Review report, state of Georgia, Judicial Branch, year ended June 30, 1996

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REVIEW REPORT STATE OF GEORGIA rumclAL BRANCH YEAR ENDED JUNE 30, 1996

JUDICIAL BRANCH - 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

STATE REVENUE COLLECTIONS FUND

9

F NOTES TO THE FINANCIAL STATEMENTS

10

SUPPLEMENTARY INFORMATION

G COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

32

H COMBINING STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

BUDGET FUND

34

I COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

36

J COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

42

SCHEDULES

1 SCHEDULE OF APPROVED BUDGET

43

2 CASH AND CASH EQUIVALENTS

44

3 INVESTMENTS

45

4 SCHEDULE OF GOVERNOR'S EMERGENCY FUND

46

5 SCHEDULE OF FEDERAL REVENUES

47

6 SCHEDULE OF EXPENDITURES

48

JUDICIAL BRANCH - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SUPPLEMENTARY INFORMATION

SCHEDULES

7 SCHEDULE OF OTHER OPERATING EXPENSES

52

8 RECONCILIATION OF SALARIES AND TRAVEL

53

9 RECONCILIATION OF PER DIEM AND FEES

54

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
January 17, 1997

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Justices ofthe Supreme Court of Georgia Judges ofthe Court of Appeals of Georgia Members ofthe Executive Committee of the Council of Superior Court Judges Members of the Prosecuting Attorneys' Council of Georgia Members of the Executive Committee ofthe Council of Juvenile Court Judges Trustees ofthe Institute of Continuing Judicial Education Members of the Georgia Magistrate Courts Training Council Members ofthe Board of the Judicial Council Members of the JudiCial Qualifications Commission Members of the Executive Committee of the Georgia Indigent Defense Council Members of the Georgia Courts Automation Commission Members of the Office ofDispute Resolution Honorable Dotty W. Roach, Commissioner Department of Administrative Services
and Honorable Robert L. Doss, Jr., Director Administrative Office of the Courts
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through F) of the Judicial Branch 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 ofthe 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 ofthe management of the Judicial Branch.
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,
96ARL-4X

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. we are not aware ofany 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.
Our review was made for the purpose ofexpressing limited assurance that there were no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Exhibits G through J and Schedules 1 through 9) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements and we are not aware of any material modifications that should be made thereto.
As further described in Note 1 to the financial statements. effective July 1. 1995. the Judicial Branch was created through a consolidation mandated by the Appropriations Act of 1995 - 1996. The Judicial Branch is the successor agency to the former individual budget units of the Judiciary included in previous Appropriation Acts and reported in nine individual review reports. As a result ofthe consolidation referred to above. all prior year balances disclosed in those nine reports have been included in the financial statements of the Judicial Branch.
Respectfully submitted.
~~
Claude L. Vickers State Auditor
CLV:dt 96ARL-4X

FINANCIAL STATEMENTS - 1-

Cash and Cash Equivalents (See Schedule)
Investments (See Schedule)
Accounts Receivable State Appropriation Federal rmancial Assistance Other
Prepaid Items
rlXed Assets Equipment
Amount to be Provided for Payment of Accrued Compensated Absences Capital Lease Commitments

JUDICIAL BRANCH COMBINED BALANCE SHEET (STATUTORY BAS!S>
ALL FUNp TYPES ANp ACCOUNT GROUPS JUNE 30. 1996

GOVERNMENTAL FUND TYPES

STATE

REVENUE

BUDGET

COLLECTIONS

FIDUCIARY FUND TYPE
AGENCY

Total Assets
lIABILITIES AND FUND EQUITY
U8bilities Accounts Payable Accrued Salaries Payroll Withholdings Funds Held for Others Compensated Absences Capital Leases
Total U8bilities
Fund Equity Investment in General FIXed Assets Fund Balances Reserved Food Stamp Fraud Prosecution Agreement Georgia Bar Foundation Grant Mediator Applicant Fees and Registrations State Revenue Collections Fund Unreserved Designated SurplUS
Total Fund Equity
Total Uabilities and Fund Equity

S 4,353,845.57 S

58,125.10 S 2,418,747.68

S 1.800,804.30 500.54 214.62
S 1,801,519.46

S 2,418.747.68 S 2.418,747.68

S 675,863.64 1,495,847.54 35.729.58 S
344,885.35
S 2,552,326.11 S

58.125.10 58,125.10

S 4,353,845.57 S

58,125.10 S 2,418,747.68

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

EXHIBIT "A"

ACCOUNT GROUPS

GENERAl..

GENERAl..

FIXED

LONG-TERM

ASSETS

DEBT

TOTAL (Memorandum Only)

$ $ $

$ $

$ 3,294,438.52

$

$ 1,126,207.60 $ 5,275.24
$ 1,131,482.84 $

$ 3,294,438.52 $ 1,131,482.84 $

4,648,022.49
60,000.00
1,559,422.52 484,101.71 57,763.13
2,101,287.36 21,408.50
3,294,438.52
1,126,207.60 5,275.24
1,131,482.84
11,256,639.71

$

$ 1,126,207.60 5,275.24
$ 1,131,482.84 $

$ 3.294,438.52

$

$ 3,294,438.52

$

1,800,804.30 500.54 214.62
2,418,747.68 1,126,207.60
5,275.24
5,351 ,749.98
3,294,438.52
675,863.64 1,495,847.54
35,729.58 58,125.10
344,885.35
5,904,889.73

$ 3,294,438.52 $ 1,131,482.84 $

11,256,639.71

-3-

JUDICIAL BRANCH COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1996

EXHIBIT-B-

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

JUplCIAL BRANCH STATEMENT OF FUNDS AVAILABLE AND EXpENDITURES
BUpGETFUND YEAR ENDED JUNE 30 1996

EXHIBITC

REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation Governor's Emergency Fund (see SChedule)
Total State Appropriation
FEDERAL REVENUES (see SChedUle)
OTHER REVENUES RETAINED Case Counting Projects Contracts Georgia Department of Labor Administrative Hearing OffICer Training Fees Alternative Dispute Resolution Benchbook ConfererlCe Copies of Opinions Pattern Jury Instructional Grants Georgia Bar Foundation Interest Eamed Judicial Directory and Mailing Label Fees Opinions of the Judicial QualifICations Commission Handbook Sales Mediator Applicant Fees and Registrations Sale of Assets Sales of Photocopies and Publications Transfers from Agency Fund Board to Determine Fitness of Bar Applicants Court Reporting CertifICations, Testing and Permits Magistrate Court Training Fees Municipal Court Training Fees Travel Reimbursements Trust Accounts Clerks of Superior Courts and Sheriffs Registration Fees
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Federal Financial Assistance Food Stamp Fraud Prosecution Agreement Georgia Bar Foundation Grant Mediator Applicant Fees and Registrations

FUNDS AVAILABLE

$ 74,187,472.00 4,362,209.00 25,000.00
$ 78,574,681.00
2,114,056.26

$

76,500.00

5,832.63
274,967.68 900.00
17,418.40 73,490.54 13,382.86
1,644,414.98 127,160.19 42,121.80
15.00 69;119.19
500.00 21,472.60
628,956.72 61,218.40 53,866.92 61,214.19 68,000.00
261,037.67 15,696.00
$

3,517,285.n 84,206,023.03

$

348.50

626,414.34

1,042,846.62

22,228.02

1,691 ,837.48

Total Funds Available

$ 85,897,860.51

See Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
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JUDICIAL BRANCH STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUpGETFUND YEAR ENDED JUNE 30,1996
EXPENPITURES PERSONAL SERVICES OTHER OPERATING PROSECUTING ATTORNEY'S COUNCIL COUNCIL OF SUPERIOR COURT JUpGES JUDICIAL ADMINISTRATiVE DISTRICTS GEORGIA MAGISTRATE COURTS TRAINING COUNCIL GEORGIA MUNICIPAL COURTS TRAINING COUNCIL CASE COUNTING BOARD OF COURT REPORTING PAYMENT TO COUNCIL OF MAGISTRATE COURT JUDGES PAYMENT TO COUNCIL OF PROBATE COURT JUDGES PAYMENT TO COUNCIL OF STATE COURT JUpGES PAYMENT TO COUNCIL OF SUPERIOR COURT CLERKS PAYMENT TO RESOURCE CENTER COMPUTERIZEP INFORMATION NETWORK
Total Expenditures Excess of Funds Available over Expenditures

EXHIBIT"C"
$ 11 ,103,500,89 65,701,786,59 2,893,304,44 407,574,31 1,636,568.30 201,728,33 75,664,19 76,500,00 132,499.40 26,184,06 44,240,60 51,389.21 31,039.98 300,000.00 683,243,60
$ 83,365,223.90 2,532,636,61
$ 85,897,860,51

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

JUDICIAL BRANCH STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUNP
YEAR ENPEP JUNE 30 1996

EXHIBIT "PO

EXPENDITURES
Personal Services Other Operating Prosecuting Attorney's Council Council of Superior Court Judges JudiCial Administrative Districts Georgia Magistrate Courts Training Council Georgia Municipal Courts Training Council Case Counting Board of Court Reporting Payment to Council of Magistrate Court Judges Peyment to Council of Probate Court Judges Peyment to Council of State Court Judges Peyment to Council of Superior Court Clerks Peyment to Resource Center Computerized Information Network
Excess of Funds Available over Expenditures

