Review report, state of Georgia, Superior Courts of Georgia, year ended June 30, 1995

GA
"ioo
.RI S94 1994-95
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, I 995

SUPERIOR COURTS OF GEORGIA - TABLE OF CONTENTS -

SECTION!

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)

BUOOETFUND

32

G COMBINING STATEMENT OF CHANGES IN FUND BALANCES

(STATUTORY BASIS)

BUDGET FUND

33

H COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES

BUDGET FUND

34

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE -AGENCY FUNDS

38

SCHEDULES

I SCHEDULE OF APPROVED BUDGET

39

2 CASH AND CASH EQUIVALENTS

40

3 SCHEDULE OF FEDERAL REVENUES

41

4 SCHEDULE OF OTHER OPERATING EXPENSES

42

5 RECONCILIATION OF SALARIES AND TRAVEL

43

6 RECONCILIATION OF PER DIEM AND FEES

44

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

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
November 8, 1995

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the Executive Committee ofthe Council of Superior Court Judges Members of the Prosecuting Attorneys' Council of Georgia Honorable Sherry L. Carr, Director Office ofInternal Administration Department of Administrative Services Honorable Joseph L. Chambers, Director Prosecuting Attorneys' Council of Georgia
and Honorable Robert L. Doss, Jr., Director Administrative Office of the 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, 1995, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. As described in Note 1, these financial statements were prepared on a prescribed basis of accounting that demonstrates compliance with the budgetary statutes and regulations of the State of Georgia, which is a comprehensive basis of accounting other than generally accepted accounting principles. All information included in these financial statements is the representation of the management of the Superior Courts of Georgia.
A review consists principally ofinquiries 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.

95ARL-4

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 the basis of accounting described in Note 1. The accompanying supplementary information (Exhibits F through I and Schedules 1 through 6) 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 of any material modifications that should be made thereto.
Respectfully submitted,
d:4~
Claude L. Vickers State Auditor
CLV:cm 95ARL-4

FINANCIAL STATEMENTS - I-

- -C8sh and Cash Equtvalents (See Schedule} Accounts Receivable
Federal Financial Assistance Olhor
Fixed Assets Equipment
AccnledCom-- Amountto be PrnYided for Paymentd
TOlalAssets
LIABIUTlES ANP FIJNQ f9I JITY
Com-- Liabilities Accounts Payable Funds Held for Others
TOlalllabilities Fund Equity
Investment in General Fixed Assets
R - Fund Balances Food Stamp Fraud Prosecution Agreement Unrese,wd Dos;gnated SUrplus TOlal Fund Equity
Total Liabilities and Fund Equity

GOVERNMENTAL FUNDTYl'E BUDGET

FIDUCIARY FUND TYPE
AGENCY

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS
t'M9monlndum OnM
JUNE 30 1995 JUNE 30 1994

737 365.25 S 475 397.64
894,023.88 104,610.33 4880265
1047436.86

822267.41

s 1 212 762.89 S

1 050020.80

894,023.88 S 104,610.33 48802.65
s 1 047 436.86 S

1,262,094.Ml 50,522.22 231-13.83
1335730.'5

822267.41 S

775064.03

229483.59 S m483-.59S

205520.33

1784802.11 $ 475397.64 $

822267.41 $

229483.59 S 3 311 950.75 S 3366335.61

1,149,741.49 $ 475,397.64
1149741.49 S 475397.64
626,414.34 8646.28
635060.62

822,267.41 822267.41

S 229 483.59 229 483.59 s

1,149,741.49 $ 475,397.64 229 483.59
1854622.n s

188,179.37 412,378.78 205520.33
806 078.48

822.267.41 $

775,064.03

626,414.34

363,950.09

8 646.28 S 1457328.03 $

1 421 243.01 2560257.13

1784802.11 $ 475397.64 $

822267.41 $

229483.59 $ 3311950.75 $

3366335.61

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

-2-

SUPERIOR COURTS OF GEORGIA STATEMENT OF CHANGES IN FUND BALANCES /STATUTORY BASIS)
GOVERNMENTAL FUND TYPE YEAR ENDED JUNE 30 1995

EXHIBIT"B"

FUND BALANCES - JULY 1
Reserved Unreserved
Designated Surplus
ADDITIONS
Adjustments to Prior Year's Accounts Payable Excess of Funds Available over Expenditures
Exhibit c
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, 1993 Year Ended June 30, 1994
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCES - JUNE 30
(To Exhibit "Ai

BUDGET FUND YEAR ENDED JUNE 30, 1995 JUNE 30, 1994

$

363,950.09 $

172,812.11

1,421,243.01 $ 1,785,193.10 $

348,258.99 521,071.10

$

2,92920 $

66,716.61

628,250.28 3,881.14 0.00

1,714,64124 166.60
3,668.65

$

635,060.62 $ 1,785,193.10

$

0.00 $

1,421,243.01

363,950.09

$ 1,785,193.10 $

348,258.99 0.00
172,812.11
521,071.10

$

635,060.62 $ 1,785,193.10

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. -3-

FUNDS AVAILABLE REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation Tclal State Appropriation
FEDERAL REVENUES (See Schedule)
OTHER REVENUES RETAINED Case Counting Project Contract with Judicial Council Fees Alternative Dispute Resolution Benchbook Pattern Jury Instructional Interest Earned Sale of Assets Transfers from Agency 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
Total Expendijures Excess of Funds Available over Expendrures
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.

EXHIBIT"C"

TOTALS
YEAR ENDED JONE 3<J 1995 JONE 3<J 1994

$ 51,050,860.00 $ -1195 975.00
$ 49 854 885.00 $
$ 1974222.32 $

48,888,332.00 -1 330 000.00
47 558 332.00
1 TT0838.51

$

76,500.00$

149,693.81
0.00 0.00 27,638.47
0.00

76,500.00
44,785.13 150.00
17,050.06 9,014.20 400.00

0.00 214,497.29
65,640.90 1,422,593.76
64000.00
$ 2 020 564.23 $
$ 53,849,671.55 $

1,374.04 178,327.92 141,717.12 1,216,573.61
64000.00
1749892.08
51,079,062.59

363950.09

172812.11

$ 54213621.64 $ 51 251 874.70

$ 48,912,434.24 $ 2,900,595.70 168,158.00 135,417.00 1468766.42

45,318,826.90 2,651,496.09
156,659.92 126,548.69 1283701.86

$ 53,585,371.36 $ 49,537,233.46

628250.28

1714641.24

$ 54,213,621.64 $ 51 1251 1874.70

SUPERIOR COURTS OF GEORGIA STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
COMPARED TO BUDGET BUDGET FUND
YEAR ENDED JUNE 30 1995

EXHIBIT"D"

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

BUDGET

ACTUAL

VARIANCEFAVORABLE (UNFAVORABLE)

$ 49,854,885.00 $ 49,854,885.00 $

0.00

1,974,222.32

2,530.273.00

2,020,564.23

$ 52,385,158.00 $ 53,849,671.55 $

0.00 1,974,222.32 -509, 708. 77
1,464,513.55

0.00

363,950.09

363,950.09

$ 52,385,158.00 $ 54,213,621.64 $

1,828,463.64

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

$ 48,643,442.00 $ 48,912,434.24 $

1,969,089.00

2,900,595.70

168,158.00

168,158.00

135,417.00

135,417.00

1,469,052.00

1,468,766.42

-268,992.24 -931,506. 70
0.00 0.00 285.58

$ 52,385 158.00 $ 53,585,371.36 $

-1,200,213.36

Excess of Funds Available over Expenditures

$

628250.28 $

628,250.28

See Independent Accoun1ant's Combined Report on Review of Financial S - n t s and Supplemen1ary Information.
The notes to the financial statements are an integral part of this statement.
-5-

