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REVIEW REPORT JEKYLL ISLAND STAlE PARK AUTIIORITY 
A COMPONENT UNIT OF TIIE STAlE OF GEORGIA 
YEAR ENDED JUNE 30, 1996 
 
 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 NOTES TO THE FINANCIAL STATEMENTS 
 
10 
 
SUPPLEMENTARY INFORMATION 
 
G COMBINING STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS 
 
DEBT SERVICE FUND 
 
28 
 
H STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
 
FIDUCIARY FUND TYPE - AGENCY FUND 
 
29 
 
SCHEDULES 
 
1 SCHEDULE OF APPROVED BUDGET 
 
30 
 
2 CASH AND CASH EQUIVALENTS 
 
31 
 
3 INVESTMENTS 
 
32 
 
4 SCHEDULE OF FEDERAL REVENUES 
 
33 
 
5 SCHEDULE OF OTHER REVENUES RETAINED 
 
34 
 
6 SCHEDULE OF OTHER OPERATING EXPENSES 
 
36 
 
7 SCHEDULE OF EXTRAORDINARY EXPENDITURES 
 
37 
 
8 SCHEDULE OF SALES PROMOTION AND PUBLIC RELATIONS EXPENSE 
 
38 
 
9 RECONCILIATION OF SALARIES AND TRAVEL 
 
41 
 
10 RECONCILIATION OF PER DIEM AND FEES 
 
42 
 
 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 (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
February 14, 1997 
 
Honorable Zell Miller, Governor Members ofthe 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 ACCOUNTANTIS COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION 
Ladies and Gentlemen: 
We have reviewed the accompanying financial statements (Exhibits A through F) of the Jekyll Island State Park Authority as of and for the year ended June 30, 1996, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of the Jekyll Island State Park Authority. 
A review consists principally of inquiries of agency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. 
Based on our review, with the exception ofthe matter described in the following paragraph, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1. 
As more fully discussed in Section II, Findings and Improper or Questioned Costs, material discrepancies were noted in the equipment inventory records of the Jekyll Island State Park Authority. Equipment inventory comprises the General Fixed Assets Account Group. We were unable to determine the effects these discrepancies may have on the financial statements. 
96ARL-5 
 
 Our review was made for the purpose of expressing limited assurance that there were no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Exhibits G and H and Schedules 1 through 10) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements and we are not aware of any material modifications that should be made thereto. 
Respectfully submitted, 
 
CLV:gp 96ARL-5 
 
Claude L. Vickers State Auditor 
 
 FINANCIAL STATEMENTS 
- 1- 
 
 JEKYLL ISLAND STATE pARK AUTHORITY 
 
COMBINED BALANCE SHEET <STATUTORY BASIS) 
 
ALL FUND TYPES AND ACCOUNT GROUPS 
 
JUNE 30. 1996 
 
 
 
Cash and Cash Equivalents (See Schedule) 
~nts 
(See Schedule) 
Accounts Receivable 
PrepaId Itema 
Inventories 
Fared Asseta Equipment 
Amount Available In Debt SeIvice Fund 
Amount 10 be Provided for Payment 01 Accrued Compensated Absences Advances through Department 01 Natural Resources General Obligation Bonds State Appropriations Bonds Payable 
 
GOVERNMENTAL FUND TYPES 
 
DEBT 
 
BUDGET 
 
SE~CE 
 
FIDUCIARY FUND TYPE 
AGENCY 
 
$ 3,536,431.39 $ 
 
$ 248,867.19 
 
$ 856,164.54 
 
$ 
 
6,870.00 
 
$ 116,712.41 
 
33,951.50 $ 
 
131,095.68 
 
Total Assets 
LIABILIT!ES AND FUND EaUITY 
Liabilities Accounts Payable Contracts Payable Deferred Revenue Convention Canter Advance Sales Fire Protection Fees Golf Advance Sales Museum Advance Sales Miscellaneous Payroll Withholdings Salaries Payable Funds Held for Others Bonds Payable Compan&8ted Absences Payable Repayment of Advances through the Department of Natural Re&OUrces 
Total'Liabilities 
Fund Equity Investment in General Fixed A&&ats Fund Balances R8&8rved Debt Service Unr8&8rved Unde&ignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
See Independent Accountanfs Combined Report on Review of Financial Statemenl& and Supplementary Information. 
The notes to the financial statements are an integral part of this statement. 
-2- 
 
$ 4,765,045.53 $ 
 
33,951.50 $_...:'~3.:.1',095=_.6.8. 
 
$ 435,468.54 63,503.58 
33,512.06 225,016.83 
10,820.47 3,260.00 
13,634.00 -202.01 
52,263.99 
 
$ 
 
131,095.68 
 
$ 837,277.46 
 
$ _---":.:;3..:.1,'O95=.:.::.68.=.. 
 
$ $ 3,927,768.07 $ 3,927,768.07 $ 
 
33,951.50 33,951.50 
 
$ 4,765,045.53 $ 
 
33,951.50 $ 
 
131,095.68 
 
 EXHIBITA 
 
ACCOUNT GROUPS 
 
GENERAl 
 
GENERAl 
 
FIXED 
 
LONG-TERM 
 
ASSETS 
 
DEBT 
 
TOTALS <Memorandum Only) JUNE 30, 1996 JUNE 30, 1995 
 
$ 3,701,478.57 $ 2,744,714.37 
 
$ 248,867.19 $ 1,276,897.52 
 
$ 856,164.54 $ 494,861.48 
 
$ 
 
6,870.00 $ 
 
0.00 
 
$ 116,712.41 $ 115,232.81 
 
$ 2,920,341.34 $ 
 
$ 33,951.50 $ 
 
2,920,341.34 $ 33,951.50 $ 
 
2,636,607.68 35,432.28 
 
$ 439,852.55 $ 439,852.55 $ 385,523.99 
 
14,119,761.00 215,000.00 111,048.50 
 
14,119,761.00 215,000.00 111,048.50 
 
14,954,196.00 268,750.00 139,567.72 
 
$ 14,885,662.05 $ 14,885,662.05 $ 15,748,037.71 
 
$ 2,920,341.34 $ 14,919,613.55 $ 22,770,047.60 $ 23,051,783.85 
 
$ 435,468.54 $ 458,390.21 
 
63,503.58 
 
0.00 
 
$ 145,000.00 439,852.55 
 
33.512.06 225,016.83 
10,820.47 3,260.00 13,634.00 -202.01 52,263.99 131,095.68 145,000.00 439,852.55 
 
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 
 
14,334,761.00 14,334,761.00 15,222,946.00 
 
$ 14.919,613.55 $ 15,887,986.69 $ 16,730,551.46 
 
$ 2,920,341.34 
 
$ 2,920,341.34 $ 2,636,607.68 
 
$ 2,920,341.34 
 
33,951.50 
 
35,432.28 
 
3,927,768.07 
 
3,649.192.43 
 
$ 6,882,060.91 $ 6,321,232.39 
 
$ 2,920,341.34 $ 14,919,613.55 $ 22,770,047.60 $ 23,051,783.85 
 
-3- 
 
 BtCLvvlc 'f) !f 
 
I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 
I 
 
 JEKYLL ISLAND STATE PARK AUTHORITY COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS) 
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1996 
 
EXHIBIT-B- 
 
FUND BALANCES - JULY 1 
Reserved Unreserved 
ADDITIONS 
Adjustments to Prior Year's Accounts Payable Cash Receipts for the Year 
Exhibit-EExcess of Funds Available over Expenditures 
Exhibit-C" Prior Year's Checks Voided Reimbursement of Prior Year's Expenditures Correction of Prior Year Inventories 
DEDUCTIONS 
Adjustments to Prior Year's Accounts Receivable Inventories 
Cash Disbursements for the Year Exhibit "E" 
Fund Balance Carried Over from Prior Year as Funds Available Reserved Unreserved 
FUND BALANCES - JUNE 30 
(To Exhibit "A") 
 
BUDGET 
 
DEBT SERVICE 
 
TOTALS (Memorandum Only) 
YEAR ENDED JUNE 30,1996 JUNE 30,1995 
 
$ $ 3,649,192.43 
$ 3,649,192.43 $ 
 
35,432.28 $ 
 
35,432.28 $ 3,649,192.43 
 
95,128.33 3,156,314.31 
 
35,432.28 $ 3,684,624.71 $ 3,251,442.64 
 
$ 
 
0.00 
 
$ 
 
3,870,590.35 0.00 
23,627.20 34,130.52 
 
$ 3,928,348.07 $ 
 
$ 
 
0.00 $ 
 
5,299.59 
 
35,576.51 
 
35,576.51 
 
66,002.52 
 
3,870,590.35 0.00 
23,627.20 34,130.52 
 
3,730,573.31 7,645.74 0.00 0.00 
 
35,576.51 $ 3,963,924.58 $ 3,809,521.16 
 
$ 
 
580,00 
 
0.00 
 
$ 
 
580.00 $ 
 
0.00 
 
0.00 
 
94,326.21 
 
$ 
 
37,057.29 
 
37,057.29 
 
117,374.17 
 
0.00 3,649,192.43 
$ 3,649,n2.43 $. 
 
