Review report, state of Georgia, Georgia Sports Hall of Fame Board, year ended June 30, 1997

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REVIEW REPORT STATE OF GEORGIA GEORGIA SPORTS HALL OF FAME BOARD 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 BOARD - TABLE OF CONTENTS -

INDEPENDENT ACCOUNTANTS COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

EXHIBITS

FINANCIAL STATEMENTS

A COMBINED BALANCE SHEET (STATUTORY BASIS)

ALL FUND TYPES AND ACCOUNT GROUP

2

B STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE

FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND

3

C NOTES TO THE FINANCIAL STATEMENTS

4

SUPPLEMENTARY INFORMATION

SCHEDULES

CASH AND CASH EQUIVALENTS

12

2 INVESTMENTS

13

CLAUDE L. VleKERS
STATE AUDlroR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
August 14, 1997

Honorable Zell Miller, Governor Members of the General Assembly of Georgia
and Members of the Georgia Sports Hall of Fame Board
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMAnON
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through C) of the Georgia Sports Hall of Fame Board 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 fmancial statements is the representation of the management of the Georgia Sports Hall of Fame Board.
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 fmancial statements in order for them to be in conformity with the basis of accounting described in Note 1. The accompanying supplementary information (Schedules 1 and 2)

97ARL-4

is presented only for supplementary analysis purposes. Such infonnation has been subjected to the inquiries and analytical procedures applied in the review of the financial statements and we are not aware of any material modifications that should be made thereto.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:jy 97ARL-4

FINANCIAL STATEMENTS - 1-

GEORGIA SPORTS HALL OF FAME BOARD COMBINED BALANCE SHEET (STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1997

EXHIBIT "A"

ASSETS
Cash and Cash Equivalents (See Schedule)
Investments (See Schedule)
Interest Receivable
Prepaid Items
Fixed Assets Equipment

FIDUCIARY FUND TYPE EXPENDABLE
TRUST

ACCOUNT GROUP GENERAL FIXED ASSETS

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

$

53,065.79

145,420.13 1,222.57 630.00

$

$

53,065.79 $

35,579.77

145,420.13 1,222.57 630.00

145,621.00 6,927.77 615.00

61,537.84

61,537.84

77,988.35

Total Assets

$

200,338.49 $

61,537.84 $

261,876.33 $

266,731.89

FUND EQUITY
Investment in General Fixed Assets Fund Balances
Unreserved Undesignated

$ $ _--=2:=,00::..!.,3:::.=3::::8.:.;:.4.:::.9

Total Fund Equity

$

200,338.49 $

61,537.84 $

61,537.84 $

77,988.35

200,338.49

188,743.54

61,537.84 $

261,876.33 $

266,731.89

See Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
The notes to the financial statements are an integral part of this statement.
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GEORGIA SPORTS HALL OF FAME BOARD STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1997

EXHIBIT"B"

REVENUES
Contract Georgia Department of Community Affairs
Interest Income Registration Fees Sale of Memorabilia Sponsorship Dues
Total Revenues
EXPENDITURES
PERSONAL SERVICES Salaries and Wages Employer's Contribution for: F.I.CA
REGULAR OPERATING EXPENSES Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Publications and Printing Other Operating Expenses Association Dues Bank Service Charges Banquet Expenditures Induction Expenditures Tournament Expenditures
TRAVEL
EQUIPMENT Equipment Purchases
REAL ESTATE RENTALS
TELECOMMUNICATIONS
PER DIEM, FEES AND CONTRACTS Per Diem and Fees
Total Expenditures
Excess of Revenues over Expenditures
FUND BALANCE JULY 1, 1996
FUND BALANCE JUNE 30,1997
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-

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

$

25,000.00 $

50,000.00

9,527.26

7,335.33

65,815.92

94,244.05

1,340.00

1,200.00

38,650,00

61,113.74

$

140,333.18 $

213,893.12

$

17,250.00 $

15,232.25

1,319.59

1,453.50

$

18,569.59 $

16,685.75

$

7,847.98 $

7,235.99

416.90

0.00

264.75

252.00

1,646.00

1,604.00

4,585.29

2,600.00

4,450.00 22.12
1,129.44 49,432.30 23,364.34

3,245.00 134.37 100.00
53,341.22 60,316.53

$

93,159.12 $

128,829.11

$

99.57 $

396.69

$

1.189.39 $

601.12

$

7,380.00 $

7,380.00

$

3,354.18 $

3,514.77

$

4,986.38 $

6,392.59

$

128,738.23 $

163,800.03

$

11,594.95 $

50,093.09

188,743.54

138,650.45

$

200,338.49 $ _--:.1,;;;;88::.?:.;;4;;;;3;,;;:.54;;;"

