Review report, state of Georgia, Department of Law, year ended June 30, 1995

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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, 1995

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)

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 STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

24

SCHEDULES

1 SCHEDULE OF APPROVED BUDGET

25

2 CASH AND CASH EQUIVALENTS

26

3 SCHEDULE OF GOVERNOR'S EMERGENCY FUND

27

4 SCHEDULE OF OTHER OPERATING EXPENSES

28

5 RECONCILIATION OF TRAVEL

29

6 RECONCILIATION OF PER DIEM AND FEES

30

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W-, Suite 214 Atlanta, Georgia 30334-8400
January 12, 1996

Honorable Zell Miller, Governor Members of the General Assembly of Georgia
and Honorable Michael l 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 ofLaw as ofand for the year ended June 30, 1995, 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 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 (Exhibit G and Schedules 1 through 6) is presented only for supplementary analysis purposes. Such information has been subjected to the

95ARL-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,
tf~~
Claude L. Vickers State Auditor
CLV:jy 95ARL-4

FINANCIAL STATEMENTS - 1-

DEPARTMENT OF LAW COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 1995

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
Total Assets

GOVERNMENTAL FUND TYPES

STATE

REVENUE

BUDGET

COLLECTIONS

$ 525,803.52 $

0.00

$ 247,381.00
630,809.16
$ 878,190.16

$ 1,403,993.68 $

0.00

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
Total Liabilities and Fund Equity

$ 1,030,708.95
47.50
$ 1,030,756.45

$

0.00

$ 373,237.23

$ 373,237.23 $

0.00

$ 1!4031993.68 $

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

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS (Memorandum Only) JUNE 30, 1995 JUNE 30, 1994

$

339.50

$

526,143.02 $

531,485.26

$

247,381.00 $

506,198.19

630,809.16

580,058.04

$

878,190.16 $ 1,086,256.23

$ 1,431,895.33

$ 1,431,895.33 $ 1,350,718.84

$

730,740.67 $

730,740.67 $

668,610.20

$

339.50 $ 114311895.33 $

730?40.67 $ 31566,969.18 $ 31637,070.53

$

339.50

$

339.50

$ 1,030,708.95 $ 1,349,673.87

47.50

57.50

339.50

321.84

$

730,740.67

730,740.67

668,610.20

$

730,740.67 $ 1,761,836.62 $ 2,018,663.41

$ 1,431,895.33

$ 1,431,895.33 $ 1,350,718.84

0.00

0.00

$ 1,431,895.33

373,237.23

267,688.28

$ 1,805,132.56 $ 1,618,407.12

$

339.50 $ 114311895.33 $

730,740.67 $ 3,566,969.18 $ 3,637,070.53

-3-

DEPARTMENT OF LAW COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1995

EXHIBITB

FUND BALANCES - JULY 1
Resented Unreserved
Designated Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable
Cash Receipts for the Year ExhibitE
Excess of Funds Available over Expenditures Exhibitc
DEDUCTIONS
Unreserved Fund Balance (Surplus)
Returned to Office of Treasury and Fiscal Services
Year Ended June 30, 1993 Year Ended June 30, 1994
Adjustments to Prior Year's Accounts Receivable
Cash Disbursements for the Year ExhibitE
FUND BALANCES - JUNE 30
(To ExhibitA)

BUDGET

STATE REVENUE COLLECTIONS

TOTALS {Memorandum Onll}
YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

$

267,688.28

$

267,688.28 $

0.00 $

0.00 $

0.00

0.00 $

267,688.28 267,688.28 $

325,581.87 325,581.87

$

0.00

$

0.00 $

$ 1,370,827.88

1,370,827.88

373,455.70

373,455.70

$

373,455.70 $ 1,370,827.88 $ 1,744,283.58 $

603.90 17,482.09 267,084.38 285,170.37

$

0.00

267,688.28

218.47

$

0.00 $

267,688.28

218.47

$ 1,370,827.88

1,370,827.88

$

267,906.75 $ 1,370,827.88 $ 1,638,734.63 $

325,581.87 0.00 0.00
17,482.09
343,063.96

$

3731237.23 $

0.00 $

3731237.23 $

2671688.28

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, 1995

EXHIBIT"C"

