Review report, state of Georgia, Superior Courts of Georgia, year ended June 30, 1994

GA
~ Sct'--1-
1993--91-
STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET
ATLANTA. GEORGIA 30334

REVIEW REPORT STATE OF GEORGIA SUPERIOR COURTS OF GEORGIA YEAR ENDED JUNE 30, 1994

SUPERIOR COURTS OF GEORGIA -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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 STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

GOVERNMENTAL FUND TYPE

3

C STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

4

D STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

COMPARED TO BUDGET

BUDGET FUND

5

E NOTES TO THE FINANCIAL STATEMENTS

6

SUPPLEMENTARY INFORMATION

F COMBINING BALANCE SHEET (STATUTORY BASIS)

BUDGET FUND

18

G COMBINING STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

BUDGET FUND

19

H COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

20

I COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUNDS

22

SCHEDULES

1 SCHEDULE OF APPROVED BUDGET

23

2 CASH AND CASH EQUIVALENTS

24

3 SCHEDULEOFFEDERALREVENUES

25

4 SCHEDULE OF OTHER OPERATING EXPENSES

26

5 SCHEDULE OF EXTRAORDINARY EXPENDITURES

27

6 RECONCILIATION OF SALARIES AND TRAVEL

28

7 RECONCILIATION OF PER DIEM AND FEES

29

SUPERIOR COURTS OF GEORGIA - TABLE OF CONTENTS -
SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS

SECTION I FINANCIAL

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

~.epnrtm.eut nf /\ubits
254 WASHINGTON STREET, 5. W. ROOM 214
J\thmta, ~enrgia 30334-8400
December 9, 1994

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

Honorable Zell Miller, Governor Members ofthe General Assembly of Georgia Members ofthe Executive Committee ofthe Council of Superior Court Judges Members ofthe Prosecuting Attorneys' Council of Georgia Honorable Sherry L. Carr, Director Office ofInternal Administration Department ofAdministrative Services
and Honorable Robert L. Doss, Jr., Director Administrative Office ofthe Courts
INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION
Ladies and Gentlemen:
We have reviewed the accompanying financial statements (Exhibits A through E) of the Superior Courts of Georgia as of and for the year ended June 30, 1994, 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 Superior Courts of Georgia.
A review consists principally of inquiries of agency personnel and analytical procedures applied to financial
data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards,
the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware ofany material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 1.

94ARL-4

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 (Exhibits F through I and Schedules 1 through 7) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical procedures applied in the review ofthe financial statements and we are not aware ofany material modifications that should be made thereto.
Resx:tted~

CLV:gp 94ARL-4

Claude L. Vickers State Auditor

FINANCIAL STATEMENTS - 1-

SUPERIOR COURTS OF GEORGIA COMBINED BALANCE SHEET {STATUTORY BASIS)
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1994

EXHIBIT "A"

ACCOUNT GROUPS

GOVERNMENTAL FUND TYPE

FIDUCIARY FUND TYPE

---G-EN--ER-A-L--------G-E-N-ER-A-L---

TOTALS (Menorandum Only)

BUDGET

AGENCY

FIXED ASSETS

LONG-TERM DEBT

J-U-N-E---3-0-,--1-9-9-4---JU-N--E--3-0-,--1-9-9-3

ASSETS

Cash and Cash Eguivalents (See Schedule)

$ 637,642.02$ 412,378.78

$1,050,020.80$ 430,330.57

Accounts Receivable State Appropriation Federal Financial Assistance Other

$1,262,094.40 50,522.22 23,113.83

$1,262,094.40$ 356,458.83

50,522.22 135,516.64

23,113.83

0.00

$1,335,730.45

$1,335,730.45$ 491,975.47

Fixed Assets Equipment

$ 775,064.03

$ 775,064.03$ 658,099.44

Aloount to be Provided for Payment of Accrued Canpensated Absences

$ 205,520.33 $ 205,520.33 $ 164,806.13

Total Assets

$=1=,9=7==3=,3=7==2=.4=7=

$412,378.78$ 775,064.03
========= ========

$=2=0=5=,5=2=0=.=3=3

$=3=,=3=6=6=,3=3=5=.=61=

$=1=,7=4=5=,=2=1=1=.6=1=

LIABILITIES AND FUND EQUITY

Liabilities Accounts Payable Funds Held for Others Canpensated Absences

$ 188,179.37 $ 412,378.78

$ 188,179.37 $ 166,266.48 412,378.78 234,968.46
$ 205,520.33 205,520.33 164,806.13

Total Liabilities

$ 188,179.37 $ 412,378.78

$ 205,520.33 $ 806,078.48$ 566,041.07

Fund Equity

Investment in General Fixed Assets

Fund Balances

Reserved

Food Stamp Fraud Prosecution

Agreement

$ 363,950.09

Unreserved

Designated

Surplus

1,421,243.01

$ 775,064.03

$ 775,064.03 $ 658,099.44

363,950.09 1,421,243.01

172,812.11 348,258.99

Total Fund Equity

$1,785,193.10

$ 775,064.03

$ 2,560,257.13 $1,179,170.54

Total Liabilities and Fund Equity

$=1,=9=7=3=,3=7=2=.=47= $=4=1=2,=3=7=8=.7=8$=7=7=5=,=0=6=4=.0=3$=2=0=5=,=5=2=0~.3=3= $=3=,=3=6=6=,=3=3=5=.6=1= $=1=,7=4=5=,=2=1=1=.6=1=

See Independent Accountant's Cont>ined Report on Review of Financial Statements and Supplementary Infonnation. The notes to the financial statements are an integral part of this statement.
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SUPERIOR COURTS OF GEORGIA STATEMENT OF CHANGES IN FUND BALANCES (STATUTORY BASIS)
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30, 1994

EXHIBIT "B"

FUND BALANCES - JULY 1
Reserved Unreserved
Designated Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable
Excess of Funds Available over Expenditures Exhibit "C"
Prior Year's Checks Voided Reimbursement of Prior Year's Expenditures
DEDUCTIONS
Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1992 Year Ended June 30, 1993
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCES - JUNE 30
(To Exhibit "A")

