0-li 
A 200  RI S (,2 \994-9 5 
STATE OF GEORGIA DEPARTMENT OF AUDITS 
254 WASHINGTON STREET ATLANTA. GEORGIA 30334 
 
 REVIEW REPORT STATE OF GEORGIA STATE SOIL AND WATER CONSERVATION COMMISSION YEAR ENDED JUNE 30, 1995 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION -TABLE OF CONTENTS- 
 
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION 
 
EXHIBITS 
 
FINANCIAL STATEMENTS 
 
A COMBINED BALANCE SHEET (STATIJTORY BASIS) 
 
ALL FUND TYPES AND ACCOUNT GROUPS 
 
2 
 
B STATEMENT OF CHANGES IN FUND BALANCES 
 
(STATIJTORY BASIS) 
 
GOVERNMENTAL FUND TYPE 
 
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 NOTES TO THE FINANCIAL STATEMENTS 
 
7 
 
SUPPLEMENTARY INFORMATION 
 
SCHEDULES 
 
I SCHEDULE OF APPROVED BUDGET 
 
22 
 
2 CASH AND CASH EQUIVALENTS 
 
23 
 
3 SCHEDULE OF FEDERAL REVENUES 
 
24 
 
4 SCHEDULE OF OTHER OPERATING EXPENSES 
 
25 
 
5 RECONCILIATION OF TRAVEL 
 
26 
 
 CLAUDE L. VICKERS 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
November 28, 1995 
 
Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe State Soil and Water Conservation Commission 
and Honorable F. Graham Liles, Jr., 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 E) of the State Soil and Water Conservation Commission as of and for the year ended June 30, 1995, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management ofthe State Soil and Water Conservation 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 ofany material modifications that should be made to the accompanying financial statements in order for them to be in confonnity with the basis of accounting described in Note 1. 
Our review was made for the purpose ofexpressing limited assurance that there were no material modifications that should be made to the financial statements in order for them to be in confonnity with the basis of accounting described in Note I. The accompanying supplementary information (Schedules 1 through 5) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and 
 
95ARL-4 
 
 analytical procedures applied in the review ofthe financial statements and we are not aware of any material modifications that should be made thereto. 
Respectfully submitted, 
~ 
Claude L. Vickers State Auditor 
CLV:gp 95ARL-4 
 
 FINANCIAL STATEMENTS - I- 
 
 STATE son ANP WATER CONSERVATION COMMISSION 
CQMBINE P BAI ANCE SHFFT lSTATlJTORY BASIS) ALL FUNP lYPFS ANP ACCOUNT GROUPS JUNE 30 1995 
 
EXHIBIT"A" 
 
Mm Cull and Cull Equivolenls 
(See Schedule) Accounts Receivable 
State Appropriation F-1 ,.,.nc:ial Assistance 
F"DOldAssels Equipment 
Amount to be ProYided for Payment of Accrued c..,__ Absences 1.-Hment Purchase Commitments 
Total Assets 
 
GOVERNMENTAL FUND TYPE BUDGET 
 
ACCOUNT GROUPS 
 
GENERAL 
 
GENERAL 
 
FIXED 
 
LONG-TERM 
 
ASSETS 
 
DEBT 
 
TOTALS (Memorandum Only) JUNE 30 1995 JUNE 30 1994 
 
300.00 
 
$ 
 
300.00 $ 
 
100.00 
 
$ 
 
152,771.39 
 
<10867.74 
 
193639.13 
 
$ 152,771.39 $ 210,523.32 
 
<10867.74 
 
78199.66 
 
$ 193639.13 $ 288722.98 
 
184808.31 
 
$ 184 808.31 $ 188409.21 
 
71,584.74 $ 909.04 
72493.78 $ 
 
71,584.74 $ 909.04 
72493.78 $ 
 
89,959.79 3360.43 
73320.22 
 
$ 
 
193,939.13 $ 184,808.31 $ 
 
72,493.78 $ 451,241.22 $ 530,552.41 
 
Lll!,BILITl~S ANQ FUND ~Q~ITY 
 
Liablllties At:c:o<mtsPeyable Conlrac:ls Payable Compensated Absences 1.-Hment Purchases 
 
