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STATE OF GEORGIA DEPARTMENT OF AUDITS 
254 WASHINGTON STREET 
ATLANTA, GEORGIA 30334 
 
 REVIEW REPORT STATE OF GEORGIA DEPARTMENT OF LAW YEAR ENDED JUNE 30, 1994 
 
 DEPARTMENT OF LAW - 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) 
 
ALLFUNDTYPESANDACCOUNTGROUPS 
 
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 STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
 
FIDUCIARY FUND TYPE - AGENCY FUNDS 
 
20 
 
SCHEDULES 
 
1 SCHEDULE OF APPROVED BUDGET 
 
21 
 
2 CASH AND CASH EQUIVALENTS 
 
22 
 
3 SCHEDULE OF GOVERNOR'S EMERGENCY FUND 
 
23 
 
4 SCHEDULE OF OTHER OPERATING EXPENSES 
 
24 
 
5 RECONCILIATION OF TRAVEL 
 
25 
 
 DEPARTMENT OF LAW -TABLE OF CONTENTS- 
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 
TAX RATIO (404) 656-0494 
 
~epartmeut of J\uhits 
254 WASHINGTON STREET, S.W. ROOM 214 
J\thmbt, <BieorBia 30334-8400 
October 20, 1994 
 
FINANCIAL AUDITS (404) 656-2180 
PROGRAM AUDITS (404) 656-2006 
 
Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia 
and 
Honorable Michael J. Bowers, Attorney General 
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 Department of Law as ofand for the year ended June 30, 1994, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of the Department of Law. 
A review consists principally of inquiries of agency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. 
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1. 
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 (Exhibit G and Schedules 1 through 5) is presented only for supplementary analysis purposes. Such information has been subjected to the 
 
94ARL-4 
 
 inquiries and analytical procedures applied in the review of the financial statements and we are not aware of any material modifications that should be made thereto. 
Respectfully submitted, 
~~_;;:.-- 
 
CLV:gp 94ARL-4 
 
Claude L. Vickers State Auditor 
 
 FINANCIAL STATEMENTS - 1- 
 
 DEPARTMENT DF LAW COMBINED BALANCE sHEET (STATUTORY BASIS) 
ALL FUND TYPES AND ACCOUNT GROUPS 
JUNE 30, 1994 
 
ASSETS Cash and Cash Equivalents 
(See Schedule) Accounts Receivable 
State Appropriation Other 
Fixed Assets Equipment 
Amount to be Provided for Payment of Accrued Compensated Absences 
 
GOVERNMENTAL FUND TYPES 
 
BUDGET 
 
STATE REVENUE COLLECTIONS 
 
$ 531 , 163. 42 $ 
 
0.00 
 
$ 506,198.19 580,058.04 
$ 1,086,256.23 
 
Total Assets 
LIABILITIES AND FUND EQUITY 
Liabilities Accounts Payable Payroll Withholdings Funds Held for Others Compensated Absences 
Total Liabilities 
Fund Equity Investment in General Fixed Assets Fund Balances Reserved State Revenue Collections Fund Unreserved Designated Surplus 
Total Fund Equity 
 
$1,617,419.65$ 
 
0.00 
 
============= ============= 
 
$1,349,673.87 57.50 
$ 1,349,731.37 
 
$ 
 
0.00 
 
$ 267,688.28 
 
$ 267,688.28 $ 
 
0.00 
 
Total Liabilities and Fund Equity 
 
$1,617,419.65$ 
 
0.00 
 
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
The notes to the financial statements are an integral part of this statement. 
- 2- 
 
 EXHIBIT "A" 
 