$ 84,435,403.25 $ 85,897,860.51 $_--=,..!.,;,462=,4..:.:57:.:..:::.2~6

$ 11,119,670.00 $ 11,103,500.89 $

68,l62,S73.25

65,701,786.59

2,015,363.00

2,893,304.44

394,438.00

407,574.31

1,290,967.00

1,636,568.30

148,098.00

201,nS.33

14,450.00

75,664.19

76,500.00

76,500.00

139,869.00

132,499.40

25,835.00

26,184.06

20,450.00

44,240.60

12,050.00

51,389.21

31,040.00

31,039.98

300,000.00

300,000.00

683,800.00

683,243.60

16,169.11 2,461,086.66 -Sn,941.44
-13,136.31 -345,601.30
-53,630.33 -61,214.19
0.00 7,369.60
-349.06 -23,790.60 -39,339.21
0.02 0.00 556.40

$ 84,435,403.25 $ 83,365,223.90 $_--=1..:.:,O:..:..70~,.:..:'7..::9.:::.35~

$ 2,532,636.61 $ = __2;:;,53=20;;,636=.=6='

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

JUDICIAL BRANCH STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30,1996

EXHIBIT"E"

STATE REVENUE COLLECTIONS
Supreme Court Admission to Practice Bar Examination Fees Certified Copies Fumished Cost in Cases Docketed
Court of Appeals Admission to Practice Appellate Settlement Conference Cost Certified Records Fumished Court Cost and Fees
Total Cash Receipts
CASH AND CASH EQUIVALENTS - JULY 1.1995

CASH RECEIPTS

TRANSFERS To OffICe of Treasury and Fiscal Services
CASH AND CASH EQUIVALENTS - JUNE 30.1996

DISBURSEMENTS

$ 21,783.00 173,180,00 1,915.00 89.920,00 $ 286,798,00

$ 21,440.00 6,125,00 107.75
196.044,00

223,716.75

$ 510,514.75

79.987.60

$ 590,502,35

$ 532,3n.25 58,125.10
$ 590,502,35

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. -9-

runICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY Effective July 1, 1995, the Judicial Branch, an organizational unit of the State of Georgia, was created through the State's appropriation process whereby former individual budget units of the Judiciaiy were consolidated into one budget unit for fiscal year 1996. In previous years, the financial statements of the judicial budget units were reflected in nine individual review reports. As a result of the consolidation referred to above, all prior year balances disclosed within those nine reports, as ofJuly 1, 1995, have been included in the Judicial Branch review report. Those nine review reports were:

1) Supreme Court of Georgia 2) Court of Appeals of Georgia 3) Superior Courts of Georgia 4) Council ofJuvenile Court Judges 5) Institute of Continuing Judicial Education

6) Judicial Council 7) Judicial Qualifications Commission 8) Georgia Indigent Defense Council 9) Georgia Courts Automation Commission

The Judicial Branch is composed of the following functional budgets:

The Supreme Court consists ofseven (7) justices elected in a nonpartisan, Statewide election to staggered sixyear terms. The Justices elect from among themselves a chiefjustice and a presiding justice to serve four-year terms. The Supreme Court ofGeorgia is the State ofGeorgia's highest court of review and exercises exclusive appellate jurisdiction over a variety of types of cases and may review by certiorari cases in the Court of Appeals ofGeorgia which are ofgravity or ofpublic importance. The Supreme Court of Georgia has authority to promulgate orders needed to carry out its functions and has rule making authority over the lower courts.

The Court ofAppeals consists ofnine (9) judges elected in a nonpartisan, Statewide election for staggered sixyear terms. The judges elect one oftheir members as ChiefJudge. The Court of Appeals of Georgia is a court ofreview authorized to exercise appellate and certiorari jurisdiction in all cases not reserved for the Supreme Court of Georgia or conferred on other courts.

The Superior Court consists of 159 Superior Courts in Georgia, organized by the General Assembly into judicial circuits. Currently, there are 45 circuits consisting of between one and eight counties served by Superior Court judges who are elected in nonpartisan, circuitwide elections for four-year terms. The Superior Courts ofGeorgia are the State's highest ranking trial courts with original and general jurisdiction. They are authorized to exercise original, exclusive, or concurrent jurisdiction in both civil and criminal cases as provided by the Constitution ofthe State of Georgia.

The Juvenile Court is comprised of the Council of Juvenile Court Judges. The Council was created by the General Assembly ofGeorgia in 1971. EveI)' Juvenile Court Judge in the State of Georgia is by law a member of the Council (0.C.G.A. Section 15-11.4). The members annually elect a judge to serve as chairman. A director for the Council is appointed by the chairman with approval of the Council. The Council may establish general policies for the conduct of courts exercising jurisdiction over juveniles and may promulgate uniform

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nJDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXIllBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY rules and fonns governing procedures and practices ofthe courts. The Council provides training seminars for all judges and associate juvenile court judges. These seminars offer instruction and training in juvenile law and procedures, child development and psychology, sociological theories relative to delinquency and breakdown ofthe family structure, and other training or activities as the Council may determine would promote the quality ofjustice in the juvenile court system.
The Institute ofContinuing Judicial Education was created by order of the Supreme Court of Georgia. The Institute is governed by a Board of Trustees consisting of seventeen (17) members. One (1) member is appointed for each ofthe following: the Court of Appeals of Georgia; the Council of the State Court Judges; the Judicial Council; the Council of Juvenile Court Judges; the Council of Magistrate Court Judges; the Council of Probate Court Judges; the State Bar of Georgia; and the Superior Coqrt Clerks Group of the Georgia County Officers Association. The Council ofSuperior Court Judges appoints two (2) members. Exofficio board members include the immediate past chairman of the Board of Trustees of the Institute of Continuing Judicial Education, the immediate past chairman of the Institute ofContinuing Legal Education, and the law school deans from the University of Georgia, Emory University, Mercer University and Georgia State University. In addition, there is an advisory member from the Supreme Court. The Board of Trustees formulates the Institute's policies, secures program funding, and provides the necessary supervision to enable the Institute to carry out its responsibilities for organizing and conducting basic and continuing education programs for the judiciary of the courts of Georgia. The administration ofthe Institute is carried out by an executive director and other support staff provided by the Administrative Office of the Courts (See Judicial Council).
The Judicial Council was created by order of the Supreme Court of Georgia and is composed of twenty-four (24) members: the Chief Justice and the Presiding Judge ofthe Supreme Court of Georgia; the ChiefJudge and another elected representative ofthe Court ofAppeals of Georgia; each of the ten Superior Court Judicial Administrative District Judges; and the president and president-elect from each of the trial judges' councils, which includes the Council of Superior Court Judges, Council of State Court Judges, Council of Juvenile Court Judges, Council ofProbate Court Judges, and the Council ofMagistrate Court Judges. The staff of the Judicial Council, the Administrative Office of the Court, provides research, fiscal, communication, and administrative services in support of Georgia's judicial system. The Director of the Administrative Office of the Court is appointed by the Council.
The Judicial Qualifications Commission is composed of seven (7) members: two (2) judges of any court of record appointed by the Supreme Court of Georgia; three (3) members of the State Bar of Georgia with at least ten years experience and elected by the State Bar's Board of Governors; and two (2) private citizens, neither of whom may be a member of the State Bar of Georgia, appointed by the Governor. The Judicial Qualifications Commission is responsible for investigating complaints against judges of the courts of the State and making recommendations to the Supreme Court of Georgia regarding the removal, discipline, or retirement of such judges.

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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXIllBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Indigent Defense Council consists offifteen (15) members appointed by the Supreme Court of Georgia. Membership consists of one (1) active member of the State Bar of Georgia from each of the ten judicial administrative districts ofthe State; three (3) nonlawyers selected from the State at large; one (1) member of a metropolitan county governing authority; and one (1) member of a nonmetropolitan county governing authority. Members serve staggered four-year terms and until a successor is duly appointed. Members are eligtble to succeed themselves. The Georgia Indigent Defense Council is responsible for administering funds provided by State and/or Federal governments and others to support local indigent defense programs; for recommending uniform guidelines for indigent defense; and for providing local indigent defense programs and attorneys who represent indigents technical and research assistance, planning assistance, and training programs.
The Georgia Courts Automation Commission was created by order of the Supreme Court ofGeorgia and is composed of eleven (11) members. One member is the ChiefJustice ofthe Supreme Court or his designee; and the remaining members are appointed by the Chief Justice as follows: one (1) Judge of the Court of Appeals of Georgia; three (3) Superior Court Judges; one (1) Superior Court Clerk; one (1) State Court Judge; one (1) Juvenile Court Judge; one (1) Probate Court Judge; one (1) Magistrate Court Judge; and one (1) Municipal Court Judge. The Commission is authorized to define, implement and administer a State-wide court automation system. The Commission is also authorized to establish policies, procedures, and technical and performance standards for county and local government access to the courts automation system network and offer advisory services to county and local governments to assist in guiding their efforts towards automating their court procedures and operations.
The Georgia Office ofDispute Resolution was created by order ofthe Supreme Court of Georgia. The office is administered by a Director who is directly accountable to the Georgia Commission on Dispute Resolution. The Office is authorized to serve as a resource for Alternative Dispute Resolution education and research, and to provide technical assistance to new and existing court-annexed or court-referred programs at no charge. The Office is also authorized to develop the capability of providing training to neutrals in courts throughout the State at no charge, to implement the office's policies regarding qualification of neutrals and quality of programs, and to register neutrals and remove neutrals from the registry if necessary. The Office also collects statistics from court-annexed or court-referred programs in order to monitor the effectiveness of various programs throughout the State.
The Judicial Branch does not have authority to determine the amount offunding it will receive from the State ofGeorgia for any given fiscal year. Such authority is vested in the General Assembly of Georgia. The Judicial Branch also does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Judicial Branch is included within the State of Georgia reporting entity for financial reporting purposes because ofthe significance ofits legal, operational and financial relationships with the State ofGeorgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.