Total Liabillties 
 
$ 
 
Fund Equity 
 
Investment in General Foxed Assels 
 
Fund Balances 
 
Reserwd 
 
Federal Financial Assistance 
 
$ 
 
Unreserved 
 
Designated 
 
Surplus 
 
Total Fund Equity 
 
Total Liabilities and Fund Equity 
 
$ 
 
35,541.15 126,617.38 
162158.53 
 
$ 
 
71,584.74 
 
909.04 
 
35,541.15 $ 126,617.38 71,584.74 
909.04 
 
25,304.42 164,358.06 89,959.79 
3360.43 
 
72493.78 $ 234852.31 $ 262 983.70 
 
184,808.31 
 
184,808.31 $ 168,409.21 
 
28,891.76 
 
28,691.76 
 
68,984.12 
 
3 088.84 31 780.60 $ 
 
184808.31 
 
3088.84 216568.91 $ 
 
30175.38 267568.71 
 
193,939.13 $ 184,808.31 $ 
 
72,493.78 $ 451,24122 $ 530.552.41 
 
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement. 
-2- 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION STATEMENT OF CHANGES IN FUND BALANCES /STATUTORY BASIS} 
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30 1995 
 
EXHIBIT"B" 
 
FUND BALANCES - JULY 1 Reserved Unreserved Designated Surplus 
ADDITIONS Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures Exhibit"C" 
DEDUCTIONS Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1993 Year Ended June 30, 1994 Reserved Fund Balance Carried Over from Prior Year as Funds Available 
FUND BALANCES - JUNE 30 (To Exhibit "Ai 
 
BUDGET FUND YEAR ENDED JUNE 30, 1995 JUNE 30, 1994 
 
$ 
 
68,984.12 $ 
 
161,268.24 
 
30,175.38 
 
43,360.08 
 
$ 
 
99,159.50 $ 
 
204,628.32 
 
$ 
 
208.00 $ 
 
134.15 
 
31,572.60 
 
99,025.35 
 
$ 
 
31,780.60 $ 
 
99,159.50 
 
$ 
 
0.00 $ 
 
43,360.08 
 
30,175.38 
 
0.00 
 
68,984.12 
 
161,268.24 
 
$ 
 
99,159.50 $ 
 
204,628.32 
 
$ 
 
31 780.60 $ 
 
99,159.50 
 
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. -3- 
 
 STATE SOIL ANQ WATER CONSERVATION COMMISSION 
STillMENT OF FUNDS AVAJL.ABL F ANP EXPENDITURES BUDGETFUNQ 
VEAR ENPEP JUNE ;,a 1995 
 
EXHIBIT"C" 
 
R..INDS AVAIL ABI F 
~ STATE APPROPRIATION General Appropriation 
Loss: Lapsed Funds 
Tolal $-Appropriation 
FEDERAL REVENUES (Soe Schedule) 
OTHER REVENUES RETAINED Insurance Recoveries Witness Fees 
Total Other Revenues Retained 
Total Rawnues 
CARRY-OVER fRQM PRIOR YEAR Transfer from Reserved Fund Balance Federal Financial Assistanee 
Tolal Funds Available 
EXPENPITLJRES PERSONAi SERVICES 
SaloriesllndWogos Employer's Contributions for. 
FJ.C.A. Reti<ement Heatlh Insurance Personal Liability Insurance Unemployment Compensation Insurance Work81$' Compensation Insurance 
REGULAR OPERATING EXPENSES -Vehicle Expenses 
Supplies and Repairs and Maintenance 
Uti- 
R - (Other than Real Estate) Insurance and Bonding Other Operating Expenses (Soe Schedule) Publications and Printing 
Soe lndependant Accountanfs Combined Report on Review of Financial Sta1ements and Supplementary Information. 
The notes to the financial statements are an integral part of this statement. 
-4- 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30 1995 
 
JUNE 30 1994 
 
1,926,187.00 $ 89491.00 
1 836 696.00 $ 335437.95 $ 
6,200.00 $ 25.00 
6225.00 $ 2,178,358.95 $ 
 