0.00 3,649,192.43 
 
8,324.40 3,156,314.31 
 
37,057.29 $ 3,686,829.72 $ 3,376,339.09 
 
$ 3,927,768.07 $ 
 
33,951.50 $ 3,961,719.57 $ 3,684,624.71 
 
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
The notes to the financial statements are an integral part of this statement. -5- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
BUDGET FUND . YEAR ENDED JUNE 30,1996 
 
EXHIBIT He" 
 
FUNDS AVAILABLE REVENUES 
FEDERAL REVENUES (See Schedule) OTHER REVENUES RETAINED (See Schedule) 
Total Revenues CARRY-OVER FROM PRIOR YEAR 
Transfer from Unreserved Fund Balance 
Total Funds Available 
 
TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 
 
$ 
 
1,064.70 $ 
 
797.73 
 
19,321,504.46 13,266,281.41 
 
$ 19,322,569.16 $ 13,267,079.14 
 
3,649,192.43 
 
3,156,314.31 
 
$ 22,971,761.59 $ 16,423,393.45 
 
EXPENDITURES 
PERSONAL SERVICES 
Salaries and Wages Employer's Contributions for: 
F.I.CA 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) Extraordinary Expenditures (See Schedule) Publications and Printing Equipment Purchases 
TRAVEL 
 
$ 5,001,475.62 $ 5,042,327.86 
 
291,381.84 626,012.29 468,262.09 
5,210.00 
 
304,146.15 632,246.43 474,679.81 
5,602.00 
 
$ 6,392,341.84 $ 6,459,002.25 
 
$ 
 
100,883.08 $ 
 
1,036,995.83 
 
849,516.87 
 
725,280.15 
 
547,447.52 
 
721,987.73 
 
8,225.00 
 
40,591.38 
 
26,134.14 
 
$ 4,057,061.70 $ 
 
$ 
 
30,852.50 $ 
 
107,917.12 1,017,372.57 
848,905.78 727,867.31 623,630.07 685,630.57 
0.00 60,738.18 
0.00 
4,072,061.60 
35,453.44 
 
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. 1996 
 
EXHIBIT"C" 
 
EXPENDITURES EQUIPMENT 
Equipment Purchases Inventory 
Rental of Equipment 
TELECOMMUNICATIONS PER DIEM, FEES AND CONTRACTS 
Per Diem and Fees Contracts 
CAPITAL OUTLAY Per Diem, Fees and Contracts Contracts 
OTHER DEBT SERVICE Total Expenditures 
Excess of Funds Available over Expenditures 
 
TOTALS YEAR ENDED JUNE 30, 1996 JUNE 30, 1995 
 
$ 
 
283,733.66 $ 
 
216,939.34 
 
232,790.10 
 
234,042.10 
 
$ 
 
516,523.76 $ 
 
450,981.44 
 
$ 
 
67,738.83 $ 
 
78,403.39 
 
$ 
 
257,403.73 $ 
 
111,841.58 
 
120,900.52 160,971.27 
 
$ 
 
369,245.31 $ 
 
281,871.79 
 
$ 6,779,222.30 $ 
 
427,836.23 
 
$ 
 
888,185.00 $ 
 
887,210.00 
 
$ 19,101,171.24 $ 12,692,820.14 
 
3,870,590.35 
 
3,730,573.31 
 
$ 22,971,761.59 $ 16,423,393.45 
 
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 30.1996 
 
EXHIBIT "0" 
 
FUNDS AVAILABLE REVENUES 
Federal Revenues Other Revenues Retained 
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance 
 
BUDGET 
 
ACTUAL 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ 
 
0.00 $ 
 
1,064.70 $ 
 
12,359,303.00 19,321,504.46 
 
$ 12,359,303.00 $ 19,322,569.16 $ 
 
1,064.70 6,962,201.46 
6,963,266.16 
 
0.00 
 
3,649,192.43 
 
3,649,192.43 
 
$ 12,359,303.00 $ 22,971,761.59 $ 10,612,458.59 
 
EXPENDITURES 
Personal Services Regular Operating Expenses Travel Equipment Telecommunications Per Diem, Fees and Contracts Capital Outlay Debt Service 
 
$ 6,933,849.00 $ 6,392,341.84 $ 
 
3,659,824.00 
 
4,057,061.70 
 
68,366.00 
 
30,852.50 
 
244,159.00 
 
516,523.76 
 
73,820.00 
 
67,738.83 
 
491,100.00 
 
369,245.31 
 
0.00 
 
6,779,222.30 
 
888,185.00 
 
888,185.00 
 
541,507.16 -397,237.70 
37,513.50 -272,364.76 
6,081.17 121,854.69 -6,779,222.30 
0.00 
 
$ 12,359,303.00 $ 19,101,171.24 $ -6,741,868.24 
 
Excess of Funds Available over Expenditures 
 
$ 3,870,590.35 $ 3,870,590.35 
 
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. 1996 
 
EXHIBIT"E" 
 
CASH RECEIPTS REVENUES COLLECTED 
Transfers from Budget Fund as Required by Trust Indentures 
Interest Received Total Cash Receipts 
CASH AND CASH EQUIVALENTS - JULY 1! 1995 
DISBURSEMENTS EXPENDITURES PAID 
Interest on Bonds Paying Agent Fees 
Total Expenditures Paid OTHER FINANCING USES 
Bonds Retired Matured Total Disbursements 
CASH AND CASH EQUIVALENTS - JUNE 30.1996 
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- 
 
$ 33,902.50 
1,674.01 
$ 35,576.51 
35,432.28 
$ 71,008.79 
 
$ 
 
7,055.00 
 
2.29 
 
$ 
 
7,057.29 
 
30,000.00 
$ 37,057.29 
33,951.50 
$ 71,008.79 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30. 1996 
 
EXHIBIT "F" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY The Jekyll Island State Park Authority, is an instrumentality ofthe 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 ofthe Department ofNatural Resources or his or her designee and eight additional members appointed by the Governor. The management ofthe business and affairs ofthe Authority is vested in the Authority. The Authority is considered a component unit ofthe State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational and financial relationships with the State of Georgia. 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 ofits operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe 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 ofthe 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 ofthe 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. 
FIDUCIARY FUND TYPE 
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals. 
- 10- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 3D. 1996 
 
EXHIBIT "F" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
FUND ACCOUNTING 
ACCOUNT GROUPS 
GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at cost or at estimated historical cost ifhistorical cost is not practically determinable. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets. This methodology ofaccounting for general fixed assets differs from generally accepted accounting principles in that the Budget Fund ofthe Authority should be accounted for as a Proprietary Fund Type Enterprise Fund. Fixed assets utilized in the operations of proprietary fund types should be recorded as assets of such funds, rather than in the General Fixed Assets Account Group. The depreciation of such fixed assets should be recorded as an expense of proprietary fund types in order to more effectively determine the total cost of providing goods and services. 
The cost ofnormal maintenance and repairs that do not add to the value ofthe asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life ofthe assets are included in the General Fixed Assets Account Group. 
GENERAL LONG-TERM DEBT - The account group used to account for the unretired balance of bond issues created pursuant to Georgia Laws and the outstanding balance of appropriations and bond proceeds advanced to the Authority. In addition, the account group used to report the noncurrent portions of certain governmentallong-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 of the Authority should be reflected as a Proprietary Fund Type - Enterprise Fund. The liabilities and related expenses for the items listed above should be recorded as a part ofthe proprietary fund type in order to more effectively determine the total cost of providing goods and services. 
BASIS OF ACCOUNTING MEASUREMENT FOCUS 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the flow 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 and Debt Service Fund should be reflected as a Proprietary Fund Type - Enterprise Fund. In accordance with accounting practices prescribed or permitted 
- 11 - 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30.1996 
 
EXHIBIT "F" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF ACCOUNTING MEASUREMENT FOCUS 
by statutes and regulations ofthe State of Georgia, the Budget 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 
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (Le., when they are "measurable and available"). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities ofthe 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, 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. 
Contrl;lctUal obligations for goods and services which have not been received at the end ofthe fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. The recognition of encumbrances as expenditures ahd liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but is not consistent with generally accepted accounting principles, which 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 ofthe Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe 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 of the proprietary fund type involved. 
 