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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,1996

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING The Judicial Branch uses funds and account groups to report on its financial position and the results of its operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State 'ofGeorgia. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPES
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1995-1996. The Budget Fund is similar in nature to a General Fund as defined in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund.
STATE REVENUE COLLECTIONS FUND - The fund used to account for the collection of specific revenues ofthe State ofGeorgia as provided by statute or administrative action and the subsequent transfer of such funds to the Office of Treasury and Fiscal Services. This presentation differs from generally accepted accounting principles in that such activity should be included in the General Fund of the governmental organization:
FIDUCIARY FUND TYPE
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.
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 if historical 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.
The cost ofnormal maintenance and repairs that do not add to the value of the 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.

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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30,1996

EXIllBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
ACCOUNT GROUPS
GENERAL LONG-TERM DEBT - 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.
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 ofavailable spendable resources. In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund remits its unreserved fund balance (surplus) to the Office of Treasury and Fiscal Services in the subsequent fiscal year.
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 primarily State appropriations, Federal grants and entitlements, and 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.
Contractual obligations for goods and services which have not been received at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based, in part, on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.

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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPES BUDGETFUND
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 of the State of Georgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.
STATE REVENUE COLLECTIONS FUND The State Revenue Collections Fund is maintained on the Cash Receipts and Disbursements basis of accounting as prescribed or permitted by statutes and regulations of the State of Georgia. This basis of accounting is defined as that method of accounting in which certain revenue and the related assets are recognized when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred. The State Revenue Collections Fund, which should be included in the General Fund in accordance with generally accepted accounting principles, should be maintained on the modified accrual basis ofaccounting.
FIDUCIARY FUND TYPE AGENCY FUNDS
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 Appropriation allotments to the Judicial Branch are on the basis of a budget submitted by the Judicial Branch and approved by the Legislature and the Governor. The budget is adopted on a basis consistent with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia and is compiled in the same manner as all State departments. Expenditures are classified by budget unit object classes as provided in Act No. 476 ofGeorgia Laws 1995 (as approved April 21, 1995) and amended by Act No. 513 of Georgia Laws 1996 (as approved February 16, 1996). This budget is considered to be an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1995-1996. There is no legal prohibition regarding overexpenditure of the aggregate budget.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand, demand deposits with banks and other financial institutions, and cash management pools that have the general characteristics of demand deposit accounts in that the Judicial Branch may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. Cash and Cash Equivalents also include short-term, highly liquid investments with maturities of three months or less from the date of acquisition.

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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXIllBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS Investments are defined as those financial instruments with terms in excess of three months from the date of purchase and certain other securities held for the production of revenue. Investments are Stated at cost.
The Judicial Branch participates in an investment pool managed by the State of Georgia's Office ofTreasury and Fiscal Services (OTFS) referred to as the "Georgia Fund 1". The Judicial Branch does not have any risk exposure related to investments in derivatives or similar investments in Georgia Fund 1 as the investment policy of OTFS does not provide for investments in derivatives or similar investments through the Georgia Fund 1.
INVENTORIES No inventories of supplies are reported in these financial Statements. Expendable supplies are recorded as expenditures at the time of purchase.
RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a brief description of the reserves reflected in the accompanying financial Statements:
FOOD STAMP FRAUD PROSECUTION AGREEMENT Funds reserved for this program represent unexpended administrative fees received through a contract with the Georgia Department ofHuman Resources for prosecuting Food Stamp fraud cases. This amount is restricted for expenditure in the future years.
GEORGIA BAR FOUNDATION GRANT The residual portion of a grant form the Georgia Bar Foundation not yet expended or encumbered. This amOl,lnt is restricted for expenditures in future years.
MEDIATOR APPLICANT FEES AND REGISTRATIONS Funds received for this program represent fees charged to administer the registration of mediator applicants on a biyearly basis. This amount is restricted for expenditure in future years.
STATE REVENUE COLLECTIONS FUND The balance ofrevenues collected but not transmitted to the Office ofTreasury and Fiscal Services at fiscal year end. These funds are required by the Official Code of Georgia to be transferred to the Office of Treasury and Fiscal Services and are not available for use by the Judicial Branch.
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, the Budget Fund's unreserved fund balance is remitted to the Office ofTreasury and Fiscal Services in the subsequent fiscal year as surplus. This amount of unexpended general appropriations is designated for reappropriation by the State in subsequent years.
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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIllBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES Compensated absences represent obligations of the Judicial Branch 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. Funds are provided in the appropriation offunds each year to the Judicial Branch to cover the cost ofannual leave paid to terminated employees.
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 of this data.
COMPARATIVE DATA Due to the consolidation of previous judicial budget units into the Judicial Branch as discussed in Note 1 Reporting Entity, comparative data for the prior year have not been presented in the accompanying financial statements as such data would make certain of these Statements unduly complex and difficult to understand.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds ofthe State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations ofthe United States or of the State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations ofthe counties or municipalities of the State of Georgia.
(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (5) Bonds, bills, certificates ofindebtedness, 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.

CATEGORIZATIONOF 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 ofJune 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 Judicial Branch or by its agent in the Judicial Branch's name.

Category 2 - Aniounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the Judicial Branch'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 Judicial Branch's name, and amounts uncollateralized.

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$ 3166 78311 $ 945347837 $ 989000.47 $ 413 66866 $ 8050,809,24

CATEGORIZATION OF INVESTMENTS Investments are Stated at cost. The carrying amount of the investment balance as ofJune 30, 1996, shown below is maintained in an investment pool by the Office ofTreasury and Fiscal Services and is not subject to risk categorization.

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runICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXlllBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZAnON OF INVESTMENTS

Type ofInvestment

Carrying Amount

Market Value

State Investment Pool

$ 1 540,831 73 $ 1.540,831.73

NOTE 3: OPERATING LEASES

The Judicial Branch has entered into certain agreements to lease real property and equipment which are classified as operating leases. These leases generally contain provisions that, at the expiration date of the original term of the lease, the Judicial Branch has the option of renewing the lease on a year-to-year basis. Future minimum commitments for operating leases as of June 30, 1996, are listed below. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised.

Fiscal Year Ending June 30

1997

$ 194,161.20

Expenditures for rental of real property and equipment under operating leases for the year ended June 30, 1996, totaled $191,119.60.

NOTE 4: CAPITAL LEASE COMMITMENTS

The Judicial Branch acquires certain property and equipment through multi-year capital leases with varying terms and' options. The majority of these agreements contain fiscal funding clauses in accordance with O.C.G.A 50-5-64 which prohibits the creation ofa debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, capital leases requiring appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes.

At June 30, 1996, future minimum commitments under capital leases for equipment are as follows:

Fiscal Year Ending June 30
1997
Less: Amounts Representing Interest
Present Value ofFuture Minimum Commitments

$ 5,412.61 137.37
$=~5,~27.b1!5~.2~4

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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIllBIT "F"

NOTE 5: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition of moveable personal property as defined in Official Code of Georgia Annotated Section 50-16-161, only those items with an acquisition cost of $1,000.00 or greater are reflected in the General Fixed Assets Account Group.
of The following is a summary changes of equipment in the General Fixed Assets Account Group during the
fiscal year:

Balance July 1, 1995

$ 3,088,423.74

Additions Deductions

614,839.77 408,824.99

Balance June 30, 1996

$ 3,294.438 52

NOTE 6: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT A summary of changes in General Long-Temi Debt for the year ended June 30, 1996, follows:

Compensated Capital Lease Absences Commitments

Total

Balance July 1, 1995

$ 1,007,325.96 $ 13,782.74 $ 1,021,108.70

Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits
Deductions

110,433.91 8,447.73

8,507.50

110,433.91 8,447.73 8,507.50

Balance June 30, 1996

$ 1.126,207.60 $ 5,275.24 $ 1.131.482.84

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 of government of the 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

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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXInBIT "F"

NOTE 7: RISK MANAGEMENT
Public Entity Risk Pool
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 ofcommercial insurance are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Judicial Branch is part of the State of Georgia reporting entity, and as such, 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.

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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 9: RETIREMENT PLANS
The Judicial Branch participates in five retirement systems applicable to certain employee categories. These systems are as follows:
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The Judicial Branch 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 Judicial Branch's payroll for the year ended June 30, 1996, for employees covered by ERS was $28,774,332.81. The Judicial Branch's total payroll for all employees was $52,085,896.15.
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.
Under both the old plan and new plan, members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless of age.
Retirement benefits paid to members are based upon a formula which considers the monthly average ofthe member's highest eight consecutive calendar quarters of salary, the number ofyears of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS.
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 of the 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.

