Review report, Georgia Sports Hall of Fame Authority, a component unit of the state of Georgia, year ended June 30, 1997

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REVIEW REPORT GEORGIA SPORTS HALt OF FAME AUTHORITY
ACON.WONENT~TOFTHE
STATE OF GEORGIA YEAR ENDED JUNE 30, 1997
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

GEORGIA SPORTS HALL OF FAME AUTHORITY - TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUPS

2

B COMBINED STATEMENT OF CHANGES IN FUND BALANCE

(STATUTORY BASIS)

ALL FUND TYPES

5

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

6

D STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

8

E STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND

~,,-"'

CENTURY CLUB FUND

9

F NOTES TO THE FINANCIAL STATEMENTS

10

SUPPLEMENTARY INFORMATION

SCHEDULES

1 SCHEDULE OF APPROVED BUDGET

22

2 CASH AND CASH EQUIVALENTS

23

3 SCHEDULE OF OTHER OPERATING EXPENSES

24

4 RECONCILIATION OF SALARIES AND TRAVEL

25

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
December 18, 1997

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Board of Directors ofthe Georgia Sports Hall of Fame Authority
and Honorable Bobby W. Callaway, Interim Executive Director Georgia Sports Hall of Fame Authority
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying fmancial statements (Exhibits A through F) of the Georgia Sports Hall of Fame Authority as of and for the year ended June 30, 1997, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of the Georgia Sports Hall of Fame Authority.
A review consists principally of inquiries of agency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1.
Our review was made for the purpose of expressing limited assurance that there were no material modifications that should be made to the financial statements in order for them to be in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Schedules 1 through

97ARL-4

4) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review of the financial statements and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,

CLV:gp 97ARL-4

Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

GEORGIA SPORTS HALL OF FAME AUTHORITY COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30,1997

ASSETS Cash and Cash Equivalents
(See Schedule) Accounts Receivable
Other Fixed Assets
Equipment Amount to be Provided for Payment of
Accrued Compensated Absences
Total Assets

GOVERNMENTAL FUND TYPE BUDGET

FIDUCIARY . FUND TYPE
EXPENDABLE TRUST

$

87,027.62

$

168,540.41

$

168,540.41 $===87=,=02=7=.6=2

LIABILITIES AND FUND EQUITY
Liabilities Cash Overdraft (See Schedule) Accounts Payable Contracts Payable Payroll Withholdings Compensated Absences
Total Liabilities
Fund Equity Investment in General Fixed Assets Fund Balances Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

103,068.14

0.00

6,600.00

1,817.79

$

111,485.93

$

57,054.48 $

87,027.62

$

57,054.48 $

87,027.62

$

168,540.41 $ ===87='0=2=7=.6=2

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
-2-

EXHIBIT"A"

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS (Memorandum Only) JUNE 30,1997 JUNE 30, 1996

$

87,027.62 $

168,540.41

$

11,646.00

11,646.00

_ _ _ _ _ $ _ _.....;6;;,.l.,;,3~0;.;:;.9;.;....7.=..6

6,309.76

1,000.74 73,158.23
7,598.00 3,187.75

$

11,646.00 $

6,309.76 $ 273,523.79 $ ==84===,9=44=.=72=

$ $

$

11,646.00

$

11,646.00

$
6,309.76 6,309.76 $

103,068.14 $ 0.00
6,600.00 1,817.79 6,309.76
117,795.69 $

$

11,646.00 $

144,082.10 $ 155,728.10 $

43,926.59 2,346.96 19,800.00 0.00 3,187.75
69,261.30
7,598.00
8,085.42
15,683.42

$

11,646.00 $

6,309.76 $ 273,523.79 $ ==84===,9=44=.=72=

-3-

THIS PAGE LEFT BLANK

GEORGIA SPORTS HALL OF FAME AUTHORITY COMBINED STATEMENT OF CHANGES IN FUND BALANCE (STATUTORY BASIS)
ALL FUND TYPES YEAR ENDED JUNE 30.1997

EXHIBIT"B"

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement. -5-

GEORGIA SPORTS HALL OF FAME AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30.1997

EXHIBIT"C"

FUNDS AVAILABLE
REVENUES
OTHER REVENUES RETAINED Contract Department of Community Affairs
CARRY-OVER FROM PRIOR YEAR
Transfer from Unreserved Fund Balance

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$

281,541.00 $

126,790.00

7,084.68

44,015.36

Total Funds Available

$

288,625.68 $

1.7.0.;;,:,.,8.0.-;5,;,;;.3.6.