GEORG~SPORTSHALLOFFAMEBOARD
NOTES TO THE FINANC~STATEMENTS JUNE 3D. 1997

EXHIBIT"C"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Georgia Sports Hall ofFame Board, an organizational unit ofthe State ofGeorgia, is part ofthe executive branch ofthe government ofthe State of Georgia. The Board was created in 1978 by an act of the General Assembly ofGeorgia for the purpose ofhonoring those who by achievement or service have made outstanding and lasting contributions to sports and athletics in Georgia and elsewhere. The Board consists offifteen (15) members as follows: nine (9) members appointed by the Governor; three (3) members appointed by the Lieutenant Governor, and three (3) members appointed by the Speaker ofthe House ofRepresentatives. The Georgia Sports Hall of Fame Board 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 defmed in Section 2100 of the Governmental Accounting Standards Board Codification ofGovernmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING The Georgia Sports Hall of Fame Board uses a fund and an account group to report on its financial position and the results of its operations determined in confonnity 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 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. The fund and account group presented in the accompanying fmancial statements are as follows:
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 GROUP
GENERAL FIXED ASSETS - The account group used to account for fixed assets used in the operations of the Georgia Sports Hall of Fame Board. Fixed assets purchased are recorded at cost or at estimated historical cost if historical cost is not practically detenninable. 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 of accounting for general fixed assets differs from generally accepted accounting principles in that fixed assets utilized in the operations of an expendable trust fund should be recorded as assets of such a fund, rather than in the General Fixed Assets Account Group.

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

EXHIBIT"C"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
ACCOUNT GROUP
GENERAL FIXED ASSETS 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.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. 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.
FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND
Revenues and expenditures of Expendable Trust Funds 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 ofthe current period. Revenues that are accrued include primarily interest income and certain amounts earned under terms 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 Board was not prepared by the Board, therefore, these financial operations represent nonbudgeted financial activities.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of demand deposits with banks.
INVESTMENTS Investments are defined as those fmancial instruments with terms in excess of three months from the date of purchase. Investments are stated at cost.

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

EXHlBIT"C"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES No inventories of supplies are reported in these financial statements. Expendable supplies are recorded as expenditures at the time of purchase.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" because they do not represent consolidated financial infonnation and are presented only to facilitate financial analysis. The columns do not present infonnation 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 the accompanying financial statements in order to provide an understanding of the changes in the Board's financial position and operations. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation.
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 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 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.

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

EXHffiIT"C"

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 Board or by its agent in the Board's name.

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

Cash Deposits

Carrying Amount

Bank Balances

Risk Categories

2

3

$ 198,485,92 $ ZOO 885.31 $ ZOO 885.31 $

o 00 $,==~o~.o~o

NOTE 3: OPERATING LEASES

The Georgia Sports Hall of Fame Board has entered into an agreement to lease real property which is classified as an operating lease. Future minimum commitments for this operating lease as of June 30, 1997, are listed below. Amounts are included only for multi-year leases and for cancelable leases for which an option to renew for the subsequent fiscal year has been exercised.

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

EXHIBIT"C"

NOTE 3: OPERATING LEASES

Fiscal Year Ending June 30

1998

$ 7.560.00

Expenditures for rental of real property and equipment under operating leases for the year ended June 30, 1997, totaled $7,644.75.

NOTE 4: CHANGES IN GENERAL FIXED ASSETS

The following is a summary of changes of equipment in the General Fixed Assets Account Group during the fiscal year:

Balance July I, 1996

$ 77,988.35

Additions Deductions

1,189.39 17,639.90

Balance June 30, 1997

$ 61.537.84

NOTE 5: RISK MANAGEMENT

The Department ofAdministrative Services (DOAS) has the responsibility for the State of Georgia of making and carrying out decisions that will minimize the adverse effects of accidental losses that involve State government assets. The State believes it is more economical to manage its risks internally and set aside assets for claim settlement. Accordingly, DOAS 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 Georgia Sports Hall of Fame Board 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 6: DEFERRED COMPENSATION PLAN

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

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

EXHIBIT"C"

NOTE 6: DEFERRED COMPENSATION PLAN
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 ofthe State of Georgia 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 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 7: CONTINGENCrnS
Litigation, claims and assessments filed against the Georgia Sports Hall of Fame Board, 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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THIS PAGE LErr BLANK

SUPPLEMENTARY INFORMAnON - 11 -

GEORGIA SPORTS HALL OF FAME BOARD CASH AND CASH EQUIVALENTS JUNE 30, 1997
NONINTEREST BEARING ACCOUNTS NationsBank of Georgia, N,A, Atlanta, Georgia
INTEREST BEARING ACCOUNT NationsBank of Georgia, N.A, Atlanta, Georgia

SCHEDULE "1"

$

41,117,55

11,948.24 $==5=3=,0=6=5..7...=9

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

See notes to the financial statements.

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