FIDUCIARY FUND TYPE 
AGENCY 
 
ACCOUNT GROUPS 
 
GENERAL FIXED 
ASSETS 
 
GENERAL LONG-TERM 
DEBT 
 
TOTALS (Memorandum Only) 
JUNE 30, 1994 JUNE 30, 1993 
 
$ 
 
321.84 
 
$1,350,718.84 
 
$ 531,485.26 
------------- 
 
$ 594,923.46 
------------- 
 
$ 506,198.19 $ 217,313.51 
 
----5-8-0-,-0-5-8-.-0-4 
 
471,612.07 
------------- 
 
$ 1,086,256.23 $ 688,925.58 
------------- ------------- 
 
$1,350,718.84 $1,100,819.20 
 
$ 668,610.20$ 668,610.20$ 631,679.86 
 
$ 
 
321.84 $1,350,718.84 $ 668,610.20$ 3,637,070.53 $ 3,016,348.10 
 
============= ====-=====--- ==---===---== --====---===- ============= 
 
$ 
 
321.84 
 
$ 
 
321.84 
 
$1,349,673.87 $ 832,742.99 
 
57.50 
 
45.00 
 
321.84 
 
125,479.18 
 
$ 668,610.20 
 
668,610.20 
 
631,679.86 
 
$ 668,610.20 $ 2,018,663.41 $1,589,947.03 
 
$ 1,350,718.84 $1,350,718.84 
 
$1,350,718.84 $1,100,819.20 
 
0.00 
 
0.00 
 
267,688.28 
 
325,581.87 
 
$1,618,407.12 $1,426,401.07 
 
$ 
 
321.84 $1,350,718.84 $ 668,610.20$ 3,637,070.53 $ 3,016,348.10 
 
============= ====---===--- ============= ============- 
 
- 3- 
 
  DEPARTMENT OF LAW COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS) 
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994 
 
EXHIBIT "B" 
 
BUDGET 
 
STATE 
REVENUE COLLECTIONS 
 
TOTALS (Memorandum Only) 
YEAR ENDED ---------------------------JUNE 30, 1994 JUNE 30, 1993 
 
FUND BALANCES - JULY 1 
 
Reserved Unreserved 
Designated Surplus 
 
$ $ 325,581.87 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
325,581.87 
 
202,107.38 
 
$ 325,581.87 $ 
 
0.00 $ 325,581.87 $ 202,107.38 
 
ADDITIONS 
 
Adjustments to Prior Year's Accounts 
 
Payable 
 
$ 
 
Cash Receipts for the Year 
 
Exhibit "E" 
 
Excess of Funds Available over Expenditures 
 
Exhibit "C" 
 
Prior Year's Checks Voided 
 
603.90 
$ 
267,084.38 0.00 
 
$ 
 
603.90 $ 
 
0.00 
 
17,482.09 
 
17,482.09 
 
212,351.81 
 
267,084.38 0.00 
 
277,720.46 47,861.41 
 
$ 267,688.28 $ 17,482.09 $ 285,170.37 $ 537,933.68 
 
DEDUCTIONS 
 
Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1992 Year Ended June 30, 1993 
Cash Disbursements for the Year Exhibit "E" 
 
$ 
 
0.00 
 
325,581.87 
 
$ 
 
$ 
 
0. 00 $ 202,107.38 
 
325,581.87 
 
0.00 
 
17,482.09 
 
17,482.09 
 
212,351.81 
 
$ 325,581.87 $. 17,482.09 $ 343,063.96 $ 414,459.19 
 
FUND BALANCES - JUNE 30 
 
(To Exhibit "A") 
 
$ 267,688.28 $ 
 
0.00 $ 267,688.28$ 325,581.87 
 
============= ============= ============= ============= 
 
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
 
The notes to the financial statements are an integral part of this statement. 
 
- 5- 
 
 DEPARTMENT OF LAW 
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES BUDGET FUND 
YEAR ENDED JUNE 30. 1994 
 
EXHIBIT "C" Page 1 
 
FUNDS AVAILABLE 
REVENUES 
STATE APPROPRIATION General Appropriation Amended Appropriation Governor's Emergency Fund (See Schedule) 
Total State App~opriation I 
OTHER REVENUES RETAINED Fleet Finance Restitution - Legal Services Fleet Finance Restitution - Monitoring Fees Jury Duty Fees Legal Services State Agencies and Authorities Administrative Services, Department of Self-Insurance Trust Funds Employees' Retirement System Financing and Investment Commission, Georgia State Georgia Building Authority Georgia Environmental Facilities Authority Georgia Ports Authority Georgia Residential Finance Authority Jekyll Island State Park Authority Judicial System: Supreme Court of Georgia Judicial Council Stone Mountain Memorial Association Teachers Retirement System Sale of Photocopies Settlement for Court Costs Transfer from Agency Funds Milk Bid Rigging Restitution Settlements 
Total Other Revenues Retained 
 
