Management report, Jekyll Island State Park Authority, a component unit of the state of Georgia, year ended June 30, 1998

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MANAGEMENT REPORT JEKYLL ISLAND STATE PARK AUTHORITY A COMPONENT UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1998
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

JEKYLL ISLAND STATE PARK AUTHORITY MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A ANALYSIS OF CHANGES IN FUND BALANCE

BUDGET FUND

B SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

2

C SCHEDULE OF OTHER REVENUES RETAINED

3

D RECONCILIATION OF SALARIES AND TRAVEL

5

E REPAYMENT SCHEDULE OF AMOUNTS OWED TO THE

DEPARTMENT OF NATURAL RESOURCES

6

SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
October 28, 1998

Governor of the State of Georgia Members of the General Assembly of Georgia Members of the Jekyll Island State Park Authority
and Honorable William A. Donohue, Executive Director . Jekyll Island State Park Authority
Ladies and Gentlemen:
As part of our audit of the general purpose financial statements of the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report and the issuance of a Statewide Single Audit Report pursuant to the Single Audit Act Amendments, as ofand for the year ended June 30, 1998, we have performed certain audit procedures at the Jekyll Island State Park Authority. Accordingly, the financial statements and compliance activities of the Jekyll Island State Park Authority were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the foregoing documents and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996.
This Management Report contains information pertinent to the financial and compliance activities of the Jekyll Island State Park Authority as of and for the year ended June 30, 1998. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the use of management of the Jekyll Island State Park Authority. However, this report is a matter of public record and its distribution is not limited.
Respectfully submitted,

CLV:ds

Claude L. Vickers State Auditor

SECTION I SELECTED FINANCIAL INFORMATION

JEKYLL ISLAND STATE PARK AUTHORITY ANALYSIS OF CHANGES IN FUND BALANCE
BUDGET FUND YEAR ENDED JUNE 30, 1998
FUND BALANCE - JULY 1,1997 Unreserved
ADDITIONS Excess of Funds Available over Expenditures Exhibit "B"
DEDUCTIONS Unreserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCE - JUNE 30, 1998
SUMMARY OF FUND BALANCE Unreserved Undesignated

EXHIBIT "A"
$ 4,204,268.82 $ 3,975,195.26 $ 4,204,268,82 $ 3,975,195,26
$ 3.975,195,26

- 1-

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30,1998

EXHIBIT"B"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$

0.00 $

18,282.00 $

12,976,932.00 14,264,567.36

$ 12,976,932.00 $ 14,282,849.36 $

18,282.00 1,287,635.36
1,305,917.36

0.00 4,204,268.82

4,204,268.82

$ 12,976,932.00 $ 18,487,118.18 $ _--=5..:...:,5:...:,.10':;':"..;...;18;.,;;,6,;...;..1.=...8

EXPENDITURES
Personal Services Regular Operating Expenses Travel Equipment Telecommunications Per Diem, Fees and Contracts Capital Outlay Debt Service

$ 7,134,632.00 $ 7,054,232.49 $

4,147,966.00 4,382,422.41

81,642.00

32,958.70

267,190.00

782,678.41

77,889.00

93,160.58

377,540.00

375,827.53

0.00

900,569.80

890,073.00

890,073.00

80,399.51 -234,456.41
48,683.30 -515,488.41
-15,271.58 1,712.47
-900,569.80 0.00

$ 12,976,932.00 $ 14,511,922.92 $

-1,534,990.92

Excess of Funds Available over Expenditures

$ 3,975,195.26 $ =~3~,9;,;,,75~,.;,;;19;;.;;;;5,;.2:;;;.6

-2 -

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF OTHER REVENUES RETAINED
YEAR ENDED JUNE 30. 1998

EXHIBIT"C"

State of Georgia Through Department of Natural Resources Authority Lease Rentals Less: Transfers to Debt Service Fund as Required by Trust Indentures

$ 98,041.37

98,041.37 $

0.00

Contract Georgia Department of Industry, Trade and Tourism

1,000.00

Hotel/Motel Tax

1,182,394.09

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 Soccer Complex Rentals

$ 70,346.52 1,887,885.32 53,633.86 21,127.90 325,292.20 96,200.92 1,076,454.35 209,330.00 4,225.00 448,548.78 2,567.00

4,195,611.85

Sales and Services Alcoholic Beverage Sales Less: Purchases for Resale

$ 353,497.57 117,068.49 $ 236,429.08

Ambulance Services Annual Decal Sales Concession Sales
Less: Purchases for Resale

$ 340,542.13 175,017.89

31,330.55 118,324.50
165,524.24

Day Camp Fire Protection Fees Food Sales
Less: Purchases for Resale

$ 2,292,445.41 831,310.41

12,228.50 240,651.45
1,461,135.00

Fuel Sales

$

6,493.36

'(,

Less: Purchases for Resale

2,513.61

3,979.75

Golf Miscellaneous Parking Fees Plants Special Events Storage Tennis Tours Water Park Water, Sanitation and Sewage

