Review report, state of Georgia, Public Service Commission, year ended June 30, 1994

GA
A800
.RI
P3s
1493-91-
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA PUBLIC SERVICE COMMISSION YEAR ENDED JUNE 30, 1994

PUBLIC SERVICE COMMISSION - TABLE OF CONTENTS -

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

3

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

4

D STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

6

E STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

STATE REVENUE COLLECTIONS FUND

7

F NOTES TO THE FINANCIAL STATEMENTS

8

SUPPLEMENTARY INFORMATION

SCHEDULES

1 SCHEDULE OF APPROVED BUDGET

18

2 CASH AND CASH EQUIVALENTS

19

3 SCHEDULE OF FEDERAL REVENUES

20

4 SCHEDULE OF OTHER OPERATING EXPENSES

21

5 SCHEDULE OF EXTRAORDINARY EXPENDITURES

22

CLAUDE L. VICKERS STATE AUDITOR /404) 656-2174
TAX RATIO (404) 656-0494

~eparhueut of cAuhits
254 WASHINGTON STREET, SW ROOM 214
J\thmht, eorgia 30334-8400
October 14, 1994

FINANCIAL AUDITS (404) 656-2180
PROGRAM AUDITS (404) 656-2006

Honoral;>le Zell Miller, Governor Members of the General Assembly of Georgia Members ofthe Public Service Commission
and Honorable William J. Dover, Executive Director
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 Public Service Commission as of and 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 Public Service Commission.
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 of expressing 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 (Schedules 1 through 5) is

94ARL-4

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.
Respectfully submitted,
~-<
Claude L. Vickers State Auditor
CLV:bh 94ARL-4

FINANCIAL STATEMENTS -I-

PUBLIC SERVICE COMMISSION
COMBINED BALANCE SHEET (STATUTORY BASIS) ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30 1 1994

EXHIBIT "A"

ASSETS

GOVERNMENTAL FUND TYPES

BUDGET

STATE REVENUE
COLLECTIONS

ACCOUNT GROUPS

GENERAL FIXED
ASSETS

GENERAL LONG-TERM
DEBT

TOTALS (Memorandum Only)
JUNE 30, 1994 JUNE 30, 1993

Cash and Cash Equivalents (See Schedule)

$1,598,120.27 $ 62,880.30

$1,661,000.57 $1,038,386.99

Accounts Receivable State Appropriation Federal Financial Assistance
Other

$ 362,036.42 245,480.04
0.00

$ 362,036.42 $ 13,272.73

245,480.04 476,501.00

0.00

26.68

$ 607,516.46

$ 607,516.46 $ 489,800.41

Fixed Assets Equipment

$1,396,832.03

$1,396,832.03 $1,173,301.04

Amount to be Provided for Payment of Accrued Compensated Absences

$512,854.00$ 512,854.00 $ 461,859.13

Total Assets

$2,205,636.73 $ 62,880.30 $1,396,832.03 $ 512,854.00 $4,178,203.06$ 3,163,347.57

LIABILITIES AND FUND EQUITY

Li abi l it i es Accounts Payable
Payroll Withholdings Compensated Absences

$2,071,862.80 130.00

$2,071,862.80$ 1,345,139.05

130.00

80.00

$ 512,854.00 512,854.00 461,859.13

Total Liabilities

$2,071,992.80

$ 512,854.00 $ 2,584,846.80 $1,807,078.18

Fund Equity
Investment in General Fixed Assets Fund Balances
Reserved State Revenue Collections Fund
Unreserved Designated Surplus

$1,396,832.03 $ 62,880.30 $ 133,643.93

$1,396,832.03 $1,173,301.04

62,880.30

400.00

133,643.93 182,568.35

Total Fund Equity

$ 133,643.93 $ 62,880.30 $1,396,832.03

$ 1,593,356.26 $ 1,356,269.39

Total Liabilities and Fund

Equity

$2,205,636.73 $ 62,880.30 $1,396,832.03 $512,854.00$ 4,178,203.06 $ 3,163,347.57

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.
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PUBLIC SERVICE COMMISSION COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1994

EXHIBIT "B"

FUND BALANCES - JULY 1

BUDGET

STATE
REVENUE COLLECTIONS

TOTALS (Memorandum Only)
YEAR ENDED ---------------------------JUNE 30, 1994 JUNE 30, 1993

Reserved Unreserved
Designated Surplus
ADDITIONS

$

400.00 $

400.00 $

168.00

$ 182,568.35

182,568.35

10,825.66

------------ ------------ ------------- -------------

$ 182,568.35 $

400.00 $ 182,968.35 $ 10,993.66

------------ ------------ ------------- -------------

Adjustments to Prior Year's Accounts Payable Cash Receipts for the Year
Exhibit "E" Excess of Funds Available over Expenditures
Exhibit "C" Reimbursement of Prior Year's Expenditures