TOTALS YEAR ENDED 
JUNE 30, 1994 JUNE 30, 1993 
 
$ 9,257,126.00 $ 8,966,093.00 
 
0.00 -238.789.00 
 
500,000.00 
 
107,929.00 
 
$ 9,757,126.00 $ 8,835,233.00 
 
$ 377,447.97 $ 18,750.00 
0.00 
 
0.00 0.00 
165.00 
 
1,063,871.00 1,233,769.00 
 
24,000.00 
 
24,000.00 
 
30,000.00 18,000.00 25,040.40 
6,000.00 42,000.00 24,000.00 
 
30,000.00 18,000.00 25,040.40 
6,000.00 42,000.00 24,000.00 
 
12.000.00 3,900.00 24,000.00 36,000.00 
4,551.72 2,013.00 
 
12,000.00 3,900.00 
24,000.00 36,000.00 
4,210.95 5,026.62 
 
0.00 
 
210,107.30 
 
$ 1,711,574.09 $ 1,698,219.27 
 
Total Funds Available 
 
$11,468.700.09 $10.533,452.27 
 
EXPENDITURES 
PERSONAL SERVICES 
Salaries and Wages Employer's Contributions for: 
F.I.C.A. Retirement Health Insurance Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance 
 
$ 6,070,794.49 $ 6,025,086.86 
 
416,076.38 948,177.93 744,506.42 
17,835.00 3,360.00 
17,851.00 
 
411,892.51 927,277.51 756,039.86 
12,035.00 1,562.00 
10,157.00 
 
$ 8,218,601.22 $ 8,144,050.74 
 
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
The notes to the financial statements are an integral part of this statement. 
- 6- 
 
 DEPARTMENT OF LAW STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
BUDGET FUND YEAR ENDED JUNE 30, 1994 
 
EXHIBIT "C" Page 2 
 
EXPENDITURES 
REGULAR OPERATING EXPENSES Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing 
TRAVEL 
EQUIPMENT 
Equipment Purchases 
COMPUTER CHARGES 
Other Costs Supplies and Materials Repairs and Maintenance 
Software Equipment 
Equipment Purchases Per Diem, Fees and Contracts 
Contracts Computer Billings, DOAS 
REAL ESTATE RENTALS 
TELECOMMUNICATIONS 
PER DIEM, FEES AND CONTRACTS 
Per Diem and Fees Less: Reimbursements by State Agencies and Authorities 
OTHER BOOKS FOR STATE LIBRARY Equipment Equipment Purchases 
Total Expenditures Excess of Funds Available over Expenditures 
 
TOTALS YEAR ENDED JUNE 30 1 1994 JUNE 30, 1993 
 
$ 100,879.91 $ 61,562.22 62,777.87 1,850.00 
325,535.57 1,437.85 
14,978.06 
$_...5...6....9...,..0=-2=-=1.48 $ 
$----8-9--,3-0-6.43 $ 
 
94,111.18 61,637.49 52,205.33 
1,812.00 239,554.77 
1,246.44 14,541.31 
465,108.52 
93,494.56 
 
$ 88,483.29 $ 36,956.18 
 
$ 15,455.40 $ 5,373.45 9,522.47 
52,374.83 
43,644.60 48,695.11 
$_ _.1...7...,5...,_0-=6-=5.86 $ 
$ -4-3~ 8,9-46.00 $ $_ _11~ 4,3-17.28 $ 
 
14,073.73 725.32 
13,679.75 
326,702.18 
0.00 26,492.76 
381,673.74 
461,537.48 
101,464.27 
 
$12,516,964.89 $11,414,508.32 11,148,866.13 10,952,981.48 
$1,368,098.76$ 461,526.84 
 
$ 139,775.39 $ 109,919.48 $11,201,615.71 $10,255,731.81 
267,084.38 277,720.46 
 
$11,468,700.09 $10,533,452.27 
 
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
The notes to the financial statements are an integral part of this statement. 
- 7- 
 
 DEPARTMENT OF LAW STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
COMPARED TO BUDGET BUDGET FUND 
YEAR ENDED JUNE 30, 1994 
 
EXHIBIT "D" 
 
FUNDS AVAILABLE REVENUES 
State Appropriation Other Revenues Retained 
EXPENDITURES Personal Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunic"':itions Per Diem, Fees and Contracts Books for State Library 
Excess of Funds Available over Expenditures 
 
BUDGET 
 
ACTUAL 
 
VARIANCE FAVORABLE 
(UNFAVORABLE) 
 