EXPENDITURES
PERSONAL SERVICES
Salaries and Wages Employers Contributions for:
F.I.CA Retirement Health rnsurance Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance
REGULAR OPERATING EXPENSES
Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Other Operating Expenses (See Schedule) Publications and Printing Equipment Purchases
TRAVEL

$

114,491.75 $

8,293.74 17,906.49 14,311.45
300.00 50.00
204.00

$

155,557.43 $

$

11,145.67 $

337.16

170.95

813.50

3,609.25

9,277.30

794.70

$

26,148.53 $

$

3,076.86 $

See Independent Accountant'~ Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement. -6-

68,009.75
4,999.08 10,506.44
8,501.30 161.00 8.00 105.00
92,290.57
1,039.44 0.00
839.50 2,177.00 1,639.02 1,043.75 4,350.20
11,088.91
3,543.77

GEORGIA SPORTS HALL OF FAME AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30.1997

EXHIBIT"C"

$ 288,625.68 $ ====1==70=..,8=0=5,;;;,,3==6
See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information. The notes to the financial statements are an integral part of this statement.
-7-

GEORGIA SPORTS HALL OF FAME AUTHORITY STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30.1997

EXHIBIT"D"

EXPENDITURES Personal Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts
Excess of Funds Available over Expenditures

$ 281,541.00 $ 288,625.68 $

7-:.,0~8;,..;4.;.;;.6...;...8

$

140,861.00 $

155,557.43 $

24,180.00

26,148.53

20,000.00

3,076.86

3,000.00

5.069.70

10,000.00

1,878.49

11,000.00

0.00

2,500.00

2,260.20

70,000.00

37,579.99

-14,696.43 -1,968.53 16,923.14 -2,069.70 8,121.51 11,000.00 239.80 32,420.01

$

281,541.00 $

231,571.20 $ _ _-,-49-:.,9~6~9.;.;;.8..:..0

$

57,054.48 $ ==~57i=l.,0=5=4=.4=8

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement. - 8-

GEORGIA SPORTS HALL OF FAME AUTHORITY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND CENTURY CLUB FUND
YEAR ENDED JUNE 30, 1997

EXHIBIT"E"

REVENUES Contributions Interest Income Sales Total Revenues
EXPENDITURES Bank Charges Postage Publications and Printing Supplies and Materials Total Expenditures
Excess of Revenues over Expenditures FUND BALANCE JULY 1, 1996
FUND BALANCE JUNE 30, 1997

TOTALS YEAR ENDED JUNE 30,1997 JUNE 30,1996

$

99,396.00 $

826.91

45.00

$ 100,267.91 $

1,000.00 0.74 0,00
1,000.74

$

112.65 $

2,428.56

8,064.45

3,635.37

$

14,241.03 $

$

86,026.88 $

1,000.74

0,00 0.00 0.00 0.00
0.00
1,000.74
0.00

$

87,027.62 $===1,=,=,0=0=0..7..=4

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement. - 9-

GEORGIA SPORTS HALL OF FAME AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30,1997