$ 63,906.86

$ 63,906.86 $

5.10

$1,565,713.30 1,565,713.30 4,992,044.00

66,475.49

66,475.49

181,120.43

3,385.13

3,385.13

1,442.82

------------ ------------ ------------- -------------

$ 133,767.48 $1,565,713.30 $1,699,480.78$ 5,174,612.35

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"
Employee's Retirement System of Georgia Contribution Correction

$

0.00

182,568.35

$

0.00 $ 10,825.66

182,568.35

0.00

$1,503,233.00 1,503,233.00 4,991,812.00

123.55

123.55

0.00

------------ ------------ ------------- -------------

$ 182,691.90 $1,503,233.00$ 1,685,924.90$ 5,002,637.66

FUND BALANCES - JUNE 30

(To Exhibit "A")

$ 133,643.93 $ 62,880.30 $ 196,524.23 $ 182,968.35

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.
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PUBLIC SERVICE COMMISSION 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
Less: Lapsed Funds
Total State Appropriation
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED Sales of Photocopies
Total Funds Available
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 Assessments by Merit System Drug Testing
REGULAR OPERATING EXPENSES
Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses (See Schedule) Extraordinary Expenditures (See Schedule) Duplicating and Rapid Copy Publications and Printing

TOTALS YEAR ENDED
JUNE 30, 1994 JUNE 30, 1993

$ 8,446,162.00 $ 8,501,330.00 0.00 -261.082.00

$ 8,446,162.00 $ 8,240,248.00

1~.857.QO

224,679.00

$ 8,289,305.00 $ 8,015,569.00

$ 1,856,586.85 $ 1,740,259.70

$ 18,106.94 $ 19,770.77

$10.163.998.79 $ 9.775.599.47

$ 4,522,788.28 $ 4,203,144.28

324,971.62 701,349.29
555,393.14 28,840.00
5,914.00 115,303.00 17,639.08
879.76

301,980.49 662,952.58
521,385.41 24,840.00
3,675.00 80,875.00
17,865.60 925.25

$ 6,273,078.17 $ 5,817,643.61

$ 90,695.25 $ 101,931.47

162,899.12

150,930.13

52,907.53

48,183.45

3,246.89

4,397.30

13,450.61

16,684.00

45,596.03

36,918.75

94,794.90

0.00

2,467.11

4,320.47

37,754.23

29,918.95

$ 503,811.67 $ 393,284.52

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.
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PUBLIC SERVICE COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND
YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 2

EXPENDITURES
TRAVEL
MOTOR VEHICLE PURCHASES
EQUIPMENT
Equipment Purchases
COMPUTER CHARGES
Other Costs Supplies and Materials Repairs and Maintenance Other Operating Expenses (See Schedule)
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
Total Expenditures
Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993
$ 175,180.76$ 165,726.46 $ 151,408.27 $ 138,512.93
$ 70 417.42 $_-=-l~0,__7..a:.6~9:....:..7...:.4

$ 11,670.76 $ 9,678.64

1,189.41

4,547.94

13,693.13

1,936.08

27,446.91

17,602.49

150,532.36

178,701.53

24,999.90 159,305.22

0.00 186,740.24

$ 388,837.69 $ 399,206.92

$ 325,366.16 $ 320,267.96

$ 119,694.98 $ 101,842.46

$ 2,089,728.18 $ 2,247,224.44

$10,097,523.30 $ 9,594,479.04

66 475.49

181,120.43

$10,163,998.79 $ 9,775,599.47

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.
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PUBLIC SERVICE COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30 1 1994

EXHIBIT "D"

FUNDS AVAILABLE REVENUES
State Appropriation Federal Revenues Other Revenues Retained
EXPENDITURES Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Excess of Funds Available over Expenditures

BUDGET

ACTUAL

VARIANCE FAVORABLE
(UNFAVORABLE)

$ 8,446,162.00 $ 8,289,305.00 $ -156,857.00

1,946,144.00 1,856,586.85

-89,557.15

17,219.00

18,106.94

887.94

------------- ------------- -------------

$10,409,525.00 $10,163,998.79 $ -245,526.21

$ 6,461,363.00 $ 6,273,078.17 $ 188,284.83

506,329.00

503,811.67

2,517.33

202,790.00

175,180.76

27,609.24

158,400.00

151,408.27

6,991.73

78,612.00

70,417.42

8,194.58

439,090.00

388,837.69

50,252.31

344,154.00

325,366.16

18,787.84

119,787.00

119,694.98

92.02

2,099,000.00 2,089,728.18

9,271.82

------------- ------------- -------------

$10,409,525.00 $10,097,523.30 $ 312,001.70

$ 66,475.49 $ 66,475.49

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.
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PUBLIC SERVICE COMMISSION
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "E"