FUNDS AVAILABLE
REVENUES
STATE APPROPRIATION General Appropriation Governor's Emergency Fund (See Schedule)
Total State Appropriation
OTHER REVENUES RETAINED Fleet Finance Restitution - Legal Services Fleet Finance Restitution - Monitoring 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 Bureau of Investigation State Health Fraud Unit Georgia Environmental Facilities Authority Georgia Ports Authority Georgia Housing and 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 Self-Insurance Trust Fund American Southern Insurance Company Settlement for Court Costs
Total Other Revenues Retained

TOTALS
YEAR ENDED JONE 30, 1995 JONE 30, 1994

$ 10,320,106.00 $ 450,000.00
$ 10,770,106.00 $

9,257,126.00 500,000.00
9,757,126.00

$

0.00 $

377,447.97

68,750.00

18,750.00

1,204,544.00 24,000.00
30,000.00 18,000.00
106,268.07 25,040.40
6,000.00 42,000.00 24,000.00
12,000.00 3,900.00 24,000.00 36,000.00 5,093.62
16,919.00 7,400.00
$ 1,653,915.09 $

1,063,871.00 24,000.00
30,000.00 18,000.00
0.00 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
0.00 2,013.00
1,711,574.09

Total Funds Available

$ 12,424,021.09 $ 111468?00.09

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

$ 6,742,559.34 $
463,797.87 1,027,968.82
823,706.80 77,308.00 2,759.00 59,535.00
$ 9,197,634.83$

6,070,794.49
416,076.38 948,177.93 744,506.42
17,835.00 3,360.00
17,851.00
8,218,601.22

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, 1995

EXHIBITc

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
VEAR ENDED JONE 30, 1995 JONE 30, 1994

$ 122,258.23 $

100,879.91

67,392.31

61,562.22

91,121.21

62,m.s1

2,058.00

1,850.00

267,365.61

325,535.57

272.67

1,437.85

26,833.75

14,978.06

$ 577,307.84 $ _ _569~=,02=-'-'1.-"48"-

$ 121,553.55 $ _ _ _89___._,306_._43_

$

54,279.16 $ _ _ _88~_ ,483_.29_

$

9,988.34$

20,119.27

28,604.70

282,218.90

61,195.00 75,271.42

$ _ __,c4.:..T..:.T...c,::3:.:9: 7.63 $

$ _ _ 462 _,;.=..;,.4.:09.52$

$ _ ___1:3.=0.,.4:.4. 8.26 $

15,455.40 5,373.45 9,522.47
52,374.83
43,644.60 48,695.11
175,065.86
438,946.00
114,317.28

$ 12,639,656.80 $ 11.762,672.41
$ 876,984.39 $

12,516,964.89 11, 148,866.13
1,368,098.76

$ 1s21550.21 s _ _1.;..;39=,n...:..=sc;;.39~ $ 12,050,565.39 $ 11,201,615.71

373,455.70

267,084.38

$ 12,424,021.09 $ 11 ,468,700.09

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.
-7-

DEPARTMENT OF LAW STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30, 1995

EXHIBITD

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
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

s $ 10,no,1os.oo 10,no,1os.oo $

1,682,928.00

1,653,915.09

0.00 -29,012.91

$ 12,453,034.00 $ 12,424,021.09 $ _ _ _-_29_,0_1_2._9_1

$ 9,471,091.00 $ 9,197,634.83 $

587,085.00

sn,307.84

123,140.00

121,553.55

55,132.00

54,279.16

481,547.00

4n,397.63

462,410.00

462,409.52

130,317.00

130,448.26

989,312.00

876,984.39

153,000.00

152,550.21

273,456.17 9,m.1s 1,586.45 852.84 4,149.37 0.48 -131.26
112,327.61 449.79

$ 12,453,034.00 $ 12,050,565.39 $ _ _ _402---'-_,468_.6_1

$

373,455.70 $ _ _ _3.7.3. ..,.,4..5..5...7..0..

