Management report, Jekyll Island State Park Authority, a component unit of the state of Georgia, year ended June 30, 2004

STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor
MANAGEMENT REPORT JEKYLL ISLAND STATE PARK AUTHORITY A COMPONENT UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 2004

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

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A SCHEDULE OF NET ASSETS

ENTERPRISE FUND

1

B SCHEDULE OF REVENUES, EXPENSES AND CHANGES

IN FUND NET ASSETS

ENTERPRISE FUND

2

C RECONCILIATION OF SALARIES

3

D RECONCILIATION OF PER DIEM AND FEES

4

E REPAYMENT SCHEDULE OF AMOUNTS OWED TO THE

DEPARTMENT OF NATURAL RESOURCES

5

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

DEPARTMENT OF AUDITS AND ACCOUNTS

254 Washington Street, S.W., Suite 214

w. RUSSELL

HINTON

STATE AUDITOR (404) 656-2174

Atlanta, Georgia 30334-8400

February 11, 2005
Honorable Sonny Perdue, Governor 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 basic 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 of and for the year ended June 30, 2004, 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 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 controls 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, 2004. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the information and use of management of the State of Georgia and members of the Authority and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~ul<ti~ Russell W. Hinton State Auditor

RWH:ps

SECTION I SELECTED FINANCIAL INFORMATION

JEKYLL ISLAND STATE PARK AUTHORITY SCHEDULE OF NET ASSETS ENTERPRISE FUND JUNE 30, 2004

EXHIBIT"A"

ASSETS
Current Assets: Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Items
Noncurrent Assets: Capital Assets Land Buildings Improvements Other Than Buildings Infrastructure Machinery and Equipment Construction in Progress Accumulated Depreciation
Total Assets
LIABILITIES
Current Liabilities: Accounts Payable and Other Accruals Advances From Primary Government Compensated Absences Payable SalariesNVithholdings Payable Deferred Revenue
Noncurrent Liabilities: Advances From Primary Government Compensated Absences Payable
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt Unrestricted
Total Net Assets

$ 3,621,339.82 2,477,122.07 376,974.46 17,955.49
146,663.03 40,294,399.74
9,736,864.77 12,107,387.23
3,494,947.86 1,272,608.28 -17,298,504.45
$ 56,247,758.30
$ 1,008,453.88 688,704.00 185,924.36 451,162.53 492,563.02
5,364,698.00 366,905.28
$ 8,558,411.07
$ 43,700,964.46 3,988,382.77
$ 47,689,347.23

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JEKYLL ISLAND STATE PARK AUTHORITY

EXHIBIT"B"

SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS

ENTERPRISE FUND

YEAR ENDED JUNE 30, 2004

OPERATING REVENUES
Grants and Contributions Rents and Royalties Sales and Services Taxes Other
Total Operating Revenues
OPERATING EXPENSES
Personal Services Services and Supplies Depreciation Other
Total Operating Expenses
Operating Loss
NONOPERATING REVENUES (EXPENSES)
Interest Income Hotel/Motel Tax Interest Expense Other
Total Nonoperating Revenues (Expenses)
Net Loss Before Contributions
CAPITAL CONTRIBUTIONS
Changes in Net Assets
NET ASSETS - JULY 1
NET ASSETS - JUNE 30

$

62,312.21

5,714,530.28

9,310,289.13

68,892.85

175,703.63

$ 15,331,728.10

$ 8,177,340.02 6,142,533.31 1,413,203.90 498,549.08
$ 16,231,626.31
$ -899,898.21

$

42,014.59

1,284,251.54

-287,057.27

-277,612.25

$ 761,596.61

$ -138,301.60

858,040.94

$ 719,739.34

46,969,607.89

$ 47,689,347.23

-2 -

JEKYLL ISLAND STATE PARK AUTHORITY RECONCILIATION OF SALARIES YEAR ENDED JUNE 30, 2004

EXHIBIT"C"

Total per Annual Supplement
Accruals Salaries Payable June 30, 2003 June 30, 2004
Compensated Absences Payable June 30, 2003 June 30, 2004
Adjustments Prior Year Accruals

$

6,492,928.02

-371,606.33 366,461.01

-527,890.76 552,829.64

38,714.58

$

6,551,436.16

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JEKYLL ISLAND STATE PARK AUTHORITY RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30, 2004

EXHIBIT"D"

Totals per Annual Supplement

1YPE PAYMENT

FEE AMOUNT

EXPENSE AMOUNT

TOTAL

$ 83,169.80 $ 343.55 $ 83,513.35

Adjustment

Robert Charles Lesser and Company

Fee

4,795.32

4,795.32

$ 87,965.12 $ 343.55 $ 88,308.67

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JEKYLL ISLAND STATE PARK AUTHORITY REPAYMENT SCHEDULE OF AMOUNTS OWED TO THE
DEPARTMENT OF NATURAL RESOURCES YEAR ENDED JUNE 30, 2004

EXHIBIT"E"

Changes in Repayment Schedule Balance July 1, 2003
* Principal Repayments During Fiscal Year 2004 Balance June 30, 2004

$ 6,718,004.00 -664,602.00
$ 6,053,402.00

Repayment Schedule By Fiscal Year
* 2005 2006 2007 2008 2009 Thereafter

Total

Principal

Interest

$ 946,482.00 $ 688,704.00 $

848,166.00

614,543.00

850,060.00

642,336.00

851,829.00

671,866.00

853,989.00

703,785.00

2,951,272.00

2,732,168.00

257,778.00 233,623.00 207,724.00 179,963.00 150,204.00 219,104.00

$ 7,301,798.00 $ 6,053,402.00 $ 1,248,396.00

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 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, 2004, the unpaid balance of bonds proceeds for these projects was $1,050,000.00.
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 renovations 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 beginning on June 15, 1994. At June 30, 2004, the unpaid balance of bonds proceeds for these projects was $5,003,402.00.
* Principal payments of $664,602.00 due in fiscal year 2004 and $688,704.00 due in fiscal year 2005 includes the original bond payment schedule amounts of $564,602.00 and $588,704.00, respectively, plus an additional $100,000.00 as required by the General Assembly of Georgia for fiscal years 2004 and 2005. It is unknown at this time if the General Assembly will require more early payments of principal in the years following fiscal year 2005.

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SECTION II 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, 2004

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-910-03-01

Previously Reported Corrective Action Implemented