Review report, Jekyll Island State Park Authority, a component unit of the state of Georgia, year ended June 30, 1995

GA A'?.OO .RI J46 i994--9S-
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

REVIEW REPORT JEKYLL ISLAND STATE PARK AUTHORITY
A COMPONENT UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1995

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

30

I STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUND

31

SCHEDULES

1 SCHEDULE OF APPROVED BUDGET

32

2 CASH AND CASH EQUIVALENTS

33

3 INVESTMENTS

34

4 BONDED INDEBTEDNESS

35

5 SCHEDULE OF FEDERAL REVENUES

36

6 SCHEDULE OF OTHER REVENUES RETAINED

37

7 SCHEDULE OF OTHER OPERATING EXPENSES

39

8 SCHEDULE OF SALES PROMOTION AND PUBLIC RELATIONS EXPENSE

40

9 RECONCILIATION OF PER DIEM AND FEES

43

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

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR (4041856-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 27, 1996

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Jekyll Island State Park Authority
and Honorable James A. Bradley, Executive Director Jekyll Island State Park Authority
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, 1995, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management ofthe 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 I.
As more fully discussed in Section IT, 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.
95ARL-6X

As more fully discussed in Section Il, 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 ofexpressing 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 9) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements and except as descnbed in the preceding paragraphs, we are not aware of any material modifications that should be made thereto.
Respectfully submitted,
ff~~
Claude L. Vickers State Auditor
CLV:cm 95ARL-6X

FINANCIAL STATEMENTS - 1-

JEKYLL ISLAND STATE PARK AUTHORITY COMBINED BALANCE SHEET (STATUTORY BASIS}
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 1995

ASSETS
Cash and Cash Equivalents (See Schedule)
Investments (See Schedule)
Accounts Receivable
Inventories
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 TYPES

DEBT

BUDGET

SERVICE

CONSTRUCTION

$ 2,604,032.54 $ 35,432.28 $

0.00

$ 1,'Z76,897.52 $ 494,861.48 $ 115,232.81

Total Assets

$ 4,491,024.35 $ 35,432.28 $

0.00

LIABILITIES AND FUND EQUITY
Liabilities Accounts Payable Deferred Revenue Convention Center Advance Sales Fire Protection Fees Golf Advance Sales Museum Advance Sales Miscellaneous Payroll Withholdings Salaries 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 Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 458,390.21
13,579.30 262,250.36
10,989.19 11,328.00 18,404.75 22,303.57 44,586.54

$ 841,831.92

$ 35,432.28

$

0.00

$ 3,649,192.43

$ 3,649,192.43 $ 35,432.28 $

0.00

$ 4,491,024.35 $ 35,432.28 $

0.00

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

FIDUCIARY FUND TYPE
AGENCY

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS
(Memorandum Only)
JUNE 301 1995 JUNE 301 1994

$

105,249.55

$ 2,744,714.37 $ 2,995,513.45

$ 1,276,897.52 $

265,896.43

$

494,861.48 $

462,880.08

$

115,232.81 $

1741019.35

$

35A32.28 s

35,432.28 $

86,803.93

$

385,523.99 $

14,954, 196.00 268,750.00 139,567.72

$ 15,748,037.71 $

385,523.99 $
14,954, 196.00 268,750.00 1391567.72
15,748,037.71 $

421,309.17
15,787,656.00 322,500.00 203,196.07
16,734,661.24

$

105,249.55 $ 15,7831469.99 $ 20,4151176.17 $ 20.11e,n4.48

$

458,390.21 $

201,745.28

$

105,249.55

$

175,000.00

385,523.99

13,579.30 262,250.36
10,989.19 11,328.00 18,404.75 22,303.57 44,586.54 105,249.55 175,000.00 385,523.99

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

1512221946.00

1512221946.oo

1611101156.00

$

105,249.55 $ 15,7831469.99 $ 161730,551.46 $ 1714681331.84

$

35,432.28 $

86,803.93

0.00

8,324.40

3,649, 192.43

3,156,314.31

$ 31684,624.71 $ 3,2511442.64

$

105,249.55 $ 15,783,469.99 $ 2014151176.17 $ 20,11e.n4.48

3

JEKVU ISLAND STATE PARK AUTHQRIJY COMBINED STATEMENT Of CHANGES IN FUND BALANCES lSTATUTORY BASIS)
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

EXHIBIT-a"

FUND BAl,ANCE.S JULY l
R...ved
Unr...ved
ADDmQNS
Adjustments to Prior Year's Accounts Payable
Cash Receipts for the Year Exhibit"E"
Excess of Funds Available over Expenditures Exhibit"C"
Excess of Funds Available over Expenditures and Other Financing Uses Exhibit"F"
Prior Year's Checks Voided Reimbursement of Prior Year's Expenditures
DEDUCTIONS
Adjustments to Prior Year's
Accounts Receivable Inventories See Schedule of Findings
and Improper or Questioned Costs Cash Disbursements for the Year
Exhibit"E" Fund Balance Carried Over from
Prior Year as Funds Available Reserved Unreserved
FUNQ BALANCES JUNE~
(To Exhibit "Ai

BUDGET

DEBT SERVICE

CONSTRUCTION

TOTALS (Memorandum On~
YEAR ENDED JUNE 301 1995 JUNE 30, 1994

$ $ 3,156~14.31
$ 3,156,314.31 $

86,803.93 $ 86,803.93 $

8,324.<CO $ 8,324.<40 $

95,128.33 $ 3,156,314.31
3J51,442.64 $

69,442.81 2,338J78.79
2,<C01,n1.eo

$

5,299.59

$

3,730,573.31

66,002.52

7,645.74 0.00
$ 3,743,518.64 $

$ 66,002.52 $

$

5,299.59$

9,482.43

66,002.52

215,051.89

3,730,573.31

3,138,051.30

0.00 0.00 $

0.00 7,645.74
0.00
3,809,521.16 $

8,324.<CO 6,215.58 2,565.00
3,379,690.60

$

0.00

$

94,326.21

117,374.17

3,156,314.31 $ 3,250,6<40.52 $

s
117374.17 $

s 316491192.43 $

351432.28 $

$

0.00 $

260.00

94,326.21

0.00

117,374.17

189,349.98

8,324.<CO 8,324.<CO $

8,324.<CO 3,156,314.31
3,376,339.09 S

8,080.79 2,338,278.79
2,535,969.56

0.00 $ 316841624.71 $ 31251 ,442.64

See Independent Accountants Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement
-5-

JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"C"

FUNDS AVAILABLE REVENUES
Federal Revenue (See Schedule) OTHER REVENUES RETAINED (See Schedule)
Total Revenues CARRY-OVER FROM PRIOR YEAR
Transfer from Unreserved Fund Balance