BUDGET FUND YEAR ENDED JUNE 30, 1994 JUNE 30, 1993

$ 172,Bl2.ll $ 76,93B.31
348,258.99 166,389.92
------------- -------------
$ 521,071.10 $ 243,328.23
------------- -------------

$ 66,716.61 $ 3,863.28

1,714,641.24 166.60
3,668.65

445,473.40 7,006.60
64,727.82

$1,785,193.10$ 521,071.10

$

0.00 $ 166,389.92

348,258.99

0.00

172,812.11

76,938.31

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

$ 521,071.10 $ 243,328.23
------------- -------------

$1,785,193.10$ 521,071.10
============= =============

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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SUPERIOR COURTS OF GEORGIA STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30 1 1994

EXHIBIT "C"

FUNDS AVAILABLE REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation
Less: Lapsed Funds Total State Appropriation
FEDERAL REVENUES (See Schedule) OTHER REVENUE RETAINED
Alternative Dispute Resolution Grant Bar Foundation of Georgia
Case Countini Project Contract with Judicial Council
Fees Alternative Dispute Resolution Benchbook Pattern Jury Instructional
Interest Earned Sale of Assets Transfers from Aiency Funds Held by the Office of
Treasury and Fiscal Services District Attorneys' Retirement Fund District Attorneys' Retirement System Superior Court Judges Retirement Fund of Georgia Superior Court Judges Retirement System
Travel Reimbursements Contract with Institute of Continuing Judicial Education Total Other Revenues Retained Total Revenues
CARRY-OVER FROM PRIOR YEAR Transfer from Reserved Fund Balance Food Stamp Fraud Prosecution Agreement
Total Funds Available
EXPENDITURES OPERATION OF THE COURTS PROSECUTING ATTORNEYS' COUNCIL SENTENCE REVIEW PANEL COUNCIL OF SUPERIOR COURT JUDGES JUDICIAL ADMINISTRATIVE DISTRICTS HABEAS CORPUS CLERK
Total Expenditures Excess of Funds Available over Expenditures

TOTALS YEAR ENDED JUNE 30 1 1994 JUNE 30. 1993

$48,888,332.00 $45,423,943.00

-1,330,000.00

225,290.00

$47,558,332.00 $45,649,233.00

0.00

600,000.00

$47,558,332.00 $45,049,233.00

$ 1,770,838.51 $ 1,516,073.37

$

0.00 $ 63,000.00

76,500.00

76,500.00

44,785.13 150.00
17,050.06 9,014.20
400.00

150.00 0.00
14,839.32 0.00
1,250.00

1,374.04 178,327.92 141,717.12 1,216,573.61

10,055.51 158,570.27 53,365.85 960,514.63

64,000.00

64,000.00

$1,749,892.08$ 1,402,245.58

$51,079,062.59 $47,967,551.95

172,812.11

76,938.31

$51.251.874.70 $48.044.490.26

$45,318,826.90 $43,424,001.04

2,651,496.09 2,338,130.46

156,659.92 153,259.86

126,548.69 114,304.33

1,283,701.86 1,561,649.90

0.00

7,671.27

$49,537,233.46 $47,599,016.86

1,714,641.24

445,473.40

$51.251,874.70 $48,044,490.26

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.
- 4-

SUPERIOR COURTS OF GEORGIA STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30~ 1994

EXHIBIT "D"

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

BUDGET

ACTUAL

VARIANCE FAVORABLE
(UNFAVORABLE)

$47,558,332.00 $47,558,332.00$

0.00

0.00 1,770,838.51 1,770,838.51

2,429,549.00 1,749,892.08 -679,656.92

$49,987,8,81.00 $51,079,062.59$ 1,091,181.59

0.00

172,812.11

172,812.11

$49,987,881.00 $51,251,874.70$ 1,263,993.70

EXPENDITURES
Operation of the Courts Prosecuting Attorneys' Council Sentence Review Panel Council of Superior Court Judges Judicial Administrative Districts

$46,560,250.00 $45,318,826.90 $ 1,241,423.10

1,840,926.00 2,651,496.09 -810,570.09

157,415.00 156,659.92

755.08

143,809.00 126,548.69

17,260.31

1,285,481.00 1,283,701.86

1,779.14

$49,987,881.00 $49,537,233.46 $ 450,647.54

Excess of Funds Available over Expenditures

$1,714,641.24 $1,714,641.24
============= =============

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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SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY The Superior Courts of Georgia, an organizational unit ofthe State of Georgia, is part of the judicial branch of the government of the State of Georgia. There are 159 Superior Courts in Georgia organized by the General Assembly ofGeorgia into judicial circuits. Currently, there are 45 circuits consisting ofbetween one and eight counties served by Superior Court judges who are elected in nonpartisan, circuitwide elections for four-year terms. The Superior Courts are the State's highest ranking trial courts with original and general jurisdiction. They are authorized to exercise original, exclusive, or concurrent jurisdiction in .both civil and criminal cases as provided by the Constitution ofthe State of Georgia.
The Superior Courts of Georgia does not have authority to determine the amount of funding it will receive from the State of Georgia for any given fiscal year. Such authority is vested in the General Assembly of Georgia. The Superior Courts of Georgia also does not have authority to retain unexpended State appropriations (surplus) for any given fiscal year. Accordingly, the Superior Courts of Georgia is included within the State ofGeorgia reporting entity for financial reporting purposes because ofthe 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 Superior Courts of Georgia uses funds and account groups to report on its financial position and the results ofits operations determined in confonnity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. Funds and account groups presented in the accompanying financial statements are as follows:
GOVERNMENTAL FUND TYPE
BUDGET FUND - The fund used to account for activities and functions as set forth in the Amended Appropriations Act of 1993-1994. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund.
FIDUCIARY FUND TYPE
AGENCY FUNDS - The funds used to account for assets held for use by other funds, governments, or individuals.