1,849,7.c:!.OO 52041.00 
1797701.00 
-~-85 
0.00 0.00 
0.00 
2,482,035.85 
 
68984.12 
 
16126824 
 
2 247 343.07 $ 
 
2643~.09 
 
717,852.89 $ 
51,726.09 112,406.77 89,731.63 
5,400.00 318.00 
3191.00 
980626.38 $ 
11,977.12 $ 67,304.59 11,872.39 6,518.08 
817.50 87,646.00 
4,351.16 13358021 
324067.05 $ 
 
684,235.12 
49,578.42 105,42U2 85,529.41 
5,256.00 432.00 
3121.00 
933573.37 
7,915.03 49,623.41 
5,185.64 0.00 
406.00 83,864.00 11,620.51 1610222 
174 716.81 
 
 STATE SOIL ANP WATFB CONSERVATION COMMISSION STATEMENT OF FUNDS AVAILABI..E AND EXPENDITURES 
BUQGETFUNp 
YEARFNQEPJLJNE3Q 1995 
 
EXHIBIT"C" 
 
fXeENDITIJRES 
MQTOR \IEHICI E PURCHASES 
~ Equipment Purchases ~n:hase<IEquipment 
R_. <I Equipment 
COMPUTER CHARGE 
-OlhorCosls Supplies and Matarials Olhor Operating ~ (See Schedule) Equipment 
Equipment Purcllaseo Compulor Billings, DOA$ 
RFAL ESTATE RENTAi S Ifl ECOMMUNICATJONS PER DIEM FFFS AND CONTRACTS 
Per Diem and Fees Contracts 
COUNTY CONSERVATION GRANTS Per Diem, Fees and Ccntrac:ts Conbacts Total Expenditures 
Excess of Funds Available over Expenditures 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30 1995 
 
JUNE 30 1994 
 
34048.69 $ 38194.95 $ 
 
34618.70 36on.oo 
 
834.35 $ 2,820.00 8443.92 
1209827 $ 
 
768.95 2,820.00 
8373.8 
11862.44 
 
2,670.44 $ 
no.co 
2,261.78  ,934.73 1178.84 11815.79 $ 80442.00 $ 
s 11n6.33 
1 8,552.17 $ 
186 53.92 
336006.09 $ 
 
1,066.52 0.00 
1,894.00 5,719.92 1109.84 9790.08 57334.68 19220.15 
159,946.29 710969.27 870915.56 
 
380 744.92 $ ---'-=""07,.:,,,,.95,._ 
 
2,215,770. 7 $ 
 
2,544,278.7 
 
31 5n.so 
 
99025.35 
 
See Independent Accountants Combined Report on REMeW of Financial Statements and Supplementary lnlonnation. The notes to the financial statements are an integral part of this statement. 
-5- 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES 
COMPARED TO BUDGET BUDGET FUND 
YEAR ENDED JUNE 30 1995 
 
EXHIBIT"D" 
 
FUNDS AVAILABLE REVENUES 
s - Appropriation 
Federal Reven,Other Reven,- Retained 
CARRY-OVER FROM PRIOB YEAR Transfer from Reserved Fund Balance 
EXPENDITURES Personal Services Regular Operating Expenses Travel Moler Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts County Conservation Grants 
Excess of Funds Available over Expenditures 
 
BUDGET 
 
ACTUAL 
 
VARIANCEFAVORABLE (UNFAVORABLE) 
 
$ 1,926,187.00 $ 1,836,696.00 $ 
 
375,745.00 
 
335,437.95 
 
6,200.00 
 
6,225.00 
 
$ 2,308,13200 $ 2,178,358.95 $ 
 
-89,491.00 -40,307.05 
25.00 
-129,773.05 
 
0.00 
 
68,984.12 
 
68,984.12 
 
$ 2308,132.00 $ 2,247,343.07 $ 
 
-60,788.93 
 
$ 1,011,483.00 $ 325,713.00 40,520.00 38,200.00 12,115.00 11,839.00 78,865.00 22,000.00 351,397.00 416,000.00 
 
980,626.38 $ 324,067.05 
34,048.69 38,194.95 12,098.27  11,815.79 80,442.00 17,726.33 336,006.09 380,744.92 
 
30,856.62 1,645.95 6,471.31 5.05 16.73 23.21 -1,577.00 4,273.67 
15,390.91 35,255.08 
 