- 12- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY 
NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1996 
 
EXHIBIT "F" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPES DEBT SERVICE FUND 
The Debt Service Futtd is. maintained on the Cash Receipts and Disbursements basis of accounting as prescribed or pennitted by statutes and regulations ofthe State ofGeorgia. This basis ofaccounting is defined as that method of accounting in which certain revenue and the related assets are recognized when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred. To conform to generally accepted accounting principles, the Debt Service Fund should be reflected within the Proprietary Fund Type - Enterprise Fund and maintained on the accrual basis of accounting. 
FIDUCIARY FUND TYPE AGENCYFUND 
Agency Funds are custodial in nature and do not measure results of operations or have a measurement focus. The modified accrual basis of accounting is utilized for recognizing assets and liabilities. 
BUDGET A budget for the financial operations ofthe Jekyll Island State Park Authority is approved by the Authority at a selected meeting. The budget is not subject to review or approval by the Legislature of the State of Georgia and therefore, is a nonappropriated budget. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure ofthe aggregate budget. 
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents iilclude currency on hand, demand deposits with banks and other financial institutions, and cash management pools that have the general characteristics ofdemand 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 in excess ofthree 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 related to investments in derivatives or similar investments in Georgia Fund 1 as the investment policy ofOTFS does not provide for investments in derivatives or similar investments through the Georgia Fund 1. 
ACCOUNTS RECEIVABLE Accounts receivable 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 such amounts. 
 
- 13 - 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30. 1996 
 
EXHIBIT "F" 
 
NOTE 1: SUM:MARY OF SIGNIFICANT ACCOUNTING POLICIES 
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 ofthese 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. 
GENERAL FIXED ASSETS Accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia do not require the cost ofland and buildings to be recorded in the financial statements. This'method of accounting for these fixed assets is not consistent with generally accepted accounting principles, which provide for the recording offixed assets as assets ofthe fund when used in the operations of a Proprietary Fund Type - Enterprise Fund, which the governmental fund types ofthe 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. 
The liability for compensated absences at year end is reported in the General Long-Term Debt Account Group for governmental funds. 
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Statements (Statutory Basis) are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position, results of operations or changes in financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. 
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding 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. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. 
 
- 14- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30.1996 
 
EXHIBIT "F" 
 
NOTE 1: SlTh1MARY OF SIGNIFICANT ACCOUNTING POLICIES 
COMPARATIVE DATA The amounts reflected on the Combined Balance Sheet (Statutory Basis) at June 30, 1996 for the asset caption "Fixed Assets - Equipment" and the fund equity caption "Investments in General Fixed Assets" includes the addition of previously unrecorded equipment. (See Note 4) The amounts reflected for the asset and fund equity captions referred to above at June 30, 1995 have been restated to reflect these additions. 
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 ofa surety bond, the depository may pledge as collateral anyone or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: 
(1) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations of the United States or of the State of Georgia. 
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia. 
(3) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. 
(4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia. 
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. 
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia the option of exempting demand deposits from the collateral requirements. 
 
- 15 - 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 3D. 1996 
 
EXHIBIT "F" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
 
CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 1996, 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 
 
Canying Amount 
 
Bank Balances 
 
Risk Categories 
 
2 
 
3 
 
$ -24568357 $ 99632902 $ 27149792 $ 70367086 $ 21 16024 
 
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, 1996, 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. 
 
- 16 - 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30. 1996 
 
EXIllBIT "F" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
 
CATEGORIZATION OF INVESTMENTS 
 
Type ofInvestrnent U. S. Government Securities State Investment Pool 
 
Risk Categories 
 
2 
 
3 
 
Carrying Amount 
 
Market Value 
 
$,='==,O~QQ~ $ 248867 19 $,==O~ QQ $ 248,867.19 $ 270,427.70 
 
3,928.592.14 3,928,592.14 
 
$ 417745933 $419901984 
 
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, nSPA-6, GolfCourse and Renovation ofConvention Center, Jekyll Island, Georgia not to exceed the sum of$7,500,OOO,OO. The following is an analysis of the funding available for this project as ofJune 30, 1996, 
 
Balance July 1, 1995 
 
$ 7,047,097.47 
 
Less: Revenue Earned 
 
6.467,833.51 
 
Balance June 30, 1996 
 
$ 579,263.96 
 
NOTE 4: CHANGES IN GENERAL FIXED ASSETS 
 
The following is a summary of changes ofequipment in the General Fixed Assets Account Group during the fiscal year: 
 
Balance July 1, 1995 
 
$ 
 
0.00 
 
Retroactive Restatement ofPrior Year Balances 
 
2.636,607.68 
 
Balance July 1, 1995 Restated 
 
$ 2,636,607.68 
 
Additions 
 
283,733.66 
 
Balance June 30, 1996 
 
$ 2,920,341.34 
 
- 17 - 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30. 1996 
 
EXHIBIT "F" 
 
NOTE 5: GENERAL LONG-TERM DEBT 
 
BONDS PAYABLE The changes in bonds payable during the fiscal year ended June 30, 1996, are as follows: 
 
Semi-Annual Annual Debt 
 
Interest 
 
Retirement 
 
Series Payment Dates Date 
 
Balance 
 
Balance 
 
July 1. 1995 Retirements June 30. 1996 
 
1971 Apr 1 - Oct 1 1972 Jan 1 - Jul1 
 
Oct 1 Jul1 
 
$ 30,000.00 $ 30,000.00 $ 
 
0.00 
 
145,000.00 
 
0.00 145.000.00 
 
$175.000.00 $ 30.000.00 $ 145.000.00 
 
Annual debt service requirements to maturity for bonds are as follows: 
 
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 of$1,140,000.00 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, 1996, the unpaid balance of appropriations was $215,000.00. 
REPAYMENT OF GENERAL OBLIGATION BONDS During the fiscal year ended June 30, 1987, the General Assembly of Georgia authorized the issuance of not more than $4,600,000.00 in General Obligation Debt for the purpose of financing specific capital outlay projects for the Jekyll Island State Park Authority. Under the terms ofthe funding agreement, the Jekyll Island State Park Authority was to repay the principal of$4,600,000.00 and interest of$616,884.00 over a twenty 
- 18 - 
 
 JEKYLL ISLAND STATE PARK AUTHORITY 
NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30. 1996 
 
EXHIBIT ifF" 
 
NOTE 5: GENERALLONG-TERMDEBT 
 
ADVANCES THROUGH THE DEPARTMENT OF NATURAL RESOURCES REPAYMENT OF GENERAL OBLIGATION BONDS 
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, 1996, the unpaid balance ofbond proceeds for this project was $3,390,972.00. 
 
During the fiscal year ended June 30, 1994, the General Assembly ofGeorgia authorized the issuance of an additional $7,500,000.00 in General Obligation Debt for the cost of construction ofa nine hole golfcourse, 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 ofthese proceeds is to be made by the Authority to the State ofGeorgia through the Department ofNatural Resources. At June 30, 1996, the unpaid balance of bond proceeds for this project was $10,728,789.00. 
 
The aggregate future annual payments due to the Georgia Department of Natural Resources for the above projects as ofJune 30, 1996, including principal and interest are as follows: 
 
Fiscal Year Ending June 30 
 
1997 1998 1999 2000 2001 Thereafter 
 
$ 888,943.00 890,073.00 891,069.00 892,085.00 840,190.00 
9.932.401.00 
 
$14,334 761.00 
 
CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1996, the following changes occurred in the General Long-Term Debt Account Group: 
 
- 19- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30. 1996 
 
EXlllBIT "F" 
 
NOTE 5: GENERAL LONG-TERM DEBT 
 
CHANGES IN GENERAL LONG-TERM DEBT 
 
Bonds Payable 
 
Compensated Absences 
 
Advances Through the Department ofNatural Resources 
 
Balance July I, 1995 
 
$ 175,000.00 $ 385,523.99 $15,222,946.00 $15,783,469.99 
 
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 
 
30,000.00 
 
-50,467.78 -3,860.78 
 
53,750.00 834,435.00 
 
-50,467.78 -3,860.78 53,750.00 
834,435.00 30,000.00 
 
Balance June 30, 1996 
 
$ 145.000.00 $ 439.852.55 $14.334.761.00 $14.919613.55 
 
NOTE 6: TRANSACTIONS WITH THE STATE OF GEORGIA 
 
LEASES JEKYLL ISLAND 
Under provisions of the Official Code of Georgia Section 12-3-241, the State of Georgia granted a lease to the Jekyll Island State Park Authority for "Jekyll Island" for a term of99 years beginning February 13, 1950. Included in the lease is all improvements, permanent or temporary, and all personal property or property of the State located on Jekyll Island. Rental is $1.00 annually. 
 