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

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 of between 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 of the State of Georgia.
The Superior Courts of Georgia does not have authority to determine the amount offunding 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 of the significance of its legal, operational and financial relationships with the State of Georgia. These reporting entity relationships are defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental Accounting and Financial Reporting Standards.
FUND ACCOUNTING The Superior Courts of Georgia uses funds and account groups to report on its financial position and the results ofits operations determined in conformity with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia. A fund is an independent fiscal and accounting entity with a selfbalancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number offunds are maintained consistent with legal and managerial requirements. Account groups are a reporting device used to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. 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 1994-1995. The Budget Fund is similar in nature to a General Fund as identified in generally accepted accounting principles in that the Budget Fund is used to account for all activities except those required to be accounted for in some other fund.
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 1995

EXIIlBIT "E"

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FUND ACCOUNTING
ACCOUNT GROUPS
GENERAL FIXED ASSETS - The account group used to account for fixed assets used in governmental fund type operations. Fixed assets purchased are recorded at cost or at estimated historical cost ifhistorical cost is not practically determinable. Donated fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded values. No depreciation has been provided on general fixed assets.
The cost ofnormal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not included in the General Fixed Assets Account Group. Material improvements adding to the value or useful life of the assets are included in the General Fixed Assets Account Group.
GENERAL LONG-TERM DEBT - The account group used to report the noncurrent portions of certain
governmental long-term liabilities, such as daims, judgments and compensated 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 flow of current financial resources measurement focus. With this measurement focus, operating statements present increases and decreases in net current assets and unreserved fund balance is a measure ofavailable spendable resources. In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund remits its unreserved fund balance (surplus) to the Office ofTreasury and Fiscal Services in the subsequent fiscal year.
GOVERNMENTAL FUND TYPE BUDGETFUND
Except as disclosed in the following paragraphs, units of government of the State of Georgia record their Budget Fund revenues and expenditures in accordance with the modified accrual basis of accounting. Under the modified accrual basis ofaccounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities ofthe current period. Revenues that are accrued include primarily State appropriations, Federal grants and entitlements, and certain amounts earned under operating agreements with other parties. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgements which are recognized when the obligations are expected to be liquidated with expendable available financial resources.

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SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING GOVERNMENTAL FUND TYPE BUDGETFUND
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 of Georgia, but is not consistent with generally accepted accounting principles, which provide for the recording of encumbrances as a reservation offund balance. Further, revenue recognition for expenditure-driven grants should be based upon expenditures determined in accordance with generally accepted accounting principles.
Prior period adjustments and certain other items are reported as additions to and deductions from fund balances ofthe Budget Fund in the accompanying financial statements. This presentation is in accordance with accounting practices prescribed or permitted by statutes and regulations ofthe State of Georgia, 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
Agency Funds are custodial in nature and do not measure results of operations or have a measurement focus. The modified accrual basis of accounting 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 adopted on a basis consistent with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia and is compiled in the same manner as all State departments. Expenditures are classified by budget unit object classes as provided in Act No. 1208 of Georgia Laws 1994 (as approved April 18, 1994) and amended by Act No. 6 ofGeorgia Laws 1995 (as approved February 22, 1995), which is an appropriated budget and is referred to in these notes as the Amended Appropriations Act of1994-1995. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget.
CASH AND CASH EQUIVALENTS Cash and Cash Equivalents include 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.

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SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "E"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES No inventories ofsupplies are reported in the current financial statements. Expendable supplies are recorded as expenditures at the time of purchase.
RESERVED FUND BALANCE Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. The following is a briefdescription ofthe reserve reflected in the accompanying financial statements:
FOOD STAMP FRAUD PROSECUTION AGREEMENT Funds reserved for this program represent unexpended administrative fees received through a contract with the Georgia Department ofHuman Resources for prosecuting Food Stamp fraud cases. This amount is restricted for expenditure in the future years.
UNRESERVED FUND BALANCE In accordance with accounting practices prescribed or permitted by statutes and regulations of the State of Georgia, the Budget Fund's unreserved fund balance is remitted to the Office ofTreasury and Fiscal Services in the subsequent fiscal year as surplus. This amount ofunexpended general appropriations is available to the State for reappropriation in subsequent years.
COMPENSATED ABSENCES Compensated absences represent obligations ofthe Superior Courts of Georgia 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 of funds each year to the Courts to cover the cost ofannual leave paid to terminated employees.
The liability for compensated absences at year end is reported in the General Long-Term Debt Account Group for governmental funds.
MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the Combined Balance Sheet (Statutory Basis) are captioned "Memorandum Only" because they do not represent consolidated financial information and are presented only to facilitate financial analysis. The columns do not present information that reflects financial position in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.

-9-

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT"E"

NOTE I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPARATIVE DATA Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding ofthe changes in the Superior Courts of Georgia's financial position and operations. Comparative totals have not been included on statements where their inclusion would not provide enhanced understanding ofthe Courts' financial position and operations or would cause the statements to be unduly complex and difficult to understand.
NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS 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 of indebtedness, notes, or other direct obligations ofthe United States or ofthe State ofGeorgia.
(2) Bonds, bills, certificates ofindebtedness, notes, or other obligations of the counties or municipalities ofthe State ofGeorgia.
(3) Bonds ofany public authority created by the laws ofthe 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 ofthe State of Georgia.
(5) Bonds, bills, certificates of indebtedness, notes, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest, and debt obligations issued by the Federal Land Banlc, the Federal Home Loan Bank, the Federal Intermediate Credit Banlc, 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.

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT"E"

NOTE 2: CUSTODIAL CREDIT RISKS OF CASH DEPOSITS AND INVESTMENTS

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 Courts or by its agent in the Courts' name.

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

Cash Deposits

Carrying
Amount
s 200 625 43

Bank Balances
s 2 845 22818

Risk Categories
s 300 ooo oo s___o,.oo""

s 2 545 92818

Deposits in the amount of$11,252.93 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 of the bank balances for these deposits are classified by custodial credit risk categories in the review report of the Judicial Council.

CATEGORIZATION OF INVESTMENTS Investments are stated at cost. The carrying amount of the investment balance as of June 30, 1995, shown below is maintained in an investment pool by the Office of Treasury and Fiscal Services and is not subject to risk categorization.

Type oflnvestment State Investment Pool

Carrying Amount

Mark& Value

$ J ooo 734 53 $ I ooo 734 53

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 )eases 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, 1995, are listed below. Amounts are included only for multi-year leases and for cancellable leases for which an option to renew for
the subsequent fiscal year has been exercised.

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SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "E"

NOTE 3: OPERATING I EASES

Fiscal Year Ending June 30

1996

$ 95 084 64

Expenditures for rental of real property and equipment under operating leases for the year ended June 30, 1995, totaled $146,367.40.

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, 1994

$ 775,064.03

Additions Deductions

85,302.43 38 099.05

Balance June 30, 1995

$ 822 267 41

NOTE 5: GENERAL LONG-TERM DEBT

CHANGES IN GENERAL LONG-TERM DEBT During the year ended June 30, 1995, the following changes occurred in the compensated absences liability reported in the General Long-Term Debt Account Group:

Balance July 1, 1994
Additions/Deletions Annual Leave Earned and Utilized (Net) Salaries Salary Related Fringe Benefits
Balance June 30, 1995

Prosecuting Attorneys' Council
$ 80,956.79

Sentence Review Panel
2,785.68

Council of

Judicial

Superior

Administrative

Court Judges

Districts

Total

$ 10,224.50 $ 111,553.36 $ 205,520.33

16,044.98 1J27.44
$~

287.85 22.02
3 02:i :;:;

-590.88 ~ $~

6,518.40

22,260.35

498.65

1702.91

118:i1Q"11 $ 222"'83:i2

- 12 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXIIlBIT "E"

NOTE 6: RISK MANAGEMENT
Public Entity Risk Pool
The State Personnel Board, Merit System ofPersonnel Administration internally administers for the State of Georgia a program of health benefits for the employees of units ofgovernment ofthe State 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 Superior Courts of Georgia is part of the State of Georgia reporting entity, and as such, is covered by the State of Georgia risk management program administered by DOAS. Premiums for the risk management program are charged to the state agencies by DOAS to provide claims servicing and claims payment.
NOTE 7: 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 ofthe State Personnel Board - Merit System ofPersonnel Administration for the year ended June 30, 1995.

