Review report, Georgia Superior Court Clerks' Cooperative Authority, a component unit of the state of Georgia, year ended June 30, 1995

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

REVIEW REPORT GEORGIA SUPERIOR COURT CLERKS'
COOPERATIVE AUTHORITY A COMPONENT UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1995

GEORGIA SUPERIOR COURT CLERICS' COOPERATIVE AUTHORITY
- TABLE OF CONTENTS -
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
EXHIBITS
FINANCIAL STATEMENTS
A BALANCE SHEET ALL FUND TYPES
B STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUND TYPE - ENTERPRISE FUND
C STATEMENTOFCASHFLOWS PROPRIETARY FUND TYPE - ENTERPRISE FUND
D NOTES TO THE FINANCIAL STATEMENTS
SUPPLEMENTARY INFORMATION
SCHEDULES
1 CASH AND CASH EQUIVALENTS 2 INVESTMENTS 3 RECONCILIATION OF PER DIEM AND FEES

Page
2 3
5
6
16 17 18

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 22, 1996

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe Georgia Superior Court Clerks' Cooperative Authority
and Honorable David R. Williams, 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 D) of the Georgia Superior Court Clerks' Cooperative Authority 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. All information included in these financial statements is the representation of the management ofthe Georgia Superior Court Clerks' Cooperative 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 generally accepted accounting principles.
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 conformity with generally accepted accounting principles. The accompanying supplementary information (Schedules 1 through 3) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical

95ARL-4X

procedures applied in the review ofthe financial statements and we are not aware of any material modifications that should be made thereto.

CLV:dt 95ARL-4X

Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

GEORGIA SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY BALANCE SHEET ALL FUND TYPES JUNE 30, 1995

EXHIBIT"A"

ASSETS
Cash and Cash Equivalents (See Schedule)
Investments (See Schedule)
Accounts Receivable Other
Fixed Assets Equipment Less: Accumulated Depreciation
Fixed Assets (Net of Accumulated Depreciation)
Total Assets

PROPRIETARY

FUND TYPE

ENTERPRISE FUND

JUNE 30, 1995

JUNE 30, 1994

$

570 447.18 $ 600,964.66

$

699,828.29 $

0.00

$

169 845.00 $

142,878.00

$

36,270.48 $

0.00

-3 422.00

0.00

$

32,848.48 $

0.00

$

1,472,968.95 $ 743,842.66

LIABILITIES AND FUND EQUITY
Liabilities Accounts Payable Payroll Withholdings
Total Liabilities
Fund Equity Retained Earnings Un designated

$

188,581.33 $

6,587.94

634.92

0.00

$

189,216.25 $ _ _....;6'-'-,5_8..;..7.;.;..9~4

$

1,283,752.70 $ 737,254.72

Total Liabilities and Fund Equity

$

1,472,968.95 $ 743,842.66

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-

GEORGIA SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY STATEMENT OF REVENUES. EXPENSES. AND CHANGES IN RETAINED EARNINGS
PROPRIETARY FUND TYPE - ENTERPRISE FUND YEAR ENDED JUNE 30, 1995

EXHIBIT"B"

TOTALS YEAR ENDED
JUNE 30, 1995 JUNE 301 1994

OPERATING REVENUES
Search Fees Uniform Commercial Code Filing Fees
County Superior Court Clerks
Total Operating Revenues
OPERATING EXPENSES
Personal Services Salaries and Wages Employer's Contributions for: F.I.C.A. Retirement Health Insurance
Regular Operating Expenses Motor Vehicle Expenses Supplies and Materials Utilities Insurance and Bonding Other Operating Expenses Advertising Bank Service Charges Postage Publications and Printing
Travel
Equipment Equipment Purchases
Telecommunications
Per Diem, Fees and Contracts Per Diem and Fees
Uniform Commercial Code Processing Costs
Depreciation
Total Operating Expenses
Operating Income
NONOPERATING REVENUES (EXPENSES)
Interest Expense Interest Income
Total Nonoperating Revenues (Expenses)
Net Income
RETAINED EARNINGS JULY 1