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 (nSpA) 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 nspA 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 nSpA, at DNR's 
 
- 20- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30,1996 
 
EXHIBIT "F" 
 
NOTE 6: TRANSACTIONS WITH THE STATE OF GEORGIA 
 
LEASES AUTHORITY LEASE RENTALS 
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 nspA. This method of accounting for the leases is not consistent with generally accepted accounting principles, which provide for the accounting ofleases ofthis nature as direct financing leases for nSPA Revenue derived from these leases during fiscal year 1996 amounted to $33,902.50. Future minimum rentals, including bond interest, on these leases are as follows: 
 
Fiscal Year Ending June 30 
 
1997 
 
$ 20,915.00 
 
1998 
 
132,762.50 
 
$ 153,677.50 
 
Cash and cash equivalents in the amount of$33,951.50 is available in the Debt Service Fund to reduce the future minimum rentals. 
 
NOTE 7: RISK MANAGEMENT 
 
Public Entity Risk Pool 
 
The State Personnel Board, Merit System ofPersonnel Administration administers for the State of Georgia a program ofhealth benefits for the employees ofunits ofgovernment ofthe State of Georgia, units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board, Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board. 
 
Other Risk Management 
 
The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes 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 are purchased applicable 
 
- 21 - 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30. 1996 
 
EXHIBIT "F" 
 
NOTE 7: RISK MANAGEMENT 
Other Risk Management 
to property, employee and automobile liability, fidelity and certain other risks. The Jekyll Island StatePark Authority is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the various state organizations by DOAS to provide claims servicing and claims payment. 
NOTE 8: DEFERRED COMPENSATION PLAN 
The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees ofthe State of Georgia and county health departments, pennits 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 will be presented in the State of Georgia Comprehensive Annual Financial Report for the year ended June 30, 1996. 
NOTE 9: RETrnEMENTPLANS 
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, 1996, for employees covered by ERS was $3,622,276.57. The Authority's total payroll for all employees was $5,001,475.62. 
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. 
 
- 22- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30.1996 
 
EXHIBIT "Fit 
 
NOTE 9: RETffiEMENTPLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Benefits 
 Under both the old plan and new plan, members become vested after 1 years of creditable service. A member  may retire and receive normal retirement benefits after completion of 1 years of creditable service and  attainment of age 65. If 1 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. 
Retirement benefits paid to members are based upon a formula which considers the monthly average of the members highest eight consecutive calendar quarters of salary, the number of years of creditable service, and the members 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. 
Funding Status and Progress Funding status and progress information is presented in the ERS June 30, 1996, financial report which may be obtained through ERS. 
Contributions Required and Contributions Made As established by State statute, all full-time employees ofthe State of Georgia and its political subdivisions, who are not members ofother state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. 
Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofcompensation and 4.75% ofcompensation paid by the Authoiity on behalf of the employee. Under the new plan, member contributions consist solely of 1.25% of compensation paid by employee. The Authority has elected to pay the 1.25% employee contribution requirement. The Authority also is required to contribute at a specified percentage ofactive member payroll determined annually by actuarial valuation. For the year ended June 30, 1996, the ERS employer contribution rate for the Authority amounted to 16.08% of covered payroll and included amounts contributed on behalf of the employee referred to above. The employer contributions are projected to liquidate the unfunded actuarial liability within 20 years based upon the actuarial valuation of June 30, 1995. Employer contributions are also made on amounts paid for accumulated leave to retiring employees. 
Actuarial assumptions used by the ERS to compute actuarially determined contribution requirements are the same as those used to compute the pension benefit obligation. 
Total contributions to the plan made during fiscal year 1996 amounted to $582,448.55, which was made by the Authority. These contributions met the requirements of the plan. 
- 23- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30. 1996 
 
EXIllBIT "F" 
 
NOTE 9: RETrnEMENTPLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Trend Information Historical trend information is presented in the ERS June 30, 1996, financial report which may be obtained through ERS. 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 ofgeneral creditors ofthe Authority in an amount equal to the fair market value of the account for each participant. 
All assets of the plan at June 30, 1996, were maintained in cash or cash equivalents at SunTrust Bank of Southeast Georgia, N.A, Brunswick, Georgia. The value ofthose assets at June 30, 1996 was $131,095.68. 
NOTE 10: LEAVB POLICIES 
Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment. 
Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employees' length ofcontinuous State service with a maximum accumulation offorty five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences. 
Certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia. 
 
- 24- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30. 1996 
 
EXIllBIT "Fit 
 
NOTE I I: 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. Accordingly, significant litigation, claims and assessments pending against the State ofGeorgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996. 
NOTE 12: SUBSEOUENTEVENTS 
In the subsequent period, the Jekyll Island State Park Authority settled a lawsuit against the Authority filed in the United States District Court for the Southern District of Georgia, Brunswick Division alleging sexual harassment and claiming general and punitive damages. In addition, the Jekyll Island State Park Authority settled similar charges regarding employment and alleged sexual harassment filed with the Equal Employment Opportunity Commission. Both claims were settled October 11, 1996, in consideration of payment by the State of Georgia Self-Insurance Trust Fund (Department of Administrative Services) in the total amount of $140,000.00, ($70,000.00 per case). 
NOTE 13: BONDING INFORMATION 
The Executive Director and all employees ofthe Jekyll Island State Park Authority are bonded under a Public Employees Blanket Bond written by Employers Insurance ofWausau, their Bond No. 1450-02-110723, on which the premium was paid to October 1, 1996. Under this agreement the Public Employee Dishonesty Coverage insures the Authority to a maximum of$I,OOO,OOO.OO 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 oftheir 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. 6260122926 and 626 012294 4, on which premiums were paid to October 1, 1996. 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 and from failure ofits employees to perform faithfully. 
 
- 25- 
 
 5t~\A-k 
rj 2(p 
 
 SUPPLEMENTARY INFORMAnON - 27- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY COMBINING STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS 
DEBT SERVICE FUND YEAR ENDED JUNE 30, 1996 
 
EXHIBIT"G" 
 
CASH RECEIPTS 
REVENUES COLLECTED 
Transfers from Budget Fund as Required by Trust Indentures 
Interest Received 
Total Cash Receipts 
CASH AND CASH EQUIVALENTS - JULY 1. 1995 
 
TOTAL 
 
1971 SERIES 
 
1972 SERIES 
 
$ 
 
33,902.50 $ 
 
1,674.01 
 
$ 
 
35,576.51 $ 
 
35,432.28 
 
30,750.00 $ 
30,750.00 $ 2.29 
 
3,152.50 1,674.01 
4,826.51 
35,429.99 
 
$ 
 
71,008.79 $ 
 
30,752.29 $ ===4::::::i0,=25=6=.5==0 
 
DISBURSEMENTS EXPENDITURES PAID 
Interest on Bonds Paying Agent Fees 
Total Expenditures Paid OTHER FINANCING USES 
Bonds Retired Matured Total Disbursements 
CASH AND CASH EQUIVALENTS - JUNE 30, 1996 
 
$ 
 
7,055.00 $ 
 
2.29 
 
$ 
 
7,057.29 $ 
 
750.00 $ 2.29 
752.29 $ 
 
6,305.00 6,305.00 
 
30,000.00 
 
$ 
 
37,057.29 $ 
 
33,951.50 
 
30,000.00 30,752.29 $ 
0.00 
 
0.00 6,305.00 33,951.50 
 
$ 
 
71,008.79 $ 
 
30,752.29 $===4=0'5:25=:6=.5=0 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 28- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30,1996 
 
EXHIBIT"H" 
 
Temporary Employees' Retirement Program 
 
ASSETSI LIABILITIES JULY 1, 1995 
 
ADDITIONS 
 
DELETIONS 
 
ASSETS! LIABILITIES JUNE 30, 1996 
 
$ 105,249.55 $ 96,713.04 $ 70,866.91 $ _ ....1...3.:.0:11,=09;,;;;5=.6.-8 
 
See accompanying notes and Independent Accountant's Combined Report on Reviewof Financial Statements and Supplementary Information. 
- 29- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF APPROVED BUDGET YEAR ENDED JUNE 30,1996 
 
SCHEDULE "1" 
 
FUNDS AVAILABLE 
REVENUES 
Other Revenues Retained 
EXPENDITURES 
Personal Services Regular Operating Expenses Travel Equipment Telecommunications Per Diem, Fees and Contracts Debt Service 
 