- 13 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT "E"

NOTES: RETIREMENTPLANS
The Superior Courts of Georgia participates in five retirement systems applicable to certain employee categories. These systems are as follows:
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Plan Description The Superior Courts of Georgia participates in the Employees' Retirement System of Georgia ("ERS"), a single-employer, defined benefit plan established by the General Assembly of Georgia for the purpose of providing retirement allowances for employees ofthe State ofGeorgia. The Courts' payroll for the year ended June 30, 1995, for employees covered by ERS was $15,323,958.24. The Courts' total payroll for all employees was $37,011,193.16.
Benefits The benefit structure ofERS 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.
Contributions Required and Contributions Made Under the old plan, member contributions consist of employee contributions paid by the employee of 1.25% of annual compensation and 4. 75% of annual compensation paid by the Courts on behalf of the employee. Under the new plan, member contributions consist solely of 1.25% of annual compensation paid by employee. The Courts 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 Courts amounted to 14.96% ofcovered payroll and included the 4. 75% contributed on behalf ofthe 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 $2,630,254.54, of which $2,291,700.31 was made by the Courts and $338,554.23 was made by employees. These contributions met the requirements of the plan.
- 14 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXfllBIT "E"

NOTES: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation
The amount shown as the "pension benefit obligation" is a standardized disclosure measure of the present value ofpension benefits, adjusted for the effects ofprojected salary increases and step-rate benefits, estimated to be payable in the future as a result ofemployee service to date. The measure is intended to help users assess the funding status ofERS on the going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due and make comparisons among employers. The measure is the actuarial present value of credited projected benefits, and is independent of the funding method used to determine contributions to the plan.

The pension benefit obligation was computed as part ofan actuarial valuation performed as ofJune 30, 1994. Significant actuarial assumptions used in the valuation include the following:

1) The present value offuture pension benefits paid was computed using a discounted rate of7.5 percent. This rate is also the same rate assumed to be earned on investments in the plan in future years.

2) Future pension payments reflect the following assumed salary increases as a result ofinflation and merit increases:

~

Percentage

20

9.5%

25

8.5%

30

6.5%

35

6.0%

40 to 65

5.7%

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

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

- 15 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTES: RETIREMENTPLANS

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA

Funding Status and Progress Pension Benefit Obligation

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

1206805 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 ofthe same date. ERS does not make separate measurements of assets and pension benefit obligation for individual employers.

Funding Policy The ERS funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as percentages ofannual payroll, are sufficient to accumulate sufficient assets to pay benefits when due. Level percentage of payroll employer contribution rates are determined using the entry age funding method. ERS also uses the level percentage of payroll method to amortize the unfunded liability within approximately 20 years following the valuation date.

Total contributions from all employers to ERS for the year ended June 30, 1995, were $256,624,679.00. The Courts' contribution was actuarially determined and represented 0.89"/o of total contributions made by all participating employers.

- 16 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "E"

NOTE 8: RETIREMENT PLANS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Funding Status and Progress Funding Policy
Significant actuarial assumptions used to compute contributions are the same as those used to compute the standardized measure of pension obligation.
Trend Information Historical trend 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 Superior Courts of Georgia participates in the Georgia Defined Contribution Plan ("GDCP") which is a single-employer defined contribution plan established by the Georgia General Assembly in July 1993 for the purpose 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 ofTrustees.
Benefits A member may retire and elect to receive periodic payments after attainment of age 65. The payment will be based upon mortality tables and interest assumptions to be adopted by the Board. If a member has less than
$ 3,500 credit to his/her account, the Board has the option ofrequiring a lump sum distribution to the member in lieu of making periodic payments. Upon the death of a member, a lump sum distribution equaling the amount credited to his/her account will be paid to the member's designated beneficiary.
Contributions and Vesting Member contributions are seven and one-half percent (7.5%) of gross salary. There are no employer contributions. Earnings are credited to each member's account in a manner established by the Board. Upon termination ofemployment, the amount of the member's account is refundable upon request by the member.
Information regarding covered payroll and contributions made by employees during fiscal year 1995 were not available due to the manner in which accounting records were maintained by the Courts.
SUPERIOR COURT JUDGES RETIREMENT SYSTEM The Superior Court Judges Retirement System (SCJRS) is a single-employer, defined benefit pension plan established by the General Assembly of Georgia for the purpose of paying retirement allowances to the Superior Court Judges of the State of Georgia, and their survivors and other beneficiaries. The Superior

- 17 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT"E"

NOTE 8: RETIREMENT PLANS

SUPERIOR COURT JUDGES RETIREMENT SYSTEM Courts of Georgia's payroll for the year ended June 30, 1995, for employees covered by the SCJRS was $10,262,978.86. The Superior Courts of Georgia's total payroll for all employees was $37,011,193.16.

Membership Membership in the SCJRS is restricted to those individuals who have served or are serving as judges of the superior courts. As ofJune 30, 1994, membership data relating to the SCJRS was as follows:

Retirees and Beneficiaries Currently

Receiving Benefits and Terminated

Members Entitled to Benefits but not

yet Receiving Them

For Retirement

.31.

Number ofActive Members

Vested

77

Nonvested

60

ill

Benefits Benefit provisions and vesting requirements are established by statute and may be amended only by the State of Georgia General Assembly. A member who has obtained at least 16 years of creditable service and who has attained the age of 65 is eligible to retire and receive a normal retirement benefit. A member who has obtained at least 10 years of creditable service and who has attained the age of 60 is eligible to retire and receive a reduced early retirement benefit.

Retirement benefits paid to members are computed as follows: ( 1) The accrued monthly benefit for normal retirement is equal to 2/3 of the monthly salary being paid to the participant by the Superior Courts of Georgia at the time of actual retirement for those members obtaining 16 years of credited service after November 1, 1982.

(2) The accrued monthly benefit for normal retirement for participants prior to November 1, 1982 is equal to 2/3 ofthe monthly salary being paid to the participant by the Superior Courts of Georgia at the completion of 16 years of credited service. After November 1, 1982 such participants who ceased making contributions to the SCJRS after 16 years of service can elect to utilize the salary at actual retirement as a basis for calculation of monthly retirement benefits by paying the required employee contributions for years ofservice in excess of 16 years of credited service plus interest accrued at the rate of6% per annum. Retirees receiving benefits prior to November 1, 1982 may also select this option.