CASH RECEIPTS STATE REVENUE COLLECTIONS
Automatic Dialing and Announcement Permits 43 Permit Fees at $100.00
Certificates of Public Convenience and Necessity 421414 CCeerrttiiffiiccaatteess aatt 11755..0000 49 Certificates at 150.00 183 Certificates at 200.00 27 Emergency Temporary Authority Certificates at $50.00
Hazardous Materials Permits 553 Permits at $25.00 502 Permits at $100.00
Interstate Re9istration Permits 541 Permit Fees at 15.00 259 Permit Fees at 10.00
3,391 Permit Fees at 25.00 Motor Carrier License Ta9s
265 Greyhound Bus Line Tag Fees at $5.00 Motor Carrier Wire Permits
2,350 Permit Fees at $8.00 Vehicle Identification and Registration Stamps
43,046 Stamps at $5.00 1,048 Penalty Tags at $25.00 Refunds
Penalty Fees Motor Carrier Civil Penalty - Transportation Motor Carrier Civil Penalty - Utilities
Single State Vehicle Registration Fees Refunds Distributions to Other States Net 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

$

4,300.00

$

6,210.00

18,075.00

7,350.00

36,600.00

------1-,3--5-0-.0--0

$ 13,825.00
-----5-0-,-2-0-0-.-0-0

$

2,705.00

2,590.00

-----8-4-,7--7-5-.0--0

69,585.00 64,025.00 90,070.00

1,325.00

18,800.00

$ 215,230.00 26,200.00
------3--,8-7--5-.0--0

237,555.00

$

3,550.00

---9--4-3-,0--9-3-.0--0

946,643.00

$ 3,506,174.05 -3,656.85
--3-,-3-6-9--,1-0--6-.9--0 ----1-3-3-,-4-1-0-.3--0

$ 1,565,713.30

--------4-0-0-.-0-0

$-=1=,=5-6=6=,=1=1=3=.=3=0

$1,503,233.00 62,880.30
$1,566,113.30

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.
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PUBLIC SERVICE COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Public Service Commission, an organizational unit of the State of Georgia, is part of the executive branch ofthegovemment of the State of Georgia. The Commission supervises and regulates all intrastate common carriers, express companies, railroad companies, dock or wharfage companies, terminal companies, telephone and telegraph companies, and gas, electric light and power companies. The Public Service Commission consists of five (5) members who are elected at a statewide general election by the qualified voters.
The Public Service Commission 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 Commission also does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Public Service Commission is included within the State of Georgia reporting entity for financial reporting purposes because of the significance of its 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 Public Service Commission 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.

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PUBLIC SERVICE COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE I: 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 of accounting, 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, Federal grants and entitlements, 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. 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 ofthe 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. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
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PUBLIC SERVICE COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "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.
BUDGET Appropriation allotments to the Public Service Commission are on the basis of a budget submitted by the Commission 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 consist of demand deposits with a bank.
INVENTORIES No inventories of supplies are reported in the current 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 ofthe reserve reflected in the accompanying financial statements:

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PUBLIC SERVICE COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE STATE REVENUE COLLECTIONS FUND The balance ofrevenues collected but not transmitted to the Office of Treasury and Fiscal Services at fiscal year end. These funds are required by the Official Code of Georgia Annotated to be transferred to the Office of Treasury and Fiscal Services and are not available for use by the Commission.
COMPENSATED ABSENCES Compensated absences represent obligations of the Commission 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 Commission 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 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 the accompanying financial statements in order to provide an understanding of changes in the Commission'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
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 ofindebtedness or other direct obligations of the United States or of the State of Georgia.

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PUBLIC SERVICE COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (2) Bonds, bills, notes, certificates ofindebtedness 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 of the bonds for this purpose.

(4) Industrial revenue bonds and bonds of development authorities created by the laws of the 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 Banlc, 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 banlc 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 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Commission or by its agent in the Commission's name.

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

Carrying Amount

Bank Balance

Risk Categories

2

3

Cash Deposits

$ 1661 000.57 $ 2 064 144.07 $ 100 000 00 $====0,..,0.,.0 $ 1964144 07

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PUBLIC SERVICE COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 3: OPERATING LEASES

The Public Service Commission 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 ofthe original term ofthe lease, the Commission has the option ofrenewing the lease on a year-to-year basis. Future minimum commitments for operating leases as of June 30, 1994, 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
1995

$ 109,062.48

Expenditures for rental of real property and equipment under operating leases for the year ended June 30, 1994, totaled $132,813.05.