ORIGINAL BUDGET 
 
BUDGET ADJUSTMENTS 
 
TOTAL 
 
$ 12,740,000.00 $ -380,697,00 $ 12,359,303.00 
 
$ 7,260,000.00 $ -326,151,00 $ 6,933,849.00 
 
3,735,000.00 
 
-75,176.00 
 
3,659,824.00 
 
75,000.00 
 
-6,634.00 
 
68,366.00 
 
250,000,00 
 
-5,841.00 
 
244,159.00 
 
80,000.00 
 
-6,180.00 
 
73,820,00 
 
450,000,00 
 
41,100,00 
 
491,100.00 
 
890,000,00 
 
-1,815.00 
 
888,185.00 
 
$ 12,740,000.00 $ -380,697.00 $ 12,359,303.00 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 30- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY CASH AND CASH EQUIVALENTS JUNE 30,1996 
 
SCHEDULE "2" 
 
NONINTEREST BEARING ACCOUNTS 
Barnett Bank, Brunswick,. Georgia 
SunTrust Bank of Southeast Georgia, NA, Brunswick, Georgia 
INTEREST BEARING ACCOUNTS 
Bank of New York, Jacksonville, Florida 
Barnett Bank, Jacksonville, Florida 
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 
 
$ -478,959.63 47,839.57 $ -431,120.06 
 
$ 
 
33,951.50 
 
20,115.20 
 
131,369.79 
 
3,928,592.14 
 
4,114,028.63 
 
18,570.00 
 
$ 3,701,478.57 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 31 - 
 
 INVESTMENT TYPE 
U. S. Treasury Note Barnett Bank, Jacksonville, Florida No. 912827Q96 
 
JEKYLL ISLAND STATE PARK AUTHORITY INVESTMENTS JUNE 30, 1996 
 
SCHEDULE "3" 
 
PURCHASE DATE 
 
MATURITY DATE 
 
AMOUNT 
 
August 31, 1994 
 
August 31, 1996 
 
$ 248,867.19 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 32- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30, 1996 
 
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 4 AMOUNT 
$ =:===:::i::::!1,=06=4=,7.0... 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 33- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF OTHER REVENUES RETAINED 
YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "5" 
 
State of Georgia Through Department of Natural Resources Authority Lease Rentals Less: Transfers to Debt Service Fund as Required by Trust Indentures 
 
$ 
 
33,902,50 
 
-33,902,50 $ 
 
0,00 
 
Contracts Georgia State Financing and Investment Commission Project Number JISPA-5 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 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
 
- 34- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF OTHER REVENUES RETAINED 
YEAR ENDED JUNE 3D. 1996 
 
SCHEDULE "5" 
 
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 Interest on Investments Liquor, Stamps and Licenses Room Rebates Tournaments Vendor's Compensation on Sales Tax Collections Water Analysis 
 
$ 
 
51,223.03 
 
18,869.94 
 
-49,933.65 
 
63,263.00 
 
3,701.23 
 
1,914.00 
 
17,208.83 
 
122,135.47 
 
29,833.33 
 
732.63 
 
10,906.00 
 
83,657.59 
 
252,171.71 
 
81,372.32 
 
335.00 
 
8,068.10 
 
1,198.36 
 
5,642.50 $_---:.7..;;.;02:1;,2=.::9;.;;;9~.3~9 
 
$ 19,321,504.46 
 
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 OTHER OPERATING EXPENSES 
YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "S" 
 
REGULAR OPERATING EXPENSES 
 
Bank Service Charges 
 
Business Lunches 
 
Cash Over/Short 
 
Dues and Registration Fees 
 
Employee Incentives (See Schedule of Findings and 
 
Improper or Questioned Costs) 
 
Awards 
 
Gifts, Prizes and Supplies 
 
Christmas 
 
$ 
 
other 
 
Luncheons 
 
Parties 
 
Christmas 
 
$ 
 
other 
 
Gifts for Guest Speakers 
 
Gift Certificates for Retiring Employees 
 
Internal Revenue Service Penalties 
 
Reimbursements for 
 
Sponsored Program 
 
Personal Property Damage 
 
Relocation Expenses 
 
Sales Promotion and Public Relations Expense (See SchedUle) 
 
Tuition 
 
$ 
 
7,448.51 
 
13,836.77 
 
335.78 
 
28,314.87 
 
$ 
 
597.10 
 
1,499.61 311,05 
 
1,810.66 745.48 
 
9,740.05 269,81 
 
10,009.86 
 
$ 
 
550.00 
 
294.95 
 
13,163.10 109.20 400.00 
4,970.08 
844.95 2,011.90 649,751.12 
801.45 
 
$ 721,987.73 
 
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 EXTRAORDINARY EXPENDITURES 
YEAR ENDED JUNE 30, 1996 
REGULAR OPERATING EXPENSES Traub, Doug Settlement of Employment Suit 
 
SCHEDULE '7" $ ======:8id'252=5=,O=0 
 
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 SALES PROMOTION AND PUBLIC RELATIONS EXPENSE 
YEAR ENDED JUNE 30,1996 
 
SCHEDULE "8" 
 
ADVERTISING, BULLETINS, ENTERTAINMENT AND OTHER EXPENSE 
AAA Auto Club South 
Adams Publishing Company Adams Trade Press American Association of Museums Andersons Campground Directory Artisans Discount Art ASAE Association Executives Atlanta Business Chronicle Atlanta Journal Atlanta Magazine Atlantic Neon Atlas Pen and Pencil Corporation Bell South Booth Newspaper Boy Scouts of America Brunswick Chamber of Commerce Brunswick News Cable Advertising Canada Wide Magazines Canadian Golf Press Carolina Motor Club Cash Magazine, Incorporated Coastal Empire Council Comfort Inn Commissary Convention South Cormier Equipment Company Cowles Magazine Darien News Diamond Club Gym Booster Facilities FaUlkenberry Certain Adventure Federal Express Fendig Posters First Georgia Savings Bank Florida Times-Union Forbes Fredrich and Associates Georgia Colonial Travel Georgia - Florida Georgia Golf Georgia Public Health Association Georgia State Open Winner Georgia Trend Magazine Global Golf Glynn County Schools Glynn Electric Glynn Press Golden Isles Golf Connections Golf Digest 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 38- 
 
$ 
 
7,784.78 
 
2,673.00 
 
4,802.50 
 
216.25 
 
552.50 
 
48.14 
 
4,699.00 
 
1,819.00 
 
5,061.75 
 
40,208.33 
 
1,558.00 
 
160.00 
 
296.03 
 
637.00 
 
3,581.08 
 
250.00 
 
75,389.60 
 
5,391.22 
 
1,479.00 
 
4,000.00 
 
1,540.63 
 
6,375.00 
 
1,790.00 
 
250.00 
 
190.35 
 
264.85 
 
8,099.00 
 
290.00 
 
2,135.90 
 
710.00 
 
75.00 
 
6,260.25 
 
54,809.94 
 
399.00 
 
200.00 
 
20.00 
 
4,048.10 
 
2,635.00 
 
50,509.27 
 
225.00 
 
305.00 
 
750.00 
 
125.00 
 
500.00 
 
5,054.10 
 
450.00 
 
240.00 
 
15.13 
 
544.50 
 
165.00 
 
701.25 
 
53,429.16 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF SALES PROMOTION AND PUBLIC RELATIONS EXPENSE 
YEAR ENDED JUNE 30,1996 
 
SCHEDULE "8" 
 
ADVERTISING, BULLETINS, ENTERTAINMENT AND OTHER EXPENSE 
Golf Georgia Golf World Golfdata International Great Southern Publishers Greenville News GSAE Holiday Media Services Independent Publishing Insty Prints J. S. Walker and Associates Jekyll Island Club Jekyll Island Lions Kennickell Printing Kipp Brothers, Incorporated Knight Publishing Lamar Corporation Lithografic Services Mary Griffith Publication Maxwell's McCash Books McQuiddy Printing Company Miller, Pam Minnock, Maureen Mint Magazine National Recreation Natural Trust Magazine Naylor Publications New Choices New South Golf Oberg, Barry Olga McMillan Instructor Orange and White Paper Direct Paramount Miller Press Patriot News Company Paulk, Johnny Plain Dealer Planet Radio Postmaster Preprint Publishing Company Publication Concepts Reagin Printing Rominger, Darlene Rominger, John Rowell, Sylvia Rowland Radio S & R Products SGMA Savannah News Senior Citizens Voice Southern Bell Telephone Southern Living 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 39- 
 