- 18 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTE 8: RETIREMENT PLANS
SUPERIOR COURT JUDGES RETIREMENT SYSTEM Benefits
(3) The accrued monthly benefit at early retirement age or other termination of employment, except disability retirement, is equal to a pro rata portion, based on credited service not in excess of 16 years, of the monthly benefit at normal retirement age. A reduction of .25% is applied for each month ofservice less than 16 years, or for each month prior to the attainment of age 65, whichever is greater, by which the benefit commencement date precedes normal retirement age.
For participants in the Retirement System at November I, 1982, the accrued monthly benefit at early retirement age or other termination of employment, except disability retirement, is equal to a pro rata portion, based on credited service not in excess of 16 years, of the monthly benefit at normal retirement age, but such benefit cannot exceed 75% of the projected normal retirement benefit. Such participants receive the larger of the differing calculations.
Death, disability, and spousal benefits are also available. Members vest in the SCJRS as follows:
( 1) 100% for normal retirement at age 65 with 16 years of credited service.
(2) 100% for early retirement at age 60 with ten 10 years of credited service.
(3) 100% in the event of total and permanent disability after 4 years of credited service.
(4) For other termination ofemployment, except death, the vesting percentage is 100% after 10 years ofcredited service.
Credited service includes years of service after December 31, 1976, during which a participant holds office as a superior court judge and makes the required contributions for the Plan, plus years of prior service through December 31, 1976, if any, which were transferred from the Trial Judges and Solicitors Retirement Fund. Credited service may not exceed 16 years. Ifa participant leaves covered employment or dies before 10 years of credited service, accumulated contributions plus interest are refunded to the participant or designated beneficiary.
Contributions Required and Contributions Made The SCJRS is funded through a combination of member contributions paid by or on behalf of the affected superior court judges and employer contributions paid by the Superior Courts of Georgia. The minimum annual employer contribution requirements are set forth in the Official Code of Georgia Annotated (O.C.G.A.) Section 47-20-10 and are not actuariaJly determined. This statute further prohibits any action to grant a benefit increase until such time as the minimum annual contribution requirements meet or exceed legislative requirements. The actuarial valuation as of July 1, 1993, indicated that the minimum employer contribution level was being met. Member contribution requirements are set forth in O.C.G.A. Section 47-9-42. A description of contribution requirements is as follows:
- 19 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "E"

NOTE 8: RETIREMENT PLANS
SUPERIOR COURT JUDGES RETIREMENT SYSTEM Contributions Required and Contributions Made
(A) MEMBERS' CONTRIBUTIONS: (1) Members' contributions are calculated as 7 1/2% ofthe salary paid by the State of Georgia. Ofthis amount, the Superior Courts of Georgia contributes 5% less $7.00 monthly on behalf of each participant. The participant is responsible for the remainder ofthe required member contributions.
(2) Each participant who elects to be covered by the death benefit provision ofthe Plan must contribute an additional 2 1/2% ofhis/her salary paid by the Superior Courts of Georgia to the Plan. Each participant may elect a death benefit payable for the surviving spouse's lifetime rather than for life or until remarriage. Ifthis option is selected, the participant must contribute and additional .25% ofthe salary paid by the Superior Courts of Georgia.
(3) Each participant who is covered by other retirement plans and who elects to be covered by the death benefit provision ofthe Plan must contribute an additional 2 1/2% of his/her salary paid by the Superior Courts ofGeorgia to the Plan. Each participant may elect a death benefit payable for the surviving spouse's lifetime rather than for life or until remarriage. Ifthis option is selected, the participant must contribute an additional .25% ofthe salary paid by the Superior Courts of Georgia.
(4) Participants may elect to contribute an additional 1% of their salary to the Retirement System to become eligible for post retirement cost of living benefit adjustments as provided in the Official Code of Georgia Annotated Section 47-9-76.
(B) SUPERIOR COURTS OF GEORGIA CONTRIBUTIONS: The employer's contribution is currently calculated as 8% of the salaries paid by the Superior Courts of Georgia.
Total contributions to the SCJRS in fiscal year 1995 amounted to $1,701,134.81 of which $1,255,629.77 was made by the employer and $445,505.04 was made by the member. The employer contribution includes the 5% contributed on behalfofthe member referred to above. Contributions made by the employer and member approximate 12.23% and 4.34%, respectively, ofcovered payroll for the fiscal year. The contribution made by the employer does not include $67,326.76, which was billed to the Superior Courts of Georgia in fiscal year 1996 for fiscal year 1995 underpayment of employer contributions.
Funding Status and Progress Governmental Accounting Standards Board (GASB) Statement Number 5 requires the use ofa standardized measure ofthe pension obligation in order to help users assess funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among public employee retirement systems. The standardized pension obligation measure required by GASB Statement Number 5 is the actuarial present value of credited projected benefits, which is defined as the present value of benefits estimated to be payable in the future as a result of employee service to date, computed by
-20-

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTE 8: RETIREMENT PLANS

SUPERIOR COURT JUDGES RETIREMENT SYSTEM Funding Status and Progress attnbuting an equal benefit amount (including the effects of both projected salary increases and any step-rate benefits, ifapplicable) to each year of credited and expected future employee service, using assumptions that reflect the best judgement offuture events affecting the actuarial present value. The Statement further requires the use ofthe tenn pension benefit obligation when referring to the standardized measure. The standardized measure is independent ofthe actuarial funding method, ifany, used to determine contributions to the affected public employees retirement system.

In accordance with policies prescribed or permitted by statutes of the State ofGeorgia, the SCJRS does not calculate the pension obligation in the manner prescribed by the Governmental Accounting Standards Board. The actuary engaged by the SCJRS utilized the aggregate actuarial cost method to calculate the actuarial present value of accumulated plan benefits at the valuation date of July 1, 1993. Significant actuarial assumptions used include:

(A) Interest Rate: All cost estimates have been based on an interest rate of7 1/2% per annum. This rate serves as an estimate ofthe average yield which the assets ofthe Retirement System may reasonably be expected to earn over an extended period.

(B) Valuation Assets: Market value reduced by the balance ofthe employee contributions for postretirement cost-of-living benefit adjustments.

(C) Mortality Rates: The 1971 Group Annuity Mortality Tables for males with a 5 year setback for females.

(D) Disability Rates: The disability assumptions have been based upon the 1965 Railroad Retirement Board Totally Disabled Life Mortality Table.

(E) Retirement Age: Age at normal retirement.

(F) Termination Rates: The rates of turnover from causes other than disability or death for included employees are shown in the table below for sample ages:

~

Percentage

Male Female

30

3.702% 4.895%

35

2.349% 3.692%

40

1.128% 2.319%

45

.265% 1.038%

50

.000%

.065%

55

.000%

.000%

60

.000%

.000%

- 21 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTES: RETIREMENTPLANS

SUPERIOR COURT JUDGES RETIREMENT SYSTEM Funding Status and Progress (G) Contribution Levels: It has been assumed that all contribution levels will increase at an annual rate of
5%.

(H) Cost of Living Adjustments: Benefits for participants covered by spouses only death benefits are assumed to increase at the rate of 5 1/2% per annum.

(I) Funding Method: Aggregate actuarial cost method.

The valuation results with regard to the funded status of the plan is as follows:

Valuation Results: Actuarial Present Value of Accumulated Plan Benefits Active Members Pensioners, Future Survivors and Beneficiaries Former Members Eligible for Deferred Vested Benefits

$ 44,805,584 9,267,667
90 963

Total

$ 54,164,214

Valuation Assets (Market Value)

53 523 968

Unfunded Actuarial Present Value of Accumulated Plan Benefits

$ 640 246

Trend Information Historical trend information is presented in the financial report ofthe SCJRS for the year ended June 30, 1994. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.

DISTRICT ATTORNEYS' RETIREMENT SYSTEM The District Attorneys' Retirement System (DARS) is a single employer, defined benefit pension plan established by the General Assembly of Georgia for the purpose ofpaying retirement benefits to the district attorneys ofthe State ofGeorgia. The Superior Courts ofGeorgia's payroll for the year ended June 30, 1995, for employees covered by DARS was $3,232,633.15. The Superior Courts of Georgia's total payroll for all employees was $37,011,193.16.