TOTALS
YEAR ENDED JONE 30, 1995 JUNE 30, 1994

$

797.73 $

18,000.00

13,266,281.41 13,068,184.52

$ 13,267,079.14 $ 13,086,184.52

3,156,314.31

2,338,278.79

Total Funds Available

$ 16,4231393.45 $ 1514241463.31

EXPENDITURES
PERSONAL SERVICES
Salaries and Wages Employer's Contributions for:
F.I.C.A. Retirement Health Insurance Unemployment Compensation Insurance
REGULAR OPERATING EXPENSES
Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Utilities Insurance and Bonding Other Operating Expenses (See Schedule) Publications and Printing
TRAVEL
EQUIPMENT
Equipment Purchases Rental of Equipment
TELECOMMUNICATIONS

$ 5,042,327.86 $
304,146.15 632,246.43 474,679.81
5,602.00
$ 6,459,002.25 $

5,323,455.96
305,669.05 667,524.01 488,448.66
8,435.93
6,793,533.61

$

107,917.12 $

1,017,372.57

848,905.78

727,867.31

623,630.07

685,630.57

60?38.18

$ 4,072,061.60$

$

35,453.44$

102,140.84 976,244.52 636,911.15 774,574.83 530,102.97 562,125.75 44,834.51
3,626,934.57
38,780.27

$ 216,939.34 $ 234,042.10

$ 450,981.44 $

$

78,403.39$

157,795.09 248,482.66
406,277.75
72,320.06

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

JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"C"

EXPENDITURES 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
VEAR ENDED JONE 30, 1995 JONE 30, 1994

$ 120,900.52 $ 160,971.27

54,287.12 486,645.19

$ 281,871.79 $ _ _..;;54;....;.;;.0li.;;;.9.;;.;32=..;;.31-'-

$ 427,836.23 $

240,832.50

$

887,210.00 $

514,351.41

0.00

52,449.53

$ 8871210.00 $

566,800.94

$ 12,692,820.14 $ 12,286,412.01

3,730,573.31

3,138,051.30

$ 16,423,393.45 $ 15,424,463.31

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
-7-

JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30, 1995

EXHIBIT o-

FUNDS AVAILABLE REVENUES
Federal Revenues Other Revenues Re1ained
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance
EXPENDITURES Personal Services Regular Operating Expenses Travel Equipment Telecommunications Per Diem, Fees and Contracts Capital Outlay
Payments to the Department of Natural Resources
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

0.00 $

797.73 $

16,924,031.00 13,266,281.41

$ 16,924,031.00 $ 13,267,079.14 $

797.73 -3,657,749.59
-3,656,951.86

0.00

3,156,314.31

3,156,314.31

$ 16,924,031.00 $ 16,423,393.45 $ _ _ _-_5_0_0_,63_7_.55_

$ 6,913,366.00 $ 6,459,002.25 $

3,641,469.00

4,072,061.60

83,525.00

35,453.44

271,645.00

450,981.44

74,080.00

78,403.39

452,736.00

281,871.79

4,600,000.00

427,836.23

887,210.00

887,210.00

454,363.75 -430,592.60
48,071.56 -179,336.44
-4,323.39 170,864.21 4,112,163.n
0.00

$ 16,924,031.00 $ 12,692,820.14 $ _ _ _4_,2_3_1__,2_1_0_.86_

$ 3,730,573.31 $ _ _ _3_,730_,57_3_.3_1

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
-8-

JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
DEBT SERVICE FUND YEAR ENDED JUNE 30, 1995
CASH RECEIPTS REVENUES COLLECTED
Transfers from Budget Fund as Required by Trust Indentures
Interest Received Total Cash Receipts
CASH AND CASH EQUIVALENTS - JULY 1, 1994
DISBURSEMENTS EXPENDITURES PAID
Interest on Bonds Paying Agent Fees
Total Expenditures Paid OTHER FINANCING USES (SOURCES)
Bonds Retired Matured
Operating Transfers In Operating Transfers Out
Total Other Financing Uses (Sources) Total Disbursements CASH AND CASH EQUIVALENTS- JUNE 30, 1995
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"
$ 64,075.65 1,926.87
$ 66,002.52 86,803.93
$ 152,806.45
$ 10,715.00 38.77
$ 10,753.77
$ 115,000.00 -10,743.84 2,364.24
$ 106,620.40 $ 117,374.17
35,432.28
$ 152,806.45

JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF FUNDS AVAILABLE ANO EXPENDITURES
CONSTRUCTION FUND
YEAR ENDED JUNE 30. 1995

EXHIBIT "F"

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
OTHER FINANCING USES
Operating Transfers Out Debt Service Fund
Total Expenditures and Other Financing Uses
Excess of Funds Available over Expenditures and Other Financing Uses

$

58.68

8,324.40
s _.....,8_,3_8_3._o8_

$

3.48

8,379.60

$

8,383.08

0.00

s _ _ _8_,3_8_3._o_8

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.
-10-

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATE1\1ENTS
JUNE 30, 1995

EXlllBIT "G"

NOTE 1: SUM:MARY 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 of nine (9) members as follows: The Commissioner of the Department ofNatural Resources or his or her designee and eight additional members appointed by the Governor. The management of the business and affairs of the 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. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING The 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 of the State of Georgia. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPES
BUDGET FUND - The fund used to account for activities and functions as set forth in the 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.
- 11 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
FIDUCIARY FUND TYPE
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.
ACCOUNT 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 ofappropriations and bond proceeds advanced to the Authority. In addition, the account group is used to report the noncurrent portions of certain governmental long-tenn liabilities, such as claims, judgments and compensated absences, which will be paid from future resources. This presentation differs from generally accepted accounting principles in that the Budget Fund ofthe Authority should be reflected as a Proprietary Fund Type -Enterprise Fund. The liabilities and related expenses for the items listed above should be recorded as a part ofthe proprietary fund type in order to more effectively determine the total cost of providing goods and services.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure of available spendable resources.
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. This measurement focus emphasizes the determination of net income. In accordance with generally accepted accounting,principles, the Budget Fund, Construction Fund and Debt Service Fund should be reflected as a Proprietary Fund Type - Enterprise Fund. In accordance with accounting practices prescribed or permitted by statutes and regulations of 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 of accounting.
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 and Construction Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount ofthe transaction
- 12 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPES BUDGET FUND AND CONSTRUCTION FUND
can be detennined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues that are accrued include certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated
absences, claims and judgements which are recognized when the obligations are expected to be liquidated with
expendable available financial resources. 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 of accounting.
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not 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 proprietary fund types in that immaterial adjustments should be reported as current period revenues and expenses.
In accordance with policies of the State of Georgia, the cost of annual and sick leave is recorded when paid rather than when earned. The cost of annual leave earned but not yet paid at the end of the fiscal year is
reflected in the General Long-Term Debt Account Group, in that such liability is not expected to be financed
from expendable available financial resources. This practice differs from generally accepted accounting
principles for proprietary fund types in that the total accrued liability for compensated absences at the end of
the fiscal year should be reflected as a fund liability ofthe 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.