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SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
ACCOUNT GROUPS
GENER.AL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at historical cost. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain governmental long-term liabilities, such as claims, judgments and compet;ISated absences, which will be paid from future resources.
BASIS OF ACCOUNTING MEASUREMENT FOCUS
The accounting and :financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds should be accounted for using the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues) and decreases (i.e., expenditures) in net current assets.
GOVERNMENTAL FUND 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 ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues that are accrued include primarily State appropriations, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Further, the modified accrual basis ofaccounting calls for expenditures, other than accrued interest ofgeneral long-term debt, to be recorded when the related fund liability is incurred.
Contractual obligations for services which have not been performed and for goods which have not been delivered at the end of the fiscal year are recognized as expenditures and liabilities in the accompanying financial statements. This accounting practice causes expenditure-driven grant revenues to be accrued based in part on the unexecuted portion of contracts for goods and services. The recognition of encumbrances as expenditures and liabilities is in conformity with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation of fund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
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SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGETFUND
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances ofthe Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State ofGeorgia, but differs from generally accepted accounting principles in that immaterial adjustments should be reported as current period revenues and expenditures.
FIDUCIARY FUND TYPE AGENCY FUNDS
The Agency Funds are custodial in nature in that assets are equally offset by liabilities to other funds, governmental units, or individuals. The modified accrual basis ofaccounting is utilized for recognizing assets and liabilities.
BUDGET Appropriation allotments to the Superior Courts of Georgia are on the basis of a budget submitted by the Courts and approved by the Legislature and the Governor. The budget is compiled in the same manner as all State departments and expenditures are classified by budget unit object classes as provided in Act No. 608 of Georgia Laws 1993 (as approved April 28, 1993) and amended by Act No. 622 of Georgia Laws 1994 (as approved February 8, 1994), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of 1993-1994.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include currency on hand, demand deposits with banks and other financial institutions, funds on deposit with the Judicial Council, and cash management pools that have the general characteristics ofdemand deposit accounts in that the Courts may deposit additional cash at any time and also may withdraw cash at any time without prior notice or penalty.
INVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase.
RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a brief description of the reserves reflected in the accompanying financial statements:

-8-

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
RESERVED FUND BALANCE FOOD STAMP FRAUD PROSECUTION AGREEMENT Funds received for this program represent unexpended administrative fees received through a contract with the Georgia Department of Human Resources for prosecuting Food Stamp fraud cases. This amount is restricted for expenditure in the future years.
COMPENSATED ABSENCES Compensated absences represent obligations of the Courts relating to employee's rights to receive compensation for future absences based upon services already rendered. This obligation relates only to vesting accumulating annual leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount will not be liquidated with expendable available financial resources. Funds are provided in the appropriation offunds each year to the Courts to cover the cost of annual leave paid to terminated employees.
The liability for compensated absences at year end is reported in the General Long-Term Debt Account Group for governmental funds.
MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present 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 changes in the Courts' financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS
STATE OF GEORGIA COLLATERALIZATION STATUTES AND POLICIES Funds ofthe State of Georgia cannot be placed in a depository paying interest longer than ten days without the depository providing a surety bond to the State. In lieu of a surety bond, the depository may pledge as collateral any one or more ofthe following securities as enumerated in the Official Code of Georgia Annotated Section 50-17-59:
(1) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia.
(2) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities of the State of Georgia.
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SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "E"

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 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 ofdevelopment authorities created by the laws ofthe State of Georgia.

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

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

As authorized in the Official Codeof Georgia Annotated Section 50-17-53, the State Depository Board has adopted policies which allow agencies ofthe State ofGeorgia 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. These bank balances are categorized below in order to provide information about the extent to which such deposits are exposed to custodial credit risk.

Category 1 - Amounts covered by depository insurance or collateralized with securities (at market value) held by the Courts or by its agent in the Courts' name.

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

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

Carrying Amount

Bank Balance

Risk Categories

2

3

Cash Deposits

S 260 954 19 S 3 382 988 90 S 278 195 81 S 157 675 62 S 2 947 117.47

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SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "E"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS Deposits in the amount of $52,379.16 of the Superior Courts of Georgia reflected on Schedule "2" of this report are a part ofthe demand deposits maintained by the Judicial Council. The amounts ofthe bank balances for these deposits are classified by custodial credit risk categories in the review report ofthe Judicial Council.

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

Type ofInvestment

Carrying Amount

Market Value

State Investment Pool

$ 736,637.45 $ 736,637 45

NOTE 3: OPERATING LEASES

The Superior Courts of Georgia has entered into certain agreements to lease real property and equipment which are classified as operating leases. These leases generally contain provisions that, at the expiration date ofthe original term ofthe lease, the Superior Courts ofGeorgia has the option of renewing the lease on a yearto-year basis. Future minimum commitments for operating leases as of June 30, 1994, are listed below. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for the subsequent fiscal year has been exercised.

Fiscal Year Ending June 30

1995

$ 92,450.76

Expenditures for rental of real property and equipment under operating leases for the year ended June 30, 1994, totaled $142,105.69.

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 1, 1993

$ 658,099.44

Additions Deductions

161,811.86
44,847.27

Balance June 30, 1994

$ 775,064.03

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SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "E"

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1994, the following changes occurred in the compensated absences liability reported in the General Long-Tenn Debt Account Group:

Type oflnveslment

Prosecuting Attorneys' Council

Senten0e Review
..f!mL

Council of Superior Court Judges

Judicial Administrative
Districts

Total

Balance July 1, 1993

S 64,527.33 S 2,610.82 S 6,267.79 S 91,400.19 S 164,806.13

Addition&'Deletions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits (*)
Balance June 30, 1994

10,676.38

-23.10

3,230.12

12,225.78

26,109.18

5,753.08
S 80 9S6.79 S

197.96

726.59

7,927.39

14,605.02

2 78S.68 S 10 224 so S 111 55336 S 205520 33

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

NOTE 6: DEFERRED COMPENSATION PLAN

The State ofGeorgia offers its employees a deferred compensation plan in accordance with Internal Revenue Code Section 457. The plan, available to employees ofthe State of Georgia and county health departments, pennits such employees to defer a portion oftheir salary until future years. Participants choose the option or options in which they wish to participate. The deferred compensation is not available to employees until tennination, retirement, death, or unforeseeable emergency. All amounts ofcompensation 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 ofGeorgia subject only to the claims ofthe State's general creditors. Participant's rights under the plan are equal to those ofa general creditor ofthe State of Georgia in an amount equal to the fair market value ofthe deferred account ofeach participant. Financial infonnation 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, 1994.