Membership Membership in the DARS is restricted to those individuals who have served or are serving as district attorneys within the State of Georgia. As ofJune 30, 1994, membership data relating to the DARS was as follows:

-22-

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT "E"

NOTES: RETIREMENTPLANS

DISTRICT ATTORNEYS' RETIREMENT SYSTEM Membership
Retirees and Beneficiaries Currently Receiving Benefits and Terminated Members Entitled to Benefits but not yet Receiving Them For Retirement

Number of Active Members

Vested

23

Nonvested

28

.il

Benefits Benefit provisions and vesting requirements are established by statute and may be amended only by the State of Georgia General Assembly. A member who has obtained at least 10 years of creditable service and who has attained the age of60 shall be eligible to retire and receive a retirement benefit. After obtaining at least 10 years ofcreditable service, a member may cease to hold office before attaining the age of 60 and may begin receiving retirement benefits upon reaching age 60.

The accrued monthly benefit at normal retirement age or other termination ofemployment, except disability retirement, is equal to 4% of the average monthly compensation multiplied by the years of credited service, not to exceed 16 years ofcredited service. Death, disability, and spousal benefits are also available. Members vest in the SCJRS as follows:

(1) 100% for normal retirement at age 60 with 10 years of credited service.

(2) 100% in the event of total and permanent disability after 10 years of credited service, or after 4 years of credited service ifthe disability should occur due to an act of external violence incurred as a result of the performance of official duties.

(3) For other termination ofemployment, except death, the vesting percentage is equal to 100% after 10 years of credited service.

Credited service includes years of service after January 1, 1979, during which a participant holds office as a district attorney and makes the required contributions for the Plan, plus years of prior service through December 31, 1978, if any, which were transferred from the Trial Judges and Solicitors Retirement Fund. Credited service may not exceed 16 years. Ifa participant leaves covered employment or dies before 10 years of credited service, accumulated contributions plus interest are refunded to the participant or designated
beneficiary.

- 23 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXEilBIT "E"

NOTE 8: RETIREMENT PLANS
DISTRICT ATTORNEYS' RETIREMENT SYSTEM Contributions Required and Contributions Made The DARS is funded through a combination of member contributions paid by or on behalf of the affected district attorneys and employer contributions paid by the Superior Courts of Georgia. The minimum annual employer contribution requirements are set forth in the Official Code of Georgia Annotated (O.C.G.A.) Section 47-20-10 and are not actuarially determined. This statute further prolu.bits any action to grant a benefit increase until such time as the minimum annual contribution requirements meet or exceed legislative requirements. The actuarial valuation as of July 1, 1993, indicated that the minimum employer contribution level was being met. Member contribution requirements are set forth in O.C.G.A. Section 47-13-50. A description of contribution requirements is as follows:
(A) MEMBERS' CONTRIBUTIONS: (1) Members' contributions are calculated as 7 1/2% ofthe salary paid by the Superior Courts of Georgia. Of this amount, the Superior Courts of Georgia contributes 5% less $7.00 monthly on behalfof each participant. The participant is responsible for the remainder of the required member contributions.
(2) Each participant who elects to be covered by the death benefit provision of the Plan must contribute an additional 2 1/2% ofhis/her salary paid by the Superior Courts of Georgia to the Plan.
(B) SUPERIOR COURTS OF GEORGIA CONTRIBUTIONS: The employer's contribution is currently calculated as 5% of the salaries paid by the Superior Courts of Georgia.
Total contributions to the DARS in fiscal year 1995 amounted to $429,670.54 of which $319,472.47 was made by the employer and $110,198.07 was made by the member. The employer contribution includes the 5% contributed on behalfofthe member referred to above. Contributions made by the employer and member approximate 9.88% and 3.41%, respectively, of covered payroll for the fiscal year.
Funding Status and Progress Governmental Accounting Standards Board (GASB) Statement Number 5 requires the use of a standardized measure ofthe pension obligation in order to help users assess funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among public employee retirement systems. The standardized pension obligation measure required by GASB Statement Number 5 is the actuarial present value of credited projected benefits, which is defined as the present value ofcredited projected benefits, which is defined as the present value ofbenefits estimated to be payable in the future as a result ofemployee service to date, computed by attributing an equal benefit amount (including the effects ofboth projected salary increases and any step-rate benefits, if applicable) to each year ofcredited and expected future employee service, using assumptions that reflect the best judgement offuture events affecting the actuarial present value. The Statement further requires the use ofthe term pension benefit obligation when referring to the standardized measure. The standardized measure is independent of the actuarial funding method, ifany, used to determine contributions to the affected public employees retirement system.
-24-

SUPERIOR COURTS OF GEORGIA NOTES TO TI-IE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTES: RETIREMENTPLANS
DISTRICT ATTORNEYS' RETIREMENT SYSTEM Funding Status and Progress In accordance with policies prescribed or permitted by statutes ofthe State ofGeorgia, the DARS does not calculate the pension obligation in the manner prescribed by the Governmental Accounting Standards Board. The actuary engaged by the DARS utilized the aggregate actuarial cost method to calculate the actuarial present value of accumulated plan benefits at the valuation date of July I, 1993. Significant actuarial assumptions used include:
(A) Interest Rate: All cost estimates have been based on an interest rate of7 1/2% per annum. This rate serves as an estimate ofthe average yield which the assets ofthe Retirement System may reasonable be expected to earn over an extended period.
(B) Valuation of Assets: Market Value.
(C) Mortality Rates: The 1971 Group Annuity Mortality Tables are representative of the mortality experience oflarge groups covered by pension plans through group annuity policies, and these mortality tables have been used in the actuarial valuations.
(D) Disability Rates: the disability assumptions have been based upon the 1965 Railroad Retirement Board Totally Disabled Life Mortality Table.
(E) Retirement Age: Age at normal retirement.
(F) Termination Rates: The rates of turnover from causes other than disability or death for included employees are shown in the table below for sample ages:

Percentage Male Female

30

3.702% 4.895%

35

2.349% 3.692%

40

1.128% 2.319"/o

45

.265% 1.038%

50

.000"/o

.065%

55

.000%

.000%

60

.000%

.000%

(G) Contribution Levels: It has been assumed that all contribution levels will increase at an annual rate of 5%.

- 25 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "E"

NOTES: RETIREMENTPLANS

DISTRICT ATI'ORNEYS' RETIREMENT SYSTEM Funding Status and Progress The valuation results with regard to the funded status ofthe plan is as follows:

Valuation Results: Actuarial Present Value ofAccumulated Plan Benefits Active Members Pensioners, Future Survivors and Beneficiaries Former Members Eligible for Deferred Vested Benefits

$14,360,392 1,625,239
19454

Total

$ 16,005,085

Valuation Assets (Market Value)

13 958 683

Unfunded Actuarial Present Value of Accumulated Plan Benefits

$ 2 0464Q2

Trend Information Historical trend information is presented in the financial report of the DARS for the year ended June 30, 1994. This information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due.

TRIAL JUDGES AND SOLICITORS RETIREMENT FUND The Trial Judges and Solicitors Retirement Fund (TJSRF) is a multiple-employer, defined benefit pension plan established by the General Assembly of Georgia for the purpose of paying retirement allowances for trial judges and solicitors ofcertain courts ofthe State of Georgia. The Superior Courts of Georgia is required by the Official Code of Georgia Annotated Section 47-10-62 to pay the employer's contribution to the TJSRF. These trial judges and solicitors are not employees ofthe Superior Courts ofGeorgia. Total payroll for the year ended June 30, 1995, for members covered by TJSRF was $5,828,687.37.

