Audit report, state of Georgia, Department of Revenue, year ended June 30, 1994

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STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET ATLANTA. GEORGIA 30334

AUDIT REPORT STAIB OF GEORGIA DEPARTMENT OF REVENUE YEAR ENDED JUNE 30, 1994

DEPARTMENT OF REVENUE -TABLE OF CONTENTS-

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON 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

9

E STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS

STATE REVENUE COLLECTIONS FUND

10

F NOTES TO THE FINANCIAL STATEMENTS

12

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 FEDERAL REVENUES

27

4 SCHEDULE OF OTHER OPERATING EXPENSES

28

5 ANALYSIS OF STATE REVENUE COLLECTIONS

29

6 SCHEDULE OF PROPERTY TAX- STATE REVENUE COLLECTIONS FUND

PUBLIC UTILITIES COLLECTIONS AND ASSESSMENTS

42

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

~.epnritn.ent nf J\uhits
254 WASHINGlON STREET. S.W. ROOM 214
J\tlanbt, <lienrgia 30334-8400
October 11, 1994

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

Honorable Zell Miller, Governor Members of the General Assembly ofGeorgia
and Honorable Marcus E. Collins, Sr., Commissioner Department ofRevenue
INDEPENDENT AUDITOR'S COMBINED REPORT ON FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have audited the accompanying :financial statements (Exhibits A through F) ofthe Department of Revenue as of and for the year ended June 30, 1994. These financial statements are the responsibility of the Department's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the :financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
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.
As more fully discussed in Section II, Findings and Improper or Questioned Costs, material discrepancies were noted in the equipment inventory records of the Department. Equipment inventory comprises the General Fixed Assets Account Group. We were unable to determine the effects these discrepancies may have on the financial statements.
In our opinion, except for the effects on the :financial statements ofthe adjustments to the equipment inventory records that may be necessary as described in the preceding paragraph, the financial statements referred to above present fairly, in all material respects, the financial position (statutory basis) of the Department of
94ARL-2

Revenue as ofJune 30, 1994, and the results ofits operations (statutory basis) for the year then ended, on the basis of accounting described in Note 1.
Our audit was made for the purpose offorming an opinion on the :financial statements taken as a whole. The accompanying supplementary information (Exhibit G and Schedules 1 through 6) is presented for purposes ofadditional analysis and is not a required part ofthe :financial statements ofthe Department of Revenue. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole.
Respectfully submitted,
c::1~~
Claude L. Vickers State Auditor
CLV:cm 94ARL-2

FINANCIAL STATEMENTS - 1-

DEPARTMENT OF REVENUE

COMBAINLELD FUBNADLANTYCEPESSHEANEDT

(STATUTORY BASIS) ACCOUNT GROUPS

JUNE 30. 1994

ASSETS Cash and Cash Eguivalents
(See Schedule) Accounts Receivable
State Appropriation Federal Financial Assistance Other
Prepaid Items Inventories Fixed Assets
Equipment Amount to be Provided for Payment of
Accrued Compensated Absences

GOVERNMENTAL FUND TYPES

BUDGET

STATE REVENUE COLLECTIONS

$4,913,768.15
$ 5,665,034.55 27,502.69
810,774.12 $ 6,503,311.36 $ 15,685.20 $ 38,227.30

Total Assets

$6,557,223.86$ 4,913,768.15

LIABILITIES AND FUND EQUITY Liabilities
Cash Overdraft Accounts Payable Payroll Withholdings Funds Held for Others Compensated Absences
Total Liabilities Fund Equity
Investment in General Fixed Assets Fund Balances
Reserved Federal Financial Assistance Inventories State Revenue Collections Fund Regular International Registration Plan Collections to Other States
Unreserved Designated Surplus Total Fund Equity

$ 75,226.33 5,995,476.96 4,170.25
$ 6,074,873.54

$

0.00

46,000.00

$4,913,768.15

0.00

436,350.32

$ 482,350.32$ 4,913,768.15

Total Liabilities and Fund Equity

$=6,=5=5=7==,2==2=3s.=8=6$

4,913,768.15 ====s=s==z=

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
J-U-N-E---3(M-0-,e-m-1o-9r-9an4-d-u-m-JU-N-OE-n-l-y3-)0-,--1-9-9-3

$13,206,212.64

$18,119,980.79$ 9,162,407.33

$5,665,034.55$ 4,864,934.95

27,502.69

0.00

810,774.12

42,548.54

$6,503,311.36$ 4,907,483.49

$ 15,685.20$ 825,473.54

$ 38,227.30$ 62,062.86

$ 7,825,049.24

$7,825,049.24$ 8,106,831.30

$4,226,567.10$ 4,226,567.10$ 3,792,381.27

$13,206,212.64 $7,825,049.24$ 4,226,567.10 $36,728,820.99 $26,856,639.79

$13,206,212.64 $13,206,212.64

$ 75,226.33$ 725,148.64

5,995,476.96 4,649,578.20

4,170.25

1,572.64

13,206,212.64 7,799,126.73

$ 4,226,567.10 4,226,567.10 3,792,381.27

$4,226,567.10 $23,507,653.28 $16,967,807.48

$ 7,825,049.24 $ 7,825,049.24

$7,825,049.24$ 8,106,831.30

0.00 46,000.00 4,913,768.15
0.00

471.30 52,000.00 -45,934.88 1,409,215.48

436,350.32 366,249.11

$13,221,167.71 $ 9,888,832.31

$=1=3=,=2=0=6=,=2=1=2==.6=4$7=,=8=2=5=,=0=4=9==.2=4$==4=,2=2=6==,5=6=7=.1==0 $=3=6=,7==2=8=,8==2=0=.9=9= $=2=6=,8==5=6=,6==3=9=.7=9=

- 3-

DEPARTMENT OF REVENUE COMBINED STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS}
GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1994

EXHIBIT "8"

BUDGET

STATE REVENUE COLLECTIONS

TOTALS (Memorandum Only)

YEAR ENDED

JUNE 30, 1994

JUNE 30, 1993

FUND BALANCES - JULY 1

Reserved Unreserved
Designated Surplus
ADDITIONS

$ 52,471.30 $ 1,363,280.60 $ 1,415,751.90 $

199,561.36

366,249.11

366,249.11

164,509.87

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

$ 418,720.41 $ 1,363,280.60 $ 1,782,001.01 $

364,071.23

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

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

$ 30,612.11

$

30,612.11 $

31,647.80

$8,510,988,539.70 8,510,988,539.70 7,895,942,442.79

447,591.21 4,147.00

447,591.21 4,147.00

384,072.61 3,000.00

$ 482,350.32 $8,510,988,539.70 $8,511,470,890.02 $7,896,361,163.20

DEDUCTIONS

Unreserved Fund Balance (Surplus)

Returned to Office of Treasury

and Fiscal Services

Year Ended June 30, 1992

$

0.00

$

0.00 $

164,509.87

Year Ended June 30, 1993

366,249.11

366,249.11

0.00

Cash Disbursements for the Year

Exhibit "E"

$8,507,438,052.15 8,507,438,052.15 7,894,730,723.55

Reserved Fund Balance Carried Over

from Prior Year as Funds

Available

52,471.30

52,471.30

48,000.00

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

$ 418,720.41 $8,507,438,052.15 $8,507,856,772.56 $7,894,943,233.42

FUND BALANCES - JUNE 30

(To Exhibit "A")

$ 482,350.32$ 4,913,768.15$ 5,396,118.47 $ 1,782,001.01
============= ================ ================ -------=-==-==--