NOTE7: RETIREMENTPLANS
The Superior Courts of Georgia participates in five retirement systems applicable to certain employee categories. These systems are as follows:

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SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "E"

NOTE7: RETIREMENTPLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA The Employees' Retirement System of Georgia, a single-employer, defined benefit pension plan was established by the General Assembly ofGeorgia for the purpose of providing retirement allowances for employees of the State of Georgia. The Retirement System is funded through a combination of employee and employer contributions. Employees are required to contribute a graduated percentage of annual compensation. Employer contributions are for a specified percentage of active member payroll determined annually by an actuarial valuation. During the year ended June 30, 1994, the Courts contributed $3,000,109.61 to the Employees' Retirement System of Georgia. Participation in the Retirement System is not segregated by employee groups ofindividual governmental units and the Courts have no further liability under the retirement system other than future employer contributions as established for each fiscal year. Information relative to the plan description, funding status and historical trends is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994.
GEORGIA DEFINED CONTRIBUTION PLAN The State ofGeorgia also provides retirement coverage for temporary, seasonal, and part-time employees who are not eligible for membership in the Employees' Retirement System of Georgia referred to above through a single-employer defined contribution plan. The Georgia Defined Contribution Plan was established by the General Assembly of Georgia and is administered by the Board of Trustees of the Employees' Retirement System of Georgia. Covered employees are required to contribute 7.5% of their gross salary, with no matching contribution by the employer. A member who terminates employment may apply for a refund of contributions and interest. Benefits are based solely on the amount contributed by the employee plus investment earnings. Upon discretion ofthe Board ofTrustees, members who leave employment with less than $3,500.00 credited to their account may be required to make a lump-sum withdrawal. Members are eligible to retire at the age of65 with the option ofreceiving a periodic payment based on mortality tables and interest accumulation as adopted by the Board of Trustees of the Employees' Retirement System of Georgia. Information relative to the plan description and funding status is presented in the financial report of the Employees' Retirement System of Georgia for the year ended June 30, 1994.
SUPERIOR COURT JUDGES RETIREMENT SYSTEM The Superior Court Judges Retirement System, a single-employer, defined benefit pension plan, was established by the General Assembly of Georgia for the purpose of providing retirement allowances for the Superior Court Judges ofthe State of Georgia, and their survivors and other beneficiaries. The Retirement System is funded through a combination of employee and employer contributions. Employees are required to contribute a percentage of annual compensation. These employee contributions are supplemented by the Superior Courts of Georgia. Employer contributions are determined annually and currently calculated as thirteen percent (13%) ofthe salaries paid by the State of Georgia. During the year ended June 30, 1994, the Courts contributed $766,489.27 to the Superior Court Judges Retirement System for employer contributions and $468,928.89 for employee contributions on behalf ofthe affected Superior Court Judges. Participation in the Retirement System is not segregated by employee groups of individual governmental units and the Courts has no further liability under the Retirement System other than future employer contributio.ns as

- 13 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXHIBIT "E"

NOTE7: RETIREMENTPLANS
SUPERIOR COURT JUDGES RETIREMENT SYSTEM established for each fiscal year. Available information relative to the plan description, funding status and historical trends is presented in the financial report ofthe Superior Court Judges Retirement System for the year ended June 30, 1994.
DISTRICT ATTORNEYS' RETIREMENT SYSTEM The District Attorneys' Retirement System, a single-employer, defined benefit pension plan, was established by the General Assembly of Georgia for the purpose of providing retirement allowances for the district
attorneys ofthe State ofGeorgia, and their survivors and other beneficiaries. The Retirement System is funded through a combination of employee and employer contributions. Employees are required to contribute a percentage ofannual compensation. These employee contributions are s1:1pplemented by the Superior Courts ofGeorgia. Employer contributions are determined annually and currently calculated as ten percent (10%) of the salaries paid by the State of Georgia. During the year ended June 30, 1994, the Courts contributed $154,088.15 to the District Attorneys' Retirement System for employer contributions and $150,174.39 for employee contributions on behalfofthe affected district attorneys. Participation in the Retirement System is not segregated by employee groups of individual governmental units and the Courts has no further liability under the Retirement System other than future employer contributions as established for each fiscal year. Available information relative to the plan description, funding status and historical trends is presented in the financial report of the District Attorneys' Retirement System for the year ended June 30, 1994.
TRIAL JUDGES AND SOLICITORS RETIREMENT FUND The Trial Judges and Solicitors Retirement Fund, a single-employer, defined benefit pension plan, was established by the General Assembly of Georgia for the purpose ofproviding retirement allowances for trial
judges and solicitors ofcertain courts ofthe State ofGeorgia, and their survivors and other beneficiaries. The Retirement Fund is funded through a combination ofemployee and employer contributions. Employees are required to contribute a percentage ofannual compensation. Employer contributions are determined annually by an actuarial valuation and approved and certified by the Board of Trustees. During the year ended June 30, 1994, the Courts contributed $598,445.86 to the Trial Judges and Solicitors Retirement Fund. Participation in the Retirement Fund is not segregated by employee groups ofindividual governmental units and the Courts has no further liability under the Retirement Fund other than future employer contributions as established for each fiscal year. Available information relative to the plan description, funding status and historical trends is presented in the financial report ofthe Trial Judges and Solicitors Retirement Fund for the year ended June 30, 1994.
NOTE 8: LEAVE POLICIES
Employees ofthe Prosecuting Attorneys' Council, Sentence Review Panel, Council of Superior Court Judges and Judicial Administrative Districts 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.