Membership As of June 30, 1994, membership data relating to TJSRF was as follows:

Retirees and Beneficiaries Currently Receiving Benefits

36

Active Plan Participants

148

Inactive

144

-26-

SUPERIOR COURTS OF GEORGIA NOTES TO TI1E FINANCIAL STATEMENTS
JUNE30 1995

EXHIBIT"E"

NOTES: RETIREMENTPLANS
TRIAL JUDGES AND SOLICITORS RETIREMENT FUND Benefits Benefit provisions and vesting requirements are established by statute and may be amended only by the State ofGeorgia General Assembly. The normal retirement for TJSRF is age 60 with 16 years of creditable service; however, a member may retire at age 60 with a minimum of IO years of creditable service. Additionally, a member must retire at age 70 or forfeit all retirement and disability benefits. Members holding office on July I, 1980 are exempt from this provision.
Retirement benefits paid to members are computed as 4% of the average annual compensation multiplied by the total years ofcreditable service not to exceed 16 years. The average annual compensation is the average salary of a member during the two consecutive years of creditable service producing the highest such average but excluding any salary increases exceeding 5% over the previous two year period. Death, disability and spousal benefits are also available.
Members become vested after IO years of creditable service. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contributions, the member forfeits all rights to retirement benefits.
Contributions Required and Contributions Made The TJSRF is funded through a combination of member contributions paid by the affected trial judge or solicitor and employer contributions paid by the Superior Courts of Georgia. Members contribute 7.5% of their salary plus an additional 2.5% if spousal benefits is elected. Employer contributions are actuarially determined and approved and certified by the Board ofTJSRF. Future contributions will be determined on an actuarial basis using the entry age actuarial cost method. Normal cost will be funded on a current basis and calculated on a level percentage basis. Based on the actuarial valuations as of June 30, 1993, there is no unfunded actuarial liability.
Total employer contributions to the TJSRF by the Superior Courts of Georgia in fiscal year 1995 amounted to $666,308.24. Contributions made by the Superior Courts of Georgia approximate 11.43% of covered payroll for the fiscal year. Employee contribution information for fiscal year I995 was not available.
Significant actuarial assumptions used to compute contribution requirements are the same as those used to compute the standardized measure of the pension obligation.
Funding Status and Progress Governmental Accounting Standards Board (GASB) Statement Number 5 requires the use ofa standardized measure ofthe pension obligation in order to help users assess funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among public employee retirement systems. The standardized pension obligation measure required by GASB Statement Number 5 is the actuarial present value of credited projected benefits, which is defined as the present value
- 27 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTES: RETIREMENTPLANS

TRIAL JUDGES AND SOLICITORS RETIREMENT FUND Funding Status and Progress of benefits estimated to be payable in the future as a result of employee service to date, computed by attnbuting an equal benefit amount (including the effects of both projected salary increases and any step-rate benefits, ifapplicable) to each year ofcredited and expected future employee service, using assumptions that reflect the best judgement offuture events affecting the actuarial present value. The Statement further requires the use ofthe term pension benefit obligation when referring to the standardized measure. The standardized measure is independent ofthe actuarial funding method, ifany, used to determine contributions to the affected public employees retirement system.

Significant actuarial assumptions used to calculate the TJSRF pension benefit obligation include the following:

(A) The present value offuture pension benefits paid was computed using a discounted rate of7.5%. This rate is also the rate assumed to be earned on investments in the plan in future years.

(B) Salary increases are assumed to be 6% per year.

The standardized measurement ofthe TJSRF assets in excess ofthe pension benefit obligation as of June 30, 1993 is as follows:

Pension Benefit Obligation:

Retirees and Beneficiaries Currently Receiving Benefits and Terminated Employees Entitled To Benefits but Not Yet Receiving Benefits

$ 6,507,000

Current Employees Accumulated Contributions Employer-Financed Vested Employer-Financed Nonvested

2,921,000 3,465,000 4 906 000

Total Pension Benefit Obligation

$ 17,799,000

Net Assets Available for Benefits

20 063 000

Assets in Excess of Pension Benefit Obligation

$ 2 264 000

Trend Information Historical trend information is presented in the financial report of the Employees' Retirement System of Georgia, administrator for the TJSRF, for the year ended June 30, 1994. This information gives an indication ofthe progress made in accumulating sufficient assets to pay benefits when due.

-28-

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXHIBIT"E"

NOTE 9: 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.
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 of the 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 of forty 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 of forfeited annual and sick leave are entitled to additional service credit in the Employees' Retirement System of Georgia.
NOTE 10: 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, 1995.
NOTE I I: OTHER FINANCIAL NOTES
Pursuant to the Official Code of Georgia 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.

- 29 -

SUPERIOR COURTS OF GEORGIA NOTES TO THE FINANCIAL STATEMENTS
JUNE 30 1995

EXIIlBIT "E"

NOTE 12: 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, 1995. 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 $1,000,000.00 against Joss 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.
All employees ofthe Superior Courts of Georgia 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 Superior Courts of Georgia to a maximum of $9,000,000.00 against loss sustained through fraudulent or dishonest acts by its employees.

- 30-

SUPPLEMENTARY INFORMATION - 31 -

EXHIBrT"F"

- -CUh and CUh Equilllllentl
Accounts ReceiYable Federal Financial Assistance ott,e,
Total Assets
UAB1LmES AND FLJND f9U1IY
Liabilities C8sh"9rdraft Accounts Payable Total Liabilities
......... Fund Equity Fund Balances Food Stamp Fraud Pro&ecution Agreement ""'""""' Designated """'"' Total Fund Equity
Total Llabilities and Fund Equity

OPERATION OFTHE COURTS

PROSECUTING ATTORNEYS COUNCIL

SENTENCE REVIEW
~

COUNCIL OF SUPERIOR COURT JUDGES

JUC>CW. ADMINlSTRA.TIVE
DISTRICTS

TOTAL

95178.22 S

844710.53 $

894,023.88 68,808.26 S

. 36,002.07 5818.40

962632.14 '--~"~~1~-~1

6026.88 '--~1=3=1=7~

--~43~1~66"'.25"' --~3~1~66"'.25"' $

894,023.88 104,610.33 48 802.65
1 047 438.86

S 1057810.36 $

686329.00 S 6026.88 s _ _ _1_3.,.s1.B.7.._6 s _ __.43._1,_662.5_,S 1806871.23

S 1 049710.84 S $ 1049710.84 $

59914.86 S

S

22,089.12 S

8026.88 '--~1~3~1=1= --~20=57~0~.3~7

59 914.86 S ~ S

13 518.78 S

42 639.4a S

22,069.12 1149741.49
1 171 810.81

-~=. . 826,414.34
-~=000=~2 --~O=.OO~S__Q,QQ_ s _ _ _ _o=.00= ---~546=.7~

826,414.34 =28~

8099.52 S

826414.34 S__Q,QQ_S

o.00 s _ _ _~546=.7~8 S 835080.62

S 1 057 810.36 S

888 329.00 $ ~ s _ _..1..3...1.s'".7.._6 - - - - 3..1_66..2..5.. S 1808871.23

See accompanying notes and Independent Accountant's Combined Report on Review cl Financial Statements and Supplementary lnf9m,ation.