EXHffiIT"F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Georgia Sports Hall of Fame Authority is an instrumentality of the State of Georgia and a public corporation. The Board of the Authority consists of thirteen (13) members, two are appointed by the President ofthe Senate, two are appointed by the Speaker ofthe House ofRepresentatives, three are members of the Georgia Sports Hall of Fame Board, and six are appointed by the Governor. The Authority is duly authorized by law to construct, operate and manage a facility to house the Georgia Sports Hall of Fame. The Authority may also make and enter into contracts, leases and all other instruments necessary and convenient with respect to the use and operation of the projected facility and to issue bonds and receive loans, gifts or grants from the United States government or any agency or instrumentality thereof.
The Georgia Sports Hall of Fame Authority is considered a component unit of the State of Georgia and is included within the State of Georgia reporting entity for financial reporting purposes because of the significance of its legal, operational and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING The Georgia Sports Hall of Fame Authority uses funds and account groups to report on its financial position and the results of its operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia. 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 fmance-related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPE
BUDGET FUND - The fund used to account for activities and functions as set forth in the operating budget approved by the Georgia Sports Hall ofFame Authority. This presentation differs from generally accepted accounting principles in that such principles provide that the Budget Fund ofthe Authority be accounted for as a Proprietary Fund Type - Enterprise Fund. An Enterprise Fund is used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent is that costs ofproviding goods or services to the general public on a continuing basis are financed or recovered primarily through user charges or that periodic measurement of revenues earned and expenses incurred are appropriate for capital maintenance, public policy, accountability and other purposes.

- 10-

GEORGIA SPORTS HALL OF FAME AUTHORITY NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT "F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
FIDUCIARY FUND TYPE
EXPENDABLE TRUST FUND - The fund used to account for assets, revenues and expenditures utilized in accordance with the provisions of various trusts established by individual agreement, statute or administrative action. Expendable trust funds are used when both the principal and revenues earned on such principal may be expended for the purposes designated by the trust.
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. This methodology ofaccounting for general fixed assets differs from generally accepted accounting principles in that the Budget Fund of the Authority should be accounted for as a Proprietary Fund Type Enterprise Fund. Fixed assets utilized in the operations of proprietary fund types should be recorded as assets of such funds, rather than in the General Fixed Assets Account Group. The depreciation of such fixed assets should be recorded as an expense of proprietary fund types in order to more effectively determine the total cost of providing goods and services.
The costs of normal maintenance and repairs that do not add to the value of assets 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 assets are included in the General Fixed Assets Account Group.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments and compensated absences, which will be paid from future resources. This presentation differs from generally accepted accounting principles in that the Budget Fund ofthe Authority should be reflected as a Proprietary Fund Type - Enterprise Fund. The liabilities and related expenses for the items listed above should be recorded as a part of the proprietary fund type in order to more effectively determine the total cost of providing goods and services.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds and expendable trust funds should be accounted for using the flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure of available spendable resources.

- 11 -

GEORGIA SPORTS HALL OF FAME AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997

EXHIBIT"F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING MEASUREMENT FOCUS
Proprietary fund types, on the other hand, should be accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities are included on the balance sheet. Operating statements of these funds present increases, (Le., revenues) and decreases, (Le., expenses) in net total assets. This measurement focus emphasizes the detennination of net income. In accordance with accounting practices prescribed or pennitted by statutes and regulations ofthe State of Georgia, the Budget Fund, which should be reflected as a Proprietary Fund Type - Enterprise Fund in accordance with generally accepted accounting principles, utilizes the current fmancial resources measurement focus.
GOVERNMENTAL FUND TYPE BUDGET FUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (Le., when they are "measurable and available"). "Measurable" means the amount of the transaction can be detennined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues that are accrued include primarily certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on generallong-tenn 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 fmancial resources. The Budget Fund, which should be reflected as a Proprietary Fund Type - Enterprise Fund in accordance with generally accepted accounting principles, should be maintained on the accrual basis of accounting.
Contractual obligations for services which have not been perfonned are recognized as accounts receivables in the accompanying fmancial statements. This accounting practice is in confonnity with accounting practices prescribed or pennitted by statutes and regulations ofthe State of Georgia, but is not consistent with generally accepted accounting principles.
Contractual obligations for goods and services which have not been received at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. The recognition of encumbrances as expenditures and liabilities is in confonnity with accounting practices prescribed or pennitted by statutes and regulations of the State of Georgia, but is not consistent with generally accepted accounting principles, which do not provide for the recording of encumbrances within the Proprietary Fund Type - Enterprise Fund.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances of the Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or pennitted by statutes and regulations of the State of Georgia, but differs from generally accepted accounting principles for proprietary fund types in that immaterial adjustments should be reported as current period revenues and expenses.
- 12 -