The notes to the financial statements are an integral part of this statement.
- 5-

DEPARTMENT OF REVENUE 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 Total State Appropriation FEDERAL REVENUES (See Schedule) OTHER REVENUES RETAINED Indirect Services Funding Department of Administrative Services Unclaimed Property Receipts Total Other Revenues Retained Total Revenues
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance Federal Financial Assistance Inventories Total Carry-Over from Prior Year

TOTALS YEAR ENDED JUNE 30. 1994 JUNE 30. 1993

$77,982,080.00 $79,711,261.00

1,799,310.00

309.00

_______o-._o~o

110 079.00 1

$79.781.390.00 $79.821.649.00

$ 27.502.69 $ 31,468.50

$3,845,000.00$ 3,845,000.00 766.270.00 825,897.00
$ 4.611.270.00 $ 4.670.897.00
$84.420.162.69 $84.524.014.50

$

471.30 $

0.00

52.000.00

48.000.00

$ 52,471.30 $ 48,000.00

Total Funds Available

$84,472,633.99 $84,572,014.50

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 Utilities Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing
TRAVEL

$39,304,452.96 $37,457,987.05

2,634,125.49 5,582,664.88 4,451,312.97
174,096.00 120,770.00
596,628.00 209,236.03
1,006.00

2,539,477.54 5,359,890.42 4,267,070.26
114,291.00 113,285.00
437,770.00 212,142.86
550.50

$53.074.292.33 $50.502.464.63

$ 139,803.81 $ 135,708.67

424,620.06 362,440.93

629,166.61

662,089.67

18,817.01

35,130.32

15,820.05

15,437.38

61,979.02

67,088.00

618,046.62

707,524.21

90,285.25

66,917.02

2 p 159 p 741.11 2.219.180.00

$ 4.158.279.54 $ 4.271.516.20

$ 1.267.504.46 $ 1.228.848.86

The notes to the financial statements are an integral part of this statement.
- 6-

DEPARTMENT OF REVENUE STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30, 1994

EXHIBIT "C" Page 2

EXPENDITURES MOTOR VEHICLE PURCHASES EQUIPMENT
Equipment Purchases Rental of Equipment
COMPUTER CHARGES Other Costs Supplies and Materials Repairs and Maintenance Other Operating Expenses (See Schedule) Software Equipment Equipment Purchases Per Diem, Fees and Contracts Per Diem and Fees Contracts Computer Billings, DOAS
REAL ESTATE RENTALS TELECOMMUNICATIONS
PER DIEM. FEES AND CONTRACTS
Per Diem and Fees Contracts
QI!!.IB COUNTY TAX OFFICIALS/RETIREMENT AND FICA Personal Services Employer's Contribution for: Retirement Other Costs Grants to Counties, Cities and Civil Divisions
MOTOR VEHICLE TAGS AND DECALS Per Diem, Fees and Contracts Contracts
POSTAGE Other Costs Supplies and Materials Total Other Total Expenditures
Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30, 1994 JUNE 30, 1993 $ 38,091.00 $ 62,745.00
$ 723,640.49 $ 372,474.22 158,826.60 146,737.27
$ 882,467.09 $ 519,211.49

$ 182,114.66 $ 91,252.04

359,468.82 171,784.41

10,188.04

14,656.35

250,185.43

63,062.28

544,847.58 359,174.55

122,550.34 221,022.23 783,541.10 3,735,240.73 9,186,885.96 7,596,226.39

$11.439.781.93 $12,252,418.98

$ 2,605,436.20 $ 2.639,265.74

$ 763,333.40 $ 842,714.47

$ 566,203.18$ 500,430.45 207,100.00 1. 079 p 532 90
$ 773,303.18 $ 1,579,963.35

$2,555,255.00$ 3,982,313.32 577,045.00 567.885.00
$3,132,300.00$ 4,550,198.32
$ 2.439.595.24 $ 2,439.426.60
$3,450,658.41 $ 3,299,168.25 $ 9,022,553.65 $10,288,793.17 $84,025,042.78 $84,187,941.89
447,591.21 384,072.61

$84,472.633.99 $84.572.014.50

The notes to the financial statements are an integral part of this statement.
- 7-

DEPARTMENT OF REVENUE
STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30. 1994

EXHIBIT "D"

FUNDS AVAILABLE REVENUES
State Appropriation Federal Revenues Other Revenues Retained
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance

BUDGET

ACTUAL

VARIANCE FAVORABLE (UNFAVORABLE)

$79,781,390.00 $79,781,390.00$

0.00

150,606.00

27,502.69 -123,103.31

4,611,270.00 4,611,270.00

0.00

$84,543,266.00 $84,420,162.69 $ -123,103.31

0.00

52,471.30

52,471.30

EXPENDITURES
Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts County Tax Officials/Retirement and FICA Motor Vehicle Tags and Decals Postage

$84,543,266.00 $84,472,633.99 $ -70,632.01
============= ------------- -------------

$53,437,611.00 $53,074,292.33 $

4,427,438.00 4,158,279.54

1,378,680.00 1,267,504.46

37,800.00

38,091.00

873,551.00 882,467.09

11,242,550.00 11,439,781.93

2,628,155.00 2,605,436.20

750,491.00 763,333.40

794,376.00 773,303.18

3,132,300.00 3,132,300.00

2,439,610.00 2,439,595.24

3,400,704.00 3,450,658.41

363,318.67 269,158.46 111,175.54
-291. 00 -8,916.09 -197,231.93 22,718.80 -12,842.40 21,072.82
0.00 14.76 -49,954.41

$84,543,266.00 $84,025,042.78$ 518,223.22

Excess of Funds Available over Expenditures

$ 447,591.21 $ 447,591.21
============= ----------===

The notes to the financial statements are an integral part of this statement.

- 9-

DEPARTMENT OF REVENUE STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "E" Page 1

CASH RECEIPTS

STATE REVENUE COLLECTIONS (See Schedule)

Business License Tax Non-Business License Tax
Motor Vehicle Registrations - Tags Motor Carrier Registrations - Tags Motor Vehicle Title Registrations Corporation Net Worth Tax Estate Tax Financial Institutions Business Occupation Tax Incane Tax Corporations IncHviduals Property Tax County Tax Digest Accounts Intangible Recording Public Ut;lities Property Tax Assessments Taxes Based on Sales Sales and Use Tax
Regular Motor Fuel Alcoholic Beverages Beer Liquor Wine Cigars and Cigarettes Motor Fuel Fines and Forfeitures Peace Officer and Prosecutor Training Fund Unclaimed Property State Children's Trust Fund Earnings - General Government Local Option Sales Tax Collection Cost MARTA Sales Tax Collection Cost Motor Carriers' Fees Railroad Car Tax Collection Cost Real Estate Transfer Tax Collection Cost Special Purpose Sales Tax Collection Cost Other Fees Unclassified Differences

$ 3,380,550.00

$ 130,072,072.23 38,364,978.15 51,014,243.01
----------------

219,451,293.39
18,850,010.45 87,808,192.02 10,562,225.19

$ 519,929,664.97 3,581,672,711.71 4,101,602,376.68
----------------

$ 33,242,413.56 693,969.62
----------------

33,936,383.18

$

36,149.41

239,065.02

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

275,214.43

$3,295,547,101.58 121,530,332.64 $3,417,077,434.22

$ 69,624,320.67 27,311,502.26 13,697,937.75

110,633,760.68

85,748,478.91 368,259,533.92 3,981,719,207.73

1,563,329.08 14,383,654.85
19,169,203.18 1,195,278.75

$ 5,802,488.17
2,004,945.39 2,971,371.99
2,568.59 127,516.13 4,034,099.50
1,525,418.36