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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30.1996

EXHIBIT "F"

NOTE 9: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Contributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofcompensation and 4.75% of compensation paid by the Judicial Branch on behalf ofthe employee. Under the new plan, member contributions consist solely of 1.25% of compensation paid by employee. The Judicial Branch also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1996, the ERS employer contribution rate for the Judicial Branch amounted to 15.08% ofcovered payroll and included the 4.75% contributed on behalf ofthe employee under the old plan referred to above. The employer contributions are projected to liquidate the unfunded actuarial liability within 20 years based upon the actuarial valuation ofJune 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 $4,748,076.25, of which $4,338,132.88 was made by the Judicial Branch and $409,943.37 was made by employees. These contributions met the requirements of the plan.
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 ofthe progress made in accumulating sufficient assets to pay benefits when due.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description The Judicial Branch participates in the Georgia Defined Contribution Plan ("GDCP") which is a singleemployer defined contribution plan established by the Georgia General Assembly for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members of a public retirement or pension system. GDCP is administered by the Employees' Retirement System Board ofTrustees. The Judicial Branch's payroll for the year ended June 30, 1996, for employees covered by GDCP was $1,286,220.58. The Judicial Branch's total payroll for all employees was $52,085,896.15.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board. If a member has less than $ 3,500 credit to his/her account, the Board has the option of requiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary.
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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 9: RETIREMENT PLANS
GEORGIA DEFINED CONTRIBUTION PLAN
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board. Upon termination of employment, the amount ofthe member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1996 amounted to $96,465.93 which represents 7.500.!cl of covered payroll. These contributions met the requirements ofthe plan.
SUPERIOR COURT JUDGES RETIREMENT SYSTEM The Superior Court Judges Retirement System (SCJRS) is a single-employer, defined benefit pension plan established by the General Assembly of Georgia for the purpose of paying retirement allowances to the Superior Court Judges of the State of Georgia, and their survivors and other beneficiaries. The SCJRS is maintained and reported in the ERS June 30, 1996, financial report which may be obtained through ERS, Administrator for the SCJRS. The Judicial Branch's payroll for the year ended June 30, 1996, for employees covered by the SCJRS was $11,917,112.77. The Judicial Branch's total payroll for all employees was $52,085,896.15.
Membership Membership in the SCJRS is restricted to those individuals who have served or are serving as judges ofthe superior courts.
Benefits Benefit provisions and vesting requirements are established by statute and may be amended only by the State of Georgia General Assembly. A member who has obtained at least 16 years of creditable service and who has attained the age of 65 is eligible to retire and receive a normal retirement benefit. A member who has obtained at least 10 years of creditable service and who has attained the age of 60 is eligible to retire and receive a reduced early retirement benefit. Death and disability benefits are also available through SCJRS.
Contributions Required and Contributions Made The SCJRS is funded through a combination of member contributions paid by or on behalf of the affected superior court judges and employer contributions paid by the Judicial Branch. The minimum annual employer contribution requirements are set forth in the Official Code of Georgia Annotated (O.C.G.A.) Section 47-20~ 10 and are not aetuariaIly determined. This statute further prohibits any action to grant a benefit increase until such time as the minimum annual contribution requirements meet or exceed legislative requirements. The actuarial valuation as ofJuly 1, 1995, indicated that the minimum employer contribution level was being met. Member contribution requirements are set forth in O.C.G.A. Section 47-9-42. A description of contribution requirements is as follows:

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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXlllBIT "F"

NOTE 9: RETIREMENT PLANS
SUPERIOR COURT JUDGES RETIREMENT SYSTEM
Contributions Required and Contributions Made (A) MEMBERS' CONTRIBUTIONS
(1) Members' contributions are calculated as 7 1/2% of the salary paid by the State of Georgia. Ofthis amount, the Judicial Branch contributes 5% less $7.00 monthly on behalf of each participant. The participant is responsible for the remainder ofthe required member contributions.
(2) Each participant who elects to be covered by the death benefit provision ofthe Plan must contribute an additional 2 1/2% ofhislher salary paid by the Judicial Branch to the Plan. Each participant may elect a death benefit payable for the surviving spouse's lifetime rather than for life or until remarriage. Ifthis option is selected, the participant must contribute an additional .25% ofthe salary paid by the Judicial Branch.
(3) Each participant who is covered by other retirement plans and who elects to be covered by the death benefit provision of the Plan must contribute an additional 2 1/2% of his/her salary paid by the Judicial Branch to the Plan. Each participant may elect a death benefit payable for the surviving spouse's lifetime rather than for life or until remarriage. Ifthis option is selected, the participant must contribute an additional .25% ofthe salary paid by the Judicial Branch.
(4) Participants may elect to contribute an additional 1% of their salary to the Retirement System to become eligible for post retirement cost ofliving benefit adjustments as provided in the Official Code of Georgia Annotated Section 47-9-76.
(B) JUDICIAL BRANCH CONTRIBUTIONS: The employer's contribution is currently calculated at 8% ofthe salaries paid by the Judicial Branch.
Total contributions to the SCJRS in fiscal year 1996 amounted to $2,090,782.16 ofwhich $1,605,846.67 was made by the employer and $484,935.49 was made by the member. The employer contribution includes the 5% contributed on behalfofthe member referred to above. Contributions made by the employer and member approximate 13.48% and 4.07%, respectively, of covered payroll for the fiscal year. The contribution made by the employer includes $67,326.76, which was billed to the Judicial Branch in fiscal year 1996 for fiscal year 1995 underpayment of employer contributions.
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.
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.

JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 9: RETIREMENT PLANS
DISTRICT ATTORNEYS' RETIREMENT SYSTEM The District Attorneys' Retirement System (OARS) is a single employer defined benefit pension plan established by the General Assembly of Georgia for the purpose of paying retirement benefits to the district . attorneys ofthe State ofGeorgia. The DARS is maintained and reported in the ERS June 30, 1996, financial report which may be obtained through ERS, Administrator for the DARS. The Judicial Branch's payroll for the year ended June 30, 1996, for employees covered by DARS was $3,531,627.11. The Judicial Branch's total payroll for all employees was $52,085,896.15.
Membership Membership in the DARS is restricted to those individuals who have served or are serving as district attorneys within the State of Georgia.
Benefits Benefits provisions and vesting requirements are established by statute and may be amended only by the State of Georgia General Assembly. A member who has obtained at least 10 years ofcreditable service and who has attained the age of 60 shall be eligible to retire and receive a retirement benefit. After obtaining at least 10 years ofcreditable service, a member may cease to hold office before attaining the age of60 and may begin receiving retirement benefits upon reaching age 60. Death and disability benefits are also available through DARS.
Credited service includes years of service after January 1, 1979, during which a participant holds office as a district attorney and makes the required contributions for the Plan, plus years of prior service through December 31, 1978, if any, which were transferred from the Trial Judges and Solicitors Retirement Fund. Credited service may not exceed 16 years. Ifa participant leaves covered employment or dies before 10 years of credited service, accumulated contributions plus interest are refunded to the participant or designated beneficiary.
Contributions Required and Contributions Made The DARS is funded through a combination of member contributions paid by or on behalf of the affected district attorney's and employer contributions paid by the Judicial Branch. The minimum annual employer contribution requirements are set forth in the Official Code ofGeorgia Annotated (O.C.G.A.) Section 47-2010 and are not actuarially determined. This statute further prohibits any action to grant a benefit increase until such time as the minimum annual contribution requirements meet or exceed legislative requirements. The actuarial valuation as ofJuly 1, 1995, indicated that the minimum employer contribution level was being met. Member contribution requirements are set for in O.C.G.A. Section 47-13-50. A description of contribution requirements is as follows:
(A) MEMBERS' CONTRIBUTIONS: (1) Members' contributions are calculated as 71/2% of the salary paid by the Judicial Branch. Ofthis amount, the Judicial Branch contributes 5% less $7.00 monthly on behalf of each participant. The participant is responsible for the remainder ofthe required member contributions.
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JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1996

EXIDBIT "F"

NOTE 9: RETIREMENT PLANS
DISTRICT ATTORNEYS' RETIREMENT SYSTEM
Contributions Required and Contributions Made (A) MEMBERS' CONTRIBUTIONS:
(2) Each participant who elects to be covered by the death benefit provision of the Plan must contribute an additional 2 1/2% ofhislher salary paid by the Judicial Branch to the Plan.
(B) JUDICIAL BRANCH CONTRIBUTIONS: The employer's contribution is currently calculated as 5% ofthe salaries paid by the Judicial Branch.
Total contributions to the DARS in fiscal year 1996 amounted to $465,023.75 of which $350,050.33 was made by the employer and $114,973.42 was made by the member. Contributions made by the employer and member approximate 9.92% and 3.26%, respectively, of covered payroll for the fiscal year.
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.
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.
TRIAL JUDGES AND SOLICITORS RETIREMENT FUND The Trial Judges and Solicitors Retirement Fund (TJSRF) is a multiple-employer, defined benefit pension plan established by the General Assembly of Georgia for the purpose of paying retirement allowances for trial judges and solicitors of certain courts ofthe State of Georgia.. The TJSRF is maintained and reported in the ERS June 30, 1996, financial report which may be obtained through ERS, Administrator for the TJSRF. The Judicial Branch is required by the Official Code ofGeorgia Annotated Section 47-10-62 to pay the employer's contribution to the TJSRF. These trial judges and solicitors are not employees of the Judicial Branch. Total payroll for the year ended June 30, 1996, for members covered by TJSRF was $6,089,064.39.
Benefits Benefits provisions and vesting requirements are established by statute and may be amended only by the State
ofGeorgia General Assembly. The normal retirement for TJSRF is age 60 with 16 years of creditable service;
however, a members may retire at age 60 with a minimum of 1 years of creditable service. Additionally, a member must retire at age 70 or forfeit all retirement and disability benefits. Members holding office on July 1, 1980 are exempt from this provision.