GEORGIA SPORTS HALL OF FAME AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997

EXHIBIT"F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGET FUND
In accordance with policies of the State of Georgia, the cost of annual and sick leave is recorded when paid rather than when earned. The cost of annual leave earned but not yet paid at the end of the fiscal year is reflected in the General Long-Tenn Debt Account Group, in that such liability is not expected to be financed from expendable available fmancial resources. This practice differs from generally accepted accounting principles for proprietary fund types in that the total accrued liability for compensated absences at the end of the fiscal year should be reflected as a fund liability of the proprietary fund type involved.
FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND
Revenues and expenditures of the Expendable Trust Fund are recorded in accordance with the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues that are accrued include primarily interest income and certain amounts earned under tenns ofthe trust. Expenditures are recorded when the related fund liability is incurred.
BUDGET A budget for the financial operations of the Georgia Sports Hall of Fame Authority is approved by the Board of Directors at a selected meeting. The budget is not subject to review or approval by the Legislature of the State of Georgia and therefore, is a nonappropriated budget. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include funds on deposit with the Department of Community Affairs and demand deposits with a bank.
ACCOUNTS RECEIVABLE (OTHER) In fiscal year 1997, funds were appropriated to the Department of Community Affairs for expenses of the Georgia Sports Hall of Fame Authority. The Authority recorded an accounts receivable from the Department of Community Affairs based on a contractual agreement. Of the accounts receivable balance, $168,537.15 represents the unexecuted portion of this contract with the Department of Community Affairs.
INVENTORIES No inventories of supplies are reported in these financial statements. Expendable supplies are recorded as expenditures at the time of purchase.

- 13 -

GEORGIA SPORTS HALL OF FAME AUTHORITY NOTES TOTHE FINANCIAL STATEMENTS
JUNE 30, 1997

EXIDBIT"F"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES Compensated absences represent obligations of the Authority relating to employee's rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating annual and compensatory 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.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Statements (Statutory Basis) are captioned "Memorandum Only" because they do not represent consolidated fmancial infonnation and are presented only to facilitate financial analysis. The columns do not present infonnation that reflects financial position, results of operations or changes in financial position in confonnity 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 ofthe changes in the Authority's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding of the Authority's financial position and operations or would cause the statements to be unduly complex and difficult to understand.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS
STATE OF GEORGIA COLLATERALIZATIONSTATUTES AND POLICIES Funds of the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral anyone or more of the following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, certificates of indebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, certificates of indebtedness, notes, or other obligations of the counties or municipalities of the 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 of the bonds for this purpose.
(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.

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GEORGIA SPORTS HALL OF FAME AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997

EXHIBIT"F"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

(6) Guarantee or insurance of accounts provided by the Federal Deposit Insurance Corporation.

As authorized in the Official Code of Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State of Georgia the option of exempting demand deposits from the collateral requirements.

CATEGORIZATION OF DEPOSITS For purposes of analysis of custodial credit risk, cash deposits consist of all bank balances which include demand deposits and/or interest bearing accounts. The bank balances as of June 30, 1997, 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 Authority or by its agent in the Authority's name.

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

Category 3 - Amounts collateralized with securities (at market value) held by the pledging financial institution or by its trust department or agent, but not in the Authority's name, and amounts uncollateralized.

Cash Deposits

Carrying Amount

Bank Balances

$ 87 027 62 $ 87 027 62 $

Risk Categories

2

3

87 02762 $

o00 $'===:d0~0!,g0

The Georgia Sports Hall of Fame Authority is assigned to the Department of Community Affairs (DCA) for administrative purposes, and as such, DCA maintains accounting records, including certain deposits as reflected on Schedule "2", for the Authority. As a result, a separate disclosure for custodial credit risk for those deposits held by DCA has not been provided.