16,468,408.13

623,212.64

Total Cash Receipts CASH AND CASH EQUIVALENTS - JULY 1, 1993

$8,510,988,539.70 1,363,280.60

$8,512,351,820.30

The notes to the financial statenents are an integral part of this statenent. - 10 -

DEPARTMENT OF REVENUE STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
STATE REVENUE COLLECTIONS FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "E" Page 2

DISBURSEMENTS

GOVERNMENTAL COST

Fees Retained at Collecting Source Property Tax County Tax Digest Accounts Intangible Recording
Taxes Based on Sales Sales and Use Tax Regular Motor Fuel
Cigars and Cigarettes Motor Fuel
Assessing Property Tax County Tax Digest Accounts
Disbursement of International Registration Plan Collections to Other States

$ 1,202,703.48 36,345.61 $ 1,239,049.09

$ 40,310,919.61 1,722,747.71 $ 42,033,667.32
2,562,107.61 2,746,721.26

47,342,496.19$ 48,581,545.28

446,690.56

17,096,244.29

Total Governnental Cost TRANSFERS

$ 66,124,480.13

To Office of Treasury and Fiscal Services Less: Refunds through Office of Treasury and Fiscal Services

$9,193,406,680.87 752,093,108.85 8,441,313,572.02

Total Disbursements CASH AND CASH EQUIVALENTS - JUNE 30, 1994

$8,507,438,052.15 4,913,768.15

$8,512,351,820.30
============

The notes to the financial statements are an integral part of this statement.
- 11 -

DEPARTMENT OF REVENUE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 1: SUM?\.,fARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Department ofRevenue, an organizational unit of the State of Georgia, is part ofthe executive branch ofthe government ofthe State ofGeorgia. It is the chieftax collection agency for the State ofGeorgia. The principal taxes collected are those on sales, motor fuel, income, alcoholic beverages, cigars and cigarettes, property, motor vehicle licenses, and estates. The executive officer of the Department is the Revenue Commissioner, who is appointed by the Governor with the consent of the Senate ofthe General Assembly of Georgia. It is the Revenue Commissioner's duty to administer all Georgia tax laws and he is empowered to make all rules and regulations necessary for the enforcement ofthose laws.
The Department ofRevenue does not have authority to determine the amount offunding it will receive from the State of Georgia for any given fiscal year. Such authority is vested in the General Assembly ofGeorgia. The Department also does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Department ofRevenue is included within the State ofGeorgia reporting entity for financial reporting purposes because of the significance ofits legal, operational and financial relationships with the State ofGeorgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification ofGovernmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING The Department ofRevenue uses funds and account groups to report on its financial position and the results ofits operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia. 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 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.

- 12 -

DEPARTMENT OF REVENUE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 1; 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 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 ofcertain governmental long-tenn liabilities, such as claims, judgments and compensated absences, which will be paid from future resources.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the 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, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Further, the modified accrual basis ofaccounting calls for expenditures, other than accrued interest ofgeneral long-tenn 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
- 13 -

DEPARTMENT OF REVENUE 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
in part on the unexecuted portion of contracts for goods and services. The recognition ofencumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
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
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 of Revenue 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 ofGeorgia 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.

- 14 -

DEPARTMENT OF REVENUE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Inventories ofsupplies are valued at weighted average cost on the Combined Balance Sheet (Statutory Basis). The consumption method is used to account for the use ofinventories. Under the consumption method, the costs ofinventories are recorded as expenditures when consumed rather than when purchased.
RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a brief description of the reserves reflected in the accompanying financial statements:
INVENTORIES Reported inventories, under the consumption method, are offset by a portion of State funds to provide working capital for managing a reasonable level of inventories.
STATE REVENUE COLLECTIONS FUND The balance ofrevenues collected but not transmitted to the Office ofTreasury and Fiscal Services at fiscal year end. These funds are required by the Official Code of Georgia Annotated to be transferred to the Office ofTreasury and Fiscal Services and are not available for use by the Department.
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 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 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.
- 15 -

DEPARTMENT OF REVENUE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 1: SUM;MARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPARATIVE DATA Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding ofchanges 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 ofthe State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral 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 ofthe United States or ofthe State of Georgia.
(2) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia.
(3) Bonds of any 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.
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation ofthe 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.

- 16 -

DEPARTMENT OF REVENUE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

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 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 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 6 974 034 '3 S 33 194 S31 S7 S 61S SIO 80 S 19102998 S 32 387 990 79

CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount shown below is maintained in an investment pool by the O~ce of Treasury and Fiscal Services.

Type ofInvestment State Investment Pool

Carrying Amount

Market Value

$11,062,869.91 $11,062 869,91

NOTE 3: OPERATING LEASES

The Department ofRevenue 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 Department has the option ofrenewing the lease on a year-to-year basis. Future minimum commitments for operating leases as ofJune 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

$ 709 590 16

- 17 -

DEPARTMENT OF REVENUE NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 3: OPERATING LEASES

Expenditures for rental of real property and equipment under operating leases for the year ended June 30, 1994, totaled $887,401.85.

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 ofSl,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

$ 8,106,831.30

Additions Deductions

1,321,980.49 1,603,762.55

Balance June 30, 1994

S 7,825,049.24

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
Additions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits (*)
Balance June 30, 1994

$ 3,792,381.27
133,830.62 300,355.21
$4,226 567.10

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

NOTE 6: DEFERRED COMPENSATION PLAN

The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees ofthe State of Georgia and county health departments, pennits such employees to defer a portion oftheir salary until future years. 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,

- 18 -

DEPARTMENT OF REVENUE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "F"

NOTE 6: DEFERRED COMPENSATION PLAN
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 ofthe 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 ofeach participant. Financial information relative to the plan is presented in the financial report ofthe State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1994.
NOTE7: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA The Department ofRevenue 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 contnbute a graduated percentage ofannual compensation. Employer contributions are for a specified percentage ofactive member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Department contributed $5,582,664.88 to the Employees' Retirement System ofGeorgia. 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.
Certain employees of the offices of the tax commissioners, tax collectors, and tax receivers ofthe counties ofthe State ofGeorgia have been declared by State law to be adjuncts ofthe Department ofRevenue, and as such, have been afforded the opportunity to become members ofthe Employees' Retirement System of Georgia (ERS). As a result, the Department has been directed by statute to pay the employer's portion for these offices directly to ERS from funds appropriated by the General Assembly for this purpose. During the year ended June 30, 1994, the Department contributed $2,555,255.00 to ERS on behalfofthese offices. The Department has no further liability under the retirement system other than future employer contributions as established for each fiscal year.
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 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 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
- 19-

DEPARTMENT OF REVENUE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT"F"

NOTE7: RETIREMENTPLANS
GEORGIA DEFINED CONTRIBUTION PLAN to retire at the age of65 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 ofcontinuous State service with a maximum accumulation offorty five days. Employees are paid for unused accumulated annual leave upon retirement or termination ofemployment. 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 ofGeorgia.
NOTE 9: NONMONETARY TRANSACTIONS
The Georgia State Financing and Investment Commission (GSFIC), a unit of State government, is responsible for the issuance of state debt and for the investment and accounting for proceeds derived from the issuance of state debt. In addition, GSFIC is authorized to acquire and construct projects for the benefit of units of State government or to contract with units of State government for the construction or acquisition ofcapital outlay projects. During the fiscal year ended June 30, 1994, the Georgia State Financing and Investment Commission paid $271,655.80 to various vendors for approved projects related to the Department ofRevenue.
NOTE 10: 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 Department expects such amounts, ifany, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against the Department ofRevenue, ifany, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department ofAdministrative 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 ofGeorgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1994.
-20-