- 13 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING FIDUCIARY FUND TYPE AGENCYFUND
Agency Funds are custodial in nature and do not measure results ofoperations or have a measurement focus. The modified accrual basis of accounting is utilized for recognizing assets and liabilities.
BUDGET A budget for the financial operations of the 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 more than three months from the date of purchase and certain other securities held for the production of revenue. Investments are stated at cost.
The Jekyll Island State Park Authority participates in an investment pool managed by the State of Georgia's Office ofTreaswy and Fiscal Services (OTFS) referred to as the "Georgia Fund 1". The Authority does not have any risk exposure from investments in Georgia Fund I as the investment policy of OTFS does not provide for investments in derivatives or similar investments through the Georgia Fund 1.
ACCOUNTS RECEIVABLE Accounts Receivable (Other) arising from operations are reported at gross value. Based on management's evaluation that amounts uncollectible are not material, no provision has been made for those accounts expected to be uncollectible.
INVENTORIES Inventories of supplies and resale items are valued at cost using the first-in/first-out (FIFO) method on the Combined Balance Sheet (Statutory Basis). The consumption method is used to account for the use of these inventories. Under the consumption method, the costs of supply inventories are recorded as expenditures when consumed rather than when purchased and resale inventory is reflected as a contra-account to sales in other revenues retained as sold.

- 14 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL FIXED ASSETS Accounting practices prescribed or pennitted 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. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount will not be liquidated with expendable available financial resources.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Statements (Statutory Basis) are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position, results of operations or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding ofthe changes in the Authority's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Authority's financial position and operations or would cause the statements to be unduly complex and difficult to understand.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds of the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or ofthe State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities ofthe State of Georgia.
- 15 -

JEKYLL ISLAND STATE PARK AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (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 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. The bank balances as of June 30, 1995, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk.

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

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

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

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$ 433.630 10 S 1 520 088 09 S 444 769 92 S 860 624 57 S 214,693.60

- 16 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS For purposes of analysis of custodial credit risk, investments consist of U. S. Government securities. Investments are stated at cost, and are summarized and classified as to custodial credit risk within the categories described below:

Category 1 - Insured or registered, or securities held by the Authority or its agent in the Authority's name.

Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Authority's name.

Category 3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Authority's name.

The carrying amounts ofinvestment balances as ofJune 30, 1995, are categorized below. These amounts also include amounts maintained in an investment pool by the Office of Treasury and Fiscal Services which are not subject to risk categorization.

Type ofInvestment

Risk Categories

2

3

Carrying Amount

Market Value

U. S. Government Securities State Investment Pool

$===0=.009, $ l 001 568 86 $==="""0"0"0" $ 1,001,568.86 $1,030,521.54
2,570,042.93 2,270,042.93

S 3,511 611.12 $ 3 600 564 41

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. JISPA-6, GolfCourse and Renovation ofConvention Center, Jekyll Island, Georgia not to exceed the sum of$7,500,000.00. The following is an analysis of the funding available for this project as of June 30, 1995.

Balance July 1, 1994

$ 7,446,894.99

Less: Revenue Recorded

399,797.52

Balance June 30, 1995

$7,047,097.47

The Authority has contracted with an architect for services related to the GSFIC Project No. JISPA-6 and subsequent to June 30, 1995, entered into a contract for construction of this project for approximately $6,000,000.00.

- 17 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 4: GENERAL LONG-TERM DEBT

BONDS PAYABLE
The changes in bonds payable during the fiscal year ended June 30, 1995, are as follows:

Semi-Annual Annual Debt

Interest

Retirement

Series Payment Dates Date

Balance July I, 1994

Balance Retirements June 30, 1995

1971 Apr 1 - Oct 1 1972 Jan 1 - Jul 1

Oct 1 Jul I

$110,000.00 $ 80,000.00 $ 30,000.00

180,000.00

35,000.00 145,000.00

$22Q,0Q01QQ $J1S,Q00,QQ $ 115,Q00,Q0
Annual debt service requirements to maturity for bonds are as follows:

Fiscal Year Ending June 30

Principal

Interest

Total

1996 1997 1998

$ 30,000.00 $ 15,000.00
130,000.00

7,055.00$ 37,055.00 5,915.00 20,915.00 2,762.50 132,762.50

$ 115,Q0Q,QQ $ 15 732.SQ $ 190132 SQ

A schedule of bond indebtedness by year, excluding interest, is presented on Schedule "4" 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 ofSl,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 June 30, 1995, the unpaid balance of appropriations was $268,750.00.

- 18 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEl\ffiNTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE 4: GENERAL LONG-TERM DEBT

ADVANCES THROUGH THE DEPARTMENT OF NATURAL RESOURCES REPAYMENT OF STATE APPROPRIATIONS
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 terms 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 15, 1990. Repayment ofthese proceeds is to be made by the Authority to the State ofGeorgia through the Department ofNatural Resources. At June 30, 1995, the unpaid balance ofbond proceeds was $3,651,816.00.

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 $7,500,000.00 and interest of $4,574,752.00 over a twenty year period in annual installments beginning June 15, 1994. Repayment of these proceeds is to be made by the Authority to the State ofGeorgia through the Department ofNatural Resources. At June 30, 1995, the unpaid balance of bond proceeds was $11,302,380.00.

The aggregate future annual payments for advances through the Georgia Department ofNatural Resources as ofJune 30, 1995, including principal and interest are as follows:

Fiscal Year Ending June 30

1996 1997 1998 1999 2000 Thereafter

$ 888,185.00 888,943.00 890,073.00 891,069.00 892,085.00
10,772,591.00

s1s.222.946:oo

- 19 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEl\ffiNTS
JUNE 30, 1995

EXHIBIT "G"

NOTE4: GENERALLONG-TERMDEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1995, the following changes occurred in the General Long-Term Debt Account Group:

Bonds Payable

Compensated Absences

Advances Through the Department ofNatural Resources

Total

Balance July 1, 1994

$ 290,000.00 $ 421,309.17 $16,110,156.00 $16,821,465.17

Deductions

Annual Leave Earned and

Utilized (Net)

Salaries

Salaries Related

Fringe Benefits

Repayment of State

Appropriations

Repayment of General

Obligation Bond

Proceeds and Interest

Retirement ofBonds

Payable

-115,000.00

-33,242.15 -2,543.03

-53,750.00

-33,242.15 -2,543.03 -53,750.00

-833,460.00

-833,460.00 -115,000.00

Balance June 30, 1995

$ 175,000.00 $ 385,523.99 $15,222,946.00 $15 783,469.99

NOTE 5: TRANSACTIONS WITH THE STATE OF GEORGIA

LEASES JEKYLL ISLAND
Under provisions of the Official Code ofGeorgia Section 12-3-241, the State of Georgia granted a lease to the Jekyll Island State Park Authority for "Jekyll Island" for a term of 99 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.