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GEORGIA SPORTS HALL OF FAME AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997

EXHIBIT"F"

NOTE 3: OPERATING LEASES

The Georgia Sports Hall of Fame Authority 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 ofthe lease, the Authority has the option of renewing the lease on a yearto-year basis. Future minimum commitments for operating leases as of June 30, 1997, 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

1998 1999

$

475.80

237.90

Total Future Minimum Commitments

$==,b:.71"","3~.7~0

Expenditures for rental of equipment under operating leases for the year ended June 30, 1997, totaled $2,840.65.

NOTE 4: CHANGES IN GENERAL FIXED ASSETS

In accordance with the statutory definition of moveable personal property as defined in Official Code of Georgia Annotated Section 50-16-161, only those items with an acquisition cost of$l,OOO.OO 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, 1996

$ 7,598.00

Additions

4,048.00

Balance June 30, 1997

$ 11,646.00

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1997, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

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GEORGIA SPORTS HALL OF FAME AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997

EXHIBIT "F"

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT Balance July 1, 1996

$ 3,187.75

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

2,900.15 221.86

Balance June 30, 1997

$ 6.309.76

NOTE 6: RISK MANAGEMENT

Public Entity Risk Pool

The State Personnel Board, Merit System of Personnel Administration administers for the State of Georgia a program ofhealth benefits for the employees ofunits of government ofthe State of Georgia, units of county government and local education agencies located within the State of Georgia. This plan is funded by participants covered in the plan, by employers' contributions paid by the various units of government participating in the plan, and appropriations made by the General Assembly of Georgia. The State Personnel Board, Merit System of Personnel Administration has contracted with Blue Cross Blue Shield of Georgia to process claims in accordance with the State Employees' Health Benefit Plan as established by the State Personnel Board.

Other Risk Management

The Department of Administrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS processes 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 are purchased applicable to property, employee and automobile liability, fidelity and certain other risks. The Authority is part of the State of Georgia 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 various state organizations by DOAS to provide claims servicing and claims payment.

NOTE 7: DEFERRED COMPENSATION PLAN

The State of Georgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees of the State of Georgia and county health departments, permits such employees to defer a portion of their salary until future years. Participation in the plan is optional. Participants choose the option or options in which they wish to participate. The deferred

- 17 -

GEORGIA SPORTS HALL OF FAME AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997

EXHIBIT "F"

NOTE 7: DEFERRED COMPENSATION PLAN
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 will be presented in the State of Georgia Comprehensive Annual Financial Report for the year ended June 30, 1997.
A change in the Internal Revenue Code Section 457, effective August 20, 1996, requires that by January 1, 1999 all existing eligible deferred compensation plans must be held in trust for the exclusive benefit of participants and their beneficiaries. The State of Georgia's plan will be converted effective July 1, 1998.
NOTE 8: RETffiEMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The Georgia Sports Hall of Fame Authority 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 of the State of Georgia.
The benefit structure ofERS is defined by State statute and 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.
Under both the old plan and new plan, members become vested after 10 years of creditable service. A member may retire and receive nonnal retirement benefits after completion of 10 years of creditable service and attainment of age 65. If 10 years of service is completed and age 60 is reached, the member may retire with a reduced benefit. Additionally, there are certain provisions allowing for retirement after 30 years of service regardless of age.
Retirement benefits paid to members are based upon a fonnula 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.
The ERS issues a financial report each fiscal year which may be obtained through ERS.
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GEORGIA SPORTS HALL OF FAME AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997