$ 2,308,132.00 $ 2,215,770.47 $ 
 
92,361.53 
 
$ 
 
31,572.60 $ 
 
31 572.60 
 
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary lnfonnation. 
The notes to the financial statements are an integral part of this statement. -6- 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT "E" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY The State Soil and Water Conservation Commission, an organizational unit of the State of Georgia, is part of the executive branch ofthe government ofthe State of Georgia. Five (5) District Soil and Water Supervisors, appointed by the Governor, serve as members of the State Soil and Water Conservation Commission. 
The 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 State Soil and Water Conservation Commission is included within the State of Georgia reporting entity for financial reporting purposes bec;itise of the significance of its legal, operational and financial relationships with the State ofGeorgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards. 
FUND ACCOUNTING The State Soil and Water Conservation Commission uses a fund 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. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number offunds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The fund and account groups presented in the accompanying financial statements are as follows: 
GOVERNMENTAL FUND TYPE 
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1994-1995. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund. 
ACCOUNT GROUPS 
GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at cost or at estimated historical cost if historical cost is not practically determinable. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets. 
 
- 7- 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT"E" 
 
NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
FUND ACCOUNTING 
ACCOUNT GROUPS 
GENERAL FIXED ASSETS The cost ofnormal maintenance and repairs that do not add to the value ofthe asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life of the assets are included in the General Fixed Assets Account Group. 
GENERALLONG-TERMDEBT-The account group used to report the noncurrent portions ofcertain governmental long-term liabilities, such as claims, judgments and compensated absences, which will be paid from future resources. 
BASIS OF ACCOUNTING MEASUREMENTFOCUS 
The accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. Governmental funds should be accounted for using the flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure ofavailable spendable resources. In accordance with accounting practices prescribed or pennitted by statutes and regulations of the State of Georgia, the Budget Fund remits its unreserved fund balance (surplus) to the Office of Treasury and Fiscal Services in the subsequent fiscal year. 
GOVERNMENTAL FUND TYPE BUDGETFUND 
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 ofaccounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities ofthe current period. Revenues that are accrued include primarily State appropriations and Federal grants and entitlements. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgements which are recognized when the obligations are expected to be liquidated with expendable available financial resources. 
Contractual obligations for 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 ofcontracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in confonnity with accounting practices prescribed or pennitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording ofencumbrances as a reservation offund balance. Further, revenue recognition for 
- 8- 
 
 STATE son, AND WATER CONSERVATION COMMISSION 
NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT "E" 
 
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND 
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 pennitted by statutes and regulations ofthe State ofGeorgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures. 
BUDGET  Appropriation allotments to the State Soil and Water Conservation Commission are on the basis ofa budget 
submitted by the Commission and approved by the Legislature and the Governor. The budget is adopted on a basis consistent with accounting practices prescribed or pennitted by statutes and regulations of the State ofGeorgia and is compiled in the same manner as all State departments. Expenditures are classified by budget unit object classes as provided in Act No. 1208 of Georgia Laws 1994 (as approved April 18, 1994) and amended by Act No. 6 of Georgia Laws 1995 (as approved February 22, 1995), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1994-1995. 
Overexpenditure of a budget unit object class, except for the "common object classes", included in the Commission's final amended budget is in violation of Section 80 of the 1994-1995 Amended Appropriations Act. Expenditures ofno more than 102% of the stated amount for each common object class are authorized by Section 80. However, the total expenditure for the group of common object classes may not exceed the sum of the stated amounts for the separate object classes of the group. The common object classes include Personal Services, Regular Operating Expenses, Travel, Motor Vehicle Purchases, Equipment, Computer Charges, Real Estate Rentals, Telecommunications and Postage. 
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of currency on hand. 
INVENTORIES No inventories ofsupplies 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 briefdescription ofthe reserve reflected in the accompanying financial statements: 
 
-9- 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT"E" 
 
NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
RESERVED FUND BALANCE 
FEDERAL FINANCIAL ASSISTANCE The residual portion ofFederal financial assistance revenues not yet expended or encumbered. This amount is restricted for expenditure in future years. This accounting treatment differs from generally accepted accounting principles in that the unearned portion of Federal financial assistance should be reflected as deferred revenue. 
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is remitted to the Office ofTreasury and Fiscal Services in the subsequent fiscal year as surplus. This amount ofunexpended general appropriations is available to the State for reappropriation in subsequent years. 
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 offunds 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 Balance Sheet (Statutory Basis) are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding of the changes in the Commission's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Commission's financial position and operations or would cause the statements to be unduly complex and difficult to understand. 
 