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ruDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

NOTE 9: RETmEMENTPLANS
TRIAL JUDGES AND SOLICITORS RETIREMENT FUND
Benefits Retirement benefits paid to members are computed as 4% ofthe average annual compensation multiplied by the total years ofcreditable service not to exceed 16 years. The average annual compensation is the average salary ofa member during the two consecutive years of creditable service producing the highest such average but excluding any salary increases exceeding 5% over the previous two year period. Death and disability benefits are also available.
Members become vested after 10 years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, ifan otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.
Contributions Required and Contributions Made The TJSRF is funded through a combination of member contributions paid by the affected trial judge or solicitor and employer contributions paid by the Judicial Branch. Members contribute 7.5% oftheir salary plus an additional 2.5% is spousal benefits is elected. Employer contributions are actuarially determined and approved and certified by the Board ofTJSRF. Future contributions will be determined on an actuarial basis using the entry age actuarial cost method. Normal cost will be funded on a current basis and calculated on a level percentage basis. Based on the actuarial valuations as ofJune 30, 1995, there is no unfunded actuarial liability.
Total employer contributions to the TJSRF by the Judicial Branch in fiscal year 1996 amounted to ,$695,980.06. Contributions made by the Judicial Branch approximate 11.44% of covered payroll for the fiscal year. Employee contribution information for fiscal year 1996 was not available.
Significant actuarial assumptions used to compute contribution requirement are the same as those used to compute the standardized measure ofthe pension obligation.
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.
Trend Information Historical trend information is presented in the ERS June 30, 1996, financial report which may be obtained throughERS. This information gives an indication ofthe progress made in accumulating sufficient assets to pay benefits when due.

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ruDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXHIBIT "F"

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 of forty five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences.
Certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 11: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Judicial Branch expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against the Judicial Branch, if any, are generally considered to be actions against the State of Georgia. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1996.
NOTE 12: OTHER FINANCIAL NOTES
Pursuant to the Official Code ofGeorgia Annotated Title 47, Chapter 8 and 12, certain superior court judges and district attorneys who retire are eligible to be appointed senior judge ofthe superior courts and district attorney emeritus, respectively. Salaries paid for these positions are funded by the State of Georgia through the Judicial Branch.
NOTE 13: BONDING INFORMATION
All employees of the Judicial Branch are bonded under a Public Employees Blanket Bond written by Employers Insurance of Wausau, 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 Judicial Branch 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 Judicial Branch to a maximum of $1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account for all monies and property received by virtue of their position of employment.

- 29-

JUDICIAL BRANCH NOTES TO THE FINANCIAL STATEMENTS
JUNE 30. 1996

EXIllBIT "F"

NOTE 13: BONDING INFORMATION
All employees ofthe Judicial Branch are also bonded under a 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 Judicial Branch 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.

- 30-

SUPPLEMENTARY INFORMATION - 31 -

JUDICIAL BRANCH COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30 1996

~ Cash and Cash Equivalents
Accounts Receivable Slate Appropriation Federal Financial Assistance 0Iher
Prepaid Items
Tolal Assets
~unESANDFUNDEaUITY
liabilities Cash Overdraft Accounts Payable Accrued Salaries Payroll Wilhholdings
Tolal Liabirrties
Fund Equity Fund Balances Reserved Food Stamp Fraud Prosecution Agreement Georgia Bar Foundation Grant Mediator Applicant Fees and Registrations Unreserved Designated Surplus
Tolal Fund Equity
Tolal Liabilities and Fund Equity

SUPREME COURT

COURT OF APPEAlS

SUPERIOR COURT

JUVENILE COURT

INSTITUTE OF CONTINUING
JUDICIAL EDUCATION

S 59,018.54 S 126,769.94 S 691,910.43 S

S

536.80

S 1,120,436.70

155,39129

S

620.00

33,160.89 S

S

536.80 S

620.00 S 1,308,988.88 S

S 21,408.50

6,98921 S
240.00 S 240.00 S

23,957.03
5,832.63 5,832.63

S 59,555.34 S 148,798.44 S 2,000,899.31 S

7,229.21 S

29,789.66

S 15,426.60 S 64.62
S 15,491.22 S

3,999.50 S 1,171,243.24 S 500.54
3,999.50 S 1,171,743.78 S

6,540.10 S 6,540.10 S

27,069.87 27,069.87

S 35,729.58

S 675,883.64

8,334.54 S 144,798.94

153,291.89 S

S 44,064.12 S 144,798.94 S 829,155.53 S

689.11 S 689.11 S

2,719.79 2,719.79

S 59,555.34 S 148,798.44 S 2,000,899.31 S

7,229.21 S

29,789.66

See accompanying notes and Independent Acc:ount&nfs Combined Report on Review of Financial Statements and Supplementary Information.
- 32 -

EXHIBIT"G"

JUDICIAL COUNCIL

JUDICIAL QUALIFICATIONS
COMMISSION

INDIGENT DEFENSE COUNCIL

GEORGIA COURTS AUTOMATION COMMISSION

GEORGIA OFACEOF DISPUTE RESOLUTION

TOTALS

$ 378,449.02 $ 108.710.42 330.00
$ 487.489.44 $

$ 1,491,012.19 $ 256,527.05 $

60,000.00 $
60,000.00 $

$ 17.579.61
17,579.61 $

220,000.00 220.000.00

31.60 $ 2,656,215.99

$ 1.559,422.52 484.101.71 57,763.13

$ 2,101,287.36

$

21,408.50

$ 487,489.44 $

60,000.00 $ 1,508,591.80 $ 476,527.05 $

31.60 $ 4,n8.911.85

$ 398,806.52 $ 78,145.52
150.00
$ 4n,102.04 $

26,259.76 20,200.91 $

11,3n.26 $ 466,806.30

46.460.67 $

11,3n.26 $ 466,806.30

$

10,387.40 $

$

10,387.40 $

$ 487,489.44 $

$ 1,495,847.54

13.539.33

1,372.00 $

13.539.33 $ 1,497,219.54 $

9.720.75 $ 9,nO.75 $

60,000.00 $ 1.508,591.80 $ 476.527.05 $

$

425,066.28

1,800,804.30

500.54

214.62

$ 2,226,585.74

$

675.863.64

1,495,847.54

35,n9.58

31.60

344.885.35

31.60 $ 2,552,326.11

31.60 $ 4,n8.911.85

- 33

JUpICIAI.. BRANCH
COMBINING STATEMENT OF CHANGES IN FUNp BAlANCES <STATUTORY BASIS)
BUDGET FUND
YEAR ENDED JUNE 30. 1996
See accompanying notes and Independent Accountants Combined Report on
, Review of Financial Statements and Supplementary Information. 34

EXHIBIT"H"

JUDICIAL COUNCIL

JUDICIAL QUALIFICATIONS
COMMISSION

INDIGENT DEFENSE COUNCIL

GEORGIA COURTS AUTOMATION COMMISSION

GEORGIA OFFICE OF
DISPUTE RESOLUTION

TOTALS

$

3,386.08 $

$

3,386.08 $

$ 1,042,846.62

--=5::.,:.73:..

$

--=5;;.:..73~ $ 1,042,846.62 $

858.57 $ 858.57 $

$ 1,691,837.48

...:0:.:=.00::,.

206,154.30

....;:0;;;;;.00~ $ 1,897,991.78

$

3,922.21

6,316.19 $

149.00

$

10,387.40 $

13,539.33 $ 1,497,219.54 $

9,720.75 $

13,539.33 $ 1,497,219.54 $

9,nO.75 $

$

14,368.54

31.60

2,532,636.61 638.94
4,682.02

31.60 $ 2,552,326.11

$

3,386.08 $

5.73

$

_ _ _ _ _ $ 1,042,846.62

$

3,386.08 $

--=5::.,:.73:.. $ 1,042,846.62 $

858.57 $ 858.57 $

0.00 $ 206,154.30 1,691,837.48
...:0:.:=.00::,. $ 1,697,991.78

$

10,387.40 $

13,539.33 $ 1,497,219.54 $

9,no.75 $ _ _.....,;3=1;,;;.60= $ 2,552,326.11

-35-

JUDICIAL BRANCH COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30,1996

FUNDS AVAILABLE
REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation Governor's Emergency Fund
Transfers To\From Functional Budgets
Total State Appropriation
FEDERAL REVENUES
OTHER REVENUES RETAINED Case Counting Projects Contracts Georgia Department of Labor Administrative Hearing Officer Training Fees Alternative Dispute Resolution Benchbook Conference Copies of Opinions Pattern Jury Instructional Grants Georgia Bar Foundation Interest Earned Judicial Directory and Mailing Label Fees Opinions of the Judicial Qualifications Commission Handbook Sales Mediator Applicant Fees and Registrations
Sale of Assets
Sales of Photocopies and Publications Transfers from Agency Fund
Board to Determine Fitness of Bar Applicants Court Reporting Certifications, Testing and Permits Magistrate Court Training Fees Municipal Court Training Fees Travel Reimbursements Trust Accounts Clerks of Superior Courts and Sheriffs Registration Fees
Total Other Revenues Retained
Total Revenues
CARRY-OVER FROM PRIOR YEAR
Transfer from Reserved Fund Balance Federal Financial Assistance Food Stamp Fraud Prosecution Agreement Georgia Bar Foundation Grant Mediator Applicant Fees and Registrations
Total Carry-Over from Prior Year