$

57,850.00 $

1,588,036.25

0.00 790,439.75

$ 1,645,886.25 $ _ _7_90~,_439_.7_5

$

39,762.96$

3,715.27 5,046.48 4419.15

$

52,943.86$

$

2,488.56$

4,897.64

1,052.37

0.00

2,565.84 104.91
689.14 4,708.63

$

16,507.09$

$

413.55 $

$

1 097.49 $

$

807.78 $

$

68368.77 $

$ 976,264.27 $

$

3,422.00$

$ 1,119,824.81 $

$ 526,061.44 $

0.00
0.00 0.00 0.00
0.00
0.00 27.26
0.00 1,129.00
155.52 64.25 292.50 48.95
1 717.48
0.00
0.00
77.81
50,895.80
0.00
0.00
52,691.09
737,748.66

$

0.00 $

20,436.54

$

20,436.54 $

$ 546,497.98 $

737,254.n

-493.94 0.00
-493.94
737,254.n
0.00

RETAINED EARNINGS JUNE 30

$ 11283?52.70 $

737,254.72

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 -

I
'

GEORGIA SUPERIOR COURT CLERKS COOPERATIVE AUTHORITY STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPE ENTERPRISE FUND YEAR ENDED JUNE 30 1995

EXHIBIT"C"

CASH FLOWS FROM OPERATING ACTIVITIES
cash Received from Customers cash Paid to Vendors and Employees
Net Cssh Provided by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANQING AQTMTIES
Proceeds from Note Payable Repayment of Note Payable Payment of Interest on Note Payable
Net cash Used In Noncapital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Acquisition and Construction of capital Assets
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Investment Securities Proceeds from Sale and Maturity of Investments Interest on Investments
Net cash Used In Investing Activities
Net Increase (Decrease) in cash and cash Equivalents
CASH AND CASH EQUIVALENTS JULY 1

TOTALS

YEAR ENDED

JUNE 30, 1995

JUNE 30, 1994

$ 1,618,919.25 $ -933,774.50

$

685,144.75 $

647,561.75 -46, 103.15
601,458.60

$

0.00 $

40,000.00

0.00

-40,000.00

0.00

-493.94

$

0.00 $

-493.94

$

-36,270.48 $

0.00

$ -1,734,391.75 $ 1,034,563.46 20,436.54

$

-679,391.75 $

$

-30,517.48 $

600,964.66

0.00 0.00 0.00
0.00
600,964.66
0.00

CASH AND CASH EQUIVALENTS JUNE 30

$

510,441.10 s _ _6.0..0.._964_.66_

RECONCILIATION OF OfERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income
Adjustments to Reconcile Operating Income to Net cash Provided by Operating Activities: Depreciation Changes in Assets and Liabilities Increase in Accounts Receivable Increase in Liabilities
Total Adjustments
Net cash Provided by Operating Activities

$

526,061.44 $

737,748.66

$

3,422.00 $

0.00

-26,967.00 182,628.31

-142,878.00 6,587.94

$

159,083.31 $

-136,290.06

$

685,144.75 s _ _0.0..1.._458_.oo_

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 SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT"D"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Georgia Superior Court Clerks' Cooperative Authority, is an instrumentality of the State of Georgia and a public corporation. The Authority consists of seven (7) members as follows: four (4) members appointed by the executive board ofThe Council of Superior Court Clerks of Georgia and three (3) members appointed by the Governor. The purpose of the Authority is to provide a cooperative for the development, acquisition, and distribution ofrecord management systems, information, services, and supplies and materials for superior court clerks of the State. The Georgia Superior Court Clerks' Cooperative 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 ofthe significance ofits 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 Authority uses a fund, which is an accounting entity with a self-balancing set of accounts, to report on its financial position and the results of its operations. This report presents the Proprietary Fund Type Enterprise Fund which is used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs of providing 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.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and :financial reporting treatment applied to a fund is determined by its measurement focus. Proprietary fund types 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, (i.e., revenues) and decreases, (i.e., expenses) in net total assets. This measurement focus emphasizes the determination of net income.
PROPRIETARY FUND TYPE ENTERPRISE FUND
The Georgia Superior Court Clerks' Cooperative Authority maintains its Enterprise Fund on the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the accounting period in which they are earned, and expenses are recognized when incurred.
BUDGET An internal operations budget is prepared by the Authority for management purposes. The budget is not subject to review or approval by the Legislature of the State of Georgia and therefore, is a nonappropriated budget.

