 30, 1994, bank reconciliation to the June 30 general ledger balance reflected the following:

Cash per

Cash Per Bank

General Ledger Reconciliation Difference

$

3,936.58 $ 12,431.61 $ 8,495 03

(3) The payroll computer program is not integrated with the general ledger accounting system. Data posted to the general ledger was not supported by underlying subsidiary payroll journals.

(4) Check registers for the months ofJanuary and June 1994 were unavailable and had to be recreated from the payroll databases. An analysis of the recreated June check register revealed that the register did not accurately reflect transactions as they occurred. The following discrepancies were noted during the analysis ofthe June check register:

(a) Fifty-eight (58) checks were omitted from the check register that cleared the bank.

(b) Five (5) duplicate check numbers were recorded on the check register.

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
CASH AND CASH EQUIVALENTS Accounting/Internal Control Deficiencies Financial Statements Audit Control Number 910-94-03
(c) Four (4) checks were voided and were not indicated as such on the check register.
(d) One (1) check was marked as void but cleared the bank.
(e) Twenty-two (22) checks were voided but were not listed on the check register.
(f) Several voided checks could not be located.
(g) Seven (7) checks had different payees and/or check amounts than listed on the check register.
(5) After extensive efforts to reconcile the payroll account, an unidentified variance of $1,566.12 remained at June 30, 1994.
The Authority should develop policies and procedures to ensure that bank accounts are reconciled in a timely manner and agree with the general ledger and that payroll journals support journal entries posted to the general ledger. Also, check registers should be properly maintained and totals verified to the payroll journals.
INVENTORIES Inadequate Supply/Resale Inventory Records Financial Statements Audit Control Number 910-94-04
For the year under review, the internal accounting control procedures for the supply and resale perpetual inventory system for Jekyll Island State Park Authority were d'eficient as follows:
(1) The inventory cost summary sheets for June 30, 1994, listing individual inventory items by quantity and cost provided for examination was not accurately added. In addition, cost extensions for certain items were inaccurate.
(2) Inventory subsidiary records for June 30, 1994, did not support the general ledger account balance.

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
INVENTORIES Inadequate Supply/Resale Inventory Records Financial Statements Audit Control Number 910-94-04
(3) A physical inventory count for the uniform inventory was not performed during the year under review. In addition, the Authority could not provide a detailed listing ofthe uniform inventory at June 30, 1994. However, a listing was prepared by the Authority on January 10, 1995, for examination. A comparison of this listing to the January 1995 general ledger and an analysis of the activity occurring in the general ledger uniform inventory account during fiscal years 1994 and 1995 revealed that a material unreconciled overstatement existed in the uniform inventory account recorded on the general ledger at June 30, 1994.
(4) A sample of52 randomly selected items from the January 10, 1995, inventory listing provided for examination was utilized to test the accuracy and validity ofthe perpetual inventory records. The results oftest physical count procedures revealed that 37 items could not be reconciled from the physical count to the inventory listing.
As a result of the deficiencies noted above, which include the uncertainties of the account balances and overstatements, we were unable to satisfy ourselves as to the accuracy of the supply/resale inventories valuation reported on the Combined Balance Sheet (Statutory Basis), Exhibit "A" of this report.
GENERAL LEDGER Detailed Listing of Salaries Not Reconciled Financial Statements Audit Control Number 910-94-05
For the year under review, the detailed listing of salary payments made to employees was not reconciled with the general ledger as presented for examination. This unlocated difference amounted to $420.90. The Authority should ensure that subsidiary records for employee compensation balances to the general ledger.