SUPREME COURT

COURT OF APPEALS

SUPERIOR COURT

JUVENILE COURT

$ 5,515,675.00 $ 7,142,296.00 $ 53,297,032.00 $ 1,077,570.00

55,000.00

-38,092.00

4,256,301.00

25,000.00

$ 5,595,675.00 $ 7,104,204.00 $ 57,553,333.00 $ 1,077,570.00

-79,492.32

-100,000.00

$ 5,516,182.68 $ 7,004,204.00 $ 57,553,333.00 $ 1,077,570.00

$

4,812.53

$ 1,693,487.34 $ 110,424.06

$

76,500.00

$ 73,490.54

$

44,001.23

21,472.60

628,956.72

274,967.68 900.00
13,382.86 82,857.37
500.00
68,000.00

$ 694,430.55 $

73,490.54 $

517,107.91

$ 6,215,425.76 $ 7,077,694.54 $ 59.763,928.25 $ 1,187,994.06

$

348.50

22,228.02 $ 22,576.52

$

626,414.34

$

626,414.34

Total Funds Available

$ 6,238,002.28 $ 7,077,694.54 $ 60,390,342.59 $ 1,187,994.06

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

EXHIBIT-'-

INSTITUTE OF CONTINUING
JUDICIAL EDUCATION

JUDICIAL COUNCIL

JUDICIAL QUALIFICATIONS
COMMISSION

INDIGENT DEFENSE COUNCIL

GEORGIA COURTS AUTOMATION COMMISSION

GEORGIA OFFICE OF
DISPUTE RESOLUTION

TOTALS

$ 711,007.00 $ 1,693,214.00 $ 48,108.00

$ 711,007.00 $ 1,741,322.00 $ 79,492.32

$ 711,007.00 $ 1,820,814.32 $

$

7,930.73 $ n,401.60

$

5,832.63

$ 42,121.80 $

53,866.92 61,214.19

61,218.40

$ 120,913.74 $ 103,340.20 $ $ 839,851.47 $ 2,001,556.12 $

157,718.00 $ 3,000,000;00 $ 1,363,811.00 $

60,000.00

-19,108.00

217,718.00 $ 3,000,000.00 $

-60,000.00

100,000.00

157,718.00 $ 3,100,000.00 $

$

1,344,703.00 $ 60,000.00
1,404,703.00 $
220,000.00

229,149.00 $ 74,187,472.00 4,362,209.00 25,000.00
229,149.00 $ 78,574,681.00 0.00
229,149.00 $ 78,574,681.00
$ 2,114,056.26

$

76,500.00

$ 17,418.40
1,644,414.98 44,302.82
15.00 $

261,037.67 15,696.00
15.00 $ 1,982,869.87
157,733.00 $ 5,082,869.87 $

$ 1,624,703.00 $

5,832.63

274,967.68
900.00 17,418.40 73,490.54 13,382.86

1,644,414.98 127,160.19 42,121.80

25,117.96

15.00 69,119.19
500.00 21,472.60

628,956.72 61,218.40 53,866.92 61,214.19 68,000.00

261,037.67 15,696.00

25,117.96 $ 3,517,285.n

254,266.96 $ 84,206,023.03

$ 1,042,846.62 $ 1,042,846.62

$

348.50

626,414.;34

1,042,846.62

22,228.02

$ 1,691 ,837.48

$ 839,851.47 $ 2,001,556.12 $

157,733.00 $ 6,125,716.49 $ 1,624,703.00 $ 254,266.96 $ 85,897,860.51

-37 -

JUDICIAL BRANCH COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1996

EXPENDITURES
PERSONAL SERVICES
Salaries and Wages Employer's Contributions for:
F,I,CA Retirement Health Insurance Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
T~IPersonaISe~
OTHER OPERATING
PERSONAL SERVICES Salaries and Wages Employer's Contributions for. F.I.CA Retirement Health Insurance Personal Uability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Drug Testing
REGULAR OPERATING EXPENSES Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Grants to Counties, Cities and Civil Divisions Other Operating Expenses Duplicating and Rapid Copy Publications and Printing Equipment Purchases
TRAVEL
EQUIPMENT Equipment Purchases Lease/Purchase of Equipment Rental of Equipment
COMPUTER CHARGES Software Equipment Equipment Purchases Per Diem, Fees and Contracts Contracts Computer Billings, DOAS
REJ\L ESTATE RENTALS

SUPREME COURT

COURT OF APPEALS

SUPERIOR COURT

JUVENILE COURT

$ 3,542,102.13 $ 4,646,370.43

229,197.07 566,826.84 433,970.94
10,323.00 446.00
6,267.34

307,635.32 769,596.62 580,796.20
2,736.00 589.00
6,644.00

$ 4,789,133.32 $ 6,314,367.57

$ 38,907,600.40 $
2,231,733.14 6,103,762.27 4,321,944.81
201,450.00 16,329.00
119,075.00 3,476.00
$ 51,905,370.62 $

489,494.19
35,749.72 75,923.37 60,689.82
836.00 126.24 1,202.72
664,022.06

$

88,160.04 $

38,750.64

669.81

4,560.14

284,626.02
631.42 187,882.38
54,795.60

$ 660,076.05 $

$

32,968.66 $

147,886.64 $ 15,629.25
9,000.00
32,942.01 604.25
15,739.33
221,801.48 $
17,569.04 $

18,520.59 $ 110.75
7,650.00 176,600.00
21,593.40 628.75 9.43
28.720.16
253,833.08 $
577,693.56 $

18,282.85 23,203.61
4,469.06 2,917.04 272,127.71 7,958.56
742.45 8,192.93 2,031.66
339,925.87
43,896.18

$

13,585.42 $

15,714.21 $

320,116.70

9,278.76

1,474.58

816.00

$

24,338.76 $

16,530.21 $

320,116.70

$

3,295.12 $

561.00

105,829.87

46,263.00

23,823.67 5,164.25

20,825.70 102.45 $

$ 138,112.91 $

67,752.15 $

$ 301 ,693.97 $ 245,024.60

$
9.86 9.86 $
$

1,026.99 20,939.00
21,965.99 41,730.00

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

EXHIBIT-'-

INSTITUTE OF CONTINUING
JUDICIAL EDUCATION

JUDICIAL COUNCIL

JUDICIAL QUALIFICATIONS
COMMISSION

'NDIGENT DEFENSE COUNCIL

GEORGIA COURTS AUTOMATION COMMISSION

GEORGIA OFFICE OF
DISPUTE RESOLUTION

TOTALS

$ 8,188,472.56
536,832.39 1,336,423.46 1,014,767.14
13,059.00 1,035.00
12,911.34
$ 11,103,500.89

$ 828,621.32 $
56,986.03 121,843.41 98,191.31
608.00 141.59 1,201.93

$ 1,107,593.59 $

$

8,631.34 $ 33,393.67 $

4,203.98

9,615.85

862.50

99.80

2,129.00

34,862.06 10,623.96
116.80 21,147.33

7,881.51 10,196.74 54,688.07 5,610.83

$

85,097.14 $ 118,966.30 $

$ 27,608.14 $

$

7,864.00

$

7,864.00

$

1,011.63

$

9,723.00

15,358.69

10.60

$

9,723.00 $ 16,380.92

$ 33,028.20 $

76,369.43 $
1,070.62
6,015.60 304.00 7.89 75.17

801,181.72 $
56,623.61 116,300.25 97,131.60
1,254.00 149.91
1,428.23

83,842.71 $ 1,074,069.32 $

179,196.03 $
12,150.52 26,354.16 21,025.55
532.00 31.56 300.68
239,590.50 $

132,724.72 $ 41,415,187.81

9,186.20 19,796.68 15,889.30
489.00

2,403,499.84 6,463,980.14
4,620,887.99 205,473.00 16,786.19 123,283.73 3,476.00

178,085.90 $ 55,252,574.70

9,545.01 $ 700.00 780.00
1,003.18
3,006.44 910.25
13,137.15

41,379.56 $ 13,489.93 6,643.75 4,195.39
3,269,625.97
27,075.65 16,438.16
4n.04

29,082.03 $ 3,379,325.45 $ 1,986.26 $ 37,284.60 $

5,744.89 $
102.20 1,750.00.
2,576.65 458.60 266.00
10,898.34 $
13,866.89 $

5,295.41 $
12,305.75 6,580.20
84.00 24,265.36 $
1,937.73 $

376,840.00 96,088.16 23,143.17 33,304.55
3,718,353.68 434,828.05 41,234.58 287,089.33 112,389.58
5,123,271.10
754,811.06

$ 44,839.28 $

60,072.83

$ 44,839.28 $

60,072.83

$

462,192.44

9,278.76

2,290.58

$

473.761.78

$
$ 5,754.00 $

2,078.56 $
2,078.56 $ 48,312.00 $

13,739.00 $
413,081.25 48,971.67 475,791.92 $ 3,930.24 $

10.00 $ 6,607.60
100.15 1,801.21
8,518.96 $ 26,110.37 $

21,722.30 204,721.16 457,830.n 56,060.04
740,334.27 705,583.38

- 39-

JUDICIAL BRANCH COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1996
See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
-40-