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, 1995

EXHIBIT"E"

CASH RECEIPTS STATE REVENUE COLLECTIONS
Sales of Opinions of the Attorney General Court Settlements
Total Cash Receipts CASH AND CASH EQUIVALENTS - JULY 1, 1994
DISBURSEMENTS TRANSFERS
To Office of Treasury and Fiscal Services CASH AND CASH EQUIVALENTS - JUNE 30, 1995

$

2,057.20

1,368,770.68

$ 1,370,827.88

0.00

$ 1,370,827.88

$ 1,370,827.88 0.00
$ 1,370,827.88

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 STATE:MENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Department ofLaw, an organizational unit ofthe State of Georgia, is part ofthe executive branch ofthe 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 ofthe State of Georgia.
The Department ofLaw does not have authority to determine the amount of funding it will receive from the State of Georgia 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 of Law 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 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 1994-1995. 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 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.

- 10-

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEl\ffiNTS
JUNE 30, 1995

EXIIlBIT "F"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
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 of the assets are included in the General Fixed Assets Account Group.
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 l\ffiASUREl\ffiNT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure of available spendable resources. 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 (i.e., when they
are "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 pay liabilities of the current period. Revenues that are accrued include primarily State appropriations and certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred,
- 11 -

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPES BUDGETFUND
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 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.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances ofthe Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, but differs from generally accepted accounting principles 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
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 Department ofLaw are on the basis of a budget submitted by the Department 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. 1208 of Georgia Laws 1994 (as approved April 18, 1994) and amended by Act No. 6 ofGeorgia Laws 1995 (as approved February 22, 1995), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1994-1995.
- 12 -

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET Overexpenditure of a budget unit object class, except for the "common object classes", included in the Department's final amended budget is in violation of Section 80 of the 1994-1995 Amended Appropriations Act. Expenditures ofno more than 102% ofthe stated amount for each common object class are authorized by Section 80. However, the total expenditure for the group ofcommon object classes may not exceed the sum of the stated amounts for the separate object classes ofthe group. The common object classes include Personal Services, Regular Operating Expenses, Travel, Motor Vehicle Purchases, Equipment, Computer Charges, Real Estate Rentals, Telecommunications and Postage.
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.
INVESTMENTS The Department of Law participates in an investment pool managed by the State of Georgia's Office of Treaswy and Fiscal Services (OTFS) referred to as the "Georgia Fund 1". The Department does not have any risk exposure from 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.
ACCOUNTS RECEIVABLE Accounts Receivable (Other) arising from operations are reported at gross value. Based on management's evaluation that amounts uncollectible are not material, no provision has been made for these accounts expected to be uncollectible.
INVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are .recorded as expenditures at the time of purchase.
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unresetved fund balance is remitted to the Office of Treasury and Fiscal Services in the subsequent fiscal year as surplus. This amount ofunexpended general appropriations is available to the State for reappropriation in subsequent years.
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

- 13 -

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES 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 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" 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 Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding of the changes in the Department's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Department's financial position and operations or would cause the statements to be 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, certificates of indebtedness, notes, or other direct obligations of the United States or ofthe State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
(3) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.
- 14 -

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (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. The bank balances as of June 30, 1995, 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 Department or by its agent in the Department's name.

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

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$ 525 793 52 $ 1 053 98] 42 $ 100 000 00 $ 953 981 42 $===0"-"00=

- 15 -

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount of the investment balance as of June 30, 1995, shown below is maintained in an investment pool by the Office of Treasury and Fiscal Services and is not subject to risk categorization.

Type ofInvestment

Carrying Amount

Market Value

State Investment Pool NOTE 3: CHANGES IN GENERAL FIXED ASSETS

$=='"'=33"="'9=!,l!.5=:0 $==33!=,!;9-.5==0

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, 1994

$1,350,718.84

Additions

81,176.49

Balance June 30, 1995

$ 1,431,895.33

NOTE 4: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1995, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

Balance July 1, 1994

$ 668,610.20

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

57,715.25 4,415.22

Balance June 30, 1995

$ 730 740 67

- 16 -

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 5: RISK MANAGEMENT
Public Entity Risk Pool
The State Personnel Board, Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government ofthe State of Georgia and units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board, Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.
Other Risk Management
The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance is purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Department is part of the State ofGeorgia 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 state agencies by DOAS to provide claims servicing and claims payment.
NOTE 6: 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 ofthe State of Georgia and county health departments, permits 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 is presented in the financial report of the State Personnel Board - Merit System of Personnel Administration for the year ended June 30, 1995.