- 14-

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIDBIT "E"

NOTE 8: LEAVE POLICIES
Employees of the Operation of the Courts do not earn annual and sick leave because this entity has not adopted a policy to provide for the earning and accumulation ofleave for Court employees. Employees ofthe Prosecuting Attorneys' Council, Sentence Review Panel, Council of Superior Court Judges and Judicial Administrative Districts earn annual leave ranging from ten to fourteen hours each month depending upon the employees' length of continuous State service with a maximum accumulation offorty-five days. Employees are paid for unused accumulated annual leave upon retirement or termination of employment. Funds are provided in the appropriation of State funds each year to cover the cost of annual leave of terminated employees. See Note 1- Compensated Absences
Certain employees who retire with one hundred and twenty days or more offorfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 9: CONTINGENCIES
Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. This could result in refunds to the grantor agency for any expenditures which are disallowed under grant terms. The amount of expenditures which may be disallowed by the grantor cannot be determined at this time although the Courts expects such amounts, if any, to be immaterial to its overall financial position.
Litigation, claims and assessments filed against the Superior Courts of Georgia, if any, are generally considered to be actions against the State of Georgia. Pursuant to the Official Code of Georgia Annotated, the Department of Administrative Services maintains a program of purchased insurance and 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, 1994.
NOTE 10: OTHER FINANCIAL NOTES
Pursuant to the Official Code ofGeorgia Annotated Title 47, Chapters 8 and 12, certain superior court judges and district attorneys who retire are eligible to be appointed senior judge of the superior courts and district attorney emeritus, respectively. Salaries paid for these positions are funded by the State of Georgia through the Superior Courts ofGeorgia.
NOTE 11: BONDING INFORMATION
All employees ofthe Superior Courts ofGeorgia are bonded under a Public Employees Blanket Bond written by Employers Insurance of Wausau, their Bond No. 1450-00-110723, on which the premium was paid to October 1, 1994. Under this agreement the Public Employee Dishonesty Coverage insures the Superior Courts ofGeorgia to a maximum of$1,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees. The Faithful Performance ofDuty Coverage insures the Superior Courts of Georgia to a maximum of $100,000.00 against loss sustained from failure of its employees to perform faithfully their duties or to account properly for all monies and property received by virtue of their position or employment.
- 15 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1994

EXIIlBIT "E"

NOTE 11: BONDING INFORMATION

All employees ofthe Superior Courts of Georgia are also bonded under a Commercial Crime Policy written

by the United States Fire Insurance Company, their Policy No. 626 011675 2, on which the premium was paid

to October 1, 1994. Under this additional public employee dishonesty coverage, the policy insures the Superior

Courts ofGeorgia to a maximum of$4,000,000.00 against loss sustained through fraudulent or dishonest acts

by its employees.



- 16 -

SUPPLEMENTARY INFORMATION - 17 -

SUPERIOR COURTS OF GEORGIA COMBINING BALANCE SHEET (STATUTORY BASIS)
BUDGET FUND JUNE 30. 1994

EXHIBIT "F"

ASSETS
Cash and Cash Equivalents
Accounts Receivable State Appropriation Federal Financial Assistance Other

OPERATION OF THE COLRTS

PROSECUTING SENTENCE

ATTORNEYS' REVIEW

COUNCIL

PANEL

COUNCIL OF JUDICIAL SUPERIOR ADMINISTRATIVE COURT JUDGES DISTRICTS

TOTAL

$ 193,006.89 $420,814.09$ 3,257.53 $ 3,671.52 $ 16,891.99 $ 637,642.02

$1,262,094.40 50,522.22
$1,312,616.62

$1,262,094.40 50,522.22
$ 23,113.83 23,113.83
$ 23,113.83 $1,335,730.45

Total Assets

$1,505,623.51 $ 420,814.09 $ 3,257.53 $ 3,671.52 $ 40,005.82 $1,973,372.47
========== ======== =:=ct--==== ======== ============ =========

LIABILITIES AND FUND EQUITY

Liabilities Accounts Payable

$ 88,567.77$ 56,864.00$ 2,353.17 $ 2,581.08 $ 37,813.35$ 188,179.37

Fund Equity Fund Balances
Reserved Food Stamp Fraud Prosecution Agreement
Unreserved Designated Surplus

$ 363,950. 09

$1,417,055.74

$

904.36 $ 1,090.44$

$ 363,950.09 2,192.47 1,421,243.01

Total Fund Equity

$1,417,055.74 $ 363,950.09 $ 904.36 $ 1,090.44$

2,192.47 $1,785,193.10

Total Liabilities and Fund Equity

$1,505,623.51 $ 420,814.09 $ 3,257.53$ 3,671.52 $ 40,005.82 $1,973,372.47
============ ======== ========= ========= ============== =========

See accanpanying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary lnfonnation.
- 18 -

SUPERIOR COURTS OF GEORGIA COMBINING STATEMENT OF CHANGES IN FUND BALANCES {STATUTORY BASIS)
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "G"

FUND BALANCES - JULY 1
----------------------
Reserved Unreserved
Designated Surplus

OPERATION PROSECUTING SENTENCE COUNCIL OF

JUDICIAL

OF THE ATTORNEYS' REVIEW

SUPERIOR ADMINISTRATIVE

CO~TS

COUNCIL

PANEL COURT JUDGES DISTRICTS

TOTAL

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

$172,812.11

$ 172,812.11

$ 244,717.74 57,753.51 $ 2,377.64$

613.48 $ 42,796.62 348,258.99

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

$ 244,717.74 $230,565.62$ 2,377.64$

613.48 $ 42,796.62 $ 521,071.10

ADDITIONS

Adjustments to Prior Year's Accounts Payable
Excess of Funds Available over Expenditures Exhibit "H"
Prior Year's Checks Voided Reimbursement of Prior Year's
Expenditures

$ 65,500.00

$

1,347,720.49 $ 363,950.09 166.60

3,668.65

149.28 $ 755.08

1,030.13 $ 60.31

37.20 $ 66,716.61
2,155.27 1,714,641.24 166.60
3,668.65

$1,417,055.74$ 363,950.09$ 904.36 $ 1,090.44$

2,192.47 $1,785,193.10

DEDUCTIONS

Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal Services Year Ended June 30, 1993
Reserved Fund Balance Carried over fran Prior Year as Funds Available