$ 9,757,126.00 $ 9,757,126.00 $ 
 
0.00 
 
1,723,544.00 1,711,574.09 
 
-11,969.91 
 
$11,480,670.00 $11,468,700.09 $ -11,969.91 
 
$ 8,472,186.00 $ 8,218,601.22 $ 253,584.78 
 
569,952.00 569,021.48 
 
930.52 
 
110,000.00 
 
89,306.43 
 
20,693.57 
 
88,640.00 
 
88,483.29 
 
156. 71 
 
177,735.00 
 
175,065.86 
 
2,669.14 
 
438,946.00 
 
438,946.00 
 
0.00 
 
114,322.00 114,317.28 
 
4.72 
 
1,368,889.00 1,368,098.76 
 
790.24 
 
140,000.00 
 
139,775.39 
 
224.61 
 
------------- ------------- ------------- 
 
$11,480,670.00 $11,201,615.71 $ 279,054.29 
 
$ 267,084.38 $ 267,084.38 
============= ============= 
 
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. 
- 8- 
 
 DEPARTMENT OF LAW STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS 
STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30, 1994 
CASH RECEIPTS STATE REVENUE COLLECTIONS 
Sales of Opinions of the Attorney General Court Settlements 
Total Cash Receipts CASH AND CASH EQUIVALENTS - JULY 1, 1993 
DISBURSEMENTS TRANSFERS 
To Office of Treasury and Fiscal Services CASH AND CASH EQUIVALENTS - JUNE 30, 1994 
 
EXHIBIT "E" 
$ 1,805.00 15,677.09 
$ 17,482.09 0.00 
$ 17,482.09 
$ 17,482.09 0.00 
$ 17,482.09 
============= 
 
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- 
 
 DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1994 
 
EXHIBIT "F" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY The Department ofLaw, an organizational unit of the State of Georgia, is part of the executive branch of the government of the State of Georgia. The Department is vested with complete and exclusive authority and jurisdiction in all matters oflaw relating to the executive branch of government. The Attorney General is the executive officer of the Department of Law and is elected to a four year term by the qualified voters of the State of Georgia. 
The Department of Law does not have authority to determine the amount of funding it will receive from the State ofGeorgia for any given fiscal year. Such authority is vested in the General Assembly of Georgia. The Department also does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Department ofLaw 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 of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. 
FUND ACCOUNTING The Department of Law 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 of Georgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. 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 1993-1994. The Budget Fund is similar in nature to a General Fund as identified 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 of Georgia 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. 
- 10 - 
 
 DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1994 
 
EXHIBIT "F" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
FUND ACCOUNTING 
ACCOUNT GROUPS 
GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at historical cost. 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. 
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term 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 current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e., expenditures) in net current assets. 
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 (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues that are accrued include primarily State appropriations and certain amounts earned under operating agreements with other parties. Further, the modified accrual basis of accounting calls for expenditures, other than accrued interest of general long-term debt, to be recorded when the related fund liability is incurred. 
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund balance. 
 
- 11 - 
 
 DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1994 
 
EXIIlBIT "F" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPES BUDGET FUND 
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances ofthe Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations 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 of accounting. 
FIDUCIARY FUND TYPE AGENCY FUNDS 
The Agency Funds are custodial in nature in that assets are equally offset by liabilities to other funds, governmental units, or individuals. The modified accrual basis of accounting is utilized for recognizing assets and liabilities. 
BUDGET Appropriation allotments to the Department ofLaw are on the basis of a budget submitted by the Department and approved by the Legislature and the Governor. The budget is compiled in the same manner as all State departments and expenditures are classified by budget unit object classes as provided in Act No. 608 of Georgia Laws 1993 (as approved April 28, 1993) and amended by Act No. 622 of Georgia Laws 1994 (as approved February 8, 1994), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1993-1994. 
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 Department may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty. 
INVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase. 
- 12 - 
 
 DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1994 
 
EXIIlBIT 11F" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
COMPENSATED ABSENCES Compensated absences represent obligations of the Department 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 of this obligation as this amount will not be liquidated with expendable available financial resources. Funds are provided in the appropriation of funds each year to the Department to cover the cost of annual 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" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations 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 Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the Department's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain 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 of the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59: 
( 1) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia. 
(2) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia. 
(3) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose. 
 
- 13 - 
 
 DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1994 
 
EXHIBIT"F" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
 
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (4) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia. 
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. 
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia the option of exempting demand deposits from the collateral requirements. 
 
CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, ,cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk. 
 
Category I - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Department or by its agent in the Department's name. 
 
Category 2 - Amounts collateralized with securities (at market value) held by the financial institution's trust department or agent in the Department's name. 
 