DEPARTMENT OF REVENUE
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "F"

NOTE 11: UNCLAIMED PROPERTY
In accordance with the Disposition ofUnclaimed Property Act (Official Code of Georgia Annotated Sections 44-12-190 through 44-12-235), the Revenue Commissioner assumes custody of and safekeeping responsibility for certain property presumed abandoned after such property has been in the possession ofbanking or financial organizations, insurance corporations, utilities, business associations, fiduciaries, courts, or public officers for a period of one to seven years and such organizations or individuals have been unable to contact the last known owner or his/her successors to rights in such property. The Act requires the Revenue Commissioner to hold properties other than money for a period of one year prior to sale at auction. The Revenue Commissioner is further directed to remit immediately all sales proceeds and other monies received in accordance with the Act, less costs associated with the safekeeping and/or sale of such property, to the Office ofTreaswy and Fiscal Services. For the year ended June 30, 1994, remittances to the Office ofTreasury and Fiscal Services for Unclaimed Property were $19,169,203.18; and are reflected on Exhibit "E" ofthis report. The appraised value of items received and awaiting public auction are not reflected in this report.
NOTE 12: BONDING INFORMATION
The Commissioner and all employees of the Department ofRevenue 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 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 $100,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue oftheir position or employment.
All employees of the Department ofRevenue 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 Department to a maximum of $4,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 21 -

Sr{(nk
PJ 22-

SUPPLEMENTARY INFORMATION -23-

DEPARTMENT OF REVENUE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1994

EXHIBIT "G"

FUND Central Processing Unit Special Account Local Option Sales Tax: Co11 ect ions For Distribution to Local Governnents MARTA Sales Tax Motor Fuel Cash Bond Escrow Account Railroad Car Tax Real Estate Transfer Tax Setoff Debt Collections Account Various Governnental Units S~cial Purpose Sales Tax: Collections For Distribution to Local Governnents Tennessee Valley Authority Account Unclaimed Property Account
(1) LOCAL OPTION SALES TAX DISBURSEMENTS

ASSETS/ LIABILITIES JULY 1, 1993

ADDITIONS

DELETIONS

ASSETS/ LIABILITIES JUNE 30, 1994

$ 64,449.31 $ 11,145,041.29 $ 11,080,737.30 $ 128,753.30

0.00 0.00 0.00 29,810.66 351,384.46 6,458,205.96

580,248,779.79 571,667,338.15 200,494,545.13
34,066.53 3,165,243.51 20,935,814.01

580,248,779.79(1) 571,667,338.15 200,494,545.13(2)
19,874.24 18,275650,,874805.2.130(34J

0.00 0.00 0.00 44,002.95 3,260,787.74 8,633,234.87

488,788.61

8,780,439.69

8,713,675.88

555,552.42

0.00 403,409,948.47 403,409,948.47(5)

0.00

0.00 394,955,803.46 394,955,803.46

0.00

533,215.84

2,868,063.14

2,896,361.48

504,917.50

-126,728.11 24,414,808.73 24,209,116.76

78,963.86

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

$-7-,7-99-,1-26-.7-3

$=2=,2=2=2=,=1=1=9=,8=9=1=.=9=0

$2,216,712,805.99 =========

$-13-,2-06-,2-12-.6-4

To Office of Treasury and Fiscal Services For Distribution to Local Governments
To State Revenue Collections Fund

$ 574,446,291.62 5,802,488.17

(2) MARTA SALES TAX DISBI.RSEMENTS

$ 580,248,779.79

To Office of Treasury and Fiscal Services For Distribution to MARTA
To State Revenue Collections Fund

$ 198,489,599.74 2,004,945.39

(3) RAILROAD CAR TAX DISBURSEMENTS

$ 200,494,545.13 ===========

To Counties and Municipalities To State Revenue Collections Fund

$

253,271.64

2,568.59

$

255,840.23

(4) REAL ESTATE TRANSFER TAX DISBURSEMENTS

To Counties and Municipalities To State Revenue Collections Fund (5) SPECIAL PURPOSE SALES TAX DISBI.RSEMENTS

$ 18,633,268.97 127,516.13
$===1=8=,=7=6=0=,7=8=5=.=1=0

To Office of Treasury and Fiscal Services For Distribution to Local Governments
To State Revenue Collections Fund See notes to the financial statBTients.

- 24 -

$ 399,375,848.97 4,034,099.50
$==4=0=3=,=4=0=9=,9=4=8=.=4=7

DEPARTMENT OF REVENUE
SCHEDULE DF APPROVED BUDGET
YEAR ENDED JUNE 30. 1994

SCHEDULE "1"

FUNDS AVAILABLE
REVENUES
State Appropriation Federal Revenues Other Revenues Retained

ORIGINAL

AMENDED

BUDGET

APPROPRIATION APPROPRIATION ADJUSTMENTS

TOTAL

$77,982,080.00$ 1,799,310.00

$79,781,390.00

0.00

$ 150,606.00 150,606.00

4,611,270.00

4,611,270.00

$82,593,350.00$ 1,799,310.00$ 150,606.00 $84,543,266.00

EXPENDITURES
Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts County Tax Officials/Retirement and FICA Motor Vehicle Tags and Decals Postage

$52,218,301.00 $ 1,219,310.00

4,420,138.00

$

1,368,174.00

37,800.00

788,500.00

85,051.00

10,553,750.00 580,000.00

2,713,206.00 -85,051.00

750,491.00

770,376.00

3,132,300.00

2,439,610.00

3,400,704.00

$53,437,611.00 7,300.00 4,427,438.00 10,506.00 1,378,680.00
37,800.00 873,551.00 108,800.00 11,242,550.00 2,628,155.00 750,491.00 24,000.00 794,376.00 3,132,300.00 2,439,610.00 3,400,704.00

$82,593,350.00$ 1,799,310.00$ 150,606.00 $84,543,266.00

See notes to the financial statements.

- 25 -

DEPARTMENT OF REVENUE CASH AND CASH EQUIVALENTS
JUNE 30, 1994
NONINTEREST BEARING ACCOUNTS
Bank South, N. A., Atlanta, Georgia
Bank South, N. A., Macon, Georgia
Bank South, N. A., Waycross, Georgia First National Bank of Griffin, Griffin, Georgia
First Union National Bank of Georgia, Columbus, Georgia First Union National Bank of Georgia, Savannah, Georgia NationsBank of Georgia, N. A., Atlanta, Georgia
NationsBank of Georgia, N. A., Thomasville, Georgia
SouthTrust Bank of Georgia, N. A., Atlanta, Georgia
Spivey State Bank, Swainsboro, Georgia
Trust Company Bank, Atlanta, Georgia
Wachovia Bank of Georgia, N. A., Atlanta, Georgia
INTEREST BEARING ACCOUNT
Funds on Deposit with Office of Treasury and Fiscal Services
State Investment Pool
Funds in Transit to Office of Treasury and Fiscal Services
State Investment Pool
OTHER
Cash on Hand

See notes to the financial statements.