$ 
 
5,185.00 
 
2,700.00 
 
2,650.00 
 
5,174.00 
 
1,950.24 
 
3,777.50 
 
701.25 
 
964.80 
 
13.23 
 
4,039.86 
 
75.59 
 
111.00 
 
1,856.00 
 
450.12 
 
650.00 
 
33,103.14 
 
7,034.01 
 
75.00 
 
81.40 
 
575.00 
 
38,088.95 
 
692.84 
 
78.40 
 
2,700.00 
 
2,000.00 
 
2,358.75 
 
1,509.00 
 
6,375.00 
 
8,415.00 
 
100.00 
 
50.00 
 
420.00 
 
45.85 
 
6,203.45 
 
1,520.29 
 
449.95 
 
1,203.80 
 
425.00 
 
3,973.00 
 
911.39 
 
18,020.00 
 
41,875.70 
 
83.25 
 
802.40 
 
652.88 
 
600.00 
 
172.46 
 
465.00 
 
171.70 
 
2,200.00 
 
34.33 
 
19,678.50 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF SALES PROMOTION AND PUBLIC RELATIONS EXPENSE 
YEAR ENDED JUNE 30,1996 
 
SCHEDULE "8" 
 
ADVERTISING, BULLETINS, ENTERTAINMENT AND OTHER EXPENSE 
Southern Tennis Association Special Editions PUblishing Star Ledger State News Paper Tee Time Magazine The Frame Shop The Garden Shop The Menu Book, Incorporated The Oglethorpe Speedway Three Cheers U. S. Cable U. S. Postmaster UPS Customhouse Brokerage United Way Volleyball Tournament WAEV WBMG WOKV WPDQ WXMK Walmart Watson, Roy Weeler's Resort Guide Wells Produce Wells, Stephen R. Wentworth Westlake, Paul Whitehawk Pictures Woodall's Publishing 
 
$ 
 
1,292,50 
 
1,819,00 
 
3,310.10 
 
1,205.73 
 
3,000.00 
 
185,43 
 
59.50 
 
475.00 
 
600.00 
 
9.85 
 
1,122.60 
 
18,000.00 
 
81.45 
 
18,00 
 
400.00 
 
1,633.00 
 
1,000.00 
 
2,914.50 
 
3,405.00 
 
500,00 
 
90.30 
 
300.00 
 
1,269.00 
 
38,50 
 
1,000.00 
 
100.00 
 
300,00 
 
5,354.75 
 
3,109.27 
 
$ 649,751.12 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information, 
- 40- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY RECONCILIATION OF SALARIES AND TRAVEL 
YEAR ENDED JUNE 30.1996 
 
SCHEDULE -9- 
 
Totals per Annual Supplement 
 
Accruals June 30,1995 June 30, 1996 
 
Adjustments Adams, Anderson, Cox, Douglas, Drawdy, Etheridge, Flanders, Hesser, Huey, Jackson, Jenks, Jones, Kaufman, Knight, Osteen, Owens, Proctor Pupillo, Purvis, Raiford, Sellers, Shepard, Smith, Stamps, Sweat, Trevathian, Turner, White, Wright, 
 
Darcia Tammie Karen Jennifer Melissa Virginia Scarlett Sherri Kathy Tangeria Usa Patrice Karen Hazel Marie Kristie Theresa Jeannie Arlene Kelly Cheryl Melanie' Catherine Stephanie Martha Michelle Matt Myra Sarah Jacqueline 
 
Unlocated Variance 
 
SALARIES $ 5,032,016.53 $ 
 
TRAVEL 30,904.37 
 
-44,586.54 52,263.99 
 
-550.00 -3,024.00 -1,335.00 
-1,275.00 -783.00 
-1,193.00 -3,125.00 -1,875.00 -2,000.00 
-75.00 -1,135.00 
-75.00 -2,120.00 -2,150.00 
-150.00 -1,350.00 
-766.00 -200.00 -640.00 -2,655.00 -800.00 -3,010.00 -1,025.00 -385.00 -20.00 -2,960.00 -675.00 -2,982.00 
114.64 
 
-51.87 
 
Totals per Report 
 
$ 5,001,475.62 $ =====3=0::,:8:=52::.:5::0= 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 41 - 
 
 JEKYLL ISLAND STATE PARK AUTHORITY RECONCILIATION OF PER DIEM AND FEES 
YEAR ENDED JUNE 30, 1996 
 
SCHEDULE "10" 
 
Totals per Annual Supplement 
Adjustments Aqua Plant Control Brunswick Chamber of Commerce CSR Dierco Douglas, Jennifer Elder Heating and Cooling, Incorporated EUer-WhiUock Avenue Disposal Site, Incorporated Georgia State Intern Program Hi Une Contractors, Incorporated Pendamis, Scott Traub, Doug West, Joe 
 
TYPE PAYMENT 
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 
 
$ 451,194.37 $ 
 
3,300.94 $ 
 
TOTAL 454,495.31 
 
-27,500.00 -75,000.00 
-2,148.58 -750.00 
-29,287.00 
-7,475.00 -750.00 
-47,406.00 750.00 
-8,225.00 700.00 
 
-27,500.00 -75,000.00 
-2,148.58 -750.00 
-29,287.00 
-7,475.00 -750.00 
-47,406.00 750.00 
-8,225.00 700.00 
 
Totals per Report 
 
$ 254,102.79 $ 
 
3,300.94 $ 257,403.73 
 
See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. 
-42 - 
 
 SECTION IT FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS 
YEAR ENDED JUNE 30. 1996 
 
STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR OUESTIONED COSTS 
 
The status offindings disclosed in the review report for the year ended June 30, 1995, is summarized below: 
 
AuditControl~umber 
 
Status ofFindings 
 
910-95-01 910-95-02 910-95-03 910-95-04 910-95-05 910-95-06 910-95-07 910-95-08 
 
See Audit Control ~urnber 910-96-01 
See Audit Control ~umber 910-96-02 See Audit Control ~umber 910-96-03 See Audit Control ~umber 910-96-04 See Audit Control ~umber 910-96-05 See Audit Control ~umber 910-96-06 
See Audit Control ~umber 910-96-07 
See Audit Control ~umber 910-96-08 
 
PRIOR YEARlCURREm YEAR 
 
GENERAL FIXED ASSETSIPROPERTY MANAGEMEm Inadequacies in Operation ofProperty Management System Financial Statements Audit Control ~umber 910-96-01 
 
The review report for the year ended June 30, 1995, reported that the Jekyll Island State Park Authority could not provide a subsidiary detail of equipment owned by the Authority. During fiscal year 1996, the Authority compiled a detailed listing of equipment for the purpose ofincluding a General Fixed Assets Account Group in the financial statements. . 
 
For the year under review, our examination included a review ofthe accounting system utilized by the Jekyll Island State Park Authority in maintaining their State Property System. This review also consisted oftesting the System for compliance with State laws and regulations. The following conditions relating to inappropriate accounting practices were found to exist: 
 
(1) In most instances, equipment inventory records did not include the date the equipment was acquired. 
 
(2) Equipment inventory records did not include the identifying number assigned by the Authority. Subsequent to June 30, 1996, the Authority added identifying numbers to the equipment inventory records. 
 
In addition, forty-nine (49) equipment items were selected to test the accuracy ofthe Authority's general fixed asset records. These items contained a value of$370,557.44 and were selected for the purpose oflocating the equipment as recorded in the inventory records. Three (3) items totaling $12,052.00 could not be located. 
 
- 1- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
 
PRIOR YEAR/CURRENT YEAR 
 
GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Inadequacies in Operation ofProperty Management System Financial Statements Audit Control Number 910-96-01 
 
The Authority is required to maintain equipment inventories in accordance with provisions of the State Property System Manual. The discrepancies identified above were caused by the Authority's failure to follow guidelines for maintaining equipment inventories. The Authority should establish the necessary procedures to ensure that equipment inventories are maintained in accordance with provisions of the State Property System Manual. 
 
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation ofDuties Financial Statements Audit Control Number 910-96-02 
 
The review report for the year ended June 30, 1995, noted that internal accounting control procedures ofthe Jekyll Island State Park Authority did not provide for an adequate separation ofduties in the performance of certain accounting functions and related procedures. For the year under review, a review ofthese procedures revealed that the Authority had made no significant changes that would provide for an adequate separation of duties in the following control categories: 
 
{l) Cash and Cash Equivalents 
 
(4) Employee Compensation 
 
(2) RevenuelReceivableslReceipts 
 
(5) Inventories 
 
(3) Expenditures/LiabilitieslDisbursements 
 
(6) General Ledger 
 
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 the internal control over the accounting functions. 
 