- IO - 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXIilBIT "E" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS 
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, certificates of indebtedness, notes, or other direct obligations ofthe United States or ofthe State ofGeorgia. 
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities ofthe State of Georgia. 
(3) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose. 
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia. 
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation. 
As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia the option of exempting demand deposits from the collateral requirements. 
CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as ofJune 30, 1995, are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk. 
Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Commission or by its agent in the Commission's name. 
Category 2 - Amounts collateralized with securities (at market value) held by the pledging financial institution's trust department or agent in the Commission's name. 
- 11 - 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE30 1995 
 
EXIIlBIT "E" 
 
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS 
 
CATEGORIZATION OF DEPOSITS Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution or by its trust department or agent, but not in the Commission's name, and amounts uncollateralized. 
 
Cash Deposits 
 
Canying Amount 
 
Bank Balances 
43 672 29 
 
Risk Categories 2 
 
4367922 S 
 
ooo s___o.,.oo.,. 
 
NOTE 3: OPERATING LEASES 
 
The State Soil and Water Conservation 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 of the original term of the lease, the Commission has the option of renewing the lease on a year-to-year basis. Future minimum commitments for operating leases as of June 30, 1995, 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 
 
1996 
 
$ 80 388 00 
 
Expenditures for rental of real property and equipment under operating leases for the year ended June 30, 1995, totaled $80,628.42. 
 
NOTE 4: INSTALLMENT PURCHASE COMMITMENTS 
 
The State Soil and Water Conservation Commission acquires certain property and equipment through multiyear installment purchases with varying terms and options. The majority of these agreements contain fiscal funding clauses in accordance with O.C.G.A. 50-5-64 which prohibits the creation ofa debt to the State of Georgia for the payment of any sums under such agreements beyond the fiscal year of execution if appropriated funds are not available. If renewal of such agreements is reasonably assured, however, installment purchases requiring appropriation by the General Assembly of Georgia are considered noncancellable for financial reporting purposes. 
 
At June 30, 1995, future minimum commitments under installment purchases for equipment are as follows: 
 
- 12 - 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXIIlBIT "E" 
 
NOTE 4: INSTALLMENT PURCHASE COMMITMENTS 
 
Fiscal Year Ending June 30 
 
1996 
 
$ 
 
940.00 
 
Less: Amounts Representing Interest 
 
30.96 
 
Present Value of Future Minimum Commitments 
 
NOTE 5: CHANGES IN GENERAL FIXED ASSETS 
 
In accordance with the statutory definition of moveable personal property as defined in Official Code of Georgia Annotated Section 50-16-161, only those items with an acquisition cost of$1,000.00 or greater are reflected in the General Fixed Assets Account Group. 
 
The following is a summary of changes of equipment in the General Fixed Assets Account Group during the fiscal year: 
 
Balance July 1, 1994 
 
$ 168,409.21 
 
Additions Deductions 
 
32,355.14 15 956.04 
 
Balance June 30, 1995 
 
$ 184 808 31 
 
NOTE 6: GENERAL LONG-TERM DEBT 
 
CHANGES IN GENERAL LONG-TERM DEBT A summary of changes in General Long-Term Debt for the year ended June 30, 1995, follows: 
 
Compensated Absences 
 
Installment Purchase 
Commitments 
 
Total 
 
Balance July 1, 1994 
 
$ 69,959.79 $ 3,360.43 $ 73,320.22 
 
Additions Annual Leave Earned and Utilized (Net) 
Salaries Salary Related Fringe Benefits 
Deductions 
 
1,509.48 115.47 
 
2 451.39 
 
1,509.48 115.47 
2 451.39 
 
Balance June 30, 1995 
 
$ 71 584 74 $ 
 
90904 $ 72 493 78 
 
- 13 - 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXIIlBIT "E" 
 