- 20-

JEKYLL ISLAND STATE PARK AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "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 of the 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 ofthe 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 of this nature as direct financing leases for IlSPA Revenue derived from these leases during fiscal year 1995 amounted to $64,075.65. Future minimum rentals, including bond interest, on these leases are as follows:

Fiscal Year Ending June 30

1996 1997 1998

$ 37,055.00 20,915.00 132,762.50

$ 190732.50

Cash and cash equivalents in the amount of $35,432.28 is available in the Debt Service Fund to reduce the future minimum rentals.

NOTE 6: RISK MANAGEMENT

Public Entity Risk Pool

The State Personnel Board, Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia and units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board, Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State
Personnel Board.

- 21 -

JEKYLL ISLAND STATE PARK AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT"G"

NOTE 6: RISK MANAGEMENT
Other Risk Management
The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance is purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Jekyll Island State Park Authority is covered by the State ofGeorgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment.
NOTE 7: DEFERRED COMPENSATION PLAN
The State 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 oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report ofthe State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1995.
NOTES: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The Jekyll Island State Park Authority participates in the Employees' Retirement System of Georgia ("ERS"), a single-employer, defined benefit plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees ofthe State of Georgia. The Authority's payroll for the year ended June 30, 1995, for employees covered by ERS was $3,685,072.61. The Authority's total payroll for all employees was $5,042,327.86.

-22 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "G"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Benefits The benefit structure of ERS was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions.
Members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless of age.
Contributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofannual compensation and 4.75% of annual compensation paid by the Authority on behalf of the employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Authority also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1995, the ERS employer contribution rate for the Authority amounted to 16.08% of covered payroll and included the 4.75% contributed on behalf of the employee referred to above. Contributions are also made on amounts paid for accumulated leave of retiring employees. Jekyll Island State Park Authority has elected to pay the employee's contribution requirements.
Total contributions to the plan made during fiscal year 1995 amounted to $592,663.60, which were made by the Authority. These contributions met the requirements of the plan.
Funding Status and Progress Pension Benefit Obligation
The amount shown as the "pension benefit obligation" is a standardized disclosure measure of the present value ofpension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due and make comparisons among employers. The measure is the actuarial present value of credited projected benefits, and is independent of the funding method used to determine contributions to the plan.
- 23 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT"G"

NOTES: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
The pension benefit obligation was computed as part ofan actuarial valuation performed as ofJune 30, 1994. Significant actuarial assumptions used in the valuation include the following:

I) The present value offuture pension benefits paid was computed using a discounted rate of7.5 percent. This rate is also the same rate assumed to be earned on investments in the plan in future years.

2) Future pension payments reflect the following assumed salary increases as a result ofinflation and merit increases:

Age

Percentage

20

9.5%

25

8.5%

30

6.5%

35

6.0%

40 to 65

5.7%

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

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

- 24 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATE1\1ENTS
JUNE 30, 1995

EXHIBIT "G"

NOTES: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation

Pension Benefit Obligation:

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

$ 2,227,653,000

Current Employees

Accumulated Contributions

648,516,000

Employer-Financed Vested

1,085,190,000

Employer-Financed Nonvested

1,206,805,000

Total Pension Benefit Obligation

$5,168,164,000

Net Assets Available for Benefits

4,858,015.000

Unfunded Pension Benefit Obligation

$ 310,149.000

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as ofthe same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers.

Funding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date.

Total contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Authority's contribution was actuarially determined and represented 0.23% of total contributions made by all participating employers.

- 25 -

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT"G"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Funding Policy
Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation.
Trend Information Historical trend infonnation is presented in the financial report ofERS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.
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, 1995, were maintained in cash or cash equivalents at Trust Company Bank, Brunswick, Georgia. The value of those assets at June 30, 1995 was $105,249.55.
NOTE 9: OTHER FINANCIAL NOTES
SALES PROMOTION 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.
NOTE 10: LEAVE POLICIES
Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment.
-26-

JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "G"

NOTE 10: LEAVE POLICIES
Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employees'
length ofcontinuous State service with a maximum accumulation of forty five days. Employees are paid for
unused accumulated annual leave upon retirement or termination of employment. See Note 1 - 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 11: 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 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, 1995.
NOTE 12: 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, 1995. Under this agreement the Public Employee Dishonesty Coverage insures the Authority to a maximum ofSl,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance of Duty Coverage insures the Authority to a maximum of $1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
All employees of the Jekyll Island State Park Authority are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 012292 6 and 626 012294 4, on which premiums were paid to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the Authority to a maximum of $9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 27 -

5sz ~lx-o\Jg
!
,!

SUPPLEMENTARY INFORMATION - 29-

JEKYLL ISLAND STATE PARK AUTHORITY COMBINING STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
DEBT SERVICE FUND YEAR ENDED JUNE 30, 1995

EXHIBIT H"

CASH RECEIPTS
REVENUES COLLECTED
Transfers from Budget Fund as Required by Trust Indentures
Interest Received
Total Cash Receipts
CASH tiND CASH EQUIVALENTS-JULY 1, 1994

TOTAL

1968 SERIES

1971 SERIES

1972 SERIES

$

64,075.65

1,926.87 $

$

66,002.52 $

86,803.93

$ 16.55
16.55 $
2,348.67

60,923.15 $ 206.19
61,129.34 $
11,638.80

3,152.50 1,704.13
4,856.63
72,816.46

$ 152,806.45 $

2,365.22 $

72.768.14 s _ _n_.s_73_.oe_

DISBURSEMENTS
EXPENDITURES PAID
Interest on Bonds Paying Agent Fees
Total Expenditures Paid
OTHER FINANCING USES (SOURCES)
Bonds Retired Matured
Operating Transfers In Operating Transfers Out
Total Other Financing Uses (Sources)
Total Disbursements
CASH AND CASH EQUIVALENTS-JUNE 30, 1995

$

10,715.00

38.77 $

$

10,753.77 $

$ 115,000.00 -10,743.84 2,364.24 $
$ 106,620.40 $
$ 117,374.17 $
35,432.28

$ 0.98
0.98 $

3,500.00 $ 9.69
3,509.69 $

7,215.00 28.10
7,243.10

$ 2,364.24 2,364.24 $ 2,365.22 $
0.00

80,000.00 $ -10,743.84
69,256.16 $ 72,765.85 $
2.29

35,000.00
35,000.00 42,243.10 35,429.99

$ 152,806.45 $

2,365.22 $

72.768.14 s _ _ _11_.s_1_3_._oe_

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

JEKYLL ISLAND STATE PARK AUTHORITY COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"!"