1,941,353.67 55,082.42
1,122,890.00 9,929.96
10,185.14 473.00
20,288.73 328,181.86 1,410,965.63 888,602.19

8,057,555.67

Other Advertising Applied Penalties Bank Card Processing Fees

$ 24,252.00 20,388.43 -55,646.75
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JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF OTHER REVENUES RETAINED
YEAR ENDED JUNE 30, 1998

EXHIBIT"C"

Other Beach Music Festival BUilding Permits Bureau Dues Cash Over (Short) Commissions Country Music Festival Coupon Income Donations Education Program Food Service Gratuities Interest on Investments Liquor, Stamps and Licenses Tournaments Vendor's Compensation on Sales Tax Collections Water Analysis

$ 86,376,05 90,00
1,927.00 -2,024,84 15,395.94 126,811.42 30,100.00 55,176.88 29,191.60 135,087.36 261,318.55 76,524.26 9,171.22 3,005.73
10,860.90 $

828,005.75

$ 14,264,567,36

-4-

JEKYLL ISLAND STATE PARK AUTHORITY RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1998

EXHIBIT"D"

Totals per Annual Supplement
Accruals June 30, 1997 June 30,1998

SALARIES

TRAVEL

$ 5,450,308.40 $

35,348.05

-79,573.39 224,858.91

-2,389.35

$ 5,595,593.92 $

32,958.70

- 5-

JEKYLL ISLAND STATE PARK AUTHORITY REPAYMENT SCHEDULE OF AMOUNTS OWED TO THE
DEPARTMENT OF NATURAL RESOURCES JUNE 30, 1998

EXHIBIT "E"

CHANGES IN REPAYMENT SCHEDULE

Balance July 1, 1997

$13,445,818.00

Repayments During Fiscal Year 1998 State Appropriations

-53,750.00

General Obligation Bond Proceeds and Interest

-836,323.00

Balance June 30, 1998

$12,555.745.00

. REPAYMENT SCHEDULE BY FISCAL YEAR

1999 2000 2001 2002 2003 Thereafter

$ 891,069.00 892,085.00 840,190.00 842,120.00 843,570.00
8,246,711.00

$12.555.745.00

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$I,140,000.00 for operations and $150,000.00 for capital outlay. Section 33 also required the Authority to repay the State of Georgia $1,000,000.00 in principal over a period of no more than 20 years beginning with fiscal year 1981. At June 30, 1998, the unpaid balance of appropriations was $107,500.00.

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 terms of the funding agreement, the Authority is to repay the principal of $4,600,000.00 and interest of $616,884.00 to the State of Georgia through the Department of Natural Resources over a twenty year period in equal annual installments of $260,844.00 beginning on June 15, 1990. At June 30, 1998, the unpaid balance of bond proceeds for these projects was $2,869,284.00.

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JEKYLL ISLAND STATE PARK AUTHORITY REPAYMENT SCHEDULE OF AMOUNTS OWED TO THE
DEPARTMENT OF NATURAL RESOURCES JUNE 30, 1998

EXHIBIT "E"

REPAYMENT OF GENERAL OBLIGATION BONDS
During the fiscal year ended June 30, 1994, the General Assembly of Georgia authorized the issuance of an additional $7,500,000.00 in General Obligation Debt for construction of a nine hole golf course, improvements to the existing course and renovation of the convention center. Under terms of the funding agreement, the Authority is to repay the principal of $7,500,000.00 and interest of $4,574,752.00 to the State of Georgia through the Department of Natural Resources over a twenty year period in annual installments beginning on June 15, 1994. At June 30, 1998, the unpaid balance of bond proceeds for these projects was $9,578,961.00.

-7-

SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

JEKYLL ISLAND STATE PARK AUTHORITY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

910-96-01 910-96-02
910-96-03 910-96-04 910-96-05 910-96-06 910-96-08 910-96-09 FS-91 0-97-01 FS-91O-97-02 FS-91 0-'97-03 FS-91 0-97-04 FS-91 0-97-05 FS-91 0-97-06 FS 910-97-07 FS 910-97-08

Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses
for Finding Control Number FS-910-97-02 Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented . Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Partially Resolved - See Correction Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

CORRECTIVE ACTIONIRESPONSES

ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties Finding Control Number: FS-910-97-02

Additional accounting staffwas hired to aid in separation of duties in addition to reorganization of staff duties. Controls continue to be strengthened.

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

JEKYLL ISLAND STATE PARK AUTHORlTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1998
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties Repeated From Prior Year Finding Control Number: FS 910-98-01
For the year under review, the internal accounting control procedures ofthe Jekyll Island State Park Authority did not provide for adequate separation of duties in the performance of certain accounting functions and related procedures in the following control categories:
(1) Cash and Cash Equivalents (2) Expenditures/Liabilities/Disbursements (3) General Ledger
The Authority should continue to review the accounting procedures in place. To the extent possible and practical, the Authority should design and implement procedures which would enhance segregation of duties relative to the above categories.