NOTE 7: RISK MANAGEMENT 
Public Entity Risk Pool 
The State Personnel Board, Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units ofgovernment ofthe State ofGeorgia and units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units ofgovernment participating in the plan, and appropriations made by the General Assembly ofGeorgia. The State Personnel Board, Merit System ofPersonnel Administration has contracted with Blue Cross Blue Shield ofGeorgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board. 
Other Risk Management 
The Department ofAdministrative Services (DOAS) has the responsibility for the State ofGeorgia ofmaking and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS services claims for risk of loss to which the State is exposed, including general liability, property and casualty, workers' compensation, unemployment compensation, and law enforcement officers' indemnification. Limited amounts of commercial insurance is purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Commission is part of the State ofGeorgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment. 
NOTE 8: DEFERRED COMPENSATION PLAN 
The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees ofthe State ofGeorgia and county health departments, permits such employees to defer a portion oftheir salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property or rights of the State of Georgia subject only to the claims of the State's general creditors. Participant's rights under the plan are equal to those of a general creditor of the State of Georgia in an amount equal to the fair market value of the deferred account of each participant. Financial information relative to the plan is presented in the financial report ofthe State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1995. 
 
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 STATE SOIL AND WATER CONSERVATION COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT"E" 
 
NOTE9: RETIREMENTPLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Piao Description The State Soil and Water Conservation Commission participates in the Employees' Retirement System of Georgia ("ERS"), a single-employer, defined benefit plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees ofthe State of Georgia. The Commission's payroll for the year ended June 30, 1995, for employees covered by ERS was $691,393.22. The Commission's total payroll for all employees was $717,852.89. 
Benefits The benefit structure of ERS was significantly modified on July 1, 1982. Unless elected otherwise, an employee who currently maintains membership with ERS based upon State employment that started prior to July 1, 1982, is an "old plan" member subject to the plan provisions in effect prior to July 1, 1982. All other members are "new plan" members subject to the modified plan provisions. 
Members become vested after 10 years of creditable service. A member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 65. Retirement benefits paid to members are based upon a formula which considers the monthly average of the member's highest eight consecutive calendar quarters of salary, the number of years of creditable service, and the member's age at retirement. Postretirement cost-of-living adjustments are also made to member's benefits. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension at reduced rates to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless ofage. 
Contributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% ofannual compensation and 4. 75% of annual compensation paid by the Commission on behalfofthe employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Commission also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1995, the ERS employer contribution rate for the Commission amounted to 14.96% of covered payroll and included the 4.75% contributed on behalf of the employee referred to above. Contributions are also made on amounts paid for accumulated leave of retiring employees. 
Total contributions to the plan made during fiscal year 1995 amounted to $115,864.46, of which $107,221.55 was made by the Commission and $8,642.91 was made by employees. These contributions met the requirements of the plan. 
 
- 15 - 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION NOTES TO TIIEFINANCIAL STATEMENTS JUNE 30 1995 
 
EXJilBIT "E" 
 
NOTE9: RETIREMENTPLANS 
 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
 
Funding Status and Progress Pension Benefit Obligation 
The amount shown as the "pension benefit obligation" is a standardized disclosure measure of the present value ofpension benefits, adjusted for the effects ofprojected salary increases and step-rate benefits, estimated to be payable in the future as a result ofemployee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due and make comparisons among employers. The measure is the actuarial present value of credited projected benefits, and is independent of the funding method used to determine contributions to the plan. 
 
The pension benefit obligation was computed as part ofan actuarial valuation performed as ofJune 30, 1994. Significant actuarial assumptions used in the valuation include the following: 
 
1} The present value offuture pension benefits paid was computed using a discounted rate of7.5 percent. This rate is also the same rate assumed to be earned on investments in the plan in future years. 
 
2) Future pension payments reflect the following assumed salary increases as a result ofinflation and merit increases: 
 
A&l 
 
Percentage 
 
20 
 
9.5% 
 
25 
 
8.5% 
 
30 
 
6.5% 
 
35 
 
6.0% 
 
40 to 65 
 
5.7% 
 
3) ERS has the authority to grant cost-of-living adjustments by state statute. As of June 30, 1994, cost-ofliving adjustments have been included in the pension benefit obligation. 
 