FUND Temporary Employees' Retirement Program

ASSETS/ LIABILITIES JULY 1, 1994

ADDITIONS

DELETIONS

ASSETS/ LIABILITIES JUNE 30, 1995

$

89,256.21 $ 11a,1s9.B9 $ 102,176.55 $ _ _ _10_5_.2_4_9_.5_5

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 APPROVED BUDGET YEAR ENDED JUNE 30, 1995
FUNDS AVAILABLE REVENUES
Other Revenues Retained
EXPENDITURES Personal Services Regular Operating Expenses Travel Equipment Telecommunications Per Diem, Fees and Contracts Capital Outlay Payments to the Department of Natural Resources

ORIGINAL BUDGET
$ 16,924,031.00
$ 6,913,366.00
3,641,469.00 83,525.00
271,645.00 74,080.00
452,736.00 4,600,000.00
887,210.00
$ 16,924,031.00

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

JEKYLL ISLAND STATE PARK AUTHORITY CASH AND CASH EQUIVALENTS
JUNE 30, 1995

SCHEDULE "2

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

$

-640.69

7,223.76 $

6,583.07

$

9,337.64

35,432.28

106,948.45

2,570,042.93

2,721,761.30

16,370.00

$ 2,744,714.37

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

JEKYLL ISLAND STATE PARK AUTHORITY INVESTMENTS JUNE 30, 1995

SCHEDULE "3"

INVESTMENT TYPE
Certificates of Deposit Coastal Bank of Georgia, Brunswick, Georgia No.27394
U. S. Treasury BUls Bamett Bank, Jacksonville,Florida No. 912794T61 No. 912794X58 No.912794Y99
U.S. Treasury Note Bamett Bank, Jacksonville, Florida No. 912827096

PURCHASE DATE

MATURITY DATE

AMOUNT

February 6, 1995

August 6, 1995

$ 275,328.66

December 15, 1994 March 9, 1995 June 1, 1995

December 14, 1995 March 7, 1996 May 30, 1996

248,311.00 254,929.25 249,461.42

August 31, 1994

August 31, 1996

248,867.19

$ 1,276,897.52

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

JEKYLL ISLAND STATE PARK AUTHORITY
BONDED INDEBTEDNESS JUNE 30. 1995

SCHEDULE"4"

PAYMENTS DUE IN FISCAL YEAR ENDING JUNE 30
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

$

30,000.00 $

15,000.00

130,000.00

30,000.00
$

15,000.00 130,000.00

$

175,000.00 $

30,000.00 $ 145,000.00

(A)

(B)

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 35-

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30, 1995

PROGRAM
National Endowment for the Humanities National Foundation on the Arts and the Humanities Promotion of the Humanities Through Georgia Humanities Council

CFDA NUMBER
45.129

SCHEDULE "5"

AMOUNT

------ $

797.73

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 36-

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF OTHER REVENUES RETAINED
YEAR ENDED JUNE 30, 1995

SCHEDULE "6"

State of Georgia Through Department of Natural Resources Authority Lease Rentals Less: Transfers to Debt Service Fund as Required by Trust Indentures
Contracts Georgia State Financing and Investment Commission Project Number JISPA - 6
Georgia Department of Industry, Trade and Tourism
Hotel/Motel Tax
Rental Income Building Rentals Business Leases Bicycle Rentals Cable Service Rentals Convention Center Rentals Equipment Rentals Golf Cart Rentals Lot Rentals Picnic Areas Site Rentals
Sales and Services Alcoholic Beverage Sales Less: Purchases for Resale
Ambulance Services Annual Decal Sales Concession Sales
Less: Purchases for Resale
Day Camp Fire Protection Fees Food Sales
Less: Purchases for Resale
Fuel Sales Less: Purchases for Resale
Golf Miscellaneous Parking Fees Plants Special Events Storage Tennis Tours Water Park Water, Sanitation and Sewage

$

64,075.65

-64,075.65 $

0.00

399,797.52 1,000.00
1,044,420.36

$

59,563.98

1,608,511.76

55,633.40

10,835.12

253,025.53

3,052.51

921,579.15

210,655.00

4,365.35.

370,194.22

3,497,416.02

$ 323,907.26 -99,794.71 $ 224,112.55

$ 279,358.58 -163,627.94

18,665.71 116,666.50
115,730.64

$ 2,07.,094.63 -813,259.44

14,608.34 373,007.37
1,260,835.19

$

6,072.76

-2,418.25

3,654.51

1,905,948.14 11,440.64
1,092,863.00 4,276.88 36,013.45 1,839.60 20,324.62
262,098.80 1,179,881.06
910,655.74

7,552,622.74

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

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF OTHER REVENUES RETAINED
YEAR ENDED JUNE 30, 1995

SCHEDULE "6''

Other Advertising Applied Penalties Bank Card Processing Fees Beach Music Festival Building Permits Bureau Dues Commissions Country Music Festival Coupon Income Donations Education Program Food Service Gratuities Insurance Recoveries Interest on Investments Liquor, Stamps and Licenses Tournaments Vendor's Compensation on Sales Tax Collections Water Analysis

$ 100,435.17 15,201.13 -44,394.64 90,380.34 2,274.00 1,914.00 31,021.85
116,028.85 32,422.00 504.64 11,543.78
137,084.16 17,590.00
161,332.76 82,023.83 5,987.46 2,066.32 7,609.12 $ _ _7_7_1.._0_24_._77_
$ 13,266,281.41

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

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30, 1995

SCHEDULE '7"'

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

$

3,568.98

15,998.94

41,242.38

$

2,286.51

260.19

2,185.92

4,732.62

616,916.63 3,171.02

$ 685,630.57

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

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF SALES PROMOTION AND PUBLIC RELATIONS EXPENSE
YEAR ENDED JUNE 30, 1995

SCHEDULE s-

ADVERTISING, BULLETINS, ENTERTAINMENT AND OTHER EXPENSE
Albany Herald Adams Publishing Company American Auto Association American Sound Video Andersons Campground Directory Atlanta Golfer Magazine Atlanta Journal Atlanta Lawn Tennis Association Atlantic Neon Atwood Convention Publishing Briar Patch Browning Publications Brunswick Chamber of Commerce Brunswick News Cable Advertising of Metro Atlanta Cablevision Advertising Cash Magazine, Incorporated Caton.Jan Chattanooga Publishing Continental Cablevision Convention South Dixon.Keith Dyanne Ryan - IACVB Elrick & Lavidge Express Printing Faulkenberry Certain Adventure First Georgia Florence WIiiiams Florida Running Florida Tunes-Union Frederica Academy Parents Association Fredrich and Associates Georgia Association of Christian Schools Georgia - Florida Georgia Golf News Georgia Press Association Georgia Public Health Association Georgia Trend Magazine Gill, Archie Glynn County Recreation Department Glynn Press Going Places Golden Isles Golf Digest GSEA Guide of Georgia Handout Publishing Harbor Sound Hovis, Lee Island Tours Inside Communications Jek~IGoldenlslander Jekyll Island Art Association Jekyll Island Club Hotel Jekyll Pharmacy
See accompanying notes and Independent Accountant's Combined Report on Review of
Financial Statements and Supplementary Information.
-40-