-32-

!.!emlOR ~RTS OF G~GIA
QQMi.:!:!NlNG !AT~!;fil QE Q ~ g IN FU~ ~I AN!:;1;;S (STAI!,JTQBX ~ ) ~
YfAR fNQEO II /NE 30 1995

EXHIBIT"G

-F!lt!fQM!~-:JU~Y1 u,........, Deslg""""'
-Su,pjus Adjustment5 to Prior Year's Accounts Payable Excess of Funds Available owr Expenditures Exhibit'ff' Prior Year's Checks Voided
~
Unreserved Fund Balance (Surplus) Returned to Office of Treasury and Fiscal SeMces YearEndedJune30, 1994
Reserved Fund Balance Carried Over from Prior Year as Funds Available
FUND BALANCES- JUN!;;~
(ToExhibit"F")

OPERATION OFTHE COURTS

PROSECUTING ATTORNEYS'
COUNCIL

SENTENCE REVIEW PANEL

COUNCIL OF SUPERIOR COURT JUDGES

JUDICIAL ADMINISTRATIVE
DISTRICTS

TOTAL

s 1417055.74 s 1,U7055.74 $

363,950.09 363950.09 S

904.36 $ 904.36 S

1 090.44 $ 1 090.44 $

363,950.09

2192.47 2192.47 $

1 421243.01 1 785193.10

2,667.83 5,C1.69 $
8099.52 $

622,533.20 $ 3881.14
626414.34 $

0.00 $ 0.00 $

0.00 0.00 S

261.37 $ 285.39
5'6.76 S

2,929.20
628,25028 3881.14
635060.62

$ 1,417,055.74 $ 1417055.74 $

363950.09 363950.09 $

8099.52 $

626414.34 $

904.36 $ 904.36 $
0.00 S

1,090.44 $ 1 090.44 $
0.00 $

2,192.47 $ 1,421,243.01 363950.09
2192.47 $ 1785193.10

546.76 $

635060.62

See accompanying notes and Independent Accountanrs Combined Report on Review of Financ'ial Sti,t9mer,ts and supplementary Information

-33-

SUPERIO COMBINING STATEMENT 0
YEAR
FUNDS AVAILABLE
REVENUES
STATE APPROPRIATION General Appropriation Amended Appropriation
Total State Appropriation
FEDERAL REVENUES
OTHER REVENUES RETAINED Case Counting Project Contract with Judicial Council Fees Alternative Dispute Resolution Interest Earned Transfers from Agency Funds Held by the Office of Treasury and Fiscal Services 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
PERSONAL SERVICES
Salaries and Wages Employe~s Contributions for.
F.I.C.A. Retirement Health Insurance Personal Liability Insurance Unemployment Compensation Insurance Workers' Compensation Insurance

1995

OPERATION OF THE COURTS

PROSECUTING ATTORNEYS' COUNCIL

$ 47,535,338.00 $ -1, 195 975.00
$ 46 339 363.00 $
$ 811 770.98 $

1,969,089.00
1969089.00 1,162,451.34

$
$ 214,497.29 65,640.90
1,422,593.76 64 000.00
$ 1,766 731.95 $ $ 48,917,865.93 $

27,638.47
27 638.47 3,159,178.81

363 950.09 $ 48,917,865.93 $ 3 523,128.90

$ 34,824,497.28 $
1,892,020.96 5,158,800.17 3,672,412.29
185,103.00 18,646.00
123 552.00
$ 45,875,031.70 $

1,133,633.16
61,268.22 150,537.33 141,704.22
4,239.00 565.00
2 626.00
1 494 572.93

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-34 -

EXHIBIT"H"

SENTENCE REVIEW PANEL

COUNCIL OF SUPERIOR
COURT JUDGES

JUDICIAL ADMINISTRATIVE
DISTRICTS

TOTAL

$ 168,158.00 $ $ 168 158.00 $
$ 168,158.00 $

135,417.00 $ 135 417.00 $
$
$ 135,417.00 $

1,242,858.00 $ 51,050,860.00 -1,195 975.00
1 242,858.00 $ 49 854 885.00
$ 1974222.32

76,500.00 $ 149,693.81

76,500.00
149,693.81 27,638.47

214,497.29 65,640.90
1,422,593.76
64 000.00
226193.81 $ 2 020 564.23
1,469,051.81 $ 53,849,671.55

$ 168 158.00 $

135 417.00 $

363,950.09 1 469 051.81 $ 54,213 621.64

$ 92,206.93 $
6,371.51 14,341.26 11,525.94
207.00 34.20
239.46
$ 124,926.30 $

67,679.20 $
4,536.35 10,219.41
8,459.89 138.00 22.80 159.64
91 215.29 $

893,176.59 $ 37,011,193.16

62,593.70 131,431.91 105,329.21
1,518.00 250.80
1 756.04

2,026,790.74
5,465,330.08 3,939,431.55
191,205.00
19,518.80 128 333.14

1196 056.25 $ 48 781 802.47

- 35 -

SUPERIOR COURTS OF GEORGIA COMBINING STATEMENT OF FUNDS AVAILABLE AND EXPENDITURES
BUDGET FUND YEAR ENDED JUNE 30 1995

EXPENDITURES
REGULAR OPERATING EXPENSES
Motor Vehicle Expenses Supplies and Materials Repairs and Maintenance Rents (Other than Real Estate) Insurance and Bonding Grants to Counties, Ctties and Civil Divisions Other Operating Expenses (See Schedule) Duplicating and Rapid Copy Publications and Printing
EQUIPMENT
Equipment Purchases
COMPUTER CHARGES
Other Costs Supplies and Materials Repairs and Maintenance
Software Equipment
Equipment Purchases Per Diem, Fees and Contracts
Contracts Computer Billings, DOAS
REAL ESTATE RENTALS
TELECOMMUNICATIONS
PER DIEM FEES AND CONTRACTS
Per Diem and Fees Contracts
Total Expenditures
Excess of Funds Available over Expenditures

OPERATION OF THE COURTS

PROSECUTING ATTORNEYS' COUNCIL

$

$

15,049.87

132.86

7,074.00 232,100.00
16,784.27 523.67
10 253.28

$ - -281~91-7.9-5 $
$ _ _4=86=88=6.8~2 $

11,179,70 13,817.91 16,070.32
636.00 6,359.93 767,437.50 46,119.37
16 692.43
878 313.16
18 371.45

$

3 388.12 $ _ _~5=6~7~8-~7~2

$

1,628.00 $

4,213.00

971 197.00 977 038.00 $
$ $ - - - =5= 85.5'7- $

3,060.95 24,121.38
18 358.76 45 541.09 92,620.25 13 386.33

$ 1,252,814.88 $ 34 771.20
$ 1287586.08 $
$ 48,912,434.24 $
5 431.69

161,925.79 190 185.98
352111.77
2,900,595.70
622,533.20

$ 48 917 865.93 $ 3,523 128.90

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-36-

EXHIBIT "H''

SENTENCE REVIEW PANEL

COUNCIL OF SUPERIOR COURT JUDGES

JUDICIAL ADMINISTRATIVE
DISTRICTS

TOTAL

$

6,723.19 $

1,084.25

434.32

300.20

679.40

4 650.38

$ 13 871.74 $

$

94.24 $

1,375.65 $ 1,554.26
614.79 264.50
3,352.65 216.75
10,864.95
18 243.55 $
2 868.46 $

$ 26,503.15
3,770.26 818.36
2,132.63
6,717.97 1,075.00 4 368.75
45 386.12 $
56 416.19 $

11,179.70 63,469.77 22,611.95 2,503.47 16,131.26 999,537.50 73,653.66
1,815.42 46 829.79
1,237 732.52
564 637.16

$

225.40 $

2 627.00 $

13 122.58 $

25 041.82

$

879.67 $

2,278.52

360.82

8,791.20

190.00

$ 12,500.21 $

$ 11110.00 $

$

1 586.36 $

$

3,843.75 $

$

3 843.75 $

$ 168,158.00 $

0.00

$ 168158.00 $

324.77 $ 660.00 3,702.94
4 687.71 $ 4 080.00 $ 5 494.22 $
6,200.77 $ 6 200.77 $ 135,417.00 $
0.00
135,417.00 $

1,399.60 $ 5,395.00 1,209.95 37,162.72
380.00
45 547.27 $ 36 053.68 $ 27129.22 $

2,604.04 8,333.52 6,259.72
77,991.24
570.00 989,555.76
1,085,314.28
143 863.93
48181.70

47,305.11 $ 1,472,090.30

1 750.00

226,707.18

49 055.11 $ 1,698 797.48

1,468,766.42 $ 53,585,371.36

285.39

628 250.28

1469051.81 $ 54 213 621.64

-37 -

SUPERIOR COURTS OF GEORGIA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30 1995

EXHIBIT"!"