- 26 -

SCHEDULE "2"
$ 3,893,070.33 3,492.00 66,348.00 12,687.43 6,984.00 6,984.00
877,975.34 -21,312.00 634,487.08
3,492.00 682,462.49 807,363.88$ 6,974,034.55
$ 9,237,411.75 1,825,458.16 11,062,869.91
7,850.00
$18,044,754.46

DEPARTMENT OF REVENUE SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1994

PROGRAM
Transportation, U. S. Department of Highway Planning and Construction Direct Motor Carrier Safety Assistance Program Direct

CFDA NUMBER
20.205 20.218

SCHEDULE "3"
AMOUNT $ 26,643.77
B58.92 $ 27,502.69
==c:z:::a::R=:a:

See notes to the financial statements.

- 27 -

DEPARTMENT OF REVENUE SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30. 1994
REGULAR OPERATING EXPENSES
Bank Service Charges for Money Orders and Cashier's Checks Clipping Services Court Costs FIFA's Freight, Express and Storage
Levies
Microfilm Destruction and Disposal Subscriptions, Dues and Registration Fees Training Films and Tapes Uniforms
COMPUTER CHARGES
Corporate Pricing Tapes Department of Labor Computer Billings Freight, Express and Storage Levies Internal Revenue Service Project

SCHEDULE "4"
$ 1,250.14 2,428.19 29,212.88
157,767.50 326,882.60
6,558.27 106.60
70,803.78 13,750.99 9,285.67
$ 618,046.62
$ 2,750.00 3,179.54 30.00 247.53 3,980.97
$ 10,188.04

See notes to the financial statements.

- 28 -

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 1

BU~INE~~ Ll~EN~E TAX

Beer Dealers

Wholesalers' Licenses

75 (1994) at $500.00

Retailers' Licenses

6 (1989) at $50.00

$

6 (1990) at $50.00

6 (1991) at $50.00

79 (1992) at $50.00

1,529 (1993) at $50.00

13,773 (1994) at $50.00

953 Penalties at $25.00

Brokers' Licenses 5 (1993-1994) at $50.00
Domestic Importers' Licenses 2 (1993-1994) at $500.00
Special One-Day Permits 214 (1993-1994) at $25.00
Hotel In-Room Services 18 (1993-1994) at $100.00
Foreign Producers' Licenses 20 (1993-1994) at $100.00

Liquor Dealers

Wholesalers' Licenses

31 (1994) at $1,000.00

Retailers' Licenses

4 (1989) at $100.00

$

6 (1990) at $100.00

5 (1991) at $100.00

114 (1992) at $100.00

435 (1993) at $100.00

3,995 (1994) at $100.00

272 Penalties at $50.00

Brand Registration Licenses 178 (1993-1994) at $10.00
Brokers' Licenses 15 (1993-1994) at $100.00
Hotel In-Room Services 34 (1993-1994) at $100.00
Foreign Producers' Licenses 101 (1993-1994) at $100.00
Foreign Producers' Resident Representatives
126 (1993-1994) at $25.00 Wholesale Salesman Licenses
302 (1993-1994) at $10.00

Wine Dealers

Wholesalers' Licenses

3 (1993) at $500.00

$

52 (1994) at $500.00

Retailers' Licenses

7 (1989) at $50.00

$

6 ( 1990) at $50.00

5 (1991) at $50.00

75 (1992) at $50.00

1,225 (1993) at $50.00

11,000 (1994) at $50.00

678 Penalties at $25.00

Brand Registration Licenses 50 (1993-1994) at $10.00
Brokers' Licenses 20 (1993-1994) at $50.00
Domestic Importers' Licenses 7 (1993-1994) at $500.00

$ 300.00 300.00 300.00 3,950.00 76,450.00 688,650.00 23,825.00
$ 400.00 600.00 500.00 11,400.00 43,500.00 399,500.00 13,600.00
1,500.00 26,000.00 $
350.00 300.00 250.00 3,750.00 61,250.00 550,000.00 16,950.00

See notes to the financial statements.

- 29 -

37,500.00
793,775.00 250.00
1,000.00 5,350.00 1,800.00 2,000.00 $ 31,000.00
469,500.00 1,780.00 1,500.00 3,400.00 10,100.00 3,150.00 3,020.00
27,500.00
632,850.00 500.00
1,000.00 3,500.00

841,675.00 523,450.00

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 2

BUSINES~ LlCEH~E TAX
Wine Dealers Farm Winery 6 (1993-1994) at $50.00 Foreign Producers' Licenses 20 (1993-1994) at $100.00
Cigar and Cigarette Dealers Wholesalers' Licenses 228 (1993-1994) at $50.00 Manufacturers Representatives' Licenses 398 (1993-1994) at $10.00
Coin Operated Amusement Machines Annual Licenses 318 (1993-1994) at $2,500.00 Semi-Annual Licenses 32 (1993-1994) at $1,750.00 Annual Permit Fees 32,093 (1993-1994) at $15.00

$

300.00

2,000.00 $

667,650.00

$

11,400.00

3,980.00

15,380.00

$

795,000.00

56,000.00

481,395.00

1,332,395.00

Net to State
Beer Dealers Liquor Dealers Wine Dealers Cigar and Cigarette Dealers Coin Operated Amusement Machines

$ 3 1380 1550.00

$

841,675.00

523,450.00

667,650.00

15,380.00

1,332,395.00

$ 3 1380 1550.00

See notes to the financial statements.

- 30 -

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 3

NON-BUSINESS LICENSE TAX
Motor Vehicle Registrations - Tags Atlanta Office Sales Decals/Tags Miscellaneous Sales
County Office Sales Gross Collections
Refunds Through Office of Treasury and Fiscal Services
Undistributed Collections - Other

$

454,984.74

684.399.06 $ 1,139,383.80

134,786,623.74

-5,972,860.71 118,925.40

$ 13010721072.23

See notes to the financial statements.

- 31 -

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENOEO JUNE 30. 1994

SCHEDULE "5" Page 4

NON-BUSINESS LICENSE TAX Motor Carrier Registrations - Tags International Registration Plan Collections from Georgia Motor Carriers For Georgia For Other States Collections from Other States Miscellaneous Collections Unprocessed Documents July 1, 1993 Refunds Through Office of Treasury and Fiscal Services

$ 9,345,953.37 1s.687,oi8.81 $ 25,032,982.18 14,834,073.30 515,923.67
-1,936,020.63
-81.980.37

$ 38.364.978.15

Motor Vehicle Title Registrations Atlanta Office County Offices Title Penalties Georgia Bureau of Investigation Inspection Fees Special Handling Fees Out of State Transfer Fees Motor Vehicle Sales Tax Collections

$ 8,057,920.56 24,449,947.50 $ 32,507,868.06
926,510.00
597,550.00 1,124,958.00 8,004,671.87 7,852,685.08

$ 51 1014 1243.01

Disbursement of International Registration Plan Collections to Other States
Net to State Cash Balance
July 1, 1993 June 30, 1994

$
$ -1,369,173.89 _ _ _ _ _-_1__6__4__._9_2_

17,096,244.29 203,724,387.91
-1,369,338.81

$ 219.451,293.39

See notes to the financial statements.

- 32 -

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 5

CORPORATION NET WORTH TAX Domestic and Foreign Corporations Current, Delinquent and Penalties
Net to State
ESTATE TAX Original Returns and Additions Less: Refunds Through Office of Treasury and Fiscal Services
Net to State
FINANCIAL INSTITUTIONS BUSINESS OCCUPATION TAX Original Returns and Additions
Net to State

$ 1a 1aso 1010.4s $ 1a 1aso 1010.4s
$ 90,755,171.23 2,946,979.21 $ a1 1aoa 1192.02
$ a1 1aoa 1192.02
$ 10 1ss2 122s.19

See notes to the financial statements.