$

2,803.36

2,380.00

275.00

15.12

527.00

1,475.00

74,501.19

2,000.00

142.25

1,950.00

21.96

1,530.00

75,625.00

6,275.70

5,974.00

1,320.00

2,790.00

210.00

6,052.50

3,459.50

45.00

50.00

350.00

10,444.00

8,948.50

41,648.64

1,491.93

1,361.57

310.00

3,070.70

500.00

2,580.82

175.00

180.00

8,767.56

700.00

125.00

2,244.00

100.00

225.00

1,808.60

10,841.00

110.00

34,676.50

1,385.00

500.00

475.00

58.35

38.21

1,254.47

228.00

42.00

50.00

334.92

47.11

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF SALES PROMOTION AND PUBLIC RELATIONS EXPENSE
YEAR ENDED JUNE 30, 1995
ADVERTISING, BULLETINS, ENTERTAINMENT AND OTHER EXPENSE
Jones, Chuck J. S. Walker and Associates Kaufman Associate& La,,-r Corporation Literacy Council Macon Telegraph and News Matthews, Blair Maxwell's McQuiddy Printing Company Media Distribution Services Miller, Pam Mint Magazine Mulberry Music National Contract Marketing Naegele Outdoor Advertising Neeld Printing House New South Publishing, Incorporated North American North Florida Golf O'Berg, Barry Olga McMillan Instructor Pangburn& Candy Paramount Miller Press Patton, Cliff Paulk, Johnny Plantation Basket Company Publication Concepts RCMA
Radisson Rathbum, Robert Reagin Printing Roberts, Meg Rominger, John Rotary International District Rowell, Sylvia Ruff, Chris Running Journal Rutter Communications RV Times SGMP Savannah News Seabreeze Senior Citizens Voice SouthArt Southeast Tourism Society Southern Bell Southern Cable Advertising Southern Living Tee Time Magazine The Business Center The Charlotte Observer The Garden Shop The Menu Book, Incorporated
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 41 -

SCHEDULE 8"

$

45.25

2,747.38

325.00

3,902.12

35.00

16,973.99

31.07

21.00

70,018.50

490.38

413.93

6,340.00

350.00

1,700.00

4,160.00

556.25

8,415.00

11,500.00

900.00

100.00

50.00

151.71

19,647.31

245.00

228.00

178.00

21,318.00

2,600.00

63.53

75.87

22,1as.n

60.00

658.13

465.00

487.58

50.00

30.00

3,392.00

2,371.50

20.00

239.44

2,825.00

2,023.00

78.00

283.14

331.33

3,500.00

17,809.20

2,252.00

495.00

11,024.64

39.50

475.00

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF SALES PROMOTION AND PUBLIC RELATIONS EXPENSE
YEAR ENDED JUNE 30. 1995
AD\IERTISING, BULLETINS, ENTERTAINMENT AND OTHER EXPENSE
The Photo Place The State Record Company Thompson,Tocld Titan Fastener Products ToolTme Touch Georgia Traub, Doug Trip South Ultra Type
United Way U.S.Cable U.S.Postmaster U. S. Tennis Association U. S. Toy Company U.S. Travel Data Center
Video Copy Services WALBTV
WAEV WAWS WBGA WCHY WEJZ WHFX WIVY WTLV WYNR WXMK Waycross Journal Herald Weidhass, Amy Wheeler's Resort Guide Whitehawk Pictures Woodall's Publishing

SCHEDULE e-

$

13.50

8,531.56

50.00

2'40.99

106.00

500.00

795.68

1,530.00

39.00

224.00

245.20

9,612.00

1,175.00

601.52

800.00

90.45

500.00

2,316.00

558.50

1,500.00

250.00

2,005.00

912.00

4,555.75

2,830.50

1,000.00

1,133.00

982.20

110.63

1,269.00

61.00

3,206.17

$ 616,916.63

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-42-

JEKYLL ISLAND STATE PARK AUTHORITY RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30, 1995

SCHEDULE "9"

Totals per Annual Supplement
Adjustments Aqua Plant Control Brunswick Chamber of Commerce Camp, Danny Coastal Eye Care Consultants International Darco, Incorporated David M. Griffith and Associates Ecolab Environmental Turf Federal Express Jordan and O'Donnell Kelly, Lewis Law, Georgia Department of Lewis, Tom Lundahl, Kathleen Matson, Roland F. Overholt, Patricia PC Simonton Rigby, Glenn SE Chemists Lab Spaulding, Rita The Big Tree Company University of Georgia Westmacott, Richard Whelchel, Brown, Readclick, 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 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

$ 2n,394.12 $

1,795.71 $

TOTAL 279,189.83

-27,500.00 -75,000.00
1,000.00 48.00
500.00 -5,800.00
495.00 -189.95 -5,850.00
-52.00 236.55 -319.50
52.00 628.90 -200.00 -3,408.07 -50.00 -12,049.90 -304.50 -800.00 -236.55 -12,600.00 -20,371.00 702.54
3 016.17

-237.00

-27,500.00 -75,000.00
1,000.00 48.00 500.00
-5,800.00 495.00 -189.95
-5,850.00 -52.00 236.55
-319.50 52.00
628.90 -200.00 -3,645.07 -50.00 -12,049.90 -304.50 -800.00 -236.55 -12,600.00 -20,371.00 702.54
31016.17

Totals per Report

$ 119,341.81 $

1,558.71 $ 120,900.52

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 43-

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, 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

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

Audit Control Number

Status ofFinding

910-94-01 910-94-02 910-94-03 910-94-04 910-94-05

See Audit Control Number 910-95-01 See Audit Control Number 910-95-02 See Audit Control Number 910-95-03 See Audit Control Number 910-95-04 See Audit Control Number 910-95-05

PRIOR YEAR/CURRENT YEAR

GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain a Property Management System Financial Statements Audit Control Number 910-95-01

The review report for the year ended June 30, 1994, reported that the property management system used by the Jekyll Island State Park Authority was inadequate. For the year under review, our review revealed that the Authority could not provide a detailed listing of equipment currently owned by 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 ofa 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 if historical 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 of the deficiencies noted above, we were unable to determine the total equipment inventory valuation that should be recorded in a General Fixed Assets Account Group.

ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Financial Statements Audit Control Number 910-95-02

The review report for the year ended June 30, 1994, noted that internal accounting control procedures of the Jekyll Island State Park Authority did not provide for an adequate separation of duties in the performance of certain accounting functions and related procedures. For the year under review, a limited review of these procedures revealed that the Authority had made no significant changes that would provide for an adequate separation of duties in the following control categories:

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995

PRIOR YEAR/CURRENT YEAR

ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Financial Statements Audit Control Number 910-95-02

(1) 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 segregation of duties relative to the above control categories and implement those procedures to strengthen controls over the accounting function.

CASH AND CASH EQUIVALENTS Accounting /Internal Control Deficiencies Financial Statements Audit Control Number 910-95-03

The review report for the year ended June 30, 1994, reported the accounting procedures and internal controls ofthe Jekyll Island State Park Authority were found to be inadequate in the area of cash and cash equivalents. For the year under review, deficiencies continued to exist. The following is a summary of the prior year deficiencies including corrective action taken, if any, and current deficiencies revealed during our review:

Disbursing Account (1) The bank reconciliation for the year ended June 30, 1994, contained a lump-sum amount of $7,632.09 on the outstanding check list for which the Authority was unable to identify by individual check number or by payee. During the year under review, this amount was written off by the Authority.

Income Account (1) For the year ended June 30, 1994, credit card fees and billing adjustments were not properly posted to the general ledger. For the year under review, the Authority properly posted credit card fees and billing adjustments to the general ledger.

(2) For the year ended June 30, 1994, 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. For the year under review, the Authority continued to make journal entries without proper explanation or documentation. Unsupported journal entries to cash results in a lack of control to safeguard assets.

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
CASH AND CASH EQUIVALENTS Accounting /Internal Control Deficiencies Financial Statements Audit Control Number 910-95-03
(3) For the year ended June 30, 1994, cash over/short was improperly netted against sales revenues. For the year under review, the Authority continued to net cash over/short against sales revenues. An analysis of sales revenue for the test month of June revealed a net cash overage of$741.45 was included as sales revenue. The practice of netting cash over/short against sales results in the incorrect classification of revenue.
(4) For the year ended June 30, 1994, the income bank account could not be reconciled to the general ledger resulting in an unidentified variance of$4,377.13 remaining in the account at year end. For the year under review, bank reconciliations for the months ofMarch, April and May 1995 were not performed until requested by the auditors. In addition, the bank reconciliation performed by the Authority for June 30, 1995, contained an unidentified variance of$352.96. This amount includes an unsupported adjustment of $296.97 made by the Authority. These deficiencies were the result of the Authority's lack of supervision over the bank reconciliation function and the failure to perform bank reconciliations and make correcting entries to the general ledger in an accurate and timely manner.
(5) During the year under review, delays ofup to five days were noted in depositing receipts in the bank. This occurred because of management's failure to ensure cash receipts are deposited on a timely basis.
Payroll Account (1) The review report for the year ended June 30,1994, stated that bank reconciliations for April, May, and June 1994 were not performed until December 1994. For the year under review, all bank reconciliations for the Payroll bank account were performed in a timely manner.
(2) For the year ended June 30, 1994, book balances per bank reconciliations for several months did not agree with the general ledger resulting in an unidentified variance of $1,566.12 remaining in the account at year end. During the year under review, monthly bank reconciliations included unidentified amounts for several months in order to reconcile with the general ledger. At June 30, 1995, an unsupported journal entry of$2,434.85 (net) was made to bring the book balance per the bank reconciliation into agreement with the general ledger.

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
CASH AND CASH EQUIVALENTS Accounting /Internal Control Deficiencies Financial Statements Audit Control Number 910-95-03
(3) For the year ended June 30, 1994, amounts recorded on the general ledger accounting system were not supported by underlying subsidiary payroll journals. For the year under review, it was noted that data per the general ledger was again not supported by the subsidiary payroll ledgers for severaJ months.
(4) For the year ended June 30, 1994, check registers for the months of January and June 1994
were unavailable and had to be recreated from the payroll databases. For the year under review,
all monthly check registers were available for the payroll bank account.
(5) The Authority incorrectly recorded salaries for the months of September, October, and November 1994, resulting in cash being understated and salaries being overstated by $1,962.66, $2,947.00, and $1,467.07 for the respective periods. Correction of these errors could not be documented by the Authority.
The Authority should develop policies and procedures for bank accounts to ensure that: (1) journaJ entries made to the general ledger contain adequate explanations and supporting documentation, (2) cash over/short is recorded in a separate account rather than netted against revenues, (3) bank accounts are reconciled in a timely manner and agree with the generaJ ledger, (4) deposits are made in a timely manner, and (5) accounting functions are properly supervised. In addition, fund requests made for salaries should be supported by subsidiary ledger accounts for an amount that is equaJ to saJary expense for the period.
Petty Cash A petty cash count was performed by auditors in February 1996 and revealed a shortage of $200.00.
The Authority should maintain petty cash in the genera] ledger at appropriate amounts as well as perform periodic petty cash counts to verify the accuracy of genera] ledger amounts.
INVENTORIES Inadequate Supply/Resale Inventory Records Financial Statements Audit Control Number 910-95-04
The audit report for the year ended June 30, 1994, reported that the internal accounting control procedures for the supply and resaJe perpetual inventory system for Jekyll Island State Park Authority were deficient. For the year under review, deficiencies continued to exist. The following is a summary of the prior year deficiencies including corrective action taken, if any, and current deficiencies revealed during our review:

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
INVENTORIES Inadequate Supply/Resale Inventory Records Financial Statements Audit Control Number 910-95-04
(I) For the year ended June 30, 1994, the inventory cost summary sheets were not accurately added and extended. For the year under review, summary sheets were accurately added and extended.
(2) For the year ended June 30, 1994, the inventory subsidiary records did not support the general ledger account balance. For the year under review, the inventory subsidiary records again did not support the general ledger account balance. This deficiency was the result ofthe Authority's lack of controls to ensure inventories are properly maintained.
(3) For the year ended June 30, 1994, a physical inventory count for the uniform inventory was not performed. In addition, the Authority could not provide a detail listing of the uniform inventory at June 30, 1994. During the year under review, the Authority made an adjustment in the amount of $94,326.21 to write down the general ledger account for uniform inventory. This adjustment is reflected on the Combined Statement ofChanges in Fund Balances (Statutory Basis), Exhibit "B" of this report. At June 30, 1995, a physical inventory count for the uniform inventory was not performed and the Authority could not provide a detailed listing of uniform inventory recorded on the general ledger at June 30, 1995. This condition results in the financial statements of the Authority being incomplete and causes uncertainty as to the transactions that occurred during the period.
(4) For the year ended June 30, 1994, sampling of the perpetual inventory records revealed significant errors in the items on hand and the perpetual records. For the year under review, an inventory listing as ofFebruary 22, 1996, was provided for examination and was utilized to test the accuracy and validity ofthe perpetual inventory records. A sample of25 items was randomly selected from this inventory listing. The results of test physical count procedures revealed that 20 items could not be reconciled from the physical count to the inventory listing.
(5) The Authority also provides items for resale which are not included in the Authority's perpetual inventory system. These items included alcoholic beverages, concessions and food. The purchases for resale amount for these items as reflected on the Schedule of Other Revenues Retained for the fiscal year amounted to $99,794.71, $163,627.94 and $813,259.44, respectively. The recording of inventories as purchases for resale is not consistent with the Authority's other practices of accounting for resale inventories.
These deficiencies occurred because of management's failure to establish inventory policies and procedures.