EXHIBIT-I-

INSTITUTE OF CONTINUING
JUDICIAL EDUCATION

JUDICIAL COUNCIL

JUDICIAL QUALIFICATIONS
COMMISSION

INDIGENT DEFENSE COUNCIL

GEORGIA COURTS AUTOMATION COMMISSION

GEORGIA OFFICE OF
DISPUTE RESOLUTION

TOTALS

$ 16,193.98 $

$ 174,004.04 $ 292,959.00

5,751.55 $

$ 466,963.04 $

5,751.55 $

$ 561.783.18 $ 1,333,386.68 $

$ 201,728.33

$

75,664.19

$ 76,500.00

$ 132,499.40

$ 26,184.06

$ 44,240.60

$ 51,389.21

$ 31,039.98

$ 300,000.00

$ 839,175.70 $ 1,995,239.93 $

675.n

6,316.19

1,057.12 $ 13,836.96 $

7,238.73 $

822:93 $ 406,054.89

22,471.55 $

25,750.78 $ 3,000.00

22,471.55 $ 28.750.78 $

144,193.67 $ 4,628,496.95 $

$

4,673.20 $ 115,676.00 120,349.20 $ 931,738.65 $
683,243.60

14,494.11 $ 1,225,446.54 1,019,948.87

14,494.11 $ 2,245,395.41

254,235.36 $ 65,701,786.59

$ 2,893,304.44

$

407,574.31

$ 1,636,568.30

$

201,728.33

$

75,664.19

$

76,500.00

$

132,499.40

$

26,184.06

$

44,240.60

$

51,389.21

$

31,039.98

$

300,000.00

$

683,243.60

144,193.67 $ 4,628,496.95 $ 1,614,982.25 $ 254,235.36 $ 83,365,223.90

13,539.33 1,497,219.54

9,720.75

31.60

2,532,636.61

$ 839,851.47 $ 2,001,556.12 $

157,733.00 $ 6,125,716.49 $ 1,624,703.00 $ 254,266.96 $ 85,897,860.51

- 41 -

JUDICIAL BRANCH COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FlpUCIARY FUND TYPE-AGENCY FUNDS YEAR ENDED JUNE 30.1996

EXHIBITJ"

$ 2,311,024.94 $ 1,284,257.70 $ 1,176,534.96 $ 2,418,747.68
see accompanying notes and Independent Accountanfs Combined Report on
Review of Financial Statements and Supplementary Information. -42-

JUDICIAL. BRANCH
SCHEDULE Of APPROVEP BUDGET YEAR ENDED JUNE 30. 1996

SCHEDULE "1"

FUNDS AVAILABLE
REVENUES
State Appropriation Federal Revenues Other Revenues Retained

ORIGINAL

AMENDED

GOVERNOR'S

BUDGET

APPROPRIATION APPROPRIATION EMERGENCY FUND ADJUSTMENTS

TOTAL

S 74,187,472.00 S 3,326,134.00

4,362,209.00 S 74,053.00

S n,513,606.00 S 4,436,262.00 S

25,000.00 S

S 78,574,681.00

407,825.58

407,825.58

2,052,709.67

5,452,896.67

25,000.00 S 2,460,535.25 S 84,435.403.25

EXPENDITURES

Personal Services

S

Other Operating

Prosecuting AItomey's Council

Council of Superior Court Judges

Judicial Administrative Districts

Georgia Magistrate Courts Training Council

Georgia Municipal Courts Training Council

Case Counting

Board of Court Reporting

Payment to Council of Magistrate Court Judges

Payment to Council of Probate Court Judges

Payment to Council of State Court Judges

Payment to Council of Superior Court Clerks

Payment to Resource Center

Computerized Information Network

11,056,998.00 S
61,351,345.00 2,015,363.00 346,841.00 1,290,967.00 148,098.00 14,450.00 76,500.00 139,869.00 25,835.00 20,450.00 12,050.00 31,040.00 300,000.00 683,800.00

35,961.00
4,352,704.00 S
47,597.00

S n,513,606.00 S 4,436,262.00 S

S
25,000.00

26,711.00 S
2,433,824.25

11,119,670.00 68,162,87325 2,015,363.00
394,438.00 1,290,967.00
148,098.00 14,450.00 76,500.00 139,869.00 25,835.00 20,450.00 12,050.00 31,040.00 300,000.00 683,800.00

25,000.00 S 2,460,535.25 S 84,435,403.25

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

JUDICIAL BRANCH CASH AND CASH EQUIVALENTS
JUNE 30, 1996

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
NationsBank of Georgia, NA, Atlanta, Georgia
SunTrust Bank, NA, Atlanta, Georgia
Wachovia Bank of Georgia, Atlanta, Georgia
INTEREST BEARING ACCOUNTS
NationsBank of Georgia, NA, Atlanta, Georgia
SunTrust Bank, NA, Athens, Georgia
SunTrust Bank, NA, Atlanta, Georgia
Wachovia Bank of Georgia, Atlanta, Georgia
Funds on Deposit with Office of Treasury and Fiscal Services
State Investment Pool
Funds in Transit to Office of Treasury and Fiscal Services
State Investment Pool
OTHER
Cash on Hand

$ 1,798,151.87 223,900.93 4,271.82 $ 2,026,324.62

$

50,390.55

16,606.86

961,229.63

52,231.45

$ 1,479,620.73

61,211.00 1,540,831.73 2,621,290.22

407.65

$ 4,648,022.49

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 44-

INVESTMENT TYPE
Certificates of Deposit NationsBank of Georgia, N.A., AUanta, Georgia No. 92000030197565

JUDICIAL BRANCH INVESTMENTS JUNE 30, 1996

SCHEDULE "3"

PURCHASE DATE

MATURITY DATE

AMOUNT

January 12, 1996

July 19, 1996

$ 60,000.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 45-

JUDICIAL BRANCH SCHEDULE OF GOVERNOR'S EMERGENCY FUND
YEAR ENDED JUNE 30, 1996
Commission on the Sesquicentennial of the Supreme Court of Georgia - Help Defray the Cost of the Observance of the 150th Anniversary of the Georgia Supreme Court

SCHEDULE "4" $===25=,0=:0=:0=,0=0

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
- 46-

JUDICIAL BRANCH SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1996

PROGRAM
Agriculture, U. S. Department of Food stamps Through Georgia Department of Human Resources
Health and Human Services, U. S. Department of Child Support Enforcement Through Georgia Department of Human Resources State Court Improvement Program Direct Foster Care-TJtle IV-E Through Georgia Department of Human Resources
J~e.U.S.Departmentof
Juvenile J~e and Delinquency Prevention-
Allocation to States
Through Office of the Govemor Drug Control and System Improvement-Formula Grant
Through Office of the Governor
Transportation, U. S.Department of State and Community Highway Safety Through Georgia Department of Public Safety Through National Association of Prosecutor Coordinators Through Office of the Governor

CFDA NUMBER
10.551
93.563 93.586 93.658
16.540 16.579
20.600 20.600 20.600

SCHEDULE "5"
AMOUNT
$ 819,328.00
850,092.91 77,401.60 7,285.50
103,138.56 224,812.53
15,000.00 9,066.43 7,930.73
$ 2,114,056.26

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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JUDICIAL BRANCH
SCHEDULE OF EXPENDITURES YEAR ENDED JUNE 30,1996

Total Expenditures
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplemenfary Information.
- 48-

$ 11,103,500.89 $ 65,701,786.59 $

2,893,304.44

SCHEDULE -6"

COUNCIL OF

JUDICIAL

SUPERIOR ADMINISTRATIVE

COURT JUDGES

DISTRICTS

GEORGIA MAGISTRATE
COURTS TRAINING COUNCIL

GEORGIA MUNICIPAL
COURTS TRAINING COUNCIL

CASE COUNTING

$

211,009.49 $

14,207.98 32,3n.72 26,056.80
190.00 39.45 375.85

963,391.90
67,678.59 142,744.28 114,215.85
836.00 173.58 1,653.74

$

284,257.29 $

1,290,693.94

$

18,113.04 $

5,739.53

1,292.93

711.16

4,845.31 571.65
5,967.32 9,243.68

$

46,484.62 $

$

6,357.71 $

24,n5.58 $ 12,035.37 4,801.85 2,802.30
9,036.89 1,422.17 3,751.21 17,305.26
75,930.63 $
63,110.29

16,754.10 $ 23,nO.12
36,796.98 5,552.28 9,951.70
92,825.18 $

7,689.16 7,116.96
18,356.22 2,982.38 8,231.10
44,375.82

$

7,365.00 $

16,479.92

$

7,365.00 $

16,479.92

$

35.06 $

38,615.00

727.50

$

39,3n.56 $

$

15,190.00 $

$

5,279.84 $

1,755.48 $ 28,557.55
1,330.00 31,643.03 $ 41,639.04 28,744.17

724.42 $ 5,750.00
6,474.42 $

453.50 1,700.00
2,153.50

$

3,262.29 $

88,327.28 $

42,990.73 $

10,484.87

59,438.00

18,650.00 $

$

3,262.29 $

88,327.28 $ 102.428.73 $

29,134.87 $

$

407,574.31 $

1,636,568.30 $

201,728.33 $

75,664.19 $

76,500.00 76,500.00
76,500.00

-49 -

JUDICIAL BRANCH SCHEDULE OF EXPENDITURES .
YEAR ENDED JUNE 30.1996

PERSONAL SERVICES
Salaries and Wages Employer's Contributions for:
F.I.CA Retirement Health Insurance Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance Drug Testing
REGULAR OPERATING EXPENSES
Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Grants to Counties, Cities and Civil Divisions Other Operating Expenses (See SchedUle) Duplicating and Rapid Copy Publications and Printing Equipment Purchases
TRAVEL
MOTOR VEHICLE PURCHASES
EQUIPMENT
Equipment Purchases LeaselPurchase of Equipment Rental of Equipment
COMPUTER CHARGES
Software Equipment
Equipment Purchases Per Diem, Fees and Contracts
Contracts Computer Billings, DOAS