CASH AND CASH EQUIVALENTS Accounting /Internal Control Deficiencies Financial Statements Audit Control Number 910-96-03 
 
The review report for the year ended June 30, 1995, 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 the status of prior year deficiencies which were not corrected during the year under review: 
 
- 2- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS 
YEAR ENDED JUNE 30. 1996 
PRIOR YEAR/CURRENT YEAR 
CASH AND CASH EQUIVALENTS Accounting !Internal Control Deficiencies Financial Statements Audit Control Number 910-96-03 
Income Account (1) For the year ended June 30, 1995, 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 adequate documentation. Unsupported journal entries to cash results in a lack of control to safeguard assets. 
(2) For the year ended June 30, 1995, the income bank account could not be reconciled to the general ledger. For the year under review, the income bank account was reconciled to the general ledger. However, the Authority failed to make necessary correcting entries disclosed through the reconciliation process to the general ledger in a timely manner. This deficiency resulted from the Authority's lack of supervision over the bank reconciliation function. 
(3) For the year ended June 30, 1995, delays ofup to five days were noted in depositing receipts in the bank. For the year under review, the Authority continued to make deposits in an untimely manner. Numerous delays were again noted in depositing receipts in the bank. This deficiency occurred because of management's failure to ensure cash receipts were deposited on a timely basis. 
Petty Cash A petty cash count performed by the prior year auditors revealed a shortage of $200.00. During fieldwork for the fiscal year 1996 review, petty cash counts performed by the auditors revealed only immaterial variances. However, petty cash counts performed by the Authority at fiscal year end revealed significant variances at several petty cash locations. These variances resulted in the Authority increasing petty cash by $1,100.00 (net) to account for unsubstantiated shortages!overages in petty cash accounts. 
The Authority should develop policies and procedures for bank accounts to ensure that: (1) journal entries made to the general ledger contain adequate explanations and supporting documentation; (2) accounting functions are properly supervised; (3) deposits are made in a timely manner; and (4) petty cash counts are made during the fiscal year to verify proper accountability and accuracy of amounts reported on the Authority's general ledger. 
- 3- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30. 1996 
PRIOR YEAR/CURRENT YEAR 
INVENTQRIES Inconsistencies in Accounting for Resale Inventory Financial Statements Audit Control Number 910-96-04 
The review report for the year ended June 30, 1995, reported that the Authority provided items for resale which were not included in the Authority's perpetual inventory system. For the year under review, the Authority included alcoholic beverages and food for resale in the Authority's perpetual inventory system as required. However, the Authority did not include concessions and souvenirs for resale in the Authority's perpetual inventory system. 
This deficiency occurred because of management's failure to account for resale inventories for concessions and souvenirs in a manner consistent with other resale inventories. The Authority should determine and document the materiality of all resale inventories and ensure that such inventories are accounted for in a consistent manner. 
GENERAL LEDGER Detailed Listing of Salaries Not Reconciled Financial Statements Audit Control Number 910-96-05 
The review report for the year ended June 30, 1995, disclosed that the listing of salary payments made to employees as reported to the Georgia Department of Audits did not reconcile with the amounts recorded as salaries in the general ledger as presented for examination. For the year under review, the salary amounts submitted to the Georgia Department of Audits again did not reconcile with the amounts recorded as salaries in the general ledger. A comparison of the amounts submitted to the Department to the general ledger disclosed a difference of$38,216.38. An analysis of this difference resulted in corrections being made to the listing submitted to the Department in the amount of $38,333.00. The remaining difference of $114.64 is reflected as an unlocated variance on the "Reconciliation of Salaries and Travel" schedule ofthis report. The Authority should ensure that the quarterly reports submitted to the Georgia Department of Audits are balanced to the general ledger. 
EXPENDITURESILIABILITIESIDISBURSEMENTS Voucher Sample Exceptions/Improper Expenditures Financial Statements Audit Control Number 910-96-06 
The review report for the year ended June 30, 1995, reported that the internal accounting control procedures for the disbursing function for the Jekyll Island State Park Authority were deficient. For the year under review, deficiencies continued to exist. An examination of 166 expenditure vouchers was performed to test the validity and accuracy ofthe expenditure transactions. The vouchers examined revealed the following deficiencies: 
- 4- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
 
PRIOR YEAR/CURRENT YEAR 
 
EXPENDITURESILIABllJTIESIDISBURSEMENTS Voucher Sample ExceptionslImproper Expenditures Financial Statements Audit Control Number 910-96-06 
 
(1) One voucher was paid without the bid process being followed. (2) Five vouchers were paid from a copy and/or fax copy rather than an original invoice. (3) Eight vouchers did not contain an invoice. (4) One voucher was paid from a credit card statement without supporting documentation. (5) Eighty vouchers lacked purchase orders. (6) One travel voucher was paid without a required travel reimbursement expense form. (7) Eight vouchers lacked receiving signatures. (8) Two vouchers could not be located. (9) One travel voucher was paid with no explanation on the travel reimbursement expense form. (10) The following expenditures were determined to be unallowable and in violation of Article III, 
Section VI, Paragraph VI of the Constitution ofthe State of Georgia which provides, in part, as follows: 
 
"...the General Assembly shall not grant or authorize extra compensation to any public officer, agent, or contractor after the service has been rendered or the contract entered into." 
 
EXPENDITURE CATEGORYIPURPOSE 
 
AMOUNT 
 
Supplies and Materials 
 
Expenditure for hot chocolate, coffee, creamer and sugar for employees. $ 114.05 
 
Get well flower arrangement and coffee filters for employees. 
 
27.66 
 
Employee meal. 
 
15.63 
 
Two shirts for employee gifts. 
 
55.00 
 
Other Operating Expenses 
 
Employee Incentives 
 
Employee Christmas party including banquet and band. 
 
9,276.34 
 
Christmas gifts to employees. 
 
1,499.61 
 
Food and beverage employees outing. 
 
390.00 
 
Employee Committee GolfToumament prizes. 
 
148.73 
 
Halloween prizes for employees. 
 
100.00 
 
$11.627.02 
 
(11) The following expenditures were considered to be either undocumented, excessive, or questionable as to legality: 
 
- 5- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1996 
 
PRIOR YEAR/CURRENT YEAR 
 
EXPENDITURESILIABILITIESIDISBURSEMENTS Voucher Sample ExceptionslImproper Expenditures Financial Statements Audit Control Number 910-96-06 
 
EXPENDITURE CATEGORYIITEM 
 
Supplies and Materials 
 
. 
 
Expenditure paid from a credit card statement without supporting 
 
documentation. 
 
Unsupported expenditure for golfaccessories. 
 
Overnight accommodations and meals for Tournament Tough Camp 
 
paid without supporting documentation. 
 
Travel 
 
Travel reimbursement expenditures in excess of State travel regulations. 
 
AMOUNT 
$ 30.73 54.00 
588.96 740.79 
 
$ 1.414.48 
 
In addition, an analysis of Other Operating Expenses revealed unallowable expenditures as follows: 
 
EXPENDITURE CATEGORYIPURPOSE Other Operating Expenses Employee Incentives Awards for employees Gifts and prizes for employees - Other Parties - Food, Beverages and Supplies Christmas Other Luncheon 
 
AMOUNT 
$ 597.10 162.32 
463.71 169.81 355.48 
 
$ 1.748.42 
 
These conditions occurred because of management's failure to establish and implement controls over the disbursing function and to comply with State laws and regulations. All expenditures should be supported by proper documentation including purchase orders, original invoices, receiving signatures, required travel reimbursement expense forms and bid procedure documentation. The Authority should implement procedures to ensure that 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. 
 
- 6- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS 
YEAR. ENDED JUNE 30. 1996 
PRIOR YEAR/CURRENT YEAR 
EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Maintain Temporary Employee Retirement Subsidiary Ledger Financial Statements Audit Control Number' 910-96-07 
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 to be allocated twice a year to the individual accounts. The review report for the year ended June 30, 1995, disclosed that investment earnings were not allocated to the individual accounts for the fiscal year. In addition, the Authority could not produce a subsidiary ledger of participating employees for the TERP funds at June 30, 1995. For the year under review, the investment earnings for three months ofthe fiscal year were not allocated to the individual accounts, and again the Authority could not produce a subsidiary ledger of participating employees for the TERP funds at June 30, 1996. However, the Authority did provide a subsidiary ledger for examination which included activity through August 1996. The Authority's reconciliation ofthe August 1996 subsidiary ledger to the general ledger liability account revealed an unidentified variance of$5,187.24. 
These deficiencies were a result ofmanagement's failure to establish procedures for maintaining the subsidiary ledger ofparticipating employees and to provide adequate supervision to ensure plan requirements are being met. The Authority should ensure the subsidiary ledger ofparticipating employees is reconciled to the general ledger on a monthly basis. 
EMPLOYEE COMPENSATION AccountinglInternal Control Deficiencies Financial Statements Audit Control Number 910-96-08 
For the year ended June 30, 1995, the accounting procedures and internal controls ofthe Jekyll Island State Park Authority were found to be inadequate in the area ofemployee compensation. For the year under review, deficiencies continued to exist. The following is an analysis of deficiencies associated with employee compensation noted during this review: 
(1) For the year ended June 30, 1995, the Authority paid bonuses to three individuals without proper supporting documentation and could not document formal approval ofthe percentages used in the calculation ofthe bonuses which resulted in overpayments in the amount of$33,232.45. For the first six months ofthe year under review, the Authority continued to pay bonuses using the same calculation utilized in the prior year, resulting in an overpayment of $3,272.07. For the months of January and February, 1996, the Authority did not pay bonuses. In March 1996, the Authority implemented a new bonus plan which was formally approved by the Board in June 1996. For the months ofMarch through June, 1996, bonuses were correctly calculated based on the accounting records and the new approved percentage. 
- 7- 
 