- 33 -

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENOED JUNE 30, 1994

SCHEDULE "5"
Page 6

INCOME TAX Corporations Original Returns, Additional Tax, Interest and Penalties Estimate of Taxes
Less: Refunds Through Office of Treasury and Fiscal Services
Individuals Original Returns, Additional Tax, Interest and Penalties Estimate of Taxes Fiduciary Withholding
Less: Refunds Through Office of Treasury and Fiscal Services

$ 84,837,605.09 533.542,185.72
$ 618,379,790.81
98,450,125.84 $ 519,929,664.97
$ 273,883,699.03 428,009,412.16 8,109,645.24
3.460.924,822.16 $4,170,927,578.59
589,254.866.88 3.581.672.711.71

$4.101,602,376.68

Net to State Cash Balance
July 1, 1993 June 30, 1994

$4,101,312,231.12

$

-60,525.51

350,671.07

290,145.56

$4,101,602,376.68

See notes to the financial statements.

- 34 -

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 7

PROPERTY TAX County Tax Digest Acc6unts Vehicle Property Mobile Home Timber Intangible Not on Digest Interest Penalties
Miscellaneous Undesignated General Collections
Less: Refunds Through Office of Treasury and Fiscal Services
Intangible Recording Gross Collections

$ 2,728,496.61 28,988,976.81 121,788.84 146,441.00 199,842.15 365,877.59 182,322.67 1,440,663.00$ 34,174,408.67
73,356.80
$ 34,247,765.47
1,005,351.91 $ 33,242,413.56
693,969.62

Commissions Paid on Above County Tax Digest Accounts Receiver Collector Intangible Recording
Net to State County Tax Digest Accounts Intangible Recording

$ 33.936.383.18

$

446,690.56

1,202,703.48 $ 1,649,394.04

36,345.61

$ 1,685,739.65

$ 31,593,019.52 657,624.01

32,250,643.53

$ 33.936.383.18

See notes to the financial statements.

- 35 -

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 8

PUBLIC UTILITIES
Property Tax (Schedule "6") Ad Valorem Tax Electric Light and Power Companies Equipment Companies Railroads Telephone and Telegraph Companies Water and Gas Companies
Assessments (Schedule "6") 1994 Collections

$

7,579.35

21,415.18

6,785.98

252.82

116.08 $

36,149.41

239,065.02

$_ _ _ _21.s_.,_2_14,_. 4,..3

Net to State Cash Balance
July 1, 1993

$

275,227.88

-13.45

$_ _ _ _21_s_,_2_14,_. 4,..3

See notes to the financial statements.

- 36 -

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 9

TAXES BASED ON SALES Sales and Use Tax Monthly Collections by General Accounting Office Regular Motor Fuel Penalties and Interest Regular Motor Fuel
Less: Refunds Through Office of Treasury and Fiscal Services Regular Motor Fuel

$3,323,121,967.84 121.120.066.94 $3,444,242,034.78

$ 12,898,270.08 631,884.17

13,530,154.25

$3,457,772,189.03

$ 40,473,136.34 221,618.47

40,694,754.81

$3.417.077.434.22

Commissions Paid on Above Regular Motor Fuel
Net to State Regular Motor Fuel
Cash Balance July 1, 1993 June 30, 1994

$ 40,310,919.61 1,722,747.71 $ 42,033,667.32

$ 3,254,969,605.38 119,807,584.93 3,374,777,190.31

$

78,445.05

188,131.54

266,576.59

$3.417.077.434.22

See notes to the financial statements.

- 37 -

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENDED JUNE 30, 1994

SCHEDULE "5" Page 10

TAXES BASED ON SALES
Alcoholic Beverages Beer Malt Beverage Tax Less: Refunds Through Office of Treasury and Fiscal Services

$ 69,633,970.67 _ _ __.9..,.,.,.6""50,....,..0...,0 $ 69.624.320.67

Net to State Cash Balance
July 1, 1993 June 30, 1994

$ 69,623,470.67

$

550.00

_ _ _ __.3""'o.:.o~.o=o

a5o.oo

Liquor Stamp Sales Less: Refunds Through Office of Treasury and Fiscal Services Net to State

$ 69.624.320.67
$ 31,125,788.03 3,814,285.77 $ 27.311.502.26
$ 27.311.502.26

Wine Wine Tax Less: Refunds Through Office of Treasury and Fiscal Services
Net to State
Cigars and Cigarettes Stamp Sales Less: Refunds Through Office of Treasury and Fiscal Services

$ 13,704,887.75 _ _ __.6....""'9""50,.....,.0.:,0 $ 13.697.937.75
$ 13.697.937.75
$ 85,970,625.97 222,147.06$ 85.748.478.91

Commissions Paid on Above (Retained at
Collecting Source) Net to State Cash Balance
July 1, 1993 June 30, 1994

$ 2,562,107.61 79,453,783.30

$

-3,492.00

3,736,080.00

3,732,588.00

$ 85.748.478.91

See notes to the financial statements.

- 38 -

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENDED JUNE 30 1 1994

SCHEDULE "5" Page 11

TAXES BASED ON SALES

Motor Fuel Co11 ect ions Aviation Dealers Gasoline Dealers Special Fuel Dealers Diesel Operators - Bonded L. P. Gas Operators - Bonded Second Motor Fuel Tax on Out-of-State Carriers Penalties and Interest

Commissions Allowed

Motor Carrier Mileage Tax Collections Penalties and Interest Late Filings

less:

Total Returned Checks Through Motor Fuel Revolving Accounts
Refunds Through office of Treasury and Fiscal Services Agriculture Distributors Motor Carriers Retail Dealers

$

71,954.05

288,978,686.54

3,289,325.04

78,047,830.73

684,732.99

259,606.53 216,204.45$ 371,548,340.33

2,746,721.26$ 374,295,061.59

$ 3,262,518.56 53,035.60
340,146.16

3,655,700.32

61,647.92

$

6,928.61

219,761.37

7,785,749.89

1,617,140.20

9,629,580.07

$ 368,259,533.92

Commissions Paid on Above (Retained at Collecting Source)
Net to State Cash Balance
July l, 1993 June 30, 1994

$ 2,746,721.26 365,519,832.07

$

-755.35

-6,264.06

-7,019.41

$ 368,259,533.92

See notes to the financial statements.

- 39 -

QEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENDEQ JUNE 30. 1994

SCHEDULE "5" Page 12

FINES ANQ FQRFEITURES Beer - Malt Beverages Liquor Wine Cigars and Cigarettes

BOND FORFEITURES

PENAL TIES

$

30,190.29 $

76,274.91 $

54,797.60

142,763.75

51,303.47

1,207 p 999 06

IQ.ill 106,465.20 197,561.35 51,303.47
1,207 .999.06

$

84.987.89 $ 1.478.341.19 $ 1.563.329.08

Net to State
PEACE OFFICER ANO PROSECUTOR TRAINING FUND Fees from Court Fines and Bond Forfeitures

$ 1.563.329.08 $ 14.383.654.85

Net to State Cash Balance
July 1, 1993 June 30, 1994

$ 14,370,268.42

$

699.00

12,687.43

13,386.43

$ 14.383.654.85

UNCLAIMED PROPERTY Proceeds from Sale of Abandoned Property

$ 19.169.203.18

Net to State

$ 19.169.203.18

STATE CHILDREN'S TRUST FUND Fees from Marriage Licenses and Divorce Cases

$ 1.195.278.75

Net to State Cash Balance
June 30, 1994

$ 1,195,178.75 100.00

$ 1.195.278.75

See notes to the financial statements.