The total unfunded pension benefit obligation ofERS as ofJune 30, 1994, was $310,149,000, as follows: 
 
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 STATE SOIL AND WATER CONSERVATION COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT "E" 
 
NOTE9: RETIREMENTPLANS 
 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
 
Funding Status and Progress Pension Benefit Obligation 
 
Pension Benefit Obligation: 
 
Retirees and Beneficiaries Currently Receiving Benefits and Tenninated Employees Entitled to Benefits but Not Yet Receiving Benefits 
 
$ 2,227,653,000 
 
Current Employees 
 
Accumulated Contributions 
 
648,516,000 
 
Employer-Financed Vested 
 
1,085,190,000 
 
Employer-Financed Nonvested 
 
1206805 000 
 
Total Pension Benefit Obligation 
 
$5,168,164,000 
 
Net Assets Available for Benefits 
 
4 858 015 000 
 
Unfunded Pension Benefit Obligation 
 
$ 3)0 149 000 
 
The measurement ofthe total pension benefit obligation is based on an actuarial valuation as of June 30, 1994. Net assets available for benefits were valued as of the same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers. 
 
Funding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date. 
 
Total contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Commission's contribution was actuarially determined and represented 0.04% of total contributions made by all participating employers. 
 
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 STATE son, AND WATER CONSERVATION COMMISSION 
NOTES TO THE FINANCIAL STATEMENTS 
JUNE 30 1995 
 
EXIIlBIT "E" 
 
NOTE9: RETIREMENTPLANS 
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 
Funding Status and Progress Funding Policy 
Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation. 
Trend Information Historical trend infonnation is presented in the financial report ofERS for the year ended June 30, 1995. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. 
GEORGIA DEFINED CONTRIBUTION PLAN 
Plan Description The State Soil and Water Conservation Commission participates in the Georgia Defined Contribution Plan ("GDCP") which is a single-employer defined contribution plan established by the Georgia General Assembly in July 1993 for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and part-time and are not members ofa public retirement or pension system. GDCP is administered by the Employees' Retirement System Board of Trustees. The Commission's payroll for the year ended June 30, 1995, for employees covered by GDCP was $1,183.00. The Commission's total payroll for all employees was $717,852.89. 
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board. If a member has less than $ 3,500 credit to his/her account, the Board has the option of requiring a lump sum distribution to the member 
in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary. 
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board. Upon termination ofemployment, the amount of the member's account is refundable upon request by the member. 
Total contributions made by employees during fiscal year 1995 amounted to $88.73 which represents 7.50"/o of covered payroll. These contributions met the requirements of the plan. 
 
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 STATE SOIL AND WATER CONSERVATION COMMISSION NOTES TO THE FINANCIAL STATEMENTS JUNE 30 1995 
 
EXHIBIT "E" 
 
NOTE 10: 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 tennination of employment. 
Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employees' length ofcontinuous State service with a maximum accumulation of forty five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. See Note 1 - Compensated Absences. 
Certain employees who retire with one hundred and twenty days or more offorfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia. 
NOTE 11: CONTINGENCIES 
Amounts received or receivable from granter agencies are subject to audit and adjustment by granter agencies. This could result in refunds to the granter agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the granter cannot be determined at this time although the Commission expects such amounts, ifany, to be immaterial to its overall financial position. 
Litigation, claims and assessments filed against the State Soil and Water Conservation 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 selfinsurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1995. 
NOTE 12: BONDING INFORMATION 
The Executive Director and all employees ofthe State Soil and Water Conservation Commission are bonded under a Public Employees Blanket Bond written by Employers Insurance of Wausau, their Bond No. 1450-00110723, on which the premium was paid to October 1, 1995. 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. The Faithful Performance of Duty Coverage insures the Commission to a maximum of$1,000,000.00 against loss sustained from failure of its employees to perform faithfully !,lieir duties or to account properly for all monies and property received by virtue oftheir position or employment. 
All employees ofthe State Soil and Water Conservation Commission are also bonded under Commercial Crime Policies written by the United States Fire Insurance Company, their Policy Nos. 626 012292 6 and 626 012294 4, on which premiums were paid to October I, 1995. Under these additional public employee dishonesty coverages, the policies insure the Commission to a maximum of$9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. 
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 (fT 
7) vi 0/ Q_ 
 