BOARD OF COURT REPORTING

PAYMENT TO COUNCIL OF MAGISTRATE
COURT JUDGES

PAYMENT TO COUNCIL OF
PROBATE COURT JUDGES

$

56,504.96

4,046.31 8,837.20 7,063.20
342.00 15.78
150.34

$

76,959.79

$

8,813.79 $

2,102.84 $

11,702.17

13,904.44 1,132.70

220.00

144.00 1.00

1,812.62 1,681.85 2,098.43

7,499.62 168.45
1,481.87

1,265.16 783.29
9,699.38

$

29,443.83 $

11,472.78 $

23,595.00

$

968.63

$

2,679.00

$

2,679.00

REAL ESTATE RENTALS
TELECOMMUNICATIONS
PER DIEM. FEES AND CONTRACTS
Per Diem and Fees Contracts

$

2,420.00

$

1,386.16 $

695.42 $

857.77

$

10,370.99 $

10,199.96 $

11,037.83

10,950.00

1,136.90

8,750.00

$

21,320.99 $

11,336.86 $

19,787.83

Total Expenditures

$

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 50-

132,499.40 $

26,184.06 $

44,240.60

SCHEDULE "S"

PAYMENT TO COUNCIL OF
STATE COURT JUDGES

PAYMENT TO
COUNCIL OF SUPERIOR
COURT CLERKS

PAYMENT TO RESOURCE
CENTER

COMPUTERIZED INFORMATION NETWORK

TOTALS

$

494.00

$

494.00

$ 52,085,896.15
3,094,042.33 8,149,613.43 5,939,407.20
221,534.00 18,602.00
140,906.00 3,476.00
$ 69,653,4n.11

$

493.10 $

819.46

0.29
1,042.00 471.17 595.09

1,628.00 650.00
18,526.53

$

2,601.65 $

21,623.99

$

6,204.87

480,570.42

136,839.21

75,785.67

51,168.07

4,317,338.28

540,881.66

54,867.82

371,462.34

138,938.52

$ 6,174,056.86

$ 840,557.90

$

19,411.00

$

1,169.00

$

1,169.00

$ 499,128.80 9,278.76 2,290.58
$ 510,698.14

$

104.82

$

40,000.00

$

40,000.00 $

$

328.73 $

104.82 1,874.68

$

27,254.69

294,653.92

$

642,018.23

457,830.n 750,486.28

$

642,018.23 $ 1,530,225.66

$ 860,156.02

$

41,225.37 $ 499,202.39

$

8,458.83 $

5,n3.49

$ 300,000.00

$

8,458.83 $

5,n3.49 $ 300,000.00

$ 1,617,666.08 1,659,n2.74
$ 3,2n,438.82

$

51,389.21 $

31,039.98 $ 300,000.00 $

683,243.60 $ 83,365,223.90

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JUDICIAL BRANCH SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30,1996
REGULAR OPERATING EXPENSES
Advertising Assessments-National Center for State Courts Bar Examination Fees Business Permits Case Related Expense Clipping Service Conference Expenses Copier Usage Court Costs Examinations and Testing Filing Fees Film Processing Fitness Reports Freight, Express and Storage Identification Cards Investigations Motor Vehicle Reports Moving Expenses Parking Publicity Registration Fees Reimbursement
For Office Expenses of Habeas Corpus Clerk's Office Butts County Board of Commissioners Chattooga County Board of Commissioners Dooly County Board of Commissioners Tattnall County Board of Commissioners Wilcox County Board of Commissioners
Seminar Expense SUbscriptions and Dues Training

SCHEDULE "7"

TOTAL

$

3,752.36

108,932.00

11,453,75

290.00

141.70

1,776,30

129,103.60

7,633.80

3,907,05

65,207,69

807.54

1,783.99

48.00

14,745.51

76,00

11,241.40

1,072.50

904.63

42.00

1,287.00

63,532.01

5,019.72 4,349.00 4,574.00 3,343.68 2,688.00
350.00 73,574.50 19,243.93

$

540,881.66

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-52-

JUDICIAL BRANCH RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1996

SCHEDULE "8"

Totals per Annual Supplement

Accruals June 30, 1996

Adjustments Arnold, Doss, Henwood, Jester, Johnson, Little, Moore,

GregoryW. Robert L. W. Scott James R. Leslie Lee Marla

Transfers to Employees' Retirement System of Georgia for Salaries of Retired District Attorneys and Superior Court Judges for the Period July 1, 1995, through June 30, 1996 (See Notes to the Financial statements - Note 12)

SALARIES $ 49,996,676.99 $

TRAVEL 837,701.87

500.54

377,55 1,120.58 1,200.08
42.00 13.91 88.00 13.91

2,088,718.62

Totals per Report

$ 52,085,896.15 $ 840,557.90

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 53-

JUDICIAL BRANCH RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30, 1996

SCHEDULE "9"

Totals per Annual Supplement

Adjustments

Arnold, GregoryW.

Butts County Board of Commissioners

Cobb,

Terry

Doss,

RobertL.

Jester, James R.

Johnson, Leslie

Little,

Lee

McElveen, N.Judson

Moore, Marla

Superior Court Judges and District

Attorneys' Retirement Plans

Trial Judges and Solicitors Retirement

Fund

TYPE PAYMENT
Reimbursable Expense Other Fees Reimbursable Expense Reimbursable Expense Reimbursable Expense Expense Reimbursable Expense Reimbursable Expense Reimbursable Expense
Other Fees
Other Fees

FEE AMOUNT

EXPENSE AMOUNT

TOTAL

$ 932,100.18 $ 523,501.05 $ 1,455,601,23

75,000,00
18,000.00 70,000.00

-3n.55
-3.00 -1,120.58
-42,00 -13.91 -88.00 723.80 -13.91

-3n.55 75,000.00
-3.00 -1,120.58
-42.00 -13.91 -88.00 723,80 -13.91
18,000.00
70,000.00

Totals per Report

$ 1,095,100.18 $ 522,565.90 $ 1,617,666.08

See accompanying notes and Independent Accountanfs Combined Report on Review of Financial Statements and Supplementary Information.
- 54-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

JUDICIAL BRANCH 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:

Audit Control Number

Status ofFindings

436-95-01 436-95-02 492-95-01

See Audit Control Number 430-96-01 Corrective Action Implemented Corrective Action Implemented

PRIOR YEAR/CURRENT YEAR

EXPENDITURESILIABILITIESIDISBURSEMENTS Disbursements on Behalf of District Attorneys Financial Statements Audit Control Number 430-96-01

The audit report for the year ended June 30, 1990, called attention to the fact that the Prosecuting Attorneys' Council has entered into a contractual agreement with the Department ofHuman Resources, Office ofFraud and Abuse (OFA), whereby, OFA pays a fee to the Prosecuting Attorneys' Council for adjudication ofguilt in food stamp suspected fraud cases. As part of this agreement, a memorandum ofunderstanding is signed by those district attorneys who wish to participate in the agreement. Those district attorneys who elect to sign the memorandum ofunderstanding earn a percentage of the funding received by the Prosecuting Attorneys' Council for those cases that are prosecuted.

Each district attorney has a choice ofhow payment from the Prosecuting Attorneys' Council is made. Payment can be made directly to district attorneys' office or the payment can go into an "agency fund" account maintained by the Prosecuting Attorneys' Council. Disbursements from this account are made as directed by written instruction from the individual district attorney. These payments can go to the district attorney individually or to third parties for expenses that include, but are not limited to, office supplies and equipment, salaries, and travel reimbursements.

In regard to the aforementioned arrangements, attention of the Prosecuting Attorneys' Council is called to the Official Code of Georgia Annotated Section 15-18-10 (C) which provides:

"All fees, fines, and forfeitures, costs and commissions formerly allowed district attorneys for their services as district attorney or as solicitor of any court shall become the property of the county in which the services ofthe district attorney were rendered. The clerk ofcourt shall collect any such fees, fines, forfeitures, costs and emoluments and remit the same to the county treasury by the fifteenth day of each month. "

- 1-

JUDICIAL BRANCH SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30. 1996
PRIOR YEAR/CURRENT YEAR
EXPENDITURESILIABILITIESIDISBURSEfv.lENTS Disbursements on Behalf ofDistrict Attorneys Financial Statements Audit Control Number 430-96-01
Further, the Official Code of Georgia Annotated Section 15-18-23 states:
"The governing authority of the county or counties comprising each judicial circuit shall provide all offices, utilities, telephone expenses, materials and supplies as may be necessary to equip, maintain, and furnish the office or offices ofthe district attorney in an orderly and efficient manner."
It is our conclusion that the aforementioned statutes require that all fees and related expenses ofthe district attorneys' offices should be subject to the financial and budgetary control of the governing authority of the counties comprising the judicial circuits. It is the position of the Prosecuting Attorneys' Council that these statutes do not govern the retention and expenditure of funds derived under the terms of the food stamp agreement. In as much as this difference of opinion has not been adequately resolved, the State Auditor has requested a legal opinion ofthe Attorney General with regard to the proper disposition of these funds. As of the date of this report, no response had been received from the Attorney General's Office.
CURRENT YEAR
GENERAL LEDGER Administrative Requirements Deficiencies in Accounting Procedures Audit Control Number 430-96-02
The Administrative Office of the Courts (AOC) maintains accounting records for certain functional budgets of the Judicial Branch. For the year under review, the general ledger maintained by the AOC did not agree with subsidiary ledgers or source documentation for certain accounts. The general ledger as presented for examination contained incorrect year end balances for accounts receivables, accounts payables, revenue and surplus accounts. Correcting audit adjustments for errors identified during this analysis are included in the Judicial Branch financial statements.
Appropriate action should be taken by the AQC to ensure that all subsidiary ledger amounts are complete and correctly posted to the general ledger on a monthly basis.
-2-