- 40 -

DEPARTMENT OF REVENUE ANALYSIS OF STATE REVENUE COLLECTIONS
YEAR ENDED JUNE 30. 1994

SCHEDULE "5" Page 13

EARNINGS - GENERAL GOVERNMENT

Local Option Sales Tax-Collection Cost

$ 5,802,488.17

MARTA Sales Tax Collection Cost

2,004,945.39

Motor Carriers' Fees Motor Fuel Truck Registrations Decals Temporary Permits

$

2,462,298.00

318,464.00$ 2,780,762.00

Penalties for Non-Registration

190,609.99

2,971,371.99

Railroad Car Tax Collection Cost

2,568.59

Real Estate Transfer Tax Collection Cost

127,516.13

Special Purpose Sales Tax Collection Cost

4,034,099.50

Other Fees Fees on Contract Liquor Investigation Fees Miscellaneous Collections Motor Fuel Dealers' Registration Fees Penalties and Interest - Motor Fuel Unallocated Collections - Motor Fuel Unprocessed Applications Registration Fees - Undistributed July 1, 1993 June 30, 1994

$

3,580.00

89,400.00

1,492,131.77

2,945.00

10,911.00

50,491.72

$

-538,008.34

421,106.43

-116,901.91

Less: Returned Checks Through Centralized

Taxpayer Registration Revolving

Accounts - Motor Fuel

Refunds Through Office of

Treasury and Fiscal Services

Registration Fees

Motor Fuel

$

Undistributed

23.00 3,553.22

3,563.00

3,576.22

1,525,418.36

$ 16.468,408.13

Net to State

$ 16,468.408.13

UNIDENTIFIED DIFFERENCES

$_ _ _6_2_3,,_2_1_2._6,..4

Net to State Cash Balance
July 1, 1993 June 30, 1994

$

0.00

$

-9,014.45

632,227.09

623,212.64

$_ _ _62_3_._2_12_._6_4

See notes to the financial statements.

- 41 -

DEPARTMENT OF REVENUE SCHEDULE OF PROPERTY TAX STATE REVENUE COLLECTIONS FUND PUBLIC UTILITIES COLLECTIONS AND ASSESSMENTS
YEAR ENDED JUNE 30. 1994

SCHEDULE "6" Pagel

ELECTRIC LIGHT AND POWER COMPANIES
Alabama Power Company Georgia Power Company Jacksonville Electric Authority Mississippi Power Company Savannah Electric and Power Company South Mississippi Electric Power Association

EQUIPMENT COMPANIES
ACF Industries, Incorporated ADM Leases Aeropres Corporation A. E. Staley Manufacturing Company Agri Financial Services Air Products and Chemicals, Incorporated Akzo Coatings Albright and Wilson Allied Signal, Incorporated American President Intermodal Amoco Chemicals Corporation Amoco Oil Company Andersons, The Arcadian Corporation Arch Transportation Asarco, Incorporated BASF Chemical Division Blue Circle BOC Group Boeing Corporation Borden Packaging and Industrial Products CGTX, Incorporated CPLX Leasing C and T Refinery Cabot Corporation Canadian Wheat Board Canat Limited Cargill, Incorporated Cargill, Incorporated - Salt Division Celtran, Incorporated Chevron, U. S. A., Incorporated Chicago Freight Car Leasing Company Chrysler Rail Transportation Citicorp Railmark, Incorporated Columbian Chemicals Company Combustion Engines, Incorporated Conoco, Incorporated Consolidated Grain and Barge Continental Carbon Company Cryo-Trans, Incorporated
See notes to the financial statements.

- 42 -

PROPERTY TAX
COLLECTED

ASSESSMENTS COLLECTED

$

412.52

6,461.04

389.68

301.98

$ 24,828.98

14.13

$

7 .579.35 $_ __..2..._4...8...=2..._8...,.9=8

$ 2,202.66 922.40 11.46 83.29 28.07 24.03 3.17
6.88 16.45 15.06 155.11 104.85 6.26 3.92 18.44 5.26 146.81 29.71 14.45 3.80 21.31 97.55 4.57 9.76 19.32 36.06 17.68 211. 24 53.59 81.31 301.34 38.38 140.67 18.80 18.70 4.27 6.03 7 .18 17.32 17.43

DEPARTMENT OF REVENUE SCHEDULE OF PROPERTY TAX STATE REVENUE COLLECTIONS FUND PUBLIC UTILITIES COLLECTIONS AND ASSESSMENTS YEAR ENDED JUNE 30. 1994

SCHEDULE "6" Page 2

EQUIPMENT COMPANIES
Crystal Car Line Degussa Corporation Dow Chemical Company DuPont de Nemours, E. I., and Company DuPont of Canada Electric Fuel Corporation Elf Atochem North America Exxon Corporation Farmland Industries Federal Paper Board Company, Incorporated Florida Crushed Stone (CMIX) Florida Crushed Stone (FCSX) Formosa Plastics Company GE Railcar BRAE Service GLNX Corporation GWI Leasing Corporation General American Transportation Company General Chemical Corporation General Electric Company Georgia Gulf Corporation Georgia-Pacific Corporation - Bellingham Division Georgia-Pacific Corporation - Eastern Wood Division Georgia-Pacific Corporation - Forest Resources Georgia Tank Car Gilmer Paper Goodrich, B. F. Great Lakes Carbon Company Greenbriar Leasing Corporation Haffner, Walter, Company Hargis Railcar Helm Equipment Leasing Corporation Helm Financial Corporation Hercules, Incorporated Himont, U. S. A., Incorporated Huber, J.M., Incorporated IMC Fertilizer, Incorporated Joseph, David J., Company Kennecott-Cooper Corporation Kentucky-Tennessee Clay Company LCP Transportation LLCX, Incorporated Lakeland, City of, Florida Liquid Carbonic Corporation Louis Dreyfus Corporation MHC, Incorporated MacMillian Bloedel, Incorporated Mallard Transportation Company Mobil Oil Corporation Monsanto Company Nashtex Leasing Occidental Chemical Corporation
See notes to the financial statements.
- 43 -

PROPERTY TAX
COLLECTED

ASSESSMENTS COLLECTED

$

12.02

15.36

196.78

159.47

8.36

471.94

4.14

171.01

60.24

85.68

19.72

3.60

46.48

1,180.28

26. 77

10.42

3,176.55

6.53

4.45

78.74

5.77

53.17

471.12

12.63

115.42

20.98

34.09

21.98

16.56

47.18

16.01

284.29

6.12

13.31

220.64

117 .67

3.55

3.36

20.80

92.38

8.32

398.96

21.64

6.70

31.05

3.89

8.14

19.03

45.93

3.93

762.30

DEPARTMENT OF REVENUE
SCHEDULE OF PROPERTY TAX
STATE REVENUE COLLECTIONS FUND
PUBLIC UTILITIES COLLECTIONS AND ASSESSMENTS
YEAR ENDED JUNE 30, 1994

SCHEDULE "6" Page 3

EQUIPMENT COMPANIES
Olin Corporation PLM, Incorporated PPG Industries, Incorporated PQ Corporation Phillips Petroleum Company Procor, Limited Q. 0. Chemicals Railbox Company Railcar Associates Railcar Associates LP Railcar Limited Railroad Car Management Company, Incorporated Reagent Chemical Research Relco Tank Lines, Incorporated Reynolds Metals Company Rhone Poulenc Richardson, Sid, Carbon and Gasoline Rinker Materials Corporation Shell Oil Corporation Shintech, Incorporated Simplot, J. R., Company Sloss Industries Soltex Polymer Corporation Southern Illinois Railcar South Carolina Public Service Authority Steal Processing Service Sterling Chemicals Suburban Propane Division T. G. Soda Ash, Incorporated TTX Company Tarbutton, Hugh Temco Corporation Tennessee Eastman Company Texasgulf, Incorporated Transcisco Leasing Company Transmatrix Company Transportation Equipment, Incorporated Trinity Industries Leasing Corporation Tropicana Product Sales, Incorporated US 1 Chemicals Union Camp Corporation Union Carbide Corporation Union Tank Car Company United Clays, Incorporated United States Rail Services, Incorporated United States Systems, Incorporated Upper Merion and Plymouth Leasing Company Vista Chemical Company Vulcan Materials Company Westinghouse Electric Company

See notes to the financial statements.