Category 3 - Amounts collateralized with securities (at market value) held by the financial institution or by its trust department or agent, but not in the Department's name, and amounts uncollateralized. 
 
Carrying Amount 
 
Bank Balance 
 
Risk Categories 
 
2 
 
3 
 
Cash Deposits 
 
S 53115342 S l,25099033 S 10000000 S 1150.99033 $===0=00 
 
CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount shown below is maintained in an investment pool by the Office of Treasury and Fiscal Services. 
 
- 14 - 
 
 DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1994 
 
EXHIBIT "F" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS 
 
CATEGORIZATION OF INVESTMENTS 
 
Type of Investment 
 
Carrying Amount 
 
Market Value 
 
State Investment Pool 
 
$ 321.84 $=~32-1-.8~4 
 
NOTE 3: 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. 
 
The following is a summary of changes of equipment in the General Fixed Assets Account Group during the fiscal year: 
 
Balance July 1, 1993 
 
$1,100,819.20 
 
Additions Deductions 
 
306,317.06 56,417.42 
 
Balance June 30, 1994 
 
$1,350,718.84 
 
NOTE 4: GENERAL LONG-TERM DEBT 
 
CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1994, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group: 
 
Balance July 1, 1993 
 
$ 631,679.86 
 
Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits(*) 
 
-10,583.53 47,513.87 
 
Balance June 30, 1994 
 
$ 668,610.20 
 
(*) Includes related fringe benefits applicable to compensated absences at July 1, 1993. 
 
- 15 - 
 
 DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1994 
 
EXHIBIT "F" 
 
NOTE 5: DEFERRED COMPENSATION PLAN 
The State of Georgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion of their salary until future years. 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 ofthe State ofGeorgia 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 ofthe deferred account of each participant. Financial information relative to the plan is presented in the financial report of the State Personnel Board - Merit System of Personnel Administration for the year ended June 30, 1994. 
NOTE 6: RETIREMENT PLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA The Department of Law participates in the Employees' Retirement System of Georgia, a single-employer, defined benefit pension plan. The Employees' Retirement System of Georgia was established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees of the State of Georgia. The Retirement System is funded through a combination of employee and employer contributions. Employees are required to contribute a graduated percentage of annual compensation. Employer contributions are for a specified percentage of active member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Department contributed $948,177.39 to the Employees' Retirement System of Georgia. Participation in the Retirement System is not segregated by employee groups of individual governmental units and the Department has no further liability under the retirement system other than future employer contributions as established for each fiscal year. Information relative to the plan description, funding status and historical trends is presented in the financial report ofthe Employees' Retirement System of Georgia for the year ended June 30, 1994. 
GEORGIA DEFINED CONTRIBUTION PLAN 
The State ofGeorgia also provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Employees' Retirement System of Georgia referred to above through 
a slngle-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement 
System of Georgia. Covered employees are required to contribute 7.5% of their gross salary, with no 
matching contribution by the employer. A member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of6S with the option of receiving a periodic payment based on mortality tables and interest 
 
- 16 - 
 
 DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1994 
 
EXHIBIT "F" 
 
NOTE 6: RETIREMENTPLANS 
GEORGIA DEFINED CONTRIBUTION PLAN accumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994. 
NOTE 7: LEAVE POLICIES 
Employees earn ten hours of sick leave each month with a maximum accumulation of ninety days. Unused accumulated sick leave does not vest with the employee and is forfeited upon retirement or termination of employment. 
Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employees' length of continuous 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 8: CONTINGENCIES 
Litigation, claims and assessments filed against the Department of Law, if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self- insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994. 
NOTE 9: BONDING INFORMATION 
The Attorney General and all employees of the Department of Law are bonded under a Public Employees Blanket Bond written by Employers Insurance of Wausau, their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1994. Under this agreement the Public Employee Dishonesty Coverage insures the Department of Law to a maximum of $1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance of Duty Coverage insures the Department ofLaw to a maximum of $100,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment. 
 
- 17 - 
 
 DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30, 1994 
 
EXIIlBIT "F" 
 
NOTE 9: BONDING INFORMATION 
All employees of the Department of Law are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626011675 2, on which the premium was paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Department of Law to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. 
 