EXHIBIT"F"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Policy As established by State statute, all full-time employees of the State of Georgia and its political subdivisions, who are not members of other state retirement systems, are eligible to participate in the ERS. Both employer and employee contributions are established by State statute. The Authority's payroll for the year ended June 30, 1997, for employees covered by ERS was $114,491.75. The Authority's total payroll for all employees was $114,491.75.
Under the old plan, member contributions consist of 4% of annual compensation up to $4,200.00 and 6% of annual compensation in excess of $4,200.00. Of these member contributions, the employee pays the first 1.25% and the employer pays the remainder on behalf of the employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Authority also is required to contribute at a specified percentage of active member payroll determined annually by actuarial valuation. For the year ended June 30, 1997, the ERS employer contribution rate for the Authority amounted to 15.39% of covered payroll and included the amounts contributed on behalf of the employee under the old plan referred to above. Employer contributions are also made on amounts paid for accumulated leave to retiring employees.
Total contributions to the plan made during fiscal year 1997 amounted to $19,051.43, of which $17,620.28 was made by the Authority and $1,431.15 was made by employees. These contributions met the requirements of the plan.
Actuarial and Trend Information Actuarial and historical trend information is presented in the ERS June 30, 1997, financial report which may be obtained through ERS.
GEORGIA DEFINED CONTRIBUTION PLAN
Plan Description The Georgia Sports Hall of Fame Authority is eligible to participate in the Georgia Defined Contribution Plan ("GDCP") which is a single-employer defmed contribution plan established by the Georgia General Assembly for the purpose of providing retirement coverage for State employees who are temporary, seasonal, and parttime and are not members of a public retirement or pension system. GDCP is administered by the Employees' Retirement System Board of Trustees. The Authority did not have any employees eligible to participate in the GDCP for the year ended June 30, 1997.
NOTE 9: 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.
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GEORGIA SPORTS HALL OF FAME AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1997

EXHIBIT"F"

NOTE 9: LEAVE POLICIES
Employees earn annual leave ranging from ten to fourteen hours each month depending upon the employees' length of continuous State service with a maximum accumulation of forty five days. Employees are paid for unused accumulated annual leave upon retirement or tennination ofemployment. See Note 1 - Compensated Absences.
Certain employees who retire with one hundred and twenty days or more of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 10: CONTINGENCIES
Litigation, claims and assessments filed against the Georgia Sports Hall of Fame Authority, if any, are generally considered to be actions against the State of Georgia. 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, 1997.

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SUPPLEMENTARY INFORMATION - 21 -

GEORGIA SPORTS HALL OF FAME AUTHORITY SCHEDULE OF APPROVED BUDGET YEAR ENDED JUNE 30,1997
FUNDS AVAILABLE REVENUES
Other Revenues Retained
EXPENDITURES Personal Services Regular Operating Expenses Travel Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts

SCHEDULE "1"

TOTAL APPROVED
BUDGET

$ =====2=8:i1::l,=54=1=.0=0

$

140,861.00

24,180.00

20,000.00

3,000.00

10,000.00

11,000.00

2,500.00

70,000.00

$

281,541.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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-- ---x ==_~

_

GEORGIA SPORTS HALL OF FAME AUTHORITY CASH AND CASH EQUIVALENTS JUNE 30, 1997
NONINTEREST BEARING ACCOUNTS Funds on Deposit with Department of Community Affairs
INTEREST BEARING ACCOUNTS First Union National Bank, Macon, Georgia

SCHEDULE "2"
$ -103,068.14 87,027.62
$ =====-1;,;,:6,:=04==:0==:.5=.2

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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GEORGIA SPORTS HALL OF FAME AUTHORITY SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30, 1997
REGULAR OPERATING EXPENSES
Advertising Courier Services Film Processing Library Publication Photocopies Registration Fees SUbscriptions and Dues

SCHEDULE "3"

$

1,545.40

433,09

469.78

69.23

126,75

340,00

625,00

$

3,609.25

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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GEORGIA SPORTS HALL OF FAME AUTHORITY RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30, 1997

SCHEDULE "4"

Totals per Annual Supplement

Adjustments Burns, Henderson, Hogan, Park,

Robert Denise Leigh Medford

SALARIES

$

0.00 $

TRAVEL 0.00

20,599.50 20,599.50 16,535.75 56,757.00

463.25 254.64 882.32 1,476.65

Totals per Report

$ 114,491.75 $===3=,0=7:::::6=.8=6

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