- 44 -

PROPERTY TAX
COLLECTED

ASSESSMENTS COLLECTED

$

166.01

101. 20

34.48

10.31

75.94

162.94

7.21

372.33

466.93

43.95

13.19

3.18

19.55

3.66

13.84

12.53

19.77

8.60

77 .44

68.97

24.36

4.13

44.13

45.72

11.21

7.30

14.81

34. 72

26.69

3,007.75

26.29

5.09

99.02

62.65

6.73

5.74

5.13

354.93

58.14

15.29

21.90

64.52

1,970.82

4. 78

140.55

6.61

6.44

5.13

43.37

8.01

DEPARTMENT OF REVENUE SCHEDULE OF PROPERTY TAX STATE REVENUE COLLECTIONS FUND PUBLIC UTILITIES COLLECTIONS AND ASSESSMENTS YEAR ENDED JUNE 30. 1994

SCHEDULE "6" Page 4

EQUIPMENT COMPANIES

PROPERTY TAX
COLLECTED

ASSESSMENTS COLLECTED

Weyerhaeuser Company Williams Brothers Concrete Company

RAILROADS
Atlanta, Stone Mountain and Lithonia Railroad Atlantic and Gulf Railroad Chattahoochee Valley Railway Company Chattooga and Chickamauga Railroad Georgia and Alabama Division Railroad Company Georgia Central Railroad Georgia Great Southern Railroad Georgia Northeastern Railroad Company Georgia Southwestern Division Railroad Company Great Walton Railroad Hartwell Railway Company Louisville and Wadley Railway Company McRae Terminal Company Ogeechee Railway Company Saint Mary's Railroad Company Sandersville Railroad Company Southern Railway Company Southwestern Railroad Company Valdosta Southern Railroad

TELEPHONE AND TELEGRAPH COMPANIES
Alltell Georgia, Incorporated Alma Telephone Company American Telephone and Telegraph Company Blue Ridge Telephone Company Brantley Telephone Company Bulloch County Rural Telephone Co-Operative Camden Telephone and Telegraph Company Chickamauga Telephone Company Coastal Utilities, Incorporated Darien Telephone Company Ellijay Telephone Company Fairmont Telephone Company General Telephone of the South Georgia Telephone Corporation Hart County Telephone Company Hawkinsville Telephone Company MCI Telecommunications

See notes to the financial statements.

- 45 -

$

15.94

35.20

$ 21,415.18

$

7.33

216.23

5.10

120.11

22.68

606.21

17.43

85.62

298.80

70.36

10.86

4.27

2.32

109.01

592.25

1,047.53

45,828.91

$

6,785.98

110. 90

$ 6,785.98 $ 49.155.92

$ 34,097.04 543.13
5,338.52 505.46 360.34 606.13
1,704.01 254.92
2,476.05.
385.41 634.40 182.74 23,238.46 412.24 566.52 352.43 8,071.51

DEPARTMENT OF REVENUE SCHEDULE OF PROPERTY TAX STATE REVENUE COLLECTIONS FUND PUBLIC UTILITIES COLLECTIONS AND ASSESSMENTS
YEAR ENDED JUNE 30. 1994

SCHEDULE "6" Page 5

TELEPHONE AND TELEGRAPH COMPANIES
Metrex Corporation Microtel, Incorporated Nelson-Ball Ground Telephone Company Orlando Utilities Commission Pembroke Telephone Company Pineland Telephone Co-Operative, Incorporated Plant Telephone Company Planters Rural Telephone Progressive Rural Telephone Co-Operative Public Telephone Service Company Quincy Telephone Company Ringgold Telephone Company Saint Joseph Telephone Company Standard Telephone Company Statesboro Telephone Company Trenton Telephone Company U. S. Sprint Waverly Hall Telephone Company Wilkes Telephone and Telegraph Company Wilkinson County Telephone Company
WATER a~D GAS COMPANIES
Atlanta Gas Light Company Gainesville Regional Utilities United Cities Gas

PROPERTY TAX
COLLECTED

ASSESSMENTS COLLECTED

$

326.03

1,238.41

322.00

$

252.82

220.08

758.03

1,007.59

599.97

330.65

1,107.48

54.30

693.62

11. 77

5,729.89

827.96

366.13

6,418.86

116 .34

830.73

360.32

$

252.82 $ 101,049.47

$ 59,196.89

$

116. 08

4.833.76

$

116. 08 $ 64.030.65

$ 36,149.41 $ 239,065.02

See notes to the financial statements.

- 46 -

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

DEPARTMENT OF REVENUE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED WNE 30, 1994
CURRENT YEAR
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Inadequacies in Operation ofProperty Management System Financial Statements Audit Control Number 474-94-01
For the year under review, our examination included a review of the internal controls utilized by the Department of Revenue in maintaining their State Property System. This review consisted of testing the system for compliance with the State equipment laws and regulations. In addition, procedures were completed to verify the accuracy of the total equipment inventory valuation contained in the inventory records, which comprises the General Fixed Assets Account Group.
A sample of 129 equipment items was selected to test the accuracy ofthe inventory system's control attributes. The results ofthis sample disclosed the following deficiencies:
(1) Two items of equipment were combined and recorded as a single addition on the Department's property management system.
(2) One item of equipment which was purchased in Fiscal Year 1993 was not recorded on the Department's property management system until Fiscal Year 1994.
(3) Four items of equipment were recorded on the Department's property management system with an incorrect purchase price.
(4) Four items ofequipment were recorded twice on the Department's property management system.
As a result of the discrepancies identified above we were unable to determine the validity of the total equipment inventory valuation contained in the inventory records, which comprises the General Fixed Assets Account Group.
The Department ofRevenue should establish the necessary accounting controls and implement procedures to ensure the equipment inventory records are maintained in accordance with the STATE PROPERTY SYSTEM
MANUAL.
REVENUES/RECEIPTS Inadequacies in Documentation ofMotor Vehicle Revenue Collections Financial Statements Audit Control Number 474-94-02
Our examination ofthe State Revenue Collections Fund for the year under review disclosed certain deficiencies in the system ofcontrols over the performance ofaccounting related functions ofthe Motor Vehicle Division. The Division failed to provide adequate documentation to support revenue collections for the "Motor Vehicle Registration-Tag County Office Sales- Gross Collections" recorded in the Department of Revenue's general

DEPARTMENT OF REVENUE SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
CURRENT YEAR
REVENUES/RECEIPTS Inadequacies in Documentation ofMotor Vehicle Revenue Collections Financial Statements Audit Control Number 474-94-02
ledger as subsidiary records provided for audit could not be reconciled to the general ledger. This deficiency was a result ofrevenue collections from county tag offices not being identified, categorized and posted to the subsidiary records in a timely manner.
The Department of Revenue should take steps to eliminate the backlog of "Unprocessed Documents" and establish the necessary accounting controls and procedures to ensure that revenue is recognized when received and is supported by proper documentation.