- 18 - 
 
 SUPPLEMENTARY INFORMATION - 19 - 
 
 DEPARTMENT OF LAW COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 1994 
 
EXHIBIT "G" 
 
ASSETS/ LIABILITIES JULY 1, 1993 
 
ADDITIONS 
 
DELETIONS 
 
ASSETS/ LIABILITIES JUNE 30, 1994 
 
FUND 
 
Collection on Delinquent Accounts 
Milk Bid Rigging Restitution Settlements Fund 
Fleet Finance Restitution 
 
$ 
 
-75.00 $ 3,011,660.00 $ 3,011,585.00 $ 
 
125,554.18 0.00 
 
298,254.36 377,447.97 
 
423,486.70 377,447.97 
 
0.00 
321.84 0.00 
 
$ 125,479.18$ 3,687,362.33 $ 3,812,519.67 $ 
 
321.84 
 
============= ============= ============= ============= 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 20 - 
 
 DEPARTMENT OF LAW SCHEDULE OF APPROVED BUDGET YEAR ENDED JUNE 30, 1994 
 
SCHEDULE "l" 
 
FUNDS AVAILABLE 
--------------- 
REVENUES 
-------- 
State Appropriation Other Revenues Retained 
EXPENDITURES 
Personal Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Books for State Library 
 
ORIGINAL 
 
GOVERNOR'S 
 
BUDGET 
 
APPROPRIATION EMERGENCY FUND ADJUSTMENTS 
 
------------- -------------- ----------- 
 
TOTAL 
 
$ 9,257,126.00 $ 500,000.00 
 
$ 9,757,126.00 
 
720,867.00 
 
$ 1,002,677.00 1,723,544.00 
 
------------- -------------- ------------- ------------- 
 
$ 9,977,993.00 $ 500,000.00 $1,002,677.00 $11,480,670.00 
 
$ 8,472,186.00 478,000.00 $ 110,000.00 28,640.00 161,935.00 412,920.00 114,312.00 60,000.00 140,000.00 
 
17,000.00 $ 483,000.00 
 
$ 8,472,186.00 
 
74,952.00 
 
569,952.00 
 
110,000.00 
 
60,000.00 
 
88,640.00 
 
15,800.00 
 
177,735.00 
 
26,026.00 
 
438,946.00 
 
10.00 
 
114,322.00 
 
825,889.00 1,368,889.00 
 
140,000.00 
 
$9,977,993.00$ 500,000.00 $ 1,002,677.00 $11,480,670.00 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 21 - 
 
 DEPARTMENT OF LAW CASH AND CASH EQUIVALENTS 
JUNE 30 1 1994 
NONINTEREST BEARING ACCOUNTS 
First Union National Bank of Griffin, Griffin, Georgia 
INTEREST BEARING ACCOUNTS 
Funds on Deposit with Office of Treasury and Fiscal Services State Investment Pool 
OTHER 
Cash on Hand 
 
SCHEDULE "2" 
$ 531,153.42 
321.84 
10.00 $ 531,485.26 
============= 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 22 - 
 
 DEPARTMENT OF LAW SCHEDULE OF GOVERNOR'S EMERGENCY FUND 
YEAR ENDED JUNE 30, 1994 
Operating Expenses, Per Diem and Fees for the Johnson, et al v. Miller, et al Voting Rights Case 
 
SCHEDULE "3" $ 500,000.00 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 23 - 
 
 DEPARTMENT OF LAW SCHEDULE OF OTHER OPERATING EXPENSES 
YEAR ENDED JUNE 30. 1994 
REGULAR OPERATING EXPENSES 
Clipping Service Continuing Legal Education Court Reporter Services and Transcripts Registration Fees Subscription 
Law Book Supplements 
 
SCHEDULE "4" 
 
$ 
 
1,858.29 
 
15,841.05 
 
219,740.25 
 
40,987.62 
 
47,108.36 
 
$ 325,535.57 
============= 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 24 - 
 
 DEPARTMENT OF LAW RECONCILIATION OF TRAVEL YEAR ENDED JUNE 30, 1994 
Total Per Annual Supplement Reimbursements Administrative Services, Department of Self-Insurance Trust Funds 
Total per Report 
 
SCHEDULE "5" 
$ 123,648.22 -34,341.79 
$ 89,306.43 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
- 25 - 
 
 SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
 DEPARTMENT OF LAW SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1994 
 
STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS 
 
The status ofthe finding disclosed in the review report for the year ended June 30, 1993, is summarized below: 
 
Audit Control Number 
 
Status OfFinding 
 
442-93-01 
 
Corrective Action Implemented