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GEORGIA SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXIIlBIT "D"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents consist of demand deposits with banks and other financial institutions. Cash and Cash Equivalents also include short-term, highly liquid investments with maturities of three months or less from the date of acquisition, if any. The aforementioned definitions were applied for the preparation of the Statement of Cash Flows.
INVESTMENTS Investments are defined as those financial instruments with terms of three months or more from the date of purchase and certain other securities held for the production of revenue. Investments are stated at cost.
ACCOUNTS RECEIVABLE Accounts receivable arising from operations are reported at gross value. Due to the nature of the accounts receivable all amounts are deemed collectible, therefore, no provision has been made for uncollectible accounts.
INVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase.
FIXED ASSETS Fixed assets are recorded at cost. Donated fixed assets are recorded at fair market value on the date donated and disposals are deleted at recorded cost. Depreciable assets are depreciated over the estimated useful lives of the assets using the straight-line method of depreciation.
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 Authority's financial position and operations.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds of the State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(I) Bonds, bills, certificates ofindebtedness, notes, or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities of the State of Georgia.
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GEORGIA SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT"D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES (3) Bonds ofany public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose.

(4) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia.

(5) Bonds, bills, certificates of indebtedness, notes, or other obligations of a subsidiary corporation 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 of June 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 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

Risk Categories

2

3

$ 570 447 18 $ 571,884.29 $ 571 884 29 $

O00 $=====0...,.0-0

-8-

GEORGIA SUPERIOR COURT CLERKS' COOPERATNE AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT"D"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS For purposes of analysis of custodial credit risk, investments consist of U. S. Government securities. Investments are stated at cost, and are summarized and classified as to custodial credit risk within the categories described below:

Category 1 - Insured or registered, or securities held by the Authority or its agent in the Authority's name.

Category 2 - Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the Authority's name.

Category 3 - Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Authority's name.

Type ofInvestment U. S. Government Securities

Risk Categories

2

3

Carrying Amount

Market Value

$ 699 82829 $

0 00 $==~0~0~0 $ 699 828 29 $ 699 828 29

NOTE 3: RISK MANAGEMENT

Public Entity Risk Pool

The State Personnel Board, Merit System of Personnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units of government of the State of Georgia 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 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 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 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 Authority 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.

-9-

GEORGIA SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT"D"

NOTE 4: 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 of the State of Georgia 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 of the State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1995.
NOTE 5: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The Georgia Superior Court Clerks' Cooperative 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 Authority's payroll for the year ended June 30, 1995, for employees covered by ERS was $32,266.37. The Authority's total payroll for all employees was $39,762.96.
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 of age.

- 10 -

GEORGIA SUPERIOR COURT CLERKS' COOPERATNE AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT "D"

NOTE 5: RETIREMENT PLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

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 Authority on behalf ofthe 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, 1995, the ERS employer contribution rate for the Authority amounted to 14.89% 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 $5,207.84, ofwhich $4,804.48 was made by the Authority and $403.36 was made by employees. These contributions met the requirements ofthe plan.

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 of projected salary increases and step-rate benefits, estimated to be payable in the future as a result of employee 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 of June 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 of inflation and merit increases:

Age 20 25 30 35 40 to 65

Percentage 9.5% 8.5% 6.5% 6.0% 5.7%

- 11 -

GEORGIA SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT"D"

NOTES: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation

3) ERS has the authority to grant cost-of-living adjustments by state statute. As ofJune 30, 1994, cost-ofliving adjustments have been included in the pension benefit obligation.