- 17 -

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE7: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The Department 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 ofGeorgia. The Department's payroll for the year ended June 30, 1995, for employees covered by ERS was $6,595,203.70. The Department's total payroll for all employees was $6,742,559.34.
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.
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. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters of salary, the number of years 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. 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.
Contributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% of annual compensation and 4.75% ofannual compensation paid by the Department on behalf of the employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Department also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1995, the ERS employer contribution rate for the Department amounted to 15.50% of covered payroll and included the 4. 75% contributed on behalf of the employee referred to above. Contributions are also made on amounts paid for accumulated leave of retiring employees.
Total contributions to the plan made during fiscal year 1995 amounted to $1,104,792.22, of which $1,022,349.00 was made by the Department and $82,443.22 was made by employees. These contributions met the requirements ofthe plan.

- 18 -

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
The amount shown as the "pension benefit obligation" is a standardized disclosure measure ofthe present value ofpension benefits, adjusted for the effects of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due and make comparisons among employers. The measure is the actuarial present value of credited projected benefits, and is independent of the funding method used to determine contributions to the plan.

The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. Significant actuarial assumptions used in the valuation include the following:

1) The present value offuture pension benefits paid was computed using a discounted rate of7.5 percent. This rate is also the same rate assumed to be earned on investments in the plan in future years.

2) Future pension payments reflect the following assumed salary increases as a result of inflation and merit increases:

Age

Percentage

20

9.5%

25

8.5%

30

6.5%

35

6.0%

40 to 65

5.7%

3) ERS has the authority to grant cost-of-living adjustments by state statute. As of June 30, 1994, cost-ofliving adjustments have been included in the pension benefit obligation.

The total unfunded pension benefit obligation ofERS as of June 30, 1994, was $310,149,000, as follows:

- 19 -

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation

Pension Benefit Obligation:

Retirees and Beneficiaries Currently Receiving Benefits and Terminated Employees Entitled to Benefits but Not Yet Receiving Benefits

$ 2,227,653,000

Current Employees

Accumulated Contributions

648,516,000

Employer-Financed Vested

1,085,190,000

Employer-Financed Nonvested

1,206,805,000

Total Pension Benefit Obligation

$5,168,164,000

Net Assets Available for Benefits

4,858,015,000

Unfunded Pension Benefit Obligation

$ 310,149,000

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as ofthe same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers.

Funding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date.

Total contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Department's contribution was actuarially determined and represented 0.39% oftotal contributions made by all participating employers.

-20-

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXHIBIT "F"

NOTE 7: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Funding Policy
Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation.
Trend Information Historical trend information is presented in the financial report ofERS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description The Department participates in the Georgia Defined Contribution Plan ("GDCP") which is a single-employer defined contribution plan established by the Georgia General Assembly in July 1993 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 Department's payroll for the year ended June 30, 1995, for employees covered by GDCP was $96,810.85. The Department's total payroll for all employees was $6,742,559.34.
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 ofrequiring 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.
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 ofemployment, the amount of the member's account is refundable upon request by the member.
Total contributions made by employees during fiscal year 1995 amounted to $7,261.00 which represents 7.5% of covered payroll. These contributions met the requirements of the plan.

- 21 -

DEPARTMENT OF LAW NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995

EXIIlBIT "F"

NOTE 8: 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 ofcontinuous State service with a maximum accumulation of forty five days. Employees are paid for unused accumulated annual leave upon retirement or tennination of employment. See Note 1 - Compensated Absences.
Certain employees who retire with one hundred and twenty days or more offorfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 9: CONTINGENCIES
Litigation, claims and assessments filed against the Department of Law, if any, are generally considered to be actions against the State ofGeorgia. 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, 1995.
NOTE 10: 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, 1995. Under this agreement the Public Employee Dishonesty Coverage insures the Department to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance ofDuty Coverage insures the Department to a maximum of $1,000,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
All employees of the Department of Law are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 012292 6 and 626 012294 4, on which premiums were paid to October 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the Department to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 22-

SUPPLEMENTARY INFORMATION - 23 -

DEPARTMENT OF LAW COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 1995

EXHIBIT"G"

FUND
Collection on Delinquent Accounts
Milk Bid Rigging Restitution Settlements Fund

ASSETS/ LIABILITIES JULY 1, 1994

ADDITIONS

DELETIONS

$ 3,686,724.96 $ 3,686,724.96

ASSETS/ LIABILITIES JUNE 30, 1995

$

321.84 1,007,531.66 1,007,514.00 $

339.50

s _ _ _3_21....s..4. _ s 4,694,256.62 $ 4,694,238.96 s _ _ _ _3_3_9..s..o..