$ 244,717.74 $ 57,753.51 $ 172,812.11

2,377.64$

613 .48 $ 42,796.62 $ 348,258.99 172,812.11

$ 244,717.74$ 230,565.62 $ 2,377.64 $ 613.48 $ 42,796.62 $ 521,071.10

FUND BALANCES - JUNE 30

(To Exhibit "F")

$1,417,055.74 $ 363,950.09 $ 904.36 $ 1,090.44 $ 2,192.47 $1,7B5,193.10
========== ========== ========= ========== ============ =========

See accanpanying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Information.
- 19 -

SUPERIOR COURTS OF GEORGIA COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "H" Page 1

OPERATION PROSECUTING SENTENCE COUNCIL OF JUDICIAL

OF THE

ATTORNEYS' REVIEW

SUPERIOR ADMINISTRATIVE

COURTS

COUNCIL

PANEL COURT JUDGES DISTRICTS

TOTAL

FUNDS AVAILABLE

REVENUES

STATE APPROPRIATION General Appropriation Amended Appropriation Total State Appropriation

$45,598,810.00 $1,840,926.00$ 157,415.00$ 126,609.00$ 1,164,572.00 $48,888,332.00 -1,330.000.00 - - - - - - - - - - - - - - - - - -1.330.000.00
$44.268.810.00 $1,840.926.00 $ 157.415.00 $ 126,609.00$ 1.164.572.00 $47.558.332.00

FEDERAL REVENUES

$ 778.544.64 $ 992.293.87

$ 1.770.838.51

OTHER REVENUES RETAINED

Case Countin9 Project

Contract with Judicial

Council

Fees

Alternative Dispute

Resolution

Benchbook

$

150.00

Pattern Jury Instructional

17,050.06

Interest Earned

$

Sale of Assets

Transfer fran Agency Funds

Held by Office of Treasury

and Fiscal Services

District Attorneys'

Retirenent Fune

1,374.04

District Attorneys'

Retirenent Systan

178,327.92

Superior Court Judges

Retirenent Fund of

Georgia

141,717.12

Superior Court Judges

Retirenent Systan

1,216,573.61

Travel Reimbursenent

Contract with Institute of

Continuing Judicial

Education

64,000.00

9,014.20 400.00

$ 76,500.00$ 76,500.00

44,785.13

44,785.13 150.00
17,050.06 9,014.20
400.00

1,374.04 178,327.92 141,717.12 1,216,573.61
64,000.00

Total Other Revenues

Retained

$ 1.619.192.75 $ 9.414.20

$ 121,285.13$ 1.749.892.08

Total Revenues

$46,666,547.39 $2,842,634.07 $157,415.00$ 126,609.00$ 1,285,857.13 $51,079,062.59

CARRY-OVER FROM PRIOR YEAR

Transfer fran Reserved Fund Balance Food Stamp Fraud Prosecution Agreement

172,812.11

172.812.11

Total Funds Available $46 1666.547.39 $3 1015.446.18 $ 157 1415.00 $ 126.609.00 $ 1.2851857.13 $51.251 1874.70

See acc~nying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Infonnation.
- 20 -

SUPERIOR COURTS OF GEORGIA COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITLRES
BUDGET FUND YEAR ENDED JUNE 30. 1994

EXHIBIT "H" Page 2

OPERATION PROSECUTING SENTENCE COUNCIL OF JUDICIAL

OF THE

ATTORNEYS' REVIEW

SUPERIOR ADMINISTRATIVE

COURTS

COUNCIL

PANEL COLRT JUDGES DISTRICTS

TOTAL

EXPENDITURES

COST OF OPERATIONS

PERSONAL SERVICES

Salaries and Wages

$32,583,882.63$

E,loyer's Contributions for:

.I.C.A.

1,756,728.43

Retirement

4,873,981.12

Health Insurance

3,441,046.06

Personal liability Insurance 137,160.00

U~loyment Coq>ensation

Insurance

17,139.00

Workers' Coq>ensation

Insurance

96,406.00

976,197.64$ 55,472.74 137,791.50 124,665.18 1,260.00 1,674.00 2,127.00

92,339.05$ 6,758.86 14,843.41 11,542.57
126.00 48.63 199.34

77,000.16$ 5,229.85 12,289.20 9,625.20
84.00 32.42 132.89

806,777.12 $34,536,196.60

56,230.45 1,880,420.33 120,830.14 5,159,735.37 94,570.29 3,681,449.30
882.00 139,512.00

340.42

19,234.47

1,395.40 100,260.63

$42.906.343.24 $1,299,188.06$ 125,857.86$ 104,393.72$ 1,081,025.82 $45.516.808.70

REGULAR OPERATING EXPENSES

Motor Vehicle Expenses

Supplies and Materials

$

Repairs and Maintenance

Rents (other than Real Estate)

Insurance and Bondin~

Grants to Counties, ities,

and Civil Divisions

Other orcrati!IQ Expenses

(See chedule)

Extraordinary Expenditures

(See Schedule)

Duglicating and Rapid Copy

Pu lications and Printing

$ 16,415.97 3,555.20 1,700.80 6,858.00

6,234.52 11,752.25$ 25,052.45
594.00 5,296.59

259,950.00 649,875.00

8,750.66 40,812.13

501,201.00 1,012.74 4.332.86

8,736.50

8,256.27 $ 1,082.50
121. 91 269.00 152.60 2,564.20

4,019.86$ 1,062.50
121.89 189.00 822.03 759.25 22.00

$ 13,216.24 2,084.45
671.38 1,864.00 2,588.22
296.46 2,767.94

6,234.52 53,660.59 32,837.10 3,209.98 14,476.59 909,825.00 53,125.64 501,201.00 2,068.45 18,423.50

TRAVEL EQUIPMENT
Equipment Purchases COMPUTER CHARGES
Other Costs Supplies and Materials Repairs and Maintenance
Software Equipment
Equipment Purchases

$ 803,777.23 $ 748,353.44 $ 1i,446.48 $ 6,996.53$ $ 496,772.67 $ 16,172.57 $ 1,009.57 $ 4,991.24 $