The total unfunded pension benefit obligation ofERS as of June 30, 1994, was $310,149,000, as follows:

Pension Benefit Obligation:

Retirees and Beneficiaries Currently Receiving Benefits and Terminated 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

1,206,805,000

Total Pension Benefit Obligation

$5,168,164,000

Net Assets Available for Benefits

4,858,015,000

Unfunded Pension Benefit Obligation

$ 310,149.000

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

- 12 -

GEORGIA SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT"D"

NOTE 5: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Funding Policy
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 Authority's contribution was actuarially determined and represented 0.0019% of total contributions made by all participating employers.
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 information 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 Georgia Superior Court Clerks' Cooperative Authority is eligible to participate 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 ofproviding retirement coverage for State employees who are temporary, seasonal, and part-time 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 GDCP for the year ended June 30, 1995.
NOTE 6: CONTINGENCIES
Litigation, claims and assessments filed against the Georgia Superior Court Clerks' Cooperative Authority, ifany, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and self-insurance which provides coverage for such litigation, claims and assessments. Accordingly, significant litigation, claims and assessments pending against the State of Georgia are disclosed in the State of Georgia Comprehensive Annual Financial Report for the fiscal year ended June 30, 1995.
NOTE 7: BONDING INFORMATION
The Executive Director, employees, and certain members of the Georgia Superior Court Clerks' Cooperative Authority are bonded under a Public Employees Blanket Bond written by Employers Insurance of Wausau,
- 13 -

GEORGIA SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 1995

EXHIBIT"D"

NOTE 7: BONDING INFORMATION
their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1995. Under this agreement the Public Employee Dishonesty Coverage insures the Authority 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 Authority to a maximum of$1,000,000.00 against loss sustained from failure ofits employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
All employees and certain members of the Georgia Superior Court Clerks Cooperative Authority 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 1, 1995. Under these additional public employee dishonesty coverages, the policies insure the Authority to a maximum of $9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 14 -

SUPPLEMENTARY INFORMATION - 15 -

GEORGIA SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY CASH AND CASH EQUIVALENTS JUNE 30, 1995

SCHEDULE "1"

NONINTEREST BEARING ACCOUNTS
Bank South, N.A., Atlanta, Georgia

$ ==5=70=,4=4=7=.1=8

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 16 -

GEORGIA SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY INVESTMENTS JUNE 30, 1995

SCHEDULE "2"

INVESTMENT TYPE
U.S. Treasury Bills Bank South, N.A. Atlanta, Georgia No.656228 No. 182059

PURCHASE DATE

MATURITY DATE

AMOUNT

February 23, 1995 May 30, 1995

August 24, 1995 August24, 1995

$ 349,535.00
350,293.29
$ 699!828.29

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-17-

GEORGIA SUPERIOR COURT CLERKS' COOPERATIVE AUTHORITY RECONCILIATION OF PER DIEM AND FEES YEAR ENDED JUNE 30, 1995

SCHEDULE "3"

Totals per Annual Supplement

Adjustments

ADP, Incorporated

Alston,

Leighton

Caldwell, Joanne P.

Cramer, Joseph J.

Flatt,

James L.

Jordan,

Dan

Marchman, Ray

Marianes, William B.

Randstad Staffing Services

Swift,

JanW.

Wilkes,

Barry F.

TYPE PAYMENT
Other Fees Board Member Board Member Consultant Board Member Board Member Board Member Attorney Other Fees Consultant Consultant

FEE AMOUNT

EXPENSE AMOUNT

$

0.00 $

0.00 $

TOTAL 0.00

547.80 1,121.00
413.00 4,180.00
590.00 472.00 531.00 15,000.00 6,705.98 22,143.75 10,500.00

398.64 77.45
127.89 739.00 218.48 261.87
3,371.92 968.99

547.80 1,519.64
490.45 4,307.89 1,329.00
690.48 792.87 15,000.00 6,705.98 25,515.67 11,468.99

Totals per Report

$

62,204.53 $

6,164.24 $==6=8,=36..8.=.77=

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