NOTE 4: 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
Additions Deductions
Balance June 30, 1994

$1,173,301.04
277,035.39 53,504.40
$ 1 396,832.03

NOTE 5: 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

$ 461,859.13

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

47,093.77 3 901.10

Balance June 30, 1994

$ 512,854.00

(*) Includes related fringe benefits applicable to compensated absences at July 1, 1993.

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PUBLIC SERVICE COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

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 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 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 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.
NOTE7: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA The Public Service Commission participates in the Employees' Retirement System of Georgia, a singleemployer, 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 Commission contributed $701,349.29 to the Employees' Retirement System of Georgia. Participation in the Retirement System is not segregated by employee groups of individual governmental units and the Commission 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 of Georgia 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 single-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 of Trustees, 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

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PUBLIC SERVICE COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXI-IlBIT "F"

NOTE7: RETIREMENTPLANS
GEORGIA DEFINED CONTRIBUTION PLAN to retire at the age of 65 with the option ofreceiving a periodic payment based on mortality tables and interest 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 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 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 Employee's Retirement System of Georgia.
NOTE 9: 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 Commission expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against the Public Service Commission, 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 10: BONDING INFORMATION
All employees ofthe Public Service Commission 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 Commission to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

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PUBLIC SERVICE COMMISSION NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 10: BONDING INFORMATION
The Faithful Performance of Duty Coverage insures the Commission 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.
All employees of the Public Service Commission are also bonded under a Commercial Crime Policy written by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium was paid to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Commission to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

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SUPPLEMENTARY INFORMATION - 17 -

PUBLIC SERVICE COMMISSION SCHEDULE OF APPROVED BUDGET
YEAR ENDED JUNE 30, 1994

SCHEDULE "l"

FUNDS AVAILABLE
---------------
REVENUES
--------
State Appropriation Federal Revenues Other Revenues Retained
EXPENDITURES
Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts

ORIGINAL

AMENDED

BUDGET

APPROPRIATION APPROPRIATION ADJUSTMENTS

TOTAL

------------- ------------- -----------

$ 8,446,162.00 $

0.00

$ 8,446,162.00

1,920,404.00

$ 25,740.00 1,946,144.00

0.00

17,219.00

17,219.00

------------- ------------- ------------- -------------

$10,366,566.00 $

0.00 $ 42,959.00 $10,409,525.00

============= ============= ============= =============

$ 6,556,158.00 $ -85,313.00 $ -9,482.00 $ 6,461,363.00

372,515.00

85,313.00

48,501.00

506,329.00

200,050.00

2,740.00

202,790.00

158,400.00

158,400.00

78,412.00

200.00

78,612.00

439,090.00

439,090.00

344,154.00

344,154.00

118,787.00

1,000.00

119,787.00

2,099,000.00

2,099,000.00

------------- ------------- ------------- -------------

$10,366,566.00 $

0.00 $ 42,959.00 $10,409,525.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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NONINTEREST BEARING ACCOUNTS
Bank South, N. A., Atlanta, Georgia

PUBLIC SERVICE COMMISSION CASH AND CASH EQUIVALENTS
JUNE 30. 1994

SCHEDULE "2"
$ 1,661,000.57
=============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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PUBLIC SERVICE COMMISSION SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1994

PROGRAM
Transportation, U. S. Department of Motor Carrier Safety Assistance Program Direct Pipeline Safety Direct

CFDA NUMBER
20.218 20.700

SCHEDULE "3"
AMOUNT $1,681,906.52
174,680.33 $1,856,586.85
=============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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PUBLIC SERVICE COMMISSION SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30, 1994
REGULAR OPERATING EXPENSES Clipping Services Freight, Express and Storage Legal Advertising Registration Fees Subscriptions and Dues
COMPUTER CHARGES Library Access Services Registration Fees

SCHEDULE "4"
$ 2,093.90 22,896.60 1,416.80 16,954.91 2,233.82
$ 45,596.03
$ 5,368.13 8,325.00
$ 13,693.13

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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PUBLIC SERVICE COMMISSION SCHEDULE OF EXTRAORDINARY EXPENDITURES
YEAR ENDED JUNE 30. 1994
REGULR OPERATIN~ EXPENSES
Alford, Judy Settlement of Civil Suit
Ware, Beverly Settlement of Civil Suit

SCHEDULE "5"

$

9,481.90

85,313.00

$ 94,794.90

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