 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS 
YEAR ENDED JUNE 30. 1996 
PRIOR YEAR/CURRENT YEAR 
EMPLOYEE COMPENSATION AccountinglInternal Control Deficiencies Financial Statements Audit Control Number 910-96-08 
(2) For the year ended June 30, 1995, a new position was created by the Director ofHuman Resources without Board approval. The position was exempt from overtime yet the individual received overtime payments throughout the fiscal year. During the year under review, the Authority continued to pay overtime through December, 1995. This condition existed because of management's failure to obtain approval for the new position and to pay according to the individual's employment contract. 
(3) For the year ended June 30, 1995, the Authority did not have a Board approved temporary pay scale. During the year under the review, approval ofthe temporary pay scale was not obtained. However, in the subsequent period the Authority's temporary pay scale was formally approved by the Board. 
(4) For the year ended June 30, 1995, the FICA and Federal withholdings liability accounts in the general ledger were overpaid. During the year under review, the FICA, State, and miscellaneous withholding liability accounts were overpaid. Unsupported journal entries were made to reduce the overpayments. The overpayments are the result of management's failure to monitor and maintain accurate accountin~ records. 
(5) For the year under review, the Authority paid the Internal Revenue Service (IRS) penalties and interest in the amount of $4,970.08. The penalties and interest are the results of management's failure to deposit Federal payroll taxes on a timely basis as required by IRS regulations. 
(6) Based on a sample of 36 employees, 3 employees were overpaid in the cumulative amount of $189.71. One overpayment was the result of an employee working in two departments with separate time cards and claiming the same hours worked for both departments. Other overpayments resulted from an erroneous calculation and the lack of supporting documentation in the personnel files for pay adjustments. The overpayments are the result of management's failure to review time cards, to correctly calculate hours worked and to adequately maintain personnel files. 
(7) The payroll sample of36 employees also revealed the following: (1) one personnel file did not contain documentation for the hourly rate of pay; (2) one personnel file could not be located; (3) two job classifications were not on the temporary pay scale; and (4) one employee's pay exceeded the maximum amount for the job classification. These conditions occurred because of management's failure to adequately maintain personnel files, to obtain approval for new positions from the Board and to comply with the Job Classification List-Grade Order approved by the Board. 
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 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS 
YEAR ENDED JUNE 30. 1996 
PRIOR YEAR/CURRENT YEAR 
EMPLOYEE COMPENSATION AccountinglInternal Control Deficiencies Financial Statements Audit Control Number 910-96-08 
(8) For the year under review, payments reported by the Authority to the Employees' Retirement System of Georgia (ERS) on the ERS Annual Reporting Form did not reconcile with the amount recorded on the Authority's general ledger by an amount of$7,376.11. This condition occurred because ofmanagement's failure to ensure amounts reported to the ERS were documented by the accounting records. 
(9) For the year under review, certain employees were allowed to submit time sheets four to six days before the end ofthe pay period. This condition occurred because of management's policy to allow time sheets to be submitted before the end ofthe pay period. 
The Authority should develop policies and procedures to ensure that: (1) all new positions are approved by the Board and are paid according to their positions; (2) the general ledger payroll withholding liability accounts are corrected and monitored throughout the year to ensure that funds are correctly disbursed; (3) Federal payroll taxes are deposited on a timely basis; (4) time sheets and cards are properly examined and any overpayments are reimbursed; (5) personnel files are adequately maintained and contain documentation for all adjustments and changes; (6) ERS payments are correctly recorded on the general ledger; and (7) the practice of allowing time sheets to be submitted before the end ofa pay period is discontinued. In addition, the Authority should review bonuses paid during fisca1 year 1995 and 1996 to ensure that individuals were not overpaid and should formally document this review. 
CURRENT YEAR 
REVENUESIRECEIVABLESIRECEIPTS AccountinglInternal Control Deficiencies Financial Statements Audit Control N~mber 910-96-09 
For the year under review, the accounting and internal controls of Jekyll Island State Park Authority were found to be inadequate in the area of cash receipts. The following matters came to our attention as a result ofour examination. 
The accounting department utilizes an oflline computer generated spreadsheet to record the daily sales and receipting process from the various receipting locations. The totals from this spreadsheet are posted to the general ledger on a monthly basis by journal entry. A sample offour daily sales transaction reports from each receipting location was selected and traced into the spreadsheet referred to above. The following deficiencies were noted: 
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 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30. 1996 
CURRENT YEAR 
REVENUES/RECEIVABLES/RECEIPTS AccountinglInternal Control Deficiencies Financial Statements Audit Control Number 910-96-09 
(1) Three receipting locations failed to provide documentation to support daily sales transaction reports. 
(2) Ten of twelve locations were unable to provide daily cash register tapes for individual cash transactions. 
Further testing ofthe receipting process was performed and is summarized as follows: 
(1) Qn a daily basis, Morgan's Grill and Blackbeard's Restaurant, which are operated by the Authority, used prenumbered receipts for each restaurant check. With the exception of void receipts and receipts to document employee discounts, all prenumbered receipts were discarded at the close of business after balancing the cash. 
Testing of employee food discounts at Morgan's Grill and Blackbeard's Restaurant revealed that discounts for food and beverage employees included 100% discounts on food and alcoholic beverages and that this discount was applied to evening and weekend meals. Discounts of this nature are considered to be a gratuity (improper expenditure) unless they are part ofan employee compensation package and are reported as compensation in accordance with IRS regulations. A sample of four days 100% discounted meals for certain individuals determined that the daily average was $43.11. The discounts for food and beverage employees were not recorded in the formal accounting records. 
The Authority records, by journal entry, certain 100% meal discounts as "interdepartmental transfers and house charges" through revenues and expenditures. An analysis of these journal entries for eleven months of the fiscal year revealed the Authority recorded revenues and expenditures of$6,610.30 for employee meals including their guests, employee parties, and meals for various other individuals. Supporting documentation for August 1995 journal entries totaling $4,684.41 could not be located by the Authority for review. 
(2) The Authority maintains a guard house to monitor traffic coming onto and leaving Jekyll Island and charges a parking fee for visitors to the island. The Authority does not have a system in place to control revenues received for daily admissions. 
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 JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FINDINGS AND IMPROPER OR OUESTIONED COSTS 
YEAR ENDED JUNE 30. 1996 
CURRENT YEAR 
REVENUESIRECEIVABLESIRECEIPTS AccountinglInternal Control Deficiencies Financial Statements Audit Control Number 910-96-09 
(3) Summer Waves utilized two sources ofinformation to prepare the daily sales transaction reports: (1) cash register tapes; and (2) prenumbered receipts. The prenumbered receipts were used for group and discount tickets and were not included in the totals on the cash register tapes. The prenumbered receipts were not maintained in numerical sequence. Examination of 137 prenumbered receipts for a 30 day period revealed 36 missing receipts. 
(4) The Convention Center maintains files for each event which utilize their services. Examination of files for three convention engagements disclosed alcoholic beverages used during functions were not inventoried before and after the operation of cash bars. Additionally, the Authority did not perform any analysis or calculations to determine the reasonableness of receipts from sales of alcoholic beverages. Our analysis of expected sales for the three engagements, based on the number of individuals attending the functions and the purchase of alcoholic beverages for those functions, revealed significant shortages. 
One convention engagement had exhibitors who required electrical and equipment rentals. .Documentation for the billing of charges associated with electrical and equipment rentals was not available for review. Only deposits slips were in the file to support these charges. Prenumbered receipts were not maintained in numerical sequence. 
(5) The accounting department does not consistently issue prenumbered receipts to revenue collecting locations. Receipts are written on a ledger sheet on a weekly basis. The ledger sheet had some supporting documentation, however, not all receipts on the sheet were supported. 
As a result of the aforementioned deficiencies, fraud or irregularities could have occurred without being detected. These deficiencies were the result of management's failure to implement and monitor accounting and internal control procedures relating to cash receipts. The Authority should review each locations' receipting procedures and develop accounting and internal control procedures which providefor accountability ofcash receipts to reduce the risk offraud or irregularities occurring and to ensure safeguarding ofAuthority assets. 
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