$ 7,765.26

$ 1,028.32 $ 2,581.08 $

$ 1,876.28$ 159.67 $

19,589.93 2,206.97

12,404.00

652.65

$ 9,703.02 136,758.94

55.91 $

23,488.69 $1,595,062.37 51,449.28$ 570,395.33
33,185.97 $ 44,560.63

835.48 $ 3,015.00 1,366.65 28,037.78

2,927.34 24,811.90 14,423.30 174,499.74

$ 9,703.02$ 170,629.15$ 3,019.29 $

55.91 $ 33,254.91 $ 216,662.28

REAL ESTATE RENTALS

$ 90,218.75$ 11,110.00 $ 4,080.00$ 33,486.96$ 138,895.71

TELECOMMUNICATIONS

$ 2,269.90$ 12,082.26$ 1,988.40$ 2,144.72 $ 25,386.80$ 43,872.08

PER DIEM, FEES AND CONTRACTS

Per Diem and Fees

$1,058,768.40$ 153,684.50$

Contracts

33,427.18 161,167.36

200.00 $ 1,305.49 $

2,423.43 $1,216,381.82 194,594.54

$1,092,195.58$ 314,851.86 $ 200.00 $ 1,305.49 $

2,423.43 $1,410,976.36

Total Expenditures

$45,318,826.90 $2,651,496.09$ 156,659.92 $ 126,548.69 $ 1,283,701.86 $49,537,233.46

Excess of Funds Available over Expenditures

1,347,720.49 363,950.09

755.08

60.31

2,155.27 1,714 I 641. 24

$46.666.547.39 $3.015.446.18 $157,415.00$ 126.609.00 $ 1.285.857.13 $51.251.874.70

See accan~nying notes and Independent Accountant's Canbined Report on Review of Financial Statements and Supplementary Infonnation.
- 21 -

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

EXHIBIT "I"

FUND
Cont;nu;ng Legal Educat;on Fees Food Stamp Fraud Account

ASSETS/
LIABILITIES
JULY 1, 1993
------------

ADDITIONS
---------

DELETIONS
---------

ASSETS/
LIABILITIES JUNE 30, 1994
-------------

$ 30,419.36 $ 13,065.40 $ 2,147.41 $ 41,337.35 204,549.10 412,594.58 246,102.25 371,041.43
------------- ------------- ------------- -------------
$ 234,968.46$ 425,659.98$ 248,249.66$ 412,378.78
============= ============= ============= =============

See accompany;ng notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 22 -

SUPERIOR COURTS OF GEORGIA SCHEDULE OF APPROVED BUDGET
YEAR ENDED JUNE 30 1 1994

SCHEDULE "1"

FUNDS AVAILABLE
REVENUES
State Appropriation Federal Revenues Other Revenues Retained
EXPENDITURES
Operation of the Courts Prosecuting Attorneys' Council Sentence Review Panel Council of Superior Court Judges Judicial Administrative Districts

ORIGINAL

AMENDED

BUDGET

APPROPRIATION APPROPRIATION ADJUSTMENTS

TOTAL

$48,888,332.00 $-1,330,000.00

0.00

1,874,216.00

$

$47,558,332.00 0.00
555,333.00 2,429,549.00

$50,762,548.oo $-1,330,000.oo $ sss,333.oo $49,987,aa1.oo
----=----==-- =-.--=----=-- ----------=-- =----=----=--

$47,515,523.00 $-1,372,497.00 $

1,840,926.00

157,415.00

126,609.00

1,122,075.00

42,497.00

417,224.00 $46,560,250.00

1,840,926.00

157,415.00

17,200.00

143,809.00

120,909.00 1,285,481.00

$50,762,548.00 $-1,330,000.00 $ 555,333.00 $49,987,881.00
============= ============= ============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 23 -

SUPERIOR COURTS OF GEORGIA CASH AND CASH EQUIVALENTS
JUNE 30, 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Wachovia Bank of Georgia, Atlanta, Georgia
INTEREST BEARING ACCOUNTS
Wachovia Bank of Georgia, Atlanta, Georgia Funds on Deposit with the Judicial Council Funds on Deposit with Office of Treasury and Fiscal Services
State Investment Pool
OTHER
Cash on Hand

$ 192,208.02
$ 68,746.17 52,379.16
736,637.45 857,762.78
SO.DO
$1,050,020.80
=============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 24 -

SUPERIOR COURTS OF GEORGIA SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30, 1994

PROGRAM
Agriculture, U. S. Department of Food Stamps Through Georgia Department of Human Resources
Health and Human Services, U.S. Department of Child Support Enforcement Through Georgia Department of Human Resources
Justice, U. S. Department of Drug Control and System Improvement - Formula Grant Through Office of the Governor

CFDA NUMBER
10.551 93.563 16.579

SCHEDULE "3"
AMOUNT $ 874,012.50
778,544.64 11B,281.37 $1,770,838.51
=============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 25 -

SUPERIOR COURTS OF GEORGIA SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30, 1994

SCHEDULE "4"

REGULAR OPERATING EXPENSES
OPERATION OF THE COURTS Conference Expense Freight, Express and Storage Reimbursement For Office Expenses of Habeas Corpus Clerk's Office Butts County Board of Commissioners Chattooga County Board of Commissioners
PROSECUTING ATTORNEYS' COUNCIL Freight, Express and Storage Legal Advertising Registration Fees Seminar Expense Subscriptions and Dues
SENTENCE REVIEW PANEL Subscriptions and Dues
COUNCIL OF SUPERIOR COURT JUDGES Freight, Express and Storage Legal Advertising Registration Fees Subscriptions and Dues
JUDICIAL ADMINISTRATIVE DISTRICTS Freight, Express and Storage License Agreement Fee Registration Fees Seminar Expense Subscriptions and Dues

$

132.61

1,265.79

5,412.26 1,940.00$

8,750.66

$

6,617.75

342.00

345.00

115.00

33,392.38

40,812.13

152.60

$

67.38

120.00

25.00

609.65

822.03

$

100.34

250.00

515.00

342.13

1,380.75

2,588.22

$ 53,125.64
=============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 26 -