FUND Continuing Legal Education Fees Food Stamp Fraud Account

ASSETS/ LIABILITIES JULY 1 1994

ADDITIONS

DELETIONS

ASSETS/ LIABILITIES JUNE 30 1995

$

41,337.35 $ 34,814.65 $ 40.425.24 $

35,726.76

371 041.43

500 334.62

431 705.17

439 670.88

$ 412,378.78 $ 535,149.27 $ 472,130.41 $

475 397.64

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-38-

FUNDS AVAILABLE ~
State Approprialicn Other Revenues Retained
EXPENDITURES Operation of the Courts Prosecuting Attorneys' Council Sentence Review Panel Council of Superior Court JUdges Judicial Administrative Districts

SUPERIOR COURTS OF GEORGIA SCHEDULE OF APPROVED BUDGET
YEAR ENDED JUNE 30 1995

SCHEDULE 1

ORIGINAL APPROPRIATION

AMENDED APPROPRIATION

BUDGET ADJUSTMENTS

TOTAL

$

51,050,860.00 $

2,304 079.00

-1,195,975.00 $

$ 49,854,885.00

226194.00

2,530,273.00

$

53,354,939.00 $

-1195 975.00 $

226,194.00 $ s213851158.oo

$

49,839,417.00 $

-1, 195,975.00

1,969,089.00

168,158.00

135,417.00

1242858.00

$

$ 226194.00

48,643,442.00 1,969,089.00 168,158.00 135,417.00 1469052.00

53 354,939.00 $

-1 195,975.00 $

226194.00 $ 52,385 158.00

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-39-

SUPERIOR COURTS OF GEORGIA CASH AND CASH EQUIVALENTS
JUNE 30 1995

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

$

83,899.11

$

116,726.32

11,252.93

1,000,734.53

1,128,713.78

150.00

$ 1,212,762.89

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-40-

SUPERIOR COURTS OF GEORGIA
SCHEDULE OF FEDERAL REVENUES
YEAR ENDED JUNE 30 1995

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
Transportation, U. S. Department of State and Community Highway Safety Through National Association of Prosecutor Coordinators

CFDA NUMBER
10.551 93.563 16.579
20.600

SCHEDULE "3"
AMOUNT $ 1,029,900.00
811,770.98 124,511.27
8,040.07 $ 1,974,222.32

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-41 -

SUPERIOR COURTS OF GEORGIA SCHEDULE OF OTHER OPERATING EXPENSES
YEAR ENDED JUNE 30 1995

SCHEDULE 4

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

$

480.00

43.20

13,291.13 2,530.00
439.94 $

16,784.27

$ 12,274.12 217.90 505.00
33122.35

46,119.37

$

365.00

314.40

679.40

$ 3,0n.58 280.07

3,352.65

$

46.06

875.00

3,219.00

1,015.85

1562.06

6717.97

$ 73653.66

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-42-

SUPERIOR COURTS OF GEORGIA RECONCILIATION OF SALARIES AND TRAVEL
YEAR ENDED JUNE 30 1995

SCHEDULE 5

Totals per Annual Supplement

Accruals June 30, 1995

Adjustments Roney,

Fred

Transfers to Employees' Retirement System of Georgia for Salaries of Retired District Attorneys and Superior Court Judges for the Period July 1, 1994, through June 30, 1995 (See Notes to the Financial Statements - Note 11)

Totals per Report

SALARIES $ 33,227,718.14 $

TRAVEL 563,206.00

1,146.83

284.33

3,783,475.02 $ 37,011,193.16 $=====564~,6=3=7.1...6.

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-43-

SUPERIOR COURTS OF GEORGIA RECONCILIATION OF PER DIEM AND FEES
YEAR ENDED JUNE 30 1995

SCHEDULE "6''

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
other Fees other Fees other Fees Consultant

FEE AMOUNT

EXPENSE AMOUNT

TOTAL

$ 1,137,535.48 $ 219,660.82 $ 1,357,196.30

25,000.00
13,500.00
60,000.00 16 394.00

25,000.00
13,500.00
60,000.00 16 394.00

Totals per Report

$ 1,252,429.48 $ 219 660.82 $ 114721090.30

See accompanying notes and Independent Accountant's Combined Report on Review of Financial Statements and Supplementary Information.
-44-

SECTION II FINDINGS AND IMPROPER OR QUESTIONED COSTS

SUPERIOR COURTS OF GEORGIA SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1995

STATUS OF PRIOR YEAR FINDINGS AND IMPROPER OR QUESTIONED COSTS

The status offindings disclosed in the review report for the year ended June 30, 1994, is summarized below:

Audit Control Number

Status of Finding

436-94-01 436-94-02

Corrective Action Implemented See Audit Control Number 436-95-01

PRIOR YEAR/CURRENT YEAR

EXPENDITURES/LIABILITIES/DISBURSEMENTS Disbursements on Behalf of District Attorneys Financial Statements Audit Control Number 436-95-01

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 of Fraud and Abuse (OFA), whereby, OFA pays a fee to the Prosecuting Attorneys' Council for adjudication ofguilt 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 of understanding earn a percentage of the funding received by the Prosecuting Attorneys' Council for those cases that are prosecuted.

Each district attorney has a choice of how 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 of the 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 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:

SUPERIOR COURTS OF GEORGIA SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1995
PRIOR YEAR/CURRENT YEAR
EXPENDITURES/LIABILITIES/DISBURSEMENTS Disbursements on Behalf ofDistrict Attorneys Financial Statements Audit Control Number 436-95-01
"The governing authority ofthe 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 ofthe 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 of the 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. In as much 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.
CURRENT YEAR
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequacies in Operation ofProperty Management System Major/Nonmajor Programs Audit Control Number 436-95-02
For the year under review, our examination included a review ofthe procedures utilized by the Superior Courts ofGeorgia - Prosecuting Attorneys' Council in maintaining their State Property System. This review consisted oftesting the system for compliance with Federal and State equipment Jaws and regulations. Procedures were also completed to verify the accuracy of the total equipment inventory valuation contained in the inventory records, which comprises the General Fixed Assets Account Group. The following condition relating to inappropriate accounting practices was found to exist:
Equipment deletions were not properly updated on the inventory system.
In addition, equipment items were selected to test the accuracy of the Council's general fixed assets records. Ofthe 30 equipment items selected for physical inspection, the following deficiencies were noted:
(1) 27 items did not have a decal number attached. Items were identified by serial numbers or descriptions.
(2) 2 items were surplused but were not removed from the inventory.

SUPERIOR COURTS OF GEORGIA SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1995

CURRENT YEAR

GENERAL FIXED ASSETSIPROPERTY MANAGEMENT - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequacies in Operation ofProperty Management System Major/Nonmajor Programs Audit Control Number 436-95-02

The Council is required to maintain equipment inventories in accordance with provisions ofOMB Circular Al02 and the State Property System Manual. The discrepancies identified above were caused by the Council's failure to follow guidelines for maintaining equipment inventories.

The Council should establish the necessary procedures to ensure that equipment inventories are maintained in accordance with provisions of 0MB Circular A-102 and the State Property System Manual.

FEDERAL FINANCIAL ASSISTANCE PROGRAMS AFFECTED AND CFDA NUMBERS

10.551

Food Stamps

16.579

Drug Control and System Improvement - Formula Grant

20.600

State and Community Highway Safety