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
PRIOR YEAR/CURRENT YEAR
INVENTORIES Inadequate Supply/Resale Inventory Records Financial Statements Audit Control Number 910-95-04
The Authority should take appropriate action to establish accounting controls and procedures to provide for proper accountability of inventories. As a result of the deficiencies noted above, which include the uncertainties of the account balances and the failure to record certain inventories, we were unable to satisfy ourselves as to the accuracy of the 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 910-95-05
The review report for the year ended June 30, 1994, disclosed that the subsidiary records of salary payments made to employees did not reconcile with the amounts recorded as salaries in the general ledger as presented for examination. This unlocated variance amounted to $420.90. For the year under review, the subsidiary records of salary payments made to employees again did not reconcile with the amounts recorded as salaries in the general ledger. The unlocated variance amounted to $61,268.08. This condition occurred because of management's failure to correctly post amounts from the payroll journals to the general ledger and to reconcile the quarterly subsidiary records to the general ledger. The Authority should ensure that journal entries posted to the general ledger are supported by the payroll journal, and the quarterly subsidiary records are balanced to the general ledger.
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Voucher Sample Exceptions Financial Statements Audit Control Number 910-95-06
For the year under review, an examination of eighty-one expenditure vouchers was performed to test the validity and accuracy ofthe transactions. The vouchers examined revealed the following deficiencies:
(I) One voucher was incorrectly paid.
(2) One voucher was paid from a copy rather than an original invoice.
(3) Four vouchers did not contain an invoice.

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Voucher Sample Exceptions Financial Statements Audit Control Number 910-95-06
(4) Ten vouchers lacked supporting documentation and\or were paid from credit cardstatements.
(5) Thirty-one vouchers lacked purchase orders.
(6) Three travel vouchers were paid without required travel reimbursement forms.
These conditions have occurred because ofmanagement's failure to establish and implement controls over the disbursing function. The Authority should implement procedures to ensure expenditures are reviewed for accuracy, proper documentation, and compliance with State laws and regulations prior to payment and recording of such expenditures in the financial records. All expenditures should be supported by proper documentation including purchase orders, original invoices, and/or required travel reimbursement forms.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Maintain Temporary Employee Retirement Subsidiary Ledger Financial Statements Audit Control Number 910-95-07
The Authority provides a retirement plan for its temporary status employees referred to as the Temporary Employees' Retirement Program (TERP). The retirement plan requires earnings be to allocated twice a year to the individual accounts. Investment earnings were not allocated to the individual accounts for the fiscal year. In addition, the Authority could not produce a subsidiary ledger ofparticipating employees for the TERP funds for the fiscal year ended June 30, 1995. However, the Authority did provide a subsidiary ledger for examination which included activity through August 1995. The Authority's reconciliation of the August 1995 subsidiary ledger to the general ledger liability account, which was performed during February 1996, revealed an unidentified variance ofSl,910.04. These deficiencies were a result of management's failure to establish procedures for maintaining the subsidiary ledger of participating employees and failure to provide adequate supervision to ensure plan requirements are being met.
The Authority should reconcile the subsidiary ledger of participating employees to the general ledger on a monthly basis. In addition, the Authority should establish procedures that clearly indicate departmental responsibilities and perform reviews to determine that procedures are implemented.

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
EMPLOYEE COMPENSATION Accounting/Internal Control Deficiencies Financial Statements Audit Control Number 910-95-08
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 ofemployee compensation. The following deficiencies were noted:
( 1) The Authority contracted with employees for various services without making payroll deductions or ~eluding such amounts in income reflected by W-2's. Also, the Authority did not issue 1099's to nonemployees providing services to the Authority on a contract basis. This condition occurred because of management's failure to comply with federal and state law pertaining to payroll withholdings and the issuance ofW-2's and 1099's.
(2) The Authority paid bonuses to three individuals without proper supporting documentation. Personnel files for these individuals included documentation for payment of bonuses at a percentage different from the percentage actually used by the Authority in paying the bonuses. The Authority could not document formal approval of the new percentages. In addition, the underlying records used to calculate the bonuses differed from amounts recorded in the accounting records. A comparison ofthe bonuses actually paid to amounts calculated using the undocumented percentage and based on the accounting records indicated an overpayment in the amount of$33,232.45 to the three individuals. Personnel should be paid bonuses in accordance with written guidelines which
have been formally approved in the official minutes ofthe Authority's Board meetings. In addition,
underlying records used to calculate bonuses should be traceable to the accounting records. The apparent overpayments occurred because ofmanagement's failure to formally adopt and adequately oversee a bonus compensation plan.
(3) A new position was created by the Director of Human Resource without Board approval. The position was exempt from overtime yet the individual received overtime payments throughout the
fiscal year. All new positions should be approved by the Board, and overtime payments should not
be paid to individuals in positions which are exempt from overtime payments. These coriditions occurred because ofmanagement's failure to obtain approval for the new position from the Board, and to pay according to the individual's employment contract.
(4) The Authority does not have a Board approved temporary employee pay scale. This condition occurred because management has failed to present a temporary pay scale to the Board for approval.

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
EMPLOYEE COMPENSATION Accounting/Intern.al Control Deficiencies Financial Statements Audit Control Number 910-95-08
(5) The FICA and Federal withholdings liability accounts included in the general ledger were overpaid at June 30, 1995. Unsupported journal entries were made to reduce the overpayments. The overpayments are a result of management's failure to monitor and maintain accurate accounting records.
The Authority should develop policies and procedures to ensure that: (1) all payments to employees for services are subject to withholdings and W-2's are issued where required, and that 1099's are issued to nonemployees providing services to the Authority, (2) all bonuses paid to employees are approved by the Board and are paid according to approved policies, (3) all new positions are approved by the Board and employees are paid according to their positions, (4) a Board approved temporary pay scale is established, and (5) the general ledger payroll withholding liability accounts are monitored throughout the year to ensure that funds are correctly disbursed. In addition, the Authority should review bonuses paid during fiscal year 1995 to ensure that individuals were not overpaid.