SUPERIOR COURTS OF GEORGIA SCHEDULE OF EXTRAORDINARY EXPENDITURES
YEAR ENDED JUNE 30. 1994
REGULAR OPERATING EXPENSES
Employees' Retirement System of Georgia Unfunded Retirement Liability Payment by Superior Courts of Georgia on Behalf of Judicial Council

SCHEDULE "5"
$ 501,201.00
=============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 27 -

SUPERIOR COURTS OF GEORGIA RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30 1 1994

SCHEDULE "6"

Totals per Annual Supplement

Accruals June 30, 1993

Adjustments Bright, Bublin, Chambers, Elkins, Fowler, Huntz, Johnston, Martin, Strong-McCarthy, Thatcher,

Freoric Laura Joseph Paul David Kathleen Sharon Nolan E. Cynthia Allison

Transfers to Employees' Retirement System of Georgia for Retirement Benefits of Retired District Attorneys and Superior Court Judges for the Period July 1, 1993, through June 30, 1994

Totals per Report

SALARIES
--------

TRAVEL

$31,050,159.23 $ 571,168.30

-416.04

-2,988.20
-16,220.20 -1,914.70

-45.40
-237.00 -140.00 -117.12
268.59 -67.00 -19.00

3,507,160.47

$34,536,196.60$ 570,395.33
============= =============

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
- 28 -

SUPERIOR COURTS OF GEORGIA RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30. 1994

SCHEDULE "7"

Totals per Annual Supplement
Adjustments Butts County Board of Commissioners Superior Court Judges and District Attorneys Retirement Plans Trial Judges and Solicitors Retirement Fund Wyatt Company, The

TYPE PAYMENT

FEE AMOUNT

EXPENSE AMOUNT
-------

TOTAL

$ 905,953.62 $ 196,263.20 $ l,102,216.B2

Other Fees
Other Fees
Other Fees Consultant

25,000.00

25,000.00

13,500.00

13,500.00

58,500.00

58,500.00

17,165.00

17,165.00

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

Totals per Report

$1,020,118.62 $ 196,263.20$ 1,216,381.82

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
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SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SUPERIOR COURTS OF GEORGIA SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status offindings disclosed in the review report for the year ended June 30, 1993, is summarized below:

Audit Control Number

Status ofFinding

436-93-01 436-93-02

See Audit Control Number 436-94-01 See Audit Control Number 436-94-02

PRIOR YEAR/CURRENT YEAR

ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Food Stamps (CFDA 10.551) Drug Control and System Improvement (CFDA 16.579) Nonmajor Programs Audit Control Number 436-94-01

The review report for the year ended June 30, 1993, noted that internal accounting control procedures employed by the Prosecuting Attorneys' Council did not provide for an adequate separation ofduties in the performance of certain accounting functions and related procedures. For the year under review, a limited review ofthese procedures revealed that the Council had made no significant changes that would provide for an adequate separation of duties in the following control categories:

(I) Cash and Cash Equivalents

(4) General Ledger

(2) Revenue/Receivables/Receipts

(5) Administrative Requirements

(3) Expenditures/Liabilities/ Disbursements

The Prosecuting Attorneys' Council should review the accounting procedures in place, design procedures which would enhance separation of duties relative to the above control categories, and implement those procedures to strengthen the internal controls over the accounting function.

EXPENDITURES/LIABILITIES/DISBURSEMENTS Disbursements on Behalf ofDistrict Attorneys Financial Statements Audit Control Number 436-94-02

The audit report for the year ended June 30, 1990, called attention to the fact that the Prosecuting Attorneys' Council has entered into a contractual agreement with the Department ofHuman Resources, Office ofFraud and Abuse (OFA), whereby, OFA pays a fee to the Prosecuting Attorneys' Council for adjudication ofguilt

SUPERIOR COURTS OF GEORGIA SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30, 1994
PRIOR YEAR/CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Disbursements on Behalf ofDistrict Attorneys Financial Statements Audit Control Number 436-94-02
in food stamp suspected fraud cases. As part ofthis agreement, a memorandum ofunderstanding is signed by those district attorneys who wish to participate in the agreement. Those district attorneys who elect to sign the memorandum ofunderstanding earn a percentage of the funding received by the Prosecuting Attorneys' Council for those cases that are prosecuted.
Each district attorney has a choice ofhow payment from the Prosecuting Attorneys' Council is made. Payment
can be made directly to district attorney's office or the payment can go into an "agency fund" account maintained by the Prosecuting Attorneys' Council. Disbursements from this account are made as directed by written instruction from the individual district attorney. These payments can go to the district attorney individually or to third parties for expenses that include, but are not limited to, office supplies and equipment, salaries, and travel reimbursements.
In regard to the aforementioned arrangements, attention ofthe Prosecuting Attorneys' Council is called to the
Official Code of Georgia Annotated Section 15-18-10 (c) which provides:
"All fees, fines, forfeitures, costs and commissions formerly allowed district attorneys for their services
as district attorney or as solicitor of any court shall become the property of the county in which the services of the district attorney were rendered. The clerk of the court shall collect any such fees, fines, forfeitures, costs and emoluments and remit the same to the county treasury by the fifteenth day of each month."
Further, the Official Code of Georgia Annotated Section 15-18-23 states:
"The governing authority of the county or counties comprising each judicial circuit shall provide all offices, utilities, telephone expenses, materials and supplies as may be necessary to equip, maintain, and furnish the office or offices of the district attorney in an orderly and efficient manner."
It is our conclusion that the aforementioned statutes require that all fees and related expenses of the district attorneys' offices should be subject to the financial and budgetary control ofthe governing authority of the counties comprising the judicial circuits. It is the position of the Prosecuting Attorneys' Council that these statutes do not govern the retention and expenditure of funds derived under the terms of the food stamp agreement. Inasmuch as this difference of opinion has not been adequately resolved, the State Auditor has requested a legal opinion ofthe Attorney General with regard to the proper disposition ofthese funds. As of the date of this report, no response has been received from the Attorney General's Office.