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 24-

DEPARTMENT OF LAW SCHEDULE OF APPROVED BUDGET
YEAR ENDED JUNE 30. 1995

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 APPROPRIATION

GOVERNOR'S EMERGENCY FUND

BUDGET ADJUSTMENTS

TOTAL

$

10,320,106.00 $

906,767.00

$ 11,226,873.00 $

450,000.00 $

$ 10,no,1os.oo

nS,161.00

1,682,928.00

450,000.00 $

na.1a1.oo $ 12,453,034.oo

$

9,471,091.00

504,005.00

102,540.00

26,136.00

342,637.00

455,147.00

125,317.00

60,000.00 $

140,000.00

$ 11,226,873.00 $

$ 450,000.00

$ 83,080.00 20,600.00 28,996.00 138,910.00
7,263.00 5,000.00 479,312.00 13,000.00

9,471,091.00 587,085.00 123,140.00 55,132.00 481,547.00 462,410.00 130,317.00 989,312.00 153,000.00

450,000.00 $

nS,161.00 $ 12,453,034.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-25-

DEPARTMENT OF LAW CASH AND CASH EQUIVALENTS
JUNE 30, 1995
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 Cashon Hand

SCHEDULE "2"
$ 525,793.52 339.50 10.00
$ ====5==26=,1==4==3==.0=2

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-26-

DEPARTMENT OF LAW SCHEDULE OF GOVERNOR'S EMERGENCY FUND
YEAR ENDED JUNE 30, 1995

SCHEDULE "3"

Expenses in Connection with the Eleventh Congressional District and Voting Rights Cases

$ 450,000.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-27-

DEPARTMENT OF LAW SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30, 1995
REGULAR OPERATING EXPENSES CHpping Service Continuing Legal Education Court Costs Court Reporter Services and Transcripts Registration Fees Subscription Law Book Supplements Unidentified

SCHEDULE "4"

$

1,765.05

14,932.89

36,804.22

131,574.68

39,159.45

42,478.55 650.77

$ 267,365.61

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-28-

DEPARTMENT OF LAW RECONCILIATION OF TRAVEL YEAR ENDED JUNE 30, 1995
Total per Annual Supplement Reimbursements Administrative Services, Department of Self-Insurance Trust Funds
Total per Report

SCHEDULE "5"

$

180,701.77

-59,148.22

$ ===1=2=1,=55=3=.5=5

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements of Supplementary Information.
-29-

Totals per Annual Supplement

Adjustments

Cuttler,

Sandra

Deering, Patrick

Morton,

RobertG.

Walbert and Mathis

Walbert and Mathis

Wilson, Robert E.

Totals per Report

DEPARTMENT OF LAW RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30, 1995

SCHEDULE "6"

TYPE PAYMENT

FEE AMOUNT

EXPENSE AMOUNT

$ 337,808.97 $

43,241.99 $

TOTAL 381,050.96

Attorney Attorney Attorney Attorney Reimbursable Expenses Attorney

4,500.00 28,530.86 20,000.00 450,092.54
-61997.61

-192.36

4,500.00 28,530.86 20,000.00 450,092.54
-192.36 -61997.61

$ 833,934.76 $

43,049.63 $ 876,984.39

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-30-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

DEPARTMENT OF LAW SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1995
CURRENT YEAR
GENERAL LEDGER Deficiencies in Accounting Procedures Financial Statements Audit Control Number 442-95-01
For the year under review, the general ledger as presented for examination was not in balance and subsidiary ledgers for receivables, payables and payroll could not be reconciled to the general ledger. This condition resulted from the Department's failure to correctly post monthly subsidiary amounts to the appropriate general ledger accounts on a monthly basis. Extensive analysis was required to identify amounts which were not posted or recorded correctly. After these corrections were made, an unidentified amount of $650.77 remained outstanding. This amount is shown on the "Schedule of Other Operating Expenses", as identified in the table of contents ofthis report.
Appropriate action should be taken by the Department ofLaw to ensure that all subsidiary ledger amounts are correctly posted to the general ledger on a monthly basis.