 SUPPLEMENTARY INFORMATION -21  
 
 STATE SOIL AND WATER CONSERVATION COMMISSION SCHEDULE OF APPROVED BUDGET YEAR ENDED JUNE 30 1995 
 
SCHEDULE "1  
 
FUNQS 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 County Conservation Grants 
 
ORIGINAL APPROPRIATION 
 
BUDGET ADJUSTMENTS 
 
TOTAL 
 
$ 
 
1,926,187.00 
 
$ 1,926,187.00 
 
562,656.00 $ 
 
-186,911.00 
 
375,745.00 
 
6,200.00 
 
6 200.00 
 
$ 
 
2,488,843.00 $ 
 
-180,711.00 $ 2,308,132.00 
 
$ 
 
1,015,079.00 $ 
 
-3,596.00 $ 1,011,483.00 
 
233,414.00 
 
92,299.00 
 
325,713.00 
 
40,520.00 
 
40,520.00 
 
24,000.00 
 
14,200.00 
 
38,200.00 
 
12,115.00 
 
12,115.00 
 
7,500.00 
 
4,339.00 
 
11,839.00 
 
78,865.00 
 
78,865.00 
 
22,000.00 
 
22,000.00 
 
631,350.00 
 
-279,953.00 
 
351,397.00 
 
424,000.00 
 
-8,000.00 
 
416,000.00 
 
$ 
 
2,488,843.00 $ 
 
-180711.00 $ 2,308,132.00 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-22- 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION CASH AND CASH EOUNALENTS JUNE 30 1995 
 
SCHEDULE "2" 
 
Cash on Hand 
 
$====30.0...0. =0 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-23- 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION SCHEDULE OF FEDERAL REVENUES YEAR ENDED JUNE 30 1995 
 
PROGRAM 
Agriculture, U.S. Department of Conservation Reserve Program Direct 
Energy, U. S. Department of State Energy Conservation Through Office of the Governor 
Environmental Protection Agency, U. S. Water Quality Management Planning Through Department of Natural Resources 
Interior, U. S. Department of Fish and WIidiife Service Direct 
 
CFDA NUMBER 
10.069 81.041 66.454 
NIA 
 
SCHEDULE "3" 
AMOUNT $ 11,289.84 
95,020.95 214,980.39 
14,146.77 $ 335,437.95 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-24- 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION SCHEDULE OF OTHER OPERATING EXPENSES YEAR ENDED JUNE 30 1995 
 
SCHEDULE "4" 
 
REGULAR OPERATING EXPENSES Bank Charges Legal Advertising Registration Fees Subscriptions and Dues 
COMPUTER CHARGES Regis1ration Fees 
Subscriptions and Dues 
 
$ 
 
201.67 
 
2,026.05 
 
1,228.44 
 
895.00 
 
$ 
 
4.351.16 
 
$ 
 
580.00 
 
190.00 
 
$ 
 
770.00 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-25- 
 
 STATE SOIL AND WATER CONSERVATION COMMISSION RECONCILIATION OF TRAVEL YEAR ENDED JUNE 30 1995 
 
SCHEDULE 5 
 
Total per Annual Supplement 
 
Adjustments Bennett, Coleman, Dillard, Feddo, GHmer, Hopper, Jenkins, Jenkins, Joyner, Liles, Reeves, Shahlaee, Short, Slaughter, Smith, White, 
 
WilliamD. Wyukia E. Suzanne P. Arlene M. WilliamK. Dennis E. Albert E., Jr. Yeshelle M. ThomasL. F. Graham, Jr. MichaelR. Abdolkarim Edna K. Suzanne E. JefferyE. WdliamE. 
 
Total per Report 
 
$ 
 
35,080.27 
 
8.50 -10.00 -21.00 
-28.50 -26.40 -79.00 -100.20 -35.11 -02.93 -222.13 -56.16 -122.37 -13.00 -11.28 -9.62 -185.38 
 
$ 
 
34 048.69 
 
See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. 
-26-